Bangkok Bank Public Company (BBL) Investor Presentation summary

Operating environment and macroeconomic trends

• Global economic recovery is expected to be gradual, with IMF projecting world GDP growth of 3.2% in 2025, led by emerging Asia and ASEAN-5 economies, including Thailand, which is forecasted to grow 2.9% in 2024 and 3.1% in 2025.

• Thai exports and manufacturing remain subdued due to a lackluster global economy, but recent months show signs of export recovery, especially in manufacturing and electronics.

• Tourism is rebounding strongly, with foreign arrivals projected to reach near pre-pandemic levels by 2025, supporting economic activity.

• FDI inflows to ASEAN and Thailand have increased, with targeted industries including electronics, automotive, and tourism.

• Inflation in Thailand has eased towards the central bank's target, and policy interest rates have normalized.

Financial performance and key metrics

• Net profit for 1H24 rose 4.2% YoY, driven by 1.8% YTD loan growth and higher net interest income, with NIM improving to 3.05%.

• Net fees and service income grew 0.6% YoY, supported by bancassurance and mutual fund services.

• Cost to income ratio improved to 45.6% in 1H24, reflecting effective cost management.

• NPL ratio remained manageable at 3.2%, with a high coverage ratio of 282.5% and robust loan loss reserves.

• Common equity tier 1 ratio stood at 15.3%, and loan-to-deposit ratio was stable at 85.4%, indicating strong capital and liquidity positions.

Strategic focus and outlook

• Loan portfolio remains well-diversified across business units and industries, with international operations contributing significantly.

• Digital transformation, ESG integration, and regionalization are identified as long-term challenges and opportunities.

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

• The bank maintains a strong international presence in 14 economies, supporting its regional growth ambitions.

• Ongoing focus on risk management, customer centricity, and sustainability underpins the bank’s vision and operational strategy.