KBank's Strategic Acquisition in Muang Thai Group Holding slide image

KBank's Strategic Acquisition in Muang Thai Group Holding

K KASIKORNTHAI Composition of Growth: Loans by Business Moderate loan growth momentum in line with full-year target Loan Portfolio Structure Consolidated ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Loan Portfolio (Bt bn) 2,800 2,421 2,495 2,465 Amount (Bt bn) Dec 22 1Q23 1Q23 Y2023 Mar 23 Loan Growth Yield Range Loan Growth Target 2,245 2,400 (%) (%) 2,002 2,000 34% 36% 36% Corporate Corporate Loans 880 876 (0.5%) 2-4% 36% 1,600 35% SME Loans 780 763 (2.2%) 5-7% ■SME Retail Loans 703 690 1,200 33% 31% (1.9%) 5-7% 31% 34% 33% ■Retail Other Loans 132 136 3.8% 800 Others Total Loans 1) 2,495 400 28% 28% 29% 28% 28% 2,465 (1.2%) 5.5% (%) 4-6% 1-2% 2-4% 5-7% 0 4% 3% 4% 5% 5% 2019 2020 2021 2022 1Q23 Note: From time to time, the Bank has adjusted loan definitions based on loan portfolio management; thus, the latest loan base is not comparable with previous reports. 1) Other loans were included loans through the World Business Group. In 1Q23 WBG loans were Bt85bn, increased 4.2% YTD, and 69.0% YoY 1Q23 2023 Outlook Corporate Loans SME Loans Retail Loans Loan Definition ■ Loan portfolio mainly grew from short-term loans in financial institutions, healthcare, petroleum and petrochemicals as well as consumer goods industries. ■ SME loans outstanding was decreased due to balance sheet clean up as well as to control and mitigate credit risk from viable customers ■ However, KBank still provided various product offerings matched to customers' needs with risk-based offerings ■ Unsecured loans outstanding decreased due to seasonal repayment of Credit Card which hiked at year end. However, spending showed improvement in tourism, restaurant, and consumer categories. Personal loans grew prudently to control and mitigate credit risk ■ Home loans decreased as per market competition. However, new volume showed improving trend in 1Q23 ■ Continued use of data analytics to continuously improve predictive power of credit model and credit process in order to acquire new customer segments with acceptable risk for both SME and Retail Loans Corporate Loans: Loans of KBank and KBank's Subsidiaries in Corporate Segments (annual sales turnover > Bt400mn) SME Loans: Loans of KBank and KBank's Subsidiaries in SME Segments (annual sales turnover ≤ Bt400mn) Retail Loans: Loans of KBank and KBank's Subsidiaries in Retail Segments ■ Focus on supporting ESG loans in prospective industries ■ Potential loan growth in some sectors to support business opportunities ■ Grow prudently in line with market situation focusing on secured credit ▪ Use data analytics to expand credit opportunities in specific industries ■ Provide various product offerings matched to customer needs with risk-based pricing ■ Promote business growth of healthy SME customers and accelerate supports to at-risk SMEs to maximize recovery ■ Maintain lead position in consumer market and be "1st in mind" to our customers and prospects ■ Grow prudently in line with market situation ■ Focus on intelligent lending by using data analytics to offer products and promotions aligned with customers' needs ■ Focus on acquiring "small-pocket" customers with acceptable risk and proactive monitoring to manage loan portfolio quality ■ Focus on generating additional revenue from existing credit customers บริการทุกระดับประทับใจ Other Loans: Composed of loans through the World Business Group, insurance business (MTL), and other loan types not directly attributable to the main business groups. Before Y2020, other loans were loans in Enterprise Risk Management Division (NPL + Performing Restructured Loans) reclassified to their customer segments. K KASIKORNTHAI Net Interest Margin March 2023 (Consolidated) NIM ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Yield on Earnings Assets and Cost of Fund (%) (%) 5 8 4 3.31 3.27 3.21 3.33 3.46 5.49 Yield on Loans 6 5.21 I 4.82 4.97 4.71 3 4.19 3.83 4 3.64 3.79 4.21 Yield on Earnings Assets 2 1 0 2019 2020** 2021 2022 1Q23 2 1.23 0.78 1.01 0.59 0.62 Cost of Fund 0 1.14 0.71 0.54 0.53 0.87 Cost of Deposits* 2019 2020" 2021 2022 13 1Q23 ■NIM was 3.46% in 1Q23, increased YoY, mainly due to higher yield in line with interest rate trend, despite higher cost of fund from higher rate and the resumption of FIDF fee to its normal rate in January 2023. More than 90% of interest income received in cash. 2019 2020 2021 2022 1Q22 1Q23 4Q22 1Q23 NIM (%) 3.31 3.27 3.21 3.33 3.19 3.46 3.62 3.46 Yield on Earnings Assets (%) 4.19 3.83 3.64 3.79 3.61 4.21 4.14 4.21 Yield on Loans (%) 5.21 4.82 4.71 4.97 4.76 5.49 5.37 5.49 Cost of Fund (%) 1.23 0.78 0.59 0.62 0.57 1.01 0.71 1.01 Cost of Deposits (%), incl DPA 1.14 0.71 0.54 0.53 0.52 0.87 0.58 0.87 Note: Cost of deposits including contributions to the Financial Institutions Development Fund (FIDF) and Deposit Protection Agency (DPA). * The FIDF fee is temporarily reduce from 0.46% to 0.23% for 3 years, according to the BOT announcement in the Royal Gazette, during January 2020 to December 2022. ** 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 14
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