Bangkok--20 Apr--Bank of Ayudhya
Krungsri (Bank of Ayudhya PCL and its group companies) announces a notable performance for the first quarter of 2018 with a record net profit of 6.2 billion baht, representing a 10.1% increase from the same period last year. The increase in the Bank's quarterly net profit was attributed to higher net interest income, higher net fees and service income, solid performance in non-interest and non-fees income, and effective expense management.
Key highlights of Krungsri's consolidated 1Q/2018 results: - Net Profit: Recorded at 6.2 billion baht, representing a 9.4% increase from 4Q/17, and a 10.1% increase from 1Q/17.
- Loan Growth: Increased by 1.5%, or 22.6 billion baht, compared to December 2017. The loan expansion in 1Q/18 was mainly driven by auto hire purchase, Japanese and Multinational Corporates, SMEs and mortgage segments. Meanwhile, credit cards and personal loans and Thai corporate loan contracted due to the seasonality of repayments.
- Deposit Growth: Increased by 3.8%, or 50.2 billion baht, compared to December 2017, mainly resulting from an increase in time and savings deposits.
- Net Interest Margin (NIM): Recorded at 3.67%, moderated from 3.81 in 4Q/17, reflecting a shift of portfolio mix during the quarter.
- Non-interest Income: Increased by 15.5%, or 1.19 billion baht from 1Q/17, driven by fees of wealth and fund management and securities, auto hire purchase, and card-related businesses, as well as gains on trading and foreign exchange transactions, and bad debt recoveries.
- Cost to Income Ratio: Recorded at 46.1%, firmly improved from 49.7% in 4Q/17.
- Non-Performing Loans (NPLs): Recorded at the strongest level of 1.96%, decreased from 2.05% in December 2017.
- Coverage Ratio: Significantly improved to 157.0% from 148.4% at the end of 2017.
- Capital Adequacy Ratio: Recorded at 15.61%, compared to 15.65% in December 2017.
Krungsri President and Chief Executive Officer Mr. Noriaki Goto said, "We have made a strong start with a record net profit of 6.2 billion baht in 1Q/18, representing a robust 9.4% increase from 4Q/17, and a 10.1% increase from 1Q17. This quarterly record of net profit was delivered despite the recurring seasonal impact generated by loan repayments in the first quarter."
"The solid performance was largely attributed to higher operating income and effective expense management, which underscores our competitive strength and well-balanced portfolio. With the continued improvement in asset quality, the Bank's 1Q/18 NPL ratio was further reduced to 1.96%, the new record low since the Asian Financial Crisis.", added Mr. Goto.
Commenting on the overall business outlook for 2018, Mr. Goto said, "With a solid start in 1Q/18, we expect the economic momentum to gain further traction in the remaining part of the year, supported by sustained growth in export and tourism sectors together with accelerated implementation of public infrastructure investments which will provide catalysts for private investment and loan demand. Under this favorable outlook, we maintain our GDP forecast of 4.0%, which contributes to Krungsri broad-based loan growth in the range of 6-8% for 2018."
As of 31 March 2018, Krungsri, Thailand's fifth largest bank and one of Thailand's Domestic Systemically Important Banks (D-SIBs), reported 1.57 trillion baht in loans, 1.37 trillion baht in deposits, and 2.16 trillion baht in total assets. The Bank's capital was strong at 221.46 billion baht, equivalent to 15.61% of risk-weighed assets with 11.80% in common equity tier 1 capital.
About Krungsri
Krungsri (Bank of Ayudhya PCL and its group companies) is the fifth largest financial group in Thailand in terms of assets, loans, and deposits, being one of Thailand's Domestic Systemically Important Banks (D-SIBs) with 73 years of history in the country. Krungsri is a strategic member of the Mitsubishi UFJ Financial Group (MUFG), Japan's largest financial group and one of the world's largest financial organizations. Krungsri 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 700 branches (663 Banking Branches and 37 Auto Business Branches) and over 35,000 service outlets nationwide. The Krungsri Group is the largest card issuer in Thailand with 8.6 million credit cards, sales finance, and personal loan accounts in its portfolio; a major automobile financing service provider (Krungsri Auto); one of the fastest growing asset management companies (Krungsri Asset Management); and a pioneer in microfinance (Ngern Tid Lor).
Krungsri is strongly committed to the highest level of integrity in conducting its business. All Krungsri Group companies have been awarded accreditation from the Private Sector Collective Action Coalition Against Corruption (CAC) in collaboration with industry peers and stakeholders on a zero tolerance approach to corruption.
About MUFG (Mitsubishi UFJ Financial Group, Inc.)
Mitsubishi UFJ Financial Group, Inc. (MUFG) is one of the world's leading financial groups. Headquartered in Tokyo with approximately 350 years of history, MUFG is a global network with over 2,300 offices in more than 50 countries. The Group has over 150,000 employees, offering services including commercial banking, trust banking, securities, credit cards, consumer finance, asset management, and leasing. The Group's operating companies include MUFG Bank, Ltd. Mitsubishi UFJ Trust and Banking Corporation (Japan's leading trust bank), and Mitsubishi UFJ Securities Holdings Co., Ltd., one of Japan's largest securities firms. Through close partnerships among our operating companies, the Group aims to "be the world's most trusted financial group", flexibly responding to all of the financial needs of our customers, serving society, and fostering shared and sustainable growth for a better world. MUFG's shares trade on the Tokyo, Nagoya, and New York (NYSE: MTU) stock exchanges.