TMBThanachart Bank (TTB) Q4 2024 earnings summary

Executive summary

• Net profit for 2024 reached THB 21,031 million, up 13% year-over-year, with ROE at 9.0%.

• Asset quality and profitability improved through strategic focus on high-yield retail segments and digital transformation.

• Maintained strong capital position and enhanced shareholder value via higher dividend payout and share repurchase initiatives.

• Auditor issued an unqualified opinion, confirming fair presentation of financial statements.

• Targeting medium-term ROE milestone of 10% with robust fundamentals.

Financial highlights

• Net interest income was THB 56,452 million, slightly down year-over-year, with NIM at 3.26%, exceeding the target range.

• High-yield loan mix increased from 28% to 31%, with products like Cash Your Car and Cash Your Home growing 6% and 12%, respectively.

• Non-interest income declined 3% YoY (excluding BA amortization), but non-loan-related fee income grew 1%.

• Operating costs declined by 5% year-over-year, with cost-to-income ratio at 42.6%.

• Basic and diluted EPS were Baht 0.22, up from Baht 0.19 in 2023.

Outlook and guidance

• 2025 loan growth targeted at 0%-2%, with deposit growth to align; NIM expected in the 3.1%-3.25% range.

• Cost control and digital investment will continue, with a THB 5.9 billion IT budget for 2025.

• Credit cost guidance at 125-135 bps; Stage 3 (NPL) targets set slightly higher due to NPL sale challenges.

• Share repurchase program of up to Baht 21,000 million approved for 2025–2027.

• Management expects no material impact from TFRS 17 adoption in 2025.