BAY Reports Flat Growth in 3Q23 as Higher Provisions Offset Surging Interest Income

Bank of Ayudhya Public Company Limited (SET: BAY) has announced its 3Q23 consolidated financial statement through the Stock Exchange of Thailand as follows;

Quarter 3Q23 3Q22
Net Profit (Loss)
Million Baht
8,095.96 8,069.60
Earning Per Share
1.1000 1.1000
% Change 0.33
9 Months 2023 2022
Net Profit (Loss)
Million Baht
25,197.55 23,321.63
Earning Per Share (Baht) 3.43 3.17
% Change 8.04

BAY reported flat growth of net profit of Baht 8,095 million in 3Q23 only by 0.3% increase as BAY’s increase in operating income, offset by an increase in operating expenses and expected credit loss.  

BAY recorded Baht 25,933 million of net interest income in the third quarter, increased 21.3% from 3Q22. Meanwhile, operating income rose 19% to Baht 35,392 million.

As of September 30, 2023, total loans outstanding was Baht 2,016,837 million, representing an increase of Baht 67,428 million, or 3.5% from the end of December 2022, mainly driven by SME and retail loans from new overseas subsidiaries in 2Q/23. Excluding the newly acquired consumer finance volume, organic loan growth marked an increase of Baht 26,969 million, or 1.4%. 

Meanwhile, deposits decreased by Baht 32,464 million, or 1.8%, primarily due to a decline in savings deposits, offset by an increase in time deposits.

The non-performing loan (NPL) ratio was at 2.48%, compared with 2.32% at the end of December 2022. With prudential reserves, particularly for overseas subsidiaries, the credit cost in 9M/23 amounted to 149 bps. The loan loss coverage ratio stood at 155.1%, moderating from 167.4% at the end of December 2022.

The expected credit loss in the third quarter of 2023 amounted to Baht 9,052 million, equivalent to a credit cost of 181 bps, compared to 156 bps in the prior quarter and 127 bps in the same period of last year. The increase in expected credit loss cost in 3Q/23 on a quarter-on-quarter basis was mainly attributed to the new overseas acquisitions and the Bank’s continued prudential provisions.