Bangkok Bank Q1 2010 profit up 24%

Analysts believe net profit growth at $187mln may be sustained due to economic rebound.

Thailand's top lender, Bangkok Bank PCL, reported a better-than-expected 24 percent rise in quarterly net profit on Tuesday, boosted by higher fee income and better cost controls.

A recovery in the Thai economy was expected to push up loan demand and boost earnings in the banking sector this year, but some analysts have turned cautious following recent political unrest which could slow loan growth if prolonged.

"We hope political crisis will be solved soon," said Worawat Saisuphatphol, analyst at Tisco Securities. "With an improving economy, we expect many banks to show a recovery with strong loan growth this year after no growth last year."

An expected rise in interest rates in the second half of 2010 is expected to boost margins of Thai banks.

Bangkok Bank, Thailand's largest bank and a benchmark for the industry, reported a net profit of 6.03 billion baht ($187.2 million) in the January-March quarter, or 3.16 baht per share, against 4.8 billion baht a year earlier.

View the full story in Reuters.