KKP 1Q20 Profit Soars 20% to ฿1.4Bn as Operating Income Jumps 26%!

Kiatnakin Bank Public Company Limited (KKP) has reported its 1Q20 consolidated financial statement through the Stock Exchange of Thailand as follows;

The net profit of KKP for 1Q20 was Baht 1,484 million, an increase of 20.8% from Baht 1,228 million in 1Q19. The increase was mainly due to the operating income amounted to Baht 5,594 million, an increase of 26.0% driven by the increase in net interest income of 15.9% with non-interest income also increasing by 48.3% from the increase in both net fees and services income and other income.

Net fees and services income totaled Baht 1,276 million, an increase of 12.8% from 1Q19 amount of Baht 1,131 million with increases attributed mainly to the increase in Brokerage business income which totaled Baht 569 million, increased 67.9% YoY due to the increase in market trading volume during 1Q20 and also from the increase in market share of Phatra Securities to 10.30% in 1Q20 from 7.32% in 1Q19.

Bancassurance fee amounted to Baht 261 million, also increased 10.5% YoY. Fees from Asset Management business totaled Baht 178 million declining slightly by 6.8% from 1Q19. Meanwhile, fees generated from investment banking business for 1Q20 totaled Baht 167 million.

 

Expected Credit Losses (ECL) for 1Q20 totaled Baht 256 million, a decline of 47.1% compared to Baht 485 million for 1Q19. The excess loan loss reserve after allowance for expected credit losses based on TFRS 9 at the initial date of TFRS 9 implementation was Baht 2,552 million which KKP has partially released as additional provisions for the impairment from revaluation of foreclosed assets as aforementioned resulting in remaining excess loan loss reserve of Baht 1,887 million which KKP plans to release within 5 years on a straight line method. As of end of 1Q20, allowance for expected credit losses under TFRS 9 amounted to Baht 8,658 million with remaining excess loan loss reserve totaled Baht 1,793 million at the end of 1Q20.

The Non-Performing Loans (NPLs) excluding POCI as of the end of 1Q20 totaled Baht 9,025 million or 3.7%of total loans, decreasing from 4.0% at the end of 2019 from the decline in NPLs from both retail loans segment and commercial lending segment.