TMBs operating profit before provision continued to grow at 10% in 1st half of 2017

Stocks and Financial Services Press Releases Monday July 17, 2017 13:23
Bangkok--17 Jul--TMB

TMB's operating profit before provision continued to grow at 10% in 1st half of 2017, driven by performing loan and fee income growth. NPL ratio rose slightly to 2.56% and coverage ratio maintained high at 140%. Net profit improved by 4%

TMB or TMB Bank Public Company Limited today announced its financial results for the 2nd quarter and first half on 2017. For first 6 month of 2017, the Bank and its subsidiaries reported a pre-provision operating profit (PPOP) of THB 9,899 million, an increase of 10% compared to the same period last year. TMB maintained its prudent provisioning and set aside relatively high provision of THB 4,523 million in 1H17, an increase of 17% when compared same period last year. While NPL ratio slightly increased to 2.56% and coverage ratio was then remained high at 140%. After provision, net profit is reported at THB4,426 million, an increase of 4%.

Mr. Boontuck Wungcharoen, CEO of TMB Bank, said "Loan grew by 3.9% in 1H17, despite contraction in SME loan. Loan growth was primarily driven by a continuous growth of mortgage and corporate loans, reflected a better recovery trend. Deposit expanded by 2.4% from previous quarter, resulted in a flat deposit growth for in the first 6 month. Retail deposits continued to increase at 3.6% for the 6-month period. The Bank also expanded its retail transactional deposit customer franchise with TMB All free deposit growth of 26% during the first 6 months. In addition, No-Fixed and ME also grew at 10% and 8% over the same period."

For the first six-month of 2017, net interest income (NII) grew by 2% compared to the same period last year, in line with the loan growth. NIM improved from 3.06% same period last year to 3.2%. Non-interest income (Non-NII) improved by 26% despite weighted down by a decrease of 23% in commercial banking fees. Retail fees grew by 55%, with main contributions from the growth in mutual fund fees of 98% and the growth in bancassurance fee of 68%, which was driven by increased fee from Bancassurance sale and the access fee from the renewal of life bancassurance collaboration of TMB and FWD.

Consequently, the Bank's total revenue was THB 18,405 million for the first half of this year, rose by 9%, while Bank's operating expense was recorded at THB8,469 million, increased by 7%. For the first 6-month period, pre-provision operating profit (PPOP), grew 10% to THB 9,899 million. 2Q17 PPOP increased by 8% from the previous quarter to THB 5,135 million.

Non-performing loans (NPLs) totaled at THB 18,208 million, a slight increase of THB603 million from end of last year. As a result, NPL ratio slightly increased from 2.53% to 2.56%. Nonetheless, the Bank continued to operate with prudence and set aside THB4,523 million of provision in the first 6-month period and THB2,282 in 2Q17, increased by 17% from 1H16 and 2% from 1Q17, respectively. Coverage ratio was then maintained at high level of 140%. After provision, the Bank recorded net profit of THB4,426 million in first half and THB2,330 million for the 2Q17, rose by 4% from 1H16 and 11% from 1Q17, respectively.

The Bank continued to maintain strong capital levels, with a Capital adequacy ratio (CAR) under Basel III framework of 16.5% and Tier 1 ratio of 12.3% which remained higher than the Bank of Thailand's minimum requirement of CAR at 9.75% and Tier 1 at 7.25%, respectively.

Mr. Boontuck concluded, "TMB's operating performance continuously improved which resulted from delivering products and service that meet needs of the customers under the philosophy of "Need-based Bank" and "Simple & Easy". Nonetheless, TMB remains prudent in its business operation and focus to ensuring asset quality and strong coverage ratio".


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