Bangkok--30 Aug--TMB Bank TMB Bank Public Company Limited (TMB) today announced that the audited financial results for its first half of fiscal year 2007 were impacted by a non-cash impairment charge of Bt12.24 billion to write off goodwill arising from the merger with The Industrial Finance Corporation of Thailand (IFCT) and DBS Thai Danu Bank. TMB, in consultation with an independent financial advisor, has reassessed the carrying value of goodwill to determine the future economic benefits of the goodwill. Based on this result of this reassessment, the goodwill of Bt12.24 billion was written off in the first half of 2007. Such impairment charge will not impact the Bank’s capital adequacy level given its non-cash nature and exclusion from capital adequacy calculation. Previously, TMB amortized the goodwill over a 20 year period. From the second half of 2007, the Bank’s annual amortization expenses will be reduced by approximately Bt713 million per year. Despite the goodwill write-off, the first half of 2007 consolidated operating profit (before loan loss charge, goodwill amortization, non-recurring expenses, income tax and minority interest) was Bt4.58 billion, a 12.6% increase from Bt4.07 billion in the first half of 2006. As at June 30, 2007, TMB Bank’s total assets were Bt646.36 billion. Total loans were amounted to Bt505.16 billion. NPLs were Bt66.43 billion compared to Bt61.93 billion in December 2006. An increase in NPL is due largely to loans reclassification from continuing more stringent internal qualitative loan review as well as a rise in NPLs due to the unfavorable economic condition. As a result, the Bank has set aside additional provisioning of Bt8.20 billion in the first half of 2007, together with goodwill impairment charge of Bt12.24 billion and other non-recurring expenses resulting in consolidated net loss of Bt. 18.15 billion for the first half of 2007. The Bank’s consolidated capital adequacy ratio remains at around 10.2% compared to the minimum requirement of 8.5% set by the Bank of Thailand. TMB Bank also re-confirms that the discussion on TMB’s recapitalization is on-going, considerable progress has been made, and it is deemed premature to unveil the plan at this moment. The Bank will officially announce the details of the capital increase when the plan is finalized and approved by its Board of Directors. For more information please contact: Tel: +66 2 242 3255 +66 2 242 3260 +66 85 813 302 Fax: +66 2 242 3254 [email protected]