Mr. Pipit Aneaknithi, President of KASIKORNBANK, said KASIKORNBANK announced net profit for the first half of 2018 of Baht 21,682 Million, an increase of Baht 2,525 Million or 13.18% over the same period of 2017.
Operating performance for the first half of 2018 compared with the first half of 2017, KBank and its subsidiaries reported net profit of Baht 21,682 Million, an increase of Baht 2,525 Million or 13.18% over the same period of 2017 mostly because KBank has set aside lower allowance for impairment loss on loans.
However, operating profit before impairment loss on loans and debt securities and income tax expense was approximate to the same period of prior year. Net interest income increased by Baht 1,631 Million or 3.51% mainly due to interest income from Repurchase agreement transaction and loans to customers.
NIM stood at 3.40%. Non-interest income decreased by Baht 134 Million or 0.43% due mostly to decrease in net premiums earned – net and fees waive for money transfers through digital channel, while revenue from money market and capital market product increased from sale of securities and foreign exchange transaction.
Moreover, other operating expenses increased by Baht 1,590 Million or 5.11% mainly due to employee expenses and marketing expense, resulting in the cost to income ratio that stood at 41.13%.
Operating performance for the second quarter of 2018 compared with the first quarter of 2018, KBank and its subsidiaries reported net profit of Baht 10,917 Million, a slight increase of Baht 151 Million or 1.40% over the previous quarter because net interest income increased by Baht 671 Million or 2.83%. NIM stood at 3.39%.
Moreover, non-interest income increased by Baht 1,125 Million or 7.45% mainly due to an increase in revenue from capital market product, which are sale of securities and dividend income together with an increase in net premiums earned – net, while net fees and service income decreased mainly due to fee waive for money transfers through digital channel.
Moreover, other operating expenses increased by Baht 686 Million or 4.29%, resulting in the cost to income ratio that stood at 41.07%.
As of 30 June 2018, KBank and its subsidiaries’ total assets were Baht 3,025,197 Million, rising Baht 124,356 Million or 4.29% over the end of 2017. The majority came from an increase in investment – net and loans. NPL gross to total loans as of 30 June 2018 stood at 3.29%, while at the end of 2017 this stood at 3.30%.
Coverage ratio as of 30 June 2018 stood at 150.08%, while at the end of 2017 this stood at 148.45%. In addition, as of 30 June 2018, KASIKORNBANK FINANCIAL CONGLOMERATE’s Capital Adequacy Ratio (CAR) according to the Basel III Accord was 18.05%, with a Tier-1 Capital ratio of 15.57%.