Bangkok: Kasikorn Bank Take on the challenge With a 3+1 strategy to deliver sustainable value to all stakeholders, including customers, shareholders, employees, regulatory agencies, and society, to create sustainable growth and a +1 mission to create new income in the medium term and long term Miss Khattiya Inthawichai, Chief Executive Officer Kasikorn Bank said, 'The Bank is committed to being a reliable partner to customers and stakeholders. and deliver stable returns to shareholders under the context of a world economy that is highly uncertain.' Ready to give an opinion The Thai economy over the next 3 years will grow at approximately 3% per year. It is seen that the Thai economy in 2024 will still recover unevenly (K-Shaped Recovery), expanding at 3.1%, mainly from tourism and exports. and government spending amidst the uncertainty of the world economy Mr. Khattiya added that 'When looking at the context of business operations in the coming period. The banking business will face challenges from both th e uncertain conditions of the Thai economy and the global economy. Developing services to respond to changes in consumer behavior and the entry of financial service providers that are no longer limited to just financial institutions Kasikorn Bank has therefore announced the "3+1 Strategy" plan with strong preparations in every aspect. To push the rate of return on equity (ROE) to double digits by 2026.' Under the ' Strategy 3 +1 ' the Bank has a main strategy that focuses on 3 areas. Key Strategy 1 : Upgrade and increase credit efficiency. The main strategy is to expand the portfolio of quality loan products. Offer products to potential customers Including taking proactive steps to retain customers who currently have loans with the bank. Focus on growing quality loans Aiming for credit growth in 2024 at 3-5%, along with strengthening end-to-end credit potential, elevating credit capabilities to support business growth. Key Strategy 2 : Expand the fee income business Offering holistic sustainable wealth inv estment and advisory products tailored to clients' lifelong needs. Through offering comprehensive investment products from both the bank and from Kasikorn Asset Management Co., Ltd. and its partners such as mutual funds, Bank Assurance. and other financial products by offering them through comprehensive sales and service channels. The target is for mutual fund assets under management (Mutual Fund AUM) of Kasikorn Asset Management Company Limited (KAsset) to grow approximately 30-40% by 2026. KAsset has Mutual Fund AUM in mutual funds of 924 billion baht in Year 2023 In addition, the bank will focus on reinforcing its leadership in digital payment services through the K PLUS channel, which has the most users. By upgrading and adding new innovations That will make it even more popular. Delivering safety, convenience, and ease of use in every function. Key Strategy 3 : Strengthen the Bank's currentalong with the initiation of new channels To increase convenience for customers anywhere, anytime. Under this stra tegy The bank will integrate K PLUS, a leader in digital channels. with a variety of other platforms and applications, combined with service delivery in Physical channels to deliver a seamless and secure service experience. Set a goal to increase the K PLUS user base by approximately 20-30% by 2026 and maintain its leadership position. From the current number of 21.7 million users in 2023 In addition to the main strategy, there is also the '+1' strategy, which is what the bank does to find new income, including investment through Kasikorn Investment Company Limited (KIV), business expansion in the region. and innovation that goes beyond financial services It is expected that within the next 5 years '+1' will account for approximately 5% of the bank's net profits. 'The strategic plan This is in line with the Bank's business priorities for balanced growth. Focusing on implementing a careful credit policy. along with maintaining an appropriate level of capital consistent with the economic direction. Leads to s etting appropriate financial targets for 2024,' added Mr. Khattiya. Driven by 3 Enablers, combining technology-data-people to achieve the goal Ready to lead the Thai economy forward Important factors that will be the enablers of K-Strategy, allowing the bank to move forward according to the strategy laid out, consist of 3 main parts: 1. Modern technology Helps increase work efficiency and is a tool for creating innovations that elevate the Bank to be a leading financial service provider in the region. 2. Ability to analyze and use data. It is an important tool in increasing business opportunities and increasing the efficiency of the bank's operations and 3. Potential human resources. With a working model that sees results It is the key to making all plans real and measurable. Miss Khattiya Said at the end that Kasikorn Bank believes that Operating on the principles of being a sustainable bank Under the planned 3+1 strategy, the Bank will be able to respond to the emerging context in a timely and balanced manner. Strengthen a strong business foundation Always offer quality services that meet the needs of customers. Along with promoting the growth and development of employees' potential in the organization. and expects to be able to achieve the goal of creating a double-digit rate of return on equity (ROE) by 2026, ready to deliver sustainable returns to all stakeholders as intended and lead the Thai economy forward together Set financial goals for 2024, focusing on balanced growth. amidst a challenging economy From this trend Kasikorn Bank therefore places importance on balanced growth. Focus on implementing a careful lending policy along with maintaining appropriate capital levels consistent with the economic direction. lead to determine Financial goals for 2024 are as follows: Loan growth of 3-5% is in line with economic growth. Focus on quality growth in recovering businesses. Secured loans and growth in the region Ready to raise the level of asset quality care by adjusting lending strategies Enhance cre dit potential end-to-end targets corporate loans to grow 2-4%, SME business loans to grow 1-2%, and personal customer loans to grow 1-2%. The return on assets that generate net income ( Net Interest Margin: NIM) is stable. consistent with the interest rate direction and quality credit growth Meanwhile, financial costs are still high from interest rates that increased last year. Net Fee Income Growth grows at Mid to high-single digits through creating sustainable wealth for clients. Meanwhile, fee income from transactions decreased due to changes in consumer behavior. Other operating expenses to net operating income ( Cost to Income Ratio) is expected to be in the low to mid-40s from revenue growth in line with the gradual economic recovery. Investing to support K-Strategy while maintaining focus on cost management and efficiency gains (Productivity) continuously Non-performing loans to loans (NPL Ratio - Gross) is less than 3.25%, stable under the still incomplete economic recovery. Credit Cost is expect ed to be in the range of 175-195 bps, still using the principle of caution to accommodate various uncertain conditions Source: Thai News Agency