TMB Bank Plc.

To be the Most Advocated Transactional Bank in Country

Investor Presentation

9M17 Analyst Meting

18 October 2017

AGENDA

2

Asset Quality

2017 Target

9M17 & 3Q17 Financial Performance

599 602 608

20 20

Dec-16 Jun-17 Sep-17

Deposits Additional liquidity LDR

99%

103% 102%

0

100

200

300

400

500

600

Dec-16 Jun-17 Sep-17

3

Continue the momentum to grow quality deposit

20%

41%

31%

8%

+1.4% YTD

+1.0% QoQ

% Trx deposit

% Retail deposit 68% 70% 70%

➢ Funding structure is more resilient by raising retail base and transaction deposit base to 70% and 40% of total deposits.

With less concentration in deposit and excess liquidity from FWD access fee, TMB’s LDR is at 102% (LDR with additional

liquidity is 98.7%)

➢ As a result, TMB was able to focus more on growing transactional deposit

▪ Transactional deposit +1.2% YTD, +5.0% QoQ supported by flagship transactional deposit products

(All Free +6.6% QoQ and SME one bank +2.8% QoQ)

▪ No-fixed grew well (No-fixed +13.9% YTD, +7.5%QoQ), in line with strategy to replace TD by offering primary banking benefit

➢ Therefore deposit growth expanded +1.4% YTD or picked up 1.0% QoQ

99% LDR* With

additional

liquity

LDR and Additional LiquidityDeposit Volume & Mix

17%

44%

32%

7%

TD

No Fixed

& ME

Transactional

(Saving)

Current

15%

45%

32%

8%

40%

(THB bn)

99%

4

Boosts transactional usage for better customer understanding

by offering primary banking benefit

190 232

454 485

423

FY2013 FY2014 FY2015 FY2016 9M17

3809M16

+11%

16 19

38 4047

Increasing New Accounts and No. of Transactions

Unit: (‘000)+7%

+18%

No. of new retail

trxn account

– monthly average

Avg no. of transaction/account/month 1.2 1.6 3.3

➢ To better understanding customers, we boosted transactional

usage behavior by

▪ Offering primary banking benefit with higher bonus rate (+30

bps) for No-Fixed customers who transact via All Free account

5 times/month

➢ To affirm our strategy, TMB continues to built customer

relationship by offering series of primary banking benefit e.g.

Special Interest Rate for personal loan for those who use All

Free at least 5 times/month and Direct Debit service for the

payment, aimed for;

I. Acquiring new customers (+11% YTD)

II. Stable source of funding (% Trxn 40%)

III. Gaining information from transactional behavior to

enhance the Bank’s upselling for sustainable fee income

(9M17 retail fee income +51% YoY)

➢ Cost of deposit slightly rose to 1.33% or +2 bps QoQ

➢ 9M17 cost of deposit dropped 23 bps from 9M16 to 1.29%,

resulted from replacing high-cost of deposit (TD) and

growing transactional deposit base

Cost of Deposit

+2 bps-23 bps

Loan growth momentum continued, driven by mortgage

5

5.30%

3.2%4.7%5.7%8.2%

Loan Portfolio and Loan Yield

➢ Performing loan grew 4.4% YTD, led by retail and working capital

from MB & CB. Expected SE to resume growth in 4Q17.

▪ Retail loan +17.9% YTD and +6.4% QoQ with Mortgage

as a key driver (+7.6 QoQ, +24.6%YTD)

▪ MB+CB loan +3.2% YTD, -2.6% QoQ

▪ BB+SE reduced -4.2% YTD, -1% QoQ,

➢ Loan yield declined YoY and QoQ due mainly to;

▪ Shift in loan portfolio toward mortgage

▪ MRR rate cut (-50 bps, effective May 22)

Yield

9M17

Retail

SE

MB+CB

BB

(THB bn)

27%

15%

18%

40%

26%

16%

19%

39%

29%

15%

17%

39%

576599 601

Performing Loan Volume and Mix +4.4% YTD

+0.4% QoQ(THB bn)

Note: MB: Multi-Corporate Banking (turnover >5bn/year), CB: Corporate Banking (turnover 1-5bn/year),

BB: Business Banking (turnover 100mn-1bn/year), SME: Small and Medium Enterprise (turnover ≤100 mn/year)

Loan Yield

-5 bps-27 bps

Reduction in loan yields largely from shift in loan mix

6

Retail

Loan

Commercial

Loan

24%

76% 71%

29%

601 bn574 bn

Performing Loan Breakdown

436 bn 427 bn

138 bn 174 bn

17%22% Mortgage

Credit cardUnsecured

Retail loan breakdown as % of performing loan

2%

1%, Other

4%

4%2%

1%

Commercial loan breakdown as % of performing loan

39%40% MB & CB

BB19% 16%

SE14% 12%

1.8% BB-restructured

2.6% SE-restructured0.8%2.3%

5.46%5.19%

Loan yield

-16 bps : Shift of retail loan portfolio toward Mortgage and Benefit

plus (unsecured-low risk)

-6 bps : Reduction of MLR in April-16 and MRR in May-17

-4 bps : Restructured loan (BB & SE)

-16 bps

-10 bps

Change in

Yield YoY

-27 bps

7

9M17 NIM was in line with target

➢ Net interest income (NII) therefore, rose to

THB18,550 mn in 9M17, +1% YoY

➢ For 3Q17, NII remained flat QoQ

➢ 9M17 NIM improved 4 bps to 3.16% driven mainly by

optimizing deposit mix by replacing high-cost of

deposit (TD) and growing transactional deposit base

➢ NIM of 3Q17 reduced QoQ to 3.11%. The reduction by

9 basis points was due to

▪ Shift in loan mix toward mortgage loan

▪ Excess liquidity from access fee was temporarily placed in

lower yielded product before redeploy to lending at

higher yielded assets

-9 bps +4 bps

+1% YoY

Flat

Net Interest Margin (NIM)

Net Interest Income (NII)

(THB mn)

2,034 2,205 2,034 2,163 2,459

662739 705

482 3922,696

2,944 2,738

3,309 3,184

3Q16 4Q16 1Q17 2Q17 3Q17

Other Non-NII

Access Fee from FWD

Net fees & service income (Excl. Access Fee)

Total Non-NII

8

9M17 Non-NII up YoY, reflecting continued good progress on fee income

generation

5,7926,656

1,726

1,5797,518

9,231

9M16 9M17

Non-interest income (Non-NII)

THB million

Total net fee

+ 32% YoY

+23% YoY

(Excl. FWD access fee +10%)

Total net fee

-1% QoQ

-4% QoQ

(Excl. FWD access fee +8%)+15%

+14%

➢ For 9-month, Non-NII improved YoY, boosted by fee income

▪ 9M17 Non-NII +23% YoY

▪ 3Q17 Non-NII -4% QoQ

➢ Positive momentum in fee income was driven mainly by retail fees despite weighed down by reduction of loan-related

fee. However commercial fee started to see improvement QoQ (if excluded FWD access fee, Fee income +15%)

▪ 9M17 Net fee income +32% YoY

▪ 3Q17 Net fee income -1% QoQ (the execution of FWD agreement happened in 2Q17, fee income impacted by cumulative-

effect for 2 quarters since the agreement was backdated to 1st of January, 2017)

➢ 9M17 Fee/EA improved to 1.4% from 1.2% in 9M16 (3Q17,1.5%)

Fee income has shown good momentum, driven by retail fee

9

Fee income growth was driven by retail fees, especially from strategic

products: BA and MF;

➢ Retail fee grew 51% YoY, backed by growth in mutual fund (81% YoY) and

Bancassurance (+82%YoY) (excluded FWD access fee, BA+20%YoY)

▪ QoQ in 3Q17 continued good momentum in mutual fund (+8%

QoQ)(+81%YoY) due to Global Income Fund while BA (-9% QoQ)

(excluded FWD access fee, BA +38%QoQ)

➢ Commercial banking fee posted a negative growth YoY mainly due to

reduction of loan-related fee. However 3Q17 the growth picked up QoQ,

driven loan-related fee picked up +26% QoQ, LG fee+13% QoQTrade finance

Fee Income from Key Products (THB mn)

+38% QoQ

3Q16 4Q16 1Q17 2Q17 3Q17 9M16 9M17

Net Fee and Service Income (THB mn)

Note: Consolidated

-1% QoQ

+32% YoY

BA

MF

Loan related

LG

TF

OthersBancassurance

Bancassurance

FWD Access fee

+20% YoY

-9% QoQ

+82% YoY

+8.% QoQ

+81% YoYMutual fund

+26% QoQ

Loan-related

LG+13% QoQ

-2% YoY

-1% QoQ

-4% YoY

-41% YoY

Note: Bank-only (prelim)

Reaching more customers to provide seamless service

10

➢ With the trend of people becomes more digital, TMB offers seamless

(Omni-channel experience) service across all channels to gain opportunity

from underserved customers

▪ Start TMB Open Architecture to provide customers more choices with initially 4 partners introduced

▪ Partnership with Amundi enhancing Asset Allocation Advisory to meet customers’ needs

▪ Fill TMB Mutual Shelf to provide customers with best of choices under TMB Open Architecture with 8 partners

▪ Offer Provide online service for customer to buy or sell mutual fund (Existing portfolio) through digital channels

▪ Offer TMB Advisory services to all customers TMB Branch, Contact Centerand TMB Advisory’s Line Account

903

2,204 173,036

251,785

1748

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

-

50,000

100,000

150,000

200,000

250,000

300,000

FY2013 FY2014 FY2015 FY2016 9M17

Mutual Fund Fee (mn.) # of Customers

Channel Strategy

Digital

% change of transaction per month done through different channels

ATM/ADM

Branch

172% YTD

18% YTD

9% YTD

Growing # of Customers and Mutual Fund Fee

9M16

1,221 mn.+81%

For example, TMB Mutual Fund Business

As of September, 2017

2.4 mn.

32%

Total retail activecustomers

Active digital customers

2014-2015

2016

2017

11

Gains on FWD access fee is only a portion from total economic value

Total

Economic Value

Access fee

Commission

Profit sharing

Strategic

Collaboration

The objective aimed to develop and provide best-in-class life insurance products to TMB’s customers. The Partnership is expected to bring significant benefits to both parties, FWD will gain exclusive access to TMB customers, resulted in building up customers’ understanding that allow FWD to support TMB in providing variety of life insurance products and services that suit our customers’ needs

▪ FWD access fee for approximately THB20 bn, net of all taxes and expense,

excluding commission and profit sharing is recorded as “Deferred revenue” in

liability side to be recognized quarterly as fee income over the initial term of

15 years.

Capital-like nature

▪ No claw back scheme, since it was not related to performance or volume

▪ The termination of FWD access fee has a lower priority than depositors and debt holders and in the hierarchy same as ordinary shares in the case of bankruptcy

▪ No commission rate change on existing product, and align with industry’s practices

▪ Profit sharing in every policies sold with no minimum threshold

▪ Profit sharing based on different margin tiers

Implications

▪ With access liquidity, less

pressure in deposit level

▪ Raise fee up ~15% and Fee/EA

up ~20 bps

▪ Increase net profit 10-15%

▪ Additional capital-like buffer

(similar character to Additional

Tier 1)

▪ Better profit sharing scheme

that reflect true performance

1

2

3

+

+▪ Contribute to fee income

similar to pre-renewal and are comparable to industry

Key Terms & Conditions

Operating expenses increased from business volume & investment

12

➢ 9M17 total income increased 7.1 % YoY

➢ operating expenses increased 6.7% YoY from;

▪ Software maintenance expense

▪ HR expense, revenue sharing from higher business volume

▪ Marketing expense form both retail and commercial to

support business volume and new campaign

-0.4%

QoQ

-1.7%

QoQ

+7.1% YoY

+6.7% YoY

Operating Income and Operating Expense

(THB mn)

➢ 3Q17 total income slightly declined by 0.4% QoQ

▪ The QoQ drop was from the recognition of access fee

for 1H17 in previous quarter

▪ If excluded the access fee, total income showed an

improvement of 3.4% QoQ

➢ Operating expense dropped 1.7% QoQ

PPOP improved YoY, reflected earnings capability

13

Additional growth of fee income will support quality earning approximately 15% on top of revenue for

15 years onwards,

➢ Reflecting the positive momentum in the Bank’s earnings capability (PPOP)

▪ For 9M17, PPOP was THB14,947 mn, +8.1% YoY

▪ PPOP was THB5,048 mn in 3Q17, -1.7% QoQ

-1.7% QoQ

8.1% YoY

Pre-Provision Operating Profit (PPOP)

(THB mn)

Cost to income ratio remained in target

14

➢ For 9M17, Cost to income ratio was stable at 46% in line with the Bank’s target

Cost to Income Ratio

AGENDA

15

Asset Quality

2017 Target

9M17 & 3Q17 Financial Performance

NPL formation, NPL resolution & Credit cost became more stabilized

16

➢ Natural resolution remained slow

➢ TMB continued to proactively write off by THB2.3 bn, in

in 3Q17 to limit downside risk and keep the balance

sheet clean

➢ Overall credit cost was set in line with the movement of

formation and proactive resolution

NPL Formation

NPL Resolution

Formation from restructured loan Formation from new NPL

% Total formation

% New NPL formation➢ NPL formation dropped to 2.2% in 3Q17 and has been

more stabilized

➢ Formation from new NPL has moved in a range of

0.8%-1.0% since 4Q16 and slightly dropped from last

quarter to 0.9%

➢ Formation from restructured loan also declined to

1.4% from 2Q17

Credit cost

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Dec-16 Mar-17 Jun-17

P-Restructured P-Rescheduled P-Normal

Prudence in loan portfolio management

17

➢ Pass loan portfolio stayed fairly stable at 94%

➢ SM loan slightly rose from previous quarter to 3.4%

➢ The Bank has policy to control possible impaired loans

which include both restructured and rescheduled loans

➢ As of Sep-17, possible impaired loan remained stable

at 4.8%

➢ NPL reduced and remain at low level

Loan Portfolio

concession rate

loan 1.5%

Note: Bank-only financial statement

Sep-17Mar-17 Jun-17

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

Dec-16 Mar-17 Jun-17

P-Restructured P-Rescheduled SM-Normal

P-Normal

P-Rescheduled

P-Restructured

SM-Normal

SM-RescheduledSM-Restructured

TCG claimable

NPL

94.8% 94.1%

3.4%2.7% 3.1%

2.44%2.52% 2.55%

94.4%

0.6%1.5%

0.8%0.2%2.5%

0.5% 0.5% 0.5%

91.9%

1.94%

Dec-16 Jun-17 Sep-17

Written-off

loan22 bn 26 bn 28 bn

NPL ratio reduced to 2.44%

18

➢ NPLs stayed relatively stable in 3Q17 with NPL ratio at 2.44% as of Sep-17

➢ TCG claimable was approximately 20% of total NPLs

3.8 bn 3.6 bn TCG claimable3.5 bn

19

Maintained prudent provision and coverage ratio

➢ To accommodate extra write-offs under slow NPL

resolution environment, TMB set aside THB2,391

mn of provision or credit cost of 154 bps in 3Q17

in line with expectation

➢ For 9M17, provision was THB6,914 mn or credit

cost of 149 bps

(Note: written-off loan was required to set up 100% provision,

disregarded of collateral value)

➢ Coverage ratio stayed at 141% as of Sep-17,

remained in target range and reflected prudent

provisioning

Net profit continued on positive trend

20

➢ Net profit was THB2,003 mn in 3Q17, -14.0% QoQ

➢ For 9M17, net profit was THB6,429 mn (+5.6% YoY), represented an ROE of 10.0%

+5.6%

-14.0%

21

➢ Capital ratios are well above BoT’s requirements

▪ As of Sep-17, CAR was at 17.9%

▪ Tier I and Core Tier I were at 13.6%

➢ Note that the decline of CAR and Tier 1 ratios as of Jun-17 was due mainly to an increase in receivables*

(100% risked- weight) from the renewal of contract with FWD

CAR and Tier I remained at strong levels

AGENDA

22

Asset Quality

2017 Target

9M17 & 3Q17 Financial Performance

2017 Target

23

Key ratios 3Q17 9M17 Actual 2017 Target

Performing loan growth 0.4% QoQ 4.4% YTD 8-10%

Deposit growth 1.0% QoQ 1.4% YTD 5-7%

Net interest margin (NIM) 3.11% 3.16% 3.1%-3.2%

Net fee income growth -1% QoQ 32% YoY 20-30%

Cost to income ratio 46% 46% 45-47%

ROE 9.2% 10.4% 10%-12%

NPL ratio 2.44% 2.44% 2.3-2.5%

Coverage ratio 141% 141% 140-150%

Credit cost (annualized) 154 bps 149 bps 140-150 bps

24

TMB Bank Public Company Limited

3000 Phahonyothin Road

Chatuchak, Bangkok 10900

TMB Website : www.tmbbank.com

IR Webpage : www.tmbbank.com/ir

Important Disclaimer

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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.