20 slides from Tisco Financial Group Public's earnings presentation, Apr 18, 2006
Slide 1: Analyst Meeting
Analyst Meeting April 18, 2006 •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 statements as a result of
Slide 2: 1Q06 Business Strategy
1Q06 Business Strategy 9 Temporarily slowdown fixed-rate hire-purchase (HP) to maintain interest spread and to manage interest rate risk. 9 Continually intake deposits in preparation for future business expansion once the interest rates return to acceptable levels. 9 Lending excess short-term liquid
Slide 3: 1Q06 Financial Performance
1Q06 Financial Performance Net Profits 1Q06 net profit of Bt544.00mn, Million Baht increased 5.2% YoY mainly due to 2,224 increase in 2,200 1,890 1,791 1,700 ¾ Interest income on loans due to higher yield on loan 5.2% 1,200 ¾ Interest income on interbank and money 517 544 market items 700 ¾ Dividend
Slide 4: Net Interest and Dividend Income
Net Interest and Dividend Income % Change (Million Baht) 2004 2005 1Q05 1Q06 (YoY) Interest on Loans 701 590 138 193 39.7 Interest on Interbank 49 145 19 80 323.9 Hire purchase and financial lease 2,957 3,544 831 963 16.0 Investment 207 289 85 108 26.2 Interest and dividend income 3,913 4,567 1,073
Slide 5: Loans and Receivables Breakdown
Loans and Receivables Breakdown Million Baht 7.0% Loans as of March 31, 2006 120,000 7% 5.8% 63,948 63,699 Commercial 100,000 6% Lending 4.5% 20% 4.4% 5% 80,000 Others 55,760 4% 7% 60,000 45,564 12,705 12,739 3% 10,924 40,000 9,667 2% 20,000 40,971 47,249 31,700 1% 46,633 Retail- Housing 0 0% Retail
Slide 6: Funding Base
Funding Base Million Baht 80,000 72,536 70,000 58,357 7,538 As of March 2006, funding base was 60,000 50,581 4,415 Bt72,536mn, increased Bt14,179mn or 50,000 44,056 17,491 24.3% QoQ, due to excess liquidity 6,986 40,000 6,879 4,307 from new deposits especially from 6,415 4,103 30,000 current and sav
Slide 7: Spread Management
Spread Management 10 7.6 8 7.2 6.9 6.8 7.1 7.3 6 4.7 4.9 4.5 (%) 4.2 4.1 3.9 4 2 3.4 2.9 3.0 2.3 2.7 2.3 0 2003 2004 2005 1Q05 4Q05 1Q06 Yield on loan Loan spread Cost (%) 2003 2004 2005 1Q05 4Q05 1Q06 (excl. write back effect) Yield 7.3 6.5 6.8 6.5 6.8 6.6 Yield on Loan 7.6 7.2 6.9 6.8 7.1 7.3 Cost
Slide 8: Non-Interest Income
Non-Interest Income (Million Baht) 2004 2005 1Q05 1Q06 % Change (YoY) Brokerage Fee 903 622 209 191 (8.6) Asset Management Fee 227 271 72 78 7.8 Investment Banking Fee 361 28 12 1 (88.8) Fee Income from Banking Business 671 802 176 211 19.5 Trading Income 567 334 123 274 123.2 Total Non-Interest Inc
Slide 9: Operating Expenses
Operating Expenses (Million Baht) 2004 2005 1Q05 1Q06 % Change (YoY) Personnel expenses 1,259 1,205 243 334 37.6 Premises and equipment expenses 352 416 100 107 7.3 Taxes and duties 73 73 17 18 3.6 Fees and service expenses 538 589 143 136 (5.3) Directors’ remuneration 7 7 2 2 (5.3) Other expenses 4
Slide 10: Hire Purchase Business
Hire Purchase Business Industry New Car Sales & TISCO Penetration Rate New Business Car Hire Purchase Thousand Units Million Baht Units (%) 1,000 0.1 58,301 7.3% 40,000 54,500 60,000 7.0% 0.1 6.6% 35,000 800 6.0% 0.1 45,103 8.0% 626 30,000 26,206 0.1 24,976 40,000 600 533 703 25,000 22,043 0.1 20,00
Slide 11: Local Brokerage Business
Local Brokerage Business Average Daily Turnover TISCO Brokerage Volume & Market Share TISCO Turnover (Btmn) Market Turnover (Btmn) Brokerage Volume (Btmn) Market Share (%) 3,000 2,862 20,508 20,916 500,000 4.0% 18,908 3.5% 16,387 20,000 3.4% 21,267 3.2% 2,500 400,000 3.0% 355,697 2.8% 3.0% 2,000 15,
Slide 12: Asset Management Business
Asset Management Business Market NAV and TISCO Market Share Asset Under Management Total NAV (Btmn) Market Share (%) Total NAV (Btmn) 3.51% 1,259,593 1,291,796 1,800,000 7.3% 8% 100,000 1,600,000 6.7% 6.5% 82,130 6.3% 7% 79,246 1,400,000 80,000 6% 67,704 1,200,000 924,545 56,459 846,964 5% 60,000 25
Slide 13: Assets and Liabilities Management
Assets and Liabilities Management Asset Mix Liabilities Mix 120% 20% 120% 24% 66,296 75,283 90,589 53,715 62,201 77,127 100% 100% Other Liabilities Other assets 13% 10% 80% 80% 28% Borrowings Equity Interbank 60% 60% Fixed-income 62% 63% Deposits 40% 52% Other Loans 40% 79% 73% 55% Retail Loans 20%
Slide 14: Risk-Based Capital Adequacy
Risk-Based Capital Adequacy 2005 1Q06 Operational Risk Operational Risk Listed Equity Listed Equity Non-listed Equity Reserve Non-listed Equity Reserve 20% 17% 4% 10% 4% 11% Fixed-income Fixed-income 0% 0% Derivatives Derivatives Retail Lending 0% 0% 41% Banking Retail Lending Banking Book(Interest-
Slide 15: Interest Rate Risk
Interest Rate Risk 1.40 1.23 Current Profile 1.20 • Duration gap was narrower 1.00 0.96 from 0.75 year to 0.57 year according to the contraction of Hire Purchase portfolio 0.80 and surging short-term liquid assets lending in repo 0.60 market. 0.48 0.39 • Meanwhile, the average 0.40 days to maturity
Slide 16: Number of Employees
Number of Employees No. of Employees 2,500 2,003 2,000 1,809 1,863 1,680 459 294 1,527 462 1,500 1,249 410 287 109 1,000 1,544 1,569 1,240 1,270 1,347 1,140 500 0 2001 2002 2003 2004 2005 1Q06 Permanent Contract Number of employees dropped 7% QoQ due to the termination of SAM project. 16
Slide 17: Holding Company Restructuring
Holding Company Restructuring • Objective – Risk diversification – Capital efficiency – Flexibility for strategic alliance • Progress – the restructuring plan has been recommended by the Bank of Thailand since the beginning of February 2006, to the Ministry of Finance for consideration and approval.
Slide 18: Upcoming AGM 2006
Upcoming AGM 2006 • Date: April 28, 2006 • Proposed dividend payment • Common shares: 2 Baht/share • Preferred shares: 3 Baht/share • Dividend payout ratio = 91% • Dividend payment date: May 26, 2006 • The shareholders whose names are shown in the registration book as of May 17, 2006 at 12.00 hrs. w
Slide 19: Shareholding Structure
Shareholding Structure CDIB & Partners Thai NVDR Investment Co.,Ltd. Holding (Cayman) 24.20% Domestic Ltd. shareholders 11.03% 26.99% Foreign shareholders 37.78% As of April 10, 2006 19
Slide 20: Q&A
Q&A Website: www.tisco.co.th Tel: 0-2633-6897, 6899, 6811 E-mail: IR@TISCO.CO.TH Fax: 0-2633-6818 20