TMBs 9-month operating profit before provision grows 8% NPL ratio decreased to 2.44% while the Bank remains prudent by maintaining high coverage ratio at 141% Net profit increases 6% from last year

Stocks and Financial Services Press Releases Tuesday October 17, 2017 14:34
Bangkok--17 Oct--TMB Bank

TMB Bank Public Company Limited today announced its financial results for nine-month period (9M17) and the third quarter (3Q17) of 2017. The Bank and its subsidiaries reported a pre-provision operating profit (PPOP) of THB14,947 million for 9M17, an 8% growth over the same period last year. PPOP was THB5,048 million for 3Q17; despite a decrease of 2% from 2Q17, it rose 5% when compared with 3Q16. Though NPL ratio is reduced to 2.44%, the Bank continues to operate with prudence and set aside THB6,914 million of provision in 9M17, an 8% increase from previous year. Coverage ratio, therefore, remained high at 141%. After provision, net profit was THB6,429 million or grew by 6% from the same period last year.

Mr. Boontuck Wungcharoen, CEO of TMB, said "For the nine-month period, total loans grew by 4%. Despite a slowdown in SME loan, loan growth was driven by retail segment backed by continued growth in mortgage loan as well as by corporate loans. Meanwhile, total deposit rose 1%, mainly from expanding retail deposit franchise. TMB could expand retail deposit base by 5% with a 34% growth of TMB All Free, our retail transactional deposits, in addition to No-Fixed and ME deposits, which also rose by 14% and 7%, respectively."

Net interest income (NII) for the nine months of 2017 rose by 1% from last year with NIM widening from 3.12% to 3.16%. Non-interest income (Non-NII) improved by 23%, driven by a 51% growth of retail fee income especially from mutual fund and bancassurance. Though 9-month commercial fee income declined 19% from last year due mainly to a slowdown in loan-related fee, it showed signs of recoveries after seeing 16% growth in 3Q17 from the previous quarter. Key drivers were loan-related fees and LG fees.

The Bank's 9-month total revenue was THB27,781 million, a 7% growth over the same period last year. Operating expense was THB12,915 million, grew by 7% over the same period. The increase in expenses was mainly from higher marketing expenses and business volume-related expenses. As a result, the Bank recorded THB14,947 million of PPOP which improved 8% from last year.

In the 3rd quarter, non-performing loans (NPLs) decreased from previous quarter by THB167 million to THB18,041 million, hence the NPL ratio is reduced from 2.56% to 2.44%. Nonetheless, the Bank continued to operate with prudence and set aside THB6,914 million of provision in its 9-month period, which increased 8% from last year. Coverage ratio was maintained at high level of 141%. Consequently, after provisions and taxes, the Bank reported net profit of THB2,003 million in 3Q17 and a total of THB6,429 million for the 9-month period or a growth of 6% from last year.

The Bank continued to maintain strong capital levels. Capital adequacy ratio (CAR) and Tier 1 ratio under Basel III framework were at 17.9% and 13.6%, which are higher than the Bank of Thailand's minimum requirements of CAR at 9.75% and Tier 1 at 7.25%, respectively.

Mr. Boontuck concluded, "TMB has always focused on delivering products and service that meet customers' need under the "Need-based" and "Simple & Easy" directions. As a result, the Bank has managed to grow customer base through both transaction banking and digital banking which resulted in continual improvement of our operating performance. TMB will strive to further enhance products and services in order to further empower customers to make the most of their lives."

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