TMB Bank Plc on Monday announced its financial results for the first half of 2017, The Bank and its subsidiaries reported a pre-provision operating profit (PPOP) of Bt9.89-billion, an increase of 10 per cent over the same period last year.
TMB maintained its prudent provisioning and set aside a relatively high Bt4.52-billion in the first half of this year, an increase of 17 per cent over the same period last year. The non-performing loans (NPL) ratio increased slightly to 2.56 per cent and the coverage ratio remained high at 140 per cent. After the provision is factored in, net profit is reported at Bt4.426 billion, an increase of four per cent.
The bank's CEO Boontuck Wungcharoen said loans grew by 3.9 per cent in the first half of this year, despite contraction in SME sector loans. Loan growth was primarily driven by the continuing growth of mortgage and corporate loans, reflecting a better recovery trend. Deposits expanded by 2.4 per cent from the previous quarter, resulting in flat deposit growth for the first six months. Retail deposits continued to increase at 3.6 per cent for the six-month period.
The TIMB All Free deposit scheme enjoyed growth of 26 per cent during the first six months. In addition, No-Fixed and ME digital banking also grew at 10 per cent and eight per cent respectively over the same period, he said.
Boontuck added that TMB’s overall operating performance continuously improved, which he attributes to delivering products and service that meet the needs of customers. He pointed to the bank’s philosophy of “Need-based Bank” and “Simple & Easy”. Nonetheless, he says, TMB remains prudent in its business operations and focus on ensuring asset quality and strong coverage ratio.