Bangkok--21 Jan--Bank of Ayudhya
A favorable 55% growth from 2008
Bank of Ayudhya Public Company Limited announced a significant improvement in its performance for the year 2009. The Bank and its subsidiaries recorded an operating profit before provisioning for doubtful accounts and taxes of Baht 18.4 billion, a 38% increase as compared to 2008. After setting aside Baht 10.2 billion in provisions and Baht 1.5 billion for taxes, the Bank recorded a net profit of Baht 6.7 billion amidst an economic slowdown in 2009, representing a 55% improvement from the prior year end.
Major contributors to the favorable 2009 performance when compared to the prior year are: a 7% increase in net interest income and a 73% increase in non-interest income while non-interest expenses only grew by 12%. The Bank successfully booked a net loan growth of Baht 46 billion, or 8%, from a balanced combination of inorganic growth and organic growth. Acquisitions closed throughout the year shifted the composition of the Bank’s retail loan portfolio increasing from 32% at the beginning of the year to finish the year at 42%.
For the fourth quarter of 2009, on a consolidated basis, the Bank posted a net profit of Baht 1.6 billion representing 94% growth from the same period last year. The improvement was attributed primarily to business acquisitions during the year resulting in an overall 22% increase in net interest income, 133% increase in non-interest income while non-interest expenses grew 26%.
In addition, the Bank and its subsidiaries continued to improve its asset quality by reducing its net NPL down from 5.5% at the end of 2008 to 4.8% while increasing loan loss coverage ratio from 59% to 74%.
Mr. Mark Arnold, President & CEO of Bank of Ayudhya, said, “The strong foundation that the BAY management has built over the last few years has contributed to BAY’s ability to remain on track against plan in a very challenging year. In the midst of an economic slowdown, our inorganic growth activities enabled us to post a favorable net loan growth of Baht 46 billion. While loan growth was strong, our asset quality and coverage ratio also continued to improve, demonstrating our strong underwriting policies and effective risk management.”
“Looking forward, we see a great deal of potential that can be built on our solid foundation and performance. Our priorities in 2010 are to fully integrate our 2009 acquisitions into the BAY group, optimize the potential synergies and accelerate growth.” he added.
In 2010, BAY targets to increase a net loan growth of THB 48 billion, representing 8% growth in loan portfolio of the Bank and its subsidiaries.
As of December, 2009, on a consolidated basis, the Bank recorded Baht 782 billion baht in total assets representing an increase of Baht 34 billion or 5% as compared to the end of 2008, Baht 604 billion in loans representing an increase of Baht 46 billion or 8%, and Baht 521 billion in deposits representing a decrease of Baht 17 billion or 3%. The Bank maintained a strong capital base with a BIS ratio of 14.1% and tier 1 capital of 11.5%.
About Bank of Ayudhya Public Company Limited
Bank of Ayudhya Public Company Limited [symbol in SET: BAY], established on January 27, 1945, is the fifth largest commercial bank in Thailand with total assets of Baht 782 billion. BAY provides a full range of banking services to both its commercial and individual customers through 576 branches nationwide. On 3 January 2007, BAY and GE Money, a premiere global consumer financial services firm, have successfully become strategic partners. GE Money and the Ratanarak Group are now major shareholders with 33% and 25% stakes in BAY, respectively. For more information, please visit the Bank of Ayudhya website, www.krungsri.com.
For media inquiries, please contact:
Yaowalak Poolthong, Ph.D.
Head of Corporate Communications and IR
Bank of Ayudhya Pcl.
Tel: 02 296 2443, 02 296 3729,
Fax: 02 683 1473
Email:
[email protected]