Tisco Financial Group Public Company Limited (TISCO) has reported its 3Q21 consolidated financial statement through the Stock Exchange of Thailand as follows;
TISCO reported a net profit in 3Q21 at 1,560 million baht, decreased 3.17% from a net profit of 1,611 million baht in 3Q20. The decrease was mainly due to the intensified COVID-19 outbreak and the lockdown measure in many areas, resulting in a slowdown in core businesses.
Net interest income declined by 4.9% YoY following loan contraction, whereas fee income from core businesses dropped by 12.1% YoY particularly from bancassurance business which was affected by weak economic activities during lockdown.
Expected credit loss (ECL) totaled 254.34 million baht, declined YoY, compared with 604.95 million baht in the third quarter of 2020, and accounted for 0.5% of average loans. This was resulting from the portfolio contraction and better-than-expected asset quality control. The Company has accumulated loan loss reserves to cushion against the severe situation arising from the COVID-19 outbreak.
Moreover, the pandemic started to show a sign of improvement toward the end of the third quarter including the lockdown easing and the increased rate of vaccination, consequently the asset quality outlook tended to improve given the current level of reserve.
At the end of the third quarter of 2021, the company reported NPLs amounting 6,094.40 million baht, increased by 227.36 million baht (3.9% QoQ), and accounted for NPL ratio increased to 2.98%. This was mainly caused by NPLs relapse from some restructured clients of hire purchase and Auto Cash loans, which at this level, NPLs were better than anticipated despite the severe outbreak and lockdown situation.
TISCO stated that the pandemic started to show a sign of improvement toward the end of the third quarter including the lockdown easing and the increased rate of vaccination, thus the asset quality outlook was more likely to improve accordingly. Yet, the Company maintained the stringent loan classification to be in accordance with TFRS 9.