Kiatnakin Phatra Bank Public Company Limited (SET: KKP) has announced its 2Q24 consolidated financial statement through the Stock Exchange of Thailand as follows;
| Quarter | 2Q24 | 2Q23 |
| Net Profit (Loss) Million Baht |
768.79 | 1,408.29 |
| Earning Per Share (Baht) |
0.9100 | 1.6600 |
| % Change | -45.41 | |
| 6 Months | 2024 | 2023 |
| Net Profit (Loss) Million Baht |
2,274.81 | 3,493.16 |
| Earning Per Share (Baht) | 2.6900 | 4.1300 |
| % Change | -34.88 | |
KKP reported a net profit of Baht 769 million, a decline of 45.4% compared to 2Q23 driven by lower net interest income of 9.3% YoY amid rising funding costs while non-interest income decreased by 18.8%, primarily due to lower loan related income attributable to slower loan expansion and persistent subdued conditions in the capital markets affecting revenue.
Net interest income amounted to Baht 5,009 million, a decrease of 9.3% YoY, primarily due to a reduction in the interest rate spread as a result of rising funding costs. Interest income totaled Baht 7,722 million, an increase of 3.3% from the same quarter last year, driven by an 8.7% increase in interest income from loans, reflecting an increase in the loan yield to 7.2%, compared to 7.1% YoY.
Interest expenses amounted to Baht 2,714 million, an increase of 39.0% YoY, due to the continued rise in funding costs in line with increases in market interest rates. The cost of funds for 2Q24 increased to 2.5%, compared to 1.8% in 2Q23. Overall, this resulted in a reduction of the interest rate spread to 4.8% for 2Q24.
Expected credit loss decreased by 5.8% YoY, reflecting ongoing efforts to enhance the asset quality of the loan portfolio. When compared to the previous quarter, expected credit loss increased due to the Bank prudently setting aside higher provisions largely for the hire purchase portfolio, partly due to seasonal impact and to account for potential deteriorations stemming from fragile economic conditions and external factors affecting the auto industry.
The Non-Performing Loans (NPLs) to total loans ratio increased to 4.0% as of the end of 2Q24 from 3.8% level at end of 1Q24 with total allowance for expected credit losses to total NPLs ratio (coverage ratio) as of the end of 2Q24 at 136.5%.
