Krungsri reports first-quarter 2026 earnings of 8.62 billion baht, demonstrating disciplined strategic execution

Bangkok (21 April 2026) – Krungsri (Bank of Ayudhya PCL and its business units) posts 8,618 million baht in net profit for the first quarter of 2026, growing 14.4% year-on-year, thanks to stronger net interest income and continued growth in non‑interest income, partly due to the consolidation of TIDLOR.

Amid seasonal loan repayments and softer underlying demand in the domestic portfolio, total loans contracted by 1.2% quarter-on-quarter for the first quarter of 2026. In contrast, ASEAN operations continued to perform strongly, with loans expanding 2.5% quarter-on-quarter, compensating for domestic weakness.

Highlights of Krungsri’s consolidated first-quarter 2026 performance:

• Net profit: Recorded at 8,618 million baht for 1Q/26, representing an increase of 14.4% or 1,085 million baht from 1Q/25, driven primarily by stronger net interest income and non-interest income. The growth of net interest income reflected improved loan yields from a higher contribution from interest‑earning assets following the consolidation of TIDLOR, together with effective liquidity and funding cost management.
• Loans: Decreased from the end of December 2025 by 1.2%, or 22,805 million baht, primarily reflecting seasonal loan repayments and weaker underlying demand in the domestic portfolio, which contracted by 1.4%. Meanwhile, ASEAN loans continued to exhibit robust momentum, expanding by 2.5% quarter‑on‑quarter, underscoring the benefits of geographic diversification and providing a supportive offset to domestic loans.
• Deposits: Decreased by 1.8%, or 31,773 million baht from the end of December 2025, mainly driven by a reduction in higher‑cost time deposits, which was partially offset by an increase in current and savings accounts (CASA). This improved funding mix reflects the Bank’s proactive liquidity optimization strategy aimed at lowering funding costs and support margin sustainability, amid softer loan demand and a declining interest rate environment.
• Net interest margin (NIM): Recorded at 4.61%, improved from 4.10% in 1Q/25, driven by higher loan yields from an enhanced mix of interest‑earning assets, largely reflecting the consolidation of TIDLOR’s higher‑yield loan portfolio.
• Non-interest income: Increased by 18.4%, or 2,179 million baht from 1Q/25, driven by higher fees and service income from both organic operations and TIDLOR’s contribution, as well as gains on financial instruments measured at fair value through profit or loss (FVTPL), bad‑debt recoveries from the “Clear Debt, Move Forward” program, and gains on investment.
• Cost to income ratio: Improved to 45.2%, compared with 45.7% in 1Q/25, resonating the Bank’s effective cost control as part of strategic execution.
• Non-performing loan (NPL) ratio: Remained manageable at 3.34%. Credit cost in 1Q/26 was at 240 basis points (bps) compared with 211 bps in 1Q/25, while the coverage ratio improved to 132.3%.
• Capital adequacy ratio (Bank only): Recorded at 20.65%, compared with 20.69% at the end of December 2025.

Krungsri President and Chief Executive Officer Mr. Kenichi Yamato, said “Notwithstanding global economic headwinds and domestic structural vulnerabilities—intensified by margin pressure following multiple interest rate cuts—Krungsri Group successfully sustained its performance momentum in the first quarter of 2026, reflecting the continued execution of our strategic priorities. These priorities include a selective quality-growth strategy, enhanced efficiency in asset and liability management, disciplined cost control, and a prudent risk management approach.”

“Looking ahead, Thailand continues to face multiple headwinds, including elevated geopolitical risks, U.S. trade policy uncertainty, constrained fiscal space, and structural challenges such as high household leverage and sector‑specific constraints. Collectively, these factors are expected to weigh on economic momentum for the remainder of the year, with GDP growth projected at 1.5–1.7%,” Mr. Yamato added.

“Against this backdrop of heightened macroeconomic uncertainty—further exacerbated by potential adverse spillovers from recent Middle East conflicts—Krungsri has maintained a prudent risk management stance, reflected in proactive expected credit loss (ECL) provisioning booked in 1Q/26, including additional management overlays.”

As of 31 March 2026, Krungsri, Thailand’s fifth largest bank in terms of assets, loans and deposits, and one of Thailand’s Domestic Systemically Important Banks (D-SIBs), reported 1.91 trillion baht in loans, 1.70 trillion baht in deposits, and 2.61 trillion baht in total assets. Krungsri’s capital (Bank only) was strong at 336.02 billion baht, equivalent to 20.65% of risk-weighted assets, with 16.37% in common equity tier 1 capital.