Bank Of Ayudhya Public Co., Ltd. · SET:BAY
Bank Of Ayudhya Public — 10th AsiaPac Financials Investor Forum 2007
21 slides from Bank Of Ayudhya Public's conference presentation, Oct 30, 2007
Slide 1: Bank of Ayudhya Plc. - 10th AsiaPac Financials Investor Forum
Bank of Ayudhya Plc. 10th AsiaPac Financials Investor Forum 30 - 31 October 2007 11 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
Slide 2: Agenda
Agenda } BAY at a Glance and Recent Key Development } 9M/2007 Financial Performance } Outlook and Strategies going Forward 33 BAY at a Glance and Recent Key Development 44
Slide 3: Bank of Ayudhya PCL (BAY) Profile
Bank of Ayudhya PCL (BAY) } Founded in 1945, listed on SET since 1977 and became a public company in 1993 } Provide full banking services to both commercial and consumer clients } Strong branding & distribution network of > 560 branches 55 Profile } A top five largest bank in Thailand Consolidated T
Slide 4: Group Companies and GE Share Purchase
Group Companies BAY’s Shareholding 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. 99.9%, 10.0 % Prima Vest Asset Management Co., Ltd. Securities
Slide 5: The Next Phase of Growth
The Next Phase of Growth Leverage GE’s expertise into the Bank’s strengths BAY’s GE’s strengths expertise Corporate banking Consumer finance services SME banking Global best practice Branch network Risk management Strong local brand Corporate governance Local relationship Productivity Commitment 99
Slide 6: BAY's Plan to Acquire GECAL
BAY’s Plan to Acquire GECAL GE 33% 100% 100% THB 17 bn BAY GECAL TSS 104.5 mn shares 100% acquisition Auto hire purchase loan (approx. portfolio of THB 90 bn) transferred of THB 12 bn Synergy benefits from the deal: Schedule } Lower cost of fund ✔ BOD approved } Customers served through BAY’s more o
Slide 7: Loan Composition Moving Towards the Target
Loan Composition Moving Towards the Target Consolidated Current Post GECAL By 2010 (Sep 2007) Acquisition SME Corporate SME + Corporate SME Corporate 50% 34% 32% 41% 39% Retail Retail Retail 20% 34% 50% 13 13 Continuation of Strong Capital Base after GECAL Acquisition Bank only 20.33% 17.22% 4.70% 1
Slide 8: 2007: Strengthening the Foundation for the Next Phase of Growth
2007: Strengthening the Foundation for the Next Phase of Growth 15 15 Progress on 2007’s Focus on Strengthening the Foundation ● Drive a “bottom line” oriented ● Build strong controllership environment Build compliance infrastructure culture ● Change operating model to emphasize Profitability ◑ Expa
Slide 9: 9M/2007 Financial Performance
9M/2007 Financial Performance 17 17 Balance Sheet (THB bn) Consolidated 87.1% 84.5% 83.7% 81.0% 81.7% 666.3 666.2 647.8 646.8 575.4 559.9 563.5 535.4 526.2 497.4 460.3 458.6 453.8 448.1 420.1 2004 2005 2006 Jun 2007 Sep 2007 Assets Deposits Loans L/D Ratio • Slight reduction in loan in September 200
Slide 10: Interest Accounts and NIM
Interest Accounts (THB bn) Consolidated Interest Income Interest Expense 35.76 16.68 26.05 26.76 12.22 24.62 11.56 20.27 7.95 6.80 2004 2005 2006 9M-06 9M-07 2004 2005 2006 9M-06 9M-07 Net Interest Income 19.08 16.67 • Net Interest Income for 9M-07 14.49 14.54 13.47 increased slightly from the same
Slide 11: Non Interest Accounts and Revenue Structure
Non Interest Accounts (THB bn) Consolidated Non-Interest Income Non-Interest Expense 9.19 8.26 15.37 7.09 12.75 13.37 11.52 5.65 5.78 10.77 2004 2005 2006 9M-06 9M-07 2004 2005 2006 9M-06 9M-07 • Non-interest income for 9M-07 declined YoY because of reduction in special gain on investment. • Increas
Slide 12: Cost-to-Income Ratio and Risk Management Actions
Cost-to-Income Ratio Consolidated 65.8% 56.3% 54.4% 51.1% 53.4% 2004 2005 2006 9M-06 9M-07 • 9M-07 cost-to-income, increased as expected. It was driven mainly by 2007’s strengthening the foundation plan ie. staff training on consumer banking knowledge, consumer banking related IT system, and other i
Slide 13: NPLs and Coverage Ratio; Portfolio Management Update
NPLs and Coverage Ratio 53 57 55 45 44 Coverage Ratio (%) 46 50 49 ** 31 32 74.6 75.1 NPLs 63.9 63.1 62.8 57.2 58.2 (THB bn) 43.6 42.0 41.7 37.3 37.0 29.4 28.1 25.5 2004 2005 2006 Jun 2007 Sep 2007 BAY Net NPLs BAY Gross NPLs BAY+AAMC NPLs LLR BAY LLR BAY+AAMC Note: ** Provision to BoT requirement e
Slide 14: Profit before Provision and Tax, Net Income, ROAE & ROAA
Profit before Provision and Tax and Net Income (THB bn) Consolidated Profit before Net Income Provision and Tax 6.02 5.37 4.67 12.90 12.18 10.06 1.67 8.35 6.95 -4.96 2004 2005 2006 9M-06 9M-07 2004 2005 2006 9M-06 9M-07 • A weaker 9M-07 Profit before Provision and Tax registered mainly due to founda
Slide 15: Outlook: Thailand Economic Outlook
Outlook and Strategies going Forward 29 29 Thailand Economic Outlook GDP H2-07 = 4.0% - 4.5%, GDP 2008 = 4.5% - 5.5% } Public confidence improves with general election to take place as expected and supported by: ¾ Speedier disbursement of government budget ¾ Government measures to stimulate the econ
Slide 16: Strategies Going Forward and Conclusion
Strategies Going Forward } NPL resolution : NPL sales underway } Complete the planned activities on strengthening the foundation within 2007 } Continue to expand on retail banking sector by: ¾ Further explore inorganic growth opportunities ¾ Reignite mortgage lending as economic situation improves ¾
Slide 17: Thank You
THANK YOU =) E i I Appendix A)) BANK. OF AvUDHYA - _
Slide 18: Strengthening the Foundation: Profitability and Operational Excellence
Strengthening the Foundation: Profitability } Growth with New Product Initiations - Launched Personal Loan nationwide & reduced approval time by 50% - Launched Asia’s first “Cardless” ATM remittance service } Growth with Bancassurance - Launched new sales channel with Ayudhya Allianz C.P. Life (AACP
Slide 19: Strengthening the Foundation: Risk, Portfolio Management and Governance
Strengthening the Foundation: Risk & Portfolio Management } Validated portfolio classification } Strengthened loan provisions } Standardized Consumer Underwriting Policies } Established proactive portfolio tracking } Reassessed Basel II readiness 37 37 Strengthening the Foundation: Governance & Comp
Slide 20: New Product Launch
Award Best Trade Bank in Thailand 2007 By Euromoney – Trade Finance Magazine (voted by Trade Business Entrepreneurs) 39 39 New Product Launch Smile Cash (P-Loan) Bancassurance 40 40
Slide 21: New Product Launch
New Product Launch Savings Deposit Time Deposit Debenture Bill of Exchange • All recent fund raising has given management flexibility in accommodating business expansion, both organic and inorganic. 41 41
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