Bank of Ayudhya Public Company Limited (SET: BAY) has announced its consolidated financial statement of 2023 through the Stock Exchange of Thailand as follows;
| Quarter | 2023 | 2022 |
| Net Profit (Loss) Million Baht |
32,929.52 | 30,712.99 |
| Earning Per Share (Baht) |
4.4800 | 4.1800 |
| % Change | 7.22 | |
BAY reported a net profit for its operation in 2023 at Baht 32,929 million, increased 7.2% from 2022. The increase was driven by both net interest income and net fee and services income growth contributions from the acquisitions of overseas consumer finance portfolios concluded in 2023. The aforementioned development was partially offset by higher operating expenses corresponding to consumer finance businesses acquired and an increase in expected credit loss, underscoring Krungsri’s rigorous and prudential risk management approach.
On a year-on-year basis, net profit for 4Q/23 increased by 4.6%, or Baht 340 million, driven by an increase in operating income, offset by an increase in operating expenses and expected credit loss.
For 2023, net interest income was recorded at Baht 99,390 million, an increase of Baht 15,612 million, or 18.6%, from 2022, driven by a robust loan expansion in SME and retail segments, particularly the contributions from overseas business entities; consequently NIM expanded by 46 bps.
NIM in 2023 increased by 46 bps to 3.91% from 2022, driven by an improvement in the yield on earning assets by 114 bps to 5.48%, despite a 78-bps increase in the cost of funds.
As of December 31, 2023, total loans outstanding was Baht 2,017,204 million, representing an increase of Baht 67,795 million, or 3.5% from the end of December 2022, mainly driven by domestic commercial loans as well asretail loan expansion particularly with regard to contributions from new overseas subsidiaries. Excluding the newly acquired overseas business volume, organic loan growth marked an increase of Baht 16,611 million, or 0.9%.
The non-performing loan (NPL) ratio was at 2.53%, compared with 2.32% at the end of December 2022. With prudential reserves, particularly for overseas subsidiaries, the credit cost in 2023 amounted to 175 bps. The loan loss coverage ratio stood at 149.1%, moderating from 167.4 % at the end of December 2022.
The expected credit loss in 4Q/23 amounted to Baht 12,955 million, equivalent to a credit cost of 253 bps, compared to 181 bps in the prior quarter and 146 bps in the same period of last year. The increase in the expected credit loss in 4Q/23 on a quarter-on-quarter basis was mainly attributed to prudential reserves, covering overseas subsidiaries completely acquired during the quarter.
For 2023 the expected credit loss was recorded at Baht 35,617 million, equivalent to a credit cost of 175 bps, compared to 136 bps level for 2022, mainly attributed to overseas consumer finance businesses, underscoring the prudential risk management approach and provisions.
