Kasikornbank's 4Q13 net interest margin jumps to 3.6%

But net fee income was flat.

According to Maybank Kim Eng, 4Q13 NIM improved to 3.60% vs. 3.52% in 3Q13, thanks to higher asset yields and stable cost of funds. 

Net fee income was flat QoQ, below expectations. Non-interest income fell 6% QoQ led by a 20% decline in net insurance income.

Here's more from Maybank Kim Eng:

Operating expenses are also below our forecast due to the well cost control. The bank set provisions of THB3bn in 4Q13. Total credit cost was 0.85% in 2013, in line with our estimation.

Gross NPLs were flat QoQ at THB33.5b while NPLs ratio dropped to 2.33% vs 2.38% in 3Q13. The coverage ratio improved to 135% in 4Q13 from 133% in 3Q13, which could provide a cushion for the potential economic slowdown.