Bank of Ayudhya PCL

Bank of Ayudhya PCL
June 2016
A member of MUFG, a global financial group
Who we are
Key Financials & Development Highlights
Mid Term Business Plan
2016 Business Strategy and Key Focus
2
Krungsri Group Overview
} Officially established in 1945
} 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
Shareholding Structure
(as of 12 May 2016)
BTMU
76.88%
Ratanarak
Group
& Others
23.12%
} 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
} Jan 2015: Integration of BTMU Bangkok Branch
into Krungsri
* Ngern Tid Lor Co., Ltd., changed its name from CFG Services Co., Ltd. on 1 Oct 2015
3
Who we are:
Our History of Growth … Acquisitions & Organic Growth
Feb 2008
Apr 2009
Nov 2009
Year 2010
Acquired GE Auto
USD$2.6Bn
THB
78.01 Bn
Acquired
AIG Retail Bank
and AIG Card
(Thailand)
THB 32.80 Bn
USD$0.7Bn
Acquired GE
Money (Thailand)
USD$1.9Bn
THB 53.75 Bn
One KRUNGSRI
Integration
Total
Asset Size
(Dec 2007)
THB 652.4 Bn
1H2007
2H2007
Jan 2007
Krungsri & GE JV
1H2008
2H2008
1H2009
Sep 2009
Acquired
Ngern Tid Lor
2H2009
2011
1H2010 2H2010
Q1’ 2012
2012
Acquired HSBC
(Retail Portfolio
in Thailand)
THB 17.45 Bn
USD$440MM
2015
2013
Dec 2013
Jan 2015
BTMU - New
strategic shareholder
Integration of
BTMU Bangkok
Branch
THB 2.00 Bn
USD$64.9MM
BTMU
72.0%
Ratanarak
Group
25.0%
BTMU
76.88%
Total
Asset Size
(June 2016)
THB 1.8 Trillion
Ratanarak Group
& Others
23.12%
Free Float
3.0%
4
Fact about Krungsri: Thailand’s 5th largest universal bank with
leadership position in consumer finance & Japanese Corporate market
Unique & Strong
Krungsri
One of the world’s
largest comprehensive
financial group
5th largest universal
bank in Thailand
Strong leadership position
in consumer finance
Global product
offering capabilities
Most extensive
overseas network with
over 1,150 bases 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
Our Strong and Broad Franchise
Banking
Branches
37 Auto
Business
Branches
5,934
681
Overseas Branches
................................... ................................
644
................................... ................................
Domestic Branches
................................... ................................
ATMs
Exclusive Banking
& Business Center
74
Branches
+ 1 Rep Office
.....................................................................................................................
First Choice
Branches
127 + 17,300 Dealers
Micro Finance
423 Branches
3
Krungsri Auto
>8,700 Dealers
Remark: Data as of March 2016.
EDC
49,456
6
Broad-based Growth in Alternative Channels
SMS
SMS Banking
Internet Banking
1.2 Million
513,000 Users
Users
Krungsri Mobile
1,600,000User DL
49 Million
Krungsri
Website
Page view
Social Networks
23,150,000Users
7
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) – 70.00%
Investment Management
• Krunsri Asset Management Co., Ltd. (KSAM) - 76.59%
Factoring
• Krungsri Factoring Co., Ltd. (KSF) - 99.99%
Collection Services
Securities
• Total Services Solutions Plc. (TSS) - 99.99%
• Krungsri Securities Plc. (KSS) - 98.71%
Micro Finance
Support Business
• Ngern Tid Lor Co., Ltd. (NTL) - 99.99%
• Siam Realty and Services Co., Ltd. (SRS) - 99.99%
Life Insurance
Leasing
• Ayudhya Development Leasing Co., Ltd. (ADLC) - 99.99%
• Krungsri Life Assurance Broker Ltd. (KLAB) - 99.99%
• Tesco Life Assurance Broker Ltd. (TLAB) - 50.00%
Asset Management
Non-life Insurance
• Krungsri Ayudhya AMC Ltd. (KAMC) - 99.99%
• Krungsri General Insurance Broker Ltd. (KGIB) - 99.99%
• Tesco General Insurance Broker Ltd. (TGIB) - 50.00%
Krungsri … full fledged Universal Bank
8
Krungsri: Credit Ratings
International Ratings
Moody’s
Fitch Ratings
Foreign currency
Long Term
Outlook
A-
Netative
Krungsri
Standard & Poor’s
Foreign Long Term
Outlook
Deposit
Baa1
Stable
Issuer Credit Rating
Outlook
Long Term
BBB+
Stable
National Ratings
Fitch Ratings (Thailand)
Tris Rating
Long Term
Outlook
Company Rating
Outlook
AAA (tha)
Stable
AAA
Stable
Krungsri Auto/1
na
na
AA-
Stable
Ngern Tid Lor
na
na
A-
Stable
Krungsri
/1
Ayudhya Capital Auto Lease Plc. (AYCAL)
9
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
Who we are
Key Financials & Development Highlights
Mid Term Business Plan
2016 Business Strategy and Key Focus
11
2Q 2016 Key Financial Highlights
Loan Growth
Consolidated
(Baht Billion)
Deposit Growth
CASA %
1,062.1
1,358.4
1,032.5
1,302.2
NIM %
1Q/16
2Q/16
1Q/16
2Q/16
+9.1% YoY
+5.4% YoY
+4.3% QoQ
+2.9% QoQ
Fee Income Growth
6.03
5.70
1Q/16
2Q/16
Cost-to-Income Ratio
NPL
Coverage %
+3.4% YoY
-5.6% QoQ
1Q/16: 45.88%
12
Loans by Segments
Corporate Loan
SME Loan
Retail Loan
+3.5% YtD
+2.5% YtD
+5.5% YtD
Consolidated
(Baht Billion)
587.2
563.7
530.5
207.5
568.1
203.6
2Q/16
1Q/16
2Q/16
THB 1,303.5 bn.
International
Corporate
2Q/16
THB 1,358.4 bn.
Thai Corporate
International
Corporate
SME
SME
Retail
1Q/16
June 2016
2015
Thai Corporate
1Q/16
Retail
Retail
• Auto HP
• Mortgage
• Credit Card &
Personal Loans
21%
13%
9%
13
5 years Financial Highlights
CAR required by BOT at 8.50%
STRONG
CAPITAL
BASE
(Percent)
6.00%
16.94%
2012
10.94%
2011
11.85%
2010
11.54%
4.30%
2009
11.55%
2.60% 14.15%
2008
16.29%
4.44%
15.84%
Tier 1
2.59% 14.58%
11.99%
5
10
15
Tier 2
20
14
Who we are
Key Financials & Development Highlights
Mid Term Business Plan
2016 Business Strategy and Key Focus
15
Mid Term Business Plan (MTBP)
A strategic framework formulated as a guide for Krungsri’s business operations over the next three years
(2015 – 2017), formulated in a forward-looking approach.
Operating Environment
Domestic
Regulatory
External
•
•
•
•
•
•
•
Krungsri Strength & Weakness
• Auto loan, credit card and
personal loan
• Business and financial
support from MUFG
• Global product capabilities
& network
• Strong franchise and
customer base
Rise of middle income
Growth outside Bangkok
Aging population
AEC
Political uncertainty
Change in tax structure (Corporate/VAT)
Credit Card Act
Our ASPIRATION:
• Retail deposit & mortgage
• Lower share in Thai corp &
SME
To be a Top Tier Financial Group in Thailand
Key Strategic Themes
Grow
Asset
Increase
Fee
Income
Reduce
Cost of
Funds
16
MTBP Key Principles
To achieve aspiration, Krungsri will implement 3 business strategies which is key strategic themes,
and four management platform themes to strengthen governance in support of business endeavors.
I. Key Strategic Themes
II. Key Drivers
III. Key Attitude
Grow
Assets
“Make Life Simple”
Customer Centric Approach
Increase
Fee
Income
Reduce
Cost of
Funds
Operate Productively & Efficiently
Products & Services
Delivery Channels
Marketing / Branding
Strengthen Internal Control
Products & Services
Delivery Channels
Marketing / Branding
Align Robust Process
Talent Management & Working
Environment
“OneKrungsri”
17
MTBP Key Principles (Cont’d)
Key Strategic Themes
• Keep Leading Position in
Consumer and Auto
• Become a Tier 1 Mortgage Player
• Become a Core Bank to
Commercial Customers
Grow Asset
• Enhance Trade Finance
& Transaction Banking
Increase Fee
Income
Reduce
Cost of Funds
• Increase CASA *
• Expand Customer Base
• MUFG BTMU Synergy
• Enhance Delivery Channels,
Including Branches
• Retail & Commercial
Collaboration
* CASA: Current and Saving Accounts
18
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
• Explore opportunity to partner with
Vietin Bank
• Focus: Auto, consumer and microfinance
fields
19
Krungsri’s Future
Maintain No.1 in
Consumer Finance
Stronger
Commercial
Banking Platform
Larger Customer
Base
Strong corporate
Governance
& Internal Control
Top Tier Financial Group in Thailand
20
Who we are
Key Financials & Development Highlights
Mid Term Business Plan
2016 Business Strategy and Key Focus
21
Our Focus in 2016
Continuation of MTBP and leveraging complementary strength with
MUFG/BTMU to achieve our aspiration
MTBP: Key Theme
Grow
Assets
Increase
Noninterest
Income
Synergy Strategies
CLMV
CIB
Reduce
Cost of
Funds
Thai JP
Collaboration
Continuation
on leveraging
complementary
strengths
Retail
Strengthen Internal Control
Transaction
Align Robust Process
Banking
Dealer / Vender
Finance
Operate Productively & Efficiently
Talent Management
Working Environment
22
Our Focus in 2016 (Cont’d)
Continue 9 Core business strategies under MTBP
1
Keep Leading Position in Consumer and Auto
2
Become a Tier 1 Mortgage Player
3
Become a Core Bank to Commercial Customers
4
Enhance Transaction Banking
5
Strengthen FX Business
6
Increase Low Cost CASA
7
Expand Customer Base
Grow Assets
Increase
NonInterest
Income
Reduce
Cost of
Funds
Enhance Delivery Channels, Including Branches
8
MUFG / BTMU Synergy
9
Retail & Commercial Collaboration
23
Krungsri Group Profile
Leadership Position
International Ratings
Fitch Ratings
Standard & Poor’s
Moody’s
A-
BBB+
Baa1
National Ratings
Fitch Ratings
TRIS Rating
AAA (tha)
AAA
In consumer finance
Market
Position
% Share
Personal Loan
1
27%
Credit Card
1
14%
Auto (HP)
2
23%
SME
6
5%
Corporate
4
12%
As of June 2016
Consumer
Extensive Franchise: 28,402 Service Outlets
As of June 2016
Number
As of June 2016
Krungsri Business Centres
Number
55
Domestic Branches
681 *
Overseas Branches
3
First Choice Branches
Representative Office
1
+ Dealers
+ 17,300 Dealers
Krungsri Auto Dealers
> + 8,700 Dealers
ATMs
5,934
Exchange Booths
94
Micro Finance Branches
Krungsri Exclusive
19
Thai Post Offices
127 Branches
423
> + 1,000
* Krungsri Domestic Branches = 681 Branch, of which 644 are Banking Branches and 37 are Auto Business Branches
24
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
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meaning of the Securities and Exchange Act B.E. 2535 of Thailand. Neither this presentation nor any part of it shall form the basis of, or
Investor Relations Department : Telephone : (662) 296 3778
be relied on in connection with, or act as an inducement to enter into, any contract or commitment whatsoever. No person should rely
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on the information contained in this presentation in making an investment decision in respect of any of the Bank’s securities. Any
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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.
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