TMB Bank Plc.

Empowering Customers

with Digital Banking

Investor Presentation

4Q16 and 2016 Performance

Make THE Difference

[2]

AGENDA

4Q16 and FY2016 Performance

Asset Quality

2016 Wrap-Up and Looking Forward

1.79%

1.35%1.24%

0.0%

0.4%

0.8%

1.2%

1.6%

2.0%

4Q15 3Q16 4Q16

Cost of deposit

[3]

Optimized deposit structure towards more Transactional Deposits

Optimization of deposits resulted in deposit decrease of 7.1% YoY

Time deposit declined by 32% YoY, in line with the

strategy to convert high cost deposits to mutual fund

Key retail deposit increased:

Retail transactional accounts increased 4%. Key driver

was “All Free” which relaunched in 4Q16

No-Fixed & ME rose 4.2% YoY

% Transactional deposit/total deposit rose to 40%

from 37% in 2015

In 2016, 52% of deposit outflow was actively converted to mutual fund, in line with the strategy to optimize deposit volume toward transactional deposits to be in line with loan growth

2016 cost of deposit reduced 38 bps to 1.45%

% Txn deposit/total deposit

37% 38% 40%

FY2015 FY2016 Change (bps)

1.83% 1.45% -38 bpsDeposit cost

5.70%

5.38% 5.39%

4.0%

4.5%

5.0%

5.5%

6.0%

4Q15 3Q16 4Q16

Loan yield

[4]

Moderate performing loan growth driven by retail loan

Total loan growth was moderate at 2.2%. Performing loan grew 2.8%

Retail loan increased +32% YoY, led by mortgage loan

+53% YoY and credit card +26% YoY

Corporate declined -6.6%

SMEs declined -3.1%

TMB has grown mortgage loan market share from 3.4% to 4.8%* on the back of

Improving end-to-end process to improve turnaround

time resulted in an increase in efficiency

Developed mortgage mobile sale channels along with

building relationship with top developers

2016 loan yield (5.44%) dropped 30 bps from 2015 (5.74%)

mainly from the shift in loan mix toward mortgage loan and

MLR and MRR reduction

Note: MLR and MRR cut 25 bps in April-16

+0.3%+2.8%

FY2015 FY2016 Change (bps)

5.74% 5.44% -30 bps

* Market share as of Sep 2016

Loan yield

[5]

NIM improved from optimization of deposit structure and achieved

better funding cost

In 4Q16, NIM rose 9 bps QoQ to 3.33%, or driven

mainly by optimizing deposit mix and well-managed

funding cost, while yield came down less

2016 NIM increased by 15 bps to 3.17%

FY2015 FY2016 Change

3.02% 3.17% +15 bpsNIM

FY2015 FY2016 YoY growth (%)

THB23,220 mn THB24,761 mn 6.6%NII

As a result of further NIM improvement, NII grew

by 2.0% QoQ

2016 NII showed a steady growth of 6.6% YoY

+9 bps

+2.0%

[6]

Non-NII growth turned around from 3Q16

2016 Non-NII increased slightly by 2.7% YoY

Commercial banking fee declined due to

Loan-related fee dropped 32% YoY

Capital market income reduced 37% YoY

LG rose 9% YoY and Trade finance rose 14% YoY

Retail fees increased 12% mainly from bancassurance fee +32 YoY and credit card fee +65% YoY

Note: *Non-NII excluded gain on sales of assets

2,064 2,057 1,842 1,915 2,034 2,205

2,592 2,619 2,456

2,307

2,660

2,924

3Q15 4Q15 1Q16 2Q16 3Q16 4Q16

Other non-interest incomeNet fee and service incomeTotal non-interest income

Non-interest income

7,821 7,997

10,078 10,347

FY2015 FY2016

Non-NII improved 9.9% QoQ from 3Q16, supported mainly by net fee and service income

Net fee income rose by 8.4% QoQ driven mainly by key strategic fee products i.e. Bancassurance fee, LG and TF

+9.9%

+2.7%

+15.3%-6.0%-6.2%

THB million

[7]

431 297 287

407 527 527

529 679 555

514 537

788 140 138

122 114

125

130

82 65 84

98 86

87 340 306

263 285

216

170

2,064 2,057

1,842 1,915

2,034

2,205

3Q15 4Q15 1Q16 2Q16 3Q16 4Q16

Other Loan related fee Trade finance

LG Fee Bancassurance Mutual fund

Fee income increased 8.4% QoQ for 3 consecutive

quarters after a drop in 1Q16 mainly from strategic

products, led by;

Bancassurance fee, +47% QoQ

LG fee +4% QoQ

Mutual fund fee was flat QoQ

However, loan-related fee dropped 24% QoQ

2016 fee income grew 2.2% led by growth in key strategic

fee products, despite heavily weighed down by 32%

reduction of loan-related fee

Bancassurance fee +23% YoY

LG fee +9%

TF +14%

Loan-related fee dropped 32% YoY

*MF: Mutual fund

1,751 1,748

1,939 2,393

450 492

312 355

1,368 934

7,821 7,997

2015 2016

Fee and service income (THB million)

Loan related -24% QoQ

BA+47% QoQ

LG+4% QoQ

TF +1% QoQ

MF flatted QoQ

Loan related -32%

+8.4% +2.2%

+6.2%+4.0%-10.4%

MF flatted

TF +14%

BA+23%

*BA: Bancassurance

Net fee income from strategic products continued its upward recovery

[8]

Operating costs were managed to be in line with business volume to

ensure growing operating profitability

In 4Q16, operating expenses rose 7% QoQ

due to an increase in marketing expense

For 2016, operating income grew 5%, with

focus in efficiency, operating expenses were

flat, in line with our principle that operating

expenses increase half of revenue growth

**Operating costs exclude loss on impairment of properties foreclosed, provisions of obligation on transfers of non-performing assets and provisions for other liabilities

***Non-interest income excluded gain on sale of asset

+0%expenses

+5%

[9]

Therefore PPOP continued to grow by 10% in 2016

PPOP recorded at THB4,834 million in 4Q16,

+0.5% QoQ

PPOP of 2016 continued to grow 10.2% YoY to

THB18,667 millionFY2015 FY2016 YoY growth (%)

THB16,937 mn THB18,667 mn 10.2%PPOP

Cost efficiency continued to improve

Cost to income ratio in 4Q16 increased QoQ due to

an increase in marketing expense

For the year 2016, cost to income ratio improved to

47% from 49% in 2015

[10]

FY2015 FY2016

49% 47%Cost to income ratio

4Q16 and FY2016 Performance

Asset Quality

2016 Wrap-Up and Looking Forward

AGENDA

[11]

NPL formation remains elevated, but less coming from new NPL

Note: 1) % NPL formation and NPL resolution calculated per total loan+ interbank loan

2) Stated as annualized basis

Average NPL formation in 2016 was 2.4%, higher

than 2.2% in 2015

However, new NPL formation slowed down in

2016. NPL formation in 2016 was more driven by

restructuring loan portfolio

New NPL formation in 4Q16 was lower to 0.8%

mainly due to SME portfolio

[12]

Average (%) FY2015 FY2016

Total NPL formation 2.2% 2.4%

New NPL formation 1.5% 1.1%

Speed up NPL resolution by writing off to limit further downside risk

Note: 1) % NPL formation and NPL resolution calculated per total loan+interbank loan

2) Stated as annualized basis

To be conservative and to reduce downside risk in the future, TMB is more proactive in writing off NPL in 2016

In 4Q16, TMB continued to write off NPL. However, amount of NPL written off was lower to THB2 billion compared with

THB6 billion in 3Q16

For 2016, TMB made an extra write-off amounted to THB12 billion and NPL sale amounted to THB1.2 billion

Consequently, NPL ratio dropped to 2.53%, with the written-off portfolio of THB22.2 billion

[13]

NPL resolution included extra write off

Natural NPL resolution

648

17 20

649

19 20

659

19 18

0

100

200

300

400

500

600

700

PASS SM NPL

450

500

550

600

650

Dec-15 Jun-16 Sep-16

Chart Title

94.6% 94.3% 94.8%

Dec-15 Jun-16 Dec-16

648

17 20

649

19 20

659

19 18

0

100

200

300

400

500

600

700

PASS SM NPL

Dec-15 Jun-16 Dec-16

[14]

TMB maintained stable performing loan portfolio quality with relatively

small restructuring and rescheduling loans

% of

total loan

2.98% 2.87%

2.52%

Dec-15 Jun-16 Dec-16

2.9%2.8%

2.7%

Dec-15 Jun-16 Dec-16

Pass, SM and NPL loan

0

10

20

30

40

50

60

70

Dec-15 Jun-16 Sep-16

SM-Normal SM-Reschedule SM-Restructure

THB bn

Loan quality

0

20

40

60

80

100

120

140

160

180

200

Dec-15 Jun-16 Sep-16

NPL

P-Normal 92.5%

SM-Restructured 1.9%*

Included restructured loan under concession rate of THB6.8 bn (1.0% of total loan)

Perform-Rescheduled 1.0%Perform-Restructured 1.2%

SM-Normal 0.7%SM-Rescheduled 0.2%

NPL 2.52%

94.8%

2.7%

Dec-16

THB bn

Special mention loan portfolio remained stable,

while NPL portfolio decreased as a result of write

offs that have reduced downside risks

With higher proportion of NPL formation coming from

TDR, our relatively small restructuring also mitigate

future downside risk

Note: Bank-only financial statementNote: Bank-only financial statement

0

4,000

8,000

12,000

16,000

20,000

Dec-16

NPL Breakdown SME NPL Total NPL

NPL Ratio reduced to 2.53% with TCG claimable of THB3.8 bn

NPLs as of Dec-16 was at TH17,605 million

QoQ slightly increased by 0.8%

YoY dropped by THB2.8 billion or 14% due

mainly to write-off NPLs in 2016

From total NPLs of THB17.6 billion, THB14.0 billion

was NPL in SME of which THB3.8 billion was

claimable from TCG

[15]

TCG

claimable 3.8 bn

From SME

17.6 bn

14.0 bn

THB million

The proactive provision was set high in 2016

The write-off loan was required to set up 100%

provision, disregarded of collateral value.

Additional write-offs together with uncertain

economic outlook, the Bank set relatively high

provision of THB2.2 billion in 4Q16

Provision was THB8.6 billion in 2016

Credit cost in 2016 is 146 bps

[16]

923

1,8771,998

2,541

2,234

64

128 135

172

151

-

20

40

60

80

100

120

140

160

180

0

500

1,000

1,500

2,000

2,500

3,000

4Q15 1Q16 2Q16 3Q16 4Q16

Provision expense Provision expense

Annualised credit cost

THB million bps

FY2015 FY2016 YoY growth (%)

THB5,479 mn THB8,649 mn 57.9%

94 bps 146 bps 52 bps

Provision expense

Credit cost

Coverage ratio remained high in line with the Bank’s target

[17]

As a result of higher provision, coverage ratio remained strong at 143% in 4Q16

Net profit declined due to higher provision

After provision, net profit was at THB2,138 million,

+15.9% QoQ

For 2016, net profit declined 11.9% YoY.

ROE was at 10.2%

[18]

FY2015 FY2016 YoY growth (%)

THB9,333 mn THB8,226 mn -11.9%

12.9% 10.2%

Net profit

ROE

Tier 1 improved to 12.8% in 2016

TMB maintained capital base at high level under Basel III requirements

Tier I capital improved from 2015 to 12.8% (entirely Core Tier I) and total CAR improved to 18.1%.

[19]

4Q16 and FY2016 Performance

Asset Quality

2016 Wrap-Up and Looking forward

AGENDA

[20]

-

500

1,000

1,500

2,000

2,500

3,000

3,500

Jan

-15

Feb

-15

Mar-

15

Ap

r-15

May-1

5

Jun

-15

Jul-

15

Au

g-1

5

Sep

-15

Oct

-15

No

v-1

5

Dec-

15

Jan

-16

Feb

-16

Mar-

16

Ap

r-16

May-1

6

Jun

-16

Jul-

16

Au

g-1

6

Sep

-16

Oct

-16

No

v-1

6

Dec-

16

Branch ATM/ADM Digital

TMB successfully migrate customers to digital channel

TMB’s proof points of Digital transformation in 2016

Digital Vision

2016

Active digital customers

500K in Dec 2016

% digital cust/active cust = 20%

*Active digital customers : Active internet banking customers + active mobile banking customers

Active digital customers as of Jan 2015 = 140K

Digital Financial transactions surpass traditional channels

Financial transactions : Transfer + Bill Payment + ORFT

+344.7%

+6.7%

+4.7%

Digital is a mean for “Empowering customers to make the most of their lives with simple and personalized banking”

“เป็นทุกความเป็นไปได้ เพื่อให้คุณใช้ชีวิตได้เต็มที่ในแบบที่คุณต้องการ”

% digital customers/active customers = 6%393 baht & 1.82 PH

142 baht & 1.26 PH

Sh

are

of

wallet

pro

du

ct h

old

ing

(P

H)

Digital cust

Non-digital cust

from Jan’15

Digital customers apply for so good – Grew 19 folds

รายการแบ่งจ่าย0% 3 เดือน

0

10

20

30

40

50

60

70

80

90

Jan-16 Dec-16

#Transactions, applying for So GoooD

via digital channel

via call center

52,869transactions

2,629transactions

61,612transactions

83,253transactions

(thousand)

(thousand)

4%%Digital/total channels 39%

The usage of digital channel in applying “So Goood”

feature grew 19 folds

% digital channel/ non-digital channel rose to 39% from 4% in Jan-16

Embracing the holistic shift to digital, cross-product

[21]

Areas of focus in 2017 to continue our growth

Transactional DepositGrowing transactional deposit

continues to be a challenge for both commercial and retail banking

Fee IncomeWhile Fee Income has improved

substantially from 2008 level of 0.6%

per EA, fee income capability remains

subpar comparing to Top Peers

EfficiencyWhile TMB has been more efficient

comparing to C/I of 71% in 2008,

efficiency still present a gap comparing

to Top Peers.

Note: Fee*/EA = Fee per Earning Asset; C/I = Cost to Income Ratio

* Fee = Net fee + Capital market fee

In 2016,

%Txn to Non-Txn Deposit in 2016 was at (40%) comparing to

ratio in the beginning of the year at (37%)

+107% increased in #no. of customer account in flagship product, namely “All-Free”

In 2016,

Fee/EA of 1.3% vs 2.0% Top Peers

In 2016,

TMB C/I = 47%; Peers’ C/I = 40%

[22]

Key financial targets

Key ratios 2016 Actual 2017 Target

Performing loan growth 2.8% 8-10%

Deposit growth -7.1% 8-10%

Net interest margin 3.2% 3.2%-3.3%

Net fee income growth 2.2% 10-20%

Cost to income ratio 47% 45-47%

ROE 10.2% 10%-12%

NPL ratio 2.53% 2.3-2.5%

Coverage ratio 143% 140-150%

Credit cost (annualized) 146 bps 140-150 bps

[23]

TMB Bank Public Company Limited

3000 Phahonyothin Road

Chatuchak, Bangkok 10900

Website: www.tmbbank.com

Disclaimer

This presentation contains some information from other sources, that TMB Bank Public Company Limited does not make any representations

regarding the use, validity, accuracy, or reliability of, or the results of the use of information, data but not limited to, all text, and images (“the Content”)

on this presentation. Some content may contain forward looking statements, that based on management’s view upon the information currently

available to us. These statement are subject to certain risks and uncertainties that could cause the actual results materially differed from what had been

previously stated. The materials in this presentation shall not, and are not intended to, constitute or contain an offer to sell or the solicitation of an offer to buy, any securities of TMB Bank Public Company Limited.