KBANK’s 2Q Profit Plunges 78% to ฿2.1Bn as ECL Jumps 167% amid COVID-19 Outbreak
KBANK’s 2Q Profit Plunges 78% to ฿2.1Bn as ECL Jumps 167% to amid COVID-19 Outbreak.
KBANK’s 2Q Profit Plunges 78% to ฿2.1Bn as ECL Jumps 167% to amid COVID-19 Outbreak.
20 ก.ค. 2563

Kasikornbank Public Company Limited (KBANK) has reported its consolidated financial statement through the Stock Exchange of Thailand as follows;

KBANK reported a drop of 78% in 2Q20 net profit to 2,175 million baht from a net profit of 9,928 million baht in 2Q19, mainly due to an increase in expected credit loss (ECL) and impairment loss on loans and debt securities that increased from 7,547 million baht in 1Q19 to 20,192 million baht in 2Q20, increased 167.5% YoY.
NPL gross to total loans as of 30 June 2020 stood at 3.92%, while at the end of 2019 this stood at 3.65%.
 
KBANK stated that Thai economic activity is expected to see the deepest contraction in the second quarter of 2020, due to negative impacts of lockdown measures implemented both in Thailand and other countries amid concerns over the COVID-19 pandemic. The dampened situation has severely hurt the tourism and export sectors, as well as domestic spending. Consequently, the Bank of Thailand decided to cut its policy rate to a record low of 0.50%, implemented financial and credit measures while also issuing guidelines to support customers of financial institutions.
 
Since 1 January 2020 KBANK initially adopted TFRS related to financial instruments (included TFRS 9) which affect classification, measurement of financial assets and financial liabilities, impairment of financial assets and hedge accounting. The impact from first-time adoption are adjusted to retained earnings as of 1 January 2020. In addition, the financial statements are prepared in accordance with the Bank of Thailand notification which some items are not comparable with the financial statements and key financial ratios of the previous period.