#1Bangkok Bank Investor Presentation CREATING VALUE#22 Bangkok Bank M Operating environment 2019 Financial performance 2020 target & Key focus and strategy Brief update on Permata Bangkok Bank#3Despite reduced trade tensions, global growth faces growing downside risks due to the uncertainty over the coronavirus outbreak 3 USA 2.0% (2.1%) Note: October 2019 projections in brackets Source: IMF (as of January 2020) WORLD 3.3% (3.4%) Euro Area 1.3% (1.4%) China 6.0% Japan (5.8%) 0.7% (0.5%) Emerging and Developing Asia 4.4% (4.6%) Bangkok Bank#4Wuhan Virus disrupts global tourism and supply chains Impacts will be much worse than the SARS epidemic Coronavirus Confirmed Cases Domestic Value Added Content of Intermediate Exports to China 2019-nCov cases 17,384.0 % GDP 20 20,000 18,000 16,000 14,000 Peak SARS cases 12,000 10,000 in 6 months 8,465 8,000 6,000 4,000 Peak SARS cases in 3 months 1,323 2,000 0 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 32 Day of outbreak 0 4 16 12 22 8 Entry refusal for Travel restrictions and advisories Visa issuance suspension visitors from Hubei/China Border Closure Person (mn) 200 Australia, Canada, Egypt, Finland, France, Japan, Germany, India, Mongolia, New Zealand, UK, US Hong Kong, Indonesia, Myanmar, Russia, Singapore, South Korea Indonesia, Israel, Hong Kong, 150 Mongolia, North Korea, Pakistan, Russia 100 Maldives, New Zealand, Philippines, Singapore, South Korea, Taiwan Source: CEIC, Capital Economics, Time, South China Morning Post, Bloomberg 50 Taiwan Malaysia Chinese Visitors 31.0 Hong Kong Korea Thailand Singapore Vietnam Phillippines 34.5 41.0 45.8 47.7 57.4 70.3 83.2 98.2 116,6 127.9 135.1 0 2001 2003 2005 Chinese tourists to Thailand 2007 2009 Indonesia 10.5 142.7 11.0 2011 2013 2015 2017 2019 Chinese outbound tourists Bangkok Bank 162.0#5Outlook for GDP growth in 2020 is clouded by the virus outbreak, even as mild global economic recovery is anticipated GDP growth YoY (%) Large scale fiscal stimulus 5.0% 5.4% 4.2% Global economic recovery Global financial crisis 7.5% 7.2% Strong Baht appreciation up to taper tantrum Brexit US election Collapse in Great floods commodity price 4.0% 4.1% 2.7% ↓ 3.1% 3.4% 2.4% 2.3% 1.7% 0.8% 1.0% -0.7% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019E 2020F Global Purchasing Managers' Index (PMI) 55 54 53 52 51 50 49 49 Aug-17 Dec-17 Apr-18 Aug-18 Dec-18 Apr-19 Aug-19 Dec-19 Manufacturing Composite Service Current Account USD billion 50 40 27.8 30 52.1 51.7 20 50.1 10 5 Source: Bloomberg, Office of the National Economic and Social Development Council, CEIC 43.4 43.9 33.1 28.5 0 2015 2016 2017 2018 2019 Bangkok Bank#6Domestic demand has softened with spillovers from weak exports, headwinds against consumption and investment Private consumption Index sa (Jan 2018 = 100) 110 Household debt % of GDP 81 105 100 80 79 79.1 78.7 78.7 78.6 78.3 95 77.9 77.8 78 77.7 90 PCI Non-Durables index 77 55 85 Semi-Durables Index Services Index Durables Index 80 76 Jan-18 Apr-18 Jul-18 Oct-18 Jan-19 Apr-19 Jul-19 Oct-19 Private investment index and capacity utilization rate HI HH Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Manufacturing production index 77.9 Index sa 2010 = 100 150 do % %YoY 72 15 70 145 10 68 140 5 65.0 66 66 135 0 64 130 -5 62 Private Investment Index 128.7 125 -10 Capacity Utilization Rate (RHS) 60 120 58 -15 May-18 Aug-18 Nov-18 Feb-19 May-19 Aug-19 Nov-19 6 Source: Bank of Thailand, CEIC, Office of Industrial Economics Export-oriented Others MPI May-18 Jul-18 Sep-18 Nov-18 Jan-19 Mar-19 May-19 Jul-19 Sep-19 Nov-19 Bangkok Bank#7Budget delay may put new infrastructure projects further behind schedule 2020 Budget for Government and State-owned 7 Infrastructure Mega Projects Enterprises (THB bn) Policy, 0.3 Status Budget (THB bn) Air Water transportation transportation, 48.6 7.8 Waiting for Cabinet 1,239.6 approval Land Waiting for bidding 314.6 transportation, 163.4 In the bidding process Railways, 126.4 153.3 Waiting for construction 555.9 Construction ongoing 361.9 Source: Various News Sources • Motorway Bang Pa In - Korat . Mortorway Bang Yai - Kanchanaburi • Motorway Nakornpathom - Cha Am • Motorway Hatyai - Thai-Malaysia Border • Dual-track railway Paknampho - Denchai Dual-track railway Denchai - Chiang Mai Dual-track railway Khon Kean - Nong Khai • Dual-track railway Surat Thani - Songkla Bangkok Bank#8Record-low policy rate at 1.0% and THB has weakened sharply BOT Policy Rate % 4.00 USDTHB USDTHB 34.00 3.50 3.00 2.50 2.00 1.50 33.50 33.00 32.50 32.00 화석 31.50 31.00 As of 4th Feb 30.94 1.00 30.50 1.00 0.50 30.00 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Jan-18 Apr-18 Jul-18 Oct-18 Jan-19 Apr-19 Jul-19 Oct-19 Jan-20 8 Source: Bloomberg Bangkok Bank#99 Bangkok Bank Operating environment 2019 Financial performance 2020 target & Key focus and strategy Brief update on Permata Bangkok Bank#10Prudent loan growth, diversified portfolio business mix 3% QoQ loan growth in Q4 from corporate projects in pipeline, moderated decline in earlier part of the year Loan Billion Baht 2,083 -1.0% YoY 2,061 +3.0% QoQ 2,004 2,030 2,061 2,017 2,001 1,941 10 10 1,869 I 2015 2016 2017 2018 2019 Loan by business unit % of composition International 17% Mar-19 Jun-19 Sep-19 Dec-19 Loan by industry Consumer 15% Dec-19 Corporate 41% 8% Business 19% Commercial % of composition Real estate and construction Agriculture and mining 3% 10% Manufacturing 23% 12% Housing Dec-19 15% Others 23% 14% Commercial Utility and service Bangkok Bank#11Low interest environment put pressure on NIM but maintain value of franchise Net interest income Billion Baht NIM, Yield on earning asset, Cost of fund % 11 -0.4% YoY 71.4 71.1 66.6 64.0 57.5 3.90% 3.84% 3.74% 3.68% 3.72% 3.72% 3.74% 3.72% 3.57% 2.40% 2.48%- 2.34% 2.32% 2.35% 2.36% 2.35%. 2.22% 2.16% 1.96% 1.59% 1.54% 1.52% 1.59% 1.58% 1.61% 1.59% 1.57% 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 1Q19 2Q19 3Q194Q19 Policy rate 1.50% 1.50% 1.50% 1.75% 1.25% 1.75% 1.75% 1.50% 1.25% NIM Yield on earning asset Cost of fund Bangkok Bank#12Proven earnings track record Total income Billion Baht, % of composition Total income breakdown % of composition CAGR +6.8% +10.2% YoY 133.7 121.4 17% 17% 21% 18% 26% 112.5 105.9 102.7 12 12 23% 25% 23% 23% 21% 60% 59% 59% 56% 53% 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 Net interest income Net fee income Other income Bangkok Bank#13Steady composition of fee components and maintain 3-4% growth trend 13 Net fees and service income Billion Baht CAGR +4.3% 27.5 27.6 +3.3% YoY 28.5 24.1 24.5 Fees and service income % of composition 13% 12% 12% 12% 13% 15% 15% 17% 20% 21% 8% 8% 8% 8% 7% 22% 23% 22% 21% 19% 26% 26% 24% 24% 24% 16% 16% 17% 15% 16% 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 Other fees and commissions Bancassurance and mutual fund Global market service Credit card business Transaction service Loan related fee Bangkok Bank#14Cost management discipline Operating expenses 14 Billion Baht 45.0 50.5 2015 CAGR +5.1% 55.2 55.0 48.9 Cost to income ratio % 47.7% 43.8% 45.4% 43.5% 44.9% 3 41.1% 43.4%2 2016 2017 2018 2019 2015 2016 2017 2018 2019 Others Cost to income ratio Taxes and duties Premises and equipment expenses Personnel expenses/1 Cost to income ratio, excluding gains on investments Note: /1 Including directors' remuneration /2 If excluding the recognition of provision for post-employment benefits for the compensation in lieu of notice in the case of retirement of employees according to the new Labor Protection Act (7) B.E. 2562 (2019) /3 If excluding one-time provision for contingency Bangkok Bank#15High PPOP allowed for one-off provisioning to take advantage of TFRS9 regime change Pre-provisioning operating profit (PPOP) Billion Baht Provisioning expense, Credit cost Billion Baht, % 15 CAGR +8.1% +18.9% YoY 78.8 66.2 63.5 57.7 55.4 1.1% 1.1% 0.8% 0.8% 1.6% 34.2 31.8 33.0 35.3 35.8 +1.4% YOY 32.4 22.4 22.0 14.7 15.7 2015 2016 2017 Net profit/1 Provisioning expenses Note: /1 Attributable to owners of the Bank 2018 2019 2015 Tax+other 2016 Provisioning expenses 2017 2018 2019 Credit cost (%) Bangkok Bank#16Continued improvement in asset quality in Q4, with NPL decreasing by 8.2% QoQ NPL Billion Baht, % 16 3.9% 3.2% 3.4% 3.4% 2.8% 68.8 56.2 3.5% 3.5% 3.6% 3.4% 87.4 -1.2% YTD 86.2 -8.2% QoQ 83.7 82.1 80.1 79.1 79.1 2015 2016 2017 2018 2019 1Q19 2Q19 3Q19 4Q19 ■ NPL amount NPL ratio Bangkok Bank#17High one-off provision on conservative premise to strengthen loan loss reserve Loan loss reserve Billion Baht Coverage ratio % 104 119 140 70 70 153 89 174 113 17 17 55 55 61 49 49 2015 70 58 70 2016 2017 64 61 59 2018 2019 BBL's excess reserve over BOT requirement BBL's required reserve by BOT 185 174 160 220 191 149 145/2 138 130 136 2015 2016 2017 2018 2019 BBL's coverage ratio System's coverage ratio/1 Note: /1 System refers to all commercial banks in Thailand /2 As of September 2019 Source: Bank of Thailand, Bangkok Bank analysis Bangkok Bank#18Healthy funding and liquidity positions 18 Loan-to-deposit ratio Liquid assets/3 % Billion Baht 34.2% 34.8% 97.6% 98.3% 96.9% 96.3% 95.5%/2 32.5% 32.7% 32.0% 89.4% 89.1% 89.5% 1,119 86.7% 86.9% 1,052 907 957 1,018 2015 2016 2017 2018 2019 2015 2016 2017 System/1 2018 BBL 2019 Liquid assets Liquid assets/Total assets Deposit Liquidity coverage ratio/4 Billion Baht, % of composition % +1.9% YTD +0.3% QoQ 2,091 2,311 2,178 2,326 2,371 311% 288% 256% 252% 271% 48% 47% 55% 52% 49% 2015 45% 2016 48% 2017 52% 53% 180% 178% 184% 180% 51% 164% 2018 Fixed 2019 2Q17 4Q17 2Q18 4Q18 2Q19 System/1 BBL Current and saving Notes: /1 System refers to all commercial banks in Thailand /2 As of November 2019 /3 Liquid assets are defined as cash, interbank and money market assets and trading & available-for-sale securities /4 The BOT requires commercial banks to maintain Liquidity Coverage Ratio (LCR) at the end of each month not less than 60%, starting from January 1, 2016. The LCR requirement is to increase by 10% yearly until it reaches 100% on January 1, 2020. For BBL, LCR is computed as an average ratio of month-end LCR in the quarter. For System, LCR is as of month. Source: Bank of Thailand, Bangkok Bank analysis Bangkok Bank#19Sound capital base above minimum requirements Common Equity Tier 1 Ratio Tier 1 Ratio 17.0% 17.0% Total Capital Adequacy Ratio 20.0% Regulatory capital ratio requirements 2019 6.0% Minimum Tier 1 Ratio 8.5% Minimum Total Capital Ratio 7.5% 8.0% 9.0% 9.5% 11.5% 12.0% 2.5% +0.5% Capital Conservation/¹ and D-SIB Buffer/2 9.0% Tier 1 Capital Ratio Requirement 2020 6.0% Minimum 11.5% Total Capital Ratio Requirement 8.5% Minimum Tier 1 Ratio Total Capital Ratio 2.5% + 1.0% Dec-19 Dec-19 Dec-19 Basel III 9.5% Capital requirements/1/2 as of the year 2020 Capital requirements/1/2 as of the year 2019 BBL's ratio as of December 31, 2019/3 Tier 1 Capital Ratio Requirement Capital Conservation/1 and D-SIB Buffer/2 12.0% Total Capital Ratio Requirement 19 Note: /1 The Bank of Thailand requires commercial banks to maintain an additional capital conservation buffer. The buffer will gradually increase by more than 0.625% each year from January 1, 2016 until it reaches more than 2.5% in January 1, 2019. /2 The Bank of Thailand announced the guidelines for identifying and regulating Domestic Systemically Important Banks (D-SIBS) in September 2017. The BOT requires D-SIBS to hold additional capital for Higher Loss Absorbency (HLA) by gradually increasing its additional capital ratio by an increment of 0.5 percent from January 1, 2019 until completion of the increment to 1.0 percent in January 1, 2020 onwards. /3 Based on Basel III standards issued by BOT since January 1, 2013. Bangkok Bank#20Bangkok Bank 20 20 Operating environment 2019 Financial performance 2020 target & Key focus and strategy Brief update on Permata Bangkok Bank#21Fully prepared for IFRS9 implementation Key Areas of Impact 21 Provisioning based on "lifetime expected credit loss" Credit fee income included in interest income Bangkok Bank Mitigants Sound credit management and consistent reserving policies Provisioning expense (THB Bn) (1) Cost of credit (%) (2) 40 2.0% 32.4 1.6% 1.4% - 30 1.5% 1.2% 1.2% 1.2% 1.6% 22.4 22.0 20 20 1.0% 0.8% 1.1% 1.1% 14.7 15.7 0.8% 0.8% 0.5% 8.7 10 0.5% 0.0% 0 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019 -BBL -System/3 Lower non-interest income New classification of financial assets and financial liabilities: accounted for fair value to profit and loss (FVTPL) Banking book derivatives "mark to market" instead of "accrual basis" Most of investment in equities is classified to fair value to OCI (FVTOCI). The remaining is classified to FVTPL which a movement of market value will go through PL. Derivatives that qualify for hedge accounting reduce income volatility Derivative assets and derivative liabilities constitute less than 2% of total assets and total liabilities, respectively Notes: /1 Impairment loss of loan and debt securities /2 Impairment loss of loan and debt securities divided by average loan less deferred income /3 System refers to all commercial banks in Thailand, except 2019 refers to 5 banks (BBL, KBANK, SCB, KTB and BAY) Source: Bank of Thailand, Bangkok Bank analysis Bangkok Bank#222020 Financial target 22 Consolidated Loan growth NPL ratio (gross) Net interest margin Net fee income growth Cost to income ratio Expected credit loss 2020 Financial target 3-4% Maintain +2.20% -2% to flat High 40% 12,000-15,000 million Baht. Note: The above financial targets are based on the Bank's preliminary estimates that may change due to the operating environments and other unforeseen circumstances. Bangkok Bank#23Key Focus and Strategy 23 Connectivity and integration Business Opportunities Infrastructure development and the needs of urban society ✓ Deepen customer relationships Innovation technology Support customers by leveraging our expertise, extensive network and offering total solutions Data analytic to enhance customer experience Grow business with quality Business Challenges Weak global growth ✓ Well disciplined balance sheet management ✓ Robust capital base ✓ Domestic structural challenges ✓ Strong liquidity and solid deposit franchise Resilient asset quality with strong loan-loss reserves Long-term Sustainable Bank Bangkok Bank#2424 Bangkok Bank Operating environment 2019 Financial performance 2020 target & Key focus and strategy Brief update on Permata Bangkok Bank#25Brief update on Permata Bangkok Bank Permata Bank Extraordinary General Meeting of Shareholders scheduled on 5 March 2020 ○ Recap of Strategic Rationale · Increases Bangkok Bank's exposure to a highly attractive and fast-growing market Aligns with Bangkok Bank's international strategy to transform into a leading regional bank Provides a platform of scale that is poised for growth and an excellent fit for Bangkok Bank Generates significant synergies by leveraging Bangkok Bank's network and expertise ► Progressing through regulatory approval processes ▸ Expected closing within 2020 25 25 Bangkok Bank#26Acquisition of Permata is in line with Bangkok Bank's international strategy Bangkok Bank is Thailand's most international bank % international loans /1 17% Number of international locations/2 31 4% 3% 2% 1% 17 12 9 3 BBL SCB BAY KBANK KTB Source: Company Information KBANK SCB KTB BAY BBL Source: Company Information Permata will help transform Bangkok Bank into a leading ASEAN bank . • . Key Highlights of Permata Exposure to Retail and SME (58% of loans) • Solid funding base (over 3.5 million customers; 50% CASA ratio) Best-in-class digital capabilities Unique partnership ecosystem model Key Strengths of Bangkok Bank Largest corporate bank in Thailand • Leading cross-border product capabilities . Extensive regional footprint Robust capital position and prudent liquidity and risk management 26 Large scale provides broader funding and capital base to grow Bangkok Bank's international business Aid and promote Indonesian corporates and SMEs in expanding domestically and regionally Enhance value proposition and product offering for Bangkok Bank and Permata clients Capitalize on opportunities from greater ASEAN integration and promote knowledge transfer Notes: /1 BBL: international segment as a proportion of total loan. Other banks: proportion of foreign loans, classified by customer's residence per Thai Financial Reporting Standards. Based on the latter metric, BBL would have 23% foreign loans. As of 30 June 2019 /2 Includes head offices and branches. As of latest available Bangkok Bank#27Transform Bangkok Bank into a leading ASEAN bank with meaningful presence in high growth markets GDP growth % Bangkok Bank pre-transaction loan breakdown High growth/1 6% High growth markets will contribute ~16% to Bangkok Bank's loan High growth/1 16% Cambodia Lao P.D.R. Vietnam Myanmar Philippines China Indonesia Malaysia Thailand United States Chinese Taipei Hong Kong SAR United Kingdom Singapore Mature Markets 94% Bangkok Bank pre-transaction loan breakdown International Consumer 15% 17% Corporate 41% Japan 8% Business 0 2 4 6 8 19% Commercial 2020F ■2019E 2018 Loans: THB2,001 Bn Mature Markets 84% Permata will contribute ~10% of Bangkok Bank loan International 25% Corporate 37% Consumer 13% 8% Business 17% Commercial Pro forma Loans: THB2,235 Bn Note: /1 High growth markets include Myanmar, Cambodia, China, Vietnam, Philippines, Indonesia, and Laos. Mature markets include Thailand, 27 USA, UK, Malaysia, Japan, Hong Kong, Taiwan, and Singapore 27 Bangkok Bank#28Illustrative financial and capital impact on Bangkok Bank 28 Change in Key Financial Metrics (Sep-2019 Basis) US$MM/1 Estimated Capital Impact Bangkok Bank capital position will remain robust post- acquisition of 100% stake Standalone and pro forma capital ratios: /2 Bangkok Pro Bank Permata Forma Permata Contribution • Balance Sheet (as of 30 Sep 2019) Loan 65,422 7,646 73,068 10% CET 1 Ratio Deposit 77,212 8,479 85,691 10% CAR Total Assets 105,490 10,937 116,427 9% NPL Ratio 3.6% 3.3% 3.6% (3) bps • NPL Coverage 183.4% 164.0% 181.5% (189) bps Income Statement (9M 2019) Bangkok Bank Stand-alone Permata Bangkok Bank Pro Forma 17.7% 18.8% 14.5% 20.7% 20.1% 17.2% Bangkok Bank does not intend to raise equity for this transaction • Bangkok Bank will continue to assess raising Tier 2 or Additional Tier 1 capital to maintain capital ratios at prudent levels Net Interest Income 1,761 290 2,050 14% Impact on Dividends Net Income to 909 77 986 8% Owners Net Interest Margin 2.4% 4.2% 2.5% +15 bps Bangkok Bank intends to maintain its current level of dividends Note: /1 Based on exchange rate of US$/IDR of 14,179 and exchange rate of US$/THB of 30.6 as of 30 September 2019 /2 No CET 1, Tier 1, and Tier 2 financing assumed. 100% deduction of goodwill from CET1 and addition of 100% Permata RWAs to Bangkok Bank; As of Sep-2019 Bangkok Bank#29Appendix 29 29 Bangkok Bank#30Opportunities from Regionalization and Urbanization Thailand: gateway to the CLMV/1 region Laos GDP growth: 6.5% Total trade with Thailand: US$ 7 bn (11.7% 7Y CAGR) North-South Corridor Northern Corridor ASEAN countries have become Thailand's major trading partners Thailand's top export destinations 25% 30 Western Corridor Mae sai/Chiang Saen/ Chiang Khong, Chiang Rai Northeastem Corridor Laos Myanmar Mae Sot, Tak Myanmar GDP growth: 6.8% Thailand Don Muang Airport Thailand: US$ 8 bn Total trade with (6.5 % 7Y CAGR) Kanchanaburi Vietnam GDP growth: 6.9% Total trade with Thailand: US$ 19 bn (12.7% 7Y CAGR) Central Corridor Vietnam Nongkhai Mukdahan 1 Suvarnnabhumi Airport Aranyaprathet, Sa Kaeo ➡Cambodia Klongyai, 1 Map Ta Phut U-Tapao Airport Trat Port Southern Corridor Southern Coastal Corridor 20% Eastern Corridor 15% 10% 5% East-West Corridor 0% 2001 2004 2007 2010 2013 2016 ASEAN 5 China Japan USA 2019 CLMV Cambodia 10 targeted industries CPU GDP growth: 7.5% Next-Gen automotive Intelligent electronics Bio technology Food processing High wealth & medical tourism 1 Songkhla, Sadao Narathiwat อ Total trade with Thailand: US$ 8 bn (16.7 % 7Y CAGR) Phase 1 1 (5 Economic zones) 2 Phase 2 (7 Economic zones) Note: /1 "CLMV" stands for "Cambodia, Laos, Myanmar, and Vietnam" - GDP growth as of 2018; GDP growth refers to YoY growth between 2017-18 - Total trade is calculated as the sum of exports and imports as of 2018 Robotics Aviation & logistics Healthcare Biofuel & biochemical Digital Bangkok Bank#31EEC Projects Timeline 2019 2020 APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB Submission to Bangkok-Rayong High-Speed train the Cabinet * U-Tapao Airport 31 MRO Center Proposal Submission Submission to the PPP Committee Winner Announced Submission to the Cabinet Map Ta Phut Port Phase III Winner Laem Chabang Port Phase III Announced Source: Various News Sources Contract Signing Winner 2024 CP Group Winner Announced 2023 BBS Group 2022 Airbus/Thai Joint Venture 2024 PTT-Gulf Consortium 2023 PTT-Gulf Consortium Bangkok Bank#32Budget disbursement for infrastructure projects to rise with more clarity of EEC-related projects Disbursement schedule Billion Baht Combined public and private investments Approximately THB1.9Tn (US$62Bn) over the next 5 years 700 U-Tapao International Airport THB 290Bn (US$ 9Bn) MRO Center THB 11Bn (US$ 0.3Bn) Map Ta Put Port Phase 3 THB 55Bn (US$ 2Bn) Laem Chabang Port Phase 3 THB 144Bn (US$ 4Bn) Source: EECO 32 32 593 584 481 525 459 379 309 350 New Cities/Hospitals THB 400Bn (US$ 12Bn) Tourism 175 THB 200Bn (US$ 6Bn) EEC 543 411 333 263 132 138 Industry THB 500Bn (US$ 15Bn) Motorway THB 35Bn (US$ 1Bn) 0 2019 Budget 2020 2021 2022 2023 2024 Budget adjusted for additional infrastructure projects Source: Ministry of Transport, OTTPP, EECO, Bangkok Bank Economic Team Public debt to GDP % of GDP Fiscal Sustainability Framework at 60 percent 660 Dual-Track Railway 50 41.3 THB 64Bn 40 (US$ 2Bn) High Speed Rail 30 THB 247Bn (US$ 7Bn) 20 10 0 2003 2005 2007 2009 2011 2013 2015 2017 Nov-19 Source: Bank of Thailand Bangkok Bank#33GDP per capita and middle income class GDP per capita Vietnam Myanmar China Cambodia Lao P.D.R. Philippines Indonesia Malaysia Thailand Chinese Taipei United States United Kingdom Japan Hong Kong SAR Middle income class* >4$ standard, population, million >4$ standard, % change China India Azerbaijan Kazakhstan Pakistan Indonesia Philippines Vietnam Bangladesh Thailand Malaysia Kazakhstan Nepal Sri Lanka Cambodia Uzbekistan Azerbaijan Lao P.D.R. Papua New Guinea Georgia Tajikistan Armenia Georgia Vietnam India China Cambodia Sri Lanka Pakistan Lao P.D.R. Indonesia Philippines Mongolia Thailand Bangladesh Malaysia Nepal Armenia Tajikistan Papua New Guinea Mongolia Singapore Timor-Leste Uzbekistan Timor-Leste -2% 0% 2% 4% 6% 8% 0 200 400 600 800 1,000 1,200 0 10 20 20 2020F 2019E 2018 2010 2010-2020 2020-2030 2010-2020 Note: * More than $4.00 income per person per day Source: Roland-Holst, Sugiyarto and Loh (2010). 33 30 40 50 60 2020-2030 Bangkok Bank#34Financial position Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Million Baht Growth (%) QoQ YTD Loan/1 1,868,903 1,941,093 2,003,989 2,083,160 2,061,309 3.0% -1.0% Deposit 2,090,965 2,178,141 2,310,743 2,326,470 2,370,792 0.3% 1.9% LDR 89.4% 89.1% 86.7% 89.5% 86.9% 2.2% -2.6% NPL 56,226 68,841 87,419 80,137 79,149 -8.2% -1.2% NPL ratio 2.8% 3.2% 3.9% 3.4% 3.4% -0.2% 0.0% LLR to NPL 185% 174% 160% 191% 220% 36.8% 29.3% LLR to loan 5.6% 6.2% 7.0% 7.3% 8.5% 0.6% 1.2% Liquid assets/2 906,648 956,841 1,051,975 1,018,448 1,118,772 -5.2% 9.9% Liquid assets to total assets 32.0% 32.5% 34.2% 32.7% 34.8% -1.8% 2.1% CASA 44.8% 48.4% 50.7% 52.4% 53.1% 1.1% 0.7% CET1/Tier 1 ratio/3 15.8% 16.4% 16.6% 16.4% 17.0% -0.7% 0.6% CAR/3 17.9% 18.3% 18.2% 18.0% 20.0% -0.7% 2.0% Note: /1 Loan Loan to customer less deferred revenue /2 Liquid assets consist of cash, net interbank and money market items, trading securities and available-for-sale securities /3 Based on Basel III standards issued by BOT since January 1, 2013 34 Bangkok Bank#35Financial performance - 4Q19 Million Baht 4Q18 3Q19 4Q19 Growth (%) QoQ YOY Net interest income 18,423 17,944 17,193 -4.2% -6.7% Net fee income 7,070 6,864 8,185 19.2% 15.8% Other operating income 3,581 5,431 18,345 237.8% 412.3% Total income 29,074 30,239 43,723 44.6% 50.4% Operating expense 16,344 12,679 15,988 26.1% -2.2% Provisioning expense 2,765 5,381 16,342 203.7% 491.0% Net profit/1 8,101 9,438 8,002 -15.2% -1.2% EPS/1 (Baht per share) 4.24 4.94 4.19 -15.2% -1.2% NIM 2.46% 2.35% 2.22% -0.13% -0.24% Net fee income ratio 24.3% 22.7% 18.7% -4.0% -5.6% Cost to income ratio 56.2% 41.9% 36.6% -5.3% -19.6% ROA/1 1.04% 1.17% 0.99% -0.18% -0.05% ROE/1 7.86% 8.78% 7.40% -1.38% -0.46% Note: /1 Attributable to owners of the Bank 35 Bangkok Bank#36Financial performance-year Million Baht 2015 2016 2017 2018 2019 Growth %YOY Net interest income 57,510 63,998 66,625 71,376 71,071 -0.4% Net fee income 24,071 24,492 27,526 27,590 28,504 3.3% Other operating income 21,147 17,368 18,317 22,435 34,171 52.3% Total income 102,728 105,858 112,468 121,400 133,746 10.2% Operating expense 45,045 50,505 48,948 55,165 54,963 -0.4% Provisioning expense 14,654 15,728 22,370 21,965 32,351 47.3% Net profit/1 34,181 31,815 33,009 35,330 35,816 1.4% EPS/1 (Baht per share) 17.91 16.67 17.29 18.51 18.76 1.4% NIM 2.16% 2.34% 2.32% 2.40% 2.35% -0.05% Net fee income ratio 23.4% 23.1% 24.5% 22.7% 21.3% -1.4% Cost to income ratio 43.8% 47.7% 43.5% 45.4% 41.1% -4.3% ROA/1 1.21% 1.09% 1.09% 1.13% 1.13% 0.00% ROE/1 9.91% 8.59% 8.49% 8.73% 8.45% -0.28% Note: /1 Attributable to owners of the Bank 36 Bangkok Bank#37Dividend and payout ratio BB 37 Baht 12 10 10 Percent 60 32.3% 8 30 6.50 6.50 6.50 6.50 6.50 6.50 6.50 6.00 6 5.00 4.00 4 2.75 3.00 3.00 4.00 4.50 4.50 4.50 4.50 4.50 4.50 4.50 0 3.50 2 1.75 2.00 3.00 1.75 2.00 2.00 1.00 1.25 0.75 0.75 1.00 1.00 1.00 1.00 1.50 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 0 -30 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Interim (L) Final (L) Dividend payout ratio (R) Bangkok Bank#38Network 2016 2017 2018 2019 Branch* 1,157 +9 1,166 -5 1,161 -13 1,148 ATM 9,305 +177 9,482 -93 9,389 -27 9,362 CDM 1,282 +18 1,300 -4 1,296 -17 1,279 Employee 26,871 -859 26,012 -725 25,287 -244 25,043 Note: Consolidated * Domestic branches 38 Bangkok Bank#39Long-standing international presence 39 UK Branch: 1 31 International locations Number of year: 62 USA Branch: 1 Number of year: 54 Vietnam Branch: 2 Number of year: 27 Laos Branch: 2 Number of year: 26 Myanmar Branch: 1 Number of year: 24 Malaysia/1 Branch: 5 Number of year: 60 Singapore Branch: 1 Number of year: 62 Note: As at December 2019 /1 Wholly-owned subsidiary Source: Bangkok Bank filing in 14 economies China/1 Branch: 6 Number of year: 33 Japan Branch: 2 Number of year: 64 Philippines Branch: 1 Number of year: 24 Taiwan Branch: 3 Number of year: 54 Hong Kong Branch: 2 Number of year: 65 Cambodia Branch: 1 Number of year: 5 Indonesia Branch: 3 Number of year: 47 Bangkok Bank#40For further information Contact: Investor Relations team Bangkok Bank website Tel (66) 2 626 4981 Email: [email protected] www.bangkokbank.com This presentation is made by Bangkok Bank and may not be copied, altered, offered, sold or otherwise distributed to any other person by any recipient without the consent of Bangkok Bank. Although all reasonable effort has been made to ensure the facts stated herein are accurate and that the opinions contained herein are fair and reasonable, this document is selective in nature and is intended to provide an introduction to, and overview of, the business of Bangkok Bank. Where any information and statistics are quoted from any external source, such information or statistics should not be interpreted as having been adopted or endorsed by Bangkok bank as being accurate. Neither Bangkok Bank nor any of its directors, officers, employees, and advisors nor any other person shall have any liability whatsoever for loss howsoever arising, directly or indirectly, from any use of this information. The facts and information contained herein are as up to date as is reasonably possible and may be subject to revision in the future. 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