Bangkok Bank Public Company Limited · SET:BBL
Bangkok Bank Public — Q2 2021 Earnings Presentation
32 slides from Bangkok Bank Public's earnings presentation, 2021
Slide 1: Investor Presentation for 2Q21
Investor Presentation For 2Q21
Slide 2: Bangkok Bank agenda
Bangkok Bank Operating environment 2Q21 Financial performance 2021 Financial target 2
Slide 3: Delta variant has led to a sharp rise in COVID-19 cases
The Delta variant has led to a sharp rise in COVID-19 cases again around the world Alpha Variant Delta Variant 3 Source: Worldometer 3
Slide 4: Vaccines will take at least 1.5-2 more years to reach all regions
It will take at least 1.5 - 2 more years for vaccines to be available to all regions around the world 4 Source: EIU 4
Slide 5: Waves of Spanish flu during 1918-1919: UK cases
3 Waves of Spanish flu during 1918-1919 : UK cases 5 Source: CDC 5
Slide 6: Global economy recovering with vaccination in advanced countries
With adequate level of vaccination in advance countries, the global economy has seen its worst days and are now recovering as economies adjusted to the new normal 7.0 4.9 6 Source: IMF 6
Slide 7: Exports held up well despite Thai domestic challenges
With the global economic recovery, exports held up well despite challenges in the Thai domestic economy Economic Indicator - Demand Economic Indicator - Supply Crop Production 7 Source : Bank of Thailand 7
Slide 8: Third-fourth wave leads to sharp slowdown in Thai economy
The third-fourth wave of the pandemic stemming from Alpha and Delta variants leads to a sharp slowdown in the Thai domestic economy The third-fourth wave The second wave 8 Source: Worldometer 8
Slide 9: Reduced mobility during the third-fourth outbreak
Reduced mobility during the third-fourth outbreak 9 Source: Google, Macrobond 9
Slide 10: Domestic tourism in the doldrums; durable goods sales slowed
Domestic tourism remained in the doldrums and durable goods, such as car and motorcycle sales, slowed Occupancy rate Commercial car sales Motorcycle sales 10 Source: BOT, Macrobond 10
Slide 11: Impacts on the Thai economy: further downgrades to follow
Impacts on the Thai economy : Further downgrades to follow GDP growth YoY (%) Exports Global economic Large scale fiscal boom from recovery stimulus major economies’ Strong Baht stimulus Global financial crisis Great floods appreciation up Brexit and to taper tantrum US election recovery Collapse in
Slide 12: Responses of the Thai government
4 Responses of the Thai government Public Stimulus Reopening Vaccine Rollout Covid Control 12
Slide 13: Implications to Thai Businesses
Implications to Thai Businesses Competition in the New Normal Restarting Businesses Liquidity Support 2020 2021 2022 2023 Covid Control Public Infrastructure Vaccine Rollout Projects Reopening Support the Economy 13
Slide 14: Bangkok Bank agenda
Bangkok Bank Operating environment 2Q21 Financial performance 2021 Financial target 14
Slide 15: Prudent and diversified approach to loan growth
Prudent and diversified approach to loan growth Loan Loan by business unit Billion Baht % of composition +2.2% YTD International +2.2% QoQ 24% 2,420 2,368 2,369 Corporate 40% Jun-21/1 Consumer 13% 2,083 2,061 2,004 7% Business 16% Commercial Loan by industry % of composition 13% Real estate and cons
Slide 16: Net interest margin decreased following multiple rate cuts
Net interest margin decreased following multiple interest rate cuts Net interest income NIM, Yield on earning asset, Cost of fund Billion Baht % 77.0 71.4 3.68% 3.72% 3.72% 71.1 66.6 3.28% 3.40% 2.96% 2.32% 2.40% 2.35% 2.31% +4.8% YoY 2.24% 39.7 2.12% 37.9 1.54% 1.52% 1.59% 1.26% 1.19% 0.96% /1 /1 /
Slide 17: Net fee income growth from mutual fund and bancassurance
Net fee income growth from mutual fund and bancassurance services, and security business Net fees and service income Fees and service income Billion Baht % of composition 28.5 27.5 27.6 12% 12% 13% 24.7 20% 20% 28% 15% 20% 21% 23% 23% 8% 8% 7% +18.8% YoY 23% 14.2 7% 8% 22% 21% 19% 12.0 6% 19% 21% 16
Slide 18: Cost to income ratio within manageable range
Cost to income ratio within manageable range Operating expenses Cost to income ratio Billion Baht % 66.0 55.2 55.0 48.9 55.0% +21.4% YoY 49.5% 32.1 43.5% 45.4% 41.1% 45.0% 26.4 /1 /1 /1 /1 /1 /1 2017 2018 2019 2020 1H20 1H21 2017 2018 2019 2020 1H20 1H21 Permata’sfinancial performance and one-time i
Slide 19: Continue delivering profits across business cycles
Continue delivering profits across business cycles Pre-provisioning operating profit (PPoP) Billion Baht 78.8 66.2 63.5 52.8 32.4 22.4 22.0 32.3 32.6 31.2 18.3 16.1 17.3 15.1 17.5 33.0 35.3 35.8 13.2 6.3 9.8 17.2 13.3 10.8 6.9 6.4 3.1 /1 /1 /1 /1 /1 /1 2017 2018 2019 2020 1H20 1H21 2Q20 1Q21 2Q21 Ne
Slide 20: Manageable asset quality under effective risk management
Manageable asset quality under effective risk management NPL amount NPL ratio Billion Baht % 140 120 111.0 104.4 108.5 3.9% 3.9% 100 3.7% 3.7% 87.4 3.4% 3.4% 80 80.1 79.1 60 40 20 0 /1 /1 /1 /1 /1 /1 2017 2018 2019 2020 Mar-21 Jun-21 2017 2018 2019 2020 Mar-21 Jun-21 20 Note: /1 Includes Permata’s f
Slide 21: Strengthen financial loss absorption amid delayed economic recovery
Strengthen financial loss absorption in response to a delay in the economic recovery and a continued increase in uncertainties 2.0% Expected credit loss (Provision), Credit cost Loan loss reserve (LLR), Coverage ratio Billion Baht , % 250 Billion Baht, % 1.7% 200.0% 1.6% 50.0 200 190.9% 186.8% 187.3
Slide 22: Healthy funding and liquidity position
Healthy funding and liquidity position Loan-to-deposit ratio Liquid assets/2 % % of total assets 39.4% 98.3% 38.1% 96.3% 96.3% 35.5% 35.3% 92.3% 92.2% 34.2% 89.5% 32.7% 86.7% 86.9% 84.3% 81.6% 79.4% /4 /4 /4 /4 /4 /4 2017 2018 2019 2020 Mar-21 Jun-21 2017 2018 2019 2020 Mar-21 Jun-21 System/1 BBL De
Slide 23: Solid capital position above minimum requirements
Solid capital position above minimum requirements Consolidated capital ratios Capital base % Billion Baht +0.9% QoQ +1.1% YTD 502 503 507 20.0% 479 71 68 68 420 427 72 18.2% 18.0% 3.0% 18.3% 18.4% 18.4% 36 36 1.5% 1.5% 2.6% 2.5% 2.5% 407 431 407 435 410 415 439 15.7% 15.9% 15.9% 384 390 0.8% 0.8% 0.
Slide 24: Bangkok Bank agenda
Bangkok Bank Operating environment 2Q21 Financial performance 2021 Financial target 24
Slide 25: 2021 Financial target
2021 Financial target Consolidated 2021 Financial target Loan growth 3-4% NPL ratio (gross) Around 4.5% Net interest margin Around 2.1% Net fee income growth 3-4% Cost to income ratio Low 50s% Expected credit loss Around 22,000 million Baht Note: The above financial targets are based on the Bank’s p
Slide 26: Appendix
Appendix re) Bangkok Bank
Slide 27: Financial position
Financial position Million Baht Dec-17 Dec-18 Dec-19 Dec-20 Mar-21 Jun-21 Growth (%) QoQ YTD Loan 2,003,989 2,083,160 2,061,309 2,368,238 2,369,276 2,420,305 2.2% 2.2% Deposit 2,310,743 2,326,470 2,370,792 2,810,863 2,904,276 3,046,985 4.9% 8.4% LDR 86.7% 89.5% 86.9% 84.3% 81.6% 79.4% -2.2% -4.9% NP
Slide 28: Financial performance – 2Q21
Financial performance – 2Q21 Million Baht 2Q20 1Q21 2Q21 Growth (%) QoQ YoY Net interest income 18,110 19,707 20,027 1.6% 10.6% Net fees and service income 5,621 7,334 6,896 -6.0% 22.7% Other operating income 8,554 3,832 6,900 80.1% -19.3% Total income 32,285 30,873 33,823 9.6% 4.8% Operating expens
Slide 29: Financial performance – 1H21
Financial performance – 1H21 Million Baht 1H20 1H21 Growth (%) YoY Net interest income 37,930 39,734 4.8% Net fees and service income 11,975 14,230 18.8% Other operating income 8,774 10,733 22.3% Total income 58,679 64,697 10.3% Operating expense 26,403 32,050 21.4% Expected credit loss 18,325 16,13
Slide 30: Network Jun-21
Network 2018 2019 2020 Jun-21 Branch/1 1,161 -13 1,148 -13 -20 1,128 -2 1,126 ATM /1 9,389 -27 9,362 -27 -312 9,050 -89 8,961 CDM /1 1,296 -17 1,279 -17 -22 1,257 -6 1,251 Employee/2 25,287 -244 25,043 -244 -684 24,359 -1,109 23,250 Note: Consolidated /1 Domestic operation /2 Exclude Permata’s emplo
Slide 31: Long-standing international presence in 14 economies
Long-standing international presence in 14 economies more than 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) • Chin
Slide 32: 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
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