Bangkok--17 Jul--KASIKORNBANK
Mr. Teeranun Srihong, President of KASIKORNBANK, said KASIKORNBANK announced net profit for the first half of 2015 of Baht 23,880 Million, a rise of 0.89% over the same period of 2014.
Operating performance for the first half of 2015 compared with the first half of 2014, KBank and its subsidiaries reported net profit of Baht 23,880 Million, a slight rise of Baht 210 Million or 0.89% over the same period of 2014 because KBank has set aside higher allowance for impairment loss on loans in this period. However, net interest income increased by Baht 2,020 Million or 5.04%. NIM stood at 3.66%, decreased from the same period of 2014, consistent with the direction of interest rate reduction. Non-interest income also increased by Baht 4,672 Million or 17.15% due to an increase in net fees and service income, revenue from money market and capital market products as well as net insurance premiums. Moreover, other operating expenses increased, resulting in the efficiency ratio in this period that stood at 42.37%.
Operating performance for the second quarter of 2015 compared with the first quarter of 2015, KBank and its subsidiaries reported net profit of Baht 11,479 Million, a decrease of Baht 922 Million or 7.44% from the previous quarter mostly because KBank has set aside higher allowance for impairment loss amounting to Baht 2,031 Million in this period, while non-interest income increased by Baht 1,353 Million or 8.85% due to an increase in net fees and service income as well as net insurance premiums. Net interest margin (NIM) stood at 3.59%. Moreover, other operating expenses increased, resulting in the efficiency ratio in this quarter that stood at 42.24%.
Operating performance for the second quarter of 2015 compared with the same quarter of 2014, KBank and its subsidiaries reported net profit of Baht 11,479 Million, a decrease of Baht 253 Million or 2.16% over the same quarter of 2014.
As of 30 June 2015, KBank and its subsidiaries' total assets were Baht 2,511,723 Million, rising Baht 36,852 Million or 1.49% over the previous quarter, driven by an increase in loans and rising Baht 122,586 Million or 5.13% over the end of 2014, driven by an increase in interbank and money market items and loans. NPL gross to total loans stood at 2.39% as of 30 June 2015, while at the previous quarter and the end of 2014 this stood at 2.26% and 2.24%, respectively. In this period, KBank has set aside higher allowance for impairment loss on loans to be served as continuous economic slowdown beyond expectation. Coverage ratio as of 30 June 2015 stood at 138.13%, while at the previous quarter and the end of 2014 this stood at 139.74% and 141.38%, respectively. In addition, as of 30 June 2015, KASIKORNBANK FINANCIAL CONGLOMERATE's Capital Adequacy Ratio (CAR) according to the Basel III Accord was 17.39%, with a Tier-1 Capital ratio of 13.77%.