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Published on July 21, 2007

President and CEO Tan Kong Khoon yesterday said the bank had completed its restructuring and was set to push for more activity through its 2,626 automatic teller machines and 562 branches nationwide.

It will focus on personal loans and supporting its subsidiaries and affiliates, including two asset-management companies and insurance firms.

As expected, the bank posted a first-half net loss of Bt7.6 billion by setting aside provisions worth Bt11.5 billion in a bid to go beyond full compliance with International Accounting Standard 39. Its second-quarter net loss was Bt8.81 billion, compared with a net profit of Bt1.61 billion in the same period last year.

During the first half, its NPLs rose from Bt43.6 billion to Bt57 billion, or a consolidated Bt74 billion.

Chief financial officer Janice Van Ekeren said that after these moves, the bank did not anticipate any more provisioning requirements and would try its hardest to write off its NPLs to at least the same level of Bt62 billion on a consolidated basis as recorded last year.

Khoon said next Monday, the bank's asset-management committee would discuss whether to cut the bank's loan and deposit rates in response to the Bank of Thailand's 25-basis-point rate cut announced on Wednesday.

Most banks have already announced their second-quarter earnings.

Standard Chartered Bank (Thai) saw a net loss of Bt205.58 million, compared with a net profit of Bt460.27 million in the same period last year.

BankThai's net loss was Bt68.2 million, far lower than last year's loss of Bt1.39 billion.

Bangkok Bank's unreviewed net profit was Bt5.34 billion, up 21.64 per cent from Bt4.39 billion last year.

Siam Commercial Bank's unreviewed net profit jumped 16.5 per cent quarter on quarter and 3.3 per cent year on year to Bt4.31 billion.

Kasikornbank's Bt4.09-billion net profit was up 15.32 per cent year on year. This brought its six-month net profit up 11.23 per cent year on year to Bt7.96 billion.

TMB Bank sank into a net loss of Bt6.13 billion, compared with a net profit of Bt1.2 billion last year.

State-run Krung Thai Bank's net profit plunged 86.87 per cent to Bt527.9 million, from Bt4.02 billion a year earlier, due mainly to much higher loan-loss provisioning.

It set aside Bt6.9 billion in loan-loss reserves, up from Bt1.91 billion last year, in order to comply with new international accounting standards.

Several commercial banks have already reacted to the policy rate cut by chopping their loan and deposit rates.

Kasikornbank reduced its lending rate 0.15 percentage point, while trimming some deposit rates 0.25 percentage point, effective yesterday.

Piyarat  Setthasiriphaiboon

The Nation