The associated companies including both TMBThanachart Bank (TTB) and MBK achieved better performance, thanks to the continuous expansion of the economy due to the positive situation of the Omicron variant of Covid-19, which was improving, apart from the tourism recovery caused by further easing of international travel restrictions. As regards the subsidiary Ratchthani Leasing (THANI), net profit increased by 8.13% when compared to the previous quarter, thanks to the healthy expansion of hire purchase loans for trucks as well as the efficient control of asset quality. In relation to Thanachart Insurance (TNI), net profit increased by 3.11% when compared to the previous quarter. TNI's premium received in the first half of the year was in line with the established target. With regard to MBK Life Assurance whose name was already changed to T Life Assurance, net profit increased by 67.96% when compared to the previous quarter, mainly due to the reverse of the assurance reserve in line with the Gross Premium Valuation (GPV) methodology as a result of inverted zero-coupon yield curve. Meanwhile, T Life Assurance continued developing life assurance and financial products. In regard to Thanachart Plus (T-Plus), it achieved satisfactory performance with gradual growth. Outstanding loans amounted to about 3,600 million baht. And, by the year end, outstanding loans were expected to exceed the established target of 4 billion baht. On the other hand, non-performing loans remained at zero level, thanks to cautious and efficient risk management. Nevertheless, the Thai capital market was faced with decreasing trading volume as well as stock price volatility. As a result, net profit of Thanachart Securities (TNS) decreased by 39.20% when compared to the previous quarter. Although the profit decreased somewhat in line with the unconducive market conditions, income other than brokerage commission grew healthily. Among others, this included fee income from ZEAL (portfolio advisory services) and interest income from margin loans. Therefore, the performance achieved was still in line with the established target.
In the second half of 2022, the economy is likely to be faced with not only inflationary pressure due to price increases of energy, raw materials, and foods but also a potential hike of the benchmark rate. However, the Thai economy is expected to continue growing, thanks to the drivers of all sectors. This will positively contribute to the continuous growth of the performance of the Company and its subsidiaries," said Somjate.
Source: Thanachart Capital