Message from Chairman

Image Chairman

Thai economy in 2017 grew 3.9 percent, which was higher than the growth rate of 3.3 percent in the previous year. This was mainly due to a number of key factors including exports and tourism which grew in line with the gradual, continuous recovery of the global economy. In addition, both private consumption and private investment improved. As a result, demand for commercial banks’ loans grew stronger, particularly in the second half of the year. On the other hand, deposits also grew in line with the loan growth.

Thanks to the favourable economic conditions and the implementation of the customer centric strategy which focused on becoming the main bank of choice to customers, TBANK and its subsidiaries registered positive growth in the past year, with the last quarter representing their twelfth consecutive quarter of growth. In this connection, the value of loans increased by 3.01 percent. The increase was mainly due to the growth of retail and SME loans, particularly the automobile hire purchase loans. Importantly, they were able to maintain the asset quality at an appropriate level. In particular, non-performing loans accounted for 2.30 percent, which was lower than the industrial average. Total income of TBANK also improved as it succeeded in controlling its operating expenses. As a result, net profit of TBANK and its subsidiaries grew positively in a continuous manner. In addition, TBANK’s capital adequacy ratio reached 18.94 percent, which was among the top of the industry. Importantly, TBANK was able to maintain a liquidity coverage ratio (LCR) of higher than 100 percent in line with the Basel III standard, which was higher than the minimum requirement imposed by the Bank of Thailand.

The strong performance of TBANK and its subsidiaries caused the profit of Thanachart Group to grow to 14,341 million baht from 12,611 million baht in the previous year, representing an increase of 13.72 percent. In particular, the profit attributable to the Company increased to 7,001 million baht from 6,013 million baht in the previous year, representing an increase of 16.43 percent, with the earnings per share being 6.01 baht.

Moreover, the year 2017 represents a successful year for members of Thanachart Group as they won numerous awards. Among others, these include Marketeer No.1 Brand Thailand 2016-2017 Awards in the categories of Auto Hire Purchase Loans and Auto Re-Finance respectively, Auto Loan Product of the Year Award, Best Securities Company Award in the category of Retail Investors, Outstanding Derivatives House Award, Outstanding Deal of the Year Award, Best Asset Management Company Award, Outstanding Asset Management Company Award, and Top Non-Life Insurance Company with Outstanding Management Award for 2016. The related details of various awards received are given in this Annual Report. These awards reflect the Group’s dedication and commitment to business operations. Noteworthy is the fact that the developments in the Group’s services and products are well received by various organizations.

In 2018, the Thai economy is expected to continue growing, mainly due to public expenditure on infrastructure projects, tourism growth, and recovery of private sector confidence. However, competitions in debt mobilization and lending have become more intense in line with the economic growth. Meanwhile, explosion of digital services is also being witnessed. This is in line with the changes in consumers’ financial behaviour as well as the public sector’s strategy that promotes electronic payment systems including PromptPay, QR code payment systems, as well as digital identification (ID) systems. Fully recognizing the afore-mentioned, the Board of Directors has adopted a policy aiming at promoting improvements and developments in all areas. The objective is to enhance competitiveness in Thanachart Group’s main businesses, which will result in sustainable business growth. Emphasis will be placed on streamlining work processes in order to enhance customer experience. As well, emphasis is placed on continuous investment and development in information technology systems in order to make it easy, convenient and safe for customers to execute financial transactions through Thanachart Group’s digital banking systems. The Group also focuses on developing financial innovations that meet customer needs in the digital age in relation to their transaction execution. The Board of Directors is confident that Thanachart Group can maintain stable position with performance continuing to grow stronger in the future. As a result, the Board adopted a resolution to increase the interim dividend payment to 0.90 baht per share in 2017 from 0.80 baht per share in 2016. Moreover, the Board proposes that shareholders approve an additional dividend payment of 1.30 baht per share. As a result, the total dividend payment made for 2017 amounts to 2.20 baht per share, up from 2.00 baht per share in the previous year. This represents a payout ratio of 36.61 percent, based on the performance attributable to the Company in the consolidated financial statements.

As regards corporate governance to which the Board of Directors has always attached great importance, the Board regularly reviews the corporate governance policy, anti-corruption policy as well as the related measures and regulations. The Board communicates them to all employees, requiring that they are adhered to and implemented in a continuous manner. In 2017, the Company was ranked among the 5-star listed companies with excellent CG Scoring, based on the survey under the Corporate Governance Report of Thai Listed Companies Project. In this connection, the Company received a full score of 100 points for the organization of its annual general meeting of shareholders from the Thai Institute of Directors Association (IOD). Importantly, the Company also participates in campaigns for anti-corruption. In this connection, all members of Thanachart Group have become members of Thailand’s Private Sector Collective Action Coalition against Corruption (CAC) since 2014. Moreover, the Company attaches great importance to social responsibility and environmental protection, energy conservation and conscious use of natural resources as well as sharing knowledge of personal finance and proper ways to saving money. The objective is to promote financial stability in the long term.

The Board of Directors would like to express our appreciation and thanks to shareholders, customers, trading partners and each group of stakeholders for your continuous trust and support to Thanachart Group’s business operations as well as the execution of the Board’s duties. As well, we would like to thank all executives and employees of Thanachart Group for your complete dedication to perform duties to the best of your abilities and your continuous contribution to Thanachart Group’s success. Last but not least, we believe that, with the support of all the parties concerned, Thanachart Group will achieve strong growth and become increasingly more successful in a sustainable manner in the future.

On behalf of the Board of Directors,

Sign Chairman

(Mr. Banterng Tantivit)


Sign Chairman

(Mr. Suphadej Poonpipat)

Vice Chairman and Chief Executive Officer