KASIKORNBANK Economic and Subsidiaries Performance Overview
K
KASIKORNTHAI
1H23 Financial Performance
Consolidated
NIM
1H23 Actual Y2023 Targets
43.37%
42.94%
Flat
Low to
Mid-40s
2Q23 Actual
3.63%
3.54%
3.3-3.45%
Loan Growth
-0.64% QoQ
-1.84% YTD -1.84% YTD
-1.61% YoY
5-7%
Net Fee Income
Growth¹)
-5.31% YoY
-4.93% QoQ
-6.77% YoY
Cost to Income
Ratio²)
Credit Cost per
208 bps
206 bps
year (bps)
175-200
bps
NPL Ratio
3.20%
3.20%
< 3.25%
(Gross) ³)
ROE4)
ROA
Note: 1) Net Fee Income
8.82%
1.03%
8.65%
1.02%
N/A
N/A
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开泰银行 KASIKORNBANK
Notes (1H23)
NIM increased YoY mainly due to higher interest rates, despite higher cost
of fund from FIDF and higher deposit rate. More than 90% of interest
income received in cash.
YTD loans decreased from SME, Credit Cards, Personal loan, and from
NPL outflow management, while Regional and KLeasing increased.
Net fee income decreased YoY from Brokerage and Fund Management
businesses in line with market conditions, and a drop in transaction service
fees.
Cost to income decreased YoY from net total income increased, despite
higher operating expense (mainly due to employee expenses from cost of
living subsidy measures which were one-time expenses). Focus on cost
management and productivity improvement, with new investments for future
growth.
Since 1Q23, the level of management overlay temporarily dropped from a
one-time deterioration in a large corporate loan, but stayed within our range
of comfort of 15-20%. Management overlay will be built up going forward,
depending on the economic situation.
2023 credit cost will remain high, and may slightly exceed the target range,
but rising to no more than 210 bps, due to ongoing, proactive asset quality
cleanup efforts, and a one-time deterioration in a large corporate loan.
Fees and Service Income - Fees and Service Expense; 2) Cost to Income Ratio = Total Other Operating Expenses to Total Operating Income - net (Total Operating income less Underwriting
Expenses); 3) 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; 4) ROE = Net profit deducted Additional Tier 1 dividend after tax/Average total equity excluded Additional Tier 1
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7
K
KASIKORNTHAI
Y2023 Financial Targets
NIM
Consolidated
Loan Growth
Y2022
Actual
2023
NDR Targets
3.33%
3.3-3.45%
3.03%
5-7%
Net Fee Income Growth*
-6.89%
Flat
Cost to Income Ratio**
43.15%
Low to
Mid-40s
Credit Cost per year (bps)
211 bps
175 - 200 bps
NPL Ratio (Gross)***
ROE****
3.19%
< 3.25%
ROA
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开泰银行 KASIKORNBANK
Notes (Y2023)
NIM rising due to higher interest rates and small ticket size lending
strategy, despite higher FIDF contribution. NIM may go slightly
higher than 1H23 level, in line with interest rate trend.
Loans increase from regional expansion strategy and more
corporate lending; continued focus on quality using effective data
analytics capability. Loan growth may be below target range amid
uneven economic recovery.
Net fee income may decrease from lower conventional transaction
fees due to changing consumer behavior; wealth management
business continues to expand. Net fee growth may be better than
1H23, but may not reach target.
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 clean
up and prudent financial policy, credit cost may slightly exceed the
target range, but rising to no more than 210 bps. The credit cost will
cover future uncertainties, in line with global economic
circumstances and business strategy.
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
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