Tmbthanachart Bank Public Company Limited · SET:TTB
Tmbthanachart Bank Public — Macquarie Asia Conference 2025
47 slides from Tmbthanachart Bank Public's conference presentation, May 15, 2025
Slide 1: Investor Presentation 1Q25 Financial Performance
Investor Presentation 1Q25 Financial Performance Macquarie Asia Conference Hong Kong, 15 May 2025
Slide 2: Executive summary
Executive summary With Thailand’s uneven economic recovery, the country’s direction to reduce household debt and the over capacity in commercial sector, banking industry’s domestic loan growth is constrained. Global political and trade conflicts even pose more risks to overseas portfolio. Given unfa
Slide 3: Transformation journey towards the most recommended bank of choice
Transformation journey towards the most recommended bank of choice TBANK Auto lending Leader Ready to take off for TMB better performance and Launch of new ttb shareholder value creation Top performing deposit franchise Touch / Biz One and setup of ttb Spark Integration of 2 banks Financial closing
Slide 4: Improvement pathway of key business drivers: 2018-24
Improvement pathway of key business drivers: 2018-24 Before 2019 2019-2021 2022-2024 Pre-merger Merger & Integration Integration Covid-19 Pandemic Completion 61% 31% Moving towards Before % Retail retail banking After Optimized 8% loan structure % SMEs 29% ▪ Sub-scale medium- ▪ D-SIB bank with sized
Slide 5: 1Q25 Financial Results
1Q25 Financial Results FY2024 Actual FY2025 Targets 1Q25 Actual Loan growth -6.6% YTD Approx. 0% - 2% -2.4% YTD Deposit growth -4.2% YTD In line with loan growth -2.3% YTD INCOME Net Interest Margin 3.26% 3.1% - 3.25% 3.19% Non-NII growth -6.0% YoY Single digit growth +1.9% YoY (YoY) -3% if excluded
Slide 6: ttb Strategic intent and aspirations
ttb Strategic intent and aspirations Recap: Recap:governing the Bank’sthoughts strategicon the bank’s direction intent Our long-term aspirations ▪ Optimize for return while maintaining economy of scale gained thru the merger. • Top-quartile ROE of >10% ▪ Increasingly shift loan mix towards retail wh
Slide 7: ttb strategy framework
ttb strategy framework Short term (1 year) Medium term (2-3 years) Long term (3-5 years) 1 Effective asset-liability management 2 Digital-first revenue generation engines a) Customer-centric lending transformation Revenue b) Customer engagement to win main-bank relationship c) Beyond banking ecosyst
Slide 8: ttb strategy framework
ttb strategy framework Short term (1 year) Medium term (2-3 years) Long term (3-5 years) 1 Effective asset-liability management 2 Digital-first revenue generation engines a) Customer-centric lending transformation Revenue b) Customer engagement to win main-bank relationship c) Beyond banking ecosyst
Slide 9: Effective asset-liability management to sustain net interest margin
1 Effective asset-liability management to sustain net interest margin Total loan mix Total deposit mix Key initiatives (%) Retail (%) Current Earning assets Saving SMEs • Selective loan growth focusing on retail 35% Hybrid Deposit Corporate 6% • Shift to high-yield lending products Time Deposit 29%
Slide 10: Maintaining quality growth strategy amid economic uncertainty
1 Maintaining quality growth strategy amid economic uncertainty Total Loan Used Car Others 1,253 bn 1,241 bn 1,211 bn -2.4% YTD 15% 1% 1% Retail Credit Card 3% 3% 0.3% 3% 3% Retail Personal Loan 3% 4% 30% 29% Cash Your car (CYC) Retail HP 29% 21% New Car 63% Cash Your Book (CYB) Retail Mortgage 26%
Slide 11: Optimizing deposit level to ensure effective deposit cost management
1 Optimizing deposit level to ensure effective deposit cost management Total Deposit Term Deposit -2.3% YTD Shift in TD mix towards shorter duration 1,329 bn 1,298 bn Breakdown as % to total TD 1,296 bn Time deposit 38% 34% 34% Short to Medium TD Long-term TD Hybrid Dec-23 Mar-25 25% 25% 26% Saving
Slide 12: Balancing loan and deposit strategy to ensure sustainable NIM performance
1 Balancing loan and deposit strategy to ensure sustainable NIM performance Loan Yield Cost of Deposit 1Q24 2Q24 3Q24 4Q24 1Q25 1Q24 2Q24 3Q24 4Q24 1Q25 MPC QoQ - - - -25 bps -25 bps MPC QoQ - - - -25 bps -25 bps Yield QoQ +7 bps +3 bps -4 bps -6 bps -5 bps Cost QoQ +18 bps +7 bps +1 bps -6 bps -5 b
Slide 13: Ensuring portfolio quality and optimal duration along with changing yield curve
1 Ensuring portfolio quality and optimal duration along with changing yield curve Healthy Investment Portfolio HTC&S Portfolio Breakdown Improving Investment Yield Investment portfolio 120% ▪ Enhance returns with Thai Corp 187 bn or 11% of total assets THB Govt FCY Bond and Foreign currency (FCY) 4.
Slide 14: Optimizing borrowing structure and cost where possible
1 Optimizing borrowing structure and cost where possible Optimized Borrowing Structure Borrowing Cost Vs. Effective Borrowing Cost* THB billion Total borrowing Subdebt THB million Senior debentures -31 bps QoQ 73.2 and other borrowings 4.27% 4.27% 4.33% - 25 bps YoY 4.24% 4.02% 59.6 68% 639 637 40.4
Slide 15: ttb strategy framework
ttb strategy framework Short term (1 year) Medium term (2-3 years) Long term (3-5 years) 1 Effective asset-liability management 2 Digital-first revenue generation engines a) Customer-centric lending transformation Revenue b) Customer engagement to win main-bank relationship c) Beyond banking ecosyst
Slide 16: Digital-first revenue generation engines
2 Digital-first revenue generation engines Customer-Centric Lending Customer Engagement Ecosystem Play ▪ Upfront credit assessment ▪ Personalized messaging to ▪ Seamless customer journey in through “My Credit” widget drive effective cross-selling the entire value chain through ▪ Risk-based pricing t
Slide 17: “My Credit” widget continues to transform how ttb lends
2 “My Credit” widget continues to transform how ttb lends as a bank and accelerate sales momentum via digital Confirm personal Receive Digital Booking % Digital Select Info + grant pre-approve objective e-NCB consent credit offer CYC (Unit) Personal loan (Unit) 15% 20% 29% 54% 61% 66% 15% QoQ -7% Qo
Slide 18: Data-driven hyper-personalization engine for customer engagement
2 Data-driven hyper-personalization engine is our tools to become customer centric and achieve richer engagement with customers Impressions millions 114 4.2x 1Q24 1Q25 Views millions 16 4.6x 1Q24 1Q25 Clicks millions 3 3x 1Q24 1Q25 18
Slide 19: Gamification and status tiers to better engage customers
2 Gamification and status tiers as additional tools to better engage customers along their life cycles to ultimately win main bank relationship Customer status tiers (To be launched in April 2025) Gamification (Launched Q4 2024) 19
Slide 20: Car owner ecosystem – Deepening engagement with car owners
2 Car owner ecosystem – Deepening engagement with car owners through digital platforms My Car Roddonjai 1.8mn ~ 1mn Visits to My Car (1Q25) Unique monthly visitors (1Q25) > 900k > 87k Cars onboarded Cars listed > 75k > 50% Easy pass registered of sold cars are financed with ttb Motor insurance via M
Slide 21: Homeowner ecosystem – Enriching homeowners' relationships
2 Homeowner ecosystem – Enriching homeowners' relationships through lifetime solutions via My Home and our ecosystem partners My Home Refinance & Retention Credit Card Spending of ttb home-loan customer ~ 50% holds ttb credit card +18% YoY retention rate growth ▪ Bill management with home members Gl
Slide 22: Salaryman ecosystem – Broadening digital solutions for employers and employees
2 Salaryman ecosystem – Broadening digital solutions for both employers and employees Payroll Engagement & Well-being My Work by ttb Total company acquired > 8.4k > 1,000 Total payroll companies Companies onboarded 15% QoQ 5x YoY ~ 1mn > 200 Total payroll employees Companies converted to premium ver
Slide 23: Wealth ecosystem – Maximizing and growing wealth
2 Wealth ecosystem – Maximizing and growing wealth through suits of wellness products and solutions Wealth Customer Savings – Retail FCD1/ Wellness Investment2/ > 400 ▪ Easy account > 70% management Of Private banking Private banking customer acquired via ttb touch customers hold investment ▪ Up to
Slide 24: ttb strategy framework
ttb strategy framework Short term (1 year) Medium term (2-3 years) Long term (3-5 years) 1 Effective asset-liability management 2 Digital-first revenue generation engines a) Customer-centric lending transformation Revenue b) Customer engagement to win main-bank relationship c) Beyond banking ecosyst
Slide 25: Cost discipline through digitalization and branch optimization
3 Cost discipline through digitalization and branch optimization Branch rationalization focused Digital migration through new on targeted in-person sales and Operational efficiency gains to capabilities and foundation staff productivity uplift be progressively realized Digital share of financial tra
Slide 26: Strong digital transactions’ momentum in financial, non-financial and sales
3 Strong digital transactions’ momentum well-maintained in financial, non-financial and sales Financial transaction Non-financial transaction Digital sales Channel mix of all financial Deposit % Digital Deposit account opening (‘000 accounts) transactions % Others 37% 38% 53% Branch ATM/CDM Digital
Slide 27: Continuing reduction in customer contacts across physical touchpoints
3 With on-going expansion of digital migration, continuing reduction in customer contacts across all physical touchpoints Branch Contact Center Traffic at branch (’000 customers) Contact center volume (Mn calls) -28% (YoY) Reduction in card activation -19% -12% transactions 0.89 0.83 0.78 -12% (YoY)
Slide 28: Common staff-assisted platform with ttb Touch to be rolled out in 2025
3 Common staff-assisted platform with seamless omni-channel capabilities with ttb Touch to be rolled out in 2025 Strategic intent: Better customer experience given faster turnaround time and seamless ttb Enterprise omni-channel journey RM/ Sales ttb touch Uplift staff productivity given less Shared
Slide 29: ttb strategy framework
ttb strategy framework Short term (1 year) Medium term (2-3 years) Long term (3-5 years) 1 Effective asset-liability management 2 Digital-first revenue generation engines a) Customer-centric lending transformation Revenue b) Customer engagement to win main-bank relationship c) Beyond banking ecosyst
Slide 30: Proactive and prudent approach to risk management
4 Proactive and prudent approach to risk management Conservative loan staging Prudent ECL set-up Proactive collections Normal ECL (THB bn) DPD 160 ,000 Extra ECL Voice Bot system 140 ,000 1-30 120 ,000 5.5 5.1 5.3 9.6% 4.8 4.7 Classified 4.6 5.0 100 ,000 0.6 1.1 as stage 2 0.2 31-60 80,0 00 4.5 0.6
Slide 31: Conservative loan staging
4 Conservative loan staging DPD Profile VS Loan Staging Internal data for managerial view - Breakdown as % of Loan principals (excluded interbank) Conservative Staging Policy 4.8% +30% in LLR 160 ,000 4.7% from pre-Covid19 LLR 140 ,000 Total loans* 3.1% DPD 120 ,000 1-30 DPD Staging DPD Staging DPD
Slide 32: New measures “You Fight, We Help” to ease household debt issue
4 New measures “You Fight, We Help” to ease household debt issue Debt Restructuring Program Impact to ttb & accounting practice ▪ Principal reduction (50%, 70% and 90% of original repayment or installment) and interest rate ~6% of total loans suspension for 3 years or approx. THB 73 bn ▪ Debt settle
Slide 33: Prudent provisioning and LLR levels against future uncertainties
4 Prudent provisioning and LLR levels against future uncertainties ECL & Credit Cost LLR/NPLs Total credit cost (bps) 163 170 156 Normal credit cost (bps) 160 149 150 152 150 Normal ECL (THB mn) +260 bps 140 130 144 Special ECL (THB mn) 120 137 155% 151% 150% 129 130 110 120 138% 150 % 130 % 124% 5,
Slide 34: Ensuring a resilient LLR distribution
4 Ensuring a resilient LLR distribution Distribution of Risk Provision 155% 155% 152% 149% 151% 150% 138% 124% Coverage ratio 70.0 63.5 61.8 60.8 57.4 60.1 59.0 59.1 Allowance for ECL 60.0 53.8 (THB billion) 15.6 14.7 13.3 14.9 15.0 15.3 14.6 10.1 50.0 Stage 1 40.0 21.9 24.5 28.2 29.2 28.9 Stage 2 3
Slide 35: Proactively resolved weak loans to ensure portfolio quality
4 Proactively resolved weak loans to ensure portfolio quality Loan Classification (%) Stage 3 loans and NPL Ratio NPL (THB bn) Stage 1 Stage2 Stage 3 NPL ratio Pre-pandemic 80 16% 14.30% 1.60 tn TFRS9 1.57 tn 80. 0 16% 70 14% 1,600,000 1.50 tn Successfully cleaning 1.44 tn legacy NPLs from 70. 0 Cov
Slide 36: Proactively engaging with customers to facilitate loan restructuring
4 Proactively engaging with customers to facilitate loan restructuring and mitigate potential defaults Before due date Recent past due date Overdue Due date reminders Voice Bot system Restructuring offers E-contract / E-sign (April 2025) Collection Voice Bot Customers system system 1 Submit 2 Call 3
Slide 37: ttb strategy framework
ttb strategy framework Short term (1 year) Medium term (2-3 years) Long term (3-5 years) 1 Effective asset-liability management 2 Digital-first revenue generation engines a) Customer-centric lending transformation Revenue b) Customer engagement to win main-bank relationship c) Beyond banking ecosyst
Slide 38: Efficient use of capital supported by liquidity recycling
5 Efficient use of capital supported by liquidity recycling Net Profit % NII to RWA and Risk Weighted Assets 32,0 00 9.0% 5.1% 8.6% 2,001 5.0% 4.9% 8.2% 9.0 % 5.00% 27,0 00 1,801 4.4% ROE 6.5% 6.6% % NII to RWA 4.2% 7.0 % 1,601 4.00% 22,0 00 5.1% 5.1% 21,031 1,401 18,622 5.0 % Risk-weighted 1,229 1,
Slide 39: ttb strategy framework
ttb strategy framework Short term (1 year) Medium term (2-3 years) Long term (3-5 years) 1 Effective asset-liability management 2 Digital-first revenue generation engines a) Customer-centric lending transformation Revenue b) Customer engagement to win main-bank relationship c) Beyond banking ecosyst
Slide 40: Optimize shareholder value through immediate returns and long-term reinvestments
6 Optimize shareholder value through a balance between immediate returns and long-term reinvestments Immediate returns Long-term reinvestments Dividend payout ratio Digital & IT investments (THB bn) Capital allocations 60% 55% 5.9 50% 5.5 43% 43% 4.8 4.4 35% 4.4 • Dividend payout 3.5 TTB • Share W1
Slide 41: Reinforcing capital position with priority to shareholder interests
6 Reinforcing capital position with priority to shareholder interests Solid Capital with Ample Buffer over Requirement Dividend CET1 & TIER1 CAR Interim dividend Final dividend 60% 55% 50% 20.5% Payout ratio 43% 43% +24% 18.9% 19.3% 18.2% (Full Conso) 35% YoY 16.9% 0.13 14.6% 0.105 0.065 0.073 0.055
Slide 42: Share buyback program
6 Share buyback program Objective Share buyback program Total 2025 2026 2027 • THB 21 bn. buyback program announced on the back of strong capital generation. Max repurchase amount 21 bn 7 bn 7 bn 7 bn ➢ Structurally increasing EPS and ROE Max no. of shares (mn shares) TBC 3,500 TBC TBC • We are well
Slide 43: Appendix
Appendix 43
Slide 44: Emergency Relief Measures for Earthquake Victims
Emergency Relief Measures for Earthquake Victims Relief Measure Impact to ttb Mortgage portfolio Total Loan Assistance packages include payment holidays, emergency loans, portfolio of Mortgage Condominium 1,211 bn ~25% and reduced interest rates as well as personal accidental insurance 27% Others Fr
Slide 45: Growth in non-loan fee areas amid sector challenges
Growth in non-loan fee areas amid sector challenges Bancassurance fee Non-related to loan LG fee Commercial -Loan related fee Related to loan THB million THB million THB million Loan-related fees -17% QoQ 1,075 -6% YoY +2% QoQ 946 Flat YoY 891 -25% QoQ -2% QoQ -7% YoY -15% YoY 127 127 125 82 434 376
Slide 46: Accrued interest trend reflecting our conservative approach
Accrued interest trend reflecting our conservative approach TTB has taken conservative approach in revenue recognition for accrued interest treatment during the pandemic, starting in Jan 2021. Accrued interest of loans under modifications in Stage 2 and Stage 3 has been fully provisioning, preemptiv
Slide 47: Disclaimer
Disclaimer: The information in this material is in summary form and does not purport to be complete. No representation or warranty, express or implied, is or should be made concerning, and no reliance should be place on, the accuracy, fairness, or completeness of this information and liability there
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