Bangkok: Kasikornbank has reported a net profit of 11,965 million baht for the third quarter of 2024, marking a decrease of 5.43% from the previous quarter. The dip was primarily due to a reduction in non-interest income from the insurance business, despite an increase in fee and service income. For the first nine months of 2024, the bank’s net profit totaled 38 billion baht.
According to Thai News Agency, Ms. Kattiya Indaravijaya, Chief Executive Officer of Kasikornbank, highlighted the ongoing economic challenges in Thailand, including structural issues in industrial production and pressure on private sector spending. Despite these obstacles, she noted that the Thai economy is expected to maintain its growth trajectory for the remainder of the year, albeit with risks such as the flood situation and baht volatility.
In Q3/2024, the bank’s subsidiaries contributed to the overall profit figures, though the net interest income saw a slight decrease due to the sluggish economic recovery. The net interest margi
n (NIM) was recorded at 3.61%, a drop from the previous quarter, influenced by short-term impacts from fund management transactions.
The bank’s operating expenses for the quarter stood at 21,501 million baht, a slight decrease from the previous period, reflecting ongoing efforts to enhance operational efficiency. Expected credit loss (ECL) provisions were maintained at 11,652 million baht, aligning with the bank’s conservative approach to accommodate economic uncertainties.
Over the nine-month period, Kasikornbank and its subsidiaries achieved an operating profit before expected credit losses and income tax of 85,159 million baht, up by 4.75% from the previous year. This was supported by a 5.29% increase in net operating income, which outpaced the rise in operating expenses.
The bank also reported a total asset increase to 4,367,025 million baht as of September 30, 2024, up by 1.95% from the end of 2023, largely due to growth in interbank and money market items. Despite a decrease in net loans by 2.11%, th
e bank continues to manage asset quality effectively, with plans to sell some unsecured business loans and establish a joint venture for managing non-performing assets.
Deposits grew by 2.61% to 2,770,120 million baht, resulting in a loan-to-deposit ratio of 87.85%. The bank maintains a strong capital adequacy ratio, with total capital to risk-weighted assets at 20.58%, ensuring robust financial stability under Basel III criteria.