TMB BANK PUBLIC COMPANY LIMITED
Previous company name
Thai Military Bank Public Company Limited
Name change date
TMB Bank Public Company Limited is a commercial bank in Thailand which provides commercial banking, off-shore banking, investment banking, private trust fund management and provident fund management, securities trading and underwriting of debt securities and mutual fund transfer.
TMB Bank was incorporated as “The Thai Military Bank, Ltd.” in October 1956 with a registered capital of 10,000,000 Baht and 100,000 shares at a par value of 100 Baht per share. The bank was established to pool widely dispersed all the military funds outside the country’s budget at the time as well as to provide financial services as an added benefit to military personnel and their families. The majority of the shareholders were service men both on active duty, those on the inactive list as well as other military units. The initial 4,982 shareholders of the Thai Military Bank made it the first Thai commercial bank to have a large and widely distributed shareholder base at its inauguration.
For more than 50 years of operation, the bank has more than 540 branches across Bangkok and in the provinces of Thailand. Its vision is to be a leading financial service provider with excellence in universal banking capabilities, fostering strong partnerships with customers and focusing in consumers and SME businesses.
Description and history
The Company is provides commercial banking, investment banking, mutual fund transfer, provident fund management and personal trust fund management through its domestic and foreign branches in Hong Kong, Vietnam and Laos. The Group has a network of 367 branches worldwide.
Historical Background of Thai Military Bank Pcl.
The Thai Military Bank Public Company Limited was the brainchild of the late Field Marshal Sarisdi Dhanarajata, once an all powerful prime minister and top military leader of Thailand. The concept was to consolidate various off-budget funds managed separately by military units without any central control procedure. The concept called for the establishment of a bank to exclusively keep the armed forces funds in one place for better management and control. Apart from being a central financial institution for military units in off-budget affairs, this bank would operate to exclusively provide financial services to military units and their personnel. Family members of military personnel can also seek financial services from the bank.
The plan was submitted to the Cabinet for consideration and its backing as all branches of the armed forces would play their parts in the bank’s establishment. Approved by the Cabinet, the plan’s initial step of registering the bank’s articles of association was done on Oct. 5, 1956 to give birth to the unique concept known to the public as The Thai Military Bank Ltd. Initial registered capital was at Bht 10 million divided into 100,000 shares at a par value of Bht 10 each. TMB’s founding shareholders at a total of 4,982 included armed forces units and individuals who were active and retired military personnel. Indeed, TMB at its beginning had the largest shareholders among the local banks.
Important Changes and Developments
TMB started its operations on Nov. 8, 1957 at the Mansion No. 2, Rajadamnern Avenue in the inner city of Bangkok with its initiator, Field Marshal Sarisdi Dhanarajata, as the founding Chairman of the Board and Mr. Chote Guna-Kasem, as its first General Manager. The bank went into its banking business with an initial staff of 26.
TMB was, in fact, established under the provisions of the Commercial Banking Act B.E. 1945 but its formation and business objectives at the beginning were strictly defined and limited in scope, for example:
1. No other people outside the military services were allowed as the bank’s shareholders.
2. Deposits were to be taken exclusively from military personnel and their family members.
3. The bank’s main objective was to provide financial services to various units of the armed forces as well as being a place where military personnel could depend on if they needed financial assistance.
During its first 7 years between 1957 and 1963, TMB made very little progress out of its narrowly defined business objectives aiming to serve only military units and their personnel. Ironically, it managed to open its first branch office in Bangkok at Rajprasong, a newly developed business area which, some years later, turned into a prime business district.
From 1964 to 1973, TMB widened its operations by going for business with the private sector in general, serving both corporate and private clients. This significant policy change was in response to the launching of the government’s first economic and social development plan in which strong participation of the private sector in its far-reaching development activities was a very important factor. As a commercial bank, TMB came to realize that it could do more to support the government’s national development effort by providing its commercial banking services to the public as far and wide as possible.
By 1973, TMB completely turned itself into a commercial bank that operated on the same basis as other commercial banks but still catered to the armed forces and their personnel as usual. Public image of TMB was now redefined to suit the circumstances. Its slogan now read ‘Thai Military Bank?Serving the People’
In 1978, the bank moved from its rented head office on the Rajdamnoen Avenue to its own 16-storied building at Phyathai and Sri Ayudhya Intersection. The building looked modern and quite tall at the time. It served as the bank’s headquarters for nearly 15 years.
It was 1982 that brought some landmark events and changes in its operations to TMB. The most auspicious event for the bank was the gracious granting of the Royal Appointment by His Majesty the King. This gave TMB the royal permission to display the Royal Garuda, the emblem of Thailand’s monarchy, as a royally accredited bank at its head office and all branches. The bank, during the year, increased its share capital tenfold for the first time from Bht 10 million to Bht 100 million and started its computerization process in its operations. This move toward innovative banking led to its success in offering the public with full-time online deposit account transactions between the head office and branches in Bangkok in 1983. The system was, in 1985, developed to fully cover the bank’s domestic branch network, by now, operating extensively around the country.
As the bank’s business grew wider in every banking direction as a full-service commercial bank competing with other local banks in all market segments, recapitalization had been conducted to meet the regulatory requirements 4 more times.
In 1983, the bank’s capital was raised for the second time from Bht 100 million to Bht 500 million and on 23 Dec. the bank became a listed company in the Stock Exchange of Thailand (SET). The year 1985 was quite significant for TMB, as its capital was raised twice from Bht 500 million to Bht 800 and, then, to Bht 1,000 million. Two years later,
In 1987, the bank’s capital rose again to Bht 1,500 million. The bank also decided to venture abroad by setting up TMB Finance (HK) Co., Ltd. in Hong Kong. Later, the company’s status was changed to operate as TMB’s representative office in Hong Kong.
In 1989, the bank–in response to the government’s policy in favor of promoting cross-border private investment in Indochina, the so-called Changing-Battle-Zone-to-Trade-Zone policy of the late prime minister Gen. Chatichai Choonhawan–set up its representative office in Vientiane, the capital of Laos PDR. In 1990, another rep office was set up also in Ho Chi Minh City, Vietnam.
In 1992, the bank’s representative office in Hong Kong was upgraded to its full branch status.
In 1993, the bank moved its Bangkok head office again for the second time to its own newly-built modernistic glass-and-concrete 35-storied high-tech building, on Phahonyothin Road, opposite the Chatuchak Market. The move gave TMB its brand new image as a modern full-service bank ready to serve competitively Thailand’s business communities and the public in general everywhere. During the same year, the bank upgraded its representatives in Ho Chi Minh City and Vientiane to their full branch status.
In 1994, the bank decided to register its status as a full-fledged public company to comply with the Public Company Act and set up its branch in the Cayman Islands.
In 1995, the bank’s allowance for doubtful debts for its financial period ending on June 30,1995 was fully set aside to meet the 100% of the minimum regulatory requirement. The bank during the year was licensed to operate its representative offices in Beijing and He Fei in August and September respectively.
From 1993 to 1995, the Bank reinvented itself by adopting a policy with a focus on total quality management. Its ‘Towards a Quality Bank’ theme reflected TMB’s commitments to improve the quality of its services to match those of the leading local banks. The strategy for the bank’s quality management emphasized the adoption of Total Quality Service (TGS) programs such as the 5C program QC program, Mini QC program and problem-solving exercises and other activities in which teamwork and systematic approaches were brought into focus. The results achieved had been highly satisfactory as performance efficiency across the bank was evidently on the increase and projects had been finished as scheduled.
In 1996, the progress made by the TMB can be summed up as follows:
– Beijing and He Fei representatives offices started their operations in January.
– To comply with SET’s corporate good governance policy, the bank’s high-level audit committee was formed in May 1998. The committee composed of independent directors and assisted by highly respected professionals from the outside. The committee’s responsibilities were to assure that internal audit and control are in place while the performance of the bank’s management must always reflect transparency, integrity and credibility in every manner while effectiveness and quality are to be found in all of the bank’s products and services.
– In the middle of 1998, the bank underwent a far-reaching reorganization to cope with the fast-changing economic environment and new regulatory requirements. Two new departments, Corporate Credit Analysis Dept. and Loan Review Dept., were set up to deal with the bank’s non-performing loans. The bank, during the year, set up its subsidiary known as TMB Property Development Co., Ltd.
In 1999, the bank added the third unit to its group of departments to work on credit quality problem at provincial branches as non-performing loan level was rising.
The progress of the bank achieved in 2000 can be summed up as follows:
-The bank hired two foreign consultants; Boston Consultant Group (BCG) to give advice of retail banking and A.T. Kearney for risk management.
-The bank opted for organizational changes in two separate moves, one on February 1, 2000 merging some departments and the other on September 1, renaming some departments and setting up new departments.
– On July 1, 2000, the bank’s new president, Mr. Somchai Sakulsurarat replaced Dr. Thanong Bidaya who resigned from his CEO post but remained a member of the Board.
In 2001, significant changes were:
– Some changes in TMB’s management and operations took place, including the setting up of a new Marketing Department. In addition, the bank separated its credit analysis procedure from credit marketing activities with two top-level executives separately in change.
– TMB’s corporate identity symbol was highlighted with a red, white and blue background for stronger impact.
– Operating systems at all branches were upgraded to become more modern in its service to customers.
– Opening of 15 new branches while closing of 8 unproductive branches took place.
– A new concept of ‘Family Branch’ was introduced at Rungsit-Si Mum Muang Market.
– Hiring of ALLTELL to give advice on computerized service restructuring.
– Hiring of CSN as consultant on human resources management effective as of October 2001.
The bank has introduced its new credit authorization to systematically solve its NPL problem. Working groups were set up to expedite the bank’s activities in debt restructuring aiming for better results.
On July 6 2004 ,TMB decided to merge with DBS Thai Danu Bank PCL(DTDB) .
On November 3 2004 ,TMB decided to merge with The Industrial Finance Corporation of Thailand(IFCT)
Thai Military Bank Public Company Limited has changed its name to TMB Bank Public Company Limited and has already completed the legal process for changing its name.
Therefore,effective from May 19,2005 onwards, the securities name in the trading system will be changed as follows:
Full name:Thai Military Bank Public Company Limited
Full Name:TMB Bank Public Company Limited
Incorporated as “The Thai Military Bank, Ltd.” with a registered capital of 10,000,000 Baht and 100,000 shares at a par value of 100 Baht per share
Commercial bank which provides commercial banking, off-shore banking, investment banking, private trust fund management and provident fund management, securities trading and underwriting of debt securities and mutual fund transfer
ADVANCED INFO SERVICE PCL via its funds
KPMG PHOOMCHAI AUDIT LTD
US SIC Code
Phahon Yothin Road, 3000 – Chatuchak
City province or state postal code
Phone: 66 (02) 299 11 11
Fax: 66 (02) 273 71 21
Country address: THAILAND
Website url: www.tmb.co.th