KTB’s 3Q Earnings Jump 65% after Setting Aside Lower Provision in the Quarter

Krung Thai Public Company Limited (KTB) has announced its 3Q21 consolidated financial statement through the Stock Exchange of Thailand as follows;

KTB reported a net profit of 5,055 million baht in 3Q21, increased 65.35% from a net profit of 3,057 million baht in 3Q20. The increase in net profit was largely due to lower provision in the quarter.

KTB’s net interest income in 3Q21 amounted 21,142 million baht, decreased by 2.1% YoY, mainly due to the lowered interest received from investment in debt securities together with interest income from loan in relation to partial payment from the auction of mortgaged guarantee assets of 3Q2020, though partly offset by the better cost of fund management and strong loan growth. Hence, NIM stood at 2.51%, down from 2.82 % in 3Q2020. (NIM stood at 2.51%, down from 2.66% in 3Q2020 if excluding interest income received from the auction).

Net fee and service income in 3Q21 was 4,753 million baht, decreased 5.4% YoY, mainly related to the slowdown of the economic situation whilst a continual expansion of management fees.

Expected credit losses in 3Q21, KTB set aside the expected credit loss in the amount of 8,137 million baht. The expected credit loss has been thoroughly set aside in the high level as the previous quarter to continually strengthen the coverage ratio given the staggering economy of high uncertainties. Compared to 3Q20, the expected credit losses decreased 34.5% YoY considering the high level of coverage ratio given the staggering economy of high uncertainties.

NPLs Ratio-Gross reduced to 3.57%, from 3.81% as at December 31, 2020 given thorough considerations on various factors in the staggering economy of high uncertainties to strengthen coverage ratio.