TMBThanachart reported 1Q22 net profit of THB 3,195 million, an increase 14% from previous quarter and 15% from the same period last year. Asset quality was under control. NPL ratio declined from previous quarter to 2.73%.

Bangkok, 20 April 2022 - TMBThanachart Bank Public Company Limited or TMBThanachart announced its financial performance for 1Q22. The Bank reported Pre-Provision Operating Profit or PPOP of THB 8,818 million which rose 4% from previous quarter, supported by efficiently-managed operating expenses. Asset quality was in line with plan and NPL ratio declined to 2.73% from 2.81% in previous quarter. As a result, provision expense was at THB 4,808 million, lower by 4% from last quarter. After provision and taxes, the Bank recorded 1Q22 net profit at THB 3,195 million which increased 14% from 4Q21 and 15% from 1Q21.

Mr. Piti Tantakasem, CEO, mentioned “For the first quarter of the year, the overall performance was in line with plan. For 2022, the Bank aims to resume loan growth as economy started to recover. However, the growth will still be selective and focus mainly on target segments such as hire purchase and mortgage which are our area of expertise and we are also one of key players in these markets.

In addition, the Bank has recently set up a subsidiary “ttb consumer” which as part of post-merger restructuring plan. ttb consumer will help drive growth of credit card and personal loan portfolio which currently accounts for approximately 5% of total loans. Therefore, we see there is still room to grow and a potential growth from our customer base which doubled in size after the merger.

The resumption of loan growth at the Bank’s level and from ttb consumers would support the recovery of interest income and yield on loan going forward. It could also be a catalyst for revenue synergy realization from cross-selling opportunity in the future.

In terms of asset quality, the Bank has maintained prudent risk management and has continued to improve loan portfolio quality. As a result, portfolio quality is under control and NPL ratio is lower than industry average. For loan under debt relief program, the outstanding has continued to decline and most customers who exited the program are able to resume their normal debt service. And the trend is improving as economic activities have recovered. Nonetheless, the Bank will continue to be stringent and keep high provision level in order to be prudent and to maintain strong financial position.

The details of 1Q22 financial performance are as follows.
As of 1Q22, deposit was THB 1,360 billion which expanded 1.6% from previous quarter (QoQ). Key driver was retail deposit, led by ttb Up and Up. Key flagship products, ttb all free and ttb no-fixed continued to grow as well.

In terms of loans, the Bank could grow loans in target segments as planned. In 1Q22, hire purchase loan and mortgage rose by 1.2% QoQ and 0.8% QoQ, respectively. However, the Bank saw a decline from large corporate loans due mainly to repayment from working capital loans. As a result, total loan was reported at THB 1,366 billion, relative flat or decreased slightly by 0.4% from previous quarter.

On the revenue side, the Bank generated Pre-Provision Operating Profit or PPOP of THB 8,818 million, up 4.2% from THB 8,461 million in 4Q21 (QoQ) and close to THB 8,898 million in 1Q21 (YoY). Key driver was efficiently-managed operating expenses. In 1Q22, operating expense totaled THB 6,987 million which reduced by 12.7% QoQ and 14.9% YoY. This helped reduce pressure from revenue side which was still slow down. Total operating income in 1Q22 was THB 15,774 million, down 4.4% from 4Q21 and 7.9% from 1Q21 due mainly to a slowdown from retail fee income. Fee income from commercial customers, on the other hand, showed sign of improvement following economic recovery.

For asset quality, non-performing loans or NPLs as of 1Q22 stood at THB 42,144 million, relatively flat when compared to THB 42,120 million as of 4Q21. Meanwhile, NPL ratio declined to 2.73% from 2.81% in previous quarter. As a result, the Bank set aside provision of THB 4,808 million which dropped by 4.2% QoQ and 12.3% YoY. Such a provision level is still higher than normal business level and sufficient. This can be reflected by NPL coverage ratio which rose to 132% from 129% in previous quarter.

Lastly, capital adequacy was among the top tiers in banking industry. As of 1Q22, the preliminary CAR and Tier 1 was reported at 19.4% and 15.4%, respectively. The figures were well-above D-SIB’s minimum ratios of 12.0% and 9.5% required by the Bank of Thailand.”

Mr. Piti Tantakasem concluded “Apart from the resumption of deposit and loan growth, we also have plan for digital investment in this year. Our aim is to develop and differentiate our services and products to enhance our competitiveness as well as to deliver better customers’ experience.”