Bangkok--21 Apr--KASIKORNBANK
Ms. Kattiya Indaravijaya, President of KASIKORNBANK, said KASIKORNBANK announced net profit for the first quarter of 2016 of Baht 9,646 Million, a decrease of 22.22% over the same period of 2015.
Operating performance for the first quarter of 2016 compared with the first quarter of 2015, KBank and its subsidiaries reported net profit of Baht 9,646 Million, a decrease of Baht 2,755 Million or 22.22% over the same period of 2015 mostly because KBank has set aside higher allowance for impairment loss on loans to reserve for uncertainty from economic slowdown. However, there was Baht 24,958 Million of operating profit before provision expense and income tax expense, an increase of Baht 4,116 Million or 19.75% over the same period of 2015 because net interest income increased by Baht 1,225 Million or 5.84%. Non-interest income also increased by Baht 2,267 Million or 14.84% due to an increase in net fees and service income and revenue from capital market products. Moreover, other operating expenses decreased, resulting to the cost to income ratio stood at 37.21%.
Operating performance for the first quarter of 2016 compared with the fourth quarter of 2015, KBank and its subsidiaries reported net profit of Baht 9,646 Million, a rise of Baht 4,169 Million or 76.13% over the previous quarter mostly because other operating expenses decreased by Baht 5,039 Million due to seasonality and in previous quarter, there was an extraordinary expense due to setting the allowance for impairment on application software. Moreover, non-interest income increased by Baht 3,020 Million or 20.79% due mostly to revenue from capital market and money market products and net insurance premiums. KBank still maintained net interest margin (NIM) at 3.62%. These result in the cost to income ratio in this quarter stood at 37.21%. Also, KBank has set aside higher allowance for impairment loss on loans.
As of 31 March 2016, KBank and its subsidiaries' total assets were Baht 2,643,709 Million, rising Baht 88,404 Million or 3.46% over the end of 2015. The majority came from an increase in interbank and money market items - net. NPL gross to total loans stood at 2.81% as of 31 March 2016, while at the end of 2015 this stood at 2.70%. Coverage ratio as of 31 March 2016 stood at 135.13%, while at the end of 2015 this stood at 129.96%. In addition, as of 31 March 2016, KASIKORNBANK FINANCIAL CONGLOMERATE's Capital Adequacy Ratio (CAR) according to the Basel III Accord was 18.36%, with a Tier-1 Capital ratio of 14.88%.