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Financial Analysis Presentation

Stabilized NIM from ability to manage deposit cost despite declining in asset yields Utb Cost of Deposit Loan Yield Loan yield (excluded PPA impact) 5.11% 4.86% 4.64% 4.58% 4.64% Net Interest Margin (NIM) NIM (excluded PPA impact) 2.94% 3.06% 3.04% Flat QoQ -20 bps YoY 1.14% -36 bps YOY 4.83% -6 bps QoQ -37bps YoY 5.00% 4.52% 4.46% -48 bps YoY 4.52% 2.92% 2.98% 0.96% 0.76% 0.76% 0.78% 2.95% -3 bps QoQ +3 bps YoY 3.07% 2.98% 3.06% Flat YoY 2.98% tui li lii li ||| || 3Q20 2Q21 3Q21 9M20 9M21 3Q20 2Q21 3Q21 9M20 9M21 III 3Q20 2Q21 3Q21 9M20 9M21 • 3Q21 deposit cost recorded at 0.76%, stable QoQ despite higher deposit volume. The YoY reduction was driven by the Bank's effort on funding strategy and balance sheets optimization. 9M21 cost of deposit was 0.78%, materially down by 36 basis points YoY. This was due to balance sheet optimization plus deposit repricing strategy on flagship products. • Loan yield remains under pressure from sluggish economic and low rate environment together with quality loan growth strategy to preserve B/S quality. As a result, loan yield dropped QoQ and YoY. Following the reduction of market benchmark rate throughout 2020, loan yield compressed to 4.52% in 9M21. • • NIM slightly dropped QoQ from yield compression. YoY improvement was mainly from funding optimization. 9M21 NIM was stable YoY at 2.98%. This was driven by balance sheet optimization and effective deposit repricing strategy during low rate environment which helped compensate for yield pressure. 14
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