Bank of Ayudhya Public Company Limited (SET: BAY) delivered a resilient operational performance in the third quarter of 2026, navigating a low-interest-rate environment and subdued domestic demand.
The bank reported a net profit of Baht 8,660 million for 3Q26, down 1.4% year-on-year from Baht 8,783 million in 3Q25. This marginal decline was primarily attributable to a high comparative base in 3Q25, which featured a non-recurring gain from remeasuring its TIDLOR investment. Stripping out this one-time item, core earnings demonstrated solid sustainability, underpinned by expanding net interest income and prudent risk management.
Total operating income eased 2.5% year-on-year to Baht 41,865 million. Nevertheless, net interest income (NII) grew 4.1% to Baht 29,074 million. Top-line interest growth was driven by proactive funding cost optimization, which slashed interest expenses by 18.0% to Baht 7,679 million through disciplined deposit repricing. Consequently, the Net Interest Margin (NIM) expanded 15 basis points year-on-year to 4.66%.
Non-interest income fell 14.8% to Baht 12,791 million due to the absence of the prior year’s investment remeasurement gain, although net fee and service income rose 7.8% on strong domestic activity.
Efficiency gains and lower provisions further supported profitability. Operating expenses fell 9.8% year-on-year to Baht 19,148 million, benefiting from the absence of an overseas subsidiary goodwill impairment recorded in 3Q25 and bringing the cost-to-income ratio down to 45.7% from 49.4%.
Expected credit losses (ECL) decreased 3.0% to Baht 10,752 million (credit cost of 222 bps). Asset quality strengthened as the non-performing loan (NPL) ratio improved to 3.19% from 3.49% in 3Q25, while the loan loss coverage ratio rose to a robust 143.1%.
Total loans stood at Baht 1,935,878 million, remaining flat quarter-on-quarter. Robust expansion in Thai and multinational corporate lending (+9.7% YTD) and ASEAN operations offset contractions in SME (-5.9% YTD) and retail loans, highlighting Krungsri’s strategic focus on selective quality growth.
