Bank Of Ayudhya Public Co., Ltd. · SET:BAY
Bank Of Ayudhya Public — 2Q 2008 Earnings Presentation
29 slides from Bank Of Ayudhya Public's earnings presentation, Jul 21, 2008
Slide 1: 2Q/2008 and 1H/2008 Performance: Delivering Against Plan
2Q/2008 and 1H/2008 Performance “Delivering Against Plan” 21 July 2008 CONFIDENTIAL Investor Relations : Analyst Briefing January 21, 2008
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
Slide 3: Agenda
Agenda } Update of Progress in 1H/08 } Financial Performance for 2Q/08 and 1H/08 } Outlook for 2H/08 Investor Relations Department 33
Slide 4: Update of Progress in 1H/08
Update of Progress in 1H/08 Investor Relations Department 44
Slide 5: BAY's Profile
BAY’s Profile Assets, Loans & Deposits (Ranked #5) Network and Employees Consolidated (as of Jun 08) (Baht Billion) Number Domestic Branches 570 751 666 652 ATMs 2,659 563 540 516 500 460 450 Exchange Booth 76 Employees 9,424 2006 2007 1H/08 Assets Loans Deposits Investor Relations Department 55
Slide 6: BAY's Shareholding Structure
BAY’s Shareholding Structure Shareholding Structure (as of Jun 08) • Warrant exercised in Mar and Jun 08 totaling 53.4 million units. GE ** R Group * 26.0% • Outstanding warrants (maturing in 34.4% Aug 08) = 273.5 million. Others • After dilution GE and R Group will 39.6% remain as major shareholder
Slide 7: Key Development in 1H/08
Key Development in 1H/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 to better match funding for auto hire purchase business. 9 Improvement of asset quality from 6 billion of NPL sold. Investor Rela
Slide 8: BAY's Auto HP Business Structure
BAY’s Auto HP Business Structure GECAL’s Funding Structure BAY’s Auto HP Group Total Portfolio GE 14 bn BAY BAY (As of Jun 08) 109 bn Local Bank 20 bn 34 bn 36 bn AYCL New cars financing Total Funding GECAL Now focusing on used cars 70 bn and motorcycle financing + AYHP and refinancing . GECAL AYAL
Slide 9: Debenture Issuance: An Alternative for Better Matched Funding
Debenture Issuance: An Alternative for Better Matched Funding Issuance Terms & Rate Amount (Baht billion) Mar 08 2 year 3.85% 10.5 3 year 4.00% 5.5 4 year 4.25% 4.0 Total 20.0 Jun 08 2 year 4.25% 16.8 3 year 4.50% 5.1 Total 21.9 Grand Total 41.9 • A well-planned fund raising option resulted in a mor
Slide 10: Update on NPL Sale
Update on NPL Sale Consolidated (Baht Billion) NPL Movement 1H 08 } The sale of corporate loans 16.4% 15.5% tranche of Baht 6 billion has been 13.6% completed. 11.1% 75.1 70.6 63.2 64.9 2H 08 } Additional Baht 10 billion in sales is expected in 2H/08. } The transactions will not have significant imp
Slide 11: Distribution Network Expansion in 1H/08
Distribution Network Expansion in 1H/08 • Selective location based on potentiality and profitability of the areas. • Seven new branches opened in 1H/08 (3 new in Phuket which made BAY become Top 2 in Phuket). • Leveraging branch network to support GECAL and Car4Cash products. Investor Relations Depa
Slide 12: New Consumer Banking Products / Services Launches in 1H/08
New Consumer Banking Products / Services Launches in 1H/08 SMS Banking – Mar 08 • Financial information provided through short message service - Financial Alert - Financial inquiring - ATM money transfer alert - Bank information inquiry Krungsri Smile Cash Line – May 08 • Personal loans services - c
Slide 13: Loan Composition Moving Towards the Target
Loan Composition Moving Towards the Target Consolidated 2007 June 2008 By 2010 50 % 44% 35% 30% 34% 22% 50% 35% Auto HP 20% Mortgage 11% Personal Loan & Others 4% Corporate Retail SME Investor Relations Department 13 13
Slide 14: Strong Capital Base Maintained
Strong Capital Base Maintained BAY+AAMC 19.80% 17.35% 4.68% 4.30% 11.59% CAR required Tier 2 * 4.24% by BOT at 7.47% 15.12% 13.05% 8.5% Tier 1 2006 2007 Jun 08 THB bn. 2006 2007 Jun 08 Tier 1 35.98 67.78 65.80 Tier 2 * 20.44 21.01 21.67 Total Capital 55.85 88.79 87.47 • Basel II will be implemented
Slide 15: 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
Slide 16: Financial Performance for 2Q/08 and 1H/08
Financial Performance for 2Q/08 and 1H/08 Investor Relations Department 16 16
Slide 17: Balance Sheet
Balance Sheet Consolidated (Baht Billion) Assets Liabilities & Equity +99 751.2 751.2 +99 666.3 652.4 81.2 666.3 652.4 47.1 +3 210.9 55.7 78.1 154.1 +9 206.0 202.0 74.7 +79 +90 563.5 540.3 499.6 +16 515.9 460.3 450.4 2006 2007 Jun-08 2006 2007 Jun-08 Loans Other assets Deposits Other Liabilities Equ
Slide 18: Loans & Deposits
Loans & Deposits Consolidated Loans Deposits + (Baht Billion) 571.8 +88 538.5 +2 540.3 Deposits 552.5 +19 + 513.6 +39 71.0 64.9 Debenture 450.4 -6 55.9 14.0 34.0 70.6 +0.4 Deposits 499.6 518.5 515.9 -3 +19 +88 +8 475.4 64% 64% 64% 467.5 379.8 33% 33% 33% 3% 3% 3% 2007 Mar-08 Jun-08 2007 Mar-08 Jun-0
Slide 19: Interest Accounts
Interest Accounts Consolidated (Baht Billion) Interest Income 19.47 Interest Expense 18.35 +6% +18% YoY +19% QoQ 10.58 8.92 8.88 -11% YoY 8.90 +16% QoQ 6.85 4.15 -23% 3.17 3.68 2Q/07 1Q/08 2Q/08 1H/07 1H/08 2Q/07 1Q/08 2Q/08 1H/07 1H/08 Net Interest Income • Net Interest Income in 2Q/08 and 1H/08 in
Slide 20: Net Interest Margin
Net Interest Margin Consolidated 6.17% 6.00% 5.96% 5.77% 5.54% 4.02% 3.57% 3.86% 3.09% 3.09% 2.89% 3.05% 2.32% 2.28% 2.15% 2Q/07 1Q/08 2Q/08 1H/07 1H/08 Yield on Earning Assets Cost of Funds NIM • A rising trend of NIM is expected to continue with expansion in retail lending and improvement in asset
Slide 21: Non Interest Accounts
Non Interest Accounts Consolidated (Baht Billion) Non-Interest Income Non-Interest Expense 10.24 9.13 +48% YoY Normalized for CDO MTM +12% +8% YoY +18% QoQ 4.84 +9% QoQ 3.98 3.63 5.34 2.35 +9% 4.94 4.91 2.53 2.18 1.84 1.47 3.67 1.96 2.49 3.30 3.85 1.27 1.71 1.96 1.89 1.75 2Q/07 1Q/08 2Q/08 1H/07 1H/
Slide 22: Revenue Structure
Revenue Structure Consolidated Non interest income / Total income* Fee income / Total income* 31% 25% 28% Normalized for CDO MTM 24% 24% 24% 24% 20% 23% 22% 20% 22% 28% 76% 76% 76% 76% 80% 77% 78% 80% 78% 72% 2Q/07 1Q/08 2Q/08 1H/07 1H/08 2Q/07 1Q/08 2Q/08 1H/07 1H/08 Net Interest Income Non Interes
Slide 23: Cost-to-Income Ratio
Cost-to-Income Ratio Consolidated 79.0% 69.9% 65.5% 58.8% 61.7% 60.0% 57.5% 58.7% Normalized for CDOs MTM 2Q/07 1Q/08 2Q/08 1H/07 1H/08 • Quarterly cost to income improved YoY and QoQ as revenue grew at a faster rate than operating expenses. • 1H/08 cost to income improved even with CDO mark to mark
Slide 24: NPLs and Coverage Ratio
NPLs and Coverage Ratio 57 55 57 58 53 Coverage Ratio (%) 55 55 50 50 46 16.4% NPLs 15.5% 11.9% (Baht Billion) 13.6% 11.1% 12.6% 9.9% 12.0% 11.0% 8.8% 9.4% 10.2% 7.4% 75.1 9.0% 7.1% 70.6 71.0 8.6% 64.9 63.2 57.2 7.1% 5.8% 54.4 53.7 5.8% 5.3% 47.2 47.0 43.6 43.6 42.0 39.8 39.8 37.3 30.1 30.4 27.3 25.
Slide 25: 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 7.21 Normalized for CDO MTM 6.35 +186% YoY 3.03 +44% QoQ 2.00 1.03 3.91 3.74 3.94 3.30 +61% 2.61 1.31 -7.83 -8.96 2Q/07 1Q/08 2Q/08 1H/07 1H/08 2Q/07 1Q/08 2Q/08 1H/07 1H/08 • Operat
Slide 26: Key Performance & 2008 Targets
Key Performance & 2008 Targets 2008 Consolidated 2007 1Q/08 2Q/08 1H/08 Targets -17.3 bn +87.7 bn +7.9 bn +95.6 bn +124 bn Loan Growth (Good Bank) (-4.4% ) (+23.1% ) (+1.7% ) (+25.2% ) (+32.4% ) 70.6 bn 71.0 bn 64.9 bn 64.9 bn Bad Bank (NPL) 58 bn +7.4 bn +0.4 bn -6.1 bn -5.7 bn -9.9 bn +88.1 bn +1.
Slide 27: Outlook for 2H/08
Outlook for 2H/08 Investor Relations Department 27 27
Slide 28: Thailand Economic Outlook
Thailand Economic Outlook Key forecasts and assumptions Situation & Outlook % yoy 2006 2007 2008F • Business and consumer confidence drops Actual Forecast substantially from the beginning of the year due mainly to political factor and rising inflation. GDP 5.1 4.8 6.0 (Q1) 4.5-5.2 • Domestic demand
Slide 29: Investor Relations Department contact
Investor Relations Department. Telephone : (662) 296 2977 Fax : (662) 683 1341. E-mail : irgroup@krungsri.com Investor Relations Department 29 29
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