TMB issues Bt10bn bonds
TMB Bank would issue 10-year sub-bordinated debentures worth upto Bt10 billion, which offer advance interest payment starting from May 25.
The bond issue's interest payment for the next years will be payable on every May 18.
Rated "A" by Fitch Ratings, the bond will carry the coupon rate of 4.5 per cent per annum. Subscription is open on April 17. The issue contains a call option after the fifth year.
TMB Bank, the first to reveal the first-quarter financial results, announced that its net profit showed an improvement from the previous quarter but a decline compared to the same period last year.
At Bt1.032 billion, the net profit was 6.5 per cent higher quarter on quarter and 5.9 per cent lower year on year.
According to CEO Boontuck Wungcharoen, the bank's core operation continues to be on a positive trend. Net interest margin (NIM) increased to 2.51 percentage points in the first quarter from 2.46 percentage points in the fourth quarter of last year. Total income was on the rise in terms of both interest and non-interest income. Consequently, cost to income ratio dropped to 59 per cent compared to 76.55 per cent in the fourth quarter and 67 per cent in the first quarter of 2011, reflecting continuing improvement in management efficiency.
SME loans boosted the outstanding loans by 0.8 per cent from the end of 2012, while total deposits grew by 0.2 per cent.
The bank has launched products like “TMB No Fixed” deposit and “ME No Fixed”. Both are unique that they have a similar feature to that of the term deposit which offers higher interest rate than regular savings product, but provide flexibility for depositors to withdraw money when need be without any interest rate penalty.
At the end of March, its loan to deposit and B/E ratio of 87.0 per cent. Non-performing loan was at Bt30.47 billion, a slight increase by Bt642 million from the end of 2012 due to a default in the corporate segment. The impact from the recent floods on total NPL was marginal. NPL ratio of consolidated accounts stood at 5.8 per cent compared to 5.7 per cent at the end of 2012.
The NPL coverage ratio is raised from 73 per cent at end-2011 to 74 per cent.
Its capital adequacy ratio stood at16.2 per cent of which 11.2 per cent is tier-1.
