TMB Bank Public Company Limited (TMB) has announced its 1Q21 consolidated financial statement through the Stock Exchange of Thailand as follows;
TMB reported a net profit of 2,781 million baht in 1Q21, decreased 33.18%, compared to a net profit of 4,163 million baht in 1Q20.
TMB recorded 12,872 million baht of net interest income (NII) in 1Q21, decreased 8.1% from 14,014 million baht in 1Q20 mainly due to the multiple rate cuts throughout 2020 and loan contraction.
In 1Q21, NIM decreased by 6 bps to 3.00% from 3.06% in 4Q20 and decreased by 12 bps from 3.12% compared to the same period last year (YoY). The reduction in NIM was due to a decline in loan yield and partly from annual review of mortgage portfolio accounting estimates change in Effective Interest Rate (EIR) to reflect competition and payment behavior of customers, offsetting lower cost of deposit from balance sheet optimization. However, excluding PPA impact, NIM was 3.08% in 1Q21.
TMB posted 3,971 million baht of non-interest income in 1Q21, declined by 5.0% from THB4,182 million in 1Q20, due to lower gain on investments while net fee and service income still grew. Net fees and service income increased by 7.7% YoY from 2,815 million baht in 1Q20, mainly attributed to mutual fund fees, outweighed by the lower bancassurance fee.
The new wave of COVID-19 posed a challenge to economic recovery and pressure on asset quality. However, the Bank closely monitored the situation and remained prudent. This quarter, the Bank set aside an expected credit loss of THB5,480 million which decreased by 33.5% QoQ but increased by 15.1% YoY. The provision reflects TMB’s stringent forward-looking Expected Credit Loss (ECL) models which take potential impacts on our loan portfolio from relief measures into account and constantly consider Management Overlay to cover macro downside risk.
As of 31 March 2021, NPL ratio on consolidated basis was recorded at 2.75%, compared with 2.50% as of 31 December 2020 and 2.76% at the end of March 2020. Meanwhile, NPL ratio on a bank-only basis stood at 2.59% when compared with 2.38% as of 31 December 2020 and 2.59% as of 31 March 2020.