The Thai economy has continued to expand primarily due to growth in the export and tourism sectors, consistent with an increase in global demand, the Bangkok Bank said in a statement announcing a 5.2 per cent quarterly increase in net interest income compared to the same period last year.

For the first quarter of 2018, Bangkok Bank and its subsidiaries’ net interest income amounted to Bt17.1 billion, an increase of 5.2 per cent from the first quarter in 2017, with a net interest margin of 2.34 per cent.

Non-interest income was Bt14.4 billion, an increase of 31.8 per cent, due predominantly to an increase in net fees and service income and gains on investments. The increase in net fees and service income was mainly attributed to a rise in fee income from mutual funds and loan-related services.

The bank’s operating expenses were Bt12.6 billion, an increase of 13.6 per cent, while the ratio of expenses to operating income dropped to 39.9 per cent. Consequently, net profit attributable to owners of the bank was Bt9 billion, an increase of 8.4 per cent from the first quarter of last year.

Thailand is structurally transitioning into an innovation driven economy, with the government’s infrastructure development programme supporting the nation’s position as a logistics hub for Southeast Asia, according to the release.

These developments serve to strengthen three major trends which have been guiding Bangkok Bank’s business direction in recent years –regionalisation, urbanisation and digitalisation.

Repurchase deal boosts KBank’s first-quarter net

Pipit Aneaknithi, president of Kasikornbank, said a net income increase from a repurchase agreement transaction helped the bank achieve a first-quarter 2018 net profit of Bt10.766 billion, a 5.84 per cent increase over the same period of 2017.

Net interest income increased by Bt608 million or 2.63 per cent, mainly due to interest income from a repurchase agreement transaction, according to a press release on Friday.

The net interest margin (NIM) was 3.37.

However, non-interest income decreased by Bt405 million or 2.61 per cent, due mostly to a decrease in net insurance premiums, while net fees and service income increased by 4.71 per cent due to fees from fund management and loan-related fee income, said the release

Other operating expenses increased by Bt765 million or 5.03 per cent from marketing expenses. That resulted in a cost-to-income ratio that stood at 41.20 per cent.

For this quarter, KBank set aside a lower allowance for impairment loss on loans in line with current circumstances.

Group rises on higher operation income, lower provisions

CIMB Thai Group recorded a consolidated net profit of Bt168.9 million in the first three months of the year, an increase of Bt47.7 million (39.3 per cent) year-on-year compared to the first three months of 2017.

President and chief executive Kittiphun Anutarasoti credited the improvement mainly to 8.1-per-cent growth in operating income and a 4.5-per-cent drop in provisions, offset by a 10.6-per-cent rise in operating expenses.

Year on year, operating income rose by Bt252.3 million (8.1 per cent) to Bt3.38 billion from an increase of Bt132.9 million (5.4 per cent) in net interest income and Bt47.3 million (11.1 per cent) in net fee and service income arising from higher fees from insurance, hire-purchase and mutual funds.

Other operating income rose by Bt72.1 million (30.1 per cent) from a gain on sales of available for sale securities.

Operating expenses increased by Bt186 million (10.6 per cent), mainly from higher expenses from properties for sale and personnel cost, partially offset by lower expenses from premises and equipment.

This resulted in a higher cost to income ratio of 57.2 per cent in Q1 2018 compared to 55.8 per cent in the first quarter of 2017.

The Net Interest Margin over earning assets stood at 3.98 per cent in Q1 2018, compared to 3.77 per cent in the first quarter of 2017, from more efficient funding cost management.

Survey finds why Thain workers are more glum

In its “2017 Happiness Index Report” released this week, jobsDB (Thailand) said the three key factors in keeping employees content were convenience in their work location, their employer’s reputation, and their relationships with colleagues.

In a survey of 1,108 workers, 60 per cent of respondents said they were happy with their work, for an average ranking of 4.55 points on the “happiness index”.

The happiest workers were in management (4.95 points), administration and human resources (4.94), engineering (4.86), IT (4.74) and transportation (4.73).

Compared to their counterparts in Hong Kong, Vietnam, the Philippines, Malaysia, Singapore and Indonesia, Thais ranked fifth, slipping two spots from last year.

Indonesia was at 5.27 points, Vietnam at 5.19, the Philippines at 4.97, Malaysia at 4.65, Hong Kong at 4.45 and Singapore at 4.31.

In Thailand, the least happy workers were fresh graduates and employees with less than a year’s experience, together scoring 4.35 points, followed by people with 1-4 years’ experience at 4.45 points.

Top executives scored best, with an average of 5.19 points, while managers averaged 4.64 and supervisors 4.54.

Asked what would make them happier in the next six months, 37 per cent of the Thai respondents hoped for better opportunities and jobs elsewhere, 20 per cent were prepared to remain with their current job if they got a raise, and 8 per cent wanted more recognition or a promotion.

In the past, workers tended to prioritise job security, but now there is more ambition to rise to the executive level.

Younger employees put a high premium on “inspiration” as a factor in choosing which company to join. They’re not afraid of leaving their comfort zone.

However, both generations share keen interest in having a convenient work location, a company with a good reputation and good rapport with colleagues.

The factors that most make them want to quit are working with inefficient executives, chances elsewhere to advance in their careers and lacking challenges in the development of work skills.

Changes affecting the workforce in the past year have included the growth of the ageing society, robotics and AI technology, and startups attracting younger people who prefer to be self-employed.

There were also more young people using social media as earning tools.

The survey revealed that the key elements in retaining employees are to offer support and encouragement to enhance their capabilities, provide opportunities for career growth, and be able to see them as competent and successful role models.