Bangkok--20 Apr--TMB Bank
- Achieving THB707 net profit
- Growing stronger in asset quality, with high capital base
TMB Bank and its subsidiaries reported a net profit of THB707 million in the first quarter of 2010 or 2.7% increase compared to THB688 million net profit in the fourth quarter of 2009 and THB436 million net profit or a growth of 62.0% compared to the same quarter of last year. In addition to the ongoing profitability turnaround, the Bank continued delivering a stronger asset quality and maintaining liquid balance sheet, strong deposit mix with high regulatory capital ratio.
Mr. Boontuck Wungcharoen, CEO of TMB, said that both non-performing loans (NPL) and foreclosed properties continued to improve when compared with the previous quarter and the same quarter of last year. The NPL in the first quarter of 2010 decreased to THB52,727 million from THB54,095 million in the fourth quarter of 2009 and THB73,957 million in the first quarter of 2009 due to the ongoing NPL management. NPL was down to 12.1% from 12.7% in the fourth quarter and 16.0% in the first quarter of 2009. Foreclosed properties in the first quarter of 2010 declined to THB9,887 million from THB11,132 million in the fourth quarter of 2009 and THB17,026 million in the first quarter of 2009, and currently represents only 1.8% of total assets.
The Bank’s balance sheet remains liquid with cash, interbank and investment as of the first quarter, representing 33.8% of total earning assets, compared to 29.3% in the last quarter of 2009. The Bank’s loan to deposit ratio declined to 88.4% in the first quarter of 2010 from 90.3% in the last quarter of 2009. Deposit mix remains strong with current and savings accounts representing 52.1% of total deposits compared to 49.5% in the fourth quarter of 2009. In the first quarter of 2010, The Bank continued to maintain strong capital position with capital adequacy ratio (CAR) of 16.4% compared to 17.1% in the last quarter of 2009, comfortably above minimum requirement at 8.5% by the Bank of Thailand.
Mr. Boontuck added that TMB also reported a progress in the HR Transformation program in the first quarter of 2010. Aimed primarily at building a high-performance organization while paying for performance and competency in line with those of the market, the TMB HR Transformation ensures that performers are rewarded with a suitable and competitive compensation and benefit package with wider opportunities to develop to demonstrate their fullest potential and advance in their careers. The ultimate goal is to become the leading Thai bank with world-class financial solutions and sustainable growth achieved through serving the needs of all stakeholders, including customers, shareholders, employees and the community.