LHFG’s 1Q21 Profit Drops 32% from Lower Gains on Investments and Dividend Income

LH Financial Group Public Company Limited (LHFG) has announced its 1Q21 consolidated financial statement through the Stock Exchange of Thailand as follows;

LHFG reported a net profit of 560 million baht in 1Q21, decreased 32.37% from a net profit of 828 million baht in 1Q20, mainly due to the decrease in gains on investments and dividend income and the increase in expected credit losses.

 

Interest income was 1,847.5 million baht, decreased by 13.9% and interest expenses were 619.2 million baht, decreased by 28.5% when compared to the first quarter of 2020. The decrease in interest income was due to LHFG’s subsidiary which operates banking business, reduced the loan interest rate to assist customers impacted by the COVID-19 pandemic, which was the distribution of benefits from the reduced contributions to the Financial Institutions Development Fund (FIDF) from 0.46% to 0.23% per year according to the governmental measures during the year 2020-2021. In addition, it was more conservative when granting loans.

 

In the first quarter of 2021, net non-interest income amounted to 599.4 million baht, decreased by 20.5% when compared to the first quarter of 2020, due mainly to the decrease in gains on investments and dividend income.

 

In the first quarter of 2021, other operating expenses amounted to 775.5 million baht, increased by 10.2% when compared to the first quarter of 2020, due mainly to the increase in employees’ expenses and advertising and promotional expenses.