Bangkok--19 Jul--TMB
TMB pre-provision operating profit grows 53% YoY to THB7,137 million in 1H13 and after cyclical buffer provision setting, net profit rises 16% YoY to THB2,068 million
TMB today announced the Bank and subsidiaries’ second quarter and half year financial results with a pre-provision operating profit of THB7,137 million — an increase of 53% compared to the same period of last year. Net fee and service income expanded 36.7% while net interest income grew 20.5%, with net interest margingrowing to be at 2.97%.
Mr. Boontuck Wungcharoen, CEO of TMB, said, “During the first six month of 2013, TMB has shown continuing improvement in performance due to our focus on improving customer service and offering transactional banking products and services which truly meet customer needs. Customers have shown trust in TMB and engaged in using multiple TMB products. As a result, net interest margin (NIM) increased to 2.97% from 2.59%. Net interest income and net fee and income rose by 20.5% and 36.7% respectively. Subsequently, total operating income grew by 23.5% compared to the same period last year. At the same time, our emphasis on increasing the overall operating efficiency has controlled the cost to rise only by 4.0%. TMB has gained a pre-provision operating profit of THB7,173 million for the first half of 2013 or an increase of 53% from the same period of last year.”
The Bank of Thailand recently recommends Thai commercial banks to raise the level of reserve for performing loans as a countercyclical buffer to strengthen the overall Thai banks’ financial position. TMB, therefore, set an extra provision of THB4,143 million, making the total provision for the first half to be at THB4,676million. The net profit after provision of TMB and its subsidiaries was at THB2,068 million or an increase of 16% compared to last year.
TMB overall asset quality continues to improve in the first six months of 2013, with total loans growing by 2.5%. SME loan growth remained strong at a rate of 22%. The NPL ratio further declined to be at 3.7% for the Bank only and 4.0% on a consolidated basis. The extra provision has raised the coverage ratio of the Bank and subsidiaries from 113% to 132%.
Total deposits decreased by 3.6% mostly due to intended outflow of large corporate customer account while retail customer deposit proportion increased continually to 68% as of June.
The Bank maintained a strong capital adequacy ratio under the Basel III accord of 16.9% of which 11.3% is Tier 1 capital.