Investor Presentaiton
Fully prepared for IFRS9 implementation
Key Areas of Impact
21
Provisioning based on "lifetime
expected credit loss"
Credit fee income included in
interest income
Bangkok Bank Mitigants
Sound credit management and consistent reserving policies
Provisioning expense (THB Bn) (1)
Cost of credit (%) (2)
40
2.0%
32.4
1.6%
1.4%
-
30
1.5%
1.2% 1.2%
1.2%
1.6%
22.4
22.0
20
20
1.0% 0.8%
1.1%
1.1%
14.7
15.7
0.8% 0.8%
0.5%
8.7
10
0.5%
0.0%
0
2014 2015 2016 2017
2018 2019
2014 2015 2016 2017 2018 2019
-BBL
-System/3
Lower non-interest income
New classification of financial
assets and financial liabilities:
accounted for fair value to
profit and loss (FVTPL)
Banking book derivatives
"mark to market" instead of
"accrual basis"
Most of investment in equities is classified to fair value to OCI (FVTOCI). The remaining is
classified to FVTPL which a movement of market value will go through PL.
Derivatives that qualify for hedge accounting reduce income volatility
Derivative assets and derivative liabilities constitute less than 2% of total assets and total
liabilities, respectively
Notes: /1 Impairment loss of loan and debt securities
/2 Impairment loss of loan and debt securities divided by average loan less deferred income
/3 System refers to all commercial banks in Thailand, except 2019 refers to 5 banks (BBL, KBANK, SCB, KTB and BAY)
Source: Bank of Thailand, Bangkok Bank analysis
Bangkok BankView entire presentation