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TMB Bank PCL.

Building the Best Transactional Bank in Thailand

APAC Financial Corporate Day (Singapore and Hong Kong)December 2013

Make THE Difference

Management and shareholder structureMake THE Difference

Management’s past experiences/credentials Management’s past experiences/credentials Major shareholders (24 April 2013)

•More than 20 years in Thai banking with broad experience in corporate banking, capital market, and SME banking

Chief Executive Officer

E t i i i t b ki g d Chief Wholesale

ING BANK N.V., 25.16%

Thai NVDR, 8.76%

DBS BANK, 2.64%

Military group* •Extensive experience in corporate banking and capital market in top Thai banks

Chief Wholesale Banking Officer

•Extensive experience in SME and micro business in top Thai banks

Chief SME and Supply Chain

Ministry of Finance, 26.06%

Military group , 2.15%

HSBC (SINGAPORE) NOMINEES,

1.90%Others, 33.34%

•Mr Boontuck •Mr Piti •Mr Paphon •Mr Bernard

Top management teamTop management team

in top Thai banksOfficer

•Last 16 years in ING in different management roles. Latest position was Head of private banking clients ING Global

Chief Retail Banking Officer

•Mr. BoontuckWungcharoen

CEO

•Mr. PitiTantakasem

CWBO

•Mr. PaphonMangkhalathanakun

CSSO

•Mr. Bernard Coucke

CRBO

•More than 13 years in risk management in ING: Chief Risk Officer at ING IVBL, India, Senior Credit Officer, ING Amsterdam

Chief Risk Officer

Long e perience as Chief Finance Officer Last

•Mr. ThanomsakChotikaprakai

•Mr. Jan Van Wellen**

•Mr. Lorenzo Bassut***

•Long experience as Chief Finance Officer. Last position, Chief Finance Office of Standard Charter (Thailand)

Chief Finance Officer

•10 years of experience as Chief Operating Officer with ING in Russia, Hungary and Hong

Chief Operating Offi

CFO CRO COO

[2]Note:*Included Royal Thai Army, Thai Navy, Thai Air Force, RTA Entertainment Co. Ltd. and Military unit**Official effective date was May 1st, 2013, ***Official effective date was October 1st, 2013

Officer with ING in Russia, Hungary and Hong Kong Officer

TMB aspirations: To be the leading Thai bank, with 14% ROE by FY2014

Make THE DifferenceFY2014

The Leading Thai Bank with World Class Financial Solutions

Market leadership

Competitive scale (10% deposit market share)

Sustained profitability

Top quartile shareholders’ return (ROE > 14%)

Strong funding structure (40% transactional deposit contribution)

( )

Sustainable revenue mix:40% contribution from consumer banking

40% contribution from SME Main bank status (~ 20% customer market share in

wholesale/SME/retail segments)

40% contribution from SME and ≥30% contribution from non‐interest income

Customers

Top tier satisfaction/Engagement level

Regulators

‘Good’ Rating

Employees

Employer of ChoiceFor Financial Service and

[3]

Engagement level For Financial Service andTop tier engagement level

Three-phase Transformation: Moving toward the Best Transactional Bank

Make THE DifferenceTransactional Bank

Phase 3:Building Market LeadershipThe Best Transactional Bank

Phase 2:Differentiation &Quality Growth

Phase 1: Laying the Foundation

2008‐2009 2010‐2012 2013‐ onward

• Reorganization

• Branch transformation Service and operational

excellence • Implement Branded Customer

Experience

• Branch transformation

• End‐to‐end process

• HR transformation

• Risk management

excellence

Product expansion

Channel enhancement

Brand enhancement

Experience

• Clear 5 Strategic Intents

[4]

Risk management

TMB strategic intents: The elements to achieve our aspirationsMake THE Difference

…at individual level and community level that enable the Bank to develop innovative enable the Bank to develop innovative products and services that match with

customer’s needsHave Strong Customer

Understanding

…while managing cost of deposits to be in line with leading peers

…while managing servicing expenses down to enable the Bank to have better liquidity management, better

risk management and lower cost of deposit

Grow Quality Deposit

Optimise Capital & Liquidity Utilisation

Build Transactional

Banking Excellence

…by focusing more on better risk adjusted return segments as well as achieve level of

UtilisationExcellence

profit expected by investors

…in every part of the organisation through Lean Organisation and Lean Six Sigma to

support strong growth of sales and servicing

Ensure Cost Efficiency

Management

[5]

transaction Management

Tangible result from the Deposit led‐strategyMake THE Difference

Development of TMB transactional accounts Transactional Banking Account Savings & Investment Account Development of TMB transactional accounts, both for business and individuals, led to strategic interest rate reduction in CASA in 2012

g g

Provide transactional convenience that outweigh lower saving interest rate

Provide higher interest rate for saving and investing than

traditional saving account with lower saving interest rate higher flexibility

Products: TMB No feeTMB No Limited O B k O t

Products: No fixed accountME by TMB

As a results deposit cost has improved to

One Bank One accountFree float

Cost of deposit (ex. DPA) 4 Big‐banks TMB

As a results, deposit cost has improved to match the strongest peers in 2012 and remained on par during 2013

1.61% 1.64%1.54%

1.67% 1.66%

1.3%

1.5%

1.7%

1.9%

0.70%

1.22%1.07%

0.7%

0.9%

1.1%

Source: Consolidated financial statements [6]

0.5%

FY2010 FY2011 FY2012 9M13

Leading to NIM improvement Make THE Difference

TMB’s average loan yield has improved 6 5%

Yield on Loans (inc. Hire purchase) TMB 4 Big‐banks

TMB s average loan yield has improved, thanks to shift in loan mix toward higher yielded lending i.e. Small and Medium Enterprise 5.0%

5.5%

6.0%

6.5%

3 0%

3.5%

4.0%

4.5%

From better yield and improving cost of

3.0%

FY2010 FY2011 FY2012 9M13

4 Big‐banks TMBNet Interest Margin From better yield and improving cost of

fund, TMB’s NIM has closed the gap with top tier peers in Thailand

%

2.5%

3.0%

3.5%

4.0%

0 0%

0.5%

1.0%

1.5%

2.0%


0.0%

FY2010 FY2011 FY2012 9M13

Non‐NII growing together with NIIMake THE Difference

NIM enhancement and performing loan Net interest income p ggrowth led to consistent growth in Net interest income

14,235

17,065

14,820 12,00014,00016,00018,000THB million

10,416

2,0004,0006,0008,00010,000

Non‐interest income base has also Non‐NII (ex. gain on sale of assets)

0

FY2010 FY2011 FY2012 9M13

Non interest income base has also consistently increased mainly from increase in fee and service income

6,581

7,641

6,137 6,000

7,000

8,000

9,000THB million

5,751 6,137

0

1,000

2,000

3,000

4,000

5,000


0

FY2010 FY2011 FY2012 9M13

The focus on efficiency has steadily improved TMB’s cost to income ratio

Make THE Differenceincome ratio

Operating income and expenses Growth in NII and Non‐NII formed a consistent

20,000

25,000

30,000THB million Operating income Operating expensesgrowth of total revenue, reflecting the bank’s

ability to offer better services and products which derived from customer understanding

0

5,000

10,000

15,000 The bank also has been focusing on cost efficiency through lean initiatives which has allowed the bank to manage cost well

0FY2010 FY2011 FY2012 9M13

As a result, TMB’s cost to income ratio has been brought down and the gap with top tier peers is Cost to Income Ratio (ex. extra items) 4 Big‐banks TMB

being closed

50 0%

60.0%

70.0%

80.0%

90.0%

10.0%

20.0%

30.0%

40.0%

50.0%


0.0%

FY2010 FY2011 FY2012 9M13

Downside risk has been limited Make THE Difference

TMB’s continuous and proactive debt restructuring NPL Formation NPL formation (LHS)

efforts together with NPL sale has brought NPL down close to top peers

An uplift of credit underwriting standard has improved

2.5%1.8% 1.5% 1.4%*

1 0%

2.0%

3.0%

8 000

10,000

12,000

THB Million % NPL formation to total loans (RHS)

Annualized

and contained NPL formation rate

Coverage ratio has also been lifted up to be on par with the top‐tier peers ‐2.0%

‐1.0%

0.0%

1.0%

2,000

4,000

6,000

8,000

p p

NPL Ratio (ex. Interbank) 4 Big‐banks TMB

‐3.0%0

12M10 12M11 12M12 9M13

NPL Coverage Ratio 4 Big‐banks TMB

9.0%

12.0%

90.0%

120.0%

150.0%

0.0%

3.0%

6.0%

0.0%

30.0%

60.0%


0.0%

FY2010 FY2011 FY2012 9M13

0.0%FY2010 FY2011 FY2012 9M13

Make THE Difference

3Q13 and 9M13 financial performance update

[11]

Financial performance: Improvement in operation continuesMake THE Difference

Operating performance continued to improve.Operating performance continued to improve.

Pre‐provision core operating profit (PPOP) amounted to THB 3,311 mn in 3Q13, up 16.3% YoY.

Pre‐Provision Operating Profit PPOP (internal)

9M13 PPOP totaled to THB10,448 mn or grew 39.0% YoY.2,846 2,884

3,414 3,724

3,311

2,000

2,500

3,000

3,500

4,000

Key PPOP drivers are both interest income and fee and service income, together with efficiency enhancement

‐

500

1,000

1,500

,

3Q12 4Q12 1Q13 2Q13 3Q13

3Q13 net profit was THB1,870mn and 9M13 profit was THB3,938mn, or 35.6% improved

3Q12 4Q12 1Q13 2Q13 3Q13

ROE of 3Q13 was 12.6% and 9 month ROE was 9%.

Source: consolidated financial statements [12]

Financial performance : NII and NIM improved from higher loan yields volume growth and well‐managed funding cost

Make THE Differenceloan yields, volume growth and well managed funding cost

3Q13 Net interest income (NII) was THB5,188 mnTHB illi

Net interest income and NIM Net income from interest (NII) (LHS)Net interest margin (NIM) (RHS)

(+17.3% YoY and +6.3% Q0Q), mainly from better performing loan yields and larger loan volume, especially small enterprise (SE) loan.

2.82% 2.88%2.95% 2.99%

3.07%

4,000

5,000

6,000

2.8%

3.0%

3.2%THB million

3Q13 net interest margin (NIM) was at 3.07%, up +25bps YoY. The sharp rise was mainly from SE loan growth and partly from interest income from

4,421 4,655 4,753 4,878 5,188

1,000

2,000

3,000

2.2%

2.4%

2.6%

restructured loan.

Without the extra‐interest, NIM stood at 2.97%, rose +15bps YoY relatively flat QoQ

0 2.0%

3Q12 4Q12 1Q13 2Q13 3Q13

NIM, Deposit&BE cost and Loan yieldYield on loan Cost of deposit & BE Net interest margin (NIM) rose +15bps YoY, relatively flat QoQ.

For 9M13, NII increased to THB14,820 mn (+19.4% Y0Y) with NIM increased by 34bps to 3.01%.

5.64% 5.68% 5.78% 5.89% 6.05%

88% 2 95% 2 99% 3 07%4.0%

5.0%

6.0%

7.0%Yield on loan Cost of deposit & BE Net interest margin (NIM)

) y 34 p 3

2.17% 2.15% 2.10% 2.18% 2.22%

2.82% 2.88% 2.95% 2.99% 3.07%

0 0%

1.0%

2.0%

3.0%

[13]Source: consolidated financial statements

0.0%

3Q12 4Q12 1Q13 2Q13 3Q13

Financial performance : Non‐interest income rose YoY, driven by net fee income

Make THE Difference

THB million

Total non‐interest income (ex gain on assets)

by net fee income

Total non interest income increased by 5.7% YoY,

1,770 1,983 1,982

2,204

1,871 1,600

2,000

2,400 driven mainly by a 11.8% YoY growth in net fees and service income.

The increase was mainly from higher mutual fund

400

800

1,200

The increase was mainly from higher mutual fund, credit related fee, Bancassurance and ATM.

For 9M13, non interest income was THB6,137 mn, 4003Q12 1.18%

4Q12 1.64%

1Q13 1.25%

2Q13 1.42%

3Q13 1.16%

9 3, , 37 ,growing 21.2% from 9M12

Net fee income breakdown ‐ 3Q13

% Non‐interest income to

earning assets

Credit card/ merchant & ATM 17%

Cash management & Payment, 5%

Mutual fund & Bancassurance

, 36%ATM, 17%

Trade finance,

Source: consolidated financial statements, *fees breakdown is based on bank only basis, 1Q12‐4Q12 numbers were restated as per accounting standard [14]

Credit‐related, 35%

,3%

Others, 4%

Financial performance : Efficiency improved from revenue enhancement and cost management

Make THE Differenceenhancement and cost management

Total non‐interest expenses were THB3,577mn, l ti l fl t Y Y

Operating income and expenses 9 month YoY growthOperating income = 20 1% relatively flat YoY

If excluding reversal of provision from TAMC & provision for other liabilities and loss on properties

6,191 6,638 6,735 7,083 7,058

6,000

7,000

8,000

THB million Operating income Operating expensesOperating income = 20.1%Operating expenses = 6.6%

foreclosed, non‐interest expenses rose 11.7% YoY

The rise in expenses were mainly from staff and training costs as well as marketing expenses.

3,359 3,709 3,368 3,390

3,752

1,000

2,000

3,000

4,000

5,000

g g p

Cost to income ratio (CI) was at 53.1% in 3Q13. The 9‐month CI was 50%

70.0%

Operating cost to income ratio

0

3Q12 4Q12 1Q13 2Q13 3Q13

The improvement of CI reflected higher efficiency from lean initiatives and well‐controlled costs.54.0% 56.6%

49.3% 47.4%53.1%

40.0%

50.0%

60.0%

7

Remark: Operating income excluded gain on sale of assetOperating expenses excluded Loss on impairment of properties foreclosed, 0.0%

10.0%

20.0%

30.0%


Operating expenses excluded Loss on impairment of properties foreclosed, Provisions of obligation on transfers of non‐performing assets, Provision for other liabilities

3Q12 4Q12 1Q13 2Q13 3Q13

Financial performance : Increasing focus on Retail deposit and Transactional deposit base

Make THE DifferenceTransactional deposit base

As of 3Q13, deposits totaled toTHB516.2bn, up 8.0% QoQ and 4 0% YTD thanks to an inflow of retail

Deposit mix Current Saving No Fixed & ME FixedQoQ and 4.0% YTD, thanks to an inflow of retail deposits from No Fixed, ME and newly launched time deposit product (9 month‐TD ).

300,000

400,000

500,000THB million

38.3%

27 9%

36.5%

%

35.0% 35.5%

516bn496bn496 bn477 bn 478 bn

37.3%

Retail deposit and Transactional account expansion remained on trackNo Fixed grew 13.3% Q0Q and 10.2% YTD.ME grew 34.9%Q0Q and 135.5% YTD.0

100,000

200,000

3 ,27.9%

27.2%

6.7%

21.9%

30.6%

10.9%

24.6%

29.1%

11.3%

23.2%

30.6%

10.7%

26.1%

29.8%

6.8% ME grew 34.9%Q0Q and 135.5% YTD.One Bank One Account together with Free Flow

Daily Account grew 31.1% QoQ and 146.5% YTDExcluding DPA fee of 46bp

0

3Q1265.8%

4Q1266.3%

1Q1364.2%

2Q1368.4%

3Q1368.8%

Cost of deposit&BE (Incl. DPA)

Deposit cost slightly rose to 2.2% or +4bps from 2Q13 due to growth in No‐fixed and ME accounts.

Retail deposit represented 68.8% of total deposit as of

2.17% 2.15% 2.10% 2.18% 2.22%

2.0%

2.5%

3.0%

Retail deposit represented 68.8% of total deposit as of 3Q13 .

0 0%

0.5%

1.0%

1.5%

Source: consolidated financial statements, * No fixed account started in May 2011, ME started in Dec.11, 9M‐TD launched in Sep 4th‐Oct 4th [16]

0.0%

3Q12 4Q12 1Q13 2Q13 3Q13

Financial performance: Performing loan mix shifted to higher yield with good momentum

Make THE Difference

Performing Loan Breakdown WBG BB SE Retail

yield with good momentum

As of Sep‐13, total loans were THB475.2 bn, increased f442bn 453bn

407bn 431bn 432bn

350,000

450,000THB million

18%

20%

18%

17%19%

15%

18%

15%

18%

18%SME

2.4% QoQ and 5.0% YTD. Performing loans were THB453.5bn, rose 2.6% QoQ and 5.3% YTD.

The increase was mainly from SME performing loan

150,000

250,000 17%

46%

17%

48%

15%

16%

50%

17%

50%

17%

47%

SME mix= 37%

y p ggrowth especially small enterprise (SE). Retail lending increased 1.9% QoQ and 2.3% YTD , thanks to unsecured loans and credit card.

50,000

3Q12 4Q12 1Q13 2Q13 3Q13 Because of strong growth, SME performing loan mix increased to 36.5% in 3Q13. SE loan rose by 11.4% QoQ and 35.5% YTDLoan yield

BB loan grew by 3.4% QoQ and 6.4% YTD. Total SME loans, hence, enlarged by 7.6%QoQ and

20.4% YTD.

5.64% 5.68%5.78%

5.89%6.05%

5.8%

6.0%

6.2%

6.4%

Loan yield continue to improve as a result of shifting of loan mix

5.64%

5 0%

5.2%

5.4%

5.6%

[17]Source: Yields on loan calculated from consolidated financial statement, Performing loan breakdown based on bank‐only

5.0%

3Q12 4Q12 1Q13 2Q13 3Q13

Financial performance: Volume growth during 3Q13 catching up with market with quality

Make THE Differenceup with market with quality

TMB’s deposit growth picked up in 3Q13 mainly TMB Sector (7 largest banks)Deposit growth

from increase in retail deposit which replaced the exit of a large corporate account in the previous quarter

7.9%8.4%

9.5%

6.0%

8.0%

10.0%

2.5%

0 0%

2.0%

4.0%

Loan growth mainly contributed by higher yielded TMB Sector (7 largest banks)Loan growth

0.0%

QoQ (3Q/13 ‐2Q/13) Past 12 month

g gsegment .i.e. SME, and smaller size of corporate loans, which not only improve average yield but increase diversification of lending

9.1%

11.3%

8.0%

10.0%

12.0%

Loan growth

2.4%1.7%

%

2.0%

4.0%

6.0%

[18]Source: Consolidated financial statement

0.0%

QoQ (3Q/13 ‐2Q/13) Past 12 month

Financial performance: NPL remained on track to achieve the bank’s target

Make THE Differencebank s target

Non performing loans Non performing loans (LHS)

Gross NPL ratio (RHS)

Consolidated NPLs wereTHB22,767 million, dropped 1.5% YTD.28,192

22,103 21,872 22,137 21,767 25,000

30,000

35,000

5 0%

6.0%

7.0%

THB million

Consolidated NPL ratio as of Sep‐13 declined to 3.79%.

NPA ratio reduced further to 0 24% due to

5.44%

4.10% 4.00% 4.03%3.79%

5,000

10,000

15,000

20,000

3.0%

4.0%

5.0%

NPA ratio reduced further to 0.24%, due to ongoing sale of NPA as planned 0 2.0%

3Q12 4Q12 1Q13 2Q13 3Q13

THB million

Property foreclosed Net properties foreclosed (LHS)

Percentage of gross NPA (RHS)

2,335 2,151 2,071

1,913 1,805

1,500

2,000

2,500

2.5%

3.0%

3.5%

4.0%THB million

0.35% 0.30% 0.28% 0.27% 0.24%500

1,000

0.5%

1.0%

1.5%

2.0%


0 0.0%

3Q12 4Q12 1Q13 2Q13 3Q13

Coverage ratio maintained at high levelMake THE Difference

Provision to performing loan to performing loan Provision for NPL/NPL

2 6% 2 5%

3.3%

3.4%2.5%

3.0%

3.5%

4.0%Counter cyclical buffer

45%

66% 67% 65% 67%

50%

60%

70%

80%

2.6%2.3% 2.5%

0 0%

0.5%

1.0%

1.5%

2.0%

0%

10%

20%

30%

40%

0.0%

3Q12 4Q12 1Q13 2Q13 3Q13

Coverage ratio remained strong both for performing NPL coverage ratio NPL Coverage ratio *NPL Coverage ratio (Bank Only)

0%

3Q12 4Q12 1Q13 2Q13 3Q13

Coverage ratio remained strong both for performing loans and non‐performing loans

Total allowance/total NPL was 138% on consolidate basis, d h f b k

113% 118%132% 138%

90%

110%

130%

150%

g g ( y)

compared with 146% of Top 4 banks

The bank intends to maintain the ratio at high level

83%

145%*85%* 118%* 124%* 139%*

10%

10%

30%

50%

70%


‐10%3Q12 4Q12 1Q13 2Q13 3Q13

Financial performance : TMB maintains strong capital baseMake THE Difference

Capital adequacy ratio (CAR) Tier I Capital18.90% 18.16% 17.31% 16.86% 16.83%

15%

20%11.63% 11.11% 11.50% 11.26% 11.24%

10%

12%

14%

8.50% 8.50% 8.50% 8.50% 8.50%

5%

10%

Capital adequacy ratio (CAR) ‐ Applied with Basel III after 1Q13 onward

Minimum BOT requirement

4.25% 4.25%

6.00% 6.00% 6.00%

2%

4%

6%

8%

Tier I Capital ‐ Applied with Basel III after 1Q13 onward

0%

3Q12 4Q12 1Q13 2Q13 3Q13


0%

3Q12 4Q12 1Q13 2Q13 3Q13


The bank continued to maintain capital base at high level under Basel III requirements

As of September 2013, the Capital Adequacy Ratio (CAR) and Tier I Capital were reported at 16.8% and

11.2%, respectively

The bank also has planed to maintain capital at strong level

Source: Bank‐only basis, * Basel III [21]

Make THE Difference

TMB strategy and progress

[22]

Achieved tangible results from the transformationMake THE Difference

Strengthened Fundamentals at TMB

√ Manage cost of fund to match the top tier peers√ Manage cost of fund to match the top tier peers

√ Consistent increase of NII

√ NIM enhancement

√ Increase efficiency and bring down cost to income ratio

√ Continued increase of PPOP

√√ Continue to reduce NPL and maintain high coverage ratio

√ Maintain high capital base under Basel III

[23]

Going forward….Make THE Difference

TMB Branded Customer Experience

Deepen Share of WalletLaunched Brand “MakeTHE Difference p

Initiatives for 2013‐2014

Acquisition of Quality Customers

Service•Service Operational

Product• Innovative Products ROE 14% p

Excellence •Physical Channel Optimisation

•Quality Deposit4

by 2014 and

sustained

Process•Lean Six Sigma

Risk Management

profitability

People•Reorganisation g

•Process Improvementg

•HR Transformation

[24]

Make THE Difference

Appendix: TMB fi i l t t t TMB financial statement

[25]

Selective financial numbers and ratios: Comprehensive income statement for consolidation

Make THE Differenceincome statement for consolidation

(Unit:THB million) 3Q13 2Q13 % Δ QoQ 3Q12 % Δ YoY 9M12 % Δ YOY

Statement of Comprehensive Income

Interest income 8,738 8,296 5.3% 7,775 12.4% 22,630 11.0%

Interest expenses 3,550 3,417 3.9% 3,354 5.9% 10,220 0.7%

Net income from interest 5 188 4 878 6 3% 4 421 17 3% 12 410 19 4%Net income from interest 5,188 4,878 6.3% 4,421 17.3% 12,410 19.4%

Fees and service income 1,811 1,921 ‐5.7% 1,656 9.4% 4,646 20.6%

Fees and service expense 488 474 3.0% 472 3.3% 1,403 4.4%

Net fees and service income 1,324 1,448 ‐8.6% 1,184 11.8% 3,244 27.6%

Total other operating income 568 803 ‐29.3% 627 ‐9.4% 1,818 9.9%

Non interest income 1,891 2,251 ‐16.0% 1,810 4.5% 5,062 21.2%

Total operating income 7,079 7,129 ‐0.7% 6,232 13.6% 17,472 19.9%

Non interest expenses 3 577 3 302 8 3% 3 582 0 2% 10 327 0 7%Non interest expenses 3,577 3,302 8.3% 3,582 ‐0.2% 10,327 ‐0.7%

Bad debt and doubtful accounts and impairment loss of debt securities 1,195 3,566 ‐66.5% 1,195 0.0% 3,369 74.3%

Profit before income tax expense 2,307 262 782.1% 1,454 58.7% 3,775 28.0%

Income tax expense 435 6 6924.1% 327 33.1% 849 4.1%

Net profit 1,873 255 633.2% 1,128 66.1% 2,926 34.9%

Other comprehensive income (20) (57) N/A (42) N/A (67) N/A

Total comprehensive income 1,853 198 834.3% 1,085 70.7% 2,859 34.8%

Net profit for the period attributable to: Equity holders of the parent 1 870 252 643 2% 1 119 67 0% 2 904 35 6%


Net profit for the period attributable to: Equity holders of the parent 1,870 252 643.2% 1,119 67.0% 2,904 35.6%

Selective financial numbers and ratios: Consolidatedfinancial position

Make THE Differencefinancial position

Unit: THB million 3Q13 2Q13 % Δ QoQ 3Q12 % Δ YoY 12M12 YTD

Cash, Interbank and repurchase 129,386 116,672 10.9% 107,237 20.7% 117,083 10.5%Cash, Interbank and repurchase 129,386 116,672 10.9% 107,237 20.7% 117,083 10.5%

Investments 103,309 99,735 3.6% 102,777 0.5% 109,147 ‐5.3%

Loans 475,286 464,229 2.4% 435,570 9.1% 452,720 5.0%

Accrued interest receivables 1,093 1,007 8.5% 1,152 ‐5.1% 955 14.5%

Less Allo ance for do btf l acco nts & Re al ation allo ance 30 142 29 206 3 2% 23 453 28 5% 24 923 20 9%Less Allowance for doubtful accounts & Revaluation allowance 30,142 29,206 3.2% 23,453 28.5% 24,923 20.9%

Loans and AIlowance ‐ net 446,237 436,031 2.3% 413,268 8.0% 428,751 4.1%

Properties foreclosed ‐ net 1,805 1,913 ‐5.6% 2,335 ‐22.7% 2,151 ‐16.0%

Premises and equipment ‐ net 11,508 11,385 1.1% 10,258 12.2% 11,533 ‐0.2%

Goodwill from transferred business and other intangible ‐ net 885 863 2.6% 681 30.1% 781 13.4%

Deferred tax assets 3,903 4,328 ‐9.8% 4,429 ‐11.9% 4,778 ‐18.3%

Other assets 42,351 40,666 4.1% 26,434 60.2% 42,701 ‐0.8%

Total Assets 739,385 711,593 3.9% 669,113 10.5% 716,925 3.1%

Deposits 516,213 478,140 8.0% 476,425 8.4% 496,158 4.0%

Interbank and Money Market Items 68,049 72,371 ‐6.0% 43,490 56.5% 66,053 3.0%

Borrowings 39,672 40,133 ‐1.1% 47,235 ‐16.0% 43,248 ‐8.3%

Deferred tax liabilities 1 026 1 031 ‐0 5% 927 10 7% 1 059 ‐3 1%Deferred tax liabilities 1,026 1,031 0.5% 927 10.7% 1,059 3.1%

Other liabilities 54,500 61,886 ‐11.9% 42,813 27.3% 53,026 2.8%

Total Liabilities 679,461 653,561 4.0% 610,890 11.2% 659,543 3.0%

Shareholders' equity 59,849 57,959 3.3% 58,096 3.0% 57,316 4.4%

N lli i % 6 % 66 %


Non‐controlling interest 75 72 4.2% 126 ‐40.3% 66 14.7%

LIABILITIES & SHAREHOLDERS' EQUITY 739,385 711,593 3.9% 669,113 10.5% 716,925 3.1%

Make THE Difference

Appendix: TMB d t hi hli ht TMB product highlights

[28]

SME: Further improve SME service offering, through behavior credit model we now can offer:

Make THE Differencecredit model we now can offer:

In addition to previous TMB’s successful campaign of credit extension 3 times of collateral value ‐ Credit limit of two‐third times of collateral is guaranteed by Thai Credit Guarantee Corporation Credit limit of two third times of collateral is guaranteed by Thai Credit Guarantee Corporation (renamed from SBCG)*

Through our behavior credit model we can further offer our SME customersThrough our behavior credit model, we can further offer our SME customers,..

1. Funding for emergency need – additional working capital by 15% of OD, approving g g y g gwithin 3 days

2. Funding for business expansion – additional 1 time of existing collaterals as OD or multi‐purpose credit line, or 5 year‐installment loanpurpose credit line, or 5 year installment loan

Source: * TCG , renamed from SBCG (Small Business Credit Guarantee Corporation) , is a state‐owned enterprise established to support domestic SME business [29]

Make THE Difference

T i l B ki P d h id b Transactional Banking Products that provide better value proposition for customers : C i l b ki g t Commercial banking customers Retail banking customers

[30]

SME: “TMB One Bank One Account” – attract more SME transactional accounts

Make THE Differencetransactional accounts

TMB One Bank One Account ‐ features :

Maintain minimum deposit in TMB saving account, for different packages; standard, small payment and large payment in the amount of THB50bn, THB1 0b d THB3 0b ti l THB150bn and THB350bn respectively

Minimumdeposit

Interestrate for

Special interest rate for the balance that exceed

Product benefit:

Type deposit balance required

rate for min

balance

balance that exceedminimum balance

requirement

Benefit

Small payment

THB150K 0.125% • Under the account name of juristic person: 0.375%

• 10 free of charge for any transfer to other

Deposit and withdraw at any branches Cheque clearing with free of service charge for

inter‐branch and inter‐region Free transfer between TMB account

p ypack

j p 3 5• Under the account name of ownership: 2.25% (Effective to 31 July 2012)

ybanks • Buy 1 get 1 free of cheque book

Free transfer between TMB account At the end of 2012, number of total SME CASA

A/C was about 427,000 accounts, increased by 9.7%yoY

Large payment pack

THB350K 0.125% • Under the account name of juristic person: 0.375%• Under the account name of ownership: 2.25% (Effective to 31 July 2012)

• 30 free of charge for any transfer to other banks • Buy 1 get 1 free of cheque book

[31]Source: the company, update as of 24 JAN 13

SME: “TMB One Bank One Day” – enhance SME liquidity by same‐day cheque clearing

Make THE Differencesame day cheque clearing

TMB One Bank One Day – features : Cheque clearing within 1 day, (check‐in before

11 a.m. , receive money after 4 pm.) both of intra‐region and inter‐region

Fee charge: THB10 for intra‐region THB0 1% of Fee charge: THB10 for intra‐region, THB0.1% of cheque amount for inter‐region (min fee charge is THB10)

TMB One Bank One Day & TMB One Bank One Day & TMB One Bank One Account

TMB One Bank One Day

Local clearing cheque THB10 per issue THB10 per issue

BC0.1% of cheque amount

(min THB10)0.1% of cheque amount

(min THB10)

Note: release date 26SEP12 [32]

Email report No fee No fee

Retail: Selected innovative products for customer’s convenience– “No Slip, Internet Banking, Beep&Bill and No Worry Saving”

Make THE DifferenceSlip, Internet Banking, Beep&Bill and No Worry Saving

Product Feature

“TMB no slip” – • TMB is the first bank to enable transaction service (deposit and withdrawal) at teller with one ID cardTMB no slipservice, won FIIA Award

( p )

• This service enhances customer centricity strategy for less complexity and minimizes time consuming on paper work

• With this product, TMB won Financial Insights Innovation Award (FIIA) for customer engagement

“TMB internet banking” – not just online‐banking, but at TMB is new and different

• Open New Account Online by yourself both Savings and Term Deposit including our TMB No fixed account, TMB Up & Up term deposit, TMB Quick Interest term deposit, and TMB Floating Interest term deposit.

• TMB Payment: paying mobile bills FREE and Real‐time by just using 10‐digit mobile phone number. No bill or other reference numbers needed

• Transaction Limit Adjustment Online increase or decrease Third party transfer & Bill Payment limit No form is different • Transaction Limit Adjustment Online, increase or decrease Third‐party transfer & Bill Payment limit. No form is needed.

• TMB No Fee Savings account can be used with TMB Internet Banking to save your monthly fee expense first launch as at 9 May 2011

“TMB Beep & Bill • Payment service through mobile phone and the Bank will send a SMS to alert within 2‐3 days before payment due datePayment” date

• Service for TMB credit card, mortgage, “Cash 2 Go” (personal loan), AIS, DTAC, TRUE Move, TRUE Life Plus, TRUE Internet, Electricity bill, Water bill, International phone bill, TOT*

• Another transactional banking service that TMB offers to client via monthly bill payment. It reflects to TMB philosophy to become the Thai leading transactional banking.

• First launch as at 22 July 2011

“TMB no worry saving account” –bundling between saving account

• Product bundling between saving account and working capital loan which is non‐secured loan.

• Fixed income customer (20–60 years old) at minimum of THB20k per month

• Credit limit not over 0.5 time of basis salary, THB10kup to THB30k withdraw 24 hourssaving account with non‐secured loans

• Only ID card and required documents for new application at TMB branches

[33]

Retail: “TMB no limit debit card” – one card for all ATMs in Thailand and unlimited transactions

Make THE DifferenceThailand and unlimited transactions

TMB no limit debit card ‐ feature

No fee for withdrawal from TMB ATMs and other banks’ ATM Pool nationwide with a maximum of 200k Baht/card/day, cross any provincep

Card access via EDC machine with a maximum of 60k Baht/day

Able to withdraw from any ATM that has a “Plus” sign worldwidePlus sign worldwide

Able to transfer to third party (TMB) and ORFT with a maximum of 200k and 100k Baht/card/day respectively

Bangkok Upcountry

No annual fee

[34]

Retail: “TMB free flow daily account” – extended to create TMB as the best transactional bank

Make THE DifferenceTMB as the best transactional bank

TMB Free Flow Daily Account ‐ features : Saving account with no minimum balance

requirement in the account At least onetime deposit of THB15,000 a month,

unless THB50 will be penalizedunless THB50 will be penalized Free 10 transactions per month Customer can hold either TMB Free Flow Daily

account or TMB No Fee Saving accountg Target for mass customer and above Current saving rate was 0.125% as at 23 Apr 13

[35]

Retail: “TMB no fee savings accounts” – most innovative deposit product

Make THE Differencedeposit product

No fee savings accounts ‐ features

No fee up to 20 e‐transactions with THB20,000 minimum balance, including access to other banks’ ATM

M t i ti l d t il d t hi Most innovative valued retail products achieve transactional banking status

Saving rate as at 24 Jan 13 was 0.125%

Average balance account was much higher than 20K minimum balance but will slightly decline 20K minimum balance, but will slightly decline going forward with more account acquisition

The product still able to attract new customer even after launched for almost 2 years

[36]

Make THE Difference

Introducing better Deposit Products

[37]

Retail: “TMB no fixed account” – the best choice with flexibility and high interest rate

Make THE Differenceflexibility and high interest rate

TMB No fixed account ‐ features

Get high interest rate with no time restriction

Receive 2.75% interest rate as at 23 Apr 13

No minimum amount and deposit period requiredNo minimum amount and deposit period required

Customers can deposit/withdraw whenever they want (2 times per month) at the bank counter

[38]

Retail: “ME by TMB” – Online banking with high rate but reducing operating cost

Make THE Differencereducing operating cost

“ME by TMB” product introduction : Just like normal “no fixed deposit” with high deposit rate (4 times normal

saving rate) No limit for deposit and withdraw transaction per month,

F i f Free 2 times transfer payment No maintenance fee for any available balance 24 hrs transaction via internet and ME call center**

[39]

Make THE Difference

Thank YouThank You.TMB Bank Public Company Limited

3000 Phahonyothin Road

Chatuchak, Bankok 10900

Website: www.tmbbank.com

Email : [email protected], 9 @

Disclaimer Disclaimer This presentation contains some information from other sources, that TMB Bank Public Company Limited does not make any representations regarding the use, validity, accuracy, or reliability of, or the results of the use of information, data but not limited to, all text, and images (“the Content”) on this presentation. Some content may contain forward looking statements, that based on management’s view upon the information currently available to us. These statement are subject to certain risks and uncertainties that could cause the actual results materially differed from what had been previously stated The materials in this presentation shall not and are not intended to constitute or contain an offer to sell or the what had been previously stated. The materials in this presentation shall not, and are not intended to, constitute or contain an offer to sell or the solicitation of an offer to buy, any securities of TMB Bank Public Company Limited.

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