Bangkok--14 Oct--TMB
TMB announces today the Bank and subsidiaries net profit for 3Q2014 of THB2,387 million – a decline of 7% from THB2,575 million last quarter as the Bank recognized special items in 2Q2014, but an increase of 28% compared to THB1,870 same quarter last year.
The improved profit was driven by the 6% increase of operating income QoQ and 9% YoY. The improvement was mainly from net interest income growth on the back of 3% loan extension in this quarter coupled with effective funding cost management. In addition, non-interest income grew 6% QoQ and 14% YoY due to the increase of fee from bancassurance and mutual fund sales. Meanwhile, expenses increased less than income growth due to continuing operational efficiency improvement. As a result, cost to income ratio improved to 50%, compared to 52% last quarter and 53% in same quarter last year. Core operating profit before provisions of the Bank for this quarter rose to THB3,800 million, an increase of 9% QoQ and 15% YoY.
The net profit for nine months of 2014 reached THB6,564 million, up 67% compared to THB3,938 million same period last year.
In 3Q2014, although the Bank’s deposits declined slightly by THB4,500 million or 0.8% QoQ, its transactional banking deposits grew by THB7,000 million or 4%. Total nine-month deposits expanded by THB39,000 million or 7%, mainly supported by the growth in two types of deposit products -- the Bank’s key retail deposits, including “No Fixed”, “ME by TMB”, as well as other transactional banking account deposits. Total loans in 3Q2014 expanded by THB16,000 million or 3% from the previous quarter from an increase in large corporate, medium-sized business and retail loans. The Bank’s total nine-month loans rose by 5%.
The Bank continues to effectively manage asset quality. Non-performing loans (NPLs) of the Bank and its subsidiaries for this quarter was at THB21,027 million, slightly increased by THB250 million from the last quarter and decreased by THB1,394 million for the nine-month period. NPL ratio dropped to 3.43% from 3.87% at the end of last year. The Bank’s coverage ratio remained strong at 139%.
Mr. Boontuck Wungcharoen, TMB CEO, said, "The Bank achieved better performance for the third quarter this year because of the growth in both interest and fee incomes and the increased operating efficiency. Importantly, the Bank sees a steady expansion of transactional banking customer base. Despite a slight decline of gross deposits this quarter, the transactional banking account deposits from both business and retail customers increased as we wished. Furthermore, the Bank maintains a stronger capital base, with the capital adequacy ratio (CAR) under the Basel III framework of 18.3% and Tier 1 capital increased to 10.9% -- greater than the minimum requirements set by the Bank of Thailand at 8.5% and 6.0%, respectively."
The steady growth of the Bank's operating results, with the ability to maintain financial strength and asset quality, has prompted the upgrade of TMB credit rating from Baa3 Baa 2 by Moody’s credit rating agency last September.