Krungthai Bank grew according to plan in Q3/2024 with net profit of 11,107 million baht, an increase of 8.0 percent, resulting in the first 9 months of this year at 33,381 million baht, an increase of 9.4 percent, emphasizing balanced portfolio management, maintaining the level of reserves to non-performing loans (Coverage Ratio) to support the economic recovery with low and high uncertainty.
Mr. Payon Srivanich, President of Krungthai Bank, revealed that the Thai economy in 2024 is expected to continue to expand, but will remain at a low level and will not be widespread in the form of a K-shaped Economy, with the recovery of the tourism sector as the main engine and supported by government policies, including economic stimulus measures, accelerated budget disbursements, reduced burdens of expenses, and increased income for households. However, the manufacturing and export sectors are facing challenges from developing labor productivity to maintain competitiveness, the slowdown in the global economy amid ge
opolitical conflicts, and the volatility of the baht, especially SME businesses, which are mostly still fragile and lack flexibility in adapting, resulting in a slow recovery. The household sector is still pressured by high debt burdens and insufficient income to cover expenses. In addition, the Thai economy has been affected by climate change, which has led to flooding in some areas.
The economic picture has an impact on Krungthai’s operations in Q3/2024. When compared to Q2/2024, the Bank and its subsidiaries had a net profit attributable to the Bank of 11,107 million baht, an increase of 8.0 percent compared to the same period last year. The Bank focuses on sustainable and quality growth, conducts business cautiously and prudently, and places importance on asset quality. It maintains a high Coverage ratio of 184.1 percent, up from 181.3 percent as of December 31, 2023. In addition, there were 98,301 million baht of non-performing loans, down 1.1 percent from the end of 2023, with an NPLs Ratio of 3.14 per
cent.
The operating results for the first 9 months of 2024 compared to the same period of the previous year showed a net profit attributable to the Bank of 33,381 million baht, an increase of 9.4 percent, with the Bank and its subsidiaries setting aside provisions for expected credit losses at an appropriate level close to the same period of the previous year to accommodate economic uncertainty.
As of September 30, 2024, the Bank (Bank-only financial statements) had Tier 1 capital of 18.95 percent of risk-weighted assets and total capital of 20.97 percent of risk-weighted assets, which is at a strong level compared to the criteria of the Bank of Thailand (BOT). It also has sufficient liquidity by maintaining the Liquidity Coverage ratio (LCR) continuously, higher than the criteria set by the BOT. The Bank also places importance on closely assisting all customer groups, especially vulnerable groups, to be able to adapt and recover sustainably.
Source: Thai News Agency
