Bangkok Bank Q3 profit up 17%, more than forecast

BANGKOK Oct 19 (Reuters) - Bangkok Bank BBL.BK, Thailand's largest lender, reported a better-than-expected 17 percent rise in quarterly net profit on Monday, despite a decline in lending, due mainly to an absence of an investment loss.

The bank, 48 percent owned by foreign institutional investors, reported a net profit of 5.07 billion baht ($151.8 million) in the quarter ended Sept. 30, against 4.32 billion baht a year earlier when it booked losses in Lehman Brothers bonds.

The result was above the average forecast of 4.84 billion baht from eight analysts polled by Reuters Estimates.

The outlook for the market leader looks promising, with analysts expecting an improvement in loan demand in the fourth quarter onwards from both private sector and the government.

Ahead of the results, full-year net profit was expected to drop 2.5 percent to 19.73 billion baht, according to 18 analysts polled by Thomson Reuters I/B/E/S.

Shares in Bangkok Bank, valued at about $7.54 billion on the Thai bourse, rose 12 percent in the July-September period, far below the main stock index .SETI, which climbed 20 percent. ($1=33.39 Baht) (Reporting by Arada Kultawanich; Editing by Jason Szep)