Bangkok Bank's net profit fell 13% to THB8.96b

Loans up a measly 1.1%.

According to Maybank Kim Eng, Bangkok Bank reported 3Q13 net profit of THB8.96b, down 13% QoQ but up 21% YoY, in line with Maybank's and market expectations. 

Here's more from Maybank:

Loans grew 1.1% QoQ (+5.0% YTD) with NIM expanding 2bps. Net interest income (NII) rose 2% QoQ while non-NII dipped 17% QoQ on lower income from fees and dividends as well as smaller investment gains. Nevertheless, non-NII still grew 17% YoY.

Opex soared 19% QoQ on the reversal of a TAMC reserve booked in 2Q13, but the cost-to-income ratio was low at 43%. PPOP shrank 19% QoQ but rose 6% YoY.

Provisioning returned to normal levels after the extra provisioning set aside in 2Q13 (offsetting the gains on the TAMC reversal). NPLs inched up slightly, albeit still low at 2.5%. Coverage ratio was a high 200%.

What’s next in 4Q13F and 2014F? We expect BBL’s 4Q13F earnings to come in at THB10b, with growth remaining resilient due to the seasonal effect on loans and fee income. Like its peers, we do not think there will be a significant seasonal uptick in Opex.

But we have trimmed our 2013F-2015F earnings projections by 3 5% to reflect the actual 9M13 data. In line with our revisions, we forecast net profit to grow 16% YoY this year and next, and loan growth of 9% YoY.

We expect public and private sector investments to be the key driver for Thailand’s economic growth over the next few years with the government’s THB2t infrastructure projects as the main catalyst. We project BBL’s 2014F earnings to grow 12% YoY.