October 12, 2017 / 6:03 AM / a year ago

UPDATE 1-Thailand's Tisco posts higher profit, sees 10 pct annual loan growth

* Tisco Financial Q3 net profit jumps almost 26 percent y/y

* Aided by expansion in country’s tourism, export sectors

* Does not expect to increase loan provisions next quarter

* Loan growth to be slower in 2018 vs 2017 (Changes date, adds loan growth, comment from executive)

BANGKOK, Oct 12 (Reuters) - Thailand’s Tisco Financial Group reported an almost 26 percent jump in its quarterly earnings, driven by expansion in the country’s tourism and export sectors, and said it expects a recovery in loan growth this year.

Tisco, Thailand’s No.7 lender by revenue, is the first bank to report earnings and could give an indication of the sector’s performance as larger banks report results in the weeks ahead.

For the third quarter ended September, Tisco posted a net profit of 1.57 billion baht ($47.32 million), in line with an average estimate from analysts polled by Thomson Reuters.

The company said its quarterly operating income grew 7.8 percent from last year, while net interest income after impairments for bad loans rose 29.7 percent.

Overall growth was supported by the expansion of “the export sector, private consumption and the tourism sector”, the company said in a statement late on Wednesday.

Non-performing loans (NPL) fell 3.3 percent from the last quarter to 169.51 million baht. NPL ratios among Thai banks are expected to have peaked by the end of the second quarter.

Tisco does not expect to increase loan provisions next quarter and will maintain NPLs until the year end near 2.3 percent of total loans, Chatri Chandrangam, first executive vice-president, Risk and Financial Control, told reporters.

He expects the company to record a loan growth of 10 percent this year after it takes over the retail banking business from the Thai unit of Standard Chartered Bank. Loans were down 5.6 percent at the end of last year.

Growth will, however, slow in 2018, he said on Thursday. ($1 = 33.1800 baht) (Reporting by Chayut Setboonsarng, editing by Louise Heavens and Himani Sarkar)

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