• January 21, 2016
• views
• Print

Krungthai Bank earns 65,689 million Baht of 2015 operating profit

Krungthai Bank revealed the operating performance in 2015 as at 65,689 million Baht. Net profit, after deducting loan loss provisions and income tax, stood at 28,492 million Baht. The net income from fees and services, which is the Bank’s core business, grew continually due to the expansion of loans with high yield, appropriate financial capital management, cautious business operation and emphasis on asset quality.
 
Mr. Vorapak Tanyawong, the president of Krungthai Bank, stated that the Bank and its subsidiaries had 65,689 million Baht of operating performance, increasing from 2014 by 5,784 million Baht or 9.66 percent. After deducting loan loss provisions and income tax, net profit attributable to the Bank was 28,492 million Baht, declined from 2014 by 4,699 million Baht or 14.16 percent. Still, the Bank’s main income grew continually as net income from interest increased by 3,710 million Baht and net income from fees and services rose up to 2,723 million Baht due to appropriate capital management, the expansion due to commercial transactions and foreign currency exchange.  
 
As at 31 December 2015, the Bank and its subsidiaries had given loans for 2,027,441 million Baht, increasing by 74,445 million Baht or 3.81 percent, especially from SME and retail customer loans, which produce high yield, contributed to the increase. The deposits totaled to 2,135,499 million Baht, showing a decrease of 15,769 million Baht or 0.73 percent comparing to the end of 2014 due to the maturity of fixed deposits. Furthermore, the Bank issued subordinated debentures in accordance with Basel III in MYR currency equivalent to 9,091 million Baht.
 
Due to the Bank’s policies to operate the business cautiously and maintain appropriate ratio of doubtful debt reserve to non-performing assets, the Bank and its subsidiaries reserved 30,541 million Baht for bad debts and loss on impairments, showing an increase of 11,898 million Baht or 63.82 percent comparing to the previous year, in accordance with the tendency that NPL of retail SME customers and large corporate customers in steel industry will increase.
 
As at 31 December 2015, the Bank and its subsidiaries’ gross non-performing loan (NPL) was 76,371 million Baht, showing an increase of 18,882 million Baht or 32.84 percent. The net NPL ratio was 1.73 percent. Thus, when excluding NPL of large corporations in steel industry, the NPL would total to 65,863 million Baht, showing an increase of 8,374 million Baht or 14.57 percent. The net NPL ratio would be 1.59 percent.
 
Tier 1 capital totaled to 225,092 million Baht or 11.43 percent and total capital fund equaled to 299,621 million Baht or 15.22 percent of risk-weighted asset, which was calculated in accordance with the Basel III as specified by Bank of Thailand.

Re-disseminated by The Asian Banker