Bangkok--19 Jan--TMB
TMB announced today the financial results for the fiscal year 2014 of which the Bank and its subsidiaries reported a net profit of THB9,539 million, an increase of 66% compared to the previous year, representing a return on equity (ROE) of 14.7%. Total deposits grew by 8% while performing loans expanded by 7%. Asset quality continued to improve with a decrease of NPL ratio to 2.85% from 3.87% at the end of 2013 whereas coverage ratio went up to 157% from 140%.
Mr. Boontuck Wungcharoen, TMB CEO, said "Total deposits increased satisfactorily by 8% in 2014. TMB also succeeded in expanding the transactional deposit base with a growth of 18% as a result of our focus on providing financial products which yield real benefits to customers and attract more people to use. The Bank’s performing loans also grew by 7% from the previous year, backed by the growth in corporate, medium-sized SME and consumer lending.
"The increase of transactional deposits has helped improve the Bank’s funding cost management efficiency, making a rise of net interest income of 4%. Fee income was 3% higher while loan-related fee dropped due to slower credit extension in line with the overall economic conditions. Other fee incomes increased from the sales of core products –particularly, the open architecture of mutual funds which provides more variety of selected funds from several asset management companies – that truly answer to customer needs. Fee income from bancassurance sales also increased continually.”
The Bank's total earnings for 2014 was approximately THB29,953 million while the expenses amounted to THB15,774 million, resulting in the profit from core operations before provisions at THB14,152 million and a net profit after provisions and taxes of THB9,539 million, with a return on equity (ROE) of 14.7%.
TMB's asset quality continues to improve, with non-performing loans (NPL) decreased by approximately THB4,328 million or 19% compared to the end of last year. NPL ratio was down to 2.85%. Coverage ratio went up to 157% from 140% at the end of the previous year. The Bank also maintains a strong financial position, with a higher level capital adequacy ratio (CAR) under the Basel III, of 18.34%, of which 11.04% were Tier 1. The level is greater than the Bank of Thailand’s minimum requirements of 8.5% and 6%, respectively.
Boontuck also added, "The stronger performance of TMB, supported by better asset quality, higher coverage ratio, good liquidity and strong capital adequacy levels, has prompted an upgrade of TMB’s credit rating by Moody's from Baa3 to Baa2, last September, following the rating upgrade by S & P in 2013."