Bank Of Ayudhya Public Co., Ltd. · SET:BAY

Bank Of Ayudhya Public — Investor Presentation (October 2008)

31 slides from Bank Of Ayudhya Public's investor presentation, October 2008

  1. Slide 1: Investor Update

    Investor Update October 2008 CONFIDENTIAL Investor Relations : Analyst Briefing January 21, 2008

  2. Slide 2: Important Notice

    Important Notice This presentation has been prepared by Bank of Ayudhya Public Company Limited (the “Bank”) solely for informational purposes. It does not constitute an offer or sale or a solicitation of an offer to purchase securities, nor does it constitute a prospectus within the meaning of the S

  3. Slide 3: Agenda

    Agenda } Update of Progress in 9M/08 } Financial Performance for 3Q/08 and 9M/08 } Outlook for 2008 Investor Relations Department 33

  4. Slide 4: Update of Progress in 9M/08

    Update of Progress in 9M/08 Investor Relations Department 44

  5. Slide 5: BAY's Profile

    BAY’s Profile Assets, Loans & Deposits (Ranked #5) Network and Employees Consolidated (as of Sep 08) (Baht Billion) Number Domestic Branches 576 703 666 652 ATMs 2,667 563 552 505 500 460 451 Exchange Booth 73 2006 2007 3Q/08 Employees 9,630 Assets Loans Deposits Investor Relations Department 55

  6. Slide 6: BAY's Shareholding Structure

    BAY’s Shareholding Structure Shareholding Structure (as of Sep 08) GE R Group • After the matured warrants were 32.9% 24.9% exercised on 2 Sep 08, GE and R Group remained as major Others shareholders. 42.2% Investor Relations Department 66

  7. Slide 7: Key Development in 9M/08

    Key Development in 9M/08 9 Completion of GE Capital Auto Lease (GECAL) acquisition in mid Feb 08. 9 Successfully launched two issuances of debenture totaling 41.9 billion in 1H/08 to better match funding for auto hire purchase business. 9 Improvement of asset quality from 6 billion of NPL sold in Ju

  8. Slide 8: BAY's Auto HP Business Structure

    BAY’s Auto HP Business Structure GECAL’s Funding Structure BAY’s Auto HP Group (Mid Feb 08 – Aug 08) is under amalgamation Current total Portfolio GE 14 bn BAY BAY in 4 subsidiaries (As of Sep 08) 106 bn Local Bank 20 bn 34 bn 36 bn AYCL New cars financing Total Funding GECAL Now focusing on used ca

  9. Slide 9: Debenture Issuance: An Alternative for Better Matched Funding

    Debenture Issuance: An Alternative for Better Matched Funding Issuance Terms & Rate Amount (Baht billion) Oct-07 3 year 4.25% 8.20 4 year 4.50% 5.80 Grand Total 2007 14.00 Mar-08 2 year 3.85% 10.50 3 year 4.00% 5.50 4 year 4.25% 4.00 Total 20.00 Jun-08 2 year 4.25% 16.80 3 year 4.50% 5.10 Total 21.9

  10. Slide 10: Success in NPL Sale and Improvement of Asset Quality

    Success in NPL Sale and Improvement of Asset Quality Consolidated (Baht Billion) NPL Movement BAY started its first NPL Sale in 4Q 07 with 18.5 billion NPL sold within 12 months 16.4% 4Q 07 15.5% } Retail loans tranche 13.6% Face : Baht 3.6 billion @ 55% NPL sale in Aug 08 : 10.6% 75.1 Baht 8.9 1H 0

  11. Slide 11: Loan Composition Moving Towards the Target

    Loan Composition Moving Towards the Target Consolidated 2007 September 2008 By 2010 50% 44% 34% 36% 30% 22% 50% 34% Auto HP 19% Mortgage 11% Personal Loan & Others 4% Corporate Retail SME • With retail loans of 18% at end of 2006, the portion increased to 34% at end of 3Q 08, moving nicely towards 5

  12. Slide 12: Strong Capital Base Maintained

    Strong Capital Base Maintained BAY+AAMC 19.71% 17.73% 4.67% 4.00% 11.56% CAR required Tier 2 * 4.23% by BOT at 15.04% 13.73% 8.5% Tier 1 7.45% 2006 2007 Sep 2008 THB bn. 2006 2007 Sep 08 Tier 1 35.98 67.78 76.83 Tier 2 * 20.44 21.01 22.33 Total Capital 55.85 88.79 99.16 • Basel II will be implemente

  13. Slide 13: Update on CDO Investment

    Update on CDO Investment • Total investment - US$ 85 million in 4 tranches (equivalent to 0.4% of the Bank’s total assets) - Investment yields LIBOR+1.56% - There are 100 – 230 corporate names underlying each tranch. • Industries of underlying Financial, Insurance, Telecom, Petrochemicals, corporate

  14. Slide 14: Financial Performance for 3Q/08 and 9M/08

    Financial Performance for 3Q/08 and 9M/08 Investor Relations Department 14 14

  15. Slide 15: Balance Sheet

    Balance Sheet Consolidated (Baht Billion) Assets Liabilities & Equity 702.9 702.9 +51 +51 666.3 652.4 666.3 652.4 84.4 47.1 +6 151.3 55.7 78.1 -51 113.4 206.0 202.0 74.7 +39 +101 563.5 551.6 499.6 +6 505.2 460.3 450.4 2006 2007 Sep-08 2006 2007 Sep-08 Loans Other assets Deposits Other Liabilities Eq

  16. Slide 16: Loans & Deposits

    Loans & Deposits Consolidated Loans Deposits (Baht Billion) ƒ +22% YtD ƒ +9% YtD +11 551.6 Deposits + B/E +88 538.5 +2 540.5 + 579.2 Debenture 556.8 +22 -13 565.7 -2 63.3 518.9 +38 450.4 71.0 -6 65.0 19.3 38.3 63.3 60.5 70.6 +0.4 Deposits 499.6 518.5 515.9 -11 505.2 -3 +19 475.5 +13 +8 64% 64% 64% 6

  17. Slide 17: Interest Accounts

    Interest Accounts Consolidated (Baht Billion) Interest Income 30.37 Interest Expense 26.76 +14% 12.22 +32% YoY 10.67 + 5% QoQ +15% YoY + 4% QoQ -13% 10.58 11.09 8.39 3.82 3.32 3.68 3Q/07 2Q/08 3Q/08 9M/07 9M/08 3Q/07 2Q/08 3Q/08 9M-07 9M-08 Net Interest Income • Net Interest Income in 3Q/08 and 9M/0

  18. Slide 18: Net Interest Margin

    Net Interest Margin Consolidated 6.52% 6.39% 6.16% 5.75% 5.43% 4.28% 4.14% 4.02% 3.28% 3.12% 2.33% 2.32% 2.46% 2.77% 2.47% 3Q/07 2Q/08 3Q/08 9M/07 9M/08 Yield on Earning Assets Cost of Funds NIM • 3Q/08 NIM improved remarkably. • A rising trend of NIM is expected to continue with expansion in retail

  19. Slide 19: Non Interest Accounts

    Non Interest Accounts Consolidated (Baht Billion) Non-Interest Income 6.77 Normalized for Non-Interest Expense CDO MTM -48% YoY 5.78 5.06 15.58 -47% QoQ -13% 5.67 13.37 +17% 2.35 2.02 4.03 +27% YoY 2.22 2.18 +2% QoQ 1.17 1.96 2.00 5.34 5.43 1.42 4.28 5.02 5.94 1.72 1.89 2.09 3Q/07 2Q/08 3Q/08 9M/07

  20. Slide 20: Revenue Structure

    Revenue Structure Consolidated Non interest income / Total income* Fee income / Total income* 25% 22% 26% Normalized for CDO MTM 14% 19% 20% 24% 20% 22% 24% 23% 30% 28% 86% 81% 80% 76% 80% 78% 76% 77% 70% 72% 3Q/07 2Q/08 3Q/08 9M/07 9M/08 3Q/07 2Q/08 3Q/08 9M/07 9M/08 Net Interest Income Non Interes

  21. Slide 21: Cost-to-Income Ratio

    Cost-to-Income Ratio Consolidated 64.3% 65.8% 62.9% 58.7% 58.8% 57.5% 58.4% 58.8% Normalized for CDOs MTM 3Q/07 2Q/08 3Q/08 9M/07 9M/08 • Quarterly cost to income (normalized for CDOs MTM) increased slightly QoQ, while 9M/08 cost to income improved as revenue grew at a faster rate than operating exp

  22. Slide 22: NPLs and Coverage Ratio

    NPLs and Coverage Ratio 58 62 100.0 55 Coverage Ratio (%) 55 57 50 15.5% 11.1% NPLs 10.6% (Baht Billion) 12.0% 8.8% 50.0 7.0% 7.9% 10.0% 7.1% 6.5% 70.6 5.3% 65.0 4.3% 63.3 53.7 42.6 47.0 45.7 39.0 34.2 30.1 27.3 23.9 0.0 BAY Consol BAY Consol BAY Consol 2007 June 2008 Sep 2008 BAY Net NPLs BAY Gross

  23. Slide 23: Profit before Provision and Tax and Net Income

    Profit before Provision and Tax and Net Income Consolidated (Baht Billion) Profit before Net Income Provision and Tax Normalized for CDO MTM 4.05 10.9 2.88 9.18 2.00 1.02 -20% YoY 6.95 +32% -0.3% QoQ 3.92 3.74 3.86 3.02 3.01 -4.96 3Q/07 2Q/08 3Q/08 9M/07 9M/08 3Q/07 2Q/08 3Q/08 9M/07 9M/08 • Operati

  24. Slide 24: Key Performance to Date: Well on Track against 2008 Targets

    Key Performance to Date : Well on Track against 2008 Targets 2008 Consolidated 2007 1Q/08 2Q/08 3Q/08 9M/08 Targets -17.3 bn +87.7 bn +8.0 bn +12.8 bn +108.6 bn +124 bn Loan Growth (Good Bank) (-4.4% ) (+23.1% ) (+1.7% ) (+2.7% ) (+28.6% ) (+32.4% ) 70.6 bn 71.0 bn 65.0 bn 63.3 bn 63.3 bn Bad Bank (

  25. Slide 25: Economic Outlook

    Economic Outlook Investor Relations Department 25 25

  26. Slide 26: Thailand Economic Outlook

    Thailand Economic Outlook Key forecasts and assumptions Situation & Outlook 2008 2009 % change 2007 ¾ 2008 Actual Forecast Forecast ƒ Compared with 4.8% in 2007, 2008 economic growth is GDP 4.8 5.7 (H1) 4.5-5.2 3.0-4.0 estimated at 4.5-5.2%, mainly driven by export sector. Amid Total Consumption 2.7

  27. Slide 27: Investor Relations Department contact

    Investor Relations Department. Telephone : (662) 296 2977 Fax : (662) 683 1341. E-mail : irgroup@krungsri.com Investor Relations Department 27 27

  28. Slide 28: Appendix

    Appendix Investor Relations Department 28 28

  29. Slide 29: Background: Bank of Ayudhya PCL (BAY)

    Background : Bank of Ayudhya PCL (BAY) } Celebrating 63rd anniversary in April 2008 } Providing a full banking services with a service-led strategy - Corporate - SME - Consumer - Treasury and Investment } Leveraging strong branding & distribution network } Started up a credit card JV with GE in 2001

  30. Slide 30: Business Profile: Franchise – Market Share in Key Areas

    Business Profile: Franchise – Market Share in Key Areas As of September 2008 Baht Billion CONSOLIDATED F/S Ranking Assets % Deposits % Loans % L/D% Assets Deposits Loans BBL 1,652 20.0% 1,291 20.8% 1,180 19.5% 1 1 1 91.5% KTB 1,319 16.0% 1,063 17.2% 1,031 17.0% 2 2 2 97.0% SCB 1,197 14.5% 896 14.5%

  31. Slide 31: BAY Group Offers a Full Range of Financial Services

    BAY Group Offers a Full Range of Financial Services Group Companies BAY’s Shareholding As of Sep 08 Credit Card Krungsriayudhya Card Co., Ltd 49.9 % Non-life Insurance The Ayudhya Insurance Plc. 10.9% Life Insurance Ayudhya Allianz C.P. Life Plc. 8.5% Fund Management Ayudhya Fund Management Co., Ltd

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