Tisco's net profit plummets under impact of Covid-19
Tisco Group reported a 20.1 per cent fall in net profit year on year in the first half of 2020 due to the Covid-19 outbreak.
The group on Friday (July 17) reported net profit of Bt2.819 billion.
Suthas Ruangmanamongkol, the chief executive, added that net profit in the second quarter was Bt1.333 billion, down 25.8 per cent.
The expected credit loss in the second quarter was still high, in line with non-performing loans (NPL) that increased to 3.28 per cent. Also, the coverage ratio in future would be lower than the ratio in previous quarters.
The chief executive said that Tisco Group has always controlled and managed the risk in its business, especially NPL.
He said despite the expected economic recovery in the second half of this year, and several businesses reopening, there were numerous negative factors in this period, such as the risk of a second wave of coronavirus infections, drought, and political instability in Thailand.
He forecast that the Thai economy this year would see a sharp contraction. Credit-related businesses would be the ones to grow in the future.
As of June 30, Tisco’s total loans were Bt228.165 billion, down by 4.1 per cent from the slowdown in nano finance and SME loans amid the contracting economy and circumspection in issuing new loans.
Tisco Bank's BIS ratio was at 21.9 per cent, higher than the least capital rate of 11 per cent specified by the Bank of Thailand.