Banks post modest increase in profits

The banking sector reported a modest increase in profits for the first nine months of 2024, driven by gains in both interest and fee income, while continuing to allocate substantial reserves for loan losses in preparation for heightened uncertainties.
The 10 SET-listed banks and their subsidiaries, posted a combined net profit of 159 billion baht for the first nine months of 2024, reflecting a year-on-year increase of 3.49%. Only Krungthai Bank’s (KTB) operating results have not yet been disclosed.
Kasikornbank (KBank) led the sector with a net profit of 38.1 billion baht for the period, up 15.4% year-on-year.
TMBThanachart Bank (ttb) recorded the highest profit growth, with a 17% increase, reaching 15.9 billion baht over the same period.
However, six banks experienced a year-on-year decline in net profit, with Kiatnakin Phatra Financial Group (KKP) seeing the sharpest drop, with profits falling by 25%.
KBank, Thailand’s third-largest lender by total assets, attributed its improved performance to increased interest and fee-based income, as well as financial support provided to customers.
The bank has introduced several initiatives, including lowering interest rates for loans to support vulnerable customers and those impacted by widespread floods, with the goal of easing their financial burden and helping them recover more quickly, KBank chief executive Kattiya Indaravijaya said in a statement to the Stock Exchange of Thailand.
For the remainder of 2024, while the economy is projected to continue growing, careful attention must be given to the potential challenges posed by floods, fluctuations in the value of the baht, the slowdown in major global economies, geopolitical tensions and the sluggish recovery in domestic spending.
These factors all present risks to Thailand’s economic outlook moving forward, the bank said.
Meanwhile, Arthid Nanthawithaya, chief executive of SCB X, the holding company of Siam Commercial Bank (SCB), reported a net profit of 32.2 billion baht for the first nine months of the year, a 0.9% decline year-on-year.
This drop was primarily attributed to a loss from the sale of its subsidiary, Purple Ventures, in the third quarter, which is a one-time expense related to the Robinhood app.
Additionally, lower investment gains and reduced fee income contributed to the profit decrease.
Looking ahead, SCB will closely monitor the effects of government policies and macroeconomic developments.
Mr Arthid noted that floods in various areas of the country pose short-term recovery risks, while the impact of both current and upcoming cash handout schemes is yet to be seen.
Bank of Ayudhya (Krungsri) reported a net profit of 23.4 billion baht for the first nine months of 2024, a 7% decrease year-on-year, primarily due to an increase in expected credit loss provisions.
As of Sept 30, total loans outstanding stood at 1.92 trillion, representing a decrease of 90.2 billion or 4.5% from 2.01 trillion baht as of the end of December 2023, reflecting subdued business and consumer sentiment along with a conservative lending approach.