Krung Thai Bank's earnings fell 17% to THB8.3b

Despite strong loan growth.

According to Nomura, Krung Thai Bank declared 1QFY14 earnings of THB8.3bn (-17% q-q, -2% y-y), coming in at 24% of consensus FY14 estimates of THB35.016bn.

Here's more:

While loan growth was strong and fee income momentum continues to show strength at 7% y-y, absence of dividends from the Vayupaksa fund resulted in overall non-interest income declining 10% y-y. Asset quality remains decent with gross NPL ratio increasing moderately to 3.5% (3.3% in FY13). Provision coverage ratio was 104%.

Loan/deposit growth: The loan growth was strong at 3.2% q-q (10.7% y-y), while deposits increased 4.2% q-q. As a result, the loan-to-deposit ratio declined moderately to 90% from 91% at FY13 end.

Net interest income: With NIMs increasing 5bps y-y, overall net interest income increased 12% y-y.
Non-interest income: Fee income registered strong growth of 7% y-y while trading/exchange gains increased 17% y-y. Dividend income declined THB890mn (91%) mainly due to the maturity of its investments in the Vayupak fund in 4QFY13. Overall non-interest income declined 35% q-q, -10% y-y. 

Cost income ratio: While operating income increased 4.5% (mainly due to weaker non-interest income), operating expenses increased 11.3% y-y. Overall personnel expenses increased 7% y-y with cost-income ratio increasing to 50% (cost-to-asset ratio continues to track FY13 end levels of 1.9%) from 43.4% at FY13 end.