Tisco reports 12.1 per cent improvement in H1 earnings
Play
TISCO Financial Group’s earnings in the first half increased by 12.1 per cent year on year to Bt2.46 billion thanks to an increase in net interest income and a decrease in provision expenses, it reported to the Stock Exchange of Thailand.
The holding company of Tisco Bank, one of the leading providers of instalment lending, yesterday reported that net interest income in the first six months increased by 11 per cent year on year and provision expenses dropped by 13.9 per cent.
However, non-interest income from its core business dropped by 2.8 per cent because of a decrease in brokerage-fee income by 14.4 per cent and a 15.5-per-cent decrease in basic asset-management fees due to the |subdued capital-market condition.
Banking fees improved by 6.9 per cent from the expansion in bancassurance business.
In the second quarter, net |profit attributed to owners of the company totalled Bt1.2 billion, up by 20.3 per cent year on year, mainly contributed by improved net interest income and lower provision expenses as well.
Total loans and receivables as of June 30 were Bt230.83 billion, down by 1 per cent from the first quarter, because of the subdued domestic economy and the slow recovery of the auto market. Retail lending contributed 70.6 per cent, mainly from auto loans, followed by 19.3 per cent from corporate loans, 7.8 per cent from commercial loans and 2.3 per cent from other loans.
In the second quarter, the proportion of non-performing loans decreased from 3.07 per cent to 3.03 per cent from the first |quarter. The NPL amount |continued to decline after improved credit quality of the loan portfolio.
The company set loan-loss provisions for the second quarter at Bt925.53 million, accounting for 1.60 per cent of average lending, a decrease from Bt1.24 billion in the same period last year.
As of the second quarter, the total loan-loss reserve of the bank was Bt6.25 billion, 143.68 per cent of the minimum required by the Bank of Thailand, which is Bt4.35 billion.
