Mr. Boontuck Wungcharoen, Chief Executive Officer, TMB Bank, said TMB intends to reinforce its strength and leadership as one of Thailand’s leading banks by sustaining the momentum it gained from its 2009 successes. Last year, the Bank’s net profit grew by nearly 400% to 2,044 million baht as a result of restructuring and implementation of a bank-wide transformation program which included: organizational restructuring, development of branches towards service excellence, end-to-end processes revamp, Human Resources Transformation (2008-2009) and upgrading of risk management frameworks and policies. TMB’s brand image has also improved considerably as reflected in an independent survey whereby 80% of target groups have shown interest in using TMB services compared with only 31% in last May.
Mr. Boontuck unveiled the Bank’s 2010 business direction as the second stage of its five-year plan. TMB has laid down four key strategies namely: Growing with quality; enhancing operational efficiency; preempting and clearing NPLs; and delivering value-added products and services to customers, under-pinned by its focus to become an employer of choice.
Mr. Boontuck said in 2010 the Bank targets to achieve 15% income growth; boosting fee-based income by 20%; 17% deposit growth; and 10% growth in lending from last year. In lending facilities, the Bank targets a 20% increase in the SMEs segment, a 10% growth in the wholesale segment and between 7-8% in retail credits.
In 2010 the Bank aims to develop the quality of assets by stemming potential non-performing loans, in tandem with reducing existing NPLs. The target is to reduce its NPL ratio from 12.7% in 2009 to 9% or less through debt restructuring and auctioning NPLs as opportunities arise.
Mr. Boontuck said “TMB has a healthy capital base, with a Capital Adequacy Ratio (CAR) of 17.1%, up from 13.9% in 2008. From all the transformation we have conducted throughout last year, the Bank now stands on solid operational ground, ready to achieve business targets set for 2010, in line with economic forecasts that show improvement from last year.”
HR Transformation — Becoming a performance-based organization
Another key priority for TMB is to continue its Human Resources transformation that the Bank began the end of last year to become a performance based organization.
Mr. Boontuck also said that employees constitute the core of being a performance-based organization and are at the heart of our HR transformation. “TMB wants to have an environment that recognizes competency, rewards performance and provides robust opportunities for career development.”
The transformation to become a performance-based organization will include: organizational design, clarifying functional roles, benchmark compensation with market rate, job grading, aligning titles with functional roles and designing a total compensation package.
Mr. Boontuck concluded that “Upon completion of the HR Transformation program, the total compensation package for staff will be benchmarked with that of the market and individual competency. Variable Performance Bonus will be paid on the basis of the Bank’s overall performance and individual performance. In addition, employees will have enhanced opportunities for career development, expanding functional roles and taking on greater responsibilities. This will allow employees to maximize their potential at work and to increase their competency and performance.”
TMB Bank Public Company LimitedFounded on 8 November 1957, TMB Bank Pcl. operates a commercial banking business under a license granted by the Ministry of Finance, and with consent given by the Bank of Thailand. It also operates a securities business licensed by the Ministry of Finance and agreed to by the Securities Exchange Commission.
TMB aims to respond to the needs of its clients through its 486 branch network, 105 foreign exchange centers, 2,266 ATMs, as well as electronics banking systems. Its business encompasses commercial banking, offshore banking, investment banking, and other businesses as permitted by the regulatory authorities, including acting as an insurance agent for its alliance insurance companies.
Listed on the Stock Exchange of Thailand, TMB is the sixth largest bank, by total assets, in Thailand. As at 31 December 2009, its total assets are valued at THB 541,637 million.
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