Tisco Financial Group Public Company Limited (SET: TISCO) has announced its 1Q23 consolidated financial statement through the Stock Exchange of Thailand as follows;
| Year | 1Q23 | 1Q22 |
| Net Profit (Loss) Million Baht |
1,792.58 | 1,795.49 |
| Earning Per Share (Baht) |
2.2400 | 2.2400 |
| % Change | -0.16 | |
TISCO reported a net profit of 1,792 million baht in 1Q23, decreased 0.16% from the same period of last year. The decline was mainly caused by rising cost of funds in accordance with the market rate uptrend and the resumption of contribution rate to Financial Institutions Development Fund (FIDF) back to 0.46% per year, together with an increase in operating expenses in relation to the long-term investment plan for business expansion.
Total operating revenue improved by 5.1% (YoY) driven by an increase in interest income by 15.4% (YoY) following loan growth, coupled with the record of gain on financial instruments measured at fair value through profit or loss (FVTPL). Meanwhile, non-interest income from core businesses weakened particularly in capital market businesses which were affected by the volatile global market. This included a decline in brokerage fee income of 13.8% (YoY) and a decrease in asset management basic fee of 0.5% (YoY).
Meanwhile, interest expense was at 847.48 million baht, increased by 352.56 million baht (71.2% YoY) from rising funding cost along with the policy rate increase.
Operating expenses totaled 2,281.67 million baht, increased by 186.29 million baht (8.9% YoY), resulting from expenses related to the long-term investment plan for business expansion, coupled with an increase in variable expenses associated with revenue and profit growth. The Company still maintained effective operating cost control with cost to income ratio at 49.2%.
In addition, banking fee also softened by 1.1% (YoY), partly from the loan-related fee that was impacted by the regulatory changes in fee charges. However, bancassurance business recovered moderately, aligning with higher new business volume.
Expected credit loss (ECL) remained low totaling 125.33 million baht or at 0.2% of average loans. This was a result of effective asset quality control despite a slight increase in NPLs to 2.13% of loans from the end of 2022, which went according to the growth strategy into high-yield loans. ECL of the company remained strong and sufficient to cushion against potential risks from all aspects.
