Soaring ECL Plunges KTB’s 2Q Profit to Book 53% Lower at ฿3.8Bn

Krung Thai Bank Public Company Limited (KTB) has announced its 2Q20 consolidated financial statement through the Stock Exchange of Thailand as follows;

KTB reported a net profit of 3,829 million baht, declined 53.13% compared to a net profit of 8,169 million baht in the same quarter last year.

Other non-interest income (non-fee) increased due to gain from sale of properties for sale. Moreover, operating expenses decreased due to employees’ expenses and impairment loss on properties for sale in 2Q2019, resulting in cost to income ratio of 38.07%, down from 45.10% in 2Q2019 (if excluding special transactions, cost to income stood at 42.71%, an increase from 41.77% in 2Q2019).

KTB stated that its consolidated pre-provision profit was THB 20,107 million, an increase of 21.8% YoY. This was due to higher net interest income from effective cost of fund management and benefits from BOT’s announcement of lower contributions to BOT as well as a strong loan growth.

 

The expected credit losses amounted THB 14,710 million, which also included full provision on one of large corporate customers in the public utilities and services – transportation business to reflect its credit risk. The expense for impairment loss of loans amounted THB 5,561 million in the same period of last year while the expected credit losses amounted THB 8,524 million in 1Q2020.

Coverage ratio as at June 30, 2020 stood at 126.5%. The NPLs Ratio-Gross stood at 4.35% as compared to 4.36% as at March 31, 2020.