TMB Bank Plc.

Growing StrongerNon‐deal roadshowwith Phatra Securities & Bank of America Merrill Lynch 

Singapore1‐2 March 2011

Make THE Difference 

[3]

Make THE Difference

TMB aspirations 

2010 Development

2011 Direction and targets

Appendix

[4]

Make THE Difference

TMB aspirations: 14% deposit share, 14% ROE by 2014

The Leading Thai Bank with World Class Financial Solutions

Market leadership

Competitive scale (14% deposit market share) 

Strong funding structure (50% CASA, diversified and transaction‐based)

Main bank status (~20% customer market share in wholesale/SME/retail segments)

Sustained profitability

Top quartile shareholders’ return (ROE  ~ 14%)

Sustainable revenue mix:≥40% contribution from consumer banking 

and ≥35% contribution from non‐interest income

Customers

Top tier satisfaction/Engagement level

Regulators

‘Good’ Rating

Employees

Employer of ChoiceFor Financial Service

[5]

Make THE Difference

Three‐phase transformation: Well on track 

Phase 3:Market Leadership

Phase 2:Differentiation &Quality Growth

Phase 1: Laying the Foundation

2008‐2009 2010‐2011 2012‐ onward

• Reorganization

• Branch transformation

• End‐to‐end process

• HR transformation  

• Risk management

• Service and operational excellence 

• Product expansion

• Channel enhancement

• Brand enhancement

• New standards for customer service

• New standards for financial  management

• TMB group offering

…After investing 2 years into strengthening our foundations, TMB has re‐emerged as a strong and reputable financial institution. Building on the robust platform the Bank is now in the “Differentiation and Quality growth” phrase , and will continue to grow by enhancing our customer value proposition…

[6]

Make THE Difference

TMB already living our brand: Make THE Difference

Make THE Difference

Helping to strengthen the community and 

CG

Developing a strong team in performance‐

based organization

Strength in product 

innovation

Quality growth and sustainable earning growth

FAI‐FAHBlue planetScholarships for students

TMB WayReorganizationEmployee engagement

NO Fee Saving AccountNO Limited CardODx3

2010 net profit of THB3.2bn or 64% growth from 2009NPL dropped to 8.3% at end of 2010

CommunityEmployeeCustomerShareholder

[7]

Make THE Difference

TMB aspirations 2010 Development

Quality growth Operating efficiency Asset quality improvement Strengthening customer proposition and employee 

engagement 2011 Direction and targets Appendix

[8]

Make THE Difference

Development of 2010 

Quality Growth 

I. Net profit of THB3.2 bn, up 64.4%, reflecting earning growth momentum 

II. Improvement in NIM driven by lower funding cost

III. Growth of core non‐interest income due to business expansion in trade finance and retail products

IV. Performing loan growth at 4.2%

V. Deposit & BE increased by 4.3%. Deposit alone rose by 1.3%, retail deposit contribution rose to 68% 

VI. Increase number of quality customer

Significant asset quality improvement

VIII. Consolidated NPL dropped from THB54,095 mn in 2009 to THB36,047 mn in 2010 (or 8.3% of total loans). Bank only NPL dropped from THB50,719 bn to THB 33,290 mn (7.7% of total loans)

IX. NPA dropped from THB11,132 mn to THB6,436 mn (or 1.1% of assets)

Strengthen customer proposition and employee engagementX. Matched top banks on brand acceptance with position as market leader in value‐adding product innovator

XI. Significantly higher employee engagement 

Operating efficiency VII. Operating cost to income ratio increased mainly due to decline in revenue which resulted from loan exit

Source: consolidated financial statements [9]

Make THE Difference

Quality growth: Earning growth with NIM enhancement 

2010 net profit of THB3.2 bn, implied ROE and ROA of 6.6% and 0.6%

The growth of net profit was mainly attributed to better core non‐interest income, lower non‐interest expense, and decreased provisioning

PPOP declined due to reduction in NII which resulted from the bank’s policy to exit some loans to enhance risk profile of overall loan portfolio

Net profit and ROE

3,2021,945424

-43,677

-12,292

6.6%4.2%1.0%

-95.6%

-25.0%

-50,000

-40,000

-30,000

-20,000

-10,000

0

10,000

2006 2007 2008 2009 2010

THB

milli

on

-150%

-130%

-110%

-90%

-70%

-50%

-30%

-10%

10%

Net profit (LHS) ROE (RHS)Net interest income and NIM

12,25912,407

15,79316,44215,141

2.31%2.26%2.65%2.51%2.21%

0

3,000

6,000

9,000

12,000

15,000

18,000

2006 2007 2008 2009 2010

THB

milli

on

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

NII (LHS)NIM (RHS)

NIM of 2010 increased slightly to 2.31% from 2.26% in 2009

Source: consolidated financial statements [10]

Make THE Difference

Quality growth: Core non‐interest income increased  

Fee income rose 6.4%, driven by trade finance, card business, bancassurance and mutual fund sales

Gain on exchange rose 26.9% from 2009, driven by better volume at retail booth, better currency trading and growing trade finance business 

Fee income

4,7345,420

5,0114,514 4,803

32.3%

14.5%

-7.5% -9.9%6.4%

-

1,000

2,000

3,000

4,000

5,000

6,000

2006 2007 2008 2009 2010

THB

milli

on

-20%

0%

20%

40%

60%

80%

100%

Fee income (LHS) Fee growth (RHS) Gain on exchange

1,284

1,0129511,095

78726.9%

6.3%

-13.1%

39.1%

14.3%

-

300

600

900

1,200

1,500

2006 2007 2008 2009 2010

THB

milli

on

-20%

0%

20%

40%

60%

80%

100%

Gain on exchange (LHS)Gain on exchange growth (RHS)

Source: consolidated financial statements, * performing loan growth based on bank only basis [11]

Make THE Difference

Quality growth: Net growth achieved with quality after selective loan exit and PAMC pre‐settlement

Gross loans slightly dropped by 1.3% from end of 2009

Performing loans expanded by 4.2% If excluding impact from loan settlement with 

BAM and loan exit according to the bank’s policy, loan growth would be 12% (performing corporate loan rose by 10.8%, SME 18.0% and retail by 5.0%*)

Performing loan and PL growth

479,119 388,383 354,509 313,997 327,130

0.0%

-18.9%

-8.7% -11.4%

4.2%

0

100,000

200,000

300,000

400,000

500,000

600,000

2006368,092 (-2.3%)

2007360,066 (-14.1%)

2008349,951 (-8.7%)

2009354,716 (-13.2%)

2010363,177 (-1.3%)

THB

milli

on

-30%-25%-20%-15%-10%-5%0%5%10%

Performing loans (LHS)Performing loan growth (RHS)

Total loanQoQ

Deposit and deposit growth568,467

465,462 450,297407,776 413,115

-18.1%

-3.3%-9.4%

1.3%

9.9%

0

100,000

200,000

300,000

400,000

500,000

600,000

2006 2007 2008 2009 2010

THB

milli

on

-20%

-10%

0%

10%

20%

30%

Total deposit (LHS)Deposit growth (RHS)

Deposit & BE expanded by 4.3%. Deposits alone increased by 1.3%

In line with the bank’s strategy, retail deposit contribution increased from 62% in 2009 to 68% in 2010

[12]

Make THE Difference

Quality growth: Increased quality customer

6,200 new SME customers 

300 new corporate customers 

930k new retail customers 

Customer acquisition in 2010

[13]

Make THE Difference

TMB aspirations  2010 Development

Quality growth Operating efficiency Asset quality improvement Strengthening customer proposition and employee 

engagement 2011 Direction and targets Appendix

Source: consolidated financial statements [14]

Make THE Difference

2010 non‐interest expenses declined by 19.7% due to lower impairment of foreclosed properties and loss sharing from NPL transferred 

The increase of operating cost to income ratio to 77.9% was mainly due to decrease of operating revenue (by 2.9%) which results mainly from loan exit which had impact to NII

Operating efficiency: Cost income ratio up from slow revenue caused by loan exit 

Operating cost rose marginally by 0.5% while operating revenue dropped by 2.9%

HR reduced by 3.4% (excluding one time expense of ER)

*Operating cost to income ratio exclude one time items, gain/loss from sale of assets, gain/loss from investment, loss on impairment offoreclosed properties and gain/loss on provisions of obligation

Operating cost14,62014,54214,03914,79514,162

-

4,000

8,000

12,000

16,000

2006 2007 2008 2009 2010

THB

milli

on

Operating costNon-int. exp., cost to income and operating cost

20,002 35,459 17,114 17,858 14,346

68.1% 64.2% 62.9%75.2% 77.9%

95.1%

153.9%

75.0% 79.4% 74.6%

-5,000

10,00015,00020,000

25,00030,000

35,00040,000

2006 2007 2008 2009 2010

THB

milli

on

0%20%

40%60%80%

100%120%

140%160%Non-interest expense (LHS)

Cost to income ratio (RHS)Operating cost to income (RHS)

[15]

Make THE Difference

TMB aspirations  2010 Development

Quality growth Operating efficiency Asset quality improvement Strengthening customer proposition and employee 

engagement 2011 Direction and targets Appendix

Source: consolidated financial statements [16]

Make THE Difference

Asset quality improvement: NPL and NPA continue to drop 

Consolidated NPL dropped to THB36.0 bn, bank only NPL dropped to THB33.3bn 

The reduction was from NPL sale, resolution and write‐off 

As a result, NPL ratio reduced to 8.3% on consolidated basis and 7.7% on bank only basis, which is soundly achieved the bank’s target to have single‐digit NPL ratio at the year end

Consolidated NPA dropped to THB6.4 bn, down by 42.2% thanks to ongoing sale and policy to halt new intake

NPA to total assets dropped to 1.1% from 2.0% at end of 2009

NPA and NPA ratio to total asset

29,812

22,556 19,260

11,1326,436

4.0%3.6%

3.2%

2.0%

1.1%

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

2006 2007 2008 2009 2010

THB

milli

on

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

NPA (LHS)% Gross NPA (RHS)NPL and gross NPL ratio

36,047

54,095

69,77776,51261,918

8.3%

12.7%

14.3%16.1%

11.3%

-

20,000

40,000

60,000

80,000

100,000

2006 2007 2008 2009 2010

THB

milli

on

0.0%

3.0%

6.0%

9.0%

12.0%

15.0%

18.0%

NPL (LHS)Gross NPL ratio (RHS)

Source: consolidated financial statements and C.B 1.1 (bank only) [17]

Make THE Difference

TMB’s LLR is well above requirement 

Specific provision for NPL to NPL56%

50% 50% 49% 47%42%

38%

31%28%

25%

0%

20%

40%

60%

TCAP KBANK BBL S CIB SCB KTB BAY TMB TISCO KK

Note: Consolidated basis, as of Sep10

Note: Bank-only basis, as of Dec10

General provision to performing loans3.7%

2.4%2.1% 2.1% 2.0%

1.5%1.1% 1.0%

0.8%

3.6%

0.0%

1.0%

2.0%

3.0%

4.0%

BBL BAY SCB TMB KK TISCO KBANK SCIB KTB TCAP

Note: Consolidated basis, as of Sep10

Allowance/BOT requirement259.9%

196.9%158.8% 146.4% 146.2% 141.8% 136.1%

114.4% 106.4% 105.3%

0%30%60%90%

120%150%180%210%240%270%

TISCO BBL TMB SCB KK KBANK BAY SCIB KTB TBANK

Note: Bank-only basis, as of Dec10

NPL coverage and Allowance/BOT

109.4%130.7%

121.4%135.6%

158.8%

51.3%68.1% 65.8% 57.7% 57.0%

0%

20%

40%

60%

80%

100%

120%

140%

160%

2006 2007 2008 2009 2010

Allowance/BOT requirementNPL coverage

Note: Bank-only basis , as of Dec10

[18]

Make THE Difference

TMB aspirations  2010 Development

Quality growth Operating efficiency Asset quality improvement Strengthening customer proposition and employee 

engagement  2011 Direction and targets Appendix

Source: Milward Brown, Gallup Consulting [19]

Make THE Difference

Customer proposition: Gaining strength of TMB brand and customer engagement 

Customer engagement score

4.15 4.19

-

1.00

2.00

3.00

4.00

5.00

2009 2010

Customer engagement (Percentile)

5963

30354045505560657075

2009 2010

thrd

Brand consideration

31% 33%42%

52% 56% 60%

80%72%

61% 63% 66% 67%76% 73% 70% 69%

79%

90% 89% 90% 89% 89%93%91%

87%

77% 77% 78%

89% 85% 87% 85% 86%90%

0%

20%

40%

60%

80%

100%

May-09 Jun-09 Jul-09 Aug-09

Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10

Sep-10

Brand consideration Average Top 5, latest month

Brand rejection

29%26%

21%

13% 13%

3%

10%

4%8%

6% 7%4% 3% 2%

18%

5% 6%

3% 2% 3% 3% 3%2%2% 1%

4%2%

4%4%5%6%7%9%

2%0%

5%

10%

15%

20%

25%

30%

35%

May-09

Jun-09

Jul-09 Aug-09

Sep-09

Oct-09

Nov-09

Dec-09

Jan-10

Feb-10

Mar-10

Apr-10

May-10

Jun-10

Jul-10 Aug-10

Sep-10

Brand rejection Average Top 5, latest month

[20]

Make THE Difference

Employee engagement: Developing stronger team

…With the journey of TMB transformation into a customer centric organization since 2008, TMB has been undergoing a comprehensive revamp of HR management. TMB way, the employee common culture, has taken root …

Source: Gallup [21]

Make THE Difference

Employee engagement: A tangible improvement 

% Workgroup

50th Percentile 75th Percentile

25th Percentile

GrandMean

…Employee Engagement score showed a remarkable improvement from 13th percentile in 2009 to 70th percentile in 2010. According to Gallup, what TMB achieved in 1 year is equivalent to 4 years in other companies…

2009

2010

[22]

Make THE Difference

2010 development: Conclusion…what we have delivered

Quality growth Expand target customer base with transaction‐

based fee generating product cross‐sell Enhance margin via performing loan growth Robust fee income growth

Improve operating efficiency Cost management with control on general expense, 

but more investment on training and marketing Enhance revenue efficiency via higher number of 

customers, transactions and cross‐sell 

On track Cost income ratio remain relatively high

Minimize new NPL formation and continue reducing legacy NPL

Credit underwriting under strengthened risk frameworks to limit new NPL

NPL reduction via restructuring and potential NPL sales if opportunity allows

Deliver customer value proposition Relationship enhancement via quality RM and 

improved customer facing time Better product turnaround time Value‐adding, innovative product solutions

Ahead target On track

[23]

Make THE Difference

TMB aspirations

2010 Development

2011 Direction and targets

Appendix

Source: BOT, NESDB [24]

Make THE Difference

2011 economic landscape: In house forecast of 3.6%

One-day RP vs CPI, YoY

2.25%2.00%1.50%

1.75%1.25%

3.5%

4.1%3.7%

3.4%3.0%

3.5% 3.6% 3.4% 3.3%3.0% 2.8% 2.8%

0%

1%

2%

3%

4%

5%

Dec-09

Jan-10

Feb-10

Mar-10

Apr-10

May-10

Jun-10

Jul-10

Aug-10

Sep-10

Oct-10

Nov-10

Dec-10

Jan-11

Policy Rate CPI, YoY

Thai economic in 2010 grew by 7.8% driven by private investment, consumption and export value in US dollar term.

TMB in‐house 2011 GDP growth forecast is 3.6% 

2011 headline inflation forecast is at 4% driven mainly by rising income of government employee  

BOT’s policy rate rose by 0.25bps to 2.25% at the meeting on 22 Jan. In‐house 2011 interest rate forecast is at 3%.

GDP growth

3.8%

9.2%

12.0%

5.9% 6.7%

3.8% 3.6%

-0.6% -0.2%1.2%

-3%

0%

3%

6%

9%

12%

15%

4Q09 1Q10 2Q10 3Q10 4Q10

GDP growth, YoYGDP growth, Seasonally adjusted

[25]

Make THE Difference

2011 Strategic direction

Build a strong TMB brand 

Continue quality growth with acquisition of quality customers 

Grow deposits and loan FASTER than market rate

Improve efficiency 

Enhance channel accessibility

Further improve asset quality

[26]

Make THE Difference

2011 Direction: Building strong brand “Make THE Difference”

During the past years, TMB has initiated and made differentiated products under customer‐centricity philosophy  Aiming for TMB’s brand engagement , TMB has launched new TV advertisement campaign via every channel since 

Valentine Day under “Make THE Difference”Social media channel:Facebook:www.facebook.com/TMBmakeTHEdifferenceTwitter:www.twitter.com/tmb_mTdYoutube:www.youtube.com/TMBmakeTHEdifferenceEmail:www.makeTHEdifference.org

[27]

Make THE Difference

2011 Direction: Brand supported by clear customer propositions

SME customer

Retail customer

Corporate customer 

Segment 

Practical sector‐based solutions with easy and standard servicesMulti Corp banking

Corp banking

Dedicated service “SME customer will be equally treated like corporate customer”

Dedicated relationship manager

Dedicated service manager

Competitive transaction banking

Service & products to match lifestyle, lifecycle and wealth

Best supply chain and transactional banking solution that can effectively integrate local and international value chain

Value proposition

[28]

Make THE Difference

2011 Direction: Building strong brand ‐ “FAI FAH”‐ Sustainable GIVING to community grounded as TMB’s CSR philosophy

“Fai‐Fah” was established since 2010 under the philosophy of Giving and is continued to build strong community located in Bangkok through voluntary in teaching, building, painting, etc.

[29]

Make THE Difference

2011 Direction: Continue quality customer acquisition 

Key drivers Innovative Value‐adding products Service and operational  excellence

Additional retail customers by 1.1 million

Additional SME customers by 8,000‐10,000

Additional corporate customers by 300‐500

[30]

Make THE Difference

2011 Direction: Grow faster than market 

Loan growth: 6‐7%

Deposit growth: 3‐4%

Expected market growth 

Loan growth: >10%With a focus on SME loan

Deposit growth: >10%With focus on increasing current & saving 

contribution

Expected TMB growth 

[31]

Make THE Difference

2011 Direction: Improve channel accessibility

I. Branch channel to gain stronger presence • New Opening and Relocations: 50 Branches• Major renovation: 80 Branches

II. ATM & ADM to be more accessible offering

•500 new ATM locations (from relocation)•90 new ADMs

IV. Call center offering more services

•Supports business of Retail, SME and Wholesale customers

III. Electronic channel to be best in market•Simple and easy• Innovative offering

[32]

Make THE Difference

NPL ratio

15.2%13.5%

11.9%

7.7%6.0%

0.0%

3.0%

6.0%

9.0%

12.0%

15.0%

18.0%

2007 2008 2009 2010 2011F

2011 Direction: Further enhance asset quality  

Another 2% reduction

TMB plans to reduce NPL ratio by another 2% by the end of 2011 through NPL resolution and write off

No plan for big‐lot sale

[33]

Make THE Difference

2011 Direction: Proposing  1st dividend payment in 14 years 

In 2010, TMB gained the shareholder’s consent to clean up retained losses in 2010 resulting in a healthy balance sheet 

For the operating project of 2010, TMB now has the ability to pay dividends for the first time in 14 years 

On 24th February 2011, TMB Board of Directors passed the resolution to propose the Annual General Meeting of Shareholders (AGM) to pay the dividends 

The proposed rate is THB 0.015 per share, a total dividend payment of THB 653 million or accounting for 20% of the 2010 net profit

The AGM will be held on Friday 8th April 2011

[34]

Make THE Difference

TMB aspirations 

2010 Development

2011 Direction and target

Appendix

TMB’s innovative products

2010 Results

Platforms 

[35]

Make THE Difference

Retail: “No fee savings accounts” – most innovative deposit product

No fee up to 20 e‐transactions with THB20,000 minimum balance, including access to other banks’ATM

Most innovative valued retail products to raise CASA and achieve transactional banking status

No fee savings accounts ‐ features

Achieved almost  50% of the 2009 year‐end target in terms of account acquisition for 1‐month product launch

New accounts (including reactivated accounts) represent more than 50% of total account acquisition

Average balance account was much higher than 20K minimum balance, but should decline going forward with more account acquisition

No fee savings accounts – performance update

[36]

Make THE Difference

Retail: “TMB no limit debit card” – One card for all ATMs in Thailand and unlimited basic transactions for upfront fee

No fee for withdrawal from TMB ATMs and other banks’ ATM Pool nationwide with a maximum of 200k Baht/card/day, cross any province

Card access via EDC machine with a maximum of 60k Baht/day

Able to withdraw from any ATM that has a “Plus” sign worldwide

Able to transfer to third party (TMB) and ORFT with a maximum of 200k and 100k Baht/card/day respectively

500 Baht for upfront fee No annual fee 

TMB no limit debit card

Bangkok Upcountry

[37]

Make THE Difference

Retail: “TMB no slip” – new service with high security to meet customer centricity strategy

TMB is the first bank to enable transaction service (deposit and withdrawal) at teller with one ID card.

This service enhances customer centricity strategy for less and less complexity and minimizes time consuming on paper work.

TMB won Financial Insights Innovation Award (FIIA) for customer engagement

TBM no slip ‐ features

Note: interest rate is subjected to change upon the Bank's policy. Last update as of 24FEB11 [38]

Make THE Difference

Retail: “TMB quick interest term deposit” – Receive 2.70% interest within 7 days after deposit date

Minimum deposit THB10,000 but not more than THB50 million per account and customer

3 or 12 months fixed deposit at 1.80% and 2.70% respectively

Receive interest within 7 days after deposit date

As of 16 August, TMB has amount of deposit over THB29,357 million through this product since launch. 

Quick interest term deposit ‐ features

[39]

Make THE Difference

Retail: “TMB No Worry Saving Account” – bundling between saving account with non‐secured loans

Product bundling between saving account and working capital loan which is non‐secured loan.

Fixed income customer (20–60 years old) at minimum of THB20,000 per month

Credit limit not over 0.5 time of basis salary, THB10,000 up to THB30,00

Convenience, withdraw 24 hours

Only ID card and required documents for new application at TMB branches

No Worry Saving Account ‐ features

[40]

Make THE Difference

Retail: “TMB 3D Salary” – More than a salary deposit product

TMB 3D Salary features: Minimum salary required to open account 

at THB15,000 per month It served for transfer‐in and out, withdraw, 

bill payment, SMS alertPrivilege: Free for life‐assurance THB1 mn. Free ATM transaction fee with TMB No 

Limit Next THB30,000 for quick‐cash 

Note: SBCG = Small Business Credit Corporation, a state‐owned enterprise [41]

Make THE Difference

SME: Structured products with focus on supply chain, now extended to general customers 

Attractive credit facilities (up to 3x of collateral) bundled with SBCG*’s credit guarantee program

Structured drawdown (directly paid to business counter‐party via fund transfer only)

3x structured O/D accounts for working capital

[42]

Make THE Difference

SME: “TMB OD NO Asset” – OD without collaterals required 

NO collaterals required for OD credit facility amounted from THB100k‐10 million. 

Interest rate range from MLR+4.5% to MLR+8.5% depend on size of credit line.

Guarantee fee from SBCG of 1.75% p.a.

Launched on 1 Feb 2010, reached 80% of the first month target in 3 weeks in terms of referred cases.    

TMB SME OD NO Asset

[43]

Make THE Difference

SME: “TMB SME Saver Account” – All financial transactions are free for fixed monthly fee

Current account with interest Free for first 40 inter‐bank 

transactions per month Unlimited cheque deposit 

transactions nationwide Unlimited deposit and withdraw 

transactions within TMB Free annual fee (500 Baht) Buy 1 cheque book, get 1 free Pay only 499 Baht per month Promotion period until 31 October 

10,, it is refundable if customer dissatisfies with this product.

TMB SME Saver Account

[44]

Make THE Difference

TMB aspirations 

2010 Development

2011 Direction and targets

Appendix

TMB’s innovative products

2010 Results

Platforms 

[45]

Make THE Difference

2010 Results:  Financial performance highlight

Liquidity remain highNA82.7%85.9%LD ratio (inc ST borrowing)

16.6%

407,776

36,047

327,129

6.6%

3,202

74.6%

14,346

6,087

2.31%

2010A

Deposit cost reduced and retail contribution increased to 68%+1.3%413,115Deposit (THB mn)

17.1%

54,095

313,997

4.2%

1,945

79.4%

17,858

5,526

2.26%

2009A

Well on recovery path+65%Net profit (THB mn)

Declined but remain higher than industry average during transformation period‐4.8%Cost to income ratio

Dropped mainly from less personnel (early retirement) and less loss on properties foreclosed sales‐20%Non‐interest expenses (THB mn)

Better than the initial reduction plan‐33%Non‐performing loans (THB mn)

Performing loans rose by 4.2%. Policy to exit certain loans derailed the growth. +4.2%Performing loans (THB mn)

Well on recovery pathNAReturn on equity (ROE)

Fee income and gain on exchange improve mainly from trade finance. +10%Core non‐interest income (THB mn)

NA

+5bp

Solid capital maintainedCAR

Slightly improve from favorably interest rates environment and shift of loan mixNet interest margin

Development

Source: consolidated financial statements [46]

Make THE Difference

2010 Results: Liquidity remains strong

Continued strong liquidity with cash, interbank and short‐term investment representing 26.1% of total earning assets

Earning asset allocation

12.2% 11.3% 15.2%15.4% 17.6% 19.8% 17.0%

69.2% 65.8% 67.7% 66.7% 65.2%

2.8% 2.2% 2.5% 2.2% 2.6%12.5% 14.8%

17.2%

0%

20%

40%

60%

80%

100%

4Q09 1Q10 2Q10 3Q10 4Q10

Cash Interbank Investment Loans Loan to deposit ratio

87.9%87.2%88.4%90.3%

88.8%

85.9%84.3%

85.1%84.0% 82.7%

70%

75%

80%

85%

90%

95%

100%

4Q09 1Q10 2Q10 3Q10 4Q10

Loan to deposit ratioLoan to deposit ratio + ST borrowing

At the end of 2010, loan to deposit ratio included ST borrowing* remained healthy at 82.7%. Excluding ST borrowing, LDR was 87.9%

Source: bank only, under Basel II calculation [47]

Make THE Difference

2010 Results: Solid capital base

Tier I and total capital adequacy ratio (CAR) were 16.6% and 11.3% (Basel II calculation), well above minimum requirement by BOT

The declined in CAR due mainly to increase in risk weigh assets

CAR and BOT min requirement

16.63%17.13% 16.40%18.38% 17.83%

8.50% 8.50% 8.50% 8.50% 8.50%

2%4%6%

8%10%12%14%

16%18%20%

4Q09 1Q10 2Q10 3Q10 4Q10

CAR BOT requirement

Tier I capital and BOT min requirement12.30%12.64%12.90%12.31%

11.38%

4.25%4.25%4.25%4.25%4.25%

0%

2%

4%

6%

8%

10%

12%

14%

4Q09 1Q10 2Q10 3Q10 4Q10

Tier I Capital BOT min requirement

Source: consolidated financial statements [48]

Make THE Difference

Balance sheet 

Unit: THB million 4Q10 3Q10 % Δ QoQ 4Q09 % Δ YoY 12M10 12M09 % Δ YOYCash, Interbank and repurchase 99,339 71,827 38.3% 81,749 21.5% 99,339 81,749 21.5%Investments 94,538 105,380 ‐10.3% 82,194 15.0% 94,538 82,194 15.0%Loans and Accrued Interest Receivable 363,741 355,489 2.3% 369,063 ‐1.4% 363,741 369,063 ‐1.4%Less Allowance for doubtful accounts  (20,546) (21,816) N/A (31,208) N/A (20,546) (31,208) N/ALoans and AIlowance ‐ net 343,195 333,673 2.9% 337,855 1.6% 343,195 337,855 1.6%Properties foreclosed ‐ net  6,436 7,945 ‐19.0% 11,132 ‐42.2% 6,436 11,132 ‐42.2%Premises and equipment ‐ net   12,116 12,158 ‐0.3% 13,220 ‐8.4% 12,116 13,220 ‐8.4%Goodwill from transferred business ‐ net 60 60 0.0% 60 0.0% 60 60 0.0%Other assets 33,909 33,937 ‐0.1% 16,933 100.3% 33,909 16,933 100.3%Total Assets 589,592 564,978 4.4% 543,142 8.6% 589,592 543,142 8.6%Deposits 413,115 406,737 1.6% 407,776 1.3% 413,115 407,776 1.3%Interbank and Money Market Items 23,491 19,067 23.2% 10,738 118.8% 23,491 10,738 118.8%Borrowings 62,104 49,546 25.3% 50,636 22.6% 62,104 50,636 22.6%Other liabilities  41,027 40,210 2.0% 27,236 50.6% 41,027 27,236 50.6%Total Liabilities 539,737 515,561 4.7% 496,385 8.7% 539,737 496,385 8.7%Shareholders' equity 49,772 49,335 0.9% 46,683 6.6% 49,772 46,683 6.6%Minority Interests 83 82 2.0% 75 11.7% 83 75 11.7%LIABILITIES & SHAREHOLDERS' EQUITY 589,592 564,978 4.4% 543,142 8.6% 589,592 543,142 8.6%

Source: consolidated financial statements [49]

Make THE Difference

Profit and Losses 

(Unit:THB million) 4Q10 3Q10 % Δ QoQ 4Q09 % Δ YoY 12M10 12M09 % Δ YOYInterest and dividend income 4,975 4,648 7.0% 4,691 6.0% 18,499 20,481 ‐9.7%Interest expenses 1,681 1,568 7.2% 1,601 5.0% 6,240 8,074 ‐22.7%Net income from interest  and dividend (NII) 3,295 3,081 6.9% 3,090 6.6% 12,259 12,407 ‐1.2%Bad debts and doubtful accounts (reversal) 603 330 82.8% 145 316.3% 1,654 2,628 ‐37.0%

NII after provision 2,692 2,751 ‐2.2% 2,945 ‐8.6% 10,605 9,780 8.4%

Non‐interest income 1,933 1,610 20.1% 2,002 ‐3.5% 6,966 10,077 ‐30.9%

Non‐interest expenses 3,800 3,627 4.8% 4,348 ‐12.6% 14,346 17,858 ‐19.7%Net income (loss) before income tax 825 733 12.5% 599 37.6% 3,225 1,999 61.3%

Income tax 1 5 ‐78.3% 6 ‐82.7% 14 35 ‐58.4%

Minority interests in net profit 2 2 ‐13.2% 3 ‐45.9% 9 20 ‐55.4%Net income 822 726 13.2% 590 39.4% 3,202 1,945 64.6%

Source: consolidated financial statements [50]

Make THE Difference

Non interest income

(Unit:THB million) 4Q10 3Q10 % Δ QoQ 4Q09 % Δ YoY 12M10 12M09 % Δ YOYGain/loss on investments  17 14 18.9% 18 ‐6.5% 157 14 1030.8%Share of profit (loss) from investments accounted for using the equity method  0 10 ‐100.0% (52) N/A 36 95 ‐62.3%Fees and service income 1,314 1,156 13.7% 1,267 3.7% 4,803 4,514 6.4%      Acceptances, avals and guarantees  105 90 16.9% 112 ‐6.3% 337 425 ‐20.7%      Others 1,209 1,066 13.4% 1,154 4.7% 4,466 4,089 9.2%Gain on exchange  370 320 15.6% 257 44.2% 1,284 1,012 26.9%Gain on sale of assets  0 0 N/A 0 N/A 0 0 N/AOther income 232 110 111.9% 514 ‐54.8% 686 4,443 ‐84.6%Total non‐interest income  1,933 1,610 20.1% 2,002 ‐3.5% 6,966 10,077 ‐30.9%

Source: consolidated financial statements [51]

Make THE Difference

Non interest expenses

(Unit:THB million) 4Q10 3Q10 % Δ QoQ 4Q09 % Δ YoY 12M10 12M09 % Δ YOYPersonnel expenses  1,666 1,442 15.5% 1,688 ‐1.3% 5,861 6,543 ‐10.4%Premises and equipment expenses  778 710 9.6% 741 5.0% 2,907 2,688 8.1%Taxes and duties  166 158 4.9% 152 8.9% 628 672 ‐6.5%Fees and service expenses  413 356 15.9% 349 18.4% 1,424 1,333 6.8%Directors’ remuneration  6 8 ‐23.7% 8 ‐19.5% 30 27 11.5%Loss on impairment of properties foreclosed and other assets  280 131 114.2% 303 ‐7.5% 948 2,737 ‐65.4%Contributions to the FIDF  412 403 2.2% 432 ‐4.6% 1,613 1,745 ‐7.6%Loss on provisions of obligations from transferred non‐performing assets  (839) 0 N/A 9 ‐9091.7% (839) 309 ‐371.2%Loss on provisions of obligations ‐ others 106 (45) N/A (97) N/A (547) (380) N/AGoodwill amortization 0 0 N/A 0 N/A 0 0 N/ALoss on impairment of goodwill  0 0 N/A 0 N/A 0 0 N/ALoss on sales of assets  0 0 N/A 0 N/A 0 0 N/AOther expense 811 463 75.0% 763 6.2% 2,321 2,183 6.3%Total non‐interest expense  3,800 3,627 4.8% 4,348 ‐12.6% 14,346 17,858 ‐19.7%

Source: consolidated financial statements [52]

Make THE Difference

Selected key financial ratios

Key financial ratio 4Q10 3Q10 2Q10 1Q10 4Q09 FY10 FY09Profitability & ROAE  6.6% 5.9% 7.2% 6.7% 5.1% 6.6% 4.2%Margin ROAA  0.6% 0.5% 0.6% 0.6% 0.4% 0.6% 0.3%

Cost to Income  (proforma) 72.7% 77.3% 71.0% 77.8% 85.4% 74.6% 79.4%Yield on avg earning assets 3.7% 3.5% 3.3% 3.3% 3.5% 3.4% 3.6%Funding costs 1.4% 1.4% 1.3% 1.3% 1.4% 1.3% 1.6%NIM, avg earnings assets  2.48% 2.41% 2.27% 2.23% 2.38% 2.31% 2.26%

Liquidity Loan to deposit 87.9% 87.2% 88.8% 88.4% 90.3% 87.9% 90.3%Loan to depsosit + ST borrowing 82.7% 84.0% 85.1% 84.3% 85.9% 82.7% 85.9%Cash & interbank to earning assets 17.8% 13.5% 14.7% 17.0% 15.4% 17.8% 15.4%

Fee income Fee income/Total income  25.1% 24.6% 24.1% 26.1% 24.9% 25.0% 20.1%Fee income, yoy growth  3.7% 0.3% 7.3% 15.5% 9.8% 6.4% ‐9.9%

Loan & deposit Loan, yoy Growth  ‐1.3% ‐1.9% ‐4.4% ‐9.3% ‐13.2% ‐1.3% ‐13.2%growth Loan, qoq Growth  2.4% 1.4% ‐2.8% ‐2.2% 1.8%

Deposit, yoy Growth  1.3% 0.4% ‐1.8% ‐7.5% ‐9.4% 1.3% ‐9.4%Deposit, qoq Growth  1.6% 3.2% ‐3.2% ‐0.1% 0.6%

Capital Tier I 11.3% 12.3% 12.6% 12.9% 12.3% 11.3% 12.3%(Bank only) Total CAR 16.6% 17.8% 18.4% 16.4% 17.1% 16.6% 17.1%Asset quality Reported NPL (THB million) 36,047 41,236 44,027 52,727 54,095 36,047 54,095

Gross NPL 8.3% 10.1% 10.9% 12.1% 12.7% 8.3% 12.7%NPL coverage 57.0% 52.9% 53.6% 58.6% 57.7% 57.0% 57.7%

Source: consolidated financial statements [53]

Make THE Difference

Asset growth and leverage

ROAE & ROAA

0.6%0.5%0.6%0.6%

0.4%

6.6%5.9%

7.2%6.7%

5.1%

0%

1%

2%

3%

4%

5%

6%

7%

8%

4Q09 1Q10 2Q10 3Q10 4Q100.0%

0.2%

0.4%

0.6%

0.8%

1.0%

ROA (RHS) ROE (LHS) Liability to equity ratio10.8410.4510.0810.7010.63

3.8%3.7%-5.8%

0.7%-1.8%

0

2

4

6

8

10

12

4Q09 1Q10 2Q10 3Q10 4Q10

(x)

-50%

-30%

-10%

10%

30%

50%

Liability to equity ratio (LHS) Growth rate (RHS)

Asset and asset growth543,142 560,029 540,498 564,978 589,592

3.1%-3.5%

4.5% 4.4%-1.3%

0

100,000

200,000

300,000

400,000

500,000

600,000

4Q09 1Q10 2Q10 3Q10 4Q10

THB

milli

on

-30%

-20%

-10%

0%

10%

20%

30%

40%

Total asset (LHS)Asset growth, QoQ (RHS) Equity and equity growth

49,77249,33548,76747,84846,683

0.3% 0.9%1.2%1.9%2.5%

0

10,000

20,000

30,000

40,000

50,000

4Q09 1Q10 2Q10 3Q10 4Q10

THB

milli

on

-10%

-5%

0%

5%

10%

15%

20%

Total equity (LHS)Equity growth, QoQ (RHS)

Source: consolidated financial statements [54]

Make THE Difference

Key balance sheet item breakdown

Loan breakdown by segment

29.7% 29.0% 29.6%

18.0% 19.2% 19.0% 19.1%

51.2%51.9%51.1%51.5%52.2%

29.9%29.8%

18.6%

0%

20%

40%

60%

80%

100%

4Q09 1Q10 2Q10 3Q10 4Q10

Corporate SME Retail Deposit breakdown

40.4% 37.6%

50.5% 51.0% 51.6% 53.8%

10.5% 10.5% 8.6% 10.8% 9.6%

36.6%39.0% 41.6%

47.9%

0%

20%

40%

60%

80%

100%

4Q09 1Q10 2Q10 3Q10 4Q10

Current Savings Fixed

Interest-bearing liabilites

87.0% 87.2% 87.3% 85.8% 83.0%

2.1% 1.6% 1.8% 3.8% 4.5%5.4% 6.8% 4.7% 5.0% 7.3%5.5% 4.4% 6.2% 5.4% 5.2%

0%

20%

40%

60%

80%

100%

4Q09 1Q10 2Q10 3Q10 4Q10

LT borrowingST borrowingInterbank and money marketDeposit

Earning asset allocation

12.2% 11.3% 15.2%15.4% 17.6% 19.8% 17.0%

69.2% 65.8% 67.7% 66.7% 65.2%

2.8% 2.2% 2.5% 2.2% 2.6%12.5% 14.8%

17.2%

0%

20%

40%

60%

80%

100%

4Q09 1Q10 2Q10 3Q10 4Q10

Cash Interbank Investment Loans

[55]

Make THE Difference

TMB aspirations 

2010 Development

2011 Direction and targets

Appendix

TMB’s innovative products

2010 Results

Platforms 

Source: consolidated financial statements [56]

Make THE Difference

Shareholder, workforce and distribution platform

Shareholder structure (8 June 10)ING bank,

25.2%

Ministry of Finance, 26.1%

JP morgan, 3.6%

Others, 30.6%

Military group, 1.4%

DBS Bank, 6.8%Thai NVDR, 6.3%

Number of branch

483

463454 456 452

400

420

440

460

480

500

4Q09 1Q10 2Q10 3Q10 4Q10

Domestic branches

Number of ATM

2,3002,323

2,3002,278

2,257

2,100

2,200

2,300

2,400

4Q09 1Q10 2Q10 3Q10 4Q10

ATM Number of employee8,7508,6868,5658,4288,236

0

2,000

4,000

6,000

8,000

10,000

4Q09 1Q10 2Q10 3Q10 4Q10

Employee

Source: company, SEC, mf=mutual fund, prd=provident fund, pri=private fund [57]

Make THE Difference

Operating platform and holding structure

TMB BankTMB Bank

BankingBanking Investment BankingInvestment Banking

ING Life (life) TMB Asset Management and ING Funds (strategic partner) having 9.5% of total asset market*, classified into mf:9.3%, prd:10% and pri:9%

6.3% loans market share

6.4% deposit market share

452 branches nationwide and 2,300 ATMs

8,750 employees

Asset ManagementAsset Management InsuranceInsurance

In house

Note: updated as of 21 Dec 10 [58]

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Credit ratings

Standard & PoorsLong Term Debt BB+

Hybrid Tier I B+

Short Term Debt/Deposits B

Bank Fundamental Strength Rating D+

Outlook Stable

Moody's Investor ServicesLong Term Deposits Baa3

Hybrid Tier I B3

Short Term Debt/Deposits Prime‐3

Outlook Stable

Bank Fundamental Strength Rating‐Outlook D‐/Stable

Fitch RatingFCY ‐ Long Term/Short Term BBB‐/F3

Sub Debts/Hybrid Tier I BB+/B

Individual C/D

Support Rating Floor/Support BB+/3

Outlook Stable

Local RatingTRIS‐Long Term Debt A+TRIS ‐ Sub Debt ATRIS ‐ Hybrid Tier I BBB+Fitch ‐ Long Term/Short Term A+/F1 (tha)Fitch ‐ Subordinated debt A (tha)Fitch ‐ Outlook Stable

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Company history

1957 TMB Bank Plc. was established on November 1957 with Field Marshal Saridi Dhanarajata as the first Chairman of the Board of Directors and initial registered capital of THB10 million.

1983 The Bank was listed on the Stock Exchange of Thailand (SET) on December 23, 1983.

2004 TMB was merged with DBS Thai Danu and IFCT effectively on September 1, 2004. Total assets grew to THB700 billion.

2005 The Bank rebranded to “TMB Bank Public Company Limited” with a new slogan of “Better Partner, Better Value”.

2006 The Bank issued US$200 million non‐cumulative hybrid debt capital instruments (Hybrid Tier 1).

2007 The Bank succeeded in raising THB37.6 billion new capital. ING Group, the new major shareholder, holds 30.1% (including via NVDR) and MOF holds 26.1%.

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Company history‐(Cont.)

2008 The Bank was proactive transformation through HR transformation,branch transformation, reorganization, End‐to‐end process, risk management, financial turnaround from net loss THB43.6 billion to profit THB424 million

2009 The Bank executed mutual‐separation early retirement program to align workforce and improve operating efficiency and issued perpetual hybrid tier I (Local), and great momentum in net profit growth to 4x from 2008

2010 The Bank adjusted the shareholders’ equity accounts; par value reduction from THB10 to THB0.95 and reserves were used to offsetwith the write‐down of retained loss and share discount.

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Awards and mandates

Lead arranger of Advance Info Service unsecured debenture of THB7.5billion (Jan 09)

Full service cash management to Central Retail Corporation (Feb 09)

Cheque payment to National Housing Authority (Feb 09)

Lead arranger of PTT Aromatics unsecured debenture of THB15 billion (Apr 09)

Joint lead arranger of PTT Exploration and Production unsecured debenture of THB40bn (May 09)

Joint lead arranger of Bangkok Dusit Medical  Services unsecured Debenture of THB3bn (June 09)

Joint lead arranger of Quality House unsecured debenture of THB 2.5 billion (Jul 09)

Joint lead arranger of PTT Plc unsecured debenture of THB 35 billion (Jul 09)

Lead arranger of Electricity Generating Authority of Thailand unsecured bond of THB1 billion (Aug 09)

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Awards and mandates‐(Cont.)

Joint lead arranger of Easy Buy guaranteed debenture of THB3.5billion (Aug 09)

Joint lead arranger of Toyota Leasing (Thailand) guaranteed debenture of THB1.15 billion (Sep 09)

Joint lead arranger of the Bank of Thailand saving bond of THB130.7 million (Sep 09)

Joint lead arranger of Krung Thai card Plc. unsecured debenture of THB7.5 billion (Nov 09)

Joint lead arranger of Thaicom Plc. unsecured Debenture of THB7billion (Nov 09)

Join lead arranger of Thai Oil unsecure debenture of THB3,000 million (Apr 10) 

Lead arranger of Kiatnakin Bank unsecured debenture of THB2,920 million (Feb‐Mar 10)

2010 Financial Insights Innovation Awards (FIIA) won for establishing the “TMB No Slip” service 

Best Bond Award 2009 in the most creative issue category by ThaiBMA from the offering of TMB‐IT‐One

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Awards and mandates‐(Cont.)

Lead arranger of SC Group syndicated loan of THB2,525 million (Mar 10)

Co‐lead arranger of Hongsa Power Co.,Ltd. syndicated loan of THB94,620 million (Jul 10)

Arranger of Gulf JP Co.,Ltd. syndicated loan of THB 51,801 million (Oct 10)

Lead arranger of Kiatnakin Bank unsecured debenture of THB 6,050 million (Feb‐Nov 10)

Joint lead arranger of Siam Future Development Plc. unsecured debenture of THB900 million (Jul 10)

Joint lead arranger of Charoen Pokphand Foods Plc. unsecured debenture of THB8,000 million (Nov 10)

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Disclaimer This presentation  contains  some  information  from other  sources, that TMB Bank Public Company Limited does not make any  representations regarding  the use, validity, accuracy, or  reliability of, or  the  results of  the use of  information, data but not  limited  to, all  text, and  images  (“the Content”) on this presentation. Some content may contain forward  looking statements, that based on management’s view upon the  information currently available to us. These statement are subject to certain risks and uncertainties that could cause the actual results materially differed from what had been previously stated. The materials in this presentation shall not, and are not intended to, constitute or contain an offer to sell or the solicitation of an offer to buy, any securities of TMB Bank Public Company Limited.

Thank You.IR contacts:Investor relations departmentJittrawadee SrivichitTel: 662 299 1178Email: jittrawadee.sri@tmbbank.com

Taweechai  ChachiamchenTel: 662 242 3440Email: taweechai.cha@tmbbank.com

Chanyut SrisawatsakunTel: 662 299 1111 ext.5385Email: chanyut.sri@tmbbank.com