TTB Reports 3.5% Increase in 2021 Earnings as ECL and Interest Expenses Decline

TMBThanachart Bank Public Company Limited (SET: TTB) has announced its 2021 consolidated financial statement through the Stock Exchange of Thailand as follows;


Yearly 2021 2020
Net Profit (Loss)
Million Baht
10,474.05 10,112.18
Earning Per Share (Baht) 0.11 0.10
% Change 3.58


TTB reported a net profit of 10,474 million baht in 2021, representing an increase by 3.58% from the previous year. The increase in net profit was mainly due to a decline in expected credit loss and its lower interest expenses.

Interest income decreased by 11.2% YoY to 64,239 million baht, primarily due to the lower interest on loan from multiple rate cut, pressure from adjusted effective interest rate (EIR) approach and loan contraction as a part of loan quality focus strategy amidst unstable economic environment.

Interest expenses decreased by 28.5% YoY to 13,240 million baht, mainly owing to efficient balance sheet optimization resulting in cost of deposits reduction and lower funding cost.

TTB stated that it has been more selective in growing loans and focused on quality growth strategy during the pandemic. Total loan, therefore, declined by 1.5% YTD to THB1,372 billion as of December 2021. Meanwhile, net interest income in 12M21 was THB51,000 million, representing a decrease by 5.2% YoY due primarily to lower yield on loan and multiple rate cuts while balance sheet optimization led to well-managed cost of funds. Therefore, NIM slightly dropped 3 bps to 2.97% in 2021.

In addition, TTB set aside expected credit loss (ECL) and management overlay of 21,514 million baht in 2021, which was 13.4% lower compared to an ECL of 24,831 million baht in 2020.

The bank’s provisioning was prudent and based on a forward-looking approach which includes reserve and preparation for unforeseeable future while stage 3 loans, reduced to 42,121 million baht, representing NPL ratio of 2.81%. The reduction in stage 3 was mainly due to better NPL formation, asset warehousing initiative and better-than-planned NPL sales in 4Q21. TTB continued to de-risk loan portfolios to improve portfolio quality. After provision and tax, TTB reported 10,474 million baht of net profit in 2021 which increased by 3.6% YoY. and represented an ROE of 5.1%.