Krungsri continued to prudently maintain a conservative level of provision to cushion against potential economic uncertainties, boosting its coverage ratio to a record high of 184.2% in December 2021, while the non-performing loan ratio was low at 2.20%. Concurrently, Krungsri registered strong corporate and SME loan growth for 2021 at 6.6% and 3.9%, respectively, reflecting the gradual economic recovery and resumption of working and investment expenditure demand, together with the liquidity support extended to SME customers.
Highlights of Krungsri's consolidated 2021 performance:
- Net profit: Recorded at 33,794 million baht, representing a robust increase of 46.7%, or 10,754 million baht from 2020, driven by the gain on investments from the sales of shares in Ngern Tid Lor Public Company Limited (TIDLOR) in 2Q/21. Excluding the one-time gain from TIDLOR transaction, a normalized net profit of 25,609 million baht was registered in 2021, representing an increase of 11.1%, or 2,569 million baht, from 2020.
- Loans: Increased by 3.1%, or 57,441 million baht from December 2020, with Corporate and SME loans growing by 6.6% and 3.9%, respectively.
- Deposits: Decreased by 3.0% from the end of December 2020, largely driven by the Bank's proactive management to optimize liquidity position and improve the CASA-mix while lowering the time deposit volume.
- Net interest margin (NIM): Underlining Krungsri's actions in lowering lending rates in support of economic recovery and business rehabilitation, NIM moderated to 3.24% from 3.47% in 2020.
- Non-interest income: Increased significantly by 12,243 million baht, or 37.5%, from 2020, mainly driven by the recognition of gains on investments from the sales of shares in TIDLOR.
- Cost to income ratio: Amidst the prolonged coronavirus pandemic, Krungsri continued to pursue efficient expense management. The normalized cost to income ratio was recorded at 43.2% in 2021
- Non-performing loan (NPL) ratio: Registered 2.20% at the end of December 2021, compared to 2.00% at the end of December 2020. Krungsri continued to prudently maintain a conservative level of provision at 167 basis points of credit cost to cushion against potential uncertainties.
- Coverage ratio: Reached a record high of 184.2%, improving from 175.1% at the end of December 2020.
- Capital adequacy ratio (Bank only): Recorded at 18.53%, increasing from 17.92% at the end of December 2020.
Krungsri President and Chief Executive Officer Mr. Seiichiro Akita, said "Krungsri, amidst the adverse operating environment, continued to act with the spirit and responsibilities of D-SIB achieving the twin objectives of continually strengthening our financial resiliency and robustness while advancing assistance to impacted businesses and households with relief measures/programs in the short term and concurrently sustaining loan demand in support of business rehabilitation and economic recovery in the longer term."
"Multiple waves of COVID-19 infections during the year and corresponding containment measures led to the slowdown in both economic and business activities, thus delaying the economic recovery in 2021. The Thai economy is expected to grow 1.2% in 2021 and continue to expand by 3.7% in 2022."
"Krungsri, as a D-SIB, will continue to pursue our important intermediary functions in assisting borrowers and accommodating loan demand, including households' and SMEs' access to liquidity in support of sustainable business and economic recovery."
As of 31 December 2021, Krungsri, Thailand's fifth largest bank in terms of assets, loans and deposits, and one of Thailand's Domestic Systemically Important Banks (D-SIBs), reported 1.89 trillion baht in loans, 1.78 trillion baht in deposits, and 2.5 trillion baht in total assets. Krungsri's capital (Bank only) was strong at 291.79 billion baht, equivalent to 18.53% of risk-weighted assets, with 13.56% in common equity tier 1 capital.
Source: Bank of Ayudhya PCL