WHOLESALE BANKING | Cesar Tordesillas, Thailand

Thailand's Tisco looks to break Q3's record net

Tisco Financial Group reported a net profit of Bt953 million in the third quarter, marking a new quarterly high.

Net profit for the first nine months was Bt2.71 billion, an increase of 4.6 per cent year on year.

The impressive net profit in the third quarter was driven by interest income from loan expansion, especially loans to small and medium-sized enterprises, which grew by 14.6 per cent from the second quarter. Hire-purchase lending continued to expand, due mainly to the government's first-car scheme.

Furthermore, Tisco iis on track to improve on its record-high third-quarter bottom line in the fourth quarter.

According to analysts, the bank has bright prospects for its income from fees and interest.

Krungsri Securities expects that lending expansion at Tisco, along with the growth in fee income, would further bolster net profit to a new quarterly record.

Maybank Kim Eng Securities (Thailand) expects Tisco's net profit in the fourth quarter to reach Bt1 billion, while net interest margin (NIM) is projected to be stable at 2.9-3 per cent. 

According to Maybank Kim Eng, Tisco's NIM will widen slightly in 2013 because the group is actively expanding high-yield loan products.

Asia Plus Securities noted that lending in the first nine months at Tisco grew 21.8 per cent, higher than the 18-20 per cent in fiscal year loan growth forecast by Tisco and near the 22 per cent forecast by its analysts.

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