News Column

Tisco eyes rebound after rough first half

July 22, 2014

By Somruedi Banchongduang, Bangkok Post, Thailand



July 22--Tisco Financial Group, the parent of Tisco Bank, is warning of a lower net profit this year due largely to the stuttering first-half economy and a sharp decline in domestic car sales.

Despite the improved second-half economic view, Tisco expects loans outstanding to shrink by 2-3% this year.

Tisco, the country's leading automobile lender, forecasts a 40% dive in Thailand's new-car sales to 850,000 this year.

A 40-50% drop in used-car appraisal prices, aggravated by the former government's first-time car buyer scheme, is another factor dampening the bank's profitability, said chief executive Oranuch Apisaksirikul.

Tisco posted a net profit of 1.93 billion baht in the first half, down by 16.7% year-on-year, while total credit fell by 4.6% from the end of 2013.

Demand for car loans is improving and should return to normal in the fourth quarter, said Mrs Oranuch, adding the bank's non-performing loans peaked the previous quarter. The bank's bad loans reached 2.27% of outstanding loans worth 280 billion baht at the end of June, up from 1.29% at the end of 2013. Tisco plans to cut the ratio to 2% by year-end.

Car loans represent the biggest share of the bank's loan portfolio at 180 billion baht or 64.2% of loans outstanding.

TISCO shares closed yesterday on the SET at 41.75 baht, up 75 satang, in trade worth 52.5 million baht.

___

(c)2014 the Bangkok Post (Bangkok, Thailand)

Visit the Bangkok Post (Bangkok, Thailand) at www.bangkokpost.com

Distributed by MCT Information Services


For more stories on investments and markets, please see HispanicBusiness' Finance Channel



Source: Bangkok Post (Thailand)


Story Tools






HispanicBusiness.com Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters