Bangkok Bank Public Company Limited · SET:BBL

Bangkok Bank Public — Bangkok Bank — Q1 2016 Earnings Presentation

28 slides from Bangkok Bank Public's earnings presentation, May 2016

  1. Slide 1: Investor Presentation May 2016

    Investor Presentation May 2016 March 2016

  2. Slide 2: Agenda

    Bangkok Bank 1. Operating Environment 2. Our Financial Results 1Q 2016 3. Our Key Focus & Strategy 2

  3. Slide 3: Agenda

    Bangkok Bank 1. Operating Environment 2. Our Financial Results 1Q 2016 3. Our Key Focus & Strategy 3

  4. Slide 4: The Thai Economy in 2016 is Expected to Recover Steadily

    The Thai Economy in 2016 is Expected to Recover Steadily GDP growth • Government YoY (%) • Global economic populist policies recovery and recovery from low base 7.8% • Coup 7.3% • World economic • Baht 5.1% 5.0% appreciated 4.6% slowdown from US QE • Weak Global 2.8% Economy 2.8% 3-3.5% 2.5% • Globa

  5. Slide 5: Challenges from External Factors

    Challenges from External Factors GDP growth Crude Oil (Dubai) & Rice (5 percent, Thailand) %YoY US$ per bbl US$ per metric ton 12.0 120 750 10.0 100 650 8.0 80 6.5 China 550 6.0 60 4.0 3.2 World 2.4 US 450 2.0 40 1.5 EU 0.0 0.5 Japan 20 350 Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Apr -2.0 20

  6. Slide 6: Government Investment becomes a Main Driver of the Domestic Economy

    Government Investment becomes a Main Driver of the Domestic Economy Exports Consumption indicators Billion Baht Index (2010=100) 1,000 150 200 20% 800 120 160 600 -10% 90 120 400 -40% 60 80 200 -70% 30 40 0 -100% 0 0 Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Mar Jun Sep Dec Mar Jun Sep Dec

  7. Slide 7: Infrastructure Projects in the Pipeline

    Infrastructure Projects in the Pipeline 2015-2022 Infrastructure Projects 20 Transport Infrastructure Projects 1.9 Trillion Baht under Immediate Investment Plan 4 Projects approved by Cabinet Inter-city rail network 1 Baht 494 billion and bidding in 2015 Meter-gauge, Dual-Track Railway Transportatio

  8. Slide 8: Long Run Policies Building a New Platform for the Thai Economy

    Long Run Policies Building a New Platform for the Thai Economy o Strengthen the local economy to reduce export reliance New Balance o Double S-Curves: o Accelerate 10 flagship industries infrastructure o Special Economic Zones investment o Competitiveness Fund o PPP Fast Track o 2016Year of Investm

  9. Slide 9: Opportunities from Regionalization & Urbanization

    Opportunities from Regionalization & Urbanization Linkages in the region and AEC Economic zones and border trade Laos  Mae sai/ Chiang Saen/ Chiang Khong, 7.4%, +10.0% Chiang Rai Myanmar Nakhon Vietnam 6.3%, 8.6%, +8.3%  Nongkhai Phanom  +1.1%  Mae Sot,  Mukdahan Tak Thailand   Kanchanaburi A

  10. Slide 10: Agenda

    Bangkok Bank 1. Operating Environment 2. Our Financial Results 1Q 2016 3. Our Key Focus & Strategy 10

  11. Slide 11: Prudent Approach to Loan Growth

    Prudent Approach to Loan Growth Loan Billion Baht +0.3% YTD 1,869 1,875 1,753 1,782 1,604 1,470 1,256 1,143 2009 2010 2011 2012 2013 2014 2015 Mar-16 Loan by Business Unit Loan by Industry As at March 2016 As at March 2016 Agriculture & Mining International Real Estate & Construction -2.4% YTD +2.8%

  12. Slide 12: Manageable Asset Quality Reflects Prudent, Defensive Portfolio

    Manageable Asset Quality Reflects Prudent, Defensive Portfolio NPL amount, NPL ratio Loan loss reserves, LLR/Loan Billion Baht, Percentage Billion Baht, Percentage 160 7.9 6.5 5.7 5.8 5.8 5.5 5.6 5.8 150.00 5.1 5.3 5.2 8.50 8.45 8.41 10. 00 8.36 8.31 8.27 8.22 8.17 8.12 8.08 8.03 7.98 7.94 7.89 7.84

  13. Slide 13: Strong Liquidity and Funding Positions

    Strong Liquidity and Funding Positions Deposit Funding sources/2 Baht bn As at March 2016 +2.8% YTD 2,500 2,059 2,091 2,149 2,000 1,835 1,935 1,588 1,361 1,394 1,500 Deposit Others 1,000 500 16% 84% 0 2009 2010 2011 2012 2013 2014 2015 Mar-16 LDR consistently lower than System Liquid assets/3 As at

  14. Slide 14: Solid Capital Base

    Solid Capital Base Common Equity Tier 1 Ratio Tier 1 Ratio Total Capital Adequacy Ratio 20% 18.5% 16.5% 16.5% 15% 11.0% 10% 8.5% 9.125% 7.0% 6.625% 5.125% 5% 0% Basel III Basel III Basel III Capital requirements/1 Capital requirements/1 BBL’s ratio/2 as of until the end of 2016 as of the year 2019 M

  15. Slide 15: Performance Driven by Steady Income Growth

    Performance Driven by Steady Income Growth Income breakdown Fee income breakdown Baht bn, Percentage of composition Percentage 10% 10% 10% 10% Other Fees and 19% Commissions 25.0 26.7 26.4 26.7 17% 18% 14% 15% Bancassurance & 24.5 13% 8% 17% 9% 9% 8% Mutual Fund 18% 24% 17% 7% Global market services

  16. Slide 16: Continued Focus on Cost Management

    Continued Focus on Cost Management Operating expenses breakdown Operating expenses For 1Q16 Baht bn 43.1 45.0 +23.9% YoY/2 +5.8% QoQ/2 Other +161.5% YoY/2 10.4 11.6 10.9 12.1 12.9 +32.6% QoQ/2 27%/2 Personnel expenses/1 49% 2014 2015 1Q15 2Q15 3Q15 4Q15 1Q16 +3.4% YoY Tax & duties 7% +3.3% QoQ -4.8%

  17. Slide 17: Overall Profitability

    Overall Profitability Profitability drivers 36.3 34.2 -11.6% YoY For 1Q16 +8.3% QoQ Net 9.4 Billion Baht 7.7 8.3 Profit/1 Billion Baht Net Interest Non Interest Total 2014 2015 1Q15 4Q15 1Q16 Income Income Revenue 16.0 10.7 26.7 Operating Expenses 1.39% 1.21% 1.37% -12.9 1.08% 1.16% Provisioning ROA

  18. Slide 18: Agenda

    Bangkok Bank 1. Operating Environment 2. Our Financial Results 1Q 2016 3. Our Key Focus & Strategy 18

  19. Slide 19: Our Key Focus & Strategy

    Our Key Focus & Strategy • Leverage long-term relationships Improve • Utilize regional branch presence and extensive Customer Focus network across the country • Cross-sell to deepen financial product offerings • Closely monitor portfolio – impacted by macro Prudent economic downturn Banking Strategy

  20. Slide 20: Appendix

    Appendix Bangkok Bank

  21. Slide 21: Baht 1.9 trillion for 2015-2022 Infrastructure Projects

    Baht 1.9 trillion for 2015-2022 Infrastructure Projects Inter-city rail network Air transport 1 Baht 50 billion 5 Baht 494 billion • Development of double-track rail • Improved efficiency of airports, • Improved equipment and air fleet, and air traffic to meet infrastructure international standards

  22. Slide 22: Multiple Facets Reforms for Future Growth

    Thailand in Transition Multiple Facets Reforms for Future Growth Ensure Thailand’s Competitiveness - State enterprises reforms - Logistics infrastructure - Competition law - Overseas investment - Enforce SFIs’ mandates - Special Economic Zones Economic Reduce Inequality and Install Well-functioning

  23. Slide 23: Opportunities from Regionalization & Urbanization

    Opportunities from Regionalization & Urbanization 1,147 domestic branches /1 32 international branches in 15 economies Vietnam Myanmar Laos Nakhon Phanom Loei  Tak  Kalasin Myawaddy   Yasothon Border Thailand  Sa Kaeo Nakhon Pathom    Paoy Paet Ratchaburi Border  Cambodia Singkhon  Border

  24. Slide 24: Long-standing International Presence

    Long-standing International Presence UK Vietnam Branches: 1 Branches: 2 Number of Years: 58 Number of Years: 23 China/1 Cayman Island Branches: 6 Branches: 1 Number of Years: 29 Number of Years: 4 months Japan USA Branches: 2 Branches: 1 Number of Years: 60 Number of Years: 31 Philippines Laos Branc

  25. Slide 25: Financial Position – March 2016

    Financial Position – March 2016 Baht mn 2014 2015 Mar-16 Growth (%) YTD Loans/1 1,782,233 1,868,903 1,874,924 0.3% Deposits 2,058,779 2,090,965 2,149,333 2.8% LDR 86.6% 89.4% 87.2% -2.2% NPL 45,046 56,226 61,841 10.0% NPL ratio 2.1% 2.8% 2.9% 0.1% LLR to NPL 204.1% 185.3% 174.4% -10.9% LLR to loans

  26. Slide 26: Financial Performance – 1Q16

    Financial Performance – 1Q16 Baht mn 1Q15 4Q15 1Q16 Growth (%) YoY QoQ Net interest income 14,235 15,617 16,034 12.6% 2.7% Net Fee income 6,394 6,238 6,104 -4.5% -2.1% Non-interest income 10,813 10,793 10,672 -1.3% -1.1% Total income 25,048 26,410 26,707 6.6% 1.1% Operating expenses 10,376 12,146 12

  27. Slide 27: Dividends and Payout ratio

    Dividends and Payout ratio Baht Percent 12 50 41.9% 10 40 8 6.50 6.50 6.50 6.50 30 6.00 6 5.00 4.00 20 4 4.00 4.50 4.50 4.50 4.50 2.75 3.00 3.00 3.50 2 1.75 2.00 1.75 2.00 2.00 3.00 10 1.00 1.25 1.50 2.00 2.00 2.00 2.00 2.00 0.75 0.75 1.00 1.00 1.00 1.00 0 0 2003 2004 2005 2006 2007 2008 2009 2010 2

  28. Slide 28: For Further Information

    For Further Information Contact: Investor Relations Team Tel (66) 2 626 4981-2 Fax (66) 2 231 4890 Email: IR@bbl.co.th Bangkok Bank Website www.bangkokbank.com This presentation is made by Bangkok Bank and may not be copied, altered, offered, sold or otherwise distributed to any other person by any

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