Scb X Public Company Limited · SET:SCB
Scb X Public — Q3 2022 Earnings Presentation
25 slides from Scb X Public's earnings presentation, Oct 21, 2022
Slide 1: 3Q22 Financial Results
3Q22 Financial Results 21 October 2022 SCB X PCL | 3Q22 Analyst Meeting Presentation | 21 October 2022 Page 0 / 24
Slide 2: Important Disclaimer
IMPORTANT DISCLAIMER: Information contained in this document has been prepared from several sources and SCB X Public Company Limited (“SCBX”) makes no representation or warranty, expressed or implied, as to the accuracy, correctness, completeness, adequacy or freedom from defect of any kind of such
Slide 3: Today's agenda
Today’s agenda 1 Update on group restructuring 2 Key highlights 3 Review of 3Q22 results SCB X PCL | 3Q22 Analyst Meeting Presentation | 21 October 2022 Page 2 / 24
Slide 4: Update on group restructuring
1 Update on group restructuring SCB X PCL | 3Q22 Analyst Meeting Presentation | 21 October 2022 Page 3 / 24
Slide 5: Group restructuring to be complete by end of 2022
Group restructuring to be complete by end of 2022 • The Bank approved a special dividend (Baht 61 billion) to the Dividend payments Bank’s shareholders. from the Bank • SCBX received dividends in the amount proportional to its 99.06% stake to implement the business restructuring • SCBX acquired shar
Slide 6: Capital redeployment to fund high return businesses
Regulatory Minimum Capital redeployment to fund high return businesses CAR 12.0% Tier 1 9.5% Use of the special dividends from the Bank Capital Adequacy Ratio (Baht billion) (Percentage) SCB Bank SCBX (Bank only) (Consolidated) Total 18.8% 18.7% 18.5% 36 CAR 16.0% 60 Tier 1 17.7% 17.6% 17.4% 14.9% 2
Slide 7: We are an investment holding company with portfolio companies in 5 strategic themes
We are an investment holding company with portfolio companies in 5 strategic themes SCB X PCL | 3Q22 Analyst Meeting Presentation | 21 October 2022 Page 6 / 24
Slide 8: Key Highlights
2 Key Highlights SCB X PCL | 3Q22 Analyst Meeting Presentation | 21 October 2022 Page 7 / 24
Slide 9: Key highlights
Key highlights Core banking on • NIM continued to improve the recovery • Fee income rebounded qoq across the board trajectory • Tight cost control at the Bank • Lower NPLs and higher coverage • Strong takeoff in auto title loan business by AutoX Revving up new growth engine • Launch of an investment
Slide 10: A leap in digital adoption and engagement
A leap in digital adoption and engagement 3Q22 digital users1/ 3Q22 digital loans 24mn +30% digital users YoY 57bn loans (Baht) +86% YoY SCB EASY (13.9 mn users) 9M22 digital revenue 82% monthly active users 5% of total revenue 1/ Combined users of all digital platforms under SCBX Group SCB X PCL |
Slide 11: Gen 2: Key business updates – 9M22
Gen 2: Key business updates – 9M22 XX YoY growth 1/ 2/ 3.4mn >900 2.6mn 2x 2.9mn 3x accounts branches registered users registered users (Cards & Personal loans) (FINNIX App) (Money Thunder App) Since launch in July 2022 109bn THB 3.0bn THB 5.4bn THB 3.7bn THB loan o/s loan o/s loan o/s 2x loan o/s 4
Slide 12: Gen 3: Key business updates – 9M22
Gen 3: Key business updates – 9M22 Investment portfolio YoY growth (As of September 2022) 3.3mn 1.5x 127K THB registered users (Robinhood App) registered users (INVX App) Since launch in Oct. 2022 6.6bn THB 2.4x (Launched in 9M22 Gross Merchandise October 2022) Value (GMV) Thailand’s first ever univ
Slide 13: SCBX's P&L Profile (9M22) – Setting the base for future growth
SCBX’s P&L Profile (9M22) – Setting the base for future growth Revenue by Gen Net profit by Gen (Percentage) (Percentage) Gen 3 Gen 2 & 3 5% 3% Gen 2 13% Gen 1 82% 97% Gen 1 Note: Before the elimination of the intercompany transactions SCB X PCL | 3Q22 Analyst Meeting Presentation | 21 October 2022
Slide 14: Review of 3Q22 results
3 Review of 3Q22 results SCB X PCL | 3Q22 Analyst Meeting Presentation | 21 October 2022 Page 13 / 24
Slide 15: 3Q22: Robust core earnings growth with highest quarterly profit since 4Q19
3Q22: Robust core earnings growth with highest quarterly profit since 4Q19 1. NII increased (+18% YoY) from NIM expansion with yield improvement and moderate loan growth (+3% YoY). 2. Fee & others was lower (-1% YoY) but improved QoQ in line with broader economic reopening. 3. Investment income (-81
Slide 16: 3Q22/9M22 financial results
3Q22/9M22 financial results Baht billion (Consolidated) 3Q22 QoQ YoY 9M22 YoY Total income 39.8 3% 8% 116.2 5% - Net interest income 27.7 6% 18% 78.5 12% - Fee & others 11.8 6% -1% 34.4 -1% - Investment & trading income 1/ 0.3 -82% -81% 3.3 -47% Operating expenses 16.9 6% 7% 49.0 6% Pre-provision op
Slide 17: 3Q22/9M22 financial summary
3Q22/9M22 financial summary (Consolidated) 3Q22 9M22 (Consolidated) 3Q22 9M22 Total loan growth (YoY) 3% 3% Net Interest Margin 3.38% 3.23% Loan/Deposit ratio 93% 93% Cost/Income ratio 43% 42% NPL ratio 3.34% 3.34% ROE 9.1% 9.0% Coverage ratio 164% 164% ROA 1.2% 1.2% Credit cost (bps) 132 153 CAR 18
Slide 18: Strong NII growth despite higher expenses at new subsidiaries
2022 Target Strong NII growth despite higher expenses at new subsidiaries C/I low-to-mid 40s Revenue Cost/Income (Baht billion) (Percentage) 44 43 43 42 41 39.2 38.7 39.8 36.9 37.7 Expenses (Baht billion) 17.3 16.9 15.8 16.1 16.0 24.8 24.7 26.1 27.7 7.8 8.1 NII 23.5 Employee 7.2 7.6 7.3 P&E 1.4 1.7
Slide 19: Robust core earnings growth from strong NII and lower provisions
Robust core earnings growth from strong NII and lower provisions Operating profit Net profit (Baht billion) (Baht billion) 21.1 22.0 21.6 22.8 22.8 10.2 10.1 10.3 8.8 7.9 3Q21 4Q21 1Q22 2Q22 3Q22 3Q21 4Q21 1Q22 2Q22 3Q22 QoQ QoQ 0.2% 3% 8% YoY 17% YoY SCB X PCL | 3Q22 Analyst Meeting Presentation |
Slide 20: NIM continued to expand from higher yields and milder restructuring impacts
On the back of recent rate hikes and moderate loan growth, NIM 2022 Target Loan growth 3-5% continued to expand from higher yields and milder restructuring impacts NIM 3.1-3.2% QoQ YoY Loans 2,279 2,302 2,326 2,360 2,347 -0.5% 3% (Baht billion) +19 5.11 4.92 4.85 833 854 875 849 -3% 4% 4.77 Corporat
Slide 21: Upward NIM momentum & Slightly lower customer payment
Upward NIM momentum & Slightly lower customer payment Cash payment per interest income NIM sensitivity (+25-30 bps) to interest rate (Percentage) movements (+1% in Policy Rate) for the first full year 100% Assumption: +100 bps for floating products, CASA will be dynamic and based on behavioral model
Slide 22: Yield on loans continued to improve qoq
Yield on loans continued to improved qoq driven by lower debt restructuring, interest rate increases, and pricing discipline on new bookings Yield on loans by segment Yield on loans by Retail products (Percentage) (Percentage) QoQ QoQ (bps) (bps) 19.28 19.30 +2 6.20 6.29 +9 Retail 5.68 6.22 +27 5.95
Slide 23: 3Q22 NPL sales helped to further lower NPLs and raise NPL coverage
2022 Target 3Q22 NPL sales helped to further lower NPLs and raise NPL coverage NPL < 3.6% Credit cost < 145 bps Total allowance NPL coverage ratio (Baht billion) (Percentage) 164 157 153 152 153 151 138 139 144 147 Provisions Loans under stage 2 & 3 (Baht billion) (Baht billion) Stage 2 197 190 12.0
Slide 24: Fee income rebounded QoQ across all products
Fee income rebounded QoQ across all products Fee & others (Baht billion) YoY QoQ -0.6% 6.5% 12.5 11.8 11.6 11.8 11.0 QoQ YoY 3.7 Bancassurance 3.6 4.0 3.8 4% 10% 3.8 2.6 Wealth management 2.6 2.4 2.0 14% -24% 1.8 1.4 Lending related 1.2 1.3 1.3 1.5 18% 25% Transactional banking 3.0 3.1 3.2 3.6 5% 17
Slide 25: SCBX's 2022 financial targets – Still on track
SCBX’s 2022 financial targets – Still on track 2021 2022 9M22 Actual Targets Actual (SCB) (SCBX) (SCBX) Total loan growth (YoY) 2% 3-5% 3.0% Net interest margin 3.00% 3.1-3.2% 3.23% Non-NII growth (YoY) 15% Minus low-teens -7.6% Cost/Income ratio 42% Low-to-mid 40s 42.2% NPLs (gross) 3.8% < 3.6% 3.3