Message From Board of Directors

In 2024, the overall Thai economy grew by 2.5 percent, up from 2.0 percent in the previous year, yet below initial projections. Similar to the previous year, growth remained fragmented, primarily driven by the ongoing recovery of the tourism sector. Concurrently, exports increased year-over-year due to heightened demand from trading partners, coupled with expanded government spending from economic stimulus and budget disbursements. However, high household debt levels pressured consumers pending, while structural issues hampered competitiveness, leading to a contraction in private investment. With the general inflation rate remaining low in 2024, the Monetary Policy Committee cut the policy interest rate by 0.25 percentage points in October 2024, from 2.50percent to 2.25 percent per annum. This move sought to alleviate the household debt burden and align the rate with the economic outlook and target inflation, while mitigating near-term uncertainties.

Given the 2024 economic conditions, with lower-than-expected growth and uneven expansion, Thanachart Group prioritized the stability of its member companies and continued to operate with prudent caution, building upon the previous year's practices. Consequently, the Company and its subsidiaries reported net profit attributable to the Company of 6,646 million baht, a 0.65 percent increase from the previous year's net profit of 6,603 million baht. This increase was primarily driven by the growth in profit share from investments in associated companies, which rose by 19.34 percent, reflecting the improved performance of associated companies such as TMB Thanachart Bank and MBK following the COVID-19 crisis. However, net interest income decreased due to a reduction in hire purchase loans at Ratchathani Leasing, resulting from stricter lending policies and a slowdown in the truck market. Additionally, defaults on securities margin loans and closures of block trade transactions contributed to the decline. Overall, the 2024performance was satisfactory, considering the external factors affecting the group's operations, particularly the insurance business, which achieved total gross written premiums exceeding 10 billion baht for the second on seductive year, and the secured lending business, which continued to perform well and exceed its lending targets.

Looking ahead to 2025, the Thai economy will continue to face pressures from both external and internal factors, including the policies of major economies, the slowdown of trading partner economies, geopolitical conflicts, and household debt problems. These factors may result in a slower economic growth rate and continued fragmented growth, potentially impacting the business operations of Thanachart Group's member companies and associated companies. Therefore, in Thanachart Group's business operations for 2025, the Board of Directors will continue to emphasize the stability of the subsidiaries, operate with prudence, pursue gradual growth, and seek investment opportunities in other potential businesses to align with current economic uncertainties. However, with the future performance showing signs of improvement, the Board of Directors adopted a resolution to pay an interim dividend of 1.25baht per share, an increase from the previous year’s interim dividend of 1.20 baht per share, and proposed that shareholders approve a second dividend payment of 2.05 baht per share, bringing the total dividend to3.30 baht per share, representing 52.07 percent of the net profit attributable to the Company, an increase from the previous year's 3.20 baht per share.

In view of the fact that the Company is a major shareholder of Thanachart Securities Public Company Limited ("Thanachart Securities"), the Board of Directors has resolved to propose to the 2025 Annual General Meeting of Shareholders for approval the Company's sale of all Thanachart Securities shares to TMB Thanachart Bank Public Company Limited ("TMB Thanachart Bank"). This is based on the belief that having a large commercial bank as a major shareholder will strengthen Thanachart Securities' financial stability and business network, benefiting employees, customers, and all stakeholders. Notably, the Company will continue to be an indirect shareholder of Thanachart Securities through its significant shareholding in TMB Thanachart Bank, holding approximately 25 percent. The transaction will be executed upon approval by the shareholders' meetings of both contracting parties and TMB Thanachart Bank's receipt of authorization from the relevant regulatory agencies.

The Board of Directors has overseen the business operations and activities, continuously emphasizing good corporate governance practices, leading to stable growth and consistently generating good returns for shareholders. In 2024, the Board of Directors continued to prioritize information technology security and sustainability and consistently monitored new technological developments. Furthermore, through various committees and departments within the Company and Thanachart Group, the Board emphasized the development of sustainability practices in environmental, social, and governance (ESG) dimensions. This is done in line with the guidelines provided by the Stock Exchange of Thailand and related organizations to promote sustainability practices. Employees are encouraged to gain knowledge about ESG and engage in resource reduction, social and environmental care, with concrete goals and plans appropriate to the business operations of Thanachart Group. In 2024, the Company and the Group's member companies received various awards, as detailed in this report. Additionally, the Company was evaluated on sustainable stocks “SET ESG Ratings” by the Stock Exchange of Thailand, receiving a rating of “AA,” an upgrade from the previous year’s “A” rating, and being included in the list of sustainable stocks for the second consecutive year. This demonstrates significant progress in sustainable business development. Thanachart Group continues to prioritize the Thai Private Sector Collective Action Against Corruption (CAC), maintaining membership in this organization for over 10 years.

The Board of Directors will continue to diligently fulfill its responsibilities. We thank you for the trust and support of all shareholders and stakeholders. We are confident in the continued trust and support of our shareholders, stakeholders, and employees.