Bank of Ayudhya Public Company Limited (SET: BAY) has announced its 1Q25 consolidated financial statement through the Stock Exchange of Thailand as follows:
| Quarter | 1Q25 | 1Q24 |
| Net Profit (Loss) Million Baht |
7,533.48 | 7,542.61 |
| Earning Per Share (Baht) |
1.0200 | 1.0300 |
| % Change | -0.12 | |
BAY reported a net profit of Baht 7,533 million in the first quarter of 2025, a flat growth when compared to the same quarter of last year. This was attributed to lower net interest income, resulting from loan contraction and a lower interest rate environment. The aforementioned impact was partially offset by moderation in expected credit loss, as BAY’s ASEAN asset quality’s trend signaled improvement.
Interest income in 1Q25 totaled Baht 35,904 million, decreased by Baht 2,061 million, or 7.6%. The decrease was a result of a decrease in interest income of Baht 4,077 million, or 10.2%, mainly from a decrease in interest on loans and hire purchase and financial lease income totaling Baht 3,492 million, from a combination of the loan contraction and lower lending rates.
Meanwhile, net interest margin (NIM) in 1Q25 was recorded at 4.10%, decreased by 6 bps from 4.16% in 1Q/24, mainly due to a lower yield on earning assets, which declined by 26 bps, corresponding to a decrease in yield on loans. This was driven by both loan contractions and lower lending rates. Meanwhile, the cost of funds decreased by 18 bps from 2.20%, mainly due to a lower outstanding balance of both deposits and its changed composition, and a lower borrowing balance, as well as reductions in deposit rates.
As of March 31, 2025, total loans outstanding was Baht 1,896,446 million, relatively unchanged from the end of December 2024. Underlying its targeted and selective growth maneuver notwithstanding increasing economic frictions and risks. Additionally, corporation loans grew robustly, driven by both working capital requirements and capital expenditure investment underscoring the expansion in industries benefiting from the upper echelon of a “K-shaped economy”. Meanwhile, given both seasonal repayments and stringent underwriting standards amid uncertainties, retail and SME loans contracted by 2.5% and 2.4% respectively, quarter-on-quarter.
The overall asset quality remained manageable with non-performing loan (NPL) ratio registered at 3.29%, compared with 3.23% at the end of December 2024. Meanwhile, the credit cost improved to 211 basis points (bps), compared with 234 bps in the prior quarter. This reduction was primarily attributed to the improved asset quality outlook for ASEAN businesses together with additional provisions recorded in 2024 for both pro-cyclical and prudential overlay purposes. The loan loss coverage ratio stood at 124.5%, compared with 123.2% at the end of December 2024. The capital adequacy ratio (Bank only) recorded at 19.14%, compared with 19.38% at the end of December 2024.
The expected credit loss in 1Q25 amounted to Baht 9,988 million, equivalent to a credit cost of 211 bps, decreased by Baht 2,283 million, or 18.6%.
