KBank's Strategic Acquisition in Muang Thai Group Holding

Approval Process Post Approval K KASIKORNTHAI KBank Credit Risk Management Process ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK The Bank continues to enhance credit risk management processes to promote risk strategies with justified risk-return tradeoff within the rapidly changing economic environment Portfolio Management ■ Determine portfolio-by-design taking into account risk-adjusted return trade-off ■Manage portfolio according to the Bank's risk appetite and concentration risk management (Country, Industry, Large Customer Group) ■ Perform stress testing to identify impacts to portfolio and proactively prepare appropriate management actions Origination Monitoring Collection & Recovery> ■ Enhance decision making/support tools for more efficient return and risk evaluation ■ Setup specific prescreening criteria for potential industries ■ Enhance customer income validation process ■ Monitor customer behavior and detect early warning signs ■Leverage National Credit Bureau information for effective credit monitoring ■ Ensure credit condition compliance (e.g. insurance, capital injection, project progress) ■Take prompt action to prevent credit deterioration บริการทุกระดับประทับใจ ■ Efficient collection and follow-up of customers with late payments ■Restructure viable customers to prevent NPLs ■Foreclose pledged assets to recover loan loss K KASIKORNTHAI KBank Credit Approval Process Corporate Credit Underwriting Dept. Policy Lending ⚫ Sufficiency of cash flow • Growth trends and ability to compete • Management experience and depth SME (Medium) Leverage, Liquidity, Asset Quality, ESG factors ⚫ Credit Risk Mitigation • Facilities Structure SME (Small & Micro) Retails (Housing) SME Credit and Housing Loan Approval Dept. Formula Lending Customer Integrated Credit Scorecard • Application Score • FICO Score ⚫ Bureau information/Credit history ⚫ Debt service capacity • LTV ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK Retail (Unsecured Loans) Payment Service Fulfillment Department Formula Lending • Customer Integrated Credit Scorecard • Application Score • Transactional Score ⚫ FICO Score • Bureau information/Credit history • Debt service capacity ⚫ Legal document • Limit set up Credit Service Fulfillment Dept. Payment Service Fulfillment Department ⚫ Legal document ⚫ Limit set up Bank-wide Risk Asset Review Asset Quality Management Operation Dept. • Customer Review by Relationship Manager (RM) ⚫ Credit Monitoring and Asset Management Unit to facilitate RM in customer monitoring . Credit Clinic • Automated collection system Efficiently utilize available behavior scoring and collection tools i.e. SMS, automated letter generation, phone-based collection Note: FICO Fair Isaac Corporation บริการทุกระดับประทับใจ 64 40 63

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