KBank and its subsidiaries reported net profit for the year 2022 of Baht 35,770 Million, a decrease of Baht 2,283 Million or 6.00% over the previous year. Operating profit before expected credit loss and income tax expense amounting to Baht 98,504 Million, an increase of 6.72% over the previous year. As a result of the Bank's strategic and interest rate direction, net interest income grew strongly and NIM was higher that stood at 3.33%. Together with efficient expense management, the cost to income ratio stood at 43.15%. However, KBank and its subsidiaries set aside higher expected credit loss than the previous year, the increase could be attributed to our continuously adopted a prudent approach and to cope with uncertainties of economic circumstance.
Net interest income increased by Baht 13,608 Million or 11.40%, mainly due to an increase in interest income from loans to customers according to growth of new loan granted to retail and SME business customers with focus more on offering of loan products via digital channels along with the use of data analytics for lending, which is in line with the Bank's strategic direction. While non - interest income decreased by Baht 3,700 Million or 8.42%, mainly due to a decrease in fees from fund management, brokerage fees and net premiums earned - net in line with market condition.
Other operating expenses increased by Baht 3,709 Million or 5.22%, mainly due to an increase in marketing expenses consistent with rising revenue which was in line with business volume, and an increase in IT related expenses to accommodate customer demand.
Expected credit loss for the year 2022 amounting to Baht 51,919 Million, an increase of 28.73% from the previous year to cope with a global economic slowdown with the potential to enter a recession in the future and Thailand's economic recovery will likely remain on an uneven path. Moreover, it also strengthens and increases flexibility in asset quality management to ensure readiness to support groups of customers according to the Bank's strategic direction, so that customers can operate their businesses with potential align with the upcoming business opportunities. Coverage ratio as of 31 December 2022 stood at 154.26% which was deemed appropriate with situation happened.
As of 31 December 2022, KBank and its subsidiaries' total assets were Baht 4,246,369 Million, an increase of Baht 142,970 Million or 3.48% over the end of 2021. The majority came from net loan growth in line with the Bank's strategic direction and in accordance with the economy and increase in interbank and money market items - net. Moreover, KBank has enhanced its expertise in the effectiveness of non-performing loans management. This is to support customers to have a better financial status and able to operate their businesses continuously, which will be driver for the overall economic recovery. NPL gross to total loans stood at 3.19%. In addition, as of 31 December 2022, KASIKORNBANK FINANCIAL CONGLOMERATE's Capital Adequacy Ratio (CAR) according to the Basel III Accord was 18.81%, with a Tier 1 Capital ratio of 16.84%. The consolidated financial statements of the Bank and its subsidiaries for the year ended 31 December 2022 include the financial position and operating performance of PT Bank Maspion Indonesia Tbk from holding interest of 67.50% of total issued and paid-up share capital. There is no significant impact on the consolidated financial statements from this additional investment at the end of the year.