KKP Reports Nearly 30% Decline in 2023 Earnings over Higher Expected Loss from Auto Repossessions

Kiatnakin Phatra Bank Public Company Limited (SET: KKP) has announced its 2023 consolidated financial statement through the Stock Exchange of Thailand as follows;

Quarter 2023 2022
Net Profit (Loss)
Million Baht
5,443.40 7,602.10
Earning Per Share
6.4300 8.9800
% Change -28.40

KKP reported a net profit of Baht 5,443 million in 2023, a decline of 28.4% YoY. The decrease was mainly due to lower non-interest income, higher operating expenses from loss on sale of repossessions from the hire purchase business and expected credit loss.

For the year 2023, KKP recorded Baht 6,082 million in expected credit loss amount, an increase of 20.8% YoY. The expected credit loss amount also included additional provision which the bank had set up during 4Q23, as a precautionary measure for one specific loan customer which continues to be impacted as a consequence of the Covid-19 situation.

When excluding the release of excess loan loss reserve, provisions including loss from sale of repossessed cars (credit cost) for 2023 increased to 3.01% of average loan, from 2.10% during 2022.
The increase in expected credit loss and loss from sale of repossessed cars (credit cost) was driven primarily by the expanded loan portfolio size and the impact to loan quality amid an uneven economic recovery. Furthermore, external factors relating to the auto industry also impact the performance of hire purchase business


For 4Q23, the consolidated net profit totaled Baht 670 million, a decline of 53.2% compared to 4Q22, of which Baht 71 million was the net profit from the Capital Market business. The decline in net profit was driven by the weakened non-interest income of 46.8% YoY from lower net fee and services and other operating income. Operating expenses increased largely due to loss from sale of foreclosed assets while expected credit loss amount declined 30.9% from asset quality improvement measures. Overall, resulting in the decline in net profit for 4Q23. The consolidated comprehensive income for 4Q23 totaled Baht 857 million with Capital Market business’s comprehensive income at Baht 46 million.