Bank of Ayudhya PCL. March A member of MUFG, a global financial group

Transcription

1 Bank of Ayudhya PCL March 2018 A member of MUFG, a global financial group

2 Who we are Key Financials & Development Highlights Medium Term Business Plan

3 Krungsri Group Overview Officially established in 1945 Shareholding Structure (as of 15 March 2018) 2007: BAY and GE become strategic partners 2008: Acquisition of GE Capital Auto Lease, subsequently renamed to Krungsri Auto 2009: Acquisition of AIG Retail Bank Pcl. and AIG Card (Thailand) Co., Ltd. 2009: Acquisition of Ngern Tid Lor Co., Ltd., a micro finance business from AIG 2009: Acquisition of GE Money Thailand, a consumer finance company 2012: Acquisition of HSBC Thailand s retail banking businesses Dec 2013: BTMU replaced GE as the strategic shareholder of Krungsri BTMU 76.88% Ratanarak Group & Others 23.12% Jan 2015: Integration of BTMU Bangkok Branch into Krungsri Sep 2016: Acquisition of Hattha Kaksekar Limited (HKL) Mar 2017: Established Krungsri Finnovate Company Limited Sep 2017: Recognized as A Domestic Systemically Important Bank (D SIB) by the Bank of Thailand 3

4 Who we are: Our History of Growth Acquisitions & Organic Growth Total Asset Size (Dec 2007) THB Bn Feb 2008 Apr 2009 Nov 2009 Acquired GE Auto THB USD$2.6Bn Bn Acquired AIG Retail Bank and AIG Card (Thailand) USD$0.7Bn THB Bn Acquired GE Money(Thailand) THB USD$1.9Bn Q Acquired HSBC (Retail Portfolio in Thailand) USD$440MM THB Bn Sep 2016 Acquired Hattha Kaksekar Limited THB 2.00 Bn Jan 2007 Sep 2009 Krungsri & GE JV Acquired Ngern Tid Lor USD$64.9MM THB 2.00 Bn Dec 2013 BTMU New strategic shareholder Jan 2015 Integration of BTMU Bangkok Branch Mar 2017 Established Krungsri Finnovate Company Limited Total Asset Size (Mar 2018) THB 2.2 Trillion BTMU 72.0% Ratanarak Group 25.0% Free Float 3.0% BTMU 76.88% Ratanarak Group & Others 23.12% 4

5 Fact about Krungsri: Thailand s 5th largest universal bank with leadership position in consumer finance & Japanese Corporate market Unique & Strong Krungsri 5 th largest universal bank in Thailand Strong leadership position in consumer finance Global product offering capabilities One of the world s largest comprehensive financial group Most extensive overseas network with over 2,000 offices in more than 50 countries The combination of Krungsri s new found global capabilities and network as part of the MUFG family, giving us unique strength and enhanced competitiveness. 5

6 Our Position: Fifth largest financial group in Thailand Japanese Corporate Personal Loan 3.8 million accounts 30% market share Credit Card 3.4 million CIFs 1/ 17% market share Global Ranking 1,259 Forbes The Global 2000 Sales, Profits, Assets and Market Capitalization SET Ranking 13 THB bn 2/ Market Capitalization Thai Banks Ranking Commercial 5 Banks by Assets, Deposits and Loans 1 Credit Ratings Highest rating (A ) among top banks in Thailand by Fitch Ratings 2 Auto (HP) # 1 in used car financing * 26% market share 1/ CIFs: Card in Force International Ratings Standard & Poor s Issuer Credit Rating 2/ Stock Exchange of Thailand (30 March 2018) Moody s Long Term Bank Deposit Fitch Ratings Issuer Default Rating Krungsri BBB+ Baa1 A Thailand BBB+ Baa1 BBB+ 6

7 Our Strong and Broad Franchise ATMs Domestic Branches Overseas Branches Exclusive Banking & Business Center 6, Branches + 1 Rep Office... First Choice Microfinance Krungsri Auto EDC Branches ,448 Dealers 37 Auto Business Branches Overseas 173 Branches 663 Banking Branches Domestic 648 Branches 10,400 Dealers 84,

8 Krungsri Group Companies Credit Card, Personal Loan & Sale Finance Krungsriayudhya Card Co., Ltd (KCC) 99.99% Ayudhya Capital Services Co., Ltd. (AYCAP) 99.99% Tesco Card Services Ltd. (TCS) 50.00% General Card Services Ltd. (GCS) 99.99% Auto Hire Purchase and Leasing Ayudhya Capital Auto Lease Plc. (AYCAL) 99.99% Krungsri Leasing Services Co., Ltd (KLS) 90.00% Investment Management Krungsri Asset Management Co., Ltd. (KSAM) 76.59% Factoring Krungsri Factoring Co., Ltd. (KSF) 99.99% Securities Krungsri Securities Plc. (KSS) 99.74% Collection Services Total Services Solutions Plc. (TSS) 99.99% Support Business Siam Realty and Services Co., Ltd. (SRS) 99.99% Microfinance Ngern Tid Lor Co., Ltd. (NTL) 99.99% Hattha Kaksekar Limited (HKL) % Life Insurance Krungsri Life Assurance Broker Ltd. (KLAB) % Tesco Life Assurance Broker Ltd. (TLAB) 50.00% Leasing Ayudhya Development Leasing Co., Ltd. (ADLC) 99.99% Non life Insurance Krungsri General Insurance Broker Ltd. (KGIB) % Tesco General Insurance Broker Ltd. (TGIB) 50.00% Asset Management Krungsri Ayudhya AMC Ltd. (KAMC) 99.99% Venture Capital Krungsri Finnovate Co., Ltd. (KFin) 99.99% Krungsri full fledged Universal Bank 8

9 Krungsri: Credit Ratings International Ratings Fitch Ratings Moody s Standard & Poor s Krungsri Foreign currency Foreign Long Term Issuer Credit Rating Outlook Outlook Outlook Long Term Deposit Long Term A Stable Baa1 Stable BBB+ Stable National Ratings Fitch Ratings (Thailand) Tris Rating Long Term Outlook Company Rating Outlook Krungsri AAA (tha) Stable AAA Stable Krungsri Auto /1 na na AA Stable Krungsri Card /2 na na AAA Stable Ngern Tid Lor na na A Stable /1 Ayudhya Capital Auto Lease Plc. (AYCAL) /2 Krungsriayudhya Card Co., Ltd. (KCC) 9

10 What guides us: Mission, Vision and Values Krungsri MISSION To be a leading regional financial institution with global reach, committed responsibly to meeting the needs of our customers and serving society through sustainable growth. Krungsri VISION Highly qualified team of professionals providing innovative products and services, dedicated to becoming our customers number one preferred financial group. Krungsri VALUES Customer Centricity Integrity Team Spirit Passion for Excellence Embracing Changes Global Awareness 10

11 What guides us: Sustainability is a founding concept of our mission In our pursuit of being a responsible financial service provider, we established a guideline of action for achieving sustainability development in the following 3 dimensions: Economic Aligning business strategies with the economic outlook Maintaining a well balanced portfolio while serving as our customers trusted business partner and financial advisor. A true financial solution provider for customers. Social Improving financial access and enhancing financial literacy among Thai people Engaging Krungsri Staff in valued community development initiatives and CSR practices. A responsible corporate citizen. Environment Taking care to minimize the negative impact on our environment through implementation of green initiatives within our business and through our prudent support of customers growth initiatives. We place great emphasis on various green initiatives 11

12 Our Philosophy Our Corporate Governance: Adherence to best corporate governance practices Employees Supervisory Authority Shareholders Customers Board of Directors Management Staff Shareholders Investors Commercial banks or Other financial institutions Business partners/creditors Society and country Our People: The key driving force of Krungsri Our Products: Developing & delivering financial solutions that best match with the need of customers. 12

13 Krungsri Group Profile International Ratings Fitch Ratings Standard & Poor s Moody s A BBB+ Baa1 Leadership Position Consumer As of February 2018 In consumer finance Market % Share Position Personal Loan 1 30% National Ratings Fitch Ratings AAA (tha) TRIS Rating AAA Credit Card 1 17% Auto (HP) 2 26% SME 5 5% Corporate 5 12% As of March 2018 Extensive Franchise: 35,713 Service Outlets Number As of March 2018 Domestic Branches 700 * First Choice Branches Number 152 Branches Overseas Branches 2 + Dealers + 22,448 Dealers Representative Office 1 Krungsri Auto Dealers > + 10,400 Dealers ATMs 6,566 Microfinance Branches 648 Exchange Booths 86 Microfinance Overseas Branches (HKL) 173 Krungsri Exclusive 40 Thai Post Offices > + 1,000 Krungsri Business Centers 63 EDC Machines 84,646 * Krungsri Domestic Branches = 700 Branch, of which 663 are Banking Branches and 37 are Auto Business Branches 13

14 Who we are Key Financials & Development Highlights Medium Term Business Plan

15 1Q 2018 Key Financial Highlights Loan Growth +1.5% QoQ Deposit Growth +3.8% QoQ CASA Consolidated (Baht Billion) 1, , , ,369.4 NIM 2017 Mar Mar 18 Non interest Income Growth +2.6% QoQ Cost to Income Ratio NPL Ratio % 46.1% Coverage Ratio 4Q/17 1Q/18 4Q/17 1Q/18 15

16 Loans by Segments Consolidated (Baht Billion) Corporate Loan SME Loan Retail Loan +0.2% +2.8% +2.1% Thai Corporate 2017 Mar Mar 2018 THB 1,573.1 bn. THB 1,550.4 bn. 28% 11% 14% Retail 47% JPC/MNC SME Thai Corporate 27% 11% 15% Retail 47% 2017 Mar 18 JPC/MNC SME 2017 Mar 18 Retail Auto HP 22% Mortgage 14% Credit Card & 11% Personal Loans 16

17 The Summary of Key Financial Performance Consolidated 1Q/17 4Q/17 1Q/ Targets Loan Growth (Net) * Net Fees Income + Non Interest and Non Fees Income 16.8 bn 1.2% bn +3.6% bn +1.5% 6 8% NPLs Ratio 2.33% 2.05% 1.96% < 2.5% Loan Mix : Retail 45% 47% 47% 50% NIM 3.82% 3.81% 3.67% % Non interest income growth* (YoY) 8.3% 17.3% 15.5% ~ 5.0% Cost to Income Ratio 48.8% 49.7% 46.1% < 50% Provisions 151 bps 157 bps 169 bps bps ~ Loan Loss Coverage Ratio 143% 148% 157% ~ 140% 17

18 5 years Financial Highlights 18

19 Thailand Economic Outlook 2018 Outlook: Another year of above trend growth 2018 Key Economic Forecasts % YoY growth unless otherwise stated 2016A 2017A 2018F* GDP Private Consumption Private Investment Exports (in USD term) Headline Inflation Policy Interest Rate (%, end of period) Note: * 2018 forecast by Krungsri Research Key drivers are still buoyant export growth, robust tourism sector, improving business investment, broader consumption recovery and government s economic measures Government is shifting towards more targeted measures instead of broad based fiscal fillip. Policy aids focus on farmers, low income earners and SMEs who have yet to benefit from the recent recovery. Infrastructure and EEC projects also speed up. Policy interest rate is likely to increase in 4Q18 when inflation rises to reach targets and economic growth becomes more broad based Tailwinds Global cyclical recovery Infrastructure and EEC projects Stronger confidence with clearer timeframe of general election Waning first car debt burden, measures to help low income earners Resilient tourism sector Sound economic fundamentals Headwinds Domestic political uncertainty US policy uncertainties and China s economic slowdown High global risks and volatile financial markets Labor shortage and some impact from new foreign labor law High household debt Structural problems e.g. lack of competitiveness in some sectors Source: Krungsri Research 19

20 Recent Economic Development A recovery of economic activity continues and becomes broader based Consumer spending and private investment gain growth momentum Pro cyclical government spending continues to buoy economic recovery Exports surprisingly expand across the board in both key markets and products amid strengthening external demand Foreign tourist arrivals hit a record high in the first 2 months of 2018 GDP: expect to grow further in 1Q18 % YoY 1Q18F = 3.9% Q14 3Q 1Q15 3Q 1Q16 3Q 1Q17 3Q 1Q18F Domestic demand: consumption grows and investment picks up Exports: surprised growth amid rising global demand and higher prices Tourism: robust growth, led by China Consumption (% YoY) Private consumption index Private investment index Investment (% YoY) 1Q14 2Q 3Q 4Q 1Q15 2Q 3Q 3Q 1Q16 2Q 3Q 4Q 1Q17 2Q 3Q 4Q Jan Feb % YoY Q14 2Q 3Q 4Q 1Q15 2Q 3Q 4Q 1Q16 2Q 3Q 4Q 1Q17 2Q 3Q 4Q Jan Feb 18 Million Persons Foreign tourist arrivals % 10 % YoY Q14 2Q 3Q 4Q 1Q15 2Q 3Q 4Q 1Q16 2Q 3Q 4Q 1Q17 2Q 3Q 4Q Jan Feb Source: BOT, Department of Tourism, Krungsri Research 20

21 Who we are Key Financials & Development Highlights Medium Term Business Plan

22 Thailand s Economic Outlook Cyclical recovery for the Global Economy Thai economy will grow above its 10 year average level Normalizing interest rate policy Key Indicators of Thai Economy (by Krungsri Research) (YoY Growth %) GDP Policy Rate (%, year-end) Inflation : Accelerating infrastructure investment and more spending ahead of election 2019: Clearer economic policy amid peaceful political transition to raise confidence 2020: Completion of several infrastructure projects and EEC development to help enhance growth potential 22

23 MTBP Core Strategies Our ASPIRATION: To be a Top Tier Financial Group in Thailand Key Theme Lead by Innovation. Think Digital First Enhance Customer Experience to become a Main Bank Enhance Retail & Commercial Banking Platform, and achieve Sustainable Growth Key Measures Size: Selectively Grow Profitability: Improve Productivity & Efficiency Recognition: Top Tier Financial Group by Stakeholders 1 Enhance Customer Experience towards Customer Engagement All 2 Upgrade Advisory Capabilities & Service Quality of Retail Banking Retail & Consumer Banking Core Strategies Grow SME Banking through Digital & Innovation Capabilities Execute Commercial Banking Transformation Strengthen Product Capabilities to offer Financial Solutions Expand Collaboration within Krungsri and Synergy with MUFG & Strategic Partners Enhance Business Competitiveness through HR Platform 4 5 Improve Productivity and Efficiency Accelerate Digital and Innovation Execution SME Banking Corporate Banking Products & Services Strategy 2 Build Robust and Smart Technology to Digitize Business & Operations Management Platform Strategy 3 Ensure Safety and Soundness 23

24 Think Digital First : Digital Transformation INNOVATION CULTURE SERVICE FINTECH COLLABORATION Krungsri DIGITAL Transformation MARKETING ACQUISITION Increase Productivity & Efficiency Improve Customer Experience 24

25 Think Digital First : Execution Roadmap Stage 1: Improve Improvements based on existing business models and processes Stage 2: Reform Reforms via changes in business models and processes Stage 3: Disrupt Disruptive innovation employing unconventional thinking Branch Automation Future Digital Branch Channels Krungsri Mobile App Social Media [FB/ LINE] Mobile First (APIs) Social Media 4.0 Chatbot Virtual Assistant Creating seeds of new businesses for the next generation... Value Processes Infrastructure/ Culture Big Data, AI, Machine Learning Capability Digital Marketing Platform Design Thinking & UX / UI Robo Advisor Wealth Management Platform Robotic Process Automation (RPA) Digital Lending Platform Digital Lending with Digital ID QR Payment Ripple Service Automation by AI Data Scientist Capability Big Data & Machine Learning Supply chain Financing Platform Cloud Smart APIs Big Data & Machine Learning Reform Corporate Culture Krungsri Ignite Digital Banking Platform Krungsri Data Company (Fully Leverage AI) Krungsri FinTech Platform (Connect FinTech to Krungsri) Block Chain Banking (Future IT Architecture) Krungsri Finnovate 25

26 Think Digital First : How to Accelerate the Change Digital & Innovation Culture Management Lead the Way Expand Digital Resources Data Capability (Big Data, Data Scientist) Introduce Digital Knowledge (Agile, Scrum, UX/UI) Build Digital Platform (Smart APIs) 26

27 Enhance Customer Experience to Become a Main Bank Customer Centricity Transformation Journey Cultivate Customer Centric Organization Customer Journey Design Customer Experience Governance Omni Channel Experience Platform Customer Centric Culture CUSTOMER CENTRICITY TRANSFORMATION JOURNEY Become Customer Centric Organization Customer Segmentation Collaboration in Front Line KPI Alignment Customer Experience Establishment Customer Centric Culture Building 27

28 Enhance Customer Experience to Become a Main Bank 1. Design Customer Journey Design and delivery customer journey experience. Agile delivery of digital products 3. Omni Channel Experience Platform Digital Branch New branch model Bank wide CRM platform across all customer touch point online and offline Superb Customer Experience 2. Customer Experience Governance Standard operating model. Customer experience dashboard and governance Customer Behavior, trend Analysis 4. Cultivate Customer Centric Culture Customer centric culture Right mindsets and skillsets to deliver superb customer experience 28

29 Enhance Commercial & Retail Banking Platform Commercial Banking : Productivity & Efficiency 1. Optimal Structure Realignment KPI realignment Reorganize structure of Investment Banking (IB) and Transaction Banking (TB) to better service wholesale banking 2. Enhance Process to improve customer experience Redesign and implement End to End process (both pre and post approval) to improve turn around time Redesign work process with dedicated legal team to support Corporate Investment Banking customers Retail Banking : Improve Service, Productivity, and Customer Experience Through: 1. Future banking model 2. Staff capability enhancement & hospitality service 3. Improve products/service, productivity and customer experience 29

30 Strategic Direction Aspiration Direction of Strategies JPC/MNC Banking Market position Enhance No. 1 position in Japanese corporate market and be the most preferred bank for MNC s customers Continue to promote shifts from traditional loan based businesses to transactional banking with deposit/fx focus and investment banking Increase focus on leveraging JPC s strong customer base to bring in business to other segments Corporate & Investment Banking SME Banking Market position Market position A total solution provider and main operating bank of our key clients & a trusted banking partner for Corporate & Investment Banking (CIB) clients. Main Operating Bank for SME CIB Shift from Asset Driven Strategy to Solution and Fee based business. Rebalance Portfolio focusing on Sustainability and Profitability. SME Continue growing assets with focus on working capital solutions through digital and innovation capabilities. Assure upgrading relationship to win Non interest income and low cost deposit Common Enhance products and operations to arm the RMs with competitive weapons, and Improve Customer Facing Time. Train RMs to be a solution provider 30

31 Strategic Direction Aspiration Direction of Strategies Retail Banking Market position To be a customer s top of mind in HWN, and Business Banking Retail Banking Build Value Proposition with focus on Service Quality and Speed, to attract, retain, and upgrade customers Consumer Finance Market position To Maintain Leading Position in Auto & Consumer Finance for Customer, Employee, and Society Consumer Finance Lead the market and enhance #1 Position Common Enhancing Customer Experiences through Digital Process/Platform and Innovative Products 31

32 Regional Expansion Key Strategies Alignment of coverage segment between Krungsri and BTMU Except for Laos, Krungsri focusses on expansion opportunities in auto, consumer and microfinance spaces and leverage BTMU network in corporate segments for Mekong strategies. Conduct feasibility study and seeking investment opportunities. Myanmar: BTMU: Yangon Branch Krungsri : Representative Office Laos Krungsri to lead the coverage of both bank and non bank segments Focus: Auto, consumer and microfinance Myanmar & Cambodia Use BTMU platform for corporate segment Retail and SME are open space for further assessment Focus: Auto/Consumer Finance and MFI Vietnam Collaborating with VietinBank Explore opportunity Focus: Auto, consumer and microfinance fields Cambodia: Acquired Hattha Kaksekar Co., Ltd. (HKL), a leading microfinance provider in Cambodia. 32

33 Krungsri s Future Top Tier Financial Group in Thailand 33

34 This presentation has been prepared by Bank of Ayudhya Public Company Limited (the Bank ) solely for informational purposes. It does not constitute an offer or sale or a solicitation of an offer to purchase securities, nor does it constitute a prospectus within the meaning of the Securities and Exchange Act B.E of Thailand. Neither this presentation nor any part of it shall form the basis of, or be relied on in connection with, or act as an inducement to enter into, any contract or commitment whatsoever. No person should rely on the information contained in this presentation in making an investment decision in respect of any of the Bank s securities. Any decision to purchase or subscribe for any securities of the Bank must be made on the basis of a thorough review of publicly available information of the Bank, including information made publicly available by the Bank pursuant to the requirements of the Securities Exchange of Thailand and the Thai Securities Exchange Commission. The information contained herein is only accurate as of its date. Contact Investor Relations Department : Telephone : (662) Fax : (662) E mail : irgroup@krungsri.com Krungsri Website :