2022 Performance and Sustainability Focus slide image

2022 Performance and Sustainability Focus

Better performing YoY for most strategic fee products, except MF fee Breakdown Strategic Non-NII Products Bancassurance fee * (Included ttb broker) THB million tub 1,579 Mutual fund fee 433 TF and FX fee +5% QoQ +11% YoY 1,325 1,613 1,671 1,758 6,368 +9% YoY 5,847 2,448 -4% QoQ -34% YoY -47% YoY 1,299 393 322 299 286 -9% QoQ -1% YoY 1,558 1,687 +8% YoY 404 448 400 440 400 LG fee +2% QoQ +9% YoY 547 573 139 138 136 148 151 Loan-related fee +5% YOY +66% YoY -9% QoQ 336 +280% YoY 203 23 66 89 95 86 4Q21 1Q22 2Q22 3Q22 4Q22 2021 2022 ■ 2022 strategic fee engines improved YoY, boosted by BA fee and other strategic commercial fees. • However, MF fees remained a challenge and still suffered from weak market sentiment and is the key reason of YoY drop in net fee income while other fee engines showed recovery trend. Retail fees: Bancassurance maintained good momentum on the back of foundation upgrade, changing service model, offering variety product mix. Auto-bancassurance also showed good traction in 4Q22 during Motor Expo in November. Commercial fees: Overall flagship commercial fees continued to grow YoY. Growth in loan related fee was aligned with better business volume following country reopening. TF and FX fee increased from high customers' volume when compared to previous year. However, with Thai Baht appreciation to its strongest level in December 22, exporters started to delay hedging activities. Moreover, Thailand's export and import volume dropped from 3Q22. As a result, FX fee in December declined. In 2023, the Bank plans to capture potential cross-selling opportunity from Merged Bank's customer base and enhance alternatives fee incomes from ecosystem's initiatives towards new digital sales and new service model platform. Commercial fees would come from converting acquired loans to fee income to improve fee-to-assets. *TMBThanachart Broker (ttb broker), our fully owned subsidiary - operating non-life brokerage business, has become increasingly important to auto car insurance. The plan is to move car insurance renewal to service at ttb broker and improve sale efficiency in branch staffs. 14
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