TMB Records over 61% Increase in 2Q Profit to ฿3Bn as NII Jumps 105%

TMB Bank Public Company Limited (TMB) has reported its consolidated financial statement of 2Q20 through the Stock Exchange of Thailand as follows;

TMB reported a net profit of 3,094 million baht in 2Q20, increased 61.42% when compared to a net profit of 1,917 million baht in 2Q19.

In 2Q20, TMB recorded THB13,045 million of net interest income (NII), a 6.9% decrease when compared to the previous quarter (QoQ) but 105.6% increase from the same period last year (YoY).

 

The Bank posted THB3,523 million of non-interest income in 2Q20, which decreased by 15.8% from the last quarter (QoQ) but increased by 38.3% from the same period last year (YoY). The drop from the preceding quarter was due mainly to lower net fee and service income from retail fees and commercial fees which impacted by the effects of COVID-19 pandemic.

 

Deposit expanded 3.2% YTD to THB1,443 billion as of June 2020. Key contributors were supported by retail flagship products. No-Fixed and ME Save significantly grew by 29.1% and 20.8% YTD, respectively. Growth in transactional deposit was on track, led by TMB All Free, flagship retail transactional product which registered its growth by 15.5% YTD, following the launch of a new feature of free accident protection insurance for customers who maintain THB5,000 in an All Free account.

As a result, retail deposits represented 74% of total deposit. Nonetheless, the Bank continued to optimize deposit mix by replacing high cost deposits with flagship hybrid products as well as converting retail deposits to other investment products.

 

Given the current trend on asset quality as well as economic uncertainty, TMB remained prudent and set aside THB 4,972 million of expected credit loss (ECL) in the second quarter of 2020. The higher provision in this quarter was due to an extra ECL of THB1,600 million for THAI’s bonds exposure which is now under rehabilitation and as a management overlay.

Meanwhile TMB has continued to proactively write-offs with NPL sales as well as the pre-emptive debt restructuring following announcement of BOT’s relief measures. As a result, stage 3 loans were reduced to THB38,805 million, representing an NPL ratio of 2.34% as of June 2020. This reflected the Bank’s prudent operation and NPL management.