Bank of Ayudhya (BAY) posted a 32% surge in unaudited consolidated net profit last year due to higher net interest and non-interest income, while TMB Bank's yearly net profit plunged 37.7% largely thanks to a one-off gain recorded in 2018.
In 2019, BAY, the country's fifth largest lender by assets, recorded net profit of 32.7 billion baht, up from 24.8 billion in 2018, according to a filing to the Stock Exchange of Thailand (SET).
The increase in net profit was attributed to a 31.9% increase in non-interest income, mainly driven by a one-time gain from a 50% stake sale in the Ngern Tid Lor, and higher net interest income, supported by healthy loan growth of 8.7%.
Excluding the one-off items in 2019, the normalised net profit for 2019 would be 26.9 billion baht, an 8.6% increase from 2018.
Non-interest margin lowered to 3.6% last year from 3.81% in 2018, while cost-to-income improved to 42.9% from 47.2%.
Even though the bank's gross non-performing ratio fell to 1.98% at the end of 2019 from 2.08% in 2018, BAY set aside higher impairment charges for credit loss of 28.2 billion baht, compared with 26.2 billion in 2018.
President and chief executive Seiichiro Akita said the bank has set a prudent loan growth target of 5-7% for 2020, based on an economic growth forecast of 2.5% for the country.
TMB's 2019 net profit was 7.22 billion baht, significantly down from 11.6 billion in the previous year when the bank recorded a one-off gain of 11.8 billion from the divestment of a 65% stake in TMB Asset Management (TMBAM) to Eastspring Investments.
Last year, the bank's net interest income jumped 9.7% to 26.9 billion baht, but failed to offset non-interest income, which dipped 45% to 13 billion.
BAY shares closed yesterday on the SET at 29.50 baht, down 50 satang, in trade worth 12.6 million baht.
TMB shares closed at 1.51 baht, down five satang, in trade worth 369 million baht.