Thailand’s Krungsri net profit up 7.2% in 2023

Contributions from overseas businesses drove up loan growth and fee income.

Thailand’s Krungsri (Bank of Ayudhya) saw its net profit grow 7.2% to THB32.93b in 2023, thanks to an increase in net interest income and fees from its overseas consumer finance businesses.

Loan growth was 3.5% for 2023, driven by a growth in domestic commercial loans as well as retail loan expansions. Retail loans from overseas subsidiaries notably contributed as well, with small and medium enterprises (SME) loans growing by a robust 11.3%.

Excluding the newly acquired overseas business volume, organic loan growth marked an increase of THB16.61b or 0.9%.

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Deposits are up 1.9% to THB34.9b, primarily from an increase in time deposits, offset by a decline in savings deposits.

The net interest margin (NIM) rose to 3.91% from 3.45%, propelled by an improvement in the yield on earning assets, and partly driven by contributions from overseas businesses.

Non-interest income also rose 21.2%, or THB6.92t, due to net fees and service income which registered notable contributions from overseas subsidiaries, other operating income, and bad debt recoveries.