Krungsri Bank (Ayudhya Bank Public Company Limited) and its subsidiaries reported a net profit of 18.7 billion baht for the first nine months of 2018, an increase of 6.7% compared to the same period last year. This growth was driven by an increase in net interest income resulting from the growth in lending and an increase in non-interest income, along with effective expense management.

During the first nine months of 2018, loans increased by 7.5%, amounting to 116.5 billion baht compared to the end of December 2017. The main drivers were the growth in retail customer loans across all segments, loans to Japanese corporations and multinational corporations (JPC/MNC), and loans to SME businesses. Meanwhile, the ratio of reserves to non-performing loans improved to 162.1%, the highest level since the Asian financial crisis.

Noriaki Goto, President and CEO of Krungsri Bank, stated, "The performance of Krungsri during the first nine months of 2018 is satisfactory, reflecting strong growth in lending, net interest margin, and the ratio of reserves to non-performing loans. The asset quality remains strong with a non-performing loan ratio at 2.12% and the reserve ratio improving to 162.1%, the highest since the Asian financial crisis. This outstanding performance reflects Krungsri's potential and ability to expand its business prudently to benefit from a more favorable market environment."

Mr. Goto further added, "For the remainder of 2018, assuming that trade barriers and their impacts remain limited, the bank expects the Thai economy to continue growing due to the expansion of the global economy, driven by government spending and investment, a clearer recovery in private sector investment, and an increase in overall income. With an improved business environment, along with seasonal factors for retail and business loans in the fourth quarter, the bank forecasts that the loan growth rate for the entire year of 2018 will be in the range of 8-10%."

Summary of Key Financial Results for the First 9 Months of 2018

 

  • Net Profit: 18.7 billion baht, an increase of 6.7% compared to the same period in 2017.
  • Loan Growth: Increased by 7.5%, amounting to 116.5 billion baht compared to the end of December 2017, driven mainly by a 7% increase in retail loans, covering auto loans, housing loans, credit cards, and personal loans, while loans to Japanese corporations and multinational corporations (JPC/MNC) and SME businesses grew by 14.6% and 10.2%, respectively.
  • Deposit Growth: Increased by 4.3% or 57.4 billion baht compared to the end of December 2017.
  • Net Interest Margin (NIM): At 3.81% compared to 3.82% in the same period of 2017.
  • Non-Interest Income: Increased by 4% or 2.2 billion baht from the same period in 2017, mainly due to an increase in net fee and service income, gains from trading and foreign exchange transactions, and recovered bad debts.
  • Cost-to-Income Ratio: At 46.7%, improved from 47.4% in the same period of 2017.
  • Non-Performing Loans (NPLs): At 2.12%.
  • Reserve Ratio to Non-Performing Loans: Strengthened to 162.1%.
  • Capital Ratio to Risk-Weighted Assets: Remains strong at 50%.