18 July 2025
Bangkok (18 July 2025) –
Krungsri (Bank of Ayudhya PCL and its business units) posts 15.83 billion baht in net profit for the first half of 2025, slightly increasing by 0.5% over-year, primarily attributed to lower expected credit loss (ECL) and reduced operating expenses, underlining the year’s priorities, namely, funding cost management and operational efficiency, together with moderating credit costs.
Emphasizing our selective growth execution with moderate growth observed in the corporate segment and a contraction in SME and retail segments, total loan outstanding in 1H/25 decreased by 1.6% from the end of December 2024, which also resonated the industry’s overall credit demand and an increase in debt repayments across both businesses and households.
Highlights of Krungsri’s consolidated first-half 2025 performance:
- Net profit: Recorded at 15,829 million baht for 1H/25, increasing 0.5%, or 77 million baht from 1H/24, due mainly to a decrease in expected credit loss (ECL) and reduced operating expenses, partially offset by a decline in net interest income corresponding to multiple policy rate cuts and loan contraction.
- Loans: Decreased by 1.6% or 29,831 million baht from the end of December 2024, accentuating our selective growth execution, resulting in moderate growth observed in corporate loans at 2.8%. Meanwhile, SME loans and retail loans decreased by 4.0% and 3.9%, respectively, reflecting the Bank’s prudent underwriting approach amidst current economic outlook and associated risks.
- Deposits: Decreased by 1.1% or 19,782 million baht from the end of December 2024, primarily driven by a decline in term deposits in alignment with cost of fund optimization.
- Net interest margin (NIM): Recorded at 4.14% compared with 4.31% in 1H/24, primarily corresponding to multiple policy rate cuts and loan contraction, while being partially offset by lower funding cost.
- Non-interest income: Increased by 6.0%, or 1,334 million baht from 1H/24, mainly due to gains on financial instruments measured at fair value through profit or loss (FVTPL), bad debt recoveries, other operating income, mainly from higher gains on sales of properties for sale, and dividend income, offset by lower net fees and service income.
- Cost to income ratio: Recorded at 44.7% in 1H/25. Krungsri will continue to maintain effective cost management while prioritizing revenue enhancement.
- Non-performing loan (NPL) ratio: Remained manageable at 3.39%. Meanwhile, credit cost in 1H/25 was at 217 basis points. The coverage ratio was recorded at 122.8%.
- Capital adequacy ratio (Bank only): Recorded at 19.57%, compared with 19.38% at the end of December 2024.
Krungsri President and Chief Executive Officer Mr. Kenichi Yamato, said “Notwithstanding heightened economic uncertainty, which continued to weigh on private investment, consumption, and consequently loan demand, Krungsri’s performance momentum was effectively maintained for the first six months of 2025, underscoring the year’s priorities, namely, funding cost management and operational efficiency, together with moderating credit costs.”
“The Thai economy in the second half of 2025 will be marked by continued high uncertainty with weakened growth stemming from US reciprocal tariffs leading to a potential sharp export contraction and risks tilted to the downside. This, plus other headwinds such as slow tourism recovery, high household debt and structural impediments in manufacturing production, could lead to a subpar growth outlook in the second half of 2025 and into 2026. Consequently, for 2025, GDP growth is forecasted at 2.1%.”
As of 30 June 2025, 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 1.87 trillion baht in loans, 1.80 trillion baht in deposits, and 2.60 trillion baht in total assets. Krungsri’s capital (Bank only) was strong at 325.76 billion baht, equivalent to 19.57% of risk-weighted assets, with 15.36% in common equity tier 1 capital.