TMB Bank Plc, CIMB Thai and LH Financial Group Plc have reported growth in new loans in the first quarter of this year in line with expansion in the country’s economy.
TMB Bank Plc announced yesterday that the bank expanded its deposit base by 1.8 per cent to Bt661 billion in the first quarter, compared with the year-earlier quarter, driven by the retail segment.
Loans for the three months grew by 0.2 per cent from the final quarter of last year to reach Bt687 billion, backed by mortgages.
However, the bank’s net profit fell 7.2 per cent to Bt1.57 billion for the quarter, compared with the last quarter of last year, due mainly to lower non-interest income coupled with the one-time set-up of an employee retirement benefits scheme following a revision of the Thai Labour Protection Act.
Asset quality is on track and the non-performing loans (NPL) ratio stayed at 2.81 per cent, while its coverage ratio remained at a high 145 per cent, the bank’s chief executive officer Piti Tantakasem said in a press statement yesterday.
Piti said the bank has focused on a deposit-led strategy by expanding its customer base through flagship deposit products.
“Once these are learned and understood by our customers, we then offer them other products and services including loans, bancassurance, and investments that fit and answer their financial needs,” Piti said. “At TMB, we do not only make the difference on products and services but would also like to offer more benefits to the customers under the Get More with TMB strategy.
“Under this strategy, TMB is offering more benefits in the form of accident insurance with coverage of up to 20 times a deposit, to a maximum of Bt3 million, to TMB All Free customers who have maintained a minimum balance of at least Bt5,000. As we are continuing to offer products and benefits, TMB can expand its customer base and deposit continuously.”
At CIMB Thai Bank Plc, net profit in the first quarter jumped 92.4 per cent from the year-ago quarter to Bt325 million.
The bank’s acting president and chief executive officer Omar Siddiq said in a press statement yesterday that the improvement was mainly attributed to 3.4 per cent growth in operating income and a 17.4 per cent drop in provisions, partially offset by an 8.2 per cent increase in operating expenses.
As of March 31, total gross loans (including loans guaranteed by other banks and loans to financial institutions) stood at Bt230.9 billion, an increase of 1.4 per cent from the end of 2018. Deposits (including bills of exchange, debentures and selected structured deposit products) stood at Bt235 billion, an increase of 0.3 per cent from the Bt234.3 billion at the end of 2018. The modified loan to deposit ratio rose to 98.3 per cent, compared to 97.2 per cent at the end of December.
The gross NPL stood at Bt10 billion, with a stable gross NPL ratio of 4.3 per cent, unchanged from December 31. “CIMB Thai continues to exercise high credit risk underwriting standards and risk management policies.
The bank also focuses on improving productivity and monitoring collection,” Siddiq said.
LH Financial Group Plc yesterday said the company and its subsidiaries’ boosted net profit by 4.6 per cent to Bt806.7 million, compared with the first quarter of 2018. Dividend income jumped 51.5 per cent and was accompanied by a 69.7 per cent drop in bad debts and doubtful accounts.
Basic earnings per share for the first quarter of 2019 were Bt0.038, an increase of Bt0.002 per share, or up to 5.6 per cent when compared to the first quarter of 2018.
Land and Houses Bank Plc increased its first-quarter net profits by 14.1 per cent from the year-earlier quarter to Bt641.6 million.
At the end of March, the value of loans extended to customers reached Bt186.45 billion, an increased of Bt4.31 billion, for a rise of 2.4 per cent from the end of 2018.