K-IRQ: 4Q17 Page1. From CIRO. Dear KBank investors and analysts,

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1 Page1 Fourth Quarter 2017 At a glance KBank Interest rates Deposits (%) Effective Date Savings Mar 14 Fixed-3m Jan 18 Fixed-6m Vol.2 No Jan 18 Fixed-12m Jan 18 Fixed-24m Jan 18 Fixed-36m Jan 18 Lending (%) Effective Date MLR May 17 MOR May 17 MRR May 17 Max rate MRR May 17 Note: Interest rates above are for domestic retail customers KBank NPL gross Bank Consol Bt bn % Bt bn % 4Q Q Q Q Q17* n.a. n.a Note: * In 4Q17, KBank NPL net stood at 1.85% on the consolidated basis. NPL net is NPL after allowance for doubtful account of NPL. Industry (19 Thai banks) Nov 17 (Bt bn) Chg(%) Bank only YoY MoM Loans 11, Assets 16, Deposits 12, Equity 2, NPL gross 426 NPL gross% 3.1 NPL net 199 NPL net % 1.5 LDR (%) 97.2 Source: Bank of Thailand KBank Price Performance Close 07/02/18 SET Index 1, Bank Sector Index KBANK/L (Bt) Months (% chg) Months (% chg) Year (% chg) KBANK/F (Bt) Months (% chg) Months (% chg) Year (% chg) KBank Mkt. Cap. (Bt bn) 543 Note: Outstanding shares = 2,393,260,193 Source: KBank KBank Price Performance (4Q17) From CIRO Dear KBank investors and analysts, KBank reported 2017 net profits of Bt34,338mn, decreasing 14.53% YoY, due mainly to higher provision expenses. However, operating profit before provision expense and income tax expense increased 1.05% YoY. Loans grew moderately at 6.20% YTD from all businesses NIM stood at 3.44%, dropping from 3.52% in 2016 in line with interest rate trend. Non-interest income in 2017 decreased 1.62% YoY, due mostly to a decrease in net premiums earned (net), while net fees and service income rose 6.07% YoY. Asset quality remained manageable, with stable NPL ratio at 3.30% in 2017, in line with the target range of % Credit cost was at 239bps, rising YoY from 204bps in Credit cost was peak in 2017 and will be up to 185bps in Cost to income ratio in 2017 was at 42.31%, increasing from 41.63% in The Bank continued to focus on cost management under pressure from income slowdown. Capital Adequacy Ratio (CAR) in 2017, according to the Basel III Accord, stood at 17.96% with a Tier 1 capital ratio of 15.66%, remaining sufficient to support business growth and maintaining an adequate Tier 1 ratio as required under Basel III. KBank s 2018 financial targets are maintained as follows: % loan growth, sensible and in line with economic growth, depending on the success of government measures 2. NIM will be in the range of %, due to stronger loan growth in corporate lending and change in deposit term for longer maturity in line with interest rate trend 3. Flat non-interest income growth, from slow growth in the insurance business and modest growth from fee-driven businesses, reflecting a high base effect and uncertainty factors, e.g. National e-payment 4. Mid-40s cost to income ratio, focusing on cost management under pressure from an income slowdown and investment in digital 5. Prudent credit cost at up to 185bps; credit cost peaked in Stabilized NPL ratio, moving in a narrow range of % On the macro picture, projected base case for 2018 GDP growth is revised up to 4.0% (range %) from 3.7% (range %). The GDP growth will be driven by public and private investment. Improvement in private investment is expected from a crowding in effect of public infrastructure investment. Meanwhile, exports and tourism will continue to grow, but at a slower pace, due to a large base effect in Within this context, KBank has accentuated enhancement of our business capabilities to achieve sustainable growth and maintain our market leadership over the long term. Guided by our core strategies of Customer Centricity", KBank has decided to redefine our aspiration to become Customers Life Platform of Choice, meaning the most-preferred platform that can meet customers needs in every aspect of their lives by leveraging our strengths as Thailand s number-one digital banking provider and enhancing our services under three strategies: (1) Beyond Banking; (2) Embedded Trust; and, (3) Everyone, Every day, Every way, Everywhere. To this end, we have set our sights on providing all customers with services beyond their expectations to become their trust agent and stay relevant to their daily lives, fulfilling their everyday needs, anywhere, anytime, with an unsurpassed service experience. We hope you find this publication useful and insightful. Please feel free to contact the KBank IR team directly with any inquiries you may have. Comments and suggestions are always welcome. Best regards, Adit Laixuthai, Ph.D. Senior Executive Vice President and Corporate Secretary KBank IR Consensus Survey From January 5-12, 2018, the Investor Relations Unit collected information from local and foreign analysts to document their opinions, recommendations, and earnings estimates for KBank, and to get their general views on the Thai banking industry. Thirty analysts, from 41 brokerage firms that currently cover KBank shares, responded to the survey. The results are shown below. No. of analysts 4Q17 Earnings Forecasts N = 30 Mean = Bt8.6bn SD = Bt1.59bn Bt bn Source: Bloomberg Note: KBank s 4Q17 actual profit was Bt5,707mn, on the consolidated basis 1

2 Page2 Bank Financial Summary (Consolidated) 4Q17 Balance Sheet 4Q17 3Q17 QoQ 4Q16 YoY (Bt mn) (Bt mn) %Chg (Bt mn) %Chg Cash 67,825 56, , Interbank & Money Market Items 426, ,086 (6.2) 349, Claims on security 0 0 n.a. 0 n.a. Derivatives assets 27,244 25, ,765 (14.2) Investments 536, , ,379 (17.5) Loans* 1,802,783 1,752, ,697, Accrued interest receivables (AIR) 3,391 3,428 (1.1) 3,492 (2.9) Total Reserves 103,434 96, , Loans & AIR - net 1,702,740 1,658, ,615, Properties foreclosed 17,444 17, , Premises & equipment 50,137 49, , Intangible assets 24,589 24, , Deferred tax assets 5,033 4, , Other assets 40,203 37, , Total Assets 2,900,841 2,863, ,845, Deposits 1,878,672 1,844, ,794, Interbank & Money Market items 90, ,478 (16.5) 179,898 (49.7) Derivatives liabilities 25,401 24, ,630 (19.7) Debt issued and borrowings 70,575 71,205 (0.9) 96,376 (26.8) Provisions 25,400 23, , Deferred tax liabilities 1,906 2, , Life policy reserve 363, , , Other liabilities 57,013 59,236 (3.8) 59, Total Liabilities 2,513,018 2,483, ,491, Fully paid-up share capital 23,933 23, , Premium on common share 18,103 18, , Other reserves 22,273 21, , Retained earnings 284, , , Total Shareholders' Equity 387, , , Owners of the Bank 348, , , Non-controlling interest 39,197 37, , Liab & Shareholders' Equity 2,900,841 2,863, ,845, Income Statement 4Q17 3Q17 QoQ 4Q16 YoY (Bt mn) (Bt mn) %Chg (Bt mn) %Chg Net interest income 24,020 23, , Net Fee and service income 10,364 10,642 (2.6) 9, Other income 27,349 24, ,397 (0.2) Underwriting expenses 22,937 18, , Net operating income 38,796 40,145 (3.4) 38, Total other operating expenses 18,959 16, , Provision expenses 11,646 10, , Profit before income tax 8,191 13,402 (38.9) 13,680 (40.1) Income tax expense 1,275 2,581 (50.6) 2,342 (45.5) Net profit attributable to: - Owners of the Bank 5,707 9,473 (39.8) 10,244 (44.3) - Non-controlling interest 1,208 1,348 (10.4) 1, EPS (39.8) 4.28 (44.3) Other income 4Q17 3Q17 QoQ 4Q16 YoY (Bt mn (Bt mn) %Chg (Bt mn) %Chg Gain (loss) on trading and foreign exchange transactions 2,326 1, ,625 (11.4) Gains (loss) on financial liabilities designated at fair value through profit or loss 0 (2) (78.3) (6) (92.1) Gain (loss) on investments 494 2,176 (77.3) Share of profit from investment using equity method (18.3) Dividend income (41.6) Net premiums earned 23,843 19, , Other operating income (57.3) Total other income 27,349 24, ,397 (0.2) Total other operating expenses 4Q17 3Q17 QoQ 4Q16 YoY (Bt mn) (Bt mn) %Chg (Bt mn) %Chg Employee's expenses 8,115 8,239 (1.5) 7, Directors' remuneration (26.1) 17 (4.5) Premises and equipment expenses 3,493 3, ,509 (0.5) Taxes and duties 1,203 1, , Others 6,132 3, , Total other operating expenses 18,959 16, , Notes: * Loans = Loans to customers less deferred revenue Performance (%) 4Q17 3Q17 2Q17 1Q17 4Q16 ROA ROE Interest spread NIM Cost-to-Income Ratio Notes: 1) ROA, ROE and NIM are calculated using QoQ averages of total assets, total shareholders equities and total earning assets, respectively, as denominators Asset Quality & CAR (%) Asset Quality (%) 4Q17 3Q17 2Q17 1Q17 4Q16 Total reserve / Loans Total reserve / NPL gross CAR (%)* Tier I > Common Equity Tier I Tier II CAR Note: *Capital Adequacy Ratio (CAR) has been reported in accordance with Basel III Capital Requirement from 1 January 2013 onwards. CAR is based on KASIKORNBANK FINANCIAL CONGLOMERATE. Deposit Structure (%) 4Q17 3Q17 2Q17 1Q17 4Q16 Current Savings Fixed 3-5 months Fixed 6-11 months Fixed 12 months and upward Total Loan Structure (%) 4Q17 3Q17 2Q17 1Q17 4Q16 Corporate Loans SME Loans Retail Loans Other Loans Total Q17 Performance: KBank recorded a 4Q17 net profit of Bt5,707mn, decreasing 39.75% QoQ and 44.29% YoY. Net interest income increased by 1.31% QoQ, resulting in an NIM of 3.49% in 4Q17. Loans grew 6.20% YTD, from all three businesses. 4Q17 non-interest income dropped by 10.10% QoQ, mainly due to revenue from capital market products. Other operating expenses in 4Q17 increased 16.04% QoQ, resulting in a cost to income ratio at 48.87% in 4Q17. KASIKORNBANK FINANCIAL CONGLOMERATE s CAR, according to Basel III, was 17.96% with a Tier 1 ratio of 15.66%. NPL Movement: NPL ratio was stable at 3.30% in 4Q17. NPL ratio will stabilize and move within a narrow range in Asset quality remained manageable. 4Q17 credit cost increased QoQ to 262bps, remaining prudent and aligned with the macro environment and credit cycle credit cost stood at 239bps. 4Q17 coverage ratio was %. 2

3 Page3 4Q17 Performance Based on Consolidated Financial Statements Interest Income Interest income increased 1.09% QoQ, and 2.54% YoY. Interest income from interbank and money market items was Bt2,054mn, increasing Bt206mn or 11.18% QoQ, mainly due to an increase in average volume of REPO. Interest income from loans to customers was Bt22,742mn, increasing Bt80mn or 0.35% QoQ, due to an increase in average volume of loans. Interest Expenses Interest expenses increased 0.27% QoQ, but decreased 4.07% YoY. Interest expenses from customer deposits were Bt2,970mn, decreasing Bt24mn or 0.80% QoQ. Non-interest Income Non-interest income decreased 10.10% QoQ, and 2.49% YoY. Net insurance premiums (net premiums earned net) were Bt906mn, decreasing Bt188mn or 17.14% QoQ, in line with the pace of the economy and outgrown underwriting expenses. Fees and service income (net) was Bt10,364mn, decreasing Bt278mn or 2.62% QoQ, mainly due to loans-related fee income and fees from acceptance, aval and guarantee, while fees from fund management increased Other income was Bt3,506mn, decreasing Bt1,193mn or 25.39% QoQ, mainly due to revenue from capital market products. Total Other Operating Expenses Total other operating expenses increased 16.04% QoQ, mainly due to an increase in premises and equipment expenses and marketing expense due to seasonality. Employees expenses were Bt8,115mn, decreasing Bt124mn or 1.50% QoQ. Premises and equipment expenses were Bt3,493mn, rising Bt478mn or 15.83% QoQ. Others was Bt6,132mn, increasing Bt2,198mn or 55.87% QoQ due to seasonally rise of marketing expenses. Impairment Loss on Loans and Debt Securities (Provision) Provisioning expenses increased 11.93% QoQ. Provisioning expenses were Bt11,646mn, increasing Bt1,241mn or 11.93% QoQ. Credit cost increased from 238bps in 3Q17 to 262bps in 4Q17, prudent and aligned with the macro environment and credit cycle; 2017 credit cost was 239bps. Coverage ratio increased from % in 3Q17 to % in 4Q17. Capital Funds Capital Adequacy Ratio (CAR): KBank is reporting the capital ratio in accordance with the Basel III Capital Requirement since 2013; the Bank s capital adequacy remains sufficient to support business growth. Capital Adequacy Ratio (CAR): as of 4Q17, KASIKORNBANK FINANCIAL CONGLOMERATE s CAR was at 17.96%, with a Tier 1 ratio of 15.66%. Summary: KBank s net profits for 4Q17 totaled Bt5,707mn, decreasing 39.75% QoQ and 44.29% YoY. NIM slightly increased QoQ to 3.49% in 4Q17, remaining top among four large Thai banks. Non-interest income decreased 10.10% QoQ and 2.49% YoY; net fees and service income decreased 2.62% QoQ but increased 4.81% YoY. Loans grew 6.20% YTD, from all three businesses. Total other operating expenses increased 16.04% QoQ, mainly due to an increase in premises and equipment expenses and marketing expense due to seasonality. Cost to income ratio rose QoQ from 40.70% in 3Q17 to 48.87% in 4Q17. NPL ratio was stable at 3.30% in 4Q17; NPL ratio will stabilize and move in a narrow range in Capital remains sufficient to support business growth, with CAR at 17.96% and a Tier 1 ratio of 15.66%. 3

4 Page4 Hot Stuffs 2018 Financial Targets Source: KBank 2018 Financial Targets Consolidated 2017 Actual 2017 Targets 2018 Targets Notes ROE 10.24% N/A N/A ROA 1.20% N/A N/A NIM 3.44% % % Loan Growth 6.20% YTD 4-6% 5-7% Stronger loan growth in corporate lending and change in deposit term for longer maturity in line with interest rate trend (Page 16) Sensible loan growth in line with economic growth; depending on success of government measures (Page 8 and 63-65) Non-Interest Income Growth* -1.62% YoY Up to 5% Flat Slow growth in insurance businesses; modest growth from feedriven businesses, reflecting on large base effect and uncertainty factors, e.g. national e-payment (Page 9 and 56-61) Non-Interest Income Ratio 39.97% About 40% About 40% Cost to Income Ratio** 42.31% Mid-40s Mid-40s Focus on cost management under pressure from income slowdown and investment in digital (Page 17) Credit Cost per year (bps) 239 bps bps Up to 185 bps Credit cost peaked in 2017; maintain prudence onward. NPL ratio stabilize and move within a narrow range in 2018 NPL Ratio (Gross)*** 3.30% % % (Page 10, 47 and 66-67) Note: * Non-Interest Income includes Net Premium Earned - net (Net Premium Earned less Underwriting Expenses) from Muang Thai Life Assurance PCL (MTL); KBank has a 38.25% economic interest in MTL; on the consolidated basis, Bancassurance fees are not included in net fee income, due to the elimination of inter-company transactions (the accounting treatment from the Muang Thai Group Holding consolidation); Non-Interest Income = Total Operating Income net less Interest Income net ** Cost to Income Ratio = Total Other Operating Expenses to Total Operating Income net (Total Operating income less Underwriting Expenses) *** NPL Ratio (Gross) = NPL (gross) to total loans; NPL (gross) used in the calculation are loans to general customers and loans to financial institutions that are non-performing loans; total loans used in the calculation are loans to general customers and loans to financial institutions 7 Composition of Growth: Loans by Business Source: KBank Composition of Growth: Loans by Business Moderate loan growth momentum in line with full-year target Loan Portfolio Structure Loan Portfolio Bt bn Consolidated Amount (Bt bn) Y ,000 1,698 1,803 Dec16 Dec17 Loan Growth Loan Growth Target Yield Range Co rpo rate 1,600 1,439 1,527 1,610 (%YTD) (%) (%) 29% 30% 32% 30% Corporate Loans % 6-8% 3-5% 1,200 31% SME SME Loans % 4-6% 5-7% % 39% 39% 36% 37% Re tail Retail Loans % 5-7% 5-7% 400 Other Loans (11.8%) 27% 27% 26% 25% 24% 6% 6% 6% 6% 5% 0 Others Total Loans 1,698 1, % 5-7% 5.4% Outlook Corporate Loans SME Loans Retail Loans Mainly from long-term loans in real estate and services and short-term loans in industrial agriculture Mainly from both short-term and long-term domestic credits from construction, agriculture, Food & Beverage, Petroleum & Petrochemical Products, and Hotels and Restaurants Growth target from large public/private investment projects; focus on industrial agriculture, renewable energy, and construction Focus on industries related to domestic consumption and tourism Growth target reflects domestic consumption demand, government stimulus measures, and AEC international trade benefits Focus industries: construction, construction materials, tourism and export related Mainly from mortgage loans; selecting high potential customers, Sensible loan growth target in line with industry and serving suitable financial building strong relationships with strategic partners, presenting solutions for customers to maintain lead market position in key products digital channel to approach loans and proactively monitoring loan Focus on potential target customers with acceptable risk; predictive monitoring portfolio quality led to steady growth and strict control of loan portfolio quality Loan Definition (more details on loans can be found in App. page 63-65) Corporate Loans: Loans of KBank and KBank s Subsidiaries in Corporate Segments (annual sales turnover > Bt400mn) SME Loans: Loans of KBank and KBank s Subsidiaries in SME Segments (annual sales turnover Bt400mn) Retail Loans: Loans of KBank and KBank s Subsidiaries in Retail Segments Other Loans: Loans in Enterprise Risk Management Division (NPL + Performing Restructured Loans) and other loan types Note: Since 1Q13, as per the Bank of Thailand s requirement, the Bank has complied with TFRS 8 (Operating Segments) to present operating results for each key segment in financial reports 8 Note: These two slides can also be found on pages 7 and 8 of our latest investor presentation (Investor Presentation as of 4Q17: February 2018), available on our website at: 4

5 Page5 Hot Stuffs The Extended K-Strategy Source: KBank The commercial banking system is encountering many new challenges and business opportunities that will influence KBank s business strategies. Changing consumer behavior is evident in current online lifestyles and financial transactions. People are using mobile banking more than ever. The government policy to promote a cashless society is in alignment with the Thai Bankers Association s five-year strategy to advance digital services and thus reduce cash management costs nationally. This policy has encouraged the development of many new services. Amid rising competition from new service providers and cross-industry businesses, KBank aims to differentiate from its peers by offering impressive service and innovative products that best respond to customer needs, all with swift transactions and trustworthy security. KBank places equal importance on both domestic and regional economic directions, consumer behavior, government policies, and market competition. These factors are assessed to define new strategies that can enhance business operations and adapt to coming changes while sustainably upholding their superiority and relevance to customers lives. In response to the many new challenges, KBank has decided to redefine their business directions. Guided by the Bank s core Customer Centricity strategy, KBank now aspires to be Customers Life Platform of Choice. Built upon the strengths that have made KBank Thailand s number-one digital banking provider, KBank services are based on a three-pronged approach: (1) Beyond Banking; (2) Embedded Trust; and (3) Everyone, Every day, Every way, Everywhere. To this end, the Bank has set its sights on providing all customers with banking services beyond the norm to gain customer trust and meet the needs of all in their everyday lives, anywhere and anytime. With the aim of becoming Customers Life Platform of Choice, KBank carefully scrutinizes analyses of customer behavior to shed light on real needs. Top make KBank services a more integral part of customers daily lives, the Bank is focusing on providing services via the key KBank mobile applications: K PLUS: KBank mobile banking application with the most preferred application in the Thai mobile banking market, with 3,052mn transactions and 7.3mn users in The number of K PLUS subscribers are expected to rise to 10.8mn users in K PLUS SHOP: KBank mobile banking application for merchants accommodating payments using QR codes a first in Thailand. There are 800,000 merchants using K PLUS SHOP with 1.4mn transaction items, totaling Bt1.1bn. The Bank aims to increase the number of participating merchants to 1mn by the end of K PLUS SME: KBank mobile banking application for SMEs: the Bank expected to reach 500,000 users in Shopping on K PLUS: It is the first e-market place in Thailand, where the customers can select a diverse range of goods on K PLUS, including agricultural produce from the Pruanfun project and farmer groups across the country, as well as products from small retailers and SMEs, plus other merchandises from KBank s business partners. Technology is vital to the development of services in this era. KBank is determined to incorporate technologies and innovations into banking services and, as part of KBank s operational guidelines, to remain the digital leader in every area. KBank will thus work closely with KASIKORN BUSINESS-TECHNOLOGY GROUP (KBTG) to develop services focusing on Customer-Centric Technology for a Better Life. Each year, around Bt4-5bn will be spent on IT development. Key initiatives for 2018 include: K PLUS - a Lifestyle Banking Platform: aims to make K+ a lifestyle banking platform that satisfies the needs of all customer segments via an extensive suite of services. Machine Commerce: will employ machine learning technology to analyze and develop services that are in sync with customer behaviors, as well as updating market data on target groups via Mobile Life PLUS on K PLUS. Low-Value Remittances via K PLUS: In 2018, customers will be able to make outward remittances on their own via K+ to over 40 destination countries worldwide. This initiative will open a new dimension in retail offshore transfers. Machine Lending: This service employs machine learning technology to analyze customers spending behavior in order to assess risks and project loan demand. Enterprise Letter of Guarantee on Blockchain: KBank is the first bank in the world to develop this service, the trusted platform to ensure integrity of paperless document, initially to certify document on Letter of Guarantee (L/G), including request, issuing, and notice of expiration. Clearing and Settlement via Blockchain: KBank, in cooperation with IBM, has spearheaded the development of this service to allow businesses worldwide to enter into agreements requiring cross-border funds transfers, with those transactions occurring almost in real time. KBank has steadily established partnerships in the digital ecosystem. Aside from setting up digital partnership work teams within KBank and KBTG, the Bank has also established Beacon Venture Capital Co. Ltd., which is tasked with investing in startups, to seek innovations that are consistent with KBank s strategies and expand our services, with one billion Baht in initial capital. KBank has established operational plans that are more in alignment with all business segments: For Retail business: strive to become Thailand s best customer-driven retail bank with personalized solutions For SME business: focus on being Bank for SME Customers : total solution provider; digital banking and business networking For Corporate Business: aim to be Trusted Bank for Corporate Customers by responding to all their business needs International Business: continue to gear up toward being an AEC+3 Bank via Dual Track Regional Digital Expansion Regional Settlement Hub: introduce Exotic Currency Settlement Initiative service to allow fund transfers between all AEC+3 currency pairs. 5

6 Page6 KASIKORNBANK: What s Up? Corporate, SME, Retail, and World Businesses Highlights Dec 17: KBank was granted a license as a Locally Incorporated Institution (LII) by China s regulatory agency. KBank service will be enhanced to support flourishing trade and investment in China, which is expected to become an even greater economic power over the next decade. Dec 17: KBank and PTT joined hand in creating a digital payment platform, based on the Seamless Digital Lifestyle Experience concept, aimed at steering PTT s retail business toward a full-fledged and integrated business, based on mobile payment, whereby financial technologies will be used to bolster its competitiveness. Dec 17: KBank participated in the opening ceremony of Peep-tival: sharing happiness and smile and invited customers to make donations to purchase medical supplies for Navamindrapobitr 84th Anniversary Building, Siriraj Hospital. Dec 17: KBank introduced THE PASSION credit card based on a Make Life Alive concept to let customers enjoy all activities they are PASSIONate about, without any limit. Ultimate customer experience will be offered and all rules will be broken with superior privileges. Nov 17: KBank has a new Customers Life Platform of Choice aspiration with an IT budget of Bt4-5bn p.a., to totally digitalize services; thus, to maintain their digital banking leadership. Their goal is to offer a single platform that responds best to all customers requirements in their lives. Nov 17: KBank participated in the THE WISDOM Wealth Avenue: Insight into Thailand s Future and Investment Opportunities seminar, which was organized to offer trade and investment outlook during the Thailand 4.0 era at KBank Siam Pic-Ganesha, Siam Square One. Nov 17: KBank launched nationwide K PLUS SHOP service for merchants accepting QR code payment. K PLUS SHOP ( K+ SHOP ) is mobile application in Thailand that supports QR code payment via all Thai banks. Nov 17: KBank introduced a remarkable innovation K PLUS Beacon which is a mobile banking app that began as an international fintech contest entry that won two world-class awards. For the first time in Thailand, this technology will allow visually-impaired persons to conduct mobile transactions. Nov 17: KBank joined hand with AEON Thana Sinsap (Thailand) PCL to promote loan payment via Pay PLUS on ÆON THAI MOBILE" application. The customers' credit limits will be restored immediately after the payment. Awards and Recognition Dec 17: KBank received four awards from The Asset Magazine: Top Bank Arrangers Investors Choices for Corporate Primary Issues, Thailand, Top Bank in the Secondary Market Government Bonds, Thailand, Best Individual Research, Thailand, Top Bank in the Secondary Market Corporate Bonds, Thailand, (Rank3) Nov 17: KBank received the SET Sustainability Awards Outstanding from the SET. Moreover, the Bank has passed the assessment criteria of Thailand Sustainability Investment (THSI) set by the SET. Oct 17: KBank received four awards from Cards & Electronic Payments International journal: Best Merchant Product Offering, Best Merchant Acquiring Technology Solution, Highly Commended, Best Debit Card Product for Asia-Pacific and Highly Commended, Best Marketing Campaign Overall. 6

7 Page7 Economic Summary December 2017 Source: Bank of Thailand Econ: Wrap-up Sep 17 Oct 17 Nov 17 Dec 17 Industrial Capacity Utilization (%) Consumer Price Index: (Headline)(%) Consumer Price Index: (Core) (%) Export (US$mn) 21,873 20,010 21,235 19,918 Export (%chg) Import (US$mn) 16,473 18,386 17,900 18,374 Import (%chg) Trade Balance (US$mn) 5,400 1,624 3,335 1,544 Current Account Balance (US$mn) 6,287 3,535 5,285 3,856 Financial Account (US$mn) -1,480-1,518-1,515-4,023 Balance of Payments (US$mn) 4,578 2,109 2,264-1,176 Interbank Rate (%) Official Reserves (US$bn) Exchange Rate (Baht: US$) Highlights for December 2017 Overall: The Thai economy continued to expand. Exports and tourism sectors gained further traction, consistent with the continued improvement in external demand. The continued expansion in external trade helped boost export-related manufacturing production. Private consumption continued to improve. However, private investment remained at the same level relative to last month, while public spending contracted particularly in capital spending. Manufacturing production: Manufacturing activities expanded as exports improved, especially automotive, rubber products, and petrochemical products. Domestic spending: Private consumption expanded at a slower pace due to decelerated spending in the services sector. Meanwhile, spending on non-durable and semidurable goods contracted, partly from the high base effect from last year s government stimulus measures, particularly the tax deductions for spending on goods and services. Fundamental factors supporting the overall household purchasing power was not yet robust as farm income contracted YoY and non-farm income slightly decreased MoM. Inflation: Headline inflation accelerated to 0.78% from 0.99% in the previous month mainly due to the deceleration of oil prices, as high base effect last year. Trade Balance: Export value totaled USD19.9bn, up by 9.3% YoY. Exports continued to expand in all major export destinations and most product groups. The growth was on the back of (1) continued improvement in external demand for products such as rice, rubber products, telecommunication equipments, electronic parts, and automotive and parts; (2) continued increase in crude oil price contributed to the increase in export of petroleum-related products; and (3) increase in exports from industries which recently expanded their production capacity such as hard disk drives (HDD). Import value totaled USD18.4bn, resulting in a trade surplus of USD1.5bn. The service and transfers account had a surplus of USD2.4bn and the current account recorded a surplus of USD3.9bn. Note: For more information on monthly economic conditions, please visit: Economic Outlook for 2018 Source: KASIKORN RESEARCH CENTER CO., LTD. (December 20, 2017) Operating Environment: Economic Outlook for 2018 % YoY Key GDP Forecasts and Assumptions % YoY F 2018F 2017F* Range 2018F* Base Case GDP Private Consumption Government Consumption Total Investment Public investment Private investment Gov't Budget Deficit (% of GDP) to Exports (Customs Basis) Imports (Customs Basis) Current Account (USD bn) Headline Inflation Policy Interest Rate** Key Points: Projected base case for 2018 GDP growth is revised up to 4.0% (range %) from 3.7% (range %). The GDP growth in 2018 will be driven by public and private investment Improvement to private investment is expected from a crowding in effect of public infrastructure investment Exports and tourism will continue to grow, but at a slower pace from a high base effect Risk Factors: Downward pressure on domestic demand from farm income slowdown and high level of household debt Global fund flow volatility from a divergence of monetary policy in major central banks Geopolitical uncertainties in Korean peninsula and BREXIT repercussions Notes: MPC s policy rate is at 1.50% (as of December 20, 2017) Source: * KResearch (as of December 20, 2017): 2018 GDP growth is revised up to 4.0% from 3.7%; 2017 GDP growth is revised up to 3.9% from 3.7% (the previous forecast was on October 20, 2017) ** KBank Capital Markets Research (as of October 18, 2017) 5 7

8 Page8 DISCLAIMER: This document is intended to provide material information relating to investment or product in discussion and for reference during discussion, presentation or seminar only. It does not represent or constitute an advice, offer, contract, recommendation or solicitation and should not be relied on as such. In preparation of this document, KASIKORNBANK PUBLIC COMPANY LIMITED ( KBank ) has made several crucial assumptions and relied on the financial and other information made available from public sources, and thus KBank assumes no responsibility and makes no representations with respect to accuracy and/or completeness of the information described herein. Before making your own independent decision to invest or enter into transaction, the recipient of the information ( Recipient ) shall review information relating to service or products of KBank including economic and market situation and other factors pertaining to the transaction as posted in KBank s website at URL and in other websites including to review all other information, documents prepared by other institutions and consult financial, legal or tax advisors each time. The Recipient understands and acknowledges that the investment or execution of the transaction may be the transaction with low liquidity and that KBank shall assume no liability for any loss or damage incurred by the Recipient arising out of such investment or execution of the transaction. The Recipient also acknowledges and understands that the information so provided by KBank does not represent the expected yield or consideration to be received by the Recipient arising out of the execution of the transaction. Further the Recipient should be aware that the transaction can be highly risky as the markets are unpredictable and there may be inadequate regulations and safeguards available to the Recipient. KBank reserves the rights to amend either in whole or in part of information so provided herein at any time as it deems fit and the Recipient acknowledges and agrees with such amendment. Where there is any inquiry, the Recipient may seek further information from KBank or in case of making complaint, the Recipient can contact KBank at IR@kasikornbank.com or +(662) to 1, +(662) to 4 Please direct further inquiries or comments to: Investor Relations Tel: to 4, to 1, to 62 Fax: IR@kasikornbank.com 8