Bank of Ayudhya posts record profit

Bank of Ayudhya posts record profit

Bank of Ayudhya Plc (Krungsri) has posted a record net profit of 32.7 billion baht for 2019. (Post Today photo).
Bank of Ayudhya Plc (Krungsri) has posted a record net profit of 32.7 billion baht for 2019. (Post Today photo).

Bank of Ayudhya Plc (Krungsri) has posted a record net profit of 32.7 billion baht for 2019, a robust 32% increase from 2018.

The increase in net profit was attributed to significantly higher non-interest income as well as greater net interest income, supported by a healthy loan growth rate of 8.7%, or 146 billion baht. That exceeded the bank’s target of 6%-8%, said president and chief executive officer Seiichiro Akita.

The retail segment was the leading catalyst with a notable increase of 11.1%, followed by the commercial segment with an increase of 6.6%.

“Notwithstanding the weakening operating environment, buoyed by the strong fundamentasl, Krungsri delivered the record net profit and the robust loan growth," the bank chief said.

"These reflected the Bank’s agility in realigning our loan portfolio toward high-yield segments, thus moving Krungsri closer to the target optimal portfolio mix between retail and commercial loans at a 50:50 ratio.” 

Highlights of the bank's performance last year include its deposits -- which increased by 9.9%, or 141 billion baht -- while its net interest margin (NIM) was 3.60%, moderating from 3.81% in 2018.

Non-interest income also showed a significant increase -- 31.9% -- from 2018, mainly driven by the recognition of gains on investments from Ngern Tid Lor (NTL), a leading auto title lender, transactions and a share of profits from investment.

Meanwhile, its non-performing loans (NPLs) improved from 2.08% in 2018 to 1.98% last year with a strong coverage ratio of 163.8%.

“Despite the improved outlook on the global economy, uncertainties pertaining to trade tensions and geopolitical risks remain high this year," said Mr Akita.

Continued accommodative monetary policy, together with fiscal stimulus measures as well as the expected acceleration in public investment, will provide the support required to maintain Thailand’s economic growth momentum for 2020 at around 2.5%, he said. The bank has  set a loan growth target of 5%-7% this year.


Do you like the content of this article?
COMMENT (6)

Philippines says almost 100,000 citizens stranded overseas

The number of Filipino workers stranded across the world swelled to almost 100,000 as of Friday after commercial flights were halted due to the pandemic, according to the labour department.

19:11

MPs pass B1.97tn virus relief bills

Three executive decrees backing loans of 1.97 trillion baht to pay for Covid-19 relief passed the Lower House on Sunday.

18:43

Shark hunting critcised

Environment minister slams local politician in Satun for offering cash reward for capturing shark that bit boy's foot in canal.

18:02