Analyst Meeting Y2017 - Krung Thai Bank...*According to BOT’s regulation, the minimum capital...

Confidential Note: Data are unaudited as of December 31, 2017 (Consolidated)

1

Analyst Meeting Y2017

January 2018


2

Economic Data

KTB Performance 1

2


3

Domestic Branches* ATMs

1,196 1,214 1,213 1,121

2014 2015 2016 2017

8,958 9,152 8,849 8,726

2014 2015 2016 2017

* Domestic branches including service point

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4

Loans and Deposits

2,151,268 2,135,499 1,972,404

2,070,875

1,952,996 2,027,440 1,904,089 1,938,082

90.78% 94.94% 96.54%

93.59%

2014 2015 2016 2017

Deposits Loans* Loan to Deposit*

THB million

* Loans less deferred revenue.


5 Note: Data are unaudited as of December 31, 2017 (Bank only basis). Definition: SME - loan to private companies that have employee no. less than/equal to 200 people and fixed asset (excluding land) less than/equal to Bt 200 m

December 2016 December 2017

Gov. & SOEs

7%

Corporate 36%

Retail 38%

SMEs 19%

Gov. & SOEs

4%

Corporate 37%

Retail 39%

SMEs 20%

Loans breakdown by borrower


6

77,158 80,868 86,966 85,778

2014 2015 2016 2017

THB million

5.06% 4.95% 4.91% 4.62%

3.04% 3.02% 3.30% 3.23%

2.18% 2.11% 1.78% 1.56%

2014 2015 2016 2017

Earning Asset NIM Cost of fund

Net Interest Income Net Interest Margin

* Earning asset yield = Interest income / Average earning asset

** NIM = Net interest income/ Average earning asset

*** Cost of fund = Interest expense / Interest bearing liabilities

Earning

Asset Yield*

Net

Interest Margin**

Cost of Fund***


7

21,027 24,224 25,931 28,638

12,272 14,396

15,681 13,354 33,299

38,620 41,612 41,992

2014 2015 2016 2017

Fee Income Other Operating Income

THB million

Non Interest Income, Fee Income and Other Operating Income


8

44.56% 43.67%

40.61% 40.12%

2014 2015 2016 2017

48,145 50,920 50,631 49,407

2014 2015 2016 2017

THB million

Total Other Operating Expenses Cost to Income Ratio


9

15.15%

11.92% 12.42%

7.99%

2014 2015 2016 2017

1.25% 1.02% 1.17%

0.81%

2014 2015 2016 2017

33,191 28,494 32,305 22,446

2014 2015 2016 2017

59,905 65,688 74,058 73,746

2014 2015 2016 2017

Pre Provision Profit(1) Net Income(2)

(1) Pre-Provision Profit = income before income tax + impairment loss of loan and debt securities.

Return on Asset(3) Return on Equity(3)

THB million THB million

(2) Net income (attributable to equity holders of the bank).

(3) ROA and ROE calculate from net income (attributable to equity holders of the bank) divided by average assets and average equity attributable to equity holders of the bank respectively.


10

NPLs Ratio Coverage Ratio

NPLs ratio (gross) calculated from total loans included interbank loans, according to BOT’s definition.

2.41%

3.20%

3.97% 4.19%

1.31%

1.73% 1.81% 1.77%

2.77%

2014 2015 2016 2017

NPLs Ratio (Gross) NPLs Ratio (Net)

Excluded SSI

132.24%

112.55% 121.57% 121.71%

2014 2015 2016 2017


11

10.47% 11.06% 12.96% 13.59%

5.75% 6.38% 7.50% 8.00%

10.91% 11.43%

7.25% 7.88%

9.00% 9.50%

14.85% 15.22%

16.85% 17.45%

9.75% 10.38%

11.50% 12.00%

2014 2015 2016 2017 2017 2018 2019* 2020*

CAR Ratio Tier1 Ratio CET1 Ratio

Capital Adequacy Ratio, Tier 1 Ratio and Common Equity Tier 1 Ratio

Basel III

BOT’s minimum requirement

Note: Data are unaudited as of December 31, 2017 (Bank only basis). From December 31, 2016 onwards, CET1 Ratio was equal to Tier1 Ratio. *According to BOT’s regulation, the minimum capital ratio absorb capital conservation buffer, countercyclical buffer and higher loss absorbency.


12

Bank only

GDP Growth(Forecast) 4.1%

Loan Growth 6 - 7%

Fee Income Growth 4 - 6%

ROA Maintain

ROE Maintain

NPLs Ratio (gross) Maintain *The financial targets are estimated under current economic situation. Any major change in economic condition or unexpected situation may cause the change of the above financial targets.


13

Economic Data

KTB Performance 1

2


14

Gross Domestic Product: GDP (%)

-8.9

4.3

1Q

11

2Q

11

3Q

11

4Q

11

Y20

11

1Q

12

2Q

12

3Q

12

4Q

12

Y20

12

1Q

13

2Q

13

3Q

13

4Q

13

Y20

13

1Q

14

2Q

14

3Q

14

4Q

14

Y20

14

1Q

15

2Q

15

3Q

15

4Q

15

Y20

15

1Q

16

2Q

16

3Q

16

4Q

16

Y20

16

1Q

17

2Q

17

3Q

17

1. Tsunami in Japan 2. Severe Flood in Thailand

GDP 2013 => 2.8% GDP 2014 => 0.7% GDP 2015 => 2.8% GDP 2016 => 3.2% GDP 2017f* => 3.4%

Source : NESDB

*f-forecasted by KTB


15

Unemployment Rate (%) *Inflation Rate (%)

1.10

0.99

0.61

Mar

15

May

15

Jul1

5

Sep

15

No

v15

Jan

16

Mar

16

May

16

Jan

16

Mar

16

May

16

Jul1

6

Sep

16

No

v16

Jan

17

Mar

17

May

17

Jul1

7

Sep

17

No

v17

Headline Inflation Core Inflation

Note: *headline inflation edged up from the last year as prices of domestic

petroleum and fresh food increased.

Source : BOT.


16

Policy Rate (%) Interest Rate (%)

6.20%

MLR

1.50

Policy rate

1.38%

Fix Deposit Rate

Source : BOT


17

Loan demand in the system *Loan to Deposit ratio (%)

9,637

12,216

0.39%

-2.00%

-1.00%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

4Q

12

1Q

13

2Q

13

3Q

13

4Q

13

1Q

14

2Q

14

3Q

14

4Q

14

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

3Q

17

Oct

17

No

v17

Loan amount Loan growth THB million

10,000

12,836

39

0.7%

-2.0%

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

4Q

12

1Q

13

2Q

13

3Q

13

4Q

13

1Q

14

2Q

14

3Q

14

4Q

14

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

3Q

17

Oct

17

No

v17

Deposits B/E Deposits & B/E growth

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

4Q

12

1Q

13

2Q

13

3Q

13

4Q

13

1Q

14

2Q

14

3Q

14

4Q

14

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

3Q

17

Oct

17

No

v17

95.2%

Deposit supply in the system

THB million

Note: Commercial bank loan and deposit (excluded Interbank)

*Loan to deposit ratio included bill of exchange

Source : BOT


18

Loans Market Share in the Thai Banking System,

Large commercial banks command 78% of total banking system

78%

14%

8%

78%

14%

8%

Large bank Medium bank Small bank

2016

3Q17

Source : BOT


19

Deposits Market Share in the Thai Banking System,

Large commercial Banks command 79% of total banking system.

79%

14%

7%

79%

14%

7%

Large bank Medium bank Small bank

2016

3Q17

Source : BOT


20

Information contained in our presentation is intended solely for your reference.

Such information is subject to change without notice, its accuracy is not guaranteed

and it may not contain all material information concerning the company.

In addition, the information contains projections and forward-looking statements that

reflect the company’s current views with respect to future events and financial

performance.

These views are based on assumptions subject to various risks. No assurance can be

given that future events will occur, that projections will be achieved, or that the

company’s assumptions are correct.

Actual results may differ materially from those projected.


21

Thank You

Analyst Meeting Y2017 - Krung Thai Bank...*According to BOT’s regulation, the minimum capital...

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