Krungsri posts 40.7 per cent growth in net profit for first nine months
Bank of Ayudhya (Krungsri) and its business units posted Bt26.3 billion in net profit for the first nine months of the year , increasing 40.7 per cent year on year.
The strong performance was attributed to significantly higher non-interest income and higher net interest income, supported by a robust loan growth of 6.4 per cent year-to-date.
Key highlights of Krungsri's consolidated 9-month 2019 results:
• Net Profit: Recorded at Bt26.3 billion, representing a 40.7 per cent increase over the same period of 2018.
• Loan Growth: Increased strongly by 6.4 per cent, or Bt106.5 billion from December 2018.
• Deposit Growth: Increased by 4.8 per cent, or Bt68.7 billion from December 2018.
• Non-Interest Income: Significantly increased by 40 per cent, or Bt10.2 billion, from the same period of 2018, mainly driven by the recognition of gains on investments from the Ngern Tid Lor Company Limited (NTL) transaction and a share of profit from investment.
• Non-Performing Loans (NPLs): Improved to 2.01 per cent, from 2.08 per cent in December 2018.
Krungsri president and chief executive officer Seiichiro Akita said: "Despite a deceleration in the Thai economy, Krungsri delivered solid performance for the first nine months of 2019, with a robust net profit of Bt26.3 billion, representing a 40.7 per cent increase over the same period of 2018. The solid earnings were attributed to the bank's ability to optimise our loan portfolio mix, thus resulting in steady growth in net interest income and non-interest income".
On overall business outlook, Akita said: "Given the decelerating economy, driven mainly by a global slowdown affecting domestic demand, Krungsri anticipates the Thai economy to expand at a slower rate than previously forecasted and has revised down GDP growth projection to 2.9 per cent from 3.2 per cent".
"Nevertheless, an accommodative monetary policy together with fiscal stimulus measures will provide support to maintain growth momentum for the final quarter. Krungsri expects the 2019 loan growth performance to be in the upper band of the bank's target range of 6 - 8 per cent".
As of September 30, 2019, the fifth largest bank in Thailand in terms of assets, loans and deposits, and one of Thailand's five Domestic Systemically Important Banks (D-SIBs), reported Bt1.78 trillion in loans, Bt1.5 trillion in deposits, and Bt2.27 trillion in total assets.
The bank's capital stood at Bt263.92 billion, equivalent to 16.46 per cent of risk-weighted assets, with 11.79 per cent in common equity tier 1 capital at the end of September, 2019.
