Banner year for banks despite woes

Banner year for banks despite woes

Three commercial banks enjoyed higher net profits in 2013 thanks to increases in both interest and non-interest revenue.

As well, their fourth-quarter profits remained solid despite political tensions aggravating the already-fragile state of the economy since late October.

Kasikornbank (KBank) posted a 2013 net profit of 41.3 billion baht, up by 17.2% from 2012.

Interest revenue of the country's fourth-largest bank by assets rose by 14.5% last year to 72.8 billion baht, while non-interest revenue increased by 18.2% to 48.2 billion, KBank said in a filing with the Stock Exchange of Thailand (SET) yesterday.

Its net interest margin for the year stood at 3.55%, the statement said without providing a comparative figure.

Lending as of Dec 31 had expanded by 8.46% from 2012 to 1.44 trillion baht.

KBank's non-performing loans (NPLs) fell to 2.11% of total credit at year-end from 2.16% the year before.

The bank set aside normal and additional countercyclical provisions, raising its loan-loss ratio to 135% at the end of 2013 from 132% at the end of 2012.

KBank's fourth-quarter net profit rose by 23.9% year-on-year to 9.53 billion baht.

For Siam Commercial Bank (SCB), the 2013 net profit was 50.2 billion baht, up by 28% from 2012, it said.Interest revenue grew by 7.6% to 73 billion baht and non-interest revenue by 23.6% to 51 billion.

Lending grew by 12.1% from 2012.

The country's third-largest lender by assets last year put aside provisions of 13.6 billion baht, up by 45.2% from 2012.

NPLs were steady at 2.14% of outstanding loans at year-end.

SCB's fourth-quarter net profit increased by 26.3% year-on-year to 11.8 billion baht.

TMB Bank delivered a dramatic increase of 355% in its 2013 net profit to 5.74 billion baht. Chief executive Boontuck Wungcharoen credited the performance to a 22% increase in net interest revenue and a 19% rise in net fee and service revenue.

The country's seventh-largest bank by assets saw its loans expand by 10% last year.

Shares of SCB closed yesterday on the SET at 147.50, up 3.50, in heavy trade worth 1 billion baht.

KBANK closed at 166 baht, up 5.50 baht, in heavy trade trade worth 1.41 billion baht, while TMB closed at 2.12 baht, up 10 satang, in trade worth 785 million baht.

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