KASIKORNTHAI Regulatory Capital and Financial Performance Update slide image

KASIKORNTHAI Regulatory Capital and Financial Performance Update

ธนาคารกสิกรไทย K KASIKORNTHAI Basel III: BOT Minimum Capital Requirement 开泰银行 KASIKORNBANK Transitional Arrangement for Capital Requirement All dates are as of 1 January Conservation Buffer* D-SIBS Buffer** 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.625% 1.25% 1.875% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 0.5% 1.0% 1.0% 1.0% 1.0% 1.0% CET1: Min. Common Equity Tier 1 Ratio (after conservation buffer and D-SIBS buffer) 5.125% (4.5%+0.625%) 5.75% (4.5%+1.25%) 6.375% (4.5% +1.875%) 7.5% 8.0% 8.0% 8.0% 8.0% 8.0% (4.5% +2.5% +0.5%) (4.5% +2.5% +1%) (4.5%+2.5% +1%) (4.5% +2.5% +1%) (4.5%+2.5% +1%) (4.5%+2.5% +1%) Tier 1: Min. Tier 1 Ratio 6.625% (after conservation buffer and D-SIBS buffer) (6.0%+0.625%) 7.25% (6.0%+1.25%) 7.875% (6.0%+1.875%) 9.0% (6.0% +2.5% +0.5%) 9.5% CAR: Min. Total Capital Ratio (after conservation buffer and D-SIBS buffer) 9.125% (8.5%+0.625%) 9.75% (8.5%+1.25%) 10.375% (8.5%+1.875%) 11.5% (8.5%+2.5% +0.5%) 12.0% (8.5% +2.5% +1%) 12.0% (8.5% +2.5% +1%) (6.0% +2.5% +1%) 9.5% (6.0%+2.5% +1%) 9.5% (6.0%+2.5% +1%) 12.0% (8.5%+2.5% +1%) 9.5% (6.0% +2.5% +1%) 12.0% (8.5%+2.5% +1%) 9.5% (6.0%+2.5% +1%) 12.0% (8.5%+2.5% +1%) Countercyclical Buffer 0.0-2.5% 0.0-2.5% (Subject to the BOT consideration)*** Leverage Ratio Parallel run period (Tier 1/Exposure) ≥ 3% Tentative effective date Liquidity Coverage Ratio (LCR)**** (Liquid Assets/Net Cash Outflows within 30 days) ≥ 100% LCR ≥ 60% LCR ≥ 70% LCR ≥ 80% LCR ≥ 90% LCR ≥ 100% LCR ≥ 100% LCR ≥ 100% LCR ≥ 100% LCR ≥ 100% Net Stable Funding Ratio (NSFR) (Available Stable Funding / Required Stable Funding) ≥ 100% Note: NSFR≥ 100% NSFR ≥ 100% NSFR ≥ 100% NSFR≥ 100% NSFR≥ 100% NSFR ≥ 100% NSFR≥ 100% * Conservation Buffer is to ensure adequate capital to absorb losses during periods of financial and economic stress. ** D-SIBS (Domestic Systemically Important Banks) Buffer is to limit negative impact associated with the distress or failure of banks on domestic financial system and economy. *** In periods of excess aggregate credit growth, BOT may require banks to set a Countercyclical Buffer up to 2.5% to achieve the broader macro-prudential goal of protecting the banking sector. **** KBank's Average Liquidity Coverage Ratio (LCR) are 173%, 164%, and 166% as of June 2023, December 2022, and June 2022, respectively; more details can be found on Basel III - Pillar 3 Disclosures Report Remark: Banks with a capital ratio less than the required regulatory buffers will face various degrees of constraint on earning distribution Source: The Bank of Thailand บริการทุกระดับประทับใจ 129 K KASIKORNTHAI Capital Definition Change (Consolidated) Tier 1 capital Basel II Tier 1 • Issued and paid-up share capital . • Premium on ordinary shares Legal reserve and Retained earnings • Hybrid Tier 1 (<15% of total Tier 1) • Minority interest, Preferred stock Deduction of Tier 1 Goodwill, Treasury stock, Deferred tax asset Investment in insurance (50% Tier 1 and 50% Tier 2) • Long-term subordinated debt 1 2 Common Equity Tier 1 ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK Basel III • Issued and paid-up share capital* • . Premium on ordinary shares • Legal reserve and Retained earnings Other comprehensive income (OCI) e.g. surplus on bond and equity FVTOCI (100%), surplus on land & premises (100%) Additional Tier 1 Hybrid Tier 1 with loss absorbency feature Minority interest, Preferred stock Deduction of Common Equity Tier 1 . Goodwill, Deferred tax asset . Intangible assets ⚫ Investment in insurance (Threshold Deduction) - Amount 10% of CET1, %RW = 250% (KBank's Case) - Amount > 10% of CET1, deduct CET1 Digital Asset Exposure Long-term sub-debt with loss absorbency feature Tier 2 capital 3 • Hybrid Tier 1 (exceeds from Tier 1 limit) General Provision • Surplus on AFS equity (45%) 1 Surplus on land & premises (70% and 50%) • General Provision Net Treasury Stock บริการทุกระดับประทับใจ 130
View entire presentation