Download pdf - TMB BkBank PCLPCL. · TMB BkBank PCLPCL. 22QQ1212 & 1H12 performance update On the right track Analyst and investor meeting 2727 July 2012 Make THE Difference

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




[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%


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


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%


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


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


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%


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




[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




[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




[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


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%


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%


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%


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%


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%


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%


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 %


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




[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


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%


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%


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.