Bangkok--17 Jul--KBank
Mr. Teeranun Srihong, President of KASIKORNBANK, said KASIKORNBANK announced net profit for the first half of 2014 of Baht 23,670 Million, a rise of 12.26% over the same period of 2013.
Operating performance for the first half of 2014, KBank and its subsidiaries reported net profit of Baht 23,670 Million, a rise of Baht 2,585 Million or 12.26% over the same period of 2013, due mostly to an increase in net interest income by Baht 4,938 Million or 14.05% resulting in a NIM stood at 3.68%, improving from the same period of 2013 due to the maturity of high-rate deposits, which decreased the Bank’s cost of fund. Moreover, non-interest income rose Baht 3,123 Million or 12.94% due to continuous growth in net fees and service income, as well as net insurance premiums. The efficiency ratio in this period stood at 42.16%.
Operating performance for the second quarter of 2014, KBank and its subsidiaries reported net profit of Baht 11,732 Million, a decrease of Baht 207 Million or 1.74% over the previous quarter. Net interest income increased Baht 1,086 Million or 5.57% resulting in a NIM stood at 3.75%. Meanwhile, net fees and service income rose Baht 425 Million or 5.40%. However, an increase in other operating expenses came from employee’s expenses and marketing expenses due to seasonality resulting in a rising efficiency ratio stood at 44.31% in this quarter.
As of 30 June 2014, KBank and its subsidiaries’ total assets were Baht 2,339,798 Million, rising Baht 30,802 Million or 1.33% over the previous quarter and rising Baht 49,753 Million or 2.17% over the end of 2013, the majority came from an increase in investments and loans. NPL gross to total loans stood at 2.14% as of 30 June 2014 remained unchanged from the previous quarter, while the end of 2013 stood at 2.11%. Coverage ratio as of 30 June 2014 stood at 140.83% while the previous quarter and the end of 2013 this stood at 137.76% and 134.52%, respectively. In addition, as of 30 June 2014, KASIKORNBANK FINANCIAL CONGLOMERATE’s Capital Adequacy Ratio (CAR) according to the Basel III Accord was 16.06%, with a Tier-1 Capital ratio of 12.92%.