Bank of Ayudhya PCL

Bank of Ayudhya PCL
July 2015
A member of MUFG, a global financial group
Who we are
Key Financials & Development Highlights
Mid Term Business Plan
Synergy between Krungsri and BTMU
2
Who we are: Our History
} Officially established in 1945
} 2007 : BAY and GE became 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 CFG Services Co., Ltd.
(Srisawad), a micro finance business from AIG
Shareholding Structure
(as of 7 May 2015)
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
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’07)
THB 652.4 Bn
1H2007
2H2007
Jan 2007
Krungsri & GE JV
1H2008
2H2008
1H2009
2H2009
2011
1H2010 2H2010
Q1’ 2012
2012
Acquired HSBC
(Retail Portfolio
in Thailand)
THB 17.45 Bn
USD$440MM
2015
2013
Sep 2009
Dec 2013
Jan 2015
Acquired CFGS
THB 2.00 Bn
USD$64.9MM
BTMU - New
strategic shareholder
Integration of
BTMU Bangkok
Branch
BTMU
72.0%
Ratanarak
Group
25.0%
BTMU
76.88%
Total
Asset Size
(Jun 15)
THB 1.6 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 40 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
620
Banking
Branches
37 Auto
Business
Branches
5,311
657
Overseas branches
3 +Branches
1 Rep Office
*
................................... ................................
Domestic branches
................................... ................................
................................... ................................
ATMs
Exclusive Banking
& Business Center
74
.....................................................................................................................
First Choice
98
Branches
+ 14,346 Dealers
Micro Finance
357
Krungsri Auto
7,064 Dealers
EDC
40,813
* Rep Office in Myanmar opened on 22 April 2015
6
Our Broad-Based Alternative Channels
SMS
SMS Banking
1.3 Million
Users
Krungsri Mobile
1,000,000User DL
30.5
Krungsri
Website
Million
Page view
Internet Banking
560,000 Users
Social Networks
14,000,000 Users
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
• CFG Services Co., Ltd. (CFGS) - 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
Outlook
Long Term
Krungsri
A-
Standard & Poor’s
Foreign Long Term
Outlook
Deposit
Stable
Baa1
Issuer Credit Rating
Outlook
Long Term
Stable
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
CFGS/2
na
na
A-
Stable
Krungsri
/1
/2
Ayudhya Capital Auto Lease Plc. (AYCAL)
CFG Services Co., Ltd. (CFGS)
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
Awards and Recognition
Corporate Governance
People
4 Awards from 5th Asian
Excellence Award 2015
3 Consecutive Years
(2013-2015)
Performance
Innovation / Branding & Marketing
Fund Management
Company of the Year
TFEX Top IC
Rewards 2015
Financial
Inclusion Award
Superbrands
Award
4 Awards from the
Asia Banking &
Finance Awards
Excellence in Retail
Financial Services
Awards
11
Who we are
Key Financials & Development Highlights
Mid Term Business Plan
Synergy between Krungsri and BTMU
12
2Q 2015 Key Financial Highlights
Loan Growth
Consolidated
(Baht Billion)
1,244.9
Deposit Growth
CASA %
1,010.5 1,007.3
1,234.8
NIM %
1Q/15
2Q/15
+31.6% YoY
+0.8% QoQ
Fee Income Growth
5.6
1Q/15 2Q/15
+28.5% YoY
-0.3% QoQ
Cost-to-Income Ratio
1H/15: 4.23%
NPL
5.5
Coverage %
1Q/15 2Q/15
+18.9% YoY
-1.1% QoQ
1Q/15: 46.33%
13
2Q 2015 Loans by Segments
Corporate Loan
SME Loan
Retail Loan
+79.5% YtD
-5.6% YtD
+2.0% YtD
Consolidated
(Baht Billion)
+0.7%
529.5
212.7
525.6
-2.0%
208.4
1Q/15
2Q/15
2014
THB 1,012.8 bn.
1Q/15
2Q/15
+2.1%
507.0
496.4
1Q/15
2Q/15
Jun 2015
THB 1,244.9 bn.
Retail
• Auto HP
• Mortgage
• Credit Card &
Personal Loans
20%
11%
10%
14
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
15
Who we are
Key Financials & Development Highlights
Mid Term Business Plan
Synergy between Krungsri and BTMU
16
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
17
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”
18
MTBP Key Principles -2
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
19
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
20
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
21
Who we are
Key Financials & Development Highlights
Mid Term Business Plan
Synergy between Krungsri and BTMU
22
Synergy between Krungsri - BTMU
Focus on leveraging both Krungsri and BTMU’s complementary strengths is bearing fruit.
Central
Group
PTT MCC
Biochem
Cross-Border
Business
Cross-sell retail
products
JBIC
Supply Chain
financing
ECAs
Krungsri &
BTMU
Synergy
Transaction
Banking
Cross-sell of
Investment
Banking
products
Toyota Leasing
Thailand
Business
Matching
Mercedes Benz
Thailand
The power of synergy has enhanced Krungsri on our service capability to customers.
23
MUFG/BTMU Synergy
Financial Support
PTT MCC
Biochem
Supply Chain
• Provided a financial support of USD 60
million to PTT MCC Biochem Co., Ltd.
(JV between PTT Plc and Japan’s
Mitsubishi Chemical Corporation
(MCC))
•
•
Automobile
Paper
•
Automobile
•
Logistics
Bridge finance
Central
Group
• Provided financing support to Central
Group’s latest expansion into European
retail market.
Cross-sell retail products
Credit line
JBIC
• Joined JBIC to set up a credit line of USD
50 million to support Japanese SMEs
business expansion.
Business Matching
Debenture
Mercedes Benz
Thailand
• The lead arranger for a long term
Debenture (Deal size THB 1 billion)
Toyota Leasing
Thailand
• The joint-lead arranger for long term
Debenture (Deal size THB 2 billion)
24
Regional Expansion
Krungsri’s representative office opened in Yangon to support the Bank’s corporate
and SME clients in capturing business opportunities in the country.
Krungsri Representative Office - Open 22 April 2015
•
To provide in-depth information on trade and
investment-related opportunities to both Thai and
Myanmar business operators.
•
To provide“business matching” services
BTMU Yangon Branch - The first foreign bank to
operate in Myanmar for decades.
•
To provide full banking services, including
deposits, loans, and foreign exchange, to foreign
companies and domestic banks operating in
Myanmar
Two banks will cooperate to help Japanese and Thai companies expand business in Myanmar.
25
Krungsri Group Profile
Leadership Position
International Ratings
Market
Position
% Share
Personal Loan
1
27%
Credit Card
1
15%
Auto (HP)
2
20%
SME
5
7%
Corporate
4
10%
As of May 2015
A-
BBB+
Baa1
National Ratings
AAA (tha)
AAA
In consumer finance
Consumer
Extensive Franchise: 23,434 Service Outlets
As of June 2015
As of June 2015
Number
Domestic Branches
657 *
Overseas Branches
3
Krungsri Business Centres
First Choice Branches
+ Dealers
ATMs
5,311
Krungsri Auto Dealers
Exchange Booths
90
Micro Finance Branches
Krungsri Exclusive
19
Thai Post Offices
Number
55
98 Branches
+ 14,346 Dealers
7,064 Dealers
357
> + 1,000
* Krungsri Domestic Branches = 657 Branch, of which 620 are Banking Branches and 37 are Auto Business Branches
26
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
Contact
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
Fax : (662) 683 1341
on the information contained in this presentation in making an investment decision in respect of any of the Bank’s securities. Any
E-mail : [email protected]
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.
Krungsri Website :
www.krungsri.com
Join us!
www.facebook.com/krungsrisimple
www.twitter.com/krungsrisimple