Kiatnakin Phatra reports 45 per cent jump in net profit
Kiatnakin Phatra Financial Group (KKP) reported a net profit of 4.08 billion baht in the first half of this year, up 45.1 per cent year on year.
KKP chief executive officer Aphinant Klewpatinond said commercial bank loans, especially hire purchase and home loans, grew by 10 per cent.
He added that the group's brokerage business had No. 1 market share at 18.18 per cent, while the investment business grew considerably from equity and derivative trading, which made good profits despite volatile conditions.
"As for investment banking, the number of transactions declined at the beginning of the year, but large transactions are expected in the second half," he explained.
He added that the group's wealth management business had assets under advice of 700 billion baht.
Debtor repayment rate was better than expected, as a provision of 1.87 billion baht was set aside, a considerable decrease from the previous year, he said.
He said they would continue to focus on commercial banking and capital markets to develop complete and seamless services for customers and diversify sources of income to prepare for a more volatile future.
"KKP will leverage the country’s financial technologies and infrastructure that reduce size or network constraints to allow the bank to compete equally with others," he said.
"At the same time, KKP continues investing in systems for its core businesses, such as loans that we believe to have room for growth."
He added that the group has prepared to assist customers who may be affected by prolonged economic slowdown caused by the Covid-19 pandemic.
"However, sustainable relief efforts rather than immediate measures will be emphasised in order to best benefit customers during prolonged economic downturn,” he added.
Meanwhile, Kiatnakin Phatra Bank president Philip Chen Chong Tan said in the first half of this year, bank loans generated interest income of 69 per cent, mainly from secured retail loans, including auto hire purchase loans (up by 11 per cent) and home loans (up by 19 per cent).
He added that the bank will streamline internal systems and processes to make credit approval more efficient and accessible through the KKP Mobile app, launch new credit products like KKP Auto, and expand the service network through partnerships.
"In addition, to help alleviate high household debt and support sustainable growth, the bank will strive to empower customers financially by increasingly linking our banking services to investment services,” he added.
Kiatnakin Phatra Bank head of finance and budgeting Preecha Techarungchaikul explained that KKP had a net profit of 4.08 billion baht in the first half of this year, up 45.1 per cent year on year. Net profit from the capital markets was 672 million baht, he added.
"Provision in the first half of 2022 was reduced as loan quality remained at a manageable level, with an NPL coverage ratio of 169.1 per cent," he said.
He said the bank saw an increase in both net interest and non-interest incomes.
Net interest income amounted to 8.77 billion baht, up 15.1 per cent year on year, while non-interest income was 3.80 billion, up 2.2 per cent, he added.
"The bank had a BIS ratio of 16.56 per cent, which was calculated according to the Basel III rules and included profits up to the end of the second quarter this year, and Common Equity Tier 1 of 12.99 per cent,” he added.
