Form 56-1 One Report 2021 Softened top-line growth amidst prolonged COVID-19 situation: TTB reported 12M21 net interest income of THB51,000 million, decreased by 5.2% YoY due primarily to lower yield on loan and multiple rate cuts while balance sheet optimization led to well-managed cost of funds. Therefore, NIM slightly dropped 3 bps to 2.97% in 2021. Marginal reduction in NIM was mainly from yield compression and conservative EIR approach offsetting lower cost of deposit from balance sheet optimization. Non-NII declined by 6.5% YoY to 14,537 million from non-core revenue while net fee and service income decreased by 0.9% YoY. Despite the impact from the pandemic and market volatility, mutual fund and bancassurance fees maintained its moderate growth by 9% YoY and 2% YoY respectively. Commercial fee registered its growth pace, supported by trade finance. Total operating income, therefore, dropped by 5.5% YoY to THB65,537 million in 2021. 2021 PPOP reflected prudent business direction and cost synergy realization: With the effort in accelerating cost saving synergies to self-fund integration expenses and cost discipline, operating expenses were well-managed which dropped by 3.0% YoY to THB31,219 million despite there were one-time integration expenses and voluntary retirement package in 2021. Given well-managed operating expense, Cost-to-income ratio excluded purchase price allocation (PPA) impact reported at 46%, which achieved financial target in 2021 against the pressure on income side. As a result, Pre-provision operating profit (PPOP), was relatively stable QoQ and recorded at THB8,461 million in 4Q21 and THB34,300 million in 2021. Maintained prudent approach to strengthen portfolio quality against unstable outlook: TTB has maintained a prudent risk management and closely monitored asset quality with stringent ECL model and considered forward-looking approach through Management Overlay. In 2021, the Bank set aside expected credit loss (ECL) and management overlay of THB21,514 million. The Bank’s provisioning was prudent and based on forward-looking approach which includes reserve and preparation for unforeseeable future while stage 3 loans, reduced to THB42,121 million, representing NPL ratio of 2.81%. The reduction in stage 3 was mainly due to better NPL formation, asset warehousing initiative and better-than-planned NPL sales in 4Q21. TTB continued to de-risk loan portfolio to improve portfolio quality. After provision and tax, TTB reported THB10,474 million of net profit in 2021 which increased by 3.6% YoY. and represented the ROE of 5.1%. 127
RkJQdWJsaXNoZXIy ODEyMzQ3