KASIKORNTHAI Regulatory Capital and Financial Performance Update slide image

KASIKORNTHAI Regulatory Capital and Financial Performance Update

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 Loan Portfolio (Bt bn) Consolidated 2,800 2,421 2,495 2,438 Amount (Bt bn) Dec 22 9M23 9M23 Y2023 Sep 23 Loan Growth Yield Range Loan Growth Target 2,245 (%) 2,400 (%) 2,002 2,000 34% 36% 36% Corporate Corporate Loans 880 878 (0.3%) 2-4% 36% 1,600 35% SME Loans 780 724 ■SME (7.2%) 5-7% 1,200 33% 31% Retail Loans 703 677 34% 33% 30% (3.7%) 5-7% Retail Other Loans 132 160 21.3% 800 Others 400 28% 28% 29% 28% 28% Total Loans 1) 2,495 2,438 (2.3%) 5-7% (%) 4-6% 1-2% 2-4% 5-7% 0 4% 3% 4% 5% 6% 2019 2020 2021 2022 9M23 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. 1) Other loans were included loans through the World Business Group. In 9M23, WBG loans were Bt107bn, increased 30.1% YTD and 63.9% YoY 9M23 2023 Outlook Corporate Loans SME Loans Retail Loans Loan Definition ▪ Loan portfolio was stable from short-term loans, but long-term loan slightly dropped due to customers repayment and postpone drawdown. ■ SME loan outstanding decreased due to balance sheet clean up as well as to control and mitigate credit risk from viable customers; more focus on secured credit customers in 2023 ■ However, KBank still provided various product offerings matched to customers' needs with risk-based offerings ■ Unsecured loan outstanding decreased due to seasonal repayment of Credit Card which hiked at year end. However, spending showed improvement in tourism, transportation and restaurant categories ■ Personal loans grew prudently to control and mitigate credit risk ■ Home loans decreased as per market competition. However, new volume showed improving trend in 3Q23 ■ Continued use of data analytics to continuously improve predictive power of credit model and credit process in order to acquire new customer segments with acceptable risk for both SME and Retail Loans 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 ■ Focus on supporting ESG loans in prospective industries ■ Potential loan growth in some sectors to support business opportunities ■ Grow prudently in line with market situation focusing on secured credit ■ Utilize data analytics to expand credit opportunities in specific industries Support business growth of healthy SME customers and accelerate supports to at-risk SMEs to maximize recovery ■ Provide various product offerings matched to customer needs ■ Grow prudently in line with market situation while maintaining a leading position in the consumer market and being '1st in mind' for our customers and prospects ■ Focus on intelligent lending utilizing data analytics to offer products and promotions aligned with customers' needs ■ Focus on good credit quality customers with acceptable risk and proactively monitor to manage loan portfolio quality ■ Focus on generating additional revenue from existing credit customers บริการทุกระดับประทับใจ Other Loans: Composed of loans through the World Business Group, insurance business (MTL), 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) reclassified to their customer segments. 13 K KASIKORNTHAI Net Interest Margin September 2023 (Consolidated) NIM ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Yield on Earnings Assets and Cost of Fund (%) 5 (%) 8 4 3.62 5.85 Yield on Loans 3.31 3.27 3.21 3.33 6 5.21 4.82 4.71 4.97 3 4.19 3.83 4 3.64 3.79 4.46 Yield on Earnings Assets 2 1 0 2019 2020** 2021 2022 9M23 2 1.23 0.78 1.13 0.59 0.62 Cost of Fund 0 1.14 0.95 Cost of Deposits* 0.71 0.54 0.53 ** 2019 2020 2021 2022 9M23 ■NIM stood at 3.62% in 9M23, increased YoY, mainly due to higher interest rates, despite higher cost of fund from FIDF and higher deposit rate. More than 90% of interest income received in cash. NIM (%) Yield on Earnings Assets (%) Yield on Loans (%) Cost of Fund (%) Cost of Deposits (%), incl DPA 2019 2020 2021 2022 9M22 9M23 1Q23 2Q23 3Q23 3.31 3.27 3.21 3.33 3.26 3.62 3.46 3.63 3.76 4.19 3.83 3.64 3.79 3.70 4.46 4.21 4.47 4.67 5.21 4.82 4.71 4.97 4.85 5.85 5.49 5.91 6.19 1.23 0.78 0.59 0.62 0.59 1.13 1.01 1.14 1.24 1.14 0.71 0.54 0.53 0.52 0.95 0.87 0.94 1.04 Note: Cost of deposits including contributions to the Financial Institutions Development Fund (FIDF) and Deposit Protection Agency (DPA). *The FIDF fee is temporarily reduce from 0.46% to 0.23% for 3 years, according to the BOT announcement in the Royal Gazette, during January 2020 to December 2022. ** 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 14
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