TCAP to remain strong after TBank-TMB merger

It indicated that after the merger between Thanachart Bank and TMB Bank, it would have good potential for growth as it would hold more than a 20-per-cent equity stake in the merged bank. Additional investments in the subsidiaries that generated consistently good profit were also planned. 

“Net profit on the consolidated income statements for the third quarter of fiscal 2019 was Bt4.6 billion. Net profit attributable to the company was Bt2.47 billion, representing an increase of Bt573 million or 30.17 per cent compared to the previous quarter. For the nine months ended September 30 2019, net profit attributable to the Company was Bt6.38 billion. The strong performance was due to the success of Thanachart Bank, a subsidiary of TCAP, in implementing A customer-centric strategy that placed emphasis on becoming a bank of choice with customers. As a result, Thanachart Bank was able to achieve strong performance in a continuous manner. Noteworthy is the fact that the Bank’s third-quarter 2019 net profit also hit a record high,” said Somjate Moosirilert, chief executive of TCAP.

“After the Company underwent business restructuring by purchasing the ordinary shares of the subsidiaries and also the investments from Thanachart Bank and selling to TMB Bank all the ordinary shares held by TCAP in Thanachart Bank, TCAP purchased the newly issued ordinary shares of TMB Bank. The objective was to facilitate the merger between Thanachart Bank and TMB Bank. In this connection, TCAP will have excess liquidity of no less than Bt10 billion and of that excess liquidity, the Company will use not more than Bt5 billion to purchase treasury shares. It will also pay special dividends to shareholders at the rate of Bt4 per share,” he added..

TCAP’s businesses still have strong potential following the merging of Thanachart Bank with TMB Bank, mainly because the assets of the merged bank almost doubled in size. In consequence, the competitiveness and profitability of the merged bank were enhanced. The improvements will, in turn, significantly reflect on TCAP’s performance as TCAP is also a major shareholder holding more than 20 per cent equity stake in the merged bank. In addition, TCAP received healthy dividend returns from its subsidiaries which achieved strong performance in the first nine months of fiscal year 2019. These subsidiaries include Thanachart Securities Public Company Limited, Thanachart Insurance Public Company Limited, Ratchthani Leasing Public Company Limited, TS Asset Management Company Limited, MAX Asset Management Company Limited, and NFS Asset Management Company Limited. TCAP also invested in other listed companies such as MBK Public Company Limited and Patum Rice Mill and Granary Public Company Limited (PRG).

“Taking into account the above, TCAP will be considered as a company with strong growth potential. This is mainly due to several contributing factors including the equity stake it held in the merged bank, more active management of non-performing assets, and strong performance of its subsidiaries as well as its investments in other business areas. As a result, TCAP is expected to continue delivering a healthy performance and is capable of achieving strong and sustainable growth in the future.”