KASIKORNBANK Economic and Subsidiaries Performance Overview slide image

KASIKORNBANK Economic and Subsidiaries Performance Overview

K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KBank: Financial Performance Note: The Bank and its subsidiaries have adopted new accounting standards (TFRS 9: Financial Instruments) since January 1, 2020 onwards. Some financial statements and financial ratios are not comparable with previous years' financial figures before Y2020, which were based on the prior accounting standards (non-TFRS9) บริการทุกระดับประทับใจ 69 K KASIKORNTHAI 1H23 Performance Highlights Consolidated Net Profit (Bt bn) Profitability - NIM - ROE* - ROA - YTD Loan growth 2021 2022 1Q23 2Q23 38.05 35.77 10.74 10.99 1H23 21.74 3.21% 3.33% 3.46% 8.44% 7.38% 8.43% 0.98% 0.86% 1.01% 7.88% 3.03% - YoY Loan growth - YoY Net fee income growth - YoY Non-interest income growth 7.88% 3.03% 7.01% (6.89%) (4.17%) (8.42%) 3.54% 8.65% 1.03% 1.02% (1.20%) (1.84%) (1.84%) 0.28% (1.61%) (1.61%) (8.13%) (5.31%) (6.77%) 32.00% 19.70% 25.64% 3.63% 8.82% Cost control - Cost to income 43.49% 43.15% 42.50% 43.37% 42.94% Asset quality 3.76% 1.73% 3.19% 2.11% 159.08% 154.26% 3.04% 2.05% 156.68% 93.20% 90.77% 90.85% 16.49% 16.84% 16.92% 3.20% 2.08% 147.31% 90.40% 17.04% 18.77% 18.81% 18.90% 19.01% 3.20% 2.06% 147.31% 90.40% 17.04% 19.01% - NPL ratio - Credit Cost - Coverage ratio Loans to Deposits Tier 1 Ratio CAR Note: Under Bank of Thailand regulations, net profit in the first half of the year is counted as capital after approval by the Board of Directors as per Bank regulations. Net profit in the second half of the year is counted as capital after approval of the General Meeting of Shareholders. However, when a net loss occurs, the capital must be reduced immediately Capital Adequacy Ratio (CAR) has been reported in accordance with Basel III Capital Requirement from January 1, 2013 onwards. CAR is based on KASIKORNBANK FINANCIAL CONGLOMERATE. KASIKORNBANK FINANCIAL CONGLOMERATE means the company under the Notification of the Bank of Thailand re: Consolidated Supervision, consisting of KBank, K Companies, and subsidiaries operating in supporting KBank, Phethai Asset Management Co., Ltd., and other subsidiaries within the permitted scope of the BOT's definition to be a financial conglomerate * ROE = Net profit (attributable to equity holders of the Bank) deduct dividend from other equity instruments after income tax divided by average equity of equity excluded other equity instruments ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 1H23 net profit decreased -1.22% YoY, due to higher expected credit loss. However, EBPT continued to improve as a result of strong growth in operating income and consistently efficient expense management ■1H23 loans dropped -1.84% YTD from SME, Credit Cards, Personal loan, and from NPL outflow management, while Regional and KLeasing increased ■NIM was 3.54% in 1H23, increasing YoY, mainly due to higher interest rate, despite higher cost of fund from FIDF and higher deposit rate. More than 90% of interest income received in cash ■1H23 net fee income decreased -6.77% YoY, from Brokerage and Fund Management businesses in line with market conditions, and a drop in transaction service fees. 1H23 cost to income ratio was 42.94%, decreasing YoY, from net total income increased, despite higher operating expense (mainly due to employee expenses from one-time cost of living subsidy measures). Focus on cost management and productivity improvement, with new investments for future growth ■1H23 NPL ratio was at 3.20%, with a coverage ratio of 147.31% from proactively embarking and cooperating with professional partners to enhance the effectiveness of NPL management. Since 1Q23, the level of management overlay temporarily dropped from a one-time deterioration in a large corporate loan but stayed within our comfort range 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 1H23 capital base remained sufficient to support business growth บริการทุกระดับประทับใจ 70 70
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