Bank of Ayudhya Public Company Limited (SET: BAY) has announced its 1Q24 consolidated financial statement through the Stock Exchange of Thailand as follows;
| Quarter | 1Q24 | 1Q23 |
| Net Profit (Loss) Million Baht |
7,542.61 | 8,676.29 |
| Earning Per Share (Baht) |
1.0300 | 1.1800 |
| % Change | -13.07 | |
BAY reported a net profit of Baht 7,543 million, representing a decrease of 13.1%, or Baht 1,133 million, largely driven by an increase in expected credit loss as a safeguard in light of future uncertainty that could impact asset quality domestically and overseas.
On a year-on-year basis, net interest income robustly increased by Baht 6,105 million, or 28.8%, primarily due to contributions from the newly acquired overseas businesses concluded in 2Q/23 and 4Q/23. Excluding the overseas contributions, net interest income from the domestic operation increased Baht 809 million, mainly attributed to higher interest income from loans and interbank and money market items, corresponding to both higher outstanding balances and interest rates. The aforementioned developments, however, were partly offset by an increase in interest expenses on time deposits and interbank and money market items.
NIM increased by 81 bps YoY, driven by a higher yield on earning assets of 150 bps. This notable improvement was largely attributed to the expansion of the high-yield segment’s outstanding balance resulting from the acquisitions of overseas consumer business entities in 2Q/23 and 4Q/23, as well as an increase in lending rates. Meanwhile, the cost of funds increased by 76 bps to 2.20% largely driven by higher cost of deposits, resulting from changes in compositions of deposit tenors and an increase in deposit rates.
As of March 31, 2024, total loans outstanding was Baht 1,999,952 million, representing a decrease of Baht 17,252 million, or 0.9% from the end of December 2023, mainly driven by the seasonal contraction in large corporate and retail loans. Meanwhile, SME and ASEAN loans continued to grow during the quarter.
Meanwhile, deposits increased markedly by Baht 164,500 million, or 8.9%, from the end of December 2023, mainly from an increase in time deposits.
The non-performing loan (NPL) ratio was at 2.69%, compared with 2.53% at the end of December 2023. With prudential reserves, particularly for overseas subsidiaries, the credit cost for the quarter amounted to 248 basis points (bps). The loan loss coverage ratio stood at 141.5%, moderating from 149.1% at the end of December 2023. Excluding the ASEAN portfolio, the NPL ratio stood at 2.30%. Capital adequacy ratio (Bank only) recorded at 18.08%, compared with 18.24% at the end of December 2023.
The expected credit loss in 1Q/24 amounted to Baht 12,271 million, equivalent to a credit cost of 248 bps. ECL increased significantly by Baht 6,472 million, or 111.6% YoY, largely driven by an increase in expected credit loss as a safeguard in light of future uncertainty that could impact asset quality domestically and overseas, which underscored Krungsri’s rigorous and prudential risk management approach.
