BAY Reports a Slight Drop of 3Q Profit by 6.8%, Recording ฿6.1Bn for the Quarter

Bank of Ayudhya Public Company Limited (BAY) has reported its 3Q20 consolidated financial statement through the Stock Exchange of Thailand as follows;

BAY recorded a net profit of 6,114 million baht in 3Q20, decreased 6.85% compared to a net profit of 6,564 million baht in 3Q19. The decrease was mainly resulting from a decrease in net fees and service income and higher provisioning expenses corresponding to an acute economic slowdown.

Net interest income was recorded at 19,629 million baht, representing a decrease of 789 million baht, or 3.9% from 2Q20, mainly from a decrease in interest on loans by 6.4% due to the lending rate cuts and the ceiling interest rate reduction for consumer finance loans.

In 3Q20, the operating profit was 16,381 million baht, an increase of 271 million baht, or 1.7% from 2Q20, driven by higher non-interest income, mirroring improved economic activities, offset by a decrease in net interest income, corresponding to the full quarter impact of the lending rate cuts.


The expected credit loss in 3Q20 amounted to 8,734 million baht, an increase of 1,792 million baht, or 25.8%, from 2Q20, corresponding to an increase in stage 3 (non-performing loans), mainly from the retail segment, and the management overlay which reflects a forward-looking assumption to take into account the macro-economic outlook and potential impacts on our loan portfolio after the expiration of a debt payment holiday program.

The non-performing loan (NPL) ratio stood at 2.24% at the end of September 2020, compared to 1.98% at the end of 2019.

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