KASIKORNTHAI Regulatory Capital and Financial Performance Update slide image

KASIKORNTHAI Regulatory Capital and Financial Performance Update

Billion Baht Billion Baht K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Monetary and fiscal expansion raises financial stability concerns In contrast to 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 % BOT Policy Rate Fed Funds Rate -Lower Bound 6.00 Fed Funds Rate -Upper Bound 5.00 4.00 3.00 2.00 FX Reserves ■Net Forward Position $ Billion $ Billion ■3 months of imports Reserves backing banknotes ■ST external debt 300 300 $241.3 bn $245.8 bn 250 250 200 200 71.8 150 216.6 211.2 150 $217.55 Billion 68.4 100 100 50 50 77.4 0 29.2 2022-end 30.1 0 July 2023 Last Update: October 27, 2023 1.00 0.00 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) ■Due to high inflationary pressures, the Fed decided to raise its policy rate to 5.25-5.50% in November 2023 ■Monetary easing leads to a massive exodus of capital from emerging markets and worsens exchange rate depreciation in 2023. However, Thailand's external stability will likely be maintained ■Thai banking system excess liquidity rose slightly. CAR was good (19.54% as of August 2023) and NPL ratio was still manageable (2.67% as of 2Q23), with net profits of Bt123.1 billion in 1H23 Source: BOT and KResearch Excess liquid assets in Thai commercial banks slightly rose Million Baht 5,000,000 183.5 184.7 4,000,000 176.9 178.1 173.8 3,000,000 %LCR 191.9 190.3 191.3 187.7 184.1 2,000,000 2016 2017 2018 2019 2020 Liquid Assets 2021 2022 1Q23 2Q23 Aug-23 ―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) 18,000 100 88.8 91.0 90.9 91.8 16,000 90 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 53.9 52.4 10,000 8,000 6,000 4,000 2,000 0 • 3 3 8 6 8 8 3 8 8 គឺ % 4.0 3.5 % to GDP 1,200 1,000 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) 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 ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Bond Yields 3.6 3.0 2.4 2.4 2.5 2.7 2.8 2.9 2.9 3.0 3.1 3.2 3.2 2.5 2.0 1.5 1.0 0.5 0.0 6M 1Y -Dec 19 2Y 3Y 4Y 5Y Dec 20 - Dec 21 6Y 7Y 8Y --Dec 22 9Y 10Y 15Y Nov 3, 2023 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% 5.7% 6% 4% 2% 0% % 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 -20,000 2015 2017 2019 2021 Oct-23 1993 1996 1999 2002 2005 2008 2011 USD-14.7 bn (2022-end) 2014 2017 2020 0 % of Thai Bond Market (RHS) Current Account (LHS) --FX Reserves (RHS) Foreign Holding Outstanding (LHS) Source: BOT and ThaiBMA บริการทุกระดับประทับใจ 166 165
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