Tisco profit jumps 17% in first-half

However, the bank's outstanding loans increased to Bt95 billion as of June, while its capital adequacy ratio fell to 10.2 per cent from 11.4 in the first quarter, and 11.9 per cent at the end of last year.

In the second quarter alone, lending grew by Bt5.6 billion, up 5.5 per cent from the first quarter.

The bank's non-performing loans are 4.3 per cent, slightly higher than 4 per cent last year. Its interest spread also increased from 3.3 per cent last year to 3.9 per cent now, but decreased from the end of last year when it was 4 per cent.

The bank today will increase its hire-purchase interest rate by 0.25 per cent, the same level as some big leasing companies such as Thanachart, Kiatnakin and Kasikorn Leasing.

Oranuch Apisaksirikul, director and senior executive vice president of the bank, said that in the first half, the bank made a net profit of Bt930.37 million - an increase of Bt136.75 million or 17.2 per cent. Net interest income and dividends in the second quarter were about Bt1 billion, an increase of Bt195.29 million or 22.1 per cent year on year.

Non-interest income in the second quarter was Bt729.29 million, an increase of 42.6 per cent year on year. This consists of brokerages fees of Bt160.99 million, capital gain of Bt114.48 million and fee income of Bt358.92 million. The fee income is mainly from bancassurance, wealth management and mutual funds.

"Our spread is lower - from 4 per cent at the end of last year to 3.9 per cent - because loan growth in the second quarter was not as much as in the first," said Oranuch.

CEO Pliu Mangkornkanok said today they would raise the hire-purchase interest rate for new cars by 0.25 of a percentage point to 3.25 per cent. "The capital adequacy ratio decreased to 10.2 per cent because of aggressive loan growth. However, it's still enough for future business expansion.

Hire-purchase loans take the biggest portion - 75 per cent of outstanding loans - of the bank.