Operating performance for the first half of 2019, KBank and its subsidiaries reported net profit of Baht 19,973 Million, and reported net profit of Baht 9,929 Million, for the second quarter of 2019.
Operating performance for the first half of 2019 compared with the first half of 2018, KBank and its subsidiaries reported net profit of Baht 19,973 Million, a decrease of Baht 1,709 Million or 7.88% over the same period of 2018. Net interest income increased by Baht 2,960 Million or 6.16% mainly due to interest income from loans to customers and investments. NIM stood at 3.30%, while non-interest income decreased by Baht 5,475 Million or 17.46% mainly due to a decrease in net premiums earned – net and revenue from capital market products, including fees waive for money transfers through digital channel. Moreover, under the economic slowdown that affected in the Bank's earnings, the Bank made an effort to control operating expenses, resulted in an increase in operating expenses by Baht 1,087 Million or 3.33% despite retirement reserve increase from the change in defined benefit plan according to employment policy of the Bank which is not relating to labor law. Cost to income ratio stood at 43.89%.
Operating performance for the second quarter of 2019 compared with the first quarter of 2019, KBank and its subsidiaries reported net profit of Baht 9,929 Million, a slight decrease from the preceding quarter of Baht 115 Million or 1.15%. Net interest income increased by Baht 518 Million or 2.05% mainly due to interest income from investments. NIM stood at 3.34%. Moreover, non - interest income increased by Baht 1,392 Million or 11.38% due mostly to an increase in net premiums earned - net, revenue from capital market products and fee and service income - net. Other operating expenses increased by Baht 1,731 Million or 10.81% due to marketing expense and retirement reserve.
As of 30 June 2019, KBank and its subsidiaries' total assets were Baht 3,256,294 Million, an increase of Baht 101,203 Million or 3.21% over the end of 2018. The majority came from an increase in investments - net. NPL gross to total loans as of 30 June 2019 stood at 3.40% while at the end of 2018 this stood at 3.34%. Coverage ratio as of 30 June 2019 stood at 157.95%, while at the end of 2018 this stood at 160.60%. In addition, as of 30 June 2019, KASIKORNBANK FINANCIAL CONGLOMERATE's Capital Adequacy Ratio (CAR) according to the Basel III Accord was 18.55%, with a Tier-1 Capital ratio of 16.19%.