KBank Subsidiaries and ASEAN Economic Strategy slide image

KBank Subsidiaries and ASEAN Economic Strategy

K KASIKORNTHAI Composition of Growth: Loans by Business Moderate loan growth momentum in line with full-year target Loan Portfolio Structure ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Original Loan Growth Target (%) Announced on 24 October 2019 (No longer applicable) Loan Portfolio Bt bn 2,400 Consolidated 1,803 1,914 2,002 2,127 1,698 Corporate Amount (Bt bn) Dec 19 1H20 1H20 2020 Jun 20 Loan Growth Yield Range 2,000 - 1,600 36% 34% 36% (%YTD) (%) Loan Growth Target (%) (No longer applicable) ■ SME 30% 35% Corporate Loans 691 777 12.4% 3-5% 2-4% 1,200 SME Loans 672 721 7.3% Retail 5-7% 1-3% 349 800 399 369 35% 34° Retail Loans 556 570 2.6% 5-7% 9-11% Others 400 25% 24% 25% 28% 27% Other Loans 6% 5% 0 4% 4% 3% Total Loans 83 2,002 59 2,127 (29.4%) 6.2% 4.9% 4-6% 2016 2017 2018 2019 1H20 1H20 Note: * From time to time, the Bank has adjusted loan definitions based on loan portfolio management; thus, the latest loan base is not comparable with previous reports. 2020 Outlook Corporate Loans ■ Mainly from Commerce Consumer and Communication Industries SME Loans Retail Loans ■ Loan growth corresponded with slow pace of global and local economies. The bank assisted and supported customers' liquidity needs where appropriate, with a prudent approach ■ Retail loans grew mainly from Home Loans and Personal Loans ■ Credit Card fell due to seasonality amid loan repayments for tax- saving funds purchased last year-end and low spending impact from COVID-19 Loan Definition (more details on loans can be found in App. Page 68-70) ■ Support clients affected by economic slow down due to COVID-19 outbreak ■ Both long-term and short-term loans are still in demand from big corporates ■ Global trade and the geopolitical situation remain uncertain; local government spending and public investment will be the major drivers. Lending should organically grow with prudent consideration while still meeting customers' funding needs and aligning with any further government measures Support customers in need of financial services to cope with rapid economic change ■ Apply data analytics to enhance predictive model and credit process in order to lend intelligently with acceptable risk via traditional and digital channels ■ Organic growth target in-line with industry; lending thru data analytics and offers via assisted and unassisted channels to support financial solutions for all life stages where most relevant to customers' lifestyles and needs; maintain lead market position in key products ▪ Focus on new potential target customers with acceptable risk; predictive monitoring and strict control of loan portfolio quality Corporate Loans: Loans of KBank and KBank's Subsidiaries in Corporate Segments (annual sales turnover > Bt400mn) SME Loans: Loans of KBank and KBank's Subsidiaries in SME Segments (annual sales turnover ≤ Bt400mn) Retail Loans: Loans of KBank and KBank's Subsidiaries in Retail Segments Other Loans: Loans in Enterprise Risk Management Division (NPL + Performing Restructured Loans) and other loan types บริการทุกระดับประทับใจ 13 K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Composition of Growth: Net Fees and Non-interest Income June 2020 (Consolidated) Total Operating Income - net Non-interest Income Ratio and Net Fee Income Ratio (Bt bn) 200153.40 156.86 155.48 160.49 (+4%) (+2%) (-1%) (%) 50 (+3%) 42% 40% 37% 150- 79.23 40 36% 37% 36% 42% 40% 100- 1(+3% YOY) 30 25% 25% 25% 1 30% 23% 21% 30% 20 50 64% 58% 60% 63% I 70% 10 0 0 2016 2017 2018 2019 1H20* 2016 2017 Non-interest Income Ratio 2018 2019 1H20* ■Net Fee Income Ratio Net Interest Income Non-interest Income Non-interest Income Net Fee Income n ០ ៣៩ ៦ ឆ៩ឥ៩ឌខទ – (Bt bn) 70 63.73 (+2%) 62.70 (-2%) Other Operating Income 56.95 57.80 4% (Bt bn) (-9%) (+2%) Fee and Service Income - net 40 38.94 (+4%) 41.31 (+6%) 38.12 (-8%) 36.74 (-4%) Net Premium Earned - net 35 66% 67% 61% 64% 24.06 30 Dividend Income (-7% YoY) 20 16.90 5.48% YoY) 16% 5% Share of Profit from Investments on Equity Method 9% 0.3% 3% 6% 0.1 0.1% 4% 70% 15% 10 9.2% 10 6% 14% 13% 16% 15% -5 2016 2017 2018 2019 0.7% 8% 0.1% 18% 1% 1H20* Gain Investment 0 2016 2017 2018 2019 1H20* -Net Fee Income Ratio = Net Fee Income / Total Operating Income - net ■1H20 non-interest income accounted for 30% of total net operating income and net fee income accounted for 21%; non-interest income decreased 7% YoY, mainly from net fee dropped, and a decrease in insurance business ■Net fee income dropped 5.5% YoY, mainly due to loan-related fee recognition according to TFRS 9 and fee from card business Gain on financial instrument measured at FVTPL (Gain on Trading and FX transactions-Old) Note: Non-interest Income Ratio = Non-interest Income/Total Operating Income - net -Net Premium Earned - net Net Premium Earned less Underwriting Expense * The Bank and its subsidiaries have adopted new accounting standards (TFRS 9: Financial Instruments) since January 1, 2020 onwards, some financial statements and financial ratios are not comparable with previous years' financial figures, which were based on the prior accounting standards (non-TFRS9). ** The Bank restated the 1Q20 financial statements from the reclassification of investment in fund/ REIT to investments in FVOCI to comply with the Federation of Accounting Professions' announcement on 25 June 2020 and reclassification some items which did not impact to total assets, total liabilities and total equity. บริการทุกระดับประทับใจ 14
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