Pipit Aneaknithi, President of Kasikornbank has announced a net profit for the bank and its subsidiaries of Bt31.42 billion for the first nine months of 2018, an increase of Bt2.79 billion or 9.76 per cent - over the same period last year. Most of the improvement is being attributed to the bank setting aside lower allowances.
Moreover, net income from interest increased by Bt2.92 billion - or 4.17 per cent - mainly due to increased interest income from loans to customers, investments, plus Interbank and money market items.
Net interest margin (NIM) stood at 3.41 per cent, while non-interest income decreased by Bt3.52 billion - or 7.34 per cent - due mostly to a decrease in net premiums earned and fees waived for money transfers through digital channels. However, revenue from money market products increased from foreign exchange transactions.
Other operating expenses increased by Bt1.45 billion - or 3.07 per cent - mainly due to marketing and employee expenses, resulting in a cost to income ratio that stood at 41.60 per cent.
Operating performance for the third quarter of 2018 compared with the second quarter of 2018, KBank and its subsidiaries reported net profits of Bt9.74 billion, a decrease of Bt1.17 billion, or 10.75 per cent.
Net interest income increased by Bt637 million or 2.62 per cent.
NIM stood at 3.43 per cent, while non-interest income decreased by Bt3.18 billion or 19.63 per cent due mostly to net premiums earned – net and revenue from capital market product as a result of a one-time sale of securities and dividend income. Moreover, other operating expenses decreased by Bt471 million or 2.83 per cent, resulting in the cost to income ratio in this quarter that stood at 42.58 per cent.
As of 30 September 2018, KBank and its subsidiaries’ total assets were Bt3.05 trillion, rising Bt152.96 billion or 5.27 per cent over the end of 2017. The majority came from an increase in investment – net and loans. NPL gross to total loans as of 30 September 2018 stood at 3.30 per cnt same as the end of 2017. Coverage ratio as of 30 September 2018 stood at 155.95 per cent, rising from the end of 2017 that stood at 148.45 per cent. In addition, as of 30 September 2018, the bank’s Capital Adequacy Ratio (CAR) according to the Basel III Accord was 18.96 per cent, with a Tier-1 Capital ratio of 16.50 per cent.