Bangkok--17 Apr--TMB
TMB today reports a net profit THB1,032 million for the first quarter of 2012, an increase by 6.5% compared to the previous quarter and a decline by 5.9% compared to the first quarter of 2011.
Mr. Boontuck Wungcharoen, Chief Executive Officer of TMB, said the Bank’s core operation continues to be on a positive trend. Net interest margin (NIM) increased to 2.51% in 1Q2012 from 2.46% in 4Q2011. Total income was on the rise in terms of both interest and non-interest income. Consequently, cost to income ratio dropped to 59% compared to 76.55% in 4Q2011 and 67% in 1Q2011, reflecting continuing improvement in management efficiency.
In the first quarter of 2012, total loan rose by 0.8% from the end of 2012, mainly attributed to the growth in SME lending. Despite an offset by the maturity of some term deposit accounts, total deposits grew by 0.2%. This was attributed to the growth inthe Bank's new deposit product category which generates customers more benefits and is in line with the Bank’s Make THE Difference philosophy. These are, for example, “TMB No Fixed” deposit and “ME No Fixed” from the newly-launched “ME by TMB” do-it-yourself banking service. Both are unique that they have a similar feature to that of the term deposit which offers higher interest rate than regular savings product, but provide flexibility for depositors to withdraw money when need be without any interest rate penalty.
Under a prudent liquidity management policy, the Bank maintained a loan to deposit and B/E ratio of 87.0%
Non-performing loan was at THB30,470 million, a slight increase by THB642 million from the end of 2012 due to a default in the corporate segment. The impact from the recent floods on total NPL was marginal. NPL ratio of consolidated accounts stood at 5.8% compared to 5.7% at the end of 2012 while the ratio on a non-consolidated basis was at 5.4%.
The Bank allocated a reserve of THB1,242 million in 1Q2012, raising the coverage ratio to 74% from 73% at the end of 2011.
The Bank’s capital base remains strong with a capital adequacy ratio of 16.2% of which 11.2% is Tier 1.