Kasikornbank (KBank) delivered a 12% surge in unaudited consolidated net profit in 2018, due to lower impairment charges, while Bank of Ayudhya (BAY) posted a 6.9% rise on increases in net interest and net fee and service income.
KBank posted a consolidated net profit of 38.5 billion baht for 2018, compared with 34.3 billion a year earlier, the bank said in a filing with the Stock Exchange of Thailand (SET).
The higher net profit was due to smaller loan-loss provision aligned with asset quality and a 4.7% increase in net interest income, said president Patchara Samalapa.
KBank set loan-loss provision for 2018 at 41.81 billion baht, down 22% from 32.53 billion a year earlier.
The bank's net interest income rose by 4.37 billion baht, largely due to interest income from loans to customers and investments.
KBank, the country's third-largest lender by assets, saw a 9.2% decline in its net non-interest income to 38.1 billion baht last year, bitten by the scrapping of digital transaction fees and a decrease in net premiums earned.
Net interest margin (NIM) stood at 3.39%, KBank said without providing comparative data.
Other operating expenses for 2018 increased by 1.97 billion baht because of higher marketing expense, resulting in a cost-to-income ratio of 43.96%, Mr Patchara said.
Gross non-performing loan (NPL) ratio ticked up to 3.34% at the end of 2018 from 3.3% the previous year.
The bank's NPL coverage ratio rose to 160.6% in 2018 from 148.45% in the preceding year. For the fourth quarter of 2018, net profit surged 23.1% year-on-year to 7.03 billion baht, supported by higher net interest income and smaller loan-loss provision.
BAY's yearly net profit totalled 24.8 billion baht, up 6.9%, due to higher net interest income driven by outstanding loan growth of 10.4% and non-interest income, said president and chief executive Noriaki Goto.
BAY's net fees and service income rose last year and helped increase non-interest income.
NIM edged higher to 3.81% in 2018 from 3.74% in 2017.
The bank set aside an impairment charge for credit loss of 26.2 billion baht last year, compared with 23 billion a year earlier.
NPL ratio was 2.06% at the end of 2018, with a coverage ratio of 165.8%.
KBANK shares closed yesterday on the SET at 183 baht, down 1.50 baht, in trade worth 3.87 billion baht.
BAY shares closed at 37.25 baht, unchanged, in trade worth 4.6 million baht.
