TCAP reports slight profit decline in nine months in line with unfavorable economic conditions while its financial position remains robust

Stocks and Financial Services Press Releases Thursday November 12, 2020 11:17
กรุงเทพฯ--12 พ.ย.--Thanachart Cap

Thanachart Capital Public Company Limited (TCAP) reports results for the third quarter and the nine months of 2020. Net profit fell 6 percent in the nine months of the year amid the unfavorable economic conditions. However, the Company's financial position remains robust as it still has about 15 billion baht of excess cash.

Mr. Somjate Moosirilert, Chief Executive Officer of Thanachart Capital Public Company Limited (TCAP), said, "Net profit according to the consolidated financial statements of TCAP and its subsidiaries for the third quarter of 2020 amounted to 935 million baht while net profit attributable to the Company amounted to 639 million baht. On the other hand, net profit according to the consolidated financial statements of TCAP and its subsidiaries for the nine-month period of 2020 amounted to 6,888 million baht, of which 5,284 million baht was from net profits of major subsidiaries and 1,908 million baht was from share of profit from investments in associated companies. As a result, net profit attributable to the Company for the nine-month period of 2020 amounted to 5,984 million baht, down 6.3 percent compared with the same period last year."

"The decline in profit for the first nine months of the year was mainly attributable to severe contraction of Thailand's economy due to the COVID-19 pandemic. As a result, the profit of the businesses, particularly the associated companies, in which TCAP invested declined. However, the operating results for the nine months of the year of TCAP's key subsidiaries including Thanachart Securities Public Company Limited (TNS), Thanachart Insurance Public Company Limited (TNI) as well as Ratchthani Leasing Public Company Limited (THANI) remained relatively strong."

"TCAP's financial position remains robust, thanks to approximately 15 billion baht of its excess cash. The policy of the Board of Directors and the management places emphasis on using available funds to maintain the strong financial position of the Company's subsidiaries. In October 2020, the Company used about 1.1 billion baht for subscribing the newly issued shares of THANI in proportion to TCAP's shareholding. The objective was to strengthen the subsidiary's capital base, ensuring that THANI's financial structure is kept in appropriate proportion. Another objective was to create the confidence in THANI's financial position in the long term. As regards other investments, the Company will start considering further appropriate investments only after the COVID-19 situation improves."

Moreover, TCAP and member companies of Thanachart Group were accepted again as certified companies of Thailand's Private Sector Collective Action Coalition Against Corruption (CAC) in the second quarter of 2020. In this connection, Thanachart Group recognizes the impacts and obstacles to business operations, which are created by corruption. With its determination and commitment to operational transparency and good corporate governance, the Group announces its intention to be the member of the Coalition and its membership has been continuously certified since 2014.

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