KASIKORNBANK Economic and Subsidiaries Performance Overview slide image

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 ธนาคารกสิกรไทย 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 บริการทุกระดับประทับใจ 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 ธนาคารกสิกรไทย 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 บริการทุกระดับประทับใจ 8
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