TMB Bank delivered a 66% year-on-year surge in its third-quarter net profit, thanks to a 17.3% year-on-year increase in net interest income and a 4.5% year-on-year rise in non-interest income.
The strong quarterly earnings of the country's seventh-largest bank by assets bodes well for other banks, which will release their earnings in coming days. Tisco Financial Group started the local banks' earnings season last Friday with an 18.65% year-on-year rise in its quarterly earnings to 1.13 billion baht from 952.98 million baht a year earlier.
TMB Bank said its net profit for the July-to-September period amounted to 1.87 billion baht, up from 1.13 billion in the corresponding period last year, according to its filing to the Stock Exchange of Thailand (SET) yesterday.
In the third quarter the bank set aside provisions for bad debt, doubtful accounts and impairment loss of debt securities at around 1.20 billion, the same level as a year ago, but down sharply from 3.57 billion in provisions in the second quarter.
Its quarterly net interest income surged to 5.19 billion baht, driven by higher yields on earnings assets and loan growth, especially from SMEs.
TMB Bank's net interest margin widened to 3.07% from 2.81% in the same period last year.
The bank's consolidated loans in the third quarter expanded 9.1% year-on-year and 5% from the end of 2012 to 475.29 billion baht, while its bad credit amounting to 21.68 billion baht fell to 3.8% of its outstanding loans from 4.1% at the end of last year.
Its non-interest income during the third quarter stood at 1.89 billion baht, up 4.5% from a year before, driven mainly by net fee and service income.
For the first nine months, TMB Bank's net profit was 3.94 billion baht, a 35.6% year-on-year increase.
Shares of TMB closed on the Stock Exchange of Thailand at 2.88 baht yesterday, up eight satang, in trade worth 1.69 billion baht.