Kiatnakin Phatra Bank Public Company Limited (SET: KKP) has announced its 2024 consolidated financial statement through the Stock Exchange of Thailand as follows:
| Year | 2024 | 2023 |
| Net Profit (Loss) Million Baht |
4,985.07 | 5,443.40 |
| Earning Per Share (Baht) |
5.9200 | 6.4300 |
| % Change | -8.42 | |
KKP reported a net profit of Baht 4,985 million, a decrease of 8.4% compared to 2023. This decline was primarily attributed to a reduction in net interest income, which fell by 11.0% as a result of the slowdown in loans following the Bank’s asset quality management measures that focused on high-quality loans.
For 2024, net interest income (NII) amounted to Baht 19,848 million, a decrease of 11.0% compared to 2023. This decline was primarily due to the reduction in loan spread, driven by the increase in funding costs. Interest income totalled Baht 30,515 million, a slight decrease of 0.7% from the previous year, mainly due to the reduction in interest income from hire purchase and finance lease income following the contraction of hire purchase loans consistent with the Bank’s measures to slow down loan growth, as well as lower income from purchased or originated credit-impaired loans (POCI) from a high base in the previous year.
Meanwhile, interest expenses amounted to Baht 10,667 million, an increase of 26.6% from 2023, in line with rising market interest rates. The yield on loans was efficiently managed, increasing to 7.3% from 7.1% in 2023. However, cost of funds for 2024 also increased in line with market interest rates, rising to 2.5% compared to 1.9% in 2023. Overall, this resulted in the loan spread for 2024 narrowing to 4.8% from 5.2% in 2023.
Meanwhile, non-interest income amounted to Baht 6,954 million, an increase of 7.5% from 2023. Net fee and service income performed well despite the sluggish capital market and loan slowdown.
As of the end of 4Q24, total loans, excluding POCI, amounted to Baht 367,547 million, reflecting a 7.8% contraction from the end of 2023. This aligns with the Bank’s strategy for slower loan growth amid ongoing economic uncertainties and challenges within the automotive industry.
KKP maintained its prudent approach in setting aside provisions based on the expected credit loss (ECL) model, carefully considering various factors and potential impacts on loan quality which may arise as a result of the uncertain economic conditions and the challenges within the automotive industry. The expected credit loss for 2024 amounted to Baht 3,974 million, a decrease of 34.7% compared to Baht 6,082 million provisioned for during 2023. This reduction was driven by improved loan quality due to the Bank’s continuous efforts in asset quality management and the better quality of new loans. Additionally, the lower provisions were in line with the slowdown in loan volume. The expected credit loss and losses from the sale of repossessed cars (credit cost) for 2024 represented 2.30% of average loans, down from 3.01% in the previous year.
