BAY's commercial gains meet H1 growth target

BAY's commercial gains meet H1 growth target

Bank of Ayudhya's (BAY) commercial banking group achieved its growth target for the first half of 2019, while non-interest income growth already surpassed the target.

The bank adopted its commercial banking business strategy for the second half of the year, leveraging synergies between Krungsri's local strength and Mitsubishi UFJ Financial Group (MUFG)'s global network, said Pornsanong Tuchinda, head of commercial banking.

The bank also aims to build growth of non-interest income and fee income.

"Considering the domestic situation, global trade and economic uncertainty, our business customers have been highly adaptive to changes in the environment. Krungsri's commercial banking group emphasises adjusting a balanced portfolio to enhance quality management and strengthen overall operations," he said.

Metinee Jongsaliswang, head of the corporate banking group, said the bank's customer-centric strategy helped BAY's corporate banking exceed its target in the first half, with total revenue increasing 6% from the same period a year earlier, supported by an increase in fee incomes, such as derivative fees, investment banking fees, and those from domestic trade transactions.

The growth helped increase the proportion of non-interest income to 25% of total revenue from 18% a year earlier.

Sayam Prasitsirigul, head of the SME banking group, said SME loans grew 8% from the end of last year, mainly driven by supply chain business, while deposits also gained 8%.

Another strong area was fee income from trade finance, which increased 8% from the same period a year earlier. Fee income from cash management increased 26% from a year earlier, said Mr Sayam.

BAY's non-performing loan ratio for SME fell to 3.4% at the end of June.

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