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

Bank Of Ayudhya Public — 6th Annual ASEAN/India Investor Event 2008

18 slides from Bank Of Ayudhya Public's conference presentation, August 2008

  1. Slide 1: 6th Annual ASEAN/India Investor Event, Singapore

    6th Annual ASEAN/India Investor Event Singapore 4 - 5 August 2008 CONFIDENTIAL Investor Relations : Analyst Briefing January 21, 2008 Important Notice This presentation has been prepared by Bank of Ayudhya Public Company Limited (the “Bank”) solely for informational purposes. It does not constitute

  2. Slide 2: Agenda / Update of Progress in 1H/08

    Agenda } Update of Progress in 1H/08 } Financial Performance for 2Q/08 and 1H/08 } Outlook for 2H/08 Investor Relations Department 33 Update of Progress in 1H/08 Investor Relations Department 44

  3. Slide 3: BAY's Profile and Shareholding Structure

    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 BAY

  4. Slide 4: Key Development in 1H/08; Auto HP Business Structure

    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

  5. Slide 5: Debenture Issuance; Update on NPL Sale

    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

  6. Slide 6: Distribution Network Expansion; New Consumer Banking Products

    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

  7. Slide 7: Loan Composition Moving Towards the Target; Strong Capital Base

    Loan Composition Moving Towards the Target Consolidated 2007 June 2008 By 2010 50 % 35% 30% 44% 34% 22% 50% 35% Auto HP 20% Mortgage 11% Personal Loan & Others 4% Corporate Retail SME Investor Relations Department 13 13 Strong Capital Base Maintained BAY+AAMC 19.80% 17.35% 4.68% 4.30% 11.59% CAR req

  8. Slide 8: Update on CDO Investment; Financial Performance for 2Q/08 and 1H/08

    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

  9. Slide 9: Balance Sheet; Loans & Deposits

    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

  10. Slide 10: Interest Accounts; Net Interest Margin

    Interest Accounts Consolidated (Baht Billion) Interest Income Interest Expense 19.47 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

  11. Slide 11: Non Interest Accounts; Revenue Structure

    Non Interest Accounts Consolidated (Baht Billion) Non-Interest Income Non-Interest Expense 10.24 9.13 +48% YoY Normalized for CDO MTM +12% 4.84 +8% YoY +18% QoQ +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/

  12. Slide 12: Cost-to-Income Ratio; NPLs and Coverage 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

  13. Slide 13: Profit before Provision and Tax; Key Performance & 2008 Targets

    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

  14. Slide 14: Outlook for 2H/08; Thailand Economic Outlook

    Outlook for 2H/08 Investor Relations Department 27 27 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 GDP 5.1 4.8 6.0 (Q1) 4.5-5.2 mainly to pol

  15. Slide 15: Appendix

    Investor Relations Department. Telephone : (662) 296 2977 Fax : (662) 683 1341. E-mail : irgroup@krungsri.com Investor Relations Department 29 29 Appendix Investor Relations Department 30 30

  16. Slide 16: Background: Bank of Ayudhya PCL; Market Share in Key Areas

    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

  17. Slide 17: GE Partnership and Business Objectives

    BAY Group Offers a Full Range of Financial Services Group Companies BAY’s Shareholding As of Mar 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

  18. Slide 18: GECAL Acquisition Completed in February 2008

    GECAL Acquisition Completed in February 2008 GECAL acquisition made BAY a market leader of auto HP Yield & NIM 11.8% 12.1% GE 10.7% 7.4% 6.5% 6.9% 33% 100% 100% 5.9% 5.7% 4.4% Price = 16.2 bn 3.2% BAY GECAL TSS 3.0% 3.2% 100% acquisition Assets size = 77.8 bn 2005 2006 2007 Loan port = 77.6 bn Auto

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