Bangkok Bank Public Company Limited · SET:BBL
Bangkok Bank Public — Bangkok Bank — FY2017 Earnings Presentation
37 slides from Bangkok Bank Public's earnings presentation, May 16, 2018
Slide 1: Investor Presentation For 2017
Investor Presentation For 2017
Slide 2: Bangkok Bank agenda
Bangkok Bank 1. Operating Environment 2. Our Key Focus and Position 3. Our Financial Result 2017 2
Slide 3: Global economic expansion synchronous with rising investment
For 2018, global economic expansion is synchronous with rising global investment amid upbeat sentiment EU USA 2.2% 2.7% China Japan 6.6% 1.2% WORLD 3.9% ASEAN* (3.7% in 2017) 5.3% 10% or more 6% - 10% 3% - 6% 0% - 3% Less than 0% No data Note: *ASEAN-5; Indonesia, Malaysia, Philippines, Thailand, Vi
Slide 4: The Thai Economy: Robust growth underpinned by strong external sector
The Thai Economy: Robust growth underpinned by the strong external sector GDP Growth YoY (%) Global economic recovery Large scale fiscal stimulus 7.8% 7.3% Strong Baht Brexit appreciation up US election 5.1% 5.0% to taper tantrum 4.6% Global financial crisis 3.9% 4.2% Collapse 3.2% 2.5% 2.8% in oil
Slide 5: Exports have benefited from strong global growth and rising CAPEX
Exports have benefited from strong global growth and rising global CAPEX Top Ten Exports Export Value and Volume index Index Jan 2012 = 100, 3mma 120 Automotives Electronics 110 Agro-manufacturing products Machinery and equipment 100 Agriculture Electrical Appliances 90 (Jan-Nov 2017) Export value P
Slide 6: Tourism continues to go from strength to strength
Tourism continues to go from strength to strength - accounting for 11% of GDP Tourist Arrivals (Million) 12 China 10 (9.8m) Others 8 (8.4m) EU (6.5m) 6 ASEAN 5 (5.4m) 4 CLMV (3.8m) 2 North America (1.5m) 0 2000 2001 2002 2000 2001 2003 2004 2002 2003 2004 2005 2005 2006 2006 2007 2007 2008 2008 2009
Slide 7: Private investment growth on firmer footing
Private investment growth is on firmer footing amid rising capacity utilisation Private Investment Monthly Index tobacco Monthly % SA Jan 2013 = 100 SA furniture Overall Capacity Utilisation 110 80 textiles Rate as of Nov-17, (64%) basic metals Private Investment Index machinery&equip. Capacity Util
Slide 8: Private consumption subdued while car sales rebounded
Private consumption remains subdued while car sales appeared to have rebounded Private Consumption Domestic Motor Vehicle Sales Monthly Index No of units (in millions) Jan 2013 = 100 SA 110 1.6 1.44 1.4 1.33 1.2 105 1.0 0.88 0.87 0.80 0.79 0.80 0.8 0.77 0.63 0.62 0.6 0.55 100 0.4 0.2 95 0.0 Jan Jan
Slide 9: Infrastructure investment set to accelerate before general election
Infrastructure investment is set to accelerate before the general election 2015-2022 Infrastructure Projects 2016-2018 Transport Action Plans 3.38 Trillion Baht 60 Projects, 2.5 Trillion Baht Inter-city rail network Inter-city rail network Under construction: Chira-Khonkhaen (48% completed) 1 2,22
Slide 10: Infrastructure projects planned for the Eastern Economic Corridor
Infrastructure projects planned for the Eastern Economic Corridor (EEC) Note: *As of December 2017 10 Source: EEC Office
Slide 11: Inflation trending up with rising energy prices
Inflation is trending up as a result of rising energy prices - albeit well below the target %YoY 3 Headline Inflation Contribution 2 1 0 -1 -2 -3 CORE RAW FOOD ENERGY CPI Source: Ministry of Commerce 11
Slide 12: Currency Movement: Rapid appreciation unnerving business sector
Currency Movement: Rapid appreciation is beginning to unnerve the business sector 14% 12.8% 12% 11.1% 10.0% 10% 8.6% 8.2% 8% 7.0% 6.8% 6% 4.8% 4.3% 4% 3.9% 3.4% 3.0% 2.3% 2.1% 2.0% 2% 0.6% 0.3% 0% -0.4% -0.6% -2% -1.7% -4% KRW MYR THB SGD TWD CNY INR JPY PHP IDR 2017 2017 YTD YTD2018 2018* Note: *YT
Slide 13: Currency Movement: NEER steadily rising
Currency Movement: The NEER level has been steadily rising – lowering export competitiveness Monthly Index Jan 2012 = 100 Nominal Effective Exchange Rate (NEER) 125 Taper Tantrum BOT’s Capital Account Liberalisation 120 115 110 105 100 95 Dec-17 Source: Bank of Thailand 13
Slide 14: Bangkok Bank agenda
Bangkok Bank 1. Operating Environment 2. Our Key Focus and Position 3. Our Financial Result 2017 14
Slide 15: Our Key Focus
Our Key Focus Inspiring Success Support customers to tap into new opportunities in infrastructure investment in Thailand and AEC, businesses in EEC and S-curve industries. Expand customer base and revenue streams Innovation Leadership Offer innovative products and services using Big Data, machine le
Slide 16: Sustainable Liquidity and Capital
Goals are supported by: 1. Sustainable Liquidity and Capital Well-Positioned Healthy Level LDR of Liquid Assets System/1 96.1% BBL 34.2% BBL 86.7% System/1 28.3% Regulatory 2009 2011 2013 2015 2017 2009 2011 2013 2015 2017 Economic Momentum Strong Capital Position 17.0% 17.0% 18.5% CE Tier1/2 Tier1/
Slide 17: Scale and Franchise Leadership
Goals are supported by: 2. Scale and Franchise Leadership Market Leader in Corporate & SME Multi-Tiered Large Retail Distribution Customer Platform Base Bangkok Bank Full Range Strong of Product Domestic & Service Network Long- Established International Branch 17
Slide 18: Solutions for a Digital Era
Goals are supported by: 3. Solutions for a Digital Era Building a Culture Rebuilding Technology of Innovation Infrastructure Promoting a culture of Enhance our back-end and innovation with a range of front-end systems & improve initiatives straight-through-processing Security Culture Research and De
Slide 19: Bangkok Bank agenda
Bangkok Bank 1. Operating Environment 2. Our Key Focus and Position 3. Our Financial Result 2017 19
Slide 20: Overall Financial Position
Overall Financial Position Loan 350 NPL Amount, NPL Ratio 10. 00% Billion Baht 300 Billion Baht, Percentage 3.2% 3.9% 250 2.1% 2.8% 5.0 0% +3.2% YTD +3.4% QoQ 200 2,004 0.0 0% 1,941 150 1,869 1,782 100 87.4 56.2 68.8 -5.00% 50 45.0 0 -10.00 % 2014 2015 2016 2017 2014 2015 2016 2017 NPL Amount NPL Ra
Slide 21: Reserve for Asset Quality
Reserve for Asset Quality Coverage Ratio Loan Loss Reserve Percentage Billion Baht 180.00 300 250 150.00 140.0 204 119.5 185 174 120.00 104.2 160 200 91.9 70.0 150 BBL 90.00 61.2 System/1 55.4 100 141 130 136 138 60.00 58.8 50 30.00 58.3 70.0 48.8 33.1 0 - 2014 2015 2016 2017 2014 2015 2016 2017 Not
Slide 22: Total Income and Operating Expense
Total Income and Operating Expense Income Breakdown NIM Billion Baht, Percentage of Composition Percentage +6.2% YoY 102.7 105.9 112.5 96.9 +5.0% YoY -5 bps YoY 40% 41% +0.9% QoQ -2 bps YoY +1 bps QoQ 39% 44% 2.37% 2.34% 2.32% 2.36% 2.30% 2.31% 27.4 28.5 28.7 2.16% 40% 41% 41% 56% 60% 59% 61% 60% 59
Slide 23: Overall Profitability
Overall Profitability Profitability Driver Billion Baht 112.5 102.7 105.9 96.9 48.9 45.0 50.5 43.1 27.4 28.5 28.7 8.7 14.7 22.4 15.7 13.0 11.9 13.1 3.6 6.3 4.6 36.3 34.2 31.8 33.0 8.3 8.2 8.5 2014 2015 2016 2017 4Q16 3Q17 4Q17 Operating Expense Provisioning Expense Tax Net Profit /1 Note: /1 Attribu
Slide 24: Appendix
Appendix Bangkok Bank
Slide 25: Disbursement Schedule of Infrastructure Projects
Disbursement Schedule of Infrastructure Projects Billion Baht 500 450 400 350 300 250 200 150 100 50 - 2017 2018 2019 2020 2021 2022 2023 2024 Action Plan 2016 Action Plan 2017 Action Plan 2018 Source: Ministry of Transport, Office of Transport and Traffic Policy and Planning 25
Slide 26: Opportunities from Regionalization & Urbanization
Opportunities from Regionalization & Urbanization Higher Connectivity in the AEC 10 Target Industries Next-Generation Automotive Robotics Aviation & Smart Electronics Logistics Affluent, Medical Biofuels & & Wellness Biochemicals Tourism Agriculture & Biotechnology Digital Food for the Future Medica
Slide 27: Loan Growth and Composition
Loan Growth and Composition +3.2% YTD Loan +3.4% QoQ Billion Baht 2,004 1,941 1,869 1,782 2014 2015 2016 2017 Loan by Business Unit Loan by Industry Percentage of Composition Percentage of Composition Real Estate Agriculture Agriculture & Mining Real Estate & Mining International International &Cons
Slide 28: Fee Income
Fee Income Fee Income Breakdown Net Fee Income Percentage of Composition Billion Baht +12.4% YoY 27.5 12% 13% 12% 12% 14% 12% 14% 24.1 24.5 13% 15% 15% 17% 15% 18% 21.7 18% 9% 8% 8% 8% 8% 8% 7% +25.3% YoY 24% 22% 23% 22% 22% 23% 20% +18.7% QoQ 7.8 6.3 6.6 26% 26% 26% 24% 26% 24% 22% 16% 16% 16% 17%
Slide 29: Capital Position
Capital Position Total Capital Common Equity Tier 1 Ratio Total Capital (Billion Baht) Tier 1 Ratio Adequacy Ratio 403 420 18.7% 18.5% 42 36 16.8% 17.0% 16.8% 17.0% 12.0% 9.5% 11.0% 384 8.0% 361 8.5% 7.0% 9.75% 7.25% 5.75% Dec-16 Dec-17 Dec-16 Dec-17 Dec-16 Dec-17 Dec-16 Dec-17 Basel III Tier 2 capi
Slide 30: Financial Position
Financial Position Million Baht Dec-14 Dec-15 Dec-16 Dec-17 Growth %QoQ %YTD Loan/1 1,782,233 1,868,903 1,941,093 2,003,989 3.4% 3.2% Deposit 2,058,779 2,090,965 2,178,141 2,310,743 0.4% 6.1% LDR 86.6% 89.4% 89.1% 86.7% 2.5% -2.4% NPL 45,046 56,226 68,841 87,419 -0.9% 27.0% NPL Ratio 2.1% 2.8% 3.2%
Slide 31: Financial Performance – 4Q17
Financial Performance – 4Q17 Million Baht 4Q16 3Q17 4Q17 Growth (%) QoQ YoY Net Interest Income 16,303 16,825 16,955 0.8% 4.0% Net Fee Income 6,255 6,599 7,836 18.7% 25.3% Non-Interest Income 11,063 11,651 11,789 1.2% 6.6% Total Income 27,366 28,476 28,744 9.4% 5.0% Operating Expense 12,968 11,939 1
Slide 32: Financial Performance – Year
Financial Performance – Year Million Baht 2014 2015 2016 2017 Growth (%) YoY Net Interest Income 58,997 57,510 63,998 66,625 4.1% Net Fee Income 21,726 24,071 24,492 27,526 12.4% Non-Interest Income 37,860 45,219 41,860 45,843 9.5% Total Income 96,857 102,728 105,858 112,468 6.2% Operating Expense 4
Slide 33: Dividend and Payout Ratio
Dividend and Payout Ratio Baht Percent 12 50 39.3% 10 40 8 6.50 6.50 6.50 6.50 6.50 6.50 30 6.00 6 5.00 4.00 20 4 4.00 4.50 4.50 4.50 4.50 4.50 4.50 2.75 3.00 3.00 3.50 2 1.75 2.00 1.75 2.00 2.00 3.00 10 1.00 1.25 1.50 2.00 2.00 2.00 2.00 2.00 2.00 2.00 0.75 0.75 1.00 1.00 1.00 1.00 0 0 2003 2004 20
Slide 34: Network
Network 2014 2015 2016 2017 Branch/1 1,115 +23 1,138 +19 1,157 +9 1,166 ATM 8,877 +453 9,330 -25 9,305 +177 9,482 CDM 1,237 +34 1,271 +11 1,282 +18 1,300 Employee 26,132 +1,010 27,142 -271 26,871 -859 26,012 Note: Consolidated /1 Domestic branches 34
Slide 35: Long-Standing International Presence
Long-Standing International Presence UK Vietnam Branch: 1 32 International Locations Branch: 2 Number of Year: 60 in 15 Economies Number of Year: 25 China/1 Cayman Islands Branch: 6 Branch: 1 Number of Year: 31 Number of Year: 2 Japan USA Branch: 2 Branch: 1 Number of Year: 62 Number of Year: 52 Phi
Slide 36: 2018 Financial Target
2018 Financial Target Consolidated 2018 Financial Target Loan Growth 5-6% NPL Ratio (Gross) Maintain Net Interest Margin (NIM) Maintain Net Fee Income Growth Mid to High Single Digit Cost to Income Ratio Mid-40s Note: The above financial targets are based on the Bank’s preliminary estimates that may
Slide 37: For Further Information
For Further Information Contact: Investor Relations Team Tel (66) 2 626 4981 Fax (66) 2 231 4890 Email: IR@bbl.co.th 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 re