2017 financial results · siam commercial bank pcl. | analyst meeting presentation | 22 january...

/ 34Siam Commercial Bank PCL. | Analyst Meeting Presentation | 22 January 2018

Analyst Meeting Presentation

22 January 2018

IMPORTANT DISCLAIMER:

Information contained in this document has been prepared from several sources and the Bank does not confirm the accuracy and completeness of such

data, particularly where the data is sourced from outside the Bank. In addition, any forward looking statements are subject to change as a result of

market conditions and the final result may be different to that indicated. The Bank makes no representation or warranty of any type whatsoever on the

accuracy or completion of the information contained herein.

2017 Financial Results


PageAgenda

Review of 2017 Results 3-151.

2018 Targets 343.

Economic Indicators and

2018 Strategy & Outlook

17-322.


2017 ResultsModerate performance with strong buffers

(Consolidated)

2016

Actual2017

Targets2017

Actual

ROE 14.8% N.A. 12.4%

ROA 1.67% N.A. 1.45%

Net interest margin 3.27% 3.1-3.3% 3.23%

Non-NII growth -3.9% 3-4% -2.2%

Cost/Income ratio 38.7% 40-43% 42.3%

Total loan growth (yoy) 5.8% 4-6% 4.9%

NPLs (gross) 2.67% ≤3.0% 2.83%

Coverage ratio 134.3% ~130% 137.3%

CAR 17.7% N.A. 17.7%

CET1/ Tier 1 14.8% N.A. 15.7%

PROFITABILITY

2017 Highlights

2017 net profit was Baht

43.2 billion, a 9.4% yoy

decrease from higher

provisions, higher OPEX,

lower net insurance premium,

and lower investment gains,

while NII and net fee income

rose yoy.

NIM was at 3.23%, in line

with the annual target of 3.1-

3.3%.

Non-NII declined by 2.2%

yoy largely due to lower net

insurance premium and

lower gain on investments.

However, net fee income

and net trading and FX

income increased yoy.

Coverage ratio improved to

137.3% while NPL ratio rose

yoy but remained within the

2017 guidance.

N.A. = Not Available1/ Excluding large gains from sale of equity investments in 3Q15. If included, 2016 Non-NII would have declined by 17.5% yoy.

1/

INCOME/COST

LOANS/ASSET

QUALITY

CAPITAL


Modest top-line growth countered by higher provisions and OPEX led to a decrease in net profit

Profitability

1/ Net profit before impairment provisions, non-controlling interest, and taxes.

Net profit declined by 9.4% yoy due to higher provisions and higher OPEX from investment in digital banking. However,

total income rose moderately mainly from higher NII and higher net fee income while net insurance premiums and gain

on investments decreased significantly yoy.

Net Profit and Operating Profit1/

(Baht billion)

OperatingProfit

NetProfit

2016 2017 4Q16 1Q17 2Q17 3Q17 4Q17

12.7 11.9 11.9 10.1 9.2

17.8 19.7 19.7 20.2 18.9

47.6 43.2

81.7 78.6

+6.7% yoy

-6.1% qoq

-27.7% yoy

-9.2% qoq

-3.8% yoy

-9.4% yoy


2017 NII rose by 4.4% yoy due mainly to loan growth of 4.9% yoy together with lower interest expenses on deposits and

borrowings. The same factors also contributed to the 3.9% yoy NII growth in 4Q17.

NIIHealthy NII growth driven by loan expansion and cost of funds management

Net Interest Income(Baht billion)

Yield on Earning Assets

Yield on Loans

Cost of Funds

Costs of Deposits

Net Interest Margin(NIM)

Loan Growth(%yoy)

2016 2017 4Q16 1Q17 2Q17 3Q17 4Q17

4.52% 4.38% 4.57% 4.39% 4.34% 4.38% 4.39%

5.58% 5.38% 5.59% 5.44% 5.40% 5.43% 5.36%

1.55% 1.45% 1.56% 1.48% 1.46% 1.45% 1.41%

1.48% 1.38% 1.49% 1.40% 1.41% 1.39% 1.36%

22.8 22.6 22.8 23.3 23.7

88.4 92.3

3.27% 3.23%3.33%

3.21% 3.18% 3.23% 3.28%

5.8% 4.9%

1.4% 0.7% 0.9% 1.2% 2.1%

+4.4% yoy

+3.9% yoy

+1.8% qoq

Loan Growth(%qoq)


Above sector average loan growth in 2017 with an upward trajectory

Credit Cycle

3.5%

4.9%

-10.0%

0.0%

10.0%

20.0%

30.0%

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018F

6-8%

Loan Growth(%yoy)

SCB Loan Growth

Global

financial crisis;

SCB tightened

credit

underwriting

standards

SCB’s market

share growth

strategies in

mortgage, auto

and SME segment

1/ In 2006, the Bank increased its holding in SCB Leasing (then Thai Panich Leasing PCL) from 37.6% to 95.5%.2/ SCB EIC’s estimation as of January 2018

Source: Bank of Thailand’s website (for sector loans growth)

SCB’s

acquisition of

SCB Leasing1/

and market

share gains in

SME segment

Thailand’s

economic

slowdown

2018 SCB Loan

Growth Target

Banking Sector Loan Growth

Estimated Sector

Loan Growth by EIC

4-5%2/

2/


Corporate and retail segments continued to drive overall loan growth

Loans Breakdown1/ as at 31-Dec-17

Corporate Loans1/ (Baht billion) SME Loans1/ (Baht billion)

Retail Loans1/

(Baht billion)

Loans1/

(Baht billion)

( ) : Loan breakdown as at 31-Dec-16

Loan growth of 4.9% yoy was driven by corporate and retail segments, while SME loans remained relatively flat yoy.

1/ Including loans classified as NPLs2/ Mainly credit cards and unsecured consumer loans

Loan Growth

+4.9% yoy

1,735 1,777 1,833 1,939

2,035

2013 2014 2015 2016 2017

+6.8% yoy

630 658 646 712 761

2013 2014 2015 2016 2017

-0.1% yoy

349 341 357 365 364

2013 2014 2015 2016 2017

SME17.9%

(18.8%)

Corporate37.4%

(36.7%)

Mortgage31.0%

( 31.3%)

Auto8.8% (8.7%)

Others4.9% (4.5%)

Retail44.7%

(44.5%)

Retail

Others2/

Auto

Mortgage

+15.9% yoy

+3.7% yoy

+6.7% yoy

+5.5% yoy

485 530 576 607 630

190 168 169 169 180 82 80 85 86 100 757 778 830 862 910

2013 2014 2015 2016 2017


Provisions(Consolidated, Baht billion)

Troubled Debt Restructuring(Consolidated, Baht billion)

Asset QualityHigher coverage ratio despite slight deterioration in asset quality

NPL ratio stood at 2.83% in 2017, up from 2.67% in 2016,

mainly driven by higher NPLs in SME segment and housing

loans, while NPLs from the corporate segment subsided. The

increase in housing NPLs was due mainly to the one-time

classification in 4Q171/. However, coverage ratio rose to

137.3% at the end of 2017, exceeding the Bank’s target of

130%.

In 2017, loan loss provisions increased to Baht 25.1

billion, equivalent to credit cost of 126 bps, in order to

align existing expected loss principles to those required

under new accounting standard effective in 2019.

Coverage Ratio

Gross NPL %

Non-Performing Loans

(Baht billion)

40.0 42.7

59.0 57.6 65.6

2013 2014 2015 2016 2017

2.14% 2.11%

2.89%2.67% 2.83%

150.8%138.1%

109.8%

134.3% 137.3%

+13.8% yoy

2013 2014 2015 2016 2017

83 75 165 119 126

+11.3% yoy

13.6 13.2

29.7 22.5 25.1

Credit cost(bps)

NPL

PL

-11.8% yoy

27.2 21.2 26.5 30.8 27.1

9.9 8.2

6.5 9.7

8.6

37.1 29.4

33.0 40.5

35.7

2013 2014 2015 2016 2017

1/ One-time classification from irregular and off-schedule mortgage payments.


Special Mention(Baht billion)

Lower new NPL formation particularly in corporate and SME segments

Special mention loans increased by 15.9% yoy duemainly to one corporate customer in the miningindustry and higher special mention loans frommortgage segment1/.

In 2017, new NPL fell to 1.71%, from 1.80% in 2016, whichwas due largely to lower new NPLs in corporate and SMEsegments.

In 4Q17, new NPL ratio stood at 0.49%, up qoq from SMEand mortgage segments. The increase in mortgage newNPLs was due mainly to the one-time classification1/.

Asset Quality

1/ One-time classification from irregular and off-schedule mortgage payments.2/ Shows change vs 3Q16.3/ Shows change vs 2015.Green / Red fonts indicate decrease / increase in new NPL formation as a % to total loans from the previous period.

+15.9% yoy

34

63

33

45

52

2013 2014 2015 2016 2017

4Q16 3Q17 4Q17 2016 2017

NPL% 2.67% 2.75% 2.83% 2.67% 2.83%

New NPL% 0.52% 0.38% 0.49% 1.80% 1.71%

NPL% 2.29% 1.90% 1.85% 2.29% 1.85%

New NPL% 0.18% 0.01% 0.10% 0.51% 0.17%

NPL% 6.37% 7.55% 7.61% 6.37% 7.61%

New NPL% 1.08% 0.54% 0.63% 3.23% 2.77%

NPL% 2.25% 2.76% 3.08% 2.25% 3.08%

New NPL% 0.61% 0.70% 0.96% 2.41% 3.07%

NPL% 1.83% 1.75% 1.82% 1.83% 1.82%

New NPL% 0.50% 0.50% 0.54% 1.72% 1.91%

Total

Loans

Auto

Loans

Corporate

SME

Mortgage

2/ 3/

1/

1/

1/

1/


Despite lower net insurance premium, net fee income growth remained healthy

1/ Other income includes income from equity interest in affiliated companies, dividend income, and other operating income.

2017 non-NII declined by 2.2% yoy due primarily to lower net insurance premium and lower gain on investments, while

net fee income and net trading and FX income increased yoy. On a quarterly basis, non-NII in 4Q17 rose by 8.9% yoy as

a result of higher net fee income from mutual fund and loan related businesses as well as higher gain on investments.

Non-NII

44.9 43.9

+30.5% yoy

+8.9% yoy

-6.6% qoq

-8.3% qoq

-5.0% qoq

+12.2% yoy

+1.7% qoq

-106.5% yoy

2016 2017 4Q16 3Q17 4Q17-103.3% qoq

33.7% 32.2% 30.1% 32.9% 31.0%

25.6% 24.4% 23.1% 24.9% 23.2%

-2.2% yoy

-49.5% yoy

+6.7% yoy

-36.5% yoy

+5.6% yoy

5.7 2.9

28.4

30.3

6.7 7.1

0.4 0.7 -0.0

7.1 7.9

8.0

1.9 1.9

1.8

9.8

11.4 10.7

Net Insurance Premiums

Net Fee Income

Net Trading

and FX Income

Other Income1/

Gain on Investments

Non-Interest Income(Baht billion)

%Non-NII to Total Income

%Net Fee and Net Insurance

Premium to Total Income


1/ Others include brokerage fee, fund transfer, remittance, etc.2/ GMTS stands for Global Markets and Transaction Services, which includes cash management, trade finance, corporate finance andcorporate trust.

Strong fee income growth driven by mutual fund and bancassurance businesses

Fee Income

In 2017, fees from mutual fund and bancassurance businesses significantly contributed to the overall 6.7% yoy growth in

net fee income. On a quarterly basis, 4Q17 net fee income grew significantly by 12.2% yoy due largely to higher mutual

fund and loan related fees.

Net fee income Breakdown

(Baht billion)

28.4 30.3 +6.7% yoy 7.1 7.9 8.0 +12.2% yoy +1.7% qoq

+6.3% yoy +15.0% yoy +10.7% qoq

-6.6% yoy +32.9% yoy +29.4% qoq

+27.8% yoy +33.7% yoy +8.5% qoq

+22.3% yoy +25.6% yoy +36.2% qoq

-0.3% yoy -10.1% yoy -31.1% qoq

-1.3% yoy +1.8% yoy +3.0% qoq

2016 2017 4Q16 3Q17 4Q17

Net Fee Income by Segment

Corporate 25% 23% 25% 28% 23%

SME 9% 8% 8% 8% 7%

Retail 65% 69% 67% 64% 70%

28% 26% 28% 25% 25%

19% 17% 20% 24%16%

7% 8%8% 7%

9%

19% 23% 19% 21%22%

11% 10% 9% 8% 10%

16% 16% 17% 16% 17%Others 1/

Loan related fee

Mutual fund

Bancassurance fee

GMTS 2/

Bank cards


Higher CASA with strong growth in savings and current deposits

Deposits grew by 3.3% yoy with strong growth in savings and current deposits despite shrinking fixed deposits, raising

the Bank’s CASA ratio to 65.0% in 2017 from 59.7% in 2016.

Deposits(Baht billion)

Deposit

Growth

2013 2014 2015 2016 2017

Current & Savings Accounts (CASA)

49.3% 55.6% 61.5% 59.7% 65.0%

+3.3% yoy

+27.1% yoy

+11.6% yoy

-10.2% yoy924 842 728 816 732

843 999 1,106 1,149 1,282

56 54 57

62 78 1,823 1,895 1,891

2,026 2,092

Savings

Current

Fixed


L/D ratio edged up; however, liquidity ratio remained high

As loans grew by 4.9% yoy surpassing deposit growth of

3.3% yoy, the loan-to-deposit ratio rose to 97.2% in 2017

from 95.7% in 2016.

Loan-to-Deposit Ratio

The Bank currently maintains a daily liquidity ratio of

20% or higher as measured by total liquid assets (at a

bank-only level) to total deposits. If the ratio falls below

20%, corrective action will be immediately considered.

Liquidity Ratio(Bank-only)

Liquid assets primarily comprise cash, deposits, bilateral repo with the Bank of Thailand and investment in government securities.

Liquidity

95.2%

93.8%

97.0%

95.7%

97.2%

90%

92%

94%

96%

98%

100%

102%

2013 2014 2015 2016 2017

24.2%

28.6% 28.8% 28.8%

26.9%

19%

22%

25%

28%

31%

34%

37%

2013 2014 2015 2016 2017

20%


2017 OPEX rose by 11.6% yoy due to higher staff costs, marketing and promotion expenses, and premises and

equipment expenses. The higher expenses reflected the implementation of the Bank’s transformation project and new

digital marketing initiatives. Cost-to-income ratio went up to 42.3% in 2017 but still remained within the Bank’s guidance

of 40-43%.

Cost EfficiencyHigher OPEX reflected the Bank’s transformation roadmap towards digital banking

Operating Expenses and Cost-to-Income Ratio

Cost-to-Income

Ratio

Operating

Expenses

(Baht billion)

2016 2017 4Q16 1Q17 2Q17 3Q17 4Q17

14.8 13.5 14.3 14.5 15.4

51.6

57.7

38.7% 42.3% 45.5%40.6% 42.0% 41.9% 44.9%

+6.1% qoq

+3.8% yoy

+11.6% yoy


Tier 2

Common Equity Tier 1 / Tier 1

Capital Adequacy Ratio (Basel III)

1/ Excluding net profit for 2H17 in accordance with regulatory requirements. If included, the total capital ratio and CET1 capital ratio under Basel III on a

consolidated basis would have been 18.5% and 16.5% respectively, and on a bank-only basis would have been 18.1% and 16.0%, respectively.

Strong capital position, currently well above the minimum regulatory requirement, together with adequate loan loss

provisions will enable the Bank to withstand any adverse shocks and to pursue any future growth opportunities.

Capital position remained strong to prepare for future growth opportunities and regulatory changes

2017 Regulatory

Minimum

CAR 9.75%

Tier 1 7.25%

1/

Capital Base

Consolidated

2013 2014 2015 2016 2017

Bank-only

CAR 15.3% 16.9% 17.2% 17.4% 17.2%

CET1/ Tier 1 11.8% 13.6% 14.0% 14.5% 15.1%

12.0%13.7% 14.1% 14.8% 15.7%

3.4%

3.3% 3.2%2.9% 2.1%15.4%

17.0% 17.3% 17.7% 17.7%

1/


PageAgenda


2018 Targets 343.



17-322.


Key driver estimates (%)1

GDP growth

Policy rate(end period)

Export USDgrowth

THB/USD(end period)

Loan growth(sector-wide)

2017F

4.0

10

1.50

32.6

Non-deposit wealth2

Deposit+BE(sector-wide)

10

3.5

3.9

2017A

3.8

10.0

1.50

32.6

8.6

3.2

3.9

Recovery in exports helped the Thai economy to accelerate in 2017. Expect more investment activities in 2018 with some lingering soft patches in consumer markets.

1. %YOY except for policy rate (% per annum) and exchange rate (THB/USD)

2. Includes bonds, insurance, mutual funds, private funds, pension funds, and retirement funds

Source: SCB Economic Intelligence Center

2018F

4.0

5

1.50

32-33

8-10

4-5

4-5

9M17

11M17

11M17

11M17

11M17


The new business paradigm: Boundaries between industries are becoming blurred and will eventually disappear in the context of digital


SCB has embarked on the transformation journey since mid-2016 to strengthen itself and position to win in the new business paradigm

Mid 2016 2017

Today

2019

New vision defined

‘Going Upside Down’

To be the ‘Most Admired

Bank’

• Align vision of the future• Future-proof technology platform• Digitize end-to-end process• Build analytics infrastructure and

capabilities• Revamp client coverage and

engagement model

Strategic Alignment and Foundation Transformation

Organization and BusinessModel Transformation

2018

A B

‘Fixing the Fundamentals’

• Lean the Bank to lower cost base and create agility/ immunity under the new paradigm

• Capture blue ocean growth in high margin lending business• Revolutionize acquisition model to upscale digital and

customer base• Build data analytic capabilities across organization• Explore new business model to become ‘Bank as a platform’

Macroeconomicheadwinds

Digital disruption

Consumer behaviors

Regulatory shifts

2020

Siam Commercial Bank PCL. | Analyst Meeting Presentation | 22 January 2018 / 34

‘Fixing Fundamentals’: We are revamping our technology platform/ coverage model to uplift customer experience

Digital platform New branch format and operating model

Cloud-based technology

New mobile banking platform

New technology platform

Open-API architecture

Blockchain Big data analytics

Investment centerSCB Express

Business center Service center

Existing branch network rationalization

Sales vs. services separationNew sales model with digital capabilities

New customer onboarding process and SLA

+

Strategic alignment and foundation transformation

A


Technology strategic partners

New business partners

Ecosystems partners

Digital Ventures

SCB Abacus

▪ Wealth management platform▪ Insurance business

▪ Create innovative solutions to support the Bank and the business

▪ Strategically invest in Fintech startups▪ Act as an accelerator

▪ Focus on the development of Artificial intelligence (AI) technology to enhance business operation efficiency and service quality

▪ The first spin-off in the Southeast Asian banking industry

‘Fixing Fundamentals’: We also learn to disrupt ourselves while forming strategic partnership to leapfrog with new capabilities

A

New subsidiaries setup Partnership and alliances



‘Fixing Fundamentals’: Our series of new initiatives launched are getting traction and well-received by the public

A



A different world we are going into, which prompted us to adjust and create immunity to prepare for the new paradigm

B

Organization and business model transformation

Our strategic posture

▪ Embrace the changes / disrupt ourselves and the status quo

▪ Redefine our business model thru tech and data/insights

▪ Be ready to respond promptly once the new paradigm unfolds

A different world we are going into

▪ Transaction fees are disappearing. Lending and wealth management may stay but will likely need to transform

▪ What used to be our assets/strengths may no longer be the case

▪ What the future holds remains largely uncertain / unknown

Siam Commercial Bank PCL. | Analyst Presentation | January 2018

Going Upside Down

B Winning in the new business paradigm requires an extreme shift in our organization and business model


1. Lean the bank 2. High margin lending 3. Digital acquisition

4. Data capabilities 5. New business model (Bank as a platform)

‘Going Upside Down’: Organization and business model transformationB


People & culture New technologies

Key enablers underpinning our strategy going forward


‘Going Upside Down’: Organization and business model transformationB


Lean the bank by leveraging digital technology to lower cost base and create agility/immunity under the new paradigm ▪ Moving from large physical footprint (e.g., branches) and workforce to lighter

and more nimble digital organization▪ Shortening ‘business cycles’ from months to weeks or days

1

3Revolutionize acquisition model to upscale digital/customer base▪ Growing digital user base and migrating customers to digital platform▪ Scaling engagement thru lifestyle payment use-cases and ecosystem

2Capture blue ocean growth in high margin/alternative lending▪ Transforming our business model by leveraging new data capabilities,

innovation and technologies which will enable us to expand into highly attractive businesses, i.e. high margin/ alternative lending

4Build data analytic capabilities across organization▪ Leveraging real-time data-driven insights and predictive analytics to boost

revenue/ productivity while reducing cost/ risk exposure▪ Driving data-driven culture as core part of future culture

5Explore new business model to become ‘Bank as a platform’▪ Engaging with customers – directly or indirectly thru strategic partners – to

fulfill their daily needs while capturing data / insights within ecosystem to drive towards ‘Data as a business’ in the long term


1514132012 16 2022F21F19F 20F18F17E

Cost to incomePercentage

Today

Key “Lean-the-bank” initiatives

Leverage technologies to lower cost in ways that have never been done before:

▪ Branch network optimization, driven by big data analytics

▪ Customer migration to digital/automated channels

▪ Process automation and digitization

▪ Strategic workforce management

Peak transformation cost outlay in 2018 (of THB 40bn transformation budget), resulting in highest C/I

C/I – Run the bank

C/I – Change the bank

3

Pre-transformation avg. ~38%

‘Going Upside Down’: Lean the bank to create agility and cost competitiveness

New cost structure lower than pre-transformation to ensure our cost competitiveness in the new business paradigm


B1


‘Going Upside Down’: Capturing blue-ocean growth in high margin/ alternative lending using data analytics, innovation and technologies

0

5

10

15

20

25

0 1 2 3 4 5 6 7 8 9 10

Corp

SME

SSME

Personal loan

Credit card

Auto

Mortgage

▪ Leveraging advanced analytics and new digital capabilities to redefine existing business model to ultimately:

‒ Gain market shares from banks and non-banks

‒ Maintain acceptable credit cost/NPL and appropriate risk-return

▪ Continuously extending growth momentum in SCB’s core portfolio

%income (NII+loan-related Non-NII) Portfolio size

%credit cost

SCB’s potential growth areas

SCB’score portfolio


SCB’s current portfolio profile

B2

Data engagement

Retail

Energy

Supply Chain &Logistics

LivingHealth &wellness

Tech & DigitalServices

Travel

Wealth & Insurance

University

Food & Restaurant

E-commerce

Lifestyle

‘Going Upside Down’: Exploring new business model to ultimately become ‘Bank as a platform’


B5

No more of the same …

… but a new way of doing business with radically different business model, underpinned by technologies and data insights e.g.,

‒ Predictive ability to project customer needs/propensity to buy

‒ Solutions to address both financials and non-financial needs (thru partners)

‒ Individually customized offerings at moment of truth (seamless)

‒ Limited transactional cost to consumers


‘Going Upside Down’: Transforming our people and culture remains one of the most critical enablers of our transformation journey


B

Common sense is the new process

“

While technology will come, human engagement will stay

“

We need to turn data into charms

“


Wealth management

▪ Grow AUM and profitability over large client base by leveraging digital enablement

▪ Build new wealth management capabilities to deliver world-class experience to customers

In parallel to transforming who/what we are, we remain committed to enhancing our brick-and-mortar businesses thru digital/data capabilities

Data capabilitiesHuman engagement

(with new roles)Technologies/

Digital platform

Consumer lending

▪ Increase MOA by leveraging digital and data capabilities to uplift customer experience

▪ Grow new revenue stream by focusing on high-margin lending

▪ Lower cost to serve thru digital acquisition

Business lending

▪ Focus on portfolio and revenue de-concentration for corporate clients

▪ Transform business model to become ‘SME ecosystem provider’

▪ Grow SSME client baseleveraging digital and data capabilities


Targets have been set to ensure clear deliverable of SCB Transformation

Customers

Short-term

Long-term

the “Most Admired Bank”

Key performance indicators have been set with clear responsible team and are monitored

closely by the Board of directors

2020 target has been set in line with our vision for each stakeholder

Employees Shareholders

Society Regulators

Leading tech capabilities

Strong strategic

workforce planning

Readying people with new culture

Sustainability and prudence

to society/regulator

Revenue uplift and larger customer

base esp. in small/under-exposed area

Leading in customer

experience

Lower cost-to-serve and more digitized

processes

2018 organization’s KPI


PageAgenda


2018 Targets 343.



17-322.


2018 Targets

(Percentage)

2016

Actual2017

Actual2018

Targets

Total loan growth (yoy) 5.8% 4.9% 6-8%

Net interest margin 3.27% 3.23% 3.1-3.3%

Non-NII growth -3.9% -2.2% Up to 5%

Cost/Income ratio 38.7% 42.3% 42-45%

NPLs (gross) 2.67% 2.83% ≤ 3.0%

Coverage ratio 134.3% 137.3% ≥130%

1/ Excluding large gains from sale of equity investments in 3Q15. If included, 2016 non-NII would have declined by 17.5% yoy.

INCOME/COST

1/

LOANS/NIM

ASSETQUALITY

IMPORTANT DISCLAIMER:

The above financial targets are based on the Bank’s preliminary estimates that may change due to the economic conditions and other unforeseen

circumstances that may affect the operational environment. These targets and other related details will be available on the Bank’s website,

www.scb.co.th (Investor Relations > Financial Information > Set Filings), from 22 January 2018 onward.

2017 financial results · siam commercial bank pcl. | analyst meeting presentation | 22 january...

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