Important economic directions

Transcription

1 3Q 2012

2 Important economic directions 1. Higher investment both from government and private sectors 2. Higher investment both from foreign direct investment and Thai direct investment 2

3 Private investment Baht 2,488 bn, 13.7% growth from 2011 Baht Bn Private investment at current market prices 3, % 2,000 1,000 0 Source: Office of the National Economic and Social Development Board (NESDB) 3

4 10 years of low investment, now new cycle starts 40% Prior 1998 Over-invest Asian crisis Low investment 4Q10-present New Capex 30% 20% 10% 0% Private investment / GDP (%) Source: Office of the National Economic and Social Development Board (NESDB) 4

5 High CapU industries expanding quickest Q3 Before flooding Nov During flooding Sep* Food & Beverages Vehicles Petroleum Chemical Hard Disk Drive Integrated circuit Electrical Appliances Note: *Sep-12 are preliminary figures Source: The Office of Industrial Economics, Bank of Thailand 5

6 97% increase in BOI applications reflect investment intentions 9M11 407, % 9M12 804,000 Value of BOI application (Baht mn) Source: Thailand Board of Investment 6

7 00 Industries applying to BOI are in line with high CapU industries Infrastructure Baht 237,400 mn Vehicle and Metal Baht 186,500 mn Chemical Baht 174,000 mn Electronics Baht 104,800 mn Agriculture Baht 56,400 mn Note: For the first nine months of 2012 Source: Thailand Board of Investment 7

8 Baht 350 bn invested in water-management Forest restoration Database and warning system Dam efficiency improvement Total Budget Baht 350 bn Water reservoirs Floodway management Dyke construction 8

9 Baht 2.3 trn invested in infrastructure Land transport Energy Marine transport Telecommunications Total Budget Baht 2.3 trn Air transport Public utilities 9

10 Foreign Direct Investment up 70% Foreign direct investment applications Japan remains no.1 investor in Thailand Baht Bn % % % Total FDI (2010 vs 2011) Total FDI Japan (9M11 vs 9M12) (9M11 vs 9M12) Source: Thailand Board of Investment 10

11 Thai businesses expanding overseas up 21% Baht Bn 400 Thai direct investment (TDI) abroad % % Source: Bank of Thailand 11

12 Bangkok Bank positioning and strategies

13 The Largest market share of Loans Largest loans market share 89% Business loans International 16% System* (exc. BBL) 82% BBL 18% Consumer 11% Small-size SMEs 10% Mid-size SMEs 16% Large Corporate 47% Note: As at September 2012 *System refers to 16 commercial banks registered in Thailand. Source: Bank of Thailand, Bangkok Bank analysis Note: As at September 2012 Bank only, including BBC and BBB 13

14 The Largest overseas operations 25 branches and 1 rep. office in 13 economies, since Hong Kong - 2 branches (Since 1954) 2. Japan - 2 branches (Since 1955) 3. Singapore - 1 branch (Since 1957) 4. United Kingdom - 1 branch (Since 1957) 5. Malaysia - 5 branches (Since 1959) 6. Taiwan - 3 branches (Since 1965) 8. United States - 1 branch (Since 1984) 9. China - 4 branches (Since 1986) 10. Laos - 1 branch (Since 1992) 11. Vietnam - 2 branches (Since 1992) 12. Philippines - 1 branch (Since 1995) 13. Myanmar - 1 Rep. Office (Since 1995) 7. Indonesia - 2 branches (Since 1968) Shanghai branch Xiamen branch Beijing branch Shenzhen branch 14

15 The Largest market share of Deposits Largest deposit market share 43% Current and Savings (CASA) System* (exc. BBL) 81% BBL 19% Fixed 56.9% CASA 43.1% Note: As at September 2012 *System refers to 16 commercial banks registered in Thailand. Source: Company filings, Bangkok Bank analysis 15

16 The Highest Liquidity gives flexibility in competitive funding market 100% 80% 60% 40% 87% 95% 20% 0% BBL System* Loans / Deposit - LDR (%) Note: As at September 2012 *System refers to 16 commercial banks registered in Thailand. Source: Company filings, Bangkok Bank analysis 16

17 The Highest Tier 1 capital enables loan growth and business expansion 15.0% 10.0% 5.0% 12.3% 11.1% 0.0% BBL** Tier 1 ratio (%) System* Note: As at September 2012 *System refers to 16 commercial banks registered in Thailand. **With the inclusion of net profit for the third quarter of 2012, Tier 1 capital ratio would be 12.8%, and CAR would be 15.9%. Source: Company filings, Bangkok Bank analysis 17

18 The Highest loan loss reserves provide comfortable cushion for lending 250% 200% 150% 100% 50% 191.8% 117.2% 0% BBL System* Loan loss reserve / NPL (%) Note: As at September 2012 *System refers to 16 commercial banks registered in Thailand. Source: Company filings, Bangkok Bank analysis 18

19 To leverage strong position, our strategies are UNDERSTAND CUSTOMER UNDERSTAND MARKET Marketing Product Process Network People Organization structure Risk Management IT 19

20 Bangkok Bank Financial results

21 ,042 1,181 1,143 1,256 1,470 1,550 Lending up Baht 80 bn or 5.4% YTD Baht Bn 2,000 1, % YTD 1, Sep-12 Loans (Baht Bn) 21

22 Lending momentum continues Index Dec-09 = Sep Dec-09 Dec-10 Dec-11 Sep-12 Loan growth since December

23 NPL ratio steady at 2.6% Baht Bn % 7.9% 8.0% % 4.4% 6.0% % 2.7% 2.6% 2.7% 2.6% % 2.0% Mar-12 Jun-12 Sep % NPL (Baht Bn) NPL Ratio (%) 23

24 Coverage ratio high at 191.8% 250% 200% 150% 100% 82.2% 109.6% 117.1% 158.9% 199.0% 193.1% 187.1% 191.8% 50% 0% Mar-12 Jun-12 Sep-12 Loan Loss Reserve / NPLs - Coverage Ratio (%) 24

25 Excess loan loss reserves at Baht 49 bn Baht Bn Mar-12 Jun-12 Sep-12 Excess reserve over BOT (Baht Bn) Allowance required by BOT (Baht Bn) 25

26 Credit cost lower to 41 bps Baht Bn M12 Bps Provisioning (Baht Bn) Credit cost (Bps) 26

27 High liquidity with LDR at 87.3% 110% 100% System 95.0% 90% 80% BBL 87.3% 70% 60% Mar-12 Jun-12 Sep-12 BBL LDR System LDR* Note: *System refers to 16 commercial banks registered in Thailand. BBL if including B/E, LDR = 86.3% Source: Bank of Thailand, Company filings, Bangkok Bank analysis 27

28 1,080 1,071 1,123 1,195 1,164 1,228 1,277 1,322 1,361 1,394 1,588 1,776 Deposits up Baht 188 bn or 11.9% YTD Baht Bn 2, % YTD 1,500 1, Sep-12 Deposit (Baht Bn) 28

29 NIM lower to 2.59% from cost pressure 3.0% 2.88% 2.81% 2.8% 2.6% 2.64% 2.64% 2.76% 2.60% 2.66% 2.55% 2.75% 2.59% 2.4% 2.2% 2.0% Q11 4Q11 1Q12 2Q12 3Q12 9M11 9M12 Yearly Quarterly Period Net Interest Margin (%) 29

30 Fee income mainly from Transaction Services Fee income breakdown 11% 10% Bancassurance & Mutual Funds 10% 16% 28% 25% Loan related fees Credit cards Transaction services Global market services Others For the nine-month periods ended September 30,

31 Net fee income up 0.6% from 9M11 Baht Bn % YoY % YoY +0.8% QoQ Q11 4Q11 1Q12 2Q12 3Q12 9M11 9M12 Yearly Quarterly Period Net Fee Income (Baht Bn) 31

32 Operating expenses up 7.7% from 9M11 Others +8.4% 16.2% Tax & duties +19.3% 10.3% 50.9% Personnel +7.6% 22.6% Premises & Equip. +2.9% For the nine-month periods ended September 30, 2012 Note: Personnel expenses include Directors remuneration 32

33 Cost-to-income at 42.9% 100% 80% 60% 40% 67.9% 71.9% 65.0% 58.1% 54.3% 53.2% 51.4% 51.6% 51.6% Changed reporting format to comply with BOT requirement 42.2% 43.8% 42.9% 20% 0% M12 Cost to income (%) 33

34 Net profit up 3.3 bn or 15.6% from 9M11 Baht Bn % YoY % YoY -12.1% QoQ Q11 4Q11 1Q12 2Q12 3Q12 9M11 9M12 Yearly Quarterly Period Net profit (Owners of the bank) 34

35 Dividend well balance between absolute amount and payout ratio Baht % % 40% 30% 20% 10% 0% Interim (L) Final (L) Dividend payout ratio (R) 35

36 Summary Attractive business opportunities BBL will seek to actively capture them Risk of volatility from domestic and global factors BBL s prudent management provides good comfort 36

37 APPENDIX ASEAN map 37

38 APPENDIX Thailand Map 38

39 APPENDIX Bangkok and vicinity Dawei-Laem Chabang DAWEI Distance 132 km from Thai-Myanmar border 202 km from Kanchanaburi 342 km from Bangkok 472 km from Laem Chabang (the largest deep-sea port in Thailand) in Chonburi 39

40 For further information Contact: Investor Relations Team Tel (66) Fax (66) IR@bbl.co.th Bangkok Bank Website 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 without the consent of Bangkok Bank. Although all reasonable effort has been made to ensure the facts stated herein are accurate and that the opinions contained herein are fair and reasonable, this document is selective in nature and is intended to provide an introduction to, and overview of, the business of Bangkok Bank. Where any information and statistics are quoted from any external source, such information or statistics should not be interpreted as having been adopted or endorsed by Bangkok bank as being accurate. Neither Bangkok Bank nor any of its directors, officers, employees, and advisors nor any other person shall have any liability whatsoever for loss howsoever arising, directly or indirectly, from any use of this information. The facts and information contained herein are as up to date as is reasonably possible and may be subject to revision in the future. Neither Bangkok Bank nor any of its directors, officers, employees or advisors nor any other person makes any representation or warranty, express or implied, as to the accuracy or completeness of the information contained in this presentation. Neither Bangkok Bank nor any of its directors, officers, employees and advisors nor any other person shall have any liability whatsoever for loss howsoever arising, directly or indirectly, from any use of this presentation. This presentation may contain projections or other forward-looking statements related to Bangkok Bank that involve risks and uncertainties. Readers are cautioned that these statements are only projections and may differ materially from actual future results or events. All forward-looking statements are based on information available to Bangkok Bank on the date of its posting and Bangkok Bank assumes no obligation to update such statements unless otherwise required by applicable law. This presentation does not constitute an offer or invitation to subscribe for, or purchase, any shares of Bangkok Bank. 40