Bangkok--16 Jan--KASIKORNBANK
Mr. Predee Daochai, President of KASIKORNBANK, said KASIKORNBANK announced net profit for the year of 2013 of Baht 41,325 Million. Operating profit before income tax expense totaled Baht 56,303 Million, a rise of Baht 7,322 Million or 14.95% over the previous year.
Operating performance for the year of 2013 compared with 2012, KBank and its subsidiaries reported operating profit before income tax expense of Baht 56,303 Million, a rise of Baht 7,322 Million or 14.95% over the previous year, due mostly to an increase in net interest income by Baht 9,216 Million or 14.50%. Net interest margin (NIM) stood at 3.55%. Meanwhile, non-interest income rose Baht 7,429 Million or 18.24% due to continuous growth in net fees and service income, as well as net premiums earned. Moreover, the efficiency ratio performed at 43.74% as the Bank carefully monitored and decelerated spending in response to economic uncertainty. In this year, the Bank set the allowance for impairment on application software and related expense amounting to Baht 1,566 Million and the reversal of estimate for loss sharing from asset management by Thai Asset Management Corporation (“TAMC”) amounting to Baht 1,159 Million. Moreover, KBank and its subsidiaries benefited from a reduction in the corporate income tax rate from 23% to 20% in 2013. As mentioned above, net profit attributable to equity holders of the Bank for this year amounted to Baht 41,325 Million, an increase of Baht 6,065 Million or 17.20% from 2012.
As of 31 December 2013, KBank and its subsidiaries’ total assets were Baht 2,290,045 Million, rising Baht 212,603 Million or 10.23% over the end of 2012, the majority came from increases in investments and loans. NPL gross to total loans stood at 2.11% as of 31 December 2013, improving over the previous year which stood at 2.16%. In this year, KBank has set aside higher allowance for impairment loss on loans, the partiality to be served as a countercyclical provision to prepare the Bank for any potential future economic downturn and the changing economic circumstances amid economic slowdown, both domestic and abroad. This resulted in a coverage ratio of 134.52% as of 31 December 2013 while the end of 2012 this stood at 131.83%. In addition, as of 31 December 2013, KASIKORNBANK FINANCIAL CONGLOMERATE’s Capital Adequacy Ratio (CAR) according to the Basel III Accord was 15.78%, with a Tier-1 Capital ratio of 12.57%.