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Siam Commercial Bank, the country's third largest, earned a historic high net profit of Bt21.4 billion last year, up 23.4 per cent from 2007.

Bangkok Bank saw its 2008 unaudited consolidated net profit rise 5 per cent from Bt19.2 billion a year earlier to Bt20.2 billion.

SCB's robust result was attributed to increases in net interest income of 13.2 per cent and non-net interest income of 12.4 per cent.

The bank's cost-to-income ratio also improved to 49.4 per cent, compared to 53 per cent in 2007.

 Its capital-adequacy ratio reached 16.3 per cent from 13.1 per cent in 2007. Its Tier 1 capital was at 11.86 per cent, well above the statutory minimum of 4.25 per cent.

The bank's non-performing loans were at 5.1 per cent of outstanding loans, down from 6.1 per cent of the previous year.

"In the year ahead, we anticipate further challenges and our business thrust will be anchored on a prudent and cautious stance," said Vichit Suraphongchai, chairman of the executive committee. Net interest margin of 3.93 per cent improved by about 13 basis points over the previous year.

Loan growth of 5.6 per cent was tempered in line with the economic slowdown.

In parallel, a high NPL coverage ratio was maintained throughout year, ending at 83.3 per cent, and, as a prudent measure, the level of monthly provisions was increased from Bt300 million to Bt500 million per month in the last quarter.

That pace is likely to remain at this higher level for 2009 in anticipation of the weakening economic environment.

Banks witnessed a wider interest spread last year.

Tisco Financial Group posted a net profit of Bt1.72 billion, up 4.2 per cent from 2007 on a 19.3-per-cent jump in interest and dividend income.

Its deposits soared 46.9 per cent, while its leasing business expanded 19.5 per cent. Its interest spread widened from 3.5 per cent to 3.7 per cent.

"The performance is satisfactory given the volatility in the financial markets as a result of the econom?ic crisis in the second half last year," CEO Pliu Mangkornkanok said.

ACL Bank's net profit also rose 8 per cent to Bt370.65 million. Its interest and dividend income increased 19.7 per cent to Bt1.78 billion.

However, Kiatnakin Bank reported an 11.6-per-cent drop in consolidated net profit, from Bt2.1 billion to Bt1.87 billion, after setting aside Bt990 million in provisions to counter the impacts from the financial crisis.