Krungsri profit soars for first 9 months

23-Oct-2021 Intellasia | BangkokPost | 5:02 AM Print This Post

Bank of Ayudhya (BAY), marketed under the brand Krungsri, has reported a net profit of 27.41 billion baht for the first nine months of 2021, an increase of 39.5 percent year-on-year.

According to Krungsri’s consolidated performance for the first nine months of 2021, normalised net profit contracted by 2.2 percent or 431 million baht from the same period of 2020, mainly due to lowered net interest income as a result of multiple lending rate cuts to lessen customers’ debt burden and support the economic recovery, together with interest rate ceiling reductions for consumer finance loans.

Incorporating an extraordinary gain on investments from the sales of shares in Ngern Tid Lor Pcl (TIDLOR) in the second quarter, the net profit was recorded at 27.41 billion baht, an increase of 39.5 percent year-on-year.

Total loans outstanding increased by 1.2%, or by 21.29 billion baht from December 2020, driven by SME and corporate loans which grew by 4.4 percent and 4.2%, respectively.

Net interest margin moderated to 3.23 percent from 3.63 percent registered in the first nine months of last year, reflecting multiple lending rate reductions and interest rate ceiling reductions for consumer finance loans.

Non-interest income significantly increased by 12.10 billion baht, or 50.5%, from over the same period last year, mainly driven by the recognition of gains on investments from the sales of shares in TIDLOR.

Non-performing loan (NPL) ratio stood at 2.27 percent as of the end of September.

Following the bank vigilantly and prudently maintaining a conservative level of provision to cushion against potential Covid-induced uncertainties, coverage ratio improved to 177.5 percent at the end of September.

“The growth in commercial lending portfolios resonated Krungsri’s commitments and endeavours to support customers through various relief programmes, among others liquidity support, soft loans, rehabilitation and recovery loans in sustaining recovery momentum,” Krungsri president and chief executive Seiichiro Akita said.

He added that despite heightening uncertainties surrounding economic conditions, significant progress on vaccinations and the earlier-than-expected relaxation of the containment measures at the beginning of the fourth quarter, together with the government’s stimulus measures, would help restore consumer and business confidence while boosting loan demand for the final quarter.

Krungsri would therefore maintain the loan growth guidance, albeit at the lower end of the 3 5 percent target range for the year.

https://www.bangkokpost.com/business/2202151/krungsri-profit-soars-for-first-9-months

 

Category: Thailand

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