Bangkok--20 Jul--TMB
TMB continues to expand its customer base with "Get More with TMB" strategy. The Bank generated the 1H18 pre-provision operating profit (PPOP) of THB9,980 million, up 1% YoY. To maintain coverage ratio at 140% and NPL ratio at a low level of 2.37%, the Bank remained prudent and set aside higher provision. Therefore, TMB reported the 1H18 net profit of THB 4,306 million, down 3% YoY.
TMB Bank Public Company Limited (TMB) today announced its financial results for the second quarter of 2018 (2Q18) and for the first half of 2018 (1H18). The Bank posted the 1H18 pre-provision operating profit (PPOP) of THB9,980 million, up 1%YoY. TMB maintained coverage ratio at 140% as well as remained NPL ratio at a low level of 2.37%. The Bank has ensured prudent management by increased its provision of 4% YoY. As a result, TMB reported the 1H18 net profit (after provision and tax) of THB4,306 million, down 3% YoY.
Mr. Piti Tantakasem, CEO of TMB Bank, said "TMB has focused on expanding its customer base through flagship products and services with "Get More" idea. TMB is set to make customers "Get MORE with TMB" when using TMB as a main bank on a regular basis with an aspiration to deliver better customer experience for all customer segments in the digital age. The Bank has earned positive feedback from customers, backed by an increasing number of customers. TMB's active retail customers has increased to 2.5 million as well as active digital customers that recently reached 1 million."
For the 1H18, TMB expanded deposit base further by 3% to THB632 billion, mainly due to continuous growth in retail deposit through flagship products– "TMB No-Fixed" and "TMB All Free". With "Get More with TMB" concept, customers would benefit the most when use both product as a complete solution; transact with All Free and save with No-Fixed. The balance of No-Fixed and All-Free accounts rose by THB27 billion (up 12%) and by THB1.7 billion (up 3%), respectively. ME by TMB, a digital deposit product, also grew to THB3.9 billion (up 9% YoY).
On the loan side, TMB achieved performing loan growth of 2% YoY at THB636 billion, primarily driven by retail segment. This attributed to mortgage loan growth of 9% or THB12 billion. Large corporate loan remained resilient and grew by 7.7 billion (up 3% YoY). The Bank has emphasized on quality lending; therefore, small SME loan was slowly recovering with 0.2% growth for the first half of 2018.
Net Interest Margin (NIM) came in at 3.01%, which decreased from 3.19% in the first half of 2017. Net interest income declined by 2% to THB12,130 million, whereas non-interest income rose to THB 6,447 million (up 7% YoY). Fee income was on track, attributable to higher growth in both retail fees and commercial fees. Retail fee growth was driven from bancassurance and mutual fund. Commercial fee growth YoY has shown positive signal for recovery.
Overall, the Bank posted the 1H18 operating income of THB18,576 million (up 1% YoY), and registered the 1H18 operating expenses of THB8,559 million (up 1% YoY). As a result, TMB reported the 1H18 PPOP of THB9,980 million (up 1% YoY).
The Bank has monitored closely on asset quality by maintaining coverage ratio level at 140% as well as remained NPL ratio at a low level of 2.37%. With prudent on NPL management, TMB set aside the 1H18 provision of THB 4,685 million (up 4% YoY). As a result, the Bank recorded the 1H18 net profit (after provisions and tax) of THB 4,306 million, down 3% YoY.
In term of capital adequacy, capital adequacy ratio (CAR) and Tier 1 ratio under Basel III framework stayed at 17.3% and 13.3%, which are higher than the Bank of Thailand's minimum requirement of CAR at 10.375% and Tier 1 at 7.875%, respectively.
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