Five Major Thai Banks Report a Combined Net Profit of THB 138.9 Billion for the Year 2023
In the announcements regarding their financial performance for the fourth quarter, the five commercial banks - TMBThanachart Bank Plc (TTB), CIMB Thai Bank Plc, SCB X Plc, Krungsri (Bank of Ayudhya) Plc, and Kasikornbank Plc - attributed their profitability to increased net interest income and net fees and services, along with highly efficient cost management strategies.
These earnings were driven by increased net interest income and efficient cost management.
SCBX led with a THB 43.5 billion profit, followed by KBank's THB 42.405 billion, Krungsri's THB 32.929 billion, TTB's THB 18.462 billion, and CIMB's THB 1.605 billion.
Despite criticism that high profits stemmed from wide interest rate margins burdening SMEs, banks credited their financial success to strong cost control and higher net interest earnings.
SCBX improved its operating income by 10.8% to THB 171.1 billion, reduced operating expenses, and lowered its cost-to-income ratio to 42%. Despite a slight increase in its NPL ratio to 3.4%, SCBX maintained a solid capital adequacy ratio and a return on equity of 9.3%.
KBank's net profit grew by 18.55% to THB 42.405 billion, with increased net interest income and non-interest income reflecting the gradual economic recovery. Nonetheless, net fees and service income declined by 5.17%.
Krungsri reported a 7.2% increase in its net profit to THB 32.93 billion, driven by growth in commercial and retail loans and robust SME loan expansion.
TTB's net profit reached THB 18.462 billion, and it saw a reduction in its NPL ratio to 2.62%, aligning with its business plan post-merger.
CIMB Thai Group noted a slight 1.3% increase in operating income to THB 13.771.6 billion, with growth in net interest income and other income, although net fee and service income fell by 17.9%.
SCBX led with a THB 43.5 billion profit, followed by KBank's THB 42.405 billion, Krungsri's THB 32.929 billion, TTB's THB 18.462 billion, and CIMB's THB 1.605 billion.
Despite criticism that high profits stemmed from wide interest rate margins burdening SMEs, banks credited their financial success to strong cost control and higher net interest earnings.
SCBX improved its operating income by 10.8% to THB 171.1 billion, reduced operating expenses, and lowered its cost-to-income ratio to 42%. Despite a slight increase in its NPL ratio to 3.4%, SCBX maintained a solid capital adequacy ratio and a return on equity of 9.3%.
KBank's net profit grew by 18.55% to THB 42.405 billion, with increased net interest income and non-interest income reflecting the gradual economic recovery. Nonetheless, net fees and service income declined by 5.17%.
Krungsri reported a 7.2% increase in its net profit to THB 32.93 billion, driven by growth in commercial and retail loans and robust SME loan expansion.
TTB's net profit reached THB 18.462 billion, and it saw a reduction in its NPL ratio to 2.62%, aligning with its business plan post-merger.
CIMB Thai Group noted a slight 1.3% increase in operating income to THB 13.771.6 billion, with growth in net interest income and other income, although net fee and service income fell by 17.9%.
