Kiatnakin Phatra Financial Group (KKP) announces business directions for 2022 with the aim of becoming a financial institution with excellent performance. Banking business is set to grow loan portfolio by 12 percent, especially auto hire purchase loans and consumer loans, while capital markets business will expand wealth management services to attract the mass affluent through KKP Edge and penetrate digital financial services through Dime, KKP's newly established fintech. Operating results in 2021 exceeded target with a profit growth of 23 percent and comprehensive income growth of 31 percent
Mr. Aphinant Klewpatinond, Chief Executive Officer, Kiatnakin Phatra Financial Group, revealed that in 2022 KKP will continue to pursue excellence in performance. It will focus on strengthening and developing core businesses, including commercial banking and capital markets, to diversify income sources and sustain business opportunities during the COVID-19 pandemic. Targets set for some the core businesses in 2022 are as follows:
Loan Business: To grow loan portfolio by 12 percent, especially auto hire purchase loans, consumer loans, and bancassurance associated with credits. In addition, KKP will rethink branch layouts and services to meet the needs of customers in the digital age.
Wealth Management: To leverage existing platforms, products, and services developed over the past year, such as Mandate global investment service and KKP-SGAA flagship fund. Moreover, KKP will expand its mass affluent customer base through KKP Edge that integrates digital technologies and processes to provide more inclusive access to investment products offered by KKP with a lower investment threshold.
Digital Financial Services: To leverage Thailand's digital infrastructure to make services more accessible to retail customers through the Dime platform, as well as continually developing the KKP Mobile Application to meet all financial needs of customers in the digital age.
"KKP was able to deliver satisfactory performance in 2021. Bank loans grew by 16.5 percent, while the overall situation of customers affected by COVID-19 has improved. Capital markets segment made record profits from securities brokerage business which held the largest market share of 14 percent. Wealth management increased assets under advice (AUA) to THB 734 billion, while investment banking generated considerable revenue from large transaction, such as from IPOs of PTTOR and TIDLOR.
With respect to further details on commercial banking, overall, bank loans grew considerably, especially collateralized retail loans including auto hire purchase loans (up by more than 20 percent), home loans (up by 40 percent), and corporate loans (up by 30 percent). We will continue to focus on managing the existing asset portfolio while offering new loans in the quality segment. This will be conducted in parallel with assistance to customers affected by COVID-19 through appropriate relief programs and maintaining of sufficient allowance for expected credit losses." said Mr. Aphinant.
Mr. Preecha Techarungchaikul, Head of Finance and Budgeting, Kiatnakin Phatra Bank Public Company Limited, commented on financial information, "KKP had a net profit of THB 6,318 million, up by 23.3 percent from 2020, while the comprehensive income totaled 7,069 million, or 30.5 percent increase YOY. Net profit from the capital market businesses was THB 1,817 million, while the comprehensive income from the capital market businesses totaled THB 2,765 million. Total allowance for expected credit losses in 2021 remained high compared to 2020 with an NPL coverage ratio of 175.1 percent. The bank also saw an increase in both net interest and non-interest incomes. Net interest income amounted to THB 15,701 million, up by 7.0 percent, while non-interest income was THB 8,545 million, up by 30.4 percent from 2020. The bank had a BIS ratio of 17.33 percent, which was calculated according to the Basel III rules and included profits up to the end of 2021, and Common Equity Tier 1 of 13.55 percent."