Krungsri reports H1 2024 earnings of 15.75 billion baht
Krungsri (Bank of Ayudhya PCL and its business units) posts a net profit of 15.75 billion baht for H1 2024, a 7.9% YoY decline due to increased prudential provisions. Operating profit growth was driven by revenue from 2023 ASEAN acquisitions and higher domestic income.
In the first half of 2024, Krungsri's corporate and SME loans grew by 0.8%, driven by support for businesses’ working capital needs, while retail loans contracted by 3.5%, highlighting strict lending standards amid high borrower debt burdens. Total loans contracted by 1.3%.
Highlights of Krungsri’s consolidated first-half 2024 performance:
Net profit: Recorded at 15,752 million baht, down 7.9% from 1H/23, mainly due to higher expected credit loss (ECL) provisions. Operating profits grew by 26.0%, supported by ASEAN acquisitions in 2023 and higher domestic operating profits.
Loans: Decreased by 1.3% or 25,273 million baht from December 2023, with a 3.5% contraction in retail loans but a 0.8% increase in corporate and SME loans.
Deposits: Increased by 4.2% or 76,787 million baht from December 2023, mainly from time deposits.
Net interest margin (NIM): Rose to 4.31% from 3.52% in 1H/23, driven by higher yield on earning assets and contributions from overseas consumer finance businesses acquired in 2023.
Non-interest income: Increased by 26.6% or 4,708 million baht from 1H/23, driven by net fees, service income, domestic bancassurance, bad debt recoveries, and gains on financial instruments.
Cost to income ratio: Improved to 43.3% from 43.6% in 1H/23.
Non-performing loan (NPL) ratio: Stood at 3.05%. Credit cost was 243 basis points. Coverage ratio was 128.8%.
Capital adequacy ratio (Bank only): Recorded at 17.87%, compared to 18.24% in December 2023.
Krungsri President and CEO Kenichi Yamato stated, “In 1H/24, Thailand’s economic momentum was driven by tourism, private investment, and modest export expansion. However, growth was restrained by delayed 2024 budget disbursement, impacting public spending and consumer confidence, alongside high household indebtedness.”
“Krungsri remains committed to sustaining economic and business growth while adhering to the Bank of Thailand’s responsible lending guidelines. We anticipate accelerated economic activities in 2H/24, aligning with our full-year GDP growth forecast of 2.4%.”
As of 30 June 2024, Krungsri, Thailand’s fifth-largest bank by assets, loans, and deposits, and a Domestic Systemically Important Bank (D-SIB), reported 1.99 trillion baht in loans, 1.92 trillion baht in deposits, and 2.77 trillion baht in total assets. The bank's capital (Bank only) was strong at 307.83 billion baht, equivalent to 17.87% of risk-weighted assets, with 13.75% in common equity tier 1 capital.
