Tisco Financial Group Public Co. Ltd. · SET:TISCO
Tisco Financial Group Public — TISCO Financial Group — FY2007 Earnings Presentation
23 slides from Tisco Financial Group Public's earnings presentation, Jan 14, 2008
Slide 1: Analyst Meeting 2007
Analyst Meeting 2007 January 14, 2008 Disclaimer: This presentation material may contain forward-looking statements. These forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ from those in the forward looking statemen
Slide 2: Agenda
Agenda • 2007 Achievements • 2007 Key Financial Results • Q&A 2
Slide 3: Major Achievements in 2007
Major Achievements in 2007 HP Growth 19.2% YoY CASA up 48.8%YoY 64.7 54.2 68 66 CASA 45.1 38.6 47 4% 6% FA ST Borrowing 3% 57% 46% 8.8% P=1 CA GR H 71% 39% 48% 26% 2004 2005 2006 2007 2005 2006 2007 AUM Growth 27.2% YoY 19 New Mutual Funds 160 • 4 Foreign Investment Funds (FIF) 140 • 14 Fixed Income
Slide 4: Major Achievements in 2007
Major Achievements in 2007 PPOP up 38.6% YoY & Improving loan spread Net Profit up 6.8%YoY 2,988 2,152 PPOP 4.4 1,546 1,651 Net Profit 3.5 3.1 2006 2007 2005 2006 2007 Fee Income from core businesses Branch Network Expansion growth 12.7% YoY 2006 1Q07 2Q07 3Q07 4Q07 2,039 Bank 1,810 1,594 Brokerage
Slide 5: Major Achievements in 2007
Major Achievements in 2007 Issued long-term debentures Maintained high dividend Debenture Value Rate Maturity TRIS Dividend per share 2003 2004 2005 2006 (MB) (%) Rating preferred share (baht) 1.65 2.30 3.00 3.00 TSCO105A 3,000 3.75 2010 A common share (baht) 0.65 1.30 2.00 2.00 TSCO125A 1,000 4.04
Slide 6: New Products and Services
New Products and Services TISCO Direct Card Fast Track ATM Service TISCO @ Post Bill Payment Tax-Free Deposits Salary Deposit Bancassurance All Purpose Loan Auto Loan Protection 6
Slide 7: Awards
Awards Board of the Year Awards 2006/2007 for Board of the Year for Exemplary Practices and Board with Consistent Best Practices By Thai Institute of Director Association Best Shareholder Treatment Awards 2007 by SET, TSD, and TIRC Best Bank in Thai Baht Corporate Bond 2007 – Sell Side from The Asse
Slide 8: 2007 Financial Highlights
2007 Financial Highlights (Million Baht) 2007 2006 %YOY 4Q07 3Q07 %QoQ 4Q06 %YOY Interest income 6,944 5,705 21.7 1,692 1,684 0.4 1,499 12.9 Interest expense (3,456) (2,899) 19.2 (730) (799) (8.6) (849) (14.0) Net interest income 3,488 2,806 24.3 962 885 8.6 649 48.1 Non-interest income 2,444 2,293
Slide 9: Revenue Structure
Revenue Structure 2006 2007 Wholesales Wholesales Loans - net Loans - net Interbank & MM - Retail Loans - net Interbank & MM - 9% 9% net net Retail Loans - net 40% 4% 4% 43% Proprietary 9% Proprietary 11% Investment Banking Investment Banking 0% 1% Asset Brokerage Fee Banking Fee Brokerage Fee Manag
Slide 10: Interest Income
Interest Income Breakdown % (Million Baht) 2007 2006 % YoY 4Q07 3Q07 4Q06 %YoY 2007 (%) QoQ Loans 1,044 943 10.7 15.0 265 215 22.9 261 1.4 Interbank & MM 442 438 0.8 6.4 48 78 (38.5) 105 (54.2) HP & financial lease 5,173 4,068 27.2 74.5 1,345 1,317 2.1 1,112 20.9 Investment 285 256 11.6 4.1 34 74 (5
Slide 11: Non Interest Income
Non Interest Income Breakdown % (Million Baht) 2007 2006 % YoY 2007 (%) 4Q07 3Q07 4Q06 % YoY QoQ Brokerage Fee 627 649 (3.3) 25.7 176 200 (12.1) 170 3.4 Asset Management Fee 476 295 61.1 19.5 132 144 (8.2) 79 68.1 Investment Banking Fee 37 9 322.6 1.5 21 9 139.6 1 2,727.3 Banking Business Fee 906 85
Slide 12: Operating Expenses
Operating Expenses Breakdown % % (Million Baht) 2007 2006 % YoY 4Q07 3Q07 4Q06 2007 (%) QoQ YoY Personnel expenses 1,487 1,216 22.3 50.4 407 425 (4.2) 408 (0.3) Premises and equipment 512 452 13.3 17.4 137 140 (1.9) 120 14.5 expenses Taxes and duties 118 101 16.3 4.0 27 25 5.9 34 (20.0) Fees and ser
Slide 13: Assets and Liabilities Management
Assets and Liabilities Management Assets Mix Liabilities Mix (Million Baht) (Million Baht) 84,781 104,047 98,953 92,341 72,099 86,579 100% 3% 100% 4% 14% Other assets 80% 80% Other Liabilities Interbank and Repo 60% 65% Investment 60% 92% L-T Borrowings 64% 83% 58% 79% 40% Other Retail Loans 40% Int
Slide 14: Loan Portfolio Breakdown
Loan Portfolio Breakdown Loan Portfolio & CAGR Breakdown by Industry Million Baht 86,420 80,743 80,000 Manufacturing and Real estate and 74,641 Others commerce construction 5% 9% 6% 63,948 Housing Public utilities and 60,000 2% services 3% P = 19.8% 40,000 CAGR H 75% Agricultural and 74% mining 73%
Slide 15: Deposits and Short Term Borrowings
Deposits and Short Term Borrowings Deposits and Short-term Borrowings TISCO Interest Rate Movement (Million Baht) % 10 90,000 76,830 80,000 68,459 8 66,288 5% 70,000 4% 6% 6 60,000 43% 50,000 39% 48% 4 40,000 30,000 2 57% 52% 20,000 46% 0 10,000 6 7 5 06 -06 06 6 6 07 -07 07 07 7 -08 -05 -07 r-0 r-0
Slide 16: Interest Rate Risk
Interest Rate Risk Current Profile 1.60 1.41 1.30 • Duration gap of assets and liabilities slightly 1.40 1.20 increased from 0.90 to 0.92 year. 1.00 • Assets duration increased from 1.30 to 1.41 0.80 0.60 0.49 as a result of the expansion of long-term hire 0.40 0.40 purchase loans. 0.20 0.00 • Meanw
Slide 17: Risk-Based Capital Adequacy
Risk-Based Capital Adequacy 2006 2007 Operational Risk Reserve Operational Risk Listed Equity Non-listed Equity Listed Equity Non-listed Equity 10.4% 4.3% Fixed-income Reserve 14.4% 15.9% 4.3% SME Lending 0% 9.3% Derivatives 0.2% SME Lending 0.3% Derivatives 0.4% 0.1% Fixed-income Banking 0.2% Book(
Slide 18: Hire Purchase Business
Hire Purchase Business Total Hire Purchase : Bt. 64.68 Billion Industry New Car Sales & TISCO Penetration Rate As of December 31, 2007 (Thousand unit) 703 2006 682 631 Subsidiaries 3% 12.4% 10.8% 13.3% 8.1% 8.6% 8.6% 7.8% 7.7% 9.4% 6.8% Motorcycle 4.6% 5% 6.9% Provincial Area -3.0% 57% -7.4% 194 159
Slide 19: Asset Management Business
Asset Management Business Market NAV TISCO Asset Under Management Total 2,500 120 108 27.1% YoY 2,228 100 14% Mutual Fund 2,000 82 85 1,574 Billion Baht 80 98.9% YoY Billion Baht 1,500 13% 9% 28% 1,260 72% 60 25% 29% Private Fund 1,000 61% 66% 40 24.7% YoY 500 11% 9% 8% 58% 62% 62% 28% 25% 20% 20 Pr
Slide 20: Brokerage Business
Brokerage Business Average Daily Turnover TISCO Brokerage Value & Market Share Million Baht Million Baht 21,917 19,422 16,454 16,281 17,097 3.2% 3.3% 3.0% 15,615 3.0% 3.0% 3.0% 2.9% 11,800 Market 15,113 5.0% YTD 1,303 1,053 1,048 1,101 1,186 72,348 256,871 240,503 255,847 982 910 53,675 82,099 786 T
Slide 21: Regulatory Changes in 2008
Regulatory Changes in 2008 Basel II Deposit Insurance Act • Officially implemented in the end of 2008 • Legislation passed, to be effective 3Q08 • Started parallel run Jan 2008 • Protection step down from 100 million baht • BIS ratio : to 1 million baht in 5 years. – market risk capital – operationa
Slide 22: Business Strategies Going Forward
Business Strategies Going Forward TISCO Group Retail Banking • Continue organic growth in all areas under • Growth in all product lines, through universal banking platform, driven by proactive sales and product bundling integrated customer-focused business program, with special emphasis on strategie
Slide 23: Investor Relations
Investor Relations TISCO Bank Public Company Limited 48/2 TISCO Tower, North Sathorn Road Silom, Bangrak, Bangkok 10500 Tel. +66-2-633-6868 Fax. +66-2-633-6818 Email: IR@tisco.co.th Website: www.tisco.co.th 23