tmb bank plc. · 1q10 results review ... this presentation contains some information from other...

TMB Bank Plc.Investor presentation, Bank of America -Merrill Lynch/Phatra SecuritiesSingapore-Hong Kong

1-2 June 2010

[3]

Operating performance and key transaction updates Proposals to adjust shareholders’ equity accounting and

performance share bonus Impact assessment of the recent political turmoil 2010 strategy updates Appendix

Product updates 1Q10 results review Other related information

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 solicitation of an offer to buy, any securities of TMB Bank Public Company Limited.

Source: Consolidated financial statement, * by subtracting NPL sales from 1Q10 NPL, divided by 1Q10 total loans [4]

1Q10 net profit at THB707 million, a 2.7% rise QoQ (net profit of THB688 million in 4Q09) and a 62.0% rise YoY (net profit of THB436 million in 1Q09) 1Q10 ROE and ROA were at 5.9% and

0.5%, stable QoQ but improved YoY Earnings continue on a recovery path with

strengthened financial parameters: Further drop of NPL ratio to 12.1%

(9.95%* if including THB9.4 billion NPL sales in April 2010) Strong liquidity with LDR at 84.3% Improved CASA ratio to 52.1% Strong capital base with 16.4% CAR

(18.6% if including sub-debts issued in April 2010)

1Q10 operating performance: Earnings continue on a recovery path

ROAE & ROAA 5.9%5.9%

4.5%

3.4%3.8%

0.5%0.5%0.4%

0.3%0.3%

0%

1%

2%

3%

4%

5%

6%

1Q09 2Q09 3Q09 4Q09 1Q100.0%

0.2%

0.4%

0.6%

0.8%

1.0%

ROE (LHS) ROA (RHS)

Net income and normalized PPOP, QoQ

707688526

393436

1,0271,088

874

1,2541,340

-

200

400

600

800

1,000

1,200

1,400

1Q09 2Q09 3Q09 4Q09 1Q10

THB

milli

on

Net income Normalized PPOP

Source: Consolidated financial statements [5]

1Q10 operating performance: Strengthened financial parameters

CAR and BOT min requirement

16.40%14.09% 14.98%

16.15% 17.13%

8.50% 8.50% 8.50% 8.50% 8.50%

2%

4%6%

8%10%

12%

14%16%

18%

1Q09 2Q09 3Q09 4Q09 1Q10

CAR BOT requirement

Loan to deposit ratio

88.4%90.3%91.2%90.2% 89.3%

85.7% 85.8%85.6% 85.9% 84.3%

70%

75%

80%

85%

90%

95%

100%

1Q09 2Q09 3Q09 4Q09 1Q10

Loan to deposit ratioLoan to deposit ratio + ST borrowing

Deposit breakdown

43.9% 39.0%

53.4% 47.6% 50.5% 47.9%

6.2% 5.8% 8.5% 10.5% 10.5%

41.6%40.4% 44.5%

49.7%

0%

20%

40%

60%

80%

100%

1Q09 2Q09 3Q09 4Q09 1Q10

Current Savings Fixed

NPL and gross NPL ratio

52,72754,09559,14459,884

73,957

12.1%12.7%14.1%14.4%16.0%

-

20,000

40,000

60,000

80,000

1Q09 2Q09 3Q09 4Q09 1Q10

THB

milli

on

0%

10%

20%

30%

40%

NPL (LHS) Gross NPL ratio (RHS)

Source: consolidated financial statements [6]

1Q10 loan growth declined by 2.2% due mainly to loan prepayment and refinancing, part of which was on the back of bank’ strategy to exit loans with low quality or concentration issue

1Q10 deposits were stable QoQ, despite decline in less-than-12 months fixed deposit. Saving & current accounts (CASA) mix improved QoQ at 52.1% vs 49.5% in 4Q09

Managed to reduce funding costs from 1.36% in 4Q09 to 1.27% in 1Q10

Balance sheet highlights: Loans and deposits

Total loan and loan growth

360,066368,092361,723366,167397,171

-6.4%-2.2%

1.8%-1.2%-7.8%

0

100,000

200,000

300,000

400,000

500,000

1Q09 2Q09 3Q09 4Q09 1Q10

THB

milli

on

-20%

-10%

0%

10%

20%

30%

40%

Total loan (LHS)Loan growth, QoQ (RHS)

Deposit and deposit growth

440,207401,385 405,277 407,776 407,234

-8.8%1.0% 0.6% -0.1%-2.2%

0

100,000

200,000

300,000

400,000

500,000

1Q09 2Q09 3Q09 4Q09 1Q10

THB

millio

n

-30%

-20%

-10%

0%

10%

20%

30%

40%

Total deposit (LHS)Deposit growth, QoQ (RHS)

[7]

Key transaction updates: NPL sales and capital management

Additional buy-back of US$23 million hybrid tier I Bank to book slight capital gains from discount and unwinding of

swap contracts After the buy-back, HBT1 remaining outstanding at US$23 million

May 2010Additional buy-back of US$ hybrid tier I (HBT1)

THB8 billion subordinated debt to replace THB4.9 billion of subordinated debt called in March 2010 1Q10 CAR would have been 18.6% if including this new issuance

April 2010Issuance THB8 billion of sub-debt (counted as Tier 2 capital)

THB8.4 billion from the bank and THB0.93 billion from PAMC, mainly consisting of SME loans Fully provided as of 4Q09 and thus no P/L impact at the time of

the sales NPL ratio to decline to 9.50% (Bank only) and 9.95%

(Consolidated)

April 2010THB9.4 billion NPL sales

Summary TimingKey Transactions

[8]

Operating performance and key transaction updates Proposals to adjust shareholders’ equity accounting

and performance share bonus Impact assessment of the recent political turmoil 2010 strategy updates Appendix


Note: * resulting from rounding of par value, ** preferred shares were converted into common shares on 24 May 10 [9]

Proposal to adjust shareholders’ equity account via par reduction and retained losses write-down

Adjustment of shareholders’ equity accounts to be made via par reduction and write-down of retained losses and share discount

Par value** to reduce from THB10 to THB0.95

The clean-up will give flexibility to pay dividend, according to relevant laws

No impact on regulatory capital, BVPS, number of shares as well as shareholders’ effective controls

To be approved by 24 Jun shareholders’ meeting

Adjustment of shareholders’ equity : Before and after based on 2009 audited financial statements

45,906 45,906 Tier I capital (THB million)

63,904 63,904 Total Capital (THB million)

0.95 10.00 Par value (THB/Share)

43,528,738 43,528,738 Total shares (thousand)

5,2175,217Other equity items

Appropriated

-2,100Statutory reserve

-8,717Other reserve

(78)*(101,742)Unappropriated (deficit)

46,49146,491Shareholders' equity

Retained earnings

-(303,088)Share discount

41,352435,287Paid-up capital

[10]

HR transformation towards a performance-based organization

Customer centric organization (2008-9)

New customer centric structure• Structure for all to see customers• High level roles re-defined to reflect

strategy and customer centricity

Align performance management to business• Service and sale score point for branch staff• KPIs defined for all staff• Team-based KPIs, short term and medium

term KPIs implemented

Basic variable performance bonus• RoE linked to bonus pool• Basic variable performance bonus

implemented with ‘front’ exposed to higher variation

Performance-based organization (2010~)

Functional title as foundation• Functional roles reflect responsibilities

allowing people to work to fullest capabilities • Role benchmarking & grading support pay

that reflect market and competency• No organizational titles to flatten organization

Performance and competency assessment• Clear requirements linked to business

outcome and competencies for future• Clear and transparent performance

measurement of individuals and groups• Emphasize on capability development

New total compensation policy• Pay in line with the market to attract and

retain capable staff for the long term • The higher position, the higher variable

components (thus less guaranteed portion)• Introduction of more variable pay incentives

Structure

Perfor-mance

Com-pensation

[11]

• Salary Adjustment

• Clean Functional title, re-write DOA and cancel Org Title

• Revise JG and Func. Title

• Re-structure Org. and Role

• Link Benefit to JG

Phas

e 2

Phas

e 1

• Re-write DOA

Q1/10 Q2/10 Q3/10 Q4/10Q1/09 Q2/09 Q3/09 Q4/09Q4/08

• Re-Structure Org.

• Design micro level structure• Writing Job Descriptions

FunctionalTitle

and draft Functional Title

• Revise Job Description

• Launch Competency, Career Development

Org Structure Job Role Clarification

Job Evaluation Job Grading Functional Title Total Compensation

Structure

Job GradingOrganization Design FunctionalTitle

TotalCompensation

HR transformation: An ongoing process towards a performance-based organization

[12]

Objectives of TMB performance share bonus

To ensure management focus on Total Shareholders' return To retain talented staffs throughout transformation period To provide compensation to TMB’s employees in consistent with

individual performance and business profits, which would align with shareholders’ interests.

Designed to be in line with the global best practice of the higher proportion of variable pay

[13]

TMB performance share bonus: Key features

Cash bonus

Base salary

Share bonus

Deferred vesting mechanism (3-years) to raise long-term commitment

Mandatory for top management and optional for staffs

Total scheme represents 0.9% of total shares and thus minimal dilution effect

Offered at market price, thus no impact on share price

Part of the existing performance bonus

Tota

l com

pens

atio

n Tota

l bon

us

[14]

TMB performance share bonus scheme details

1/3 annually , starting 1 year after “date determining number of shares awarded”

Average closing price of last 90 calendar days prior to each “date determining number of shares awarded”

Mar 2011, Mar 2012, Mar 2013

50% of annual bonus to be paid against 2010-2012 performance

Top Mgmt: MandatoryMgmt & others: Optional

400 million shares or 0.9% of total shares

Vesting mechanism

Share bonus price setting

Date determining number of shares awarded

% retention as share bonus (of total bonus, VPI)

Scheme participation

Total shares offering

Share bonus scheme

Align with cash-bonus payout period

Offered at market price and thus no share price impact

Align compensation with bank’s future performance

Key rationale

Minimal share dilution

Raise management and staff commitments

Deferred vesting mechanism to raise long-term commitment

* subject to final approval from Board of Directors [15]

TMB performance share bonus: Awarding and vesting mechanism

Vesting date of shares awarded (date of share issuance)and vesting proportion

1/31/31/3March 20132012

1/3

March 2012

1/3

1/3

March 2013

1/3

1/3

March 2014

1/3

March 2015

March 2012

March 2011

Date determining number of

shares awarded

2011

2010

March 2016

Performance year

In case of resignation, remaining share vesting will be cancelled. In case of fraud or negligence, awards will be clawed back Early vesting of awards in case of retirement and redundancy*

* actual awarding remains subject to Bank's performance and individual KPIs [16]

Extraordinary shareholders’ meeting: timeline and key agenda

Extraordinary shareholders’ meeting To approve par reduction and write-down of retained losses To approve TMB performance share bonus scheme To approve employees who might potentially be awarded more than 5% of

TMB performance share bonus scheme*

24 June 2010

Board of Directors’ (BoD) resolutions on adjustment of shareholders’ equity accounts and performance share bonus Submission of BoD resolutions to SET

Approval from the Bank of Thailand Registration of EGM resolutions with Ministry of Commerce

Within 14 days

Book closing to determine rights to attend extraordinary shareholders meeting (EGM) on 24 June 2010

7 June 2010

Completion of preferred shares conversion into common shares24 May 2010

ActionsKey dates

[17]




* by TMB macro economic team [18]

Impact assessment of the recent political turmoil

1% hit on the forecasted 2010 GDP growth (4.9%, before impact assessment) Hotel (6% drop in output) and transportation (2.4%) affected most

Overall economy*

Mostly SME customers, but expects minimal NPL migration due to various support measures No impact on wholesale customers

Bank’s credit quality portfolio

One branch located within the shopping complex damaged by the arson Damage to ATM and fixture of one branch close to the demonstration site Minor damage (glass broken) to two branches All damages covered by “all risk” insurance

Bank’s physical assets

Summary Key impacts

[19]




[20]

TMB aspirations: 14% deposit share, 14% ROE by 2014

The Leading Thai Bank with World Class Financial Solutions

Market leadership

Competitive scale (14% deposit market share)

Strong funding structure (50% CASA, diversified and transaction-based)

Main bank status (~20% customer market share in wholesale/SME/retail segments)

Sustained profitability

Top quartile shareholders’ return (ROE ~ 14%)

Sustainable revenue mix:≥40% contribution from consumer banking

and ≥35% contribution from non-interest income

Customers

Top tier satisfaction/Engagement level

Regulators

‘Good’ Rating

Employees

Employer of ChoiceFor Financial Service

*Compared with BOT policy, NPL classification by customer (vs by account), 6 mths TDR cured period (vs 3 mths) [21]

2010 target updates: unchanged, but hinges on 2H10 economic recovery

Volume growth Loan growth (~10%), on par or slightly

above industry average supporting by better economic outlook and strengthened operating platform with high SME loan mix

Deposit and AUM growth above industry average

Volume growth Loan growth (~10%), on par or slightly

above industry average supporting by better economic outlook and strengthened operating platform with high SME loan mix

Deposit and AUM growth above industry average

Margin and fee income Slight margin improvement as a result of

balanced trade-off between quality loan growth and strong liquidity

Strong contribution from fee income (~20% growth YoY)

Margin and fee income Slight margin improvement as a result of

balanced trade-off between quality loan growth and strong liquidity

Strong contribution from fee income (~20% growth YoY)

Asset quality* NPL ratio aspired below 10% via performing

loan growth, NPL restructuring and NPL sales

Provisioning in line with IFRS. NPL is already fully provided as per BOT’s policy. General provisions are set according to risk ratings of performing loans.

Asset quality* NPL ratio aspired below 10% via performing

loan growth, NPL restructuring and NPL sales

Provisioning in line with IFRS. NPL is already fully provided as per BOT’s policy. General provisions are set according to risk ratings of performing loans.

Operating efficiency and distribution Cost to income to improve YoY, but to remain

high due to continued investment in key areas (product, marketing, training)

Focus on relocation to serve target customer. Selective new branch opening and ATM/ADM expansion

Operating efficiency and distribution Cost to income to improve YoY, but to remain

high due to continued investment in key areas (product, marketing, training)

Focus on relocation to serve target customer. Selective new branch opening and ATM/ADM expansion

[22]




Source: C.B 1.1 as of March 09, only locally incorporated banks * consolidated financial statements [23][23]

Retail: “No fee savings accounts” – most innovative deposit product

No fee up to 20 e-transactionswith THB20,000 minimum balance, including access to other banks’ ATM

Most innovative valued retail products to raise CASA and achieve transactional banking status

No fee savings accounts - features

Achieved almost 50% of the 2009 year-end target in terms of account acquisition for 1-month product launch

New accounts (including reactivated accounts) represent more than 50% of total account acquisition

Average balance account was much higher than 20K minimum balance, but should decline going forward with more account acquisition

No fee savings accounts – performance update

Source: C.B 1.1 as of March 09, only locally incorporated banks * consolidated financial statements [24][24]

Retail: “TMB no limit debit card” – One card for all ATMs in Thailand and for free

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 a “Plus” sign worldwide

Able to transfer to third party (TMB) and ORFT with a maximum of 200k and 100k Baht/card/day respectively

500 Baht for upfront fee No annual fee First launch on 4 November 2009

TMB no limit debit card

Bangkok Upcountry

Note: SBCG = Small Business Credit Guarantee Corporation, a state-owned enterprise [25]

SME: Structured products with focus on supply chain, now extended to general customers

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)

3x structured O/D accounts for working capital

[26]

SME: “TMB OD NO Asset” – OD without collaterals required

NO collaterals required for OD credit facility amounted from THB100k-10 million.

Interest rate range from MLR+4.5% to MLR+8.5% depend on size of credit line.

Guarantee fee from SBCG of 1.75% p.a.

Launched on 1 Feb 2010, reached 80% of the first month target in 3 weeks in terms of referred cases.

TMB SME OD NO Asset

[27]

SME: “TMB SME Saver Account” – All financial transactions are free.

Current account with interest Free for first 40 inter-bank transactions

per month Unlimited cheque deposit transactions

nationwide Unlimited deposit and withdraw

transactions within TMB Free annual fee (500 Baht) Buy 1 cheque book, get 1 free Pay only 499 Baht per month Promotion period until 31 October 10,,

it is refundable if customer dissatisfies with this product.

TMB SME Saver Account

[28]

Retail: “TMB Up&Up term deposit” – Escalating-rate fixed deposit with flexible withdrawal condition

24-month term deposit: progressive rate for every 6 months up to 4.25% and quarterly interest payment

Able to withdraw full deposit balance before maturity date and receive interest according to the actual time of deposit

TMB Up&Up term deposit

Other term depositHold to maturity Before maturity Before maturity

1-6 months 0.75% 0.75% 0.50%7-12 months 1.25% 1.25% 0.50%13-18 months 1.75% 1.75% 0.50%19-24 months 4.25% 4.25% 0.50%

Interest rate term TMB "Up&Up" term deposit

Note: MLR as of Sep 09 at 6.25% and MOR at 6.50%, Premium home = property by approved developers [29]

Retail: “TMB flexi home loan” – First to launch mortgage bundled with equity home loan

First bank to launch mortgage product bundled with equity home loan

Provide flexibility for home buyers and yet being secured by home

Credit line max at THB20 million with 80:20 or 90:10 line mix between mortgage loan and equity home loan

TMB flexible home loan - features

Term loan: 1st to 8th month 9th - 12th month 2nd -3rd year 4th year and onward

Housing loan 0.88% MLR – 1.50% MLR – 1.50% MLR – 1.25%

Premium home loan and refinance 0.88% MLR – 1.75% MLR – 1.75% MLR – 1.50%

[30]




Source: the Bank of Thailand, NESDB, Bloomberg, company [31]

Economic update: Robust 1Q10 GDP growth at 12% driven by export, investment and tourist arrival

1Q10 GDP growth at 3.0% QoQ and 12.0% YoY, driven by export and investment and improved tourist arrivals

2Q10 GDP is expected to be affected by the recent political turmoil

BOT’s policy rate remains accommodative at 1.25%, but under upward pressure, given headline CPI recently picking up strongly

GDP growth, YoY vs QoQ

12.0%

-2.7%-4.9%

-7.1%

5.9%

-1.5%

2.1% 1.7%3.6% 3.0%

-10%

-7%

-4%

-1%

2%

5%

8%

11%

14%

1Q09 2Q09 3Q09 4Q09 1Q10

GDP growth, YoY GDP growth, QoQ

One-day RP vs CPI, YoY

2.00%1.50%

1.25%

1.50%

-0.40%-0.10%-0.20%-0.90%

-3.30%-4.00%

-4.40%

-1.00%-1.00%

0.40%

1.90%

3.50%4.10%3.70%3.40%

-5%

-4%

-3%

-2%

-1%

0%

1%

2%

3%

4%

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

Policy Rate CPI, YoY

Source: Consolidated financial statement [32]

1Q10 net profit at THB707 million, a 2.7% rise QoQ (net profit of THB688 million in 4Q09) and a 62.0% rise YoY (net profit of THB436 million in 1Q09) 1Q10 ROE and ROA were at 5.9% and

0.5%, stable QoQ but improved YoY Earnings continue on a recovery path with

strengthened financial parameters: Further drop of NPL ratio to 12.1%

(9.95% if including THB9.4 billion NPL sales in April 2010)

Strong liquidity with LDR at 84.3% Improved CASA ratio to 52.1% Strong capital base with 16.4%

CAR (18.6% if including sub-debts issued in April 2010)

1Q10 operating performance: Earnings continue on a recovery path

Net income and normalized PPOP, QoQ

707688526

393436

1,0271,088874

1,2541,340

-

200

400

600

800

1,000

1,200

1,400

1Q09 2Q09 3Q09 4Q09 1Q10

THB

milli

on

Net income Normalized PPOP


4.5%

3.4%3.8%

0.5%0.5%0.4%

0.3%0.3%

0%

1%

2%

3%

4%

5%

6%

1Q09 2Q09 3Q09 4Q09 1Q100.0%

0.2%

0.4%

0.6%

0.8%

1.0%

ROE (LHS) ROA (RHS)


1Q10 result review: NII and NIM declined due to loan contraction

Net interest income (NII) lowered by 3.8% QoQ to THB2,944 million due to the loan contraction.

As a result, net interest margin (NIM) decreased from 2.30% to 2.18%

Cost of fund declined to 1.27% due to lower cost of deposit

Net interest income and NIM

2,9443,0593,0773,1133,229

2.18%2.30%2.27%2.17%2.17%

0

1,000

2,000

3,000

4,000

1Q09 2Q09 3Q09 4Q09 1Q100%

1%

2%

3%

4%

5%

NII (LHS)NIM (RHS)

Funding cost

3.28%

4.10%3.55% 3.47% 3.50%

2.21%1.58% 1.35% 1.36% 1.27%

0%

1%

2%

3%

4%

5%

1Q09 2Q09 3Q09 4Q09 1Q10

Average yield Cost of fund


Fee income contracted 4.7% QoQ due mainly to decline in credit-related fee as a result of loan contraction. However, contribution from mutual fund and bancassurance remains strong

Fee income structure: 41.7% credit card/merchant and ATM, 22.9% bancassurance and mutual fund, 14.5% credit-related, 16.1% cash management and payment

1Q10 result review: Fee income momentum slowed down due to lower credit related fee

Fee income breakdown

Credit-related14%

Others5%Mutual fund &

Bancassurance23%

Cash management &

Payment16%

Credit card/ merchant &

ATM42%

Fee income and growth

1,034 1,0501,146

1,248 1,189

1.6%

9.1% 8.8%

-4.7%-10.4%

0

300

600

900

1,200

1,500

1Q09 2Q09 3Q09 4Q09 1Q10

THB

milli

on

-15%

-5%

5%

15%

25%

35%

Fee income (LHS)Fee income growth, QoQ (RHS)


Cost to income declined QoQ to 79.2% due mainly to lower personnel expenses and loss from impairment of properties foreclosed

Operating cost to income (excluding extraordinary items) also reduced to 77.1% mainly due to lower marketing expenses

1Q10 result review: Cost to income improved slightly QoQ

Cost to income ratio and operating cost 115.8%

50.3%

91.5%83.9% 79.2%

71.3% 74.4% 80.3% 78.4% 77.1%

0%

20%

40%

60%

80%

100%

120%

1Q09 2Q09 3Q09 4Q09 1Q10

Cost to income ratio

Operating cost toincome

Operating cost break down, 1Q10

Personnel expenses, 39.4%

Taxes and duties, 4.3%

Fees and service, 9.2%

Other expenses, 13.9%

Contributions to FIDF, 11.1%

Directors' remuneration ,

0.2%

Premises and equipment

expenses , 19.3%

Source: consolidated financial statements, * loan breakdown is based on bank only [36]

1Q10 loan growth declined by 2.2% due mainly to loan prepayment and refinancing, part of which was on the back of bank’ strategy to exit loans with low quality or concentration issue

1Q10 Corporate/SME/Retail loan breakdown was 51:30:19

1Q10 result review: Lower loan book due to prepayment and active credit management

Loan breakdown by segment (4Q09)

Retail, 18.4% Corporate, 50.2%

SME, 31.4%

Loan breakdown by segment (1Q10)

Corporate , 51.5%

SME, 29.9%

Retail, 18.6%

Total loan and loan growth

360,066368,092361,723366,167397,171

-6.4%-2.2%

1.8%-1.2%-7.8%

0

100,000

200,000

300,000

400,000

500,000

1Q09 2Q09 3Q09 4Q09 1Q10

THB

milli

on

-20%

-10%

0%

10%

20%

30%

40%

Total loan (LHS)Loan growth, QoQ (RHS)

Source: consolidated financial statements, % excess reserve and specific NPL coverage based on bank only [37]

1Q10 result review: NPL ratio lowered further to 12.1% and 9.95% if including recent NPL sales

NPL and gross NPL ratio

52,72754,09559,14459,884

73,957

12.1%12.7%14.1%14.4%16.0%

-

20,000

40,000

60,000

80,000

1Q09 2Q09 3Q09 4Q09 1Q10

THB

milli

on

0%

10%

20%

30%

40%

NPL (LHS) Gross NPL ratio (RHS)

NPL coverage

60.1% 59.9% 58.0% 57.7% 58.6%

0%

20%

40%

60%

80%

1Q09 2Q09 3Q09 4Q09 1Q10

NPL coverage

% Excess reserves

2.5%2.6%2.4%2.4%

1.5% 1.3%1.2%1.0%1.0%0.8%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

1Q09 2Q09 3Q09 4Q09 1Q10

TMB % excess reserves to performing loan-Bank only

sector average

Specific NPL coverage

54.0%48.0% 46.1% 43.8% 44.2%

58.8% 58.7% 60.1% 60.7% 61.9%

0%

10%

20%

30%

40%

50%

60%

70%

1Q09 2Q09 3Q09 4Q09 1Q10

TMB specific NPL coverage -Bank only sector average

Source: consolidated financial statements, deposit mix based on bank-only [38]

1Q10 deposits lowered 0.1% QoQ from reduction of less-than-12 months fixed deposit

Saving & current accounts (CASA) mix is in better position at 52.1% vs 49.5% in 4Q09

However, expectedly higher interest rate will have a downward pressure on CASA ratio

1Q10 result review: Slight decline in deposits but better CASA mix

Deposit and deposit growth

440,207401,385 405,277 407,776 407,234

-8.8%1.0% 0.6% -0.1%-2.2%

0

100,000

200,000

300,000

400,000

500,000

1Q09 2Q09 3Q09 4Q09 1Q10

THB

milli

on

-30%

-20%

-10%

0%

10%

20%

30%

40%

Total deposit (LHS)Deposit growth, QoQ (RHS)

Deposit breakdown

43.9% 39.0%

53.4% 47.6% 50.5% 47.9%

6.2% 5.8% 8.5% 10.5% 10.5%

41.6%40.4% 44.5%

49.7%

0%

20%

40%

60%

80%

100%

1Q09 2Q09 3Q09 4Q09 1Q10


Consolidated financial statements, * exc. investment in associates, LDR+ST borrowing based on internal measurement [39]

1Q10 result review: Liquidity remains strong

Continued strong liquidity with cash, interbank and investment* representing 33.8% of total earning assets

Investment portfolio mostly consists of state-enterprise and government bonds and relatively short duration.

Loan to deposit ratio included ST borrowing lowered QoQ to 84.3%. Excluding ST borrowing, LDR was also lowered to 88.4%

Earning asset allocation

11.8% 12.5% 14.8%19.6% 17.9% 15.1% 16.8%

66.4% 66.6% 67.8% 69.1% 65.8%

1.4% 1.9% 2.1% 2.8% 2.2%12.2% 10.9%

20.2%

0%

20%

40%

60%

80%

100%

1Q09 2Q09 3Q09 4Q09 1Q10

Cash Interbank Investment Loans


88.4%90.3%91.2%90.2% 89.3%

85.7% 85.8%85.6% 85.9% 84.3%

70%

75%

80%

85%

90%

95%

100%

1Q09 2Q09 3Q09 4Q09 1Q10

Loan to deposit ratioLoan to deposit ratio + ST borrowing

Source: bank only, under Basel II calculation [40]

1Q10 result review: Solid capital base

Tier I and total capital adequacy ratio (CAR) were 12.9% and 16.4% (Basel II calculation), well above minimum requirement by BOT

The bank called THB4.9 billion subordinated debentures counted as Tier II in March 2010 and replaced with THB8 billion subordinated debentures in April 2010

Including THB8 billion subordinated debentures, 1Q10 CAR should have been at 18.6%

CAR and BOT min requirement16.40%

14.09% 14.98%16.15%

17.13%

8.50% 8.50% 8.50% 8.50% 8.50%

2%

4%

6%

8%

10%

12%

14%

16%

18%

1Q09 2Q09 3Q09 4Q09 1Q10

CAR BOT requirement

Tier I capital and BOT min requirement

12.31%11.94%10.98%10.56%

12.90%

4.25%4.25%4.25%4.25%4.25%

0%

2%

4%

6%

8%

10%

12%

14%

1Q09 2Q09 3Q09 4Q09 1Q10

Tier I Capital BOT min requirement

Source: Milward Brown [41]

Monitoring of TMB brand perception

Brand rejection has improved towards major peer performance

Efforts need to be done on brand consideration, such as continued innovative product development, marketing campaign and our distribution visibility

Brand consideration

31.0% 33.0%42.0%

52.0% 56.0% 60.0%

80.0%72.0%

61.0% 63.0% 66.0%

90.0%85.6%85.4%87.4%84.8%

88.6%

77.6%77.2%76.6%

86.8%91.0%

0%

20%

40%

60%

80%

100%

May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10

Brand consideration Average Top 5, latest month Brand awareness

28.0% 25.0%32.0%

40.0%44.0%

48.0% 48.0%40.0%

57.0%

48.0%

36.0%

60.4% 61.4%55.0%

69.0%

60.6%

72.2%66.4% 66.4%

71.6% 71.0% 70.6%

0%

10%

20%

30%

40%

50%

60%

70%

80%


Brand awareness Average Top 5, latest month

Brand rejection

29.0%26.0%

21.0%

13.0% 13.0%

3.0%

10.0%

4.0%

18.0%

5.0% 6.0%

3.0%1.8%

4.2%3.4%4.4%3.6%4.6%6.4%7.4%

8.6%

2.0%0%

5%

10%

15%

20%

25%

30%

35%


Brand rejection Average Top 5, latest month

[42]




SNote:* ING holds another 4.9% via Thai NVDR [43]

Shareholding structure and management

Management teamManagement team

Mr. Boontuck Wungcharoen(Chief Executive Officer)

Mr. Simon Andrews(Chief Operating Officer)

Mr. Piti Tantakasem(Chief Wholesale Banking Officer)

Mr. Bart Hellemans(Chief Risk Officer)

Mr. Sayam Prasitsirigul(Chief SME Banking Officer)

Mr. Thanomsak Chotikapraka(Chief Financial Officer)

Mr. Michal Szczurek(Chief Retail Banking Officer)

Top Mgmt Latest credentials

CEO KBANK: Head of corporate and capital market, SME

Wholesale KBANK: Head of large corporate

SME KBANK: Head of supply chain financing & cash mgmt

Retail ING: Mgmt Board of ING Nederlanden-Poland

CRO ING: MD, Head of credit capital

COO ING Direct Australia: Sales/operation/IT

CFO Standard Chartered: CFO

Shareholder structure (30 Mar 10)ING bank,

25.2%

Ministry of Finance, 26.1%

JP morgan, 3.6%

Others, 28.6%

Military group, 2.2%

DBS Bank, 6.8%Thai NVDR, 7.5%

Source: company, SEC, * as of Mar 10 [44]

Operating platform and holding structure

TMB BankTMB Bank

BankingBanking Investment Investment BankingBanking

ING Life (life) Thai Orix Leasing (46%)

TMB Asset Management (75%) and ING Funds (strategic partner) having 10.7% of total asset market*

6.2% loans market share

6.6% deposit market share

463 branches nationwide and 2,278 ATMs

Asset Asset ManagementManagement LeasingLeasing InsuranceInsurance

In house


Balance sheet

Unit: THB million 1Q10 4Q09 % Δ QoQ 1Q09 % Δ YoY 3M10 3M09 % Δ YOY

Cash, Interbank and repurchase 93,221 81,749 14.0% 81,415 14.5% 93,221 81,415 14.5%Investments 94,212 82,705 13.9% 119,658 -21.3% 94,212 119,658 -21.3%Loans and Accrued Interest Receivable 361,093 369,063 -2.2% 400,396 -9.8% 361,093 400,396 -9.8%Less Allowance for doubtful accounts (30,888) (31,208) N/A (44,453) N/A (30,888) (44,453) N/ALoans and AIlowance - net 330,205 337,855 -2.3% 355,944 -7.2% 330,205 355,944 -7.2%Properties foreclosed - net 9,887 11,132 -11.2% 17,026 -41.9% 9,887 17,026 -41.9%Premises and equipment - net 12,873 13,220 -2.6% 14,174 -9.2% 12,873 14,174 -9.2%Goodwill from transferred business - net 60 60 0.0% 60 0.0% 60 60 0.0%Other assets 19,571 16,933 15.6% 13,101 49.4% 19,571 13,101 49.4%Total Assets 560,029 543,653 3.0% 601,379 -6.9% 560,029 601,379 -6.9%Deposits 407,234 407,776 -0.1% 440,207 -7.5% 407,234 440,207 -7.5%Interbank and Money Market Items 8,800 10,738 -18.1% 12,006 -26.7% 8,800 12,006 -26.7%Borrowings 52,267 50,636 3.2% 63,467 -17.6% 52,267 63,467 -17.6%Other liabilities 43,802 27,236 60.8% 39,532 10.8% 43,802 39,532 10.8%Total Liabilities 512,102 496,385 3.2% 555,212 -7.8% 512,102 555,212 -7.8%Shareholders' equity 47,848 47,194 1.4% 46,072 3.9% 47,848 46,072 3.9%Minority Interests 78 75 5.0% 95 -18.0% 78 95 -18.0%LIABILITIES & SHAREHOLDERS' EQUITY 560,029 543,653 3.0% 601,379 -6.9% 560,029 601,379 -6.9%


Profit and Losses

(Unit:THB million) 1Q10 4Q09 % Δ QoQ 1Q09 % Δ YoY 3M10 3M09 % Δ YOYInterest and dividend income 4,427 4,661 -5.0% 6,104 -27.5% 4,427 6,104 -27.5%Interest expenses 1,484 1,601 -7.3% 2,875 -48.4% 1,484 2,875 -48.4%Net income from interest and dividend (NII) 2,944 3,059 -3.8% 3,229 -8.8% 2,944 3,229 -8.8%Bad debts and doubtful accounts (reversal) 219 145 51.2% (1,113) N/A 219 (1,113) N/ANII after provision 2,725 2,915 -6.5% 4,342 -37.2% 2,725 4,342 -37.2%Non-interest income 1,546 2,162 -28.5% 975 58.5% 1,546 975 58.5%Non-interest expenses 3,554 4,379 -18.8% 4,869 -27.0% 3,554 4,869 -27.0%Net income (loss) before income tax 717 698 2.7% 448 60.0% 717 448 60.0%

Income tax 6 6 -4.3% 8 -21.0% 6 8 -21.0%Minority interests in net profit 4 3 21.4% 4 -5.9% 4 4 -5.9%

Net income 707 688 2.7% 436 62.0% 707 436 62.0%


Non interest income and expenses

N o n in t e r e s t in c o m e s( U n i t: T H B m il l i o n ) 1 Q 1 0 4 Q 0 9 % Δ Q o Q 1 Q 0 9 % Δ Y o Y 3 M 1 0 3 M 0 9 % Δ Y O YG a i n / lo ss o n in ve s t m e n ts 7 1 8 - 6 3 .4 % ( 9 5 5 ) N / A 7 ( 9 5 5 ) N /AS h a re o f p r o f i t ( lo s s ) f r o m i n v e s tm e n ts a c c o u n te d fo r u s i n g th e e q u i ty m e th o d (5 2 ) 1 1 9 - 1 4 3 .6 % 3 8 -2 3 5 .4 % (5 2 ) 3 8 - 2 3 5 . 4 %F e e s a n d se r v i c e i n c o m e 1 , 1 8 9 1 ,2 4 8 - 4 .7 % 1 , 0 3 4 1 5 .0 % 1 , 1 8 9 1 ,0 3 4 1 5 . 0 % A c ce p ta n c e s , a v a l s a n d g u a r a n te e s 8 4 1 1 2 - 2 5 .6 % 1 1 3 - 2 6 .1 % 8 4 1 1 3 -2 6 . 1 % O th e r s 1 , 1 0 5 1 ,1 3 6 - 2 .7 % 9 2 1 2 0 .1 % 1 , 1 0 5 9 2 1 2 0 . 1 %G a i n o n e x c h a n g e 3 3 4 2 5 7 3 0 .1 % 3 4 1 - 1 .9 % 3 3 4 3 4 1 - 1 . 9 %G a i n o n s a l e o f a ss e t s 0 1 5 0 - 1 0 0 .0 % ( 4 9 ) N / A 0 ( 4 9 ) N /AO th e r i n c o m e 6 9 3 7 1 - 8 1 .5 % 5 6 7 - 8 7 .9 % 6 9 5 6 7 -8 7 . 9 %T o t a l n o n - i n t e re s t i n c o m e 1 , 5 4 6 2 ,1 6 2 - 2 8 .5 % 9 7 5 5 8 .5 % 1 , 5 4 6 9 7 5 5 8 .5 %N o n in t e r e s t e x p e n s e s( U n i t: T H B m il l i o n ) 1 Q 1 0 4 Q 0 9 % Δ Q o Q 1 Q 0 9 % Δ Y o Y 3 M 1 0 3 M 0 9 % Δ Y O YP e r s o n n e l e x p e n s e s 1 , 4 0 0 1 ,6 8 8 - 1 7 .1 % 1 , 3 6 2 2 .8 % 1 , 4 0 0 1 ,3 6 2 2 . 8 %P r e m is e s a n d e q u i p m e n t e xp e n s e s 6 8 5 7 2 3 - 5 .2 % 6 1 7 1 0 .9 % 6 8 5 6 1 7 1 0 . 9 %T a xe s a n d d u t i e s 1 5 1 1 5 2 - 0 .5 % 1 9 3 - 2 1 .7 % 1 5 1 1 9 3 -2 1 . 7 %F e e s a n d se r v i c e e x p e n s e s 3 2 8 3 4 9 - 6 .0 % 3 1 0 6 .0 % 3 2 8 3 1 0 6 . 0 %D i r e c to r s ’ r e m u n e r a t i o n 8 8 1 1 .6 % 6 3 1 .8 % 8 6 3 1 . 8 %L o s s o n im p a ir m e n t o f p r o p e r t i e s fo r e c lo se d a n d o t h e r a s s e ts 1 4 6 3 0 3 - 5 1 .7 % 1 , 4 4 1 - 8 9 .8 % 1 4 6 1 ,4 4 1 -8 9 . 8 %C o n tr i b u t i o n s t o t h e F ID F 3 9 5 4 3 2 - 8 .6 % 4 4 3 - 1 0 .9 % 3 9 5 4 4 3 -1 0 . 9 %L o s s o n p r o v i s io n s o f o b li g a t i o n s f r o m tr a n s fe r r e d n o n - p e r fo r m i n g a s s e t s 0 9 - 1 0 0 .0 % 3 0 0 -1 0 0 .0 % 0 3 0 0 - 1 0 0 . 0 %L o s s o n p r o v i s io n s o f o b li g a t i o n s - o th e r s (5 5 ) ( 9 7 ) N /A ( 2 0 4 ) N / A (5 5 ) ( 2 0 4 ) N /AG o o d w il l a m o r t i za t i o n 0 0 N /A 0 N / A 0 0 N /AL o s s o n im p a ir m e n t o f g o o d w i ll 0 0 N /A 0 N / A 0 0 N /AL o s s o n s a l e s o f a s s e ts 0 0 N /A 0 N / A 0 0 N /AO th e r e xp e n s e 4 9 4 8 1 2 - 3 9 .2 % 4 0 0 2 3 .5 % 4 9 4 4 0 0 2 3 . 5 %T o t a l n o n - i n t e re s t e x p e n s e 3 , 5 5 4 4 ,3 7 9 - 1 8 .8 % 4 , 8 6 9 - 2 7 .0 % 3 , 5 5 4 4 ,8 6 9 - 2 7 .0 %


Selected key financial ratios

Key financial ratio 1Q10 4Q09 3Q09 2Q09 1Q09 FY09 FY08Profitability & ROAE 5.9% 5.9% 4.5% 3.4% 3.8% 4.4% 1.0%Margin ROAA 0.5% 0.5% 0.4% 0.3% 0.3% 0.4% 0.1%

Cost to Income (proforma) 79.2% 83.9% 91.5% 50.3% 115.8% 79.0% 75.0%Yield on avg earning assets 3.3% 3.5% 3.5% 3.5% 4.1% 3.7% 4.8%Funding costs 1.3% 1.4% 1.4% 1.6% 2.2% 1.6% 2.5%NIM, avg earnings assets 2.2% 2.3% 2.3% 2.2% 2.2% 2.2% 2.6%

Liquidity Loan to deposit 88.4% 90.3% 89.3% 91.2% 90.2% 90.3% 94.2%Loan to depsosit + ST borrowing 84.3% 85.9% 85.6% 85.8% 85.7% 85.9% 89.9%Cash & interbank to earning assets 17.0% 15.4% 13.9% 12.8% 13.6% 15.4% 14.2%

Fee income Fee income/Total income 26.5% 23.9% 23.9% 12.6% 24.6% 19.9% 22.0%Fee income, yoy growth 15.0% 8.2% -6.2% -18.4% -23.4% -10.6% -7.5%

Loan & deposit Loan, yoy Growth -9.3% -13.2% -15.4% -16.0% -11.4% -13.2% -8.7%growth Loan, qoq Growth -2.2% 1.8% -1.2% -7.8% -6.4%

Deposit, yoy Growth -7.5% -9.4% -6.5% -7.7% -8.4% -9.4% -3.3%Deposit, qoq Growth -0.1% 0.6% 1.0% -8.8% -2.2%

Capital Tier I 12.9% 12.3% 11.9% 11.0% 10.6% 12.3% 10.1%(Bank only) Total CAR 16.4% 17.1% 16.2% 15.0% 14.1% 17.1% 13.9%Asset quality Reported NPL (THB million) 52,727 54,095 59,144 59,884 73,957 54,095 69,777

Gross NPL 12.1% 12.7% 14.1% 14.4% 16.0% 12.7% 14.3%NPL coverage 58.6% 57.7% 58.0% 59.9% 60.1% 57.7% 65.8%


Asset growth and leverage

Asset and asset growth

601,379 568,745 550,534 543,653 560,029

-5.4% -3.2%-1.2% 3.0%-0.1%

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

1Q09 2Q09 3Q09 4Q09 1Q10

THB

milli

on

-30%

-20%

-10%

0%

10%

20%

30%

40%

Total asset (LHS)Asset growth, QoQ (RHS) Equity and equity growth

47,84847,19446,53946,00246,072

2.5% 1.4%1.4%1.2%-0.2%

0

10,000

20,000

30,000

40,000

50,000

1Q09 2Q09 3Q09 4Q09 1Q10

THB

milli

on

-10%

0%

10%

20%

30%

40%

Total equity (LHS)Equity growth, QoQ (RHS)

Liability to equity ratio

10.5210.8311.3612.0512.80

-2.9%-4.7%-5.7%-5.9%1.1%

0

2

4

6

8

10

12

14

1Q09 2Q09 3Q09 4Q09 1Q10

(x)

-50%

-30%

-10%

10%

30%

50%

Liability to equity ratio (LHS) Growth rate (RHS)


4.5%

3.4%3.8%

0.5%0.5%0.4%

0.3%0.3%

0%

1%

2%

3%

4%

5%

6%

1Q09 2Q09 3Q09 4Q09 1Q100.0%

0.2%

0.4%

0.6%

0.8%

1.0%

ROE (LHS) ROA (RHS)

Source: consolidated financial statements, deposit mix based on bank-only [50]

Key balance sheet item breakdown

Loan breakdown by segment

32.0% 31.4% 29.9%

16.4% 18.1% 18.4% 18.6%

51.5%50.2%49.9%48.4%45.6%

34.1%37.9%

17.5%

0%

20%

40%

60%

80%

100%

1Q09 2Q09 3Q09 4Q09 1Q10

Corporate SME Retail Deposit breakdown

43.9% 39.0%

53.4% 47.6% 50.5% 47.9%

6.2% 5.8% 8.5% 10.5% 10.5%

41.6%40.4% 44.5%

49.7%

0%

20%

40%

60%

80%

100%

1Q09 2Q09 3Q09 4Q09 1Q10


Interest-bearing liabilites

85.5% 82.7% 85.6% 87.0% 87.2%

2.1% 4.5% 3.1% 2.1% 1.6%6.9% 7.7% 6.1% 5.4% 6.8%5.5% 5.1% 5.2% 5.5% 4.4%

0%

20%

40%

60%

80%

100%

1Q09 2Q09 3Q09 4Q09 1Q10

LT borrowingST borrowingInterbank and money marketDeposit

Earning asset allocation

11.8% 12.5% 14.8%19.6% 17.9% 15.1% 16.8%

66.4% 66.6% 67.8% 69.1% 65.8%

1.4% 1.9% 2.1% 2.8% 2.2%12.2% 10.9%

20.2%

0%

20%

40%

60%

80%

100%

1Q09 2Q09 3Q09 4Q09 1Q10

Cash Interbank Investment Loans


Workforce and distribution platform

Number of employee

8,4288,2369,3109,3199,119

0

2,000

4,000

6,000

8,000

10,000

1Q09 2Q09 3Q09 4Q09 1Q10

Employee

Shareholder structure (30 Mar 10)ING bank,

25.2%

Ministry of Finance, 26.1%

JP morgan, 3.6%

Others, 28.6%

Military group, 2.2%

DBS Bank, 6.8%Thai NVDR, 7.5%

Number of branch

470477 483 483

463

400

420

440

460

480

500

1Q09 2Q09 3Q09 4Q09 1Q10

Domestic branches

Number of ATM

2,2782,2572,1522,1802,014

0

500

1,000

1,500

2,000

2,500

1Q09 2Q09 3Q09 4Q09 1Q10

ATM

Note: updated as of 31 Mar 10 [52]

Credit ratings

Standard & PoorsLong Term Debt BB+Hybrid Tier I B+Short Term Debt/Deposits BBank Fundamental Strength Rating D+Outlook Stable

Local RatingTRIS-Long Term Debt A+TRIS - Sub Debt ATRIS - Hybrid Tier I BBB+Fitch - Long Term/Short Term A+/F1 (tha)Fitch - Subordinated debt A (tha)Fitch - Outlook Stable

Fitch RatingFCY - Long Term/Short Term BBB-/F3Sub Debts/Hybrid Tier I BB+/BIndividual C/DSupport Rating Floor/Support BB+/3Outlook Negative

Moody's Investor ServicesLong Term Deposits Baa3Hybrid Tier I B3Short Term Debt/Deposits Prime-3Outlook StableBank Fundamental Strength Rating-Outlook D-/Stable

Source: consolidated financial statements as of Mar 10 [53]

Peer comparison and market share

Asset market share

1,752 1,694

1,345

794

427 396

1,286

132 131559

16.3% 15.7%

12.5%

7.4%

4.0% 3.7%1.2% 1.2%

5.2%

11.9%

-

500

1,000

1,500

2,000

2,500

BBL KTB KBANK SCB BAY TMB SCIB TBANK TISCO KK

THB

billio

n

-5%

0%

5%

10%

15%

20%

Total Asset Market share Loan market share

558

911

114278291360

1,156 1,103954

89

14.2% 13.5%

8.3%

5.4% 4.3%

1.3%

4.1%1.7%

17.2% 16.4%

-

250

500

750

1,000

1,250

1,500

KTB BBL KBANK SCB BAY TMB TBANK SCIB TISCO KK

THB

billio

n

-5%

0%

5%

10%

15%

20%

Gross Loan Market share

Deposit market share

68 65258

1,3221,234

1,010 973

539408

308

18.7%17.4%

14.3% 13.7%

7.6%

4.4% 3.6%0.9%1.0%

5.8%

-

300

600

900

1,200

1,500

BBL KTB KBANK SCB BAY TMB SCIB TBANK KK TISCO

THB

billio

n

-5%

0%

5%

10%

15%

20%

Total Deposit Market share Revenue market share

13,969

2,539 2,0664,4904,969

18,52620,763

25,432

8,475

14,749

21.9%

17.9%16.0%

12.7% 12.0%

7.3%

2.2% 1.8%3.9%4.3%

0

5,000

10,000

15,000

20,000

25,000

30,000

KBANK BBL SCB KTB BAY TCAP SCIB TMB TISCO KK

THB

milli

on

-10%

-5%

0%

5%

10%

15%

20%

25%

Total income market share

Source: consolidated financial statements as of Mar 10, Allowance/BOT requirement based on CB1.1 [54]

Peer comparison and market share (Cont.)

NPL coverage

119.2%108.8% 105.7% 100.9% 97.0%

77.4% 75.1%68.0%

59.9%50.9%

0%

30%

60%

90%

120%

150%

BBL TISCO SCB KBANK TBANK BAY KK SCIB TMB KTB

Allowance/BOT requirement

104.4%107.3%119.9%

132.7%135.5%135.6%143.3%143.6%

184.8%200.6%

0%

40%

80%

120%

160%

200%

TISCO BBL KK SCB TMB KBANK BAY SCIB KTB TBANK

Loan growth (YoY)

10.2% 9.0% 8.9% 8.2% 7.7% 6.7%

3.3%

-0.3% -2.6%

-10.0%

-15%

-10%

-5%

0%

5%

10%

15%

KK KBANK TBANK KTB BAY TISCO SCB SCIB BBL TMB


90.3%93.6%91%94.5%93.7%103.4%

112.9%130.2%

174.9%

0%

30%

60%

90%

120%

150%

180%

TISCO KK TBANK BAY SCB KBANK TMB KTB SCIB

Source: consolidated financial statements as of Mar 10, excluding excess reserve to performing loans from CB.1.1 [55]


Excess reserve to performing loans2.82%

1.46% 1.44%1.22% 1.14% 1.10% 0.98%

0.27%0.12%

2.50%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

BBL TMB SCB KK BAY TISCO SCIB KBANK KTB TBANK

Total NPL

5

85

4940

34 3325

82

54

-

20

40

60

80

100

KTB BBL TMB SCB KBANK BAY SCIB TBANK KK TISCO

THB

billio

n

Provision to gross loan (bps)

60.48

46.38 46.16 44.5436.10

27.84

82.23

58.52

22.19

37.36

0

20

40

60

80

100

TMB SCIB BBL BAY SCB KK KTB KBANK TBANK TISCO

Cost to income ratio

66.7% 63.2%59.3% 56.1% 56.0%

48.5%

79.2%

47.4%47.9%42.1%

0%

10%

20%

30%

40%

50%

60%

70%

80%

TMB KBANK KTB TCAP SCIB BAY TISCO SCB BBL KK

Source: consolidated financial statements as of Mar 10 [56]


Net profit

7078191,343

2,070

3,074

4,364

6,0326,375

7121,116

22.7%

16.4%

7.8%5.0%

24.0%

11.6%

3.1% 2.7%2.7%4.2%

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

SCB BBL KBANK KTB BAY TCAP SCIB KK TISCO TMB

THB

milli

on

0%

5%

10%

15%

20%

25%

Net profit growth, YoY

101.4%

71.3%

21.6%

116.2%

14.8%14.9%

-38.7%

62.1% 56.9%

23.9%

-40%

-20%

0%

20%

40%

60%

80%

100%

120%

KK BAY SCIB TMB TISCO BBL KTB SCB KBANK TCAP

ROAE & ROAA

22.2%

10.8%

17.6%

8.9%10.2%

12.0%13.9%

15.7%17.7%

5.9%

4.5%

2.0% 2.1% 1.4% 0.8% 1.0% 1.0%1.3%0.5%

2.0%

0%

5%

10%

15%

20%

25%

TISCO KK SCB TCAP KBANK BBL KTB SCIB BAY TMB-10%

-7%

-4%

-1%

2%

5%

ROE (LHS) ROA (RHS) Net interest margin

5.2% 5.0%

3.8% 3.7% 3.6%

2.3%3.0% 2.9%

5.2%

3.2%

0%

1%

2%

3%

4%

5%

6%

BAY TISCO KK TCAP KBANK SCB SCIB KTB BBL TMB

Souce: BOT as of Mar 10, *commercial banks as of Mar 10 [57]


Number of branch

49 40155

334

463570

687805

914990 12.7%

10.6%

6.2%

2.9%0.9% 0.7%

8.6%

14.9%17.0%

18.4%

-

200

400

600

800

1,000

1,200

SCB BBL KBANK KTB BAY TMB SCIB TBANK KK TISCO0%

4%

8%

12%

16%

20%

No. of branch market share Branch distribution

21576 50 63 59

646 632 637

1,7091,768

9.3%10.0%

7.7%

4.4%

12.2%

-

400

800

1,200

1,600

2,000

BMA Centre Northeastern North South0%

2%

4%

6%

8%

10%

12%

14%

TMB Industry market share

Number of employee*20,260

19,22217,584

15,365

9,331

2,905

8,4287,016

9,431

2,072

0

4,000

8,000

12,000

16,000

20,000

BBL SCB KTB KBANK TCAP BAY TMB SCIB TISCO KK

Total revenue per employee 1.66

1.50

1.02 1.000.90 0.87

0.710.53

0.960.84

0.0

0.20.4

0.6

0.81.0

1.2

1.41.6

1.8

KBANK BAY BBL KK SCB TCAP TISCO KTB SCIB TMB

THB

mill

ion

[58][58]

Company history

1957 TMB Bank Plc. was established on November 1957 with Field Marshal Saridi Dhanarajata as the first Chairman of the Board ofDirectors and initial registered capital of THB10 million.

1983 The Bank was listed on the Stock Exchange of Thailand (SET) on December 23, 1983.

2004 TMB was merged with DBS Thai Danu and IFCT effectively on September 1, 2004. Total assets grew to THB700 billion.

2005 The Bank rebranded to “TMB Bank Public Company Limited” with a new slogan of “Better Partner, Better Value”.

2006 The Bank issued US$200 million non-cumulative hybrid debt capital instruments (Hybrid Tier 1).

2007 The Bank succeeded in raising THB37.6 billion new capital. ING Group, the new major shareholder, holds 30.1% (including via NVDR) and MOF holds 26.1%.

[59][59]

Awards and mandates

Lead arranger of Advance Info Service unsecured debenture of THB7.5billion (Jan 09)

Full service cash management to Central Retail Corporation (Feb 09)

Cheque payment to National Housing Authority (Feb 09)

Lead arranger of PTT Aromatics unsecured debenture of THB15 billion (Apr 09)

Joint lead arranger of PTT Exploration and Production unsecured debenture of THB40bn (May 09)

Joint lead arranger of Bangkok Dusit Medical Services unsecured Debenture of THB3bn (June 09)

Joint lead arranger of Quality House unsecured debenture of THB 2.5 billion (Jul 09)

Joint lead arranger of PTT Plc unsecured debenture of THB 35 billion (Jul 09)

Lead arranger of Electricity Generating Authority of Thailand unsecured bond of THB1 billion (Aug 09)

[60][60]

Awards and mandates-(Cont.)

Joint lead arranger of Easy Buy guaranteed debenture of THB3.5billion (Aug 09)

Joint lead arranger of Toyota Leasing (Thailand) guaranteed debenture of THB1.15 billion (Sep 09)

Joint lead arranger of the Bank of Thailand saving bond of THB130.7 million (Sep 09)

Joint lead arranger of Krung Thai card Plc. unsecured debenture of THB7.5 billion (Nov 09)

Joint lead arranger of Thaicom Plc. unsecured Debenture of THB7bn (Nov 09)

Join lead arranger of Thai Oil unsecure debenture of THB3,000 million (Apr 10)

Lead arranger of Kiatnakin Bank unsecured debenture of THB2,920 million (Feb-Mar 10)

2010 Financial Insights Innovation Awards (FIIA) won for establishing the “TMB No Slip” service

Best Bond Award 2009 in the most creative issue category by ThaiBMA from the offering of TMB-IT-One

[61]

Three-phase customer centric transformation

Phase 3:Market Leadership

Phase 2:Differentiation &Quality Growth

Phase 1: Laying the Foundation

2008-2009 2010-2011 2012- onward

• Reorganization• Branch transformation• End-to-end process• HR transformation • Risk management

• Service and operational excellence

• Product expansion• Channel enhancement• Brand enhancement

• New standards for customer service

• New standards for financial management

• TMB group offering

[62][62]

TMB WAY and five core values

Thank You.IR contacts:Head of IR departmentPassakorn Linmaneechote CFATel: 662 299 2519Email: [email protected]

Jittrawadee SrivichitTel: 662 299 1178Email: [email protected]

Taweechai ChachiamchenTel: 662 242 3440Email: [email protected]

tmb bank plc. · 1q10 results review ... this presentation contains some information from other...

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