TMBThanachart Bank Public Company Limited and its Subsidiaries (Formerly TMB Bank Public Company Limited and its Subsidiaries) Notes to the financial statements For the year ended 31 December 2021 35 4 Entire Business Transfer On 3 July 2021 (“business transfer date”), Thanachart Bank Public Company Limited (“TBANK”) completed the transfer of its entire business (“the Business”) to the Bank. The transaction is considered as business combination under common control. The Business consists of all business undertaking under Thanachart Bank’s umbrella, including commercial banking business and retail banking business, all asset and liabilities, and rights and obligations as of the transferring date. The total price of the Business is determined of Baht 161,412 million. During the year, the bank made full payment to TBANK. The major classes of the carrying amount of assets acquired and liabilities assumed and surplus on business combination under common control recognised at the transferring date are summarised as follows: Amount (Million Baht) Investments, net 82,717 Loans to customers and accrued interest receivables, net 622,249 Other assets 47,934 Deposits (457,319) Interbank and money market items (liability) (118,746) Other liabilities (14,538) Total net assets 162,297 Surplus on business combination under common control (885) Consideration transferred 161,412 5 Impact of COVID-19 At the onset of the COVID-19 pandemic, the Bank and its subsidiaries provided relief measure for all customer segments in the form of payment holiday for principal and interest, a reduction of interest payment, extension of installment period, and special loan facilities. During the year ended 31 December 2021, loans under debt relief since 2020 has exited the program. However, after the 3rd wave of COVID-19 resurgence, there are new requests from affected customers. As at 31 December 2021 and 2020, the Bank and its subsidiaries had customers under the relief program representing approximately 12% and 15%, respectively (Bank only:12% and 15%, respectively) of the total loan portfolio. According to the resurgence of COVID-19, the Bank continues to be vigilant and keeps monitoring customers to ensure the Bank’s asset quality as well as supported affected customers from the 3rd wave through the various relief measures and preemptive debt restructuring to ensure that customers can recover in the long run. In relation to financial reporting, the Bank and its subsidiaries have adopted accounting relief on the use of new effective interest rate (EIR) at the time contracts are changed. This has been applied for all customers under relief program. As the COVID-19 pandemic is ongoing, management considered the impact of the COVID-19 to the financial assets based on available information and the potential impact on the initial ECL estimates. As at 31 December 2021 and 2020, management provided additional ECL as management overlay especially for the customers under relief programs and impact from economic condition. 279 Form 56-1 One Report 2021
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