Tisco Financial Group Public Company Limited (SET: TISCO) has announced its 2Q23 consolidated financial statement through the Stock Exchange of Thailand as follows;
|Net Profit (Loss)
|Earning Per Share
|Net Profit (Loss)
|Earning Per Share (Baht)||4.5500||4.5500|
TISCO reported a net profit of 1,853 million baht in 2Q23, increased 0.30% from a net profit of 1,848 million baht in 2Q22. Total operating revenue increased by 4.1% (YoY) supported by the growth in net interest income of 10.1% (YoY) following the loan expansion of 13.4% (YoY), whereas cost of funds rose from 1.06% to 1.80% (YoY) corresponding with the rising interest rate environment.
Non-interest income totaled 1,323.63 million baht, decreased by 128.04 million baht or 8.8% (YoY), mainly caused by a slowdown in brokerage business amid the volatile capital market, as well as lower gain on financial instruments measured at fair value through profit or loss (FVTPL) comparing to the second quarter of 2022.
Furthermore, banking fee income decreased from loan-related fees and a slow recovery in bancassurance business owing to lower new business volume amid Thailand’s uneven economic recovery. On the contrary, asset management basic fee income improved along with the growth in assets under management.
Operating expenses increased by 12.2% (YoY) mainly related to the company’s long-term business expansion plan, while expected credit loss (ECL) declined by 54.9% (YoY) and remained low thanks to the sufficient level of loan loss reserves against future potential risks.
Expected credit loss (ECL) was reported at 63.08 million baht, compared with 139.87 million baht in the second quarter of 2022, and accounted for 0.1% of average loans. Meanwhile, non-performing loans (NPLs) increased to 2.20% mostly due to the growth strategy into high yield loans, together with the pressure from consumers’ purchasing power and rising cost of living. However, these risks were in accordance with the company’s forecast, and the company has maintained a sufficient level of loan loss reserves against credit risks arising from the business growth strategy and macroeconomic factors in the loan loss coverage ratio of 224.0%.
Nevertheless, net profit for the quarter was 3.22% higher than the market’s consensus, according to Refinitiv. Meanwhile, revenue was relatively inline with expectations.