A 94% growth from 1Q/08
Bangkok, 21 July 2008: Bank of Ayudhya Public Company Limited announced a significant improvement in its performance for the second quarter of the year. The Bank and its subsidiaries recorded an operating profit before provisioning for doubtful accounts and taxes of Baht 3.74 billion, a 44% and 186% increase as compared to 1Q/08 and 2Q/07, respectively. After setting aside Baht 1.45 billion in provisions and Baht 0.30 billion for taxes, the Bank recorded a net profit of Baht 2.00 billion, a 94% growth as compared to last quarter and a significant improvement when compared to the same period last year in which a net loss was reported as a result of IAS 39 provisioning.
Major contributors to the favorable 2Q/08 performance when compared to the prior year are: a 45% increase in net interest income, a 48% increase in non-interest income while non-interest expenses only grew 8%. In addition, the Bank achieved its target in asset quality improvement by successful sales of NPL. For 2Q/08, in line with its plan, the bank and its subsidiaries reported a Baht 5.72 billion reduction in NPL bringing the outstanding NPL to Baht 64.91 billion or 11.1% of total loans, down from 15.5% and net NPL is 7.1% down from 10.2%.
For the first half 2008 performance, on a consolidated basis, the Bank posted an operating profit before provisioning for doubtful accounts and taxes of Baht 6.35 billion, a 61% increase as compared to the same period last year. After setting aside provisions and taxes, the Bank recorded a net profit of Baht 3.03 billion, compared to a loss of 7.83 billion in 1H/2007.
Mr. Tan Kong Khoon, President & CEO of Bank of Ayudhya, said, "We are pleased with the improvements achieved within the business in 2Q/08 as it reflects that our hard work and committed efforts are bearing fruit. We achieved our key business targets under pressure from business conditions that are becoming more challenging than originally forecast earlier this year.
The Bank's continued growth in 2Q/08 and 1H/08 is encouraging. This growth is a result of our investments to strengthen the foundation in 2007 that positioned us with an improved loan portfolio mix and more efficient work processes. We are confident that the processes we have put in place will continue to help us whether the tougher business conditions in the second half of the year." Mr. Tan Kong Khoon concluded.
As of June 30, 2008, on a consolidated basis, the bank recorded Baht 751.2 billion in total assets representing an increase of Baht 98.8 billion or 15% as compared to the end of 2007, Baht 540.3 billion in loans representing an increase of Baht 89.9 billion or 20%, and Baht 515.9 billion in deposits representing an increase of Baht 16.3 billion or 3%. The bank maintained a strong capital base with a BIS ratio of 17.4% and tier 1 capital of 13.1%.
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About Bank of Ayudhya Public Company Limited
Bank of Ayudhya Public Company Limited [symbol in SET: BAY], established on January 27, 1945, is the fifth largest commercial bank in terms of total assets in Thailand. BAY provides a full range of banking services to both its commercial and individual customers through 571 branches nationwide. On 3 January 2007, BAY and GE Money, a premiere global consumer financial services firm, have successfully become strategic partners. GE Money now holds 35% stake in BAY. Plans are underway to leverage the synergies of both BAY and GE Money in helping to achieve BAY's vision to become the most admired universal bank in Thailand.