TMB earnings fall as economy bites

TMB earnings fall as economy bites

TMB Bank reported a 11.81% drop in unreviewed net profit for the first quarter of this year to 1.60 billion baht.

Credit expanded by 0.3% or 1.2 billion baht from the end of 2012 during the quarter, said CEO Boontuck Wungcharoen in a statement on Thursday.

The policy interest rate cut narrowed its net interest margin to 2.87% from 2.95% in the same quarter of last year. Net interest income, however, rose by 6%.

Its non-performing loan ratio was steady at 3.85% while its coverage ratio was at 138%.

The bank revised down its credit growth to 6-8%.

Non-interest income fell by 10% year-on-year, largely due to shrinking mutual fund fees in the wake of slowing demand and lower credit fees while trade finance fees slightly improved, he said.

Operating income therefore rose by 1%, failing to offset a regular increase in expenses.

Deposits grew by 5.5% to 29 billion baht during the quarter, he said.

TMB's largest shareholders as of the latest shareholder register book closing date on March 10 were the Finance Ministry (26.06%), and the Dutch bank ING Bank NV (25.16%).

TMB shares closed Friday's morning session at 2.42 baht, down two satang, in trade worth 200.86 million baht.  

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