The expected credit loss (ECL) in 2023 is 51,840 million baht, a similarly high amount as last year. Taking into account the principle of constant caution in order to enhance and support uncertainties that may arise from the global economic situation and to take care and help enhance the potential of customers' business operations. Increased flexibility in managing asset quality, and the ratio of the provision for expected credit losses to non-performing loans (coverage ratio) as of December 31, 2023 reached 152.23%.
Other operating expenses An increase of 10,215 million baht or 13.67%, mainly due to an increase in operating expenses in line with income based on turnover, such as expenses for providing customer service. Marketing costs and information technology expenses to be able to answer service needs and support customer needs, including maintaining the security of customer information, in addition to increased employee-related expenses. Part of this measure is assistance with living expenses, which are one-time expenses at the beginning of the year. As a percentage of expenses from other operations, the cost to net operating income ratio reached 44.10%, a slight increase from last year, which amounted to 43.15%.
As of December 31, 2023, the total assets of the Bank and its subsidiaries amounted to 4,283,556 million baht, an increase of 37,187 million baht or 0.88% from the end of 2022, mainly due to the increase in net interbank and money market items. This is the normal liquidity management of a bank. Including various financial assets according to market conditions under quality management
Meanwhile, net lending slowed slightly. By upgrading the process to increase the bank's new lending capabilities to be more efficient. and managing asset quality in light of the economic slowdown, including assisting vulnerable clients after the end of the Bank of Thailand’s assistance measures in 2023, helping clients obtain a better financial position. The ability to conduct business continuously and can lead to the recovery of the overall economic system
In addition, the recognition of accrued interest depends on the amount actually expected to be received. The ratio of non-performing loans to total loans (% of gross non-performing loans) was 3.19% for the total capital adequacy to risk-weighted assets ratio of the business group. Kasikorn Bank's Basel III financial performance as of December 31, 2023 remains strong at 19.41% with a Tier 1 capital adequacy ratio of 17.44%.
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