TMB Records a Lower Profit in 3Q at ฿1.6Bn after Recognizing ฿6.8Bn from ECL!

TMB Bank Public Company Limited (TMB) has reported its 3Q20 consolidated financial statement through the Stock Exchange of Thailand as follows;

TMB reported a net profit for the third quarter of 2020 at 1,619 million baht, decreased 23.32% when compared to the same period of last year. The decrease was mainly due to a drop of 33.5% in non-interest income for the quarter and a newly recognition of expected credit loss amounting 6,863 million baht.

 

For the third quarter of 2020, TMB recorded THB13,227 million of net interest income (NII) in 3Q20, 1.4% increase when compared to previous quarter (QoQ) and 113.1% increase from the same period last year (YoY).

TMB posted THB2,984 million of non-interest income in 3Q20, which decreased by 15.3% from the last quarter (QoQ) and 33.5% from the same period last year (YoY). Net fees and service income was reported at THB2,633 million which grew by 22.0% QoQ and 34.0% YoY. Such increase was largely contributed by growth in retail fees especially from mutual fund fee due to end of front-end fee waive and new IPOs launch in this quarter while bancassurance fee slightly expanded from the previous quarter, thanks to higher BA auto fee as TMB saw a new booking from auto business after easing lockdown period. Commercial fees still slowed down QoQ given the slower economic environment from COVID-19 crisis.

 

To cope with uncertainties from an economic slowdown caused by the COVID-19 pandemic as well as the financial relief programs for customers affected by COVID-19 outbreak from in response to the BoT’s measure, TMB remained prudent and set aside higher expected credit loss of THB6,863 million in 3Q20 which increased by 38.0% QoQ and 137.2% YoY. ECL for the first 9-month of 2020 was THB 16,595 million, rose by 129.8% YoY. The higher provision reflected the forward-looking Expected Credit Loss (ECL) models and management overlay within the deteriorating economic environment.

 

NPL ratio on consolidated basis was recorded at 2.33% as of 30 September 2020, compared with 2.34% as of 30 June 2020 and 2.35% at the end of 2019.