Krungsri Bank reported its operating results for the first 9 months of 2024 with a net profit of 23,424 million baht, down 7.0% from increased provisions, reinforcing its prudent risk management policy amid an unfavorable business environment, supporting customers to recover their businesses and maintaining financial stability. The GDP forecast for 2024 remains at 2.4%.
Bank of Ayudhya Public Company Limited summarizes its operating results and key financial position for the first 9 months of 2024.
Net profit for the first nine months of 2024 was 23,424 million baht, down 7.0% or 1,774 million baht compared to the first nine months of 2023, mainly due to an increase in expected credit losses following prudent provisioning.
Total loans decreased by 4.5% or 90,268 million baht from the end of December 2023, reflecting a decline in business and consumer confidence, coupled with Krungsri’s implementation of responsible and fair lending practices.
Deposits increased by 3.3% or 60,009 million baht from the end
of December 2023, mainly due to an increase in fixed deposits.
Net Interest Margin (NIM) increased to 4.33% compared to 3.70% in the first 9 months of 2023.
Non-interest income increased by 23.2% or 6,304 million baht from the first nine months of 2023, driven by net fee and service income from ASEAN businesses.
The cost-to-income ratio improved to 43.8% from 44.2% in the first nine months of 2023.
The non-performing loan (NPL) ratio was 3.20%, while the provisioning ratio
to total loans was 245 basis points and the provisioning ratio to non-performing loans was 124.6%.
The Bank’s capital adequacy ratio increased to 18.94%, compared to 18.24% at the end of December 2023.
Mr. Kenichi Yamato, President and Chief Executive Officer, Bank of Ayudhya PCL, said that as a responsible financial service provider, Krungsri continues to support both corporate and retail customers to help them recover and maintain financial stability through various relief measures, especially for SME and retail customers affected
by the recent floods. At the same time, we have reaffirmed our commitment to Net Zero emissions through the launch of Krungsri SME Transition Loan in early Q3 of this year, aiming to support SME entrepreneurs in their effective transition to a decarbonization path.
In the fourth quarter of 2024, the Thai economy is expected to continue to expand, supported by the main factors of improved exports, continued growth in the tourism sector, and accelerated government budget disbursements that will stimulate domestic consumption. However, economic growth may be affected by negative risk factors, such as the impact of the flood situation, the appreciation of the baht, and structural obstacles such as household debt and the competitiveness of the manufacturing sector. Based on the economic outlook mentioned above, Krungsri still forecasts economic growth in 2024 at 2.4%.
As of September 30, 2024, Krungsri, the fifth largest financial group in the Thai economy by value of assets, loans and deposits, and one of the s
ystemically important financial institutions (D-SIBs), had total loans of 1.93 trillion baht, deposits of 1.90 trillion baht and total assets of 2.72 trillion baht, while the bank’s capital was strong at 318.77 billion baht or 18.94% of risk-weighted assets, of which common equity Tier 1 capital accounted for 14.75%.
Source: Thai News Agency
