2022 Performance and Sustainability Focus
Prudent loan staging with higher LLR buffer
DPD Profile VS Loan Staging
Internal data for managerial view - Breakdown as % of Loan principals (excluded interbank)
4.0%
4.0%
LLR
Total loans*
3.1%
DPD
Staging
DPD
Staging
DPD
Staging
DPD
4.1%
>20% increase in LLR
from pre-Covid
tub
Staging
DPD Profile
No DPD
Bucket 1
DPD 1-30
DPD 31-60
Bucket 2
DPD 61-90
Bucket 3
DPD >90
Loan Staging
94.5%
93.4%
88.9%
93.2%
93.8%
88.6%
88.5%
Stage 1
87.1%
Stage 2
Stage 3
2.7%
2.8%
Pre-Covid
Dec-19
Note: * include accrued
10.1%
2.8%
3.6%
3.0%
Dec-21
8.1%
3.0%
3.7%
3.1%
8.5%
3.0%
8.4%
3.9%
2.3%
3.0%
interest receivables and EIR
Sep-22
Dec-22
The Bank's 7 scheme picks up days past due within stages and imposes bucket and PD shifts. Our stage 2 loans, therefore, sufficiently cover early indicators of
customers' behavior in debt service ability.
With improving profitability, we further de-risked our portfolio and qualitatively downgraded weak loan to Stage 2 and stage 3 in 4Q22, reflected by the gab between
the % of stage 3 and the % of bucket 3.
On top of the prudent staging policy, we continue to build LLR buffer. Compared to pre-Covid-19, LLR rose by more than 20% to THB 57.4 bn. LLR/total loans
therefore rose from 3.1% as of Dec-19 to 4.1% as of Dec-22.
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