KBank's Strategic Acquisition in Muang Thai Group Holding slide image

KBank's Strategic Acquisition in Muang Thai Group Holding

K KASIKORNTHAI Expected Credit Loss and Credit Cost March 2023 (Consolidated) Impairment Loss of Loans and Debt Securities Expected Credit Loss ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Credit Cost (Bt bn) (bps) 60 51.92 I 50 43.55 350 40.33 300 40 34.01 250 205 211 205 174 173 30 200 150 20 12.69 100 10 50 0 0 2019 2020 2021 2022 1Q23 2019 2020 2021 2022 1Q23 In 1Q23, we detected deterioration, worth 6% of ECL, in a single large corporate loan. We took immediate action, covering the potential loss with management overlay. The level of management overlay temporarily dropped but stayed within our 15-20% comfort range In 2023, credit cost will hold in the range of 175-200 bps. We expect extra effort will be needed to keep credit cost within this range because of our ongoing, proactive asset quality cleanup efforts and this one-time deterioration in a large corporate loan. However, credit cost may hit the upper bound of the target range or slightly exceed it, rising to no more than 210 bps Expected Credit Loss (Bt bn) 2019 34.01 2020 43.55 2021 40.33 2022 51.92 1Q22 9.34 1Q23 12.69 4Q22 22.78 1Q23 12.69 (Impairment Loss of Loans and Debt Securities) Credit Cost (bps) 174 205 173 211 153 205 368 205 บริการทุกระดับประทับใจ K KASIKORNTHAI Bad Assets Resolution March 2023 (Consolidated) (Bt bn) 70 60 50 40 30 20 10 5.5 4.3 3.9 5.0 0 10.3 7.3 Write-offs ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK NPL Portfolio Sales (Bt bn) 80 72.0 59.0 70 60 50 40 35.6 26.4 27.4 30 15.4 19.9 10.7 اتاتت 21.5 20 11.4 8.4 6.4 7.1 6.8 10 2008-2015: 2021: no bulk NPL sales no NPL sale 0 1.1 2007 2017 2021 2022 1Q23 NPL sales 10.1 9.6 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1Q23 Outstanding Foreclosed Properties 2008 2015 2016 2018 2019 2020 legal claim amount, not book value of transferring amount NPL sales mostly to AMCS except 2007: Standard Bank Asia Limited and Morgan Stanley Emerging Markets Inc., 2016: JMT Network Services PCL, and 2022: Most NPL sales to JK Asset Management Sales of Foreclosed Properties (KBank only) (Bt bn) 16.7 15.9 15.1 31.5 28.4 24.9 12.5 12.1 13.4 16.1 17.4 19.6 (Bt bn) 54.7 54.1 46.3 6.5 5.4 5.6 5.0 4.8 4.1 4.0 4.3 2.8 3.0 2.9 3.0 2.4 13.1 1.8 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1Q23 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1Q23 Note: On September 11, 2013, the Bank was formally notified of its final loss sharing portion under the asset transfer agreement with TAMC established in October 2001. This amounted to Bt206mn. An amount of Bt1,159mn relating to the provision for losses recorded in prior years has been reversed through profit or loss in 2013. บริการทุกระดับประทับใจ 84 83 83
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