MFC Asset Management Public : Management Discussion and Analysis Half Year Ending 30 Jun 2022

MFC Asset Management Public Company Limited

Companys Management Discussion and Analysis

This part provides an explanation of the Companys operating results and financial status as follows:

1. Operating results (consolidated)

The table below is the summary of operating results for the second quarter and six mount periods of 2022 and 2021.

						Unit: Thousand Baht
		2nd Quarter		Six-month Periods
	2022	2021		%Change	2022	2021	%Change
Fees and service income	287,588	330,018		(12.86)	568,702	810,280	(29.81)
Interest income	3,257	3,560		(8.50)	6,376	6,988	(8.76)
Gain and return on financial	6,655	3,916		69.92	10,152	8,939	13.57
instruments
Other income	278	165		68.73	624	421	48.11
Total revenues	297,778	337,659		(11.81)	585,853	826,628	(29.13)
Employee benefits expenses	124,280	109,264		13.74	248,932	220,676	12.80
Fees and service expenses	53,573	84,086		(36.29)	102,297	318,130	(67.84)
Interest expenses	960	1,521		(36.89)	2,063	3,159	(34.68)
Other expenses	31,310	28,226		10.93	61,596	56,767	8.51
Total expenses	210,123	223,097		(5.82)	414,889	598,732	(30.71)
Net profit	71,114	92,274		(22.93)	138,044	183,579	(24.80)

The Companys net profit for the second quarter 2022 was Baht 71.11 million, decrease by Baht

21.16 million or 22.93% when compared with the same quarter of the previous year. The Company8s fees and service income was Baht 287.59 million, decrease by Baht 42.43 million or 12.86% from this quarter last year, while the companys expenses was Baht 210.12 million, decreased by Baht 12.97 million or 5.82% from last year period

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And The Companys net profit for the six month of 2022 of Baht 138.04 million, decrease by Baht

1. million or 24.80% from the same period last year. The Company8s fees and service income was Baht

1. million, decrease by Baht 241.58 million or 29.81% from this period last year. There were 8 new funds divided into 5 equity fund and 3 fixed income fund with a total net asset value of Baht 2,193 million compared with last year there were 10 new funds divided into 6 equity fund and 4 fixed income fund with a total net asset value of Baht 8,223 million. However the companys expenses decreased by Baht 183.84 million or 30.71% from last year period.

2. Financial Status (Consolidated)

The table summarizes the Companys financial status as follows:

		Unit: Thousand Baht
	As at 30 Jun 2022	As at 31 Dec 2021	% Change
Total assets	1,487,036	1,739,625	(14.52)
Liabilities and shareholders' equity
Total liabilities	319,854	419,394	(23.73)
Shareholders' equity	1,167,181	1,320,231	(11.59)

As of 30 June 2022, the total assets were Baht 1,487.04 million, decreased by Baht 252.59 million or 14.52% from the amount as at the end of 2021.The main components of total assets were investments of Baht 979.02 million or 65.84% of total assets, cash and cash equivalents of Baht 186.26 million or 12.53% of total assets, accrued fees and service income from asset management business of Baht 114.60 million or 7.71% of total assets and right-of-use assets of Baht 57.19 million or 3.85% of total assets.

As of 30 June 2022, the total liabilities were Baht 319.85 million, decreased by Baht 99.54 million or 23.73% from the end of last year.

Lastly, the total shareholders equity as of 30 June 2022 was Baht 1,167.18 million, decreased by Baht 153.05 million or 11.59% from the end of last year.

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3. Key Financial Figures (Consolidated)

	As at 30 Jun 2022	As at 31 Dec 2021
Book value (Baht per share)	9.29	10.51
Return on total assets (%)	18.57	17.60
Return on equity (%)	23.65	23.19
Net profit margin (%)	23.56	20.07

Signature _______________________

(Mr.Thanachote Rungsitivat)

President