56-1 One Report / Annual Report 2021 Thanachart Capital Publ ic Company Limited 139 an increase of 63 million baht. Of the fees and service income, fees from the portfolio advisory services (ZEAL) amounted to 112 million baht, representing an increase of 63 million baht while fees from trading mutual funds amounted to 101 million baht, representing an increase of 65 million baht. The increases were in line with the substantial expansion of ZEAL transactions volume and mutual fund brokerage services. Expenses TNS’s expenses in relation to securities business in 2021 consisted of fees and service expenses as well as interest expenses which amounted to 176 million baht and 42 million baht respectively, representing an increase compared to the prior year in line with the increase in TNS’s securities trading volume and transactions. Operating expenses amounted to 859 million baht, which consisted of employee benefit expenses and other expenses. In this connection, TNS’s operating expense ratio based on security business revenues amounted to 45.28 percent. Net Profit Net profit of TNS in 2021 amounted to 661 million baht, representing an increase of 182 million baht compared to prior year. Total income increased by 25.51 percent while total eapenses increased by 17.00 percent, resulting in the increase in net profit. In this connection, earnings per share amounted to 0.22 baht while net profit margin was 34.72 percent. Financial Position Assets As of 31 December 2021, total assets of TNS amounted to 8,679 million baht, representing an increase of 26.66 percent compared to 2020 year end. Most of TNS’s assets include securities business receivables and receivables from clearing house and broker dealers as well as investments. In this connection, securities business receivables and receivable from clearing house increased by 16.07 percent from the prior year. TNS’s investments which were investments listed on the SET increased by 75.02 percent. This was mainly due to the growth of block trades as well as the transactions related to the derivative warrants issued. Furthermore, TNS invested in developing information systems and a data center to support various transactions. As a result, computer equipment and software increased by 162 million baht, representing an increase 2.99 percent in terms of total assets. The return on assets (ROA) was 8.51 percent. Securities Business Receivables and Derivatives Business Receivables Securities business receivables arose from the stock purchases made by TNS’s customers through TNS. In this connection, customers would pay for the stock within two business days. Other receivables included derivatives business receivables, margin loans, receivables under debt restructuring, as well as receivables under enforcement of court judgements by way of reconciliation or in the process of making installment payments. As at 2021 year end, securities business receivables and derivatives business receivables of TNS amounted to 5,596 million baht, increased by 1,334 million baht or 31.30 percent compared to the prior year. The receivables consisted of margin loans worth 4,730 million baht, representing an increase of 1,727 million baht or 57.51 percent, as well as cash accounts receivables worth 843 million baht, representing a decrease of 404 million baht or 32.40 percent. This was mainly due to the difference in trading value between the two periods. TNS classifies securities business receivables and derivatives business receivables, using the Thai Financial Reporting Standards No. 9 - Financial instruments. As of 31 December 2021, TNS set aside the allowance for expected credit loss in full compliance with the Thai Financial Reporting Standards No. 9.
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