TMB B k PCLTMB Bank PCL.
2Q12 & 1H12 performance update2Q12 & 1H12 performance updateOn the right track
Analyst and investor meeting27 July 201227 July 2012
Make THE Difference
Make THE Difference
Revisit TMB’s aspirationsp What’s happening at TMB
2Q12 and 1H12 results What we have achieved and 2012 plan
Appendix Product update Product update TMB selected financial results Peer comparisonp
[3]
TMB aspirations: To be the leading bank with 14% ROE by 2014Make THE Difference
The Leading Thai Bank with World Class Financial Solutions
Market leadership
Competitive scale (14% deposit market share)
Sustained profitability
Top quartile shareholders’ return (ROE ~ 14%)
Strong funding structure (30% CASA, diversified and transaction‐based)
( )
Sustainable revenue mix:≥40% contribution from consumer banking
and ≥35% contribution from non interest incomeMain bank status (~20% customer market share in
wholesale/SME/retail segments)
and ≥35% contribution from non‐interest income
Customers
Top tier satisfaction/Engagement level
Regulators
‘Good’ Rating
Employees
Employer of ChoiceFor Financial Service
[4]
g g
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 • New standards for customer
service
• Branch transformation
• End‐to‐end process
• HR transformation
• Risk management
excellence
Product expansion
Channel enhancement
Brand enhancement
service
• New standards for financial management
• TMB group offering
[5]
Risk management
Make THE Difference
Revisit TMB’s aspirationsp What’s happening at TMB
2Q12 and 1H12 results What we have achieved and 2012 plan
Appendix Product update Product update TMB selected financial results Peer comparisonp
[6]
2Q12 results: On the right trackMake THE Difference
2Q12 results confirmed the upward trend of core operations. PPOP rose by 28% YoYCore operation
NIM consistently improves from structural changes resulted from the bank’s strategic moves implemented during the last 3 years. NIM rose by 22 bps, from 2.45% 2Q11 to 2.67% 2Q12
Yield improvement: from increase in in high‐yielded loans, rose by 60 pbs, 4.36% 2Q11 to 4.96% Q
Net interest margin
Yield2Q12
Good containment of funding cost: from structural changes in deposit mix with clear understand customers’ need , rose by 27 pbs, from 1.37% 2Q11 to 1.64% 2Q12 of which theincrease was 18 bp less than the increase of industry average over the same period
Funding costincrease was 18 bp less than the increase of industry average over the same period
Non‐interest income has picked up the pace, showing 16.9% growth YoY from core products such as bancassurance and credit‐related fee
ll k i d l 6 i h 8 i d d 6
Non‐interest income
C Well on track. Cost increased only 5.6% YoY. With 12.8% revenue increase, CI dropped to 56.9%
ROE of 9.5% apparently on the right track
Cost
ROE
Loan growth Performing loan growth of 6.1% YTD from growth in high yield segment i.e. small enterprise
Deposit growth of 7.2% YTD led by no‐fixed account
Loan growth
Deposit growth
Downside risk limited. Steadily reduction of NPL (stood at 5.5% for conso and 5.1% for bank only basis) while coverage ratio well improved to 79%
[7]
Asset quality
Economic landscape: V‐Shape recovery in 2H12 Make THE Difference
Thai economy is expected to grow sharply by 8.7% yoyin 2H12 due partly low base effect while main drivers 15 0%
GDP GDP growth, YoY
GDP growth, Seasonally adjustedin 2H12 , due partly low base effect while main drivers are private consumption, investment and a full recovery in manufacturing sector.
For 2012 TMB Analytics anticipated the economy to
3.2% 2.7% 3.7%
0.30%2.0% 0.2% 0.5%
11.0%
%
5.0%
10.0%
15.0%
For 2012, TMB Analytics anticipated the economy to grow by 5.0%. Major risks, especially for export sector, are from key economies, the Euro area, the US and China .
‐8.9%
‐10.7%‐10.0%
‐5.0%
0.0%
1Q11 2Q11 3Q11 4Q11 1Q12
Headline Inflation was reported at 2.56% yoy in June, down from 3.0% in May. TMB analytics has revised down 2012 inflation projection to 2.5% due to lower energy prices.
‐15.0%
4.00%
Policy Rate Policy Rate
gy p
The Monetary Policy Committee has kept its policy rate at 3.0% in its latest meeting on Jul 25.
1.75%2.00%
2.25%2.50%
2.75%3.00%
3.25%3.50%
3.25%3.00%
2.00%
2.50%
3.00%
3.50%
In our view, the policy rate tends to be maintained at 3.0% for the rest of the year. For any changes in policy direction, we have to keep a close eye on downside risks from overseas.
1.50%
0.00%
0.50%
1.00%
1.50%
0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2
Source: BOT, NESDB, The company [8]
Jul‐1
0
Aug‐10
Sep‐10
Oct‐10
Nov‐10
Dec‐10
Jan‐1
Feb‐1
Mar‐1
Apr‐1
May‐1
Jun‐1
Jul‐1
Aug‐1
Sep‐1
Oct‐1
Nov‐1
Dec‐1
Jan‐1
Feb‐12
Mar‐12
Apr‐12
May‐12
Jun‐12
Jul‐1
2Q12 result: Core operating result and net fee income still enhanced strong QoQ growth
Make THE Differenceenhanced strong QoQ growth
Consolidated net profit of THB1,263 million in 2Q12 THB million
Consolidated net profit and ROAENet profit for the period attributable to equity
rose by 5.7%YoY and 22.4%QoQ The growth was from strengthening core operation
from increase in both interest and non‐interest income
1,195
750
969 1,032
1,263
9.6%
7 8%9.6%
800
1,000
1,200
1,400
8.0%
10.0%
12.0%
p p q yholders of the parent (LHS)ROAE (RHS)
income. 2Q12 ROAE was 9.6%, rose by 180 bps from 1Q12
while ROAA increased to 0.7%5.9%
7.4% 7.8%
200
400
600
%
2.0%
4.0%
6.0%
0 0.0%2Q11 3Q11 4Q11 1Q12 2Q12
0.8%
ROAA ROAA
0.8%
0 4%
0.6% 0.6%
0.7%
0.4%
0.5%
0.6%
0.7%
0.4%
%
0.1%
0.2%
0.3%
0.4%
Source: consolidated financial statements [9]
0.0%2Q11 3Q11 4Q11 1Q12 2Q12
2Q12 result: Broaden NIM from healthier loan yield and well managed deposit cost
Make THE Differencemanaged deposit cost
Net interest income (NII) consistently increased. In THB million
Net interest income and NIM Net income from interest (NII) (LHS)
Net interest margin (NIM) (RHS)
2Q12, it increased by 14.7%YoY and 2.9%QoQ 2Q12 NIM rose by 16 bps QoQ and 22bp YoY due to
higher yield and volume of performing loans together with well‐managed funding cost
2.45% 2.49% 2.46% 2.51% 2.67%
3,700
3,800
3,900
4,000
4,100
2.0%
2.5%
3.0%THB million
together with well‐managed funding cost
3,532 3,747
3,868 3,938 4,051
3,300
3,400
3,500
3,600
3,700
0.5%
1.0%
1.5%
3,200 0.0%2Q11 3Q11 4Q11 1Q12 2Q12
NIM, Cost of deposit and YieldYield on Avg. earning assets Cost of deposit Net interest margin (NIM)
4.36% 4.66% 4.82% 4.84% 4.96%
2 45% 2 49% 2 46% 2 51% 2.67%%
4.0%
5.0%
6.0%
1.37% 1.68% 1.86% 1.73% 1.64%
2.45% 2.49% 2.46% 2.51% 7
0 0%
1.0%
2.0%
3.0%
Source: consolidated financial statements [10]
0.0%2Q11 3Q11 4Q11 1Q12 2Q12
2Q12 result: Fee income enhanced from credit‐related and bancassurance
Make THE Differencebancassurance
For 2Q12, non interest incomes rose by 8.4%YoY and THB million
Non interest incomes Net fee and service incomeGains on tradings and FX transactionsGains on investmentsG i l f 1.7%QoQ due to net fee and service income
enhancement Net fee and service income increased by 16.9%YoY
and 16.4%QoQ, was mainly from improvements of 407 528 411 427
405 11
59 1 17 18
3
101 116 26
24 48
214
23 57
27 96
70
61 134 58
1,500
2,000
THB million Gains on sale of assetsDividend incomeOthers
and 16.4%QoQ, was mainly from improvements of 40%QoQ credit‐related fee and 15%QoQ mutual fund and Bancassurance947 944 931 951 1,107
407
0
500
1,000
2Q11 3Q11 4Q11 1Q12 2Q12
Net fee and service income Fees and service incomeFees and service expensesNet fee and service income
2Q111,512
3Q111,916
4Q111,543
1Q121,611
2Q121,639
1,363 1,384 1,370 1,432 1,558
1,107 1 000
1,200
1,400
1,600
1,800THB million
Net fee and service income
416 440 439 480 450
947 944 931 951
0
200
400
600
800
1,000
Source: consolidated financial statements [11]
02Q11 3Q11 4Q11 1Q12 2Q12
2Q12 result: Cost to income ratio improvedMake THE Difference
For 2Q12, non interest expenses rose slightly by THB million
Non interest expensesPersonnel expenses Directors' remuneration
5.6%YoY due to higher number of head counts and incremental annual salary, loss on impairment of NPA and marketing campaign
And 6.7%QoQ increase mainly due to loss on 7
7 8 661
718
600 637 201
208
220
219 232 799
1,007 685 899
2,000
2,500
3,000
3,500Premises and equipment expenses Taxes and duties
Other expenses
And 6.7%QoQ increase mainly due to loss on impairment of NPA from a NPA sale campaign
Higher growth of revenue led to the improvement in cost to income ratio to 56.9% from 59.0% in 1Q12
d 6 QQ
1,625 1,296
2,320 1,751 1,702
7 7
7 8 633
0
500
1,000
1,500
Q Q Q Q Q and 64.7 Q2Q11.
Cost to income ratio and operating cost to income ratio
2Q113,294
3Q113,150
4Q113,982
1Q123,262
2Q123,479
64.39%
52 14%
76.50%
58.99% 56.88%50.0%
60.0%
70.0%
80.0%Cost to income ratio (proforma) Operating cost to income ratio (internal)
65.31% 55.63% 73.60% 58.78% 61.14%
52.14%
0.0%
10.0%
20.0%
30.0%
40.0%
Source: consolidated financial statements [12]
2Q11 3Q11 4Q11 1Q12 2Q12
2Q12 result: Quality loan growth driven by SE segment Make THE Difference
2Q12 consolidated gross loans increased by 5.1%QoQ THB million
Total loans and loan growth Gross loans (LHS)Loan growth (RHS)
or 6.0%YTD driven by commercial lending in especially from small enterprise portfolio
Based on bank‐only basis, performing loan growth was recorded at 6.1%QoQ and 6.9%YTD. The growth
378,496 387,889 397,596 400,803 421,267
5.11%
4.0%
5.0%
6.0%
7.0%
250,000
300,000
350,000
400,000
450,000THB million
was recorded at 6.1%QoQ and 6.9%YTD. The growth was mainly driven by corporate and small enterprise segment
In small enterprise segment alone grew more than b ll f b
0.07%
2.48% 2.50%
0.81%
0 0%
1.0%
2.0%
3.0%
0
50,000
100,000
150,000
200,000
250,000
THB10 billion from 31 December 2011 or 23.3%YTD
Total loan breakdown (4Q11) NPL Performing loan
WBG SME
0.0%02Q11 3Q11 4Q11 1Q12 2Q12
Total loan breakdown (2Q12) NPL Performing loanWBG SME
WBG
WBG SME
RBG
WBG51 9%
RBG
NPL5.2%
53.4%
SME26.9%
RBG19.7%
PLNPL5.2%
51.9%
SME29.0%
RBG19.1%
PL
Source: consolidated financial statements, *total performing loan breakdown is based on bank only basis [13]
2Q12 result: Consistent growth in deposit from success of products launched
Make THE Differenceproducts launched
Deposits of THB484.8 billion rose by 7.0%QoQ or THB million
Deposit and deposit growth Total deposit (LHS)
Deposit growth (RHS)
7.2%YTD mainly succeeded in TMB products such as “TMB No Fixed Account” but offset by maturity of time deposit
Proportion of No Fixed and ME accounts increased
451,206 451,385 452,316
453,179 484,843 7.0%
6.0%7.0%8.0%9.0%10.0%
400,000
500,000
600,000THB million
Proportion of No Fixed and ME accounts increased to 23.1% from 20.5% in 1Q12
CASA ratio also rose to 42.3% compared to 41.9% in 1Q12
2.7%
0.0% 0.2% 0.2%0.0%1.0%2.0%3.0%4.0%5.0%
0
100,000
200,000
300,000
LDR and LDR with BE were 86.9% and 86.5% respectively reflecting strong liquidity
0.0%02Q11 3Q11 4Q11 1Q12 2Q12
100%
Deposit mix Current Saving No Fixed & ME FixedLDR Loan to deposit ratio (LDR)
Loan to deposit ratio (LDR) ‐ included bill of exchange
15.3% 17.0% 20.5% 23.1%
45.1% 41.5% 39.8% 37.6% 34.6%
50%
60%
70%
80%
90%
2.3%
83.9%85.9%
87.9% 88.4%86.9%
84.1% 85.0%87.0% 86.5%85.0%
90.0%
9.6% 11.6% 10.7% 9.8% 12.6%
43.0% 31.6% 32.5% 32.1% 29.7%
0%
10%
20%
30%
40% 80.9%
70.0%
75.0%
80.0%
Source: consolidated financial statements, No fixed account launched since May 2011, Deposit mix based on bank‐only basis [14]
2Q11 3Q11 4Q11 1Q12 2Q127
2Q11 3Q11 4Q11 1Q12 2Q12
2Q12 result: Continued drop in NPL and NPAMake THE Difference
THB million
Non performing loans Non performing loans (LHS)
Gross NPL ratio (RHS)THB million
Net properties foreclosed (LHS)
Percentage of gross NPA (RHS)Properties foreclosed
32,633
31,647
30,470
6.51% 6.66%
5.67% 5.84% 5.58%
30,000
31,000
32,000
33,000
4.0%
5.0%
6.0%
7.0%
THB million
5,035
4,070 3,640
3,225 2 741
4,000
5,000
6,000
2.5%
3.0%
3.5%
4.0%THB million
29,828
28,169
26,000
27,000
28,000
29,000
%
1.0%
2.0%
3.0%
4.0% 2,741
0.7% 0.6% 0.5% 0.5% 0.4%
0
1,000
2,000
3,000
0 0%
0.5%
1.0%
1.5%
2.0%
Consolidated NPL was THB28,1 billion, dropped by 7.6%QoQ or 5.6%YTD while for Bank‐only were THB 26 billion or dropped by 7 9%QoQ or 5 2%YTD The NPL decrease from repayment resolution and write off of corporate customer
25,000 0.0%2Q11 3Q11 4Q11 1Q12 2Q12
0 0.0%2Q11 3Q11 4Q11 1Q12 2Q12
dropped by 7.9%QoQ or 5.2%YTD . The NPL decrease from repayment, resolution and write‐off of corporate customer
Consolidated NPL ratio decreased to 5.58%, while bank‐only basis to 5.17%
With prudent provisioning policy, coverage ratio improved to 79.0% on consolidated basis and 81.0% for bank‐only basis
NPA continuously dropped by 24.7%YTD mainly due to the on‐going properties foreclosed sales in line with the bank’s target to minimize foreclosed properties
NPA ratio was 0.41%, decreased from 0.51% as at 31 Dec 11
Source: consolidated financial statements [15]
2Q12 result: Strengthen in provisioning, coverage ratio rose to 79 0%
Make THE Difference79.0%
NPL Coverage ratio NPL Coverage ratio Specific provision to NPL Specific provision to NPL
63.7%70.8% 72.9% 74.0%
79.0%
50%
60%
70%
80%
90%
36%
45% 44% 44% 44%
25%
30%
35%
40%
45%
50%
0%
10%
20%
30%
40%
0%
5%
10%
15%
20%
25%
0%2Q11 3Q11 4Q11 1Q12 2Q12
0%
2Q11 3Q11 4Q11 1Q12 2Q12
General provision to performing loans General provision to performing loansAllowance/BOT requirement Allowance/BOT requirement
2.6%2.2% 2.3% 2.4% 2.5%
2.0%
2.5%
3.0%
158%138% 147% 147% 140%
100.0%
120.0%
140.0%
160.0%
180.0%
0.5%
1.0%
1.5%
20.0%
40.0%
60.0%
80.0%
100.0%
[16]Source: consolidated financial statements, Allowance per BoT requirement is based on bank only basis
0.0%
2Q11 3Q11 4Q11 1Q12 2Q120.0%
2Q11 3Q11 4Q11 1Q12 2Q12
2Q12 result: Strong liquidity and capitalMake THE Difference
%
Tier I Capital18.72%
Capital adequacy ratio (CAR)
11.59% 11.68% 11.08% 11.19% 11.47%
8%
10%
12%
14%16.77% 16.90% 16.08% 16.24%
18.72%
8 50% 8 50% 8 50% 8 50% 8 50%10%
15%
20%
4.25% 4.25% 4.25% 4.25% 4.25%
%
2%
4%
6%
Tier I Capital Minimum BOT requirement
8.50% 8.50% 8.50% 8.50% 8.50%
0%
5%
10%
Capital adequacy ratio (CAR) Minimum BOT requirement
CAR under Basel II remained solid at 18.72% due to subordinate debenture issuance in 2Q12, which b h i hil i i Q d i ll b i i
0%2Q11 3Q11 4Q11 1Q12 2Q12
0%2Q11 3Q11 4Q11 1Q12 2Q12
brought up Tier II at 7.25% while Tier I was 11.47% in 2Q12. CAR and Tier 1 well above BoT minimum requirement.
Source: consolidated financial statements, CAR and Tier I base on bank only [17]
1H12 results summaryMake THE Difference
PPOP improved by 33.5% from last yearCore operation
NIM improved by 24bp from 2.35% to 2.59% from yield improvement and well‐managed funding cost
ff
Net interest margin
Non‐interest Non‐interest income increased by 4.1%. Fee and service rose by 10.8% but offset less gain on
trading
Well on track Cost increased only 3 6% YoY With 15 4% revenue increase CI dropped to 57 9%
Non interest income
Cost Well on track. Cost increased only 3.6% YoY. With 15.4% revenue increase, CI dropped to 57.9%
NPL decreased THB1,659 million. NPL ratio stood at 5.58%. Coverage ratio rose to 79%. Asset quality and coverage
ratio
[18]
1H12 results highlight: Strengthen in core operating and fee & service income
Make THE Difference& service income
Net profit for the period attributable to equity holders of the parent (Consolidated) 10.0%
ROAE&ROAA ROAE ROAA
2,291 2,295 2,000
2,500THB million
holders of the parent (Consolidated)Net profit for the period attributable to equity holders of the parent (Consolidated)
9.3%8.7%
5 0%
6.0%
7.0%
8.0%
9.0%
10.0%
500
1,000
1,500
0.7% 0.7%1.0%
2.0%
3.0%
4.0%
5.0%
0
1H11 1H12
Net fee and service income Fee and service incomesFee and service expenses
0.0%
1H11 1H12
NII&NIM Net interest income (NII) (LHS)
Net interest margin (NIM) (RHS)
2,688 2,989
2,500
3,000
3,500THB million
Net fee and service income
6,620 7,989
2.35%2.59%
2.00%
2.50%
3.00%
6,000
7,000
8,000
9,000
THB milliong ( ) ( )
831 931
1,857 2,059
500
1,000
1,500
2,0006,620
0.50%
1.00%
1.50%
1,000
2,000
3,000
4,000
5,000
Source: consolidated financial statements [19]
0
1H11 1H120.00%0
1H11 1H12
1H12 results highlight: Quality growth of loans and depositMake THE Difference
THB million
Deposit and deposit growth Total deposit Deposit growth
THB million
Total loans and loan growth Gross loans (LHS) Loan growth (RHS)
451,206 484,843
14.5%
10.0%
12.0%
14.0%
16.0%
400,000
500,000
600,000THB million
8.16%
11.30%
8.0%
10.0%
12.0%
250 000
300,000
350,000
400,000
450,000THB million
7.5%
0 0%
2.0%
4.0%
6.0%
8.0%
0
100,000
200,000
300,000378,496 421,267
2.0%
4.0%
6.0%
50,000
100,000
150,000
200,000
250,000
0.0%0
1H11 1H12
Deposit mix Current Saving No Fixed FixedLoan breakdown (bank‐only) Corporate SME Retails
0.0%0
1H11 1H12
2 3% 23 1%
45.1%34.6%
60%
70%
80%
90%
100%
26.2% 30.3%
20.1% 18.9%
60%
70%
80%
90%
100%
9 6% 12.6%
43.0% 29.7%
2.3% 23.1%
10%
20%
30%
40%
50%
53.7% 50.8%
10%
20%
30%
40%
50%
Source: consolidated financial statements [20]
9.6% 12.6%0%
1H11 1H12
0%
1H11 1H12
1H12 results highlight: Improved asset quality and solid capitalMake THE Difference
LDR Loan to deposit ratio (LDR)
Loan to deposit ratio (LDR) ‐ included bill of exchangeTHB million
Non performing loans Non performing loans (LHS)
Gross NPL ratio (RHS)
83.89% 86.89%
80.85%86.46%
60.0%
80.0%
100.0%
32,633
28,169
6.51%
5.58%
20,000
25,000
30,000
35,000
4.0%
5.0%
6.0%
7.0%THB million
0.0%
20.0%
40.0%
5,000
10,000
15,000
,
1.0%
2.0%
3.0%
4
Properties foreclosed Net properties foreclosed (LHS)
Percentage of gross NPA (RHS)Capital adequacy ratio & Tier I
0.0%1H11 1H12
0 0.0%
1H11 1H12
5,035
4,000
5,000
6,000
2.5%
3.0%
3.5%
4.0%THB million
Percentage of gross NPA (RHS)
16.77%18.72%
12.00%
14.00%
16.00%
18.00%
20.00% Capital adequacy ratio (CAR) Tier I Capital
2,741
0.7%0.4%1,000
2,000
3,000
0.5%
1.0%
1.5%
2.0%
5
11.59% 11.47%
%
2.00%
4.00%
6.00%
8.00%
10.00%
Source: consolidated financial statements, CAR and Tier I base on bank only [21]
0 0.0%
1H11 1H12
0.00%
1H11 1H12
Make THE Difference
Revisit TMB’s aspirationsp What’s happening at TMB
2Q12 and 1H12 results What we have achieved and 2012 plan
Appendix Product update Product update TMB selected financial results Peer comparisonp
[22]
2012 Agenda: Become transactional banking excellenceMake THE Difference
Deliver Transactional Banking efficiency & convenience to the customers Deliver Transactional Banking efficiency & convenience to the customers
Continue to acquire quality customers in selected segments through transactional Continue to acquire quality customers in selected segments through transactional banking excellence
Increase share of wallet of existing customers through better understanding of customer needs
Further reduction of NPL and improved risk management
Improve operational efficiency thereby reducing cost / income ratio
23
TMB deposit account Make THE Difference
p
บัญชีเพื่อการทําธุรกรรมTransactional Banking Account
บัญชีเพื่อการออมและลงทุนSavings & Investment AccountTransactional Banking Account
Provide transactional convenience that outweigh
g
Provide higher interest rate for saving and investing than convenience that outweigh
lower saving interest ratesaving and investing than traditional saving account with higher flexibilitywith higher flexibility
[24]
Retail customers Make THE Difference
บัญชีเพื่อการทําธุรกรรมTransactional Banking Account
บัญชีเพื่อการออมและลงทุนSavings & Investment Account
No Fee Savings Account dNo Fee Savings AccountNo Limit Debit Card
No‐Fixed Saving Account
Interest Rate 0.125% 2.25% 3.00%
TMB “Send to Save”
[25]
Business customers Make THE Difference
TMB empowers business customer by adding value to Transactional Account to best suit with customers’ Transactional Account to best suit with customers
business and offer true value
Enable TMB customers to use TMB branch network Enable TMB customers to use TMB branch network without limitation
Any customer is the Bank’s customer. They can use any branch they want.
[26]
TMB One Bank One Account : Benefit to customerMake THE Difference
เงินคงเหลือในบัญชี เปลี่ยนเปนมูลคาที่มากกวาในการทําธุรกรรมTMB One Bank One Account เงินคงเหลือที่เกินยอดขั้นต่ํา จะไดรับอัตราดอกเบี้ยพเิศษ เงนคงเหลอทเกนยอดขนตา จะไดรบอตราดอกเบยพเศษ
เลือกแพคเกจที่เหมาะกับธรกิจ
ยอดเงินคงเหลือ
อัตราดอกเบี้ยที่ไดจาก ยอดคงเหลือเทายอดขั้นต่ําที่
อัตราดอกเบี้ยที่ไดเมื่อยอดคงเหลือมากกวา ผลประโยชนเพิ่มเตมิที่ไดเหมาะกบธุรกจ ขั้นต่ํา เทายอดขนตาท
กําหนด ยอดขั้นต่ําที่กําหนด
•บญัชีในชื่อ นิติบคคล: ยกเวนคาธรรมเนียมการโอน
Small Package
150,000 บาท 0.125% ตอป
•บญชในชอ นตบคุคล:0.375% ตอป
•บญัชีในชื่อ เจาของ:2.25% ตอป (อัตรานี้ถึง
• ยกเวนคาธรรมเนยมการโอนเงินไปตางธนาคารรวม 10 ครั้ง ตอเดือน
• ซื้อเช็ค 1 เลม แถม 1 เลมทุกครั้ง31 ก.ค. 2555) ครง
•บญัชีในชื่อ นิติบคุคล: • ยกเวนคาธรรมเนียมการโอน
Large Package
350,000 บาท 0.125% ตอป
0.375% ตอป•บญัชีในชื่อ เจาของ:2.25% ตอป (อัตรานี้ถึง
31 ก ค 2555)
ยกเวนคาธรรมเนยมการโอนเงินไปตางธนาคารรวม 30 ครั้ง ตอเดือน
• ซื้อเช็ค 1 เลม แถม 1 เลมทุกครั้ง
[27]
31 ก.ค. 2555)
Transactional banking: Well‐managed of funding cost from understanding transactional banking model
Make THE Differenceunderstanding transactional banking model
0.3% 0.3% 0.4% 0.2%100.0%
Deposit mix CASA One Bank One Account* No Fixed & ME TD Other
The bank’s deposit mix has shift 15.3% 17.0% 20.5% 23.1%
41.2% 39.5% 37.2% 34.5%
3 3 4
50.0%
60.0%
70.0%
80.0%
90.0%
43.1% 43.2% 41.9% 42.1%
0.1%5 3
0.0%
10.0%
20.0%
30.0%
40.0%
5
Deposit Cost (%) TMB GAP (TMB vs Industry average)
0.0%
3Q11 4Q11 1Q12 2Q12
As a result, cost of fund of TMB has been better managed
1.14%1.37%
1.69%1.87% 1.73% 1.64%
1.50%
2.00%
2.50%
4
0.12% 0.17% 0.23% 0.22% 0.16%‐0.02%
0 00%
0.50%
1.00%
28
-0.50%
0.00%
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12
One Bank One Account launched at end of May 2012
Channel efficiency & Product Feature: A successful subordinated debt offering
Make THE Differencesubordinated debt offering
TMB f ll i d THB billi f b d bt t i t t t f % i TMB successfully raised THB10.35 billion of sub debt at interest rate of 4.5% in May which put our CAR to reach 18.2% at the end of Jun 12
Target Size Issue Size Issue TermIssuers Issue Date Coupon Payment
(THB mn) (THB mn) (years)
Quick Interest:
p y
Customers get the interest upfront every year
TMB May 18, 25 10,000 10,350 4.50%10
[29]
Lean organization model: Empowering organization Make THE Difference
1. Value & Belief 4. Benefits Realization• TMB way• Brand commandment• Empowerment
4. Benefits Realization• Measure results, not activity• Financial benefits• Productivity improvement• Human capital improvement (through• Human capital improvement (through
capacity or FTE model)
3 J b St t d C2. Business Processes• Focus on value adding process that
customers pay for• Employ ‘lean’ technique to continually
d i ‘ t ’ t f th d
3. Jobs, Structures and Career • Flat organization• Roles of boss shifted from
supervising to coaching drive ‘waste’ out of the process and improve TAT
• More end-to-end job scope (less fragmented)
An Empowering Organization requires efficient processes, well designed
[30]
p g g q p , gjobs and structure and clear career opportunities for our people
Make THE Difference
Revisit TMB’s aspirationsp What’s happening at TMB
2Q12 and 1H12 results What we have achieved and 2012 plan
Appendix Product update Product update TMB selected financial results Peer comparisonp
[31]
SME: “TMB One Bank One Account” – draw more transactional account for SME
Make THE Differencetransactional account for SME
TMB One Bank One Account features :
minimum deposit requirement to maintain in the saving account from standard, small payment and large payment package in the amount of THB50,000, THB150,000 and THB350,000 respectively
Product benefit:d hd b h Deposit and withdraw at any branches
Cheque clearing with free of service charge for inter‐branch and inter‐region Free transfer between TMB account Product updated as of 13 July 12 : deposit balance was THB484 millionProduct updated as of 13 July 12 : deposit balance was THB484 million
[32]
Retail: “No fixed deposit by ME”Make THE Difference
“ME’s no fixed deposit” product introduction : Just like normal “no fixed deposit” with high deposit rate (3.0%*) No limit for deposit and withdraw transaction per month, Max 2 times for no fee of transfer payment p No maintenance fee for any available balance 24 hrs transaction via internet and ME call center** As of 13 July 12; almost 18 thousand active accounts3 y ;
[33]Note: *Rate as of Apr 5, 12; 3.0% for first THB10 mn and 0.5% for amount balance > THB10 mn., **Call center contact 0‐2502‐0000
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 3% interest rate
No minimum amount and deposit period requiredp p q
Customers can deposit/withdraw whenever they want (2 times per month) at the bank counter
As of 13 July 12, it increased to THB108 billion
Note: as of 1 Jun 2012 [34]
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
Most innovative valued retail products achieve transactional banking status
No fee savings accounts – performance update
Average balance account was much higher than 20K minimum balance, but will slightly decline going forward with more account acquisition
No fee savings accounts performance update
The product still able to attract new customer even after lunched for almost 2 years
[35]
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
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 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 B h / d/d i l
Bangkok Upcountry
Baht/card/day respectively
500 Baht for upfront fee
No annual fee
[36]
Retail: “TMB no slip” –service which highly reflect our customer centricity
Make THE Differencecustomer centricity
TBM no slip ‐ features
TMB is the first bank to enable transaction service (deposit and withdrawal) at teller with one ID card
This service enhances customer centricity strategy for less complexity and minimizes time consuming on paper work
With this product, TMB won Financial Insights With this product, TMB won Financial Insights Innovation Award (FIIA) for customer engagement
[37]
Retail: “TMB internet banking” – Not just online‐banking, but at TMB is new and different
Make THE Differenceat TMB is new and different …
TMB Internet Banking ‐ highlights
Open New Account Online by yourself both Savings and Term Deposit including our TMB No fixed account, TMB Up & Up term deposit, TMB Quick
te et a g g g ts
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‐i b j i di i bil h b 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. p y yNo form is needed.
TMB No Fee Savings account can be used with TMB Internet Banking to save your monthly fee expense Fi t l h t 9 M 2011 First launch as at 9 May 2011
[38]
Retail: “TMB Beep & Bill Payment” – Through clients’ monthly bill payment it is another transactional banking service
Make THE Differencebill payment, it is another transactional banking service
TMB Beep & Bill Payment ‐ features
Payment service through mobile phone and the Bank will send a SMS to alert within 2‐3 days before payment due date
eep & ay e t eatu es
payment due 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, I i l h bill TOT*International phone bill, TOT*
First launch as at 22 July 2011
Another transactional banking service that TMB ff t li t i thl bill t It fl t offers to client via monthly bill payment. It reflects
to TMB philosophy to become the Thai leading transactional banking.
[39]Note: *Start to activate in September 2011 onward
Retail: “TMB no worry saving account” – bundling between saving account with non‐secured loans
Make THE Differencesaving account with non secured loans
No Worry Saving Account ‐ features
Product bundling between saving account and working capital loan which is non‐secured loan.
Fixed income customer (20–60 years old) at minimum of THB20,000 per month
Credit limit not over 0.5 time of basis salary, THB10,000 up to THB30,00THB10,000 up to THB30,00
Convenience, withdraw 24 hours
Only ID card and required documents for new application at TMB branches
[40]
SME: “TMB 3X SME” ‐ structured products with focus on supply chain now extended to general customers
Make THE Differencesupply chain, now extended to general customers
3x structured O/D accounts for working capital
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)
Note: SBCG = Small Business Credit Corporation, a state‐owned enterprise [41]
Make THE Difference
Revisit TMB’s aspirationsp What’s happening at TMB
2Q12 and 1H12 results What we have achieved and 2012 plan
Appendix Product update Product update TMB selected financial results Peer comparisonp
[42]
Appendix: Asset growth and leverageMake THE Difference
2.0%12.0%
ROAE and ROAA ROAE (LHS) ROAA (RHS)
(X)
Liabilities to equity Liabilities to equity (X) (LHS) Growth rate (RHS)
9.6%
5.9%
7.4% 7.8%
9.6%
8% % 1.0%
1.5%
2.0%
6.0%
8.0%
10.0%
12.0%
12.5 11.8 12.7 12.4
11.7
5.79%7.58%
2.0%
4.0%
6.0%
8.0%
10.0%
8
10
12
14(X)
0.8%
0.4%0.6% 0.6%
0.7%
0.0%
0.5%
1.0%
0.0%
2.0%
4.0%
6.0%
‐5.13%
‐2.85%‐5.54%
8 %
‐6.0%
‐4.0%
‐2.0%
0.0%
2.0%
2
4
6
0.0%0.0%2Q11 3Q11 4Q11 1Q12 2Q12
THB million
Assets and asset growth Total assets (LHS) Asset growth (RHS) Equity and equity growth Total equity (LHS)
Equity growth (RHS)
5 3‐8.0%0
2Q11 3Q11 4Q11 1Q12 2Q12
6.45%
9.25%
4.00%
6.00%
8.00%
10.00%
690,000700,000710,000720,000730,000
THB million
52,282 53,310
53,311 1.60%
2.11% 1.97%
1.50%
2.00%
2.50%
52,000 52,500 53,000 53,500 54,000
THB millionEquity growth (RHS)
679,730 657,809 718,643 713,393 676,841
‐3.22%
‐0.73%
‐5.12% ‐4.00%
‐2.00%
0.00%
2.00%
630,000640,000650,000660,000670,000680,000
50,398
51,203
52,282 1.05%
0.00%
0.50%
1.00%
1.50%
49,000 49,500 50,000 50,500 51,000 51,500
Source: consolidated financial statements [43]
676,841 ‐6.00%620,000
2Q11 3Q11 4Q11 1Q12 2Q120.00%48,500
2Q11 3Q11 4Q11 1Q12 2Q12
Appendix: Selected balance sheet item breakdownMake THE Difference
Loan breakdown (bank‐only) Corporate SME Retails
100%
Deposit mix Current Saving No Fixed & ME Fixed
26.2% 27.3% 28.6% 29.8% 30.3%
20.1% 19.7% 19.5% 19.6% 18.9%
60%
70%
80%
90%
100%
15 3% 17.0% 20.5% 23.1%
45.1% 41.5% 39.8% 37.6% 34.6%
50%
60%
70%
80%
90%
100%
2.3%
53.7% 52.9% 51.9% 50.6% 50.8%
%
10%
20%
30%
40%
50%
9.6% 11.6% 10.7% 9.8% 12.6%
43.0% 31.6% 32.5% 32.1% 29.7%
15.3% 17.0% 0 5
0%
10%
20%
30%
40%
50%
0%2Q11 3Q11 4Q11 1Q12 2Q12
0%2Q11 3Q11 4Q11 1Q12 2Q12
Interest bearing liabilitiesDeposits Interbank and money market items Debentures and borrowings
Average earning asset allocationA i t b k d k t A i t t i d bt iti
5.89% 5.50%7.07% 9.16%
5.87%14.10% 12.93% 17.14% 14.39% 9.75%
60%
70%
80%
90%
100%p y g
67.59% 68.13% 67.59% 68.35% 72 81%
80%
100%
Average interbank and money market Average investment in debt securities
Average loans
80.01% 81.57% 75.79% 76.45% 84.38%
10%
20%
30%
40%
50%
15.37% 13.80% 15.55% 15.14% 11.51%
17.04% 18.06% 16.86% 16.52% 15.69%
67.59% 68.13% 67.59% 68.35% 72.81%
%
20%
40%
60%
Source: consolidated financial statements [44]
0%2Q11 3Q11 4Q11 1Q12 2Q12
3 50%
2Q11 3Q11 4Q11 1Q12 2Q12
Balance sheet Make THE Difference
Unit: THB million 2Q12 1Q12 % Δ QoQ 2Q11 % Δ YoY 1H12 12M11 YTDCash, Interbank and repurchase 126,289 149,511 ‐15.5% 146,223 ‐13.6% 126,289 160,632 ‐21.4%Investments 103,493 115,013 ‐10.0% 107,669 ‐3.9% 103,493 113,660 ‐8.9%Loans 421,298 400,819 5.1% 378,509 11.3% 421,298 397,610 6.0%Accrued interest receivables 1,045 897 16.5% 682 53.2% 1,045 777 34.6%
L All f d btf l t 8 N/A 8 N/A 8 68 N/ALess Allowance for doubtful accounts ‐22,289 ‐22,557 N/A ‐20,807 N/A ‐22,289 ‐21,768 N/ALoans and AIlowance ‐ net 400,054 379,159 5.5% 358,384 11.6% 400,054 376,618 6.2%Properties foreclosed ‐ net 2,741 3,225 ‐15.0% 5,035 ‐45.6% 2,741 3,640 ‐24.7%Premises and equipment ‐ net 12,015 12,055 ‐0.3% 11,921 0.8% 12,015 12,052 ‐0.3%Goodwill from transferred business ‐ net 699 714 ‐2.1% 766 ‐8.7% 699 750 ‐6.8%Goodwill from transferred business net 699 714 2.1% 766 8.7% 699 750 6.8%Other assets 31,549 53,717 ‐41.3% 49,732 ‐36.6% 31,549 51,290 ‐38.5%Total Assets 676,841 713,393 ‐5.1% 679,730 ‐0.4% 676,841 718,643 ‐5.8%Deposits 484,843 453,179 7.0% 451,206 7.5% 484,843 452,316 7.2%Interbank and Money Market Items 40,839 58,632 ‐30.3% 40,152 1.7% 40,839 51,628 ‐20.9%Borrowings 56,048 85,287 ‐34.3% 79,502 ‐29.5% 56,048 102,266 ‐45.2%Other liabilities 41,800 62,985 ‐33.6% 58,472 ‐28.5% 41,800 60,152 ‐30.5%Total Liabilities 623,530 660,083 ‐5.5% 629,332 ‐0.9% 623,530 666,362 ‐6.4%Shareholders' equity 53,311 53,310 0.0% 50,398 5.8% 53,311 52,282 2.0%N t lli i t t 8 6 % 6 % 8 %Non‐controlling interest 118 110 6.7% 93 26.9% 118 104 12.9%LIABILITIES & SHAREHOLDERS' EQUITY 676,841 713,393 ‐5.1% 679,730 ‐0.4% 676,841 718,643 ‐5.8%
Source: consolidated financial statements [45]
Statement of comprehensive incomeMake THE Difference
(Unit:THB million) 2Q12 1Q12 % Δ QoQ 2Q11 % Δ YoY 1H12 1H11 % Δ YOY
Statement of Comprehensive IncomeInterest income 7,379 7,476 ‐1.3% 6,267 17.7% 14,855 11,704 26.9%Interest expenses 3,328 3,538 ‐5.9% 2,736 21.7% 6,866 5,084 35.1%
Net income from interest 4,051 3,938 2.9% 3,532 14.7% 7,989 6,620 20.7%Fees and service income 1,558 1,432 8.8% 1,363 14.3% 2,989 2,688 11.2%,55 ,43 ,3 3 4 3 ,9 9 ,Fees and service expense 450 480 ‐6.3% 416 8.3% 931 831 12.0%
Net fees and service income 1,107 951 16.4% 947 16.9% 2,059 1,857 10.9%Total other operating income 532 660 ‐19.4% 565 ‐5.9% 1,192 1,266 ‐5.9%
Non interest income 1,639 1,611 1.7% 1,512 8.4% 3,251 3,123 4.1%Total operating income 5,690 5,549 2.5% 5,044 12.8% 11,240 9,743 15.4%p g 5, 9 5,549 5 5, 44 , 4 9,743 5 4Non interest expenses 3,479 3,262 6.7% 3,294 5.6% 6,741 6,508 3.6%
Bad debt and doubtful accounts and impairment loss of debt securities 932 1,242 ‐24.9% 534 74.5% 2,174 913 138.1%Profit before income tax expense 1,279 1,046 22.3% 1,215 5.2% 2,324 2,322 0.1%
Income tax expense 9 8 8.7% 13 ‐32.6% 16 20 ‐17.6%Net profit 1 270 1 038 22 4% 1 203 5 6% 2 308 2 302 0 3%Net profit 1,270 1,038 22.4% 1,203 5.6% 2,308 2,302 0.3%
Other comprehensive income 19 ‐54 N/A ‐48 N/A ‐35 ‐84 N/ATotal comprehensive income 1,289 984 31.0% 1,154 11.7% 2,273 2,218 2.5%
Net profit for the period attributable to: Equity holders of the parent 1,263 1,032 22.4% 1,195 5.7% 2,295 2,291 0.2%
Total comprehensive income attributable to: Equity holders of the parent 1 282 978 31 1% 1 147 11 8% 2 260 2 207 2 4%Total comprehensive income attributable to: Equity holders of the parent 1,282 978 31.1% 1,147 11.8% 2,260 2,207 2.4%
Source: consolidated financial statements [46]
Net interest incomeMake THE Difference
(Unit:THB million) 2Q12 1Q12 % Δ QoQ 2Q11 % Δ YoY 1H12 1H11 % Δ YOYInterest income 7,379 7,476 ‐1.3% 6,267 17.7% 14,855 11,704 26.9%
Interest on interbank and money market items 550 806 ‐31.7% 633 ‐13.0% 1,356 1,040 30.4%Investments and trading transactions 83 65 28.0% 8 885.9% 149 16 802.0%Investments in debt securities 740 832 ‐11.0% 644 15.0% 1,572 1,158 35.7%I t t i l 6 8% 8 8 % 6 %Interest in loans 5,912 5,695 3.8% 4,982 18.7% 11,607 9,490 22.3%Others 93 78 18.7% 0 N/A 171 0 N/A
Interest expenses 3,328 3,538 ‐5.9% 2,736 21.7% 6,866 5,084 35.1%Interest on deposits 1,923 1,955 ‐1.6% 1,520 26.5% 3,878 2,772 39.9%Interest on interbank and money market items 258 306 ‐15.7% 85 201.7% 563 161 249.0%Interest on interbank and money market items 258 306 15.7% 85 201.7% 563 161 249.0%Contributions to the Deposit Protection Agency 579 509 13.7% 432 34.0% 1,087 847 28.4%Interest on debt issued and borrowings 568 768 ‐26.1% 697 ‐18.6% 1,336 1,302 2.6%
Net interest income (NII) 4,051 3,938 2.9% 3,532 14.7% 7,989 6,620 20.7%
Source: consolidated financial statements [47]
Non interest incomesMake THE Difference
(Unit:THB million) 2Q12 1Q12 % Δ QoQ 2Q11 % Δ YoY 1H12 1H11 % Δ YOYFees and service income 1,558 1,432 8.8% 1,363 14.3% 2,989 2,688 11.2%Acceptances, aval and guarantees 83 84 ‐1.4% 71 16.2% 167 142 17.5%Others 1,475 1,348 9.4% 1,292 14.2% 2,823 2,546 10.9%
Fees and service expenses 450 480 ‐6.3% 416 8.3% 931 831 12.0%Net fees and service income 1,107 951 16.4% 947 16.9% 2,059 1,857 10.9%9 9 9 9 9Gains (losses) on tradings and foreign exchange transactions 405 427 ‐5.0% 407 ‐0.5% 832 969 ‐14.1%Gains (losses) on financial instrument designated at fair value ‐25 33 ‐176.5% 0 N/A 8 0 N/AGains (losses) on investments 18 17 4.6% 11 56.1% 35 46 ‐24.1%Gains on sale of assets 24 26 ‐8.2% 3 805.3% 50 30 66.1%Dividend income 27 57 ‐52.7% 48 ‐44.1% 84 68 22.5%Others 83 100 ‐17.1% 81 2.5% 184 139 32.2%
Non interest income 1,639 1,611 1.7% 1,512 8.4% 3,251 3,123 4.1%
Source: consolidated financial statements [48]
Non interest expenseMake THE Difference
(Unit:THB million) 2Q12 1Q12 % Δ QoQ 2Q11 % Δ YoY 1H12 1H11 % Δ YOYPersonnel expenses 1,702 1,751 ‐2.8% 1,625 4.8% 3,453 3,209 7.6%Directors’ remuneration 8 7 6.8% 7 12.9% 15 14 8.9%Premises and equipment expenses 637 600 6.2% 661 ‐3.7% 1,237 1,271 ‐2.6%Taxes and duties 232 219 6.1% 201 15.3% 451 376 19.9%Loss on impairment of properties foreclosed 185 52 253 3% 137 35 0% 237 338 29 8%Loss on impairment of properties foreclosed 185 52 253.3% 137 35.0% 237 338 ‐29.8%Loss on diminution in value of other assets 45 6 617.4% 2 1687.9% 51 6 694.1%Provisions for other liabilities (reversal) 24 (13) N/A 14 70.1% 11 1 921.4%Other expenses 646 640 1.0% 646 0.0% 1,286 1,293 ‐0.5%
Total other operating expenses 3,479 3,262 6.7% 3,294 5.6% 6,741 6,508 3.6%
Source: consolidated financial statements [49]
Selected key financial ratiosMake THE Difference
Key financial ratio 2Q12 1Q12 4Q11 3Q11 2Q11P ofit bilit & ROAE 6 % 8 % % 8 % %Profitability & ROAE 9.60% 7.85% 7.42% 5.85% 9.57%
Margin ROAA 0.74% 0.59% 0.56% 0.45% 0.76%
Cost to Income 61.14% 58.78% 73.60% 55.63% 65.31%
Yield on avg earning assets 4.96% 4.84% 4.82% 4.66% 4.36%
Cost of deposit 1.64% 1.73% 1.86% 1.68% 1.37%
NIM, avg earnings assets (Internal) 2.67% 2.51% 2.46% 2.49% 2.45%
Liquidity Loan to deposit 86.89% 88.44% 87.90% 85.93% 83.89%
L d i BELoan to depsosit + BE 86.46% 86.99% 85.05% 84.12% 80.85%
Fee income Fee income/Total income 27.37% 25.80% 25.32% 24.44% 27.02%
Fee income, yoy growth 14.30% 8.08% 4.44% 19.73% 19.67%
Loan & deposit Loan yoy Growth 11 30% 5 97% 9 48% 9 35% 8 16%Loan & deposit Loan, yoy Growth 11.30% 5.97% 9.48% 9.35% 8.16%
growth Loan, qoq Growth 5.11% 0.81% 2.50% 2.48% 0.07%
Deposit, yoy Growth 7.45% 3.14% 9.59% 11.10% 14.54%
Deposit, qoq Growth 6.99% 0.19% 0.21% 0.04% 2.70%
Capital Tier I 11.47% 11.19% 11.08% 11.68% 11.59%
(Bank only) Total CAR 18.72% 16.24% 16.08% 16.90% 16.77%
Asset quality Reported NPL (THB million) 28,169 30,470 29,828 31,647 32,633
G NPL R ti 8% 8 % 6 % 6 66% 6 %
Source: consolidated financial statements [50]
Gross NPL Ratio 5.58% 5.84% 5.67% 6.66% 6.51%
NPL coverage 79.02% 73.98% 72.93% 70.75% 63.72%
Shareholder, workforce and distributionMake THE Difference
Major shareholders (as of April 2012)Number of branch
Branch Branch
Change to updateING BANK N.V.,
25.19%
Thai NVDR, 5.92%
DBS BANK A/C 003, 2.94%
457 452 459 464 464
300
350
400
450
500Number of branch
Ministry of Finance, 26.10%
JPMORGAN, 2.26%
Military group*, 2.15%
Others, 4.34%0
50
100
150
200
250
02Q11 3Q11 4Q11 1Q12 2Q12
ATM ATM Employee Employee
2,321 2,390 2,398 2,334 2,336
1,500
2,000
2,500Number of ATM
8,584 8,853 8,968 8,966 9,078 7,0008,0009,00010,000
Number of employee
500
1,000
,
01,0002,0003,0004,0005,0006,000
Source: consolidated financial statements, *Included Royal Thai Army, Thai Navy, Thai Air Force, RTA Entertainment Co.Ltd. and Military unit [51]
02Q11 3Q11 4Q11 1Q12 2Q12
02Q11 3Q11 4Q11 1Q12 2Q12
Credit ratingsMake THE Difference
Moody's Investor ServicesL T D i B
Standard & Poorsb Long Term Deposits Baa3
Short Term Debt/Deposits Prime‐3
Outlook Stable
Long Term Debt BB+
Short Term Debt/Deposits B
Bank Fundamental Strength Rating bbBank Fundamental Strength Rating‐Outlook D‐/Stable
Bank Fundamental Strength Rating bb
Outlook Positive
Local RatingFitch Rating Local RatingTRIS‐Long Term Debt A+TRIS ‐ Sub Debt ATRIS ‐ Hybrid Tier I BBB+
gLong Term IDR BBB‐
Short Term IDR F3TRIS Hybrid Tier I BBB+Fitch ‐ Long Term/Short Term A+/F1 (tha)Fitch ‐ Subordinated debt A (tha)Fitch ‐ Outlook Stable
Viability rating bbb‐
Support Rating 3
Outlook FCY Long Term IDR Stable
Note: latest reviewed as of 8 May 2012 [52]
Fitch ‐ Outlook StableOutlook FCY Long Term IDR Stable
Make THE Difference
Revisit TMB’s aspirationsp What’s happening at TMB
2Q12 and 1H12 results What we have achieved and 2012 plan
Appendix Product update Product update TMB selected financial results Peer comparisonp
[53]
Peer comparison and market share – 2Q12 Consolidated basisMake THE Difference
Asset market share Total asset (LHS)
Market share ‐9 main banks (%) (RHS)Loan market share Gross loan (LHS)
( ) ( )
2,209 2,145 2,027 1,887
19.4% 18.9%17.8%
16.6%
12%14%16%18%20%
1 500
2,000
2,500
THB billionMarket share ‐9 main banks (%) (RHS)
1,542 1,499 1,415 1 256
19.4% 18.9% 17.8%15.8%
9.6% 8 % %
16%
21%
1,200
1,400
1,600
1,800
THB billion Market share ‐9 main banks (%) (RHS)
1,035 929 677
231 224
9.1% 8.2%6.0%
2.0% 2.0%2%4%6%8%10%12%
500
1,000
1,500 1,256
758 674
421 210 154
9.6% 8.5%
5.3%2.6% 1.9%
1%
6%
11%
200
400
600
800
1,000
3 224 0%0BBL KTB SCB KBANK BAY TCAP TMB TISCO KK
Deposit market share Deposit (LHS)Market share ‐9 main banks (%) (RHS)
Revenue market share Revenue (LHS)
M k t h i b k (%) (RHS)
210 154 ‐4%0BBL KTB SCB KBANK BAY TCAP TMB TISCO KK
1,673 1,578 1,414 1,326
21.3% 20.1%18.0% 16.9%
15%
20%
25%
1,500
2,000 THB billion
Market share 9 main banks (%) (RHS)
25,876 25,063 22,054
19 774
19.6% 19.0%16.7%
15.0%
11.7%15%
20%
20,000
25,000
30,000
THB million Market share ‐9 main banks (%) (RHS)
1,326
622 570 485
107 81
7.9% 7.3% 6.2%
1.4% 1.0%
0%
5%
10%
5
500
1,000 19,774
15,490 12,137
5,690 3,196 2,736
9.2%
4.3%2.4% 2.1%
0%
5%
10%
0
5,000
10,000
15,000
Source: consolidated financial statements [54]
107 0%‐BBL KTB SCB KBANK BAY TCAP TMB KK TISCO
0%0KBANK SCB BBL KTB BAY TCAP TMB TISCO KK
Peer comparison and market share – 2Q12 Consolidated basis(Cont )
Make THE Difference(Cont.)
Loan growth (YoY) Loan to deposit ratio
26.1%
20.2% 20.0%20.0%
25.0%
30.0%258%
145%
200%
250%
300% Industry = 101%
13.1% 12.9% 12.9%11.3%
7.6% 6.4%
0 0%
5.0%
10.0%
15.0%145%
122% 118%100% 95% 95% 92% 87%
0%
50%
100%
150%
0.0%KK SCB TISCO BBL KTB BAY TMB KBANK TCAP
b
Loan loss reserve (bps) Cost to income ratio
0%TISCO KK BAY TCAP SCB KTB KBANK BBL TMB
55 53
41 36 36 34 34
29 40
50
60bps Industry = 39 bps
66.8%61.1%
49.4%44.6% 44.4% 44.3% 44.2% 43.9%
40.1%40%
50%
60%
70%
80%
29 22
0
10
20
30
0%
10%
20%
30%
40%
Source: consolidated financial statements [55]
BBL TMB BAY TCAP KK SCB KBANK KTB TISCO TCAP TMB BAY BBL TISCO KK KBANK KTB SCB
Peer comparison and market share – 2Q12 Consolidated basis (Cont )
Make THE Difference(Cont.)
Net profit Net profit (LHS)Market share 9 main banks (RHS)
Net profit growth (QoQ) Industry = 6.3%
10,074 9,367 8,874
23.2%21.6% 20.4%
16.9%
15%
20%
25%
8,000
10,000
12,000
THB millionMarket share ‐ 9 main banks (RHS)
41.6%
22.4%30%
40%
50% 4 big banks = 5.5%3 mid banks = 6.8%
2 small banks = 22.8%
7,343
3,698
1 263 1 078 920 818
8.5%
2.9% 2.5% 2.1% 1.9% 5%
10%
15%
2,000
4,000
6,00015.1%
9.9% 9.8% 7.8%4.2%
‐2.6%‐10%
0%
10%
20%
KK TMB KTB TISCO BBL BAY KBANK SCB TCAP1,263 1,078 920 818 0%0
SCB KBANK BBL KTB BAY TMB TCAP TISCO KK‐9.7%
‐20%
‐10%
ROAE & ROAA ROAE (LHS) ROAA (RHS)
O
Net interest margin
1.4%1.2%
1.9%2.1%
1.5% 1.4%1 1%
1.5%
2.0%
2.5%
%
20.0%
25.0%
30.0%ROE :Industry = 16.5%4 big = 18.5%3 mid = 10.1%2 small = 16.8%
4.33%
3.72% 3.53%3.22% 3.01% 2.81% 2.81%
2.57% 2.53%2 50%
3.00%
3.50%
4.00%
4.50%
5.00% industry = 3.09%
22.7% 21.5% 20.7% 20.2% 14.0% 13.8% 13.2% 9.5% 5.5%
1.1%
0.6% 0.5%
0.0%
0.5%
1.0%
0.0%
5.0%
10.0%
15.0%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
Source: consolidated financial statements [56]
TISCO KTB KBANK SCB BBL BAY KK TMB TCAP BAY KK KBANK SCB TISCO KTB TCAP BBL TMB
Make THE Difference
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
[57]
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.