20 April 2023
Bangkok (20 April 2023) –
Krungsri (Bank of Ayudhya PCL and its business units) posts 8,676 million baht in robust net profit for the first quarter of 2023, growing 17.0% over-year, mainly driven by positive growth in net interest income and non-interest income, as well as lower provisions, while sustaining priority in supporting economic and business growth momentum.
Krungsri’s overall financial stability remains highly resilient to support economic expansion with broad-based SME loan growth across sectors of 5.4% and strong deposit growth at 3.0%. The non-performing loan (NPL) ratio remained as low as 2.26% at the end of 1Q/23, owing to the Bank’s vigilant credit risk management practices.
Highlights of Krungsri’s consolidated first-quarter 2023 performance:
- Net profit: Recorded at 8,676 million baht for 1Q/23, representing an increase of 1,258 million baht, or 17.0% over-year, mainly driven by positive growth in net interest income and non-interest income, as well as lower provisions.
- Loans: Increased by 0.3%, or 5,145 million baht from the end of December 2022, largely driven by increased loans to the SME and retail segments, offset by a contraction in loans to the corporate segment.
- Deposits: Increased by 3.0%, or 53,964 million baht from the end of December 2022
- Net interest margin (NIM): Recorded at 3.35%, compared with 3.28% in 1Q/22.
- Non-interest income: Increased 6.1%, or 506 million baht from 1Q/22.
- Cost to income ratio: Normalized to 44.4%, corresponding to the acceleration in economic activity and the low base effect due to the Omicron outbreak of 42.7% in 1Q/22.
- Non-performing loan (NPL) ratio: Improved to 2.26% from 2.32% at the end of December 2022. On account of the economic growth momentum and risk management rigor, credit cost in 1Q/23 improved to 116 basis points.
- Coverage ratio: Remained healthy at 167.1%.
- Capital adequacy ratio (Bank only): Recorded at 17.95%, compared with 17.97% at the end of December 2022.
Krungsri President and Chief Executive Officer Mr. Seiichiro Akita, said “Amidst the heightened global economic uncertainty, driven in part by the recent episodes of banking stress in advanced economies, the Thai economy continued to expand in the first quarter of 2023, benefiting from vigorous tourism and private consumption rebounds, and is forecast to reach 3.3% for the entire year.”
“Thanks to our overall financial stability which is highly resilient with strong levels of capital, coverage ratio and liquidity, Krungsri will continue to proactively play our role in sustaining economic and business growth momentum in both the commercial and retail customer segments, with the Bank’s loan growth target at 3-5% for 2023.”
As of 31 March 2023, Krungsri, Thailand’s fifth largest bank in terms of assets, loans and deposits, and one of Thailand’s Domestic Systemically Important Banks (D-SIBs), reported 1.95 trillion baht in loans, 1.86 trillion baht in deposits, and 2.68 trillion baht in total assets. Krungsri’s capital (Bank only) was strong at 300.17 billion baht, equivalent to 17.95% of risk-weighted assets, with 13.21% in common equity tier 1 capital.