THURSDAY, March 28, 2024
nationthailand

KBank net profit down in first half of year

KBank net profit down in first half of year

Kasikornbank (KBank) reported a decline in net profit year on year for the first half, while the bank’s president Kattiya Indaravijaya said the Thai economy in the second quarter had performed feebly compared to the 2.80 per cent growth in the first quarter.

He said exports and tourism remained hindered by the economic slowdown of trade partners and global woes triggered by the US-China trade tensions. Nonetheless, private consumption enjoyed continuous growth.
He said household debt and improvement in household income, as well as the overall Thai economic situation needed to be watched closely in the second half of the year .
KBank and its subsidiaries reported net profit of Bt19.973 billion for the first half of the year and net profit of Bt9.929 billion in the second quarter.
The net profit was down BY Bt1.709 billion, or 7.88 per cent, year on year. Net interest income (NII) increased by Bt2.960 billion, or 6.16 per cent, mainly due to interest income from loans to customers and investments. Net interest margin (NIM) stood at 3.30 per cent, while non-interest income decreased by Bt5.475 billion, or 17.46 per cent, mainly due to a decrease in net premiums earned. 
As the economic slowdown affected the bank’s earnings, KBank made an effort to control operating expenses. The cost-to-income ratio stood at 43.89 per cent.
Net profit in the second quarter was lower by Bt115 million, or 1.15 per cent, over the preceding quarter. 
NII increased by Bt518 million or 2.05 per cent mainly due to interest income from investments. NIM stood at 3.34 per cent. Non-interest income increased by Bt1.392 billion, or 11.38 per cent, due mostly to an increase in net premiums earned. Other operating expenses increased by Bt1.731 billion or 10.81 per cent due to marketing expenses and retirement reserve.

nationthailand