Bangkok--18 Apr--TMB
TMB reports a net profit of THB1,817 million for the first quarter of 2013, an increase of 125% compared to THB809 million in 1Q2012. The earnings figure of 1Q2012 has been restated for comparison, with the adjustment of income tax. The strong net profit is a result of continuing performance improvement driven by products and services which create real value and serve the needs of customers.
Mr. Boontuck Wungcharoen, TMB CEO said, “TMB’s stronger financial performance for 1Q2013 was attributed to the rise of operating income by 22% compared with 1Q2012 and our efficient cost management which resulted in a marginal increase of operating cost by only 3%. We have managed to raise both interest and non-interest incomes. In this quarter, net interest margin (NIM) went up to 2.95% or 44 bps from 2.51% compared to the same period of last year due to effective deposit cost management and the increase of return on lending. Net interest income rose by 21% from last year. Meanwhile, the Bank gained 44% higher on fee income due to the strong market reception of TMB transactional products and services in accordance with TMB strategic direction to create real value for customers. The increased fee income was generated from the mutual funds, bancassurnce and lending businesses.”
At the end of 1Q2013, TMB consolidated financial statements showed a reduction of NPLs by about THB230 million compared to the end of 2012. As a result, NPL ratio declined to 4.0% from 4.1% at the end of last year. With an increase in total allowance for doubtful accounts, coverage ratio also increased from 113% at end of 2012 to 118% in this quarter. Performing loans increased from the end of last year by 0.4%. SME loan grew steadily while some large corporate customers repaid short-term loans. When compared to 1Q2012, the increase of performing loans was 17%. Deposits were relatively stable from end of 2012 but increased 10% when compared to 1Q2012.
TMB consistently upholds its prudent liquidity management policies and maintains a high level of liquidity. As at the end of 1Q2013, the Bank’s Loan to Deposit Ratio was at 92%. The Bank reports strong capital base under Basel III calculation. TMB’s Capital Adequacy Ratio (CAR) and Tier I as of March 2013 were 17.3% and 11.5%.