Krungsri reports first-quarter earnings 8.68 Billion
Krungsri reports first-quarter 2023 earnings of 8.68 billion baht
Bangkok (20 April 2023) – Krungsri (Bank of Ayudhya PCL and its business units) posts 8,676 million baht in robust net profit for the first quarter of 2023, growing 17.0% over-year, mainly driven by positive growth in net interest income and non-interest income, as well as lower provisions, while sustaining priority in supporting economic and business growth momentum.
Krungsri’s overall financial stability remains highly resilient to support economic expansion with broad-based SME loan growth across sectors of 5.4% and strong deposit growth at 3.0%. The non-performing loan (NPL) ratio remained as low as 2.26% at the end of 1Q/23, owing to the Bank’s vigilant credit risk management practices.
Highlights of Krungsri’s consolidated first-quarter 2023 performance:
Net profit: Recorded at 8,676 million baht for 1Q/23, representing an increase of 1,258 million baht, or 17.0% over-year, mainly driven by positive growth in net interest income and
non-interest income, as well as lower provisions.
Loans: Increased by 0.3%, or 5,145 million baht from the end of December 2022, largely driven by increased loans to the SME and retail segments, offset by a contraction in loans to the corporate segment.
Deposits: Increased by 3.0%, or 53,964 million baht from the end of December 2022
Net interest margin (NIM): Recorded at 3.35%, compared with 3.28% in 1Q/22.
Non-interest income: Increased 6.1%, or 506 million baht from 1Q/22.
Cost to income ratio: Normalized to 44.4%, corresponding to the acceleration in economic activity and the low base effect due to the Omicron outbreak of 42.7% in 1Q/22.
Non-performing loan (NPL) ratio: Improved to 2.26% from 2.32% at the end of December 2022. On account of the economic growth momentum and risk management rigor, credit cost in 1Q/23 improved to 116 basis points.
Coverage ratio: Remained healthy at 167.1%.
Capital adequacy ratio (Bank only): Recorded at 17.95%, compared with 17.97% at the end of December 2022.
Krungsri President and Chief Executive Officer Mr. Seiichiro Akita, said “Amidst the heightened global economic uncertainty, driven in part by the recent episodes of banking stress in advanced economies, the Thai economy continued to expand in the first quarter of 2023, benefiting from vigorous tourism and private consumption rebounds, and is forecast to reach 3.3% for the entire year.”
“Thanks to our overall financial stability which is highly resilient with strong levels of capital, coverage ratio and liquidity, Krungsri will continue to proactively play our role in sustaining economic and business growth momentum in both the commercial and retail customer segments, with the Bank’s loan growth target at 3-5% for 2023.”
As of 31 March 2023, 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 1.95 trillion baht in loans, 1.86 trillion baht in deposits, and 2.68 trillion baht in total assets. Krungsri’s capital (Bank only) was strong at 300.17 billion baht, equivalent to 17.95% of risk-weighted assets, with 13.21% 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, and one of Thailand’s six Domestic Systemically Important Banks (D-SIBs) with 78 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 605 domestic branches (565 Banking Branches and 40 Auto Business Branches) and over 33,579 service outlets nationwide. The Krungsri Group is the largest card issuer in Thailand with 10 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. (MUFG) is one of the world’s leading financial groups. Headquartered in Tokyo and with over 360 years of history, MUFG has a global network with approximately 2,400 locations in more than 50 countries. The Group has about 170,000 employees and offers services including commercial banking, trust banking, securities, credit cards, consumer finance, asset management, and leasing. The Group aims to “be the world’s most trusted financial group” through close collaboration among our operating companies and flexibly respond 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 stock exchanges. For more information, visit https://www.mufg.jp/english.
