Listed banks report 32% dip in profits

The average of 10 SET-listed commercial banks and subsidiaries is a 32% decline in combined net profit based on unaudited financial statements for 2020, largely attributed to higher loan-loss reserves.

Aggregate net profit stood at 138 billion baht last year. The double-digit year-on-year reduction in combined net profit was mainly due to higher loan-loss reserves allocated in preparation for economic uncertainties from the Covid-19 impact.

Bangkok Bank (BBL) reported the biggest decrease in net profit, tumbling by 52% year-on-year to 17.2 billion baht, as the bank allocated a substantial amount of expected credit losses (ECLs) as a buffer against bad debts.

BBL set aside ECLs valued at 31.2 billion baht in 2020, resulting in a higher loan coverage ratio at 182%.

The bank’s capital adequacy ratio (CAR) increased to 18.3%, of which 15.7% was tier-1 capital…