KTB trims NPL rate to 2.7% this year

Krungthai Bank (KTB) has exercised careful asset management, enabling the state-owned bank to reduce its nonperforming loans (NPLs) excluding government-assisted contracts from 4.

- NUNTAWUN POLKUAMDEE

4% of the portfolio in 2020 to just 2. 7% in the first nine months of this year, say executives.In comparison, peer banks recorded more moderate improvements, with NPLs stabilising around 3.1-3.4% for the same period, said Tawatchai Cheevanon, chief product and business solutions officer.

KTB reduced its NPL ratio to levels comparable with leading peers, reflecting strong risk management and operational stability he said.

As of Nov 25, KTB's market capitalisation was 381 billion baht.

The bank contributed to the Thai economy and demonstrated robust financial performance over the past five years, returning more than 246 billion baht to society and the economy, including 124 billion to the Finance Ministry, its major shareholder, said Mr Tawatchai.

KTB also contributed 122 billion baht to the government through dividends, taxes, and Financial Institutions Development Fund fees, maintaining a balanced and sustainable distribution aligned with its financial performance.