2022 Performance and Sustainability Focus
Starting to see a payoff from pre-fund strategy after a short-term
impact on NII
tub
+23 bps QoQ
4.69% +21 bps YoY
4.52% +1 bps YoY
4.48%
4.47%
4.46%
4.42%
Loan Yield 4.51%
Pre-funded strategy
+3 bps QoQ
0.75%
0.78%
0.81%
0.79%
0.82% +7 bps YoY
0.80%
+3 bps YoY
Cost of Deposit 0.77%
Y2021
4Q21
1Q22
2Q22
3Q22
4Q22
Y2022
•
During low-rate environment, TTB took initiatives to pre-position our B/S ahead of rising rate environment.
• Since 4Q21, we have strategically acquired Up and Up time deposit, a 24-month Time Deposit with 6-month step up interest feature, to build and lock in term funding base.
Although this strategy put pressure on deposit cost, it started to pay off when entering into rising rate cycle. In 2022, TTB could grow deposit by 4.5% and cost of deposit
rose by 3 bps YoY.
Loan yield started to improve in 2H22 after we successfully redeployed funding from low-yield corporate lending to higher yield areas of HP and mortgage to maintain our
market share as well as consumer lending especially in Cash Your Car (CYC), credit card and personal loans. As a result of such a strategy, yield improved significantly
during 4Q22.
Our strategy to grow in HP and mortgage as well as our strategy to increase retail high yield loans would be supportive factors for loan yield recovery for year 2023.
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