Krung Thai Bank profits crash 21% to $211.67m in Q1

Loan growth remain subdued dragging net interest income to 6%.

Krung Thai Bank’s profits fell 21% YoY to $211.67m (Bt 6.8b) in Q1, according to UOB Kay Hian, as the bank struggled with higher operating expenses and sluggish revenue growth.

Operating expenses rose 8% YoY amidst a 39% YoY impairment on a foreclosed property.

Also read: How can Thai banks cushion the cost impact of waived digital fees?

Loan growth remained muted after dipping 0.5% QoQ prompting net interest income to fall 6% YoY. Non-interest income also remained weak after inching down 2% YoY.

Also read: How can blockchain unblock Thai banks' trade finance slump?

“Credit cost fell to 143bp in 1Q18 .Against this, NPLs rose slightly to 4.3% of total loans while coverage ratio declined slightly from 122% to 120%,” said analyst Thananchai Jittanoon.

“According to management, the increase in NPLs was mainly from the reclassification of SME loans to the agricultural segment. However, the bank’s NPL formation has shown encouraging signs of stabilisation in recent quarters.”

Also Read

Cambodia enables QR payments from foreign e-wallets through Alipay+

Hong Kong to rename ‘virtual banks’ to ‘digital banks’

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit