Bank of Ayudhya Public Company Limited (SET: BAY) sustained its performance momentum in the second quarter of 2025, recording a net profit of Baht 8,295 million. This represents a 1.0% increase compared to the Baht 8,209 million net profit in 2Q 2024. The improved results were largely attributed to lower expected credit loss (ECL) and reduced operating expenses.
Operating income, however, declined to Baht 37,825 million in 2Q 2025, down 4.2% from Baht 39,471 million in 2Q 2024. Net interest income decreased by 8.4% year-on-year to Baht 25,926 million, down from Baht 28,299 million in the same period last year. This decline was primarily due to lower interest on loans and the impact of a declining interest rate environment, along with reduced hire purchase and financial lease income amid a sluggish auto market.
Conversely, non-interest income increased by 6.5%, reaching Baht 11,899 million in 2Q 2025, up from Baht 11,172 million in 2Q 2024. This was mainly driven by higher gains on financial instruments measured at fair value through profit or loss (FVTPL), as well as other operating income.
Regarding credit quality, Krungsri demonstrated prudent management. The expected credit loss (ECL) for 2Q 2025 was Baht 10,290 million, a decrease of 12.9% from Baht 11,817 million in 2Q 2024. The credit cost—a measure of provisioning—also decreased to 220 basis points (bps) in 2Q 2025, from 237 bps in 2Q 2024.
Despite the improvement in provisions, the non-performing loan (NPL) ratio rose to 3.39% as of June 30, 2025, compared to 3.05% as of June 30, 2024. Gross NPLs increased to Baht 75,617 million, up from Baht 72,973 million in the prior year. The loan loss coverage ratio stood at 122.8% as of June 30, 2025, a decrease from 128.8% a year earlier.
Total loans outstanding as of June 30, 2025, amounted to Baht 1,866,038 million. The bank maintained a selective growth strategy, with moderate growth in corporate loans, while SME and retail segments experienced contraction. Loan growth for 2Q 2025 stood at -1.6%, compared to -0.4% in 2Q 2024.
Krungsri continues to monitor asset quality closely and support affected customers through responsible lending practices and pre-emptive debt restructuring.
