Thanachart Bank improved in all aspects, Net profit grew,Capital strengthened, NPL decreased, with high Liquidity

Stocks and Financial Services Press Releases Tuesday January 19, 2016 17:11
Bangkok--19 Jan--Thanachart Bank

Thanachart Bank (TBANK) announced its operating results for the year 2015 which was a year of accomplishment in its business operation. The Bank was able to achieve continuous improvement in all areas. This included the growth in net profit of the Bank which continuously increased for four consecutive quarters. As a result, the Bank and its subsidiaries' net profit in 2015 amounted to10,743 million baht. Asset Quality continued to improve especially the reduction of NPL to become lower than 3 percent. Coverage Ratio increased and closed to the level of the industry average. Furthermore, the Bank was able to strengthen the capital adequacy position to meet the top ranking level of the banking industry, as well as, was able to manage its liquidity effectively. Currently, the Bank had achieved LCR ratio higher than the regulated requirement of the Bank of Thailand in order to increase the confidence to our customers.

Mr. Somjate Moosirilert, CEO and President of Thanachart Bank Public Company Limited (TBANK) said that "Although the economic slowdown and high household debt in 2015 resulting in an unfavorable loan growth, the Bank focused on the strategic to conform such vigilant situation. Consequently, the Bank achieved an all-round improvement, resulting in the Bank and its subsidiaries' net profit of 10,743 million baht, increasedby 821 million baht or 8.27 percent from the end of the previous year. This was due to a decrease in impairment loss of loan expenses from normal business operation.

At the same time, asset quality has been improving since the end of 2014 from effective NPLs management, which resulting in a decrease in NPL by 34 percent from the end of the previous year. NPL ratio of the Bank significantly decreased from 4.09 percent at the end of 2014 to 2.84 percent at the end of 2015. The decrease is averse to the industry trend. Coverageratio also improved from 85.52 percent at the end of 2014 to 119.42 percent at the end of 2015, which was close to the industry average. Moreover, capital fund of the Bank strengthened and grew from 15.83 percent at the end of 2014 to 17.92 percent at the end of 2015. This constantly helps support our future business growth.

Mr. Somjate also stated that "in January 2016 the Bank of Thailand has implemented the Liquidity Coverage Ratio (LCR) standard. In this connection, commercial banks have to maintain the minimum LCR at 60 percent in 2016 and gradually increase the minimum by 10 percent each year until it meets 100 percent in 2020. However, Thanachart Bank has maintained its LCR more than 100 percent in the first year of implementation. This reflects our potential in managing high liquidity and builds strong confidence to our depositors and customers."

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