TTB Reports 45% Growth in 3Q Earnings from Lower ECL

TMBThanachart Bank Public Company Limited (TTB) has announced its 3Q21 consolidated financial statement through the Stock Exchange of Thailand as follows;

In 3Q21, TTB reported a net profit of 2,358 million baht, increased 45.69% from a net profit of 1,618 million baht in 3Q20. The increase was mainly due to the lower provision during the period.

TTB recorded THB12,577 million of net interest income (NII) in 3Q21, 1.6% decrease compared to the previous quarter (QoQ) and 4.9% decrease from the same period last year (YoY).

Meanwhile, net interest margin stayed at 2.95% in 3Q21 which marginally decreased 3 bps from 2.98% in 2Q21 but widened 3 bps YoY from 2.92% in 3Q20.

The Bank posted THB3,086 million of non-interest income in 3Q21, which slightly dropped by 1.0% from the last quarter (QoQ) but increased by 3.4% from the same period last year (YoY).

In this quarter, TTB set aside expected credit loss of THB5,527 million, equivalent to a credit cost of 161 bps, which rose by 0.7% QoQ but dropped by 19.5% YoY. The reduction in YoY was due mainly to higher base of ECL in 3Q20 as the Bank set aside high provisioning under the expectation of a prolonged COVID-19 situation.

As of 30 September 2021, NPL ratio on a consolidated basis was recorded at 2.98%, compared with 2.89% at the end of June 2021 and 2.50% as of 31 December 2020. The rise in NPL ratio was mainly from softening loan growth and a marginal increase in stage 3 loans.