Ms. Kattiya Indaravijaya, Chief Executive Officer of Kasikorn Bank, revealed that the Thai economy in 2021 has returned to growth after a significant contraction due to the impact of COVID-19 in 2020. Domestic spending was supported by government measures and accelerated vaccination efforts, while Thai authorities began to relax pandemic control measures, especially in the latter half of the year. Exports also grew significantly in line with the global economic trend. However, the recovery of the domestic economy may slow down again in early 2022 amid risks from the Omicron variant of COVID-19, prompting Thai authorities to adjust measures to manage the situation once more.


Ms. Kattiya Indaravijaya, Chief Executive Officer of Kasikorn Bank

The bank and its subsidiaries reported a net profit of 38.053 billion baht for 2021, with a net profit of 9.901 billion baht for the fourth quarter of 2021.

The bank and its subsidiaries achieved a net profit of 38.053 billion baht for 2021, an increase of 8.566 billion baht or 29.05% from the previous year. This was partly due to a decrease in expected credit loss (ECL) provisions by 3.216 billion baht or 7.38%. The bank and its subsidiaries set aside provisions of 40.332 billion baht in 2021, maintaining a cautious approach. The coverage ratio for expected credit losses to non-performing loans (NPL) as of December 31, 2021, increased to 159.08% compared to 149.19% at the end of 2020, which is considered appropriate given the current situation. Nevertheless, the bank and its subsidiaries continue to closely monitor the uncertainties of the economic conditions impacted by COVID-19 and the potential slowdown of the domestic economy in early 2022 due to the Omicron variant, along with proactive measures to assist customers through various support initiatives.

Additionally, the bank and its subsidiaries saw interest income rise by 7.822 billion baht or 6.13%, primarily due to new lending to potential customers in line with the bank's strategy, as well as measures to support customers in regaining normal business operations. Some customers are still under principal and interest payment relief measures, necessitating ongoing management of accrued interest. The net interest margin (NIM) stood at 3.21%. Non-interest income decreased by 1.910 billion baht or 4.17%, mainly due to reduced income from securities sales and net income from insurance, although net fee and service income increased by 2.312 billion baht or 7.01%, primarily from fund management fees and brokerage fees from securities trading. Operating expenses increased by 1.048 billion baht or 1.50%, driven by employee-related costs, while expenses related to buildings, facilities, and marketing activities decreased. The cost-to-income ratio was at 43.49%.

As of December 31, 2021, the bank and its subsidiaries had total assets of 4,103.399 billion baht, an increase of 444.601 billion baht or 12.15% from the end of 2020, primarily due to an increase in net investments and growth in potential loans, along with customer support measures. The ratio of non-performing loans to total loans (%NPL gross) as of December 31, 2021, was at 3.76%, with the bank closely monitoring the credit quality of affected borrowers, compared to 3.93% at the end of 2020. The total capital ratio of Kasikorn Bank's financial business group, according to Basel III guidelines, was at 18.77% as of December 31, 2021, with a Tier 1 capital ratio of 16.49%.