Kasikornbank profits up 6% to $338.82m in Q1

The bank was able to keep a lid on its bad debt with NPL ratio closing in at 3.3%.

Kasikorn Bank posted lower than-credit-costs buoying earnings growth to 6% YoY to $338.82m (Bt10.7b) in Q1, according to UOB Kay Hian. 

The bank was able to keep its non-performing loans under control with NPL ratio clocking in at 3.3% whilst coverage ratio inched up to 150%.

“According to management, the flow of new NPLs has become more stable and there have been no signs of alarming NPL increases. Hence, management has maintained its guidance this year for credit costs of up to 185bp,” noted analyst Thananchai Jittanoon.

Other key segments posted decent growth including net interest income which rose 3% YoY on the back of higher loan volume (8% YoY). Net fee growth also stood at 5% amidst capital market fees which include brokerage and mutual funds and loan-related fees.

NIM, however, remained under pressure as loans growth was skewed more towards corporate loans. Non-interest income also dropped 3% amidst poor insurance premium revenue which plummeted 49% YoY.

The bank has also revised its yearly non-II growth guidance in 2018 from flat YoY to 6 to -8% which reflects its move to waive off digital transaction fees by Q2.