TISCO’s 2022 Earnings See Slight Gain by 6% amid Slower Fee Income

Tisco Financial Group Public Company Limited (SET: TISCO) has announced its annual financial statement of 2022 to the Stock Exchange of Thailand as follows;

Quarter 2022 2021
Net Profit (Loss)
Million Baht
7,221.74 6,784.59
Earning Per Share
9.0200 8.4700
% Change 6.44

TISCO recorded a net profit of 7,221 million baht in 2022, increased 6.44% from a net profit of 6,784 million baht in 2021. The increase was supported by the recovery of banking business and a decline in expected credit loss (ECL).

The loan portfolio resumed its growth by 7.9% (YoY) from corporate lending, SMEs loans, auto-title loans and used car hire purchase, resulting in increased net interest income by 2.2% (YoY), along with a strong improvement in bancassurance business by 24.0% (YoY) aligning with higher new business volume amid Thai economic recovery. Consequently, overall banking fee income rose by 13.4% from the previous year.

Meanwhile, businesses related to the capital market weakened compared to 2021 following the volatile capital market caused by global economic uncertainty. As a result, brokerage fee dropped by 19.2% (YoY) due to lower market trading volume, and asset management basic fee decreased by 15.6% (YoY) owing to a decrease in the sales of new funds.

Furthermore, there was an absence of asset management performance fee this year compared to the fee of 502.73 million baht recognized during the fourth quarter of last year. Additionally, gain on financial instruments measured at fair value through profit or loss (FVTPL) also declined from 2021.

Investment banking fee amounted 99.77 million baht, decreased by 14.31 million baht (12.5% YoY).

Expected credit loss (ECL) remained low at 0.3% of average loans, significantly declined from the previous year. This ECL setup has already factored in the portfolio expansion as well as in line with the asset quality that remained well-controlled, as seen from the decline in reported NPL ratio to 2.09% of total loans. Moreover, the company reduced the setup of ECL expense this year to reflect the reducing risk of COVID-19 situation that has eased down. Loan loss coverage ratio remained strong at 258.8%.

A profit of 7,221 million baht in 2022 was slightly higher than an estimate consensus by Refinitiv of 7,189 million baht.