deploys ‘Strategy 3+1’ to deliver sustainable value to all stakeholders, including customers, shareholders, employees, regulators and society at large.

"KBank aims to be a solidly dependable partner to our customers, and other stakeholder, and to deliver solid performance to our shareholders in an increasingly unpredictable global economic environment." Ms. Kattiya Indaravijaya, Chief Executive Officer, KBank

• 'Strategy 3+1' to help KBank grow business by focusing on three strategic priorities: reinvigorate credit performance, scale capital-lite fee income businesses, and strengthen and pioneer sales and service models to deliver value-based results. As the '+1' of its three core strategies, KBank aims for new revenue creation in medium- and long-term that will contribute around 5% to net profit within the next five years.
• Loan will grow 3-5% in 2024 along with enhancing end-to-end transformation to elevate credit capabilities for business growth
• Mutual Fund Asset Under Management (AUM) of KASIKORN ASSET MANAGEMENT Co., Ltd. (KAsset) will grow around 30-40% by 2026.
• K PLUS users will grow around 20-30% by 2026 and maintains leading position.

BANGKOK, THAILAND - Media OutReach Newswire - 26 January 2024 - KBank has adopted a 3+1 strategy that is about focusing on three priorities to generate sustainable growth, and an additional mission to generate new income in the medium and long term.

Ms. Kattiya Indaravijaya, KBank's Chief Executive Officer, said, "KBank aims to be a solidly dependable partner to our customers and other stakeholders, and to deliver solid performance to our shareholders in an increasingly unpredictable global economic environment."

She noted that the Thai economy is predicted to grow at around 3%, annually, during the next three years, and that during 2024 it is estimated to grow 3.1% with a K-shaped recovery, driven mainly by tourism, exports and public spending amid global economic uncertainty.

Ms. Indaravijaya said, "The banking sector is also expected to face challenges from the uncertain economic conditions on both the domestic and global fronts, and it will be looking to stay abreast of changing consumer behavior through service developments, as well as tracking the emergence of new financial service providers beyond financial institutions. KBank will implement a plan that we have called our 'Strategies 3+1' which are aimed at ensuring the banks is well prepared to both withstand and capitalize on these realities, and, ultimately, to deliver double-digit return on equity within 2026."

'Strategy 3+1' will focus KBank on three strategic priorities.

The first strategic priority (reinvigorate credit performance) is to enhance the bank's performance with its credit products. This entails driving even closer collaboration with good credit customers with greater customization of service and product offerings, as well as adopting proactive customer retention programmes for sustained growth. While focusing on quality growth, KBank targets growing its loans in 2024 will grow 3-5%, along with enhancing end-to-end transformation to elevate credit capabilities for business growth.

The second strategic priority (scale capital-lite fee income businesses) is to scale up its capital-lite fee income businesses. Foremost among those initiatives is further upgrading its wealth advisory businesses and offering a comprehensive service that can meet a customer's needs throughout all their life stages. A full range of comprehensive investment products, including mutual funds, bancassurance, and etc., from KBank and KAsset together with our partners, will also be offered along with enhancing sale and servicing model. All of these services will be delivered to our customers through comprehensive service outlets. The Bank intends to grow mutual fund assets under management (AUM) of KASIKORN ASSET MANAGEMENT Co., Ltd. (KAsset) by around 30-40 % by 2026. At the end of 2023, mutual fund AUM was 924 billion Baht.

As part of its second strategic priority, KBank also aims to further strengthen the market-leading position of its very popular K PLUS mobile banking platform, especially in digital payment service. through new initiatives that will make it even more popular because of its secure, convenient, and intuitive use across all functionalities.

The third strategic priority (strengthen and pioneer sales and service models to deliver value-based results) is to strengthen the bank's existing distribution platforms and channels as well as pioneer new ones to maximize convenience for customers at all times and locations. As a part of this, KBank will integrate a leading position in K PLUS with multiple other platforms and applications as well as physical channels. This endeavor aims to provide customers a safe and seamless cross-channel experience. As a result of these initiatives, KBank forecasts an increase in the number of K PLUS users of around 20-30 % by 2026, maintaining its leading position. The number of K PLUS users at the end of 2023 was 21.7 million.

Additionally, as the '+1' of its core strategies, KBank will create new revenue through investments of KASIKORN INVESTURE CO., LTD. (KIV), regional business expansion, and developing solutions that go beyond banking. The contribution from the '+1' of its strategies is estimated at around 5% of net profit within the next five years.

"The strategies are consistent with our prioritization of selective growth focusing on a prudent credit policy, and maintenance of a capital level appropriate for the economic environment, and, in line with these, the bank has set appropriate financial targets for 2024," she added.

Synergy of three enablers 'IT – Data – Human Resources' to achieve goals, driving Thailand's economy forward.

Three key enablers to advance K-Strategy consist of: 1) Modern Technology for improvement of work efficiency and development of innovative services, making KBank the top regional financial service provider; 2) Scalable Data and Analytics serving as comprehensive tools for enhanced business opportunities and operational efficiency; and 3) Performance-Driven Organization, essential for achievable work plans and measurable outcomes.

Ms. Kattiya added, "KBank is confident that its operations based on the principles of a Bank of Sustainability and the 'Strategy 3+1' will enable the Bank to respond to the prevailing circumstances in a timely and balanced manner, strengthen its business foundation, and provide quality services that meet customer needs, while promoting career growth for employees within the organization. The Bank expects to achieve double-digit return on equity (ROE) by 2026, and to deliver sustainable returns to all stakeholders, and contributing to the prosperity of Thai economy".

KBank's 2024 financial targets focus on prudent growth amid a challenging economic environment.

Under these circumstances, KBank prioritizes prudent growth, focusing on a prudent credit policy, and maintenance of a capital level appropriate for the economic direction. The Bank has therefore set its 2024 financial targets as follows:

• Loan growth of 3-5%, sensible and in line with the economy, focus on growing quality loans in selective recovering sectors, secured loans and regional expansion strategy; continue focusing on asset quality by revamping credit strategy, reinvigorating key capabilities, and enhancing end-to-end transformation. The Bank targets growing corporate loans by 2-4%, SME loans by 1-2%, and retail loans by 1-2%.
• Net Interest Margin (NIM) maintains, in line with interest rate trend and selective loan growth, cost of funds remains high from last year rising interest rate.
• Net fee income growth improved with mid to high-single digit growth, driven by new strategic growth in wealth management business; despite lower conventional transaction fees due to changing consumer behavior.
• Cost to income ratio is expected to stand at low to mid-40s with moderate revenue growth; potential investment to support K-Strategy; continuing cost management and productivity improvements.
• NPL ratio (Gross) less than 3.25%. Stable NPL ratio amid uncertain economic recovery.
• Credit Cost is expected to be in the range of 175-195 bps, with continued prudent financial policy to cover future uncertainties.

Hashtag: #KBank #KStrategy2024 #KASIKORNBANK

https://www.kasikornbank.com/

The issuer is solely responsible for the content of this announcement.

KASIKORNBANK Public Company Limited

KASIKORNBANK Public Company Limited (KBank) was established on June 8, 1945. Over the past 70 years, the Bank has always strived to develop our organization and offer financial product initiatives. KBank operates business in line with the principles of a Bank of Sustainability under good corporate governance and appropriate risk management for the balance of three dimensions - economy, society and environment. Guided by the "Customer Centricity" strategy under our resolution to offer excellence in service, we intend to empower every customer's life and business. Our endeavors are achieved through collaboration and synergy with other companies within KASIKORNBANK FINANCIAL CONGLOMERATE, startup firms and our business partners, under the single brand of KASIKORNBANK.

KASIKORNBANK aims to be the most innovative, proactive, and customer centric financial institution, delivering world class financial services and sustainable value for all stakeholders by harmoniously combining technology and talent.