Banking Group’s performance For the year ended December 31, 2021, there was a net profit of 2,440.6 million baht, an increase of 1,150 million baht or 89.1% when comparing the net profit of the same period of 2020, mainly due to better cost control. This resulted in an 8.1% drop in operating expenses and a 25.7% drop in expected credit losses, while operating income fell 3.9%.
operating income For the year ended December 31, 2021, the amount was 14,347.4 million baht, a decrease of 579.7 million baht or 3.9% when compared to the same period of 2020 due to a decrease in net interest income of 988.5 million baht or 9.0% due to The decrease in interest income from loans and hire purchase business was due to a net decrease in loan growth and an increase in net fee and service income of 337.6 million baht or 26.9%, mainly due to an increase. of fee income from insurance brokerage and unit trusts Other operating income increased by Baht 71.2 million, or 2.6%, mainly due to an increase in net profit from financial instruments measured at fair value through profit or loss.
Operating expenses for the year ended Dec. 31, 2021, compared to the same period of 2020, decreased by 723.3 million baht or 8.1% due to management optimization to better control expenses. As a result, the ratio of operating expenses to operating income for the year ended Dec. 31, 2021 was 57.0%, an improvement compared to the same period of 2020 at 59.6%.
The ratio of net interest income to average assets (Net Interest Margin (NIM)) for 2021 was 3.1%, down from 3.2% in the same period of 2020, due to a decrease in interest income from loans and hire purchase businesses.
As of December 31, 2021, loans net of deferred income (Including loans secured by other banks and loans to financial institutions) of the Bank Group stood at 211.9 billion baht, a decrease of 6.6% compared to loans as of December 31, 2020. deposit (Including bills of exchange, debentures and certain types of financial products) amounted to 233.1 billion baht, a decrease of 7.1% from the end of 2020 at 250.9 billion baht. The Group’s Modified Loan to Deposit Ratio increased to 90.9% from 90.5% as of December 31, 2020
Non-performing loans (NPLs) stood at 7.9 billion baht, NPL ratio. to total loans was 3.7%, a drop compared to 4.6% as of December 31, 2020, mainly due to sales of non-performing loans in 2021, effective risk management. Improving asset quality management and debt collection processes
The expected credit loss allowance for non-performing loans as of December 31, 2021 was 117.5%, up from 93.3% on December 31, 2020. The Group’s expected credit loss is 8.3 billion baht, of which 1.5 billion baht is surplus reserves according to the Bank of Thailand’s criteria.
The group’s total capital funds as of December 31, 2021 amounted to 54.4 billion baht, representing a total capital adequacy ratio of 22.4%, a Tier 1 capital ratio of 16.3%.
