TISCO Bank Plc. Analysts Meeting 3Q05 October 19, 2005 Disclaimer - - PowerPoint PPT Presentation

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TISCO Bank Plc. Analysts Meeting 3Q05 October 19, 2005 Disclaimer The 2005 third quarter operating results presented herewithin have not yet received a complete and full review by external auditor, which may be subject to changes in the

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TISCO Bank Plc.

Analysts Meeting 3Q05

October 19, 2005

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Disclaimer

The 2005 third quarter operating results presented herewithin

have not yet received a complete and full review by external auditor, which may be subject to changes in the due course of account reviewing process.

This presentation material may contain forward-looking

statements. These forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ from those in the forward looking statements as a result of various factors. TISCO Bank accepts no liability whatsoever with respect to the use of this document of its content.

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Condensed Balance Sheets

3Q04 8 2,659 1,678 5,982 49,951 5,151 65,429 40,179 3,229 6,980 3,801 11,240 65,429 % Change (YoY) 1,162.5 20.9 183.5 (3.3) 16.0 (9.2) 16.9 20.3 34.6 (1.5) 6.8 14.5 16.9 %Change (QoQ) 1,162.5 15.9 642.1 (24.7) 1.4 (11.8) 4.0 6.7 (3.2) (1.4) (8.0) 4.2 4.0 2Q05 8 2,775 641 7,683 57,126 5,303 73,536 45,305 4,488 6,974 4,413 12,356 73,536 3Q05 101 3,215 4,757 5,785 57,948 4,676 76,482 48,336 4,345 6,873 4,058 12,870 76,482 (Million Baht) Cash Interbank and money market items Securities purchased under resale agreements Investment in securities Net Loans, receivables and accrued interest receivables Others Total assets Deposits Interbank and money market items Borrowings Others liabilities Shareholders’ equity Total Liabilities and Shareholder’s equity

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Loans and Receivables Breakdown

40,971 10,924 10,947 11,118 11,253 5,089 5,781 5,384 45,383 44,716 42,978 5,313

5.3% 5.8% 5.8% 5.6%

10,000 20,000 30,000 40,000 50,000 60,000 70,000 Dec04 Mar05 Jun05 Sep05 Million Baht 0% 5% 10% 15% Retail Lending Corporate Lending Others NPLs

56,984 59,706

Y-T-D growth of total loans and receivables

was 8.8%, driven mostly by 11.9% growth of hire purchase portfolio.

NPLs to total loans dropped continually to

5.3%, resulted from the effective asset quality management and debt restructuring process.

Allowance to NPL was 127.9%.

61,147

4,288 4,246 4,138 4,181

3,304 3,446 3,429 3,268 Dec04 Mar05 Jun05 Sep05

NPL Allowance

4,288 4,246 4,138

62,020

4,181

NPLs & Allowance (Million Baht)

Others 7% Housing 4% Hire purchase 70% Commercial Lending 19%

Loans as of September 30, 2005

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Assets and Liabilities Management

Asset Mix Liabilities Mix

0% 20% 40% 60% 80% 100% 120% Dec04 Sep 05

Other assets Equity Fixed-income Other Loans Retail Loans Corporate Loans Securities purchased under resale agreement Interbank and Money Market

0% 20% 40% 60% 80% 100% 120% Dec04 Sep 05

Other Liabilities Borrowings Interbank Deposits

62% 73% 59% 76% Portfolio Dec 04 % Sep 05 % %Y-T-D Interbank 1,519 2 3,215 4 112 Repo Securities 2,105 3 4,757 6 126 Corporate Loans 10,924 16 11,253 15 3 Retail Loans 40,971 62 45,383 59 11 Other Loans 5,089 8 5,384 7 6 Allowance (4,288) (6) (4,181) (5) (2) Fixed-income 994 1 1,493 2 50 Equity 4,218 6 4,292 6 2 Other assets 4,764 7 4,886 6 3 Total Assets (Bm) 66,296 100 76,481 100 15

Portfolio Dec 04 % Sep 05 % %Y-T-D Deposits 39,288 73 48,336 76 23 Interbank 4,307 8 4,345 7 1 Borrowings 6,986 13 6,872 11 (2) Other Liabilities 3,134 6 4,059 6 30 Total Liabilities 53,715 100 63,612 100 18 Total Equity 12,581

12,869
2

Loans/Deposits 145.0 128.3

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Profitability

1,339 31 394 1,764 53 1,817 1,875 1,589 2,103 795 2,898 9M04 1,425 22 473 1,920 120 2,040 1,991 1,666 2,365 1,024 3,389 9M05 6.4 (29.0) 20.1 8.9 126.4 12.3 6.2 4.9 12.5 28.8 17.0 % Change (YoY) 129.7 74 170 Tax 0.0 8 8 MI 59.9 429 686 EBT (20.2) 84 67 Provision expenses 46.8 513 753 EBPT 11.7 639 714 Non-interest expense 44.0 475 684 Non-interest income 15.6 677 783 Net interest and dividend income 45.2 270 392 Interest expenses 347 947 3Q04 46.2 508 Net Income 24.1 1,175 Interest and dividend income % Change (YoY) 3Q05 (Million Baht)

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3Q05 Performance

517 885 347 400 508 200 400 600 800 1,000 3Q04 4Q04 1Q05 2Q05 3Q05

Bt mn

3Q05 net profit rose by 26.9% q-o-q mainly

attributed to increases in securities business fee, asset management fee, and gain on investment.

3Q05 net profit rose by 46.2% y-o-y, mainly

due to the increase in income from operations especially the hire purchase business and the asset management business, and gain on investment in securities.

Net Profits

534 184 718 17.5 1.2 5.4 29.7 4Q04 532 185 717 15.7 0.5 2.2 12.6 3Q04 534 186 720 16.7 0.7 3.0 16.8 1Q05 541 535 Common Shares (million shares) 181 186 Preferred Shares (million shares) 722 721 Total Shares (million shares) 17.9 17.2 BVPS (Bt/share) 0.7 0.6 Diluted EPS (Bt/share) 2.7 2.2 ROAA (%) 16.1 3Q05 13.1 ROAE (%) 2Q05

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Net Interest and Dividend Income

15.7 677 783 12.5 2,103 2,365 Net Interest & Dividend Income (NII) (20.2) 84 67 126.4 53 120 Provision 20.7 593 716 9.5 2,050 2,245 NII after Provision 45.2 270 392 28.8 795 1,024 Interest expenses (18.3) 60 49 (11.1) 180 160 Interest on Long-term borrowings 125.0 8 18 109.5 21 44 Interest on Short-term borrowings 65 529 2,898 186 2,159 30 523 9M04 92 728 3,389 263 2,605 90 431 9M05 1.5 37.6 17.0 41.4 20.7 200.0 (17.6) % Change (YoY) 57.1 21 33 Interest on interbank 61.3 181 292 Interest on deposits 24.1 947 1,175 Interest and dividend income 87.2 39 73 Investment 20.0 755 906 Hire purchase and financial lease 336.4 11 48 Interest on Interbank 142 3Q04 4.2 148 Interest on Loans % Change (YoY) 3Q05 (Million Baht)

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Spread-NIM

4.0 4.6 4.4 4.3 4.2 4.3 4.6 4.9 4.6 4.5

3.0 3.5 4.0 4.5 5.0 5.5 3Q04 4Q04 1Q05 2Q05 3Q05

(%) Spread NIM 4.9 4.6 2.3 6.9 4Q04 4.3 4.0 2.7 6.7 3Q05 4.6 4.3 2.3 6.5 1Q05 4.2 4.4 Spread 4.5 4.6 NIM 2.4 2.2 Cost 6.7 6.6 Yield 2Q05 3Q04 (%)

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Non-interest income

1,589 110 (1) 769 2 18 691 9M04 1,666 191 1 662 1 322 489 9M05 4.8 73.6 200.0 (13.9) (50.0) 1,688.9 (29.2) % Change (YoY) 143.6 39 95 Other income 100.0 1 Gain (loss) on exchange 34.1 182 244 Others (100) 1 Acceptances, aval and guarantees Fee and services income 160.8 74 193 Gain (loss) on investments 475 179 3Q04 44.0 684 Non-interest income (15.69) 151 Brokerage fee % Change (YoY) 3Q05 (Million Baht)

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Non-Interest Income

4.8 1,688.9 (91.4) 30.7 32.3 (29.2)

% Change (YoY)

475 74 4 162 56 179

3Q04

160.8 193 18 322 Trading Income 1,589 244 472 164 691

9M04

46.9 238 617 Fee Income from Fin. Bus, SAM and others 75.0 7 21 Investment Banking Fee 71.4 96 217 Asset Management Fee 44.0 684 1,666 Total Non-Interest Income (16.2) 151 489 Brokerage Fee

% Change (YoY) 3Q05 9M05 (Million Baht)

129 49 203 2 6 96 238 7 193 151

50 100 150 200 250 Brokerage Fee Asset Management Fee Fee Income from Fin.

Bus. SAM

and others Investment Banking Fee Trading Income

Million Baht

2Q05 3Q05

Non-interest income increased

contributed from income from asset management business and gain on investment.

Non-interest income picked up

in 3Q05 comparing to non- interest income in the last quarter. 2Q05 VS 3Q05 Non-interest income

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Operating Expenses

1,875 288 5 383 53 234 913 9M04 1,992 429 5 442 54 310 752 9M05 6.2 49.0 0.0 13.3 1.9 32.5 (17.6) % Change (YoY) 56.6 106 166 Other expenses (50.0) 2 1 Directors’ remuneration 5.0 140 147 Fees and service expenses 12.5 16 18 Taxes and duties 32.1 81 107 Premises and equipment expenses 639 293 3Q04 11.7 714 Operating Expenses (6.8) 273 Personnel expenses % Change (YoY) 3Q05 (Million Baht)

55.4% 41.3% 45.7% 54.5%

48.6%

3Q04 4Q04 1Q05 2Q05 3Q05

The operating expenses increased

mainly resulted from expenses for bank upgrade and for hire purchase business expansion.

Cost to income ratio was down to

48.6% in 3Q05.

Cost to Income Ratio

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Hire Purchase Business

The outstanding HP portfolio

increased by 1.7% q-o-q or 11.9% Y-T-D to Bt43,156.

New loans extended in 3Q05

amounted to Bt5,704.09mn, grew by 2.4% y-o-y.

Penetration Rate for 8 months

was 7.4% compared to 7.3% at the end of 2004.

140 187 167 179 104

7.0

7.3 7.7 7.1 7.6

50 100 150 200 250

3Q04 4Q04 1Q04 2Q04 Jul-Aug05

0.0 2.0 4.0 6.0 8.0 10.0 12.0

Total Car Sales Penetration Rate

Thousand Units (%)

(Remark: Penetration rate was accounted for only new car sales.)

New Business Car Hire Purchase

Industry New Car Sales & TISCO Market Share

Million Baht

4,207 4,338 5,842 6,919 6,628 6,798 5,704 4,614 5,303 4,855 12,760 15,082 12,619 13,315 13,091 2,000 4,000 6,000 8,000 10,000 3Q04 4Q04 1Q05 2Q05 3Q05 3,000 6,000 9,000 12,000 15,000 18,000 New business Car HP (Bm) Repayment New business Car HP (units)

Units

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Local Brokerage Business

Market Turnover & TISCO Market share TISCO Brokerage Volume & Brokerage Fee

Brokerage Fee (Btmn) Brokerage Volume (Btmn) Market Share (%) Daily Average Turnover (Btmn)

16,274 18,280 21,267 15,536 15,865 2.8% 2.7% 3.2% 3.6% 3.4%

5,000 10,000 15,000 20,000 25,000 3Q04 4Q04 1Q05 2Q05 3Q05 0% 1% 2% 4% 5%

Market turnover Market share

70,592 82,145 85,171 56,362 48,168 151 129 179 212 209 20,000 40,000 60,000 80,000 100,000 3Q04 4Q04 1Q05 2Q05 3Q05 200 400

Volume Fee

Market share, brokerage volume, and brokerage fee picked up in 3Q05

compared to those in 2Q05.

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Asset Management Business

Market NAV and TISCO Market Share Asset Under Management

10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 Sep04 Dec04 Mar05 Jun05 Sep05 Provident Fund Private Fund Mutual Fund 6.9 7.0 7.4 7.3 7.0

200,000 400,000 600,000 800,000 1,000,000 1,200,000 Sep04 Dec04 Mar05 Jun05 Aug05 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0

Provident Fund Private Fund Mutual Fund Market Share of TASSET

Total NAV (Btmn) Total NAV (Btmn) Market Share (%)

64,760 67,704 72,595 74,044 78,598 888,965 924,545 988,257 1,059,386 1,086,421 27% 63% 63% 65% 64% 63% 27% 26% 27% 27% 33% 52% 52% 55% 57% 57% 33% 31% 30% 30%

13.7 13.9 15.1 14.8 14.9 1.0 1.4 1.2 1.2 1.1 14.3 14.3 14.2 13.8 13.2 0.0 4.0 8.0 12.0 16.0 Sep04 Dec04 Mar05 Jun05 Sep05

Provident Fund Private Fund Mutual Fund

Market Share (%) 6.2 2.0 7.2 4.5 4.6 0.0 2.0 4.0 6.0 8.0 Sep04 Dec04 Mar05 Jun05 Sep05

% Growth

Asset Growth (QoQ)

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6,149 12,356 6,371 12,869 4,826 4,826 18.36% 18.06% 2,000 4,000 6,000 8,000 10,000 12,000 14,000 Jun-05 Sep-05

Baht Million

15.00% 16.00% 17.00% 18.00% 19.00% 20.00% 21.00%

CAR Integrated Risk Capital Capital Base Regulatory Capital CAR

Jun-05

Retail Lending 40% Listed Equity 26% Fixed-income 0% Banking Book 10% Derivatives 0% Property 4% Non-listed Equity 4% Operational Risk Reserve 10% Wholesale Lending 6%

Risk-Based Capital Adequacy

Sep-05

Property 4% Listed Equity 23% Fixed-income 0% Banking Book 16% Operational Risk Reserve 10% Non-listed Equity 4% Derivatives 0% Retail Lending 37% Wholesale Lending 6%

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Interest Rate Risk

Interest rate duration gap was

widen from 6.12 months to 7.32 months mainly according to lower day to maturity of deposit portfolio. 1.27 1.22

0.76 0.61

0.2 0.4 0.6 0.8 1 1.2 1.4

Jun-05 Sep-05

Assets Liabilities Current Profile

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Number of Employees

1,140 1,240 1,270 1,347 1,485 410 462 479 109 287

500 1,000 1,500 2,000 2,500 2001 2002 2003 2004 Sep05 Employees

Permanent Contract

1,680 1,809 1,249 1,527 1,964

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Key Economic Indicators

Thai GDP Growth

2.17 5.33 6.87 6.12 4.00 4.50 1 2 3 4 5 6 7 8 2001 2002 2003 2004 2005E 2006E Y-O-Y (%)

37.78 1.75 6.75 5.28 5.33

2002

13.30 2.25 7.00 4.12 2.17

2001

30.30 1.25 5.50 6.44 6.87

2003

6.06 10.00 17.33 Automobile Sales 4.25 3.50 2.00 Repurchase (RP14) 6.75 6.00 5.50 Interest rate - MLR 4.40 4.30 5.72 Private consumption 4.00

2005(E)

4.50 6.12 Thai GDP Growth

2006(E) 2004 (%)

Source: TISCO estimates

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