2022 Performance and Sustainability Focus slide image

2022 Performance and Sustainability Focus

Strategically building strong deposit franchise amid rate hike cycle Total Deposit +1.9% QoQ TD+NCD 1,360 bn 12% 1,374 bn 15% 1,399 bn +4.5% YTD 17% 47% 45% 43% Hybrid Saving 34% ~41% CASA 34% ~40% 34% CASA ~40% CASA Current 7% 6% 6% Dec-21 Sep-22 Dec-22 % Retail deposits 74% 73% 73% tub • • • Key deposit strategy in 2022 was to prepare our deposit structure ahead of rising rate environment. Since 4Q21, we started to build term-funding base and strategically shifted a growth driver from our flagship Hybrid deposits toward time deposit. Key objective is to build and secure term-funding base for future loan growth at lower cost before rate hikes. "Up and Up" is our tactical time deposit (TD) product for this strategy. Its 6-month step up interest rate features is attractive for customers while for the Bank this feature is superior than traditional time deposits in terms of deposit cost optimization. Overall, we could grow time deposit by 46.8% in 2022. The portion of time deposit rose from 12% in 2021 to 17% of total deposit while low-cost CASA at 40%. Our flagship transactional deposit "All Free" continued to grow by +4.8%. The decline in Hybrid deposit was due partly to the outflow to Up and Up. Moving into 2023, we will continue grow deposit franchise through our flagship products and build new ecosystem that would help we penetrate more new-to-bank customers and use TTB as their main bank. 10
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