BANGKOK: State-owned Krung Thai Bank Pcl on Friday reported a 32 percent drop in third-quarter net profit to 5.8 billion baht due to higher provisions and impairment losses. Thailand’s fourth largest lender by assets set aside 9.9 billion baht for impairment loss on loans, up nearly 30 percent from last year, and 7.2 billion baht in provision expense, 30 percent higher than a year ago. Other Thai banks have also booked similar losses and provisions. The bank’s non-performing loans-to-lending ratio was slightly higher than its peers at 4.51 percent, up from 3.97 percent last year, due to a large “corporate client and SME sector,” the bank said.
Interest income declined 1.5 percent from last year to 21 billion baht, due to slow pick-up in loans and a cut in the Minimum Retail Rate to 0.5 percent in May this year, the bank said in a statement. Krung Thai said it reduced operating expenses to 663 million baht, down 5 percent from last year, while fee income rose 3.8 percent to 5.8 billion baht from expanded ATM operations and electronic banking fees. The Bank of Thailand holds a 55 percent stake in Krung Thai.