HoonSmart.com>>”Bank of Ayudhya” opened a profit for the second quarter of 2022 in the amount of 7,834 million baht, totaling 15,252 million baht for half-year, growing 18.6% from a decrease in provisions. Increased net interest income Net interest margin improved to 3.36%. Loans grew 3.1%. Confident in lending growth this year to the target of 3-5%.
Bank of Ayudhya (BAY) reported operating results for the second quarter of 2022 with a net profit of 7,833.75 million baht, equal to 1.06 baht per share, a decrease from the same period last year with a net profit of 14,542.80 million baht or 1.98 baht per share.
As for the total performance for 6 months, there was a net profit of 15,252 million baht or 2.07 baht, a decrease of 27.5% from a net profit of 21,048 million baht or 2.86 baht per share, if including special items from recording profits from investments from the sale of shares of the company. However, net profit from normal operations amounted to 15,252 million baht, an increase of 18.6% or 2,390 million baht compared to the same period of 2021.
The main factor driving net profit growth in the first half of the year This was due to a reduction in expected credit losses. reflects strong asset quality including an increase in net interest income Reinforcing effective financial cost management strategies from an improved operating environment In addition, the confidence of the business and household sectors has increased. As a result, total loans grew by 3.1%, or 58,344 million baht, from the end of 2021, with business loans as a key driver. Consists of large business loans and loans for SMEs In addition, aggressive cost-finance management also resulted in the net interest margin (NIM) rising to 3.36% from 3.08% last year.
Non-interest income from normal operations decreased by 616 million baht or 3.6% if including gains from investments from the sale of Ngern Tid-Lor’s shares in the previous year. Non-interest income decreased by 11,343 million baht or 40.8%.
The NPL ratio improved to 2.11%, compared to 2.20% at the end of 2021. Provision to NPL ratio. also improved to a high level of 189.2% from 184.2% at the end of 2021 as a result of Krungsri’s prudent provisioning policy that adheres to a high level of total provisioning practice.
Mr. Seichiro Akita, President and Chief Executive Officer Bank of Ayudhya said that the total loan growth in the first half of the year was consistent across customers in all business segments. This was positively influenced by stronger confidence in the business and household sectors. Although business activities have improved in the past. The bank continues to focus more on cost efficiency and operational productivity.
In the midst of global economic and financial trends that are still volatile and uncertain Thai economy in the second half of the year still have a tendency to face risks Although the economic activity and tourism sector have improved. Monetary Normalization tendency to curb rising headline inflation This may result in a gradual hike in the policy interest rate since the third quarter of this year.
Krungsri expects total lending in 2022 to grow in line with the upper margin of the target range of 3-5% under the Thai economy growth assumption of 3.1%.
As of June 30, 2022, Krungsri, the fifth largest financial group in the Thai economy by asset value, Loans and deposits It is one of the systematically important financial institutions (D-SIBs), with total loans of 1.95 trillion baht, deposits of 1.82 trillion baht and total assets of 2.6 trillion baht, while the bank’s capital fund stood at 292.34 billion baht. or equivalent to 17.59% of risk-weighted assets with owner-owned Tier 1 capital accounted for 12.82%.
