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

Transcription

1 TMB Bank PCL. Building the Best Transactional Bank in Thailand APAC Financial Corporate Day (Singapore and Hong Kong) December 2013

2 Management and shareholder structure 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 Top management team Mr. Boontuck Mr. Piti Mr. Paphon Mr. Bernard Wungcharoen Tantakasem Mangkhalathan Coucke akun CEO CWBO Mr. Thanomsak Chotikaprakai Mr. Jan Van Wellen** CSSO CFO CRO COO CRBO Mr. Lorenzo Bassut*** Chief Retail Banking Officer Chief Risk Officer Chief Finance Officer Chief Operating 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 Long experience as Chief Finance Officer. Last position, Chief Finance Office of Standard Charter (Thailand) 10 years of experience as Chief Operating Officer with ING in Russia, Hungary and Hong Kong Note:*Included Royal Thai Army, Thai Navy, Thai Air Force, RTA Entertainment Co. Ltd. and Military unit **Official effective date was May 1 st, 2013, ***Official effective date was October 1 st, 2013 [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 Competitive scale (10% deposit market share) Sustained profitability 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 and Top tier engagement level [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 Tangible result from the Deposit led strategy Development of TMB transactional accounts, both for business and individuals, 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 the strongest peers in 2012 and remained on par during 2013 Cost of deposit (ex. DPA) 4 Big banks TMB 1.9% 1.7% 1.5% 1.67% 1.66% 1.54% 1.61% 1.64% 1.3% 1.1% 1.07% 1.22% 0.9% 0.7% 0.5% 0.70% FY2010 FY2011 FY2012 9M13 Source: Consolidated financial statements [6]

7 Leading to NIM improvement TMB s average loan yield has improved, 6.5% thanks to shift in loan mix toward higher 6.0% yielded lending i.e. Small and Medium 5.5% Enterprise 5.0% Yield on Loans (inc. Hire purchase) TMB 4 Big banks 4.5% 4.0% 3.5% 3.0% FY2010 FY2011 FY2012 9M13 From better yield and improving cost of fund, TMB s NIM has closed the gap with top tier peers in Thailand Net Interest Margin 4 Big banks TMB 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% 0% FY2010 FY2011 FY2012 9M13 Source: Consolidated financial statements [7]

8 Non NII growing together with NII NIM enhancement and performing loan growth led to consistent growth in Net interest income Non interest income base has also consistently increased mainly from increase in fee and service income Net interest income THB million 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2, ,416 14,235 Non NII (ex. gain on sale of assets) THB million 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1, ,065 14,820 FY2010 FY2011 FY2012 9M13 5,751 6,581 7,641 6,137 FY2010 FY2011 FY2012 9M13 Source: Consolidated financial statements [8]

9 The focus on efficiency has steadily improved TMB s cost to income ratio Growth in NII and Non NII formed a consistent growth of total revenue, reflecting the bank s ability to offer better services and products which derived from customer understanding The bank also has been focusing on cost efficiency through lean initiatives which has allowed the bank to manage cost well Operating income and expenses THB million Operating income Operating expenses 30,000 25,000 20,000 15,000 10,000 5,000 0 FY2010 FY2011 FY2012 9M13 As a result, TMB s cost to income ratio has been brought down and the gap with top tier peers is Cost to Income Ratio (ex. extra items) 4 Big banks TMB being closed 90.0% 80.0% 70.0% 60.0% 50.0% 0% 40.0% 30.0% 20.0% 10.0% 0.0% FY2010 FY2011 FY2012 9M13 Source: Consolidated financial statements [9]

10 Downside risk has been limited TMB s continuous and proactive debt restructuring NPL Formation NPL formation (LHS) efforts together with NPL sale has brought NPL down close to top peers THB Million 12, % An uplift of credit underwriting standard has improved and contained NPL formation rate Coverage ratio has also been lifted up to be on par with the top tier peers 10,000 8,000 6,000 4,000 2, % % NPL formation to total loans (RHS) Annualized 1.5% 1.4%* 3.0% 2.0% 1.0% 0.0% 1.0% 2.0% 0 12M10 12M11 12M12 9M13 3.0% NPL Ratio (ex. Interbank) 4 Big banks TMB 12.0% NPL Coverage Ratio 4 Big banks TMB 150.0% 9.0% 6.0% 3.0% 120.0% 90.0% 60.0% 30.0% 0.0% FY2010 FY2011 FY2012 9M13 0.0% FY2010 FY2011 FY2012 9M13 Source: Consolidated financial statements [10]

11 3Q13 and 9M13 financial performance update [11]

12 Financial performance: Improvement in operation continues Operating performance continued to improve. Pre Provision Operating Profit 4,000 3,500 3,000 3,414 2,500 2,846 2,884 2,000 1,500 1, PPOP (internal) 3,724 3,311 3Q12 4Q12 1Q13 2Q13 3Q13 Pre provision core operating profit (PPOP) amounted to THB 3,311 mn in 3Q13, up 16.3% YoY. 9M13 PPOP totaled to THB10,448 mn or grew 39.0% YoY. Key PPOP drivers are both interest income and fee and service income, together with efficiency enhancement 3Q13 net profit was THB1,870mn and 9M13 profit was THB3,938mn, or 35.6% improved ROE of 3Q13 was 12.6% and 9 month ROE was 9%. Source: consolidated financial statements [12]

13 Financial performance : NII and NIM improved from higher loan yields, volume growth and well managed funding cost Net interest income and NIM THB million 6,000 5,000 4,000 3,000 2,000 1, % 2.88% 2.95% Net income from interest (NII) (LHS) Net interest margin (NIM) (RHS) 2.99% 3.07% 4,421 4,655 4,753 4,878 5, % 3Q12 4Q12 1Q13 2Q13 3Q13 3.2% 3.0% 2.8% 2.6% 2.4% 2.2% 3Q13 Net interest income (NII) was THB5,188 mn (+17.3% YoY and +6.3% Q0Q), mainly from better performing loan yields and larger loan volume, especially small enterprise (SE) loan. 3Q13 net interest margin (NIM) was at 3.07%, up +25bps YoY. The sharp rise was mainly from SE loan growth and partly from interest income from restructured loan. NIM, Deposit&BE cost and Loan yield Without the extra interest, NIM stood at 2.97%, Yield on loan Cost of deposit & BE Net interest margin (NIM) rose +15bps YoY, relatively flat QoQ. 7.0% 6.0% 5.0% 4.0% 3.0% 5.64% 5.68% 5.78% 5.89% 6.05% 2.82% 2.88% 2.95% 2.99% 3.07% For 9M13, NII increased to THB14,820 mn (+19.4% Y0Y) with NIM increased by 34bps to 3.01%. 2.0% 1.0% 0.0% 0% 2.17% 2.15% 2.10% 2.18% 2.22% 3Q12 4Q12 1Q13 2Q13 3Q13 Source: consolidated financial statements [13]

14 Financial performance : Non interest income rose YoY, driven by net fee income Total non interest income (ex gain on assets) THB million Total non interest income increased by 5.7% YoY, 2,400 driven mainly by a 11.8% YoY growth in net fees and service income. 2,000 1,600 1,200 2,204 1,983 1,982 1,871 1,770 The increase was mainly from higher mutual fund, credit related fee, Bancassurance and ATM % Non interest income to earning assets 3Q % 4Q % 1Q % 2Q % 3Q % For 9M13, non interest income was THB6,137 mn, growing 21.2% from 9M12 Net fee income breakdown 3Q13 Credit card/ merchant & ATM, 17% Cash management & Payment, 5% Mutual fund & Bancassurance, 36% Credit related, 35% Trade finance, 3% Others, 4% Source: consolidated financial statements, *fees breakdown is based on bank only basis, 1Q12 4Q12 numbers were restated as per accounting standard [14]

15 Financial performance : Efficiency improved from revenue enhancement and cost management Operating income and expenses THB million Operating income Operating expenses 8,000 7,000 6,191 6,638 6,735 6,000 5,000 4,000 9 month YoY growth Operating income = 20.1% Operating expenses = 6.6% 7,083 7,058 3,000 3,359 3,709 3,368 3,390 3,752 2,000 1, Q12 4Q12 1Q13 2Q13 3Q13 Operating cost to income ratio 70.0% 60.0% 50.0% 40.0% 54.0% 56.6% 53.1% 49.3% 47.4% Total non interest expenses were THB3,577mn, relatively lti l flat YoYY If excluding reversal of provision from TAMC & provision for other liabilities and loss on properties foreclosed, non interest expenses rose 11.7% YoY The rise in expenses were mainly from staff and training costs as well as marketing expenses. Cost to income ratio (CI) was at 53.1% in 3Q13. The 9 month CI was 50% The improvement of CI reflected higher efficiency from lean initiatives and well controlled costs. 30.0% 20.0% 10.0% 0.0% 3Q12 4Q12 1Q13 2Q13 3Q13 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 [15]

16 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 496bn 478 bn 36.5% 35.0% 35.5% 37.3% 516bn 38.3% As of 3Q13, deposits totaled tothb516.2bn, up 8.0% QoQ and 4.0% YTD, thanks to an inflow of retail deposits from No Fixed, ME and newly launched time deposit product (9 month TD ). 300, , , % 30.6% 10.9% 3Q % 24.6% 29.1% 11.3% 4Q % Cost of deposit&be (Incl. DPA) 3.0% 2.5% 23.2% 30.6% 10.7% 1Q % 26.1% 29.8% Excluding DPA fee of 46bp 27.9% 27.2% Retail deposit and Transactional account expansion remained on track No Fixed grew 13.3% Q0Q and 10.2% YTD. 6.8% 6.7% ME grew 34.9%Q0Q and 135.5% YTD. 2Q % 3Q % 2.17% 2.15% 2.10% 2.18% 2.22% One Bank One Account together with Free Flow Daily Account grew 31.1% QoQ and 146.5% YTD Deposit cost slightly rose to 2.2% or +4bps from 2Q13 due to growth in No fixed and ME accounts. 2.0% 1.5% 1.0% Retail deposit represented 68.8% of total deposit as of 3Q % 0.0% 0% 3Q12 4Q12 1Q13 2Q13 3Q13 Source: consolidated financial statements, * No fixed account started in May 2011, ME started in Dec.11, 9M TD launched in Sep 4 th Oct 4th [16]

17 Financial performance: Performing loan mix shifted to higher yield with good momentum Performing Loan Breakdown WBG BB SE Retail THB million 450, , bn 19% 15% 431bn 18% 15% 432bn 18% 17% 442bn 18% 18% 453bn 250,000 16% 17% 17% 17% 17% 150,000 50% 50% 48% 47% 46% 18% 20% SME mix= 37% As of Sep 13, total loans were THB475.2 bn, increased 2.4% QoQ and 5.0% YTD. Performing loans were THB453.5bn, rose 2.6% QoQ and 5.3% YTD. The increase was mainly from SME performing loan growth especially small enterprise (SE). Retail lending increased 1.9% QoQ and 2.3% YTD, thanks to unsecured loans and credit card. 50,000 3Q12 4Q12 1Q13 2Q13 3Q13 Because of strong growth, SME performing loan mix increased to 36.5% in 3Q13. Loan yield SE loan rose by 11.4% QoQ and 35.5% YTD 6.4% 6.2% 6.0% 5.8% 5.6% 5.4% 5.2% 5.64% 5.68% 5.78% 5.89% 6.05% BB loan grew by 3.4% QoQ and 6.4% YTD. Total SME loans, hence, enlarged by 7.6%QoQ and 20.4% YTD. Loan yield continue to improve as a result of shifting of loan mix 5.0% 3Q12 4Q12 1Q13 2Q13 3Q13 Source: Yields on loan calculated from consolidated financial statement, Performing loan breakdown based on bank only [17]

18 Financial performance: Volume growth during 3Q13 catching up with market with quality Deposit growth 10.0% 7.9% 8.0% TMB Sector (7 largest banks) 8.4% 9.5% TMB s deposit growth picked up in 3Q13 mainly from increase in retail deposit which replaced the exit of a large corporate account in the previous quarter 6.0% 4.0% 2.0% 2.5% 0.0% 0% QoQ (3Q/13 2Q/13) Past 12 month Loan growth 12.0% 10.0% 8.0% TMB Sector (7 largest banks) 9.1% 11.3% Loan growth mainly contributed by higher yielded segment.i.e. SME, and smaller size of corporate loans, which not only improve average yield but increase diversification of lending 6.0% 4.0% 2.0% 2.4% 1.7% 0.0% QoQ (3Q/13 2Q/13) Past 12 month Source: Consolidated financial statement [18]

19 Financial performance: NPL remained on track to achieve the bank s target Non performing loans THB million 35,000 30,000 25,000 20,000 15,000 10,000 5,000 28, % Non performing loans (LHS) Gross NPL ratio (RHS) 7.0% 6.0% 22,103 21,872 22,137 21, % 4.0% 4.10% 4.00% 4.03% 3.79% 3.0% 0 2.0% 3Q12 4Q12 1Q13 2Q13 3Q13 Consolidated NPLs werethb22,767 million, dropped 1.5% YTD. Consolidated NPL ratio as of Sep 13 declined to 3.79%. NPA ratio reduced further to 0.24%, due to ongoing sale of NPA as planned Property foreclosed THB million 2,500 2,000 1,500 1, ,335 2,151 2,071 Net properties foreclosed (LHS) Percentage of gross NPA (RHS) 4.0% 1,913 1, % 0.30% 0.28% 0.27% 0.24% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0 0.0% 3Q12 4Q12 1Q13 2Q13 3Q13 Source: consolidated financial statements [19]

20 Coverage ratio maintained at high level Provision to performing loan to performing loan Provision for NPL/NPL 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% Counter cyclical buffer 2.6% 2.3% 2.5% 3.3% 3.4% 80% 70% 60% 50% 40% 30% 45% 66% 67% 65% 67% 1.0% 20% 0.5% 10% 0.0% 0% 3Q12 4Q12 1Q13 2Q13 3Q13 0% 3Q12 4Q12 1Q13 2Q13 3Q13 NPL coverage ratio NPL Coverage ratio *NPL Coverage ratio (Bank Only) 150% 130% 110% 90% 70% 50% 132% 138% 113% 118% 83% Coverage ratio remained strong both for performing loans and non performing loans Total allowance/total NPL was 138% on consolidate basis, compared with 146% of Top 4 banks 30% 10% 85%* 118%* 124%* 139%* 145%* The bank intends to maintain the ratio at high level 10% 3Q12 4Q12 1Q13 2Q13 3Q13 Source: consolidated financial statements [20]

21 Financial performance : TMB maintains strong capital base Capital adequacy ratio (CAR) 20% 18.90% 18.16% 17.31% 16.86% 16.83% 15% 10% 8.50% 8.50% 8.50% 8.50% 8.50% 5% Capital adequacy ratio (CAR) Applied with Basel III after 1Q13 onward Minimum BOT requirement 0% 3Q12 4Q12 1Q13 2Q13 3Q13 Tier I Capital 14% 12% 10% 8% 6% 4% 2% 0% 11.63% 11.11% 11.50% 11.26% 11.24% 6.00% 6.00% 6.00% 4.25% 4.25% Tier I Capital Applied with Basel III after 1Q13 onward Minimum BOT requirement 3Q12 4Q12 1Q13 2Q13 3Q13 The bank continued to maintain capital base at high level under Basel III requirements As of September 2013, the Capital Adequacy Ratio (CAR) and Tier I Capital were reported at 16.8% and 11.2%, respectively The bank also has planed to maintain capital at strong level Source: Bank only basis, * Basel III [21]

22 TMB strategy and progress [22]

23 Achieved tangible results from the transformation Strengthened Fundamentals at TMB Manage cost of fund to match the top tier peers Consistent increase of NII NIM enhancement Increase efficiency and bring down cost to income ratio Continued increase of PPOP Continue to reduce NPL and maintain high coverage ratio Maintain high capital base under Basel III [23]

24 Going forward. Launched Brand Make THE Difference TMB Branded Customer Experience Deepen Share of Wallet Initiatives for Product Service Service Operational Excellence Physical Channel Optimisation Acquisition of Quality Customers Innovative Products ROE 14% Quality Deposit by 2014 and sustained profitability Risk Management People Reorganisation HR Transformation Process Lean Six Sigma Process Improvement [24]

25 Appendix: TMB financial i statement tt t [25]

26 Selective financial numbers and ratios: Comprehensive income statement for consolidation (Unit:THB million) 3Q13 2Q13 % Δ QoQ 3Q12 % Δ YoY 9M12 % Δ YOY Statement of Comprehensive Income Interest income 8,738 8, % 7, % 22, % Interest expenses 3,550 3, % 3, % 10, % Net income from interest 5,188 4, % 4, % 12, % Fees and service income 1,811 1, % 1, % 4, % Fees and service expense % % 1, % Net fees and service income 1,324 1, % 1, % 3, % Total other operating income % % 1, % Non interest income 1,891 2, % 1, % 5, % Total operating income 7,079 7, % 6, % 17, % Non interest expenses 3,577 3, % 3, % 0 10, % 07% Bad debt and doubtful accounts and impairment loss of debt securities 1,195 3, % 1, % 3, % Profit before income tax expense 2, % 1, % 3, % Income tax expense % % % Net profit 1, % 1, % 2, % Other comprehensive income (20) (57) N/A (42) N/A (67) N/A Total comprehensive income 1, % 1, % 2, % Net profit for the period attributable to: Equity holders of the parent 1, % 1, % 2, % Source: consolidated financial statements [26]

27 Selective financial numbers and ratios: Consolidated financial position Unit: THB million 3Q13 2Q13 % Δ QoQ 3Q12 % Δ YoY 12M12 YTD Cash, Interbank and repurchase 129, , % 107, % 117, % Investments 103,309 99, % 102, % 109, % Loans 475, , % 435, % 452, % Accrued interest receivables 1,093 1, % 1, % % Less Allowance for doubtful accounts & Revaluation ation allowance ance 30,142 29, % 23, % 24, % Loans and AIlowance net 446, , % 413, % 428, % Properties foreclosed net 1,805 1, % 2, % 2, % Premises and equipment net 11,508 11, % 10, % 11, % Goodwill from transferred business and other intangible net % % % Deferred tax assets 3,903 4, % 4, % 4, % Other assets 42,351 40, % 26, % 42, % Total Assets 739, , % 669, % 716, % Deposits 516, , % 476, % 496, % Interbank and Money Market Items 68,049 72, % 43, % 66, % Borrowings 39,672 40, % 47, % 43, % Deferred tax liabilities 1,026 1, % % 1,059 31% 3.1% Other liabilities 54,500 61, % 42, % 53, % Total Liabilities 679, , % 610, % 659, % Shareholders' equity 59,849 57, % 58, % 57, % Non controlling interest % %% % LIABILITIES & SHAREHOLDERS' EQUITY 739, , % 669, % 716, % Source: consolidated financial statements [27]

28 Appendix: TMB product highlights hli ht [28]

29 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 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 multi purpose credit line, or 5 year installment loan Source: * TCG, renamed from SBCG (Small Business Credit Guarantee Corporation), is a state owned enterprise established to support domestic SME business [29]

30 Transactional Banking Products that provide better value proposition for customers : Commercial banking customers Retail banking customers [30]

31 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 py pack Large payment pack THB150K 0.125% Under the account name of juristic person: 0.375% 35 Under the account name of ownership: 2.25% (Effective to 31 July 2012) 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) 10 free of charge for any transfer to other banks Buy 1 get 1 free of cheque book 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 [31]

32 SME: TMB One Bank One Day enhance SME liquidity by same day cheque clearing 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 [32]

33 Retail: Selected innovative products for customer s convenience No Slip, Internet Banking, Beep&Bill and No Worry Saving Product Feature TMB no slip TMB is the first bank to enable transaction service (deposit and withdrawal) at teller with one ID card service, won FIIA This service enhances customer centricity strategy for less complexity and minimizes time consuming on paper Award 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 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 different 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 TMB Beep & Bill Payment service through mobile phone and the Bank will send a SMS to alert within 2 3 days before payment due date Payment 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. TMB no worry saving account bundling between saving account with non secured loans 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 [33]

34 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 [34]

35 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 [35]

36 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 til 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 [36]

37 Introducing better Deposit Products [37]

38 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 [38]

39 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** [39]

40 Thank You. TMB Bank Public Company Limited 3000 Phahonyothin Road Website: Chatuchak, Bankok investor.rel@tmbbank.com 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.