Commercial banks posted combined net profit decline for the third quarter of this year, compared with the previous quarter, mainly impacted by higher numbers of new Covid-19 cases and the government's tougher pandemic containment measures.
For the third quarter of 2021, the 10 SET-listed banks and subsidiaries reported a combined net profit of 42.6 billion baht, increasing 43.6% year-on-year. However, they posted a combined net profit decline of 16.8% quarter-on-quarter.
Strong profitability in the third quarter of 2021 on the year-on-year basis was mainly supported by lower loan loss reserves. The lower earnings in the third quarter of this year on a quarterly basis was attributable to the impact of the Covid-19 outbreak.
Kattiya Indaravijaya, chief executive at Kasikornbank (KBank), said in the bank’s statement that the outbreak and the tighter pandemic containment measures in many areas of the country further impacted the Thai economy in the third quarter of 2021.
Domestic economic activity was partially interrupted, while export growth slowed amid a resurgence of Covid-19 cases overseas. However, the economy is likely to recover in the final quarter, helped by the rollout of vaccines, the relaxation of related control measures, and the state’s support measures.
KBank, the country’s second largest bank by total assets, and its units set aside higher expected credit losses of 489 million baht, or 4.53%, in the third quarter this year from the previous quarter. As of Sept 30 this year, its non-performing loan (NPL) gross to total loans stood at 3.85%, compared to 3.93% at the end of 2020.
Krungthai Bank announced net profit of 5.05 billion baht in the third quarter of this year, a fall of 15.9% quarter-on-quarter. The NPL ratio fell to 3.57% in September this year from 3.81% as of December last year. Consolidated pre-provision profit was 15.2 billion, a drop of 8.3%, on a quarter-on-quarter basis.
Siam Commercial Bank and its units reported consolidated net profit of 8.8 billion baht for the third quarter this year, a 0.04% rise from the previous quarter.Internet Explorer Channel Network