Krung Thai Bank PCL posted a year-over-year decline in net profit for the year ended Dec. 31, 2017.
Net profit attributable to equity holders of the bank fell to 22.45 billion Thai baht for 2017, or 1.61 baht per basic share, from 32.30 billion baht, or 2.31 baht per basic share, in 2016.
The S&P Capital IQ consensus mean estimate for normalized EPS was 1.76 baht, and the estimate for GAAP EPS was 1.78 baht.
The Thai lender said Jan. 22 that net interest income declined to 85.78 billion baht from 86.97 billion baht in the prior year, primarily due to the impact of the lending rate cut on the minimum retail rate at 0.50% in May 2017.
Net fees and service income rose year over year to 24.02 billion baht from 22.04 billion baht, which the bank attributed to the growth of fees from the ATM card business, electronic banking service fees and bancassurance.
The bank said the net interest margin based on earning assets declined to 3.23% for 2017 from 3.30% in 2016.
Total operating income decreased to 123.15 billion baht from 124.69 billion baht in 2016.
Meanwhile, impairment losses of loans and debt securities rose to 44.83 billion baht from 33.43 billion baht. Krung Thai Bank said it raised provisions to create a buffer for increased nonperforming loans, to maintain its coverage ratio and to prepare for new accounting standards known as IFRS9. The new standards require banks to make provisions for expected losses in the future, rather than losses they have already had.
The bank's gross NPLs ratio was 4.19% at 2017-end, up from 3.97% at Dec. 31, 2016.
As of Jan. 19, US$1 was equivalent to 31.85 Thai baht.