TISCO Reports a Slight Decline in 2020 Net Profit by 16% as Non-NII and ECL Increase

Tisco Financial Group Public Company Limited (TISCO) has announced its yearly financial statement of 2020 through the Stock Exchange of Thailand as follows;

In 2020, TISCO recorded a net profit of 6,063 million baht, decreased 16.60% from a net profit of 7,270 million baht in 2019. The decrease was driven by COVID-19 pandemic that affected an economic slowdown putting pressure on core revenues from banking businesses, whereas loan loss reserves increased reflecting the current economic situation.

 

Net interest income grew by 2.4% (YoY) driven by an effective cost management during a declining interest rate environment. Non-interest income declined by 12.6% (YoY) particularly banking fee income from both bancassurance business and loan-related fee income following lower new business volume.

On the contrary, fee income from capital market businesses improved by 12.8% (YoY) due to higher trading volume and the issuances of new funds that responded to investors’ needs amid volatile capital market.

Operating expenses decreased in relation to revenue contraction. Expected credit loss increased from the previous year, reporting at 1.42% of average loans, to cushion against potential risk arising from economic uncertainties. Meanwhile, TISCO stated that it maintained close monitoring and follow-ups to all client groups, resulting in a slight increase in NPL ratio from the previous year to 2.50% at the end of 2020.