KBank Subsidiaries and ASEAN Economic Strategy slide image

KBank Subsidiaries and ASEAN Economic Strategy

K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Economic Condition Highlights: CAPEX and Investment Cycle Capacity Utilization by Key Industries Integrated Circuits & Parts 74.4 Investment value of BOI-approved applications (Total)* Motor Vehicles 48 7 Basic Metal 46.4 Rubber & Plastic Products 46 Chemical & Chemical Products 77.2 Investment Value (Bt bn) 1 809.4 867.5 900 (+12%) (+7%) 631.1 549.5 700 (-27%) (-13%) 447.4 (-19%) 500 300 100 -100 89.4 (-34%) 2015 2016 2017 2018 2019 1Q20 Investment value of BOI-approved applications (by Industry)* Paper and Paper Products Textiles 415 Tobacco Food Baverages 75.1 58.6 2017 2018 56.6 ■2019 56.0 ■1H20 T 0 20 40 60 80 100 ■Avg 16-18 Source: The Bank of Thailand (BOT), The Ministry of Commerce (MOC), and Office of Industrial Economics (OIE) (Data as of March 2020) Investment Value (Bt bn) 500 400 300 200 100 0 12.39 0 Agriculture Minerals&Ceramics Light Industry ■ 2015 2016 Metal Processing Electronics & Electrical Chemical Plastic Paper W Service & Infrastructure Technology and Innovation 2017 2018 ■2019 1Q20 Note: *Figures above indicate investments of approved projects requesting investment promotion benefits from BOI บริการทุกระดับประทับใจ 167 K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Property Market: Market still cautious, weak supply on the 1st quarter could be expected Supply Side: New Housing Completions and New Projects Launched in BMR* Outstanding Mortgage Loans to Individuals and Property Developers to GDP 170 1,000 Units 150 130 125 110 90 70 50 44 431 30 10 -10 1997 1998 1999 2000 2001 1314 2002 68 49 46 5150 2003 2004 ■New Housing Completions 117 102 132 1314 131 124 127 115 108 11 114 125112112 101 86 81 68 75 66 2005 2006 2007 2008 2009 2010 2011 2012 2013 New Projects Launched 2014 2015 2016 2017 2018 2019 2M19 2M20 Demand Side: Transferred Properties in BMR* 1,000 Units 250 200 178 146 161 151 159 182 174 196 197 198 175 163 150 100 50 0 2008 2009 2010 2011 2012 2013 % (YoY) Single House 6.3%; Townhouse 6.3% 25.0 20.0 15.0 10.0 5.0 0.0 -5.01992 -10.0 -15.0 2014 2015 2016 2017 2018 Price Growth of Properties Avg. 5-year price growth before the crisis (1992-1996): Land 9.4%; 1993 1994 1995 1996 1997 199 1099 -Land 2019 Avg. price growth in last 5-years (2015-2019): Land 4.2%; Single House 2.8%; Townhouse 3.9% 26 26 - 2M19 2M20 2.6 5.5 5.3 000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010r 2011 2012 2013 2014 2015 2016 2017 2018 2019 2M19 2M20 -Single House Townhouse % of GDP 30 20 16.8 16 16 10.4 10 -4.6 0 1993 1996 1999 2002 2005 2008 2011 Loans to Property Developers 2014 2017 2Q20 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 (including contractors) to GDP was 4.8% in 2Q20, still lower than pre-crisis level ■Supply Side: Overall new housing projects launched in 2M20 sharply decreased 30.1% YoY, due to high accumulated stocks of property developers and unfavorable of economic situation ■Demand Side: Number of property transactions in 2M20 rose only 0.4% YoY, despite government stimulus measure of cash back for down payment and reducing home ownership transfer fee, as buyers still cautious ■Prices: single house and townhouse prices in 2M20 (pre Covid-19) rose as developers and consumers shifted to favor low-rise projects, while land prices increased slightly 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 ** Measures to support Property sector during October 2015 - April 2016, such as cutting transfer fees and mortgage fees and tax deduction for the first five years ■Mortgage NPLs among Thai commercial banks rose to 4.04% in 2Q20, from 3.71% in 4Q19 บริการทุกระดับประทับใจ 168
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