TMB Synergy and Financial Projections
Zoom-in on balance sheet optimization
TMB
Make THE Difference
Q4-19
Q1-20
Q2-20 Q3-20
Q4-20
1
Loan -50 bn.
Decrease high cost
deposit
2
1
Decrease low return loan
TMB port
Amt.
Avg.
Yield
Replace with low cost
deposit and borrowing
3
Loan
-50 bn
2.5%
-25
(-25 bn.)
Liability
2+3 Decrease high cost funding and may replace with lower cost funding (borrowing)
Asset
TBANK port
Amt.
Avg.
Cost
NCD*
-70 bn
2.32%
Equity
Wholesale TD
-65 bn
2.31%
*Exclude Retail NCD
Benchmark
2020 estimated
Borrowing Cost: 3Y = 1.75%
Tier 1 ≥ 13%
LCR ≥ 150%
In Q4-2019, the Bank already reduced low return loan by THB 25 bn with average yield 2.5%.
In 2020, the Bank will continue to run down low yield portfolio and high cost of deposit (NCD and Wholesale TD).
With the enhancement of capital usage, the Bank expects synergy to be realized ~ 200-300 mn. in 2020
(-70 bn.)
(-65 bn.)
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