Bangkok Bank sees record profit in 2010 | Reuters
Bangkok Bank sees record profit in 2010 | Reuters
Reuters) - Thailand's top lender, Bangkok Bank Pcl BBL.BK, could achieve a record profit this year as an investment rebound spurs loan demand in Thailand's fast-growing economy, its executive chairman said on Monday.
Kosit Panpiemras, a former finance minister, told Reuters in an interview that the bank also wanted to tap an expected increase in housing loan demand, a slight shift in strategy for Thailand's biggest bank by assets.
Overall lending would grow about six percent this year, the top end of its targeted 4-6 percent range, after a 2.6 percent increase in the first six months, he said.
"This year's net profit will be higher than usual as our operations have improved following stronger business volume. We also have extraordinary income from selling securities," Kosit said, referring to gains from selling 19.26 percent of ACL Bank ICBCT.BK to China's ICBC (1398.HK) (601398.SS) early this year.
Thai banks are benefiting from a export-driven resurgence in the Thai economy that is swelling corporate borrowing. Industry analysts expect the trend to continue, especially after a September 2 court victory for stalled projects at Thailand's sprawling Map Ta Phut industrial estate that is expected to boost project lending.
Rising lending is boosting Bangkok Bank's stock, which has risen 25 percent this year, in line with the benchmark SET index .SETI but half the gains of number two lender Krung Thai Bank Plc KTB.BK, which is more exposed to government stimulus and has climbed 53 percent this year.
Shares in the third-largest bank, Kasikornbank Plc (KBAN.BK), are up 26 percent.
Despite the gains, Bangkok Bank remains cheaper than regional peers, trading at 10.7 times 2010 earnings, compared with 12.6 for Singapore's DBS Group Holdings Ltd (DBSM.SI) and 14.1 pct for Malaysia's Malayan Banking Bhd (MBBM.KL).
Against local rivals, Bangkok Bank is cheaper than Kaiskornbank's 11.6 times but pricier than Krung Thai Bank, according to Thomson Reuters earnings tracker StarMine.
'COULD BE A RECORD YEAR'
Bangkok Bank, with 1.78 trillion baht in assets and 1.05 trillion baht in loans, posted a 32 percent rise in first-half net profit to 12.9 billion baht. That followed a 20.8 billion baht profit last year that was a record high.
"Twenty billion baht ($652 million) is what we make in a normal year. But this year should be more than that ... and it's possible it could be a record year," he added.
Most analysts expect Bangkok Bank, about 48 percent-owned by foreign institutional investors, to a post a 19 percent net-profit increase this year to 24.7 billion baht ($805 million), according to StarMine.
Kosit, a 67-year-old economics graduate of the University of Maryland, said he was not too worried about the possibility of a revival in anti-government protests following a large but peaceful gathering on Sunday.
The red-shirted protesters have in the past targeted the bank for its links to former prime minister Prem Tinsulanonda, now chief adviser to Thailand's revered King Bhumibol Adulyadej. Prem was once an adviser to the bank and continues to have ties to it.
Reuters) - Thailand's top lender, Bangkok Bank Pcl BBL.BK, could achieve a record profit this year as an investment rebound spurs loan demand in Thailand's fast-growing economy, its executive chairman said on Monday.
Kosit Panpiemras, a former finance minister, told Reuters in an interview that the bank also wanted to tap an expected increase in housing loan demand, a slight shift in strategy for Thailand's biggest bank by assets.
Overall lending would grow about six percent this year, the top end of its targeted 4-6 percent range, after a 2.6 percent increase in the first six months, he said.
"This year's net profit will be higher than usual as our operations have improved following stronger business volume. We also have extraordinary income from selling securities," Kosit said, referring to gains from selling 19.26 percent of ACL Bank ICBCT.BK to China's ICBC (1398.HK) (601398.SS) early this year.
Thai banks are benefiting from a export-driven resurgence in the Thai economy that is swelling corporate borrowing. Industry analysts expect the trend to continue, especially after a September 2 court victory for stalled projects at Thailand's sprawling Map Ta Phut industrial estate that is expected to boost project lending.
Rising lending is boosting Bangkok Bank's stock, which has risen 25 percent this year, in line with the benchmark SET index .SETI but half the gains of number two lender Krung Thai Bank Plc KTB.BK, which is more exposed to government stimulus and has climbed 53 percent this year.
Shares in the third-largest bank, Kasikornbank Plc (KBAN.BK), are up 26 percent.
Despite the gains, Bangkok Bank remains cheaper than regional peers, trading at 10.7 times 2010 earnings, compared with 12.6 for Singapore's DBS Group Holdings Ltd (DBSM.SI) and 14.1 pct for Malaysia's Malayan Banking Bhd (MBBM.KL).
Against local rivals, Bangkok Bank is cheaper than Kaiskornbank's 11.6 times but pricier than Krung Thai Bank, according to Thomson Reuters earnings tracker StarMine.
'COULD BE A RECORD YEAR'
Bangkok Bank, with 1.78 trillion baht in assets and 1.05 trillion baht in loans, posted a 32 percent rise in first-half net profit to 12.9 billion baht. That followed a 20.8 billion baht profit last year that was a record high.
"Twenty billion baht ($652 million) is what we make in a normal year. But this year should be more than that ... and it's possible it could be a record year," he added.
Most analysts expect Bangkok Bank, about 48 percent-owned by foreign institutional investors, to a post a 19 percent net-profit increase this year to 24.7 billion baht ($805 million), according to StarMine.
Kosit, a 67-year-old economics graduate of the University of Maryland, said he was not too worried about the possibility of a revival in anti-government protests following a large but peaceful gathering on Sunday.
The red-shirted protesters have in the past targeted the bank for its links to former prime minister Prem Tinsulanonda, now chief adviser to Thailand's revered King Bhumibol Adulyadej. Prem was once an adviser to the bank and continues to have ties to it.
