KASIKORNBANK announces 2024 net profit of Baht 48,598 million
Ms.Kattiya Indaravijaya, Chief Executive Officer of KASIKORNBANK, said the Thai economy in 2024 exhibited signs of a K-shaped recovery, with growth varying significantly across sectors despite a slight overall improvement when compared to 2023.
While the tourism sector and some export categories, particularly those benefiting from the technology cycle, showed strong growth, industrial production, private investment, and household spending remained weak amid ongoing pressures from competitiveness issues, limitations in purchasing power at home and abroad, and hefty household debt. For 2025, Thailand’s economic recovery will likely face several challenges. These include uncertainties surrounding US economic policies, geopolitical risks, China’s economic slowdown, issues in the manufacturing sector and high private debt. These structural problems will require significant time to address.
Amid various challenges, KBank and its subsidiaries remains committed to deliver sustainable value to all stakeholders through the execution of K-Strategy 3+1 with continued focus on productivity improvement and responsible lending guidelines. This includes delivering sustainable returns to shareholders, providing appropriate support to customers in various aspects, including participation in the government initiatives to enable customers to sustain their livelihoods and businesses.
In the fourth quarter of 2024, KBank and its subsidiaries reported operating profit before expected credit loss and income tax expense of Baht 25,513 million, a decrease of Baht 1,665 million or 6.13% from the third quarter of 2024.
Net operating income was Baht 48,685 million, an approximate level to the previous quarter. Other operating expenses was Baht 23,172 million, an increase of Baht 1,671 million or 7.77% due to seasonality. Additionally, expected credit loss (ECL) was Baht 12,242 million, an increase of Baht 590 million or 5.06% from the previous quarter, in line with the Bank’s ongoing prudent approach that ECL remained at an appropriate level to support the economic uncertainties. As a result, net profit for the fourth quarter of 2024 was Baht 10,494 million, a decrease of Baht 1,471 million or 12.30% from the previous quarter.
KBank and its subsidiaries reported operating profit before expected credit loss and income tax expense for the year 2024 of Baht 110,673 million, an increase of Baht 2,988 million or 2.77% from the previous year. Net operating income was Baht 197,946 million, an increase of Baht 5,293 million or 2.75% as a result from the Bank’s strategic execution and business volume expansion. Other operating expenses for 2024 was Baht 87,273 million, an increase of Baht 2,305 million or 2.71% from the previous year. Cost to income ratio for year 2024 stood at 44.09%, similar level to last year due to the focus on effective cost management and continuous productivity improvements. Although, ECL decreased by 8.85% from the previous year, the Bank and its subsidiaries continue to prudently set aside ECL in each quarter to support various uncertainties including the slow economic recovery. As a result, net profit for the year 2024 was Baht 48,598 million, an increase of Baht 6,193 million or 14.60% from the previous year.
Net interest income was Baht 149,376 million, a slight increase of Baht 932 million or 0.63% from the previous year partly due to limited loan growth in line with the economic situation and the enhancement of credit underwriting processes to ensure quality lending. Net interest margin ratio stood at 3.64%, a slight decrease from the previous year. Non-interest income was Baht 48,570 million, an increase of Baht 4,361 million or 9.86% mainly due to increased fee income from customer’s wealth management service through the offering of comprehensive financial products from the Bank and its subsidiaries, as well as partners. Additionally, there was an increase in gains from financial instruments measured at fair value through profit or loss and investment income, along with increased revenue from foreign exchange transactions which were in line with the recovery of tourism.
Other operating expenses was Baht 87,273 million, an increase of Baht 2,305 million or 2.71% from the previous year. This increase was at a lower rate compared with the growth rate in year 2023, due to the focus on effective cost management and continuous productivity improvements. The increase in other operating expenses were mainly from employee expenses, marketing expenses in line with the expansion of business volume and IT-related expenses to support the expansion of customer service channels.
As of 31 December 2024, KBank and its subsidiaries’ total assets were Baht 4,325,287 million, an increase of Baht 41,731 million or 0.97% over the end of year 2023. Net loans were Baht 2,390,187 million, an increase of Baht 18,695 million or 0.79% in line with the slow economic recovery and the enhancement of credit underwriting processes to ensure quality lending, in accordance to the Bank’s policy of prudently and effectively managing assets quality. Notably, corporate loans continue to demonstrate growth. Deposits were Baht 2,718,675 million, an increase of Baht 19,113 million or 0.71%. NPL gross to total loans was 3.18%. The Bank continues to closely monitor and manage loans quality with prudence to provide appropriate support to customers and improves the process to enhance debt collection efficiency. Additionally, ECL was adequately set aside with a prudent approach, resulting in coverage ratio increasing to 153.27%. As of 31 December 2024, KASIKORNBANK FINANCIAL CONGLOMERATE’s capital adequacy Ratio (CAR) according to the Basel III Accord remained strong at 20.25%.
