TMB-2001.12.31-Annualreport.Pdf
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2001 ANNl'A..I REPORI THAI MILITARY BANK PCL FINANCIAL HIGHLIGHTS Amounts M1llton Bahl Consolidated F1nanc1al Statements DECEMBER DECEMBER DECEMBER DECEMBER DECEMBER 31 2001 31 2000 31 2001 31 2000 31 1999 FINANCIAL STATEMENT INFORMATION TOT AL ASSETS 366,670 336,557 369,062 336,655 335,068 TOTAL LIABILITIES 353,051 323,524 355,443 323,622 326,143 SHAREHOLDERS' EQUITY 13,619 13,033 13,619 13,033 8,925 INTEREST AND DIVIDEND INCOME 16,059 14,888 15,850 14,890 19,217 INTEREST EXPENSES 11,501 12,942 11,501 12,943 17,313 NET INTEREST AND DIVIDEND INCOME 4,558 1,946 4,349 1,947 1,904 NON- INTEREST INCOME 3,578 2,710 3,491 2,707 2,260 NON- INTEREST EXPENSES 7,249 6,470 7,122 6,467 6,642 TOTAL INCOME 19,637 17,598 19,341 17,597 21,477 NET PROFIT (LOSS) 655 (25,064) 655 (25,064) (11,615) FINANCIAL RATIOS NET PROFIT (LOSS) TO TOTAL INCOME RATIO(%) 3 34 (142 43) 3 39 (142 43) (54 08) RETURN ON EQUITY(%) 4 92 (192 31) 4 92 (228 29) (77 74) RETURN ON ASSETS(%) 019 (7 45) 0 19 (7 46) (3 36) BASIC EARNINGS (LOSS) PER SHARE (BAHT) 0 33 (15 35) 0 33 (15 35) (11 45) DIVIDEND PER SHARE (BAHT) PAYOUT RATIO(%) BOOK VALUE PER SHARE (BAHT) 340 3 26 3 40 3 26 8 79 CAPITAL ADEQUACY RA TIO (%) 12 67 12 95 12 53 12 94 9 87 * Remark As 2000 was the first year for balance sheet consolldat1on, financial ratios were not average figures CONTENTS F1nanc1al HIghl1ghts 1 Message from the Chairman 3 Results of Operations 8 A Summary of Economic Conditions In 2001 and Trends In 2002 15 Organization Chart 27 Board of Directors 28 Auditors Report 30 F1nanc1al Stat1st1cs and Results of Operations 104 Results of Operations In 2001 106 Add1t1onal Information 107 Board of Directors, Board of Executive Directors and Audit Committee 132 Executive Officers 133 Branches 135 Currency Exchange Service Offices 142 International Business Centers and Overseas L Branches 143 Main Correspondent Banks 144 wwwtmb co th 1558 Inquiry Service Unl1m1ted TMB Call Center saving time and money Just call 1558 2001 ANNUAL REPORT THAI MILITARY BANK PCL MESSAGE FROM THE CHAIRMAN To the Shareholders, New units were also set up w1th1n certain function lines One new unit 1s During 2001, Thai Military Bank Pel responsible for f1nanc1al product and continued its commitment to improve service development and delivery and develop its organization and channel development The aim 1s to operations m all areas, focusing keep the bank's service quality and particularly on customer service, efficiency at a high level Other new marketing and management The bank units included one that takes aimed firstly to be fully prepared against respons1b1l1ty in credit risk and capital compet1t1on coming from other f1nanc1al market risk management Another 1s the and non-financial 1nst1tut1ons, which Compliance Office, which 1s responsible seemed increasingly 1n evidence And for across-the-bank oversight on secondly, to ensure that the bank can compliance practices as well as finally make profit again while economic exposure to credit risk and money conditions 1n general were still not market nsk favorable enough despite the stimulus package launched by the government Human Resources Development Recognizing that human Important development and resources play every important role to improvement programs earned out deliver the results the bank aims for, the dunng the year were as follows bank 1n 2001 engaged two renowned human resources development Organ1zat1on Restructuring consultants, CSN and Hay Group, to The bank has 1rnt1ated a conduct programs that involved JOb program to restructure its branch valuation, salary scale readJustment and operations to place more focus on making Job performance appraisal The Bank all branch offices more market1ng-onented also in1t1ated its first early retirement To support this concept, three types of program planned to introduce during the period from March to June 2002 business centers to handle three Such act1v1t1es would ensure that the different fields of act1v1t1es-domest1c bank's organization and management banking services, international services styles are at par with international and branch support -were set up standards and 1n sync with the bank's The running of these business centers marketing strategies has been under control of regional manager or business district manager Technological Development as the case may be Each business The bank continued to upgrade center 1s responsible for supporting from its technolog1cal standards to match well 10 to 30 branches with competitors 1n terms of service capab1l1t1es, particularly in core banking services ALL TELL system has been www tmb co th 3 2001 ANNUAL REPORT THAI MILITARY BANK PCL MESSAGE FROM THE CHAIRMAN selected for data processing and Easy Installment Home Loan delivery of core banking services This credit service was conceived specially to help Other important development TMB's customers who are In programs In technology included need of financing on soft and Credit Scoring System easy terms for buying of Development This involves 1rnt1al credit resIdent1al unit or home analysis based on computer program appliances, as well as to meet Testing of the system Is being done their expenses on refurb1shIng Real time applIcat1on Is expected to start or home improvement plan In 2002 Welfare and Housing Loan for Treasury Management System PEA A housing loan created OPICS program was acquired and specially for staff of ProvIncIal installed in Jan 2001 Partial applIcatIon Electricity Authority of the program has been started Internet On-line Loan This Trade Finance System The housing loan service can be system known as EXIM BlLL was acquired through the bank's acquired to replace the outdated BANK on-line service known as TMB TRADE system The new system Is now Direct Internet Banking being implemented Post-Graduate Study Loan This Branch Retail Banking System special service aims to support Installation of this system and all support those who are in pursuit of equipment at all branch offices was higher education at masters' completely done In June 2001 Every and doctorate degree levels In TMB branch now features a self-service both public and private box for instant depos1tIng of checks urnversItIes m the country automatic telephone answering Home-Lover Loan This machine, ATM, and passbook updating specially designed housing loan machine with cooperation from contractors and suppliers in New Products alliance with the bank Is During 2001, the bank launched available to customers in its 1 O new f1nancIal services as follows complete package and covers TMB Senior Accounts This all costs from home building to service Is mainly for depositors furnishing and appliances at 55 years of age or above who buying as well as refurb1sh1ng prepare to retire or already and repair work of any kind retired from their Jobs TMB-SME Loan This credit service Is to provide working capital to small and medium 4 2001 ANNUAL REPORT THAI MILITARY BANK PCL MESSAGE FROM THE CHAIRMAN enterprises in operations for at The bank during 2001 took a strong least 3 years Term loan and effort in building its income through short-term funding for domestic extension of business in several areas and international trade includes as follows O/D, P/C L/C, L/G DL/C, LBD, Etc Credit Serv1ces TMB-SBE Loan Thrs special The bank expanded its scope of loan 1s for small enterprises in credit services by introducing 4 new operations from 1-3 years up services, namely Easy Installment Home The service 1s available In term Loan, Home-Lover Loan, TMB/SME and loan and working capital TMB/SBE loans As a result, the total support for both domestic and loans at the end of 2001 (as reported 1n 1ntemat1onal trade including 0/0, C B 11) amounted to Bht 266,329 million P/C L/C, L/G DL/C, LBD, Etc after NPL transfers totaling Bht 34,700 Trade Finance A credit service mIll1on to TAMC and the Bank's aims at supporting trading firms, subsidiary, Phayatha1 Asset Management which are TMB's corporate Co , Ltd , Increas1ng by 2 8% over the clients both old and new end of 2000 This ,s far better than the Education lnst1tut1on Loan A whole banking system's lending multi-purpose loan service given performance which rn fact, retracted by specially to personnel of 2 4% in 2001 education 1nst1tut1ons, available for housing need, car buying or Deposits other purposes The bank In 2001 effectively mob1lIzed new deposits to maintain its Branch Operations lIqu1d1ty level at an appropriate level In 2001, the bank managed to while business development act1v1t1es open its new branch offices and continued as planned The bank close down certain branch offices focused mainly on taking low-cost as follows deposits, particularly savings deposits - 7 new branch offices were At the end of 2001, the bank's total opened at education 1nst1tut1ons deposits grew up Impress1vely by as well as government agencies 120% and state enterprises - 7 loss-ridden prov1nc1al Non-Performing Loans branch offices were closed The bank took a very serious down The bank, as a result, approach to work out its non-performing operated with a network of 366 loans The first step 1s to persuade the branch offices in total at the end customers to accept loan restructuring of 2001 or 1f possible settle their debts by asset www tmb co th 5 2001 ANNUAL REPORT 11W MIUTARY BANK PCL MESSAGE FROM THE CHAIRMAN transfer The bank dunng 2001 also took cutting where possible 1s to be a strong effort to dispose foreclosed implemented at once 1f not affect any properties through public auctioning Income-generatIng act1v1t1es and and direct sale promotion