KBank's H1 net profit plunges 20.13%
Kasikornbank reported a 20.13 per cent decrease in first-half net profit, due to higher loan-loss provisions in light of deteriorating loan quality.
The net profit in the January-June period stood at Bt19 billion, a drop by Bt4.8 billion from the same period last year.
As of June 30, gross non-performing loans stood at 2.89 per cent of outstanding loans, against 2.70 per cent at the end of 2015. In a statement, the bank said that the provision coverage ratio increased from 129.96 per cent at end-2015 to 136.21 per cent as of June 30, thanks to higher provisions.
In the first half, the bank showed a 5.29 per cent year-on-year increase in net interest income while non-interest income also increased by 3.69 per cent. The operating expenses also decreased by 2.95 per cent.
However, in the second quarter, non-interest income dropped by 11.42 per cent from the first quarter, while operating expenses incrased by 5.77 per cent. The quarterly net profit, at Bt9.4 billion, showed a 17.87 per cent decrease from the same period a year earlier.
