TMB Synergy and Financial Projections
TMB
Make THE Difference
+1.3 bn from TBANK
-11.8 bn from TMB
Net Profit (bn.)
+2.3 bn from NII
-1.2 bn from Net-fee
-9.4 bn from other income
+5.8 bn from provision expense
Trading off between profitability and risk management
OPEX (bn.)
PPOP (bn.)
17
+18% YoY
24
21
31
17
19
2018
2019
27
2018
19
19
-36% YoY
20
20
18
2019
12
-38% YoY
3
7
2
9
7
2018
2019
(-2)
• OPEX rose by +18.3% YoY, mainly from higher
operating expenses at TMB due to extraordinary
expenses.
•
Employee retirement benefit setup in 1Q19
according to the amendment of the new
Labor Protection Act.
•
Advisory fees from the M&A transaction
⚫PPOP for 2019 decreased by -35.6%. The drop
largely came from high base effect of one-time
gain from selling 65% stakes in TMBAM in
2018
If excluded the one-time gain from TMBAM
deal, PPOP would grow by +5.2% YoY
• TMB continued to de-risk its weak loans through
the year as well as to provide additional provision
for the two bank's risk alignment initiatives
• As a result, provision expense remained in high
range of target at 131 bps (TMB bank-only)
Net profit therefore was reported at THB 7.2 bn
Note: Consolidated P&L included TBANK's performance for 28 days (4-31 Dec 2019)
TMB
TBANK
Other subsidiaries
Intercompany eliminations
Excluded gain from TMBAM
6
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