Tisco Financial Group, the holding company parent of Tisco Bank, posted profit gains for both the third quarter and the first nine months, supported by strong loan growth and higher interest- and fee-based revenue.
The bank posted a net profit for the first nine months of 2.71 billion baht, up by 4.6% year-on-year, driven by interest revenue growth of 21.4%.
Outstanding loans as of last month were 228 billion baht, up by 23.3% from last December, the bank said in a statement to the Stock Exchange of Thailand.
Retail banking, Tisco Bank's largest loan portfolio, totalled 70.5% of total outstanding loans, with commercial loans accounting for 18.1%, small and medium-sized enterprise loans 9.2% and other loans 2.1%.
Its core business, auto finance, represented 93% or 150 billion baht of total retail loans, with year-on-year growth over the first nine months of 20.4%.
However, loan interest spreads declined to 3.1% from 4% as a result of rising interest rates and increasing funding costs in line with the higher levy requirement to the Financial Institution Development Fund.
The bank also booked improving non-interest income for the first nine months at 4.31 billion baht, up by 37.6% year-on-year, supported by fees from bancassurance service and brokerage.
For the third quarter, Tisco posted a net profit of 953 million baht, up by 6% year-on-year, thanks mainly to loan expansion of 25.6%.
Loan growth led to total interest revenue gaining 19% for the quarter despite the falling loan spread, it said in the statement to the SET. Non-interest income for the third quarter was 1.64 billion baht, up by 48% year-on-year.
Improving fee-based revenue of 62.8% year-on-year was due mainly to strong growth in loan and bancassurance business as well as a 9.2% gain in brokerage fees as its market share in this segment climbed.
Shares of TISCO closed yesterday on the SET at 45.50 baht, down three baht, in trade worth 400 million baht.