Bank Of Ayudhya Public Co., Ltd. · SET:BAY
Bank Of Ayudhya Public — Non-Deal Roadshow (January 2008)
33 slides from Bank Of Ayudhya Public's roadshow presentation, Jan 21, 2008
Slide 1: "Platform for Growth" Global Roadshow
“Platform for Growth” Global Roadshow 14 and 16 April 2008 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 } BAY at a Glance and Recent Developments } 2007 Financial Performance } 2008 Plan and Strategy Investor Relations Department 33
Slide 4: BAY at a Glance and Recent Developments
BAY at a Glance and Recent Developments Investor Relations Department 44
Slide 5: Background: Bank of Ayudhya PCL (BAY)
Background : Bank of Ayudhya PCL (BAY) } Celebrating 63rd anniversary this month } Started up a credit card JV with GE in 2001 } Partnered with GE in January 2007 with vision to be “Thailand’s Most Admired Universal Bank” } Providing a full banking services with a Service-led Strategy - Corporate -
Slide 6: BAY's Profile and Shareholding Structure
BAY’s Profile and Shareholding Structure BAY Profile Shareholding Structure (as of 9 Jan 08) Dec 07 Consolidated Ranking Market Share (Baht bn)* Assets 652 5 8.3% R Group * GE ** 26.5% Deposits 500 5 8.4% 34.7% Loans 450 6 8.1% Others Number Ranking Market Share 38.8% Domestic Branches 566 5 11.2% A
Slide 7: Business Profile: Franchise – Market Share in Key Areas
Business Profile: Franchise – Market Share in Key Areas As of December 2007 CONSOLIDATED F/S Baht Billion Ranking Assets % Deposits % Loans % L/D% Assets Deposits Loans BBL 1,593 20.3 1,277 21.5 1,042 18.8 1 1 1 81.6 KTB 1,213 15.5 1,001 16.9 955 17.3 2 2 2 95.4 SCB 1,166 14.9 850 14.3 868 15.7 3 3
Slide 8: BAY Group Offers a Full Range of Financial Services
BAY Group Offers a Full Range of Financial Services Group Companies BAY’s Shareholding As of Feb 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
Slide 9: GE Partnership and Business Objectives
GE Partnership and Business Objectives Goals in 2010 ROE : 20% Retail loan portion of 50% Organic + Inorganic Growth Governance & Compliance Profitability 2007 Strengthening the Foundation Completed Built strong capital base and strengthened human capital Strengthened retail banking technology p
Slide 10: 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% 5.8% 5.6% 4.3% Price = 16.2 bn 3.1% BAY GECAL TSS 2.9% 3.0% 100% acquisition Assets size = 80.3 bn 2005 2006 2007 Loan port = 79.3 bn GECAL
Slide 11: Advantage from GECAL's Leading Position
Advantage from GECAL’s Leading Position Used Car and Refinancing Market Share Motorcycle Market Share GECAL TK Others 6% 5% HW 20% 4% TNB AIG GECAL 3% 6% 27% GL 2% TISCO Aeon 6% 2% NBank Other Dealers KK 22% 78% 13% SCBL 11% Note: As of 2007, Source: GECAL estimate • GECAL is #1 in the Auto HP marke
Slide 12: BAY's Auto HP Business Structure
BAY’s Auto HP Business Structure GECAL’s Current Funding Structure BAY’s Auto HP Group BAY GE & Local Bank BAY Total Portfolio Total Funding 34 bn 36 bn 108.9 bn 70 bn New cars 20.4 bn AYCL GECAL + AYHP Used cars and GECAL Refinancing 79.3 bn + AYHP Run down mode • Single Lending Limit issue expecte
Slide 13: Loan Composition Moving Towards the Target
Loan Composition Moving Towards the Target Consolidated 2006 2007 Post GECAL By 2010 Acquisition 50% 44% 34% 37% 29% 45% 37% 18% 22% 34% 50% Corporate Retail SME Investor Relations Department 13 13
Slide 14: Strong Capital Base Maintained
Strong Capital Base Maintained Bank only 20.35% 4.69% 17.32% 3.99% 11.67% CAR 4.27% required Tier 2 * by BOT at 7.52% 15.66% 13.33% 8.5% Tier 1 2006 2007 Post GECAL acquisition THB bn. 2006 2007 Tier 1 35.98 70.14 Tier 2 * 20.44 21.00 Total CAR 55.85 91.14 • Basel II will be implemented on schedule
Slide 15: First NPL Sale in 4Q07
First NPL Sale in 4Q07 The first sale of NPLs was launched in 4Q07 with BAY entering into agreements to sell approximately Baht 9.8 billion NPLs. 9 Completed sale of the first tranche of retail loans of Baht 3.6 billion in December’ 07 at 55% of face value. } The second tranche of corporate loans of
Slide 16: New BOT Guideline: CDO Investment Provisioning
New BOT Guideline: CDO Investment Provisioning • BAY currently owns CDOs totaling US$85 million, none of which are directly invested in sub-prime mortgages. • Latest ratings as of Dec 07 of all investments confirmed at “A-” or better. • However, according to BOT’s CDO & Structured Products Notificat
Slide 17: 2007 Financial Performance
2007 Financial Performance Investor Relations Department 17 17
Slide 18: Balance Sheet
Balance Sheet Consolidated (Baht Billion) Total Assets Total Assets 666.3 652.4 47.1 Equity Other 55.7 78.1 Assets 206.0 202.3 Other Liabilities 74.7 563.5 460.3 499.6 Loans 450.1 Deposits 2006 2007 L/D Ratio = 81.7% L/D Ratio = 90.1% • Loans outstanding reduced in 2007 partly as a result of early r
Slide 19: Loans & Deposits
Loans & Deposits Consolidated Loans Deposits (Baht Billion) 559.9 563.5 453.8 460.3 450.1 497.4 420.1 499.6 402.2 14% 18% 425.3 11% 12% 22% 59% 65% 70% 64% 59% 39% 40% 41% 45% 44% 38% 38% 33% 28% 33% 50% 48% 45% 37% 34% 3% 3% 2% 2% 3% 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 Corporate SMEs
Slide 20: Interest Accounts
Interest Accounts Consolidated (Baht Billion) Interest Income Interest Expense 35.73 35.06 16.68 15.44 24.62 20.27 10.72 19.29 7.95 6.80 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 Net Interest Income • Net Interest Income consistently 19.05 19.62 16.67 improved even with negative loan 13.47 g
Slide 21: Net Interest Margin
Net Interest Margin Consolidated 5.92% 5.74% 4.39% 4.18% 3.98% 3.16% 3.21% 2.97% 2.65% 2.67% 2.78% 2.31% 1.34% 1.41% 1.86% 2003 2004 2005 2006 2007 Yield on Earning Assets Cost of Funds NIM • NIM continued to improve even under declining interest rate environment in 2007. Investor Relations Departme
Slide 22: Non Interest Accounts
Non Interest Accounts Consolidated (Baht Billion) Non-Interest Income Non-Interest Expense 18.66 9.15 15.27 7.83 8.26 7.55 12.80 5.65 9.87 10.77 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 • In 2007, fees and service income rose 13% together with increase in FX gain of 43%. • Non-interest inco
Slide 23: Revenue Structure
Revenue Structure Consolidated Non interest income / Total income* Fee income / Total income* 17% 17% 17% 17% 20% 30% 33% 32% 28% 48% 83% 83% 83% 83% 80% 70% 67% 68% 72% 52% 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 Net Interest Income Non Interest Income Fee&Service Income * Total income =
Slide 24: Cost-to-Income Ratio
Cost-to-Income Ratio Consolidated 68.7% 60.1% 56.3% 54.1% 51.1% 2003 2004 2005 2006 2007 • Cost-to-income for 2007 increased, driven mainly by expenses on strengthening the foundation plan such as staff training on consumer banking knowledge, consumer banking related IT systems, and other integratio
Slide 25: NPLs and Coverage Ratio
NPLs and Coverage Ratio 53 57 55 45 44 Coverage 36 Ratio (%) 50 49 46 34 31 32 NPLs (Baht Billion) 69.8 * 74.6 65.1 63.9 63.1 62.8 59.7 57.2 53.7 43.6 42.0 41.7 40.7 37.3 29.4 30.1 28.1 25.5 2003 2004 2005 2006 Jun 2007 2007 BAY Net NPLs BAY Gross NPLs BAY+AAMC NPLs NetLLR NPLsBAY 2003 LLR BAY+AAMC
Slide 26: 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 12.18 12.94 6.02 4.67 8.50 3.05 8.35 1.67 6.54 -3.99 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 • A weaker performance in 2007 was due to foundation strengthening expenses wit
Slide 27: ROAE & ROAA
ROAE & ROAA Consolidated ROAE ROAA 16.4% 1.0% 15.1% 0.9% 13.3% 0.6% 0.3% 3.8% -6.4% -0.6% 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 Investor Relations Department 27 27
Slide 28: 2007 Strengthening the Foundation Wrap-Up
2007 Strengthening the Foundation Wrap-Up 2006 2007 Loan Growth (Baht) +1.7% -2.2% Deposit Mix: Savings and Current 30% 36% 9 Loan Mix : Retail 18% 22% 9 L/D Ratio 81% 90% 9 NPLs 62.8 bn 63.8 bn* 9 Cost to Income Ratio 54.1% 65.6%** 9 NIM 3.16% 3.21% 9 Coverage 46% 50% 9 CAR 11.59% 20.30% 9 Inorgani
Slide 29: 2008 Plan and Strategy
2008 Plan and Strategy Investor Relations Department 29 29
Slide 30: Thailand Economic Outlook
Thailand Economic Outlook GDP Growth 2007 : 4.8% 2008 : 4.5 – 5.0% Conditions Key forecasts and assumptions • Major driving force is the recovery of domestic % yoy 2006 2007 2008F demand in both consumption and investment. GDP 5.1 4.8 4.5-5.0 - Expansionary fiscal policy Private Consumption 3.2 1.4
Slide 31: Key Targets For 2008
Key Targets For 2008 2008 (ex GECAL) Loan Growth (Bank only) 8.8% (Baht 39 bn) • Corporate 1.5 times GDP (11 bn) • SME 1.5 -2 times GDP (12 bn) • Consumer 4 times GDP (16 bn) Deposit Mix: Savings + Current (Bank only) 40% L/D Ratio 90% Fee income growth 26% Non-interest income to total income 27% Pr
Slide 32: Top Priorities for 2008
Top Priorities for 2008 • Consumer Banking: New product rollout + focus on sales effectiveness • SME: Customer segmentation + new customer acquisition • Corporate: Grow new key segments + investment banking • Treasury: Building critical support for banking segment • Distribution Network: Focus on sa
Slide 33: THANK YOU
THANK YOU Investor Relations Department. Telephone : (662) 296 2977 Fax : (662) 683 1341. E-mail : irgroup@krungsri.com Investor Relations Department 33 33
Bank of Ayudhya Public Company — Non-Deal Roadshow (January 2008) on 6ix