Krungsri posts 9-month 2018 net profit of 18.7 billion baht, up 6.7% from 2017

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Mr. Noriaki Goto

Krungsri (Bank of Ayudhya PCL and its business units) announced a net profit of 18.7 billion baht for the first nine months of 2018, an increase of 6.7% over the same period of 2017. The solid performance was attributed to higher net interest income, supported by strong loan growth, and higher non-interest income as well as effective expense management.

For the first nine month of 2018, loans increased 7.5% from December 2017, mainly driven by broad-based retail lending, Japanese and Multinational Corporate (JPC/MNC), and SME segments. Meanwhile, the coverage ratio improved to 162.1%, the highest level since Asian financial crisis.

Key highlights of Krungsri’s consolidated 9-month 2018 results:
  • Net Profit: Recorded at 18.7 billion baht, representing a 6.7% increase over the same period of 2017.
  • Loan Growth: Increased by 7.5%, or 116.5 billion baht from December 2017. The retail segment was the key driver with a robust growth of 9.7%, underscored by a broad-based expansion in auto hire purchase, mortgage, credit cards and personal loan businesses. Concurrently, the JPC/MNC and SME loans grew by 14.6% and 10.2% respectively.
  • Deposit Growth: Increased by 4.3%, or 57.4 billion baht from December 2017.
  • Net Interest Margin (NIM): Recorded at 3.81%, compared to 3.82% in the same period of 2017.
  • Non-Interest Income: Increased by 9.4%, or 2.2 billion baht from the same period of 2017, mainly driven by an increase in net fees and service income, gains on trading and foreign exchange transactions, and bad debt recoveries.
  • Cost to Income Ratio: Recorded at 46.7%, improved from 47.4% in the same period of 2017.
  • Non-Performing Loans (NPLs): Recorded at 2.12%.
  • Coverage Ratio: Improved to 162.1%.
  • Capital Adequacy Ratio: Remained strong at 15.50%.

Krungsri President and Chief Executive Officer Mr. Noriaki Goto said, “Krungsri’s overall financial results in the first nine months of 2018 are quite satisfactory with strong performance in loan growth, net interest margin and coverage ratio. Our asset quality remains strong with NPL ratio at 2.12%, while our coverage ratio improved to 162.1%, the highest level since Asian financial crisis. The solid performance reflects our competitive strength and prudent execution capacities in reaping benefits from favourable market conditions.”

Commenting on the overall business outlook, Mr. Goto said, “As for the outlook for the remainder of the year, barring an escalation in trade protectionism and its potential impacts, the Thai economy is projected to sustain economic growth momentum supported by the strengthening global economy, the stronger contribution from government consumption and investment, the more pronounced recovery in private investment, and the improvement of overall income conditions. Given sustained improvements in the business environment, together with an expected seasonal rise of business for both retail and commercial lending in the fourth quarter, Krungsri expects the 2018 loan growth performance to be in the range of 8-10%.”

As of 30 September 2018, Krungsri, Thailand’s fifth largest bank in terms of assets, loans and deposits, and one of Thailand’s five Domestic Systemically Important Banks (D-SIBs), reported 1.7 trillion baht in loans, 1.4 trillion baht in deposits, and 2.1 trillion baht in total assets. The Bank’s capital was strong at 231.77 billion baht, equivalent to 15.50% of risk-weighted assets, with 11.78% in common equity tier 1 capital.


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