Eleven listed banks posted combined net profit growth of 4.5% in 2016, led by KKP

The combined net profit for 11 SETlisted banks rose 4.5% last year as most small and medium-sized lenders enjoyed double-digit growth.

The 11 banks posted an unaudited net profit of 207 billion baht for 2016, compared with 198 billion a year earlier, according to their filings with the Stock Exchange of Thailand.

Kiatnakin Bank (KKP) outperformed its industry peers. The bank’s consolidated net profit soared 67.2% last year to 5.55 billion baht, largely due to a 28% decline in loanloss provisions to 2.31 billion baht.

KKP’s gross non-performing loans (NPLs) fell to 5.6% of outstanding loans at the end of last year from 5.8% the year before.

Land and Houses Financial Group Plc (LH Bank) was the second-best performer, with a 63.3% surge in 2016 net profit to 2.7 billion baht.

Impairment charges in 2016 fell by 5.9% to 1.03 billion baht, while gross NPL ratio edged to 1.76% from 1.89% in 2015.

Tisco Financial Group, the parent of Tisco Bank, delivered a 17.9% rise in net profit to 5.01 billion baht as loan-loss provisions set aside last year fell by 24.8% to 3.97 billion.

Tisco’s gross NPL ratio fell to 2.54% at the end of 2016 from 3.23% a year earlier.

Thanachart Bank (TBank) saw yearly net profit rise by 15.7% to 12.4 billion baht as loan-loss provisions dropped by 27.3% to 6.25 billion.

The bank’s NPLs also dipped to 2.29% of outstanding loans at the end of last year from 2.84% at the end of 2015.

Among the four largest lenders by assets, Krungthai Bank (KTB) performed the best last year in relative terms. Net profit for the country’s second-largest bank reached 32.3 billion baht, up 13.3% from 2015.

The higher earnings came despite a 9.5% rise in impairment charges to 33.4 billion baht. KTB had a gross NPL ratio of 3.97% at the end of last year, up from 3.2% at the end of 2015.

At Bangkok Bank (BBL), net profit fell by 7% to 31.8 billion baht in 2016 as the bank set aside a 6.8% higher loan-loss provision of 15.7 billion. The bank’s gross NPLs still rose to 3.2% of its total lending at the end of last year from 2.8% at the end of 2015.

CIMB Thai Bank (CIMBT) was the only bank to report a net loss (of 629 million baht) for 2016 as loan-loss reserves rose 66.6% to 6.28 billion to cushion against an NPL upsurge. The bank’s gross NPL ratio jumped to 6.1% at the end of last year from 3.1% year-on-year.