TMB Expects Earnings to Reach ฿20Bn in 2022, Seeing Auto Loan as Key Driver

TMB will make an aggressive move in 2021 after the merger between the bank and Thanachart Bank is completed. Financial advisor estimates 2022 earnings to reach 20 billion baht, with the key profit drivers for this year such as an increase in revenue from fee and auto loan. However, analyst sees TMB still laggard among banking sector, giving a target price of ฿1.30/share. In addition, TMB has approved a dividend payment at the rate of ฿0.045/share (yield 3.8%) with an XD on April 29, 2021.

 

According to the financial advisor, after successfully completing the merger between TMB Bank Public Company Limited (TMB) and Thanachart Bank, the merged bank would be named TMB Thanachart Bank or TTB, which will propose to the shareholders’ meeting for consideration and approval within this month. This transaction is aimed to expand the distribution channels, particularly, from auto loan and fee income.

 

TMB planned to introduce a one-stop application for comprehensive financial services and products, as well as new loan products, and will lower interest paid cost by transferring it to insurance units and fund investment for a better return to clients.

 

Financial advisor foresaw TMB’s earnings in 2021-2022 will grow more than 10 billion baht each year and from 2022 onwards TMB’s net profit will be at the average of 20 billion baht.  

 

DBS Vickers Securities (DBSVS) sees TMB still laggard among the banking sector in 2021 as loans and deposits will continue their moderate growth, expecting a relatively stable NIM closes to the year 2019, while non-interest income to total assets would be 0.8-0.9%. Cost-to-income will be 47-49% due to merger expenses. DBSVS has revised up 2021 net profit forecast by 9%, giving a target price at ฿1.30/share.