TMB BANKTMB BANK...9M08 & 3Q08 Preliminary Results9M08 & 3Q08 Preliminary Results This presentation contains some information from other sources, that TMB Bank Public Company Limited

TMB Bank Public Company Limited 0

17 October 200817 October 2008

TMB BANKTMB BANKTMB BANK

9M08 & 3Q08 Preliminary Results9M08 & 3Q08 Preliminary Results9M08 & 3Q08 Preliminary Results

This presentation contains some information from other sources, that TMB Bank Public Company Limited does not make any representations regarding the use, validity, accuracy, or reliability of, or the results of the use of information, data but not limited to, all text, and images (“the Content”) on this presentation. Some content may contain forward looking statements, that based on management’s view upon the information currently available to us. These statement are subject to certain risks and uncertainties that could cause the actual results materially differed from what had been previously stated. The materials in this presentation shall not, and are not intended to, constitute or contain an offer to sell or the solicitation of an offer to buy, any securities of TMB Bank Public Company Limited.

Analyst PresentationAnalyst PresentationAnalyst Presentation


9M08 & 3Q08 Preliminary Results

Preliminary Result Analysis

Appendix

9M08 & 3Q08 Preliminary Results9M08 & 3Q08 Preliminary Results

Preliminary Result AnalysisPreliminary Result Analysis

AppendixAppendix


Performance HighlightsPerformance Highlights

Preliminary DataPreliminary Data

The Bank reported net profit of THB 4,434 mm in 9M08 – an increase from net loss THB 20,839 mm in the 9M07 was due mainly to:

Improve in NII from better manage of assets & liabilities.No goodwill amortization & impairment chargeLess loan loss provision charge in 2008 than that of 2007 which primarily driven from the change in BoT’s regulations in preparation for IAS39.

Performance 9M08 Performance 9M08 vsvs 9M079M07

The Bank recorded net profit of THB 1,769 mm in 3Q08 – improved from net profit THB 1,182 mm in 2Q08 was due mainly to:

Set aside lower provision for loans and contingencies in 3Q08 than that of 2Q08. In 2Q08, the Bank initiated to set aside provision for off-balance sheet contingencies so less charge in 3Q08. Decline in possible loss sharing of impaired assets transferred to TAMC - less expected loss of ~THB 300 mm. Remark – In 3Q08, the Bank reclassified provision for off-balance sheet contingencies of ~THB 800 mm from loan loss provision to provision of obligation in non-interest expenses.

Performance 3Q08 Performance 3Q08 vsvs 2Q082Q08


UnreviewedUnreviewed 9M08 & 3Q08 Highlights9M08 & 3Q08 Highlights

Income Statements Income Statements -- Bank OnlyBank Only Unit : THB mmUnit : THB mm


9M08 9M07 % 3Q08 2Q08 %

Interest income 21,939 25,998 (15.6%) 7,316 7,285 0.4%

Interest expense 9,493 14,171 (33.0%) 3,208 3,151 1.8%

Net interest income (NII) 12,446 11,827 5.2% 4,108 4,134 (0.6%)

Provision 1,217 12,572 (90.3%) (415) 822 (150.5%)

NII after provision 11,229 (744) N/A 4,523 3,311 36.6%

Non interest income 4,799 4,125 16.3% 1,241 1,641 (24.4%)

Non interest expenses 11,594 24,219 (52.1%) 3,996 3,771 6.0%

Net profit (loss) 4,434 (20,839) 121.3% 1,769 1,182 49.7%

*

* Include goodwill amortization & write off THB 12,594 mm


Consolidated Income Statements Consolidated Income Statements Unit : THB mmUnit : THB mm



9M08 9M07 % 3Q08 2Q08 %

Interest income 21,931 26,252 (16.5%) 7,342 7,193 2.1%

Interest expense 9,628 14,162 (32.0%) 3,254 3,195 1.8%

Net interest income (NII) 12,304 12,090 1.8% 4,088 3,998 2.2%

Provision 1,216 12,561 (90.3%) (414) 827 (150.1%)

NII after provision 11,087 (471) N/A 4,502 3,171 41.9%

Non interest income 5,688 5,962 (4.6%) 1,374 2,032 (32.4%)

Non interest expenses 12,175 26,047 (53.3%) 4,180 3,975 5.2%

Net profit (loss) 4,414 (20,687) 121.3% 1,666 1,158 43.9%


Balance Sheets Balance Sheets –– Bank OnlyBank Only Unit : THB mmUnit : THB mm

UnreviewedUnreviewed 9M08 Highlights9M08 Highlights


Summary Sep 08 Summary Sep 08 vsvs Dec07Dec07: : Loans: decline due mainly to a realignment through reduction of low-yield loans and loan repayment.Investment: increase due to asset management strategy to put more weight on fixed income investment but decrease weight on investment in equity securities.Deposits: decline but increasing borrowing to manage liquidity.Shareholders equity: improved from net profit and value appreciation from revaluation of the Bank’s premises.

Sep 08 Jun 08 % Dec 07 %

Investments - net 106,900 119,923 (10.9%) 95,598 11.8%

Loans 427,468 436,385 (2.0%) 466,075 (8.3%)

NPLs 67,152 66,784 0.6% 72,415 (7.3%)

Loan loss reserve (LLR) (46,724) (47,492) (1.6%) (50,559) (7.6%)

Properties foreclosed - net 18,903 18,860 0.2% 19,470 (2.9%)

Total assets 590,441 617,689 (4.4%) 619,151 (4.6%)

Deposits 433,753 435,141 (0.3%) 465,628 (6.8%)

Borrowings 70,832 79,853 (11.3%) 53,215 33.1%

Surplus on fixed assets revaluation 5,313 3,225 64.8% 3,249 63.5%

Shareholders equity 47,790 44,337 7.8% 43,322 10.3%

BV/Share 1.10 1.02 0.08 1.00 0.10(THB)


Consolidated Balance SheetsConsolidated Balance Sheets Unit : THB mmUnit : THB mm



Sep 08 Jun 08 % Dec 07 %

Investments - net 107,849 120,180 (10.3%) 96,346 11.9%

Loans 427,484 436,171 (2.0%) 464,895 (8.0%)

NPLs 70,741 70,500 0.3% 76,512 (7.5%)

Loan loss reserve (LLR) (48,255) (49,023) (1.6%) (52,114) (7.4%)

Properties foreclosed - net 21,481 21,684 (0.9%) 22,556 (4.8%)

Total assets 592,987 621,578 (4.6%) 622,161 (4.7%)

Deposits 433,500 434,846 (0.3%) 465,462 (6.9%)

Borrowings 70,832 79,942 (11.4%) 53,416 32.6%

Surplus on fixed assets revaluation 5,313 3,225 64.8% 3,249 63.5%

Shareholders equity 48,488 45,604 6.3% 44,520 8.9%

BV/Share 1.11 1.05 0.07 1.02 0.09(THB)


Key Ratios Key Ratios Unit : THB mmUnit : THB mm


Key Ratios Key Ratios –– Bank OnlyBank Only

9M08 9M07 % 3Q08 2Q08 %

Loan yield 5.4% 5.8% (0.4%) 5.6% 5.3% 0.4%

NIM 2.7% 2.3% 0.4% 2.7% 2.7% -

Fee income/assets 0.7% 0.6% 0.1% 0.7% 0.6% 0.1%

Non interest income/ total income 17.9% 13.7% 4.3% 14.5% 18.4% (3.9%)

Cost to income 67.2% 151.8% (84.6%) 74.7% 65.3% 9.4%

Fully Diluted EPS 0.10 (1.12) 1.22 0.04 0.03 0.01

Sep 08 Jun 08 % Dec 07 %

NPL ratio (Gross) 14.6% 14.4% 0.2% 15.2% (0.6%)

NPL ratio (Net) 7.3% 7.3% - 8.2% (0.9%)

LLR/NPL 69.6% 71.1% (1.5%) 69.8% (0.2%)

LDR 98.6% 100.3% (1.7%) 100.1% (1.5%)

Tier1 12.9% 11.8% 1.1% 10.6% 2.3%

CAR 17.4% 16.5% 0.9% 14.4% 3.0%

BV/share (THB) 1.10 1.02 0.08 1.00 0.10


Key Ratios Key Ratios -- ConsolidatedConsolidated

Key Ratios Key Ratios Unit : THB mmUnit : THB mm


Key Ratios Key Ratios -- ConsolidatedConsolidated

* Bank Only

****

9M08 9M07 % 3Q08 2Q08 %

Loan yield 5.4% 5.9% (0.5%) 5.7% 5.3% 0.3%

NIM 2.7% 2.3% 0.4% 2.7% 2.6% 0.1%

Fee income/assets 0.8% 0.8% - 0.8% 0.8% -

Non interest income/ total income 20.6% 18.5% 2.1% 15.8% 22.0% (6.3%)

Cost to income 67.7% 144.3% (76.6%) 76.5% 65.9% 10.6%

Fully Diluted EPS 0.10 (1.11) 1.21 0.04 0.03 0.01

Sep 08 Jun 08 % Dec 07 %

NPL ratio (Gross) 15.4% 15.2% 0.2% 16.1% (0.7%)

NPL ratio (Net) 7.9% 7.9% - 8.9% (1.0%)

LLR/NPL 68.2% 69.5% (1.3%) 68.1% 0.1%

LDR 98.6% 100.3% (1.7%) 99.9% (1.3%)

Tier1 12.9% 11.7% 1.2% 10.5% 2.4%

CAR 17.4% 16.4% 1.0% 14.4% 3.1%

BV/share (THB) 1.11 1.05 0.07 1.02 0.09




Appendix



AppendixAppendix


2.38

2.212.13 2.10

2.20

3.00

3.353.51

3.31

2.88

2.33

1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08

Net Interest Income Net Interest Income (THB mm)(THB mm) CommentaryCommentary

Continued Improvement in Core EarningsContinued Improvement in Core Earnings

Quarterly NIMQuarterly NIM Quarterly Cost of Deposits Quarterly Cost of Deposits (THB mm)(THB mm)Bank Only


2.0% 2.1%2.5% 2.5%

2.7% 2.7% 2.6% 2.7%

4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08

NIM

14,698 15,14116,442

12,30412,090

2.1% 2.1%

2.4%

0

4,000

8,000

12,000

16,000

2005 2006 2007 9M07 9M08

NII NIM 9M08 vs 9M07: Improving NII & NIM due mainly to Drop in cost of fund exceed drop in loan yield

3Q08 vs 2Q08: Improving NII & NIM due mainly to Impact from MLR increase (in 2Q08) to loan yield was recognized faster than impact from increase in fixed deposit rates to funding cost


NonNon--Interest Income BreakdownInterest Income Breakdown

(THB mm)(THB mm)

Commentary 9M08 Commentary 9M08 vsvs 9M079M07


Items 9M08 9M07 % 3Q08 2Q08 %

Gain on investments 170 453 (283) (62.4%) (330) 35 (365) -

Share of profit (loss) on equity 198 216 (17) (8.1%) 66 71 (4) (5.9%)

Fees and service income 3,858 3,955 (97) (2.4%) 1,222 1,287 (65) (5.0%)

Gain on exchange 863 853 10 1.1% 274 253 21 8.3%

Gain on sale of assets 232 - 232 N/A 59 157 (98) (62.4%)

Other income 366 485 (119) (24.5%) 83 231 (148) (64.0%)

Total Non-interest Income 5,688 5,962 (274) (4.6%) 1,374 2,032 (658) (32.4%)

Decrease in non-interest income due mainly to Gain on investments reduced from volatile market, and impairment charge in 3Q08 to securities that market prices had been below cost for a certain period. Fee income dropped slightly by THB 97 mm or 2.4% mainly from lower credit related fee


NonNon--Interest Expenses BreakdownInterest Expenses Breakdown

(THB mm)(THB mm)

Commentary 9M08 Commentary 9M08 vsvs 9M079M07


Decrease in non-interest expenses was mainly from absence of goodwill amortization & impairmentIf excluding goodwill amortization & impairment, non-interest expense would decrease by 9.5% due mainly to:

Decreased in taxes & duties from decrease in SBT tax rate Reduction of provision set aside for possible loss sharing from impaired assets transferred to TAMC. However, the increase in loss on provision of obligation was due to reclassification of provision for off-balance sheet contingencies of ~THB 800 mm from provision for doubtful accounts and bad debts

Items 9M08 9M07 % 3Q08 2Q08 %

Personnel expenses 3,782 3,539 243 6.9% 1,334 1,257 76 6.1%

Premises and equipment 1,926 1,913 13 0.7% 642 673 (30) (4.5%)

Taxes and duties 673 1,032 (359) (34.8%) 221 213 8 3.6%

Fees and service expenses 875 932 (57) (6.1%) 291 305 (14) (4.5%)

FIDF 1,404 1,656 (252) (15.2%) 457 474 (17) (3.5%)

Loss on impairment of properties foreclosed and other assets 706 717 (10) (1.5%) 356 247 109 44.2%

Loss on sale of assets - 355 (355) - - - - N/A

Loss on provision of obligation 1,198 1,633 (435) (26.6%) 350 283 67 23.5%

Goodwill amortization & impairment - 12,237 (12,237) - - - - N/A

Others 1,611 2,034 (423) (20.8%) 529 522 7 1.2%

Total 12,175 26,047 (13,872) (53.3%) 4,180 3,975 205 5.2%


715752

622593

200

400

600

800

2005 2006 2007 9M08

Asset HighlightsAsset Highlights

Loans Loans (THB (THB bnbn))

Investments Investments (THB (THB bnbn))

Total Assets Total Assets (THB (THB bnbn))

Commentary : Commentary : Movement from 2007Movement from 2007


554 541

465427

200

250

300

350

400

450

500

550

600

2005 2006 2007 9M08

Total assets decreased from :Loan THB 37 bn, or 7.9% from realigned loan mix & repaymentInvestment THB 12 bn from investment in BOT bonds

106116

96108

0

20

40

60

80

100

120

140

2005 2006 2007 9M08


Loan Outstanding Breakdown : Bank OnlyLoan Outstanding Breakdown : Bank Only

By IndustryBy Industry

Loan Growth by SectorLoan Growth by Sector

Total = THB 427 bn

By SectorBy Sector

Total = THB 427 bn


Manufacturing28%

Service11%

Banking & Finance6%

Real Estate6%

Personal consumption18%

Others10%

Public Utilities11%

W holesales & Retail10%

ConsumerTHB 75 bn

18%CorporateTHB 164 bn

38%

SMETHB 188 bn

44%

172143

71

69

72

67

466

427

148151

2007 9M08

PL Corporate PL SMEPL Consumer NPL

7.3 %5 bn

3 %2 bn

1.2 %2 bn

17.1 %29 bn


6.3% 5.9%

11.2% 11.3%

0%

2%

4%

6%

8%

10%

12%

2005 2006 2007 9M08

13.4%11.3%

16.1% 15.4%

9.4%7.2%

8.9% 7.9%

74,485 61,918 76,512 70,741

2005 2006 2007 9M08

NPLs Ratio (Gross) NPLs Ratio (Net)

NPL / Total Loans NPL / Total Loans (THB mm)(THB mm) LLR / Total LoansLLR / Total Loans (LLR / NPL 68%)(LLR / NPL 68%)

Asset QualityAsset Quality

Properties Foreclosed Properties Foreclosed –– netnet (THB mm)(THB mm)


CommentaryCommentary

* Properties Foreclosed - net/Total Assets* Properties Foreclosed - net/Total Assets

4.5%4.0%

3.6% 3.6%

21,48122,55629,81231,875

2005 2006 2007 9M08

Properties foreclosed and NPL decreased mainly from the accelerate sales and debt restructuring efforts


LDRLDR

Liquidity & Funding StructureLiquidity & Funding Structure

Funding Breakdown Funding Breakdown (THB (THB bnbn))

Deposit Structure : Bank onlyDeposit Structure : Bank only (THB (THB bnbn))

Total deposit THB 32 bn from savings deposit


Current 19.7 4.2% 18.1 4.2% 19.7 4.5% (0.0) (0.1%)

Savings 173.9 37.3% 164.5 37.8% 141.6 32.6% (32.3) (18.6%)

T/D <=12 mths. 231.0 49.6% 204.5 47.0% 228.7 52.7% (2.3) (1.0%)

T/D > 12 mths. 40.4 8.7% 47.2 10.9% 43.0 9.9% 2.5 6.3%

NCD & FCD 0.6 0.1% 0.7 0.2% 0.8 0.2% 0.2 30.7%

Total 465.6 100.0% 435.1 100.0% 433.8 100.0% (31.9) (6.8%)

Sep-08Jun-08Dec -07 Growth(Dec-07)

517569

466434

67

55

4761

4122

2511

6

631

544

10

38

5

516

684

82.0% 83.2% 85.6% 84.1%0

100

200

300

400

500

600

700

2005 2006 2007 9M08

ST BondsInterbank & MMBorrowingDeposits

107.4%95.4% 100.1% 98.6%103.2%

88.8%98.5% 96.1%

2005 2006 2007 9M08

LDR LDR (Include P/N,ST Bonds)




Appendix



AppendixAppendix


Consolidated Profit and LossConsolidated Profit and Loss

(THB mm)(THB mm)


9M08 9M07 % 3Q08 2Q08 %

Interest income 21,931 26,252 (16.5%) 7,342 7,193 2.1%

Interest expenses 9,628 14,162 (32.0%) 3,254 3,195 1.8%

Net interest income 12,304 12,090 1.8% 4,088 3,998 2.2%

Provision & loss from TDR 1,216 12,561 (90.3%) (414) 827 (150.1%)

Net income after provision & loss from TDR 11,087 (471) 2,453.2% 4,502 3,171 41.9%

Non-interest income 5,688 5,962 (4.6%) 1,374 2,032 (32.4%)

Non-interest expenses 12,175 26,047 (53.3%) 4,180 3,975 5.2%

Net income before tax 4,601 (20,556) 122.4% 1,696 1,229 38.0%

Income tax 82 60 35.4% 19 17 7.8%

Net profit (loss) 4,414 (20,687) 121.3% 1,666 1,158 43.9%

Weighted Basic EPS (Baht) 0.11 (1.25) 1.36 0.04 0.03 0.01


(THB mm)(THB mm)

Consolidated Balance SheetsConsolidated Balance Sheets


Sep 08 Jun 08 % Dec 07 %

11,262 10,906 3.3% 10,289 9.5%

41,974 43,124 (2.7%) 20,760 102.2%

- - - 27,800 N/A

107,849 120,180 (10.3%) 96,346 11.9%

427,484 436,171 (2.0%) 464,895 (8.0%)

(48,255) (49,023) (1.6%) (52,114) (7.4%)

379,230 387,148 (2.0%) 412,781 (8.1%)

21,481 21,684 (0.9%) 22,556 (4.8%)

14,424 12,620 14.3% 13,067 10.4%

11 323 (96.7%) 323 (96.7%)

16,757 25,593 (34.5%) 18,241 (8.1%)

592,987 621,578 (4.6%) 622,161 (4.7%)Total assets

Properties foreclosed - net

Premises and equipment - net

Goodwill

Other assets - net

Investments in securities - net

Loans

LLR

Loans - net

Assets

Cash

Interbank & money market items

Securities purchased under resale


(THB mm)(THB mm)

Consolidated Balance SheetsConsolidated Balance Sheets


* Bank Only

Sep 08 Jun 08 % Dec 07 %

433,500 434,846 (0.3%) 465,462 (6.9%)

11,192 11,870 (5.7%) 24,993 (55.2%)

- - - 4,765 N/A

70,832 79,942 (11.4%) 53,416 32.6%

28,975 49,316 (41.2%) 29,005 (0.1%)

544,499 575,974 (5.5%) 577,641 (5.7%)

43,529 43,529 0.0% 43,529 0.0%

48,488 45,604 6.3% 44,520 8.9%

592,987 621,578 (4.6%) 622,161 (4.7%)

12.9% 11.7% 1.2% 10.5% 2.4%

17.4% 16.4% 1.0% 14.4% 3.1%

Total liabilities & equity

Liabilities & Equity

Tier 1

CAR

Other liabilities

Total liabilities

No. of shares outstanding

Total shareholders’ equity

Securities sold under repurchase

Deposits

Interbank and money market items

Borrowings

**


Profit and Loss Profit and Loss –– Bank OnlyBank Only

(THB mm)(THB mm)


9M08 9M07 % 3Q08 2Q08 %

Interest income 21,939 25,998 (15.6%) 7,316 7,285 0.4%

Interest expenses 9,493 14,171 (33.0%) 3,208 3,151 1.8%

Net interest income 12,446 11,827 5.2% 4,108 4,134 (0.6%)

Provision & loss from TDR 1,217 12,572 (90.3%) (415) 822 (150.5%)

Net income after provision & loss from TDR 11,229 (744) 1,608.9% 4,523 3,311 36.6%

Non-interest income 4,799 4,125 16.3% 1,241 1,641 (24.4%)

Non-interest expenses 11,594 24,219 (52.1%) 3,996 3,771 6.0%

Net income before tax 4,434 (20,838) 121.3% 1,769 1,182 49.7%

Income tax 0 1 - 0 0 N/A

Net profit (loss) 4,434 (20,839) 121.3% 1,769 1,182 49.7%

Weighted Basic EPS (Baht) 0.11 (1.26) 1.37 0.04 0.03 0.01


(THB mm)(THB mm)

Balance Sheets Balance Sheets –– Bank OnlyBank Only


Sep 08 Jun 08 % Dec 07 %

11,262 10,886 3.5% 10,287 9.5%

41,750 41,269 1.2% 19,599 113.0%

- - - 27,800 N/A

106,900 119,923 (10.9%) 95,598 11.8%

427,468 436,385 (2.0%) 466,075 (8.3%)

(46,724) (47,492) (1.6%) (50,559) (7.6%)

380,744 388,893 (2.1%) 415,517 (8.4%)

18,903 18,860 0.2% 19,470 (2.9%)

14,355 12,505 14.8% 12,942 10.9%

- - - - -

16,527 25,353 (34.8%) 17,938 (7.9%)

590,441 617,689 (4.4%) 619,151 (4.6%)

Assets

Cash

Interbank & money market items

Securities purchased under resale

Investments in securities - net

Loans

LLR

Loans - net

Properties foreclosed - net

Premises and equipment - net

Goodwill

Other assets - net

Total assets


(THB mm)(THB mm)

Balance Sheets Balance Sheets –– Bank OnlyBank Only


Sep 08 Jun 08 % Dec 07 %

433,753 435,141 (0.3%) 465,628 (6.8%)

11,200 11,207 (0.1%) 25,081 (55.3%)

- - - 4,765 N/A

70,832 79,853 (11.3%) 53,215 33.1%

26,866 47,152 (43.0%) 27,140 (1.0%)

542,651 573,352 (5.4%) 575,829 (5.8%)

43,529 43,529 0.0% 43,529 0.0%

47,790 44,337 7.8% 43,322 10.3%

590,441 617,689 (4.4%) 619,151 (4.6%)

12.9% 11.8% 1.1% 10.6% 2.3%

17.4% 16.5% 0.9% 14.4% 3.0%

Deposits

Interbank and money market items

Borrowings

Total liabilities & equity

Liabilities & Equity

Tier 1

CAR

Other liabilities

Total liabilities

No. of shares outstanding

Total shareholders’ equity

Securities sold under repurchase


News Campaigns & ProductsNews Campaigns & Products

This presentation contains some information from other sources, that TMB Bank Public Company Limited does not make any representations regarding the use, validity, accuracy, or reliability of, or the results of the use of information, data but not limited to, all text, and images (“the Content”) on this presentation. Some content may contain forward looking statements, that based on management’s view upon the information currently available to us. These statement are subject to certain risks and uncertainties that could cause the actual results materially differed from what had been previously stated. The materials in this presentation shall not, and are not intended to, constitute or contain an offer to sell or the solicitation of an offer to buy, any securities of TMB Bank Public Company Limited.

IR contactsIR contactsNisaNisa LaohasomboonLaohasomboon Tel. 66Tel. 66--22992299--29262926 EE--mail mail [email protected]@tmbbank.comJittrawadeeJittrawadee SrivichitSrivichit Tel. 66Tel. 66--22992299--11781178 EE--mail mail [email protected]@tmbbank.comInvestor RelationsInvestor Relations Tel. 66Tel. 66--22992299--29272927 EE--mail mail [email protected]@tmbbank.com

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TMB BANKTMB BANK...9M08 & 3Q08 Preliminary Results9M08 & 3Q08 Preliminary Results This presentation contains some information from other sources, that TMB Bank Public Company Limited