Thai Credit Bank Reports Strong Q3 2024 Performance with Record Net Profit of THB 1,161.9 Million, Growing 41.7% QoQ, and Continues to Build Strength

The main driver of this net profit growth was the robust expansion of lending. Total loans as of the end of Q3 2024 stood at THB 157,604.5 million, up 13.8% year-on-year. Additionally, net interest income rose by 12.2%, aligned with the growth in lending. On the expense management front, the bank maintained a low cost-to-income ratio of 38.8% for the first nine months of 2024.

The bank's operations in Q3 2024 focused on prudence to navigate economic uncertainties. The net interest margin (NIM) for the third quarter was 8.7%, slightly higher than the second quarter, while for the first nine months of the year, the NIM remained high at 8.6%.

In terms of risk management, the bank significantly reduced its expected credit loss (ECL) as the proportion of Stage 2 and Stage 3 loans to total loans continued to decline. This was especially noticeable in Stage 2 loans, which had been temporarily impacted in Q1 2024 due to the end of a loan classification relief measure that was implemented during the economic downturn. However, these loans returned to normal after borrowers consistently made three consecutive payments. Additionally, losses from non-performing loan (NPL) sales decreased as the bank adjusted its NPL sales strategy due to improving asset quality. As of September 30, 2024, the bank maintained its NPL ratio at 4.5%, which remains manageable.

Earnings per share (EPS) for Q3 2024 was THB 0.94, up from THB 0.67 in Q2 and THB 0.85 in the same quarter last year. For the first nine months of 2024, net profit totaled THB 2,431.6 million, down 13.7% year-on-year due to the one-time ECL losses in Q1 2024. As a result, the EPS for the nine-month period was THB 1.99.