Bangkok--20 Oct--TMB
FIRST NINE-MONTH PROFIT UP BY 28%OVER SAME PERIOD LAST YEAR TO REACH THB3.041 BILLION
TMB and its subsidiaries reported a net profit of THB750 million, an increase by 3.2% compared to 3Q2011. The total profit for the first nine months of the fiscal year reached THB3.014 billion, an increase by 27.7% compared to the same period last year, Mr. Boontuck Wungcharoen, TMB CEO, announced today.
Mr. Boontuck said the Bank’s core operation in the third quarter continued to improve. Net interest margin rose to 2.49% from 2.45% in 2Q2011 and from 2.03% in 3Q2010 contributing to a net interest income increase of 6.1% from 2Q2011 and 46.5% from 3Q2010 while core non-interest income grew by 20.2% from 2Q2011 and 38.3% compared to 3Q2010.
Total deposits increased by 9.4% from the end of last year. The increase in deposits was supported by innovative product launches and the positive results of channel enhancement efforts to create more convenient access to the Bank’s products and services for customers. Performing loans consistently moves into a favorable direction which is in line with the Bank’s target, with an increase by 8.8% compared to the end of last year. In 3Q2011, the Bank remained prudent by maintaining a high level of liquidity, with a loan to deposit and BE ratio of 84%.
Compared to 2Q2011, overall asset quality continued to improve in 3Q2011. The Bank’s non-performing loans (NPLs) dropped by THB885 million to be at THB29.137 billion while consolidated NPLs declined by THB986 million to be at THB31.647 billion. NPL ratio as at the end of the quarter was at 6.1% on a bank only basis and 6.6% on a consolidated basis. In 3Q2011, the Bank also set aside THB1.747 billion provisions for bad debt and doubtful accounts. The significant increase of provisions was a result of the Bank’s prudent approach taken in light of economic uncertainties and global financial crisis which could possibly impact the Thai economy. Consequently, the ratio of allowance for doubtful accounts to total NPL rose to 71% from 64% in previous quarter.
TMB’s financial position remains strong. As at the end of 3Q2011, the capital adequacy ratio and Tier I were at 16.9% and 11.7%, respectively.
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