2022 Performance and Synergy Realization
2022 Outcomes
2022 Targets
tub
2022 Actual
Loan
Growth
Approx. +2%
+0.4% YTD
Deposit
Approx. +3%
+4.5% YTD
Growth
NIM
Stable
2.95%
2.97% in 2021,
3.01% excluded PPA
3.06% excluded PPA
Non-NII /
Total Assets
0.80%-0.90%
C/I Ratio
45%-47%
from 2021 of 48% or
46% excluded PPA
Stage 3
Ratio
≤ 3.2%
2.81% in 2021
0.79%
45%
43.9% excluded PPA
2.7%
Credit Cost
140-160 bps
157 bps in 2021
133 bps
TTB's loan growth slightly increased by 0.4% YTD as growth in retail loans almost offset by commercial loan
repayment (-5.7% YTD). Zooming in retail loans which our targeted area, it grew as plan, led by HP (4.3% YTD) and
mortgage lending (3.2% YTD). TTB continues to maintain leading position in these markets. Consumer loans also
expanded, backed by group restructuring initiatives on ttb consumer and will be a positive factor for loan yields
going forward. TTB's strategy is to rebalance loan mix towards retail loans and enhance loan yield.
Growth in deposit was mainly from our pre-fund strategy. Since 4Q21, TTB continued to acquire Time deposit
through Up and Up, a 24-month time deposit with a step-up interest rate to store term funding for our HP port and to
lock in low-cost deposit in the preparation for rising rate cycle.
The pre-fund strategy although put pressure on NIM during 1H22, we started to see turning point in 3Q22 as a result
of our well-prepared B/S position for rising rate environment. We expect the continuity of NIM improvement in 2023
from enhancement in assets yield and rising rate cycle, offsetting with an increase in FIDF normalization.
Despite unfavorable investment market that continued to affect MF fees, other key fee engines such as
bancassurance and commercial fees showed an improving momentum. The AT repurchase transaction also
contributed to higher non-NII. As part of our capital management initiative to improve equity holder value, we took
market opportunity to partially buy back AT1 and recognized gains from repurchase price in 2H22.
A strong decline in recurrent expense was underpinned by cost saving synergies from post-merger position. With
such synergy and our cost discipline, we could achieve 2022 C/I target, despite ongoing investment as per our
digital transformation plan. We target to improve C/I further and aim for low 40s in the next 3 year.
Stage 3 ratio was well-controlled and on a declining trend since its peak at 2.98% during Covid-19 crisis in 3Q20
and after the expiry of debt-relief program. This is a result of our prudent and conservative risk management we
quickly adapted since the beginning of the pandemic. We also ensure that our NPL resolution is efficient with an aim
to keep our B/S clean as well as to preserve NPL values.
Risk cost ended at 133 bps, below guidance. Such a level is based on forward-looking approach which includes
reserve and conservatism related to Covid-19 and economic uncertainty. LLR or NPL coverage ratio increased to
138%, a sufficient level for our portfolio, of which more than half is collateral-based.
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