Bangkok--19 Jul--TMB
TMB announced a net profit of THB1,263 million for the second quarter of 2012 — an increase by 22.4% from 1Q12 or by 5.7% from 2Q11. The net earnings of the Bank for the first half of the year reached THB2,295 million.
Mr. Boontuck Wungcharoen, CEO of TMB, said, TMB’s core operation continued to improve. The Bank was able to enhance both of its interest income and non-interest income. The Bank’s Net Interest Margin (NIM) increased to 2.67%, compared to 2.51% in 1Q12 and 2.45% in 2Q11 due to the increase in loans and well-managed cost of funds. In addition, net fee and service income grew by 16.4% from 1Q12, mainly driven by commissions generated by the bancassurance business and credit-related transactions.
Total loans grew by 5.1% and 6.0% from the end of 1Q12 and the end of 2011 respectively. The growth was well supported by the increases in corporate and SME loans, with the highest growth volume in the small enterprise segment, with a rise of approximately THB5 billion in 2Q12 and THB10 billion in the first half of 2012.
The Bank’s total deposits rose by 7.0% from 1Q12 or by 7.2% from the end of last year. The continuous growth in deposit volume was largely due to the Make THE Difference campaign products and services, such as “TMB No Fixed” and “ME by TMB” coupled with “One Bank One Account” which empowers business customers to have increased efficiency and enjoy simplicity as well as convenience like never before when executing their banking transactions at TMB branches nationwide.
In terms of liquidity management, TMB has continued its prudent policy by maintaining a high level of liquidity. The Bank’s Loan to Deposit & BE ratio (LDR) was at 86.5% at the end of 2Q12.
In 2Q2012, non-performing loans of the Bank and its subsidiaries declined by THB2,301 million from the end of 1Q12 to THB28,169 million while NPL ratio on a consolidated basis dropped from 5.84% to 5.58%. On a bank only basis, NPL ratio was reduced to 5.17%. A provision of THB932 million was set aside in this quarter, raising the Bank’s coverage ratio to 79.0% from 74.0% at the end of 1Q12.
TMB maintained strong capital adequacy. As at the end of 2Q12, the Bank’s capital adequacy ratio (CAR) stood at 18.7% while Tier 1 capital ratio was at 11.5%