Krungsri accelerates growth with "GO ASEAN with Krungsri" strategy Strengthening collaboration across Krungsri-MUFG networks and partnerships to propel ASEAN expansion

Miss Pathatai Kulachan, Krungsri Head of ASEAN Business Group, said, "Krungsri has set a medium-term business plan with the aspiration to become the leading sustainable and regional bank. Our ASEAN business is a vital pillar of the Bank's strategy. Krungsri currently operates six overseas subsidiaries spanning five ASEAN countries, including five consumer finance businesses and one commercial banking business, with a combined customer base of approximately 19 million. This robust presence, combined with Krungsri's leadership in loan business, strong network of overseas subsidiaries, and strategic partnerships can collaborate to drive meaningful growth for Krungsri in the future."

Miss Pathatai also highlighted Krungsri's progress in expanding its footprint in Vietnam through SHB Finance. This acquisition plan is advancing ahead of schedule, while Krungsri has submitted a proposal to acquire the remaining 50% of stake in early November. Pending regulatory approval, the acquisition is expected to be completed by mid-2025, earlier than the anticipated proposed acquisition of the remaining 50% in 2026 (or three years after the initial capital transfer). Therefore, this reflects Krungsri's confidence in Vietnam's market potential and its commitment to strengthening its ASEAN presence.

Krungsri has consistently driven ASEAN growth by leveraging its strengths to build a robust Krungsri ecosystem while fostering continuous collaboration with key partners, as outlined below:

• Krungsri has leveraged the strength of its domestic and international networks, including MUFG's global credibility, to secure competitive advantages for its subsidiaries. For instance, Krungsri and MUFG's strong credit ratings from leading agencies have enabled subsidiaries to access low cost funding, enhancing their ability to compete effectively in the market.
• As a leader in the loan business in Thailand, Krungsri shares its extensive knowledge, expertise, and proven success in consumer finance - particularly through Krungsri Auto and Krungsri Consumer - with its overseas subsidiaries. This transfer of expertise supports the development of innovative financial products tailored to meet diverse customer needs across ASEAN, driving business transformation and revenue growth.
• Krungsri also emphasizes strategic partnerships to expand its ASEAN customer base. Through the ASEAN Privilege program, Krungsri has built alliances with key partners such as King Power and The Mall Group, offering lifestyle and shopping benefits to ASEAN tourists in Thailand. Additionally, Krungsri is set to announce collaborations with leading hospital groups in Thailand, aiming to expand access to the country's renowned healthcare and medical services, which are domestically attractive and strong sectors, to reach more ASEAN customers.

"Based on our previous business directions, Krungsri's ASEAN business has made significant strides, with SME and retail customer segments driving loan portfolio growth in 2024. The ASEAN business now contributes 5% of total loans and 20% of its total income, with an impressive Net Interest Margin (NIM) of 23.2%," Miss Pathatai stated.

Looking ahead of 2025, Krungsri will focus on three strategic priorities:

1. Business transformation for stable growth: Align strategies with local market conditions, including enhancing branch efficiency and accelerating the expansion of Hattha Bank's mobile application user base.
2. Strengthening revenue streams: Expanding product offering and retaining customer loyalty, such as supporting Home Credit Philippines and Home Credit Indonesia in maintaining their top leadership among businesses. New business models are also being introduced to reach untapped customer segments, such as expanding into the credit card market with SHBF and offering insurance through Bancassurance by Hattha Bank.
3. Boosting productivity and efficiency: Implementing Robotic Process Automation to streamline operations, reduce costs, and enhance the functionality of existing mobile apps, ensuring greater accessibility and enabling more effective customer base expansion.

"Krungsri continues to reaffirm its commitment to fostering inclusive growth across ASEAN, ensuring that local customers in each market have access to a wide range of innovative financial solutions tailored to their unique needs. At the same time, this strengthens regional connectivity, in line with our "GO ASEAN with krungsri" strategy," Miss Pathatai concluded.