Krungsri (Bank of Ayudhya PCL and its business units) reports its net profit of 27,409 million baht for the first nine-month of 2021, while sustaining healthy SME and corporate loan growth at 4.4% and 4.2%, respectively, in support of pandemic-hit customers through various relief programs, as part of the Bank's commitment to facilitating continuous recovery momentum.
Given heightened economic vulnerabilities in the third quarter of 2021, Krungsri continued to provide further financial support in mitigating severe impacts for fragile enterprises and households, leading to the outstanding amount of 233,617 million baht. In addition, special soft loans were also granted, leading to the soft loan amount of 25,709 million baht to date.,,
Highlights of Krungsri's consolidated 9M/21 performance:
- The normalized net profit contracted by 2.2%, or 431 million baht from the same period of 2020, mainly due to lowered net interest income as a result of multiple lending rate cuts to lessen customers' debt burden and support the economic recovery, together with interest rate ceiling reductions for consumer finance loans.
- Incorporating an extraordinary gain on investments from the sales of shares in Ngern Tid Lor Public Company Limited (TIDLOR) in 2Q/21, the net profit was recorded at 27,409 million baht, an increase of 39.5% from 9M/20.
- Loan: Increased by 1.2%, or 21,294 million baht from December 2020, driven by SME and corporate loans which grew by 4.4% and 4.2%, respectively, resonating Krungsri's commitments and endeavors to support customers through various relief programs.
- Deposit: Decreased by 51,564 million baht, or 2.8% from the end of December 2020, largely driven the Bank's proactive management to optimize liquidity position and improve the CASA-mix.
- Net interest margin (NIM): Moderated to 3.23% from 3.63% registered in 9M/20, reflecting multiple lending rate reductions and interest rate ceiling reductions for consumer finance loans.
- Non-interest income: Significantly increased by 12,104 million baht, or 50.5%, from 9M/20, mainly driven by the recognition of gains on investments from the sales of shares in TIDLOR.
Upon adjusting the aforementioned extraordinary gains on investment, normalized non-interest income increased by 1,377 million baht, or 5.7%, from 9M/20.
- Cost to income ratio: Improved to 42.1% for 3Q/21, from 43.0% in 2Q/21, thanks to the Bank's focus on effective expense management amid the prolonged coronavirus pandemic, while registering 43.0% for 9M/21, compared to 41.2% for 9M/20.
- Non-performing loan (NPL) ratio: stood at 2.27% as of the end of September 2021.
- Coverage ratio: Following the Bank's vigilantly and prudently maintaining a conservative level of provision to cushion against potential COVID-induced uncertainties, coverage ratio improved to 177.5% at the end of September 2021.
- Capital adequacy ratio (Bank only): Increased to 18.46%, from 17.92% at the end of December 2020
Krungsri President and Chief Executive Officer Mr. Seiichiro Akita, said "The growth in commercial lending portfolios resonated Krungsri's commitments and endeavors to support customers through various relief programs, among others -- liquidity support, soft loans, rehabilitation and recovery loans - in sustaining recovery momentum."
"Despite heightening uncertainties surrounding economic conditions, significant progress on vaccinations and the earlier-than-expected relaxation of the containment measures at the beginning of 4Q/21, together with the government's stimulus measures, would help restore both consumer and business confidence while boosting loan demand for the final quarter of 2021. Krungsri therefore maintains the loan growth guidance, albeit at the lower end of the 3 - 5 percent target range for the year."
As of 30 September 2021, Krungsri, Thailand's fifth largest bank in terms of assets, loans and deposits, and one of Thailand's Domestic Systemically Important Banks (D-SIBs), reported 1.85 trillion baht in loans, 1.78 trillion baht in deposits, and 2.49 trillion baht in total assets. The Bank's capital (Bank only) was strong at 291.72 billion baht, equivalent to 18.46% of risk-weighted assets, with 13.50% in common equity tier 1 capital.