Creating the Future of Finance - Breakthrough Innovation
K
KASIKORNTHAI
Total Economic Value
■ KBank still effectively owns 38.25% of MTL's
equity. Bilateral negotiation is a balancing act.
Sales Channel Value
Company Value*
ธนาคารกสิกรไทย
开泰银行 KASIKORN BANK
Impacts on Income Statement
Bancassurance Agreement has impacts on
following components in the income statement:
KBank (Bank only):
Non-interest income: + Bt 1,270 mn (average payment per year)
+ Performance Bonus
MTL:
Non-interest expense: + Annual Payment
Commission
Non-contingent Performance
Bonus
KBank's Share
in MTL Equity
(38.25%)
Consolidated KBank:
Non-controlling interest:
61.75% x annual payment after tax
Consolidated net profit:
61.75% x annual payment after tax
Bancassurance
Exclusivity Value
*Non-listed company
Potential destruction to our economic value
caused by MTL having to find other sales channel
replacement is high. Better value accretion can
be achieved through this business alignment.
■ We considered the overall economic value to
KBank from both sales channel value and
company value i.e. if sales channel value
increases, company value will decline.
If NPE improves from this arrangement, KBank's
consolidated income and MTL's NPE will rise.
Note:
•
Annual payment = Bt1,270 mn (average payment per year) + performance bonus
NPE = Net Premium Earned
An average payment per year of exclusivity fee has been recognized on a
monthly basis, starting from January 1, 2022 onwards.
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57
K
KASIKORNTHAI
ธนาคารกสิกรไทย
开泰银行 KASIKORNBANK
KBank: Risk and Credit Management
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