By P.R. Venkat

Kasikornbank PCL's fourth-quarter net profit jumped 51% from a year earlier, mainly supported by higher interest income and lower operating expenses.

The Bangkok-based lender said Thursday that net profit was 13.26 billion baht ($442.7 million), while interest income rose to THB26.60 billion from THB25.57 billion.

Kasikornbank said Covid-19-related credit losses were lower than previously anticipated, as customers were able to repay debt better during the second half of 2020. The Thai bank said it set aside THB43.55 billion for expected credit losses for the whole of 2020.

However, the bank warned that Covid-19-related issues are likely to linger this year.

"For 2021, the Thai economy faces additional downside risks, particularly the new wave of Covid-19. Thus, the path of any potential Thai economic recovery remains highly uncertain, while government expenditure and investment will remain key supportive factors," Kasikornbank said.

Write to P.R. Venkat at venkat.pr@wsj.com

(END) Dow Jones Newswires

01-20-21 2104ET