Summary of Q&A Session from the 2Q23 Analyst Meeting

We would like to know about the additional investment plan in 2023.

Based on TCAP’s new visions, the Company’s investments will not be limited to only financial business. It also takes into consideration investments in other businesses with consistent growth performance, good corporate governance in the conduct of business, as well as appropriate dividend payments. The Company is currently in the process of studying and assessing these opportunities.

We would like to know about the Company’s dividend payment policy for 2023.

TCAP oversees and supports its subsidiaries and associated companies, aiming at enabling them to implement their strategies and generate profits in line with the established plans. This is to ensure that both the subsidiaries and associated companies can make dividend payments to TCAP in accordance with the targets. As a result, TCAP will have sufficient cash to make additional investments and pay dividends to its shareholders. In the past, the Company maintained the level of payment of dividends per share to shareholders, taking into consideration operating results and appropriate liquidity adequacy. In case the businesses grow well over the next 2-3 years, the Board of Directors will consider an increase of the dividend payment per share. In the meantime, the Company is in the process of considering the payment of dividends based on the performance for the first half of the year.

In view of the current economic situations, we would like to know about the trends related the loan loss provision and the risk of non-performing loans of Thanachart Plus.

T-Plus has more flexibility than banks in giving loans to customers in terms of withdrawals and loan repayments in alignment with borrowers’ business operations. On the part of T-Plus, in considering loans, the company primarily takes into consideration the repayment ability of borrowers and the collateral. In this connection, the collateral must be in good locations and has high liquidity. On the other hand, the loan to value to be given will not exceed 55-60 percent of the appraised value of the collateral. As currently there are no non-performing loans, there is no burden in making loan loss provision.

We would like to know about the situations in the second-hand car market and non-performing loans in the truck segment, as well as the non-bank supervision by the Bank of Thailand.

Amidst protracted economic challenges, the second-hand car market may suffer a slight slowdown. On the other hand, the truck market continues to face issues due to floods in the latter part of the previous year. In addition, government-related businesses experience delays in payments for goods during government transition. As a result, non-performing loans increase slightly. Meanwhile, as the number of cars repossessed increase, car prices decline and there are losses incurred from selling repossessed cars. However, the situation is still in control. In this connection, THANI has adjusted its debt collection methods and increased activities in relation to closer debt monitoring and collection.

As regards the Bank of Thailand’s non-bank supervision, no impact is expected. As THANI used to be a company under Thanachart Bank’s financial conglomerate in the past, it is well familiar with the Bank of Thailand’s supervision requirements. The non-bank supervision is, therefore, a good thing as it will raise the management quality of non-bank businesses.

We would like to know whether the insurance business in the second half of the year will continue to grow.

It is expected that TNI will continue to grow well in the second half of the year. In comparison, the company experienced a slightly slow growth in the second quarter of this year as it was a low season. Meanwhile, TNI has been expanding its distribution networks through dealers and brokers, instead of relying solely on the branch networks of TMBThanachart Bank (TTB). On the part of the TTB which is a major customer base, the bank has developed a staff training system which will enable it to offer TNI’s products more efficiently. As the fourth quarter will be a high season for hire purchase business, TNI is expected to achieve a total premium written of 12 billion baht for 2023, which represents growth in line with the established plan.