Commercial anking - to sustain quality credit growth and enhance operational efficiency to support the economies of scale;
Wealth Management - to gear up service with international benchmarking; and
Investment Banking - to leverage expertise in the industry to generate revenue from fees and create KKP's income balance.
For the 2023 performance results, KKP's profit decreased due to economic impact on auto hire-purchase loan customers and sluggish stock market. Nevertheless, KKP's digital service channels, such as Dime and Digital Edge, were able to increase their customer base reaching more than 700,000 downloads. Mutual fund management's asset under advice increased by up to 40 percent. For 2024, the loan growth target is set at 3 percent.
Mr. Aphinant Klewpatinond, Chief Executive Officer, Kiatnakin Phatra Financial Group revealed the business direction for 2024 that "Global trends in financial and capital markets suggest that businesses are now utilizing diverse channels to mobilize resources for their operations, instead of relying solely on bank loans. Therefore, KKP aims to scale up its three core businesses: commercial banking, wealth management, and investment banking, developing multiple channels to achieve robust and resilient growth in response to the economic system driven by change in information access, technology, and regulations. Commercial banking will be the main source of income that grows with balance sheet growth. Hence, we need to raise deposits to meet the increasing demand for loans. As for wealth management and investment banking, we will focus on improving services to international standards to generate revenue from fees, which is an efficient way to use balance sheet with low credit risk."
Mr. Philip Chen Chong Tan, President, Kiatnakin Phatra Bank Public Company Limited commented on the Bank's performance that "In 2023, profit decreased due to economic conditions and interest rates affecting auto hire-purchase loan customers coupled with changes in car prices. In response, the Bank focused on quality asset management, which showed positive signs of improvement. It also expanded its market share in quality credit through KKP Auto Loan. For 2024, the Bank sets the loan growth target at 3 percent and will further develop digital service platforms, such as Digital Edge and Dime, to deliver the best service access and experience to customers."
Mr. Preecha Techarungchaikul, Head of Finance and Budgeting, Kiatnakin Phatra Bank Public Company Limited commented on financial information for 2023 that "KKP had a net profit of THB 5,443 million, down by 28.4 percent. Comprehensive income was THB 5,452 million, part of which is a net profit of THB 1,078 million and a comprehensive income of THB 1,119 million from capital market. In 2023, an additional provision of THB 600 million was set aside for a large-sized loan, driving a high NPL coverage ratio of 164.6 percent at the end of 2023. Furthermore, the Bank saw an increase in both net interest and non-interest incomes. Net interest income amounted to THB 22,294 million, up by 16.8 percent, while non-interest income was THB 6,469 million, down by 23.5 percent from 2022. The Bank had a BIS ratio of 16.2 percent, calculated according to the Basel III rules and included profits up to the end of 2023, and Common Equity Tier 1 ratio was 12.8 percent."
Source: Kiatnakin Phatra Financial Group