TTB Records 24% Rise in 1Q24 Earnings with THB351 Million from Tax Benefit

TMBThanachart Bank Public Company Limited (SET: TTB) has announced its 1Q24 consolidated financial statement through the Stock Exchange of Thailand as follows;

Year 1Q24 1Q23
Net Profit (Loss)
Million Baht
5,333.79 4,294.52
Earning Per Share
0.0500 0.0400
% Change 24.20

TB reported THB5,334 million of net profit in 1Q24 which increased by +24% YoY, representing an improving ROE of 9.2% from 7.9% in 1Q23.

TB recorded THB14,396 million of net interest income (NII) in 1Q24, increased by 6.6% YoY from THB13,502 million. Interest income rose 14.1% YoY from THB18,475 million. The increase was primarily due to improving yield on earning assets as a result of the liquidity utilization plan and the rising interest rate environment amidst the quality growth strategy.

NIM stood at 3.28% in 1Q24 which declined by 11 bps from 3.39% in 4Q23 but increased by 20 bps from 3.08% in 1Q23. Such a QoQ decline was primarily due to short-term pressure on the cost of deposits following the deposit volume acquisition in 4Q23, alleviated by the improvement in yield on loans. The YoY increase was mainly owing to improving yield on earnings assets as a result of the liquidity utilization plan together with the change in loan mix amid the peak of the interest rate cycle.

Notably, there was THB351 million of tax benefit in 1Q24. At the end of March 2024, TTB still has the remaining tax benefit of THB14.1 billion that can be subsequently recognized within 2028. The recognition will not be on a straight-line basis but will be subject to the estimation of future net profit stream.

As of 31 March 2024, NPL ratio on a consolidated basis was recorded at 2.56%, well-contained in comparison with 2.62% at the end of December 2023 and 2.69% at the end of March 2023. Meanwhile, NPL ratio on a bank- only basis stood at 2.36%, which remained manageable compared to 2.33% at the end of December 2023 and 2.39% as of March 2023.

As of 31 March 2024, the Bank and its subsidiaries reported the allowance for expected credit loss at THB61,801 million, which decreased by 2.7% YTD. Given the stable trend in asset quality, we have strictly classified loan staging and prudently strengthened our loan loss buffer by setting aside additional provisions on top of the normal provision level as extra cushion for economic uncertainties together with proactively de-risking the weak portfolio. As a result, the coverage ratio maintained at a high level of 155%.