KBank announced the nine-month period of 2022 net profit of Baht 32,579 Million
KASIKORNBANK announced the nine-month period of 2022 net profit of Baht 32,579 Million
Ms. Kattiya Indaravijaya, Chief Executive Officer of KASIKORNBANK, said the Thai economy continued to grow in the third quarter of 2022, led by a recovery of the tourism sector and domestic spending. However, the recovery of each industry remained uneven, and the export sector showed signs of slowdown. As for the remainder of this year, the Thai economy will likely be supported by the ongoing tourism recovery, but growth may remain in a limited range amid a weaker global economic outlook in the midst of monetary policy tightening led by the Federal Reserve, the persistent Russia-Ukraine conflict that has put pressure on the European economy, and fragile growth prospects in China that could hamper the tourism sector recovery as Chinese tourists are the main source of income for the industry. Other factors to monitor include higher production costs, inflationary pressures, and domestic interest rates. However, KBank and its subsidiaries have made a strategic move through using new technology and processes including synergy with business partners and become the Regional Digital Bank of the new era in AEC+3 region to boost access to financial services in the commercial banking system among a broader range of the public, that can help them to get capital and liquidity support and benefit from banking products and services to encourage continuous growth in customer business in order to align with the upcoming business opportunities.
Operating performance for the nine-month period of 2022 compared with the nine-month period of 2021,
KBank and its subsidiaries reported net profit of Baht 32,579 Million, an increase of Baht 4,428 Million or 15.73% over the same period of 2021 mainly due to an increase of net interest income by Baht 8,261 Million or 9.32% from interest income from loans to customers according to growth of new lending in retail and SME business customers with focus more on offering of lending via digital channels along with using data for lending analysis, which is in line with the Bank’s strategic direction, NIM stood at 3.26%. While non – interest income decreased by Baht 5,228 Million or 16.22%, mainly due to the mark to market of financial assets according to market condition which is the normal investment business of subsidiary and decrease in net premiums earned – net. Other operating expenses increased by Baht 3,145 Million or 6.22%, mainly due to marketing expenses collaborated with business partners, employee expenses and IT related expenses in order to support customers’ needs. Moreover, KBank and its subsidiaries set aside slightly lower expected credit loss from the same period of 2021, that was in high level with prudent consideration on economic factors. However, KBank and its subsidiaries still closely assess the situation and continuously prepare to support growth of new lending in line with the Bank’s business direction and economic uncertainties.
Operating performance for the third quarter of 2022 compared with the second quarter of 2022,
KBank and its subsidiaries reported net profit for the third quarter of 2022 amounting to Baht 10,574 Million, a decrease from the preceding quarter of Baht 220 Million or 2.04%. Net interest income increased by Baht 1,076 Million or 3.36% mainly due to interest income from loans to customers. Non – interest income decreased by Baht 852 Million or 8.97% mainly due to net premiums earned – net decreased, while the mark to market of financial assets increased according to market condition. Other operating expenses slightly increased by Baht 181 Million or 1.00% mainly due to increase in marketing expenses in line with increase in revenue according to business volume and employee expenses, resulting in the cost to income ratio that stood at 43.73% in this quarter. Moreover, KBank and its subsidiaries set aside expected credit loss that was approximate to the preceding quarter.
As of 30 September 2022, KBank and its subsidiaries’ total assets were Baht 4,229,795 Million, an increase of Baht 126,396 Million or 3.08% over the end of 2021. The majority came from net loans growth in line with the Bank’s business direction and in accordance with the economy. Moreover, KBank has proactively embarked in take care of customers and increase expertise in the effectiveness of non-performing loans management. This is to support customers to have a better financial status and able to operate their businesses continuously, which will be driver for the overall economic recovery. NPL gross to total loans stood at 3.07% and coverage ratio stood at 148.74% that was suitable level and reflects ability to manage asset quality. In addition, as of 30 September 2022, KASIKORNBANK FINANCIAL CONGLOMERATE’s Capital Adequacy Ratio (CAR) according to the Basel III Accord was 19.19%, with a Tier 1 Capital ratio of 17.21%.
