Operating performance for the first half of 2016 compared with the first half of 2015, KBank and its subsidiaries reported net profit of Baht 19,074 Million, a decrease of Baht 4,806 Million or 20.13% over the same period of 2015 mostly because KBank has set aside higher allowance for impairment loss on loans to reserve for uncertainty from economic slowdown. However, there was Baht 46,981 Million of operating profit before provision expense and income tax expense, an increase of Baht 4,330 Million or 10.15% over the same period of 2015 because net interest income increased by Baht 2,229 Million or 5.29%. NIM stood at 3.57%. Non-interest income also increased by Baht 1,177 Million or 3.69% due to an increase in revenue from capital market products and net fees and service income. Moreover, other operating expenses decreased by Baht 924 Million or 2.95%, resulting in the cost to income ratio that stood at 39.32%.
Operating performance for the second quarter of 2016 compared with the first quarter of 2016, KBank and its subsidiaries reported net profit of Baht 9,428 Million, a slight decrease of Baht 218 Million or 2.27% over the previous quarter because non-interest income decreased by Baht 2,004 Million or 11.42% due mostly to revenue from capital market and money market products. Net interest margin (NIM) stood at 3.49%. Moreover, other operating expenses increased by Baht 854 Million or 5.77%, resulting in the cost to income ratio in this quarter that stood at 41.54%, while KBank has set lower allowance for impairment loss on loans.
Operating performance for the second quarter of 2016 compared with the same quarter of 2015, KBank and its subsidiaries reported net profit of Baht 9,428 Million, a decrease of Baht 2,051 Million or 17.87% over the same quarter of 2015.
As of 30 June 2016, KBank and its subsidiaries' total assets were Baht 2,705,154 Million, rising Baht 149,849 Million or 5.86% over the end of 2015. The majority came from an increase in interbank and money market items – net, investment – net, and loans. NPL gross to total loans stood at 2.89% as of 30 June 2016, while at the end of 2015 this stood at 2.70%. Coverage ratio as of 30 June 2016 stood at 136.21%, while at the end of 2015 this stood at 129.96%. In addition, as of 30 June 2016, KASIKORNBANK FINANCIAL CONGLOMERATE's Capital Adequacy Ratio (CAR) according to the Basel III Accord was 18.12%, with a Tier-1 Capital ratio of 14.69%.