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Spreading profits of 5 banks in year 64, spurring 11% of reserves

commercial banking grouphas gradually reported the results of the 4th quarter and year 2021, the latest has been announced, amounting to 5 places, consisting of TMB Bank Thanachart (TTB), Bank of Ayudhya (BAY), TISCO Financial Group Plc. (TISCO) and LH Financial Group Plc. (LHFG) and Bank of Ayudhya (BAY), which the declared profit is considered better than the broker’s estimate. from the decline in reserves and better fee income

For the total operating results of 5 commercial banks, in terms of overall net profit, including 5 banks were at 12,477 million baht, an increase of 68%, while in 2021, the total net profit was 58,058 million baht, an increase of 26.9%.

while the overview of debt reserves to NPL or credit loss, found that the 4th quarter was at 16,680 million baht, a decrease of 25.24% from the same quarter last year. And if compared to the year 2021, it was found that the reserves for all 5 banks were at 63,662 million baht, a decrease of 10.59%.

Mr. Seichiro Akita, President and Chief Executive Officer Bank of Ayudhya Public Company Limited for a net profit of 33,794 million baht, a strong increase of 46.7% or 10,754 million baht from 2020. The main factor is a special gain from investment from the sale of shares in Ngern Tid Lor Public Company Limited ( money on wheels) in the 2nd quarter of 2021

If special items are not included Net profit from normal business in 2021 was 25,609 million baht, an increase of 11.1% or 2,569 million baht from the previous year.

Mr. Piti Tantakasem Chief Executive Officer TMB Bank Thanachart Public Company Limited or TTB said that the bank had a profit in the fourth quarter of 2,799 million baht, an increase of 127% from the previous year, while the full-year profit was 10,474 million baht, an increase of 4%.

Bad debt management is still in accordance with the plan. Bad debt was at a low level of 2.81%. In 2022, the bank aims to return to both credit and deposit growth.

Mr. Kiticharn Sirisuk-archa, Senior Director of Retail Securities Analysis Securities Company (CGS) – CIMB (Thailand) said. for the bank statement that came out Overall it is better than expected, especially ttb which came out 10% better than the market as well as TISCO which is better than the market by 9%.

The main factors are from Lower than expected reserve costs Meanwhile, loan growth was also better than expected, especially ttb. keep growing

As for the remaining bank statements that will gradually come out, it is expected that it will come out better than the market expected as well. As for the outlook in 2022, it is expected that the operating results will continue to improve. from the expected decline in reserves

Including new fee income from investments that are expected to see better profits Likewise, credit is expected to expand in line with economic growth. from expanding the business and returning to operate more businesses Also under the rising interest rate It should be good for the bank to have better returns as well.

On the side of Prime Minister Korach Sawetkhrutmat Director of Analysis Department, KASIKORNBANK, said that after TISCO TTB announced the fiscal fourth quarter of 2021, it was found that it came out better than the research department expected. Both banks have similar positive factors, namely interest income (Loan Yield) that came out better than expected. mainly from the retail loan group

Next was the decrease in non-performing debt (NPL), mainly due to the increase in customers’ ability to repay their debt. Different from the previous period that decreased from the aid measures of the Bank of Thailand (BOT).

with the expectation that other banks which will gradually announce the budget today (Jan 21) will have a positive outlook similar to TISCO and TTB.

As for the outlook for 2022 operating results, we still believe that bank profit will grow by 12%, driven by recovering fee income and lower provisioning burden. Meanwhile, loan growth is expected to grow around 4%.

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