tmb bank plc. · 2017-11-17 · 4q09 results review ... this presentation contains some information...

TMB Bank Plc.

Investor Presentation forCapital Nomura Securities

30 March 2010

[3]

2009 operating performance and achievements Strategy update and 2010 focus Concept to adjust par value to clean up retained-

losses Appendix

4Q09 results review Product updates Others

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 solicitation of an offer to buy, any securities of TMB Bank Public Company Limited.

Source: Consolidated financial statement [4]

2009 net profit at THB2,044 million, almost 400% rise YoY and 4Q09 net profit at THB688 million, +30.9% QOQ with:

Positive loan growth at 1.8% QoQ NPL ratio dropped to 12.7% Strong liquidity with LDR at 85.9% Total CAR at 17.1% Strengthened operating platforms

2009 operating performance: Earnings on recovery with strengthened financial parameters & platforms

ROAE (YoY vs QoQ)

4.4%1.0%

-95.6%

-25.0%

16.3%

5.88%4.55%3.42%3.83%

-34.22%

-100.0%

-80.0%

-60.0%

-40.0%

-20.0%

0.0%

20.0%

40.0%

2005 2006 2007 2008 2009

-50.0%

-40.0%

-30.0%

-20.0%

-10.0%

0.0%

ROAE, YoY (LHS)

ROAE, QoQ (RHS)4Q08

1Q09 2Q09 3Q09 4Q09

Net income and normalized PPOP, YoY

7,800

-12,292

-43,677

424 2,044

8,7906,638 8,238 8,263 4,556

-50,000

-30,000

-10,000

10,000

2005 2006 2007 2008 2009

THB

millio

n

Net income

Normalized PPOP

Net income and normalized PPOP, QoQ

-3,991

436 393 526 688

1,111 1,340 1,254 874 1,088

- 4,000

- 3,000

- 2,000

- 1,000

-

1,000

2,000

3,000

4Q08 1Q09 2Q09 3Q09 4Q09

THB

milli

on

Net income Normalized PPOP

Source: Consolidated financial statements [5]

2009 operating performance: Strengthened financial parameters

Total loan and loan growth

424,286 397,171 366,167 361,723 368,092

-6.4% -7.8%-1.2% 1.8%-0.7%

0

100,000

200,000

300,000

400,000

500,000

4Q08 1Q09 2Q09 3Q09 4Q09

THB

milli

on

-20%

0%

20%

40%

Total loan (LHS)Loan growth, QoQ (RHS)

NPL and gross NPL ratio

54,09559,14459,884

73,95769,777

12.7%14.1%14.4%16.0%14.3%

-

20,000

40,000

60,000

80,000

4Q08 1Q09 2Q09 3Q09 4Q09

THB

milli

on

0.0%

10.0%

20.0%

30.0%

40.0%

NPL (LHS)Gross NPL ratio (RHS)

Loan to deposit ratio

90.3%89.3%90.2%94.2%

91.2%

89.9%85.7%

85.8% 85.6% 85.9%

60.0%

70.0%

80.0%

90.0%

100.0%

110.0%

120.0%

4Q08 1Q09 2Q09 3Q09 4Q09

Loan to deposit ratioLoan to deposit ratio + ST borrowing CAR and BOT min requirement 17.13%

13.90% 14.09%14.98%

16.15%

8.50% 8.50% 8.50% 8.50% 8.50%

2%

6%

10%

14%

18%

4Q08 1Q09 2Q09 3Q09 4Q09

CAR BOT requirement

* in the same time Bank issued THB4 billion local hybrid tier I securities (TMB-IT1), thus no impact on capital [6]

2009 operating performance: Strengthened operating platforms on the back of key executions

Align our workforce and improve our operating efficiency ability to compete in the market

3Q09Mutual-separation ER program

An arbitrage opportunity resulting in extra gains of THB3,175 million and strengthened capital structure. All gains were used to set LLR

2Q09Buy-back of US$152 million HBT1*

More stringent loan classification, implementation of IFRS provisioning and new risk rating system

since 4Q08

Upgrades of risk frameworks

Demonstrate our commitment to improve asset quality2Q09THB20 billion sales of NPL and NPA

Help improve business-segment focus and better serve our clients. Retail business started picking up from 2Q09 and 4Q09 for SME and wholesale

1Q09Branch transformationsSummary TimingKey executions

Source: Milward Brown [7]

Continued improvement of TMB brand

TMB brand awareness and brand consideration continued to improve while brand rejection significantly decreased

The result was contributed by successes in product lunched such as “No Limit Debit card launch (since late Oct)” and “Smartbiz 3X – 15 days launch.

Although improving trend is clear, branding has to be monitored with continuous focus on marketing

Brand awareness

28.0% 25.0%32.0%

40.0% 44.0%36.0%

48.0%54.0%

71.4%

0.0%10.0%20.0%30.0%40.0%50.0%60.0%70.0%80.0%

May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09

Brand awareness Average Top 5, latest month

Brand consideration

31.0% 33.0%42.0%

52.0% 56.0% 60.0%

80.0%

62.0%83.2%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%


Brand considerationAverage Top 5, latest month

Brand rejection

29.0%26.0%

21.0%

13.0% 13.0%18.0%

5.0% 8.0%3.4%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%


Brand rejectionAverage Top 5, latest month

[8]


losses Appendix


[9]

TMB aspirations: 14% deposit share, 14% ROE by 2014

The Leading Thai Bank with World Class Financial Solutions

Market leadership

Competitive scale (14% deposit market share)

Strong funding structure (50% CASA, diversified and transaction-based)

Main bank status (~20% customer market share in wholesale/SME/retail segments)

Sustained profitability

Top quartile shareholders’ return (ROE ~ 14%)

Sustainable revenue mix:≥40% contribution from consumer banking

and ≥35% contribution from non-interest income

Customers

Top tier satisfaction/Engagement level

Regulators

‘Good’ Rating

Employees

Employer of ChoiceFor Financial Service

[10]

Three-phase customer centric transformation

Phase 3:Market Leadership

Phase 2:Differentiation &Quality Growth

Phase 1: Laying the Foundation

2008-2009 2010-2011 2012- onward

• Reorganization• Branch transformation• End-to-end process• HR transformation • Risk management

• Service and operational excellence

• Product expansion• Channel enhancement• Brand enhancement

• New standards for customer service

• New standards for financial management

• TMB group offering

[11]

2010 strategic priorities

Quality growth Expand target customer base with

transaction-based fee generating product cross-sell

Enhance margin via performing loan growth

Robust fee income growth

Quality growth Expand target customer base with

transaction-based fee generating product cross-sell

Enhance margin via performing loan growth

Robust fee income growth

Minimize new NPL formation and continue reducing legacy NPL

Credit underwriting under strengthened risk frameworks to limit new NPL

NPL reduction via restructuring and potential NPL sales if opportunity allows

Minimize new NPL formation and continue reducing legacy NPL

Credit underwriting under strengthened risk frameworks to limit new NPL

NPL reduction via restructuring and potential NPL sales if opportunity allows

Improve operating efficiency Cost management with control on general

expense, but more investment on training and marketing

Enhance revenue efficiency via higher number of customers, transactions and cross-sell

Improve operating efficiency Cost management with control on general

expense, but more investment on training and marketing

Enhance revenue efficiency via higher number of customers, transactions and cross-sell

Deliver customer value proposition Relationship enhancement via quality RM

and improved customer facing time Better product turnaround time Value-adding, innovative product solutions

Deliver customer value proposition Relationship enhancement via quality RM

and improved customer facing time Better product turnaround time Value-adding, innovative product solutions

[12]

2010 operating outlook

Volume growth Loan growth (~10%), on par or

slightly above industry average supporting by better economic outlook and strengthened operating platform with high SME loan mix

Deposit and AUM growth above industry average

Volume growth Loan growth (~10%), on par or

slightly above industry average supporting by better economic outlook and strengthened operating platform with high SME loan mix

Deposit and AUM growth above industry average

Margin and fee income Slight margin improvement as a result of

balanced trade-off between quality loan growth and strong liquidity

Strong contribution from fee income (~20% growth YoY)

Margin and fee income Slight margin improvement as a result of

balanced trade-off between quality loan growth and strong liquidity

Strong contribution from fee income (~20% growth YoY)

Asset quality NPL ratio aspired below 10% via

performing loan growth, NPL restructuring and NPL sales

Provisioning in line with IFRS. NPL will be fully provided as per BOT’s policy. General provisions are set according to risk ratings of performing loans.

Asset quality NPL ratio aspired below 10% via

performing loan growth, NPL restructuring and NPL sales

Provisioning in line with IFRS. NPL will be fully provided as per BOT’s policy. General provisions are set according to risk ratings of performing loans.

Operating efficiency and distribution

Cost to income to improve YoY, but to remain high due to continued investment in key areas (product, marketing, training)

Focus on relocation to serve target customer. Selective new branch opening and ATM/ADM expansion

Operating efficiency and distribution

Cost to income to improve YoY, but to remain high due to continued investment in key areas (product, marketing, training)

Focus on relocation to serve target customer. Selective new branch opening and ATM/ADM expansion

[13]

2010 strategic priorities: Wholesale banking value propositions

TMB initiativesCustomer value propositions

Assign dedicated product specialist (in addition to dedicated RM and service managers) to key customers Trade finance specialist Cash management specialist FX & Capital markets product specialist

TMB assigns dedicated product specialist who can provide customized solution with relationship-base service and pricing

Continue to improve product turnaround time Assign dedicated service managers to support after sale

service activities Upgrade and expand service points for corporate customers to

cover key locations nationwide Build electronic platform for credit, trade, and transaction

banking products

Provide predictable service turnaround time with efficient process and convenient access

Improve customer facing time and RM coverage Build training roadmap to improve and to equip RM with

necessary capability and knowledge

Long-term partner who can provide value added advice & solution both to the customer themselves and to their supply chain members

[14]

2010 strategic priorities: SME banking value propositions


Develop and implement new products Clean OD (with 50% SBCG guarantee) Supply chain solution Factoring and credit insurance SME No Fee SME OD Card

Proper credit facilities to support business with better term and condition

Improve E2E process Product program: 10 working days Other credits: 20 working days Disbursement: same day with no paper work

Shorter service turnaround time and streamline process

Increase RM customer facing time Improve approval and disbursement process

Better accessibility to RM and frequent customer visits

[15]

2010 strategic priorities: Retail banking value propositions

Complaint Resolution Centre Streamline in key processes Staff training programme Improvement in Customer Engagement and Mystery Shopping

Results

Service excellence


Prescoring of unsecured lending and risk-based pricing AUM growth from mutual fund with focus on non-money market

Competitive investment and lending products

Improvement of payment/deposit processes- One screen account opening - SMS bill payment

Loan Origination System – secured and unsecured – phased implementation

Efficient key processes

Optimize key channels- Relocation of branches and ATMs, new installation of ADMs

Call center upgrade with more outbound capacity

Channels accessibility and convenience

[16]

HR transformation: From customer centric organization to performance-based organization

Customer centric organization

New customer centric structure• Structure for all to see customers• High level roles re-defined to reflect

strategy and customer centricity

Align performance management to business• Service and sale score point for branch staff• KPIs defined for all staff• Team-based KPIs, short term and medium

term KPIs implemented

Basic variable performance bonus• RoE linked to bonus pool• Basic variable performance bonus

implemented with ‘front’ exposed to higher variation

Performance-based organization

Functional title as foundation• Functional roles reflect responsibilities

allowing people to work to fullest capabilities • Role benchmarking & grading support pay

that reflect market and competency• No organizational titles to flatten organization

Strengthened performance and competency assessment

• Clear requirements linked to business outcome and competencies for future

• Institute emphasis on quality development

New total compensation policy• Total compensation scheme • Pay of senior staff oriented towards variable

components• Introduction of more variable performance

incentives

Structure

Perfor-mance

Com-pensation

[17]


losses Appendix


[18]

Directional impact to 2009 shareholders’ equity accounts after clean up

Unchanged 45,906 Tier I capital (THB mn)

Unchanged 63,904 Capital (THB mn)

Reduced10.00 Par value (THB/Share)

Unchanged43,529Total shares (million)

Concept to adjust par value to clean up retained losses

Unchanged5,217Other equity items

Appropriated

Cleaned up2,100Statutory reserve

Cleaned up8,717Other reserve

Cleaned up(101,742)Unappropriated

Unchanged46,491Shareholders' equity

Retained earnings

Cleaned up(303,088)Share value offered below par

Reduced435,287Issued and paid-up share capital

Conceptually, adjustment will be made to shareholders’ equity accounts by offsetting par value with share value offered below par and retained losses.

As a scenario, table on the right shows directional impact to 2009 shareholders’ equity accounts after clean-up

The clean-up will give flexibility to pay dividend, according to relevant laws

No impact on regulatory capital, BVPS, number of shares as well as shareholders’ effective controls

[19]

The background of MOF’s preferred shares holding: Restructuring plan 14 Aug 1998

The MOF assistance to TMB Bank

Invested in THB19.9bn of preferred shares

Purchased THB19.9bn of MOF debentures1

Tier I Capital

Invested in THB2.6bn of sub-ordinated debentures

Purchased THB 2.6bn of MOF debentures

Tier II Capital

Tier I Capital: The MOF purchased preferred shares of TMB and, in return, the bank received the MOF’streasury bonds. The bonds have tenor of 10 years and are non-callable.Note 1: Upon conversion of preferred shares to common shares, THB19.9 billion of MOF bonds will also be redeemed.

Tier II Capital: The MOF purchased subordinated debentures proportionately to losses over reserve due to debt restructuring and/or net increase in loans. In return, TMB received the MOF’streasury bonds. The bonds have tenor of 10 years and are non-callable.

[20]

2009 operating performance and achievements Strategy update and 2010 focus Concept to adjust par value to clean up retained

losses Appendix


Source: the Bank of Thailand, NESDB, Bloomberg, company [21]

Economic outlook: Continued recovery in GDP with QoQ at 5.8%

4Q09 GDP grew another 5.8% QoQ(vs. YoY growth at minus 2.3%), indicating Thai economy on the continued recovery track Major drivers being export,

private consumption/investment and improved tourist arrivals

BOT’s policy rate remains accommodative at 1.25% However there is upward

pressure on policy rate expectedly from mid-2010, given headline CPI recently picking up strongly

One-day RP vs CPI, YoY

2.00%1.50%

1.25%

-4.4%

0.4%

1.9%

3.5%

-1.0%-1.0%

-4.0%-3.3%

-0.9%-0.4% -0.1%

-5%

-4%

-3%

-2%

-1%

0%

1%

2%

3%

4%

Jan Feb Apr May Jun Jul Aug Sep Oct Nov Dec

Policy Rate CPI, YoY

GDP growth, YoY vs QoQ

-2.8%-4.3%

-6.9%-4.8%

-2.3%-5.9%

1.3%

5.8%

2.2%

-1.8%

-10%

-8%

-5%

-3%

0%

3%

5%

8%

4Q08 1Q09 2Q09 3Q09 4Q09

GDP growth, YoYGDP growth, QoQ

Source: Consolidated financial statement [22]

4Q09 net profit at THB688 million, 30.9% growth QOQ. FY09 net profit at THB2,044 million, almost 400% rise YoY Positive loan growth at 1.8% QoQ NPL ratio dropped to 12.7% Strong liquidity with LDR at 85.9% Total CAR at 17.1% Strengthened operating platforms

4Q09 result review: Earnings on the recovery track with strengthened financial parameters

Net income and normalized PPOP, YoY

7,800

-12,292

-43,677

424 2,044

8,7906,638 8,238 8,263 4,556

-50,000

-30,000

-10,000

10,000

2005 2006 2007 2008 2009

THB

milli

on

Net income

Normalized PPOP

ROAE (YoY vs QoQ)

4.4%1.0%

-95.6%

-25.0%

16.3%

5.88%4.55%3.42%3.83%

-34.22%

-100.0%

-80.0%

-60.0%

-40.0%

-20.0%

0.0%

20.0%

40.0%

2005 2006 2007 2008 2009

-50.0%

-40.0%

-30.0%

-20.0%

-10.0%

0.0%

ROAE, YoY (LHS)

ROAE, QoQ (RHS)4Q08

1Q09 2Q09 3Q09 4Q09

Net income and normalized PPOP, QoQ

-3,991

436 393 526 688

1,111 1,340 1,254 874 1,088

-4,000

-3,000

-2,000

-1,000

-

1,000

2,000

3,000

4Q08 1Q09 2Q09 3Q09 4Q09

THB

milli

on

Net income Normalized PPOP

Source: consolidated financial statements [23]

4Q09 result review: NII started to stabilize with slightly improved NIM

Net interest income (NII) started to stabilize with only 0.6% QoQdecline Lower NII mainly due to impact

from lower earnings assets NIM continue to improve slightly

QoQ to 2.30% (from 2.27%) mainly due to yield improvement (i.e. contribution from positive loan growth)

Funding cost was largely unchanged despite one-time interest expense adjustment of “Up & Up” fixed deposit

Net interest income and NIM

3,0593,0773,1133,2293,489

2.30%2.27%2.17%2.17%2.36%

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

4Q08 1Q09 2Q09 3Q09 4Q090.0%

1.0%

2.0%

3.0%

4.0%

5.0%NII (LHS) NIM (RHS)

Funding cost

3.50%

4.89%

4.10%3.55% 3.47%

2.87%

2.21%1.58% 1.35% 1.36%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

4Q08 1Q09 2Q09 3Q09 4Q09

Average yield Cost of fund


Fee income continued to grow 8.8% QoQ due to continue recovery of economic environment and higher contribution from positive loan growth and retail products launched in 4Q09

Fee income structure: 41.5% credit card/merchant and ATM, 20.9% bancassurance and mutual fund, 17.7% credit-related, 15.3% cash management and payment

4Q09 result review: Continued improvement in fee income

Fee income and growth

1,1531,034 1,050 1,146

1,248

-10.4%

1.6%9.1% 8.8%

-5.6%

0

500

1,000

1,500

4Q08 1Q09 2Q09 3Q09 4Q09

THB

milli

on

-15%

-5%

5%

15%

25%

35%

Fee income (LHS)Fee income growth, QoQ (RHS)

Fee income break down

Credit-related17.7%

Cash management

& Payment15.3%

Mutual fund & Bancassurance

20.8%

Others4.7%

Credit card/ merchant &

ATM41.5%


Cost to income declined QoQ to 83.9% due mainly to lower personnel expenses from ER program and lower asset impairments

Despite cost benefit from ER program, operating cost to income reduced only to 78.4% mainly due to increase in marketing expenses booked in 4Q09

4Q09 result review: Cost to income improved slightly QoQ

Cost to income ratio and operating cost

102.6%115.8%

50.3%

91.5% 83.9%

77.2% 71.3%

74.4%

80.3% 78.4%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

4Q08 1Q09 2Q09 3Q09 4Q09

Cost to income ratio Operating cost to income

Operating cost break down, 4Q09

Premises and equipment

expenses , 17.4%

Directors' remuneration ,

0.2%

Contributions to FIDF,

Other expenses, 19.5%

Fees and Taxes and duties,

3.7%

Personnel expenses, 40.5%

Source: consolidated financial statements, * loan breakdown is based on bank only [26]

4Q09 loan growth turned positive at 1.8% QoQ (THB6.6 billion) due to better economic environment and strengthened operating platform

4Q09 Corporate/SME/Retail loan breakdown was stable at 50:31:19

4Q09 result review: Positive loan growth, first time since 3Q06

Total loan and loan growth

424,286 397,171 366,167 361,723 368,092

-6.4% -7.8%-1.2% 1.8%-0.7%

0

100,000

200,000

300,000

400,000

500,000

4Q08 1Q09 2Q09 3Q09 4Q09

THB

milli

on

-20%

0%

20%

40%

Total loan (LHS)Loan growth, QoQ (RHS)

Loan breakdown by segment (3Q09)

SME32.0%

Retail18.1%

Corporate49.9%

Loan breakdown by segment (4Q09)

Retail, 18.4% Corp, 50.2%

SME, 31.4%

Source: consolidated financial statements, % excess reserve and specific NPL coverage based on bank only [27]

4Q09 result review: NPL ratio lowered to 12.7% due to NPL resolution and write-off

NPL and gross NPL ratio

54,09559,14459,884

73,95769,777

12.7%14.1%14.4%16.0%14.3%

-

20,000

40,000

60,000

80,000

4Q08 1Q09 2Q09 3Q09 4Q09

THB

milli

on

0.0%

10.0%

20.0%

30.0%

40.0%

NPL (LHS)Gross NPL ratio (RHS)

NPL coverage

65.8%60.1% 59.9% 58.0% 57.7%

0.0%

20.0%

40.0%

60.0%

80.0%

4Q08 1Q09 2Q09 3Q09 4Q09

Specific NPL coverage

55.4% 54.0%48.0% 46.1% 43.8%

60.1% 58.8% 58.7% 60.1%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

4Q08 1Q09 2Q09 3Q09 4Q09

TMB specific NPL coverage -Bank only sector average

% Excess reserves

2.4%2.4%2.4%

1.5%

2.2%

1.0%1.0%0.8%0.8%0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

4Q08 1Q09 2Q09 3Q09 4Q09

TMB % excess reserves to performing loan-Bank onlysector average

Source: consolidated financial statements, deposit mix based on bank-only [28]

4Q09 deposits rose 0.6% QoQmainly due to the new fixed deposit product (up & up)

Saving & current accounts (CASA) mix remains strong at 49.5% in 4Q09 (from 54.2% in 3Q09 and 50.3% in 2Q09)

CASA ratio at 50% might be subject to downward pressure due to expected higher interest rate environment in 2010

4Q09 result review: Slight increase in deposits with strong CASA mix

Deposit and deposit growth

407,776405,277401,385440,207450,297

3.9% 0.6%1.0%-8.8%

-2.2%

0

100,000

200,000

300,000

400,000

500,000

4Q08 1Q09 2Q09 3Q09 4Q09

THB

milli

on

-30%

-20%

-10%

0%

10%

20%

30%

40%

Total deposit (LHS)

Deposit growth, QoQ (RHS)

Deposit breakdown

44.5% 43.9% 39.0%

61.4% 49.7% 47.6% 50.5%

4.9% 6.2% 5.8% 8.5% 10.5%

33.8% 40.4%

53.4%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

4Q08 1Q09 2Q09 3Q09 4Q09

Current Savings Fixed

Consolidated financial statements, * exc. investment in associates, LDR+ST borrowing based on internal measurement [29]

Continued strong liquidity with cash, interbank and investment* representing 30.5% of total earning assets

Investment portfolio mostly consists of state-enterprise and government bonds and relatively short duration.

Loan to deposit ratio included ST borrowing higher slightly QoQ at 85.9%. Excluding ST borrowing, LDR also rose slightly QoQ

4Q09 result review: Continued strong liquidity with slightly higher LDR


90.3%89.3%90.2%94.2%

91.2%

89.9%85.7%

85.8% 85.6% 85.9%

60.0%

70.0%

80.0%

90.0%

100.0%

110.0%

120.0%

4Q08 1Q09 2Q09 3Q09 4Q09

Loan to deposit ratioLoan to deposit ratio + ST borrowing

Earning asset allocation

10.9% 11.8% 12.5%13.7% 20.2% 17.9% 15.1%

71.6% 66.4% 66.6% 67.8% 69.1%

2.8%2.1%1.9%1.4%1.9%12.2%12.3%

19.6%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

4Q08 1Q09 2Q09 3Q09 4Q09

Cash Interbank Investment Loans

Source: bank only, under Basel II calculation [30]

Tier I and total capital adequacy ratio (CAR) were 12.3% and 17.1% (Basel II calculation), well above minimum requirement by BOT

4Q09 CAR improved QoQ mainly due to additional Tier II capital issued in 4Q09 and slightly lower rish-weighted assets In 4Q09, Bank replaced THB3.1

billion sub-debt issued in 2005 with THB5.3 billion 10-year sub-debt, resulting in net new issuance of THB2.2 billion

4Q09 result review: Solid capital base

CAR and BOT min requirement 17.13%

13.90% 14.09%14.98%

16.15%

8.50% 8.50% 8.50% 8.50% 8.50%

2%

6%

10%

14%

18%

4Q08 1Q09 2Q09 3Q09 4Q09

CAR BOT requirement

Tier I capital and BOT min requirement11.94%

10.98%10.56%10.10%12.31%

4.25%4.25%4.25%4.25%4.25%

0%

2%

4%

6%

8%

10%

12%

14%

4Q08 1Q09 2Q09 3Q09 4Q09

Tier I Capital BOT min requirement

[31]


losses Appendix


[32]

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

No fee up to 20 e-transactionswith THB20,000 minimum balance, including access to other banks’ ATM

Most innovative valued retail products to raise CASA and achieve transactional banking status

No fee savings accounts - features

Achieved almost 50% of the 2009 year-end target in terms of account acquisition for 1-month product launch

New accounts (including reactivated accounts) represent more than 50% of total account acquisition

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

No fee savings accounts – performance update

[33]

Retail: “TMB no limit debit card” – One card for all ATMs in Thailand and for free

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

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

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

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

500 Baht for upfront fee No annual fee First launch on 4 November 2009

TMB no limit debit card

Bangkok Upcountry

Note: SBCG = Small Business Credit Guarantee Corporation, a state-owned enterprise [34]

SME: Structured products with focus on supply chain, now extended to general customers

Attractive credit facilities (up to 3x of collateral) bundled with SBCG*’s credit guarantee program

Structured drawdown (directly paid to business counter-party via fund transfer only)

3x structured O/D accounts for working capital

[35]

SME: “TMB OD NO Asset” – OD without collaterals required

NO collaterals required for OD credit facility amounted from THB100k-10 million.

Interest rate range from MLR+4.5% to MLR+8.5% depend on size of credit line.

Guarantee fee from SBCG of 1.75% a.n.

Launched on 1 Feb 2010, reached 80% of the first month target in 3 weeks in terms of referred cases.

TMB SME OD NO Asset

[36]

Retail: “TMB Up&Up term deposit” – Escalating-rate fixed deposit with flexible withdrawal condition

24-month term deposit: progressive rate for every 6 months up to 4.25% and quarterly interest payment

Able to withdraw full deposit balance before maturity date and receive interest according to the actual time of deposit

TMB Up&Up term deposit

Other term depositHold to maturity Before maturity Before maturity

1-6 months 0.75% 0.75% 0.50%7-12 months 1.25% 1.25% 0.50%13-18 months 1.75% 1.75% 0.50%19-24 months 4.25% 4.25% 0.50%

Interest rate term TMB "Up&Up" term deposit

Note: MLR as of Sep 09 at 6.25% and MOR at 6.50%, Premium home = property by approved developers [37]

Retail: “TMB flexi home loan” – First to launch mortgage bundled with equity home loan

First bank to launch mortgage product bundled with equity home loan

Provide flexibility for home buyers and yet being secured by home

Credit line max at THB20 million with 80:20 or 90:10 line mix between mortgage loan and equity home loan

TMB flexible home loan - features

Term loan: 1st to 8th month 9th - 12th month 2nd -3rd year 4th year and onward

Housing loan 0.88% MLR – 1.50% MLR – 1.50% MLR – 1.25%

Premium home loan and refinance 0.88% MLR – 1.75% MLR – 1.75% MLR – 1.50%

[38]


losses Appendix


Note:* ING holds another 4.9% via Thai NVDR [39]

Shareholding structure and management

Management teamManagement team

Mr. Boontuck Wungcharoen(Chief Executive Officer)

Mr. Simon Andrews(Chief Operating Officer)

Mr. Piti Tantakasem(Chief Wholesale Banking Officer)

Mr. Bart Hellemans(Chief Risk Officer)

Mr. Sayam Prasitsirigul(Chief SME Banking Officer)

Mr. Thanomsak Chotikapraka(Chief Financial Officer)

Mr. Michal Szczurek(Chief Retail Banking Officer)

ING: MD, Head of credit capitalCRO

Standard Chartered: CFOCFO

ING Direct Australia: Sales/operation/ITCOO

ING: Mgmt Board of ING Nederlanden-PolandRetail

KBANK: Head of supply chain financing & cash mgmt

SME

KBANK: Head of large corporateWholesale

KBANK: Head of corporate and capital market, SMECEO

Latest credentialsTop Mgmt

Shareholder structure as of March 2009

Military group, 2.2%

DBS Bank, 6.8%

Thai NVDR *, 7.3%

Ministry of Finance, 26.1%

Others, 28.8%

ING , 25.2%

JP Morgan, 3.6%

Source: company, SEC, * as of Sep 09 [40]

Operating platform and holding structure

TMB BankTMB Bank

BankingBanking Investment Investment BankingBanking

ING Life (life) Thai Orix Leasing (46%)

TMB Asset Management (75%) and ING Funds (strategic partner) having 10.7% of total asset market*

6 % loans market share

6% deposit market share

483 branches nationwide and 2,257 ATMs

Asset Asset ManagementManagement LeasingLeasing InsuranceInsurance

In house


Balance sheet

Unit: THB million 4Q09 3Q09 % Δ QoQ 4Q08 % Δ YoY FY2009 FY2008 % Δ YOY

Cash, Interbank and repurchase 81,749 74,174 10.2% 83,904 -2.6% 81,749 83,904 -2.6%Investments 82,705 97,810 -15.4% 83,983 -1.5% 82,705 83,983 -1.5%Loans and Accrued Interest Receivable 369,063 364,344 1.3% 427,582 -13.7% 369,063 427,582 -13.7%Less Allowance for doubtful accounts (31,208) (34,308) N/A (45,916) N/A (31,208) (45,916) N/ALoans and AIlowance - net 337,855 330,036 2.4% 381,666 -11.5% 337,855 381,666 -11.5%Properties foreclosed - net 11,132 12,949 -14.0% 19,260 -42.2% 11,132 19,260 -42.2%Premises and equipment - net 13,220 13,221 0.0% 14,388 -8.1% 13,220 14,388 -8.1%Goodwill from transferred business - net 60 60 0.0% 60 0.0% 60 60 0.0%Other assets 16,933 22,286 -24.0% 18,724 -9.6% 16,933 18,724 -9.6%Total Assets 543,653 550,534 -1.2% 601,985 -9.7% 543,653 601,985 -9.7%Deposits 407,776 405,277 0.6% 450,297 -9.4% 407,776 450,297 -9.4%Interbank and Money Market Items 10,738 15,773 -31.9% 9,299 15.5% 10,738 9,299 15.5%Borrowings 50,636 53,334 -5.1% 66,317 -23.6% 50,636 66,317 -23.6%Other liabilities 27,236 29,539 -7.8% 31,026 -12.2% 27,236 31,026 -12.2%Total Liabilities 496,385 503,924 -1.5% 556,939 -10.9% 496,385 556,939 -10.9%Shareholders' equity 47,194 46,539 1.4% 44,955 5.0% 47,194 44,955 5.0%Minority Interests 75 71 4.3% 92 -18.5% 75 92 -18.5%LIABILITIES & SHAREHOLDERS' EQUITY 543,653 550,534 -1.2% 601,985 -9.7% 543,653 601,985 -9.7%


Profit and Losses

(Unit:THB million) 4Q09 3Q09 % Δ QoQ 4Q08 % Δ YoY FY2009 FY2008 % Δ YOYInterest and dividend income 4,661 4,696 -0.7% 7,221 -35.5% 20,553 29,152 -29.5%Interest expenses 1,601 1,619 -1.1% 3,732 -57.1% 8,074 13,359 -39.6%Net income from interest and dividend (NII) 3,059 3,077 -0.6% 3,489 -12.3% 12,479 15,792 -21.0%Bad debts and doubtful accounts (reversal) 145 (139) N/A 3,860 -96.2% 2,628 5,076 -48.2%NII after provision 2,915 3,216 -9.4% (371) N/A 9,851 10,716 -8.1%Non-interest income 2,162 1,715 26.1% 1,325 63.2% 10,069 7,014 43.6%Non-interest expenses 4,379 4,387 -0.2% 4,939 -11.3% 17,822 17,114 4.1%Net income (loss) before income tax 698 544 28.2% (3,984) N/A 2,098 616 240.5%

Income tax 6 11 -43.1% 5 29.9% 35 87 -60.1%Minority interests in net profit 3 7 -54.7% 1 149.6% 20 106 -81.6%

Net income 688 526 30.8% (3,991) N/A 2,044 424 382.5%


Non interest income and expensesN o n in te r e s t in c o m e s( U n i t :T H B m illi o n ) 4 Q 0 9 3 Q 0 9 % Δ Q o Q 4 Q 0 8 % Δ Y o Y F Y 2 0 0 9 F Y 2 0 0 8 % Δ Y O YG a in / lo ss o n in ve s tm e n t s 1 8 7 9 - 7 7 .4 % ( 5 2 3 ) N /A 1 4 ( 3 5 3 ) N /AS h a re o f p ro fi t ( l o s s ) fr o m i n v e s tm e n ts a cc o u n te d fo r u s i n g th e e q u i ty m e t h o d 1 1 9 7 8 5 2 .1 % 2 6 7 - 5 5 .4 % 2 6 7 4 6 5 -4 2 . 7 %F e e s a n d se r v ic e in co m e 1 ,2 4 8 1 ,1 4 6 8 .8 % 1 ,1 5 3 8 .2 % 4 , 4 7 8 5 ,0 1 1 -1 0 . 6 % A c ce p ta n c e s, a v a ls a n d g u a r a n te e s 1 1 2 1 1 2 0 .7 % 1 3 1 - 1 4 .5 % 4 2 5 5 2 4 -1 8 . 9 % O th e r s 1 ,1 3 6 1 ,0 3 5 9 .7 % 1 ,0 2 2 1 1 .2 % 4 , 0 5 4 4 ,4 8 7 - 9 . 7 %G a in o n e x c h a n g e 2 5 7 2 0 1 2 7 .4 % 8 8 1 9 0 .8 % 1 , 0 1 2 9 5 1 6 . 3 %G a in o n s a l e o f a ss e ts 1 5 0 1 2 1 2 4 .1 % 3 9 4 - 6 2 .0 % 3 3 2 6 2 6 -4 7 . 0 %O th e r i n c o m e 3 7 1 8 9 3 1 4 .9 % ( 5 4 ) N /A 3 , 9 6 7 3 1 3 1 1 6 5 . 7 %T o t a l n o n -i n t e r e s t in c o m e 2 ,1 6 2 1 ,7 1 5 2 6 .1 % 1 ,3 2 5 6 3 .2 % 1 0 , 0 6 9 7 ,0 1 4 4 3 .6 %N o n in te r e s t e x p e n s e s( U n i t :T H B m illi o n ) 4 Q 0 9 3 Q 0 9 % Δ Q o Q 4 Q 0 8 % Δ Y o Y F Y 2 0 0 9 F Y 2 0 0 8 % Δ Y O YP e r s o n n e l e x p e n s e s 1 ,6 8 8 1 ,9 4 7 - 1 3 .3 % 2 ,2 5 9 - 2 5 .3 % 6 , 5 4 3 6 ,0 4 1 8 . 3 %P r e m is e s a n d e q u i p m e n t e x p e n s e s 7 2 3 6 7 1 7 .7 % 6 5 8 9 .8 % 2 , 6 5 2 2 ,5 8 5 2 . 6 %T a xe s a n d d u t ie s 1 5 2 1 5 8 - 3 .5 % 2 1 1 - 2 7 .9 % 6 7 2 8 8 4 -2 4 . 0 %F e e s a n d se r v ic e e x p e n s e s 3 4 9 3 1 0 1 2 .8 % 3 7 3 - 6 .5 % 1 , 3 3 3 1 ,2 4 9 6 . 7 %D i r e c to r s ’ r e m u n e ra t i o n 8 5 4 2 .9 % 1 0 - 2 2 .1 % 2 7 3 1 -1 2 . 2 %L o s s o n im p a i rm e n t o f p r o p e r t i e s fo r e c l o s e d a n d o th e r a s s e ts 3 0 3 7 1 7 - 5 7 .8 % 4 1 7 - 2 7 .4 % 2 , 7 3 7 1 ,1 2 3 1 4 3 . 6 %C o n tr i b u t i o n s to t h e F ID F 4 3 2 4 3 2 0 .0 % 4 6 0 - 6 .0 % 1 , 7 4 5 1 ,8 6 3 - 6 . 3 %L o s s o n p r o v i s io n s o f o b l ig a t i o n s fr o m tr a n s fe r re d n o n - p e r fo r m i n g a s s e t s 9 0 N / A 2 2 8 7 .0 % 3 0 9 ( 4 9 ) N /AL o s s o n p r o v i s io n s o f o b l ig a t i o n s - o th e r s ( 9 7 ) (3 4 1 ) N / A ( 9 9 ) N /A (3 8 0 ) 1 ,1 5 0 - 1 3 3 . 0 %G o o d w il l a m o r ti z a ti o n 0 0 N / A 0 N /A 0 0 N /AL o s s o n im p a i rm e n t o f g o o d w i l l 0 0 N / A 0 N /A 0 0 N /AL o s s o n s a l e s o f a s s e t s 0 0 N / A 0 N /A 0 0 N /AO th e r e x p e n s e 8 1 2 4 8 8 6 6 .7 % 6 4 7 2 5 .6 % 2 , 1 8 3 2 ,2 3 6 - 2 . 4 %T o t a l n o n -i n t e r e s t e x p e n s e 4 ,3 7 9 4 ,3 8 7 - 0 .2 % 4 ,9 3 9 - 1 1 .3 % 1 7 , 8 2 2 1 7 ,1 1 4 4 .1 %


Selected key financial ratios

Key financial ratio 4Q09 3Q09 2Q09 1Q09 4Q08 FY09 FY08Profitability & ROAE 5.9% 4.5% 3.4% 3.8% -34.2% 4.4% 1.0%Margin ROAA 0.5% 0.4% 0.3% 0.3% -2.7% 0.4% 0.1%

Cost to Income (proforma) 83.9% 91.5% 50.3% 115.8% 102.6% 79.0% 75.0%Yield on avg earning assets 3.5% 3.5% 3.5% 4.1% 4.9% 3.7% 4.8%Funding costs 1.4% 1.4% 1.6% 2.2% 2.9% 1.6% 2.5%NIM, avg earnings assets 2.3% 2.3% 2.2% 2.2% 2.4% 2.2% 2.6%

Liquidity Loan to deposit 90.3% 89.3% 91.2% 90.2% 94.2% 90.3% 94.2%Loan to depsosit + ST borrowing 85.9% 85.6% 85.8% 85.7% 89.9% 85.9% 89.9%Cash & interbank to earning assets 15.4% 13.9% 12.8% 13.6% 14.2% 15.4% 14.2%

Fee income Fee income/Total income 23.9% 23.9% 12.6% 24.6% 24.0% 19.9% 22.0%Fee income, yoy growth 8.2% -6.2% -18.4% -23.4% -21.3% -10.6% -7.5%

Loan & deposit Loan, yoy Growth -13.2% -15.4% -16.0% -11.4% -8.7% -13.2% -8.7%growth Loan, qoq Growth 1.8% -1.2% -7.8% -6.4% -0.7%

Deposit, yoy Growth -9.4% -6.5% -7.7% -8.4% -3.3% -9.4% -3.3%Deposit, qoq Growth 0.6% 1.0% -8.8% -2.2% 3.9%

Capital Tier I 12.3% 11.9% 11.0% 10.6% 10.1% 12.3% 10.1%(Bank only) Total CAR 17.1% 16.2% 15.0% 14.1% 13.9% 17.1% 13.9%Asset quality Reported NPL (THB million) 54,095 59,144 59,884 73,957 69,777 54,095 69,777

Gross NPL 12.7% 14.1% 14.4% 16.0% 14.3% 12.7% 14.3%NPL coverage 57.7% 58.0% 59.9% 60.1% 65.8% 57.7% 65.8%


Asset growth and leverage

Asset and asset growth

601,985 601,379 568,745 550,534 543,653

-0.1%-5.4%

-3.2% -1.2%1.5%

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

4Q08 1Q09 2Q09 3Q09 4Q09

THB

milli

on

-30%

-20%

-10%

0%

10%

20%

30%

40%

Total asset (LHS) Asset growth, QoQ (RHS) Equity and equity growth

44,955 46,072 46,002 46,539 47,194

2.5% -0.2% 1.2% 1.4%-7.0%

0

10,000

20,000

30,000

40,000

50,000

4Q08 1Q09 2Q09 3Q09 4Q09

THB

milli

on

-10%

0%

10%

20%

30%

40%

Total equity (LHS)Equity growth, QoQ (RHS)

ROAE & ROAA

5.9%4.5%3.4%3.8%

-34.2%

0.5%0.4%0.3%0.3%-2.7%

-35.0%

-25.0%

-15.0%

-5.0%

5.0%

15.0%

4Q08 1Q09 2Q09 3Q09 4Q09

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

ROE (LHS) ROA (RHS) Liability to equity ratio

12.80 12.05 11.3610.83 10.52

1.1%-5.9% -5.7% -4.7% -2.9%

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

4Q08 1Q09 2Q09 3Q09 4Q09

(x)

-50%

-30%

-10%

10%

30%

50%

Liability to equity ratio (LHS)Growth rate (RHS)

Source: consolidated financial statements, deposit mix based on bank-only [46]

Key balance sheet item breakdown

Interest-bearing liabilites

85.8% 85.5% 82.7% 85.6% 87.0%

1.6% 2.1% 4.5% 3.1% 2.1%6.7% 6.9% 7.7% 6.1% 5.4%6.0% 5.5% 5.1% 5.2% 5.5%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

4Q08 1Q09 2Q09 3Q09 4Q09

LT borrowingST borrowingInterbank and money marketDeposit

Deposit breakdown

44.5% 43.9% 39.0%

61.4%49.7% 47.6% 50.5%

4.9% 6.2% 5.8% 8.5% 10.5%

33.8% 40.4%

53.4%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

4Q08 1Q09 2Q09 3Q09 4Q09

Current Savings FixedLoan breakdown by segment*

34.1% 32.0% 31.4%

15.9% 17.5% 18.1% 18.4%

50.2%49.9%48.4%45.6%45.1%

37.9%39.0%

16.4%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

4Q08 1Q09 2Q09 3Q09 4Q09

Corporate SME Retail

Earning asset allocation

10.9% 11.8% 12.5%13.7% 20.2% 17.9% 15.1%

71.6% 66.4% 66.6% 67.8% 69.1%

2.8%2.1%1.9%1.4%1.9%12.2%12.3%

19.6%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

4Q08 1Q09 2Q09 3Q09 4Q09

Cash Interbank Investment Loans


Workforce and distribution platform

Total number of employee

9,039 9,1199,319 9,310

8,236

6,500

7,500

8,500

9,500

4Q08 1Q09 2Q09 3Q09 4Q09

Domestic branches

470 470 477 483 483

300

350

400

450

500

4Q08 1Q09 2Q09 3Q09 4Q09

Branch distribution as of 4Q09

Northeastern, 50

Northern provinces, 67

Eastern, 51

Southern & Western, 59

Central, 36

BMA, 220

Number of ATM2,2572,1522,1802,0141,946

0

500

1,000

1,500

2,000

2,500

4Q08 1Q09 2Q09 3Q09 4Q09

Note: updated as of 31 Dec 09 [48]

Credit ratings

Standard & PoorsLong Term Debt BB+Hybrid Tier I B+Short Term Debt/Deposits BBank Fundamental Strength Rating D+Outlook Stable

Moody's Investor ServicesLong Term Deposits Baa3Hybrid Tier I B1

Short Term Debt/Deposits Prime-3Outlook StableBank Fundamental Strength Rating-Outlook D-/Stable

Local RatingTRIS-Long Term Debt A+TRIS - Sub Debt ATRIS - Hybrid Tier I BBB+Fitch - Long Term/Short Term A+/F1 (tha)Fitch - Subordinated debt A (tha)Fitch - Outlook Stable

Fitch RatingFCY - Long Term/Short Term BBB-/F3Sub Debts/Hybrid Tier I BB+/BIndividual C/DSupport Rating Floor/Support BB+/3Outlook Negative

Source: Consolidate as of Dec 09 [49]

Peer comparison and market share

Asset market share

1,7721,544

1,359

782

460 424

1,294

139 127

544

21.0%18.3%

16.1%

9.3%

5.4% 5.0%

1.6% 1.5%

6.4%

15.3%

0

400

800

1,200

1,600

2,000

BBL KTB KBANK SCB BAY TMB TCAP SCIB TISCO KK

THB

billio

n

0%

5%

10%

15%

20%

25%

Deposit market share

76 57

266

1,3611,208

975 956

521408

324

22.1%19.6%

15.9% 15.5%

8.5%

5.3% 4.3%

0.9%1.2%

6.6%0

300

600

900

1,200

1,500

BBL KTB KBANK SCB BAY TMB SCIB TCAP KK TISCO

THB

billio

n

0%

5%

10%

15%

20%

25%

Loan market share

88

9441,076

1,145

369290 280

114

942

606

16.1%18.4%

19.6%

2.0%

4.8%

1.5%

5.0%6.3%

10.3%

16.1%

0

200

400

600

800

1,000

1,200

BBL KTB KBANK SCB BAY TMB TCAP SCIB TISCO KK

THB

billio

n

0%

4%

8%

12%

16%

20%

Revenue market share

42,188 20,550 8,854 7,11622,54869,08670,65876,259 37,53156,319

18.5%17.2% 16.8%

13.7%

10.3% 9.1%

5.0%2.2% 1.7%

5.5%

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

BBL KBANK SCB KTB BAY TCAP TMB SCIB TISCO KK

THB

millio

n

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%


Peer comparison and market share (Cont.)

NPL coverage121.0%

95.4% 91.6% 87.4% 86.4%74.2% 69.8% 69.7%

57.7%47.7%

0%

25%

50%

75%

100%

125%

BBL SCB KBANK TCAP TISCO BAY SCIB KK TMB KTB

Allowance/BOT requirement

181.0%

157.3%

139.8% 135.6% 134.0% 131.2% 130.1%119.5%

104.5% 102.8%100%

120%

140%

160%

180%

200%

BBL TISCO SCB TMB KBANK KK BAY SCIB KTB TBANK


84.2%86.3%89.1%90.5%96.8%98.5%109.1%115.1%116.4%

201.3%

0%

30%

60%

90%

120%

150%

180%

210%

TISCO BAY KK TCAP SCB KBANK TMB KTB SCIB BBL

Loan growth, YoY10.1%

8.4% 7.7%

4.3% 3.7%2.5% 2.3%

-0.4%-3.3%

-13.7%-16%

-12%

-8%

-4%

0%

4%

8%

12%

TISCO BAY KK KBANK TCAP SCB KTB SCIB BBL TMB

Source: Consolidate as of Dec 09, excluding excess reserve to performing loans from CB.1.1 [51]


Excess reserve to performing loans2.7%

1.3%1.1% 1.1% 1.1% 0.9%

0.7%

0.2% 0.1%

2.5%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

BBL TMB SCB KK BAY SCIB KBANK TISCO KTB TBANK

Total NPL

5

54

312

25

3745

5254

85

0

20

40

60

80

100

KTB TMB BBL BAY SCB KBANK SCIB TCAP KK TISCO

THB

billio

n

Provision to gross loan (basis points)

168.7

135.3

98.279.0 78.1

66.3 59.5

99.6

58.071.2

0.0

40.0

80.0

120.0

160.0

200.0

BAY TISCO KBANK TCAP SCIB KK TMB BBL SCB KTB

Cost to income ratio

65.3% 62.3% 57.9% 56.8% 56.4% 51.6%

79.0%

50.4%51.5% 46.9%

0%

10%

20%

30%

40%

50%

60%

70%

80%

TMB TCAP SCIB KTB KBANK BAY BBL SCB TISCO KK



Net profit

1,9882,2295,1096,65912,02014,89220,76020,764 2,0444,147

22.9%

16.4%

7.3%5.6%

22.9%

13.3%

2.5% 2.2%2.3%4.6%

0

3,000

6,000

9,000

12,000

15,000

18,000

21,000

BBL SCB KBANK KTB BAY TCAP SCIB KK TMB TISCO

THB

millio

n

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

Net Profit (LHS) Market share (RHS) Net profit growth, YoY

84.5%

36.0%2.6%16.0%19.4%

-3.1%0.2% -2.9%

382.5%

0.8%

-50%

0%

50%

100%

150%

200%

250%

300%

350%

400%

TMB TCAP BAY KK TISCO BBL SCIB KTB KBANK SCB

ROAE & ROAA

17.1%

11.2%

15.5%

7.5%

9.8%11.3%

12.6%12.7%

16.7%

4.4%

1.5% 1.6%1.8%

0.8%

1.2%1.0% 0.9%

1.1%

0.4%

1.2%

0.0%

5.0%

10.0%

15.0%

20.0%

TCAP TISCO SCB KK KBANK KTB BBL SCIB BAY TMB

0.0%

1.0%

2.0%

3.0%

4.0%

ROE (LHS) ROA (RHS) Net interest margin

4.7%

4.1%3.7% 3.6% 3.5%

3.2%

4.9%

3.0%3.2%

2.4%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

KK TISCO BAY TCAP SCB KBANK SCIB KTB BBL TMB

Source: BOT as of Dec 09, Consolidate as of Dec 09 [53]


Branch distribution

164 148 50 62 59671 675 6831,8321,945

8.6%9.2%

7.5%8.1%8.4%

-

400

800

1,200

1,600

2,000

2,400

BMA Centre Northeastern North South0%

2%

4%

6%

8%

10%

TMB (LHS) Industry (LHS) Market share (RHS)Number of branch

45 43257420483576805884913987

13.9%

9.9%

7.2%

4.4%

0.8% 0.7%

8.3%

15.2%15.7%17.0%

-

200

400

600

800

1,000

1,200

SCB BBL KTB KBANK BAY TMB SCIB TBANK KK TISCO

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

No. of branch (LHS) Market share (RHS)

Number of employee

19,181

15,460

9,3527,047

2,904 1,959

8,236

17,477

20,623

9,360

-

3,000

6,000

9,000

12,000

15,000

18,000

21,000

BBL SCB KTB KBANK TCAP BAY TMB SCIB TISCO KK

Total revenue per employee

4.57 4.51

4.013.70 3.60

3.222.92 2.74

3.63

3.05

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

KBANK BAY TCAP BBL KK SCB KTB TISCO SCIB TMB

THB

millio

n

[54]

Company history

The Bank succeeded in raising THB37.6 billion new capital. ING Group, the new major shareholder, holds 30.1% (including via NVDR) and MOF holds 26.1%.

2007

The Bank issued US$200 million non-cumulative hybrid debt capital instruments (Hybrid Tier 1).

2006

The Bank rebranded to “TMB Bank Public Company Limited” with a new slogan of “Better Partner, Better Value”.

2005

TMB was merged with DBS Thai Danu and IFCT effectively on September 1, 2004. Total assets grew to THB700 billion.

2004

The Bank was listed on the Stock Exchange of Thailand (SET) on December 23, 1983.

1983

TMB Bank Plc. was established on November 1957 with Field Marshal Saridi Dhanarajata as the first Chairman of the Board ofDirectors and initial registered capital of THB10 million.

1957

[55]

Awards and mandates

Joint lead arranger of Bangkok Dusit Medical Services unsecured Debenture of THB3bn (June 09)

Lead arranger of PTT Aromatics unsecured debenture of THB15 billion (Apr 09)

Joint lead arranger of PTT Exploration and Production unsecured debenture of THB40bn (May 09)

Full service cash management to Central Retail Corporation (Feb 09)

Cheque payment to National Housing Authority (Feb 09)

Lead arranger of Advance Info Service unsecured debenture of THB7.5billion (Jan 09)

Joint lead arranger of PTT Chemical unsecured debenture of THB12billion (Dec 08)

Lead arranger of Home Product Center unsecured debenture of THB630million (Nov 08)

Joint lead arranger of Thai Airways International unsecured debenture of THB 7.5bn & 7.0billion (Oct 08)

[56]

Awards and mandates-(Cont.)

Joint lead arranger of the Ministry of Finance saving bond (Thai Khem Keng) of THB80 billion (Jul 09)

Joint lead arranger of Krung Thai card Plc. unsecured debenture of THB7.5 billion (Nov 09)

Joint lead arranger of Thaicom Plc. unsecured Debenture of THB7bn (Nov 09)

Joint lead arranger of Toyota Leasing (Thailand) guaranteed debenture of THB1.15 billion (Sep 09)

Joint lead arranger of the Bank of Thailand saving bond of THB130.7 million (Sep 09)

Joint lead arranger of Easy Buy guaranteed debenture of THB3.5billion (Aug 09)

Lead arranger of Electricity Generating Authority of Thailand unsecured bond of THB1 billion (Aug 09)

Joint lead arranger of PTT Plc unsecured debenture of THB 35 billion (Jul 09)

Joint lead arranger of Quality House unsecured debenture of THB 2.5 billion (Jul 09)

[57]

TMB WAY and five core values

Thank You.IR contacts:Head of IR departmentPassakorn Linmaneechote CFATel: 662 299 2519Email: [email protected]

Jittrawadee SrivichitTel: 662 299 1178Email: [email protected]

Taweechai ChachiamchenTel: 662 242 3440Email: [email protected]

tmb bank plc. · 2017-11-17 · 4q09 results review ... this presentation contains some information...

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