Kasikorn Bank CEO: Thai Economy Faces Challenges in Q1 2024

Miss Khattiya Inthavichai, Chief Executive Officer of Kasikorn Bank revealed that the Thai economic situation in the first quarter of 2024 is still facing limitations in recovery. Because despite support from recovering the tourism sector and the export of goods But industrial production continues to decrease. Apart from the production of agricultural products which has decreased due to the effect of drought problem. At the same time, domestic spending expanded but at a slower rate in the public and private sectors. Regarding the outlook for the rest of 2024, it is seen that the Thai economy may be able to maintain its recovery better. If the tourism sector continues to expand And there is additional support from the return to accelerate the payment of the budget. and other government measures

Among the challenges of various factors, this year Kasikorn Bank has designed a 3 + 1 strategy by increasing the efficiency of quality loan growth under appropriate risk management. Expanding tax revenue business Strengthening service channels Seeking new revenue in the medium and long term including effective resource management Delivering sustainable value to all stakeholders, including including customers, shareholders, employees, regulatory bodies, and society in the context of an uncertain economy.

In the first quarter of 2024, the Bank and its subsidiaries had an operating profit before deducting expected credit losses and income taxes of 29,439 million baht, an increase of 9.93% compared compared to the same quarter last year, mainly from the growth of net operating income Effective cost management and increased efficiency in operations In this quarter, the Bank considered provisions for expected credit losses (ECL ) of 11,684 million baht continues to adhere to the principle of caution. to make a reserve at an appropriate and appropriate level Show the current situation and accept the uncertainty of various factors that may affect the movement of the country’s economic recovery. As a result, net profit for this quarter came to 13,486 million baht.

Net interest income came to 38,528 million baht, with a net interest margin (NIM) of 3.76% in line with market conditions In addition, net fees and service income came to 8,299 million baht, especially from the growth in fees received from the tax management fund received from ticket certification, avals, and guarantees, and fees received from the card industry. Total net operating income was 50,152 million baht, growing 7.68% compared to the same period last year. As for operating expenses, they amounted to 20,713 million baht, an increase of 4.65% from the same quarter last year, mainly due to an increase in various operating expenses that equated to higher income. As a result, the ratio of other operating expenses to net operating income (Cost to income ratio) was at 41.30%, decreased compared to the same quarter of previous year which was at a rate of 42.50%.

In terms of operating results for the first quarter of 2024, compared to the fourth quarter of 2023, the Bank and its subsidiaries had operating profits before deducting credit losses and income taxes of 29,439 million baht, an increase of 11.57% mainly to reduce operating costs. Part of it is marketing costs which are normal and seasonal, and the Bank and its subsidiaries manage costs on an ongoing basis. Although net operating income decreased slightly due to profits from investments in various financial instruments that decreased according to market conditions, in addition, there was a provision for expected credit losses of 11,684 million baht, which was still consistent with the principle of continuous precaution. .

As of March 31, 2024, the Bank and its subsidiaries had total assets of 4,318,809 million baht, an increase of 35,253 million baht or 0.82% from the end of 2023, most of the increase from increased investments in financial instruments that according to financial forecasts. However, net lending declined in line with market conditions. rate of 150.35%.

Source: Kasikorn Bank

symbol: KBANK

Kasikorn Bank