Bangkok--17 Apr--TMB
TMB Bank Public Company Limited today announced its financial results for the first quarter of 2017. The Bank and its subsidiaries reported a pre-provision operating profit (PPOP) of THB4,764 million, an increase of 4% compared to the same quarter last year. TMB maintained its prudent provisioning and set aside relatively high provision of THB2,241 million in 1Q17, an increase of 19% compared with 1Q16. NPL ratio was kept at low level of 2.5% and coverage ratio remained strong at 144%. After provisions, net profit is reported at THB2,096 million, relatively stable when compared with the previous year.
Mr. Boontuck Wungcharoen, CEO of TMB, said "Loan growth was moderate at 1% in 1Q17. The growth was mainly driven by a continued growth of mortgage loan from last year, while commercial loans remained flat. Total deposits slightly declined by 2%, primarily due to a decrease in corporate deposit. Meanwhile, retail deposit base continued to grow with 2% increase in retail transactional deposit during the first quarter of 2017, which mainly resulted from 13% growth of TMB All Free Account. TMB No Fixed Account and ME by TMB also expanded by 2.4% and 6%, respectively.
Net interest income (NII) grew by 4%, driven by higher NIM which increased from 2.98% to 3.21%. Non-interest income (Non-NII) improved by 10% despite a 23% decline in commercial fees, which was due to decrease in loan-related fee. Nonetheless, retail fees continued to grow by 26%, mainly driven by mutual fund fee as the Bank successfully offered the right mutual fund products which answered to customers' need during a shift of market yields.
The Bank's total revenue rose by 6% to THB 8,898 million. Operating expense grew 5% to THB4,104 million. The increase in expenses was mainly from higher marketing expense for launching new products. As a result, PPOP grew 4% from the same quarter last year to THB 4,764 million.
Non-performing loans (NPLs) was relatively unchanged and stood at THB 17,588 million. NPL ratio remained at a low level of 2.5%, stable compared to December 2016. Nonetheless, the Bank continued to operate with prudence and set relative high provision of THB 2,241 million, a rise of 19% from THB 1,877 million from the same quarter last year. Coverage ratio was then maintained at a strong level of 144%. After provisions, the Bank recorded a net profit of THB2,096 million, which was flat compared to last year.
The Bank continued to maintain a high capital level, with Capital Adequacy Ratio (CAR) under Basel III framework of 18.2% and Tier 1 ratio of 12.8% which remained higher than the Bank of Thailand's minimum requirement of CAR at 9.75% and Tier 1 at 7.25%, respectively.