Ms. Kattiya Indaravijaya, Chief Executive Officer of KASIKORNBANK, said the Thai economy in the first quarter of 2021 was pressured by the domestic COVID-19 situation that impacted the country's economic momentum, although spending was boosted by the government's stimulus measures while exports excluding gold were supported by brightening global economic prospects. However, any potential Thai economic recovery over the rest of the year remains uncertain, with an uneven recovery among sectors, and dependent upon domestic COVID-19 containment.
Operating performance for the first quarter of 2021 compared with the fourth quarter of 2020, KBank and its subsidiaries reported net profit of Baht 10,627 Million, a decrease of Baht 2,631 Million or 19.85% over the previous quarter. KBank and its subsidiaries reported operating profit before expected credit loss and income tax expense of Baht 23,496 Million, an increase of Baht 4,857 Million or 26.06% mainly due to an increase of net interest income by Baht 1,530 Million or 5.75%, mostly from interest income from loans to customers according to loan growth, resulting in NIM that stood at 3.16%. While non - interest income decreased by Baht 414 Million or 3.36%, mainly due to the volatility of money market and capital market, whereas fee and service income - net increased by Baht 1,129 Million or 13.60%, mainly due to fees from fund management, fees from money transfer and fees from underwriting. Other operating expenses decreased by Baht 3,741 Million or 18.45%, mainly because IT related expenses in order to support customers' needs, marketing expenses aligned with business strategies due to seasonality, resulting in the cost to income ratio that stood at 41.30% in this quarter. Moreover, KBank and its subsidiaries set aside expected credit loss amounting to Baht 8,650 Million in this quarter, although in the previous quarter the Bank has set aside lower expected credit loss that previously reserved in high level for the first three quarters of 2020 which was sufficient. However, the new spread of COVID-19 pandemic occurred in late quarter 1 of 2021 and the Bank continued to provide assistance to customers along with careful business operation amid the uncertain economy. Therefore, the Bank set aside greater reserve than previous quarter.
Operating performance for the first quarter of 2021 compared with the first quarter of 2020, KBank and its subsidiaries reported net profit of Baht 10,627 Million, an increase of Baht 3,252 Million or 44.10%over the same period of 2020. Non - interest income increased by Baht 1,923 Million or 19.30%, as a result of mark to market of financial assets according to market condition and fees from fund management. Moreover, other operating expenses decreased by Baht 950 Million or 5.44% due to expense management during economic slowdown. The cost to income ratio stood at 41.30%. In addition, KBank and its subsidiaries has set aside expected credit loss amounting to Baht 8,650 Million, a decrease of Baht 3,222 Million or 27.14%with continuous prudent consideration on factors in line with economic that remains uncertain from COVID-19 situation.
As of 31 March 2021, KBank and its subsidiaries' total assets were Baht 3,767,115 Million, an increase of Baht 108,317 Million or 2.96% over the end of 2020. The majority came from investments - net and loans, which the Bank has closely monitored credit quality for customer affected by COVID-19. As of 31 March 2021, NPL gross to total loans stood at 3.93% in the same level as the end of 2020. Coverage ratio as of 31 March 2021 stood at 153.98%, while at the end of 2020 this stood at 149.19%. In addition, as of 31 March 2021, KASIKORNBANK FINANCIAL CONGLOMERATE's Capital Adequacy Ratio (CAR) according to the Basel III Accord was 18.44%, with a Tier-1 Capital ratio of 15.80%.