KBank Subsidiaries and ASEAN Economic Strategy slide image

KBank Subsidiaries and ASEAN Economic Strategy

K KASIKORNTHAI Basel III: BOT minimum capital requirement Transitional Arrangement for Capital Requirement All dates are as of 1 January Conservation Buffer* D-SIBS Buffer** CET1: Min. Common Equity Tier 1 Ratio (after conservation buffer and D-SIBS buffer) Tier 1: Min. Tier 1 Ratio (after conservation buffer and D-SIBS buffer) CAR: Min. Total Capital Ratio (after conservation buffer and D-SIBS buffer) Countercyclical Buffer (Subject to the BOT consideration)*** Leverage Ratio (Tier 1/Exposure) ≥ 3% ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 2016 2017 2018 2019 2020 2021 2022 2023 0.625% 1.25% 1.875% 2.5% 2.5% 2.5% 2.5% 2.5% 0.5% 1.0% 1.0% 1.0% 1.0% 5.125% (4.5%+0.625%) 5.75% (4.5%+1.25%) 6.375% 7.5% 8.0% 8.0% 8.0% 8.0% (4.5%+1.875%) (4.5% +2.5% +0.5%) (4.5%+2.5% +1%) (4.5%+2.5% +1%) (4.5%+2.5% +1%) (4.5%+2.5% +1%) 6.625% (6.0%+0.625 %) 7.25% (6.0%+1.25%) 7.875% (6.0%+1.875%) 9.0% (6.0%+2.5% +0.5%) 9.5% (6.0%+2.5% +1%) 9.5% (6.0% +2.5% +1%) 12.0% (8.5%+2.5% +1%) 9.5% (6.0%+2.5% +1%) 12.0% (8.5%+2.5% +1%) 9.5% (6.0%+2.5% +1%) 12.0% (8.5%+2.5% +1%) 9.125% (8.5%+0.625%) 9.75% (8.5%+1.25%) 10.375% 11.5% (8.5% +1.875%) (8.5% +2.5% +0.5%) 12.0% (8.5%+2.5% +1%) Parallel run period 0.0-2.5% 0.0-2.5% 0.0-2.5% Effective in 2023 (Tentative) Liquidity Coverage Ratio (LCR)**** (Liquid Assets/Net Cash Outflows within 30 days) ≥ 100% LCR ≥ 60% LCR ≥ 70% Net Stable Funding Ratio (NSFR) (Available Stable Funding / Required Stable Funding) ≥ 100% Effective (Phase-in) LCR ≥ 80% LCR ≥ 90% Effective in Jul-18 NSFR ≥ NSFR ≥ 100% 100% LCR ≥100% LCR ≥100% LCR ≥ 100% LCR 100% NSFR≥ 100% NSFR ≥ 100% NSFR ≥ 100% NSFR ≥ 100% Note: * Conservation Buffer is to ensure adequate capital to absorb losses during periods of financial and economic stress ** D-SIBS (Domestic Systemically Important Banks) Buffer is to limit negative impact associated with the distress or failure of banks on domestic financial system and economy *** In periods of excess aggregate credit growth, BOT may require banks to set a Countercyclical Buffer up to 2.5% to achieve the broader macro-prudential goal of protecting the banking sector **** KBank's Average Liquidity Coverage Ratio (LCR) are 189%, 194%, 239% and 235% as of December 2019, June 2019, December 2018 and June 2018, respectively; more details can be found on Basel III - Pillar 3 Disclosures Report Remark: Banks with a capital ratio less than the required regulatory buffers will face various degrees of constraint on earning distribution Source: The Bank of Thailand บริการทุกระดับประทับใจ Tier 1 capital Tier 2 capital K KASIKORNTHAI Capital Definition Change (Consolidated) Basel II Tier 1 • • Issued and paid-up share capital Premium on ordinary shares Common Equity Tier 1 ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Basel III • Issued and paid-up share capital* . Premium on ordinary shares Legal reserve and Retained earnings • Hybrid Tier 1 (<15% of total Tier 1) • Minority interest, Preferred stock Deduction of Tier 1 • Goodwill, Treasury stock, Deferred tax asset Investment in insurance • (50% Tier 1 and 50% Tier 2) Long-term subordinated debt • Legal reserve and Retained earnings 1 2 3 ⚫ Other comprehensive income (OCI) e.g. surplus on bond and equity FVTOCI (100%), surplus on land & premises (100%) Additional Tier 1 Hybrid Tier 1 with loss absorbency feature** . Minority interest, Preferred stock** Deduction of Common Equity Tier 1 . Goodwill, Deferred tax asset Intangible assets • Investment in insurance (Threshold Deduction) - Amount ≤ 10% of CET1, %RW = 250% (KBank's Case) - Amount > 10% of CET1, deduct CET1 Long-term sub-debt with loss absorbency feature* • General Provision *** • Hybrid Tier 1 (exceeds from Tier 1 limit) • General Provision Net Treasury Stock • Surplus on AFS equity (45%) 1 ** Currently, KBank has no Hybrid Tier 1, Preferred Stock. • Surplus on land & premises (70% and 50%) *** Long-term subordinated debentures must have loss absorbency feature, if issued since 1 January 2013 บริการทุกระดับประทับใจ 122 121
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