Tmbthanachart Bank Public Company Limited · SET:TTB
Tmbthanachart Bank Public — TMB Bank Public Company — Q1 2020 Earnings Presentation
20 slides from Tmbthanachart Bank Public's earnings presentation, April 2020
Slide 1: Investor Presentation 1Q20 Performance
Investor Presentation 1Q20 Performance Investor Relations April 2020
Slide 2: TMB group financial progress
TMB group financial progress • Financial results and integration execution in 1st quarter remain on track as post-merger structure allows the Bank to be more resilient • Banking industry continues to be challenged by halt in economy and pressure on asset quality brought by the pandemic • 2020 medium
Slide 3: 1Q20 Financial Performance & Asset Quality
1Q20 Financial Performance & Asset Quality Bancassurance partnership transaction Summary Post-Merger Integration Update 3
Slide 4: Post-merger deposit and loan structure creates opportunities to enhance yields
Post-merger deposit and loan structure creates opportunities to enhance yields Total Deposit Total Loan THB billion THB billion Flat YTD +0.8% YTD 1,404 1,398 1,398 Retail-unsecured 1,392 5% 5% TD+NCD 30% 26% ~56% ~56% Retail-secured 51% 51% Retail Retail Hybrid 39% 42% Small SMEs 7% 7% 31% ~32% 26%
Slide 5: Cost of deposit, loan yield and NIM improved broadly
Cost of deposit, loan yield and NIM improved broadly Cost of Deposit Loan Yield Net Interest Margin (NIM) +37 bps QoQ 6.00% +42 bps YoY +43 bps QoQ +23 bps YoY 5.50% 5.25% 3.12% 4.83% 4.88% 2.89% 5.00% 2.69% -22 bps QoQ -8 bps YoY 4.50% 1.51% 4.00% 1.37% 1.29% 3.50% 3.00% (1) (1) (1) 1Q19 4Q19 1Q20
Slide 6: Quick-win cost synergies started to yield results
Quick-win cost synergies started to yield results Total Operating Income Total Operating Expense Cost-to-Income Ratio THB million THB million Non-NII 19 ,00 0 18,195 +55% QoQ NII +114% YoY 56% 55% -10% QoQ 17 ,00 0 4,182 +15% QoQ -11% YoY +26% QoQ 15 ,00 0 +83% YoY 46% 13 ,00 0 11,716 +76% YoY 9,0 0
Slide 7: Contribution from HP bancassurance business has improved foundation upgrades
Contribution from HP bancassurance business has improved foundation upgrades of the Merged Bank Total Non-Interest Income (Non-NII) Breakdown Strategic Fee Products THB million Net fees & service income Other Non-NII Total Non-NII THB million 1,560 +37% QoQ 1,141 +82% YoY +15% QoQ 857 4,182 +83% YoY
Slide 8: Growth in PPOP reflected quick-win synergy realization
Growth in PPOP reflected quick-win synergy realization Pre-Provision Operating Profit (PPOP) THB million +91% QoQ +160% YoY 9,862 5,164 3,790 1Q19 4Q19 1Q20 • PPOP was recorded at THB 9.9 bn, +91% QoQ and +160% YoY 8
Slide 9: Asset quality under pressure; extra ECL set aside
Given asset quality under pressure from challenging quarters ahead, the Bank has already set aside extra ECL to manage the uncertain future outlook from virus impact Loan Classification (%) Provision & Credit Cost Allowance for ECL Loans included interbank Provision (THB million) THB million +3% QoQ
Slide 10: Net profit increased QoQ and YoY due to topline growth and well-managed cost
Net profit increased QoQ and YoY due to topline growth and well-managed cost Net Profit THB million +158% QoQ 4,163 +164% YoY 1,579 1,615 1Q19 4Q19 1Q20 • Net profit attributed to the Group was at THB 4,163 mn, +158% QoQ and +164% YoY • ROE for the Group was at 8.5% in 1Q20 10
Slide 11: Capital adequacy ratio remains strong
Capital adequacy ratio remains strong Capital Adequacy Ratio (CAR) Tier Ratio CAR BoT's min. requirement Tier I BoT's min. requirement 20% 18.9% 18.8% 17.4% 20% 15% 14.6% 14.5% 15% 13.6% 11.00% 11.00% 11.00% 10% 10% 8.50% 8.50% 8.50% 5% 5% 0% 0% 1Q19 4Q19 1Q20 1Q19 4Q19 1Q20 • Solid capital as of Ma
Slide 12: Bancassurance Partnership Transaction Summary
1Q20 Financial Performance & Asset Quality Bancassurance Partnership Transaction Summary Post-Merger Integration Update 12
Slide 13: Banca partnership announced with Prudential for the next 15 years
Banca partnership announced with Prudential for the next 15 years FWD Exclusivity with TMB Transition Period Prudential Exclusivity 1 Jan 17 - 31 Mar 20 1 April - 31 Dec 2020 1 Jan 2021 - 31 Dec 2035 THB 4.4 bn THB 1.3 bn (already recognized 0.3 bn in 1Q20) A TMB Income recognition over 3 years and
Slide 14: Post-Merger Integration Update
1Q20 Financial Performance & Asset Quality Bancassurance Partnership Transaction Summary Post-Merger Integration Update 14
Slide 15: Integration plan in 1Q20 progressed as plan
Integration plan in 1Q20 progressed as plan New Merged Bank ▪ New merged bank organizational structure ✓ organization ▪ Top management already transferred to merged bank structure ✓ Strategic direction ▪ Cascaded the Merged Bank direction to employees of both banks via series of Management On Ground
Slide 16: Integration: from plan to action - Management On Ground & On Tour
Integration: from plan to action Management On Ground & Management On Tour Strategic direction cascade sessions to TMB and TBANK employees successfully completed just before the pandemic 16
Slide 17: Integration: from plan to action - All hands event
Integration: from plan to action All hands event in Q1 2020 to communicate the Merged Bank’s direction, values and culture 17
Slide 18: TMB & TBANK Co-located branches
TMB & TBANK Co-located branches 10 Co-location branches lived More than 90 branches in 2020 18
Slide 19: Accelerating synergy value through digital capabilities
Accelerating synergy value through digital capabilities Pre-EBT EBT Post-EBT Facilitate merged bank Single digital platform Key mobile banking initiatives to facilitate the facilities 1 merged bank’s integration such as TBANK loan bill Accelerate digital adoption and payment on touch, Touch cardless
Slide 20: Investor Relations
Investor Relations www.tmbbank.com/ir ir.tmb@tmbbank.com Disclaimer: The information in this material is in summary form and does not purport to be complete. No representation or warranty, expre ss or implied, is or should be made concerning, and no reliance should be place on, the accuracy, fairnes
TMB Bank Public Company — Q1 2020 Earnings Presentation on 6ix