Bangkok Bank: Record profits despite economic challenges!

Bangkok Bank: Record profits despite economic challenges!

Bangkok Bank recently published its financial results for the third quarter of 2025 and painted an encouraging picture. How Kaohoon International reported, net profit rose to 13.79 billion baht, up 10.5% year-on-year. Earnings per share also increased to 7.22 baht, up significantly from 6.54 baht in the same period last year.

But what is behind these numbers? The main reason for the profit increase is gains from financial instruments and investments, although net interest income decreased compared to the previous quarter and the previous year. For the first nine months of 2025, the bank reported a total net profit of 38.25 billion baht, up nearly 10% from the same period last year. However, the banks have not been left unaffected by everyday macroeconomic life, particularly the challenges associated with the current political and economic situation.

Challenges in the market

In the first quarter of 2025, the bank already reported net profit of 12.62 billion baht, up 19.9% ​​year-on-year. Loud Thai Times However, this positive development was affected by the slowdown in the Thai economy, which had a negative impact on private investment. In addition, uncertainties in global trade and the decline in Chinese tourism weighed on achievements in the services sector.

However, the bank also faces challenges as lending in Thailand is facing a decline. In the second quarter of 2025, the overall banking sector recorded a 0.9% decline in loans, while the number of non-performing loans (NPLs) increased slightly. Bangkok Post reports that loans for small and medium-sized enterprises (SMEs) and consumer loans in particular have fallen sharply, further weighing on asset quality in this sector.

Fluctuating lending

Demand for loans remains weak and banks have implemented strict lending practices. These developments are leading to stagnant credit growth and credit contraction is expected to continue in the next quarter. A significant increase in the NPL ratio to 2.91% is another red flag, especially for SME loans, which rose to 7.62%.

In summary, despite solid financial metrics, Bangkok Bank has to cope with a complex market environment. The challenges posed by geopolitical uncertainties and weak demand for credit are constant companions in Thailand's current economic reality. It remains to be seen how these factors will impact the bank's future performance.