BBL strong in Q1/67, posting 10.5 billion baht profit, JPMorgan upgrades hospitals, IT

HoonSmart.com>> Bangkok Bank (BBL) achieved strong growth in the first quarter of 2024, generating profits of 10,524 million baht, accelerating by 18.7% compared to the fourth quarter of 2023, up 3.9% from the previous year, and generating investment income. Insurance – Mutual Fund Business Fees and expenses decreased, supporting the rise in ROA and ROE reserves to 8,582 million baht. As for Thai stocks, they fell by about 18 points, after JP reduced this year's target by 200 points to 1,500, adding hospitals and telecommunications, highlighting the outstanding stocks AOT and BH. BDMS, PTTEP, TOP HMPRO Deputy Finance Minister Admits Concern About Stocks – Baht Weakens Strongly

Bangkok Bank (BBL) announced the results of the first quarter of 2024, with net profit reaching 10,524 million baht, and earnings per share of 5.51 baht, an increase of 18.7% from the fourth quarter of the previous year, and an increase in profits of 3.9% from the first quarter of 2023.

Better Earnings Although net interest income amounted to 33,422 million baht, a decrease of 5% from the previous fourth quarter due to the increase in deposit interest expense following the gradual increase in interest rates on deposits as they mature. As a result, net interest margin reached 3.06%, while non-interest income increased by 17.5% to 8,260 million baht of investment income. In addition, net fee and service income from bancassurance and mutual fund services increased well compared to the previous quarter.

As for operating expenses, they decreased by 16.9% to 19,618 million baht, as the ratio of expenses to operating income reached 47.1%, compared to 56.0% in the fourth quarter of 2023. The bank considered setting aside a loss from expected credit losses amounting to 47.1%. 8,582 million baht, an increase of 16.9% over the previous fourth quarter and 1.3% over the first quarter of 2023, amounting to 8,474 million baht under the principle of continued caution. To accommodate future uncertainty

At the end of March 2024, the total loans obtained by the bank amounted to 2,736,427 million baht, an increase of 2.4% from the end of last year. It comes from loans to clients of large companies and loans to clients of foreign companies. As for the ratio of non-performing credit loans to total loans, it remained at a manageable level of 3.0%, and this is due to the bank’s continued commitment to the principles of caution and prudence in forming provisions. Make a ratio
The provision for credit losses on non-performing loans was strong at 291.7%.

Deposits at the end of March and revenues for 2024 amounted to 3,198,332 million baht, a level similar to the end of last year. The ratio of loans to deposits was 85.6%, while the total capital adequacy ratio was 19.7%, 16.3%, and 15.6%, respectively. This is at a higher level than the minimum capital adequacy ratio as set by the Bank of Thailand.

Bangkok Bank continues to conduct its business carefully and cautiously. As well as maintaining the stability of the financial position, liquidity and capital funds at appropriate levels. To achieve stable and sustainable growth

In the first quarter of 2024, the Thai economy continued to expand. It received support from the service sector after the increase in the number of foreign tourists. Especially Chinese tourists as a result of the visa cancellation policy. However, Thailand's export sector continues to slow down due to weak demand from trading partners. Government spending continues to shrink. Both in terms of capital expenditures and regular expenditures of the central government. As the 2024 budget has not yet been completed.

An important factor to watch is the uncertainty surrounding the global economy. The influence of central banks in various countries maintaining high interest rates to control inflation and the slowdown in economic growth in China due to problems in the real estate sector and trade and technological conflicts with the United States. As well as the problems of global geopolitical conflicts

Amidst the economic situation that remains uncertain. Global trade and geopolitical conflicts involve additional challenges arising from the global context of environmental, social and governance concerns. Changes in formal policies and regulations and the advancement of new technology and innovations that affect business operations. Bangkok Bank The “Friends of Ideas, Friends of Homes” program also continues to focus on providing advice for preparing for business operations. By promoting the development of skills and knowledge necessary for continuous adaptation. Willing to support the creation of partnerships in the business ecosystem. And new investment in environmentally friendly economic activities. In addition, the bank is ready to support clients to take advantage of opportunities to expand their operations abroad to achieve sustainable growth.

The Thai stock market continues to decline. Since the previous day, it had fallen by 30 points or more than 2% on April 18, and today's decline to a low of about 18 points helped push the market to a rapid recovery. The index closed at 1,361.02 points, down 5.92 points or -0.43% in value, and 53,907.55 million baht were traded, with foreign investors selling only 340.60 million baht, while securities accounts sold 1,790.74 baht, while Thai investors bought 2,440 million baht.

The stocks that declined are expected to continue to receive sales from foreign investors, said Mr Surapon Weeramithikul, Senior Director of Securities Analysis Department at Kasikorn Securities. After US bond yields exceeded 4.35%, the global stock market corrected largely. The price of oil rose sharply, which will affect two countries, Thailand and the Philippines, affecting GDP and inflation, which will have an upward trend, which economists do not see as good. Including a foreign broker who reduced the target of the SET index this year from 1700 to 1500 points, including the view that the interest rate cut by the US Federal Reserve may be postponed to the second half of 2024 or the beginning of the year 2568.

JP Morgan releases analysis of Thai stock strategy, raising hospital and telecom stocks, adjusting target from 'hold' to 'buy' and IT group from 'sell' to 'buy' with TOP PICK stocks including AOT, BH and BDMS. ,Btib,Humbro Top

Mr. Cholavan Amornvivat, Deputy Minister of Finance, admitted that he was concerned about the situation of the baht, which had weakened significantly. It is understood that part of this is affected by the state of the conflict between Israel and Iran. Therefore, relevant agencies have been tasked with monitoring various situations to see whether they will have an impact on the Thai economic situation or not.

“The volatility of stocks and the value of the baht is normal. Because there is an international conflict issue happening now,” Mr. Cholvan said.