Krungthai Bank annual profit jumps 27%

Krungthai Bank annual profit jumps 27%

A Krungthai Bank logo is seen at a branch in Bangkok. The state bank Krungthai Bank reported a 27% jump in annual profit to 28.5 billion baht on Monday. (Bangkok Post file photo)
A Krungthai Bank logo is seen at a branch in Bangkok. The state bank Krungthai Bank reported a 27% jump in annual profit to 28.5 billion baht on Monday. (Bangkok Post file photo)

Krungthai Bank reported a 27% jump in annual profit on Monday due to loan growth and smaller provisions to cover bad loans.

The fourth-largest lender said its 2018 net profit totalled 28.5 billion baht, but that missed an average estimate of 29.4 billion baht by 21 analysts in a Refinitiv poll.

The state-owned lender said provisions on bad loans fell 41.6% to 26.2 billion baht.

Loans rose 4.4% from a year earlier as the bank increased lending to individual customers and state-owned companies.

The economy is slowing, with the government forecasting growth of at least 3.8% this year after it estimated 4% growth in 2018.

Krungthai Bank's earnings were pressured by a 10.8% drop in fees after an industry-wide waiver on digital transaction fees, while net interest income fell 3.7%.

KTB shares rose 1.02%, or 0.20 baht, to 19.80 baht in trade worth 237.9 million baht on the Stock Exchange of Thailand on Monday. 

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