"Kiatnakin Phatra Financial Group (KKP)" reveals that its 2020 performance had benefited from the income diversification and prudent growth strategy amidst the crisis. Bank loans grew by 12.4%, while capital markets benefited from volatility and increased transaction volume. Brokerage business secured the largest market share, and there was an inflow of new money to the wealth management business, driving it to reach 600 billion baht. The Group has also set up substantial provision for economic risks, giving rise to its coverage ratio of 170.9%, and decreased net profit of 14.4% from 2019, with the pre-provision profit growth of 17.9%. For 2021, the Group has set to grow its loan portfolio by at least 5%, while closely attending to customers who might be in need of support.
Mr. Aphinant Klewpatinond, Chief Executive Officer, Kiatnakin Phatra Financial Group, revealed at the online press conference on KKP's annual performance on February 2 that "In 2020, we focused on supporting our clients who were affected by the COVID-19 outbreak, both as part of the Bank of Thailand's program and our own, such as the delay of principal/interest payments, soft loan policy, interest rate cuts, and extension of the repayment period. However, KKP's long-implemented income diversification strategy and prudent growth approach had brought satisfactory result. KKP's loan growth rate was 12.4%, owing to auto hire purchase loans, home loans, and corporate loans that had increased since market conditions were not conducive to large companies raising money from the capital market. In the meantime, the capital market business had shown outstanding performance, i.e., (1) Brokerage business benefited from a 29% increase in the average daily turnover, resulting in a significant increase in commission income. It also secured a leading market share of 10.85%. (2) Wealth management business had a 4% increase in Asset Under Advice (AUA) to 600 billion baht, partly due to expansion of service to investment in foreign assets and 3) Direct investment had earned up to 1 billion baht from equity and derivative trading. However, in 2021, the Thai economy is still fragile, and the conditions of consumers who are affected by COVID-19 after the end of aid program still need to be closely monitored. KKP sets a loan growth target of at least 5%, with the NPL ratio at 4.5% of the total loan."
Mr. Philip Chen Chong Tan, President, Kiatnakin Phatra Bank Public Company Limited, elaborated on the performance of commercial banking business that "In 2020, the loan growth had come from three main areas:
Mr. Preecha Techarungchaikul, Head of Finance and Budgeting, Kiatnakin Phatra Bank Public Company Limited, gave details of the performance for the year 2020 that "The Group had a net profit of 5,123 million baht, which was 14.4% decrease from 2019. A net profit from the capital market was 1,221 million baht. The provision for 2020 was at a high level compared to that of 2019, with an NPL coverage ratio of 170.9% (increased from 111.2% in 2019), resulting in lower net profits. Before deducting expected credit losses and income tax for 2020, the Group had a 17.9% increase in operating profit from the previous year. In 2020, net interest income was 14,679 million baht, a 19.2% increase from 2019. In comparison, the non-interest income amounted to 6,554 million baht, a 4.3 percent decrease from 2019. The amount of loan with credit impairment (Stage 3) was 7,751 million baht, or 2.9% of total loans, which was a decrease from 4% at the previous year. At the end of 2020, the Bank's BIS Ratio calculated on the Basel III basis, including profit up to the end of 4Q2020, was 18.15%, and the Tier 1 common equity was 14.14%."