All information is available in Thai only.

Thammasat University has appointed Bangkok Bank Public Company Limited to develop the TU GREATS app to provide students and university personnel with services ranging from student ID card creation to student registration payment starting in the academic year 2020. The MoU signing ceremony took place on July 22, 2020 with an objective to drive the university toward a cashless campus to create a complete digital ecosystem in line with the digital way of life.

Associate Professor Gasinee Witoonchart, President of Thammasat University, said that this cooperation between Thammasat University and Bangkok Bank is an important step in line with the university’s strategy to become a university of the future and to be one of the leading universities meeting international standards with an ability to adapt and compete in the 21st century. Bangkok Bank will play a part in supporting the university’s digital transformation to lay the foundation and further complete Thammasat University’s digital ecosystem.

Meanwhile, the collaboration will support the move to a cashless society within the university under the concept of a “cashless campus” in line with the university's vision that emphasizes both learning and facilitating students and university personnel through development in the following five dimensions:

1. Creating graduates with GREATS characteristics which are essential elements of leaders who succeed in the 21st century, including:
   G: Global Mindset – Modern and able to keep abreast of a changing world in various dimensions
   R: Responsibility – Have a sustainable sense of responsibility towards oneself, other people, society, and the environment
   E: Eloquence – Able to communicate creatively and efficiently
   A: Aesthetic Appreciation – Appreciate the beauty and value of art, music, and architecture
   T: Team Leader – Able to collaborate with others both in the roles of leader and team member
   S: Spirit of Thammasat – Have the spirit of Thammasat and confidence in democracy, rights and freedom, and accept different opinions and fight for fairness.
2. Conducting research and innovation that bring developmental changes to Thai society and the world.
3. Creating a sense of globalism and a collaborative network both domestically and internationally.
4. Focusing on being the university for people providing academic and health services that meet international standards.
5. Aiming for stability and sustainability with modern management.

“With this cooperation, Thammasat University and Bangkok Bank share a common goal of implementing beneficial projects for students and university personnel through the TU GREATS app, including student ID card making and payment of registration and fees via the digital bill payment system to drive the university to become a cashless campus. We will also initiate new projects and support current projects that will benefit up to 49,615 people consisting of 41,010 students, 2,207 lecturers and 6,398 university personnel, to improve the quality of teaching and learning, deliver knowledge and provide greater convenience to university students and personnel,” said Associate Professor Gasinee.

Bangkok Bank Executive Director Charamporn Jotikasthira added that under the collaboration Bangkok Bank will continue to develop more services to support the digital lifestyles of Thammasat University students and personnel. New services under the TU GREATS app will be developed for a wide range of needs including academia and knowledge, digital payment for tuition fees and other expenses, as well as facilitating life on campus. The app will be an important gateway to a digital world where Thammasat University students and personnel are connected on the same platform with the following services:

1. The TU GREATS app is developed by Thammasat University and Bangkok Bank for students and their parents, faculty and staff. The app works on both iOS and Android operating systems and uses a Face ID technology to enhance security as well as Live Watermark technology for virtual student ID cards. The technologies make using the app convenient, quick and secure as it has an anti-forgery and anti-spoofing system. The app is connected to students and the university’s database to provide convenience on many fronts.
   
   
   • Teaching and learning – The app facilitates access to information. Students can check their class timetable, academic results, information about their university advisor and course information. The app promotes teacher-student engagement and communication allowing for taking attendance and class participation, enables university advisors to provide advice to their students who can make appointments via the app, and provides access to online study resources and other information 24 hours a day.
   • Payment – The app supports payment of registration fees, and other products and services of the university including payment to vendors on campus and surrounding areas. Payment can be done via the app in a convenient, quick and secure fashion which reinforces the university’s vision to be the cashless campus.
   • Lifestyle – The app enables users to create events and accepts online registration. It is also a channel to receive information and communication from the university and faculty, helping to build a digital society between students and the university.
     
     
2. Student card (plastic card) – The Bank will create a student ID card with functions in conjunction with the Be 1st Smart TPN Mastercard Debit Card, which can be used for financial transactions similar to Bangkok Bank debit cards, withdraw cash from ATMs and swipe to pay for goods. The card also has a distinctive style and design on the front, showcasing the work of a student who won the first prize in a card design contest and received the highest votes from Thammasat students.
   
   
3. Expand collaboration to build Thammasat University into a completely cashless campus. The university and the Bank have co-developed a digital ecosystem with payment systems and equipment installed on campus and in surrounding areas to support e-payment and QR Code systems, as well as accelerated the development of more diverse transactions including bill payments systems and connecting with Bangkok Bank Mobile Banking App. Moreover, the Bank has launched campaigns to encourage students and personnel to continuously use and transact on the TU GREATS app.

“The TU GREATS app will help Thammasat students, faculty and staff to live their lives more conveniently on campus, where various services have been developed from surveying the opinions and needs of Thammasat people. The app is a real central platform to unite Thammasat people – not only in teaching and learning, but also supporting today's digital lifestyles, as it will be an important channel for transactions and access of university information. It is also an electronic wallet that connects to the Bangkok Bank Mobile Banking application for payments. In the future, the Bank will continuously add useful services for Thammasat people to knit the TU GREATS app into Thammasat people’s digital lifestyles both in the university campus and in everyday life,” said Charamporn.

In the first half of 2020, the Thai economy declined sharply due to the impact of the containment measures to combat the coronavirus (Covid-19) pandemic, global lockdown measures, and international travel restrictions which led to the collapse of tourist arrivals. Thai exports and imports slumped on weak demand from trading partners, which also dampened domestic economic activity. Private consumption plummeted with a sharp drop in car sales and disruption to service activities. Manufacturing production and investment contracted in line with the drop in external and internal demand. Nevertheless, government spending and investment rose as the government accelerated disbursements to stimulate the economy.

Since the outbreak of the Covid-19 pandemic, which has had an adverse economic effect on individuals and businesses across various sectors, the government and the Bank of Thailand (BOT) have launched a series of financial and fiscal relief measures to help businesses and individuals to get through the crisis. The Bank has supported the government and the BOT policies by promptly issuing measures to assist business customers such as additional credit lines and loan holidays, and to help retail customers by lowering minimum payment rates and extending credit limits. The Bank also lowered interest rates for both business and retail customers. Aware of the difficulties facing businesses and individuals, the Bank is committed to be a “puen koo kit” (trusted partner) by looking after and assisting customers, so they have sufficient funds and liquidity to recover from the pandemic. Moreover, the Bank prioritizes health, hygiene and the wellbeing of customers, employees and the public, and has strictly implemented safety and protection standards to prevent and control the spread of the Covid-19. The Bank is a trusted partner supporting everyone to get through this crisis together.

Bangkok Bank welcomed Permata into its financial group in May 2020

On May 20, 2020 Bangkok Bank completed the acquisition of its 89.12 percent shareholding in PT Bank Permata Tbk (Permata) in Indonesia. Permata is now the newest member of Bangkok Bank's financial group and will enhance the capability of the Bank to meet customers’ needs in operating their businesses in ASEAN. The acquisition was in accordance with the Bank’s strategy to strengthen its foundations for stability and sustainable growth. The consolidated financial statements of Bangkok Bank and its subsidiaries in the first half of 2020 include the performance of Permata since the completion of the acquisition. Permata’s total assets and liabilities as of June 30, 2020 amounted to Baht 336,964 million and Baht 285,022 million, respectively, which accounted for 9 percent of the Bank’s total assets and 8 percent of the Bank’s total liabilities.

Amid the severe global economic downturn and uncertain prospects of the Thai economy due to the impact of the Covid-19 pandemic, Bangkok Bank continued its prudent approach toward business management while maintaining a strong financial status and capital reserves to support financial sustainability and to move forward to the “New Normal”.

At the end of June 2020, the Bank’s loans amounted to Baht 2,353,848 million, an increase of 14.2 percent from the end of 2019. When excluding Permata, loans grew by 3.4 percent from increases in loans to businesses in line with the projection late last year. The ratio of non-performing loan (NPL) to total loans was 4.1 percent. The ratio of loan loss reserves to NPL was 170.5 percent. The Bank continues to work closely side by side and take good care of customers to help them withstand the economic crisis and move forward to the “New Normal”, while maintaining close control of credit underwriting and risk management. The Bank also set aside an appropriate level of expected credit loss in accordance with its conservative business management approach across business cycle.

In terms of capital and liquidity, as of June 30, 2020, the Bank’s total deposits amounted to Baht 2,852,295 million, an increase of 20.3 percent from the end of 2019. When excluding Permata, total deposits increased by 8.9 percent from all types of deposits. This is due to customers’ focus on quality in their asset management. The loan to deposit ratio was 82.5 percent, reflecting an adequate liquidity position to cushion against economic uncertainties. The total capital adequacy ratio, Common Equity Tier 1 capital adequacy ratio and Tier 1 capital adequacy ratio of the Bank and its subsidiaries were 16.6 percent, 14.0 percent, and 14.0 percent respectively, comfortably above the BOT’s minimum capital requirements.

Bangkok Bank and its subsidiaries reported net profit of Baht 10,765 million for the first half of 2020

In the first half of 2020, Bangkok Bank and its subsidiaries reported a net profit of Baht 10,765 million including Permata’s net profit since the date the acquisition was completed. The Bank’s net profit decreased from the first half of 2019, primarily due to additional reserve made for expected credit losses in line with prudent management. The reserves are to provide a cushion against the increasing uncertainty from the economic contraction due to the impacts from Covid-19 which are still difficult to predict the final outcome given it is a widespread public health crisis affecting the global economics which is different from economic crises happened in the past.

Net interest income increased by 5.6 percent from the first half of last year. When excluding Permata, the Bank’s net interest income increased by 1.8 percent, in line with an increase in loan volume. The net interest margin stood at 2.31 percent. Non-interest income decreased mainly due to lower gains on investments and net fees and service income. The main reason for the decrease in net fees and service income was the change in recognition of fee income from loan-related services in accordance with the TFRS 9. Operating expenses were similar to the first half of 2019, and the cost to income ratio was 45.0 percent. The Bank continues to take a well-disciplined approach for cost management focusing on spending to enhance public health, improve working efficiency, as well as slowdown discretionary spending during the period of economic stagnation.

Implementation of new financial reporting standards (group of financial instruments)

The Bank and its subsidiaries adopted the TFRS 9 from January 1, 2020 onwards, without restating previous financial statements. The principal changes can be summarized into classification and measurement of financial assets and liabilities, calculation of impairment using the concept of expected credit loss, hedge accounting, and the change in recognition of interest income from loans using the effective interest rate (EIR) method.

Bangkok Bank responds to the BOT’s phase two relief measures to help retail customers affected by the COVID-19 outbreak including credit card customers, personal loan customers under supervision as well as mortgage and home equity loan customers. Initiatives include lowering the interest rate ceiling, extending credit limit and issuing additional minimum payment policies including debt restructuring to help relieve the debtor's burden.

Bangkok Bank Senior Executive Vice President Suvarn Thansathit said that the Bank understands the difficult circumstances people are currently facing, which is why it has launched supportive measures to help retail customers including credit card customers, personal loan customers under supervision as well as mortgage and home equity loan customers by lowering the interest rate ceiling, extending credit limit and issuing additional minimum payment policies such as lowering minimum payment rates, changing term loans, reducing installment payments, postponing payment of installments or principal as well as debt restructuring to alleviate the anxiety of customers in light of the COVID-19 outbreak. This is also in accordance to the BOT’s announcement about phase two relief measures.

Detailed information about the supportive measures are as follows:

1) Credit card customers

General measures

- Lower interest rate ceiling of 16% per annum (from 18% per annum), effective from August 1, 2020 onwards
- Temporary extension of credit limit from 1.5 times of monthly income to 2 times of monthly income for customers with good payment history and customers whose average monthly income or average monthly cash flow into their deposit account is below 30,000 baht. The measure is effective from August 1, 2020 - December 31, 2021.

For minimum payment measures, customers can register from July 1, 2020 to December 31, 2020.

- Maintain 5% minimum installment rates in 2020-2021, increasing to 8% in 2022 and 10% in 2023
- Extend term loan to 48 months or in accordance with the customer’s debt service capability. Interest rate is not more than 12% per annum. The Bank will determine the term in accordance with its debt service capability criteria. The term must not exceed the approved limit, when combined with the original credit balance.
- Issue additional relief measures for customers affected by the crisis who do not have sufficient income to pay the debt on a case-by-case basis.

2) Personal loan customers under supervision

General measures

- Lower interest rate ceiling of 25% per annum, effective from August 1, 2020 onwards
- Temporary extension of credit limit from 1.5 times of monthly income to 2 times of monthly income for customers with good payment history and customers whose average monthly income or average monthly cash flow into their deposit account is below 30,000 baht. The measure is effective from August 1, 2020 - December 31, 2021.

For minimum payment measures, customers can register from July 1, 2020 to December 31, 2020.

Revolving loan

- Lower minimum payment rate in accordance with debt service capability
- Extend term loan to 48 months or in accordance with the customer’s debt service capability. Interest rate is not more than 22% per annum. The Bank will determine the term in accordance with its debt service capability criteria.

Installment loan

- Lower installment by at least 30% with lower than 22% interest rate per annum

3) For mortgage and home equity loan, customers can register from July 1, 2020 - December 31, 2020.

- Defer payment of principal and interest for three months; or
- Defer payment of principal (paying interest only) for three months and consider reducing interest for customers on a case-by-case basis; or
- Reduce repayment amount by extending payment term
- Provide additional supportive measures for home loan and home equity loan customers as per the Bank’s consideration on a case-by-case basis

4) Debt restructuring

- In the case that customers cannot repay an agreed amount in a contract or minimum repayment measure or other measures, the Bank will proceed with debt restructuring for customers by considering repayment ability in order to immediately support and ease burden for customers.

"Bangkok Bank has urgently put in place these measures to assist customers and alleviate their financial issues by focusing on providing assistance to clients affected by the COVID-19 outbreak. Our priority is to help customers before their credit history is impacted by bad debt as it will adversely affect their loan applications in the future," said Mr. Suvarn.

For those who have various types of loan portfolios with Bangkok Bank, they are able to request assistance for all types of loans in accordance with the above conditions. Initially, customers can send their loan request and make a registration online via https://www.bangkokbank.com/COVID19-Update, scan the attached QR Code or visit the Bank’s branches or our business centers from July 1, 2020 to December 31, 2020. Meanwhile, customers who are not severely affected or able to pay loan installments can also apply for loans and make loan repayment as usual.

For more information, please visit Bangkok Bank website, Bangkok Bank LINE Official or call Bualuang Phone 1333

 

Bangkok Bank is launching a new version of Bangkok Bank Mobile Banking with a new design for a better experience in the age of New Normal and Mobile First. The Bank aims for 11 million users by the end of this year.

Bangkok Bank Executive Vice President Prassanee Ouiyamaphan said the Bank’s mobile banking application Bangkok Bank Mobile Banking has been redeveloped. The Bank has responded to customer feedback by creating a new design and providing a better and more satisfying customer experience. The app will be easier and more convenient to use with several new features, including:

• New and modern design and the addition of easy-to-read streaming charts.
• Quick access to transactions through a shortcuts menu.
• Easy funds transfer with fewer errors. The option to copy and paste account numbers means there is no need to memorize or write down account numbers and full account numbers can be viewed in a single click.
• Easy app management, such as the ability to add, delete and sort third-party accounts, view transaction history by month, and frequently used transactions are grouped together.
• Easy bill payment by scanning on the first page. Payments can be made quickly in five seconds or just two clicks. Searching for a payee is easy with new categorization, a list of popular payees, and payees’ logos.
• International security standards with protection against outdated operating systems and rooted or jailbroken devices. Customer data will be secure as these devices will not be able to make transactions.

The update will be rolled out in batches and the first batch of Bualuang mBanking customers can update their mobile banking application to the new version from today. All users will be able to update within two weeks. The Bangkok Bank Mobile Banking Application will be available for mobile devices with iOS version 9.0 and above or Android version 5.0 and above (Android version 7.0 or above is recommended for the better experience).

Existing customers can access the application using their existing 6-digit PIN without having to reregister. New customers can download the app and sign-up with a Bangkok Bank debit card or credit card number.

“The Bank has upgraded and added additional features to our new version of the Bangkok Bank Mobile Banking application to provide a better experience and improved customer convenience and satisfaction. The application reflects the Bank’s commitment to be a Mobile Banking provider that serves our customer’s needs regarding financial transactions on a smartphone, as this is essential for today’s customer’s lifestyle”

Mrs. Prassanee said the new version of Bangkok Bank Mobile Banking will suit the changing lifestyles of consumers in the post-pandemic or ‘New Normal’ world – a society in which people are accustomed to doing their daily activities online and being ‘mobile first’ in their banking habits. This trend is accelerating due to increased access to the internet and smartphones. Mobile banking will become the main channel for financial transactions and accessing various products of the Bank as well as those of the Bank's subsidiaries.

"Data during the first four months of this year clearly reflects this changing customer behavior. The number of mobile banking users has grown by approximately 28% compared to the same period last year. Meanwhile, fund transfers and bill payments via mobile banking grew by 51% and 47%, respectively. This indicates that customers are becoming more familiar with making transactions via mobile banking. Furthermore, the COVID-19 outbreak has also raised concerns over using cash and increased the popularity of online purchasing via mobile banking due to the inconvenience of going to physical stores. In addition, many customers have registered to use their Bangkok Bank account for PromptPay to receive 5,000-baht handouts from the government.”

Mrs. Prassanee added that: “Bangkok Bank is prioritizing investment in its IT systems in order to increase the efficiency of digital services. The Bank aims to be a leader in providing digital payment solutions with a wide range of applications to cater to the needs and lifestyles of all customers, whether payers or payees. The launch of Bangkok Bank Mobile Banking will help to create a better user experience. We will also introduce new services, such as online account opening via the National Digital ID platform for identity authentication, which is currently in the BOT’s Regulatory Sandbox. We have thoroughly tested the new system to ensure a seamless transition. We believe that by the end of this year, the Bank's mobile banking users will increase from 8.6 million to 11 million as targeted.”

More Details about Bangkok Bank Mobile Banking

Bangkok Bank supports the move towards a cashless society by offering Bualuang Smart Bill Payment service to Rajapruek Taxi Cooperative and Bawon Taxi drivers. This enables them to conveniently, swiftly and safely accept fare payments and taxi rental fees via QR Code on Bualuang mBanking and receive real-time transaction reports that perfectly answer the needs of business in the new normal era.

Bangkok Bank Executive Vice President Pipat Assamongkol says the bank is responding to the needs of business customers affected by the COVID-19 outbreak as well as changes in the new normal era. The transition to a cashless society has intensified and has now become a part of everyday life.

“As a trusted partner, Bangkok Bank wants to enable your SME business to reach success. Therefore, the Bank is proud to offer our Bualuang Smart Bill Payment service as an important support to business management with digital payment total solutions. This provides greater convenience to customers while reducing the complexity and errors that may occur from cash management procedures. At the same time, the service also helps increase the efficiency of business by allowing businesses to allocate personnel using digital technology instead of a manual management process. This technology will serve a variety of businesses, especially those with large numbers of daily transactions, such as property management businesses, fresh market operators, tutorial schools, and car rental services.

“The Bualuang Smart Bill Pay service is suitable for almost every type of business that has a lot of daily transactions. The service will help reduce the burden of reviewing these transactions, which can be both time-consuming and labor-intensive and might affect business competitiveness. Bualuang Smart Bill Payment helps business customers with their cash management by providing payment services that cover both Bangkok Bank and other bank channels. It will facilitate the company’s customers and business partners by providing summaries of income and expenses. In addition, business customers can request a report to check payments from their customers and business partners through electronic channels that are available anywhere, anytime. Moreover, this service also meets the needs of business customers in the new normal era as people try to avoid direct contact with cash."

The Rajapruek Taxi Cooperative and Bawon Taxi Cooperative are examples of entrepreneurs with many transactions through the Bank each month — they choose Bualuang Smart Bill Payment as it is a flexible and convenient way to manage their businesses. Smart Bill Payment enables drivers to receive fares via PromptPay QR Code, and the cooperatives receive taxi rental fees via QR Code on Bualuang mBanking, which sends instant payment notifications of all transactions to the cooperatives. It also links with a daily payment summary system, so the cooperatives can be confident that all transactions are secure. It helps reduce errors in financial accounting and users can see the source of each funds transfer and the category of expenses. Therefore, there is no need for the cooperatives to open many deposit accounts with many banks which will save them a lot of time.

“By understanding obstacles that customers or business owners face, Bangkok Bank is able to develop and deliver services that truly meet customers’ needs. The COVID-19 outbreak has been a catalyst for change as we move towards the new normal era. People find it quick and convenient to make online transactions and feel protected from a possible COVID-19 infection as they can avoid direct contact with bank notes. The use of Bualuang Smart Bill Payment has multiplied in the first four months of this year (January-April, 2020) as many businesses applied for this service to cope with the significant changes in society,” said Mr. Pipat.

Mr. Thapakon Asawalertkul, President Advisor, the Rajapruek Taxi Cooperative and Bawon Taxi Cooperative, said that the Bualuang Smart Bill Payment service can help increase the cooperatives’business potential by allocating personnel efficiently. The taxi rental business has to deal with a large number of taxi rental fees being transferred from members each month and as there are often many transactions coming in at the same time, it can be a complicated and time-consuming task to check all the transactions that occur during the day.

“This service helps us manage our business better while lowering our costs and it saves time as we do not need to contact many banks. This means we can focus on improving our services to be more efficient and this will lead to overall business growth. Currently, the cooperatives have many taxis providing services to passengers, and they plan to add new cars every month, so the system is needed to support the increase in transaction volume. At the same time, taxi drivers need to become familiar with accepting fares through digital payment channels to accommodate customer behavior in the modern world. Today customers need an easy, convenient, fast payment service that is secure and safe without any need for direct contact with cash. During the COVID-19 crisis, most of our taxi drivers had to learn how to use and become familiar with digital payments.”

Mr. Thapakorn added that the cooperative and the Bank have the same approach in terms of customer care. The cooperative is working as a trusted partner to the drivers, particularly with regard to finding convenient business solutions to drivers. “We order our taxis from car makers with high standards and cover the costs of car repair and spare parts as well as providing spare vehicles during maintenance, so driver’s income won’t be affected. In addition, we provide assistance to around ten thousand drivers within our network especially in times of crisis, such as reducing daily rental costs to lower the burden of taxi drivers and we also give away relief supply bags to member drivers.

“The cooperatives are confident that this service will be able to increase its efficiency as Bangkok Bank will facilitate accounts opening, QR code payments and PromptPay registration while also teaching all drivers how to use the mobile banking app. Moreover, as a cooperative partner, the Bank also offers our taxi drivers various benefits such as opening a new bank account and receiving a debit card for free with medical treatment privileges at Siriraj Hospital, with which we are very satisfied,” said Mr. Thapakorn.

All information is available in Thai only.

Bangkok Bank Public Company Limited (the Bank) today strengthened its position as a leading diversified ASEAN bank by completing its landmark acquisition of PT Astra International Tbk’s and Standard Chartered PLC’s aggregate 89.12% shareholding in PT Bank Permata Tbk (Permata), Indonesia’s 12th largest bank by total assets.

The transaction was completed today at the agreed valuation of a 1.63 times multiple of Permata’s book value as at March 31, 2020, or approximately IDR33,662 billion (US$2,282 million, Baht 73,722 million). Permata, with an asset base of IDR167,394 billion (US$11,349 million, Baht 366,595 million) with 3.75 million customers and 312 branches across Indonesia, is now Bangkok Bank’s most significant investment. As the next step, Bangkok Bank will apply to the Indonesian financial regulator, Otoritas Jasa Keuangan (OJK), for approval to conduct a mandatory tender offer for the remaining 10.88% stake in Permata. Bangkok Bank’s Indonesian branches will be combined with Permata in the future.

Bangkok Bank’s acquisition of Permata is a strategic move for growth, said Mr. Chartsiri Sophonpanich, President of Bangkok Bank.

“Permata will give Bangkok Bank a stronger presence in Southeast Asia’s two largest economies, reinforcing our position as a leading ASEAN bank. We will support Permata to grow its retail, SME and corporate business, while Bangkok Bank’s customers will have enhanced access to growth opportunities in Indonesia. We are also looking forward to continuing to expand the business partnership between Permata and Astra.”

“We would also like to thank Indonesia’s and Thailand’s financial authorities, OJK and the Bank of Thailand, and other relevant authorities for approving and supporting the acquisition.”

Prijono Sugiarto, President Director of Astra said, "Astra would like to express its gratitude for the support of all parties involved in the completion of the Permata transaction. We remain positive about Indonesia’s financial service sector and will continue to focus on growing our retail finance business. We wish continued success to Bangkok Bank and Permata and hope to continue developing the strong relationships between Astra Group and Permata.”

Bill Winters, Group Chief Executive of Standard Chartered said, “The Permata team has done a tremendous job and we believe the business’s long-term potential remains strong, but it was no longer core to our strategy in Indonesia which will now focus on our wholly-owned branch business. Transferring our stake to a highly respected and motivated new owner will enable Permata to continue its impressive development.”

Bangkok Bank has a long history in Indonesia having opened its first branch in Jakarta in 1968. “Bangkok Bank has been present in Indonesia for more than 50 years and we remain highly confident in the country’s resilient economy and bright future prospects,” said Mr. Chartsiri. “During these difficult times, as countries grapple with the COVID-19 pandemic and its economic repercussions, we will stand steadfast alongside Permata. Together we will support our people, customers and communities to help them overcome these challenges.”

The investment will enable Permata to tap into Bangkok Bank’s expertise in corporate and SME banking, strong regional network and relationships with top corporates across Asia, as well as cross-border product and sectoral expertise. Bangkok Bank will support Permata’s customers by delivering high quality products and services and enhancing access to overseas markets through Bangkok Bank’s network in Thailand and abroad. The Bank is also committed to supporting corporates and SMEs across industries, including the agriculture and automotive sectors, in achieving their business goals and promoting financial inclusion and financial literacy.

Bangkok Bank’s investment in Permata will increase the contribution of international loans to the Bank’s total loans from 17% to 25%.


About Bangkok Bank

Bangkok Bank Public Company Limited, established in 1944, is one of Southeast Asia’s leading regional banks and Thailand’s largest bank by deposits and shareholders’ equity. It has more than 17 million customer accounts and nearly 1,150 branches nationwide with total assets of US$104 billion as of March 31, 2020. Internationally, Bangkok Bank has the largest overseas branch network of any Thai bank, with 31 overseas branches in 14 economies, including China, Cambodia, Hong Kong, Indonesia, Japan, Laos, Malaysia, Myanmar, the Philippines, Singapore, Taiwan, Vietnam, the United Kingdom, and the United States.

About Permata

Permata is Indonesia’s 12th largest bank by total assets (as at December 31, 2019) and Bangkok Bank’s largest investment. It provides comprehensive financial services to 3.75 million customers in 62 cities across Indonesia through its network of 312 branches. Permata is a pioneer of Indonesia’s mobile banking and mobile payment technology, including its PermataMobile X application which has more than 200 innovative features.  

All information is available in Thai only.

Bangkok Bank continues submitting soft loan applications to the Bank of Thailand (BOT) to support small and medium sized businesses (SME). The 24-month soft loan, which has an interest rate of 2% per annum, and a grace period for the first six months, will help increase SME liquidity. The Bank is now expanding the distribution of soft loans to a wider group of SMEs to help them to maintain their businesses. The credit line is calculated to ensure it will not create too much burden for customers. The first group of customers who received the soft loans have received liquidity which will enable them to retain their employees.

Bangkok Bank Senior Executive Vice President Siridej Aungudomsin said to access the BOT’s supportive measures for SMEs affected by COVID-19, namely soft loans amounting to 500 million baht at a 2% interest rate per annum with a grace period for the first six months, Bangkok Bank has continuously submitted soft loan applications of eligible customers to the BOT without any charge or additional requirement to purchase a life insurance policy. Required collateral is based on the risk level of each customer, including the credit history and ability of the business to adjust and recover.

“The Bank is focusing on distributing support to a wider group of entrepreneurs who are affected by COVID-19. The soft loans will provide businesses with liquidity and support with operating expenses, especially staff salaries. This will support employment and help businesses to restart once the situation improves”.

Mr. Siridej added that besides the soft loans, the Bank will also help SMEs by assigning the Bank’s officers in each area to take care of and provide advice to customers. This includes adjusting credit line conditions and repayment plans to be in line with current income as well as debt restructuring so customers can get through the current situation. The Bank is also monitoring issues that may affect customers’ businesses in the future by working with customers closely and continually.

Mr. Kittivut Sasivimonpan Managing Director of Metal Building (Thailand) Company Limited, which manufactures high quality metal roofs and steel structures, was in the first group that received approval for the Bank’s soft loans. He said that the current situation has greatly impacted their business operation as workers have not been able to enter customers’ working sites, so schedules for product installation and payment collection has been disrupted. He said: “Even though schedules have been delayed, we have already hired the workers, so we have to pay for their accommodation and food. The soft loan we obtained will help our business to overcome our liquidity problem and we will be able to take care of our nearly one hundred employees.”

“For every business, cash flow is our lifeblood. It enables our business continuity, especially in times of crisis. Without it, a business finds it hard to move forward, especially when we do not know how long this situation will last. In the meantime a business has to shoulder expenses that increase day by day and take care of employees to minimize the effect of the crisis. Therefore, the soft loan will help ease the burden of a business owner, Mr. Kittivut added.

Dr. Wiravan Mooltripakdee, the founder of Mooltripakdee International School, Pattaya in Chonburi province was also in the first group that received the Bank’s soft loan approval. She said that the COVID-19 outbreak has had a severe impact on the school which needs at least 14 million baht per month to take care of 218 teachers and staff. The school’s income has decreased and the budget has gone off track as the school has lowered the burden of parents by reducing tuition fees by 20-40%, extending the fee collection period, and allowing parents to pay tuition fees in installments. “At present, many parents are being affected very badly, so we try to help each other to overcome this situation,” she said.

“This is the heaviest crisis we have encountered over the past 10 years. To cope with the situation, we are trying to reduce our costs by both delaying non-urgent development plans and cutting wages of teachers and staff. All are cooperating as they understand the necessity. However, we could not cut or suspend any costs related to skill development and knowledge enhancement for our students. Therefore, applying for the soft loan will help increase our liquidity and maintain our teaching standards. Moreover, we can take care of our personnel, prepare properly for the school opening, and start teaching via online channels”.

SMEs that are eligible to participate in the soft loan scheme have qualifications as prescribed by the BOT. The preliminary qualifications are being juristic persons or individuals with a business registered, located and operated in Thailand; the business must not be registered within the Stock Exchange of Thailand (SET) or the Market for Alternative Investment (MAI); business operators must have a total credit line with the Bank not exceeding 500 million baht and repayment status must be normal or not more than 90 days overdue (not yet an NPL) as of December 31, 2019. Those who interested can ask for more information and advice from the Bank’s relationship officers at their home branch, contact Bualuang Phone 1333 or 0 2645 5555, or visit https://www.bangkokbank.com/th-TH/COVID19-Update

Bangkok Bank has launched the “BeMerchant NextGen” mobile app to help customers cope with a new normal following the COVID-19 crisis. The app enables merchants to receive QR Code payments via digital channels to replace cash. The app also facilitates many payment types including mobile banking and mobile applications that link with cards and e-wallets. The launch of the app reinforces the Bank’s position as a leader in digital payment solutions.

Bangkok Bank Executive Vice President, Manager Credit Card Division, Shoke Na Ranong said the COVID-19 outbreak has led to behavioral changes of consumers to embrace a new normal, including behavior wherein people avoid using cash.

“Avoiding contact with cash is not only safe but also more convenient. To seize opportunities to help retail stores adjust to changing customer behavior, Bangkok Bank has launched “BeMerchant NextGen”, a mobile app to help merchants move towards a cashless society. The app enables both online and physical merchants to receive payments from any digital payment method that customers prefer,” said Mr. Shoke.

“BeMerchant NextGen” is an app for merchants and entrepreneurs that can facilitate all types of QR Code payments including PromptPay payments via mobile banking of any bank as well as Visa, Mastercard, UnionPay, TPN, WeChat Pay and Alipay. The app was developed in response to changes in customers’ lifestyles with greater preference for digital payments and the cashless society policy under the National e-Payment strategy of the Thai government, the Ministry of Finance, and the Bank of Thailand.

The app can serve small shops well as it does not require space to install or minimum required payment. It can also help shops save costs as no fee is required for PromptPay payments, while fees are low for receiving QR Code payments from Visa, Mastercard, UnionPay, TPN, WeChat Pay and Alipay. As such the app is suitable for all types of retail stores including those in shopping malls and markets, shops with many cashiers or branches, clothes merchants, jewelry shops, beauty salons, spas, barber shops, convenience stores, restaurants, online shops, taxis and motorcycle taxis.

Merchants can easily apply for the app. For those who already have the Bangkok Bank Be1st Smart debit card, download the “BeMerchant NextGen” app from App Store or Play Store, use a 10-digit mobile phone number to register, and the app is active right away. The bank believes the “BeMerchant NextGen” app will support Thai entrepreneurs amid the COVID-19 crisis as it can help boost sales from offering many and more flexible types of payment to customers, while money from the sales will be transferred to sellers’ accounts immediately after sellers provide account summaries. Payments made via applications that link with cards, WeChat Pay and Alipay will be transferred to sellers’ accounts by the next day.

Mr. Shoke added that the launch of “BeMerchant NextGen” will help enhance the Bank’s digital payment solutions. The Bank as a trusted partner is ready to stand beside retail business owners by offering another tool that can facilitate business anywhere, anytime and reduce cash use as sellers can send QR Codes to customers via mobile phones, from which customers can make payment however they prefer.

“Bangkok Bank is focused on offering digital experiences, so the Bank is committed to developing systems, networks, financial products and services to create a robust digital ecosystem that can fulfill customer needs with security,” said Mr. Shoke.

Bangkok Bank is ready to offer a “loan payment holiday” and credit support for SME customers affected by COVID-19 who meet the qualifications as announced by the BOT, with the aim to provide them with sufficient funds and liquidity to operate their businesses and retain their employees during the COVID-19 outbreak. The Bank aims to provide financial assistance efficiently and directly to those affected by the pandemic and has already submitted the first set of requests for soft loans to the BOT.

Bangkok Bank Senior Executive Vice President Suvarn Thansathit said in response to the government’s issuance of a Royal Decree granting financial assistance to entrepreneurs affected by the COVID-19 outbreak, Bangkok Bank has provided clear information and details about the said measures as soon as possible to SMEs who meet the qualifications. The Bank has already submitted the first set of requests, mostly from retail entrepreneurs, for soft loans to the BOT.

The new soft loans are for entrepreneurs who are juristic persons or individuals with a business registered, located and operated in Thailand. The business must not be registered within the Stock Exchange of Thailand (SET) or the Market for Alternative Investment (MAI). The loan is also for financial service providers. Business operators must have a credit line with the Bank not exceeding 500 million baht. Repayment status must be normal or not more than 90 days overdue (not yet an NPL) as of December 31, 2019 as the loan aims to help businesses affected by COVID-19. Customers can apply for a loan amount not exceeding 20% of their loan outstanding at the end of December 2019. The loan’s concessional interest rate is not more than 2% for two years. The government will bear the interest burden of the entrepreneur for the first six months. The Bank will not charge any additional expenses or fees including front end fees. The Bank reserves the right to consider lending to qualified applicants.

Entrepreneurs who are juristic persons or individuals operating businesses in Thailand with a credit line for the whole business group with the Bank not exceeding 100 million, under normal repayment status or not exceeding 90 days overdue repayment (not yet an NPL) as of December 31, 2019, are automatically eligible to suspend payments of both principal and interest for six months from April 23 to October 22, 2020. This loan payment holiday will not be considered as a missed payment and thus will not affect the credit history of the business. This relief measure will provide entrepreneurs with enough cash on hand to support their businesses and meet necessary expenses, especially wages. Entrepreneurs who do not wish to receive this relief measure are requested to send a confirmation letter to the Bank and repay their loans as usual.

“The Bank stands ready to work closely with business operators and help them to get through this crisis by providing advice on debt restructuring, adjusting loan payments in line with their income, and adjusting financial terms as appropriate to the customer’s business. This will prevent loans from turning into nonperforming loans which would impact customers’ credit history and have a negative impact on future loan applications”, Mr. Suvarn added.

Those who interested can ask for more information and advice from the Bank’s relationship officers, contact Bualuang Phone 1333 or 0 2645 5555, or visit https://www.bangkokbank.com/th-TH/COVID19-Update

In the first quarter of 2020, the Thai economy contracted sharply due to the effects of the Coronavirus (COVID-19) pandemic and a drastic decline in Thai exports and imports. The pandemic containment measures implemented by many countries around the world, such as travel restrictions and lockdowns, have led to a significant drop in the number of inbound tourist arrivals. Furthermore, the Thai government’s containment efforts by closing shopping centers, service providers, and entertainment venues, as well as enacting a nationwide curfew from 10:00 pm to 4:00 am, have resulted in a steep decline in domestic consumption. At the same time, Thailand has been experiencing a severe drought which is significantly weighing on agricultural production.

Due to the above mentioned impacts, the Cabinet has launched a series of financial and fiscal relief measures to mitigate the negative economic impact on individuals and businesses in the sectors most affected by the COVID-19 outbreak. The Bank is also committed to helping entrepreneurs and the public overcome this crisis by issuing its own various measures as well as supporting those from the government and the Bank of Thailand. These measures enable the Bank to look after and assist affected companies so they can have sufficient funds and liquidity to operate their businesses and maintain employment, as well as help affected people reduce their financial burden and get through this crisis together.

Amid challenging economic conditions, Bangkok Bank delivered first quarter net profit of Baht 7,671 million

The Bank’s net interest income for the first quarter of 2020 increased by 15.3 percent from the previous quarter due to corporate loan growth and the change in recognition of interest income from loans using the effective interest rate (EIR) method. These factors saw the net interest margin stand at 2.52 percent. Net fees and service income decreased by 22.4 percent predominantly due to lower fees from loan-related services. The Bank’s other operating income declined mainly from the high base achieved in the fourth quarter of 2019 due to a one-off gain on investment of Baht 14,988 million as well as from new accounting standards on financial instruments measured at fair value whose valuation was affected by the unprecedented COVID-19 outbreak which resulted in poor market conditions. The Bank’s operating expenses decreased by 28.8 percent. The Bank has introduced safety and protection measures for customers, employees and other stakeholders, whose health, hygiene and wellbeing are its priority, whereby regular management meetings have been convened to promptly manage and adjust the measures since the early days of COVID-19. The cost-to-income ratio stood at 43.1 percent. The expected credit loss sharply decreased as the Bank set aside a one-off higher provision in the previous quarter to strengthen the loan loss reserves before the adoption of the Thai Financial Reporting Standard No.9 (TFRS 9).

Bangkok Bank posts a healthy balance sheet and strong capital position

At the end of March 2020, the Bank’s total loans amounted to Baht 2,115,950 million, an increase of 2.7 percent from the end of 2019, due to an increase in large corporate and international lending and in line with the pipeline projections at the end of last year. The ratio of non-performing loan (NPL) was 3.5 percent with the strong loan loss reserves to NPL ratio at 203.9 percent. The Bank continues to assist customers and support them through the COVID-19 crisis, while strengthening loan portfolio quality through robust control of credit underwriting and risk management and maintaining the allowance for doubtful accounts at a prudent level. This is in line with the Bank’s conservative business management approach under both normal economic conditions and recession.

The Bank’s financial position remained healthy with a strong capital base and ample liquidity position. At the end of March 2020, the loan to deposit ratio was 84.2 percent. The total capital adequacy ratio, Common Equity Tier 1 capital adequacy ratio and Tier 1 capital adequacy ratio of the Bank and its subsidiaries were 18.5 percent, 15.7 percent and 15.7 percent respectively, comfortably above the Bank of Thailand’s minimum capital requirements.

Implementation of new financial reporting standards (Group of financial instruments)

The Bank and its subsidiaries adopted TFRS 9 from January 1, 2020 onwards, without restating previous financial statements. The significant changes in principle can be summarized into classification and measurement of financial assets and liabilities, calculation of impairment using the concept of expected credit loss, and hedge accounting.

All information is available in Thai only.

All information is available in Thai only.

All information is available in Thai only.

All information is available in Thai only.

 

Bangkok Bank has been awarded “Bank of the Year 2020” by Money & Banking magazine for its outstanding performance and profitable growth. This is the fourteenth time the Bank has won the award since it was established in 1985. The Bank’s net profit in 2019 was the third highest among Thai commercial banks at 35.8 billion baht, up 1.4% from the year before, representing the highest net profit of 18.76 baht per share and the highest book value of 225.36 baht. In addition to its high profitability, Bangkok Bank was recognized for its prudent and steady approach in allocating reserves for doubtful accounts. The Bank’s allowance of doubtful accounts was the highest level at 8.14% and Tier 1 capital adequacy ratio (BIS) was 17.01%, the third highest level among Thai commercial banks.

In 2020, the Bank will continue to support its customers to cope with challenges so they can grow sustainably. The Bank will focus on providing innovative products and services, developing modern technology and increasing the capability of its personnel, as well as maximizing its network of partners to meet the changing needs of customers. One of the Bank’s most important milestones in 2020 is the acquisition of Permata Bank, Indonesia’s twelfth-largest bank by assets with more than 300 branches in 62 cities across the fast-growing economy of Indonesia.

All information is available in Thai only.

Bangkok Bank Senior Executive Vice President Suvarn Thansathit said that Bangkok Bank is ready to take care of SME customers, a sector that plays an important role in the Thai economy and is the country's main source of employment. In line with this commitment, the Bank supports the BOT’s additional measures in order to provide SME customers with sufficient funds and liquidity to operate their businesses and to keep their employees.

The assistance consists of two measures which are:

1. For entrepreneurs (both individual and juristic persons operating business in Thailand with credit limits of up to 100 million baht, the loans can be automatically suspended for six months without any effects on their credit history. The aim of this isto help provide the necessary liquidity to support their expenditure. Meanwhile, for entrepreneurs with financial capability, the Bank recommends paying off their loans as normal to play a part in helping to drive the country’s economy.

2. The Bank is ready to offer soft loans to provide customers with financial liquidity. Entrepreneurs (both individual and juristic persons) operating business in Thailand with credit limits of up to 500 million baht, will be entitled to an interest rate of 2% per annum for the first two years with no interest charged during the first six months. However, customers must have a normal installment status and to have been no more than 90 days past due (not yet NPL) as of December 31, 2019. Each customer will be able to borrow no more than 20% of the outstanding balance of accounts receivable as of the end of December 2019.

“During the implementation of these two measures, the Bank is ready to give advice to customers in terms of debt restructuring and the adjustment of repayment plans to suit the business type. The Bank understands the difficult circumstances entrepreneurs are facing so we aim to help borrowers before their debt becomes an NPL which will affect their credit history and compromise their future loan applications. Meanwhile, for customers with ongoing financial capability, we recommend paying off their loans as normal to be a part in helping to drive the country’s economy,” said Mr. Suvarn.

Customers can receive more information about these special loans at our Business Centers or contact any of Bangkok Bank channels comprising https://www.bangkokbank.com/SMEs, Bangkok Bank LINE Official, Bualuang Phone 1333 or 0 2645 5555.