TMB expanded deposit and loan further and reports 7% growth of pre-provision operating profit

Stocks and Financial Services Press Releases Thursday April 19, 2018 13:39
Bangkok--19 Apr--TMB Bank
  • Coverage ratio remains strong at 142% while NPL ratio stays at low level at 2.40%.

TMB Bank Public Company Limited today announced its financial results for the first quarter of 2018. The results showed positive momentum in both deposit and loan growths as well as its prudent management of asset quality. TMB generated THB5,109 million of pre-provision operating profit (PPOP) which represented a 7% growth from the same period last year. The Bank set aside THB2,305 million for provision to maintain coverage ratio at a high level of 142% while NPL ratio stayed relatively low at 2.40%. After provision and tax, TMB reported net profit of THB2,280 million, a 9% increase from the same period last year.

Mr. Piti Tantakasem, CEO of TMB Bank, said "TMB has always focused on customer centricity, meaning that the Bank aims to deliver "need-based" and "simple and easy" products and services for customers to make the most of their lives. Prudent management of asset quality has also one of the Bank's priorities."

In 1Q18, TMB expanded deposit base further by 2% to THB623 billion with retail deposit as a major driver. Especially, "TMB All Free", transactional deposit, grew by 4% and TMB No-Fixed, non-transactional deposit, increased by 5%. Meanwhile, performing loan grew by 0.4% to THB628 billion, also driven mainly by retail segment as mortgage continued to grow by 4% in the first quarter. A positive momentum in mortgage is a result of process improvement and more efficient turnaround time. On the commercial lending side, large corporate lending registered 2% growth and Small SME continued its recovery momentum with 1% growth from the previous quarter.

Net Interest Margin (NIM) was 3.02%, compared to 3.21% in the same quarter last year. The decline in NIM was due to a shift in loan mix toward mortgage. Net Interest Income (NII), therefore, dropped by 2% to THB6,030 million. Non-Interest Income (Non-NII), on the other hand, performed well and rose by 22% to THB3,353 million. Key driver was a 35% growth in net fee and service income, especially fees from bancassurance and mutual fund which grow robustly by 88% and 59%, respectively. Such an improvement reflected that TMB has been on the right direction in delivering products and services that meet customers' need as well as improving services across the omni-channels.

Overall, TMB generated total operating income of THB9,383 million, a 5% increase, while operating expenses was THB4,265 million, an increase of 4%. Pre-provision operating profit, therefore, was reported at THB5,109 million, a 7% growth from the same period last year.

TMB has continued to emphasize on prudent management in business operation and asset quality. The Bank set aside THB2,305 million for provision the 1Q18 which increased by 3% from the same quarter last year. As a result, coverage ratio was maintained at high level of 142% while NPL ratio was kept at 2.40%, a relatively low level. After provision and tax, TMB reported net profit of THB2,280 million, a 9% increase from last year.

Capital adequacy remained strong. Capital adequacy ratio (CAR) and Tier 1 ratio under Basel III framework stayed at 17.5% 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.

Mr. Piti concluded "a continued improvement in operating performance reflected the results of our focus in delivering products and service that meet needs of the customers under the concept of "Need-based Bank" and "Simple & Easy". At TMB, we never stop challenging ourselves to improve customer experience."

"Going forward, TMB will strengthen the success from being the first bank who sparked the "no fee" idea 9 years ago and to the bank with "get more" idea. TMB is currently set to make customers "Get MORE with TMB" when using TMB as a main bank on a regular basis. With TMB's products and services, customers can expect to have "More Benefits", "More Time" and "More Possibilities". TMB a confident that customers will definitely enjoy our products and services and advocated TMB."

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