TISCO Reports a Lower Provision Expense in 2Q Operation, Buoying Profit to Reach ฿1.8bn!
 TISCO recorded a net profit of THB 1,798.15 million, increased by THB 88.72 million or 5.2% YoY, mainly driven by lower provision expense.
TISCO recorded a net profit of THB 1,798.15 million, increased by THB 88.72 million or 5.2% YoY, mainly driven by lower provision expense.
12 ก.ค. 2562

Tisco Financial Group Public Company Limited (TISCO) has reported its 2Q19 consolidated financial statement through the Stock Exchange of Thailand as follows:

In the second quarter of 2019, TISCO recorded a net profit of THB 1,798.15 million, increased by THB 88.72 million or 5.2% YoY, mainly driven by lower provision expense. Net interest income declined by 2.2% YoY with loan spread decreased from 5.0% to 4.8% YoY partly from the sale of personal loan portfolio at the end of the second quarter of 2018. Non-interest income from core business contracted by 1.7% YoY from hire purchase related fee and fee from capital market business.
Operating expenses increased by 8.2% YoY from employee benefit expenses and donation. Provision expense declined by 79.1% YoY aligning with credit quality of loan portfolios, along with a partial reduction of excess loan loss reserve. Thus, TISCO maintained the high level of return on average equity (ROAE) at 19.1%.
For the first half of 2019, the net profit was reported at THB 3,527.75 million, increased by THB 52.51 million or 1.5% YoY, due to a decline in provision expense by 84.8% YoY. Net interest income dropped by 3.4% YoY from the sale of personal loan portfolios at the end of the second quarter of 2018.
Non-interest income from core business decreased by 8.6% YoY amidst unfavorable capital market. Operating expenses increased by 4.4% YoY following the adjustment of employee benefits in accordance with the new regulation.
 
In the second quarter of 2019, TISCO reported NPLs amounting THB 7,690.94 million, increased by THB 401.62 million (5.5% QoQ) mainly due to the continued effect from the loan reclassification from the end of 2018, together with hire purchase portfolio was affected by seasonal late repayment behavior which occurs in the second quarter of every year.
The NPLs comprised of THB 7,072.83 million from the Bank and THB 618.10 million from other subsidiaries. Consequently, NPL ratio rose from 3.02% to 3.19% (QoQ). NPL ratio of retail loans, corporate loans, and commercial loans were 3.77%, 0.79%, and 1.03%