Bangkok--18 Jan--KASIKORNBANK
Mr. Predee Daochai, President of KASIKORNBANK, said KASIKORNBANK announced net profit for the year of 2016 of Baht 40,174 Million, an increase of 1.77% over the previous year.
Operating performance for the year of 2016 compared with 2015, KBank and its subsidiaries reported net profit of Baht 40,174 Million, an increase of Baht 700 Million or 1.77% over the previous year mostly because net interest income increased by Baht 4,666 Million or 5.49%. NIM stood at 3.52%. Non-interest income also increased by Baht 1,222 Million or 1.96% mainly due to an increase in net fees and service income and revenue from capital market products, while net insurance premiums decreased. Moreover, other operating expenses decreased by Baht 2,802 Million or 4.20%, resulting in the cost to income ratio that stood at 41.63%. However, KBank has set aside higher allowance for impairment loss on loansto reserve for uncertainty from economic slowdown.
Operating performance for the fourth quarter of 2016 compared with the third quarter of 2016, KBank and its subsidiaries reported net profit of Baht 10,244 Million, a decrease of Baht 612 Million or 5.64% over the previous quarter because other operating expenses increased by Baht 1,798 Million or 11.37% due topremises and equipment expenses and marketing expenses resulting from seasonality while net interest income increased by Baht 653 Million or 2.92%. NIM stood at 3.47%. These result in a rising cost to income ratio that stood at 46.14% this quarter.
Operating performance for the fourth quarter of 2016 compared with the same quarter of 2015, KBank and its subsidiaries reported net profit of Baht 10,244 Million, an increase of Baht 4,767 Million or 87.06% over the same quarter of 2015.
As of 31 December 2016, KBank and its subsidiaries' total assets were Baht 2,845,868 Million, rising Baht 290,563 Million or 11.37% over the end of 2015. The majority came from an increase in interbank and money market items–net, investment – net, and loans. NPL gross to total loans stood at 3.32% as of 31 December 2016, while at the end of 2015 this stood at 2.70%. Coverage ratio as of 31 December 2016 stood at 130.92%, while at the end of 2015 this stood at 129.96%. In addition, as of 31 December 2016, KASIKORNBANK FINANCIALCONGLOMERATE's Capital Adequacy Ratio (CAR) according to the Basel III Accord was 18.84%, with a Tier-1 Capital ratio of 15.16%.