Krungsri reports a 7% decline in 9-month profit, standing at 23 billion baht
Krungsri (Bank of Ayudhya PCL and its subsidiaries) reported a net profit of 23.42 billion baht for the first nine months of 2024, reflecting a 7.0% decline compared to the same period in 2023.
This decrease was driven by higher prudential provisions, underscoring the bank's commitment to robust risk management in the challenging business environment.
Krungsri continued supporting commercial and retail customers facing economic pressures, including those affected by recent floods, through various assistance measures.
Key highlights of Krungsri's 9M/24 performance:
Net Profit: 23.42 billion baht, down by 7.0% or 1.77 billion baht YoY due to increased expected credit loss (ECL) provisions.
Loans: Decreased by 4.5% or 90.27 baht billion from December 2023, reflecting cautious lending amidst weakening business and consumer sentiment.
Deposits: Increased by 3.3% or 60.01 billion baht from December 2023, mainly from growth in time deposits.
Net Interest Margin (NIM): Improved to 4.33%, up from 3.70% in 9M/23.
Non-Interest Income: Grew by 23.2% or 6.30 billion baht YoY, driven by fee income from ASEAN operations.
Cost-to-Income Ratio: Improved to 43.8%, compared to 44.2% in 9M/23.
NPL Ratio: Recorded at 3.20%, with credit cost at 245 basis points and a coverage ratio of 124.6%.
Capital Adequacy Ratio (Bank only): Strengthened to 18.94%, up from 18.24% in December 2023.
Krungsri's President and CEO, Kenichi Yamato, emphasized the bank’s commitment to customer support, especially for SMEs and retail clients impacted by the floods. The launch of the Krungsri SME Transition Loan in Q3 also highlights Krungsri’s dedication to facilitating SME transitions toward a decarbonization pathway.
Looking ahead, Yamato noted that Thailand’s economy is expected to maintain growth momentum in Q4 2024, driven by stronger exports, tourism recovery, and increased government spending. However, risks such as the impact of recent floods, baht fluctuations, household debt, and manufacturing competitiveness remain concerns. Krungsri continues to forecast GDP growth of 2.4% for 2024.
As of 30 September 2024, Krungsri, one of Thailand’s Domestic Systemically Important Banks (D-SIBs), reported 1.93 trillion baht in loans, 1.90 trillion baht in deposits, and total assets of 2.72 trillion baht. The bank’s capital (Bank only) stood at 318.77 billion baht, equivalent to 18.94% of risk-weighted assets, with a common equity tier 1 ratio of 14.75%.
