KKP Reports Slight Increase in 1Q23 Results as Lower Non-NII and Operating Expenses Hinder Bottom Line

Kiatnakin Phatra Bank Public Company Limited (SET: KKP) has announced its 1Q23 consolidated financial statement through the Stock Exchange of Thailand as follows;

Year 1Q23 1Q22
Net Profit (Loss)
Million Baht
2,084.86 2,055.35
Earning Per Share
2.4600 2.4300
% Change 1.44

KKP reported a net profit of Baht 2,084 million, an increase of 1.4% YoY, if compared to 4Q22, net profit increased by 45.8%. The increase is primarily driven by performance of the Commercial Banking business from strong growth in interest income. Comprehensive income for 1Q23 totaled Baht 2,139 million, increase of 9.5% YoY.

Net interest income for 1Q23 showed a robust increase of 21.4% YoY primarily from continuous loan expansions together with the increase in interest rates amid rising rate environments. Loan portfolio grew by 2.7% from the end of 2022. Meanwhile, non-interest income declined reflecting unfavorable market conditions.

The Bank continued to focus on efficient cost management with cost to income ratio for 1Q23 at 39.6%1, slight increase YoY driven by expanding business activities. For provisions, the bank remained prudent and recorded total expected credit losses in the amount of Baht 1,097 million for 1Q23.

The Non-Performing Loans (NPLs) to total loans ratio for 1Q23 remained manageable at a stable level of 3.3%2 comparing to level at the end of 2022, while total allowance for expected credit losses to total NPLs ratio (coverage ratio) at 151.6%.