Krung Thai Bank announced its financial results for the first 9 months of 2021, reporting a net profit of 16.645 billion baht, an increase of 25.3% compared to the same period last year. In the third quarter of 2021, the bank recorded a net profit of 5.055 billion baht, up 65.4% from the same quarter last year. The bank's loans grew strongly while closely managing asset quality, maintaining high provisions with a coverage ratio of 163.9% to support economic uncertainties, and continuously providing assistance to all customer segments.

Mr. Payong Srivanich, the President of Krung Thai Bank, stated that due to the ongoing economic challenges posed by the COVID-19 pandemic, the bank and its subsidiaries have consistently exercised caution in their operations. They have considered setting aside high provisions for expected credit losses, closely managed asset quality, and continuously taken action to prepare for economic uncertainties while prioritizing customer support to mitigate impacts, sustain businesses, and enable future growth when the government relaxes measures and reopens the country, thus supporting economic recovery.

For the 9-month results of 2021, the bank and its subsidiaries reported a net profit attributable to the bank of 16.645 billion baht, an increase of 25.3% from the same period last year. Provisions for expected credit losses amounted to 24.291 billion baht, a decrease of 31.9% from the previous year, yet still reflecting a high level of provisions, resulting in a coverage ratio of 163.9%, up from 147.3% at the end of 2020. The gross NPL ratio stood at 3.57%, down from 3.81% at the end of last year, indicating effective asset quality management and continuous operations. The bank and its subsidiaries reported operating profit before provisions and income tax of 47.841 billion baht, a decrease of 11.6% from the same period last year due to revenue.

The decline in operating results was 8.3%, attributed to a decrease in net interest income. Although loans expanded well by 9.6% from the end of last year, the previous year saw special interest income from the sale of mortgaged assets, along with a decrease in interest income from investments in debt securities, resulting in a net interest margin (NIM) of 2.52%. Operating expenses decreased by 3.8% due to management during the economic slowdown, leading to a cost-to-income ratio of 44.28%, close to 44.45% in the same period last year (excluding special interest income).

For the third quarter of 2021, the bank and its subsidiaries reported a net profit attributable to the bank of 5.055 billion baht, a decrease of 15.9% from the previous quarter, due to an 8.3% decline in operating profit before provisions and income tax, following a 1.8% decrease in operating revenue. Despite a 1.1% increase in net interest income from well-performing loans and effective financial cost management, the NIM slightly decreased to 2.51% from 2.55%. Operating expenses increased by 7.0% due to IT expenses and losses from impairment of assets held for sale.

Compared to the third quarter of 2020, the bank and its subsidiaries reported a net profit attributable to the bank that increased by 65.4% from the same quarter last year, with provisions for expected credit losses decreasing by 34.5%. Operating profit before provisions and income tax decreased by 8.0%, stemming from a 6.4% decline in total operating revenue due to special interest income from the sale of mortgaged assets in the previous year, alongside reduced net interest income from investments in debt securities and decreased income from other operations. The bank effectively managed financial costs and experienced good loan growth, which helped mitigate these impacts, along with managing expenses during the economic slowdown, resulting in a 4.4% decrease in operating expenses, leading to a cost-to-income ratio of 46.21%, slightly down from 47.16% in the same quarter last year (excluding special interest income).

As of September 30, 2021, the bank (standalone) had a Tier 1 capital of 322.626 billion baht and total capital of 389.100 billion baht, representing 16.10% and 19.42% of risk-weighted assets, respectively.
“Although the domestic economy shows signs of improvement with the relaxation of COVID-19 prevention measures and the reopening of the country, there remains high uncertainty in the near future. Therefore, the bank will continue to maintain high levels of provisions, closely monitor customer situations to provide timely assistance to target groups, including measures to reduce financial burdens, enhance liquidity, and increase sales channels through digital platforms such as Krungthai NEXT, Paotang, and Thung Ngern. The bank will also continue to develop products and services to meet the needs of all customer segments, collaborating with partners to leverage technology and innovation to enhance quality of life, alongside supporting SMEs, which are crucial for driving sustainable economic growth.”