Krungthai Bank Public Company Limited (KTB) is expected to book 1,635 million baht from AQ Estate Public Company Limited (AQ) into its 3Q21 financial statement, which would boost the bank’s performance in 3Q tremendously.
On July 29, 2021, AQ published a report of the utilization of capital increase from ordinary shares to private placement as approval by the Extraordinary General Meeting of Shareholders on June 30, 2017, indicating a utilization of 1,635.74 million baht as a payment in accordance with judgment of KTB.
The statement did not mention the disagreement with KTB that led to the payment of 1,635 million baht, but there is a high possibility that the payment could be from the allegation between the two companies and sale of land auction of Golden Technology Industrial Park Co., Ltd., which KTB used a civil court judgment to request payment of all debts and Krung Thai Bank has recorded the whole amount as interest income.
KTB reported a net profit of 6,011 million baht in 2Q21, increased 60.06% compared to a net profit of 3,755 million baht in 2Q20.
KTB’s pre-provision profit declined 17.3% YoY, due to a decrease in total operating income from the lowered net interest income as the interest income from loan in relation to partial payment from the auction of mortgaged guarantee assets of 2Q20 together with series of interest rate cuts during 2020, though partly offset by the better cost of fund management and loan surge. Other operating expenses were strictly managed in the slowing economy.
KTB had set aside the lower expected credit losses of 45.0% YoY while considering the high level of coverage ratio given the staggering economy of high uncertainties.
Consequently, coverage ratio as at June 30, 2021stood at160.7%, increased from 147.3%, as at December 31, 2020.The NPLs Ratio-Gross decreased to 3.54% from 3.81% as at December 31, 2020.