TMB reports 76 per cent jump in pre-provision 9-month operating profit

Apart from the core operating performance, which the bank described as being moderately on track, the bank recognised a Bt12 billion gain from a deal to sell 65 per cent stakes of TMB Asset Management Co Ltd (TMBAM) for a partnership with Eastspring Investment (Singapore) and gain on a change in control from a subsidiary to a 35 per cent associated company. 
With the higher PPOP, the bank set aside an additional provision from normal level in preparation for IFRS 9 and for asset quality management. Coverage ratio, as a result, increased to 157 per cent from 143 per cent on December 17. Net profit was recorded at Bt9.9 billion in the first nine months of this year, up 54 per cent from the first nine months of last year. 
In the first nine months of this year the bank also expanded the deposit base by 4.5 per cent year to date (YTD) to Bt639 billion, driven mainly by a continuous growth in retail deposit through flagship products. TMB No-Fixed grew 13 per cent for the period, or by Bt30 billion, and ME Save, digital deposit, rose 10 per cent, or by Bt4.1 billion. 
On the loan side, performing loans grew 3.3 per cent for the period to Bt646 billion, primarily boosted by retail loans, especially mortgage which increased 13 per cent or Bt18 billion. The bank has ensured mortgage portfolio quality by focusing on the salary-earner segment and loan sizes of less than Bt5 million. In terms of commercial loans, large corporate loans remained resilient and grew by 4 per cent for the period, or by Bt9 billion. Small SME loans are slowly recovering as the bank expanded loans selectively in order to ensure quality growth. As a result, its 9M18 small SME loans stayed relatively stable from the end of year. 
The bank’s chief executive officer Piti Tantakasem said that TMB is committed to offering better products and services to customers/
“TMB is confident that partnering with Eastspring will create positive impact to both TMB and TMBAM customers as Eastpring has global expertise in asset management in various dimensions which will uplift TMBAM’s capabilities and strengthen TMB’s Open Architecture strategy,” Piti said. “Our customers will have more opportunities to get access to world-class products and services and more variety of leading foreign mutual funds. This will enable our customers to ‘Get More’. 
“It has been four years since TMB Open Architecture was launched and has offered best-in-class products from leading asset management companies to all customer groups. The platform has continued to expand with Krungthai Asset Management as the latest asset management joining the open architecture platform in October. 
Customers now can invest with nine leading assetmanagement providers at TMB,”he said.