Bangkok--21 Jul--Bank of Ayudhya
Bank of Ayudhya Public Company Limited announced an improvement in its operating performance for the second quarter of the year. The bank and its subsidiaries recorded an operating profit before provisioning for doubtful accounts and taxes of Baht 4.62 billion, a 10% and 41% increase as compared to 2Q/08 and 1Q/09, respectively. After setting aside Baht 2.54 billion in provisions, which is an increase reflecting a more prudent approach in light of an uncertain economic outlook, and Baht 0.33 billion for taxes, the Bank posted a consolidated net profit of Baht 1.76 billion, a 12% decrease year on year but a 71% improvement from 1Q/09.
Major drivers for the improvement in the bank’s 2Q/09 operating performance are a significant improvement in non-interest income, reflecting 39% and 45% growth while non-interest expenses only grew 8% and 9% from the same period last year and from the prior quarter, respectively. Cost of funding also showed an improvement resulting in a 12% growth in net interest income as compared to 1Q/09. In addition, a net loan growth of Baht 21 billion was booked in 2Q/09. At the same time, although the asset quality remained stable, the Bank’s coverage ratio was lifted above 65%.
Mr. Tan Kong Khoon President & CEO of Bank of Ayudhya, said, “Taking into consideration that we are in the midst of an economic downturn, we are pleased with our achievement in the second quarter. Profitability was improved and net loan growth was achieved while our balance sheet was strengthened further; this is reflective of the prudent strategies adopted to navigate through the tough business environment. Our inorganic growth strategy is bearing fruit at a time when organic growth can be difficult.”
“What we have achieved year-to-date encourages us to continue our hard work to achieve our key business targets under the challenging business environment. I am confident of our ability to deliver sustainable growth.” Mr. Tan added.
As of 30 June 2009, the bank recorded Baht 720 billion in total assets, Baht 556 billion in loans and Baht 500 billion in deposits. The bank has a strong capital base with BIS ratio of 15.9% and tier 1 capital of 12.9%.
For media inquiries, please contact:
Yaowalak Poolthong, Ph.D.
Head of Corporate Communications and Investor Relations
Bank of Ayudhya PCL.
Tel: 02 296 2443, 02 296 3729,
Fax: 02 683 1473
Email: [email protected]