KASIKORNBANK Economic and Subsidiaries Performance Overview
K
KASIKORNTHAI
Capital Definition Change (Consolidated)
Tier 1 capital
Basel II
Tier 1
•
Issued and paid-up share capital
.
Premium on ordinary shares
•
•
Legal reserve and Retained earnings
Hybrid Tier 1 (<15% of total Tier 1)
Minority interest, Preferred stock
Deduction of Tier 1
•
Goodwill, Treasury stock, Deferred tax asset
Investment in insurance
(50% Tier 1 and 50% Tier 2)
•
Long-term subordinated debt
1
2
Common Equity Tier 1
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开泰银行 KASIKORNBANK
Basel III
• Issued and paid-up share capital*
•
.
Premium on ordinary shares
• Legal reserve and Retained earnings
Other comprehensive income (OCI)
e.g. surplus on bond and equity FVTOCI (100%),
surplus on land & premises (100%)
Additional Tier 1
Hybrid Tier 1 with loss absorbency feature
Minority interest, Preferred stock
Deduction of Common Equity Tier 1
.
Goodwill, Deferred tax asset
•
Intangible assets
⚫ Investment in insurance (Threshold Deduction)
- Amount 10% of CET1, %RW = 250% (KBank's Case)
- Amount > 10% of CET1, deduct CET1
Digital Asset Exposure
Long-term sub-debt with loss absorbency feature
Tier 2
capital
3
Hybrid Tier 1 (exceeds from Tier 1 limit)
•
General Provision
•
General Provision
•
Surplus on AFS equity (45%)
1
.
Surplus on land & premises (70% and 50%)
* Net Treasury Stock
บริการทุกระดับประทับใจ
K
KASIKORNTHAI
TFRS and IFRS Implementation*
2013
2015
2016
2020
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开泰银行 KASIKORN BANK
2022
2025
TAS 21: Effects of
Changes in Foreign
Exchange Rates
Translate 'Functional
Currency' to
'Presentation Currency'
TFRS 8: Operating
Segments
Disclose operating
results for each key
segment
TFRS 13: Fair
value
TFRS 4: Insurance
Contracts
Measurement
Clear required
factors and
disclosure
about fair
valuation
➤ Measure
insurance liability
based on cash
flow estimation
➤ Additional
disclosure
regarding risk
exposure
TFRS 16 (Leases)
A single, on-balance sheet accounting model for
lessee that is similar to current finance lease
accounting.
TFRS 9, TFRS 7 & TAS 32: Financial Instruments
➤ Impairment is based on 3-stage classification and
introduce lifetime forward-looking concept. However,
no significant impact to Thai banks as adopted new
BOT provisioning rule since December 2006
➤ Unquoted equities at cost to be faired value and not
able to realize capital gain/loss in profit and loss if
they are faired valued through OCI
➤ Interest revenue of lending portfolio will be
recognized per effective interest rate
➤ Investment in property fund, REIT, infrastructure fund
and infrastructure trust established in Thailand will be
classified as equity instrument. (Refer to
announcement from TFAC dated 25 June 2020)
TFRS 17: Insurance
Contracts
Insurance revenue will be
based on margin, not gross
premium received
Expected day one loss is
immediately realized while
expected gain is deferred
over coverage period
TFRS 9 Amendments from
Interest Rate Reform
➤ Replacement of IBOR with new
benchmark rate is considered
as continuation of existing
contract and/or hedge
strategies.
➤Changing rate is reflected in
new EIR or hedge
ineffectiveness.
Note: TAS = Thai Accounting Standard; TFRS = Thai Financial Reporting Standard; TFRIC = Thai Financial Reporting Interpretations Committee
OCI Other Comprehensive Income
Customer loyalty program concept of income deferral for reward credit has been adopted through IFRS15 since 2019 with no significant impact.
No specific accounting guideline for digital assets has been enforced; but encourage to apply from existing relevant TFRS depends on terms and condition of digital assets.
* Only financial and disclosure impact to Thai Banks
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