Bangkok--18 Jan--Bank of Ayudhya
Krungsri Group (Bank of Ayudhya Plc. and its subsidiaries) today announced robust operating performance for 2012 with a consolidated net profit of Baht 14.7 billion, an increase of 57.7% from 2011. Key drivers are higher net interest income resulting from strong loan growth and healthy fees and service income growth.
Performing loans grew 17.2%, or Baht 118.7 billion, compared to December 2011 and 6.2%, or Baht 47.3 billion, compared to September 2012. The Group’s retail segment was the key contributor, with outstanding loans growing by 24.2% in 2012. The SME and corporate segments also grew strongly at 12.6% and 3.7%, respectively.
Deposits increased by 22.6%, representing a significant increase of Baht 126.6 billion, from 2011. The proportion of savings and current deposits as a percentage of total deposits (CASA) rose to 53.8% in December 2012 compared to 42.4% in December 2011.
Non-performing loans declined sharply to Baht 21.3 billion from Baht 29.5 billion in December 2011, a 27.9% reduction. The Group’s NPL ratio now represents only 2.4% of total loans, the lowest level since 1993.
The Group’s strong net interest margin (NIM) was maintained at 4.33% despite the FIDF rate increase earlier in the year and the impact of flooding forbearance measures for customers in 1Q/12.
Mrs. Janice Van Ekeren, CEO of Krungsri Group, said, “Krungsri has continued the move to ‘make life simple’ for our customers thanks to the strength of our people, products, and distribution network. Our success in these areas is evidenced by our achievements in 2012 - record core financial earnings performance, unprecedented loan growth, the successful acquisition and integration of HSBC’s Thailand retail banking business, top brand recognition awards for our auto and microfinance businesses and the Top Corporate Governance Report Award from SET for the second year running.”
“Amid persistent global financial volatility resulting in dampened export growth and the FIDF rate change impact in 2012, Krungsri still successfully recorded robust performing loan growth of 17.2%, with a record net profit of Baht 14.7 billion,” said Mrs. Van Ekeren.
“The outlook for loan growth in 2013 will continue to be strong, supported by an accommodative monetary policy, government investment projects, and consumer spending. Investments from renewed capital expenditure cycles and healthy consumer spending will be the key drivers of growth. Krungsri is well positioned to sustain 2012 momentum with target loan growth of more than 12% in 2013,” she added.
As of 31 December 2012, Krungsri, as Thailand’s fifth largest bank, recorded Baht 830.0 billion in loans and Baht 1.07 trillion in total assets. The Bank has a strong capital base with a BIS ratio of 16.9% and tier 1 capital of 10.9%.
Key highlights of the Krungsri Group’s consolidated 2012 results:
- Performing Loan Growth: Increased 17.2% or Baht 118.7 billion, compared to December 2011 and 6.2% or Baht 47.3 billion, compared to September 2012.
- Net Profit: Baht 14.7 billion, increasing 57.7% from 2011.
- Net Interest Margin: Maintained strong NIM at 4.33% despite the FIDF rate impact and flooding forbearance measures in 1Q/12.
- Cost to Income Ratio: Maintained at 50.3% supportive to 17.2% performing loan growth.
- Non-Performing Loans: Declined sharply to Baht 21.3 billion from Baht 29.5 billion in December 2011, a 27.9% reduction. NPL ratio now at 2.4%, the lowest level since 1993.
- Coverage: Significantly improved to 146% from 106% in 2011.
- Fees and Service Income: Grew 18.8% from 2011, supported by bancassurance and card fees.
- Deposit Growth: Increased robustly at 22.6%, or Baht 126.6 billion, from 2011.
- Capital Adequacy Ratio: Amid robust loan growth recorded in 2012, CAR improved to 16.9 % from 16.3% in December 2011, driven by earnings growth and a Baht 14.8 billion subordinated debenture issuance in 4Q/12.
About Bank of Ayudhya Plc - Krungsri Group
Bank of Ayudhya Public Company Limited (BAY) is the fifth-largest commercial bank in Thailand, with 67 years of history in the country. The Bank provides a comprehensive range of banking, consumer finance, investment, asset management and other financial products and services to individual consumers, SMEs, and large corporations through its 605 branches and over 17,000 service outlets nationwide. Through its Krungsri subsidiaries, the Bank is the largest card issuer in Thailand with 5.9 million of accounts (Credit Cards, Sales Finance/Personal Loans) in its portfolio, a major automobile financing service provider (Krungsri Auto), the fastest growing asset management company (Krungsri Asset Management), and a pioneer in microfinance through CFG Services.
For further information please contact:
Corporate Communications and Public Relations Division
Bank of Ayudhya Plc
Tel: 02 296 3847, 02 296 2443-4
Email:
[email protected]