Ms. Kattiya Indaravijaya, Chief Executive Officer of KASIKORNBANK, saidthe Thai economy resumed growth in 2021 after a severe contraction caused by the COVID-19 outbreak in 2020. Private domestic expenditure was supported by the government stimulus program and progress on vaccination. Meanwhile, the Thai authorities relaxed pandemic-related containment measures in the second half of 2021. Exports rose along with a global economic recovery. However, the Thai economy is likely to be challenged in early 2022 by rising risks from the Omicron variant of COVID-19, which has already begun to trigger authorities' reintroduction of tighter containment measures.
Operating performance for the year of 2021, KBank and its subsidiaries reported net profit of Baht 38,053 Million, and reported net profit of Baht 9,901 Million, for the fourth quarter of 2021.
KBank and its subsidiaries reported net profit for the year of 2021 of Baht 38,053 Million, an increase of Baht 8,566 Million or 29.05% over the previous year, due to a decrease in expected credit loss amounting to Baht 3,216 Million or 7.38%. KBank and its subsidiaries consider to set aside expected credit loss in the year of 2021 amounting to Baht 40,332 Million, which consistently conform with prudent approach. Coverage ratio as of 31 December 2021 stood at 159.08%, while at the end of 2020 this stood at 149.19% that was suitable level and in line with situation happened. However, KBank and its subsidiaries still closely assess the situation of economic uncertainties which was affected by the COVID-19 pandemic and the Thai economy is likely to be challenged in early 2022 by rising risks from the Omicron variant of COVID-19. In addition, KBank and its subsidiaries proactively work to continuously support customers through various measures.
Moreover, KBank and its subsidiaries reported net interest income increased by Baht 7,822 Million or 6.13%, mainly due to new lending in line with the Bank's business direction to customers with potential and the Bank's relief measures to inject liquidity for customers so that they could resume normal business operations. In addition, there are still some customers under the Bank's relief measures covering moratorium on principal and interest payments that the Bank still continuously manage accrued interest. NIM stood at 3.21%. Non - interest income decreased by Baht 1,910 Million or 4.17%, mainly due to revenue from sales of securities and decrease in net premiums earned - net, although fees and service income - net increased by Baht 2,312 Million or 7.01%, mainly due to fees from fund management and brokerage fees. Other operating expenses increased by Baht 1,048 Million or 1.50% due to employee expenses, while premises and equipment expenses and marketing expenses decreased. Cost to income ratio stood at 43.49%.
As of 31 December 2021, KBank and its subsidiaries' total assets were Baht 4,103,399 Million, an increase of Baht 444,601 Million or 12.15% over the end of 2020. The majority came from an increase in investments - net and loans growth to the customers with potential and the Bank's relief measures. As of 31 December 2021, NPL gross to total loans stood at 3.76%, while at the end of 2020 this stood at 3.93%. The Bank has closely monitored and assured credit quality for customers affected by COVID-19. In addition, as of 31 December 2021, KASIKORNBANK FINANCIAL CONGLOMERATE's Capital Adequacy Ratio (CAR) according to the Basel III Accord was 18.77%, with a Tier-1 Capital ratio of 16.49%.