KBANK’s 1Q19 Profit Falls 6.7% to ฿10bln. as Non-Interest Income Plunges 19%

Kasikornbank Public Company Limited (KBANK) has announced its 1Q19 consolidated financial statement through the Stock Exchange of Thailand as follows:

KBANK has reported a net profit of THB 10,044 million, a decrease of THB 722 million or 6.70% over the same period of 2018.

Net interest income increased by THB 1,556 million or 6.57% mainly due to interest income from loans to customers and investments. NIM stood at 3.32%, while non-interest income decreased by THB 2,871 million or 19.00% mainly due to fees waive for money transfers through digital channel and a decrease in net premiums earned – net. Cost to income ratio in this quarter stood at 42.70%.

 

As of March 31, 2019, KBANK’s total assets were THB 3,150,641 million, a decrease of THB 4,450 million or 0.14% over the end of 2018. The majority came from a decrease in interbank and money markets item – net while investments – net increased.

NPL gross to total loans as of March 31, 2019, stood at 3.44%, slightly rose from 3.34% in the fourth quarter of 2018 due to change in asset quality management to reduce sales of some NPLs and manage the portfolio by the company, which KBANK expects a greater recovery rate in the long term.

As a result, the NPL ratio rose while at the end of 2018 this stood at 3.34%. Coverage ratio as of March 31, 2019, stood at 158.78%, while at the end of 2018 this stood at 160.60%. In addition, as of March 31, 2019, KASIKORNBANK FINANCIAL CONGLOMERATE’s Capital Adequacy Ratio (CAR) according to the Basel III Accord was 18.12%, with a Tier-1 Capital ratio of 15.73%.