Kasikornbank 1Q15 earnings jump 4% YoY to THB12.4b

Thanks to strong fee and trading income.

Thailand-based Kasikornbank's earnings were THB12.4b (+4% YoY, 24% QoQ) in 1Q15, accounting
for 25% of our full-year forecast.

According to a research note from Maybank Kim Eng, loans grew 1.4% QoQ, in line with deposit growth of 1.5% QoQ. Most items in P/L were in line with Maybank Kim Eng's forecast.

Non-interest income beat Maybank Kim Eng's forecast by 4% due to strong fee income growth (on mutual funds and loan-related fees) and dividend income (+63% YoY) and Forex gain (+16%).

Here's more from Maybank Kim Eng:

NII fell 4% QoQ due to lower NIM of 3.67% (3.85% in 4Q14) on the interest rate cut.

On the cost side, OPEX grew 16% YoY and cost-to-income ratio increased to 42.5% from 40% in 1Q14.

Asset quality wise, net NPLs increased by 5.5% to THB38b or 2.46% of total loans.

NPL write-off, special mention loans and restructured loans dropped slightly in 1Q15.

NPL coverage ratio fell insignificantly to 140% in 1Q14.