SCB leads the way to banks 'total net of Bt163 bn last year
The 11 listed banks recorded net profit in 2012 of Bt163.12 billion, marking a new high, up from Bt125.43 billion in 2011, led by Siam Commercial Bank, Kasikornbank and Bangkok Bank.
SCB reported a net of Bt40.20 billion. Earlier, KBank reported net profit of Bt35.26 billion and Bangkok Bank Bt33.02 billion.
Among the top four banks, Krungthai Bank's net profit was the lowest at Bt23.56 billion because its net in the fourth quarter plunged by nearly 90 per cent year on year to Bt906 million. KTB set a huge loan-loss provision for the quarter of Bt10.5 billion, higher than the consensus expected.
Bank players in the retail sector enjoyed double-digit growth in lending and net interest margins (NIM) as the government enhanced domestic consumption by launching populist projects such as the first-car scheme and increasing the minimum wage.
However, NIM in 2012 was the same as in 2011 because the banking industry had to pay a 0.46-per-cent deposit fee to the Financial Institutions Development Fund as well as 0.01 per cent to the Deposit Protection Agency midyear.
Bank of Ayudhya, the major player in consumer finance, showed top performance among its rivals. Its profit in 2012 saw the highest growth in the banking industry at 57.7 per cent to Bt14.62 billion while NIM rose 4.33 per cent. Loan growth expanded by 17.2 per cent.
Land and Houses Bank has no hire-purchase (lease-to-own) portfolio, but focuses on high-yield loans such as those to small and medium-sized enterprises and syndicated loans. The smallest bank recorded the second-highest loan growth at 52.06 per cent, causing its profit in 2012 to grow by 37.7 per cent to Bt682.78 million.
Tisco Financial Group enjoyed high loan growth of 34 per cent thanks to the government's first-car scheme, which drove loan growth at Kiatnakin Bank as well. KK's lending growth in 2012 recorded 24.5 per cent.
Thanachart Capital (TCAP), the holding company of Thanachart Bank, the biggest hire-purchase lender, reported loan growth of 18.6 per cent, mainly from auto loans that grew by 38.57 per cent.
TMB Bank is the only bank that reported a decline in net profit. It set huge extra provisions in a bid to reduce the proportion of non-performing loans. As a result, its NPL rate dropped to 3.75 per cent from more than 5 per cent in 2011. Still, its NIM increased to 2.73 per cent on fund-management costs.
An analyst at Kiatnakin Securities said the outlook was for net earnings of the banking industry in the current first quarter to be higher than in the fourth quarter of 2012 as loan-loss provisions would will return to normal along with dividend income from the Vayupak fund.
TCAP will book extra profit from selling life insurance this quarter.
The momentum of lending growth in the first quarter will be slightly down from the previous quarter because it is the season of debt repayment by corporate customers. However, instalment loans from the first-car scheme will continue to help carry on loan growth this quarter, said the analyst.