Bangkok--15 Jul--TMB
TMB today reported the 2Q2014 net profit of the Bank and subsidiaries of THB2,575 million, rising from THB1,602 in the last quarter. Operating income grew, backed by the increase of net interest income by 4% due to loan extension and the increase of non-interest income by 14% compared to 1Q2014 as a result of growth in fee income from bancassurance and mutual fund sales. Fees earned from loan extension also improved. Total cost in this quarter dropped slightly. As a result, the Bank made a core operating profit before provision of THB3,481 million or an increase by 10% compared to THB3,169 million in the previous quarter.
Provision for bad debt and doubtful accounts declined to THB309 million in 2Q2014 compared to THB1,161 million in 1Q2014, thanks to the one-time excess reserve write-back from the successful NPL sales and problem loan resolution. Net profit for 2Q2014 was at THB2,575 million, up by 61% compared to 1Q2014 whereas the net profit for the first six months of 2014 was THB4,177 million compared to THB2,068 million in the same period last year.
Non-performing loans (NPL) of the Bank and subsidiaries decreased by approximately THB2,500 million from the previous quarter to THB20,778 million in 2Q2014, causing a further decline of NPL ratio to be at 3.40% from 3.85%. Coverage ratio was strengthened to be at 143% from 138% in the previous quarter.
Deposits continued to grow in 2Q2014, with about THB14,400 million or 2.6% increase from the first quarter. Total deposits for the first half of 2014 rose by 8.2%. These were attributable to the Bank’s market dominant retail deposit products, including “TMB No Fixed”, “ME by TMB” and TMB transactional banking accounts which the Bank constantly emphasizes on.
Mr. Boontuck Wungcharoen, TMB CEO, said, "The Bank has achieved an improved performance in 2Q2014 compared to those of 1Q2014 by increasing revenue and controlling cost. Furthermore, we have managed to expand our transactional banking deposit customers. The Bank has also maintained a strong financial position. Our capital adequacy ratio (CAR) under the Basel III standards is 15.4%, with a Tier 1 ratio of 10.7%, which is higher than the minimum requirements of the Bank of Thailand, set at 8.5%. and 6.0% respectively."
Mr. Boontuck added, “In the second half of the year, total loans are expected to grow better than in the first half. The Bank will continue to focus on increasing revenue by introducing new products which meet the real needs of customers. In the mean time, we will put effort towards optimizing our operations by increasing efficiency in order to further improve the Bank’s operating performance.