BAY profit up 10 per cent in first half
Bank of Ayudhya Plc, or Krungsri, has turned in a solid performance for the first half of this year with consolidated net profit gaining 10.5 per cent to Bt11.5 billion, thanks to robust net interest income and non-interest income as well as effective expense management.
For the second quarter of 2017, a net profit of Bt5.87 billion was achieved, increasing 11.4 per cent from the same quarter of last year and 4 per cent from the first quarter of this year, according to the bank’s press release yesterday.
In the first half, loans inched up 1.8 per cent to Bt1.48 trillion.
In the second quarter, loan growth was strong across all segments. Retail loans were up by 2.8 per cent, corporate loans by 3.3 per cent and SME loans by 2.9 per cent.
First-half deposits expanded 5.0 per cent to Bt1.16 trillion, mainly from an increase in time deposits.
Krungsri’s net interest margin (NIM) rose to 3.89 per cent in the second quarter from 3.82 per cent in the first quarter, driven by improved yield on earning assets
Its non-performing loan ratio improved to 2.24 per cent from 2.33 per cent in the first quarter of last year with its coverage ratio at a sturdy 143.6 per cent, said Noriaki Goto, president and chief executive officer.
The outlook for the rest of the year is for the economy to mark further traction and achieve 3.4-per-cent growth for the whole year, driven mainly by exports, tourism and government spending.
Private investment and consumption are also expected to continue picking up. Due to the favourable operating environment, Krungsri sticks by its full-year loan growth target of 6-8 per cent.
