TMB first quarter results reflect quality growth

TMB Bank Public Company Limited earned a net of THB1,096 million from the operations of the Bank and its subsidiaries during the first quarter of 2011.

The net profit represents 38.8% increase from THB790 million net profit for 1Q2010 and 33.3% increase from THB822 million net profit for 4Q2010.

Mr. Boontuck Wungcharoen, CEO of TMB, said, the first-quarter net profit was mainly attributed to the improvement in operating income which was driven by growing net interest income, gains on foreign exchange transactions and net fees and service income. The net profit growth was also supported by better loan quality achieved in the quarter.

In line with the Bank’s plan to further reduce NPL ratio by 2% by the end of 2011, non-performing loans amount continued to decline. As at 31 March 2011, the Bank and its subsidiaries’ NPLs were THB34,682 million or 7.51% of total loans, a decrease by THB1,365 million from THB36,047 million or 8.26% of total loans at the end of 2010.

Total loan growth was 4.1% in 1Q2011. The growth was a combination of an increase of performing loans and a decrease of NPLs. On the Bank only basis, performing loans increased by 5.0%, mainly driven by corporate segment. NPLs decreased by 3.9%.

As at the end of the first quarter of 2011, the Bank’s liquidity remained strong with liquid assets accounted for 29.3% of total assets. Loan to deposit ratio were 86.09% compared to 88.0% at the end of 4Q2010. Loan to deposit ratio including Bill of Exchange was 79.98% compared to 82.67% at the end of 4Q2010.

Mr. Boontuck added that the Bank was developing customer value propositions for each segment that represents “Make THE Difference” philosophy to effectively support customers to achieve their financial goals. He said staff were also taking part n the development program to help them realize their full potential to serve customers better, and were pulling together to increase operating efficiency for continuous and sustainable growth.