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%
Source: Consolidated financial statements [7]
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
Source: Consolidated financial statements [8]
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%
Source: Consolidated financial statements [9]
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%
Source: Consolidated financial statements [10]
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%
[15]Source: consolidated financial statements
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%
Source: consolidated financial statements [19]
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%
Source: consolidated financial statements [20]
‐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
Minimum BOT requirement
0%
3Q12 4Q12 1Q13 2Q13 3Q13
Minimum BOT requirement
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%
[26]Source: consolidated financial statements
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 %
[27]Source: consolidated financial statements
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.