Kiatnakin Phatra Bank Public Company Limited (SET: KKP) has announced its 1Q24 consolidated financial statement through the Stock Exchange of Thailand as follows;
KKP reported a net profit of Baht 1,506 million in 1Q24, decreased by 27.76% from the same period of last year.
| Year | 1Q24 | 1Q23 |
| Net Profit (Loss) Million Baht |
1,506.02 | 2,084.86 |
| Earning Per Share (Baht) |
1.7800 | 2.4600 |
| % Change | -27.76 | |
Net interest income increased by 0.6% while non-interest income declined by 8.1% YoY. Non-interest income continued to be pressured by unfavorable market conditions leading to a decline in income from the brokerage business. Additionally, bancassurance fees also softened as a result of slower loan growth. Operating expenses remained at an efficient level with cost to income ratio1 for 1Q24 at 42.4%.
As of the end of 1Q24, total loans excluding POCI totaled Baht 395,646 million, contracting by 0.7% from the end of 2023, consistent with the Bank’s direction for a slower loan growth amid an uneven economic recovery.
Retail Lending amounted to Baht 266,535 million, decreasing by 1.5% from the end of 2023. Retail loans include hire purchase loans, personal loans, Micro SMEs loans and housing loans.
Hire purchase loans amounted to Baht 181,232 million, contracted 3.1% from the end of 2023. The portion of hire purchase loan to total Bank loan portfolio stood at 45.7% with the portion of new cars to used cars remaining at the same level of 38:62 from the previous quarter.
For 1Q24, other operating expenses were Baht 4,316 million, increasing by 33.3% YoY, mainly from loss from sale of repossessed cars and the revision of the allowance for impairment of foreclosed properties.
KKP stated that as a result of the Bank’s continuous efforts to improve the quality of its loan portfolio, which has resulted in positive trends as reflected in a continuous decline in expected credit loss level with the 1Q24 expected credit loss lowered to Baht 609 million, a decline of 44.5% YoY.
Additionally, during 1Q24, the Bank on a prudent qualitative classification basis, has classified one large loan account in which the Bank has already provisioned for during 4Q23. This resulted in the Non-Performing Loans2 (NPLs) to total loans ratio to increase to 3.8% as of the end of 1Q24 from 3.2% at the end of 2023 from the classification of such accounts. Meanwhile, the overall asset quality of other loan segments remained at a well-controlled level. As of the end of 1Q24, total allowance for expected credit losses to total NPLs ratio (coverage ratio) stood at 137.3%.
