Bangkok: Krungsri Bank has reported a robust 14.4% increase in net profit for the first quarter of 2026, amounting to 8,618 million baht. This surge marks a significant rise from the first quarter of the previous year, driven largely by strong net interest income and growth in non-interest income, aided by the consolidation of TIDLOR's financial statements.
According to Thai News Agency, Mr. Kenichi Yamato, President and CEO of Bank of Ayutthaya Public Company Limited (Krungsri), acknowledged the challenges posed by global economic pressures, structural vulnerabilities within the country, and pressure on the interest rate spread due to several policy interest rate cuts. Despite these hurdles, Krungsri Group achieved satisfactory results, underpinned by their disciplined approach to core strategies such as quality loan growth, efficient asset and liability management, cost control, and prudent risk management. The bank also proactively set aside provisions for expected credit losses (ECL) in light of escalating macroeconomic risks from the Middle East conflict.
Looking forward, Mr. Kenichi indicated that the Thai economy faces several pressures, including geopolitical tensions, US tariff policy, limited fiscal space, and structural challenges like high household debt and stagnant competitiveness in certain industries. These factors might impose downside risks to economic growth for the rest of the year. However, the bank forecasts a modest economic growth rate of 1.5-1.7% for 2026.
In terms of financial performance, Krungsri reported a 1.2% decrease in total loans, primarily due to seasonal loan repayments and weaker domestic demand. Nonetheless, the bank saw a 2.5% growth in loans in the ASEAN region, showcasing the benefits of geographic diversification. Deposits also decreased by 1.8%, while the net interest margin improved to 4.61% from 4.10%. Non-interest income saw an 18.4% increase, bolstered by gains from the bank and TIDLOR, as well as from financial instruments and recovered bad debts.
Krungsri's expense-to-income ratio improved to 45.2%, with a non-performing loan (NPL) ratio of 3.34%. The bank's capital adequacy ratio remained stable at 20.65%, compared to 20.69% at the end of December 2025.