Bangkok Bank Public Company Limited · SET:BBL
Bangkok Bank Public — Bangkok Bank — FY2021 Earnings Presentation
35 slides from Bangkok Bank Public's earnings presentation, February 2022
Slide 1: Investor Presentation For 2021
Investor Presentation For 2021
Slide 2: Bangkok Bank agenda
Bangkok Bank Operating environment 2021 Financial performance 2022 Financial target 2
Slide 3: Omicron variant is now the dominant COVID-19 strain
The Omicron variant is now the dominant COVID-19 strain in Thailand and other countries around the world 3 Source: Worldometer 3
Slide 4: Impact of Omicron more limited than expected; global economy recovers
However, the impact of Omicron variant is much more limited than expected, the global economic continues to recover 4 Source: IMF 4
Slide 5: Thailand outdoor activities declined slightly below reopening period
For Thailand, outdoor activities has declined slightly below the reopening period in November and December Data Update – 25 January 2022 5 Source: Google, Macrobond 5
Slide 6: Rebound of the Thai economy coincided with reopening of borders
Rebound of the Thai economy in November and December coincided with the reopening of our borders Economic Indicator - Demand Economic Indicator - Supply Crop Production 6 Source: www.bot.or.th 6
Slide 7: Thailand's exports surged 17% YoY in 2021
Thailand’s exports surged 17% YoY in 2021 Top 10 Thai Export Products - 2021 Iron, steel, and their products -12.7 40.1 Mechinary and parts -11 21.6 Electrical integrated circuits -5.7 18.7 Refined Oils -26.9 65.2 Gems and jewelry 16 -44.8 Chemicals -11.2 45.4 Plastic resins -13.1 41.1 7.8 Rubber pr
Slide 8: Successful vaccination rollout programs around the world
This is due to successful vaccination rollout programs around the world which allow part of our lives to return to normal Balanced, effective restrictions and control measures Successful Vaccination Campaign Number of new COVID-19 cases Percent 100% 24,000 20,000 Latest. 74.17 16,000 50% 12,000 8,00
Slide 9: Vaccinations rollout progress around the world
Vaccinations rollout progress around the world As of Feb 1, 2022 4.81 billion people has been vaccinated at least a dose. 9 9
Slide 10: Impacts on the Thai economy: activity to rebound after lockdown
Impacts on the Thai economy : Activity to rebound after the lifting of lockdown measures GDP growth Global Exports Large scale recovered, YoY (%) economic fiscal stimulus easing of recovery lockdown Strong Baht paved way for Global financial crisis Great floods appreciation up Brexit a recovery in t
Slide 11: Implications to Thai businesses
Implications to Thai businesses Competition in the New Normal Restarting Businesses Liquidity Support 2020 2021 2022 2023 Domestic International Tourism Tourism Covid control Public infrastructure Vaccine rollout projects Reopening Support the economy 11 11
Slide 12: Challenges for 2022
Challenges for 2022 • Rising inflation • Taper Tantrum and increasing volatilities in the global financial markets • US-China trade war • Geopolitics 12 12
Slide 13: CPI rose 2.17% YoY in December 2021
CPI, a main gauge of inflation, rose 2.17 % YoY in December 2021, led by higher costs of energy and foodstuffs Thailand Consumer Price Index (CPI) Headline Core 2.17 0.29 13 Source: Thailand Bureau of Trade & Economic Indices, Macrobond
Slide 14: International network to capture business relocation into Asia
Our international network will allow us to capture business relocation into Asia 5 1,059 nearly 300 7 14
Slide 15: Growth upside from regional integration within ASEAN
… and growth upside from regional integration within ASEAN Gateway to the CLMV (1) region North-South Corridor Laos Northern – 2019/2020 GDP growth: Corridor 5.5%/0.3% – 2020 Total trade with Thailand: Northeastern Corridor US$6Bn (8% 10Y CAGR) (2)(3) Mae sai/ Chiang Saen/ Chiang Khong, Chiang Rai E
Slide 16: Bangkok Bank agenda
Bangkok Bank Operating environment 2021 Financial performance 2022 Financial target 16
Slide 17: 2021 Financial Highlights
2021 Financial Highlights Prudent approach has been key to delivering sustainable returns over the years 2021 profit recovered with disciplined balance sheet management Net profit Net interest income +54.3% YoY +6.6% YoY • Net Profit rose 54.3% with diversified income stream Net fees and Operating e
Slide 18: Prudent and diversified approach to loan growth
Prudent and diversified approach to loan growth Loan Loan by business unit Billion Baht % of composition +9.3% YTD International 2,588 25% Corporate 42% 2,368 Dec-21/1 Consumer 12% 2,083 6% 2,061 Business 15% 2,004 Commercial Loan by industry % of composition 13% Real estate and construction Housing
Slide 19: NII increased reflecting full-year Permata's result; NIM declined
NII increased reflecting full-year Permata’s result and cost management; NIM declined under low interest rate environment Net interest income NIM, Yield on earning asset, Cost of fund Billion Baht % +6.6% YoY 82.2 77.0 71.4 71.1 66.6 3.68% 3.72% 3.72% 3.28% 2.92% 2.32% 2.40% 2.35% 2.24% 2.10% 1.54%
Slide 20: Net fees growth driven by loan-related fee, wealth management and securities
Net fees growth driven by loan-related fee, wealth management and securities business Net fees and service income Fees and service income Billion Baht % of composition +18.2% YoY 28.5 29.2 12% 12% 13% 27.5 27.6 20% 28% 24.7 17% 20% 21% 8% 23% 8% 7% 22% 22% 7% 21% 19% 6% 19% 15% 24% 24% 24% 22% 19% 1
Slide 21: Improvement in CIR with well-disciplined cost management
Improvement in CIR with well-disciplined cost management Operating expenses Cost to income ratio Billion Baht % +2.0% YoY 66.0 67.3 55.2 55.0 48.9 55.6% 50.0% 43.5% 45.4% 41.1% /1 /1 /1 /1 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 Permata’s expense for 21 May – 31 Dec 2020 and one-time integ
Slide 22: Net profit rose 54.3% with diversified income stream
Despite the Covid-19 pandemic, net profit rose 54.3% with diversified income stream Total income Net profit/2 Billion Baht Billion Baht 160 +13.3% YoY 140 133.7 134.5 121.4 118.7 17% 120 112.5 26% 18% 14% 100 16% 22% 21% 23% 21% 80 24% 35.3 35.8 +54.3% YoY 60 33.0 26.5 40 65% 61% 59% 59% 53% 17.2 20
Slide 23: Stable credit cost while asset quality remained manageable
Stable credit cost while asset quality remained manageable Expected credit loss (Provision), Credit cost NPL amount, NPL ratio Billion Baht , % Billion Baht , % 4.5% 3.9% 3.9% 1.8% 60.0 4.0% 3.4% 3.4% 3.2% 200.0 3.5% 3.0% 150.0 1.6% 1.6% 2.5% 87.4 104.4 101.1 2.0% 50.0 1.5% 80.1 79.1 100.0 1.4% 1.4%
Slide 24: Healthy funding and liquidity position
Healthy funding and liquidity position Loan-to-deposit ratio Liquid assets/2 % % of total assets 38.6% 98.3% 96.3% 96.3% 35.5% 94.2% 34.2% 35.3% 92.3% 89.5% 32.7% 86.7% 86.9% 84.3% 82.0% /4 /4 /4 /4 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 System/1 BBL Deposit Liquidity coverage ratio/3 Bil
Slide 25: Solid capital position above minimum requirements
Solid capital position above minimum requirements Consolidated capital ratios Capital base % Billion Baht +11.6% YTD 560 479 502 103 20.0% 19.6% 420 427 71 72 24 36 36 24 18.2% 18.0% 3.0% 18.3% 1.5% 3.6% 1.5% 2.6% 431 457 384 390 407 0.8% 0.8% 2017 2018 2019 2020 2021 Tier 1 AT 1 Tier 2 Regulatory c
Slide 26: Bangkok Bank agenda
Bangkok Bank Operating environment 2021 Financial performance 2022 Financial target 26
Slide 27: 2022-2024 Focus
2022-2024 Focus Regionalization Urbanization Digitalization Quality Business Wealth & Platform Intelligent Growth Remodeling Wellbeing Partners Organization Sustainability Be Resilience, Be Responsible, Be Customer Centric, Be Caring, and Be Ethical 27
Slide 28: 2022 Financial target
2022 Financial target Consolidated 2022 Financial target Loan growth 4-6% NPL ratio (gross) Less than 4.0% Net interest margin Around 2.1% Net fee income growth Flat growth Cost to income ratio Low 50s% Expected credit loss Around 26,000 million Baht Note: The above financial targets are based on th
Slide 29: Appendix
Appendix re) Bangkok Bank
Slide 30: Financial position
Financial position Million Baht Dec-17 Dec-18 Dec-19 Dec-20 Dec-21 Growth YTD Loan 2,003,989 2,083,160 2,061,309 2,368,238 2,588,339 9.3% Deposit 2,310,743 2,326,470 2,370,792 2,810,863 3,156,940 12.3% LDR 86.7% 89.5% 86.9% 84.3% 82.0% -2.3% NPL/1 87,419 80,137 79,149 104,401 101,103 -3.2% NPL ratio
Slide 31: Financial performance – 4Q21
Financial performance – 4Q21 Million Baht 4Q20 3Q21 4Q21 Growth (%) QoQ YoY Net interest income 19,264 20,705 21,716 4.9% 12.7% Net fees and service income 6,356 7,373 7,607 3.2% 19.7% Other operating income 5,008 6,352 6,091 -4.1% 21.6% Total income 30,628 34,430 35,414 2.9% 15.6% Operating expense
Slide 32: Financial performance – Year
Financial performance – Year Million Baht 2017 2018 2019 2020 2021 Growth (%) YoY Net interest income 66,625 71,376 71,071 77,046 82,156 6.6% Net fees income 27,526 27,590 28,505 24,711 29,209 18.2% Other operating income 18,317 22,435 34,171 16,971 23,176 36.6% Total income 112,468 121,400 133,746
Slide 33: Network Dec-21
Network 2018 2019 2020 Dec-21 Branch/1 1,161 -13 1,148 -13 -20 1,128 -69 1,059 ATM /1 9,389 -27 9,362 -27 -312 9,050 -375 8,675 CDM /1 1,296 -17 1,279 -17 -22 1,257 -72 1,185 Employee/2 25,287 -244 25,043 -244 -684 24,359 -1,667 22,692 Note: Consolidated /1 Domestic operation /2 Exclude Permata’s em
Slide 34: Long-standing international presence in 14 economies
Long-standing international presence in 14 economies nearly 300 branches in Indonesia ASEAN Other important Economies • Singapore 64 years (1) • Laos 28 years (2) • Hong Kong 67 years (2) • United States 56 years (1) • Malaysia/1 62 years (5) • Philippines 26 years (1) • Japan 66 years (2) • China/1
Slide 35: For further information
For further information Contact: Investor Relations team Tel (66) 2 626 4981 Email: IR@bangkokbank.com 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 recipient withou