Krung Thai Bank Public Co., Ltd. · SET:KTB
Krung Thai Bank Public — Q3 2021 Earnings Presentation
28 slides from Krung Thai Bank Public's earnings presentation, November 2021
Slide 1: Analyst Meeting Presentation 3Q2021 Financial Results
Analyst Meeting Presentation 3Q2021 Financial Results
Slide 2: Economics update
Economics update 2
Slide 3: COVID-19 will lead to new normal
COVID-19 will lead to new normal Economy Consumer & Business Behavior Economy will take a long Consumers move to Online time just to return to pre- Platform covid level Gov’t will be key driver, using Health and Hygiene will be top its balance sheet, generating of mind business opportunity High debt
Slide 4: Gov't to step in as key driver opening up business opportunity
Gov’t to step in as key driver opening up business opportunity BOT measures Fiscal measures 0.9 trillion baht 1 trillion baht Additional 0.5 trillion baht (Most has been approved) (Remaining 354 bn) BSF Budget 400 bn Medical and Health Response 45 billon baht Medical and Health Response 30 billon ba
Slide 5: Economic outlook: recovery faces a setback from a new wave
Economic outlook “Economic recovery faces a setback from a new wave” 2020 2021F 2022F (Actual) Key Highlights for 2021-2022 Unit: (%YoY) -1.0% -0.4% 3.8% 0.8% 4.2% 0.5% -6.0% 14.0% 3.9% GDP (%YoY) Private consumption Labor markets remain fragile, causing Public consumption Public consumption ten
Slide 6: Thailand's economy and GDP growth expectations for 2021 and 2022
Thailand’s economy and GDP growth expectations for 2021 and 2022 • The economy continues to weaken with the third wave of the pandemic, which began in April. Our GDP forecast for 2021 as of early-November was 0.5%. • The better vaccination rate progress and the ease restriction, couple with fiscal s
Slide 7: Thailand's economy and GDP growth expectations for 2021 and 2022
Thailand’s economy and GDP growth expectations for 2021 and 2022 • It is likely that the BOT will remain the RP rate at 0.5% throughout 2021-2022, given the bleaker macroeconomic picture and the severe pandemic that has restricted the scope of fiscal measures such as copays for shopping or tourism.
Slide 8: Thailand's economy and GDP growth expectations for 2021 and 2022
Thailand’s economy and GDP growth expectations for 2021 and 2022 Factors affecting the future of Thai economy and businesses Potential segments • Global economic recovery Key • Healthcare • New Normal: Green Economy, Health Economy • Logistics Drivers • Short term government stimulus • Power & Utili
Slide 9: Thailand's economy and GDP growth expectations for 2021 and 2022
Thailand’s economy and GDP growth expectations for 2021 and 2022 • HH debt to GDP is now about 90%. The increase is partly due to the decline in GDP of 6.1% in 2020. • HH and corporates affected by the pandemic can seek assistance from financial institutions in % various programs coordinated by the
Slide 10: Loan portfolio
Loan portfolio 10
Slide 11: Loan continued to grow at a higher rate than system, focusing on low-risk segment
Loan continued to grow at a higher rate than system, focusing on low-risk segment Loan growth dominant in Government, Corporate and Retail Consolidated YTD2021 loan growth YTD 2021 KTB loan growth by segment 20% KTB %YTD growth 1Q21 2Q21 3Q21 18% 16% 14% Gov & SoEs -1.2% 33.2% 41.3% 12% 9.6% Retail
Slide 12: Loan composition focus on quality
Loan composition focus on quality Loan growth during covid-19 in areas where we know Consolidated Loan growth driven by Government, Corporate and Retail Retail loan maintained mostly in ‘secured’ lending (THB bn) (THB bn) Loans by segment Retail Loan by Product 2,486 2,560 992 1,003 1,016 1,021 2,33
Slide 13: Loan under COVID-19 Relief Measures
Loan under COVID-19 Relief Measures 13
Slide 14: Loan under COVID-19 relief measure
Loan under COVID-19 relief measure Slightly increased with limited exposure to total loan Consolidated % of loans under 9% 5% 4% 5% 18% total loans 413 200 (9%) Retail 201 38 %YTD %QoQ (2%) Business 126 117 (Corporate + SME) 108 -41.6% +8.7% 212 33 20 163 18 -48.1% +12.6% (9%) (1%) (1%) (1%) (7%) 93
Slide 15: Asset Quality
Asset Quality 15
Slide 16: KTB %NPL and %Stage2 at manageable level
KTB %NPL and %Stage2 at manageable level Coverage ratio built up for future uncertainties amid well-managed NPL Consolidated NPL and NPL Ratio Loan and accrued interest by stage (THB bn) (THB bn) Gross NPL NPL Ratio - Gross Non-TFRS9 TFRS9 4.33% 4.21% 3.81% 2,503 2,579 3.66% 3.54% 3.57% 2,351 2,376
Slide 17: Y2020 vs 9M2021 Financial Results
Y2020 vs 9M2021 Financial Results 17
Slide 18: 9M2021 Highlights
9M2021 Highlights: Consolidated Continuing Growth with Additional Buffer to Withstand Uncertainties • Resilient loan growth (YTD) driven by selected segments including government, corporate and retail • Soften NIM amid COF improvement with high CASA of 82% • Non-NII contraction mainly due to the low
Slide 19: Y2020 vs 9M2021 Highlights
Y2020 vs 9M2021 Highlights: Consolidated Profitability Loan & Asset Quality Unit : THB bn Y2020 YoY 9M21 YoY 3Q21 QoQ YoY Unit : THB bn 3Q21 YTD QoQ Total income 122.2 -2.7% 85.9 -8.3% 28.3 -1.8% -6.4% Loan 2,560 +9.6% +3.0% NII 88.3 +0.0% 62.0 -8.8% 21.1 +1.1% -2.1% NPL ratio (gross) 3.57% -24 bps
Slide 20: Profitability Trend
Profitability Trend Consolidated Slightly softening NIM QoQ as a result of loan expansion in lower risk segments Yield, NIM and CoF Earning 3.55% Asset Yield 3.30% 3.17% 3.22% 3.14% Normalized 3.39%(1) NIM 2.82% 2.59% 2.50% 2.55% Normalized 2.51% 2.66%(1) 0.84% 0.81% 0.76% 0.76% COF 0.71% 3Q20 4Q20
Slide 21: Non Interest Income
Non Interest Income Consolidated Fee Income reduced mainly relating to the slowdown in economic situation. Non Interest Income (THB bn) 25.7 23.8 -7.1% YoY -13.8% YoY 10.4 9.0 8.7 8.3 8.7 -17.1% YoY 7.9 -9.4% QoQ 7.2 3.6 3.0 3.5 3.0 -33.1% YoY -2.5% YoY 2.4 -19.8% QoQ 15.2 14.9 -5.4% YoY 5.0 5.3 5.2
Slide 22: OPEX
Consolidated OPEX Focusing on operating cost management in slowdown economy Operating Expense (THB bn) 48.8% 47.2%(1) 44.3% 46.2% 44.4% 44.3% 42.4% 45.3% 42.2% 39.5 38.0 -4.4% YoY -3.8% YoY 13.7 13.9 12.7 12.2 13.1 +7.0% QoQ 3Q20 4Q20 1Q21 2Q21 3Q21 9M20 9M21 OPEX Cost-to-income (C/I) Normalized C/I
Slide 23: Capital
Consolidated Capital Building up strong capital position CET1 vs CAR Ratios 19.50% 19.63% 19.65% 19.11% 18.83% 15.51% 15.79% 16.24% 16.36% 16.43% CAR Tier 1 CET 1 15.01% 15.73% 15.26% 15.38% 15.48% 3Q20 4Q20 1Q21 2Q21 3Q21 23
Slide 24: Asset-Liability Management and Funding
Asset-Liability Management and Funding Sufficient funding with High CASA Loan vs Deposit (L/D ratio) Consolidated 96.9% 98.7% 96.8% 99.7% 99.1% 94.8% Bank only 96.0% 2,463 2,493 2,582 Loan: 2,313 2,439 2,156 +9.6% Ytd 2,486 2,560 +3.0% QoQ 2,281 2,335 2,360 2,090 Deposit: +4.8% Ytd +3.6% QoQ 4Q19 3Q
Slide 25: Appendix
Appendix 25
Slide 26: Network
Network Bank Only Branches* ATMs (unit: branches) (unit: machines) Metro Upcountry Metro Upcountry 8,582 8,611 8,493 8,522 8,495 1,066 1,028 1,024 1,025 1,025 6,316 6,346 6,290 6,293 6,282 747 721 723 723 723 2,266 2,265 2,203 2,229 2,213 319 307 301 302 302 * 4Q19 3Q20 4Q20 2Q21 3Q21* 4Q19 3Q20 4Q2
Slide 27: Disclaimer
Disclaimer 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 a
Slide 28: Thank you
Thank you Krungthai Bank PCL Website : krungthai.com/th/investor-relations Tel : 0-2208-3668-9 Email : IR@krungthai.com 28
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