BAY Reports 14% Increase in 1Q Earnings from Rising Operating Profit and Lower ECL

Bank of Ayudhya Public Company Limited (SET: BAY) has announced its 1Q22 consolidated financial statement through the Stock Exchange of Thailand as follows;

Quarter 1Q22 1Q21
Net Profit (Loss)
Million Baht
7,418.29 6,504.86
Earning Per Share
1.0100 0.8800
% Change 14.04

BAY reported a net profit of 7,418 million baht in 1Q22, increased 14.04% from a net profit of 6,504 million baht in 1Q21. The increase was driven largely by higher operating profit together with lower expected credit loss.

On a year-on-year basis, the operating profit increased by 613 million baht, or 3.9%, mainly resulting from an improvement in overall net interest income attributed to the bank’s effective funding cost management. 

In 1Q22, interest income decreased by 200 million baht, or 0.8%, mainly from a decrease in interest on interbank and money market items, mainly resulting from a decrease in the repurchase agreement balance.

Auto hire purchase fees decreased by 30 million baht or 3.3%.

Total loans outstanding stood at 1,928,570 million baht, an increase of 38,194 million baht or 2.0% from the end of December 2021. The key growth driver for the quarter stemmed from the demand for corporate and SME loans which grew by 3.9% and 4.0%, respectively, underpinning improved business sentiment and continued economic recovery. Meanwhile, retail loans slightly decreased by 0.1%, resulting from weakening consumer confidence due to the Omicron outbreak and declining purchasing power resulting from accelerated inflation, together with seasonally low spending patterns.

Underlining improved asset quality while concurrently maintaining prudential level of provision, the expected credit loss in 1Q22 amounted to 6,783 million baht, equivalent to a credit cost of 137 basis points, a decrease of 531 million or 7.3% from 1Q21. 

The non-performing loan (NPL) ratio registered 2.03% at the end of March 2022, compared to 2.20% at the end of December 2021.