TISCO Debuts the 1Q21 Earnings Season with a 18% Growth in NP from Business Operations

Tisco Financial Group Public Company Limited (TISCO) has announced its 1Q21 consolidated financial statement through the Stock Exchange of Thailand as follows;

TISCO reported a net profit of 1,763 million baht in 1Q21, increased 18.68% from a net profit of 1,486 million baht in 1Q20, driven by the improvement in core business operations particularly fee income from capital market businesses and the recognition of extraordinary gain from financial instruments, together with a decline in ECL following an effective asset quality control.

 

Compared to the first quarter of 2020, net interest income decreased by 10.1% (YoY) caused by a contraction in loan portfolio and decreasing proportion of high yield loans. Whilst, non interest income grew by 36.9% (YoY) mainly due to an expansion in fee income from capital market businesses, which included asset management basic fee income from the issuances of new foreign investment funds that received satisfactory responses from investors, brokerage fee income from higher trading volume, and investment banking fee from underwriting service during the quarter.

Furthermore, TISCO recorded gains on financial instruments from an increase in investment value. On the other hand, banking fee income weakened from the bancassurance business that was affected by the slowdown in economic activities compared to the first quarter of last year.

 

Expected credit loss (ECL) decreased from the first quarter of 2020, reporting at 1.50% of average loans, stemming from an improvement in asset quality thanks to an effective asset quality control, along with the Company maintained a prudent provisioning policy to cushion against any potential risks arising from the resurgence of the outbreak in early April. NPL ratio stood at 2.51%, consequently coverage ratio at the end of the quarter remained high at 221.8%.

 

At the end of the first quarter of 2021, the Company reported NPLs amounting to 5,531.86 million baht, decreased by 86.62 million baht (1.5% QoQ), and accounted for a stable NPL ratio of 2.51%. The improvement in credit quality was a result of an effective asset quality control which led to most clients being able to resume their normal debt repayment after the expiry of debt relief measures in the earlier phase, aligning with the unwinding outbreak situation and economic recovery in the first quarter.