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RETAIL BANKING | Staff Reporter, Thailand
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Krung Thai Bank profits crash 21% to $211.67m in Q1

Loan growth remain subdued dragging net interest income to 6%.

Krung Thai Bank’s profits fell 21% YoY to $211.67m (Bt 6.8b) in Q1, according to UOB Kay Hian, as the bank struggled with higher operating expenses and sluggish revenue growth. 

Operating expenses rose 8% YoY amidst a 39% YoY impairment on a foreclosed property.

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Loan growth remained muted after dipping 0.5% QoQ prompting net interest income to fall 6% YoY. Non-interest income also remained weak after inching down 2% YoY.

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“Credit cost fell to 143bp in 1Q18 .Against this, NPLs rose slightly to 4.3% of total loans while coverage ratio declined slightly from 122% to 120%,” said analyst Thananchai Jittanoon.

“According to management, the increase in NPLs was mainly from the reclassification of SME loans to the agricultural segment. However, the bank’s NPL formation has shown encouraging signs of stabilisation in recent quarters.”

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