Bangkok--15 Nov--TMB Bank
TMB Bank Public Company Limited (TMB) said it welcomes today’s announcement by Standard & Poor’s Ratings Services, which upgrades the credit rating of the Bank to BBB-, with stable outlook, from BB+.
In its ratings release, S&P said, “The rating upgrade was on the expectation for the bank to maintain the sustained improvement in its risk management practice. …TMB’s earning profile has been improving because of better margins. Pre-provision income has gone up in the past few years. …The stable outlook reflects our expectation that TMB will maintain its business profile and continue to increase its earnings.”
Mr. Boontuck Wungchareon, TMB Chief Executive Officer, said, “The rating upgrade confirms that TMB is on the right course towards sustainable growth and reflects the Bank’s long-term strategy. We are focusing on creating value for customers by meeting their real needs, especially through the transactional banking products and services. We have made significant achievements in the past few years and we are emphasizing on building the Bank’s performance-enhancing capacity for all stakeholders.”
TMB’s operating performance has been on a growth trend due to the Bank’s customer-centric business model and its efforts to create real value for customers. The Bank’s asset quality has significantly increased during the past five years as a result of the rigorous risk management practice. NPL ratio has dropped to 3.79% while coverage ratio is solid at 138%. Net interest margin has improved continuously due to its strategy to grow transactional deposit accounts and higher-yielded loans. The Bank also focuses on driving the growth of non-interest income through cross-selling and increasing customer share of wallet. It’s overall efficiency has improved, bringing down the cost to income ratio to 50% from 57% last year.