• May 01, 2017
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Kasikorn Bank releases Q1 2017 results

Amid limited global economic growth – including in Thailand – we continue to face a new competitive landscape with a broader marketplace within the ASEAN Economic Community (AEC) while we are embracing the digital age. There are numerous changes in terms of economy, regulatory controls, technologies and, of course, consumer behavior. KBank and K Companies thus emphasize enhancement of our business capabilities to achieve long-term sustainable growth and returns while maintaining our leadership in the market. Guided by our core “Customer Centricity” strategy, we have developed our capabilities to better understand the varied needs of all eight customer segments, focusing on innovations and financial product management, as well as uplifting of our sales and service quality excellence, with greater consideration of customer rights protection.

To deliver excellent financial products and an unsurpassed service experience to all our customers, we have adopted synergy among companies within the KASIKORNBANK FINANCIAL CONGLOMERATE (the Conglomerate), strategic partners and startup firms under effective and timely risk management. With the aid of these business strategies for the first quarter of 2017, KBank and subsidiaries reported a net profit of Baht 10,171 million, a slight decrease of Baht 73 million, or 0.71 percent overquarter, but rising Baht 525 million, or 5.45 percent over the same period of 2016.

Meanwhile, our impairment loss on loans and debt securities increased Baht 2,262 million, or 32.91 percent over-quarter, to cope with economic uncertainties. Operating profit before provision expense and income tax expense rose Baht 2,830 million, or 13.77 percent over-quarter, as a result of a decline in operating expenses of Baht 2,382 million, or 13.53 percent, due to seasonality.

As such, KBank maintained key financial ratios at levels consistent with our overall economic performance. Our net interest margin (NIM) equaled 3.41 percent. Our cost to income ratio was favorable at 39.44percent. Meanwhile, our robust capital position was sufficient to cushion against risks, and greater than the Bank of Thailand’s requirement. As evidenced, the Conglomerate’s capital adequacy ratio (CAR) according to the Basel III Accord was17.51percent, with a Tier-1 capital ratio of 15.03percent.

All of the above endeavors and satisfactory operating performance, together with sound corporate governance, allowed KBank and K Companies to meet business targets, gaining wide acceptance and marks of recognition at home and abroad, as reflected in the numerous awards we received in the first quarter of 2017.

Re-disseminated by The Asian Banker