Mr. Seiichiro Akita, the President and CEO of Krungsri Bank (Ayudhya Bank Public Company Limited) - BAY, announced that the bank and its subsidiaries reported a net profit of 7.033 billion baht for the first quarter of 2020, an increase of 9.3% from the fourth quarter of 2019. The main driving factor was the increase in operating profit, despite recognizing higher expected credit losses in line with the economic slowdown due to the COVID-19 pandemic.

“Although the outbreak has clearly impacted the tourism sector since February 2020, and the lockdown measures began to severely affect economic activities from mid-March 2020, lending still grew by 2.9% in the first quarter of 2020, driven mainly by the working capital needs of business clients,” Mr. Seiichiro stated.

In the first quarter of 2020, the bank recorded a net profit of 7.03 billion baht, up 9.3%. Loans increased by 2.9%, amounting to 52 billion baht, while credit card and personal loan lending decreased by 6.1% due to seasonal debt repayments and a slowdown in spending. Meanwhile, deposits rose by 6.4%, or 100 billion baht. The net interest margin stood at 3.94%, while non-interest income fell by 9.2%, or 869 million baht, compared to the fourth quarter of 2019.

The cost-to-income ratio improved to 41.0% from 43.7% in the fourth quarter of 2019, while the non-performing loan ratio was at 2.22%, compared to 1.98% at the end of December 2019. The loan loss reserve ratio was at 159.1%, down from 163.8% at the end of December 2019, and the capital adequacy ratio stood at 15.66%.

As of March 31, 2020, the bank, which is the fifth largest financial group in Thailand in terms of assets, loans, and deposits, and one of the five systemically important financial institutions (D-SIB), had total loans of 1.87 trillion baht, total deposits of 1.67 trillion baht, and total assets of 2.51 trillion baht. The bank's capital was strong at 270.48 billion baht, equivalent to 15.66% of risk-weighted assets, with Tier 1 capital accounting for 11.01% of equity.