KASIKORNBANKGROUP announces net profit 24,226 MB increased of 20.85%

Mr. Somkiat Sirichatchai, Senior Executive Vice President of KASIKORNBANK, said the Bank and subsidiaries’ operating performance for the year of 2011, the Bank and subsidiaries reported net income of Baht 24,226 Million, a rise of Baht 4,179 Million or 20.85% over the previous year. The major was due to the net of interest income as a result of loan growth and consequence of assets and liabilities management to align with interest rate trend.  Meanwhile, the net interest margin (NIM) stood at 3.75% and non-interest income increased by 19.78%, align with KASIKORNBANKGROUP proactive conglomerated strategies with the customer centricity. The efficiency ratio performed at 47.53% which improved from 2010.

 

KASIKORNBANKGROUP’s assets totaled Baht 1,772,940 Million.  Total loans were Baht 1,210,834 Million, an increase of Baht 133,853 Million or 12.43% over last year as a result of loan growth especially commercial loan and housing loan. The NPL Gross was 2.45% which improved from last year performed at 2.91%, reflecting to effective management of non-performing loans. Total deposits were Baht 1,242,229 Million, an increase of Baht 142,193 Million or 12.93% over last year as a result of increases in time deposits for campaigns to provide greater alternative for the customers.

In the third quarter of 2011, according to the Cabinet’s resolution, the Bank and subsidiaries has disclosed the impact on a reduction in the corporate income tax rate from 30% of taxable profit to 23% in 2012 and 20% in 2013-2014. On 21 December 2011, the Royal Decree was published adopting a reduction in the corporate income tax rate, the Bank and subsidiaries recognized the item of deferred tax in the income statement in the fourth quarter of 2011 in line with International Accounting Standards. However, this is an one-time impact. Since this is the accounting item adjustment, it is not involved with the actual tax payment to the Revenue Department. The Bank and subsidiaries’ business undertaking, profitability and capital fund have not been affected. Therefore, the Bank and subsidiaries will benefit from this reduction in the corporate income tax rate from 2012 onward.