Bangkok--21 Jul--TMB
TMB Bank Public Company Limited today announced its financial results for the second quarter and first half of 2016. The Bank and its subsidiaries' pre-provision operating profit (PPOP) for 1H2016 was 9,022 million Baht, rose by 5% from the same period last year. The Bank maintained its conservative provisioning and set aside 3,875 million Baht of provision, a rise of 4% from last year. Coverage ratio was kept at a strong level of 143%. Net profit, as a result, was reported at a positive growth rate of 9% to be at 4,243 million Baht.
Mr. Boontuck Wungcharoen, CEO of TMB, said "TMB's operations remained healthy with the loan growth of 2% during the first half which was driven mainly by growth of mortgage loan. Such growth was effectively achieved thanks to TMB's revamped process which allowed quick turnaround time with high accuracy so the Bank was able to offer better loan product and answer customers' needs. Deposit declined slightly by 0.5% so as to balance deposit structure and volume, with the loan to deposit ratio at 92%. Nonetheless, retail deposit base was enlarged by 3%. The success of retail transactional deposit base expansion also continued, evidenced by the 63% growth of "All free" deposit.
Net interest income during 1H2016 rose by 6% YoY. Non-interest income, however, slightly declined by 2% mainly due to the decline in capital market income resulted from bond's interest rate volatility during the second quarter as well as the reduction of loan-related fee. Meanwhile, retail fee continued to grow, especially fee from bancassurance. Consequently, total revenue amounted to 16,946 million Baht, increased by 3%, while operating expenses (excluded provision for NPA and other liabilities) amounted to 7,801 million Baht, an increase of only 1%, as a result of the Bank's continuing focus on efficiency enhancement. PPOP in 1H2016, therefore, rose by 5% from the same period last year to 9,022 million Baht, of which PPOP of the second quarter declined slightly 3% from the previous quarter to 4,451 million Baht.
In terms of asset quality, even though non-performing loans have shown signs of recovery, debt restructuring was relatively slow. With TMB's continued conservative provision setting, the Bank decided to make an extra write-off of 100%-provisioned NPL of 2.9 billion Baht and NPL sale of 167 million Baht in the second quarter. Consequently, NPL at the end of the second quarter dropped to 19,779 million Baht and NPL ratio was down from 2.99% at end of last year to 2.87%. Coverage ratio improved to be at 143%.
TMB maintained its conservative provisioning and set aside a provision of 1,998 million Baht, in the second quarter, totaling 3,875 million Baht for 1H2016, representing a rise of 4% YoY. Net profit of the second quarter was 2,151 million Baht, increased by 3% from the previous quarter, while net profit of 1H2016 was 4,243 million Baht, increased by 9% YoY.
The Bank continued to maintain high capital levels under Basel III framework. At the end of June, capital adequacy ratio (CAR) improved to 17.95% and Tier 1 ratio was enhanced to 12.51%, which were comfortably higher than the Bank of Thailand's minimum requirements of CAR at 9.125% and Tier 1 at 6.625%.
Mr. Boontuck also added, "TMB's operating performance has improved continuously due to the Bank's ability to deliver the products and services which serve the real needs of our customers. In addition, we have implemented a strategic plan to provide customers with digital banking offerings which maximize customers' lifestyles. With regards to asset quality management, TMB will remain conservative and put the emphasis on maintaining sound asset quality and strong coverage ratio for sustainable growth as we move forward."