BAY, SCIB back in black

Tan Kong Khoon, president and CEO of BAY, said yesterday that BAY made a net profit of Bt4.89 billion in 2008, while in 2007 it suffered a net loss of Bt3.99 billion because of provisions.

"According to the authorities' GDP forecast of 0.5-2per cent this year, the bank expects loan growth of 6 per cent or Bt35 billion, consisting of Bt15 billion in retail loans, Bt11 billion in small business loans and Bt9 billion in corporate loans," he said.

BAY was successful in working down its non-performing loans (NPLs), he said.

"Consolidated NPLs were reduced from 15.5 per cent in 2007 to 8.9 per cent last year and the bank's NPLs were decreased from 10 per cent in 2007 to 5.5 per cent last year," he said.

BAY's net interest margin (NIM) improved from 3.21 per cent in 2007 to 4.13 per cent last year, thanks to the expansion of its retail banking business.

The bank aims to maintain its NIM at 4.2 per cent this year.

Chaiwat Utaiwan, president and CEO of Siam City Bank (SCIB), said his bank reported a consolidated net profit of Bt4.13 billion last year, reversing its loss of Bt2.1 billion in the previous year.

NPLs were at 7.56 per cent of outstanding loans after taking full provisions of Bt2 billion against NPLs caused by two big borrowers in the fourth quarter.

Its NIM increased by 27 basis points from 2.88 per cent in 2007 to 3.15 per cent last year.

"The bank has been allowed to issue debentures of not over Bt80 billion in case the bank needs liquidity and aims to get loan growth of 6 per cent or at least Bt18 billion this year," he said.

SCIB also plans to raise its capital adequacy ratio from 11.73 per cent currently to hopefully 13-14 per cent by issuing subordinated debentures.

It's now selecting the financial advisers, which would be finalised in a few days. After that it needs four to five weeks for planning.

Prasarn Trairatvorakul, president of Kasikornbank, said the bank posted a 2008 consolidated net profit of Bt15.3 billion, up 2.19 per cent from Bt15 billion in 2007, while NPLs stood at 3.09 per cent.