Thailand has 11 commercial banks listed on the stock exchange, all of which are quite familiar. These banks have annual revenue figures ranging from billions to hundreds of billions of baht. TerraBKK Research closely monitored the performance in 2017 to answer 5 important questions reflecting the operations of commercial banks in terms of revenue and net profit, as well as financial ratios such as ROE, ROA, and NPM. The details are as follows:

  Which bank has the highest revenue?  <\/span>

          The performance of 4 banks that generated annual revenues of over 100 billion baht includes Siam Commercial Bank (SCB), Krung Thai Bank (KTB), Kasikorn Bank (KBANK), and Bangkok Bank (BBL). Over the past 4 years, Siam Commercial Bank (SCB) and Krung Thai Bank (KTB) have consistently competed for the top revenue spot. Kasikorn Bank (KBANK) ranks third, while Bangkok Bank (BBL) is fourth. For the latest year, 2017, Siam Commercial Bank (SCB) achieved the highest revenue at 125 billion baht. However, the most notable upward trend in revenue growth is seen in Krungsri Bank (BAY), averaging an impressive 8.4% growth per year.

  Which bank has the highest net profit?  <\/span>

         While high revenue usually correlates with high profit, this is not always the case for every bank. Krung Thai Bank (KTB) frequently dropped to fourth place over the past 4 years, while Bangkok Bank (BBL) often held third place, and Kasikorn Bank (KBANK) usually ranked second. Siam Commercial Bank (SCB) has consistently held the top position in terms of net profit, with the latest figure for 2017 at 43.1 billion baht. Although this is a decrease from the record high of 53.3 billion baht in 2014 (with total revenue of 123 billion baht), it still maintains the title for the highest net profit.

  Which bank has the highest ROE?  <\/span>

           Return on Equity (ROE) is a financial ratio that reflects a company's ability to generate returns for its shareholders. The higher the ROE, the better. Over the past 4 years, the average ROE for commercial banks has ranged from 9.65% to 14.06%. Therefore, TISCO Financial Group (TISCO) has the best ROE in the group, with figures of 15.79% in 2015, 16.88% in 2016, and the latest at 18.5% in 2017, showing a clear upward trend.

  Which bank has the highest ROA?  <\/span>

           Return on Assets (ROA) reflects how effectively a company utilizes its assets to generate returns. A higher value is better. For the performance of commercial banks, ROA tends to be relatively low, averaging 1% to 2.5% due to the nature of financial services, which typically have a higher proportion of loans and receivables in their assets compared to other businesses. The bank that achieved the best ROA is Kiattana Kbank (KKP), with a figure of 2.82% in 2017, and it is also in the group showing continuous ROE growth (Up Trend) over the past 3 years, along with TISCO Financial Group and Thanachart Capital (TCAP).

  Which bank has the highest net profit margin?  <\/span>

          In the past 2 years, Siam Commercial Bank (SCB) had the highest net profit margin in the group at 28.59% in 2015 and 29.02% in 2016. However, for 2017, it was surpassed by Kiattana Kbank (KKP) with a net profit margin of 28.04%, the highest in the group. Following closely are 3 banks with a margin of around 25%: Siam Commercial Bank (SCB), LH Financial (LHBANK), and TISCO Financial Group (TISCO). In terms of continuous growth in net profit margin (Up Trend) over the past 3 years, Kiattana Kbank (KKP) and TISCO Financial Group (TISCO) are also in this group, along with Thanachart Capital (TCAP). ---TerraBKK

Article by: TerraBKK Investment Tips
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