analyst meeting 1q07 - tisco · analyst meeting 1q07 23 april 2007 disclaimer: this presentation...
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Analyst Meeting 1Q07
23 April 2007
Disclaimer: This presentation material may contain forward-looking statements. These forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ from those in the forward looking statements as a result of various factors. TISCO Bank accepts no liability whatsoever with respect to the use of this document of its content.
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1Q07 Financial Highlights
(34.6)
(16.5)
(31.0)
37.6
(24.9)
(12.6)
(33.8)
(4.6)
68.7
25.5
%YOY
318
(214)
537
284
253
(899)
502
649
(849)
1,498
4Q06
11.9
(34.8)
(7.7)
(134.3)
134.8
(26.2)
(0.4)
16.5
9.4
12.5
%QOQ
356
(139)
495
(98)
593
(664)
500
756
(929)
1,686
1Q07
544
(167)
718
(71)
789
(759)
755
793
(551)
1,344
1Q06
(2,899)(1,464)Interest expense
1,545
(633)
2,202
222
1,980
(3,048)
2,222
2,806
5,705
2006
2,267PPOP
(2,893)Operating expense
2,057Non-interest income
3,103Net interest income
4,567Interest income
186Provisions
2,453Pre-tax profit
1,791Net profit
(635)Income tax
2005(Million Baht) Major drivers:• HP loan growth of 8.2% YTD despite slowdown auto car sale • Slightly declined cost of fund• Continued banking fee income growth• Lower operating expenses due to changing of accounting method on commission fee expenses to be deferred and amortized over the period• No impact from IAS 39 on provision
Drawback from:• Higher interest rate environment compared to 1Q06• Lower trading gain in 1Q07 compared to 1Q06• Lower brokerage fee due to unfavorable stock market• Full corporate tax rate
1Q0720062005
47.8
2.7
12.0
1.9
1.87
49.9
3.2
11.5
1.5
0.422.21Diluted EPS (Baht)
44.3Cost-to-income (%)
4.1Interest spread (%)
14.0ROAE (%)
2.5ROAA (%)
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Revenue Structure
Proprietary Trading10%
Investment Banking
0%
Asset Management Fee
6%
Brokerage Fee10%
Banking Fee16%
Interbank & MM - net4%
Wholesales Loans - net9%
Retail Loans - net45%
NII : Fee Income was 60% : 40%
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Non Interest Income
(33.8)
(64.1)
(100.0)
9.9
270.4
(1.1)
(37.4)
% YoY
502
57
0
195
1
79
170
4Q06
(0.4)
73.1
0.0
2.3
529.7
(1.9)
(29.7)
% QoQ
755
274
28
182
1
78
191
1Q06
0028SAM
500
99
200
5
77
120
1Q07
100.0
19.7
40.0
0.9
15.4
23.9
Breakdown (%)
455Trading Income
2,222
786
9
295
649
2006
Investment Banking Fee
Banking Business
Asset Management Fee
Total
Brokerage Fee
(Million Baht)
• Continued growth from banking fee income
• Improved investment banking business
• No fee income from SAM project
• No special trading gain as in 1Q06
• Start bancassurance business
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Operating Expenses
44.3% 47.8% 49.9%
2005 2006 1Q07
(26.2)
60.1
(0.9)
(71.5)
(2.6)
(6.1)
(26.3)
%QoQ
(12.6)
(10.2)
25.2
(48.7)
82.3
5.1
(10.0)
%YoY
100.0
22.0
0.3
10.5
4.9
16.9
44.7
Breakdown (%)
899
91
2
244
34
120
408
4Q06
664
146
2
70
33
112
301
1Q07
759
162
2
135
18
107
334
1Q06
3,048
542
8
728
102
452
1,216
2006
Other expenses
Directors’ remuneration
Fees and service expenses
Taxes and duties
Premises and equipment expenses
Operating Expenses
Personnel expenses
(Million Baht)
Cost to Income Ratio
OPEX decrease mainly due to Fees and Service Expenses and personnel expenses
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Asset Mix Liabilities Mix
0%10%20%30%40%50%
60%70%80%90%
100%
2006 1Q07
Other assets
Interbank & MM& RepoInvestment
Other RetailLoansHire Purchase
Corporate Loans
0%
20%
40%
60%
80%
100%
2006 1Q07
Other Liabilities
L-T Borrowings
Interbank
Deposits*
92%
8.55658,8516454,245Hire Purchase
1007215
(3)7
17
%
84,7815,7991,7181,0244,393
(2,794)5,823
14,574
2006
206.533,139Interbank & MM773.11415,000Repo Securities
105,0916,058
4324(2,808)
6,072
14,453
1Q07
1006
4(3)
6
14
%
24.0Total Assets4.5Other assets
(1.6)Investment0.5Allowance4.3Other Retail Loans
(0.8)Corporate Loans
% YTD(Million Baht)
100503
92
%
12,68272,099
3,292362
2,15766,288
2006
13,02292,069
3,4723,9933,044
81,560
1Q07
100443
89
%
2.7Total Equity27.7Total Liabilities
5.0Other Liabilities1,003.9L-T Borrowings
41.1Interbank & MM23.0Deposits*
% YTD(Million Baht)
84,781 72,099 105,091
*Deposits include short term borrowing
89%
92,069
14%
56%
17%
64%
Loans & Deposits
17%3%
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81.0
3,449
938
263
998
1,250
2006
4.6
20.9
13.1
1.8
8.6
%NPL
4.53,574TOTAL NPL
12.6251Retail-Housing
78.6
942
1,051
1,330
1Q07
19.0
1.8
9.2
%NPL
Other NPL
Coverage Ratio (%)
Retail-Hire Purchase
Corporate
NPL By Industry(Million Baht)
2,794 2,808
3,449 3,574
2006 1Q07
NPL Allowance
NPLs & Allowance (Million Baht)
Coverage Ratio & NPL
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• Duration gap narrowed to 0.67 year primarily resulted from the expansion of
deposits and local borrowings.
• Assets duration decreased as the
expansion of long-term hire purchase
loans is offset by increase in short-term
liquid assets.
• Liabilities duration increased owing to
an increase in long-term borrowings.
Meanwhile, the average days to maturity
of deposits and local borrowings
increased from 146 to 190 days.
1.30
1.18
0.400.51
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
Dec. 06 Mar. 07
Assets Liabilities
Interest Rate Risk
Current Profile
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(Remark: Penetration rate was accounted for only new car sales.)
Industry New Car Sales & TISCO Penetration Rate
703 682
82
193154165170
7.0%
9.1%10.1%
12.7%
18.1%
5.4%7.7%
2005 2006 1Q06 2Q06 3Q06 4Q06 Jan-Feb07
Total Car Sales Penetration Rate
Hire Purchase Business
(Thousand Units)
Motorcycle5%
Subsidiaries2%
Bank Branches
57%
Head Office36%
1Q07 Hire Purchase Breakdown
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Brokerage Business
982 1,0531,168
786
16,454 16,28120,916
11,800
2005 2006 1Q06 1Q07
TISCO turnover Market turnover
Average Daily Turnover*(Million Baht)
27% 37%40%
23%23% 26%
50% 40%34%
0%
20%
40%
60%
80%
100%
2005 2006 1Q07
RetailInvestors
LocalInstitution
ForeignInstitution
Customer Breakdown
*Source: www.sse.set
(Million Baht)
(27.5)%YTD
(25.4)%YTD
Market
TISCO
240,503 255,847
73,59148,749
3.0%3.2%
3.3%
2.8%
2005 2006 1Q06 1Q07Brokerage Value Market Share
Brokerage Value & Market Share
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82.1 84.788.9
62%62%62%
29%29%25%
9%9%13%
0
20
40
60
80
2005 2006 Mar 2007Provident Fund Private Fund Mutual Fund
(Billion Baht)
6.5 5.4
14.7 13.714.616.6
1.4 0.7
5.38 th
13.7 2 nd
17.0 2 nd
0.717 th
0
4
8
12
16
2005 2006 Feb 2007
TISCO Market Share Provident FundPrivate Fund Mutual Fund
1,574 1,630
1,260
24%25%28%
11% 9% 9%
61%66% 67%
0
500
1,000
1,500
2005 2006 Feb 2007
Provident Fund Private Fund Mutual Fund
Market NAV Asset Under Management(Billion Baht)
5.0% YTD
4.2% YTD
4.9% YTD
Total
Private Fund
Provident Fund
(Billion Baht)
Market Share (%)
Asset Management Business
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Investor Relations
TISCO Bank Public Company Limited48/2 TISCO Tower, North Sathorn RoadSilom, Bangrak, Bangkok 10500
Tel. +66-2-633-6868Fax. +66-2-633-6818
Email: [email protected]: www.tisco.co.th