Tisco sure of improving on 2016 results
DESPITE SLUGGISH LOAN GROWTH, GROUP SAYS IT IS ON TRACK TO DELIVER BETTER NUMBERS THIS YEAR THROUGH IMPROVED MANAGEMENT EFFICIENCY
TISCO Financial Group ( Tisco) expects to hit a new high this year after reporting net profit of Bt4.5 billion in the first nine months, group chief executive Suthas Ruengmanamongkol said.
The net profit of Bt4.5 billion compared with last year’s net profit of Bt5 billion, the improvement coming mainly due to management efficiency, he said.
Despite nearly-flat loan growth, Tisco’s interest- based and non-interest-based income rose, he said.
In the fourth quarter of this year, Tisco will realise income from the transfer of retail banking from Standard Chartered Bank (Thai) with a Bt36-billion retail loan portfolio.
Of the total, about Bt24 billion are residential loans, Bt5 billion are personal loans, Bt3.4 billion are retail business loans, Bt3.3 billion credit-card loans and Bt15 billion deposits.
After the transfer, Tisco’s loans will grow about 10 per cent this year, while non-performing loans (NPLs) will slightly increase, given SCBT’s slightly higher NPL.
Tisco’s non- performing loans will stay at 2.34 per cent of total lending and Standard Chartered’s at 3 per cent.
Once combined, Tisco’s NPL is estimated to increase to 2.4 per cent.
Tisco’s coverage ratio is projected to decline to 170-180 per cent from 185 per cent earlier.
“Although the overall Thai economy has improved, it is not sufficient to boost commercial banks’ loan growth.
No progress on NPLs
“The NPL situation has not improved yet. NPLs are expected to hit a record high in the third to fourth quarters of this year, from the earlier projection of the first to second quarters of this year,” Suthas said.
Therefore, banks will lend with caution to maintain loan quality, while loans will not grow sharply, he said, adding “we may not see a double-digit growth”.
Meanwhile, LH Financial Group reported a 4-per-cent drop year on year in its consolidated net profit to Bt670.7 million in the third quarter of this year.
The bank’s nine- month net profit also declined 9.6 per cent year on year to Bt1.8 billion following a 35.5-per-cent fall in its non-interest income.