Tmbthanachart Bank Public Company Limited · SET:TTB
Tmbthanachart Bank Public — Q2 2020 Earnings Presentation
27 slides from Tmbthanachart Bank Public's earnings presentation, July 2020
Slide 1: Investor Presentation: 2Q20 Performance
Investor Presentation: 2Q20 Performance Live-WebEx | July, 2020 1
Slide 2: COVID-19 Response and Integration Update
COVID-19 Response and Integration Update 2Q20 Performance Asset Quality Target 2020 2
Slide 3: COVID-19: How TMB is contributing to tackle this outbreak
COVID-19: How TMB is contributing to tackle this outbreak Employees Communities Customers Safety, flexibility and support Sustainability and engagement Solution, liquidity and support Remote working from home effectively Inspire hundreds of youth communities by turning The Bank has taken a num
Slide 4: COVID-19: Customer relief programs- phase1
COVID-19: Customer relief programs- phase1 Retail customers Commercial customers • Debt moratorium for 4-6 months for customers who submitted request on AL’s ▪ Loan payment holiday for term loan and revolving loans for 6 months Auto loan “Tanglak” website ▪ Soft loan to support short-term liquidity
Slide 5: COVID-19: Customer relief programs- phase2
COVID-19: Customer relief programs- phase2 (additional measures from BOT and the Bank’s initiatives to support affected customers) Retail customers Commercial customers ▪ HPR (HP Extension) to lower monthly installment around 20-30% for customers ▪ Preemptive debt restructuring ▪ Step payment HP to
Slide 6: We Fight Together
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Slide 7: Executing integration according to plan to show full potential in coming period
Executing integration according to plan to show full potential in coming period ▪ 38 Co-location branches as of June-20 ✓ Product & service ▪ Fees waived for TMB-TBANK cross bank ATMs ✓ readiness: more ▪ Aligned wealth customer onboarding activities to protect and recapture AUM ✓ ✓ seamless integrat
Slide 8: 72 Thanachart Funds available on TMB Touch platform
Accelerating synergy value through digital capabilities Miss Dara U. 72 Thanachart Funds available on TMB Touch platform 8
Slide 9: Total Cost Saving ~THB 500 mn YoY
2020 Cost saving well on track with the self-funded initiatives Total Cost Saving ~THB 500 mn YoY Network & Marketing HR Operational Cost saving Cost saving Cost saving ▪ Since the completion of the merger transaction, the Merged Bank has initiatives to improve efficiencies in various aspects such a
Slide 10: Covid-19 Response and Integration Update
Covid-19 Response and Integration Update 2Q20 Performance Asset Quality Target 2020 10
Slide 11: Quality loan portfolio, diversified loan mix with high level of collateral
Quality loan portfolio, diversified loan mix with high level of collateral and less exposure to hospitality, direct sectors impacted by COVID-19 Total Loan -1.5% QoQ -0.7% YTD 1,404 bn 1,392 bn 1,382 bn Retail-Credit card 2% 2% 2% Retail-Personal loan 3% 3% 3% 69% Retail-Personal loans Benefit plus
Slide 12: Conservative funding position with stable deposit base during virus crisis
Conservative funding position with stable deposit base during virus crisis Total Deposit +3.2% QoQ +3.2% YTD 1,398 bn 1,398 bn 1,443 bn 21% TD+NCD 30% 26% 46% Hybrid 42% 39% Saving 26% ~32% 26% ~32% 28% ~33% CASA CASA CASA Current 5% 6% 5% Dec-19 Mar-20 Jun-20 % Retail deposits 66% 69% 74% • Deposit
Slide 13: Creating opportunity for deposit cost improvement from excess liquidity situation
Creating opportunity for deposit cost improvement from excess liquidity situation Strong Liquidity Position 1,443 Deposit 1,398 1,398 Deposit +3.2%YTD 1,392 1,404 Loans 1,382 Loans -0.7% YTD Cost of 1.51% deposit 1.29% 1.16% Cost of Deposit -35 bps ~210 bn ~150 bn Net Interbank +41.6% YTD ~110 bn De
Slide 14: Strong liquidity position
Strong liquidity position Liquid Assets Exceed THB 300 bn Long-Term Funding Ratio THB billion Net Liquid Asset LDR 94.00% 93.3% 600 105% 92.5% 98.6% 99.3% 99.4% 93.00% 96.9% 95.7% 95.2% 100% 92.1% 91.6% 91.4% 95% 92.00% 400 90.7% 90% 91.00% 90.3% 85% 90.00% 200 80% 89.00% 75% Portion of stable fundi
Slide 15: M-Rate cuts pulling loan yield and NIM down as expected
M-Rate cuts pulling loan yield and NIM down as expected, despite lower cost of deposit Cost of Deposit Loan Yield Net Interest Margin (NIM) 6.00% -37 bps QoQ +22 bps YoY -24 bps QoQ +10 bps YoY 5.50% Flat YoY -2 bps YoY 5.25% 5.08% 5.00% 4.88% 4.88% 4.86% -17 bps YoY 3.12% 3.00% -13 bps QoQ 2.90% 2.
Slide 16: Under challenging revenue environment, cost synergy realization going as plan
Under challenging revenue environment, cost synergy realization going as plan Total Operating Income Total Operating Expense Cost-to-income Ratio THB million THB million 34,764 +100% YoY Non-NII +1% QoQ NII 7,705 +60% YoY +80% YoY Flat YoY -5% YoY -9% QoQ +86% YoY 16,107 51% -7% QoQ 18,195 17,409 47
Slide 17: Non-NII and fee performance reflecting a slowdown in business and household activities
Non-NII and fee performance reflecting a slowdown in business and household activities Total Non-Interest Income (Non-NII) Breakdown Strategic Fee Products THB million Other Non- NII Net fee & service income THB million +51% YoY Total Non-NII 7,705 +60% YoY -33% QoQ +21% YoY 2,603 2,732 +128% YoY 1,
Slide 18: PPOP of THB 8.8 billion
PPOP of THB 8.8 billion Pre-Provision Operating Profit (PPOP) THB million +119.2% YoY 18,653 -10.9% QoQ +86.3% YoY 9,862 8,791 8,511 4,720 2Q19 1Q20 2Q20 1H19 1H20 • 2Q20 PPOP was recorded at THB 8.8 bn, -11% QoQ and +86% YoY • 1H20 PPOP was THB 18.7 bn, +119% YoY 18
Slide 19: Covid-19 Response and Integration Update
Covid-19 Response and Integration Update 2Q20 Performance Asset Quality Target 2020 19
Slide 20: Proactively managing loan portfolio to strengthen balance sheet ahead of economic uncertainties
Proactively managing loan portfolio to strengthen balance sheet ahead of economic uncertainties Loan Classification (%) Loans included interbank 1.61 tn 1.65 tn 1.60 tn Pre-TFRS9 TFRS9* TFRS 9 TFRS 9 94.2% Pass 88.3% 89.0% Stage 1 89.8% Stage 1 3.4% SM 9.2% 8.3% Stage 2 7.8% Stage 2 2.35% NPL 2.5% 2
Slide 21: Debt relief profile
Debt relief profile Non Debt Relief Under Debt Relief Total Loans • For commercial, the approved debt request 1,60 0,000 Commercial accounted for ~38% of total commercial 1,382 bn customers loans 601 bn Key commercial segments 1,40 0,000 • Main proportion came from commercial 1,20 0,000 505 bn custo
Slide 22: Facing the crisis from a reinforced strength
Facing the crisis from a reinforced strength Provision & Credit Cost NPL ratio/ Stage 3 Allowance for ECL and LLR Provision (THB million) TFRS9 Allowance for ECL (THB million) Annualized credit cost (bps) 14.30% % Stage 3 to Allowance for ECL 120% 146 144 160 114% 141 106% 20,000 137 18,000 128 140
Slide 23: YoY net profit reflecting inorganic growth but QoQ performance under COVID-19 pressure
YoY net profit reflecting inorganic growth but QoQ performance under COVID-19 pressure Net Profit THB million +107.6% YoY 7,258 -25.7% QoQ +61.4% YoY 4,163 3,496 3,095 1,917 2Q19 1Q20 2Q20 1H19 1H20 • 2Q20 Net profit was at THB 3,095 mn, -25.7% QoQ and +61.4% YoY • First half net profit for Merged B
Slide 24: Capital adequacy ratio remains strong
Capital adequacy ratio remains strong Capital Adequacy Ratio (CAR) Tier I Ratio CAR BoT's min. requirement Tier I BoT's min. requirement 21.4% 20% 18.8% 18.6% 20% 14.3% 14.5% 14.6% 15% 15% 11.0% 11.0% 11.0% 10% 10% 8.5% 8.50% 8.50% 5% 5% 0% 0% 2Q19 1Q20 2Q20 2Q19 1Q20 2Q20 • As of Jun-20, CAR decrea
Slide 25: Covid-19 Response and Integration Update
Covid-19 Response and Integration Update 2Q20 Performance Asset Quality Target 2020 25
Slide 26: 2020 performance guidance
2020 performance guidance Previous Targets Actual 1H20 Revised Targets Flat ▪ Manage liquidity to match with loan growth and optimized margin by using the Deposit Flat - 2% +3.2% YTD low rate environment as a new spectrum of investment theme to churn retail Growth Operating performance deposit to in
Slide 27: 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, express or implied, is or should be made concerning, and no reliance should be place on, the accuracy, fairness
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