Tisco Financial Group, a holding company of Tisco Bank, posted net profit growth for both the third quarter and the first nine months of this year thanks to a core business recovery in line with Thailand's economic rebound.
The company and its subsidiaries reported 1.77 billion baht in consolidated net profit for the third quarter of this year, an increase of 21 million baht, or 13.5%, from the same period of 2021.
Net profit for the first nine months was 5.41 billion baht, a year-on-year rise of 8.5%, group chief executive Sakchai Peechapat said in a statement yesterday.
For the third quarter, Tisco Bank recorded net interest income of 3.22 billion baht, up 4.2% year-on-year, with net fee income of 1.26 billion baht, up 12.4%. However, the bank reported a decline in both income streams during the nine-month period.
The bank's total outstanding loans as of September this year stood at 213 billion baht, growing 5% from the end of 2021. The positive loan growth mainly came from lending for car titles, small and medium-sized enterprises (SMEs), and corporations.
In particular, SME loans grew by 43.8% during the period, while wholesale loans expanded by 22.4%.
While the bank's core business of hire-purchase loans declined by 3% in the first nine months of this year from the end of 2021, loans for auto licences and auto cash loans grew by 9.5%.
Expansion of the auto cash loan product has been mainly supported by Somwang auto cash channels, with a total of 412 branches nationwide.
The bank's non-performing loan ratio dropped to 2.08% as of September this year. Its loss coverage ratio remains strong at 248%, which is expected to be adequate to handle unexpected risks in the future, Mr Sakchai said.
Given the improving asset quality, the bank reported lower expected credit losses in the third quarter of this year, falling to 119 million baht compared with 254 million baht in the same period of 2021.
"Amid the gradual economic recovery, the bank expects to continue to grow loans and help customers in line with the economic situation during the rest of the year, especially individuals and small entrepreneurs," Mr Sakchai said.
