TTB Records 27% Profit Growth in 3Q23 with Higher Net Interest Income from Policy Rates

TMBThanachart Bank Public Company Limited (SET: TTB) has announced its 3Q23 consolidated financial statement through the Stock Exchange of Thailand as follows;

Quarter 3Q23 3Q22
Net Profit (Loss)
Million Baht
4,734.89 3,714.64
Earning Per Share
0.0489 0.0384
% Change 27.47
9 Months 2023 2022
Net Profit (Loss)
Million Baht
13,595.69 10,347.87
Earning Per Share (Baht) 0.1404 0.1071
% Change 31.39

TTB reported a net profit of THB4,735 million in 3Q23, increased 27.47% from a net profit of THB3,714 million in the same period last year.

In the third quarter, TTB recorded THB14,665 million of net interest income (NII), increased 13.1% compared to previous year (YoY). Interest income increased by 22.4% YoY to THB20,217 million mainly from improving yield on earning assets following bond yield and interest rate policy uptrend. Despite the conservative asset growth, the Bank still focuses on recycling liquidity plans by redeploying the free-up liquidity towards high-yield assets while ensuring appropriate risk-adjusted returns amid rising interest rate trends.

In the meantime, interest expenses also increased by 56.4% YoY to THB5,552 million from IDF contribution resumption and the interest rate upward trend.

NIM was at 3.34% in 3Q23 which increased by 16 bps from 3.18% in 2Q23 and by 42 bps from 2.92% in 3Q22. NIM continued to expand, benefiting from the shift in loan mix and rising interest rate environment which supported earning asset yield, while the pre-funding deposit initiative helped contain costs against pressures from higher deposit interest rates and borrowing costs from the competition in the market.

In this quarter, the Bank set aside expected credit loss and management overlay totaling THB4,354 million, equivalent to a credit cost of 127 bps, which increased by 2.6% QoQ but slightly declined by 0.2% YoY. The current ECL level was a result of our stringent 7 schemes guiding principle-based risk model, which assesses the true customer repayment capabilities, as well as ECL cushion thru Management Overlay for future risks.

As of 30 September 2023, NPL ratio on consolidated basis was recorded at 2.67%, well-contained compared with 2.63% at the end of June 2023 and 2.73% at the end of December 2022.