Net profit of Nu 84.34mn for T-Bank in 2021

The profit before tax increased by 152.72%

Despite the financial sector being impacted by the Covid-19 pandemic, Tashi Bank (T-Bank) recorded a very good financial performance last year.

The Profit Before Tax (PBT) increased by 152.72% from Nu 55.22mn in 2020 to Nu 139.56mn last year, meaning that the bank made Nu 84.34mn net profit last year.

In addition, the total operating income of the bank has increased by 10.31% from Nu 356.84mn in 2020 to Nu 393.61mn last year. In contrast, the total operating expenses decreased by 15.77% from Nu 301.61mn in 2020 to Nu 254.05mn in 2021.

“This decrease in operating expenses is mainly due to a decrease in provision expenses on impairment of loans by 94.42% from Nu 61.03mn in 2020 to Nu 3.40mn in 2021,” a bank official said.

Further, the total assets of the bank increased by 12.33% from Nu 12bn in 2020 to Nu 13bn last year. This increase in assets is primarily due to the growth in loans and advances by 5.81% from Nu 8bn in 2020 to Nu 8.4bn last year, and investment of Nu 37.71mn and Nu 361.62mn in the shares of BNBL and RICBL respectively.

According to the financial report of the bank, the total liabilities of the bank increased by 11.70% from Nu 11.1bn in 2020 to Nu 12.4bn last year.

The report states that it is primarily due to the growth in customers’ deposits by 24.92% from Nu 8bn in 2020 to Nu 10bn in 2021. The bank has a total paid-up capital of around Nu 600mn of which 60,025,223 shares of Nu 10 per share are fully paid up.

The total reserves increased by 66.85% from Nu 271.16mn in 2020 to Nu 452.42mn in 2021, mainly due to the transfer of PAT and transfer of provision and Interest In-Suspense (IIS) of Non-Performing loans (NPLs) – transferred to the Asset Pending Foreclosure (APF) – to the Asset Pending Foreclosure Reserve (APFR) during the year based on the Monetary Measure (MM) implemented by the Royal Monetary Authority (RMA).

The total shareholders’ fund increased by 20.06% from Nu 903.91mn in 2020 to Nu 1bn in 2021.

Meanwhile, T-Bank recorded a very high financial performance in the last five years with an average annual growth rate of Profit Before tax of 43.53% during the period between the years 2017 to 2021.

Last year, the total value of loans and advances increased by 5.81% from Nu 8bn in 2020 to Nu 8.4bn in 2021.

According to the report, the fixed deposits increased by 9.31% from Nu 6.6bn in 2020 to Nu 7.2bn last year. The recurring deposits increased by 31.78% from Nu 97.51mn in 2020 to Nu 128.50mn in 2021.

The savings deposits increased by 11.17% from Nu 2.7bn in 2020 to Nu 3bn last year and the current deposits also increased substantially by 40.16% from Nu 928.54mn in 2020 to Nu 1.3bn in 2021.

Kinley Yonten from Thimphu