Bangkok--15 Oct--TMB
- 3Q13 net profit rises to THB1,870 million
- Year-to-date 2013 net profit up 36% to THB3,938 million
TMB announced its financial results for the third quarter of an operating profit before reserves of THB3,311 million and a net profit of THB1,870, up 16% and 67% respectively compared to 3Q2012. Year-to-date 2013 profit before reserves rose to THB10,488 million, with a net profit of THB3,938 million, increasing 39% and 36% respectively compared to that of last year. The earnings growth is attributed to higher core operation revenue and the overall operational efficiency improvement. NPL ratio, meanwhile, dropped to 3.8% from 4.1% at the end of last year.
Mr. Boontuck Wungcharoen, TMB CEO, said: "The Bank aims to consistently provide the products and services that meet customer needs and create real value for customers — particularly the transactional banking ones. For the 9-month period of this year, TMB achievement is demonstrated by the growth in total deposits by about THB20,000 million or 4.0% from last year. At the same time, total loans rose by about THB22,500 million or 5.0% compared to the end of last year, mainly through the expansion of small and medium business loans. Backed by the effective cost of fund management and increased return on loan , the net interest margin expanded to 3.0% from 2.7%. The net interest income rose by 19% from last year. In addition to the consistent growth in interest income, the Bank has leveraged the new customer base by cross selling products which create real value for customers, generating higher fee income. Net fee and service income, consequently, grew by 28% compared to last year. As a result, total operating income increased by 20%. Improved cost management, generated by Lean Six Sigma implementation in the last three years, has helped optimize the operating cost, which rose only marginally by 6% and has brought down the cost to income ratio to 50% from 57% and the 9-month period net profit was up by 36% compared to last year.”
With the Bank’s prudent risk management and control, credit quality improved steadily, with a decline of total NPL by THB336 million from the previous year. The NPL ratio of the Bank and consolidated financial statements dropped to 3.5 % and 3.8 % respectively. Coverage ratio at the end of the third quarter rose to 138% from 113% at the end of last year. The Bank keeps a high level of liquidity as reflected by the loan to deposit ratio of 92% in the third quarter. The Bank financial position remains strong, with a capital adequacy ratio (CAR) according to the Basel III framework at 16.8 %, and the Tier 1 capital ratio of 11.2 % compared to the Bank of Thailand’s minimum requirement of 8.5 % and 6 % respectively.