KKP to boost its non-interest income
To lessen the impact from cutting back on its lending to curb non-performing loans (NPLs), Kiatnakian Bank (KKP) has assigned its subsidiaries Phatra Securities and Phatra Asset Management to help boost this year's non-interest income to at least 40 per
Aphinant Klewpatinond, KKP president and chairman of its commercial banking business, said NPLs would continue to hurt the bank’s revenue this quarter.
"The bank’s NPLs in the second quarter of this year are expected to be higher than those in the first quarter, but will not exceed 7 per cent [of total lending]. First-quarter NPLs rose to 6.5 per cent from 5.6 per cent in the same period of 2014."
Apart from its various service fees, KKP plans to boost non-interest income via investment banking and management of various investments of Phatra Securities and Phatra Asset Management.
Currently, clients’ investment funds under the management of those two subsidiaries total about Bt300 billion.
Clients’ investment inflow each month is between Bt2 billion and Bt3 billion.
The bank plans to attract more general clients – those with savings accounts – to invest in long-term equity funds (LTFs) and retirement mutual funds (RMFs), as well insurance bundled with investments.
About 10 of the bank’s clients are planning initial public offerings or mergers/acquisitions, so it hopes these activities will bring in more investment-banking service fees.
In the latest development, the bank is ready to launch an open-ended "risk diversification and risk-balanced" type of fund, Phatra Strategic Asset Allocation (PHATRA SG-AA), to boost returns for general investors.
