Second-quarter net profits for most large commercial banks dropped year-on-year, due mainly to higher corporate tax burdens and lower margins. But Krung Thai Bank and Bank of Ayudhya bucked the trend with profit gains.

Net profits for commercial banks - except Standard Chartered Bank (Thai) and Thanachart Bank - for this year's second quarter totalled Bt21.26 billion, a drop of about 10 per cent from the Bt23.62 billion recorded in the same period last year.

Bangkok Bank's second-quarter net profit this year was Bt4.39 billion, down 21 per cent from the Bt5.57 billion recorded for the same period last year.

The bank's after-tax profit for the first half of this year was Bt9.6 billion, down Bt2

billion from the first half of last year, when the bank benefited from a corporate income-tax exemption.

Siam Commercial Bank's second-quarter net profit for this year was Bt4.17 billion, a 7-per-cent drop from the Bt4.27 billion recorded for the same period last year.

Kasikornbank recently reported its second-quarter net profit as Bt3.55 billion, compared with

last year's Bt3.85 billion in the second quarter, or a decrease of 8 per cent.

TMB Bank also recorded a declining second-quarter net profit of Bt1.2 billion, dropping 41 per cent from Bt2.05 billion in last year's second quarter.

The reduction was largely due to an increase in the bank's interest expenses of Bt3.9 billion, or 79 per cent year-on-year.

Siam City Bank announced a Bt743-million net profit for the second quarter, falling 53 per cent from the Bt1.59 billion recorded in the same period last year.

Krung Thai Bank's net profit for this year's second quarter was Bt3.82 billion, a jump of 16 per cent from Bt3.3 billion in last year's second quarter.

The country's largest state-owned bank recorded a net profit of Bt8.62 billion, up 13 per cent year-on-year.

Bank of Ayudhya's second-quarter net profit was Bt1.69 billion, up 14 per cent from Bt1.48 billion in the same period last year. The bank's net profit for the first half of this year was Bt3.5

billion, up 16 per cent year-on-year.

BankThai posted a second-quarter net profit of almost Bt302 million, an increase of more than 125 per cent from the Bt134 million recorded for the same period last year.

Somruedi Banchongduang

The Nation