KASIKORNTHAI Regulatory Capital and Financial Performance Update slide image

KASIKORNTHAI Regulatory Capital and Financial Performance Update

1,000 Units 170 ■New Housing Completions Supply Side: New Housing Completions and New Projects Launched in BMR* 150 ■New Projects Launched 130 K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Property Market: The first eight months of 2023 saw a drop in the launch of new projects because demand declined, and unsold units remained high. % of GDP 110 117 90 81 70 66 68 50 -10 322 30 10 131133 124 111 125 14 114 119 - 102 132 108 133 127 - 118 86 115 112 101 73 8160.5 30 Outstanding Mortgage Loans to Individuals and Property Developers to GDP 25 20 16.8 2006 2007 2008 2009 2010 2012 2013 107 92 70.6 63.0 0 15 26.7 05 10.4 10 2015 2016 2018 Demand Side: Transferred Properties in BMR* 2020 2021 2022 4.1 1,000 Units. 250 200 146 161 178 151 159 182 174 196 197 206 197 175 163 166 150 100 50 0 195 8M2022 119 115 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 8M2022 8M2023 8M2023 1993 1996 1999 2002 2005 2008 2011 2014 2017 2020 1H23 ---Loans to Property Developers Housing Loans ■Mortgage loans to GDP are higher than pre-crisis level, due to factors such as changes in consumer behavior, intense competition among banks, and a more accessible credit market ■ Outstanding loans granted to property developers to GDP was 4.1% in 1H23, lower than pre-crisis level ■Supply Side: The number of new housing projects launched in 8M23 fell by 10.8% YoY. Beside the high base of comparison, slowing recovery of consumers' purchasing power as well as high unsold units caused developers to remain cautious ■Demand Side: Property sales during 8M23 decreased by 3.9% YoY as a result of a drop in demand. A cautious approach to home buying may be seen later in 2023, due to the fragile economy, high levels of family debt, and rising mortgage loan rates ■Mortgage NPLs among Thai commercial banks was at 3.16% in 2Q23, compared to 3.01 in 2022 and 3.52% in 2021 Sources: National Economic and Social Development Council (NESDC), BOT, Real Estate Information Center (REIC), Agency for Real Estate Affairs (AREA), and KResearch Note: *Including Condominium, Single House, and Townhouse; BMR = Bangkok and Metropolitan Area บริการทุกระดับประทับใจ K KASIKORNTHAI Household Borrowing Household Borrowing to GDP ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK % NPL for Consumption Loans of Thai Commercial Banks % of Loans 888 Old Definition % of NGDP 100 New Definition 25 94.2 94.7 91.4 90.7 90.7 84.4 84.0 82.7 84.1 76.1 80 60 59.3 7.1 10.6 9.4 9.7 8.8 7.5 7.6 8.3 13.4 13.3 12.0 12.7 12.3 12.2 10.5 10.5 10.7 12.8 12.7 12.8 220 40 28.9 24.4 8.8 18.9 23.1 23.1 22.3 22.3 25.3 25.3 24.4 24.2 24.2 2505 15 10 22.3 19.6 0 20 11.2 15.1 7.7 29.5 33.5 33.7 33.5 34.3 24.5 38.4 38.7 36.4 35.9 35.8 11.9 13.2 13.9 0 1994 1996 1997 2010 2012 2014 2016 2018 2019 2020 2021 2022 1Q23 2Q23 Commercial Banks SFIs Saving Cooperatives Non-Bank Fls Others Total Old Definition: Data from 1991 - 1997: lending from commercial banks and SFIs to individual persons for consumption only New Definition: Data from 2010 onwards: takes into account individual persons' outstanding loans from all types of financial institutions, including savings Co-ops and non-banks Cross-Country Comparison of Household Debt (as of 2022) Debt Service Ratio of Thai households % of GDP % 50 117.8 108.2 40 86.9 81.2 66.4 61.9 30 27.9 28.1 27.2 28.4 29.1 27.0 23.0 56.1 20 Australia South Korea Thailand Malaysia US China Source: CEIC and KResearch Singapore 10 0 IIII 2009 2011 2013 2015 2017 2019 2021 Source: NSO and KResearch 2.71 2001 2004 2007 2010 2013 2016 2019 2022 2Q23 ■ Household debt to GDP stayed at 90.7% in 2Q23, and is expected to remain high in 2023 ■Household borrowing to GDP is higher than pre-crisis level, due to factors such as changes in consumer behavior, intense competition among banks, and a more accessible credit market ■Thailand's household debt to GDP is comparable to other countries*; debt service ratio of Thai households is still well below 40%, indicating the household debt situation is unlikely to trigger any problems in the foreseeable future ■NPL ratio for consumption loans of commercial banks rose to 2.71% in 2Q23 from 2.62% in 4Q22 Source: BOT, Bank for International Settlements (BIS), National Statistical Office (NSO), CEIC and KResearch บริการทุกระดับประทับใจ 160 159
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