Bangkok Bank Public Company (BBL) Investor Presentation summary

Operating environment and macroeconomic trends

• Global export growth has slowed since mid-2022, impacting many economies, including Thailand, with manufacturing and exports remaining subdued.

• Central banks in major economies are expected to maintain policy rates until mid-2024, while Thailand's policy rate has normalized.

• IMF projects gradual global economic recovery into 2025, with emerging Asia and ASEAN-5 expected to outperform global averages.

• Thai economic growth is forecasted at around 3% for 2024, constrained by global headwinds and uncertainties.

• Tourism is rebounding strongly, with foreign arrivals projected to rise from 28.2 million in 2023 to 39.5 million in 2025.

Financial performance and balance sheet

• 1Q24 net profit increased 18.7% QoQ, supported by strong loan growth (+2.4% YTD) and improved cost-to-income ratio (47.1%).

• Net interest margin moderated to 3.06% due to higher deposit costs, while net fees and service income rose 2.3% QoQ.

• Asset quality remains stable with NPL ratio at 3.0% and a high coverage ratio of 291.7%.

• Loan-to-deposit ratio improved to 85.6%, and capital positions remain robust with CET1 at 15.6% and total capital ratio at 19.7%.

• Operating expenses decreased 16.9% QoQ, reflecting ongoing cost management initiatives.

Strategic focus and 2024 targets

• Key strategies include regionalization, digitalization, urbanization, and sustainability, leveraging international presence and technology.

• 2024 financial targets: loan growth 3-5%, NPL ratio around 3%, NIM around 2.8%, low single-digit net fee income growth, cost-to-income ratio in high-40s, and credit cost 0.9-1.0%.

• Emphasis on ESG integration, customer-centricity, and responsible finance, with ongoing training and governance enhancements.

• FDI inflows to ASEAN and Thailand are rising, supporting targeted industries such as electronics, automotive, and tourism.

• The bank maintains a diversified loan portfolio across business units and industries, with international loans comprising 25%.