Tisco Financial Group Public Co. Ltd. · SET:TISCO
Tisco Financial Group Public — Q2 2024 Earnings Presentation
19 slides from Tisco Financial Group Public's earnings presentation, Jul 12, 2024
Slide 1: TISCO Financial Group Analyst Meeting 2Q2024
TISCO Financial Group Public Co., Ltd. Analyst Meeting 2Q2024 July 12, 2024
Slide 2: Profit decreased YoY due to rising cost of funds pressure and higher ECL expense
Profit decreased YoY due to rising cost of funds pressure and higher ECL expense. Consolidated Income Statements Unit : Million Baht 2Q23 1Q24 2Q24 % QoQ % YoY 1H23 1H24 % YoY Interest Income 4,334 4,774 4,744 (0.6) 9.5 8,404 9,518 13.3 Interest Expenses (978) (1,378) (1,357) (1.5) 38.8 (1,825) (2,7
Slide 3: Well-managed balance sheet
Well-managed balance sheet Assets Liabilities Unit: Million Baht Unit: Million Baht -0.6% -3.5% +0.4% -3.6% QoQ YTD QoQ YTD Unit : Million Baht 2023 1Q24 2Q24 % QoQ % YoY Unit : Million Baht 2023 1Q24 2Q24 % QoQ % YoY Loans 234,815 235,218 233,448 (0.8) (0.6) Deposits & Borrowings 220,891 212,124 21
Slide 4: Portfolio contraction reflecting tightened loan underwriting amid fragile economic recovery
Portfolio contraction reflecting tightened loan underwriting amid fragile economic recovery Loan Portfolios Unit: Million Baht -0.8% -0.6% Retail Loans QoQ YTD -0.9% -2.1% QoQ YTD Corporate Loans -0.3% +1.5% QoQ YTD Loans by sectors SME Loans -1.6% +8.6% QoQ YTD 4
Slide 5: High-yield businesses grew at a slower pace with more cautious underwriting
High-yield businesses grew at a slower pace with more cautious underwriting Composition of Retail Loans Unit: Million Baht HP New Car HP Used Car HP Auto Cash Housing Loan Other Retail Motorcycle Loans -2.5% QoQ +2.2% QoQ +1.3% QoQ -4.6% QoQ +2.3% QoQ -5.5% YTD +4.8% YTD +2.7% QoQ +1.7% YTD -9.2% YT
Slide 6: Somwang channel expanded according to the long-term strategy
Somwang channel expanded according to the long-term strategy, while loan growth showed weaker momentum Auto Cash Loans Unit: Million Baht Auto Cash +1.3% +1.7% QoQ YTD Somwang +2.7% +5.3% QoQ YTD Loan Generated through Somwang channel Somwang Branches 6
Slide 7: Weak domestic car sale due to tightened underwriting and credit concern
Weak domestic car sale due to tightened underwriting and credit concern Industry New Car Sale TISCO’s Auto HP Penetration Rate TISCO’s Penetration Rate (%) Industry Car Sale (‘000 units) Industry Car Sale -23.8% YoY 7
Slide 8: Cost of funds increased as projected leading to a decline in loan spread
Cost of funds increased as projected leading to a decline in loan spread Change Change YoY QoQ Yield on Loans +39 bps +3 bps Loan Spread -42 bps -1 bps NIM -14 bps +12 bps Cost of Funds +81 bps +4 bps Unit: Million Baht 2021 2022 2023 1Q24 2Q24 Loan Outstanding 202,950 219,004 234,815 +7.2% 235,218
Slide 9: NPLs continued to rise caused by high-yield loan growth and weakened credit quality
NPLs continued to rise caused by high-yield loan growth and weakened credit quality Loan Classification Non-Performing Loans Unit: Million Baht Unit: Million Baht NPLs Stage 2 Stage 1 NPLs by Loan Types Mortgage Auto Cash Hire Purchase SME Other Retail Corporate 9
Slide 10: Stepping up ECL expense to absorb higher risks amid fragile economy
Stepping up ECL expense to absorb higher risks amid fragile economy Expected Credit Loss Unit: Million Baht Allowance for ECL Unit: Million Baht Coverage Ratio Expected Credit Loss (ECL) 10
Slide 11: Efficiently managed funding base to align with loan portfolio movement
Efficiently managed funding base to align with loan portfolio movement Total Funding Unit: Million Baht -0.0% -4.0% QoQ YTD Unit : Million Baht 2023 1Q24 2Q24 % QoQ % YoY Current 1,529 1,736 1,634 (5.9) 6.9 Savings 28,988 27,017 25,623 (5.2) (11.6) Fixed Deposits 178,128 179,834 179,566 (0.1) 0.8 Sh
Slide 12: Subdued fee-based businesses caused by slow economic recovery and weak sentiment
Subdued fee-based businesses caused by slow economic recovery and weak sentiment Non-Interest Income from Core Businesses Non-Interest Income from Core Businesses Breakdown Data as of 6M2024 Unit: Million Baht -1.3% YoY +7.1% +5.9% QoQ YoY Unit : Million Baht 2Q23 1Q24 2Q24 % QoQ % YoY 1H23 1H24 % Y
Slide 13: AUMs grew thanks to the increased contributions in provident fund business
AUMs grew thanks to the increased contributions in provident fund business Assets Under Management Unit: Million Baht Rank # 1 +1.0% +2.2% Provident Fund QoQ YTD +2.1% +3.4% QoQ YTD Rank #14 Mutual Fund -1.7% +0.7% QoQ YTD Rank #9 Rank #6 Private Fund -1.2% -1.0% QoQ YTD 13 *Remark: Market shares an
Slide 14: Market trading volume further decreased amid weaker investor sentiment
Market trading volume further decreased amid weaker investor sentiment TISCO Trading Volume & Market Share Unit: Million Baht Trading Volume by Customers 14
Slide 15: Stable cost-to-income ratio reflected efficient cost management
Stable cost-to-income ratio reflected efficient cost management Operating Expenses Unit: Million Baht Cost to Income Ratio -0.9% YoY +4.0% -1.0% QoQ YoY Unit : Million Baht 2Q23 1Q24 2Q24 % QoQ % YoY 1H23 1H24 % YoY Employee Expenses 1,603 1,537 1,576 2.6 (1.7) 3,173 3,113 (1.9) Premises & Equipment
Slide 16: Maintained solid capital level and exceeded BOT's requirement
Maintained solid capital level and exceeded BOT’s requirement Capital Base of TISCO Bank Unit: Million Baht Capital Adequacy Ratio BIS Ratio Tier I Ratio Min. Required by BOT 11.0% BIS Ratio 8.5% Tier I Ratio *Projected figures 16
Slide 17: Continued to expand Somwang staff and network as a part of TISCO's long-term plan
Continued to expand Somwang staff and network as a part of TISCO’s long-term plan Total Employees Number of Employees Total Branch Network Somwang Loan Offices Bank Branches 17
Slide 18: Investor Relations
Investor Relations TISCO Financial Group Public Company Limited 48/49 TISCO Tower, North Satorn Road, Silom, Bangrak, Bangkok, 10500, Thailand +(66) 2633 6868 +(66) 2633 6855 ir@tisco.co.th www.tisco.co.th Disclaimer This presentation material may contain forward-looking statements. These forward-lo
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