BANGKOK, July 11 (Reuters) - Thailand’s Tisco Financial Group Pcl on Tuesday beat expectations with a nearly 25 percent increase in second quarter profit buoyed by higher net interest income.
Thailand’s seventh largest bank by revenue was the first to post its second quarter earnings so could give some indication for the sector ahead of results from larger peers due next week.
“The domestic economy continued to improve following the expansion in the export sector, private consumption and increasing farm income,” a company statement said. “Nonetheless, private investment and public investment remained subdued.”
Second quarter profit of 1.51 billion baht ($44 million) topped expectations of 1.42 billion baht from analysts polled by Reuters.
Net interest income rose 2.6 percent year on year and non-interest income rose by 8.8 percent.
Non-performing loans rose to 2.41 percent from 2.37 percent in the first quarter, but were down from 2.54 percent a year earlier.
The bank cut its loan-loss provisions by more than 41 percent to 542 million baht.
Tisco is due to complete its acquisition of Standard Chartered Bank Thailand’s retail banking operations by the end of the year.
It said it expected to maintain the same asset quality and non-performing loans ratio after the transfer.
$1 = 34.1100 baht Reporting by Chayut Setboonsarng; editing by Jason Neely