Bangkok--16 Oct--TMB
TMB today announced its financial results for 3Q2012 with a net profit of THB1,437 million, representing an increase by 13.8% compared to 2Q2011 and 91.6% year on year. The Bank sees the first nine months net profit up by 22.7% year on year to be at THB3,731 million.
Mr. Boontuck Wungcharoen, CEO of TMB said, “the Bank’s core operation continued to be on a steady growth trend in the third quarter of 2012, backed by both interest income and non-interest income growth. Net interest margin (NIM) rose to 2.82% from 2.68% in 2Q2012 and 2.49% in 3Q2011 due to effective growth in lending, especially in SMEs, as a result of the well-received products and cost of fund management which included the development of new deposit products which serve customer needs for long-term savings and daily transactions and, at the same time, helps connect customers to their communities to create them real banking value.”
Net fee income jumped by 7% QoQ and 25.6% YoY due to significant increase in bancassurance sales and credit fee. Cost to income ratio was reduced to 54.1% from 56.9%, reflecting continuing operating efficiency improvement.
Total loans rose by 3.4% QoQ and 9.6% YoY as a result of growing lending in the retail, small and medium business segments. In 3Q2012, total small and medium business loan volume expanded by THB12,000 million while retail lending volume rose THB3,200 million.
Compared to the end of 2011, the Bank’s total deposits increased by 5.3%, primarily due to the increase in retail deposits, especially from the launch of “TMB No Fixed Account”. However, the Bank's total deposits decreased by 1.7% QoQ. This is due to the movement of a large customer current account while total retail and business deposits were quite stable.
In this quarter, total non-performing loans of the Bank and its subsidiaries remained unchanged from the end of 2Q2012, with a total NPL value of THB28,192 million. However, the NPL ratio of the Bank and its subsidiaries decreased from 5.58% to 5.44%. The NPL Ratio for the Bank only was 5.06%. The Bank has allocated a total of THB1,195 million as a reserve to non-performing loans. Consequently, the Bank’s coverage ratio rose to 83.3% from 79.5% at the end of 2Q2012.
At the end of 3Q2012, the Bank’s financial position remained strong, with a capital adequacy ratio (CAR) of 18.9% and a Tier 1 capital ratio of 11.63%.