TMB Synergy and Financial Projections
Asset quality
Operating performance
2020 performance guidance
Deposit Growth
Flat - 2%
Deposit 19' 1,398 bn
Loan Growth
≤ Flat
Loan19' 1,395 bn
NIM
2
~ 3.0%
Non-NII/ Total assets 0.95%-1.10%
C/I Ratio
% Stage 3
Credit cost
48%-50%
< 2.8%
125-130 bps
◉
Sustain deposit balance to maintain our positions in the market, focusing on
retail deposit and less weigh on non-transactional commercial deposit (high
cost NCD)
Optimize loan portfolio strategy to enhance capital utilization and improve NIM
by running down low-yield loans, shifting towards retail segment. This will
allows the Bank to generate better NII and be more efficient in capital usage
Improve net interest margin by using holistic balance sheet optimization
Grow Non-NII by cross-selling fee products (Mutual fund and Bancassurance)
to larger customer base (double the size of TMB's customers)
Incur cost during 1st phase of integration would be self-funded to maintain C/I
ratio at 48%-50%. After synergy realization in 2022 onwards, C/I ratio will
improve to mid-40s.
Maintain prudence approach in managing low quality loans by de-risk portfolio
Continue prudent management in provisioning level and expect to maintain
credit cost at the same level as last year from 2 key reasons (1) economic
headwinds in 2020 and (2) alignment of TMB and TBANK credit models, (if
additional ECL required) in preparation for EBT
30
TMB
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