Provision for reserve fund cuts into KTB profits in third quarter
Krungthai Bank (KTB)’s third-quarter profits slumped by 18.9 per cent, the bank’s president and executive director Payong Srivanich said on Friday.
“KTB had a net profit of Bt6.35 billion, down 18.9 per cent from the same period last year,” he said. He explained that the reason for the lower net profit was the bank’s setting aside of Bt2.37 billion as reserve fund for employees who wished to retire early.”
Payong was referring to the latest State Enterprise Labour Committee’s announcement that requires state enterprises to pay early retirement package equal to 400 days of wages to employees who had been working more than 20 years. The regulation came into effect at the start of the third quarter.
“If we were to exclude the provision for the reserve fund, KTB’s profit actually increased by 5.3 per cent from last year,” said Payong. “Our operational revenue reached Bt94.02 billion, a 7.1 per cent increase over last year, while revenue from loans rose by 5.6 per cent over last year.”
Payong also added that as of September 30, KTB’s coverage ratio increased from 125.74 per cent as of the end of last year to 128.07 per cent. The nonperforming loans (NPL) gross ratio is at 4.58 per cent while NPLs ratio-net is at 1.92 per cent. “These numbers point to our strong standing in keeping with the standards set by the Bank of Thailand,” he said.