TISCO Group announces 2023 operating results, net profit of 7,303 million baht

Bangkok, TISCO Group reveals operating results for 2023 with a net profit of 7,303 million baht, expanding 1.1% from the growth of the loan business - net interest income. It is expected that in 2024 the Thai economy will expand 3-4% from Tourism-exports recover Mr. Sakchai Peechapat, Group Chief Executive, TISCO Financial Group Public Company Limited, revealed that in 2024, the Thai economy is likely to expand in a better direction at the level of 3-. 4%, driven by tourism that continues to recover. Exports of merchandise are expected to return to expansion. Including public and private investment that has accelerated. However, although the Thai economy has shown good signs, it still faces challenges from internal and external factors such as drought problems and the fragility of Thai household debt. The policy interest rate is high. as well as the weakness of the world economy and the economies of trading partners. Especially the United States, China, and Europe, etc. For 2024, TISCO Group focuses on con ducting business based on sustainability. Give importance to quality growth By expanding credit carefully Because there are still risk factors surrounding us in many areas. Especially the problem of Thai household debt and high financial costs. Meanwhile, the economy itself is uncertain, so careful management in all aspects is necessary. In order to maintain balance in dealing with these various challenges, at the same time, we will go in to help and take care of our customers closely so that they have something to rely on. Including providing advice on debt consolidation to provide customers with a lower interest burden through the Freedom Platform, along with deploying the Digital Platform for Omni Channel by enhancing data analysis and risk management capabilities and using Smart. Assistance and Automation to increase efficiency in business operations Mr. Sakchai also revealed the operating results of TISCO Group for the year 2023. The company had a net profit of 7,303 million baht, an increase of 1.1% co mpared to 2022, mainly due to the growth of the loan business that expanded to 7.2. % in large corporate loan group and small loans in the registered pawn business through the "Somwang Ngern Sang Dai" channel, resulting in net interest income increasing by 8.6%, even though during the past year Financial costs rose sharply to 93.9% in line with the upward trend of interest rates in the market. and the adjustment of the FIDF fund contribution rate back to the normal level of 0.46% per year, while non-interest income weakened by 6.4% from the capital market business that is highly volatile. Both securities trading fees decreased according to the trading volume on the stock exchange. greatly reduced Including the recognition of losses from financial instruments measured at fair value through the income statement (FVTPL), coupled with the slow recovery of the commercial banking business. In particular, fees from the insurance brokerage business slowed down as the volume of new lending decreased. operating expens es increased by 8.7%, most of which were expenses related to investments according to the company's long-term growth plan. Meanwhile, Expected Credit Loss (ECL) is 0.3% of the average loan balance. It has a Loan Loss Coverage Ratio of 189.8%, sufficient to support current risks and future expectations. The company has an average return on equity. (ROAE) for the 2023 period is 17.1%. Total loans of TISCO Group as of December 31, 2023 amounted to 234,815 million baht, expanding 7.2% from 2022 from large corporate loans that grew 33%, focusing on growth in customers in the energy business group. and real estate business together with small loans In particular, the registered pawn loan 'Somwang Ngern Sang Dai' has increased by more than 25% from the plan to open a nationwide branch network. Meanwhile, hire purchase loans slowed down due to intense competition in the automobile market. As for non-performing loans (NPLs), the percentage increased to 2.22% of total loans. Part of this is in line with the strategy t o grow into loans with high yields. coupled with the impact of household debt and high living costs The company continues to implement a cautious lending policy. Ready to follow and take care of customers closely. together with tight risk management and reserves TISCO Bank continues to maintain a strong capital position. The estimated capital adequacy ratio (BIS Ratio) is 22.3%, higher than the minimum capital adequacy rate of 11.0% set by the Bank of Thailand. and have Tier 1 and Tier 2 capital adequacy ratios to risk assets at 18.9% and 3.5%, respectively. Source: Thai News Agency