Bangkok--29 Apr--Aziam Burson-Marsteller
TMB today announced its TMB IT-ONE debenture offer has successfully reached its 4-billion baht subscription target. Subscriptions were solid from the opening day for the offer, reinforcing the appeal of the Bank’s hybrid tier-one debentures and their attractive 7% coupon rate.
TMB introduced the innovative TMB IT-ONE subordinated debentures originally as a 2-billion baht subscription. The Bank raised it to 4-billion baht when market research showed significant demand for the quality, high-return investment. The funds raised by TMB IT-One will be used as long-term credit released to TMB customers in support of the Bank’s business expansion and strengthening TMB’s capital base.
“We are delighted in this vote of confidence from investors, especially given the current sluggish economic situation,” said Mr. Boontuck Wungcharoen, TMB’s Chief Executive Officer. “They believe in TMB’s strategy to grow its business through an increased focus on customer centricity, offering a variety of high-quality financial products and services to meet customer aspirations and providing easier and more convenient service.”
TMB is currently in the first phase of its customer-centric transformation, which involves reorganization, transforming branches for service excellence for all segments, realigning end-to-end processes, HR transformation and improving its risk management. This focus complements the Bank’s other strategies of deposit-led growth and service excellence, which will help TMB to realize its vision of becoming the leading Thai Bank with World Class Financial Solutions.
For the first quarter of 2009, TMB reported a net profit of 436 million baht, a significant improvement from 4.0 billion baht in net losses in the fourth quarter of 2008. To strengthen its balance sheet, the Bank’s initiatives during the first quarter of 2009 included an early recognition of 2.9 billion baht in possible impacts from NPL & NPA sales, which are expected to finalize by the end of April 2009; a change in provisioning methodology by adopting International Financial Reporting Standards; and a 0.9 billion baht equity investments write-down based on Bank’s conservative approach to equity investment recognition. TMB maintained its strong liquidity position in this quarter with higher allocation of earning assets toward highly liquid and low-risk earning assets. TMB also improved its deposit mix during the first quarter, reflected in the higher proportion of current & savings deposits at 47%, which will help the bank to better manage its cost of funds and increase fee-based revenues in the 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 474 branch network, 106 foreign exchange centers, 2,014 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 31 March 2009, its total assets are valued at THB 601,379 million.
www.tmbbank.com
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