Krungthai Bank lifts profit 6% for second quarter

For the first half of this year, the bank earned Bt15.471 billion in net profit, up 6.7 per cent, with the gain driven by the growth in credit granted by the bank. For the first six months, the net interest margin (NIM), which excludes income from the auction of mortgaged properties, also increased from the same period of last year. 
The coverage ratio of the bank’s financial budget, on June 30, increased by 132.83 per cent compared to the end of last year.
Payong Srivanich, president of Krungthai Bank, said that the bank’s NIM increased to 3.24 per cent, up from the 3.1 per cent posted in the same quarter last year. The increase in NIM is result of the bank’s ability to reduce its costs.

For the first six months of this year, Krungthai Bank earned Bt63.635 billion from operational revenue, up 8 per cent from the same period of last year. The bank recorded lending growth of 2 per cent in the first six months compared with the end of last year, with loans to big businesses and smaller firms, as well as finance extended for personal and property loans. Net interest income increased by 12.4 per cent, driven by the auction of the bank’s mortgaged properties, while revenue from other operations increased by 5.5 per cent.
The bank’s non-interest revenue dropped by 2.3 per cent as a result of declining income from bank fees and services. Operational expenses increased 15.7 per cent from the impairment of properties foreclosed.