Ms. Kattiya Indaravijaya, Chief Executive Officer of KASIKORNBANK, said the Thai economic recovery was challenged somewhat in the first quarter of 2022. While exports, government spending and stimulus measures helped support the overall economy, both private consumption and investment were subdued amid concerns about the COVID-19 outbreak and rising inflation, oil prices and production costs. The Thai economic growth outlook will remain uncertain due to the prolonged COVID-19 situation and the Russia-Ukraine conflict which continue to impact energy prices and global economy.
Operating performance for the first quarter of 2022 compared with the first quarter of 2021,
KBank and its subsidiaries reported net profit of Baht 11,211 Million, an increase of Baht 584 Million or 5.50% over the same period of 2021 mainly due to an increase of net interest income by Baht 3,618 Million or 12.86% from interest income from loans to customers according to loans growth, mainly due to new lending in line with the Bank's business direction to customers with potential and the Bank's relief measures to inject liquidity for customers so that they could resume normal business operations. In addition, there are still some customers under the Bank's relief measures covering moratorium on principal and interest payments that the Bank still continuously manage accrued interest. While non - interest income decreased by Baht 3,032 Million or 25.49%, mainly due to the mark to market of financial assets according to market condition. Other operating expenses increased by Baht 859 Million or 5.20%, mainly due to IT related expenses in order to support customers' needs more efficiently and marketing expenses. Moreover, KBank and its subsidiaries set aside higher expected credit loss from the same period of 2021 by Baht 686 Million or 7.93% according to loans growth, economic that remains uncertain from COVID-19 situation and global economic outlook.
Operating performance for the first quarter of 2022 compared with the fourth quarter of 2021,
KBank and its subsidiaries reported net profit for the first quarter of 2022 amounting to Baht 11,211 Million, an increase from the preceding quarter of Baht 1,310 Million or 13.23%. Net interest income increased by Baht 951 Million or 3.09% mainly due to interest income from loans to customers according to loans growth. NIM stood at 3.19%, while non - interest income decreased by Baht 2,861 Million or 24.40% mainly due to the mark to market of financial assets according to market condition and decrease in net premiums earned - net. Other operating expenses decreased by Baht 3,088 Million or 15.08% due to activities collaborated with business partners and marketing expenses due to seasonality in the previous quarter, resulting in the cost to income ratio that stood at 42.82% in this quarter. Moreover, KBank and its subsidiaries set aside expected credit loss that was approximate to the preceding quarter with continuous prudent consideration on factors amid the economic growth that remains uncertain from COVID-19 situation and global economic outlook. Coverage ratio as of 31 March 2022 stood at 158.33% that was suitable level and in line with situation happened.
As of 31 March 2022, KBank and its subsidiaries' total assets were Baht 4,133,248 Million, an increase of Baht 29,849 Million or 0.73% over the end of 2021. The majority came from loans growth. As of 31 March 2022, NPL gross to total loans stood at 3.78%, while at the end of 2021 this stood at 3.76%. The Bank has closely monitored and assured credit quality for affected customers. In addition, as of 31 March 2022, KASIKORNBANK FINANCIAL CONGLOMERATE's Capital Adequacy Ratio (CAR) according to the Basel III Accord was 18.34%, with a Tier-1 Capital ratio of 16.35%.