Operating performance for the nine-month period of 2023 compared with the nine-month period of 2022,
KBank and its subsidiaries reported net profit of Baht 33,017 Million, a slight increase of 1.35% over the same period of 2022. Although operating profit before expected credit loss and income tax expense was Baht 81,298 Million, an increase of 15.90% over the same period of 2022. KBank and its subsidiaries continue to set aside Expected Credit Loss (ECL) under consistently prudent approach to strengthen financial status along with continuous proactive asset quality, taking into consideration the sign of global economic slowdown and uncertainties, along with various other factors that limit the growth of domestic economy as mentioned above. As a result, ECL increased by 31.35% over the same period of 2022. ECL for the third quarter of 2023 remains at a similar level when compared with other preceding quarters and is consistent with the Bank's previous estimates. Furthermore, KBank continues to manage expenses efficiently in accordance with the Bank's strategy.
Net interest income increased by 13.16%, in line with the increase in policy interest rate, despite an increase in the funding cost due to an increase in the rate of contribution to Financial Institution Development Fund to its normal level of 0.46% and an increase in the deposit interest rate. KBank continues to support customers in their business operations by proactively providing assistance to customers, who have been affected by the uneven economic recovery, through various channels of the Bank. NIM stood at 3.62%. In addition, non-interest income increased by 19.09%, mainly due to an increase in financial instruments measured at fair value through profit or loss according to market condition and an increase in revenue from trading and foreign exchange transactions. Other operating expenses increased by 12.57%, in line with the increase in operating income, which were driven by business activities and was also partly driven by an increase in employee expenses from one-time cost of living subsidy measure. As a result, cost to income ratio stood at 42.65%, relatively stable compared to the same period of 2022.
Operating performance for the third quarter of 2023 compared with the second quarter of 2023
KBank and its subsidiaries reported net profit of Baht 11,282 Million, an increase of 2.62% from the second quarter of 2023. Operating profit before Expected Credit Loss and income tax expense was Baht 27,294 Million, which was in line with the preceding quarter. Operating income decreased mainly due to a decrease in financial instruments measured at fair value through profit or loss according to market condition. Other operating expenses decreased from employee expenses and marketing expenses. As a result, cost to income ratio stood at 42.07%, slightly decreased from the preceding quarter, which was 43.37%.
As of 30 September 2023, KBank and its subsidiaries' total assets were Baht 4,266,004 Million, an increase of Baht 19,635 Million or 0.46% over the end of 2022. The majority came from an increase in net interbank and money market, while net loans decreased from more stringent loan underwriting criteria and proactive assets quality management under economic slowdown. NPL gross to total loans was 3.11% and coverage ratio increased to 154.90%. In addition, as of 30 September 2023, KASIKORNBANK FINANCIAL CONGLOMERATE's Capital Adequacy Ratio (CAR) according to the Basel III Accord remained strong at 19.62%, with a Tier 1 Capital ratio of 17.65%.
Source: KASIKORNBANK
