Tisco looks to break Q3's record net
Analysts believe Tisco Financial Group is on track to improve on its record-high third-quarter bottom line in the fourth quarter thanks to the bright prospects for its income from fees and interest.
Tisco was the first house in the banking industry to report financial results for the third quarter, with net profit of Bt953 million, marking a new quarterly high.
Net profit for the first nine months was Bt2.71 billion, an increase of 4.6 per cent year on year.
The impressive net profit in the third quarter was driven by interest income from loan expansion, especially loans to small and medium-sized enterprises, which grew by 14.6 per cent from the second quarter. Hire-purchase lending continued to expand, due mainly to the government’s first-car scheme.
Krungsri Securities expects that lending expansion at Tisco, along with the growth in fee income, would further bolster net profit to a new quarterly record.
Maybank Kim Eng Securities (Thailand) expects Tisco’s net profit in the fourth quarter to reach Bt1 billion, while net interest margin (NIM) is projected to be stable at 2.9-3 per cent. The brokerage house estimates net profit this year will expand by 15 per cent and grow by 21 per cent next year on continued strong momentum of loan growth.
Maybank Kim Eng Securities (Thailand) predicts Tisco’s NIM will widen slightly in 2013 because the group is actively expanding high-yield loan products.
Asia Plus Securities noted that lending in the first nine months at Tisco grew 21.8 per cent, higher than the 18-20 per cent in fiscal year loan growth forecast by Tisco and near the 22 per cent forecast by its analysts.
Fee income from bancassurance and securities businesses was higher than Asia Plus expected.
Asia Plus revised up its projection of Tisco’s net profit this year to Bt3.693 billion from Bt3.691 billion based on a new assumption of loan growth of 30 per cent, up from 23 per cent.
