LH Financial Group PCL

Transcription

1 LH Financial Group PCL Investor Presentation May 31,

2 LH Financial Group PCL Investor Presentation May 31,

3 SECTION 1 LHFG Profile and Business Overview - 2 -

4 Company Profile ( ) - 3 -

5 Key Milestones - 4 -

6 Strong Capital Position - 5 -

7 LHFG Shareholding Structure & Group Structure - 6 -

8 Board of Directors & Management Team Mr.Anant Asavabhokhin Mr.Rutt Phanijphand Mr.Phairoj Hengsakul Mr.Adul Vinaiphat Mr.Suwit Udomsab Chairman of the Board Member of the Board Chairman of the Audit Committee Member of the Audit Committee Member of the Audit Committee Chairman of the Executive Committee Independent Director Independent Director Independent Director Ms.Sasitorn Phongsathorn Mr.Pairoj Paisonsrisomsuk Mr.Naporn Sunthornchitcharoen Ms.Suwanna Buddhaprasart Member of the Board Member of the Board Member of the Board Member of the Board Member of the Executive Committee Member of the Executive Committee Member of the Executive Committee Managing Director Senior Executive Vice President The two committees will be nominated for the BoD appointment at the Annual Shareholder General Meeting on April 18, 2011

9 Limitations of Retail Bank Hindrance - 8 -

10 SECTION 2 Financial Performance - 9 -

11 Organic Asset Growth

12 Superior Asset Quality

13 Strong Liquidity

14 Branch Networks

15 Productivity per branch above Peers

16 Productivity per head above Peers

17 Strengthening Capital Position

18 Improving Earnings Capability

19 SECTION 3 Investment Highlights

20 Key Investment Highlights Poised to be one of the leading players in the mortgage financing in Thailand Continuing business expansion under the existing retail banking model with synergy initiation Potential growth arising from universal banking platform Competent management team and sponsoring shareholders Proven Track Record & Financial Achievements

21 Leading Mortgage Financing Player Standing at the Forefront of Mortgage Financing Continuing Expansions under Retail Banking Universal Banking- Driven Potential Growth Strong Shareholders Proven Trace Record & Milestones LH Bank has the vision to be one of the leading players in the mortgage financing with the proven track record in the past. Baht billion YoY Growth (%) 1, , Industry-wide Retail Mortgage Loans (Post-financing) Favorable uptrend in the property market condition could be the positive factor for LH Bank mortgage loan expansion LH Bank s Loan Breakdown Baht 42.5 Billion Non- Mortgage 32.5% Mortgage 67.5% 600 1, Retail Mortgage Loans Growth Rate Source: Bank of Thailand Baht billion 25.2 LH Bank Mortgage Loan Portfolio LH Bank mortgage loan portfolio has continuously grown in the past with relatively high growth rate * LH Bank mortgage loans were inclusive of accrued interest Source: LH Bank Financial Statement

22 Cross-Selling Products to Premium Customers Standing at the Forefront of Mortgage Financing Continuing Expansions under Retail Banking Universal Banking- Driven Potential Growth Strong Shareholders Proven Trace Record & Milestones LH Bank could leverage its premium homebuyers as quality customer bases to build up related businesses Quality Housing Loan Customers Procurement of Competitive Source of Funds Expand Lending to SMEs Business Cross-selling Financial Products & Services The premium housing loan customer base and growing number of branches serve as the good infrastructure to secure additional deposit Number of Branches Bangkok & Surrounding Areas Provincial Source: Company Penetrate into existing customer bases to provide them with the lending for their business. The historical payment track record of customers could be utilized to manage credit and business risk. Capitalize the supply chain financing for those who have business relationships with the sponsoring shareholders, implying lower credit risk Offer all-in wealth management services to clients to generate fee base income. Wealth Management Services Mutual Fund Products Bancassurance Fixed Income

23 Potential from Universal Banking Platform Standing at the Forefront of Mortgage Financing Continuing Expansions under Retail Banking Universal Banking- Driven Potential Growth Strong Shareholders Proven Trace Record & Milestones Full-fledged financial license will bring LHB about a particular economic context, where growth opportunity & competency met Strong liquidity and lending capability on the back of enormous capital increase, coupled with potential to raise fee-based income Strike a balance of loan portfolio (Mortgage loans VS other specialized loans i.e. Hire-purchase, SME, and Corporate loans) Diversified loan portfolio tends to reduce concentration risk, which in turn will stabilize the spread earned and tone down NPL issues Existing Scope of Services Potential Growth Retail Banking Full Universal Banking Deposits / Payment / Transfer Single lending limit Corporate loan / account Retail loan / account Corporate <= 10% of equity Retail <= 1% of equity <= 25% of equity Loan / Loan Syndication / Loan Related < THB 200 mm (assets, excluding land cost) < 200 employees Lending to large corporate > THB 200 mm (assets, exc. land cost) > 200 employee Trading securities Bond Trading portfolio Banc Assurance life / non-life insurance Underwriting Investment unit Bond Investment unit: Best effort Bond: SME Investment unit: Firm commitment Bond: unlimited E-Banking Selling Agent Insurance Government bond SBL & Short Sales FOREX and derivatives Hire purchase & Leasing Limited (Retail & SMEs) Selling Agent (Corporate Bond) Limited (Retail & SMEs)

24 Potential Growth from LH Fund Standing at the Forefront of Mortgage Financing Continuing Expansions under Retail Banking Universal Banking- Driven Potential Growth Strong Shareholders Proven Trace Record & Milestones LH Fund is currently in the process of consideration the Securities Business Application Type Kor by SEC, which will allow the company to operate the business as follows; Investment management Mutual fund management Private fund management Investment advisory LH Fund Investment unit selling agent Investment underwriting Investment unit trading

25 Well Supported Shareholders Standing at the Forefront of Mortgage Financing Continuing Expansions under Retail Banking Universal Banking- Driven Potential Growth Strong Shareholders Proven Trace Record & Milestones Strong shareholders play the crucial part in growing LH Bank business The One-presence LHFG Corporate Umbrella Fund Raising above Bt 10,000 million -the most important milestone Application to the BOT within Mar 2011 re: Upgrade to full-fledged commercial bank under the FSMP II Post - IPO Shareholding Structure Top-tier Developer Public Interest HNW Sponsor IPO Investors Institution Retail 12.7% Khun Piangjai Harnpanij The Asavabhokhin Group A series of equity fund raising to catch up the Business combination pace of tremendous gave rise to a new retail growth in lending volume banking platform. 30% CAGR loan Operations commenced growth during in late 2005 with initial paid-up capital of Bt 1.1 billion 2011 & Beyond Set up and AMC and reorganize under the regulatory Solo Consolidation framework Equity reached the Bt 10,000 milestone 22.5% 35.8% LHFG 1/ Non-operating Holding Company LH Bank 1/ 2/ Retail Banking As is Universal Banking As planned 17.3% 1.5% LH Fund Asset Management Co 1/ LHFG and LH Bank are altogether viewed under one solo consolidation 2/ LH Bank will submit the official application to BoT within Mar 2011, seeking permission to upgrade status from retail to universal bank

26 Heading in the Right Direction Standing at the Forefront of Mortgage Financing Continuing Expansions under Retail Banking Universal Banking- Driven Potential Growth Strong Shareholders Proven Trace Record & Milestones * Adjusted ROE (w/o Right Offering)

27 SECTION 4 LHFG Business Strategies and Targets

28 Vision & Mission

29 Strategic Roadmap Target 1. Loan Growth 32,014 MB +25% 35,604 MB +11% 42,513 MB +19% +20 % +20 % +20 % > 73,000 MB 2. Deposit & Borrowing Growth 35,673 MB +61% 41,938 MB +18% 45,476 MB +8% +20 % +20 % +20 % > 77,500 MB 3. Market share - funding 0.57 % 0.84 % 4. Net Profit Growth 240 MB +138% 273 MB +14% 408 MB +50% +15 % +15 % +15 % > 620 MB 5. Asset Growth 44,216 MB +35% 49,707 MB +12% 62,311 MB +25% +20 % +20 % +20 % > 107,000 MB

30 Strategic Roadmap (Cont d) 6. High Technology Channel Expansion 7. Human Resource Development Professional knowledge supported by LH Group ATM Pool/ Internet Banking Target 8. Universal Bank in Domestic Full Banki ng Servi ce 9. Distribution Network (incl. Head Office) 21 branches 23 branch es 31 branch es +10 branc hes +14 branc hes +20 branc hes 75 branches 10. Listing on SET (IPO) Listed Co. (LHBA NK)

31 Strategic Roadmap (Cont d) Target Strategy Result Full Banking Service Source of Fund Growth + 20% CAGR ( ) Capital increase to 10,000 MB tier-1 capital Expand wider & more competitive business scope Expand banking networks New initiative product offerings Total Assets Growth > 20% CAGR ( ) Loan Growth + 20% CAGR ( ) Strong capital Expand from SME to Corporate loan Net Profit Growth > 15% CAGR ( ) Diversified Loan Portfolio Improve Retail Channels HR Development Diversified loan to lower risk & fulfill new opportunities Expand banking networks ATM Pool & Internet Banking Professional knowledge support 0.84% Market Shares Funding in 2013 Prudent Risk Discipline & Portfolio Management

32 Q&A