Kasikornbank announced a net profit of 26.139 billion baht for H1 2024

Manufacturing and household spending faced challenges from production costs, debt burdens, and incomplete income recovery. For the remainder of 2024, the Thai economy is expected to stay on track due to accelerated budget disbursement and exports benefiting from a low base last year.

However, rising costs, including energy and minimum wages, and the details of government stimulus measures need close monitoring.

Amid these challenges, KBank remains focused on its 3+1 strategic priorities to deliver sustainable value in an unpredictable economic environment.

In Q2 2024, KBank and its subsidiaries reported a net profit of 12.653 billion baht, a 6.18% decrease from the previous quarter, mainly due to decreased net interest and fee income, while net premiums earned gradually recovered.

Operating expenses increased by 5.67% to 21.888 billion baht, within the bank's cost and productivity management framework.

KBank set aside an expected credit loss (ECL) of 11.672 billion baht, consistent with the previous quarter, reflecting the current situation and supporting uncertainties that may affect the economic recovery. The coverage ratio increased to 151.87%.

Net total operating income was 50.429 billion baht, with a 2.75% decrease in net interest income due to the slow economic recovery and changes to credit processes. Additionally, the bank adjusted interest rates to support vulnerable customers and increase deposit rates.

Net fees and service income decreased by 2.66%, despite a recovery in net premiums earned. Operating expenses rose due to marketing activities, IT-related expenses, and one-time employee subsidies, resulting in a cost-to-income ratio of 43.40%.

For the first half of 2024, KBank and its subsidiaries reported an operating profit before ECL and income tax expense of 57.981 billion baht, a 7.36% increase due to effective cost management.

The cost-to-income ratio decreased to 42.35% from the same period in 2023. ECL decreased from the same period in 2023, reflecting a prudent approach amid economic uncertainties, resulting in a net profit of 26.139 billion baht, a 20.26% increase from the same period in 2023.

Net operating income was 100.581 billion baht, a 6.27% increase, mainly due to a 6.18% rise in net interest income, aligning with market conditions.

The net interest margin ratio stood at 3.73%. The bank reduced loan interest rates in Q2 2024 to aid vulnerable customers. Net fees and service income grew due to fund management and acceptance fees, and investment income and forex transaction revenue also increased, partly due to tourism recovery. Other operating expenses increased by 4.82% to 42.6 billion baht due to marketing and IT expenses.

As of June 30, 2024, KBank and its subsidiaries' total assets were Baht 4.247540 trillion baht, a slight decrease of 0.84% from the end of 2023. Net loans remained stable, reflecting the slow economic recovery and the bank's focus on efficient, quality lending.

The NPL gross to total loans ratio was 3.18%, slightly lower than the previous quarter. The capital adequacy ratio (CAR) of the KASIKORNBANK FINANCIAL CONGLOMERATE under Basel III remained strong at 19.42%.

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