Krungsri reports first quarter 2024 profit of 7.54 billion baht, supporting growth momentum in the real economy with accuracy and prudence in risk management

Maintaining the momentum of economic and business growth, while fully adhering to the new responsible lending guidelines, SME loans continued to grow by 2.7% in 1Q24, offset by the seasonal contraction of loans to large companies and private individuals, resulting in a slight decline in total lending. loans by 0.9% from end-December 2023. Thanks to robust demand conditions in regional markets, Krungsri’s ASEAN loans increased by 4.0% in 1Q24.

Highlights of Krungsri’s consolidated performance in the first quarter of 2024:

• Net profit: Registered at 7,543 million baht for 1Q24, down 13.1%, or 1,133 million baht from 1Q23, largely driven by an increase in security provisions in the light of future uncertainty that could impact asset quality domestically and abroad, underscoring Krungsri’s rigorous and prudential risk management approach.
• Loans: Decreased 0.9%, or 17,252 million baht, as of end-December 2023, mainly due to the seasonal contraction in loans to large companies and individuals. Meanwhile, loans to SMEs and ASEAN continued to grow by 2.7% and 4.0% respectively.
• Deposits: Increased significantly by 8.9%, or 164,500 million baht as of end-December 2023, largely due to an increase in term deposits.
• Net Interest Margin (NIM): Recorded at 4.16%, up from 3.35% in 1Q/23, largely due to the expansion of the high yield segment’s outstanding balance due to the acquisitions of overseas consumer companies in 2Q /23 and 4Q/2023. 23, as well as an increase in interest rates on loans.
• Non-interest income: Increased 26.9%, or 2,383 million baht from 1Q23, mainly due to net fees and service revenue, from overseas consumer businesses in 2Q23 and 4Q20 23 have been taken over.
• Cost-to-income ratio: Well-controlled operating costs resulted in an improved cost-to-income ratio of 43.0%, compared to 44.4% in 1Q23.
• Non-performing loans (NPL) ratio: Recorded at 2.69%, compared to 2.53% at end-December 2023. With prudential reserves, mainly for foreign subsidiaries, credit costs in 1Q/24 amounted to 248 basis points. Excluding the ASEAN portfolio, the NPL ratio was 2.30%.
• Coverage ratio: Remained healthy at 141.5%.
• Capital adequacy ratio (banks only): Recorded at 18.08%, compared to 18.24% at end-December 2023.

President and Chief Executive Officer of Krungsri, Mr. Kenichi Yamato, said: “The continued economic momentum in the first quarter of 24, albeit at a slow pace, was driven in part by strong support from the service sector, particularly the tourism sector, recovery in private investment and production in certain sectors remained a slowdown in the 2024 budget, weighing on government spending, along with persistently high household debt, key headwinds for the period.

“Against these circumstances, Krungsri continued to proactively play our role in maintaining the momentum of economic and business growth, while fully adhering to the new responsible lending guidelines that came into effect early this year. We forecast the Thai economy to grow by 2.7% in 2024. , relatively faster than the previous year, in line with Krungsri’s loan growth target
3-5% for this year.”

As of March 31, 2024, Krungsri, Thailand’s fifth largest bank in terms of assets, loans and deposits, and one of Thailand’s domestic systemically important banks (D-SIBs), reported 2.00 trillion baht in loans, 2.00 trillion baht in deposits and 2.86 trillion baht in deposits. trillion baht in total assets. Krungsri’s capital (Bank only) was strong at 310.29 billion baht, equivalent to 18.08% of risk-weighted assets, with 13.44% in common equity tier 1 capital.