Thanachart Military Bank Public Company Limited or TMB Thanachart (TTB) announces operating results for the 4th quarter and 12 months of 2023. The bank has a net profit in the 4th quarter of 2023 of 4,866 million baht and a net profit of 4,866 million baht . 12 months from 2023, a total of 18,462 million baht. Overall operating results were achieved as targeted. Remain focused on maintaining asset quality and increasing financial strength in all aspects.
Mr. Piti Tantakasem, CEO TMB Thanachart revealed that for the year 2023, in general, the bank’s performance is in line with the target. We continue to move forward with our plan to realize the benefits of the merger to support revenue and expense management, very importantly, in order to strengthen our financial position in all areas. be it the ability to support risk, liquidity, and capital base
of that goal The strategy that TTB is focusing on in 2023 is therefore about managing every element of the balance sheet to ensure quality. Especially in the credit area. The bank continues to use a prudent new loan growth strategy. Focus on the customer base in which the bank has expertise. Understand needs and risks very well.
Another important point is to look after credit customers closely The bank continues to provide assistance to vulnerable debtors. Including supporting debt collection or Debt Consolidation. Help ease the burden of interest and help debtors manage liquidity under rising interest rates.
In 2023, the bank provided assistance to customers who still needed assistance during the COVID-19 period. The value of the loan is approximately 11% of the total loan portfolio. And for the debt collection project, it is open to all groups of customers. The bank has helped more than 17,000 customers collect their debts, helping them save around 1.2 billion baht in interest.
With such a strategy the bank’s loan portfolio is therefore of good quality. along with proactive bad debt management The asset quality situation is therefore in line with the target. Can continuously reduce the level of bad debts. From the peak during COVID-19 at 2.98% to 2.62% at the end of 2023.
This is because the Bank assesses that the economy in the next period still has pressure factors around. Therefore, the reserve fund is established. Special in the 4th quarter in the amount of 4.9 billion baht to raise the reserve ratio. to non-performing loans or NPL Coverage Ratio to 155% compared to 138% in 2022 and 120% before the merger. It reflects the ability to support risks which has been stronger than ever.
In addition, the bank has prepared liquidity. By further expanding the deposit base in the 4th quarter to support the business plan and deposit competition that could occur in 2024, leading to an increase in the LCR liquidity ratio from 175% in the previous quarter to around 199% with basic criteria the BoT. at 100%
The capital base remains high and stable, with CAR and Tier 1 ratios at the end of 2023 increasing to 20.7% and 17.0%, which are among the highest. of industry and above the required criteria for banks in the D-SIBs group set by the BoT at 12.0% and 9.5%, respectively.
All this reflects a better financial position in all dimensions. It’s like having a stronger bumper in every way. This will help the bank to mitigate effects when facing different types of uncertainty, whether they are risks related to asset quality, liquidity, or capital funds. robustly without affecting the operations in accordance with the normal business plan Including not jeopardizing our ability to provide customer support. and create dividend value for the bank’s shareholders
In terms of the main operating results in 2023, they are as follows:
Loans at the end of December In 2023, it was 1,328 billion baht, slowed by 2.5% from the previous quarter and decreased by 3.5% from the end of 2022, in line with the prudent loan growth guidelines and the loan restructuring plan. By focusing more on expanding retail loans. As a result, retail loans continued to expand at 2.1% from last year, led by target group loans, including home loans for money. Car loan in exchange for money Personal loans and credit cards Loans to business customers decreased by 11.6% from the previous year, as a result of repaying customer debt and using excess liquidity from lending to business customers to circulate it to retail loans. Increase efficiency in using money
In terms of deposits, it was 1,387 billion baht, an increase of 4.3% from the previous quarter. According to the liquidity preparation plan But it slowed down a bit, or around 0.9%, compared to last year. This is in line with the bank’s plan to manage loans and deposits accordingly. Targeted deposits include fixed deposits, which provide high interest savings benefits, and TTB All Free deposits, which provide savings benefits Transactions free and accident insurance Ability to grow according to plan
The overall revenue outlook continues to be supported by recognition of the benefits of the merger. From balance sheet synergy by restructuring loans to retail customers and increasing the proportion of consumer loans, and income synergy from offering new financial solutions. to a growing customer base after the merger As a result, the total operating income in 2023 increased to 70,961 million baht, compared to 65,852 million baht in 2022.
Total operating costs are 31,280 million baht in 2023, up from 29,952 million baht in 2022, as a result of increased business activities and employee and digital investment plans. The bank is still able to control expenses very well. This is reflected in the cost-to-income ratio of 43.6%, down from 45.1% in the previous year.
This is to increase financial strength. The bank has established special reserves in addition to the normal level. Including reserves set for a total of 22,199 million baht after deducting reserves and taxes, the bank has a net profit in 2023 of 18,462 million baht, compared to 14,195 million baht in the previous year.
Pity at the end that Mr. “The performance of 2023 reflects TTB’s potential and readiness to move into 2024. We still aim to create quality growth for shareholders. together with supporting guidance for reducing household debt Including responsible and fair lending (Responsible Lending) from the government sector, which aligns with TTB’s Financial Wellbeing aim to help customers have a better and sustainable financial life.”
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