BAY Reports THB8.4 Billion of Net Profit in 2Q23, Up 7.5%

Bank of Ayudhya Public Company Limited (SET: BAY) has announced its 2Q23 consolidated financial statement through the Stock Exchange of Thailand as follows;

Quarter 2Q23 2Q22
Net Profit (Loss)
Million Baht
8,425.30 7,833.75
Earning Per Share
1.1500 1.0600
% Change 7.55
6 Months 2023 2022
Net Profit (Loss)
Million Baht
17,101.59 15,252.04
Earning Per Share (Baht) 2.32 2.07
% Change 12.13

BAY reported a net profit of Baht 8,425 million in the second quarter of 2023, increased 7.55% from a net profit of Baht 7,833 million in 2Q2. The increase was largely driven by an increase in operating income which was offset by surging operating expenses and expected credit loss. 

Interest income in the second quarter of 2023 was recorded at Baht 32,504 million, an increase by Baht 2,755 million, or 13.4%, mainly due to higher interest income, driven by the growth in loans and interbank and money market outstanding together with interest rate rises; while being offset by an increase in interest expenses in line with the growth in the time deposit balance, higher deposit rates, and the normalization of the FIDF contribution rate. 

As of June 30, 2023, total loans outstanding was Baht 2,010,098 million, representing an increase of Baht 60,689 million, or 3.1% from the end of December 2022. Excluding the Baht 34,727 million consolidation of consumer finance businesses in the Philippines and Vietnam, loans grew by Baht 25,962 million or 1.3%. Meanwhile, deposits decreased by Baht 6,857 million, or 0.4%.

The expected credit loss in the second quarter of 2023 amounted to Baht 7,811 million, equivalent to a credit cost of 156 bps, compared to 116 bps in the prior quarter and 137 bps in the same period last year. On a quarter-on-quarter basis, the incremental amount of the expected credit loss cost in 2Q/23 was mainly driven by prudential provisions for overseas subsidiaries, particularly those of newly acquired consumer finance businesses and Hattha Bank Plc. in Cambodia. Excluding these aforementioned provisions, the expected credit loss remained largely unchanged from the prior quarter.

The non-performing loan (NPL) ratio was at 2.31%, compared with 2.32% at the end of December 2022. On account of Krungsri’s prudential risk management, credit cost in the second quarter of 2023 increased to 156 bps, maintaining a healthy loan loss coverage ratio at 161.7%, compared with 167.4% at the end of December 2022.