Loan growth and higher NIM boost KBank's earnings

 The quarterly earnings showed a 4.22 per cent or Bt378 million increase from the same period last year, the bank said in a statement.
 Somkiat Sirichatchai, senior executive vice president, said that the major increase was due to the net interest income and non-interest income.
 The bank, as the first among top six banks to report the quarterly results, attributed the increase to lending growth and higher net interest margin.
 In the first half, the operating profit before income tax totalled Bt25 billion, a rise of B4.8 billion or 23.30 per cent over the same period last year. In the period, its net interest income increased by Bt3.5 billion, as net interest margin stood at 3.63 percentage points in the second half.
 Meanwhile, non-interest income rose Bt2.88 billion, or 16.60 per cent due to growth in net fees and service income, as well as net premiums earned.
 At the end of June, KBank saw its assets expanded by 9.52 per cent from the end of 2011 to Bt1.89 trillion thanks to increases in investment and loans.
 Non-performing loans stood at 2.20 per cent, though, while the capital adequacy ratio was 16.86 per cent, with 11.06 per cent in tier-1.