TMB Synergy and Financial Projections
Summary of key accounting treatments
Misconception
Recognition of TBANK's profit
Facts
TMB
Make THE Difference
TMB will aggregate TBANKs' profit the
whole year
P&L: Partial consolidation (4-31 Dec 2019)
B/S: Full consolidation, as of Dec 2019
Gain from selling 25.1% stakes in
TFUND, hold by TBANK
TMB will book gain on sale of investment
No gain book at TMB level, since TMB
booked TFUND at fair value. But this selling
reduced net premium and goodwill on M&A
deal. On the other hand, TBANK bank-only
recorded one-time gain from the sale
Contribution of TBANK's profit in
4Q19
At least expected net positive impact
from TBANK's profit 28 days
With one-time gain at TBANK level, we set
up higher provision than current TBANK's
run rate as buffer for risk policy alignment
Sizable goodwill on M&A deal
TMB will have sizable goodwill from
1. Goodwill carried from SCIB deal (THB18 bn)
2. Goodwill from TBANK M&A deal
We recognize only goodwill &
intangible assets from TBANK M&A
deal, approx. THB 24 bn, derived from
purchase price allocation (PPA) method.
(details in page 14)
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