Bangkok--20 Oct--TMB Bank
TMB Bank Public Company Limited and its subsidiaries recorded a net profit of 4,414 million baht for the nine-month period ended September 30, 2008 compared to a net loss of 20,687 million baht for the same period a year earlier, Mr. Boontuck Wungcharoen, TMB Chief Executive Officer, announced today.
The Bank and its subsidiaries generated a consolidated net profit of 1,666 million baht in the third quarter this year, an improvement from a net loss of 2,540 million baht in the same quarter of 2007. The Bank’s unconsolidated results showed a net profit of 1,769 million baht, an increase from a net loss of 2,626 million baht in the same period of last year.
Mr. Boontuck said the rising profit was attributable to the increase in net interest income due to the more efficient management of assets and liabilities by the Bank. Provisions for doubtful accounts have also declined as the Bank has been complying with the Bank of Thailand’s guideline on the preparation for the implementation of the new international accounting standard (IAS 39) since 2007. Furthermore, the Bank has no longer to carry out any amortization of goodwill or record any goodwill impairment charge as both were completed in 2007.
For the first nine months of 2008, net interest and dividend income was 12,304 million baht, an increase of 214 million baht or 1.8% from the same period of 2007. This was mainly because the Bank’s funding cost has decreased faster than the yield on earning assets. As a result, net interest margin (NIM) in the nine-month period of 2008 increased to 2.7% from 2.3% for the same period last year. Meanwhile, non-interest income was 5,688 million baht, decreased by 274 million baht or 4.6% from the same period of last year as a result of a drop in investment gain in the volatile market situation and the impairment charge to the securities whose market prices had fallen below their costs for a certain period of time.
As at September 30, 2008, the Bank and its subsidiaries had total assets of 592,987 million baht — a decrease of 29,174 million baht or 4.7% from the end of 2007. Total loans decreased by 8% from 37,411 million baht at the end of 2007 to 427,484 million baht as a result of loan repayment and loan portfolio realignment through a reduction of low-yield loans. Net investments increased by to 107,849 million baht or by 11,503 million baht or 11.9 % from the end of last year due to the Bank’s asset management policy to increase the weighting on debt investment such as the Bank of Thailand’s bond.
Net properties foreclosed stood at 21,481 million baht — a decrease of 1,075 million baht, through recent sales, or 4.8% from the end of 2007. NPLs were 70,741 million baht, decreased by 5,771 million baht or 7.5% from the end of last year.
As at September 30, 2008, the shareholders’ equity of the Bank and its subsidiaries was 48,488 million baht — a growth of 3,967 million baht or 8.9% from the end of 2007. The improvement was mainly due to the net profit of 4,414 million baht in the first nine months of 2008 and the increase in the surplus on the revaluation of fixed assets of 2,101 million baht. However, the increase was partly offset by a drop in the unrealized gain on revaluation of investments of 2,071 million baht.
The Bank’s capital adequacy ratio (CAR) at the end of September, 2008 was at 17.4%, which was quite high compared to such level of other leading banks in the country.
Mr. Boontuck said: “The Bank’s good operating results with profit in the past nine consecutive months were very welcoming, reflecting the readiness and potential of TMB in business operation and competition with a strong capital base.”
He said that TMB is on course with the plan to dispose its NPL and NPA accounts that cannot be restructured despite signs that the final prices might be impacted by the financial crisis in the U.S. and Europe. With the reduction of NPL and NPA amount, TMB will be able to concentrate on developing its business under the customer-centric organization concept. Strategies have been laid out and implemented with the aims to provide the best of financial services that meet customers’ needs and to generate sustainable returns for the Bank and shareholders in the long term.
TMB Bank Public Company Limited
Founded on 8 November 1957, TMB Bank Pcl. operates a commercial banking business under a license granted by the Ministry of Finance, and with consent given by the Bank of Thailand. It also operates a securities business licensed by the Ministry of Finance and agreed to by the Securities Exchange Commission.
The Bank aims to respond to the needs of its clients through its 471 branch network, 108 foreign exchange centers, 1,804 ATMs, as well as electronics banking systems. Its business encompasses commercial banking, offshore banking, investment banking, and other businesses as permitted by the regulatory authorities, including acting as an insurance agent for its alliance insurance companies.
Listed on the Stock Exchange of Thailand, the Bank is the sixth largest bank, by total assets, in Thailand. As at 30 September 2008, its total assets are valued at THB 592,987 million.
www.tmbbank.com
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