Tag: KTB

  • Thailand Future Fund secures adviser

    Thailand Future Fund secures adviser

    Vorapak Tanyawong, president of KTB, said yesterday that the financial adviser would propose the options for fund mobilisation to the government, with KTB having the nationwide network to distribute fund units to retail customers.

    The capital from selling fund units will be used to finance infrastructure projects, starting with the high-speed-rail project from Bangkok to Nakhon Ratchasima province.

    Separately, KTB yesterday unveiled the KTB PromptPay campaign, which offers prizes worth a total of Bt9 million.

    The campaign will run from July 15 to October 15.

    Songpol Chevapanyaroj, senior executive vice president and head of the bank’s global transaction banking group, said the campaign was part of a strategy to get existing customers to use KTB as their main bank.

    Under the scheme, the bank said fund transfers would be more convenient because there would be no fee if the amount was less than Bt5,000, while the cost of cash management was reduced as well.

    Vorapak said the benefit of being the main bank for customers was the cross-selling of products.

    The bank said it had received more than 300,000 PromptPay pre-registrations since it began accepting them on July 1.

    Official registrations for the scheme, which is designed to enhance e-payments, will be accepted from July 15.

    KTB said it had about 17 million depositors, and it hopes to bring in 8 million more under the campaign.

    Vorapak said the bank’s upcountry customers were more aware of using automated teller machines and digital banking, with transactions at branches declining, including those for retail vendors’ lottery reserves.

    He said retail vendors were migrating to booking lottery tickets via ATMs and KTB’s online channels because they could access reserves from those channels more quickly than they could through the branches.

  • Krung Thai Bank makes profit

    Krung Thai Bank makes profit

    KTB posted 3Q15 earnings of Bt5.3bn, plunging 42% YoY and 37% QoQ. The result was 11% below our forecast but 4% below the Bloomberg consensus. This was attributable to bigger loan-loss provisioning (LLP) than was modeled. KTB set its 3Q15 LLP of Bt10.5bn against our numbers of Bt8.5bn. Pre-provision operating profit was Bt17bn, up 21% YoY but down 1% QoQ. The 9M15 earnings represent 90% of our FY15 earnings projection.

    Results highlights

    Lending was up 0.2% QoQ and 1.6% YTD—in line with our forecast. NIM for the quarter came in at 3.04%, up 3bps QoQ and 19bps, boosted by greater emphasis on the corporate and retail sectors and well managed funding cost from the previous quarter. LLP soared 270% YoY and 39% QoQ to Bt10.5bn (equaling credit cost of 2.1%). Note that the bank received a tax benefit of about Bt300m from troubled debt restructuring and extra LLP for Sahaviriya Steel Industry (SSI) in the quarter. Therefore, its corporate tax rate was down to 15% in 3Q15 from 18% in the same period last year.

    KTB’s NPL/loan ratio rose to 4.03% at end-September from 2.96% three months earlier (from SSI, and the small SME and retail sectors). Likewise, its loan-loss-coverage ratio dipped to 103% in 3Q15 from 125% last quarter. Fee income inched up 41% YoY and 12% QoQ to Bt7.3bn in 3Q15. OPEX was Bt12.2bn, an increase of 19% YoY but down 1% QoQ. KTB’s 3Q15 cost/income ratio was 44.2%, close to last quarter and down from the 45.6% reached in the same period last year.