Vision and Mission The Thai Credit Retail Bank Public Company Limited Vision Thai Credit is passionate about growing our customer’s business and improving customer’s life by providing unique and innovative micro financial services Mission Be the best financial service provider to our micro segment customers nationwide Help building knowledge and discipline in “Financial Literacy” to all our customers Create a passionate organisation that is proud of what we do Create shareholders’ value and respect stakeholders’ interest Core Value T C R B L I Team Spirit Credibility Result Oriented Best Service Leadership Integrity The Thai Credit Retail Bank Public Company Limited 2 Financial Highlight Loans Non-Performing Loans (Million Baht) (Million Baht) 50,000 3,000 102% 99% 94% 40,000 93% 2,000 44,770 94% 2,552 2,142 2018 2018 2017 30,000 39,498 Consolidated The Bank 1,000 34,284 1,514 20,000 Financial Position (Million Baht) 1,028 27,834 Total Assets 50,034 50,130 45,230 826 23,051 500 Loans 44,770 44,770 39,498 10,000 Allowance for Doubtful Accounts 2,379 2,379 1,983 - - Non-Performing Loans (Net NPLs) 1,218 1,218 979 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 Non-Performing Loans (Gross NPLs) 2,552 2,552 2,142 LLR / NPLs (%) Liabilities 43,757 43,853 39,728 Deposits 42,037 42,133 37,877 Total Capital Fund to Risk Assets Net Interest Margin (NIMs) Equity 6,277 6,277 5,502 Statement of Profit and Loss (Million Baht) 20% 10% Interest Income 4,951 4,951 3,952 16.42% 15.87% Interest Expenses 901 901 806 15.13% 8% 13.78% 15% 13.80% Net Interest Income 4,050 4,050 3,146 8.49% 6% 7.47% 15.32% Fee & Services Income, net 123 123 146 14.79% 10% 6.30% 14.08% Other Operating Income 61 61 62 12.98% 12.70% 4% Other Operating Expenses 2,416 2,415 1,999 5.48% 5% 4.58% Bad Debt, Doubtful Account and Impairment Loss 854 854 693 2% Income Tax 193 193 131 Net Profit 771 772 531 - - 20182017201620152014 20182017201620152014 Financial Ratio Return on Average Assets (ROAA) (%) 1.62 1.62 1.26 Tier 1 Tier 2 Return on Average Equity (ROAE) (%) 13.20 13.21 10.70 Net Profit Profit per Share (Baht) 1.54 1.54 1.11 (Million Baht) Non-Interest Expenses to Total Income (%) 57.06 57.06 59.60 800 Total Capital Fund to Risk Assets (%) 15.13 15.13 15.87 771 Total Tier 1 Capital Fund to Risk Assets (%) 14.08 14.08 14.79 600 Book Value (Baht) 12.55 12.55 11.00 531 Loans to Deposit (%) 106.50 106.26 104.28 400 Net NPLs to Total Loans (%) 2.88 2.88 2.66 Gross NPLs to Total Loans (%) 5.70 5.70 5.42 326 200 LLR to NPLs (%) 94.06 94.06 93.70 111 Number of Branches* 316 316 178 42 - Number of Employees 2,467 2,467 1,861 20182017201620152014 *Including Lending Branch and Nano Kiosk Annual Report 2018 3 Loans Non-Performing Loans (Million Baht) (Million Baht) 50,000 3,000 102% 99% 94% 40,000 93% 2,000 44,770 94% 2,552 2,142 30,000 39,498 1,000 34,284 1,514 20,000 1,028 27,834 826 23,051 500 10,000 - - 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 LLR / NPLs (%) Total Capital Fund to Risk Assets Net Interest Margin (NIMs) 20% 10% 16.42% 15.87% 15.13% 8% 13.78% 15% 13.80% 8.49% 6% 7.47% 15.32% 14.79% 10% 6.30% 14.08% 12.98% 12.70% 4% 5.48% 5% 4.58% 2% - - 20182017201620152014 20182017201620152014 Tier 1 Tier 2 Net Profit (Million Baht) 800 771 600 531 400 326 200 111 42 - 20182017201620152014 The Thai Credit Retail Bank Public Company Limited 4 Our History Striving to be the Best Micro Bank The Bank holds the biggest market share for nano and micro finance. With such continuous outstanding growth, the Bank has been awarded “Thailand’s Fastest Growing Retail Bank” for Year 2017 and Year 2018 by UK’s Global Banking & Finance Review Magazine. As distance tests a horse’s strength, so does time reveal a person’s real character. It was a decennium that the Thai Credit Retail Bank Public Company Limited has committed to be an alternative bank of choice to offer access to the financial products and services for small and micro business owners nationwide. Despite starting off as the newly-established small commercial retail bank, the Bank has been able to thrive over the past 10 years with speed, strength and sustainability, together with a strong focus on developing the financial products that can support the micro business customers who are the key foundation of the country’s economy. The Bank always ensures friendly, flexible and sincere services especially loan services such as loan for micro business, to fulfil the determined vision stating “Thai Credit is passionate about growing our customer’s business and improving customer’s life by providing unique and innovative micro financial services”. The first chapter of The Thai Credit Retail Bank Public Company Limited started with more than 3 decades of financial service providing business under the name of Thai Keha Credit Foncier Co., Ltd. Later on, the Bank applied and received its license to establish a commercial retail bank and has conducted its business under the name of “The Thai Credit Retail Bank Public Company Limited” since January 18, 2007. For over a decade, the Bank has been operating under its vision and mission to stand beside small and micro business owners and support them to initiate or expand their businesses which is an important fundamental to the nation’s economic stability. The Bank succeeded in creating the new history by being the first bank who offers financial services to the small business and micro segments in Thailand. In the meantime, the Bank holds the biggest market share for nano and micro finance. With such continuous outstanding growth, the Bank has been awarded “Thailand’s Fastest Growing Retail Bank” for Year 2017 and Year 2018 by UK’s Global Banking & Finance Review Magazine. This international recognition was Thai Credit’s pride for being the best retail bank for small and micro business customers. The past achievements confirmed that the Bank keeps its pledge as a partner who develops full financial services for easy access to micro business customers in Bangkok Metropolitan and other provinces across the regions, all for the mutual growth in stability, prosperity and sustainability. Annual Report 2018 5 Milestones Driven to Success 2007 • The Thai Credit Retail Bank Public Company Limited was officially authorised by the Ministry of Finance to operate as a commercial retail bank on January 18, 2007 2009 2012 2013 • Thai Credit acquired Thanaban Co., Ltd., • Northstar Group, the private equity • The Bank adopted a new vision to the motorcycle financing and loan firm which managed the investment become “The Best Small Bank in business whose market share size portfolio of 36.7 billion baht for over Thailand” for small business and micro was the fourth largest in Bangkok 20 corporate groups in Southeast Asia, segments in Thailand who are the Metropolitan area at that time, to affirm had owned the 25% share of the Bank. improtant base for the country’s our intention of being trustworthy The firm also restructured the Bank’s economic growth retail bank management team in order to make it a professional organisation that is focused on sustainable growth 2014 2015 2016 • The Bank sold Thanaban Co., Ltd., to • Thai Credit turned a new page in its • Thai Credit signed a memorandum of Group Lease PCL. since it was not a history with Nano Finance for micro understanding with other 17 financial core business and the Bank wanted to segment. It is the first commercial bank institutions to support customers who fully focus on small businesses per the who bridges such service for small were affected by economic slowdown, Bank’s policy and operational plan business and micro segment customers and increase opportunity to get loan to access easily approved and reduce illegal loan sharks 2017 2018 • To confirm the Bank’s status of being Thai Credit was awarded the Fastest • Thai Credit was awarded the Fastest a truly retail bank for small business Growing Retail Bank Thailand 2017 from Growing Retail Bank Thailand 2018 and micro segment, the Bank arranged Global Banking & Finance Review, the from Global Banking & Finance Review a financial literacy training called “Smart leading financial and business magazine for the second consecutive year with Micro Customer: Hardworking, Savings from the UK due to the outstanding net the net profit growth of more than 60% with Discipline” the joint programme profit growth of over 100% for three for 2017 between Thai Credit and Thai Credit consecutive years in 2014 - 2016 Guarantee Corporation (TCG). This programme aimed to improve our prospective customers’ quality of living and business manner in order to excel their growth together with us The Thai Credit Retail Bank Public Company Limited 12 Message from the Chairman Year 2018 was another successful year for The Thai Credit Retail Bank Public Company Limited, it has been able to grow in all aspects i.e. loans, mutual funds, deposits and profits Annual Report 2018 13 Year 2018 was another successful year for The Thai Credit Retail Bank Public Company Limited, as the Bank have been awarded the Fastest Growing Retail Bank Thailand by the Global Banking & Finance Review, a leading magazine in the United Kingdom for the second year in a row.