KKP Analyst Meeting 1Q16kkp.listedcompany.com/misc/PRESN/20160428-kkp-am-1q2016.pdf · 4/28/2016...

1Q16 Financial Performance | Kiatnakin Phatra | April 2016 | 1

KKP Analyst Meeting 1Q16

April 28, 2016


Table of Contents

• Performance Highlights

• Commercial Banking Business

• Capital Market Business

• Appendix


PERFORMANCE HIGHLIGHTS


1Q 2016 Key Performance Highlights Commercial Banking Business

Loan Growth -1.2% loan growth in 1Q16

Hire Purchase 11.9% YoY decline in industry car sales during first 2 months of 2016 to 108,914 units

-0.9% HP loan growth in 1Q16

Increasing penetration rate with 2M16 at 4.7% up from 4.2% at the end of 2015

2.2% HP NPLs , declining from 2.4% at the end of 2015

Retail : Non Hire Purchase Good progress on loan expansions with 4.3% growth during 1Q16

Commercial lending -3.0% loan growth YTD

RE NPLs increased to 21.4% from 19.7% at end of 2015 while SME NPLs increased slightly

Corporate Banking Outstanding loan at Baht 8,075 million, -8.0% growth YTD

Lombard loan Outstanding loan at Baht 1,881 million , 50% growth YTD

SAM Baht 373 million NPA sales with gain of Baht 198 million

Provision expenses Baht 584 million with Baht 350 million general reserve set up in 1Q16 Coverage ratio at 97.2% up from 91.9% at end of 2015 LLR/Required Reserve at 166.7%

Funding COF stable at 2.7% from 4Q15

BIS Ratio BIS ratio at 17.19%, Tier I = 14.48%


Equity Capital Market SET Index closed at 1,407.7 points up 9.3% from end of 2015

Average daily turnover (SET+mai) at Baht 46,540 million improving from

4Q15 but decreased significantly from 1Q15

Combined market share (SET+mai) without Prop. Trade 5.74%, ranked 3rd,

(PTSEC = 5.04%, kktrade = 0.70%)

Private Wealth Management AUA = Baht 334 billion, up 8% YTD with net new money of Baht 9,534 million

Asset Management Business AUM of Mutual Funds and Property Funds = Baht 36,783 million

Mutual Fund market share = 0.87%

AUM of Private Funds = Baht 10,151 million

Investment Business Investment business generated comprehensive revenue of Baht 292 million in

1Q16

1Q 2016 Key Performance Highlights Capital Market Business


Net ProfitsNet Profit (excl. MI)

Baht in Million Baht in Million

* Restated financial statement

Comprehensive Income (excl. MI)

1,884 2,254

202 418 555 607 673 1,132

993 865

-53

279 109 127 351

224

2,878 3,119

149

697 664 734 1,024

1,356

8.0% 8.4%

1.6%

7.5% 7.1% 8.0%10.9%

14.0%

1.2% 1.3% 0.2% 1.2% 1.1% 1.2% 1.7% 2.3%

4Q14 1Q15 2Q15 3Q15 4Q15 1Q16

Banking Business CMG ROAE ROAA

1,884 2,254

202 418 555 607 673 1,132

993 865

-53

279 109 127 351

224

2,878 3,119

149

697 664 734 1,024

1,356

8.0% 8.4%

1.6%

7.5% 7.1% 8.0%

10.9%

14.0%

1.2% 1.3% 0.2% 1.2% 1.1% 1.2% 1.7% 2.3%

4Q14 1Q15 2Q15 3Q15 4Q15 1Q16


1,808 2,307

209 358 602 685 661 901

926

1,010

304 306 147 238 319 205

2,734

3,317

514 664 749 923 980 1,107

1.1% 1.4% 0.8% 1.1% 1.2% 1.5% 1.7% 1.9%

7.6% 8.9%5.6%

7.2% 8.1%10.0% 10.5% 11.5%

4Q14 1Q15 2Q15 3Q15 4Q15 1Q16

1,884 2,254

202 418 555 607 673 1,132

993 865

-53

279 109 127 351

224

2,878 3,119

149

697 664 734 1,024

1,356

8.0% 8.4%

1.6%

7.5% 7.1% 8.0%10.9%

14.0%

1.2% 1.3% 0.2% 1.2% 1.1% 1.2% 1.7% 2.3%

4Q14 1Q15 2Q15 3Q15 4Q15 1Q16


* ** *


Commercial Banking Business* Capital Market Business

1Q16 Net Revenue Breakdown

&Baht 3,097 million* Baht 734 million

Baht 3,831 million

KK Phatra Financial Group

*Incl G/L from NPA but excl G/L from car repossession

Capital Market19%

Commercial Bank81%

Int income from loan74%

SAM8%

Bancassurance11%

Other7%

Brokerage Fee48%

Investment38%

IB2%

AM10%

Other2%


Net Interest Income Non Interest Income*

1Q16 Net Interest Income : Non Interest Income

Baht 2,337 millionBaht 1,494 million*

Baht 3,831 million

Net Interest Income (NII) : Non Interest Income (Non-NII)

*Incl G/L from NPA but excl G/L from car repossession

NII61%

Non-NII39%

Brokerage Fee24%

Investment18%

Bancassurance

23%

SAM13%

IB1%

AM5%

Other16%

Retail68%

RE14%

SME10%

SAM2%

Corp3%Others

3%


* *

Consolidated Income Statements

* Restated financial statement

Baht in million 1Q15 2Q15 3Q15 4Q15 1Q16 QoQ YoY Y2014* Y2015

Interest income 3,702 3,595 3,736 3,743 3,493 (7%) (6%) 15,929 14,776

Interest expense (1,502) (1,392) (1,260) (1,174) (1,156) (2%) (23%) (7,016) (5,328)

NII 2,201 2,202 2,476 2,569 2,337 (9%) 6% 8,913 9,449

Fee income 968 932 955 1,079 1,024 (5%) 6% 3,863 3,934

Fee expense (106) (104) (130) (123) (124) 1% 18% (411) (463)

Net fees income 863 828 825 956 900 (6%) 4% 3,452 3,471

Other operating income 531 223 706 677 396 (41%) (25%) 1,546 2,137

G/L from sale of foreclosed assets (149) (87) (165) 20 46 124% (131%) (1,279) (381)

Total operating income 3,445 3,167 3,842 4,223 3,679 (13%) 7% 12,633 14,676

Operating expense (1,732) (1,692) (1,696) (2,322) (1,706) (27%) (1%) (6,270) (7,441)

Provision Expense (918) (524) (941) (824) (584) (29%) (36%) (3,199) (3,208)

Income before income tax 795 951 1,205 1,077 1,389 29% 75% 3,163 4,027

Net income -Bank 664 749 923 980 1,107 13% 67% 2,734 3,317

Diluted EPS 0.79 0.89 1.09 1.16 1.31 13% 66% 3.24 3.92

- - CI - Bank 697 664 734 1,024 1,356 32% 95% 2,878 3,119

Headcount 4,032 3,942 4,028 4,127 4,148 3,984 4,127


Financial Performance

% 1Q15 2Q15 3Q15 4Q15 2015 1Q16

ROAE 7.2 8.1 10.0 10.5 8.9 11.5

Loan Growth (1.8) (3.0) 0.6 0.6 (3.6) (1.2)

Retail (3.0) (2.3) (2.1) 0.4 (6.8) (0.7)

Commercial 0.8 (2.6) 0.4 (2.5) (3.8) (3.0)

Corporate 0.5 (21.2) 62.4 18.0 51.8 (8.0)

Loan Spread 4.0 4.2 4.9 5.1 4.5 4.8

NPLs Ratio (Gross) 6.5 6.9 6.6 5.8 5.8 5.7

NPA Sales(Baht in billion) 0.3 0.3 0.5 0.5 1.6 0.4

Branches 81 63 62 65 65 65


COMMERCIAL BANKING BUSINESS


6.0 4.1 5.8

193.9 187.7 184.6 181.2 175.7 176.8 178.0 175.8

0

50

100

150

200

250

2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16

Baht in billion

Commercial Corporate SAM Lombard Others Total

-2%-2% -3% 0.6% -1.2%

-3% 0.6%

Gross Loan Composition

Loan Growth• Retail Banking (68.2%) – contracted loan

• Auto Hire Purchase (65.6%)

• -0.9% loan growth YTD

• Outstanding HP loans of Baht 115,254 million

• New : Used = 53:47

• HP NPLs decreased to 2.2% from 2.4% at end of 2015

• Continuing improvement in loss from repossession/asset cost

• Other retail loans (2.6%) – good progress with 4.3% growth YTD

• Personal loan - Baht 2,085 million

• Micro SMEs - Baht 1,361 million

• Housing loan - Baht 1,097 million

• Commercial Lending (25.5%) – decreased 3.0% YTD

• RE - Real Estate Development (13.2%)

• -6.3% loan growth YTD

• NPLs at 21.4% increasing from 19.7% at end of 2015

• SMEs loans (12.3%)

• 0.7% loan growth YTD

• NPLs at 6.6% slight increase from 6.5%

• Corporate Lending (4.6%)

• Baht 8,075 million outstanding loan, -8.0% loan growth YTD

• Lombard Loan (1.1%)

• Baht 1,881 million outstanding loan, 49.9% loan growth YTD

6.0 6.0 4.1

197.5 193.9 187.7 184.6 181.2 175.7 176.8 178.0

0

50

100

150

200

250

1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15

Baht in billion

Retail Commercial Corporate SAM Lombard Others

-3%-2% -2%

-3%0.6%

-2%

0.6%


1.551.43 1.39 1.39 1.44 1.40 1.39

1.45

0.50

0.73 0.74 0.70 0.66 0.650.74 0.79

1.04

0.700.64 0.69

0.79 0.750.64

0.65

1Q15 2Q15 3Q15 4Q15 1Q16

Asset Duration Liability Duration Duration Gap

Interest Bearing Debt

Funding

Asset-Liability Duration

During 1Q16, KKP issued debentures amounting to Baht 21,316 million of which Baht 1,500

million are subordinated debentures classified as Tier 2 capital

Duration gap at 0.65 year

Duration (yrs)

204.6 199.6184.9 179.4 175.5 173.3 174.6 172.8

0

25

50

75

100

125

150

175

200

225

250

2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16

Baht in billion

CASA Fixed Deposits B/E Debentures Interbank


NIM = Net interest income / Average earning assets including Interbank, investment in securities, investment in loans, loans net deferred revenue

Loan Spread

Loan spread

Loan spread improved from 4.5% in Y2015 to 4.8% in 1Q16 from the continuing

decline in Cost of Fund from 3.0% in Y2015 to 2.7% in 1Q16

7.9% 7.9%7.6% 7.5% 7.4%

7.6% 7.6%7.3% 7.3%

7.7% 7.8%7.5%

4.0%

3.9%

3.7%

3.0%

3.6% 3.4%

3.4% 3.3%3.1%

2.9% 2.7% 2.7%

3.4% 3.7% 3.8%

4.3%

3.5% 3.9%4.1%

4.0%

4.0%

4.6% 4.9% 4.4%

3.9%4.0%

3.9%

4.5%

3.7% 4.2%

4.2% 4.0%4.2%

4.9% 5.1%4.8%

2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16

Yield on Loans Cost of Funds (incl.DPA fee)

NIM Loan Spread


Asset Quality and Loan Loss Reserve

Gross Classified Loan LLR / Required Reserve (Bank Only)

NPLs decreased to 5.7% from 5.8% at the end of 2015

Continuous decline in HP NPLs since 2Q15

The ratio increased further in 1Q16 with the general

reserve set up

* As of 2Q13, the Bank applied Collective Approach as mandatory reserve for HP loans

causing LLR/ Required Reserve to rise

1.6

1.3

1.4

1.6

1.5

1.4

1.5

1.6

1.7

1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16

LLR/Required reserve

8.3

10.8 10.5 10.4

11.8 12.111.6

10.4 10.1

4.2%

5.6% 5.6% 5.6%

6.5%6.9%

6.6%

5.8% 5.7%

4.1%

5.3% 5.4% 5.5%

6.4%6.9%

6.5%

5.6% 5.5%

1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16

Classified loan %Classified loan/ gross loan % BOT NPL ratio

Baht in billion


53%

34%

60%

41%

SAM RESAM RESAM RESAM RE SME

Retail

NPL and Coverage ratio

21.7119.9

Total gross loans (Baht in billion)

0.7

% Classified loans / Gross loans % Reserve / Classified loans

23.2 3.05.0

Total classified loans(Baht in billion)Collateral Coverage

201% 177% 112%* 121%

*excl. HP

(ex. general provision Baht

3.2 billion)

NPLs amount totaled Baht 10,106 million or 5.7% of gross

loans, declining from 5.8%

Coverage ratio at 97.2% with outstanding general provision of

Baht 3,200 million

0.7 1.4

97%

66%

100.0%

21.4%

2.5% 6.6% 5.7%RE

Retail SME

SAM

SAM


Liquidity

Loan to Deposit & Borrowing Ratio

96.5% 100.0% 105.5% 102.9% 105.3% 107.6% 107.6% 107.9%

123.5% 124.3%139.6% 140.4% 143.4%

159.2%170.6% 176.6%

2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16

Loan to deposit & borrowing Loan to deposit


Efficiency ratio

1/ Operating expense (excl. Loss from fair value adjustment and G/L from sale of foreclosed assets)/ Net revenue (incl. G/L from sale of NPA)2/ Earning assets includes net loan, NPA, Interbank & money markets and Investment in loans & properties

Cost to Income1 Cost to Earning Assets2 (annualized)

Cost to income increased slightly QoQ from lower net

revenue Operating costs to earning assets declined QoQ due

mainly to lower variable expenses

44.4% 44.1% 44.8% 45.2%40.2%

46.4% 47.2%

1Q15 2Q15 3Q15 4Q15 1Q16

2.7%

3.3%

3.0%2.8%

3.1%

3.8%

3.3%

1Q15 2Q15 3Q15 4Q15 1Q16


If including net profits up to 1Q16:

CAR ratio = . 0%

Tier 1 ratio = . %

CAR Ratio and Tier 1 Ratio (BankOnly)

High quality capital (common equity)

27.4 28.230.4

33.2

28.830.6 30.5 30.4 30.1 30.3

33.2 34.8

14.69%

13.66%

15.17%

16.54%

13.72%

14.77%15.17% 15.36%

15.13%14.91%

16.54%

17.19%

14.01%

13.10%

14.77%14.57%

13.29%

14.36%14.78% 14.97%

14.76%14.53%

14.57% 14.48%

2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16

Total Capital

CAR Ratio

Tier I Capital Ratio

Baht in million


CAPITAL MARKET BUSINESS


Capital Market Business - Financial Performance Summary

1Q12(Bt 1,019 mm)

1Q13(Bt 1,524 mm)

(million baht) 1Q15 1Q16 % change

Revenues

Agency Business

Brokerage fees 460.6 441.8 -4.1%

Fee and services income 71.2 96.7 35.8%

Interest on margin loan 7.5 4.9 -34.7%

Agency Business 539.3 543.4 0.8%

Investment Business 416.1 270.2 -35.1%

Others Income 13.8 21.7 57.2%

Total Revenues 969.2 835.3 -13.8%

Total Expenses 583.1 577.1 -1.0%

Net Profit/(Loss) 306.2 205.5 -32.9%

Other comprehensive incomes :

Gain/(Loss) on revaluation

available-for-sale investment (34.7) 21.4 161.7%

Acturial Loss on retirement - 0.3 100.0%

Deferred income tax 7.3 (3.3) -145.2%

Total other comprehensive income (27.4) 18.4 167.2%

Total comprehensive income

for the period 278.8 223.9 -19.7%


Agency Business – Equity Brokerage Business

Daily average trading of market in 1Q16 was 46,540 million baht, significant decreased from 1Q15.

Combined ’s daily average trading value in 1Q16 were 6,587 million baht, increased 13% from 1Q15.

44,302

54,369

46,540

2015 1Q15 1Q16

Market Daily Average Trading Value (Bt million) Breakdown of client of SET & MAI

22.2% 19.1%25.4%

9.4%8.5%

10.2%9.2%

8.2%

11.4%59.2%

64.2%

53.0%

2015 1Q15 1Q16

Foreign Local institutions Proprietary account Local retail

Daily Average Trading Value (Bt million)

5,2244,950

6,010

648 876

577

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2015 1Q15 1Q16

Phatra kktrade

8.6%

13.4%

10.6%

11.5%

10.7%

7.6%

9.2%

10.1%

13.0%

9.6%

1.7% 1.9% 1.8%1.9% 1.8%

1.3% 1.3% 1.3% 1.2% 1.2%0.0%

2.5%

5.0%

7.5%

10.0%

12.5%

15.0%

1Q15 2Q15 3Q15 4Q15 1Q16

Local Foreign PWM kktrade

Rank (client only)

Phatra + kktrade 4 6 3

Market share - Segmented by Investor


HNW’s Asset Base

Our Asset under Advise (AUA) grew 8% in 1Q16 and has net new money amount Baht 9,534 million

Stock, 61.6%

Mutual Fund, 29.9%

Bond & Cash & Structure Product & PF, 8.5%

Total: Baht 310 billion

Y2015

Average Yield 0.23% 0.23%

Private Fund Mutual Fund

Stock, 59.7%

Mutual Fund, 30.2%

Bond & Cash & Structure Product & PF, 10.1%

Total: Baht 334 billion

1Q2016

3,546

9,1629,945 9,964

10,151

0.66%

1.73%

2.03%1.69% 1.58%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

0

2000

4000

6000

8000

10000

12000

Mar-15 Jun-15 Sep-15 Dec-15 Mar-16

Phatra AUM Mkt share

31,736

36,479

34,505 35,29636,783

0.83%0.90%

0.87% 0.87%0.87%

0.00%

0.40%

0.80%

1.20%

20,000

30,000

40,000

Mar-15 Jun-15 Sep-15 Dec-15 Mar-16

Mutual Fund AUM Mkt share

Agency Business (cont’d)

Asset Management Business


1Q2015 1Q2016

Baht million

Total

Investment BusinessComprehensive Revenue

140.7 191.9

28.6

95.8

173.2

-23.0

38.9 26.9

1Q2015 1Q2016

Equity & Derivatives Trading Direct Investment

Hedge Fund Treasury & Others

Breakdown by Department

381.4 291.6


APPENDIX


Highlights

Outlook

HP loans contracted slightly at 0.9%

YTD with 4.7% penetration rate up

from 4.2% in 2015

Focus on asset quality, rather than

loan growthEmphasize pricing strategy that

corresponds to borrowers’ risks

Continuous improvements in NPLs

especially for used cars

Prudent risk control across loan process

Increasing loan yield

Trend and Outlook

HP

Loans Loan Yield Portfolio Quality

Improved loss on repossession per asset

cost

120.7 118.0 115.7 116.2 115.3

1Q15 2Q15 3Q15 4Q15 1Q16

Baht in billion

-2% -2%-1%

1%

2.18 2.11 2.09 2.11 2.15

7.1 7.1 7.2 7.3 7.4

1Q15 2Q15 3Q15 4Q15 1Q16

Baht in billion

85% 94%103%

128%

147%

3.2%

3.0%2.8%

2.4%

2.2%

1Q15 2Q15 3Q15 4Q15 1Q16

% Coverage ratio % Classified loans


Sedans38%1 ton

pick-up trucks

41%

Others21%

HP portfolio breakdownPortfolio characteristic

* Others include vans and trucks

*

by location by class by car type

Non-BKK71%

BKK29%

Used cars47%

New cars53%


Other Retail LoansTrend and Outlook


0.18 0.18 0.16 0.150.13

14.1 14.4 14.0 13.7

11.9

1Q15 2Q15 3Q15 4Q15 1Q16

Other Retail Income

Other Retail Yield on Loan

Baht in billion

71% 69% 70%

65%60%

15.8%16.6% 17.1%

13.3%12.1%

1Q15 2Q15 3Q15 4Q15 1Q16

% Coverage ratio

Classified loans

5.0 4.8 4.6 4.4 4.6

1Q15 2Q15 3Q15 4Q15 1Q16

Others

Micro-SMEs Loans

Housing Loans

Personal Loans

Baht in billion

4%-3%

-3%-4%


RE

Highlights

Outlook

RE loan decreased by 6.3% YTD Loan yield increased in 2H15 from cash

basis interest incomeNPLs increasing

Policy to manage and control credit quality

and reduce classified loans

Trend and Outlook


Expect slight loan growth

38%35% 34% 34% 34%

17.9%21.3% 20.2% 19.7%

21.4%

1Q15 2Q15 3Q15 4Q15 1Q16

% Coverage ratio

%Classified loans

0.51 0.50

0.66 0.67

0.49

7.4 7.2

9.8

10.4

8.1

1Q15 2Q15 3Q15 4Q15 1Q16

RE Income

RE Yield on Loan

Baht in billionBaht in billion

27.9 27.0 26.924.7

23.2

1Q15 2Q15 3Q15 4Q15 1Q16

-0.3%-3.3% -8.1%

Baht in billion

-6.3%


Portfolio characteristic

by location by class

RE portfolio breakdown

Greater BKK54%

South21%

East16%

Northeast2%

Central 3%

North4%

SDH/TH64%

Residential Condo34%

Others2%


SME

Highlight

Outlook

SME loans increased 0.7% YTD

Expect yield to remain stable with close asset

quality monitoring

Slight decline in loan yield NPLs increased slightly

Cautious credit screening across portfolio

Trend and Outlook

Increase numbers of sectors to focus


20.6 20.3 20.621.5 21.7

1Q15 2Q15 3Q15 4Q15 1Q16

Construction &Machinery

Specialized Industrial (Printing & Packaging)

Floor Plan

Logistics

Apartment and Hotel

Baht in billion

1%-2% 1% 5%

53% 54%

48%44%

41%

7.1% 6.7% 7.1% 6.5% 6.6%

1Q15 2Q15 3Q15 4Q15 1Q16

% Coverage ratio %Classified loans

0.38 0.38 0.38 0.38 0.38

7.3 7.5 7.4

7.2 7.0

1Q15 2Q15 3Q15 4Q15 1Q16

Income Yield on Loan

Baht in billion


Corporate


Highlight Portfolio decreased 8.0% YTD

Outlook Vast opportunity for growth

Declining loan yield

Steady loan yield or possibly lower

for those with good credit rating

Good credit quality

Low risk with sufficient collateral

5.8

4.6

7.4

8.8

8.1

1Q15 2Q15 3Q15 4Q15 1Q16

-8.0%

Baht in billion

62.4%

-21.2%

18.0%

5.9% 5.7% 5.9% 5.8%5.6%

1Q15 2Q15 3Q15 4Q15 1Q16

Yield on LoanBaht in billionBaht in billion

0.0% 0.0% 0.0% 0.0% 0.0%

1Q15 2Q15 3Q15 4Q15 1Q16

%Classified loans


0.6

1.3

1.9

2Q15 3Q15 4Q15 1Q16

Outstanding Loans

Lombard Loan

Loans Loan Yield

Highlight Multi-purpose credit facility for Wealth Management clients using financial assets as collateral

Positive feedback since product launched in 3Q15

Baht in billion

49.9%

5.2% 5.2%

5.1%

3Q15 4Q15 1Q16

0.6

1.3

1.9

2Q15 3Q15 4Q15 1Q16

Outstanding Loans


Financial Markets

Revenue Ranking

Highlight

Baht in million

Offering more comprehensive banking products and services

Focus on collaborations within the business group to expand KKP wholesale banking business

1716

18

16

21

56 6

6 6

1Q15 2Q15 3Q15 4Q15 1Q16

Ranking All Dealer

Ranking Corporate Bond Dealer

190

3622

54

78

42

1Q15 2Q15 3Q15 4Q15 1Q16


0.7 0.7 0.7 0.7 0.7

1Q15 3Q15 1Q16

3.6 4.2 4.6 4.6 4.8

1Q15 3Q15 1Q16

3.6 3.8 3.8 3.7 3.7

1Q15 3Q15 1Q16

SAM

Financial claim loans Foreclosed assets

Interest income from investment in loans Gain from NPA sale

Highlight Outlook

Asset increased

from increased in

foreclosed assets

Portfolio in

liquidation process

Trend and Outlook

NPA sales in 1Q16

totaled Baht 373

million with Baht 198

million in gain

Investment in loans

Interest income from Financial claim loans

9.0 9.2

AssetsBaht in billion

Total Assets

297 282

1Q15 1Q16

IncomeBaht in million

Total income

40%

7%

53%

19%

Q Q Q

11%70%

173 201 205 265 198

1Q15 3Q15 1Q16

118 126 146 145 53

1Q15 3Q15 1Q16


SAM: foreclosed asset with significant value buffer

Highlight and

outlook

Portfolio quality

Appraised value of foreclosed assets significantly higher than

book value; this is reconfirmed by the sales value being

consistently higher than book value of assets sold

Trend and Outlook (Cont’d)

Foreclosed assets (including RE) Financial claim loans

5.0 4.1 3.7 4.6 4.8

10.3 9.2 8.3 9.4 9.7

1Q16

Book value

Appraised value

Assets

Baht in billion

1.2 1.6 1.2 0.90.2

2.9 2.92.1

1.3

0.3

3.23.1

2.2 1.60.4

1Q16

Book value

Appraised value

Sold Value

Sales (YTD)

Baht in billion 58% 53%

45% 45%44%

100% 100% 100% 100%100%

1Q15 2Q15 3Q15 4Q15 1Q16

% Coverage ratio

% Classified loans


Foreclosed assets* sold and appraised value

*Includes foreclosed assets from RE business

Trend and Outlook (Cont’d)

Year Assets sold Appraised value Sold/Appraised

2000 192 212 91%

2001 458 405 113%

2002 1,521 1,340 114%

2003 2,819 2,839 99%

2004 878 913 96%

2005 593 617 96%

2006 738 685 108%

2007 1,960 1,850 106%

2008 2,973 2,686 111%

2009 2,959 2,970 100%

2010 3,958 3,957 100%

2011 3,175 2,955 107%

2012 3,209 2,875 112%

2013 2,777 2,535 108%

2014 2,222 2,088 106%

2015 1,597 1,308 122%

1Q16 373 311 120%

Total 32,402 30,545 106%

Baht in million


Foreclosed assets breakdownPortfolio characteristic

by location by class

Greater BKK60%

South19%

East3%

Northeast4%

Central 6%

North8%

Housing35%

Lands57%

Residential Condo

8%


Investor Relations

KIATNAKIN BANK PUBLIC COMPANY LIMITED

209/1, K Tower B, 31st Floor.,

Sukhumvit 21 (Asoke)

Klongtoey-nua, Wattana

Bangkok 10110

Tel. (662) 841-5925

Fax: (662) 841-5529

E-mail : [email protected]

http://www.kiatnakin.co.th

Kiatnakin Phatra Financial Group

Disclaimer: This presentation contains some information from other sources, KK and PHATRA cannot confirm, in all cases, the accuracy and completeness of

such data, particularly where the data sourced from outside the Group. In addition, any forward looking statements are subject to change as a result of market

conditions and the final result may be different to that indicated. The Bank makes no representation or warranty of any type whatsoever on the accuracy or

completion of the information contained herein.

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