Bangkok--11 Sep--TMB
TMB Bank Public Company Limited (TMB) said it welcomes Moody’s upgrade of the Bank’s long term foreign currency deposit ratings from Baa3 to Baa2 with stable outlook. The credit rating revision has been announced by Moody’s today.
“The upgrade of TMB's foreign currency deposit ratings reflects its improved risk profile, supported by lower levels of non-performing loans (NPLs), and an improvement in its loss absorbing buffers; namely its capitalization levels and loan loss reserves”, Moody’s reasoned.
Mr.Boontuck Wungchareon, TMB Chief Executive Officer, said that apart from enhanced operating efficiency and profitability, TMB has also focused on improving asset quality and strengthening capital base. With rigorous risk management, TMB has consistently managed NPLs down over the past 5 years. In 2Q14, the Bank reported consolidated NPL ratio at 3.4%, compared to 14.3% in December 2008. At the same time, loan loss reserves stay at a solid level as reflected by the coverage ratio of 143% in 2Q14 which rose from 66% in 2008. Capital adequacy has been well maintained with a CAR of 15.4% and Tier I of 10.7% in 2Q14 or 11.1% if the 1H2014 net profit is rolled in. The ratios are well above Bank of Thailand’s minimum requirements of 8.5% and 6.0%, respectively.
“To ensure quality growth and sustainable profitability, TMB will continue to focus on providing quality products and services which meet customer needs, improving operational efficiency, adopting prudent risk management and strengthening our branded customer experience,” Mr. Boontuck added.