Lower provisions drive up Kiatnakin Phatra Bank’s net profits in Q3

Provisions were 59% year-on-year lower.

Kiatnakin Phatra Bank (KKP) reported a net profit of THB1.3b in the first Q3 2024, a 70% jump quarter-on-quarter (QoQ) and 2% year-on-year (YoY) higher.

Lower credit costs drove the higher net profit for the quarter, according to the Thai bank's latest financial results. Notably, KKP set aside lower provisions in Q3, at just THB681m— 59% YoY and 62% QoQ lower.

Apart from lower provisioning, KKP attributed the lower credit costs to improved quality of new loans and asset quality management measures.

UOB Kay Hian analyst Thanawat Thangchadakorn said to wait another quarter to confirm if improvements in KKP’s asset quality are sustainable.

“Given the uneven recovery in the used car price index and the volatility of KKP’s credit cost since 1Q24, we need another solid quarter to bolster our confidence and turn more positive on KKP’s asset quality outlook,” Thangchadakorn said in a report on KKP’s Q3 2024 company results.

KKP’s non-performing loan (NPL) ratio rose to 4.1% in Q3, from 4% in Q2, UOBKH said.

Thangchadakorn has revised KKP’s earnings forecasts for 2024-2026 by 13.5%, 1.8%, and 0.1%, respectively, taking into account the Q3 2024 surprise earnings and the rate cut outlook in Thailand.

Also Read

Sri Lanka and Vietnam banks to boost 2025 financials

Philippine banks’ costs to rise; Singapore lenders face slower profit growth

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit