The period for the gradual announcement of Q1/2026 financial results by listed companies on the Thai stock exchange has begun, with the commercial banking sector among the first to report their earnings.
Amid an economic environment still filled with uncertainty, especially as interest rates enter a downward phase, Thai commercial banks face pressure on both revenue and profitability. This is clearly reflected in Bangkok Bank's (BBL) performance, which has had to adjust to shrinking interest income while carefully balancing growth and risk management.
Bangkok Bank Public Company Limited (BBL) reported to the Stock Exchange of Thailand that Bangkok Bank and its subsidiaries recorded a net profit of 10,994 million baht for Q1/2026, down 12.9% compared to the same quarter last year, due to operating income factors.
Net interest income decreased by 12.3% following the bank's interest rate cuts, resulting in a net interest margin of 2.49%. Non-interest income dropped 6.6%, mainly due to lower net investment gains and fee income from lending, although dividend income and securities-related fees increased.
Operating expenses fell by 12.0%, with an operating expense-to-income ratio of 44.7%. The bank continues to prioritize ongoing operational efficiency improvements alongside prudent expense management.
In this quarter, the bank set aside 9,003 million baht for expected credit losses, maintaining a cautious approach to prepare for increasing economic challenges.
As of the end of March 2026, the bank’s loans totaled 2,661,368 million baht, up 2.0% from year-end, mainly from large corporate customers. The ratio of non-performing loans to total loans stood at 3.1%, a manageable level.
The coverage ratio for credit loss allowances to non-performing loans remained strong at 318.1%, reflecting the bank’s continued cautious and thorough provisioning policy.
At the end of March 2026, deposits amounted to 3,223,560 million baht, an increase of 0.9% from year-end. The loan-to-deposit ratio was 82.6%, while capital adequacy ratios,
including the total capital ratio and Tier 1 capital ratio to risk-weighted assets of the bank and its subsidiaries, were 20.9%, 16.4%, and 16.4%, respectively, all above the minimum regulatory requirements set by the Bank of Thailand.
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