BAY 2Q22 Earnings Fall 46% without Incorporating One-Time Gain from TIDLOR

Bank of Ayudhya Public Company Limited (SET: BAY) announced its 2Q22 consolidated financial statement through the Stock Exchange of Thailand as follows;

Quarter 2Q22 2Q21
Net Profit (Loss)
Million Baht
7,833.75 14,542.80
Earning Per Share
1.0600 1.9800
% Change -46.13
6 Months 2022 2021
Net Profit (Loss)
Million Baht
15,252.04 21,047.65
Earning Per Share (Baht) 2.0700 2.8600
% Change -27.54

BAY reported a net profit of 7,833 million baht in 2Q22, decreased 46.13% from a net profit of 14,542 million baht in 2Q21. The decline in net profit was mainly due to an incorporating the extraordinary gain on investments from the sales of shares in Ngern Tid Lor Public Company Limited (SET: TIDLOR) in 1H21.

On a normalized year on year basis, the operating profit increased by Baht 380 million, or 2.4% from 2Q21, largely attributed to higher net interest income. Meanwhile, the net profit increased by 23.2%, or Baht 1,477 million from 2Q21, driven by higher net interest income and lowered expected credit loss.

Incorporating the extraordinary gains on investment from TIDLOR transaction in 2Q21, operating profit decreased by Baht 9,852 million, or 37.7% in 2Q22, mainly resulting from the absence of aforementioned one-time gains, of which partially moderated by an improvement in net interest income.

Asset quality remained strong with the non-performing loan (NPL) ratio registering 2.11% at the end of June 2022, compared to 2.20% at the end of December 2021. Total conservative loan loss reserves were accumulated to Baht 91,518 million as of June 30, 2022, resulting in an elevated coverage ratio of 189.2%, improving from 184.2% as of end of December 2021.