investor presentation - bangkok · pdf filethe thai economy: steady trend of moderate recovery...

Investor Presentation For 2Q17

1. Operating Environment

2. Bangkok Bank’s Position

3. Our Key Focus & Strategy

4. Our Financial Results 2Q17

Bangkok Bank

2

The Thai Economy: Steady Trend of Moderate Recovery

3

Source: National Economic and Social Development Board of Thailand and Bank of Thailand 2017F GDP forecast by Bangkok Bank Since 2012 GDP Revised by Chain Volume Measures

GDP growth YoY (%)

4.6% 5.1% 5.0%

2.5%

-2.3%

7.8%

0.1%

7.3%

2.8%

0.9%

2.9% 3.2% 3-4%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017F

Collapse in oil price

Great floods

Large scale fiscal stimulus

Global economic recovery

Global financial crisis

Strong Baht appreciation up to taper tantrum

Brexit US election

US Population : 323 mn

Euro area Population : 341 mn China

Population : 1,379 mn

World Population : 7.4 bn

Note: Population as of 2016 * Composed of 5 countries: Indonesia, Malaysia, Philippines, Thailand, and Vietnam Source: International Monetary Fund, World Economic Outlook update July 2017, The World Bank

ASEAN* Population : 639 mn

Japan Population : 127mn

1.6 2.1 2.1 2.1 1.8 1.7

0

1

1

2

2

3

3

2016 2018F 2020F

1.8 1.9 1.7 1.6 1.5 1.5

0

1

1

2

2

3

3

2016 2018F 2020F

6.7 6.7 6.4 6.0 5.9 5.8

5

6

6

7

7

2016 2018F 2020F

1.0 1.3 0.6 0.8

0.2 0.7

0

1

1

2

2

2016 2018F 2020F

4.9 5.1 5.2 5.3 5.3 5.3

55555555

2016 2018F 2020F

3.2 3.5 3.6 3.7 3.7 3.7

2

3

3

4

4

2016 2017F 2018F 2019F 2020F 2021F

4

With Moderate Global Growth, ASEAN Presents Major Opportunities Going Forward

60

80

100

120

140

160

180

Jan Jan Jan Jan Jan Jan Jan Jan Jun

Private Consumption Index (Seasonally Adjusted) Durables Index (Seasonally Adjusted)

90

100

110

120

130

140

Jan Jan Jan Jan Jan Jan Jan Jan Jun80

90

100

110

120

130

Jan Jan Jan Jan Jan

0

10

20

30

40

50

60

Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

FY 2015 FY 2016 FY 2017

Exports and Government Spending underpin Growth

Exports

Private Consumption

Source: Bank of Thailand, The Office of Industrial Economics, Center for Economic and Business Forecasting, Bureau of Budget and Fiscal Policy Office 5

Government Investment Expenditure Billion Baht

Index Jan 2013 = 100, 3mma Monthly Index Jan 2010 = 100

Monthly Index Jan 2010 = 100

Flood

Flood

Private Investment

Apr 2010 2011 2012 2013 2014 2015 2016 2017

2010 2011 2012 2013 2014 2015 2016 2017

2013 2014 2015 2016 2017

15.9

19.2

22.4

26.5 24.8

29.9 32.6

0

5

10

15

20

25

30

35

40

2010 2011 2012 2013 2014 2015 2016

0.80 0.79

1.44 1.33

0.88 0.80 0.77

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

2010 2011 2012 2013 2014 2015 2016

Bright Spots in 2017: Tourism and Motor Vehicle Sales

Visitor Arrivals

Source: Department of Tourism, Ministry of Tourism and Sports

6

No of units (in million)

Motor Vehicle Sales

0.37 0.41

1H16 1H17

Number of Foreign Tourists (in million)

16.6 17.3

1H16 1H17

Source: CEIC

Infrastructure Projects in the Pipeline

7

Inter-city rail network Baht 1,184.1 billion

Transportation in Bangkok & vicinity Baht 396.6 billion

1

2

3 Highway network Baht 160.4 billion

Water transportation Baht 3.9 billion 4

Air transport Baht 51.6 billion

5

Source: Office of Transport and Traffic Policy and Planning, Ministry of Transport

2015-2022 Infrastructure Projects 1.797 Trillion Baht

2017 Transport Action Plan 36 Projects, 896 Billion Baht

Inter-city rail network

Under construction: Chira-Khonkhaen

Approved by the cabinet: 5 projects

To be proposed to the cabinet: 7 projects

Transportation in Bangkok & vicinity

Under procurement: Yellow/Pink/Orange Lines

Proposal development: 7 lines

Highway network

Under construction: Bang Pa In-Korat

Bang Yai-Kanchanaburi

Pattaya-Map ta Phut

Air Transport

Under construction: Suvannabhumi Phase II

Other Projects

High-speed trains: Bangkok-Korat, Bangkok-Rayong

Eastern Economic Corridor

Under procurement: Rama 3-Dao Khanong –Outer Ring Road west Bangkok

1.0 1.5 2.5

1.5

2014 2015 2016 Jan-May2017

Opportunities from Regionalization & Urbanization

Higher Connectivity in the AEC

0 10 20 30 40

Malaysia

USA

Japan

China

ASEAN

Billions of Dollar

Note: Trading value during January – June 2017 Source: Ministry of Commerce

Source: ASEAN Secretariat, ASEAN FDI database, Bank of Thailand

Thailand's Top 5 Trading Partners

8

FDI into Thailand and CLMV

8% of total trade CLMV 22% of total trade

16% of total trade

12% of total trade

9% of total trade

5% of total trade

Thailand’s Investment in CLMV Billions of Dollar Billions of Dollar

9.2 11.8 12.6

2.8 3.0 1.7

1.7 2.3

5.0

9.0 2.6

2014 2015 2016

Thailand

Cambodia

Lao PDR

Myanmar

Vietnam

Thailand’s New Engine of Growth

10 Target Industries

Next-Generation Automotive

Smart Electronics Affluent, Medical & Wellness Tourism

Agriculture & Biotechnology

Food for the Future

Robotics Aviation & Logistics Biofuels & Biochemicals Digital Medical Hub

9

National e-Payment

Digitalization

Anytime, Anywhere, Any devices

Challenges & Opportunities

PromptPay

EDC & Card Usage Expansion

E-Tax

Government E-Payments

Everyday-transactions to be made anywhere at anytime

Disrupted the way doing business in various industries

10

Intermediary Bypass

Digital Economy





Bangkok Bank

11

Large Retail Customer

Base

Scale and Franchise Leadership

Multi-tiered Distribution

Platform

Long-presence

International Branches

Full Range of Products & Services

Bangkok Bank

Our strong, long-standing relationships and extensive regional network position us to benefit from the opportunities provided by current market trends

Market Leader in Corporate

& SMEs

Strong Domestic Network

12

13

60%

70%

80%

90%

100%

110%

2009 2011 2013 2015 Jun-17

Sustainable Liquidity and Funding

Note: Data as at June 2017 /1 System refers to all commercial bank in Thailand Source: Bank of Thailand, Bangkok Bank Analysis

Stable deposit

base

Well-positioned

LDR

Adequate liquid assets

System/1 96.9%

BBL 86.1%

0

1,000

2,000

3,000

2009 2011 2013 2015 Jun-17

Baht bn +5.5% YTD

Our respectable liquidity ratio is supported by diversified customer base in Thailand

Regulatory Economic Momentum

15%

20%

25%

30%

35%

40%

2009 2011 2013 2015 Jun-17

BBL 34.0%

System/1 27.3%

% %

Capital requirements/1 as of the year 2017

Common Equity Tier 1 Ratio

Basel III

Tier 1 Ratio Total Capital Adequacy Ratio

Capital requirements/1 as of the year 2019

7.0%

17.1%

Note: /1 The Bank of Thailand requires commercial banks to maintain an additional capital conservation buffer. The buffer will gradually increase by more than 0.625% each year from January 1, 2016 until it reaches more than 2.5% in January 1, 2019

/2 The ratios include net profit for the second half of 2016 and the deduction of dividends to be paid in May 2017 /3 The ratios include net profit for the first half of 2017

Dec-16 Jun-17

Total Capital (Baht bn)

CE Tier1/ Tier 1 capital

407

Tier 2 capital

Strong Capital Position Our prudent policy of capital and liquidity enable us to capture future business opportunities while meeting the challenges of regulatory requirements

7.25% 9.75%

361

42

11.0%

8.5%

14

Regulatory Economic Momentum

367

40

403

5.75%

16.8% 17.1% 16.8%

18.9% 18.7%

Dec-16 Jun-17 Dec-16 Jun-17 Dec-16 Jun-17

and ratio as of June 30, 2017/3

BBL’s ratio as of December 31, 2016/2

45% 42% 40% 40% 42%

18% 19% 20% 20% 20%

11% 11% 11% 10% 10% 11% 12% 13% 14% 13% 15% 16% 16% 16% 15%

2013 2014 2015 2016 Jun-17

30% 30% 28% 26% 26%

16% 17% 19% 21% 21%

18% 16% 16% 16% 15%

15% 15% 14% 15% 15%

10% 11% 11% 11% 11% 9% 9% 10% 9% 10% 2% 2% 2% 2% 2%

2013 2014 2015 2016 Jun-17

Loan breakdown Percentage of composition

61% 61% 56% 60%

59%

39% 39% 44% 40%

41%

2013 2014 2015 2016 1H17

Net Interest Income

Non Interest Income

Income breakdown Baht bn, Percentage of composition

105.9 96.9

91.5 102.7

Resilient Position Across Business Cycle Diversification supports earning stability

By business unit

By Industry

International Consumer Business

Commercial

Corporate

Manufacturing

Utilities & services

Commercial

Other Housing Real estate & cons Agri & mining

15

55.3

16

214 204 185

174 151

142 141 130 136 132

100

120

140

160

180

200

220

240

260

280

300

2013 2014 2015 2016 Jun-17

Note: /1 System refers to all commercial bank in Thailand.

Source: Bangkok Bank Analysis

36.0 33.1 48.8 58.3 69.0

56.6 58.8 55.4

61.2 60.9

5.3 5.2 5.6 6.2 6.6

3.5 3.5 3.8 4.4 4.5

-15.00-14.95-14.91-14.86-14.82-14.77-14.72-14.68-14.63-14.59-14.54-14.49-14.45-14.40-14.36-14.31-14.26-14.22-14.17-14.13-14.08-14.03-13.99-13.94-13.90-13.85-13.80-13.76-13.71-13.67-13.62-13.57-13.53-13.48-13.44-13.39-13.34-13.30-13.25-13.21-13.16-13.11-13.07-13.02-12.98-12.93-12.88-12.84-12.79-12.75-12.70-12.65-12.61-12.56-12.52-12.47-12.42-12.38-12.33-12.29-12.24-12.19-12.15-12.10-12.06-12.01-11.96-11.92-11.87-11.83-11.78-11.73-11.69-11.64-11.60-11.55-11.50-11.46-11.41-11.37-11.32-11.27-11.23-11.18-11.14-11.09-11.04-11.00-10.95-10.91-10.86-10.81-10.77-10.72-10.68-10.63-10.58-10.54-10.49-10.45-10.40-10.35-10.31-10.26-10.22-10.17-10.12-10.08-10.03-9.99-9.94-9.89-9.85-9.80-9.76-9.71-9.66-9.62-9.57-9.53-9.48-9.43-9.39-9.34-9.30-9.25-9.20-9.16-9.11-9.07-9.02-8.97-8.93-8.88-8.84-8.79-8.74-8.70-8.65-8.61-8.56-8.51-8.47-8.42-8.38-8.33-8.28-8.24-8.19-8.15-8.10-8.05-8.01-7.96-7.92-7.87-7.82-7.78-7.73-7.69-7.64-7.59-7.55-7.50-7.46-7.41-7.36-7.32-7.27-7.23-7.18-7.13-7.09-7.04-7.00-6.95-6.90-6.86-6.81-6.77-6.72-6.67-6.63-6.58-6.54-6.49-6.44-6.40-6.35-6.31-6.26-6.21-6.17-6.12-6.08-6.03-5.98-5.94-5.89-5.85-5.80-5.75-5.71-5.66-5.62-5.57-5.52-5.48-5.43-5.39-5.34-5.29-5.25-5.20-5.16-5.11-5.06-5.02-4.97-4.93-4.88-4.83-4.79-4.74-4.70-4.65-4.60-4.56-4.51-4.47-4.42-4.37-4.33-4.28-4.24-4.19-4.14-4.10-4.05-4.01-3.96-3.91-3.87-3.82-3.78-3.73-3.68-3.64-3.59-3.55-3.50-3.45-3.41-3.36-3.32-3.27-3.22-3.18-3.13-3.09-3.04-2.99-2.95-2.90-2.86-2.81-2.76-2.72-2.67-2.63-2.58-2.53-2.49-2.44-2.40-2.35-2.30-2.26-2.21-2.17-2.12-2.07-2.03-1.98-1.94-1.89-1.84-1.80-1.75-1.71-1.66-1.61-1.57-1.52-1.48-1.43-1.38-1.34-1.29-1.25-1.20-1.15-1.11-1.06-1.02-0.97-0.92-0.88-0.83-0.79-0.74-0.69-0.65-0.60-0.56-0.51-0.46-0.42-0.37-0.33-0.28-0.23-0.19-0.14-0.10-0.050.000.040.090.130.180.230.270.320.360.410.460.500.550.590.640.690.730.780.820.870.920.961.011.051.101.151.191.241.281.331.381.421.471.511.561.611.651.701.741.791.841.881.931.972.022.072.112.162.202.252.302.342.392.432.482.532.572.622.662.712.762.802.852.892.942.993.033.083.123.173.223.263.313.353.403.453.493.543.583.633.683.723.773.813.863.913.954.004.044.094.144.184.234.274.324.374.414.464.504.554.604.644.694.734.784.834.874.924.965.015.065.105.155.195.245.295.335.385.425.475.525.565.615.655.705.755.795.845.885.935.986.026.076.116.166.216.256.306.346.396.446.486.536.576.626.676.716.766.806.856.906.946.997.037.087.137.177.227.267.317.367.407.457.497.547.597.637.687.727.777.827.867.917.958.00

-

30.00

60.00

90.00

120.00

150.00

180.00

2013 2014 2015 2016 Jun-17

BBL's Excess reserves over BOT requirement (Bn Baht)

BBL's Required Reserve by BOT (Bn Baht)

BBL's LLR/Loans (%)

System 's LLR/Loans (%)

Resilient Position Across Business Cycle

Loan loss reserves, LLR/Loan Billion Baht, Percentage

92.6 91.9

119.5 104.2

Sound loan asset quality reflects our conservative stance

Coverage ratio Percentage

System/1 BBL

129.9

/1





Bangkok Bank

17

Our Key Focus & Strategy

Go through transition period

together with customers

Short-term

Sustainability growth

Long-term

Leverage our scale and franchise

leadership

Tailor products and services to customer needs

Digital capabilities

Utilize our extensive network, long-term relationships and full range of products & services

Support customers to reach out to new markets

Offer total solutions with full suite of best-in-class financial solutions

Support customers in adapting to rapidly evolving sector dynamics

Continue to improve customer experience by further developing digital technology

Capture new trends and digital practices

18

19





Bangkok Bank

1,753 1,782 1,869

1,941 1,924 1,978

2013 2014 2015 2016 Mar-17 Jun-17

90.6% 86.6% 89.4% 89.1% 85.7% 86.1%

2013 2014 2015 2016 Mar-17 Jun-17

Current & Saving Fixed LDR ratio

Overall Financial Positions

20

NPL amount, NPL ratio Billion Baht, Percentage

Loans Billion Baht

Deposit Baht bn, Percentage of composition

CE Tier1, Capital Ratio/1 Percentage

43.2 45.0 56.2

68.8 77.8

85.9

2.2 2.1 2.8 3.2 3.5 3.7

(1 0.00 )

(5 .00)

-

5.0 0

10.00

0

20

40

60

80

100

120

140

160

180

2013 2014 2015 2016 Mar-17 Jun-17

NPL Amount (Bn Baht) NPL Ratio (%)

-0.9% YTD

+1.9% YTD +2.8 % QoQ +3.7% YoY

+5.5% YTD +2.4% QoQ

14.7% 15.6% 16.2% 16.8% 17.2% 17.1%

2013 2014 2015 2016 Mar-17 Jun-17

CE Tier 1/Tier1 Tier2

17.2% 17.9% 18.3% 18.7% 19.0%

1,935 2,059 2,091 2,298

58%

42%

58%

42%

55%

45%

52%

48%

2,178

52%

48%

Note: /1 For 2013-Mar-17, the ratios include net profit and deducted dividend /2 For Jun-17, the ratios include net profit for the first half of the year 2017

2,244

51%

49%

18.9%

/2

41.5% 44.5% 43.8%

47.7%

2013 2014 2015 2016

50.7%

40.7% 45.8%

2Q16 1Q17 2Q17

49.4%

43.3%

1H16 1H17

2.36% 2.37%

2.16%

2.34%

2013 2014 2015 2016

2.33% 2.33%

1H16 1H17

61% 59%

1H16 1H17

Net Interest Income Net Fee Income Other Income

61% 61% 56% 60%

2013 2014 2015 2016

63% 60% 59%

2Q16 1Q17 2Q17

21

Total Income and Operating Expenses

2.27% 2.35% 2.31%

2Q16 1Q17 2Q17

+4 bps YoY -4 bps QoQ

6.0 6.7 6.4

0

5

10

15

20

25

30

2Q16 1Q17 2Q17

+6.6% YoY -5.2% QoQ

37%

Income breakdown Baht bn, Percentage of composition

NIM Percentage

27.2 24.8 28.0

40% 41%

105.9 102.7 96.9 91.5

39% 44% 40% +18 bps YoY

Net fee income Baht bn

21.2 21.7 24.1 24.5

0

10

20

30

40

2013 2014 2015 2016

Cost-to-income ratio Percentage

+1.7% YoY

39% 51.5 55.3

39% 41%

12.1 13.1

1H16 1H17

+8.4% YoY

+7.2% YoY +12.9% YoY +3.0% QoQ

+3.0% YoY

15.5 16.4

7.2 11.5

25.4 23.9

1H16 1H17

15.5 16.4

7.2 11.5

25.4 23.9

1H16 1H17

35.9 36.3 34.2 31.8

8.6 8.7 14.7 15.7

37.9 43.1 45.0

50.5

2013 2014 2015 2016

Overall Profitability

Profitability drivers Billion Baht

Note: /1 Owners of the Bank

22

Total Revenue

105.9 102.7 96.9

91.5

51.5 55.3

Operating expenses Provisioning expenses Tax Net profit/1

7.2 8.3 8.0

3.5 5.8 5.7

12.6 11.1 12.8

2Q16 1Q17 2Q17

24.8 27.2 28.0 51.5 55.3

Appendix

23

- Financial Results

Loan Growth and Composition

Loan by Business Unit Percentage of composition

Dec-16

Loan by Industry Percentage of composition

21% Utilities & Services

11% Housing

15% Others

Agriculture & Mining 2%

26% Manufacturing

Real Estate &Construction

9%

16% Commercial

24

1,753 1,782 1,869

1,941 1,924 1,978

2013 2014 2015 2016 Mar-17 Jun-17

Loan Billion Baht

+1.9% YTD +2.8% QoQ +3.7% YoY +3.9% YTD

10% Business

14% Consumer

International 16% Corporate

40%

20% Commercial

Jun-17

10% Business

13% Consumer

20% Commercial

Dec-16

21% Utilities & Services

11% Housing

15% Others

Agriculture & Mining 2%

26% Manufacturing

Real Estate &Construction

10%

15% Commercial

Jun-17

International 15% Corporate

42%

-0.9% YTD

16% 16% 16% 16%

25% 26% 25% 26%

25% 24% 23% 24%

9% 9% 8% 8%

12% 13% 15% 15%

13% 12% 13% 11%

2013 2014 2015 2016

16% 17% 16%

25% 25% 24%

23% 22% 23%

9% 8% 8%

15% 17% 17%

12% 11% 12%

2Q16 1Q17 2Q17

17% 16%

26% 25%

23% 23%

8% 8%

15% 17%

11% 11%

1H16 1H17

25

Fee income breakdown Percentage of composition

12.1 13.1

1H16 1H17

Net fee income Baht bn

+8.4% YoY

Fee Income

21.2 21.7 24.1 24.5

2013 2014 2015 2016

+1.7% YoY

Other Fees and Commissions

Bancassurance and Mutual Funds

Global market services

Transaction services

Credit Card business

Loan related fee

6.0 6.7 6.4

2Q161Q172Q16

+6.6% YoY -5.2% QoQ

12.1 13.1

1H16 1H17

+8.4% YoY

Baht mn

Dec-13 Dec-14 Dec-15 Dec-16 Growth Jun-17 Growth

%YTD %QoQ %YTD

Loans/1 1,752,667 1,782,233 1,868,903 1,941,093 3.9% 1,978,391 2.8% 1.9%

Deposits 1,935,272 2,058,779 2,090,965 2,178,141 4.2% 2,297,918 2.4% 5.5%

LDR 90.6% 86.6% 89.4% 89.1% -0.3% 86.1% 0.4% -3.0%

NPL 43,228 45,046 56,226 68,841 22.4% 85,947 10.5% 24.8%

NPL ratio 2.2% 2.1% 2.8% 3.2% 0.4% 3.7% 0.2% 0.5%

LLR to NPL 214% 204% 185% 174% -11% 151% -9% -23%

LLR to loans 5.3% 5.2% 5.6% 6.2% 0.6% 6.6% 0.1% 0.4%

Liquid assets/2 772,733 920,034 906,648 956,847 5.5% 1,034,447 0.03% 8.1%

Liquid asset to total assets 29.8% 33.3% 32.0% 32.5% 0.5% 34.0% -0.5% 1.5%

CET1/Tier 1 ratio/3 14.7% 15.6% 16.2% 16.8% 0.6% 17.1% -0.1% 0.3%

CAR/3 17.2% 17.9% 18.3% 18.7% 0.4% 18.9% -0.1% 0.2%

Financial Position

Note: /1 Loans = Loans to customers Less Deferred revenue /2 Liquid assets consist of cash, interbank and money market assets, claims on securities and trading & available-for-sale securities /3 For 2013-2016, the ratios include net profit and deducted dividend. For Jun-17, the ratios include net profit for the first half of the year 2017.

26

Financial Performance – 2Q17

Note: /1 Attributable to the Bank

Baht mn

2Q16 1Q17 2Q17 Growth (%)

QoQ YoY

Net interest income 15,596 16,277 16,568 1.8% 6.2%

Net fee income 5,976 6,719 6,372 -5.2% 6.6%

Non-interest income 9,250 10,939 11,472 4.9% 24.0%

Total income 24,846 27,216 28,040 3.0% 12.9%

Operating expenses 12,599 11,082 12,846 15.9% 2.0%

Provisioning expenses 3,542 5,806 5,688 -2.0% 60.6%

Net profit/1 7,169 8,305 8,047 -3.1% 12.2%

EPS/1 (Baht per share) 3.76 4.35 4.22 -3.1% 12.2%

NIM 2.27% 2.35% 2.31% -0.04% 0.04%

Net fee income ratio 24.1% 24.7% 22.7% -2.0% -1.4%

Cost to income ratio 50.7% 40.7% 45.8% 5.1% -4.9%

ROA/1 0.98% 1.13% 1.07% -0.06% 0.09%

ROE/1 7.80% 8.81% 8.38% -0.43% 0.58%

27

Financial Performance – 1H17


Baht mn

1H15 1H16 1H17 Growth (%)

YoY

Net interest income 27,452 31,629 32,845 3.8%

Net fee income 11,820 12,079 13,091 8.4%

Non-interest income 22,135 19,916 22,408 12.5%

Total income 49,587 51,545 55,253 7.2%

Operating expenses 21,959 25,448 23,925 -6.0%

Provisioning expenses 5,901 7,186 11,494 59.9%

Net profit/1 17,442 15,487 16,352 5.6%

EPS/1 (Baht per share) 9.14 8.11 8.57 5.6%

NIM 2.08% 2.33% 2.33% 0.00%

Net fee income ratio 23.8% 23.4% 23.7% 0.3%

Cost to income ratio 44.3% 49.4% 43.3% -6.1%

ROA/1 1.25% 1.07% 1.10% 0.03%

ROE/1 10.48% 8.48% 8.61% 0.13%

28

Financial Performance – Year


Baht mn

2013 2014 2015 2016 Growth (%)

YoY

Net interest income 55,879 58,997 57,510 63,998 11.3%

Net fee income 21,239 21,726 24,071 24,492 1.7%

Non-interest income 35,579 37,860 45,219 41,860 -7.4%

Total income 91,457 96,857 102,728 105,858 3.0%

Operating expenses 37,947 43,087 45,045 50,505 12.1%

Provisioning expenses 8,593 8,687 14,654 15,728 7.3%

Net profit/1 35,906 36,332 34,181 31,815 -6.9%

EPS/1 (Baht per share) 18.81 19.03 17.91 16.67 -6.9%

NIM 2.36% 2.37% 2.16% 2.34% 0.18%

Net fee income ratio 23.2% 22.4% 23.4% 23.1% -0.3%

Cost to income ratio 41.5% 44.5% 43.8% 47.7% 3.9%

ROA/1 1.45% 1.39% 1.21% 1.09% -0.12%

ROE/1 12.62% 11.66% 9.91% 8.59% -1.32%

29

Baht

0.75 0.75 1.00 1.00 1.00 1.00 1.50 2.00 2.00 2.00 2.00 2.00 2.00 1.00 1.25 1.75 2.00 2.00

3.00 3.50

4.00 4.50 4.50 4.50 4.50 4.50

0

10

20

30

40

50

0

2

4

6

8

10

12

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Interim (L) Final (L) Dividend payout ratio (R)

5.00

3.00 4.00

6.00 6.50 6.50

43.6%

3.00 2.75 2.00 1.75

Percent

6.50 6.50

Dividends and Payout Ratio

30

6.50

2014 2015 2016 2Q17

Branches/1

ATMs

CDMs

Employees

1,144

8,877

1,237

26,132

1,169

9,330

1,271

27,142

1,189

9,305

1,282

26,871

1,197

9,338

1,291

Note: Consolidated /1 Including domestic and international branches, excluding self-services outlets

+25

+453

+34

+1,010

+20

-25

+11

+8

+33

+9

-271

31

Networks

26,030 -841

Long-standing International Presence

Japan Branches: 2 Number of Years: 61

UK Branches: 1 Number of Years: 60

USA Branches: 1 Number of Years: 52

Laos Branches: 2 Number of Years: 23

Philippines Branches: 1 Number of Years: 21

Vietnam Branches: 2 Number of Years: 24

China/1

Branches: 6 Number of Years: 30

Myanmar


Malaysia/1


Singapore Branches: 1 Number of Years: 60 Indonesia


Taiwan Branches: 3 Number of Years: 52

Hong Kong Branches: 2 Number of Years: 63

Cayman Island Branches: 1 Number of Years: 1

Cambodia Branches: 1 Number of Years: 2

Note: As at June 2017

/1 Wholly-owned subsidiaries

Source: Bangkok Bank filings

32 international locations

in 15 economies

32

Consolidated 2017 Financial Targets

Loan growth 4-6%

NPL ratio (gross) Slightly increase

Net interest margin (NIM) Maintain

Net fee income growth Up to mid single digit

Cost to income ratio Mid-40s

2017 Financial Targets

Note: The above financial targets are based on the Bank’s preliminary estimates that may change due to the operating environments and other unforeseen circumstances.

33

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.

Contact: Investor Relations Team Tel (66) 2 626 4981 Fax (66) 2 231 4890 Email: [email protected] Bangkok Bank Website www.bangkokbank.com

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