2022 Performance and Sustainability Focus slide image

2022 Performance and Sustainability Focus

With core operating improvement and lower provision underpinning by controllable asset quality, Net Profit +36% YoY ECL & Credit Cost Expected credit loss (ECL) (THB million) Annualized credit cost (bps) Net Profit THB million Utb 157 146 142 138 133 127 124 5,017 4,808 4,382 4,361 +10% QoQ 4,802 -4% YoY 21,514 18,353 -15% YoY +4% QoQ 2,799 3,195 3,438 3,715 3,847 +37% YoY 10,474 14,195 +36% YoY 4Q21 1Q22 2Q22 3Q22 4Q22 2021 2022 TTB's portfolio quality is well under control as a result of prudent risk management and conservative initiatives during COVID-19. Credit cost, therefore, was in downward trend comparing to 2021 & 2020. Stage 3 ratio was at 2.7%, below the guidance (≤3.2%). With the one-time gain from AT1 buy back and NPL sale opportunity in 4Q22, the Bank decided not to reverse provision and set-up higher ECL level for prudence. In parallel, we cleaned up B/S and further de-risk portfolio and ensure healthiness of our asset quality. Overall, 2022 provision was down by 15% YoY and recorded credit cost at 133 bps, below 2022 target range. The level of ECL is prudent and includes forward-looking approach and additional MO in preparation for unforeseen circumstance and economic headwinds. 4Q21 1Q22 2Q22 3Q22 4Q22 2021 2022 Robust growth (+36% YoY) in net profit was supported by NII recovery, cost discipline and lower ECL. 4Q22 net profit increased by +4% QoQ and +37% YoY. RoE also improved by 158 bps YoY and registered at 6.6%. For 2023, the Bank plans to enhance Merged bank's customer base for cross-selling opportunity thru ecosystem's initiatives as well as to increase our fair share in consumer lending space to enhance loan yield. We will continue to improve earnings capability to generate sustainable returns to our shareholders. 17
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