2022 Performance and Synergy Realization

TTB's 2023 financial targets Loan Growth Approx. +3% Deposit Growth NIM Non-NII Growth C/I Ratio Stage 3 Ratio Credit Cost In line with loan growth 3.0%-3.10% 2.95% in 2022, 3.01% excluded PPA Low single digit growth Mid-40s from 2022 of 45% or 43.9% excluded PPA ≤ 2.9% 2.73% in 2022 125-135 bps 133 bps in 2022 • • tub Loan growth target reflects our direction to maintain a selective growth strategy and prudent portfolio management under rate hike cycle and recession risk in major economies in 2023. Given our current portfolio structure, there is still room to enhance yields by gearing toward retail segment and leverage our post-merger customer base. Our plan is to acquire quality HP and housing loans to maintain leading position in these markets while ttb consumer will ramp up our presence in consumer lending area. Deposit growth will be aligned with loan growth to ensure profitability margin in 2023. In addition to our strong retail deposit franchise, ecosystem initiatives would be one of deposit growth drivers. We intend to maximize payroll customer value by deepening engagement with both employers and employees via comprehensive payroll benefits and tax planning solution. Long-term game plan is to improve CASA mix and aim for efficient cost of deposit. NIM enhancement will come from our selective loan growth strategy which will ensure the quality of interest income stream, coupled with balance sheet initiative to improve earning asset yields and funding costs amid rising rate environment and the resumed contribution to FIDF (FIDF fee). We will continue to capture potential cross-selling opportunity from post-merger customer base and enhance alternative fee incomes from ecosystem initiatives. Commercial fees would come from converting the acquired loan customers to fee income to improve fee-to-assets. Cost synergies over the past 3 years were captured faster than plan. Going forward, the Bank will accelerate digital transformation thru One app platform to reduce cost per transaction. OPEX would increase to support business growth and C/I ratio is expected to remain at mid-40s in 2023, with a plan to achieve a low-40s level in the next 3 years. After battling with Covid-19 for 3 years, Thai economy is set to return to pre-pandemic levels. Nonetheless, the recovery is clouded by possibility of global headwinds such as US recessions, inflation, weakening demand from major trading partners. With this outlook, the Bank will maintain vigilant on asset quality while ensuring efficient NPL resolution to preserve value of the bad bank side. • The higher bound of Stage 3 ratio is expected at 2.9%, lower than 2022 guidance (≤ 3.2%). Such a level implies credit cost of approx. 125 bps to 135 bps which already takes into account loan expansion plan, de-risking activities and asset quality trend. In our view, LLR at the level of 120%-130% is sufficient and prudent based on our portfolio nature which is retail secured-lending base. 51

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