BAY’s 2Q Earnings Slightly Decrease by 7% to ฿6.5Bn as ECL Dips 17.5%

BAY’s 2Q Earnings Slightly Decrease by 7% to ฿6.5Bn as ECL Dips 17.5% QoQ.

Bank of Ayudhya Public Company Limited (BAY) has announced its 2Q20 consolidated financial statement through the Stock Exchange of Thailand as follows;

BAY reported a net profit of 6,507 million baht in 2Q20, decreased 7.17% when compared to a net profit of 7,010 million baht in 2Q19, largely attributed to lower operating profit, partially offset by a decrease in expected credit losses (ECL).

In 2Q20, the operating profit was Baht 16,110 million, a decrease of Baht 2,143 million, or 11.7% from 1Q20, driven by lower net interest income due largely to lowered lending rates and lowered non-interest income, corresponding to unfavorable economic conditions.

Interest income in 2Q20 was recorded at Baht 27,271 million, decreased by Baht 174 million, or 0.6%. Interest expenses significantly reduced by Baht 1,830 million, or 21.1% from 2Q19. Consequently, net interest income increased by Baht 1,656 million, or 8.8% from 2Q19.


The expected credit loss in 2Q20 amounted to Baht 7,845 million, a decrease of Baht 1,665 million, or 17.5%, from 1Q20, largely due to regulatory forbearances from both the Emergency Decree on Financial Assistance to Small and Medium-sized Enterprises Affected by the coronavirus pandemic, and the Bank of Thailand’s circulars on both special debt restructuring and debt moratorium to swiftly alleviate the impacts of the coronavirus outbreak on households and businesses that suspended the loan classification at the same status as that recorded prior to the program.

Notwithstanding the aforementioned leniency, the Bank continued to accumulate reserves for ECL impairment based on the loan repayment status in adherence to TFRS 9 standards.


The non-performing loan (NPL) ratio rose to 2.20% at the end of June 2020, compared to 1.98% at the end of 2019.