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Viion and iion The Thai Credit Retail Bank Public Company Limited Thai Credit i paionate about roin our cutomer buine and improin cutomer lie by proidin uniue and innovative micro inancial erice Viion iion Core alue 1 2 Proide the bet Create a paionate inancial erice oraniation that T B to micro ement i proud o hat cutomer nationide e do Team Spirit Best Service C L 3 4 Leadership Credibility Create hareholder elp buildin alue and repect knolede and takeholder interet dicipline in R I inancial Literacy Result Oriented Integrity to all our cutomer The Thai Credit Retail Bank Public Company Limited 1 Financial Highlights Consolidated 2019 2018 Financial Position (Million Baht) Total Assets 56,494 50,034 Loans 50,916 44,770 Allowance for Doubtful Accounts 2,712 2,379 Non-Performing Loans (Net NPLs) 1,243 1,261 Non-Performing Loans (Gross NPLs) 2,490 2,552 Liabilities 49,491 43,757 Deposits 47,193 42,037 Equity 7,003 6,277 Statement of Profit and Loss (Million Baht) Interest Income 5,868 4,951 Interest Expenses 1,024 901 Net Interest Income 4,844 4,050 Non-Interest Income 293 184 Total Operating Income 5,137 4,234 Total Operating Expenses 2,995 2,416 Bad Debts, Doubtful Accounts and Impairment Loss 1,254 854 Income Tax 178 193 Net Profit 710 771 Financial Ratio Return on Average Assets (ROAA) (%) 1.35 1.62 Return on Average Equity (ROAE) (%) 10.87 13.20 Profit per Share (baht) 1.42 1.54 Non-Interest Expenses to Total Income (%) 58.30 57.06 Total Capital Fund to Risk Assets (%) 14.34 15.13 Total Tier 1 Capital Fund to Risk Assets (%) 13.30 14.08 Book Value (baht) 14.01 12.55 Loans to Deposit (%) 107.89 106.50 Net NPLs to Total Loans (%) 2.50 2.90 Gross NPLs to Total Loans (%) 4.89 5.70 LLR to NPLs (%) 109.50 94.06 Number of Branches* 516 316 *Including Lending Branch and Nano Kiosk 2 Annual Report 2019 The Thai Credit Retail Bank Public Company Limited 3 Our History Under the determination of offering financial products and services for small and micro business customers as well as promote business growth and improve the quality of life nationwide For more than a decade, the Thai Credit Retail Bank Public Company Limited has been standing alongside Thailand’s small and micro business customers with perseverance to ensure sustainable and strong business growth. The Bank gives small and micro business customers access to secure and equitable loan services. In addition, the Bank enhances knowledge potential and understanding of business operations for long-term sustainable growth. 4 Annual Report 2019 Throughout the Bank’s lifetime, from Thai Keha Credit Foncier Company Limited to Thai Credit’s official establishment as a commercial retail bank on January 18, 2007, Thai Credit has adhered to its mission of providing the best financial services to small and micro business customers nationwide. The Bank amplifies every customer’s financial knowledge and discipline, pioneers an organisation comprised of enthusiastic and proud individuals, and generates value for shareholders with regards to their best interests. Thai Credit’s vision is being passionate about growing our customers’ business and improving customers’ quality of life by providing unique micro financial services as well as creating financial products and constantly improving customer services. The Bank created history as the first financial institution to offer financial services, such as Nano and Micro Credit for retail businesses and micro SME loans, to small and micro business customers in Thailand. Today, Thai Credit Retail Bank Public Company Limited branches provide full-scale financial products and services both in Bangkok and its vicinity as well as in upcountry provinces. In addition, we have expanded our services in the form of lending branches for small and micro business customers to conveniently access our financial products and services from any region. Our commitment and determination is reflected by our successful business operations and our possession of the largest market share in the nano and micro finance market. Thai Credit’s rapid growth rate has earned rewards from the UK’s Global Banking & Finance Review magazine for three consecutive years in 2017–2019. Our honour and pride reiterates the recognition of a financial confidant to generate wealthy, stable, and sustainable growth for small and micro business customers. Thai Credit is ready to walk on the path towards becoming the “Best Micro Finance Bank” for small and micro business customers in line with our philosophy of “Everyone Matters” The Thai Credit Retail Bank Public Company Limited 5 Milestones The Path of Pride to Become the Best Micro Finance Bank 2012 Northstar Group, a private equity firm which managed more than 20 corporate groups in Southeast Asia and investment portfolios of 36.7 billion baht, acquired a 25% stake of Thai Credit. The acquisition strengthened the Bank financially and elevated the efficiency of the Bank’s management team, driving the Bank towards sustainable growth. 2013 Thai Credit announced a new vision to become “The Best Small Commercial Bank in Thailand.” In addition, the Bank strongly focused on enhancing service and product standards as a solution for small and micro business customers 2007 across the country. The Bank aims The Thai Credit Retail Bank to provide small and micro business Public Company Limited was customers nationwide access to funds officially authorised to operate as well as improve the quality of life of as a commercial retail bank the Thai people, an essential foundation on January 18, 2007. to strengthen the country. 2009 2014 The Bank’s strong ambition Thai Credit’s strong will to become the to become a genuine retail bank Best Small Commercial Bank in Thailand led to the acquisition of Thanaban led to the resolution of selling Thanaban Co., Ltd., a motorcycle financing Co., Ltd., a non-core business, to Group and loan business with the fourth Lease PCL. The sale paved way for largest market share in Bangkok Thai Credit to fully focus on the Bank’s and its vicinity at the time. policy and operational plans. 6 Annual Report 2019 2015 2019 Thai Credit made history when the Bank launched Thai Credit’s honour and pride lies in the Bank’s steady Nano Finance for small and micro business growth as the Bank was awarded the “Fastest Growing customers, offering opportunities for customers Retail Bank Thailand 2019” from the Global Banking & to access secure and equitable funds. The product Finance Review magazine for the third consecutive year is used to increase financial liquidity and ensure thanks to a net profit growth of 45%. strong business growth. Furthermore, the Bank increased operational efficiency 2016 and strengthened financially with its partnership with Olympus Capital Asia (OCA), an independent private The Bank signed a Memorandum of Understanding investment firm specialising in micro finance and SME (MOU) with 17 financial institutions on the second loans. OCA acquired the 25% stake in Thai Credit Retail phase of the “Micro Entrepreneurs” project. The Bank from Northstar Group. project assists small and micro business customers affected by the economic recession and increases Under the philosophy of “Everyone Matters” Thai Credit the chances of successful loan applications as well launched the first Thai Credit Retail Bank Learning Center, as reduce complications from informal loans. transforming the Bang Khen–Watcharaphon Lending Branch into a center for sustainable learning. Thai Credit 2017 can now host training programmes to develop financial Thai Credit Retail Bank recognises the importance skills, improve sales skills, or brainstorm ideas for business of promoting and endorsing sustainable business growth in the 4.0 era for small and micro business growth, improving the quality of life, customers to adopt and implement these ideas into and comprehending small and micro business their business model for long-term growth. customers. With the Bank’s commitment of becoming the best retail bank, Thai Credit initiated Corporate Social Responsibility campaigns such as the “Smart Micro Customer: Hardworking, Savings with Discipline” financial literacy training programme. The Bank also launched the warmly-welcomed “Nurturing the Apple from Under the Tree,” writing competition where young participants can win scholarships. Furthermore, Thai Credit was awarded the “Fastest Growing Retail Bank Thailand 2017” award from Global Banking & Finance Review, a leading financial and business magazine from the UK. The Bank won the award thanks to an outstanding net profit growth of over 100% for three consecutive years in 2014–2017. 2018 Thai Credit was awarded the “Fastest Growing Retail Bank Thailand 2018” award from the Global Banking & Finance Review for the second consecutive year thanks to a net profit growth of 63%. The Thai Credit Retail Bank Public Company Limited 7 Message from the Chairman > 2019 marks another successful year for The Thai Credit Retail Bank Public Company Limited, exceeding expectations in every aspect, especially in loan services. Mr. Samart Buranawatanachoke Chairman 2019 marks another successful year for The Thai Credit Retail Bank Public Company Limited, exceeding expectations in every aspect, especially in loan services. The Bank has been acknowledged and trusted by small and micro business customers for successfully providing nationwide access to secure and equitable funds. Furthermore, the Bank provided prompt, swift, and benevolent customer services while holding seminars for customers and non-customers, providing training programmes on commerce and finance for participants to successfully operate their business. The Bank granted scholarships to the customers’ children, providing opportunities for higher and better education. In addition, the Bank contributes to the public, carrying out activities to ameliorate the quality of life for communities in proximate distance with the Bank’s branches. 12 Annual Report 2019 This year, Thai Credit’s success was affirmed as the Fastest Growing Retail Bank Thai Credit success was Thailand for the third year in a row by the Global Banking & Finance Review, a leading affirmed as the Fastest magazine in the United Kingdom.