TTB Reports 13% Profit Growth in 2024 with Rising NIM and Prudent Management

TMBThanachart Bank Public Company Limited (SET: TTB) has announced its 2024 consolidated financial statement through the Stock Exchange of Thailand as follows:

Year 2024 2023
Net Profit (Loss)
Million Baht
21,031.03 18,621.53
Earning Per Share
(Baht)
0.2200 0.1900
% Change 12.94

TTB reported a net profit of THB21,031 million in 2024, a 12.94% increase from 2023.

Net interest income decreased by 1.3% YoY to THB56,452 million primarily due to higher funding cost from higher TD volume, offset with better yield on earning assets following the Bank’s loan mix shift strategy and effective liquidity utilization plan amidst the high interest rate environment.

Meanwhile, NIM rose by 2 bps to 3.26% from 3.24% in 2023, reflecting a successful asset-liability management plan which bolstered earning asset yield improvement and well-managed funding cost against a high-rate environment. Having said that, amidst conservative asset growth throughout 2024, the Bank’s key focuses on loan mix shift towards selective high-yield retail loan areas and investment portfolio management were on track which helped enhance risk-adjusted returns while funding cost was well-contained through deposit mix adjustment and debt and borrowing management.

Non-interest expenses decreased by 4.9% YoY to THB29,571 million. The cost reduction came from efficiency in HR and branch management following a digital transformation roadmap offset with an increase of software expenses.

PPOP amounted to THB9,660 million in 4Q24, decreased by 3.2% QoQ and 5.2% YoY. PPOP for the 12-month of 2024 was at THB39,795 million, quite flat compared to year 2023.

Asset quality remained in control as NPL ratio was well-contained at 2.59% and ECL decreased 10.6% YoY to THB19,852 million or equivalent to 154 bps in terms of credit cost. Stage 3 loans as of 31 December 2024 were reported at THB38,975 million, reduced from THB40,224 million at the end of September 2024 and THB41,006 million at the end of December 2023.

As of 31 December 2024, the Bank and its subsidiaries reported the allowance for expected credit loss at THB59,007 million, which decreased by 1.8% QoQ and 7.1% YTD. Such declines were in part of write-off activities to keep the portfolio clean. As a result, the coverage ratio remained high at 151%.

TTB noted that at the end of December 2024, the Bank still has the remaining tax benefit of THB10.6 billion to 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.