BAY Records a 123% Increase in 2Q21 Earnings from Significant Gains of TIDLOR Transaction

Bank of Ayudhya Public Company Limited (BAY) has announced its 2Q21 consolidated financial statement through the Stock Exchange of Thailand as follows;

BAY recorded a net profit of 14,542 million baht in 2Q21, increased 123.47% compared to a net profit of 6,507 million baht in 2Q20.

 

The operating profit increased by 10,050 million baht or 62.4%, mainly resulting from higher non-interest income from extraordinary gains on investment, offset by lowered net interest income attributed to a decrease in outstanding balance on loans and multiple lending rate cuts, together with interest rate ceiling reductions for consumer finance loans.

 

interest income decreased by 2,255 million baht or 8.3%. Interest on loans decreased by 1,830 million baht or 10.4%, reflecting lowered outstanding balance on loans, lending rate cuts, and interest rate ceiling reductions for consumer finance loans.

Interest on hire purchase and financial lease decreased by 472 million baht or 5.5%, resulting from auto hire purchase portfolio contraction. Meanwhile, Interest on interbank and money market items increased by 120 million baht or 19.6%, mainly due to a higher repurchase agreement balance.

 

total non-interest income increased by 12,067 million baht or 166.0%. The increase was mainly due to gains on investments significantly increased by 10,798 million baht or 89,983.3% driven significantly by the gains from the TIDLOR transaction of 10,727 million baht.

 

BAY continued to provide conservative provisions to cushion against the downside risks stemming from the more prolonged and severe pandemic owing to viral mutations. The expected credit loss in 2Q21amounted to 8,028 million baht, equivalent to a credit cost of 177basis points, an increase of 714 million baht or 9.8%, from 1Q21.

 

The non-performing loan (NPL) ratio modestly increased to 2.03% at the end of June 2021, from 2.00% at the end of December 2020.