TMB Bank PCL. Building the Best Transactional Bank in Thailand. Thailand Focus August Make THE Difference

Transcription

1 TMB Bank PCL. Building the Best Transactional Bank in Thailand Thailand Focus August 2013

2 Management and shareholder structure after 2008 Major shareholders (24 April 2013) Management s past experiences/credentials ING BANK N.V., 25.16% Thai NVDR, 8.76% DBS BANK, 2.64% Chief Executive Officer More than 20 years in Thai banking with broad experience in corporate banking, capital market, and SME banking Ministry of Finance, 26.06% Others, 33.34% Military group*, 2.15% HSBC (SINGAPORE) NOMINEES, 1.90% Chief Wholesale Banking Officer Chief SME and Supply Chain Officer Extensive experience in corporate banking and capital market in top Thai banks Extensive experience in SME and micro business in top Thai banks Mr. Boontuck Wungcharoen CEO Top management team Mr. Piti Tantakasem CWBO Mr. Paphon Mangkhalathan akun CSSO Mr.Bernard Coucke CRBO Chief Retail Banking Officer Chief Risk Officer Last 16 years in ING in different management roles. Latest position was Head of private banking clients ING Global More than 13 years in risk management in ING: Chief Risk Officer at ING IVBL, India, Senior Credit Officer, ING Amsterdam Mr. Thanomsak Chotikaprakai CFO Mr. Jan Van Wellen** CRO Mr. Simon Andrews COO Chief Finance Officer Chief Operating Officer Long experience as Chief Finance Office. Last position, Chief Finance Office of Standard Charter (Thailand) Risk Director of ING Direct UK and Head of Sale and operation ING Direct Australia Note:*Included Royal Thai Army, Thai Navy, Thai Air Force, RTA Entertainment Co. Ltd. and Military unit **Official effective date was 1 May 13 [2]

3 TMB aspirations: To be the leading Thai bank, with 14% ROE by FY2014 The Leading Thai Bank with World Class Financial Solutions Market leadership Sustained profitability Competitive scale (10% deposit market share) Top quartile shareholders return (ROE ~ 14%) Strong funding structure (40% transactional deposit contribution) Main bank status (~ 20% customer market share in wholesale/sme/retail segments) Sustainable revenue mix: 40% contribution from consumer banking 40% contribution from SME and 30% contribution from non-interest income Customers Top tier satisfaction/ Engagement level Regulators Good Rating Employees Employer of Choice For Financial Service [3]

4 Three-phase Transformation: Moving toward the Best Transactional Bank Phase 2: Differentiation & Quality Growth Phase 3: Building Market Leadership The Best Transactional Bank Phase 1: Laying the Foundation onward Reorganization Branch transformation End-to-end process HR transformation Risk management Service and operational excellence Product expansion Channel enhancement Brand enhancement Implement Branded Customer Experience Clear 5 Strategic Intents [4]

5 TMB strategic intents: The elements to achieve our aspirations while managing cost of deposits to be in line with leading peers Have Strong Customer Understanding at individual level and community level that enable the Bank to develop innovative products and services that match with customer s needs while managing servicing expenses down to enable the Bank to have better liquidity management, better risk management and lower cost of deposit Grow Quality Deposit Build Transactional Banking Excellence Optimise Capital & Liquidity Utilisation in every part of the organisation through Lean Organisation and Lean Six Sigma to support strong growth of sales and servicing transaction Ensure Cost Efficiency Management by focusing more on better risk adjusted return segments as well as achieve level of profit expected by investors [5]

6 Deposit led-strategy, crystallized into Transactional Excellence, has improved deposit cost Development of TMB transactional accounts, both for business and individual, led to strategic interest rate reduction in CASA in 2012 Transactional Banking Account Provide transactional convenience that outweigh lower saving interest rate Savings & Investment Account Provide higher interest rate for saving and investing than traditional saving account with higher flexibility Products: TMB No fee TMB No Limited One Bank One account Free float Products: No fixed account ME by TMB As a results, deposit cost has improved to match top peers Cost of deposit (ex. DPA) 4 Big-banks TMB 1.9% 1.7% 1.5% 1.3% 1.1% 1.67% 1.54% 1.61% 1.07% 1.22% 0.9% 0.7% 0.5% 0.70% FY2010 FY2011 FY2012 Source: Consolidated financial statements [6]

7 2Q13 and 1H13 financial performance update [7]

8 Financial performance: Core operation improvement retained its momentum Pre-Provision Operating Profit THB million 4,000 3,500 3,000 2,500 2,000 2,846 2,884 2,431 3,414 PPOP (internal) 3,724 Operating performance remained on track Pre-provision core operating profit (PPOP) in 2Q13 improved by 53.2% comparing to same quarter last year (YoY) and 9.1% QoQ to THB3,724 mn. 1,500 1, Q12 3Q12 4Q12 1Q13 2Q13 The growth of operating profit was driven mainly by 25.3% revenue growth (YoY) from both net interest income and non-interest income together with efficiency enhancement Source: consolidated financial statements [8]

9 Financial performance : NIM improvement from yield enhancement and well-managed funding cost Net interest income and NIM THB million 6,000 5,000 4,000 3,000 2,000 1, % 2.82% 2.88% 2.95% 2.99% 4,051 4,421 4,655 4,753 4,878 2Q12 3Q12 4Q12 1Q13 2Q13 NIM, Deposit&BE cost and Loan yield 7.0% 6.0% Net income from interest (NII) (LHS) Net interest margin (NIM) (RHS) Yield on loan Cost of deposit & BE Net interest margin (NIM) 5.50% 5.64% 5.68% 5.78% 5.89% 3.2% 3.0% 2.8% 2.6% 2.4% 2.2% 2.0% Net interest income (NII) was THB4,878 mn, increased by 20.4%YoY, mainly from better performing loan yields and larger small enterprise loan volume Net interest margin (NIM) for 2Q13 continued to improve to 2.99%. On QoQ basis, NII rose by 2.6% mainly due to better loan yield and well-funding cost management. NIM slightly improved by 4bps 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 2.68% 2.82% 2.88% 2.95% 2.99% 2.23% 2.17% 2.15% 2.10% 2.18% 2Q12 3Q12 4Q12 1Q13 2Q13 Source: consolidated financial statements [9]

10 Financial performance : Non-interest income rose driven by increase of net fee income and foreign exchange business THB million 2,400 2,000 1,600 1, % Non-interest income to earning assets Total non-interest income (ex gain on assets) 1,615 2Q % Net fee income breakdown - 2Q13 Cash management & Payment, 6% 1,770 3Q % 1,983 1,982 4Q % 1Q % Mutual fund & Bancassurance, 44% 2,204 2Q % Total non interest income increased by 37.4% YoY, driven mainly from 30.8% YoY growth of net fees and service income and 53.6% YoY growth in FX business Fee growth was mainly driven by fee from bancassurance sale, mutual fund front end fee, credit related fee and ATM For QoQ,total non-interest income rose by 12.8%. Net fees income grew 5.8% and gain from FX business expanded by 31.8% Credit card/ merchant & ATM, 17% Credit-related, 28% Trade finance, 3% Others, 2% Non-interest income to earning assets climbing up to 1.4% in this quarter, closer to top peers (1.9%) Source: consolidated financial statements, *fees breakdown is based on bank only basis, 1Q12-4Q12 numbers were restated as per accounting standard [10]

11 Financial performance : Efficiency improved from revenue enhancement with well-controlled costs Operating income and expenses THB million 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1, ,666 Operating income 6,191 3,271 3,359 Operating expenses 6,638 6,735 3,709 YoY growth Operating income = 25.0% Operating expenses = 3.7% 7,083 3,368 3,390 2Q12 3Q12 4Q12 1Q13 2Q13 Total non-interest expenses were THB3,302million, decreased 5.1%YoY On QoQ basis, total non-interest expenses dropped by THB74 million or 2.2%QoQ. If excluding reversal of provision from TAMC & provision for other liabilities and loss on properties foreclosed, non-interest expenses rose 3.7% YoY. With the same basis, expense rose 0.7% QoQ. Operating cost to income ratio 70.0% With revenue enhancement of 25.3% YoY and 5.7% QoQ, operating cost to income ratio reduced to 47.4% in 2Q % 50.0% 40.0% 56.9% 54.0% 56.6% 49.34% 47.4% The improvement of CI reflected higher efficiency from practice of lean initiatives and well -control led costs 30.0% 20.0% 10.0% 0.0% 2Q12 3Q12 4Q12 1Q13 2Q13 Remark: Operating income excluded gain on sale of asset Operating expenses excluded Loss on impairment of properties foreclosed, Provisions of obligation on transfers of non-performing assets, Provision for other liabilities Source: consolidated financial statements [11]

12 Financial performance : Increasing focus on Retail deposit and Transactional deposit base Deposit mix Current Saving No Fixed & ME Fixed THB million 500, bn 496 bn 496 bn 477 bn 478 bn As of Jun 2013, total deposits were THB478.14bn, decreased 3.7%QoQ and 3.6%YTD 400, , , ,000 0 % Retail Deposit 34.6% 23.1% 29.7% 12.6% 2Q % 36.5% 21.9% 30.6% 10.9% 3Q % Cost of deposit&be (Incl. DPA) 3.0% 35.0% 24.6% 29.1% 11.3% 4Q % 35.7% 23.1% 30.5% 10.7% 1Q % Excluding DPA fee of 46bp 37.5% 26.1% 29.7% 6.8% 2Q % The decrease was largely due to an outflow of large current accounts with volatility Nevertheless, the bank s differentiated deposits are growing well One Bank One Account grew 76% YTD and balance is exceed THB10bn in 2Q13 ME by TMB grew 75% YTD. After reached THB10bn in 1Q13, it continued to expand. The balance was booked at THB13.5bn in 2Q13 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% 2.23% 2.17% 2.15% 2.10% 2.18% 2Q12 3Q12 4Q12 1Q13 2Q13 Deposit cost slightly up QoQ in 2Q13 from growth in No-fixed and ME Retail deposit contributed 68% of total deposit as of 2Q13 Source: consolidated financial statements, * No fixed account started at May 2011, ME strated in Dec.11 [12]

13 Financial performance: Performing loan mix shifted to higher yield with good momentum Performing Loan Breakdown WBG BB SE Retail THB million 450, , , ,000 50, bn 19% 14% 15% 52% Loan yield 6.4% 6.2% 6.0% 5.8% 5.6% 5.4% 5.2% 407bn 19% 15% 16% 50% 431bn 18% 15% 17% 50% 432bn 18% 17% 17% 48% 442bn 18% 18% 17% 47% 2Q12 3Q12 4Q12 1Q13 2Q % 5.64% 5.68% 5.78% 5.89% SME mix= 35% As of 2Q13, total loans were THB464.2 bn, increased 2.2%QoQ and 2.5% YTD. Performing loans were THB442bn, rose by 2.2% QoQ and 2.7% YTD The increase was mainly from growth of SME performing loan growth especially small enterprise (SE). Retail lending increased slightly 0.8% QoQ and 0.4% YTD mainly from unsecured loans From continued growth, SME performing loan mix increased to 35% in 2Q13 SE loan rose by 10.2%QoQ and 21.7%YTD, fairly in line with the bank s target BB loan grew by 2.2%QoQ and 2.9%YTD Total SME loans, therefore, enlarged by 6.2%QoQ and 11.9% YTD Loan yield continue to improve as a result of shifting of loan mix 5.0% 2Q12 3Q12 4Q12 1Q13 2Q13 Source: Yields on loan calculated from consolidated financial statement, Performing loan breakdown based on bank-only [13]

14 Financial performance: NPL stable, remained on track to achieve the bank s target Non performing loans THB million Non performing loans (LHS) Gross NPL ratio (RHS) 35, % 30,000 28,169 28, % 25,000 22,103 21,872 22,137 20, % 5.44% 5.0% 15, % 10, % 4.00% 4.03% 3.0% 5, % 2Q12 3Q12 4Q12 1Q13 2Q13 Consolidated NPLs werethb22,137 million, stable YTD Consolidated NPL ratio as of Jun-13 fairly stable at 4.0% NPA ratio was reduced further to 0.27%, due to ongoing sale of NPA as planned Property foreclosed THB million 3,000 2,500 2,000 1,500 1, Net properties foreclosed (LHS) Percentage of gross NPA (RHS) 2,741 2,335 2,151 2,071 1, % 0.35% 0.30% 0.28% 0.27% 2Q12 3Q12 4Q12 1Q13 2Q13 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% Source: consolidated financial statements [14]

15 Financial performance: NPL Formation on the downward trend NPL Formation THB Million 12,000 10, % 2.1% NPL formation (LHS) % NPL formation to total loans (RHS) % New NPL to total loans (excl. NPL relapse) (RHS) * Annualized 1.8% 1.5% 1.5%* 3.0% 2.0% Total NPL formation (Relapse NPL + new NPL) has declined consistently 8,000 6, % 1.4% 1.4%* 1.0% 0.0% % NPL formation to total loans declined from 2.5% in 2010 to 1.5% in 6M13 4, % 2, M10 12M11 12M12 1H13-2.0% -3.0% % New NPL to total loans also declined from 2.1% in 2010 to 1.4% in 6M13 NPL by year of origination % NPL formation pace is line with the bank s plan to reduce NPL ratio to close to 3% at the year end Majority of NPL was originated before Y and before 82.0% NPL as of Dec 2012 = THB20bn Source: bank only [15]

16 TMB set THB4,143 million for countercyclical provision to increase buffer for performing loans Million Baht Total countercyclical provision 4,143 Provision for normal business + 1,147 Release excess provision for NPL Total provision in 1H13 = 4,699 As a response to BoT s recommendation on proactive provision scheme, TMB set an extra countercyclical provision for performing loan of THB4,143mn in first half of 2013 Provision for normal business was THB1,147mn in 1H13 The bank released excess provision for NPL amounted THB591million from the outflow of NPL Source: bank only [16]

17 Consequently, coverage of performing loans rose to 3.3% Provision to performing loan to performing loan 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 2.5% 2.6% 2.5% 2.3% 3.3% Counter cyclical buffer Provision for NPL/NPL 80% 70% 60% 50% 40% 30% 20% 43.7% 45.2% 66.5% 67.5% 64.7% 0.5% 10% 0.0% 2Q12 3Q12 4Q12 1Q13 2Q13 0% 2Q12 3Q12 4Q12 1Q13 2Q13 NPL coverage ratio NPL Coverage ratio *NPL Coverage ratio (Bank Only) 150% 130% 110% 90% 70% 50% 30% 10% 132% 113% 118% 79% 83% 81%* 85%* 118%* 124%* 139%* As a consequence of extra countercyclical provision, provision coverage for performing increased to 3.3%. Provision coverage for NPL remained high at 65% Total allowance/total NPL (coverage ratio) rose to 132% on consolidate basis and 139% on bank only basis -10% 2Q12 3Q12 4Q12 1Q13 2Q13 Source: consolidated financial statements [17]

18 PPOP of 6 months grew 53%, net profit after provision increased by 16% Pre-provision operating profit ,137 Net Profit THB million 2,500 Net profit ,675 2,000 1,500 1,785 2, , H12 1H13 0 1H12 1H13 Pre-provision operating profit (PPOP) in first half of 2013 recorded at THB7,137mn, rose by 53% compared to same period last year Net profit of 1H13, after provisions, was THB2,068mn, grew by 16% compared to 1H12 Source: consolidated financial statements [18]

19 Financial performance : TMB maintained high capital base Capital adequacy ratio (CAR) Tier I Capital 20% 18.72% 18.90% 18.16% 17.31% 16.86% 14% 12% 11.47% 11.63% 11.11% 11.50% 11.26% 15% 10% 10% 8.50% 8.50% 8.50% 8.50% 8.50% 8% 6% 4.25% 4.25% 4.25% 6.00% 6.00% 5% 0% Capital adequacy ratio (CAR) - Applied with Basel III after 1Q13 onward Minimum BOT requirement 2Q12 3Q12 4Q12 1Q13 2Q13 4% 2% 0% Tier I Capital - Applied with Basel III after 1Q13 onward Minimum BOT requirement 2Q12 3Q12 4Q12 1Q13 2Q13 The bank continued to maintain capital base at high level under Basel III requirements As of June 2013, the Capital Adequacy Ratio (CAR) of the bank under Basel III calculation was 16.9%. Tier 1 was 11.3% Source: Bank-only basis, * Basel III [19]

20 TMB strategy and progress [20]

21 Progress of TMB Strategic Intents TMB Strategic Intents Have Strong Customer Understanding Grow Quality Deposit Build Transactional Banking Excellence Optimise Capital & Liquidity Utilization Ensure Cost Efficiency Management Progress Continued to emphasize customer understanding in DNA of TMB Brand Launched internally branded customer experience supported by organization alignment to further focus on customer understanding Retail accounts for 68% of deposits No-fixed and ME deposits acquired nearly 1 million active retail customers, now with over THB 100 Bn and growing One Bank One Account acquired 27,000 active customers, now with nearly THB 15 Bn and growing Reinforced positioning ธ รกรรมการเง นต องท เอ มบ (Transactional Banking, must be TMB) with upgrades of benefits for all customers from July 2013 Continued to lead the market in product innovations in transactional banking across segments such as OBOA, No fee, Free Flow Improved NIM to 2.99% in 2Q2013 ahead of original plan Proportion SME growing to 35% of loan book Revenue for 1H13 grew 23% while NIE grew 4% yoy (already exclude impact of one time items) C/I decreased to 48% in 1H13 [21]

22 Strong foundation in place for future growth Launched Brand Make THE Difference TMB Branded Customer Experience Deepen Share of Wallet Initiatives for Product Innovative Products Quality Deposit Service Service Operational Excellence Physical Channel Optimisation Acquisition of Quality Customers ROE 14% by 2014 and sustained profitability Risk Management People Reorganisation HR Transformation Process Lean Six Sigma Process Improvement [22]

23 Appendix: TMB financial statement [23]

24 Selective financial number and ratio: Comprehensive income statement for consolidation (Unit:THB million) 2Q13 1Q13 % Δ QoQ 2Q12 % Δ YoY 1H13 1H12 % Δ YOY Statement of Comprehensive Income Interest income 8,296 8, % 7, % 16,378 14, % Interest expenses 3,417 3, % 3, % 6,746 6, % Net income from interest 4,878 4, % 4, % 9,632 7, % Fees and service income 1,921 1, % 1, % 3,793 2, % Fees and service expense % % % Net fees and service income 1,448 1, % 1, % 2,816 2, % Total other operating income % % 1,429 1, % Non interest income 2,251 1, % 1, % 4,245 3, % Total operating income 7,129 6, % 5, % 13,877 11, % Non interest expenses 3,302 3, % 3, % 6,678 6, % Bad debt and doubtful accounts and impairment loss of debt securities 3,566 1, % % 4,676 2, % Profit before income tax expense 262 2, % 1, % 2,524 2, % Income tax expense % % % Net profit 255 1, % % 2,075 1, % Other comprehensive income (57) (16) N/A % (73) (25) N/A Total comprehensive income 198 1, % 1, % 2,002 1, % Net profit for the period attributable to: Equity holders of the parent 252 1, % % 2,068 1, % Source: consolidated financial statements [24]

25 Selective financial number and ratio: Consolidated balance sheets Unit: THB million 2Q13 1Q13 % Δ QoQ 2Q12 % Δ YoY 1H13 12M12 YTD Cash, Interbank and repurchase 116, , % 126, % 116, , % Investments 99, , % 103, % 99, , % Loans 464, , % 421, % 464, , % Accrued interest receivables 1, % 1, % 1, % Less Allowance for doubtful accounts & Revaluation allowance 29,206 25, % 22, % 29,206 24, % Loans and AIlowance - net 436, , % 400, % 436, , % Properties foreclosed - net 1,913 2, % 2, % 1,913 2, % Premises and equipment - net 11,385 11, % 12, % 11,385 11, % Goodwill from transferred business and other intangible - net % % % Other assets 40,666 45, % 31, % 40,666 42, % Total Assets 711, , % 681, % 711, , % Deposits 478, , % 484, % 478, , % Interbank and Money Market Items 72,371 71, % 33, % 72,371 66, % Borrowings 40,133 42, % 56, % 40,133 43, % Other liabilities 61,886 66, % 48, % 61,886 53, % Total Liabilities 653, , % 624, % 653, , % Shareholders' equity 57,959 59, % 56, % 57,959 57, % Non-controlling interest % % % LIABILITIES & SHAREHOLDERS' EQUITY 711, , % 681, % 711, , % Source: consolidated financial statements [25]

26 Appendix: TMB product highlights Brand Consideration & Employee engagement [26]

27 SME: Further improve SME service offering, through behavior credit model we now can offer: In addition to previous TMB s successful campaign of credit extension 3 times of collateral value - Credit limit of two-third times of collateral is guaranteed by Thai Credit Guarantee Corporation (renamed from SBCG)* Through our behavior credit model, we can further offer our SME customers,.. 1. Funding for emergency need additional working capital by 15% of OD, approving within 3 days 2. Funding for business expansion additional 1 time of existing collaterals as OD or multipurpose credit line, or 5-years installment loan Source: * TCG, renamed from SBCG (Small Business Credit Guarantee Corporation), is a state-owned enterprise established to support domestic SME business [27]

28 Transactional Banking Products that provide better value proposition for customers : Commercial banking customers Retail banking customers [28]

29 SME: TMB One Bank One Account attract more SME transactional accounts TMB One Bank One Account - features : Maintain minimum deposit in TMB saving account, for different packages; standard, small payment and large payment in the amount of THB50bn, THB150bn and THB350bn respectively Type Minimum deposit balance required Interest rate for min balance Special interest rate for the balance that exceed minimum balance requirement Benefit Product benefit: Deposit and withdraw at any branches Cheque clearing with free of service charge for inter-branch and inter-region Free transfer between TMB account At the end of 2012, number of total SME CASA A/C was about 427,000 accounts, increased by 9.7%yoY Small payment pack THB150K 0.125% Under the account name of juristic person: 0.375% Under the account name of ownership: 2.25% (Effective to 31 July 2012) 10 free of charge for any transfer to other banks Buy 1 get 1 free of cheque book Large payment pack THB350K 0.125% Under the account name of juristic person: 0.375% Under the account name of ownership: 2.25% (Effective to 31 July 2012) 30 free of charge for any transfer to other banks Buy 1 get 1 free of cheque book Source: the company, update as of 24 JAN 13 [29]

30 SME: TMB One Bank One Day enhance SME liquidity by same-day chequeclearing TMB One Bank One Day features : Cheque clearing within 1 day, (check-in before 11 a.m., receive money after 4 pm.) both of intra-region and inter-region Fee charge: THB10 for intra-region, THB0.1% of cheque amount for inter-region (min fee charge is THB10) TMB One Bank One Day & TMB One Bank One Account TMB One Bank One Day Local clearing cheque THB10 per issue THB10 per issue BC 0.1% of cheque amount (min THB10) 0.1% of cheque amount (min THB10) report No fee No fee Note: release date 26SEP12 [30]

31 Retail: Selected innovative products for customer s convenience No Slip, Internet Banking, Beep&Bill and No Worry Saving Product TMB no slip service, won FIIA Award Feature 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 Innovation Award (FIIA) for customer engagement TMB internet banking not just online-banking, but at TMB is new and different TMB Beep & Bill Payment TMB no worry saving account bundling between saving account with non-secured loans Open New Account Online by yourself both Savings and Term Deposit including our TMB No fixed 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-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. No form is needed. TMB No Fee Savings account can be used with TMB Internet Banking to save your monthly fee expense first launch as at 9 May 2011 Payment service through mobile phone and the Bank will send a SMS to alert within 2-3 days before 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, International phone bill, TOT* Another transactional banking service that TMB offers to client via monthly bill payment. It reflects to TMB philosophy to become the Thai leading transactional banking. First launch as at 22 July 2011 Product bundling between saving account and working capital loan which is non-secured loan. Fixed income customer (20 60 years old) at minimum of THB20k per month Credit limit not over 0.5 time of basis salary, THB10kup to THB30k withdraw 24 hours Only ID card and required documents for new application at TMB branches [31]

32 Retail: TMB no limit debit card one card for all ATMs in Thailand and unlimited transactions Bangkok Upcountry TMB no limit debit card - feature 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 No annual fee [32]

33 Retail: TMB free flow daily account extended to create TMB as the best transactional bank TMB Free Flow Daily Account - features : Saving account with no minimum balance requirement in the account At least onetime deposit of THB15,000 a month, unless THB50 will be penalized Free 10 transactions per month Customer can hold either TMB Free Flow Daily account or TMB No Fee Saving account Target for mass customer and above Current saving rate was 0.125% as at 23 Apr 13 [33]

34 Retail: TMB no fee savings accounts most innovative deposit 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 Saving rate as at 24 Jan 13 was 0.125% Average balance account was much higher than 20K minimum balance, but will slightly decline going forward with more account acquisition The product still able to attract new customer even after launched for almost 2 years [34]

35 Introducing better Deposit Products [35]

36 Retail: TMB no fixed account the best choice with flexibility and high interest rate TMB No fixed account - features Get high interest rate with no time restriction Receive 2.75% interest rate as at 23 Apr 13 No minimum amount and deposit period required Customers can deposit/withdraw whenever they want (2 times per month) at the bank counter [36]

37 Retail: ME by TMB Online banking with high rate but reducing operating cost ME by TMB product introduction : Just like normal no fixed deposit with high deposit rate (4 times normal saving rate) No limit for deposit and withdraw transaction per month, Free 2 times transfer payment No maintenance fee for any available balance 24 hrs transaction via internet and ME call center** [37]

38 Better Employee Engagement Better Customer Engagement [38]

39 Brand consideration, retained good momentum Brand Consideration : Strong improvement in term of brand consideration from 31% in May 2009 when we started tracking 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% TMB Average Top % 90.2% 92.8% 89.0% 76.6% 81.0% 84.0% 72.0% 67.0% 31.0% May 09 Dec 09 Dec 10 Dec 11 Dec 12 TMB Brand Consideration (%) *Brand Consideration = It s the only bank I would consider + It s one of only 2 or 3 banks I would consider + It s one of several banks I would consider Source: GALLUP

40 TMB Employee engagement, further improved Employee engagement Actively disengaged Not engaged Engaged 0.9:1 4.1:1 5.3:1 7.6: FY2009 FY2010 FY2011 FY2012 Employee engagement (Percentile) Employee engagement (Percentile) 83rd 76th 70th 13th FY2009 FY2010 FY2011 FY2012 Source: Gullop survey [40]

41 Thank You. IR contacts: Jittrawadee Srivichit Tel: Tharnkamol Tharakij Tel: Kanokrat Laithong Tel: ext 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.