Bangkok--16 Jan--TMB
TMB reports earnings for the fiscal year 2013 by the Bank and its subsidiaries' today, posting a profit from core operations before provisions of THB14,409 million, an increase of 39% year on year and a net profit of THB 5,737 million. NPL ratio declined steadily to 3.87% from 4.10%. In order to be prepared for economic fluctuations, the Bank has set aside a special provision and resulted in the total provisions for the year of THB7,613 million, driving up its coverage ratio from 113% to 140% .
Mr. Boontuck Wungcharoen, CEO of TMB, "TMB effective transactional products and services designed to create real benefit for customers have been well received in the market. More current customers get to use additional TMB products which suit their financial needs and goals. In 2013, we have also managed to grow retail deposit base as planned. As a result, total Bank’s deposits rose by THB33,500 million or 7 % from the previous year. The Bank maintained a strong and stable deposit base of which retail deposits account for 69% of the total deposit portfolio. Total loans increased by THB46,800 million or 10 % from the previous year. The expansion came from the growth in large, medium and small business lending. The growth rate of small business lending was the highest among the three groups, which led to the continued improvement of loan yield. Net interest margin (NIM) rose to 3.12% from 2.73 % the previous year, resulting in net interest income growth of 22 %. Net fee and service income was up by 19 %. These helped push the total income to grow by 18% compared to the previous year.
"The Bank’s improved operating efficiency was attributed to a bank-wide LEAN Six Sigma implementation that helped control the rise of cost only by 9%, resulting in the growth of profit from core operation before provisions of 39% and an improved cost to income ratio to be 51% which was down from 57% the year before. ".
In 2013, the Bank's asset quality improved continuously. Non-performing loans (NPL) were relatively at the same level as at the end of last year while NPL ratio dropped to 3.58% and 3.87 % for the Bank's financial statements and consolidated statements respectively. In addition to the regular business provision of THB2,670 million, the Bank set aside a special provision to cope with economic uncertainties. In the second quarter of 2013, the Bank has set aside THB4,143 million as a special provision for countercyclical cushion. And a general provision of THB800 million was added in response to the slowing economy in the fourth quarter. As a result, the coverage ratio of the Bank and its subsidiaries was raised to 140% from 113%.
TMB continues to maintain a strong financial position, with a capital adequacy (CAR) under the Basel III framework of 15.9 % and a Tier 1 (Tier 1) capital of 10.6%. Both are higher than the minimum Bank of Thailand’s requirements of 8.5% and 6% respectively.
Boontuck added, “With the strengthened operating results, improved asset quality with a high level of coverage ratio, strong levels of capital and liquidity in 2013, S & P credit rating agency has upgraded TMB credit rating from BB + to BBB- with a stable outlook ".