Tisco Financial Group Public Company Limited (TISCO) has announced its yearly financial statement of 2019 through the Stock Exchange of Thailand as follows:
In 2019, the net profit of TISCO was 7,270.23 million baht, increased by 254.54 million baht or 3.6% (YoY), mainly driven by lower provision expense. Net interest income dropped by 1.8% (YoY), in line with declining loan spread to 4.8%. Non-interest income declined due to the absence of extraordinary income from the gain on sale of investment in 2018.
Meanwhile, fee income from core business was decelerated due to the unfavorable economic conditions. However, TISCO recorded performance fee income from asset management business which recorded at the end of the year in compliance with TFRS 15 – “Revenue from Contracts with Customers”.
In 2019, TISCO recorded an asset management performance fee income of 362 million baht. In addition, provision expense declined by 73.9% (YoY), in aligning with the credit quality of loan portfolios together with the adjustment of excess reserve level to ensure readiness prior to TFRS 9 implementation. Accordingly, the Company maintained a high level of return on average equity (ROAE) at 18.9%.
In 2019, TISCO reported NPLs amounting 5,839.47 million baht, decreased by 1,036.74 million baht (15.1% YoY). NPL ratio reduced from 2.86% to 2.40% (YoY), partly due to the completion of payment hierarchy and loan classification alignment. Consequently, NPLs of related clients have been declined and reverted back to the normal level. In addition, TISCO wrote off some bad debt accounts in preparation for TFRS 9 adoption. NPL ratios of retail loans, corporate loans, and commercial loans were 2.84%, 0.71%, and 1.20%, respectively.