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Bank of Asia announces THB 838 million Net Profit for 9M05
* * * * *
Year-on-year Core Operating Profit up 22%
* * * * *
NPLs declined 13% from end-2004
Bangkok, 20 October – Bank of Asia (BOA), a subsidiary of the United Overseas Bank of Singapore, today announced an unaudited net profit of THB 202 million for the third quarter of 2005 as opposed to a net loss of THB 519 million recorded in the corresponding period last year. Consequently, the Bank's net profits for the 9 months ended 30 September 2005 was THB 838 million, an increase of 121.1% from THB 379 million recorded in the same period last year.
The improved year-on-year result was due largely to higher operating profits as well as lower provisioning requirements and partially offset by merger-related expenses.
The Bank's total revenue for 9M05 increased 4.3% from the corresponding period to THB 5,320 million. Net interest and dividend income grew by 6.1% to THB 3,323 million while non-interest income grew by 1.4% to THB 1,997 million. On the other hand, the Bank's year-to-date operating expenses declined by 2.8% to THB 3,544 million from last year's THB 3,647 million. Once-off merger-related expenses amounted to THB 296 million for the first nine months of 2005.
Consequently, operating profit improved marginally by 1.7% to THB 1,480 million. However, the normalized operating profit (excluding the once-off merger-related expenses) would have been THB 1,776 million or 22.1% higher than the same period last year. (Please see Annexes 1 and 2 for summarized profit & loss statements.)
For the nine months in 2005, total provisions for doubtful debts was THB 623 million. This was 41.1% lower than the THB 1,057 million set aside in same period in 2004.
As at September 30, 2005, the Bank's total loans were THB 118,343 million compared to THB 118,517 million as at end-2004. However, total non-performing loans (NPLs) declined further by THB 2,486 million or 13.1% from end-2004 to THB 16,476 million. NPL to total loan ratio as at September 30, 2005 was 13.9%, an improvement from the 16.1% recorded as at end-2004.
BOA's Capital Adequacy Ratio (CAR) was 15.2% as at 30 September 2005 compared to 14.6% as at end of 2004.
| Annex 1 |
| BANK OF ASIA PUBLIC COMPANY LIMITED AND SUBSIDIARIES
SUMMARIZED FINANCIAL STATEMETNS
FOR THE SIX-MONTH PERIODS ENDED 30 JUNE 2005 AND 2004 |
| Profit & Loss Statements |
THB Million |
| |
9M2005 |
9M2004 |
% Incr. /
(% Decr.) |
| Net income from interest and dividends |
3,323 |
3,133 |
6.1 |
| Non-interest income |
1,997 |
1,969 |
1.4 |
| Total revenue |
5,320 |
5,102 |
4.3 |
| Non-interest expense |
3,544 |
3,647 |
(2.8) |
| Core operating profit |
1,776 |
1,455 |
22.1 |
| Integration expenses |
296 |
- |
- |
| Operating profit before provision |
1,480 |
1,455 |
1.7 |
| Provisions for doubtful debts |
623 |
1,057 |
(41.1) |
| Net profit before tax |
857 |
398 |
115.3 |
| Income tax |
19 |
19 |
- |
| Net profit after tax |
838 |
379 |
121.1 |
| Key Balance Sheet Items |
THB million |
| |
30-Sep-05 |
31-Dec-04 |
% Incr. /
(% Decr.) |
| Loans |
118,343 |
118,517 |
0.2% |
| NPLs |
16,476 |
18,962 |
(13.1%) |
| Deposits |
126,347 |
138,034 |
(8.5%) |
|
Annex 2 |
| BANK OF ASIA PUBLIC COMPANY LIMITED AND SUBSIDIARIES
SUMMARIZED FINANCIAL STATEMETNS
FOR THE THREE-MONTH PERIODS ENDED 30 SEPTEMNER 2005 AND 2004 |
|
Profit & Loss Statements |
THB Million |
| |
3Q2005 |
3Q2004 |
% Incr. / (% Decr.) |
| Net income from interest and dividends |
1,132 |
996 |
13.7 |
| Non-interest income |
753 |
575 |
31.0 |
| Total revenue |
1,885 |
1,571 |
20.0 |
| Non-interest expense |
1,235 |
1,152 |
7.2 |
| Core operating profit |
650 |
419 |
55.1 |
| Integration expenses |
156 |
- |
- |
| Operating profit before provision |
494 |
419 |
17.9 |
| Provisions for doubtful debts |
290 |
931 |
(68.9) |
| Net profit before tax |
204 |
(512) |
- |
| Income tax |
2 |
7 |
(71.4) |
| Net profit after tax |
202 |
(519) |
- |
Contact Person:
Investor Relations
Nongluk Nantawannakul
nongluk@boa.co.th
0-2343-4960 |
