KK - Phatra

KIATNAKIN-PHATRA FINANCIAL GROUP Analyst Meeting 3Q12

October 30, 2012

KK - Phatra

Table of Contents

KK-Phatra Merger Highlights

Post Transaction

3Q12 Financial Highlight

Appendix

1

KK-Phatra Merger Highlights

KK - Phatra

KK-Phatra Financial Group Structure

3

Erawan Law Office 8 Funds(1)

99.9% 99.9%

99.7% 99.9% 99.9%

Target to transfer from KK to PCAP in 2013(2)

(1) Asia Recovery Fund 1 (99.95%), Asia Recovery Fund 2 (99.59%), Asia Recovery Fund 3 (99.97%),Thai Restructuring Fund (98.91%), Asia Recovery Property Fund 1 (99.50%), Asia Recovery

Property Fund 3 (98.77%), Bangkok Capital Fund (95.72%), and Gamma Capital Fund (94.03%) (2) As 90% tender offer condition was met, KKS will be transferred to PCAP at book value and KK-Fund at acquisition cost

KK - Phatra

KK-Phatra Financial Group Management Structure

4

(1) Includes KKS (2) Includes KK-Fund

Corporate

Lending Retail Banking Distribution Research

Investment

Banking Private Client(1) Investment &

Trading

Fund

Management(2)

Debt Capital

Market

Debt

Restructuring

Priority

Banking

Finance and

Budgeting

Corporate Strategy

Chaired by Mr. Supol Wattanavekin

Chaired by Mr. Banyong Pongpanich

Comprises of 6 members

Mr. Banyong Pongpanich

Chairman of

Commercial Bank

and President

BOD

CEO

Executive

Committee

Chairman of

Capital Market

and President

Risk

Management

Committee

Risk

Management

Commercial Banking

Management

Committee

Other Committees

Private Client Group

Management

Committee

Investment Banking

Group Management

Committee

Other Committees

Office of the Directors and

Corporate Communications

KK - Phatra

Reiterating Transaction Rationales Enhance Competitiveness Amidst Changing Business Environment

5

& Combine Platform of Commercial Bank and

Investment Bank

Combine Capital Strength

Combine Management Expertise

Post Merger Focus

Investment

Banking

Group

Commercial

Banking

Group

3

Private

Client

Group

2

Capital Market Business Commercial Banking Business

1

KK - Phatra

TCAP, 34%

BAY, 20%

SCB, 11%

Tisco, 11%

Toyota Leasing,

15%

KK, 6% KBank , 2%

TCAP, 27%

BAY, 18%

SCB, 14%

Tisco, 13%

Toyota Leasing,

11%

KK, 10%

KBank , 7%

Commercial Banking Group Specialized Retail and SME Bank

Market and Positions

High growth area with decent margin

Focus on segments where large banks do not have clear advantages

over small banks

Hire purchase especially used car segment

Profitable SAM business (NPA Investment)

Corporate Lending focusing on SMEs

Strong position in hire purchase business

Solid relationship with car dealers (over 3,000 dealers throughout the

country)

Strong loan growth of 19.3% in 9M2012 with average yield of 7.2%

and NPL of 1.5% at 9M2012

Focused business model for SMEs (corporate lending) segment

Emphasize on real estate development, apartment, floor plan,

logistics, and printing & packaging sectors

Strong loan growth of 22.1% in 9M2012 with average yield of 8.9%

(8.0% if excluded one time interest income) and NPL of 7.5% at

9M2012

Strong Loan Growth in All Segments

Market Share of HP Players

(1) CAGR from 2006 to 9M12

6

58% 65%

69% 67% 69%

72% 72%

34% 30%

26% 27%

24%

23%

23%

50.9 64.5

80.6 86.6

107.0

135.3

159.9

2006 2007 2008 2009 2010 2011 9M12

Hire purchase Commercial loan Others Total

2006 (THB 477 bn) 1H2012 (THB 1,067 bn)

Market CAGR 16%

1

8% 6%

5% 6%

7%

6%

4%

Loan outstanding, THB billions

+21.0%(1)

KK - Phatra

Commercial Banking Group Specialized Retail and SME Bank

Key Strategies

Retail segment

Continue HP growth momentum while emphasizing more on used car

segment

Explore new areas / segments and add more products – focus on

yield and profitability

Rationalize network strategy

Corporate segment - SMEs

Increase numbers of sectors to focus

Utilize investment banking / capital market knowledge and expertise

to expand

New lending business

Investment banking related lending

Private client lending

Other key strategies

Effective assets & liabilities management, assets recomposition, and

balance between duration and CoF

Improve efficiency

7

1

Gross SME Loans Breakdown by Banks

(1) Estimated by using outstanding loan end of 2011 divided by announced SME lending market share

Note: KTB should have sizable SME loan but data is unavailable

Source: Banks’ analyst presentations

13

30

55

98

101

194

238

383

437

0 100 200 300 400 500 600 700

TISCO

KK

GSB

SME Bank

TMB

BAY

SCB

BBL

KBANK

% of total

loan

Market

share

35.9% 20.0%

26.0% 17.6%

18.2% 10.9%

25.9% 8.9%

25.5% 4.7%

100.0% 4.5%

4.1% 2.5%

20.0% 1.4%

6.6% 0.6%

SME loan outstanding, THB billion

Total SME market is estimated at over THB 2 trillion(1)

KK - Phatra

Private Client Group Leverage on Kiatnakin Bank Customer Base

Markets and Positions

High growth area as domestic wealth accumulation continues –

natural demand for services

High competition but no clear winner in the market

With the merger KK-Phatra will cover the entire spectrum of private

clients, i.e. HNW, Mass Affluent, Retail, etc.

Strong positioning with sizable Asset Under Advise (AUA) at Phatra,

but can even expand more with the range of products offered

Currently concentrate heavily on equity brokerage with combined

market share of 5.7%(1)

Still unable to extract revenue due to limited product variety

Potential Assets Under Advise (AUA)

8

2

50.9 69.6 89.6 75.9 80.6 113.0

134.7 168.9

20.0 (2)

2005 2006 2007 2008 2009 2010 2011 Aug-12

Current Phatra AUA Potential AUA from KK

CAGR not including potential AUA from KK’s clients(3)

+20.3%

AUA, THB billions

(1) Combined market share of Phatra and KKS as of August 2012

Source: Settrade.com

(2) Include equity of insurance companies. Pursuant to Office of Insurance Commission regulation,

all investment of insurance companies must be kept at custodians. Thus, these assets were

transferred to custodians in 1Q09 (3) CAGR from 2005 to 1H2012 (4) As of August 2012

<2 mm 13%

2-10 mm 34%

10-50 mm 30%

>50 mm 22%

Potential Customer

87%

KK’s Deposit Breakdown by Individual Client Segments(4)

Total individual client deposit THB 126.1 bn

Potential AUA from KK’s clients

KK - Phatra

Private Client Group Leverage on Phatra PCG platform to serve clients seamlessly

Key Strategies

Focus on business integration

Client base

Sales force and distribution channels

Products and services

Maintain open architecture model

Focus on high margin product development

Structure products

Off-shore services

Credit enhancement products

To become a core distribution channel for the group

Leverage on Phatra PCG platform to serve clients seamlessly

Leverage from Phatra HNW

Expand to cover Mass Affluent

Improve retail business, leveraging on Phatra’s breath & depth in the

capital market

Plan to use Phatra brand and service platform to tap KK’s HNW clients

base

Integrated Service Model

9

2

High Net Worth

>30 mm

Mass Affluent

3-30 mm Retail

Mid

dle

Phatra Platform KKS Platform

Back

IT / Operation / HR

Fro

nt

Financial Consultants Investment Advisors Sales and online tools

KK - Phatra

Investment Banking Group Full Platform Investment Bank

Markets and Positions

Leading investment bank

#1 equity offering and M&A with share more than 14.3% and 33.5%,

respectively (2005-YTD)

Strong relationship with large Thai corporate (>75% client coverage

by market capitalization of SET 100 companies

Leading institutional brokerage platform

Ranked consistently among top 3

13 years of solid partnership with BofAML

Global market access and internationally recognized research

products

Profitable principal investment business with diversified strategies

and stringent risk control

Arbitrage trading strategies

Systematic trading strategy

Long-term value investment portfolio

General market is still growing with higher volume and new products

introduced into the market

Fierce competition from both existing players and new entries

Undisputed Leader in Equity Offering

Institution Market Share

10.0% 9.4%

11.2% 10.1%

7.5% 8.3%

7.1%

16.6% 14.9%

13.4%

10.5%

12.6% 11.8%

10.7%

2006 2007 2008 2009 2010 2011 9M2012

Foreign Local institution

10

174318334393

484651

796829

952

1,189

CS BofAML MS BLS CIMB KBANK SCB UBS Nomura

11 7 9 5 15 10 9 6 2 2 # Deals

3

Amount, USD millions

IPO&PO 2007 – August 2012

Market share, %

KK - Phatra

Investment Banking Group Capitalize on Bank’s Infrastructure to Setup DCM Franchise and Expand Investment Portfolio

Key Strategies

Establish DCM franchise

Set up Fixed Income and DCM business to complete the franchise

Active portfolio management to enhance yield / reduce negative carry

on AFS and held to maturity portfolio

Cooperation / alliance with foreign partners is essential

Enter Corporate Credit business via Specialized Financing Group

Expand Investment business

Portfolio can be gradually ramped up with enlarged capital and proper

risk management

Arbitrage and systematic trading strategies are conducted at PTSEC,

portfolio sizes are not limited by regulations, but rather depend largely

on market opportunities and risk framework. These 2 portfolio are not

taking directional risks, with position covered almost entirely while

using low leverage

Bond Outstanding as % of GDP

Diversified Investment Portfolio

*Return pre-leverage and pre-operating costs

11

3

0%

20%

40%

60%

80%

100%

120%

140%

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011 0

2,000

4,000

6,000

8,000

Domestic Bond (RHS) Domestic Bond Bank Loans SET

Loan outstanding, THB billions % of GDP

Source: ThaiBMA

Strategies Current Size

(THB millions)

Average Return

(%)

Arbitrage 2,000-3,000 8-12%*

Systematic Trading 1,500 10-14%*

Long-term Investment 1,500-2,000 20-25%

KK - Phatra

240.6 252.1

Post Transaction

12

Enlarged Market

Capitalization

Actual TO of 99.9% at KK

market price

Combined Assets Size

Enlarged asset size from

Phatra’s investment

portfolio

Goodwill from the merger

totaled Baht 4.7 bn

Unit in THB billions

38.7

30.1

Sep 24,12 Sep 25,12

+4.8%

As of September 30, 2012

Market Capitalization

KK-Phatra

11.5

Wattanavekin Family 23.6%

Phatra Management

and Employees

10.3%

Free Float 66.1%

New Shareholding Structure

4.7

Goodwill treatment

Goodwill was the difference between the value of the

compensation transferred (number of KK shares time the

closing share price of KK on the last day of TO period)

and the net value of assets and liabilities as of the

purchase date

Goodwill is not counted as the Bank’s Tier 1 capital

Impairment test of goodwill is required every year at the

same period of each year

Impaired goodwill will be recorded as expense in the

statement of comprehensive income

KK-Phatra

3Q12 Financial Highlight

KK - Phatra 14

14

72% 74% 75% 76% 76% 76% 76% 76% 76%

25% 24%

23% 23%

23% 22% 22%

23% 23%

100.9 107.3 115.1

121.9 130.2 135.7

145.3 154.1

160.3

0

20

40

60

80

100

120

140

160

180

200

3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12

Baht in billion

Retail Corporate SAM Others

7%

6% 7%

4% 7%

7%

6% 4%

Retail Banking (76%)

Auto Hire Purchase (72%)

Growing continuously by 19.3%ytd

Outstanding port of Baht 115,657 million

New : Used = 52:48

NPL increased to 1.5% from 1.0% in 2011

Other retail loans (4%)

Micro SMEs

Personal loan

Housing loan

SME Lending (23%)

RE (Real Estate Development) (12%)

Impressive growth of 16.3%ytd

NPL reduced to 10.7% from 11.6% in 2011

More than 96% of NPL was from loans approved before

2006

SME loans (11%)

High growth of 29.4%ytd

NPL increased slightly to 3.9% from 3.6% in 2011

Gross Loan Composition

Strong Loan Growth in All Segment

KK - Phatra

5.92 5.45 5.28 5.08 5.10 4.97 4.72 4.68 4.87 4.74 5.07 5.22 5.74

7.0% 6.3% 5.9%

5.4% 5.1%

4.6% 4.1% 3.8% 3.7% 3.5% 3.5% 3.4% 3.6%

6.2% 5.6% 5.4% 5.1% 4.8%

4.4% 4.0% 3.7% 3.6% 3.4% 3.4% 3.3% 3.5%

3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12

Classified loan %Classified loan/ gross loan % BOT NPL ratio

Baht in billion

15

Slight asset quality deterioration

Gross Classified Loan

KK - Phatra

RE SAM SME

Coverage ratio was 103%, with outstanding general provision of

Baht 303 million

SAM

NPL ratio was 3.6%, slightly higher relative to 3.4% in 2Q12,

3.5% in 1Q12, partly from flooding impact as well as strong loan

growth throughout the year.

17.6 121.2

Total gross loans (Baht in billion)

19.6 1.4 2.2 0.7 2.1 0.7

Total classified loans (Baht in billion) Collateral Coverage

50.9%

10.7%

1.8% 3.9%

3.6%

SAM

RE Retail

SME

45%

64%

156%

70%

103%

98%

SAM RE

SME Retail

198% 152% 23% 108%

16

(ex. general provision Baht 0.3 billion)

% Classified loans / Gross loans % Reserve / Classified loans

NPL and Coverage ratio

KK - Phatra

Stable yield and cost of fund if excluding lower HP yield in 1Q12 and

high RE yield in 2Q12. Cost of fund remained high from DPA and

FIDF fee, interest rate environment, and deposit competition.

*Earning assets includes net loan, NPA, Interbank & money markets and Investment in loans & properties

NIM = (net interest income) / average earning assets including Interbank, investment in securities, investment in loans, loans net deferred revenue

17

Net Interest Spread Total Income Yield

Income yield climbing from better interest income earning of all lending

businesses as well as greater NPA sale

*

Stable cost of fund

7.8% 8.1%

7.8% 7.7% 7.8% 7.8% 7.3%

8.4%

7.8%

2.8% 2.9% 2.9% 3.1% 3.7% 3.8%

3.8% 4.0% 4.0%

5.0% 5.2%

4.6% 4.3%

3.9%

3.4% 3.0%

3.7%

3.1%

5.1% 5.2% 4.9% 4.7%

4.2% 3.9% 3.5%

4.4%

3.8%

3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12

Interest income on average loan Cost of fund (inc. DPA fee)

NIM Spread on loan

2.8% 2.9% 2.9% 3.1% 3.7% 3.8% 3.8% 4.0% 4.0%

6.9% 7.4%

5.3% 5.5% 5.3%

4.2% 3.9%

4.6% 4.7%

9.7% 10.3%

8.2% 8.6%

9.0%

8.0% 7.7%

8.6% 8.7%

3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12

Cost of fund

Spread on earning assets

Interest income on average earning assets

KK - Phatra 18

7% 4% 5% 3% 5% 7% 11% 14% 13%

55% 62% 52% 42% 39% 36% 35%

41%

58% 22%

18% 27% 35% 40% 42%

38%

25%

13%

12% 12%

13% 13%

11% 11%

13%

15%

12%

108.4 114.4

125.7

144.2 156.6 160.3

171.6

192.9

205.2

0

25

50

75

100

125

150

175

200

3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12

Baht in billion

CASA Fixed Deposits B/E Debentures Interbank

Deposits grew strongly mainly from converting BE

to term-deposits once the BoT implemented the

FIDF fee charged on deposits, BE and debentures

from all banks

CASA mix was 13% of total interest bearing debt,

while term-deposit portion increased to 58% from

BE conversion.

Newly issued short-term debentures during 3Q12

were Baht 1,535 million

Liabilities duration was 0.6 year, duration gap was

1.2 year

Interest Bearing Debt

Funding mix shifting to deposits

KK - Phatra 19

Income breakdown – 9M12

AM 2%

SAM 29%

Bancassurance 25%

Brokerage Fee 14%

Bank Fee 12%

Investment 14%

Other 6%

Interest Income Breakdown Non-Interest Income Breakdown

HP 55%

Other retail 5%

RE 13%

SME 9%

SAM 6%

Others 12%

Appendix – Corporate Performance

KK - Phatra 21

Baht in million 3Q12 YoY

Consolidated Results

3Q11 2Q12 9M12 QoQ 9M11 YoY

Interest income 3,789 3,061 24% 3,741 1% 10,543 8,205 28%

Interest expense 2,007 1,384 45% 1,820 10% 5,413 3,288 65%

NII 1,782 1,676 6% 1,921 (7%) 5,129 4,917 4%

Fees income 616 438 41% 501 23% 1,571 1,136 38%

Fees expense 66 49 35% 50 30% 166 109 52%

Net fees income 551 389 41% 450 22% 1,405 1,027 37%

Other operating income 701 470 49% 365 92% 1,421 1,240 15%

Total operating income 3,033 2,536 20% 2,735 11% 7,955 7,183 11%

Operating expense 1,507 1,059 42% 1,212 24% 4,047 3,443 18%

Impairment loss (427) (372) 15% (560) (24%) (1,143) (812) 41%

Income before income tax 1,099 1,104 (0%) 963 14% 2,765 2,928 (6%)

Net income -Bank 928 860 8% 818 13% 2,323 2,242 4%

Diluted EPS 1.36 1.35 1% 1.28 6% 3.58 3.54 1%

ROAA (%) excl Goodwill 1.6% 1.9% 1.5% 1.4% 1.8%

ROAE (%) excl Goodwill 15.0% 14.5% 13.2% 12.7% 13.1%

ROE (%) excl Goodwill 15.3% 15.7% 13.5% 12.8% 13.7%

CI - Bank 853 754 13% 908 (6%) 2,230 2,046 9%

ROAA (%) excl Goodwill 1.4% 1.7% 1.7% 1.3% 1.7%

ROAE (%) excl Goodwill 13.8% 12.7% 14.7% 12.1% 12.0%

ROE (%) excl Goodwill 14.1% 13.8% 15.0% 12.3% 12.5%

KK - Phatra

Efficiency ratio

22

Total income ratio

1/(Operating expense excl. Loss from fair value adjustment) / Net revenue

*Earning assets includes net loan, NPA, Interbank & money markets and Investment in loans & properties

**Excluding extraordinary item resulting from the legal issue with the Legal Execution Department

Cost to earning assets

Operating cost to earning assets remained the same below 1%

**

0.8% 0.9%

0.8% 0.7% 0.7%

0.8%

0.7%

0.6% 0.6%

3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12

45.3%

52.4% 48.8%

45.4%

59.4% 60.5%

45.3%

48.4%

4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12

Cost to Income1 Cost to Earning Assets*

Cost to income ratio fluctuated in late 2011 -mid 2012 due to

flooding impact on both interest income and SAM business as well

as more branch opening.

**

KK - Phatra 23

Loan to Deposit Ratio

As KK’s funding structure relies on both deposit and borrowing, loan to

deposit & borrowing is a better measure of KK’s liquidity

96.8% 96.8% 93.6% 91.2% 87.2% 87.6% 88.0% 84.5% 81.0%

149.9% 141.9%

159.3%

186.8% 190.5%

196.6%

186.6%

144.5%

109.4%

3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12

Loan to deposit & borrowing

Loan to deposit

Liquidity

Loan to Deposit & Borrowing Ratio

KK - Phatra 24

14.6 16.9

18.8 20.2

21.9 22.3 22.3 23.0 22.6

27.3

15.42%

16.29%

15.18% 15.36%

15.76% 15.50% 15.42%

15.10%

14.01%

15.03%

14.93%

15.69%

14.55% 14.72%

15.09% 14.83% 14.73%

14.40%

13.32%

14.39%

2008 2009 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12

Total Capital CAR Ratio Tier I Capital Ratio Baht in million

Total capital increased from the success of

Tender Offer totaling 99.93% of Phatra shares at

the swap ratio of 1 Phatra: 0.9135 KK, equaled

to KK newly issued 191,979,745 shares.

Goodwill is not included in the Tier 1 capital in

accordance with the BoT

If including 9M12 net profit:

CAR ratio = 15.37%,

Tier 1 ratio = 14.72%

CAR Ratio and Tier 1 Ratio

High quality capital (common equity)

Appendix – Retail Banking

KK - Phatra 26

Highlights

Outlook

HP loans grew by 19.3%ytd, with 4.3%

penetration rate for 9M12 with industry car

sales up 48.9%yoy

Emphasize more on used car segment, and

continue strong loan growth supported by

government subsidy program and auto sale

resume

Expect yield to remain high with support

from used car HP loan portion

classified loan increased to 1.5%, partly

from flood-affected clients, strong HP loan

growth, and more used car HP lending

Keep conscious in screening & monitoring

portfolio to control NPL level

Loan yield got back on track due to both new

loan booking and the termination of flooding-

relieved scheme

Trend and Outlook

Baht in billion Baht in billion

92.3 96.9

104.6 110.8

115.7

3Q11 4Q11 1Q12 2Q12 3Q12

5% 8%

6% 4%

1.62 1.67 1.74 1.99 2.08

7.2 7.1

6.9

7.4 7.3

3Q11 4Q11 1Q12 2Q12 3Q12

206%

233%

203% 192%

182%

1.0% 1.0% 1.2%

1.4% 1.5%

3Q11 4Q11 1Q12 2Q12 3Q12

% Coverage ratio % Classified loans

HP : rapid growth with slight increase in NPL

Loans Loan Yield Portfolio Quality

KK - Phatra

HP portfolio breakdown

27

by location by class by car type

Portfolio characteristic

*Others includes vans and trucks.

*

Non-BKK 77%

BKK 23%

Used cars 48%

New cars 52%

Sedans 36%

1 ton pick-up vans

52%

Others 12%

by location by class by car type

KK - Phatra 28

% loan yield Baht in billion % Coverage ratio

% Classified loans %

Baht in billion Personal Loans Housing Loans Micro SMEs Loans

48% 49% 49% 50% 60%

25% 24% 24% 23% 9%

6.1 6.3 6.3 6.3

5.5

3Q11 4Q11 1Q12 2Q12 3Q12

20% 23% 26% 27%

31%

2% 0% 0%

-12%

0.18 0.19 0.19 0.19 0.19

12.0 12.1 11.9 12.0

13.1

3Q11 4Q11 1Q12 2Q12 3Q12

5.5% 6.2% 6.8% 7.2% 8.3%

51%

84%

72% 69%

57%

3Q11 4Q11 1Q12 2Q12 3Q12

Other Retail Loans : Steady stage

Trend and Outlook

Loans Loan Yield Portfolio Quality

Appendix – Wholesale Banking

KK - Phatra

RE: Yield jumping with better asset quality

30

% RE loan yield Baht in billion %

Highlights

Outlook

RE loan grew by 16.3%ytd from new

clients and provincial areas expansion

Loan yield jumped in 2Q12 from successful

restructured loan, dropped in 3Q12 from soft

loan scheme

Slightly asset quality deterioration from

restructured RE loan

Policy to manage and control credit quality

and reduce classified loans

Expect yield to continuously improve from

success in debt restructuring

Trend and Outlook

% Coverage ratio

% Classified loans

Thailand flooding in 2011 has affected

lower demand in real estate sector.

Baht in billion

16.5 16.9 17.7

19.0 19.6

3Q11 4Q11 1Q12 2Q12 3Q12

2% 5%

7% 3%

0.36 0.39 0.36

0.61

0.39

9.0 9.4 8.4

13.2

8.0

3Q11 4Q11 1Q12 2Q12 3Q12

28%

64% 65% 70%

64%

13.8% 11.6% 11.1% 10.1% 10.7%

3Q11 4Q11 1Q12 2Q12 3Q12

Loans Loan Yield Portfolio Quality

KK - Phatra 31

by location by class

Portfolio characteristic

Greater BKK 65%

South 22%

East 10%

Northeast 1%

Central 1% North

1%

SDH/TH 72%

Residential Condo 28%

by location by class

RE portfolio breakdown

KK - Phatra

SME: Beautifully growing business

32

Loans

% SME loan yield Baht in billion Baht in billion

% Coverage ratio % Classified loans

%

Highlight

Outlook

Portfolio continued to grow in all

segments.

Expect yield to remain high with better

asset quality once the SME sector steadily

grows upon the strong economy.

Interest income declined due to soft loan

program.

Change in NPL classification in 3Q11 for

Apartment lending. NPL was normally under

control but slightly increased from apartment

lending.

Cautious credit screening across portfolio

Trend and Outlook

Apartment Logistics

Floor Plan Printing & Packaging

SME clients who had been affected by

the flood were able to resume and .

44% 42% 40% 40% 38%

29% 30% 31% 30% 31%

19% 20% 20%

22% 23%

7% 8% 8%

8% 8%

13.0 13.6 14.7

16.3 17.6

3Q11 4Q11 1Q12 2Q12 3Q12

11%

5% 8%

8%

0.26 0.28 0.24

0.32 0.34

8.5 8.4

6.9

8.3 8.1

3Q11 4Q11 1Q12 2Q12 3Q12

43%

75% 79%

82%

70%

4.0% 3.6% 3.6% 3.6% 3.9%

3Q11 4Q11 1Q12 2Q12 3Q12

Loans Loan Yield Portfolio Quality

Appendix – SAM Business

KK - Phatra

SAM: KK’s cash cow business

34

Financial claim loans Foreclosed assets

Interest income from investment in loans Gain from NPA sale

Highlight Outlook

Asset declined from

every part of

business

Target to manage

down portfolio within

the next 2-3 years by

loan restructuring

and sales of

foreclosed asset

Interest income

swings depending on

negotiation and

success of litigation

process

Expect slow income

flow from both

interest income and

gain on NPA sales

Trend and Outlook

NPA sale target of

Baht 3.5 billion in

2012

-6.5% -17.5% Loan restructuring

was on progress

NPA total sale was

Baht 942 million in

3Q12 and Baht

2,181 million in

9M12

-11.8% -12.4%

Investment in loans

Interest income from Financial claim loans

13.5 11.8

2011 3Q12

Assets including RE

Baht in billion

Total assets

6.1 5.4 5.3 5.2 5.0

3Q11 4Q11 1Q12 2Q12 3Q12

42%

1.8 1.6 1.5 1.4 1.4

3Q11 4Q11 1Q12 2Q12 3Q12

12%

45%

7.0 6.5 6.2 5.9 5.4

3Q11 4Q11 1Q12 2Q12 3Q12

601

736

3Q11 3Q12

Income

Baht in million

Total income

7.6%

328 267

118

225

444

3Q11 4Q11 1Q12 2Q12 3Q12

240 188 159 164

258

3Q11 4Q11 1Q12 2Q12 3Q12

22.5%

2.1%

33 49 25 36 34

3Q11 4Q11 1Q12 2Q12 3Q12

5%

35.4%

60%

35%

KK - Phatra

SAM: foreclosed asset with significant value buffer

35

Highlight and

outlook

Financial claim loans

Assets

Sales (YTD)

Portfolio quality

Appraised value of foreclosed assets significantly higher

than book value; this is reconfirmed by the sales value

being consistently higher than book value of assets sold

NPL has been sliding downward; however, restructuring

loans has to be regulatory classified as loans.

Baht in billion

Baht in billion

Trend and Outlook (Cont’d)

*includes the value of NPA under Bangkok Capital Fund and Gamma Capital fund, in which KK purchased investment units of these two funds in 1Q10

% Coverage ratio % Classified loans

*

7.2 7.7 6.5 5.4

12.6 13.8 12.3

10.9

2009 2010 2011 3Q12

Book value

Appraised value

63%

50% 48% 48%

40%

48%

54%

46% 45%

25%

43%

41%

46%

45%

57% 55% 52% 51%

3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12

1.9 2.5 2.3

1.4

3.0

4.0

3.0 2.0

3.0 4.0

3.2 2.2

2009 2010 2011 3Q12

Book value

Appraised value

Sold Value

Foreclosed assets (including RE) Financial claim loans

9M12

9M12

KK - Phatra

Foreclosed assets* sold and appraised value

36

Baht in million

*Includes foreclosed assets from RE business

Trend and Outlook (Cont’d)

Year Assets sold Appraised value Sold/Appraised

2000 192 212 91%

2001 458 405 113%

2002 1,521 1,340 114%

2003 2,819 2,839 99%

2004 878 913 96%

2005 593 617 96%

2006 738 685 108%

2007 1,960 1,850 106%

2008 2,973 2,686 111%

2009 2,959 2,970 100%

2010 3,958 3,957 100%

2011 3,262 3,065 106%

9M12 2,181 1,961 111%

Total 24,491 23,499 104%

KK - Phatra

Foreclosed assets breakdown

Portfolio characteristic

37

by location by class

Greater BKK 60%

South 5%

East 5%

Northeast 3%

Central 16%

North 10%

Housing 32%

Lands 62%

Residential Condo

6%

by location by class

KK - Phatra

Investor Relations Kiatnakin-Phatra Financial Group

KIATNAKIN BANK PUBLIC COMPANY LIMITED

209/1, K Tower B, 31st Floor.,

Sukhumvit 21 (Asoke)

Klongtoey-nua, Wattana

Bangkok 10110

Tel. (662) 841-5925

Fax: (662) 841-5529

E-mail : investor_relations@kiatnakin.co.th

http://www.kiatnakin.co.th

Disclaimer: This presentation contains some information from other sources, KK and PHATRA cannot confirm, in all cases, the accuracy and completeness of

such data, particularly where the data sourced from outside the Group. 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.

38