Bangkok--21 Apr--Bank of Ayudhya
Bank of Ayudhya Public Company Limited announced the bank and its subsidiaries recorded a satisfactory performance for the first quarter of the year amidst an economic slowdown. On a consolidated basis, the Bank posted an operating profit before provisioning for doubtful accounts and taxes of Baht 3.29 billion, a 19% and 13% increase as compared to the 4Q/08 and 1Q/08 respectively. After setting aside Baht 1.98 billion in provision and Baht 0.28 in taxes, the bank recorded a net profit of Baht 1.03 billion, a 21% growth as compared to 4Q/08 and a flat growth when compared to the same period last year.
Major drivers for the improved operating profit quarter on quarter are a 55.6% increase in non-interest income and a 7.8% reduction in non-interest expenses. When compared to the same period last year, the improvement was attributed to a 5.9% increase in net interest and dividend income and a 13.4% growth in non-interest income while non-interest expenses grew by 5.2%.
Mr. Tan Kong Khoon President & CEO of Bank of Ayudhya, said, “2009 is clearly a challenging year. The first quarter of the year saw an abrupt weakening of the economy, mainly resulting from the impact of the global economic slowdown on Thailand. However, the Bank booked a consolidated net profit of Baht 1.03 billion, a satisfactory performance amidst the prevailing macro environment.
Our asset size shrank slightly at 1.5%, mainly driven by a 3.9% reduction in our total loan portfolio, which is quite in line with the overall industry. However, thanks to the inorganic growth strategy, we expect that the recent completion of our acquisition of AIG Retail Bank and AIG Card Company will help compensate for a slowdown in organic growth during 2009.” Mr. Tan concluded.
As of 31 March 2009, on a consolidated basis, the Bank had Baht 735 billion in total assets, Baht 535 billion in loans and Baht 524 billion in deposits. BIS Ratio stood at 15.57% with Tier 1 of 12.94%.
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