Bangkok--18 Jul--TMB Bank TMB Bank Public Company Limited (TMB) today announces that the Bank and its subsidiaries recorded a net profit of 2,748 million baht in the first half of the fiscal year 2008 ended on June 30. The profit was an increase of 20,895 million baht from the net loss of 18,147 million baht in the same period of 2007, Mr. Boontuck Wungcharoen, TMB Chief Executive Officer, said. The financial statements for the Bank only reported a net profit of 2,665 million baht — an increase of 20,878 million baht from the net loss of 18,213 million baht in the same period of last year. Mr. Boontuck added that beside the operating profit, TMB’s performance in the first half of 2008 was also attributable to the key measures the Bank carried out last year. In 2007, TMB has already amortized the goodwill arising from the merger with DBS Thai Danu Bank and the Industrial Finance Corporation of Thailand, and has recorded an impairment loss in the full amount of 12,594 million baht in the first half of 2007. TMB does not have to carry out any goodwill amortization and there is not carry amount of the goodwill from the beginning of 2008 onwards. Additionally, TMB Bank and its subsidiaries have recorded adequate provisions for doubtful accounts and bad debts in accordance with the Bank of Thailand’s guidelines in the first half of 2007. Mr. Boontuck disclosed that the operating performance of TMB Bank and its subsidiaries recorded net interest and dividend income of 8,216 million baht — an increase of 2.5% or 198 million baht, compared to the same period last year. This was due mainly to the fact that the Bank’s funding costs decreased faster than the yield on earning assets. As a result, net interest margin (NIM) in the first half of 2008 increased to 2.6% from 2.3% in the same period of 2007. Non-interest income rose by 133 million baht or 3.2% from the same period last year as a result of the improvement in fee and service income, particularly from its subsidiaries as well as the gain on properties foreclosed. In addition, non interest expense decreased largely due to the recording of possible loss sharing from the impaired assets transferred to national AMC of 1,381 million baht in 2007 while 288 million baht was recorded in 2008. As at June 30, 2008, the Bank and its subsidiaries had total assets of 621,578 million baht — a decrease of 583 million baht or 0.1% from the year ended 2007. The total loans was 436,171 million baht, decreased by 28,724 million baht or 6.2% from the year ended 2007, as a result of the Bank’s strategy to realign the loan portfolio through a reduction of low-yield loans and loan repayments. At the end of the first half of 2008, the Bank and its subsidiaries’ NPLs were 70,500 million baht, decreased by 6,012 million baht from the end of 2007 due primarily to NPL sales and restructuring efforts. The total liabilities of the Bank and its subsidiaries amounted to THB 575,974 million — a decrease of THB 1,667 million or 0.3% from the end of 2007. The shareholders’ equity of the Bank and its subsidiaries was 45,604 million baht, increased by 1,084 million baht or 2.4% from the end of 2007. This was due mainly to a net profit of 2,748 million baht gained in the first six months of 2008, partly offset by a decrease in unrealized gain on revaluation of investments of approximately 1,654 million baht. As at 30 June 2008, the capital funds (tier-1 and tier-2) of the Bank was 16.51% of risk weighted assets (RWA), of which 11.75% was tier 1 capital. Mr. Boontuck added that TMB is moving ahead as planned, with a focus on growing the retail business and improving risk management rigorously to be on par with international standards. “We will also adjust the plan where need be in order to be able to beat market competition. With our financial strength, good management and strong support from our significant shareholders — the Ministry of Finance and ING Group, we are confident that we will achieve our goal to become one of the top-tier banks in the market in the near future.” 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 473 branch network, 108 foreign exchange centers, 1,745 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]