Bank Of Ayudhya Public Co., Ltd. · SET:BAY
Bank Of Ayudhya Public — Non-Deal Roadshow (June 2008)
33 slides from Bank Of Ayudhya Public's roadshow presentation, June 2008
Slide 1: Non-Deal Roadshow
Non-Deal Roadshow New York, Boston 4 - 6 June 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 } BAY at a Glance and Recent Developments } 1Q/2008 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 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
Slide 6: BAY's Profile and Shareholding Structure
BAY’s Profile and Shareholding Structure BAY Profile Shareholding Structure Mar 08 (as of 20 Mar 08) Consolidated Ranking Market Share (Baht bn)* Assets 725 5 8.8% GE GE**** R Group * Deposits 519 5 8.2% GE GE**** 34.6% 26.1% Loans 539 5 9.4% Others Others Number Ranking Market Share Others Others D
Slide 7: Business Profile: Franchise – Market Share in Key Areas
Business Profile: Franchise – Market Share in Key Areas As of March 2008 Baht Billion CONSOLIDATED F/S Ranking Assets % Deposits % Loans % L/D% Assets Deposits Loans BBL 1,625 19.7% 1,297 20.6% 1,084 18.9% 1 1 1 83.6% KTB 1,286 15.6% 1,065 16.9% 999 17.4% 2 2 2 93.8% SCB 1,196 14.5% 888 14.1% 858 14
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 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
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 12.1% GE 10.7% 11.8% 7.4% 6.5% 6.9% 33% 100% 100% 5.9% 5.7% 4.4% Price = 16.2 bn BAY GECAL TSS 3.0% 3.2% 3.2% 100% acquisition Assets size = 77.8 bn 2005 2006 2007 Loan port = 77.6 bn Auto
Slide 11: Advantage from GECAL's Leading Position
Advantage from GECAL’s Leading Position Used Car and Refinancing Motorcycle Market Share 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 market
Slide 12: BAY's Auto HP Business Structure
BAY’s Auto HP Business Structure GECAL’s Funding Structure BAY’s Auto HP Group BAY GE & Local Bank BAY Total Portfolio Total Funding 34 bn 36 bn 107 bn 70 bn New cars AYCL GECAL + AYHP Used cars and GECAL Refinancing + AYHP • Single Lending Limit issue expected to be resolved this year Run down mode
Slide 13: Loan Composition Moving Towards the Target
Loan Composition Moving Towards the Target Consolidated March 2008 2006 2007 (Post GECAL By 2010 Acquisition) 50 % 44% 34% 37% 30% 45% 37% 18% 22% 33% 50% Corporate Retail SME Investor Relations Department 13 13
Slide 14: Strong Capital Base Maintained
Strong Capital Base Maintained BAY+AAMC 19.80% 16.70% 4.68% 11.59% 4.35% CAR required Tier 2 * 4.24% by BOT at 7.47% 15.12% 12.35% 8.5% Tier 1 2006 2007 Mar 2008 (Post GECAL Acquisition) THB bn. 2006 2007 Mar-08 Tier 1 35.98 67.78 61.19 Tier 2 * 20.44 21.01 21.58 Total CAR 55.85 88.79 82.76 • Basel
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’s totaling investment in CDO : US$85 million (none are directly invested in sub-prime mortgages) • Ratings as of Dec 2007 of all investments confirmed at “A-” or better • Major industries of underlying corporate : Financial institution, Insurance,
Slide 17: 1Q/2008 Financial Performance
1Q/2008 Financial Performance Investor Relations Department 17 17
Slide 18: Balance Sheet
Balance Sheet Consolidated (Baht Billion) Total Assets Total Assets 652.4 725.0 78.1 79.3 Equity Other 202.3 186.5 74.7 127.3 Assets Other Liabilities 499.6 538.5 518.4 450.1 Loans Deposits 2007 Mar-08 L/D Ratio = 90.1% L/D Ratio = 103.9% • Loans increased dramatically in 1Q/2008 from organic growth
Slide 19: Loans & Deposits
Loans & Deposits Consolidated Loans Deposits (Baht Billion) 538.5 559.9 563.5 +88 518.5 453.8 460.3 499.6 +19 450.1 14% 18% 22% 33% 65% 70% 64% 64% 41% 45% 44% 37% 33% 28% 33% 33% 45% 37% 34% 30% 2% 2% 3% 3% 2005 2006 2007 Mar-08 2005 2006 2007 Mar-08 Corporate SMEs Retail Current Saving Time Note :
Slide 20: Interest Accounts
Interest Accounts Consolidated (Baht Billion) Interest Income Interest Expense 35.73 35.06 16.68 15.44 24.62 7.95 9.42 8.31 8.88 4.76 3.22 3.17 2005 2006 2007 Q1-07 Q4-07 Q1-08 2005 2006 2007 Q1-07 Q4-07 Q1-08 Net Interest Income • Net Interest Income in 1Q/2008 19.05 19.62 16.67 improved both QoQ a
Slide 21: Net Interest Margin
Net Interest Margin Consolidated 5.92% 6.08% 5.74% 5.38% 5.54% 4.39% 3.21% 3.57% 3.16% 3.01% 3.29% 2.97% 2.78% 2.67% 3.21% 2.29% 2.15% 1.41% 2005 2006 2007 Q1-07 Q4-07 Q1-08 Yield on Earning Assets Cost of Funds NIM • NIM continued to improve further. Investor Relations Department 21 21
Slide 22: Non Interest Accounts
Non Interest Accounts Consolidated (Baht Billion) Non-Interest Income Non-Interest Expense 18.66 9.15 15.27 8.26 7.55 12.80 5.29 4.95 2.16 4.20 1.77 1.85 2005 2006 2007 Q1-07 Q4-07 Q1-08 2005 2006 2007 Q1-07 Q4-07 Q1-08 • Non-interest income increased QoQ but decreased YoY mainly due to additional b
Slide 23: Revenue Structure
Revenue Structure Consolidated Non interest income / Total income* Fee income / Total income* 17% 17% 20% 18% 21% 23% 28% 26% 24% 33% 32% 32% 83% 83% 80% 82% 79% 77% 72% 74% 76% 67% 68% 68% 2005 2006 2007 Q1-07 Q4-07 Q1-08 2005 2006 2007 Q1-07 Q4-07 Q1-08 Net Interest Income Non Interest Income Fee&
Slide 24: Cost-to-Income Ratio
Cost-to-Income Ratio Consolidated 77.1% 68.7% 61.5% 71.1% 65.5% 51.1% 54.1% 67.2% 60.1% Normalized for CDOs MTM 2005 2006 2007 Q1-07 Q4-07 Q1-08 • Cost-to-income increased YoY, driven mainly by loss from CDO marked-to-market. However, it improved QoQ partly because there were a few one-time charge-o
Slide 25: NPLs and Coverage Ratio
NPLs and Coverage Ratio 53 57 55 57 44 Coverage 55 Ratio (%) 50 50 46 33 NPLs (Baht Billion) * 75.1 70.6 71.0 63.9 63.2 57.2 54.4 53.7 43.6 41.7 37.3 30.1 30.4 29.4 25.5 2005 2006 Jun 2007 2007 Mar-08 BAY Net NPLs BAY Gross NPLs Consol NPLs LLR BAY LLR Consol Net NPLs 2005 2006 Jun 2007 2007 Mar-08
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 8.50 1.67 1.13 0.97 1.03 2.64 2.61 1.56 -3.99 2005 2006 2007 Q1-07 Q4-07 Q1-08 2005 2006 2007 Q1-07 Q4-07 Q1-08 • A flat performance for 1Q/2008 YoY was mainly due t
Slide 27: ROAE & ROAA
ROAE & ROAA Consolidated ROAE ROAA 16.4% 1.0% 0.7% 0.6% 0.6% 7.6% 3.8% 4.9% 5.2% 0.3% -6.4% -0.6% 2005 2006 2007 Q1-07 Q4-07 Q1-08 2005 2006 2007 Q1-07 Q4-07 Q1-08 Investor Relations Department 27 27
Slide 28: Strengthening the Foundation Wrap-Up
Strengthening the Foundation Wrap-Up 2006 2007 Q1-2008 Loan Growth (Baht) +1.7% -2.2% +19.6% Deposit Mix: Savings and Current 30% 36% 9 36% Loan Mix : Retail 18% 22% 9 33% L/D Ratio 81% 90% 9 104% NPLs 62.8 bn 63.6 bn* 9 63.9 bn* Cost to Income Ratio 54.1% 65.6%** 9 60.1%** NIM 3.16% 3.21% 9 3.57% C
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 – 5.5% Conditions Key forecasts and assumptions • Major driving force is the recovery of domestic demand in both consumption and investment. % yoy 2006 2007 2008F - Expansionary fiscal policy GDP 5.1 4.8 4.5-5.5 - Mega projects (projects ca
Slide 31: Key Targets For 2008
Key Targets For 2008 2008 CONSOL (incl GECAL which was acquired on Feb 14, 08) Loan Growth 29% (131bn) • Corporate 1.5 times GDP (11 bn) • SME 1.5 -2 times GDP (12 bn) • Retail (Housing and P-Loan) 4 times GDP (16 bn) • Auto HP (GECAL acquisition) 77.6 bn • Auto HP – organic growth (GECAL+AYCL+AYHP+
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: Investor Relations Department
Investor Relations Department. Telephone : (662) 296 2977 Fax : (662) 683 1341. E-mail : irgroup@krungsri.com Investor Relations Department 33 33
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