Bangkok Bank (BBL) said its third-quarter net profit attributable to owners fell 31.2% year on year to THB9.49bn ($279.9mn), down from THB13.79bn ($410.6mn) a year earlier, according to results published on October 20. The Thai lender said the drop came mainly from lower interest earnings after it cut rates to support borrowers, together with a steep fall in income tied to financial markets.
As reported by Kaohoon International, lower benchmark interest rates are squeezing the bank's core lending business, and weaker trading and investment returns have hit at the same time. Net interest margin narrowed to 2.50% in the July to September period from 2.72% a year earlier, because yields on earning assets declined.
Net interest income was THB29.04bn, down 5.6% from THB30.75bn in the same quarter of 2025. Non-interest income fell 31.2% to THB11.63bn. Investment gains dropped 77.9% to THB829mn, and gains on financial instruments measured at fair value through profit or loss fell 52.9% to THB2.58bn.
Fee and service income partly offset the decline. It grew 3.2% to THB6.76bn, supported by mutual funds, bancassurance and securities trading.
Operating expenses slipped 0.9% to THB20.52bn. Because revenue fell faster than costs, the cost-to-income ratio rose to 50.4% from 43.4% a year earlier.
The bank set aside less for bad debts during the quarter. Expected credit losses fell 17.8% to THB8.01bn, which eased some of the pressure on profit.
Total lending reached THB2.69 trillion at the end of September, up 3.2% from the start of the year. Large corporate clients and lending through the bank's overseas network accounted for most of the growth.
Gross non-performing loans stood at THB102.85bn, giving a non-performing loan ratio of 3.2%. The bank's coverage ratio for bad loans was 322.1%.