KKP’s 3Q23 Earnings Drop 38% over Larger Provisions and Loss from Sale of Foreclosed Assets

Kiatnakin Phatra Bank Public Company Limited (SET: KKP) has announced its 3Q23 consolidated financial statement through the Stock Exchange of Thailand as follows;

Quarter 3Q23 3Q22
Net Profit (Loss)
Million Baht
1,280.51 2,083.41
Earning Per Share
1.5100 2.4600
% Change -38.54
9 Months 2023 2022
Net Profit (Loss)
Million Baht
4,773.66 6,172.05
Earning Per Share (Baht) 5.6400 7.2900
% Change -22.66

KKP reported a net profit of Baht 1,280 million in 3Q23, decreased 38.54% from the same period last year. The decrease was driven primarily by the increase in expected credit loss and loss from sale of foreclosed assets.

For 3Q23, operating income increased 9.4% YoY driven by the strong growth in net interest income of 25.4% to Baht 5,988 million, largely from the expanded loan portfolio while non-interest income declined by 28.2%.

Loss from sale of foreclosed assets in the third quarter was Baht 1,344 million, increased 233% from last year.

Amid the uneven economic recovery, the Bank continues to actively manage the asset quality of the loan portfolio and remains prudent in setting up provisions resulting in a continuing elevated level of provision in the amount of Baht 1,678 million for 3Q23, up 54% from last year but down 10% when compared to 2Q23.

The Non-Performing Loans (NPLs) to total loans ratio for 3Q23 declined to 3.5% compared to 3.6% level during the end of 2Q23, with total allowance for expected credit losses to total NPLs ratio (coverage ratio) improved to 145.3% compared to 143.1% during 2Q23.