Ms. Kattiya Indaravijaya, CEO of Kasikorn Bank, revealed that the Thai economy in Q1 2022 continues to face limitations in recovery. Despite support from exports, spending, and government measures to boost purchasing power, private sector spending, both in consumption and investment, remains affected by the COVID-19 pandemic and rising inflation, oil prices, and production costs. Looking ahead for the remainder of the year, the path to recovery for the Thai economy remains uncertain as it continues to grapple with the COVID-19 situation and the impacts of the conflict between Russia and Ukraine on energy prices and global economic trends.


Ms. Kattiya Indaravijaya
CEO of Kasikorn Bank

Performance for Q1 2022 Compared to Q1 2021

The bank and its subsidiaries reported a net profit of 11.211 billion baht, an increase of 584 million baht or 5.50% from the same quarter last year. This was primarily due to an increase in net interest income of 3.618 billion baht or 12.86%, driven by growth in loan disbursements, mainly through new loans to potential customers as part of the bank's strategy. The bank also implemented measures to assist customers by enhancing liquidity to help them return to normal operations, while some customers remain under measures to defer principal and interest payments, necessitating ongoing management of accrued interest receivables. Meanwhile, non-interest income decreased by 3.032 billion baht or 25.49%, mainly due to fair value adjustments (mark to market) of financial assets in line with market conditions. Operating expenses increased by 859 million baht or 5.20%, primarily due to IT expenses to better meet customer demands and marketing expenses. Additionally, the bank and its subsidiaries increased provisions for expected credit losses (ECL) by 686 million baht or 7.93% compared to the same quarter last year, in line with loan growth and the uncertain economic situation due to COVID-19 and global economic trends.

Performance for Q1 2022 Compared to Q4 2021

The bank and its subsidiaries reported a net profit of 11.211 billion baht for Q1 2022, an increase of 1.310 billion baht or 13.23% from the previous quarter. Net interest income rose by 951 million baht or 3.09%, primarily from interest income on loans, which increased in line with loan growth, resulting in a net interest margin (NIM) of 3.19%. Non-interest income decreased by 2.861 billion baht or 24.40%, mainly due to fair value adjustments (mark to market) of financial assets in accordance with market conditions and a decline in net income from insurance. Operating expenses decreased by 3.088 billion baht or 15.08%, as the previous quarter included expenses related to joint activities with business partners and seasonal marketing expenses. This resulted in an operating expense ratio to net operating income (Cost to income ratio) of 42.82% for this quarter. Furthermore, the bank and its subsidiaries maintained provisions for expected credit losses (ECL) at a level similar to the previous quarter, continuing to exercise caution in considering various factors amid the uncertain economic recovery due to COVID-19 and global economic trends. The coverage ratio for expected credit losses to non-performing loans (NPL) as of March 31, 2022, stood at 158.33%, which is deemed appropriate given the current situation.

As of March 31, 2022, the bank and its subsidiaries had total assets of 4,133,248 million baht, an increase of 29,849 million baht or 0.73% from the end of 2021, primarily driven by loan growth. The ratio of non-performing loans (NPL) to total loans (%NPL gross) as of March 31, 2022, was 3.78%, with the bank closely monitoring the quality of loans to affected borrowers, compared to 3.76% at the end of 2021. The total capital ratio to risk-weighted assets of Kasikorn Bank's financial business group under Basel III guidelines as of March 31, 2022, was 18.34%, with a Tier 1 capital ratio of 16.35%.