Bangkok--18 Jan--TMB Bank ING Group joins TMB Bank as new strategic partner in December 2007 Strengthened capital base, with CAR of over 14% at the end of December 2007 Strong fee and foreign exchange income growth of 15% and 39% respectively. TMB Bank Public Company Limited today announced the consolidated financial performance of fiscal year 2007 to show an operating profit before provisions and other special items of BT9.648 billion, following a significant increase in net interest margin (NIM) and fee income. Mr. Subhak Siwaraksa, President and CEO of TMB Bank, stated: “In 2007, the Bank completed its balance sheet restructuring and capital raising plan while maintaining strong underlying operating performance. Net interest income increased by 8.6% from BT15,141 billion in 2006 to BT16.442 billion in 2007, while net interest margin (NIM) for the year 2007 rose to 2.4% compared to 2.1% in 2006. Fee income grew to BT5.433 billion in 2007 compared to BT4.734 billion in 2006 due to strong growth in transactional fees, consumer banking and bancassurance activities.” The Bank’s capital adequacy ratio (CAR) at the end of 2007 was strengthened and stood at 14.4% as of the end of December 2007, in line with its peers, following the successful completion of capital increase with the participation of ING Group — a global financial institution with Dutch origins — as a new strategic partner. The Ministry of Finance’s holding in TMB is now 26.1% and ING‘s is 25.2%. The sales of non-performing assets (NPAs) resulted in an approximate reduction in NPAs of 25% to BT22.571 billion at the end of 2007 compared to BT29.812 billion at the end of 2006. In addition, the Bank plans to accelerate its NPA sales program and has increased its provisioning level to BT4.453 billion or 16.5% of the book value of NPAs as of the end of 2007. Non-performing loans (NPLs) as at December 31, 2007 stood at BT72.415 billion, compared to BT56.089 billion at the end of 2006. The increase in NPLs was due to TMB’s stringent reclassification of certain loans based on continuing internal qualitative loan reviews, as well as delinquencies due to the slowing economic conditions in 2007. Based on a detailed review of the Bank’s loan portfolio, the Bank has increased its level of loan loss reserves (LLR) from a LLR / NPL ratio of 54% at the end of December 2006 to approximately 70% at the end of 2007. In addition, the Bank evaluated the potential impairment of its other financial instruments including its equity portfolio, Thai Asset Management Corporation (TAMC) and Bangkok Asset Management Corporation (BAMC) notes and set aside a further potential loss charge of BT5.943 billion in 2007. Despite the strong growth in operating profit, the significant provisioning for loan loss reserves, goodwill impairment resulting from the merger of TMB, DBS Thai Danu Bank and the Industrial Finance Corporation of Thailand (IFCT), additional provisions for NPAs and impairment charges of other financial assets resulted in a reported net loss ofBT43.657 billion for the fiscal year 2007. Mr. Subhak added: “2007 has been a watershed year for TMB with a new strategic partner, significant capital increase and a major balance sheet restructuring. Going forward, the bank is focused on improving its underlying business with an emphasis on improving further our franchises in the retail, SME and wholesale banking businesses underpinned by strong risk management standards with the assistance of our new partner, ING Group.” TMB Bank Public Company Limited Founded on 8 November 1957, TMB Bank Pcl. operates a commercial banking business under a license granted by the Ministry of Finance, and with consent given by the Bank of Thailand. It also operates a securities business licensed by the Ministry of Finance and agreed to by the Securities Exchange Commission. The Bank aims to respond to the needs of its clients through its 469 branch network, 110 foreign exchange centers, 1,744 ATMs, as well as electronics banking systems. Its business encompasses commercial banking, offshore banking, investment banking, and other businesses as permitted by the regulatory authorities, including acting as an insurance agent for its alliance insurance companies. Listed on the Stock Exchange of Thailand, the Bank is the sixth largest bank, by total assets, in Thailand. As at 30 September 2007, its total assets are valued at THB 651,783 million. www.tmbbank.com TMB Bank: Better Partner, Better Value Media enquiries: Tel: +66 2 242 3255 +66 85 813 302 [email protected] Investor enquiries: Tel: +66 2 299 2927 [email protected]