Krungthai Bank sees Bt20.1 billion operational revenue

For the first half of this year, the bank earned Bt37.6 billion in operational revenue, up 11 per cent from the same period last year, with the gain driven by the growth in credit granted by the bank and decreased operational costs due to the Covid-19 situation.
President Payong Srivanich said the bank’s net interest margin decreased to 3.15 per cent, down from the 3.54 per cent posted in the same quarter last year. The decrease is the result of the Bank of Thailand lowering the policy rate five times in the first half of the year, which also resulted in the expansion of Krungthai Bank’s lending at 9.4 per cent.

“Operational costs have gone down by 13.2 per cent, with the cost-to-income ratio being 40.72 per cent, decreasing from 46.76 per cent in the same period last year,” he said. “When excluding income from the auction of mortgaged properties, the ratio in the first half of 2020 is 43.1 per cent, increasing from 41.77 per cent in the same period last year.”
Payong said that due to an economic contraction this year, the bank has set up a Bt23.2 billion reserve for credit loss and non-performing loans (NPLs), an increase from last year’s reserve of Bt12.89 billion.
“The bank’s NPLs-to-gross-loan ratio is 4.35 per cent, increasing from 4.33 per cent posted on December 31, 2019,” he said.
Krungthai Bank’s net profit in the second quarter is Bt3.82 billion, decreasing by 40.8 per cent from the previous quarter, while net profit in the first half of the year is Bt10.2 billion, decreasing by 33.5 per cent compared to the same period last year, he added.