← News feed
Krungsri 2Q26 Profit Holds Firm Amid Strong Revenue Growth and Prudent Provisioning
Affected tickers
Per-ticker News Sentiment Indicator
- MAJORother · neutral · high
The article discusses the financial performance of Bank of Ayudhya (BAY) and contains no information regarding Major Cineplex Group Public Company Limited (MAJOR).
- TIDLORother · neutral · high
The article discusses the financial performance of BAY and mentions the consolidation of TIDLOR loans as a contributor to the bank's net interest income and operating expenses.
- TOPother · neutral · high
The article discusses the financial performance of Bank of Ayudhya (BAY) and contains no information regarding Thai Oil Public Company Limited (TOP).
Article body
Bank of Ayudhya Public Company Limited (SET: BAY) delivered a resilient performance for the second quarter of 2026. The bank reported a net profit of Baht 8,294 million, remaining essentially unchanged from the Baht 8,295 million recorded in 2Q25. While the bottom line was flat, the result reflects a period of significant top-line expansion offset by higher operating costs and a cautious approach to risk management.
Operating income surged 11.4% year-on-year to Baht 42,143 million. A major driver of this growth was net interest income (NII), which rose 10.9% to Baht 28,756 million. This increase was underpinned by robust growth in the corporate and ASEAN loan portfolios, as well as the consolidation of higher-yielding TIDLOR loans. Complementing this, non-interest income climbed 12.5% to Baht 13,387 million, fueled by healthy net fees and service income from both domestic and regional operations.
However, these gains were countered by rising expenses. Operating expenses jumped 16.8% year-on-year to Baht 19,341 million, primarily due to the consolidation of TIDLOR and annual salary adjustments. Furthermore, the bank maintained a disciplined stance on asset quality, recording expected credit losses (ECL) of Baht 11,360 million, representing a 10.4% increase from 2Q25.
On the balance sheet, total loans outstanding stood at Baht 1,936,689 million as of June 30, 2026. Reported growth was 0.4% year-to-date, though this was impacted by the accounting deconsolidation of PT Home Credit Indonesia (HCID); excluding this impact, underlying loan growth was 0.8%.
Asset quality showed clear signs of improvement, with the NPL ratio falling to 3.08% from 3.39% a year earlier, aided by the sale of Baht 3,653 million in non-performing loans during the quarter. Consequently, the loan loss coverage ratio strengthened to 137.9%, up from 122.8% in 2Q25. With a solid Capital Adequacy Ratio of 20.20%, Krungsri remains well-positioned to navigate a moderating economic backdrop.