TTB Earnings Surge to THB3,100 Million in 1Q22 on Lower ECL and Operating Expenses

TMBThanachart Bank Public Company Limited (SET: TTB) has announced its 1Q22 consolidated financial statement through the Stock Exchange of Thailand as follows;

Quarter 1Q22 1Q21
Net Profit (Loss)
Million Baht
3,194.90 2,781.96
Earning Per Share
0.0331 0.0289
% Change 14.84

In 1Q22, TTB reported THB3,195 million of net profit, which increased by 14.1% QoQ and 14.8% YoY and represented a ROE of 6.1%. This was a result of well-managed operating expenses which significantly dropped by 12.7% QoQ to THB6,987 million. Therefore, cost-to-income ratio excluded purchase price allocation (PPA) impact reported at 43% due to such cost discipline lessening pressures on the income side. As a result, Pre-provision operating profit (PPOP) increased by 4.2% QoQ and relatively flat YoY which recorded at THB8,818 million in 1Q22.

TTB set aside expected credit loss (ECL) and management overlay of THB4,808 million, decreased by 4.2% QoQ, reflecting the bank’s strict principle-based relief scheme model and customers’ repayment capability in the current loan portfolio.

For net interest income (NII), TTB recorded THB12,409 million of NII in 1Q22, a 2.8% decrease compared to the previous quarter. Interest  income decreased by 2.0% QoQ to THB15,677million. The QoQ decrease was a result of loan contraction following the bank’s prudent loan growth amid  the gradual economic recovery, offset with an increase in interest on HP as the auto loan resumed its growth momentum. Interest expenses increased by 1.5% QoQ to THB3,268 million mainly from an increase in deposit volume and interest on interbank as a part of liquidity management.