Mr. Patchar Somalapa, Managing Director of Kasikornbank, announced that the bank reported its financial results for the year 2018, with a net profit of 38.459 billion baht, an increase of 4.121 billion baht or 12.00% from the previous year.

For the year 2018, compared to 2017, the bank and its subsidiaries achieved a net profit of 38.459 billion baht, up by 4.121 billion baht or 12.00%. This was due to a decrease in provisions for doubtful debts, which aligns with the bank's asset quality. Additionally, net interest income increased by 4.377 billion baht or 4.65%, primarily from interest income on loans and investments, with a net interest margin (NIM) of 3.39%. Non-interest income decreased by 5.750 billion baht or 9.17%, mainly due to the elimination of fees for digital money transfers and a decline in net income from insurance, while income from money market products increased from foreign exchange transactions. Furthermore, other operating expenses rose by 1.976 billion baht or 2.98%, mainly due to marketing expenses, resulting in a cost-to-income ratio of 43.96%.

For the fourth quarter of 2018, compared to the third quarter of 2018, the bank and its subsidiaries reported a net profit of 7.033 billion baht, a decrease of 2.711 billion baht or 27.82%. Net interest income increased by 467 million baht or 1.86%, with a net interest margin (NIM) of 3.41%. Meanwhile, non-interest income decreased by 505 million baht or 3.87%, due to income from money and capital market products and a decline in net fee and service income, while net income from insurance increased. Additionally, other operating expenses rose by 3.275 billion baht or 20.21%, mainly due to marketing expenses, leading to a cost-to-income ratio of 51.24% for this quarter, which is a normal seasonal increase. The bank continues to manage expenses within the annual target.

As of December 31, 2018, the bank and its subsidiaries had total assets of 3,155,091 million baht, an increase of 254,250 million baht or 8.76% from the end of 2017, primarily due to an increase in net investments and loan growth. The ratio of non-performing loans (NPL) to total loans (%NPL gross) as of December 31, 2018, was 3.34%, compared to 3.30% at the end of 2017. The coverage ratio for provisions for doubtful debts to non-performing loans as of December 31, 2018, increased to 160.60% from 148.45% at the end of 2017. The total capital ratio to risk-weighted assets of Kasikornbank's financial business group under Basel III guidelines as of December 31, 2018, was 18.32%, with a Tier 1 capital ratio of 15.90%.

 

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