Bangkok, July 12 – TISCO Group reveals the first half of 2023 with a net profit of 3,646 million baht, stable from the previous year. Loan growth of 5.2%, bad debt reserves remain strong at 224%, Thai economy expected to grow 3.5-4% this year
Mr. Sakchai Phichapat, Chief Executive Officer of TISCO Group, revealed that in the first half of 2023, TISCO Group posted a net profit of 3,646 million baht, similar to the same period last year. Loans grew strongly at 5.2%, supported by continued growth in the large corporate segment. and car title loans including used car loans and motorcycle loans The company's total income has increased. Although the cost of finance will increase in line with the policy interest rate. TISCO Group accelerated business expansion in the mortgage loan group under the brand "Somwang Ngern Sang Dai" by opening more than 100 new branches and the loan volume grew by more than 12% in the first half of the year. which is according to the plan The level of non-performing loans (NPL) slightly increased to 2. 2%, which the company has an allowance for doubtful debts, ready to support risks from all surrounding factors Fee income remained weak in line with the overall unfavorable capital market conditions.
For the remainder of 2023, the Thai economy is expected to grow more than the first half of the year. TISCO estimated that The Thai economy this year will grow by about 3. 5-4%, driven mainly by tourism and household consumption, which tend to continue to grow well. However, the delay in government establishment has made public investment and budget Both fixed budget and investment budget have to be delayed fragile global economic outlook Protracted geopolitical conflict As well as the sudden increase in interest rates in the global market that may cause unintended consequences, these are risks that must be closely monitored. Meanwhile, rising prices of goods and services continue to put pressure on the cost of living and debt serviceability of Thai households. In a situation where overall household debt is at a high level like today, TISCO Group continues to create growth opportunities in specialized businesses. Be a part of solving Thai household debt problems. by helping Thai people earnestly plan their finances in all target groups Accelerate the expansion of branches, fulfillment, money can order To increase the opportunity to access credit in the system for communities and small businesses according to the principle of Responsible Lending and sustainable household debt solution to avoid chronic debt (Persistent Debt) through debt consolidation. to reduce the interest burden for customers, etc.
Summary of results for the second quarter of 2023, the company reported a net profit of 1,854 million baht, an increase of 0.3% from the second quarter of 2022, with operating income improving 4.1% from the growth of the lending business. This resulted in a 10.1% increase in net interest income from the same period last year. Although the cost of finance increased by more than 91.8% in the direction of rising interest rates in the market. Meanwhile, non-interest income declined 8.8% owing mainly to the volatility and stagnation of the capital market. In addition, fees from commercial banking businesses softened slightly. Operating expenses rose 12.2%, mainly related to investments in line with the company's long-term growth plans. While expected credit loss (ECL) is low at 0. 1% of average loans following the economic recovery from COVID-19, with the company maintaining a high level of reserves for credit losses. ready to support various risks that may occur in the future with a ratio of bad debt to non-performing debt (Loan Loss Coverage Ratio) at 224.0%
For the first half of 2023, net profit amounted to 3,646 million baht, stable from the first half of 2022, with net interest income growing 8.7% in line with loan growth. While non-interest income decreased 3.5% from securities business fees. investment profit and commercial banking business fees Operating expenses rose 10.6% from capital expenditures. The company's return on average equity (ROAE) for the first half of 2023 stood at 17.6%.
TISCO Group's total loans as of 30 June 2023 amounted to 230,494 million baht, an increase of 5.2% from the end of 2022 due to the expansion of large corporate loans. Registration pawn loan Used car hire purchase loans and motorcycle hire-purchase loans Large corporate loans were able to grow at a stronger 26.5% in line with economic growth. Regarding mortgage loans through the channel "Somwang Ngern Sang Dai" continued to grow by 12.1% in line with the continuous increase in the opening of branch networks. As for non-performing loans (NPLs), it was 2.2% of total loans. a slight increase from the end of the previous year According to the strategy to expand credit to groups with high yields The company continues to implement a strict asset quality control policy. and strict risk management
TISCO Bank maintains strong capital position The capital adequacy ratio to risk-weighted assets (BIS Ratio) is estimated at 23.0%, higher than the minimum capital adequacy ratio of 11.0% required by the Bank of Thailand. And there are Tier 1 and Tier 2 capital funds to risk assets at 19.5% and 3.6% respectively. – Thai News Agency
Source: Thai News Agency