3Q 2012
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
Private investment Baht 2,488 bn, 13.7% growth from 2011 Baht Bn Private investment at current market prices 3,000 +13.7% 2,000 1,000 0 Source: Office of the National Economic and Social Development Board (NESDB) 3
10 years of low investment, now new cycle starts 40% Prior 1998 Over-invest 1998-1999 Asian crisis 1999-2009 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
High CapU industries expanding quickest Q3 Before flooding 2011 2012 Nov During flooding Sep* Food & Beverages 57.8 54.5 53.9 Vehicles 90.3 13.3 110.9 Petroleum 76.7 51.1 74.4 Chemical 84.7 67.2 82.3 Hard Disk Drive 83.7 17.7 52.4 Integrated circuit 80.8 17.0 54.7 Electrical Appliances 71.7 30.3 67.3 Note: *Sep-12 are preliminary figures Source: The Office of Industrial Economics, Bank of Thailand 5
97% increase in BOI applications reflect investment intentions 9M11 407,800 +97% 9M12 804,000 Value of BOI application (Baht mn) Source: Thailand Board of Investment 6
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
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
Baht 2.3 trn invested in infrastructure Land transport Energy Marine transport Telecommunications Total Budget Baht 2.3 trn Air transport Public utilities 9
Foreign Direct Investment up 70% Foreign direct investment applications Japan remains no.1 investor in Thailand Baht Bn 500 400 +68% 396 +70% 433 +116% 300 236 255 276 200 128 100 0 Total FDI (2010 vs 2011) Total FDI Japan (9M11 vs 9M12) (9M11 vs 9M12) Source: Thailand Board of Investment 10
Thai businesses expanding overseas up 21% Baht Bn 400 Thai direct investment (TDI) abroad 300 200 100 21 37 104 135 143 142 +77% 251 +21% 212 256 0 Source: Bank of Thailand 11
Bangkok Bank positioning and strategies
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
The Largest overseas operations 25 branches and 1 rep. office in 13 economies, since 1954 1. 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
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
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
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
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
To leverage strong position, our strategies are UNDERSTAND CUSTOMER UNDERSTAND MARKET Marketing Product Process Network People Organization structure Risk Management IT 19
Bangkok Bank Financial results
724 838 852 934 911 962 1,042 1,181 1,143 1,256 1,470 1,550 Lending up Baht 80 bn or 5.4% YTD Baht Bn 2,000 1,500 +5.4% YTD 1,000 500 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Sep-12 Loans (Baht Bn) 21
Lending momentum continues Index Dec-09 = 100 140 130 2011 Sep 2012 120 110 2010 100 90 Dec-09 Dec-10 Dec-11 Sep-12 Loan growth since December 2009 22
NPL ratio steady at 2.6% Baht Bn 150 10.0% 7.9% 8.0% 100 4.6% 4.4% 6.0% 50 82.1 55.1 55.6 3.0% 2.7% 2.6% 2.7% 2.6% 45.6 42.6 42.9 45.3 44.8 4.0% 2.0% 0 2007 2008 2009 2010 2011 Mar-12 Jun-12 Sep-12 0.0% NPL (Baht Bn) NPL Ratio (%) 23
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% 2007 2008 2009 2010 2011 Mar-12 Jun-12 Sep-12 Loan Loss Reserve / NPLs - Coverage Ratio (%) 24
Excess loan loss reserves at Baht 49 bn Baht Bn 180 150 120 90 47 37 34 86 60 30 0 32 15 15 47 44 104 98 26 29 35 46 48 49 76 48 57 52 25 35 37 37 38 36 37 37 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Mar-12 Jun-12 Sep-12 Excess reserve over BOT (Baht Bn) Allowance required by BOT (Baht Bn) 25
Credit cost lower to 41 bps Baht Bn 20 15 10 5 0 82 66 54 56 60 41 12.0 5.6 6.6 7.6 7.6 4.7 2007 2008 2009 2010 2011 9M12 Bps 100 80 60 40 20 0 Provisioning (Baht Bn) Credit cost (Bps) 26
High liquidity with LDR at 87.3% 110% 100% System 95.0% 90% 80% BBL 87.3% 70% 60% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 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
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 2,000 +11.9% YTD 1,500 1,000 500 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Sep-12 Deposit (Baht Bn) 28
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% 2009 2010 2011 3Q11 4Q11 1Q12 2Q12 3Q12 9M11 9M12 Yearly Quarterly Period Net Interest Margin (%) 29
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, 2012 30
Net fee income up 0.6% from 9M11 Baht Bn 20 15 +0.6% YoY 10 5 15.8 17.3 18.1 +6.0% YoY +0.8% QoQ 14.0 14.1 0 4.5 4.1 4.7 4.7 4.7 2009 2010 2011 3Q11 4Q11 1Q12 2Q12 3Q12 9M11 9M12 Yearly Quarterly Period Net Fee Income (Baht Bn) 31
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
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% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 9M12 Cost to income (%) 33
Net profit up 3.3 bn or 15.6% from 9M11 Baht Bn 30 24.6 27.3 +15.6% YoY 24.8 20 17.9 19.2 20.2 20.6 21.4 +3.3% YoY -12.1% QoQ 10 7.6 5.9 8.1 8.9 7.8 0 2006 2007 2008 2009 2010 2011 3Q11 4Q11 1Q12 2Q12 3Q12 9M11 9M12 Yearly Quarterly Period Net profit (Owners of the bank) 34
Dividend well balance between absolute amount and payout ratio Baht 10 8 6 4 2 0 4.0 3.0 41.4% 6.0 5.0 4.0 3.5 1.5 2.0 2.0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 50% 40% 30% 20% 10% 0% Interim (L) Final (L) Dividend payout ratio (R) 35
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
APPENDIX ASEAN map 37
APPENDIX Thailand Map 38
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
For further information Contact: Investor Relations Team Tel (66) 2 626 4981 Fax (66) 2 231 4890 Email: IR@bbl.co.th Bangkok Bank Website www.bangkokbank.com 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