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Krungsri reports net profit of 6,505 million baht in first quarter 2021, underlining Krungsri’s strength and resiliency in support of customers and economic rehabilitation

Bangkok (20 April 2021) – Krungsri (Bank of Ayudhya PCL and its business units) posts
a first-quarter net profit of 6,505 million baht, underscoring 1.63% growth in commercial credits, comprising corporate and SME loans. And, despite the challenging operating environment, accentuating Krungsri’s prudential risk management, the Bank’s asset quality continued to remain strong, with the NPL ratio registering 1.99%, and the solid coverage ratio at 175.0%.

Key highlights of Krungsri’s consolidated first-quarter performance:
  • Net profit: Recorded at 6,505 million baht, representing a notable increase of 92.2% over-quarter or 3,120 million baht, driven largely by an absence of an additional management overlay reserved in the prior quarter. Compared to 1Q/20, the net profit decreased by 7.5% or 528 million baht, mainly due to a decrease in net interest income.
  • Loan growth: Increased by 0.3% or 6,365 million baht over-quarter. Commercial credits, comprising SME and corporate loans, grew at 1.63%, while retail loans contracted by 1.0%, resulting from the seasonal repayment and protracted tepid consumers’ confidence.
  • Deposit growth: Increased by 2.9% or 53,959 million baht over-quarter, largely driven by savings deposits.
  • Net interest margin (NIM): Recorded at 3.07%, compared to 3.14% in the previous quarter.
  • Non-interest income: Decreased by 256 million baht or 2.9% over-quarter, mainly resulting from a decrease in net fees and service income from higher seasonal retail business volumes observed in the previous quarter.
  • Cost to income ratio: Resonating with the Bank’s ongoing productivity enhancement and expense management, Krungsri’s cost to income ratio improved meaningfully to 43.8%, compared to 46.5% in 4Q/20.
  • Non-performing loan (NPL) ratio: Improved to 1.99%, compared to 2.00% at the end of December 2020.
  • Coverage ratio: Remained high at 175.0%, compared to 175.1% at the end of December 2020.
  • Capital adequacy ratio (Bank only): Recorded at 17.85%, compared to 17.92% at the end of December 2020.

Krungsri President and Chief Executive Officer Mr. Seiichiro Akita
, said “Governed by Krungsri’s prudential priority amid ongoing challenges, our commercial loans portfolio continued to grow at a rate of 1.63% for the first quarter of 2021, attributed to liquidity and credit provisions to both corporate and SME customers in support for business and economic rehabilitation.”

“Notwithstanding the resurgence of new wave of coronavirus pandemic in early April 2021, the Thai economic recovery momentum in 1Q/21 continued to be supported by the expansion in exports, together with the economic stimulus measures to boost domestic spending. This resurgence posts significant risks to the domestic economy and tourism sector recovery. Krungsri thus recently revised 2021 GDP growth forecast to 2.2% from 2.5%.”

“Amid the uncertainties surrounding the Thai banking sector and economy caused by the pandemic, Krungsri will continue our vital role as a responsible financial service provider, focusing on the year’s priorities, namely, reigniting the economy, and supporting the recovery of our customers, both corporate and SME, as well as the greater Thai society at large. We are also accelerating digitalization in our operations for greater efficiency and productivity, while continuing to enhance the customer experience.”

As of 31 March 2021, Krungsri, Thailand’s fifth largest bank in terms of assets, loans and deposits, and one of Thailand’s five Domestic Systemically Important Banks (D-SIBs), reported 1.84 trillion baht in loans, 1.89 trillion baht in deposits, and 2.7 trillion baht in total assets. The Bank’s capital (Bank only) was strong at 276 billion baht, equivalent to 17.85% of risk-weighted assets, with 12.80% in common equity tier 1 capital.

About Krungsri
Krungsri (Bank of Ayudhya PCL and its group companies) is the fifth largest financial group in Thailand in terms of assets, loans, and deposits, and one of Thailand’s five Domestic Systemically Important Banks (D-SIBs) with 76 years of history in the country. Krungsri is a strategic member of the Mitsubishi UFJ Financial Group (MUFG), Japan’s largest financial group and one of the world’s largest financial organizations. Krungsri provides a comprehensive range of banking, consumer finance, investment, asset management, and other financial products and services to individual consumers, SMEs, and large corporations through 665 domestic branches (626 Banking Branches and 39 Auto Business Branches) and over 32,216 service outlets nationwide. The Krungsri Group is the largest card issuer in Thailand with 9.5 million credit cards, sales finance, and personal loan accounts in its portfolio; a major automobile financing service provider (Krungsri Auto); one of the fastest growing asset management companies (Krungsri Asset Management); and a pioneer in microfinance (Ngern Tid Lor).

Krungsri is strongly committed to the highest level of integrity in conducting its business. All Krungsri Group companies have been awarded accreditation from the Private Sector Collective Action Coalition Against Corruption (CAC) in collaboration with industry peers and stakeholders on a zero tolerance approach to corruption.

About MUFG (Mitsubishi UFJ Financial Group, Inc.) 
Mitsubishi UFJ Financial Group, Inc. (MUFG) is one of the world’s leading financial groups. Headquartered in Tokyo with over 360 years of history, MUFG is a global network with over 2,700 offices in more than 50 markets. The Group has over 180,000 employees, and offers services including commercial banking, trust banking, securities, credit cards, consumer finance, asset management, and leasing. The Group aims to “be the world’s most trusted financial group” through close collaboration among our operating companies and flexibly respond to all of the financial needs of our customers, serving society, and fostering shared and sustainable growth for a better world. MUFG’s shares trade on the Tokyo, Nagoya, and New York stock exchanges. For more information, visit

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