TMB net profit jumps 125%
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TMB Bank's net profit jumped 125 per cent on year to Bt1.8 billion, thanks to expansion in all businesses.
Boontuck Wungcharoen, TMB CEO, attributed the jump to the rise of operating income by 22 per cent compared with the first quarter of 2012 and efficient cost management which resulted in a marginal increase of operating cost by only 3 per cent.
"We have managed to raise both interest and non-interest incomes. In this quarter, net interest margin (NIM) went up to 2.95 per cent or 44 basis points from 2.51 per cent compared to the same period of last year due to effective deposit cost management and the increase of return on lending," he said.
Net interest income rose by 21 per cent from last year. Meanwhile, the bank gained 44 per cent higher on fee income from the mutual funds, bancassurnce and lending businesses.
While performing loans increased by 17 per cent on year, non-performing loans dropped by Bt230 million from 4.1 per cent of outstanding loans at end-2012 to 4.0 per cent. Provisioning coverage ratio also increased from 113 per cent at end of 2012 to 118 per cent in this quarter.
As of March, TMB’s capital adequacy ratio (CAR) and tier-1 capital were 17.3 per cent and 11.5 per cent, respectively.
