Kasikornbank (KBank) has reported net profit of Bt10.04 billion for the first quarter of the 2019.
KBank president Predee Daochai said that though domestic economic activities continued to grow during the first quarter, the overall economic recovery remained weak due to slowing exports and tourism.
Due to these challenges, businesses had to contend with new modes of competition, regulatory changes and technological changes which have affected consumer behaviour, he said.
KBank and its subsidiaries reported net profit of Bt 10.04 bIllion for the first quarter, down Bt722 million or 6.70 per cent year on year.
Net interest income (NII) increased by Bt1.5 billion or 6.57 per cent mainly due to interest income from loans to customers and investments. Net interest margin (NIM) stood at 3.32 per cent, while non-interest income decreased by Bt2.87 billion or 19 per cent mainly due to fees waived for money transfers through digital channel and decrease in net premiums earned. The cost-to-income ratio in this quarter stood at 42.70 per cent.
KBank and its subsidiaries reported operating profit before impairment loss on loans and debt securities and income tax expense of Bt 21.48 billion, an increase from the preceding quarter of Bt2.94 bIllion or 15.89 per cent because other operating expenses seasonally decreased by Bt3.46 billion or 17.81 per cent due to marketing expenses.
NII decreased by Bt219 million or 0.86 per cent and non-interest income decreased by Bt304 million or 2.43 per cent due mostly to a decrease in net premiums earned, while revenue from money market and capital market products increased.
Moreover, KBank has set aside lower allowance for impairment loss on loans by Bt928 million or 10.91 per cent. For this quarter, net profit stood at Bt10.04 billion, an increase of Bt3.01 billion over the previous quarter.
As of March 31, KBank and its subsidiaries' total assets were Bt3.15 trillion, a decrease of Bt4.45 billion or 0.14 per cent over the end of 2018. The majority came from a decrease in interbank and money markets item while investments increased.
NPL coverage ratio as of March 31 stood at 158.78 per cent, while at the end of 2018 this stood at 160.60 per cent.