KASIKORNBANK Economic and Subsidiaries Performance Overview slide image

KASIKORNBANK Economic and Subsidiaries Performance Overview

Billion Baht Billion Baht K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Monetary and fiscal expansion raises financial stability concerns In contrast with the Fed, the BOT has maintained interest rate to support the economy amid COVID-19 outbreak Thailand has enough FX reserves to meet all internal and external obligations FX Reserves % BOT Policy Rate Fed Funds Rate -Lower Bound 6.00 Fed Funds Rate -Upper Bound 5.00 4.00 3.00 2.00 Net Forward Position $ Billion $ Billion ■3 months of imports Reserves backing banknotes ■ST external debt 300 300 $245.8 bn $251.9 bn 250 250 200 200 73.9 150 216.6 220.8 150 $223.92 Billion 68.4 100 100 50 50 81.6 1.00 0.00 0 29.2 2022-end 31.1 0 July 2023 Source: BOT and KResearch Last Update: August 10, 2023 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 Jan-22 Jan-23 Sources: BOT, Federal Reserves and KResearch (as of August 2023) Excess liquid assets in Thai commercial banks slightly fell Million Baht 5,000,000 ■Due to high inflationary pressures, the Fed decided to raised its policy rate to 5.25-5.50% in July 2023 ■Monetary easing leads to a massive exodus of capital from 4,000,000 emerging markets and worsens exchange rate depreciation in 2022. However, Thailand's external stability will likely be 3,000,000 maintained ■The Thai banking system excess liquidity fell slightly. The CAR was good (19.02% as of June 2023) and NPL ratio was still manageable (2.68% as of 1Q23), with net profits of Bt123.1 billion in 1H23 %LCR 191.9 190.2 187.7 183.5 184.7 183.8 176.9 178.1 173.8 2,000,000 2016 2017 2018 2019 Liquid Assets 2020 2021 2022 1Q23 2Q23 -LCR (%) Note: BOT has imposed the Liquidity Coverage Ratio (LCR) Framework which replaces the maintenance 6% reserve requirement. Regarding the LCR framework, all banks shall maintain high-quality liquid assets not less than net expected cash outflow over the next 30 days. The LCR was implemented on January 1, 2016, with the minimum requirement set at 60%, rising in equal annual steps of 10 percentage points to reach 100% on January 1, 2020 บริการทุกระดับประทับใจ K KASIKORNTHAI Other Figures Thai Bond Market Size (Gov't and Private bonds) ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Bond Yields 18,000 100 88.8 91.0 90.9 91.8 16,000 14,000 63.3 64.4 64.8 69.4 69.6 70.2 72.9 74.5 73.6 78.1 78.7 12,000 10,000 53.9 52.4 8,000 6,000 4,000 2,000 0 × ៩ ៩ ៩ ៖ 8 8 3 8 8 គឺ 90 % 3.5 3.0 2.5 2.1 2.2 2.3 2.3 2.4 2.4 2.4 2.5 2.5 2.6 2.6 .8 % to GDP 2.0 1.5 1.0 0.5 0.0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1H23 Thai Bond Outstanding (LHS) Bond Market Size to GDP (RHS) 6M 1Y -*-Dec 19 2Y 3Y 4Y -Dec 20 -⚫ Dec 21 5Y 6Y 7Y 8Y 9Y --Dec 22 10Y 15Y Aug 10, 2023 1,200 1,000 Foreign Holdings of Thai Bonds 800 600 4.0% 5.9% 400 -1.0% 1.5% 1.1% 200 49 76 0 2007 2009 2011 8.3% 8.4% 2013 Current Account and FX Reserve USD Billion 50,000 USD216.6 bn (2022-end) USD Billion 300,000 10% 8.2% 7.9% 7.4% 7.1% 6.9% 6.9% 8% 6.0% 6.4% 6.1% 6.3% 6% 4% 2015 2017 2019 % of Thai Bond Market (RHS) 2021 0% Jul-23 % of Total Bond Outstanding 40,000 250,000 30,000 200,000 20,000 150,000 10,000 100,000 0 -10,000 50,000 USD-14.7 bn (2022-end) -20,000 0 1993 1997 2001 2005 2009 2013 2017 2021 Foreign Holding Outstanding (LHS) Source: BOT and ThaiBMA บริการทุกระดับประทับใจ Current Account (LHS) --FX Reserves (RHS) 166 165
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