Bangkok Bank Public Company Limited · SET:BBL
Bangkok Bank Public — FY2006 Earnings Presentation
29 slides from Bangkok Bank Public's earnings presentation, Jan 31, 2007
Slide 1: Partnership for life
Partnership for life 2006 January 31, 2007: 10.30 hrs
Slide 2: Bangkok Bank Group
Bangkok Bank Group Bangkok Bank BBL Cayman Bangkok Bank Berhad Sinsubtawee Bualuang BBL Asset Securities Management 100% 100% 100% 56.34% 75% Funding Vehicle Malaysian Asset Mgmt Securities Mutual Funds Operations Businesses 2 2
Slide 3: Top 10 banks in Southeast Asia
Top 10 banks in Southeast Asia Asian Banker Assets : USD Bn 22 DBS 108.2 29 UOB 87.1 33 OCBC 78.8 59 Maybank 50.5 83 BBL 34.1 98 Public Bank 29.5 100 KTB 28.2 103 Bank Mandiri 26.8 122 RHB Bank 22.4 130 KBANK 20.4 0 20 40 60 80 100 120 Asian Banker 300 (AB300) are ranked based on their weighted-aver
Slide 4: Bangkok Bank: The largest bank in Thailand
Bangkok Bank: The largest bank in Thailand System Second largest bank THB Bn Assets 7,532 1,473 1,178 Loans 5,250 956 913 Deposits 6,168 1,218 986 Shareholders’ equity 686 146 98 Total assets Loans Deposits Shareholders’ equity Total asset Loans Deposits SHE 20% 18% 20% 22% Source: www.bot.or.th: Sy
Slide 5: Organization Chart
Organization Chart Boardof Board ofDirectors Directors Nominationand Nomination andRemuneration RemunerationCommittee Committee AuditCommittee Audit Committee RiskManagement Risk ManagementCommittee Committee Boardof Board ofExecutive ExecutiveDirectors Directors ExecutiveChairman Executive Chairman
Slide 6: Business structure
Business structure Business Business InvestmentBanking Investment BankingGroup Group DomesticBanking Domestic BankingGroup Group InternationalBanking International BankingGroup Group CorporateBanking Corporate Banking CommercialBanking Commercial Banking BusinessBanking Business Banking ConsumerBank
Slide 7: Net profit
Net profit • Both NII and NonII continue to grow. NII increased by 10.1% and NonII increased by 41.5% • Net profit before provision and tax and net profit before tax showed improvement but net profit declined Net profit before provision Income by type and tax and Net profit Growth Growth THB Bn THB
Slide 8: Net profit before provision and tax
Net profit before provision and tax • Net profit before provision and tax improved with CAGR 22.3% THB Bn 35 32.7 30 % 25 2.3 =2 GR CA 20 Tax Provision 15 Net profit 11.9 10 5 0 2001 2002 2003 2004 2005 2006 8 8
Slide 9: NII and NIM
NII and NIM • NIM increased in Q4 with improved asset yield and stable funding cost NII and NIM Interest earning assets (IEA) THB Bn Yield on IEA & Funding cost 18 3.5% 3.3% 3.3% 3.3% 2.9% THB Bn 16 2.9% 3.0% 3.0% 1,440 7.5% 2.7% 2.7% 14 2.6% 2006=3.1% 2.4% 2005=2.9% 2.3% 2.5% 6.0% 12 11.7 1,400 1.9
Slide 10: Non interest income breakdown
Non interest income breakdown THB Bn 30 Growth = 41.5% 25.0 25 21.6 20 17.6 Others 15 Share of profit from subsidiaries Gain (loss) on investment Gain on exchange 10 Fee and services income 5 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 -5 Note: 1999 other income included Baht 13 Bn gains on
Slide 11: Fees and service income
Fees and service income • Fees and service income was 21% of total income and remains a key component of the bank’s revenue Fees and service income Fee income ratios THB Bn Growth = 7.6% 60% 1.2% 16 14.7 Fee / total assets 1.02% 8 .1 % G R= 12 CA 40% 0.8% Fee to total income 10.2 Fee/total assets 8.
Slide 12: Non-interest expenses
Non-interest expenses • Non-interest expenses, excluding one-time TAMC charge of 2.8 bn in 3Q, grew 9.0%, in line with business THB Bn Non-interest expenses Cost management ratios % % Growth =17.9% 150.0 3.0 40 36.7 2.5 35 30.1 30.5 31.1 2.3 2.2 2.2 2.5 TAMC 120.0 2.1 30 2.1 2.1 2.1 2.0 2.0 25 2.0 C
Slide 13: Income spread
Income spread • Spread between income and expenses has been widening Growth 2006 Total income = 19.7% Total expenses = 17.9% THB Bn 80 = 13.9% 69.3 AG R C 57.9 60 50.6 45.4 36.2 36.9 40 36.7 20 29.3 28.8 31.1 24.2 26.3 % CAGR = 8.6 0 2001 2002 2003 2004 2005 2006 Total Income Operating expenses 13 1
Slide 14: Loan portfolio
Loan portfolio • Loan portfolio at the end 2006 was Baht 958 Bn with 5.1% growth THB Bn Total loans Loan growth 15% 1,200 9.9% 1,074 10% 5.1% 1,000 5% 953 958 933 2.3% 2.2% 922 924 912 0.2% 0% 849 831 812 -2.2% 800 -3.2% -5% -10% -11.3% 600 -12.1% 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 -1
Slide 15: Loan portfolio
Loan portfolio THB Bn THB Bn 1,000 1,000 958.4 950 950 932.9 912.0 Quarter-end 900 900 Year-end 848.9 850 850 830.6 800 800 750 750 12/02 03/03 06/03 09/03 2003 2002 12/03 03/04 06/04 09/04 12/04 200403/05 06/05 09/05 12/05 2006 200503/06 06/06 09/06 12/06 Year-end Quarter-end 15 15
Slide 16: Asset quality
Asset quality • Non-performing loans (NPL) declined to Baht 89.1 Bn or 9.2% of total loans Total NPL NPL to loans THB Bn 60% 500 461 440 49.0% 50% 45.8% 393 42.5% 400 40% 323 300 29.1% 251 30% 25.9%24.7% 216 211 22.2% 200 181 159 20% 16.8% 16.9% 101 10.9% 9.2% 100 89 10% 0 0% 1997 1998 Jun- 1999 200
Slide 17: Restructured loan portfolio
Restructured loan portfolio • Restructured loans continue to be paid down and now accounts for 12.9% of total loans Restructured loans Restructured loans as % of total loans 300 35% 31.5% 261.9 30% 250 234.1 27.6% 25% 200 193.8 20.8% 20% 150.3 150 16.5% 123.5 15% 12.9% 100 10% 50 5% 0% 0 2002 2003 2
Slide 18: Loan loss reserve
Loan loss reserve • Under the new provisioning requirements of the BOT, minimum LLR increased to Baht 56.7 Bn • The bank set aside total provision of Baht 9.9 Bn in 2006 THB Bn Coverage ratio Loan loss reserve (LLR/NPL and BOT minimum requirement /NPL) 250 90% 80.2 80% 79.1 197.0 200 70% 166.8 162.6
Slide 19: Deposit composition
Deposit composition • Deposit growth for 2006 was 5.6%, compared to the average growth of 2.9% for the past 10 years THB Bn Total deposits Deposit composition 100% 1,250 1,222 3% 52Bn 4.2% 1,200 1,186 80% 1,157 21% 1,150 474Bn 38.8% % = 2.9 1,115 1,100 AGR 1,072 60% C 1,063 1,050 1,034 1,000 970 40%
Slide 20: Deposit trend
Deposit trend THB Bn THB Bn 1,300 1,300 1,250.1 1221.7 1,200 1,186.1 1,200 1,156.5 1,114.9 1,100 1,100 1,062.7 1,000 1,000 900 900 800 800 ธ.ค.- มี.ค.- มิ.ย.- ก.ย.- ธ.ค.- 2002 2003มี.ค.- มิ.ย.- ก.ย.- ธ.ค.- 2004มี.ค.- มิ.ย.- ก.ย.- ธ.ค.- 2005มี.ค.- มิ.ย.- ก.ย.- ธ.ค.- 2006 02 03 03 03 03 04 04 04 04 05
Slide 21: Loan to deposit ratio
Loan to deposit ratio • Loan to deposit ratio (LDR) remained at about 78% 120% LDR Loan growth and deposit growth 15% 113.5% 110% 10% 5.6% 100% 5.1% 5% 90% 0% 80% 78.4% Avg = 79.1% -5% 70% -10% Loans Deposits 60% -15% 50% 1998 1999 2000 2001 2002 2003 2004 2005 2006 1997 1998 1999 2000 2001 2002 200
Slide 22: Strong financial position
Strong financial position • Capital continued to strengthen mainly from strong net profit • CAR* remained strong at 15.1% and Tier 1 ratio at 12.3% compared to BOT’s minimum requirement of 8.5% THB Bn Total capital* Capital ratios* 20% 160 15.9% 140 15.1% 28 15% 120 35 33 32 35 31 12.3% 100 34 13 10
Slide 23: Performance
Performance ROE ROA 20% 2.0% 16% 1.5% 12.40 12% 1.23 11.09 1.11 1.0% 8% 0.5% 4% 0% 0.0% 2001 2002 2003 2004 2005 2006 2001 2002 2003 2004 2005 2006 ROE Adj ROE with 30% tax ROA Adj ROA with 30% tax 23 23
Slide 24: Network expansion and personnel productivity
Network expansion and personnel productivity Number of branches and employees Number of ATM machines 3,500 800 743 30,000 2006 3,111 710 3,000 +575 ATM Machines 700 25,000 25,000 +84 CDM* 2,536 Number of employees 2,500 600 Number of branches 20,000 500 541 19,239 2,000 18,904 400 15,000 1,500 300 2
Slide 25: Thai economy
Thai economy 2005 NESDB/1 BBL/2 Actual 1Q06 2Q06 3Q06 9M06 2006f 2007f GDP growth (%) 4.5 6.1 5.0 4.7 5.3 5.0 4.0-4.5 Export growth/3 (%) 15.0 17.7 16.0 16.4 16.6 17.5 9.0 Import growth/3 (%) 25.9 5.2 3.3 12.2 6.9 7.1 9.9 Exchange rate (THB/USD) 40.3 39.3 38.1 37.7 38.4 37.9 36.0-37.0 Headline Infla
Slide 26: Thai economy
Thai economy Economic conditions in 2007 • Average oil price is likely to be more stable in 2007 • Inflation shows declining trend which should be positive for improved purchasing power • Interest rates have been more stable and conducive to credit expansion Risk factors • A slowdown of the world ec
Slide 27: Bangkok Bank interest rates vs RP 14 days
Bangkok Bank interest rates vs RP 14 days % 8 MLR=7.50% 7 6 5 RP 14D F12M (H)=4.75% RP 1D =4.75% 4 F3M (L)=3.25% 3 2 1 Savings=0.75% 0 01/01 01/02 01/03 01/04 01/05 01/06 01/07 1/ RP 14 days was 5.00% on Jan 16, 2007 and declined to 4.78125% since Jan 17, 2007 2/ Beginning from Jan 17, 2007, new ben
Slide 28: Bangkok Bank interest rates
Bangkok Bank interest rates Last update: February 14, 2007 2005 2006 2007 Jun-30 Jul-26 Sep-01 Sep-09 Oct-11 Dec-09 Jan-16 Mar-07 Mar-15 Apr-17 Aug-11 Jun-07 Jan-10 Jan-17 Feb-14 1/ Savings 0.75 => => => => => => => => => => => => => => 14D 3.75-4.00 => 3.50-3.75 => => 1M 4.00-4.25 => 3.75-4.25 => =
Slide 29: Disclaimers
Disclaimers This presentation is made by Bangkok Bank and may not be copied, altered, offered, sold or otherwise distributed to any other person by any recipient without the consent of Bangkok Bank. Although all reasonable effort has been made to ensure the facts stated herein are accurate and that
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