Mr. Patchar Somalatha, Managing Director of Kasikorn Bank, revealed that the overall economic and business landscape in Thailand during the first quarter of 2020 experienced a contraction across nearly all sectors due to the impact of the COVID-19 pandemic. The tourism and export sectors shrank in line with the global economic downturn, while lockdown measures in many countries affected travel and international shipping. Additionally, this situation pressured domestic spending and created volatility in the Thai financial market, prompting the Bank of Thailand to lower the policy interest rate and implement additional measures to maintain financial system stability.

Regarding the bank's performance and that of its subsidiaries in the past first quarter, the bank reported a net profit of 6.581 billion baht, a decrease of 3.463 billion baht or 34.47% from the same quarter last year. Net interest income increased by 2.830 billion baht or 11.21%, primarily due to loan growth and the recognition of interest income and fees related to loans using the effective interest method instead of the contractual method, in compliance with TFRS 9. Additionally, a reduction in the contribution rate to the Financial Institution Development Fund led to a net return on assets of 3.49%.

Non-interest income decreased by 4.869 billion baht or 39.78%, mainly due to volatility in the money and capital markets amid the economic downturn. Operating expenses increased by 1.471 billion baht or 9.19%, partly due to debt management costs, information technology expenses, and marketing activity costs, resulting in an operating expense ratio to net operating income of 49.31%. The bank also recorded an increase in expected credit loss of 4.292 billion baht compared to the previous year.

As of March 31, 2020, the bank and its subsidiaries had total assets of 3,483.527 billion baht, an increase of 189.638 billion baht or 5.76% from the end of 2019, mainly due to an increase in interbank and money market items and loan growth. The ratio of non-performing loans to total loans stood at 3.86%, with the bank closely monitoring and assisting borrowers affected by COVID-19 to maintain loan quality. The ratio of expected credit loss provisions to non-performing loans was at 138.66%. The total capital ratio of Kasikorn Bank's financial business group, in accordance with Basel III guidelines, was 18.53%, with a Tier 1 capital ratio of 15.17%.