Krungthai Bank announced its Q2/2014 performance that the Bank earned net profit in amount of 7,540 million Baht increased 15.75% from the same quarter of the previous year reflecting continuous growth of performance. In the first half of year, the Bank had loans amounting to 1,810,053 million Baht, increased 5.78% which was derived from all group of customers.
Mr. Vorapak Tanyawong, President of Krungthai Bank stated about comparing the performance of Q2/2014 and Q2/2013 that the Bank has grown continually by its core business. In this regard, the Bank earned net interest income in amount of 17,525 million Baht increased 11.60% resulted from credit expansion and net interest margin (earning assets) as well as non-interest income in amount of 7,218 million Baht increased 24.71%. Thus, the Bank earned profit from operations before provision and tax in amount of 14,447 million Baht, increased 17.26% and net profit in amount of 7,540 million Baht, increased 15.75%.
In the first half of 2014, the Bank and the subsidiaries earned profit in amount of 15,837 million Baht increased 4.69% from the same period last year. The Bank has amended the policy of allowance for doubtful account by increasing monthly allowance from 500 million Baht to 700 million Baht. Regarding to an excellent growth of profit from operations, the Bank set special allowance in amount of 3,000 million Baht causing the total provision of the first-half this year equalized 7,141 million Baht, increased 23.87%. Therefore, the coverage ratio increased from 109.47% at the end-of-2013 to 113.06% to appropriate the enlarged credit number and to strengthen the Bank business extension.
On 30 June 2014, the Bank had allowance for granting credit in amount of 1,810,053 million Baht increased from the end of 2013 in amount of 98,963 million Baht or 5.78%. Moreover, the Bank had total deposit in amount of 1,867,456 million Baht decreased 16,325 million Baht or 0.87% as well as the NPLs in amount of 62,043 million Baht increased 5,585 million Baht or 9.89% which arising from the small SME customers and some retail customers depending on the slowdown of internal economic of Thailand including a higher household debt. However, the Bank has policy to monitor closely.
The Bank also achieved accomplishment as the first Thai commercial bank that offered the foreign investors with the subordinate bond complying under the Basel lll regulations in amount of 700 million USD; hence, causing the tier 2 capital of the Bank to increase. Therefore, when accumulated with net profit of the first half year, the total capital ratio of the Bank shall equivalent to 15.58% which deemed as the level to support strength and enabled the Bank to expand business in relation to the determined plan.
Corporate Branding and Communications Department
July 21, 2014