TMB Bank's Q1 earnings down slightly from 2011
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TMB Bank is the first commercial bank reporting financial figures for the first quarter of this year.
It earned Bt1.03 billion, slightly down from Bt1.09 billion in the same quarter of last year because of higher provisions, but up 6.5 per cent from the previous quarter thanks to improved net interest margin (NIM) and cost controls.
According to TMB’s filing to the Stock Exchange of Thailand, provisions for bad and doubtful loans were Bt1.24 billion, up 227.9 per cent year on year and 179.8 per cent quarter on quarter in line with higher non-performing loans and strengthened coverage ratio.
Its NPL rate expanded by 2.51 percentage points because of a default by a corporate customer, bringing it to 5.8 per cent from 5.7 per cent during the quarter.
Net interest income (NII) shot up by 27.5 per cent or Bt3.94 billion year on year to Bt849 million mainly on a build-up of earning assets. NIM widened to 2.51 per cent from 2.23 per cent on year.
Quarter on quarter, NII increased by 1.8 per cent on higher loan volume and well-managed deposit costs. NIM rose by 5 basis points from 2.46 per cent as the average yield continues to rise while deposit costs softened.
Non-interest income was level with a year ago.
During the first quarter, outstanding loans of TMB and its subsidiaries rose by 0.8 per cent to Bt400.80 billion, while outstanding loans of TMB alone edged up by 0.7 per cent to Bt370.33 billion, driven by demand from small and medium-sized enterprises, especially small businesses.
Deposits increased to Bt453.18 billion from Bt452.31 billion during the quarter thanks to the warm reception for its innovative products ME by TMB and TMB No Fixed.
The proportion of loans versus deposits, including bills of exchange, climbed 2 percentage points to 87 per cent during the quarter.
The capital adequacy ratio (CAR) under Basel II rose to 16.2 per cent from 16.1 per cent during the quarter. The Tier 1 ratio was 11.2 per cent. The CAR and Tier 1 ratios were well above the Bank of Thailand’s minimum requirements of 8.5 per cent and 4.25 per cent.
