Jul. 30--Bangkok Bank may post zero loan growth this year after seeing its outstanding loans fall by 6.26 percent in the first half.

President Chartsiri Sophonpanich said the bank has cut the upper range of its loan targets to 3 percent growth for the full year from 4 percent earlier. The forecast is based on the economy posting a contraction of 3-4 percent this year.

"But in a worst-case scenario, the bank may book flat loan growth for the year. Even though we have seen increased signs of economic stability, more time will be needed before investment recovers," he said.

BBL, the country's largest bank, had outstanding loans of 1.1 trillion baht as of June, down from 1.18 trillion at the end of 2008.

Working-capital loans have also shrunk with the decline in commodities prices over the past several months.

Asset quality however has remained relatively stable, with net non-performing loans of 57.58 billion baht at the end of June compared with 54.63 billion at the end of last year. Gross non-performing loans stood at 4.6 percent of total loans at the end of June, compared with 4.62 percent at the end of 2008.

BBL reported second-quarter net profits of 4.85 billion baht, down 3.71 percent from the same period last year.

Shares of BBL closed yesterday on the SET at 111.50 baht, down 3.50, in trade worth 740.46 million baht.

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