Ms. Khatia Inthawichai, CEO Kasikorn Bank revealed that the Thai economic situation in the first quarter of 2024 still faces constraints in recovery. Because despite the support from the recovery of the tourism sector and commodity exports, industrial production continues to contract. As well as the production of agricultural products, which decreased due to the effects of the drought problem. At the same time, domestic spending expanded but at a slower rate in both the public and private sectors. As for the outlook for the rest of 2024, it is expected that the Thai economy will be able to better maintain the recovery path. If the tourism sector continues to expand and there is additional support from the return to accelerate budget disbursement. and other government measures
Amid the challenges of various factors, Kasikorn Bank this year established a 3+1 strategy by increasing the efficiency of growth of high-quality loans under proper risk management. Expanding the fee income business Strengthening service channels Seeking new income in the medium and long term including effective resource management Delivering sustainable value to all stakeholders, including customers, shareholders, employees, regulators and the community in the context of an uncertain economy.
In the first quarter of 2024, the bank and its subsidiaries achieved operating profit before deducting expected credit losses and income taxes of 29,439 million baht, an increase of 9.93% compared to the same quarter of last year, mainly from growth in net operating income, effective cost management and increased efficiency. In operations this quarter, the bank considered provisions for expected credit losses amounting to 11,684 million baht and the bank continues to adhere to the principle of caution. To make a reserve at an appropriate and adequate level to reflect the current situation and accommodate the uncertainty of various factors that may affect the direction of the country's economic recovery. As a result, the net profit for this quarter amounted to 13,486 million baht.
Net interest income was 38,528 million baht, with a net interest margin of 3.76% in line with market conditions. In addition, net revenue from fees and services amounted to 8,299 million baht, mainly from growth in fees received from the Fund, management of fees collected from ticket authentication, declarations and guarantees, and fees collected from card business. Total net operating income reached 50,152 million baht, an increase of 7.68% compared to the same period last year. As for operating expenses, they amounted to 20,713 million baht, an increase of 4.65% over the same quarter of last year. This is mainly due to the increase in various operating expenses that were accompanied by an increase in income. As a result, the ratio of other operating expenses to net operating income (cost to income ratio) reached 41.30%, recording a decrease compared to the same quarter of the previous year, which was at 42.50%.
As for the operating results for the first quarter of 2024 compared to the fourth quarter of 2023, the bank and its subsidiaries achieved operating profits before deducting expected credit losses and income taxes of 29,439 million baht, an increase of 11.57%, mainly to reduce operating expenses. Part of it is regular and seasonal marketing expenses, and the bank and its subsidiaries manage the expenses on an ongoing basis. Although net operating income decreased slightly due to profits from investments in various financial instruments that decreased according to market conditions, in addition, an allowance for expected credit losses of 11,684 million baht was provided, which is still consistent with the principle of continued caution.
As of March 31, 2024, the total assets of the Bank and its subsidiaries amounted to 4,318,809 million baht, an increase of 35,253 million baht or 0.82% from the end of 2023, most of the increase from increased investment in financial instruments in line with expectations. However, net loans decreased in line with expectations. Market conditions to total loans (% of total non-performing loans) stood at 3.19%, and the provision for expected credit losses reached the (coverage) ratio for non-performing loans. Level of 150.35% The ratio of total capital adequacy to risk assets of Kasikorn Bank's financial business group as per Basel III guidelines as of March 31, 2024 remains strong at 19.37%.
Code: K Bank
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