TMB reports 4% year-on-year rise in Q1 pre-provision operating profit
TMB Bank and its subsidiaries on Monday reported a pre-provision operating profit (PPOP) of Bt4.76 billion, an increase of 4 per cent compared with the same quarter last year.
TMB maintained set aside relatively high loan-loss provisions of Bt2.24 billion for the first three months of this year, an increase of 19 per cent compared with the first quarter of 2016. The ratio of non-performing loans (NPLs) was kept down to 2.5 per cent and the coverage ratio remained strong at 144 per cent.
After provisions, net profit was reported at Bt2.09 billion, relatively stable when compared with the previous year.
The bank’s chief executive officer Boontuck Wungcharoen said loan growth was moderate at 1 per cent in the first quarter. The growth was mainly driven by continued growth of mortgage lending from last year, while commercial loans remained flat.
Total deposits declined by 2 per cent, primarily because of a decrease in corporate deposits. Meanwhile, the retail deposit base continued to grow, with a 2-per-cent increase in retail transactional deposits during the quarter, which mainly resulted from 13-per-cent growth of the TMB All Free Account. The TMB No Fixed Account also expanded by 2.4 per cent and ME by TMB by 6 per cent.
Net interest income grew by 4 per cent, driven by a higher net interest margin, which increased from 2.98 per cent to 3.21 per cent. Non-NII improved by 10 per cent despite a 23-per-cent decline in commercial fees, which was due to decrease in loan-related fees. Nonetheless, retail fees continued to grow by 26 per cent, mainly driven by mutual-fund fees.
The bank’s total revenue rose by 6 per cent to Bt8.89 billion. Operating expense grew 5 per cent to Bt4.10 billion. The increase in expenses was mainly from higher marketing costs for launching new products. As a result, PPOP grew by 4 per cent from the same quarter last year to Bt4.76 billion.
NPLs were relatively unchanged at Bt17.58 billion.
The bank maintained a capital adequacy ratio under the Basel III framework of 18.2 per cent and Tier 1 ratio of 12.8 per cent, which remained higher than the Bank of Thailand’s minimum requirement of CAR at 9.75 per cent and Tier 1 at 7.25 per cent.
