KBank's Strategic Acquisition in Muang Thai Group Holding
K
KASIKORNTHAI
ธนาคารกสิกรไทย
开泰银行 KASIKORNBANK
KBank: Financial Performance
Note: The Bank and its subsidiaries have adopted new accounting standards (TFRS 9: Financial Instruments) since January 1, 2020 onwards. Some financial statements and
financial ratios are not comparable with previous years' financial figures before Y2020, which were based on the prior accounting standards (non-TFRS9)
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K
KASIKORNTHAI
1Q23 Performance Highlights
71
ธนาคารกสิกรไทย
开泰银行 KASIKORNBANK
■■1Q23 net profit decreased 4.19% YoY, due to higher
expected credit loss. However, EBPT improved as a result of
1Q23 loans dropped 1.20% YTD from SME, Credit Cards, Personal
loan, and from NPL outflow management, while Regional and
KLeasing increased
■NIM was 3.46% in 1Q23, increasing YoY, mainly due to higher
yield in line with interest rate trend, despite higher cost of fund from
higher rate and resumption of FIDF fee to its normal level of 0.46%.
More than 90% of interest income received in cash
Consolidated
2021
2022
1Q22 2Q22
3Q22
4Q22
1Q23
strong growth in operating income and consistently efficient
expense management
Net Profit (Bt bn)
38.05
35.77
11.21
10.79
10.57
3.19
10.74
Profitability
- NIM
3.21%
3.33%
3.19%
3.21%
3.33%
3.62%
3.46%
- ROE*
8.44%
7.38%
9.30%
9.13%
8.49%
2.63%
8.43%
- ROA
0.98%
0.86%
1.09%
1.04%
1.00%
0.30%
- YTD Loan growth
7.88%
3.03%
1.51%
2.79%
1.75%
3.03%
1.01%
-1.20%
- YoY Loan growth
7.88%
3.03%
6.77%
4.45%
0.83%
3.03%
- YoY Net fee income growth
7.01% (6.89%)
- YoY Non-interest income growth
(4.17%) (8.42%)
(6.36%) (5.00%) (5.09%)
(25.49%) (14.72%) (6.04%)
(11.09%)
13.04%
0.28%
(8.13%)
32.00%
Cost control
- Cost to income
43.49%
43.15%
42.82%
43.53%
43.73%
42.60%
42.50%
Asset quality
- NPL ratio
3.76%
- Credit Cost
1.73%
3.19%
2.11%
3.80%
1.59%
3.07%
1.61%
3.19%
3.68%
- Coverage ratio
159.08%
154.26%
Loans to Deposits
93.20%
90.77%
93.31%
93.18%
92.65%
Tier 1 Ratio
16.49%
16.84%
16.35%
16.39%
17.21%
CAR
18.77%
18.81%
18.34%
18.37%
19.19%
90.77%
16.84%
18.81%
16.92%
3.78%
3.04%
1.53%
2.05%
158.33% 144.61% 148.74% 154.26% 156.68%
90.85%
Note: Under Bank of Thailand regulations, net profit in the first half of the year is counted as capital after approval by the Board of
Directors as per Bank regulations. Net profit in the second half of the year is counted as capital after approval of the General
Meeting of Shareholders. However, when a net loss occurs, the capital must be reduced immediately
Capital Adequacy Ratio (CAR) has been reported in accordance with Basel III Capital Requirement from January 1, 2013
onwards. CAR is based on KASIKORNBANK FINANCIAL CONGLOMERATE. KASIKORNBANK FINANCIAL CONGLOMERATE
means the company under the Notification of the Bank of Thailand re: Consolidated Supervision, consisting of KBank,
K Companies, and subsidiaries operating in supporting KBank, Phethai Asset Management Co., Ltd., and other subsidiaries
within the permitted scope of the BOT's definition to be a financial conglomerate
18.90%
* ROE = Net profit (attributable to equity holders of the Bank) deduct dividend from other equity instruments after income tax divided by average
equity of equity excluded other equity instruments
1Q23 net fee income decreased 8.13% YoY from high-base
brokerage and fund management business in 1Q22, in line
with market conditions
1Q23 cost to income ratio was 42.50%, decreasing YoY, from net
total income increasing, despite higher operating expense (mainly
due to one-time employee expenses from cost of living subsidy
measures). Focus on cost management and productivity
improvement, with new investments for future growth
1Q23 NPL ratio was at 3.04%, with a coverage ratio of 156.68%
from proactive NPL management
In 1Q23, we detected deterioration, worth 6% of ECL, in a single
large corporate loan. We took immediate action, covering the
potential loss with management overlay, resulting in 1Q23 credit
cost of 2.05% a little bit higher than target range. In 2023, credit
cost will hold in the range of 175-200 bps.
We expect extra effort will be needed to keep credit cost within this
range because of our ongoing, proactive asset quality cleanup
efforts and this one-time deterioration in a large corporate loan.
However, the credit cost may hit the upper bound of the target
range or slightly exceed it, rising to no more than 210 bps
■1Q23 capital base remained sufficient to support business growth
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