Competition and Market Outlook
In the past 2 - 3 years, the used car market segment was considered as a new business, in which had caught
the interests of many respected financial institutions in expanding its current market shares. The competition of this market had increased upon the decrease in interest rates and down payments. However, the used car hire purchase and special vehicles requires experiences and expertise in operating the business, in which the operation is different compared to the new vehicle hire purchase. The Company
had been operating in the hire purchase business since
its establishment and including the company staffs with
vast experiences in the used vehicle market for personal, commercial use and special vehicles. From the aforementioned, the Company was able retain and expand its business accordingly to its budget. Products and Services Management Sources of fund
The source of TBANK’s and its subsidiaries’ fund comprises of issued and paid-up capital, whereby in 2012, was in the amount of THB 55,137 million, in which the statutory reserve and retained earnings were included. Another two key sources of fund were: 1. Deposits as at the end of 2012 were in the amount of THB 698,372 million. 2. B orrowings which were in the amount of THB 78,149 million, of which THB 7,130 million were hybrid tier 1, THB 40,516 million were subordinated debentures, THB 11,072 million were debentures, THB 13,235 million were short-term debentures, THB 4,930 million were bill of exchange, and THB 1,266 million were others.
Funding or lending to related parties
At the end of 2012, TBANK extended loans to subsidiaries and related companies in Thanachart Group
as follows: 1. Thanachart Group Leasing Company Limited (TGL) (subsidiary of TBANK) TBANK extended loans to TGL for hire purchase business for all types of automobile, in line with the business policy of Thanachart Group. In 2012, there was no loan outstanding balance, while the loan outstanding balance was THB 353 million in 2011. 2. National Leasing Company Limited (subsidiary of TGL) TBANK extended loans to National Leasing for property hire purchase business as well as property leasing.
In 2012, there was no loan outstanding balance, while the loan outstanding balance was THB 22 million in 2011. 3. Ratchthani Leasing Public Company Limited (THANI) (subsidiary of TBANK) TBANK extended loans to Ratchthani Leasing for hire purchase business for all types of automobile, in line with the business policy of Thanachart Group. In 2012, there was no loan outstanding balance, while the loan outstanding balance was THB 7,867 million in 2011. 4. TS Asset Management Company Limited (TS AMC) (subsidiary of TBANK) TBANK extended loans to TS AMC for nonperforming asset management business, in line with
the business policy of Thanachart Group. In 2012, loan outstanding balance was THB 6,060 million, decreased from THB 9,822 million at the end of 2011 The aforementioned loan outstanding balance of Thanachart Group totaled THB 6,060 million, accounted
for 0.80 percent of total loans at the end of 2012. All lending and borrowing activities were transacted under the permission of the BOT.”
Annual Report 2012 Thanachart Bank Public Company Limited
47