Thailand's TMB and Tisco post net profits

TMB Bank's net profit for 2012 was down from the year before due to extra loan provisions.

Meanwhile Tisco Financial Group showed a higher net profit fromthe previous yearthanks to the robust sales of  automobiles across the country.

TMB and Tisco are the first two Thai banks to announce their financial performance for 2012.

TMB's net profit was Bt1.605 billion, from Bt4 billion in 2011.

Improvements in core operating performance was backed by a 16.94-percent increase in operating revenue, which was driven by both interest and non-interest income.

With the strong operating profit, the bank took the opportunity to clean up remaining legacy of non-performing loans by selling Bt5.7 billion worth, while making extra provisions of Bt528 billion. As a result, the bank and its subsidiaries reported net profit of Bt1.605 billion.

TMB's consolidated gross loans increased by 14 per cent from 2011, driven by performing-loan growth of 17  percent offset by a 26-percent reduction in NPLs

Deposits grew by 9.7 per cent backed by expansions in retail accounts.

It showed a loan-to-deposit rate of 91.2 per cent.

Tisco recorded net profit of Bt3.705 billion against Bt3.26 billion in 2011. The higher profit was contributed by a 23-percent increase in interest income in line with loan growth of 34.2 percent, particularly retail lending, including instalment loans.

However, loan spread declined to 3 percent compared with 3.7 percent in 2011 because of the furious competition for deposits.

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