![KASIKORNBANK announces the first quarter of 2024 net profit of Baht 13,486 Million](/img/files/20240422/iq25923c02a0ff100eda4edda20fe059dc.jpg)
Ms. Kattiya Indaravijaya, Chief Executive Officer of KASIKORNBANK, said in the first quarter of 2024, the Thai economy continued to face limitations in recovery. Although it was supported by the rebound in tourism and merchandise exports, industrial production continued to shrink, as did agricultural production that declined due to the impacts of drought. Meanwhile, domestic spending in both the public and private sectors expanded, albeit at a slower rate. Looking into the remainder of 2024, it is projected that Thailand's economic recovery momentum will be stronger if tourism continues to thrive and there is an additional support from accelerated budgetary disbursements and other measures implemented by the government.
Amidst the challenges of various factors, KBank deploys strategy 3+1 in this year by reinvigorate credit performance under appropriate risk management, scale capital-lite fee income businesses, strengthen and pioneer sales and service models, new revenue creation in medium and long term, and efficient resource management to deliver sustainable value to all stakeholders, including customers, shareholders, employees, regulators and society at large in unpredictable economic environment.
In the first quarter of 2024, KBank and its subsidiaries reported operating profit before expected credit loss and income tax expense of Baht 29,439 million, an increase of 9.93% compared with the same period of last year, mainly due to net operating income growth, effective expense management and productivity improvement. KBank set aside expected credit loss (ECL) in this quarter of Baht 11,684 million in alignment with the consistently prudent approach that ECL was suitable level, reflecting the current situation and support uncertainties of various factors that may affect the domestic economic recovery. As a result, consolidated net profit in this quarter was amounting to Baht 13,486 million.
Net interest income was Baht 38,528 million which net interest margin ratio stood at 3.76% according to market conditions. In addition, net fees and service income was Baht 8,299 million mainly from an increase in fees from fund management, fees from acceptance, aval and guarantee and fees from card business. Total net operating income was Baht 50,152 million, increased 7.68% from the same period last year. Operating expenses was Baht 20,713 million, increased 4.65% from the same quarter last year, mainly due to an increase in various operating expenses in line with an increase in revenue. As a result, cost to income ratio stood at 41.30%, decreased from the same quarter last year, which was at 42.50%.
Operating performance for the first quarter of 2024 compared with the fourth quarter of 2023, KBank and its subsidiaries reported operating profit before expected credit loss and income tax expense was Baht 29,439 million, an increase of 11.57% mainly due to a decrease in operating expenses partly from marketing expenses due to seasonality. In addition, KBank and its subsidiaries continue to manage expenses effectively, although net operating income slightly decreased from gains on investment in financial instruments according to market conditions. Moreover, ECL was Baht 11,684 million with the consistently prudent approach.
As of 31 March 2024, KBank and its subsidiaries' total assets were Baht 4,318,809 million, an increase of Baht 35,253 million or 0.82% over the end of 2023. Most of an increase came from investments in financial instruments based on expectation of interest rate trend. However, net loans decreased according to market conditions. NPL gross to total loans was 3.19% and coverage ratio was 150.35%. In addition, as of 31 March 2024, KASIKORNBANK FINANCIAL CONGLOMERATE's Capital Adequacy Ratio (CAR) according to the Basel III Accord remained strong at 19.37%.