Bangkok--18 Apr--KASIKORNBANK
Mr. Somkiat Sirichatchai, Senior Executive Vice President of KASIKORNBANK, said KBank and its subsidiaries reported the first quarter of 2012 net profit of Baht 8,988 Million. Operating profit before income tax expense totaled Baht 12,678 Million a rise of Baht 4,576 Million or 56.48% over the previous quarter.
Operating performance for the first quarter of 2012 compared with the fourth quarter of 2011, Operating profit before income tax expense of KBank and its subsidiaries for the first quarter of 2012 totaled Baht 12,678 Million, rising Baht 4,576 Million or 56.48% due mostly to non-interest income increasing by Baht 2,091 Million or 26.95% due to an increase in net fees and service income 12.61%, as well as net premiums earned from the insurance business. This growth accorded with, the expanding scope of integrated financial service offerings in all customer segments, both domestically and abroad. In addition, net interest margin (NIM) remained at 3.58%, despite lower interest rates in this quarter. Following a decline in other operating expenses, the efficiency ratio has improved to 41.42%. There has been a reduction in the corporate income tax rate from 30% to 23% for the fiscal year 2012, net profit attributable to equity holders of the bank of Baht 8,988 Million.
Operating performance for the first quarter of 2012 compared with the first quarter of 2011, KBank and its subsidiaries reported operating profit before income tax expense increased Baht 3,395 Million or 36.57% due mostly to increasing net interest income and non-interest income. Net interest income increased Baht 1,973 Million or 15.24% resulting in a rising NIM. Meanwhile, non-interest income rose Baht 1,595 Million or 19.32% attributable to growth in net of fees and service income 12.15%, as well as net premiums earned from the insurance business. Moreover, KBank and its subsidiaries benefit from a reduction in the corporate income tax rate. As mentioned above, net profit in this quarter increased Baht 2,874 Million or 47.01%.
As of 31 March 2012, KASIKORNBANKGROUP’s total assets were Baht 1,857,149 Million, versus Baht 1,722,940 Million at the end of 2011, rising Baht 134,209 Million or 7.79% due mostly to increasing interbank and money market items, plus investments as a result of the Bank liquidity management. The NPL Gross stood at 2.35%, improving over the 2.45% reported as of 31 December 2011. The Bank also closely evaluated and monitored loan quality from flooding impacts. Capital Adequacy Ratio (CAR) at 15.48% — being 9.59% Tier-1 Capital ratio — KBank CAR exceeds the Bank of Thailand’s minimum requirements. Incorporating net profit from the first quarter of 2012 and other related items, our CAR was thus at 17.01% with Tier-1 Capital ratio at 11.14%.