Wednesday, September 30, 2020

Covid-19 pandemic pushes down TISCO earnings by 14.2%

Apr 20. 2020
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By The Nation

TISCO Financial Group’s net profit for the first quarter was Bt1.484 billion, down 14.2 per cent year on year, due to the impact of Covid-19 and the use of Thai Financial Reporting Standards 9 (TFRS 9), TISCO CEO Suthas Ruangmanamongkol said on Monday (April 20).

He explained that the pandemic has caused the economy to slow down and made doing business more risky, while this is the first time that TFRS 9 is being used.

“The company is ready to pay Bt7.75 per share in dividend from the January 1 to December 31, 2019 turnover, but we will have to mark the ‘exclude dividend’ sign on April 27 this year,” he said.

“The challenges faced by businesses this year is that more loans are turning into non-performing loans due to the economic condition, business slowdown, additional standards and regulations as well as uncertainty about economic recovery after the crisis.

“These factors are shifting the company’s turnover this year to be different from what was expected,” he said.

Suthas added that since the pandemic is having an impact on all sectors, such as tourism, manufacturing, export and private consumption, “it is causing high volatility in global financial markets, resulting in economies going into recession”.

He said: “The International Monetary Fund expects the global economy to fall to 3 per cent, the highest drop in almost 100 years, while TISCO expects the Thai economy to take a similar hit this year.”

Suthas also said that there are three factors that need to be monitored: the impact of the pandemic and lockdown measures, the effect the relief measures are having on the economy and people’s spending, as well as the ongoing drought situation.

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