Creating the Future of Finance - Breakthrough Innovation slide image

Creating the Future of Finance - Breakthrough Innovation

K KASIKORNTHAI Y2022 Financial Performance Consolidated ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK NIM 2021 Actual Y2022 Actual Y2022 Targets 3.21% 3.33% Notes (Y2022) Y2022 NIM increased YoY due to higher yield on loans as small 3.15-3.30% ticket lending (SME and Retail) increased, and higher lending rates. More than 90% of interest income received in cash. Loan Growth 7.88% 3.03% 6-8% Net Fee Income 7.01% -6.89% Growth* Y2022 loans grew YoY mainly from corporate business and small ticket lending (SME and Retail) while home loan decreased. However, loans decreased in 2H22 from NPL outflow management. Y2022 net fee income decreased YoY mainly due to a decrease in fees from fund management and brokerage business in line with Flat growth market conditions and drop in transaction service fee rate, while fees from card business increased according to customer spending. Cost to Income Ratio** 43.49% 43.15% Low to Mid-40s Credit Cost per 173 bps year (bps) NPL Ratio (Gross)*** ROE**** ROA Y2022 cost to income ratio slightly decreased YoY from net total income increased, while higher operating expense (mainly from marketing and IT expense). Focus on cost management and productivity improvement, with new investments for future growth. Credit cost increased YoY due to prudent consideration of the 211 bps Up to 160 bps uncertain economic outlook and business strategy. NPL ratio dropped from proactively embarking and cooperating with professional partners to enhance the effectiveness of NPL 3.7-4.0% management. Asset quality is manageable with closely monitored and constantly reviewed. 3.76% 3.19% 8.44% 0.98% 7.38% 0.86% N/A N/A Note: * Net Fee Income = Fees and Service Income - Fees and Service Expense; ** Cost to Income Ratio = Total Other Operating Expenses to Total Operating Income - net (Total Operating income less Underwriting Expenses); *** NPL Ratio (Gross) = NPL (gross) to total loans; NPL (gross) used in the calculation are loans to general customers and loans to financial institutions that are non-performing loans; total loans used in the calculation are loans to general customers and loans to financial institutions **** ROE = Net profit deducted Additional Tier 1 dividend after tax/Average total equity excluded Additional Tier 1 บริการทุกระดับประทับใจ K KASIKORNTHAI Y2023 Financial Targets ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 7 NIM Consolidated Loan Growth Net Fee Income Growth* Y2022 Actual 2022 2023 NDR Targets NDR Targets 3.33% 3.15-3.3% 3.3-3.45% 3.03% 6-8% 5-7% -6.89% Flat Flat Low to Mid-40s Cost to Income Ratio** 43.15% Low to Mid-40s Credit Cost per year 211 bps (bps) NPL Ratio (Gross)*** ROE**** ROA 3.19% 7.38% 0.86% Up to 160 bps 3.7-4.0% < 3.25% N/A N/A N/A N/A Notes (Y2023) NIM rising due to higher interest rates and small ticket size lending strategy, despite higher FIDF contribution. Loans increase from regional expansion strategy and more corporate lending; continued focus on quality using effective data analytics capability. Net fee income may decrease from lower conventional transaction fees due to changing consumer behavior; wealth management business continues to expand. Moderate revenue growth; projecting higher potential investment expenses for future growth; continuing cost management and productivity improvements. Credit cost peaked in Y2022. Continue proactive asset quality 175-200 bps clean up and prudent financial policy; credit cost will remain high but gradually drop in Y2023. The credit cost will cover future uncertainties, in line with global economic circumstances and business strategy. Note: *Net Fee Income Fees and Service Income - Fees and Service Expense; ** Cost to Income Ratio = Total Other Operating Expenses to Total Operating Income - net (Total Operating income less Underwriting Expenses); *** NPL Ratio (Gross) = NPL (gross) to total loans; NPL (gross) used in the calculation are loans to general customers and loans to financial institutions that are non-performing loans; total loans used in the calculation are loans to general customers and loans to financial institutions **** ROE = Net profit deducted Additional Tier 1 dividend after tax/Average total equity excluded Additional Tier 1 บริการทุกระดับประทับใจ 8
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