Bangkok, Krung Thai Bank's operating results for 2023 net profit 36,616 million baht, an increase of 8.7%, increased income. Credit expands cautiously Maintain high reserves. Supporting economic challenges Mr. Phayong Sriwanich, President Krung Thai Bank revealed that the Thai economy in 2023 will gradually continue to recover. But it is still not fully developed in the K-shaped economy, with the tourism sector improving. It is the main engine in driving economic activities to return to normal. This has a positive effect on employment and household consumption. However, the export sector is affected by the global economy changing into a slowdown. This has affected private investment to expand lower than expected. Meanwhile, public investment has been affected by lower than normal disbursements. This is because the annual budget is still being prepared. In addition, the Thai economy is still facing a policy transition towards normalcy, which is evident from the policy interest rate that has increased. Risk f rom geopolitical conflicts and climate change In addition, the household sector still has a high debt burden, both within and outside the system. Small entrepreneurs Including vulnerable groups and people with low incomes, recovery is slow. The bank therefore conducts business with caution. Closely manage asset quality By maintaining a high level of Coverage Ratio to accommodate economic uncertainty. Recovering under reduced capacity and giving importance to taking care of and helping all customer groups to adapt. and solve the debt problem sustainably In 2023, the Bank and its subsidiaries had a net profit attributable to the Bank of 36,616 million baht, an increase of 8.7 percent as a result of operations according to the strategy. that focuses on bringing financial innovation to create value for customers, with total operating income expanding 19.2 percent from careful loan growth in the group that is in line with the bank's strategy. To maintain a balance between risk and return Loans in this group grew slightly by 1.5 percent, although total loans decreased by 0.6 percent from government loans. and the expansion of non-interest income which is in accordance with market conditions. The Bank continues to place importance on investing in IT to develop products and services to better meet the needs of all customer groups. Expand digital banking To receive industry growth and changes in technology and innovation in the future. However, efficient overall cost management resulted in the Cost to Income ratio being 41.6 percent, decreased from 43.7 percent last year. by setting additional reserves To maintain a high level of Coverage ratio at 181.2 percent to accommodate economic uncertainty. including carefully considering risks in every dimension If reserves adjusted during the year (one-time adjustment) are included, the Bank's Coverage ratio is approximately 190 percent, compared to 179.7 percent last year. In addition, in the fourth quarter, the Bank set reserves at a level that Appropriate for one large custo mer and related business group that has a trend of deteriorating credit quality and will continue to closely monitor the situation. Ready to continuously manage asset quality carefully, causing NPLs Ratio to drop to 3.08 percent as of December 31, 2023. The Bank (bank only financial statements) has Tier 1 capital of 17.64 percent and total capital of 20.85 percent of weighted assets. according to risk which is at a strong level when compared to the BoT's criteria and has sufficient liquidity by maintaining the Liquidity Coverage ratio (LCR) continuously. Higher than the criteria set by the BoT. Performance for the 4th quarter of 2023 compared to the 4th quarter of 2022, the Bank and its subsidiaries had a net profit attributable to the Bank of 6,111 million baht, a decrease of 24.6 percent. The Bank set up additional reserves in order to maintain a high coverage ratio at 181.2 percent according to the principle of caution Including the provision of appropriate levels for one large customer and related busine ss groups. Total income from operations expanded 14.3 percent, both from careful loan growth in the group that is in line with the bank's strategy. To maintain a balance between risk and return, efficient overall cost management resulted in a Cost to Income ratio of 44.8 percent, a decrease of 0.5 percent from the same period last year. In the future, from the development of modern financial services on digital channels continuously Give importance to thorough and comprehensive access to financial services. Both in terms of area and income level. As a result, the bank's platform has continued to increase in number of users. The Paotang application has 40 million users, Krungthai NEXT 17.8 million and the Tangngen app 2 million. For 2024, Krung Thai Bank aims to drive 'Innovation creates value. Answer customer needs towards sustainability' such as using AI in work To build the bank's competitive potential and business growth opportunities in the future. Including giving importance to solving the country's ho usehold debt problem. Continuously assist customers in solving debt problems. both general measures and specific measures Especially taking care of and helping vulnerable customers. that income has not yet recovered continuously To be able to support oneself and able to accept economic changes Ready to give importance to responsible and fair lending. Promote access to formal finance and do not encourage them to take on excessive debt According to the guidelines for solving sustainable debt or Responsible Lending of the Bank of Thailand. Covers debt restructuring Helping groups that are chronically in debt and vulnerable to quickly pay off their debts. Including providing knowledge to promote financial discipline, including saving, investing, and protecting against financial dangers. To continue building strong immunity and financial stability. Source: Thai News Agency