56-1 One Report / Annual Report 2021 Thanachart Capital Publ ic Company Limited 117 Consolidated Financial Statements 31 December 2021 2020 2019 Profitability Ratios Gross Profit Margin 69.08 65.06 65.36 Net Profit Margin 51.82 52.53 25.05 Return on Equity(1) 8.31 10.47 15.70 Efficiency Ratio Return on Assets 4.73 5.24 1.67 Financial Ratio Debt to Equity (times) 0.93 0.93 1.17 Asset Quality Ratios Allowance for Doubtful Accounts to Loans and Accrued Interest Receivables 4.52 4.45 5.54 Non-performing Loans to Total Loans(2) 5.10 5.14 5.02 Share Information (Baht) Book Value per Share 62.10 60.38 57.46 Earnings per Share 5.04 6.26 9.43 (Unit: Percent) Financial Ratios Notes: (1) Return on Equity = (Net Profit Attributable to the Company/Average Equity Attributable to Owners of the Company) (2) Non-performing Loans to Total Loans is in accordance with the regulations of the BOT Economics Outlook and Competition in Banking Industry Overall, the Thai economy in 2021 grew by 1.6 percent, compared with the prior year 2020 in which the economy suffered a sharp contraction of 6.2 percent as a result of the COVID-19 pandemic. Although there were multiple waves of COVID-19 in 2021, particularly the spread of the new variant Delta from the second quarter to the fourth quarter of the year, during which there were tens of thousands of daily coronavirus infections. As a result, the economic recovery was delayed. However, thanks to the relaxation of the containment measures to halt the spread of the virus and the state’s spending stimulus measures, which were launched gradually in the last quarter of the year, the decline in the number of infections due to accelerated vaccinations, as well as the increase in exports in line with the demand recovery in the trading counterpart countries, the Thai economy expanded from the prior year. In view of the COVID-19 pandemic which had severe impacts on the country’s economic system, the BOT together with financial institutions launched various appropriate measures to mitigate the adverse impacts from the COVID-19 pandemic on the general public and each business group. Meanwhile, the BOT’s Monetary Policy Committee maintained the policy rate at 0.50 percent per annum throughout the year since the committee considered that the maintenance of the financial policy relaxation would help support the overall expansion of the economy.
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