KBank's Strategic Acquisition in Muang Thai Group Holding slide image

KBank's Strategic Acquisition in Muang Thai Group Holding

K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KBank: Financial Performance Note: 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 K KASIKORNTHAI 1Q23 Performance Highlights 71 ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK ■■1Q23 net profit decreased 4.19% YoY, due to higher expected credit loss. However, EBPT improved as a result of 1Q23 loans dropped 1.20% YTD from SME, Credit Cards, Personal loan, and from NPL outflow management, while Regional and KLeasing increased ■NIM was 3.46% in 1Q23, increasing YoY, mainly due to higher yield in line with interest rate trend, despite higher cost of fund from higher rate and resumption of FIDF fee to its normal level of 0.46%. More than 90% of interest income received in cash Consolidated 2021 2022 1Q22 2Q22 3Q22 4Q22 1Q23 strong growth in operating income and consistently efficient expense management Net Profit (Bt bn) 38.05 35.77 11.21 10.79 10.57 3.19 10.74 Profitability - NIM 3.21% 3.33% 3.19% 3.21% 3.33% 3.62% 3.46% - ROE* 8.44% 7.38% 9.30% 9.13% 8.49% 2.63% 8.43% - ROA 0.98% 0.86% 1.09% 1.04% 1.00% 0.30% - YTD Loan growth 7.88% 3.03% 1.51% 2.79% 1.75% 3.03% 1.01% -1.20% - YoY Loan growth 7.88% 3.03% 6.77% 4.45% 0.83% 3.03% - YoY Net fee income growth 7.01% (6.89%) - YoY Non-interest income growth (4.17%) (8.42%) (6.36%) (5.00%) (5.09%) (25.49%) (14.72%) (6.04%) (11.09%) 13.04% 0.28% (8.13%) 32.00% Cost control - Cost to income 43.49% 43.15% 42.82% 43.53% 43.73% 42.60% 42.50% Asset quality - NPL ratio 3.76% - Credit Cost 1.73% 3.19% 2.11% 3.80% 1.59% 3.07% 1.61% 3.19% 3.68% - Coverage ratio 159.08% 154.26% Loans to Deposits 93.20% 90.77% 93.31% 93.18% 92.65% Tier 1 Ratio 16.49% 16.84% 16.35% 16.39% 17.21% CAR 18.77% 18.81% 18.34% 18.37% 19.19% 90.77% 16.84% 18.81% 16.92% 3.78% 3.04% 1.53% 2.05% 158.33% 144.61% 148.74% 154.26% 156.68% 90.85% Note: Under Bank of Thailand regulations, net profit in the first half of the year is counted as capital after approval by the Board of Directors as per Bank regulations. Net profit in the second half of the year is counted as capital after approval of the General Meeting of Shareholders. However, when a net loss occurs, the capital must be reduced immediately Capital Adequacy Ratio (CAR) has been reported in accordance with Basel III Capital Requirement from January 1, 2013 onwards. CAR is based on KASIKORNBANK FINANCIAL CONGLOMERATE. KASIKORNBANK FINANCIAL CONGLOMERATE means the company under the Notification of the Bank of Thailand re: Consolidated Supervision, consisting of KBank, K Companies, and subsidiaries operating in supporting KBank, Phethai Asset Management Co., Ltd., and other subsidiaries within the permitted scope of the BOT's definition to be a financial conglomerate 18.90% * ROE = Net profit (attributable to equity holders of the Bank) deduct dividend from other equity instruments after income tax divided by average equity of equity excluded other equity instruments 1Q23 net fee income decreased 8.13% YoY from high-base brokerage and fund management business in 1Q22, in line with market conditions 1Q23 cost to income ratio was 42.50%, decreasing YoY, from net total income increasing, despite higher operating expense (mainly due to one-time employee expenses from cost of living subsidy measures). Focus on cost management and productivity improvement, with new investments for future growth 1Q23 NPL ratio was at 3.04%, with a coverage ratio of 156.68% from proactive NPL management In 1Q23, we detected deterioration, worth 6% of ECL, in a single large corporate loan. We took immediate action, covering the potential loss with management overlay, resulting in 1Q23 credit cost of 2.05% a little bit higher than target range. In 2023, credit cost will hold in the range of 175-200 bps. We expect extra effort will be needed to keep credit cost within this range because of our ongoing, proactive asset quality cleanup efforts and this one-time deterioration in a large corporate loan. However, the credit cost may hit the upper bound of the target range or slightly exceed it, rising to no more than 210 bps ■1Q23 capital base remained sufficient to support business growth บริการทุกระดับประทับใจ 72 22
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