Bangkok--20 Jul--TMB
TMB Bank reports a net profit of THB393 million for the second quarter of 2009, a 9.9% decline from the first quarter of 2009. The decline in net profit is attributed to the continued economic slowdown, impacts from branch transformation and, in particular, Banks’ continuing efforts to strengthen its risk management.
The branch transformation program has been continuing since the first quarter this year with an aim to improve branch operation to allow branches to better focus on sales and services to customers. At the same time, commercial customers would attain stronger service and management under the Bank’s SME and wholesale banking platforms.
In the second quarter of 2009, TMB also took the following major actions :
pre-emptive qualitative review of performing loan portfolio, which resulted in general provisions of THB3,081 million;
buy-back of US$153 million hybrid tier I securities, resulting in THB3,174 million gains from buy-back and unwinding the associated interest rate swap contracts;
and completion of THB14,932 million NPL sales and THB4,286 million NPA sales to the local NPL management company.
Mr. Boontuck Wungcharoen, CEO of TMB Bank, said “In the second quarter of 2009, net interest margin has started to stabilize due to the Bank’s strategy to exit high cost deposit. TMB continues to maintain a strong liquidity position, which results in a stable loan to deposit ratio (including short term borrowing) at 83.5%. The Bank’s current and saving accounts (CASA) continue to improve QoQ, now at 50.3%, a clear indicator of better deposit mix, which is due to our continuing focus on “Deposit-led Strategy”. With THB14.9 billion NPL sales, our NPL ratio has dropped to 14.4%. Our capital adequacy ratio is now at 15.0% comfortably above the Bank of Thailand’s minimum requirement.”
The buy-back of hybrid tier I securities in May 2009 did not affect the Bank’s regulatory capital position due to issuance of THB4 billion local hybrid tier I securities (TMB-IT1) in April 2009.
Apart from its continuing efforts in bank transformation during the quarter, TMB has launched several innovative products to attract new customers. The Bank has also recently revamped its web site (www.tmbbank.com) with a new design focusing on user-friendly navigation and easy-to-read product information, in addition to a new look and feel with a blue color theme. All of these products and web site revamp reflect TMB Bank’s strong philosophy of “Customer Centricity” to provide customers with “easy”, “convenient” and “attractive” experience.
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 477 branch network, 107 foreign exchange centers, 2,032 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 31 March 2009, its total assets are valued at THB 601,379 million.
www.tmbbank.com
TMB Bank: Better Partner, Better Value
Media enquiries:
Tel: + 662 299 1950, 3
+ 662 242 3260
+ 66 85 813 3020
[email protected]