Thanachart Bank (TBank) has avoided a letdown following the recent elimination of digital transaction fees, with higher net interest income and non-interest income bumping its net profit during the second quarter.
The bank delivered a 14.7% year-on–year increase and 1.1% quarter-on-quarter rise in its consolidated net profit for the three months through June to 3.82 billion baht, stretching the growth to 14 consecutive quarters, according to the bank's filing with the Stock Exchange of Thailand (SET).
TBank's quarterly net interest income rose by 5.49% from a year earlier to 7.69 billion baht, thanks to growth in retail and small business loans, while non-interest income surged by 7.32% over the same period last year to 3.28 billion.
However, its second-quarter non-interest income fell 2.44% from the previous three months.
The bank's net fee and service income for the second quarter dropped by 8.05% from the previous quarter to 1.56 billion baht.
Its interest spread for the second quarter rose to 3.08% from the first three months, the bank said without providing a comparative figure.
TBank set aside loan-loss reserves of 1.4 billion baht in the second quarter, up from 1.32 billion year-on-year but down from 1.43 billion quarter-on-quarter.
Its gross non-performing loan ratio stood at 2.25% at the end of June. For the first six months, TBank posted a net profit of 7.6 billion baht, up from 6.6 billion a year before.
The bank scrapped its transaction fee for digital inter-bank and cross-clearing zone fund transfers and bill payments in April.
