Bangkok--20 Apr--TMB
TMB Bank announced financial results for the first quarter of 2016 today. The Bank and its subsidiaries reported a pre-provision operating profit (PPOP) of THB4,571 million, an increase of 6% compared to the same quarter last year. The Bank kept up its conservative provisioning and booked provision at a relatively high amount of THB1,877 million in this quarter, albeit 21% decresed from1Q15, to maintain the high level of coverage ratio at 140%. Net profit was reported at THB2,092 million, rose by 28% YoY.
Mr. Boontuck Wungcharoen, CEO of TMB Bank, said "Loan growth was moderate at 1% driven mainly by growth of mortgage loan. Such growth was effectively achieved on the back of revamped process which resulted in quick turnaround time with high accuracy so the Bank has been able to offer better loan products and ultimately better answer customers' need. Deposit declined slightly by 1% so as to optimize deposit with loan growth. Loan to deposit ratio stood at 92%. Nevertheless, TMB continued to expand retail deposit base by 3%. Retail transactional deposit was also successfully expanded, evidenced by 37% growth of All Free deposit.
Net interest income (NII) grew by 4% from same quarter last year. Non-interest income (Non-NII) also continued to increase by 10%. The growth of Non-NII was driven mainly by fee income from retail customers, mainly from bancassurance, of which the Bank further developed bancassurance products to better serve different customer segments. Moreover, Non-NII growth was also supported by increased fee from Letter of Guarantee and increased foreign currency business.
The Bank's total revenue was THB8,408 million, a 6% increase compared to same quarter last year, while non-interest expenses were THB3,911 million or rose by 10%. However, operating expenses from core business grew only by 4%. PPOP, as a result, increased by 6% to THB 4,571 million.
Non-performing loans (NPLs) reported at THB21,452 million, increased by THB979 million from THB20,473 million at end of December 2015. NPL ratio, therefore, increased slightly from 2.99% to 3.11%, which was in line with the Bank's expectation.
The Bank maintained conservative provisioning and set aside provision at a relatively high level of THB1,877 million, albeit 21% decreased from THB2,387 in 1Q15, to keep up the coverage ratio at the high level of 140%. After provision, net profit was reported at THB2,092 million, rose by 28% YoY.
The Bank had strong financial position with capital adequacy under BASEL III at 16.8% and Tier 1 at 11.4% at the end of March 2016, well above BOT's minimum requirements of 9.125% and 6.625% respectively.
Mr. Boontuck added that "The Bank's performance continuously improved from ability to deliver products that meet demand of the customers. At the same time, the Bank maintained its conservativeness and carefully managed asset quality and retained coverage ratio at high level, aiming for sustainable growth and long term stability".