Investor Presentation 3Q21/9M21 Financial Performance

Analyst Meeting October 21st, 2021

Focusing on funding optimization and cost discipline against revenue pressure. Asset quality in line with target.

▪ Business environment remained challenging throughout 3Q21. Our direction was therefore unchanged from 1H21.

▪ The overall 9M21 can be highlighted as follows.

➢ Focused on quality growth strategy to ensure the healthiness of our balance sheets during the pandemic

➢ Enhanced funding structure further to reduce pressure on NIM from slow asset growth and yields

➢ Maintained cost discipline and delivered cost saving initiatives during integration activities

➢ Prudently managed asset quality and ensured sufficient level of provision as well as robust capital buffer

▪ We will remain conservative as it is still a long and uncertain road for economic recovery.

➢ The improving vaccine rollout, the easing of Covid-19 restrictions and the open for low-risk country tourists are expected to be positive for

business activities. However, Covid-19 risks still exist and Thailand’s fragile economy will take time before seeing strong recovery and to

regain pre Covid-19 strengths. With that outlook, TTB will stick with conservative approach and quality growth strategy.

➢ As EBT mission was successfully carried out, revenue synergy initiatives, the last component of merger synergies, can be kicked start.

TTB’s new value proposition post-EBT would support fee income recovery. However, it is not a quick turnaround catalyst but rather an

engine to build and sustain fee income base in medium to long term.

➢ Credit cost will linger at elevated level but not deviate from our guidance. We will maintain our prudent risk management to alleviate risks

of the policy cliff effect. 2

Executive summary

3

Post-EBT update

Relief Program Update

3Q21/9M21 Performance & Asset Quality

Jun-20 Jun-21 Sep-21

• In 3Q21, loans under debt relief program represented approximately 12% of total

loan portfolio, slightly lower from 14% in 2Q21 and 40% during a full lockdown in

Jun-20.

• The QoQ decline was due mainly to the exits from commercial customers as the

programs expired. The Bank did see an uptick in relief requests from retail

customers due to the 3rd wave partial lockdown. However, the request traffic was

much lower than the 1st wave in 2020 as the BoT’s new/extended relief

programs have set criteria for only eligible customers.

• In terms of debt relief portfolio quality, we consider our debt relief portfolio

remains healthy as over 80% of debt-relief customers requested for light modified

terms and are able to service their debts with full interest payment.

• Although Covid-19 will continue to be a threat to economic recovery, we see that

a risk to our portfolio and B/S is limited. Firstly, we have small exposure in directly

affected industries. Secondly, we have been prudent in providing assistants to

potential customers and continue to de-risk weak loans. Lastly, we have been

strict to our Guiding Principle of Post Relief Risk Schemes to evaluate customers’

behavior and risk profile to ensure sufficient level of ECL.

4

Loans under debt relief program remained under control

Non-Debt Relief

(Included Debt Relief Exit)

Debt Relief

Note: Loans to customers excluded interbank loans

1,382 1,359

~40%

~14%

1,359

~12%

THB billion

Loans under Relief Program to Total Loans

Full lockdown Partial lockdown Partial lockdown

Automatic opt-in

Jun-20 Jun-21 Sep-21

• As of Sep-21, 9% of commercial loans remained in debt

relief program, lower QoQ due to customers’ exits from

both corporate and small SME segment.

• An increase in small SME balance was due mainly to

customer reclassification post-EBT. The new booking

remained moderate and smaller than repayment as we

remain cautions.

• Moreover, with our close monitoring and the applying of

BoT’s special/soft loan criteria, we could better understand

customers’ needs and sift the artificial demand from the

real one. Under prolonged Covid-19 situation, we believe it

is crucial to utilize the system’s limited resource prudently.

• Likewise, as we have attentively assessed and provided

support to eligible customers as per the BoT’s debt relief

3rd phase criteria, the increase in retail segment was

slightly QoQ and much lower than Jun-2020. The current

retail loans under relief program was at 14%, mainly from

HP and Mortgage portfolio.

Jun-20 Jun-21 Sep-21Jun-20 Jun-21 Sep-21Jun-20 Jun-21 Sep-21

Jun-20 Jun-21 Sep-21Jun-20 Jun-21 Sep-21Jun-20 Jun-21 Sep-21

5

Debt relief profile by customer segments and key products

Commercial Loans

Retail Loans

Hire Purchase Mortgage

Unsecured

Corporate Small Enterprise601

~38%

505

~26%

96

~99%

779

~45%~50%

408

~40%

300

~20%

60

Non-Debt Relief (Included Debt Relief Exit)

Loans under Relief Program

Note: Loans to customers excluded interbank loans / Unsecured : Credit card and personal loans

110

585

~9%

THB billion

THB billion

774

~13%

482

~9%

~75%

400

~12%

305

~16%

57

~4%

592

~16%

765

~14%

489

~7% ~20%

96

391

~14%

305

~17%

55

~4%

~53%

Scheme

Repayment ScheduleMinimum

Stage

Minimum PD

Level Interest Principal

SC 1 Full Full 1 Normal

SC 2 Full Partial 1

SC 3 Full Postponed 1

SC 4 Partial Postponed 1

SC 5 Additional skip payment ≤ 6 months 2

SC 6 Additional skip payment ≥ 6-12 months 2

SC 7 Additional skip payment ≥ 12 months 3

6

Principle-based relief schemes and deterioration of asset quality captured by the ECL model

100%

• The Bank has provided relief measures to affected customers, ranging

from scheme 1-7 (SC1-SC7), based on customer’s debt service ability

• The Bank uses BOT approved and externally validated ECL models

consistently throughout 2021, with parameters and behavior

assumptions which drive PD and LGD and immediately pick up on any

portfolio deteriorations also via SICR method.

• On LGD of auto portfolio, we looked back to 2 crisis cycles, the

financial crisis and first car sales crisis, to pick up the worst LGD. On

top of that we applied a Covid-19 factor.

• The model picks up days past due within stages and imposes bucket

and corresponding PD shifts.

• On top of that, we flag customers that selected one of the 7 schemes

to reflect real risk level and assign elevated PDs in accordance with

the severity of the program.

• Therefore, by continuously updating the actual customer scheme and

stage from the real flow, ECL generates provision requirements that

reflect the Covid-19 impact, reducing the necessity to maintain

management overlay (MO).

• Nevertheless, we set additional MO for the unpaid accrued interest in

SC5-6, on top of using 100% LGD and respective customers’ PD for all

schemes.

• In addition, looking forward and taking into account the 2nd Covid-19,

MO has been set aside based on industry/customers’ specific needs.

Note: For SC 2-4, loan staging could be classified as stage 1 or 2 depending on

customer’s pre-Covid-19 status (no up-staging took place), to reflect real risk level

Guiding Principle of Post Relief Risk Schemes

Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

7

Incoming requests from impacted customers

1st wave

(Full lockdown)

~300k call a month during

peak period and dropped

by ~70% after peak 2nd wave

(Partial lockdown)

~14k call in Sep after partially ease

business lockdown, reaching almost

the lowest level since Dec’20

~40% ~20% ~15% ~14%% Loan under relief

program to total loan ~12%

3rd wave

(Partial lockdown)

~80k call a month

during peak period

Covid-19 readiness: Call center and non-voice capacity expansion to support incoming relief requests

2020 2021

~14%

8

Post-EBT update

Relief Program Update

3Q21/9M21 Performance & Asset Quality

Loan

Growth

≤Flat -2.4% YTD • Under weaker-than-expected economic recovery throughout 9M21, loan growth has been more

selective than the original plan. We have continued de-risking weak loans to mitigate downside risks

and improve portfolio quality. This is to preserve and to ensure balance sheet healthiness for our future

growth once economic situation allows.

Deposit

Growth

≤Flat -3.5% YTD • Balance sheets optimization on deposit side was well-executed. Post-merger deposit structure allows

TTB to run down high cost deposits and replace with flagship products, resulting in improving cost of

deposit. Funding volume was also optimized during slow loan growth environment in order to optimize

profitability margin.

NIM Stable

(3.0% in 2020)

2.98%(3.06%, excluded

PPA impact)

• NIM could maintain at 2.98% given the Bank’s unique position from B/S optimization and funding

strategy which helped lessen the impact from yield compression and changing accounting estimates to

be more conservative on EIR recognition on mortgage portfolio.

Non-NII

/Total Asset

0.8%-0.9% 0.77% • Non-NII to total asset lingered in the lower bound of our target, reflecting the impact of Covid-19

resurgence on fee income. Under this challenging times, TTB has tactically adjusted our sale approach

and product offerings. As result, 3Q21 retail fees could gradually recovered QoQ, despite the limitation

from partial lockdown. Key drivers were non-auto BA and MF fee.

C/I Ratio 47%-49% 46.5%(45.2%, excluded

PPA impact)

▪ Despite integration activities, OPEX dropped YoY, as a result of cost discipline, cost saving initiatives

and partly from lower variable expenses from lower business volume. However, due to the lockdown,

some integration activities and related expenses i.e. rebranding and asset transfer were postponed to

4Q21, implying that C/I ratio in 4Q21 will remain at high-40s but not deviate from the guidance. In terms

of the Debt Collection Act, announced in September, we expected it to be an unfavorable factor for

operating expense.

% Stage 3 < 3.6% 2.98% • The uptick in % stage 3 was mainly a combination of slow loan growth and a slight increase in stage 3

outstanding. The rise in stage 3 loans was from 2 main reasons: our intention to slowdown NPL sales to

preserve NPL value and our effort to de-risk weak loans (both stage 2 and 3 loans).

Credit cost 160-180 bps 161 bps • 9M21 credit cost came at the lower bound of our guidance as we already built up reserve in 2020

(THB24.8 bn) under the expectation of prolonged Covid-19 and slow economic recovery in 2021.

Current LLR ratio of 121% is sufficient and reflects our portfolio nature of retail and collateral base.

Summary of 9M21 operating performance A

ss

et

qu

ali

tyO

pe

rati

ng

pe

rfo

rma

nc

e

2021 Targets Actual 9M21

10

Dec-20 Jun-21 Sep-21

Maintaining quality loan growth strategy amid prolonged Covid-19

• TTB aims to optimize loan mix and shift portfolio toward retail-mortgage and HP as part of B/S synergy initiatives. However, due to Covid-19 pandemic, the Bank has

been more selective in growing loans in order to preserve B/S quality for future growth once economic situation allows.

• As a result, total loan was flat QoQ and -2% YTD as of 3Q21 due to -1% QoQ and -2% YTD in retail loans and +1% QoQ and -3% YTD in commercial loans.

• Our key focuses, retail-mortgage could grow +0.2% QoQ and +2% YTD amid our selective growth strategy and higher market competition for quality customers. HP

portfolio, on the other hand, declined -2% QoQ and -4% YTD as loan repayment outpaced new bookings. The supply shortage in car market during 3Q21 also

interrupted growth pace. Nonetheless, TTB could maintain HP market share at our normal level of around 15%.

• Note that the increase in % SE loan from 7% to 8% in 3Q21 was due mainly to re-segmentation after the completion of EBT. The direction on small SME segment is

unchanged, still in a risk-averse mode and we will continue to de-risk weak loans. As a result, SE new booking was slower than repayment flows.

Total Loan

Corporate

Small Enterprise(SE)

Retail Mortgage

Retail HP

Retail Personal Loan

Others

Retail Credit Card

29%

22%

7%

37%

2%2%

1%

1,393 bn

30%

22%

7%

36%

1% 2%2%

1,359 bn 1,359 bnFlat QoQ

-2.4% YTD

29%

22%

8%

36%

1%2%2%

New Car69%

Used Car 17%

CYC 14%

CYB 0.1%

Breakdown Retail HP 391 bn

11

Deposit strategy and structure improving cost of deposit

Total Deposit

TD+NCD

Hybrid

Saving

Current

% Retail deposits

Dec-20 Jun-21 Sep-21

1,373 bn1,324 bn

76% 75% 73%

14%

51%

29%

6%

11%

53%

29%

7%

1,325 bn

Flat QoQ

-3.5% YTD

10%

49%

34%

7%

• Deposit was flat QoQ and -4% YTD, in line with Bank’s B/S synergy initiatives and liquidity management amid slow loan growth environment.

• Deposit strategy focuses on growing quality deposits which will lead by our flagship products - All Free and No Fixed and to reduce high-cost Time Deposit to improve

cost of deposit further.

• Going forward, the Bank will optimize deposit structure thru saving & hybrid products and balance Time Deposit level to ensure cost management efficiency.

• In 3Q21, the change in deposit mix and the growing in saving deposits was due to 2 main reasons;

➢ Continuous growth in All Free, +27% QoQ and +35% YTD and

➢ Re-segmentation and a transfer from some of hybrid products (Ultra-saving) to saving accounts after the EBT

~35%

CASA

~36%

CASA~41%

CASA

295 312 274 271

101%100%

103% 103%

95% 95%97% 97%

70.0%

75.0%

80.0%

85.0%

90.0%

95.0%

100.0%

0

200

400

Dec-20 Mar-21 Jun-21 Sep-21

Net Liquid Asset LDR LDR+Borrowing

12

Optimizing balance sheet with healthy liquidity position

• To optimize B/S, the Bank proactively manages funding cost and enhances

return on liquid assets via other investments.

• Deposit is a major source of funds, and the Bank strategically builds retail

deposit base to ensure stable deposit and less reliance on short-term wholesale

funding and the Bank expected the trend to continue with deposit-led strategy

and creation of a strong deposit franchise.

• LCR was well above 100%, the BOT’s minimum requirement.

Net Liquid Asset Definition: Cash + Interbank Asset + Investment - Interbank liab.

Continue Optimized B/S through Liquid Asset Management

LCR Well Above Regulatory Requirement

Retail Deposit is a Major Source of Funds

THB billion % of Total Funding

Official LCR as of Sep 21 will be reported to BOT in Oct 21

64%

23%

2% 3% 5% 3%

63%

24%

2% 3% 5% 3%

Retail Deposit CommercialDeposit

SeniorDebenture

Sub-debenture InterbankBorrowing

Others

Jun-21 Sep-21

219%

179% 183% 184%

0%

100 %

200 %

300 %

Sep-20 Dec-20 Mar-21 Jun-21

BOT Minimum Requirement LCR

100%

Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21

~148 bn~135 bn~160 bn

~210 bn

~110 bn~150 bn

~89 bn ~81 bn

13

Consistent improvement in cost of deposit with a strong liquidity position

Net Interbank

Strong Liquidity Position

• Our unique offerings keep TTB’s retail deposit franchise in a leading position and also help the Bank in terms of deposit cost management.

➢ Our flagship products, All Free and No-Fixed, is an interest-barbell tool which allows the Bank to manage deposit growth and cost more efficiently.

➢ Post EBT structure gave room to optimize balance sheet by running down high-cost deposit.

• FIDF cut helped reduce pressure from loan yield side. However, the benefit was passed on to our customers.

• As a result, a hallmark of this deposit cost reduction continued for 7 consecutive quarters since merger, showing a proven track record in executing our priorities.

Cost of Deposit

-75 bps from Dec-19

1.29% 1.16%

1.51%

0.96% 0.84%

0.80% 0.76%

Loans -2.4% YTD

Deposit -3.5% YTD

0.76%

1,325

1,359

1,324

1,3591,384

1,3801,373

1,3931,406

1,363

1,443

1,3821,398

1,4041,398

1,392

4.83%

4.52% 4.46%

5.00%

4.52%

4.86% 4.64% 4.58%

5.11%4.64%

-0.80%

0.20%

1.20%

2.20%

3.20%

4.20%

5.20%

3.00%

3.50%

4.00%

4.50%

5.00%

5.50%

6.00%

3Q20 2Q21 3Q21 9M20 9M21

14

Stabilized NIM from ability to manage deposit cost despite declining in asset yields

• Loan yield remains under pressure from sluggish

economic and low rate environment together with

quality loan growth strategy to preserve B/S quality.

As a result, loan yield dropped QoQ and YoY.

• Following the reduction of market benchmark rate

throughout 2020, loan yield compressed to 4.52% in

9M21.

• 3Q21 deposit cost recorded at 0.76%, stable QoQ

despite higher deposit volume. The YoY reduction

was driven by the Bank’s effort on funding strategy

and balance sheets optimization.

• 9M21 cost of deposit was 0.78%, materially down by

36 basis points YoY. This was due to balance sheet

optimization plus deposit repricing strategy on

flagship products.

Loan YieldCost of Deposit Net Interest Margin (NIM)

• NIM slightly dropped QoQ from yield

compression. YoY improvement was mainly from

funding optimization.

• 9M21 NIM was stable YoY at 2.98%. This was

driven by balance sheet optimization and

effective deposit repricing strategy during low

rate environment which helped compensate for

yield pressure.

Loan yield (excluded PPA impact)

0.96%

0.76% 0.76%

1.14%

0.78%

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

1.40%

1.60%

1.80%

3Q20 2Q21 3Q21 9M20 9M21

Flat QoQ

-20 bps YoY

-36 bps

YoY

-6 bps QoQ

-37bps YoY-48 bps YoY

Flat YoY-3 bps QoQ

+3 bps YoY

2.92% 2.98% 2.95% 2.98% 2.98%

2.94% 3.06% 3.04% 3.07% 3.06%

-0.40%

0.10%

0.60%

1.10%

1.60%

2.10%

2.60%

3.10%

0.0%

1.0%

2.0%

3.0%

4.0%

3Q20 2Q21 3Q21 9M20 9M21

NIM (excluded PPA impact)

13,227 12,782 12,577

40,286 38,231

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

3Q20 2Q21 3Q21 9M20 9M21

THB million

15

Well-managed funding cost lower pressure on NII

• Apart from B/S quality, TTB has also emphasized on P&L quality under TFRS9 adoption. We have adjusted effective interest rate (EIR) recognition to be more

conservative i.e. on mortgage portfolio in order to reflect and factor in the impact from current business environment. Although this added pressure on interest

income, we believe it helps improve P&L quality by mitigating risk of overstated income.

• As pressure from adjusted EIR approach, lower asset yield and slower loan growth outweighed the well-manage funding cost and volume, 3Q21 and 9M21 NII

remained on negative territory.

Net Interest Income

-1.6% QoQ

-4.9% YoY

-5.1% YoY

2,633 2,198 2,257

7,605 7,488

352 919 829

3,084 2,687

2,984 3,118 3,086

10,689 10,175

-

2,00 0

4,00 0

6,00 0

8,00 0

10,0 00

12,0 00

3Q20 2Q21 3Q21 9M20 9M21

THB million

16

Despite intensified Covid-19 outbreak and the lockdown measure in many areas, retail fee income improving

Total Non-Interest Income (Non-NII)

Net fee &

service income

Other Non-NII

Total Non-NII -2% YoY

-5% YoY

-13% YoY

+3% QoQ,

-14% YoY

-1% QoQ,

+3% YoY

-10% QoQ,

+135% YoY

• Non-interest income in 3Q21 was slightly down QoQ from non-core revenue (lower

gain from FVTPL and dividend income) which offset the improvement in retail fees.

The YoY improvement was mainly from low base in 3Q20 in non-core revenue .

• 9M21 Non-NII was weighted down from both fee income and other operating income.

• Despite lockdown measure in many areas, fee income from retail businesses gradually improved QoQ on the back of mutual fund fee. The contraction in auto BA fee was from lower

new booking QoQ due to auto supply chain disruptions.

➢ MF fee increased mainly from high fee sale volume as global equity advanced during

the quarter, supporting investment sentiment. We also introduced SCBAM as our new

partner to our open architecture in August.

➢ BA fee was relatively flat, dragged down by auto BA fee.

• Commercial fee remained flat QoQ

131 135 132 137 132 381 402

5343 55 55 69 172 180

3Q20 4Q20 1Q21 2Q21 3Q21 9M20 9M21

280 313 383 420 349 1,026 1,152

Breakdown Strategic Non-NII Products

560 7041,088

447 479 1,5492,015

Bancassurance fee

Mutual fund fee

Loan-related fee

TF and FX fee

LG fee

1,0831,514 1,388 1,224 1,238 3,686 3,850

TF262*

FX

Prelim data

THB billion

*after reclassification, THB 262 mn was reported as FX revenue in 2Q21 (down approx. 83 mn)

7,429 7,402 7,268

23,536 22,597

0

5,000

10,000

15,000

20,000

25,000

3Q20 2Q21 3Q21 9M20 9M21

13,227 12,782 12,577

40,286 38,231

2,984 3,118 3,086

10,68910,175

16,212 15,900 15,663

50,97548,406

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

55,000

3Q20 2Q21 3Q21 9M20 9M21

NII

Non-NII

Total Operating Income

THB million

17

With cost discipline, cost synergy realization going better than original plan

Total Operating Expense

THB million

• Recurring expenses declined from cost-saving initiatives after merger. OPEX

recorded at THB 7.3 bn, down by -2% QoQ and -2% YoY. The Bank made sure

stringent cost saving initiatives coming along as plan during this uncertain time.

• Despite one-time integration expenses and separation package in 9-month period,

9M21 total operating expense was well-contained by cost saving synergy.

➢ As of Sep-21, the Merged bank’s headcount went down to 15,379 personnel

(-4.1k after merger), resulting from the Bank’s effort to execute merged bank

synergies

➢ Branch rationalization continues as plan (reduced by -12 branches QoQ and

-243 branches after merger).

Total Operating Income

• Overall core revenue was impacted from economic slowdown from

the pandemic. Total revenue was down by -1% QoQ and -3% YoY in

3Q21

• 9M21 total operating income subsided to TH 48.4 bn.

-2% QoQ

-5% YoY

-1% QoQ

+3% YoY

-1% QoQ

-3% YoY-5% YoY

-5% YoY

-5% YoY

-2% QoQ

-2% YoY

-4% YoY

46% 46% 46% 46% 46%

45% 45% 45% 45% 45%

-1%

4%

9%

14%

19%

24%

29%

34%

39%

44%

49%

20%

25%

30%

35%

40%

45%

50%

55%

60%

3Q20 2Q21 3Q21 9M20 9M21

18

C/I ratio in line with target, with long-term aspiration to achieve low-40s

• With the pressure on income affected from Covid-19, C/I ratio was at 46% with the effort in accelerating cost saving synergies to self-fund integration

expenses. If excluded PPA impact, cost to income ratio would have been at 45%.

• C/I ratio in 4Q21 is expected to remain at high-40s but within the guidance due to the remaining EBT expenses i.e. delay in rebranding activities, delay

in assets transfer, resulted in postpone recognition the subrogation expense

Cost-to-Income Ratio

C/I ratio (excluded PPA impact)

Flat QoQ

and YoYFlat YoY

8,809 8,502 8,438

27,46225,839

0

5,000

10,000

15,000

20,000

25,000

30,000

3Q20 2Q21 3Q21 9M20 9M21

THB million

19

Pre-provision profit reflecting our prudent business direction

Pre-Provision Operating Profit (PPOP)

• As a result of our prudent business direction during fragile economic recovery from Covid-19, 3Q21 PPOP was THB 8,438 mn, -1% QoQ and -4% YoY.

• 9M21 PPOP recorded at THB 25.8 bn.

-1% QoQ

-4% YoY

-6% YoY

20

Prudent risk management and prudent level of allowances set aside

ECL & Credit Cost

Expected credit loss (ECL) (THB million)Annualized credit cost (bps)

• A growing number of Covid-19 cases and renewed partial lockdown measures are

increasing uncertainty. Hence, the Bank has continued to manage down weak

loans by written-off and sales to ensure balance sheets quality.

• In 3Q21, the Bank set aside provision for loans and management overlay in total

of THB 5.5 bn.

• 9M21, credit cost was 161 bps, up 1 bps YoY. We ensure the sufficient ECL by our

Principle-based relief schemes since model development during the pandemic.

• Provisioning is expected to be elevated in 2021 but still within guidance. This is to

ensure that the Bank has buffer for unforeseeable future and will be able to

alleviate the risk of policy cliff effect.

+1% QoQ

-19% YoY

-1% YoY

Net Profit

• As a result of revenue pressure and prudent risk management,

3Q21 net profit declined by 7% QoQ. YoY improvement was mainly

from lower in provisioning.

• Net profit in 9M21 dropped by 14% YoY.

-7% QoQ

+46% YoY

-14% YoY

6,8638,237

5,480 5,491 5,527

16,595 16,497

199

238

160 161 161 160 161

-5

45

95

145

195

245

0

5,000

10,000

15,000

20,000

25,000

30,000

3Q20 4Q20 1Q21 2Q21 3Q21 9M20 9M21

1,6191,235

2,782 2,534 2,359

8,877

7,675

3Q20 4Q20 1Q21 2Q21 3Q21 9M20 9M21

21

Coverage by stage

Distribution of Risk Provision

Coverage by stage

Stage 1

Stage 2

Stage 3

• TTB remains prudent in asset quality management. We continues to prudently manage and de-risk weak loans in both stage 2 and stage 3.

• While strategically slowing down NPL sales to preserve NPL value, in 3Q21 we did a write-off to improve stage 3 quality. As a result, stage 3 portfolio was more

collateralized compared with 2Q21.

• Due to the write-off, allowance for ECL (ECL from model + Management Overlay) as of Sep-21 slightly dropped to THB 53.9 bn.

• Overall, the LLR by stage increased across all stages when compared to pre Covid-19, reflecting the Bank’s tightening ECL model and prudent risk management.

1.0%

18.0%

47.1%

0.8%

13.1%

43.4%

0.9%

14.8%

45.6%

0.9%

17.7%

47.3%

+23 bps from 2Q20

+464 bps from 2Q20

+75 bps from 2Q20

0.8%

18.5%

49.3%

Note: * Allowance of stage 3 is presented on a net basis to be in line with the industry

Stage 1

Stage 2

Stage 3

*Remark

* LLR as of Dec-20 at 131% represented changed in accounting report from gross basis to net basis to be in line with the industry

114%132% 131% 124% 125% 121%

50%

60%

70%

80%

90%

100%

110%

120%

130%

140%LLR Ratio (%)

Allowance for ECL

(THB billion)

17.39 17.43 19.22 21.76 20.83 19.76

17.14 19.63 21.62

21.92 21.00 21.71

9.85 11.31

11.13 10.12 12.59 12.45 44.37

48.37 51.97 53.80 54.42 53.92

Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21

1.0%

18.1%

44.1%

22

Accrued interest reflecting conservative approach

Accrued Int. Stage 1 & 2

Accrued Int. Stage 3

• Given the current unfavorable economic conditions, the Bank took conservative approach in revenue recognition for accrued interest treatment during the pandemic.

➢ Since 1Q21, stage 3* accrued interest has been provisioning at full-amount to preemptively limit future downside risk. We believe this will help improve quality

of balance sheets and the risk in overstated net interest income.

• Overall, total accrued interest uptick QoQ was mainly due to 2-month skip payment from BoT’s 3rd phase but the trend dropped from the peak in 3Q20 after

customers exit 1st phase of relief scheme.

Accrued interest

1st phase of debt relief

(Full lockdown)3rd phase of debt relief

(partial lockdown)

Remark : *Stage 3 originated in 2021

: **4Q21 accrued interest was restated and presented net from allowances for expected credit loss to be comparable with 2021

723 1,300 1,489 1,082 701 634 439

2,036

5,143

7,720

6,440 6,444 6,497 6,793 2,759

6,442

9,209

7,522 7,145 7,130 7,232

1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21**

Mar-20 Jun-21 Sep-21

14.3%

2.76% 2.75% 2.89% 2.98%

2010 2020 2021

Stage 1 Stage2 Stage 3

23

Prudent actions to strengthen portfolio quality

Loan Classification (%)

1.60 tn

1,427 bn

132 bn44.1 bn

89.0% Stage 1

8.3% Stage 2

2.76% Stage 3

NPL Ratio/ Stage 3

TFRS9

89.5% Stage 1

7.6% Stage 2

2.89% Stage 3

Pre-Covid-19 19

• After the 1st wave of Covid-19 in 2020, TTB proactively resolved NPLs to clear up headroom for headwinds in 2021. We has also continued to de-risk weak loans in

stage 2 to improve portfolio quality.

• As a result, stage 2 loan outstanding decreased to THB 118 bn or 7.9% of total loans as of Sep-21, compared to THB 132 bn or 8.3% as of Mar-20, a pre-Covid level.

• Stage 3 loan was at THB 44.4 bn. Stage 3 ratio rose to 2.98% due mainly to slow loan growth and uptick in stage 3. The increase in stage 3 was a combination of slow

NPL resolution and a stage 2 de-risking activities. In all, asset quality remains in line with guidance and relatively low when compared to peers.

• TTB will continue to improve stage 2 while stage 3 is expected to persist from both NPL trend and our intention to slow NPL resolution activities to preserve NPL value

from higher supply in the market.

1.50 tn

43.5 bn

1,346 bn

115 bn Mar Sep

177 bnStage2+3

158 bn

89.1% Stage 1

7.9% Stage 2

2.98% Stage 3

163 bn

1.49 tn

1,328 bn

118 bn 44.4 bn Jun

24

Reinforce capital position with wider buffer over requirements

• We remain strongly capitalized, enabling the Bank to

withstand the uncertainty ahead.

• Due to Economic headwind impacted from Covid-19

pandemic, the Bank reinforced solvency ratio with

organic capital generation and balance sheet

optimization, reflecting higher buffer Tier 1 and lower in

credit RWA.

• Total Tier1 at 15.6% has not included the roll in

effect of 1H21 profit.

4Q20

14.4%

CE

T 1

+ 1%

AT1

issued in

Nov-19

CE

T 1

3Q21

14.6%

3Q21

15.6%

TIE

R 1

CET1 THB 166 bn THB 176 bn

RWA THB 1,217 bn THB 1,208 bn

Tier 1 minimum

requirement

CAR minimum

requirement11.0%

+4.1%

Tier 2

3Q21

19.7%

CA

R

8.5%

TIER1 THB 178 bn THB 188 bn

Solid Capital with ample buffer over requirement

*prelim data for 3Q21

25

Post-EBT update

Relief Program Update

3Q21/9M21 Performance & Asset Quality

26

Our transformative journey towards the recommended bank of choice by our customers

2020

2021

2022-23

Jul 2021: becoming one

legal entity thru EBT

Dec 2019:

Merger

transaction

closing

The recommended

bank of choice

by our customers

▪ Supported our customers thru

Covid-19 pandemics while

monitoring portfolio health

▪ Merged the two businesses

▪ Harmonized two corp. cultures

▪ Captured synergy quick wins (e.g.,

cost and balance sheet)

▪ Continue to support our customers in

need of help

▪ Proactively manage flow to

NPL and enhance recovery

from stage 2/3

▪ Launch rebrand

▪ Complete EBT steps

▪ Revamp existing digital platform

▪ Double down on capturing

short/medium term synergies (e.g.,

cross-selling)

▪ Maximize the potential of the

merged bank’s 10mn customer

base thru:

• Financial well-being as

guiding principle

• Sharper proposition

addressing banking and

beyond banking needs of

our targeted customers

• Top tier digital platform

▪ Fully operate under ‘Digital first’

principle, allowing better

customer experience, higher

agility and leaner cost base

Covid-19 / debt relief

Integration

Business transformation

✓

✓

✓

✓

✓

✓

✓

✓

27

What’s next?

• Rebranding launch • Established one brand with philosophy “Make REAL Change”

• New product development/ repackage for better customer’s

financial well-being (e.g., ttb Reserve, new TSP, Smart Protect)

3Q21-4Q21 2022 onwards

Bank’s financial well-being = customer’s financial well-being

Healthy Borrowing

Mindful Spending & Start/Maximize Saving

Investing forFuture

Sufficient Protection

2Q21

✓ ✓

• Revenue synergy to start kick-in via our flagship products

• Launch new digital platform

and proposition for retail,

enabling digital-first

operating model

• Continue to develop and offer

financial well-being solutions

to engage customers by life-

stage and life-event

• Realize revenue synergy

from larger base of

customers after the merger

• Complete EBT

in July 2021

Disclaimer: The information in this material is in summary form and does not purport to be complete. No representation or warranty, express or implied, is or should be made

concerning, and no reliance should be place on, the accuracy, fairness, or completeness of this information and liability therefore is disclaimed. TTBThanachart Bank Public

Company Limited (the “Bank” or “ttb” or “TTB”) does not independently verified, approved or endorsed the information contained herein, or undertakes to update or revise any

information, whether as a result of new information, future events or otherwise.

The material to be presented may contain certain forward-looking statements and information regarding the Company that reflect current views and/or expectations of the

Company with respect to its performance, business and future events. Statements relating to achieving certain goals are forward-looking statements. Forward-looking

statements are based on certain assumptions and expectations of future events. The Company cannot guarantee that these assumptions and expectations are accurate or will

be realized. Past performance does not guarantee or predict future performance. A number of important factors could cause actual results or outcomes to differ materially from

those expressed in any forward-looking statement. Representative examples of these factors include (without limitation) general industry and economic conditions, interest rate

trends, cost of capital and capital availability, currency exchange rates, competition from other companies, shifts in customer demands, customers and partners, changes in

operating expenses including employee wages, benefits and training, governmental and public policy changes and the continued availability of financing in the amounts and

the terms necessary to support future business. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a

result of a number of risks, uncertainties and assumptions. You are cautioned not to place reliance on these forward-looking statements, which are based on current view of the

management on future events. The Company does not assume any responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any

subsequent developments, information or events, or otherwise.

This presentation does not constitute an offer, or invitation, or solicitation of an offer, to subscribe for, sell or purchase any securities. Neither this material nor anything

contained herein shall form the basis of any contract or commitment whatsoever. The recipients of this presentation should not make any investment or business decision or

take actions in reliance on the information and statements contained in this presentation and must conduct their own investigation and analysis of the contemplated transaction

and the information and data contained herein.

This presentation is being made available on a confidential basis and intended only for the recipients, and may not be copied, reproduced, retransmitted or distributed by a

recipient to any other persons in any manner. By attending this presentation and/or accepting a copy of this document, you agree to be bound by the foregoing limitations and

conditions.