18 October 2024
Bangkok (18 October 2024) –
Krungsri (Bank of Ayudhya PCL and its business units) posts 23,424 million baht in net profit for the first nine months of 2024, a 7.0% decrease from the same period last year, mainly due to a rise in prudential provisions, underscoring Krungsri’s rigorous and prudential risk management approach amid the daunting business environment.
In sustaining customers’ commercial and financial viability, Krungsri extended support to commercial and retail customers through various assistance measures amid their heightened economic vulnerabilities, in particular those hit by recent floods.
Highlights of Krungsri’s consolidated 9M/24 performance:
- Net profit: Recorded at 23,424 million baht for 9M/24, representing a decrease of 7.0%, or 1,774 million baht from 9M/23, due mainly to a rise in expected credit loss (ECL) driven by prudential provisions.
- Loans: Decreased by 4.5%, or 90,268 million baht, from the end of December 2023, resonating the weighted down business and consumer sentiments, combined with the Bank’s prudential lending stance.
- Deposits: Increased by 3.3%, or 60,009 million baht from the end of December 2023, primarily due to an increase in time deposits.
- Net interest margin (NIM): Increased to 4.33%, from 3.70% in 9M/23.
- Non-interest income: Increased by 23.2%, or 6,304 million baht from 9M/23, driven by net fees and service income from the ASEAN businesses.
- Cost to income ratio: Improved to 43.8%, from 44.2% in 9M/23.
- Non-performing loan (NPL) ratio: Recorded at 3.20%. Meanwhile, the credit cost stood at 245 basis points. The coverage ratio was recorded at 124.6%.
- Capital adequacy ratio (Bank only): Improved to 18.94%, compared with 18.24% at the end of December 2023.
Krungsri President and Chief Executive Officer Mr. Kenichi Yamato, said “As a responsible financial service provider, Krungsri continued to extend our support to customers, commercial and retail, in sustaining their commercial and financial viability through various assistance measures; in particular SME and retail customers recently impacted by floods. Concurrently, we further advocated our commitment to net zero through the introduction of Krungsri SME Transition Loan at the beginning of the third quarter this year, aiming to proactively and effectively support SMEs’ transitions toward a decarbonization pathway.”
Commenting on the economic outlook, Mr. Yamato cited that “Thailand’s economic growth momentum is expected to sustain in the fourth quarter this year, buoyed by tailwinds namely improving export performance, ongoing growth in tourism, and acceleration in government disbursement that helps boost domestic consumption. Meanwhile, impacts of recent flooding and baht appreciation, together with persisting structural impediments, such as household debt and manufacturing competitiveness, could pose downside risks to determinants of growth. Given the aforesaid economic outlook, Krungsri maintains our forecast of 2024 GDP growth at 2.4%.”
As of 30 September 2024, 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 1.93 trillion baht in loans, 1.90 trillion baht in deposits, and 2.72 trillion baht in total assets. Krungsri’s capital (Bank only) was strong at 318.77 billion baht, equivalent to 18.94% of risk-weighted assets, with 14.75% in common equity tier 1 capital.