Company Coverage
Bank of Ayudhya (BAY TB) 2Q26: Results In Line; Loan Portfolio Expanded QOQ
BUY (Maintained)
Current price:
Target price:
Upside:
Bt45.75
Bt50.00
+9.29%
Analyst
Analyst
Panjarat Thaweesriprasert
Highlights
- BAY reported a 2Q26 net profit of Bt8.3b, flat yoy but down 4% qoq.
- Credit costs decreased qoq.
Maintain BUY with a target price of Bt50.00.
Analysis
- 2Q26 results in line. Bank of Ayudhya (BAY) posted a 2Q26 net profit of Bt8.3b, flat yoy but declining 4% qoq. The results are in line with our forecasts. The bank’s net interest income (NII) increased 11% yoy but was flat qoq in 2Q26. NIM rose from 4.61% in 1Q26 to 4.65% in 2Q26. BAY’s pre-provision operating profit rose 7% yoy but dropped 3% qoq in 2Q26.
- Loan portfolio grew qoq in 2Q26. BAY reported outstanding loans of around Bt1.95t in 2Q26, increasing 4% yoy and 1.6% qoq. Corporate loan increased exposure from 35% to 37% in 2Q26. In 1H26, total loan portfolio grew 0.4% yoy. Excluding the accounting deconsolidation of PT Home Credit Indonesia (HCID), total loans increased by Bt15.3b, or 0.8% in 1H26. In compliance with OJK’s (Otoritas Jasa Keuangan), Indonesia’s Financial Services Authority, 2024 regulation on Financial Conglomeration Holding Companies, BAY reclassified HCID from a subsidiary to an associate, effective 24 Jun 26. As a result, HCID's financial statements will be recognised under the equity method instead of full consolidation.
- 2Q26 results beat. TMBThanachart Bank (TTB) posted 2Q26 net profit of Bt5.51b (+10% yoy, +7% qoq). The results beat our and consensus estimates by 6% and 7% respectively. Excluding provisions, pre-provision operating profit (PPOP) increased by 2% yoy and 2% qoq.
- Loan portfolio grew qoq. Loan portfolio contracted 1.8% yoy but expanded 0.5% qoq in 2Q26. Net-interest income (NII) declined 9% yoy and 1% qoq. NIM slightly increased to 3.03% in 2Q26 from 3.02% in 1Q26. Non-interest income (non-II) increased 40% yoy and 11% qoq.
High-yield loans will be key drivers of NIM. TTB reiterated its commitment to growing its loan portfolio, with a focus on steering the loan mix toward highyield retail loan products. TTB has applied a risk-based pricing model to Cash2Go to acquire higher-quality, higher-yield loans. Meanwhile, the commercial loan segment remains selective, specifically targeting corporate
energy clients with lower risk and connections to solar farm projects to achieve growth.
Highlights
- BAY reported a 2Q26 net profit of Bt8.3b, flat yoy but down 4% qoq.
- Credit costs decreased qoq.
Maintain BUY with a target price of Bt50.00.
Analysis
- 2Q26 results in line. Bank of Ayudhya (BAY) posted a 2Q26 net profit of Bt8.3b, flat yoy but declining 4% qoq. The results are in line with our forecasts. The bank’s net interest income (NII) increased 11% yoy but was flat qoq in 2Q26. NIM rose from 4.61% in 1Q26 to 4.65% in 2Q26. BAY’s pre-provision operating profit rose 7% yoy but dropped 3% qoq in 2Q26.
- Loan portfolio grew qoq in 2Q26. BAY reported outstanding loans of around Bt1.95t in 2Q26, increasing 4% yoy and 1.6% qoq. Corporate loan increased exposure from 35% to 37% in 2Q26. In 1H26, total loan portfolio grew 0.4% yoy. Excluding the accounting deconsolidation of PT Home Credit Indonesia (HCID), total loans increased by Bt15.3b, or 0.8% in 1H26. In compliance with OJK’s (Otoritas Jasa Keuangan), Indonesia’s Financial Services Authority, 2024 regulation on Financial Conglomeration Holding Companies, BAY reclassified HCID from a subsidiary to an associate, effective 24 Jun 26. As a result, HCID's financial statements will be recognised under the equity method instead of full consolidation.
- 2Q26 results beat. TMBThanachart Bank (TTB) posted 2Q26 net profit of Bt5.51b (+10% yoy, +7% qoq). The results beat our and consensus estimates by 6% and 7% respectively. Excluding provisions, pre-provision operating profit (PPOP) increased by 2% yoy and 2% qoq.
- Loan portfolio grew qoq. Loan portfolio contracted 1.8% yoy but expanded 0.5% qoq in 2Q26. Net-interest income (NII) declined 9% yoy and 1% qoq. NIM slightly increased to 3.03% in 2Q26 from 3.02% in 1Q26. Non-interest income (non-II) increased 40% yoy and 11% qoq.
High-yield loans will be key drivers of NIM. TTB reiterated its commitment to growing its loan portfolio, with a focus on steering the loan mix toward highyield retail loan products. TTB has applied a risk-based pricing model to Cash2Go to acquire higher-quality, higher-yield loans. Meanwhile, the commercial loan segment remains selective, specifically targeting corporate
energy clients with lower risk and connections to solar farm projects to achieve growth.
BUY (Maintained)
Current price:
Target price:
Upside:
Bt45.75
Bt50.00
+9.29%
Analyst
Analyst
Panjarat Thaweesriprasert
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