Currency and Interest Rate Outlook slide image

Currency and Interest Rate Outlook

K KASIKORNTHAI Composition of Growth: Loans by Business ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Moderate loan growth momentum in line with full-year target Loan Portfolio Structure Loan Portfolio Bt bn Consolidated 2,400 2,245 2,383 Amount (Bt bn) Dec 20 Jun21 1H21 1H21 Y2021 Loan Growth Yield Range Loan Growth Target 2,000 1,803 1,914 2,002 36% 35% Corporate (%) (%) 1,600 35% 36% 34% ■ SME Corporate Loans 814 834 2.5% 2-4% 1,200 800 36% 35% 34% 33% 33% SME Loans 733 782 6.7% 5-7% 400 24% 25% 28% 28% 29% Retail Others Retail Loans 638 695 8.9% 5-7% 0 5% 4% 4% 3% 3% Other Loans Total Loans 60 2,245 72 19.6% 2,383 6.2% 4.6% (%) 1-3% 2-4% 11-13% 4-6% 2017 2018 2019 2020 1H21 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. 1H21 Corporate Loans ■ Loan portfolio mainly grew from short-term lending from liquidity needs ▪ KBank provided relief measures to corporate customers in a timely SME Loans Retail Loans Loan Definition manner ■ Amid slow pace of global and local economy, the bank prudently supported customers' liquidity needs, where appropriate ■ Financial assistance measures meant to soften impact of the outbreak mainly support loan expansion in this quarter ■ Major loan contribution to Commerce Consumer and Construction industry ■ Retail loans grew mainly from home loans, expanding into high potential customers with product offerings matched to customers' needs ■ Offered "Smart PAY & Smart CASH via K PLUS" for credit card customers to better provide accessibility and convenience ■ Offered new feature, "Swipe, Press, Pay by Installments in one card," for Xpress Cash. Customer enables QR code, scans option for cardless cash withdrawal at K-ATMs nationwide, and completes money transfer free of charge 24/7 via KPLUS 2021 Outlook ■ Potential loan growth in some sectors to support business opportunities ■ KBank continuously provides assistance to corporate customers affected by COVID-19 pandemic ■ Domestic and global trade still uncertain; local government spending and public investment remain major drivers. Lending growing organically and prudently while still meeting customers' funding needs and aligning with government measures ■ Apply data analytics to enhance predictive model and credit process in order to lend intelligently with acceptable risk, via blended traditional and digital channels ■ Continuous growth supporting consumer market and local demand ■ Focus on lending thru data analytics and supporting financial solutions for all life stages via assisted and unassisted channels where most relevant to customers' lifestyles and needs ■ Maintain lead market position in key strength products ■ Focus on new potential target customers with acceptable risk; predictive monitoring and strict control on 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 บริการทุกระดับประทับใจ Other Loans: Composed of loans through the insurance business (MTL), regional markets, and other loan types not directly attributable to the main business groups. Before Y2020, other loans were loans in Enterprise Risk Management Division (NPL + Performing Restructured Loans) were reclassified to their customer segments. K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Composition of Growth: Net Fees and Non-interest Income June 2021 (Consolidated) 25% 36% 30% 28% 23% 21% 22% 1H21 Total Operating Income - net Non-interest Income Ratio and Net Fee Income Ratio (Bt bn) (%) 160.49 154.89 200- 156.86 155.48 50 (+2%) (-1%) (+3%) (-3%) 1 40% 40 37% 150 36% 80.88 40% 37% 30% (+2% YOY) 30 25% 100 28% 20 50 60% 63% 64% 70% 72% 10 0 0 2017 2018 2019 2020 1H21 2017 Net Interest Income Non-interest Income 2018 Non-interest Income Ratio 2019 2020* ■Net Fee Income Ratio Net Fee Income GOGSPROCEDURE ■Fee and Service Income - net (Bt bn41.31 (+6%) 38.12 36.74 40 (-8%) Net Premium Earned - net (-4%) 33.00 (-10%) | ■Dividend Income 30 23.03 72% (4% YoY) Share of Profit from Investments on Equity Method 20 9% 6% 0.1% Gain on Investment 0.3% 0.1% 4% 15% 78% 10 6% 5% 13% 16% 14% 5% 18% -0.4% -0.3% 2017 2018 2019 2020* 113% -1% -2.5% 1H21 Gain on financial instrument measured at FVTPL (Gain on Trading and FX transactions-Old) 0 2017 2018 2019 2020* 1H21 Non-interest Income (Bt bn) 62.70 (-2%) 56.95 57.80 60 66% (-9%) (+2%) 3% 45.87 (-21%) 67% 64% 4% I Other Operating Income | 18.01 (+7% YoY) ■1H21 non-interest income accounted for 28% of total net operating income and net fee income accounted for 22%; non-interest income decreased 4% YoY, mainly from mark to market of financial assets according to market condition and decrease in net premium earned - net. ■Net fee income increased 7% YoY, mainly from fund management business and brokerage business; while fee from money transfer decreased Note: Non-interest Income Ratio = Non-interest Income/Total Operating Income - net -Net Fee Income Ratio = Net Fee 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 before Y2020, which were based on the prior accounting standards (non-TFRS9). บริการทุกระดับประทับใจ 11 12
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