Bangkok Bank Public Company Limited · SET:BBL
Bangkok Bank Public — Investor Presentation (November 2014)
33 slides from Bangkok Bank Public's investor presentation, Nov 19, 2014
Slide 1: Investor Presentation November 2014
Investor Presentation November 2014 19.11.2014
Slide 2: Table of Contents
Table of Contents 1. Thai economy 2. Bangkok Bank’s position 3. Bangkok Bank’s financial results
Slide 3: Thai economy
Thai economy Economic recovery is in the early stage, and opportunities for future growth are still intact
Slide 4: Thai economy is recovering
Thai economy is recovering GDP growth YoY (%) 31 Oct 13 22 May 14 The government General Prayuth passed the Chan-ocha 4.0-6.0% amnesty bill. announced 4.0-5.0% Start of Bangkok military coup. protests. 5.4% 2.9% 2.7% 0.6% 0.4% 0.6% -0.5% 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14f 2015f Source: Nationa
Slide 5: Weaker headwinds, stronger tailwinds
Weaker headwinds, stronger tailwinds Headwind Tailwind Political issues AEC Integration Capital outflows Infrastructure projects will help support the economy later Urbanization 5
Slide 6: Thai economy is in an early stage of recovery
Thai economy is in an early stage of recovery Consumption indicators Investment indicators Index (2000=100) Index (2000=100) 148 150 250 60 120 230 146 55 90 210 144 50 60 190 142 45 30 170 140 0 150 40 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Aug Sep Oct Nov Dec Jan Feb Mar Apr M
Slide 7: 2015 fiscal budget helps drive the economy
2015 fiscal budget helps drive the economy Current Double-track rail expenditure Bt 2.126 trillion (83% of total budget) 2015 Fiscal Budget Electric train lines Bt 2.575 trillion (20.3% of forecast 2015 GDP1) Investment Improved trains expenditure Bt 450 billion (17% of total budget or 3.6% of forec
Slide 8: 8-year infrastructure plan from 2015 to 2022
8-year infrastructure plan from 2015 to 2022 Baht 3.0 trillion investment The expected results 1. Development of water 1. Reduce logistics costs, not less than transportation network 2% 2. Increase border freight 5% 2. Improvement of highway network 3. Increase mass transit from 5% to 30% 3. Enhance
Slide 9: Thailand's strategic location will also bring benefits
Thailand’s strategic location will also bring benefits Linkages in the region Economic zones Border trade Laos Myanmar Baht 62.88 bn Myanmar Mae sai/ Chiang Saen/ Vietnam Baht 46.67 bn +12.6% Laos Chiang Khong, Chiang Rai +18.2% Ex: Diesel fuel, Cars, Vietnam Nakhon Iron and steel Phanom Nongkhai Ex
Slide 10: Bangkok Bank
Bangkok Bank Strong fundamentals: well placed to benefit from opportunities
Slide 11: About Bangkok Bank
About Bangkok Bank BBL is in a good position to grow, as the next credit cycle shifts from consumption to investment BBL will benefit the most from growing regional trade due to its strong overseas operations BBL has the strong balance sheet to support growth due to its high capital and liquidity po
Slide 12: As the leader in business lending, BBL will benefit when investment returns
As the leader in business lending, BBL will benefit when investment returns 17% market share in 31% market share in 87% of loan portfolio is total loans /1 business loans/3 business loans International BBL 16% System/4 BBL Consumer Large System/2 17% Corporates (exc. BBL) (exc. BBL) 31% 13% 42% 83%
Slide 13: Strong domestic network allows BBL to capture growth opportunities
Strong domestic network allows BBL to capture growth opportunities from urbanization and cross-border trading Nakhon Phanom 10 new business centers Loei 8 opened in border provinces Tak Kalasin Myawaddy Border 237 business centers Thailand 203 are located in provinces Sa Kaeo Nakhon Pathom
Slide 14: Strong overseas network allows BBL to service clients expanding in the region
Strong overseas network allows BBL to service clients expanding in the region 28 international operations in 13 economies Kowloon 1954 1955 Tokyo UK Vietnam 57 years Singapore 1957 22 years London 1959 Kuala Lumpur USA Central District 1961 China/1 Hong Kong 1965 New York 30 years 28 years Taipei Os
Slide 15: As the leader in international lending, BBL will benefit
As the leader in international lending, BBL will benefit when Thai corporates expand overseas Number of international branches/1 International lending as a % of total lending 30 28 20% 16.5% 25 16% 20 12% 15 10 8% 10 9 6 4% 4 2.2% 2.0% 1.6% 5 2 1.3% 1.3% 0% 0 BBL SCB KBank BAY TMB KTB BBL KBank KTB
Slide 16: The strongest liquidity in the industry
The strongest liquidity in the industry allows BBL to have greater flexibility in providing funding to its customers LDR always lower than system Liquid assets at 1/3 of total assets As at September 2014 110% 108.2% 100% System LDR/1 92.6% 96.6% 90% BBL Liquid 90.7% assets Other 80% 31% assets 69% 7
Slide 17: High capital allows BBL to support business expansion
High capital allows BBL to support business expansion with fewer limitations Common Equity Tier 1 Tier 1 Capital Total Capital Capital Adequacy Ratio Adequacy Ratio Adequacy Ratio 20% /1 18.6% /1 /1 16.2% 16.2% 15% 11.0% 10% 8.5% 8.50% 7.0% 6.0% 5% 4.5% 0% Basel III Basel III Basel III BOT’s Basel I
Slide 18: Prudent management results steady dividend payments
Prudent management results steady dividend payments 10 50 41.4% 39.4% 40.9% 38.1% 36.6% 8 40 29.4% 30.0% 28.6% 6.50 6.50 6 6.00 30 Percent 5.00 Baht 19.1% 4 18.8% 4.00 4.00 4.50 4.50 20 2.75 3.00 3.00 3.50 2.00 3.00 2 1.75 1.75 2.00 2.00 10 1.00 1.25 1.50 2.00 2.00 2.00 2.00 0.75 0.75 1.00 1.00 1.00
Slide 19: Financial results
Financial results Sustainable growth across business cycles September 2014
Slide 20: Loans flattened
Loans flattened Large corporates declined due to repayments from a few customers; however other business units continued to grow Loan amount Loan portfolio Baht bn 2,000 +9.2% -0.6%YTD +9.1% International +17.1% 16% 1,500 Large +9.9% Consumer Corporates -3.2% 13% 42% 1,000 1,753 1,741 1,604 1,470 Sm
Slide 21: Asset quality remained manageable
Asset quality remained manageable Increase in NPLs was customer-specific rather than due to portfolio deteriorating NPL amount NPL ratio Baht bn 80 6% 4.4% 60 55.6 4% 45.6 46.1 3.0% 42.6 42.3 43.2 40 2.7% 2.3% 2.2% 2.3% 2% 20 0 0% 2009 2010 2011 2012 2013 Sep-14 2009 2010 2011 2012 2013 Sep-14 21
Slide 22: Steady provisioning policy
Steady provisioning policy Provisioning expenses increased due to the prudent policy Provisioning expenses Loan loss reserves Baht bn Bps Baht bn 20 82 90 120 66 75 60 59 92.6 91.4 15 60 90 84.8 87.6 12.0 45 49 72.5 45 65.1 10 46.7 51.6 56.6 59.5 7.8 60 30 35.2 28.5 15 5 30 7.6 7.6 8.6 7.2 0 38.1 36
Slide 23: Coverage ratio remained adequate
Coverage ratio remained adequate Loan loss reserve coverage ratios were the highest in the industry LLR/NPL LLR/Loan 250% 8% BBL 200% 198% 6% BBL 5.2% 150% System/1 132% 4% System/1 3.8% 100% 2% 50% 0% 0% 2009 2010 2011 2012 2013 Sep-14 2009 2010 2011 2012 2013 Sep-14 Note: /1 System refers to 17 co
Slide 24: Retail deposits have been the major source of funds
Retail deposits have been the major source of funds Cost of deposits was among the lowest in the industry Deposits decreased slightly Lower cost of funds than system Baht bn -0.8% 2,000 +5.5% YTD 2.5% +15.5% System/1 +13.9% 2.2% 2.0% 1,500 +2.9% BBL +2.5% 2.0% 1.5% 1,000 1,935 1,919 1,835 1,588 1.0%
Slide 25: Net interest margin maintained at 2.44%
Net interest margin maintained at 2.44% Manageable NIM was mainly due to lower cost of deposits Lending yield -5 bps Deposit cost -8 bps 2.8% 2.76% 2.6% 2.55% 2.44% 2.44% 2.40% 2.39% 2.4% 2.36% 2.30% 2.2% 2.0% 2011 2012 2013 9M13 9M14 1Q14 2Q14 3Q14 Yearly Period Quarterly Net Interest Margin (%) No
Slide 26: Fee income is more diversified
Fee income is more diversified Growing fee income from business and retail customers by leveraging vast customer base and strong operations 2007 9M 2014 Bualuang Family Banking 11% 14% 7% 4% 9% 15% 15% 16% Supply Chain 23% 25% 35% 26% Cash Management /2 Bancassurance & Mutual funds Loan-related fees
Slide 27: 9M14: fee income growth declined slightly
9M14 : fee income growth declined slightly … however, bancassurance & mutual funds, global market services, and credit cards have continued to grow Net fee income Baht bn 25 +11.1% 20 +5.5% +4.9% -0.9% 15 10 21.2 18.1 19.1 16.1 16.0 +3.8% QoQ +5.4% YoY 5 5.2 5.3 5.5 0 2011 2012 2013 9M13 9M14 3Q13 2
Slide 28: Costs remained under control
Costs remained under control Cost-to-income and cost-to assets in line with the system average BBL’s cost-to-income ratio Low cost-to-assets and cost-to-income ratio For 9M2014 50% 40% 30% 45.2% 43.8% 43.5% 42.8% 42.5% 41.5% 40.9% 39.5% 46.8% 20% 42.5% 10% 1.8% 1.6% 0% 2011 2012 2013/1 9M13/19M14 3Q
Slide 29: Operating expenses well controlled
Operating expenses well controlled Investment in personnel, IT and network expansion continued Operating expenses breakdown Operating expenses For 9M 2014 Baht bn 78.1% YoY /2 50 15% +2.2% 6.1% YoY 40 8% 6.1% YoY +13.3% 54% 30 23% 37.9 37.1 20 36.1 7.2% YoY -2.8% QoQ 31.0 27.4 +10.1% YoY Personnel e
Slide 30: Networks and resources
Networks and resources Continuous investments to improve customer services 2011 2012 2013 Sep-14 +30 Branches 1,063 +68 1,131 +52 1,183 (+48) 1,213 +2 ATMs 6,770 +777 7,547 +925 8,472 (+111) 8,474 CDMs 1,036 +72 1,108 +34 1,142 +76 (+82) 1,218 +269 Employees 22,599 +1,492 24,091 +1,293 25,384 (+643)
Slide 31: Consistently delivering net profits across business cycles
Consistently delivering net profits across business cycles Our fundamental strengths and strategies have allowed us to withstand short-term volatility Baht bn 40 12.7% 30 -2.3% 20 35.9 31.8 28.2 27.6 27.3 6.0% QoQ 24.6 20.6 6.9% YoY 20.2 19.2 10 17.9 9.0 9.0 9.6 0 2006 2007 2008 2009 2010 2011 2012
Slide 32: Steadily improving ROA and ROE
Steadily improving ROA and ROE ROA and ROE steadily improving among volatile environment ROA ROE 2.0% 15.0% 12.0% 1.5% 9.0% 13.39% 1.0% 12.62% 12.35% 11.94% 11.57% 11.50% 11.23% 1.54% 1.45% 1.42% 1.41% 1.36% 1.34% 6.0% 1.19% 0.5% 3.0% 0.0% 0.0% 2009 2010 2011 2012 2013 9M13 9M14 2009 2010 2011 2012
Slide 33: 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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