BAAC serves a loan, a retirement pension, payable for retirees for up to 40 years. Intentions can be submitted at all BAAC branches starting today.

Mr. Chatchai Sirilai, Manager of the Bank for Agriculture and Agricultural Cooperatives (BAAC), revealed that the bank serves a retirement pension loan for retirees. The first-year interest rate is only 3.59%. You can borrow up to 100% of the retirement pension, to be paid over 40 years.

Retirement pension loan for retirees who receive a monthly pension and pension. Use it for daily expenses and other necessary expenses, including reducing the problem of relying on informal debt with unfair interest rates for a better quality of life. The maximum loan amount per person is 100% of the retirement pension certificate. The first year's interest rate is MRR minus 3.285% per year, currently only 3.59%, and the second year onwards is MRR minus 2.275% per year.

In order to improve the quality of life for retired civil servants, to increase liquidity for financial security and to be happier in their retirement years, both now and in the future, BAAC has launched a special low-interest retirement loan. The first year is MRR minus 3.285% per year (currently the MRR interest rate is 6.875%) or currently only 3.59% per year, and the second year onwards is MRR minus 2.275% per year. Low installment payment

"The interest is calculated on a reducing principal and interest basis, with a maximum repayment period of no more than 480 installments or up to 40 years. The maximum loan amount is 100% of the value of the retirement pension certificate. The loan is for retirees who receive a monthly pension and gratuity, are not bankrupt, and have received a retirement pension certificate. To be used as collateral for loans, to be used for daily expenses as necessary," said Mr. Chatchai.

Such as paying off informal debts with high interest rates, healthcare expenses, investment expenses to increase income, and multipurpose expenses, or in the event of other emergencies, so that the borrower can have a better quality of life.

Those interested can notify their intention to apply for a loan by using their ID card and a copy of the certificate of the right to inheritance benefits to be used as collateral for the loan from today onwards at all BAAC branches nationwide or inquire for more information at the Call Center at 02 555 0555.

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Ms.Kattiya Indaravijaya, Chief Executive Officer of KASIKORNBANK, said the Thai economy in 2024 exhibited signs of a K-shaped recovery, with growth varying significantly across sectors despite a slight overall improvement when compared to 2023. While the tourism sector and some export categories, particularly those benefiting from the technology cycle, showed strong growth, industrial production, private investment, and household spending remained weak amid ongoing pressures from competitiveness issues, limitations in purchasing power at home and abroad, and hefty household debt. For 2025, Thailand's economic recovery will likely face several challenges. These include uncertainties surrounding US economic policies, geopolitical risks, China's economic slowdown, issues in the manufacturing sector and high private debt. These structural problems will require significant time to address.

Amid various challenges, KBank and its subsidiaries remains committed to deliver sustainable value to all stakeholders through the execution of K-Strategy 3+1 with continued focus on productivity improvement and responsible lending guidelines. This includes delivering sustainable returns to shareholders, providing appropriate support to customers in various aspects, including participation in the government initiatives to enable customers to sustain their livelihoods and businesses.

In the fourth quarter of 2024, KBank and its subsidiaries reported operating profit before expected credit loss and income tax expense of Baht 25,513 million, a decrease of Baht 1,665 million or 6.13% from the third quarter of 2024.Net operating income was Baht 48,685 million, an approximate level to the previous quarter. Other operating expenses was Baht 23,172 million, an increase of Baht 1,671 million or 7.77% due to seasonality. Additionally, expected credit loss (ECL) was Baht 12,242 million, an increase of Baht 590 million or 5.06% from the previous quarter, in line with the Bank’s ongoing prudent approach that ECL remained at an appropriate level to support the economic uncertainties. As a result, net profit for the fourth quarter of 2024 was Baht 10,494 million, a decrease of Baht 1,471 million or 12.30% from the previous quarter.

KBank and its subsidiaries reported operating profit before expected credit loss and income tax expense for the year 2024 of Baht 110,673 million, an increase of Baht 2,988 million or 2.77% from the previous year. Net operating income was Baht 197,946 million, an increase of Baht 5,293 million or 2.75% as a result from the Bank’s strategic execution and business volume expansion. Other operating expenses for 2024 was Baht 87,273 million, an increase of Baht 2,305 million or 2.71% from the previous year. Cost to income ratio for year 2024 stood at 44.09%, similar level to last year due to the focus on effective cost management and continuous productivity improvements. Although, ECL decreased by 8.85% from the previous year, the Bank and its subsidiaries continue to prudently set aside ECL in each quarter to support various uncertainties including the slow economic recovery. As a result, net profit for the year 2024 was Baht 48,598 million, an increase of Baht 6,193 million or 14.60% from the previous year.

Net interest income was Baht 149,376 million, a slight increase of Baht 932 million or 0.63% from the previous year partly due to limited loan growth in line with the economic situation and the enhancement of credit underwriting processes to ensure quality lending. Net interest margin ratio stood at 3.64%, a slight decrease from the previous year. Non-interest income was Baht 48,570 million, an increase of Baht 4,361 million or 9.86% mainly due to increased fee income from customer’s wealth management service through the offering of comprehensive financial products from the Bank and its subsidiaries, as well as partners. Additionally, there was an increase in gains from financial instruments measured at fair value through profit or loss and investment income, along with increased revenue from foreign transactions which were in line with the recovery of tourism.

Other operating expenses was Baht 87,273 million, an increase of Baht 2,305 million or 2.71% from the previous year. This increase was at a lower rate compared with the growth rate in year 2023, due to the focus on effective cost management and continuous productivity improvements. The increase in other operating expenses were mainly from employee expenses, marketing expenses in line with the expansion of business volume and IT-related expenses to support the expansion of customer service channels.

As of 31 December 2024, KBank and its subsidiaries’ total assets were Baht 4,325,287 million, an increase of Baht 41,731 million or 0.97% over the end of year 2023. Net loans were Baht 2,390,187 million, an increase of Baht 18,695 million or 0.79% in line with the slow economic recovery and the enhancement of credit underwriting processes to ensure quality lending, in accordance to the Bank’s policy of prudently and effectively managing assets quality. Notably, corporate loans continue to demonstrate growth. Deposits were Baht 2,718,675 million, an increase of Baht 19,113 million or 0.71%. NPL gross to total loans was 3.18%. The Bank continues to closely monitor and manage loans quality with prudence to provide appropriate support to customers and improves the process to enhance debt collection efficiency. Additionally, ECL was adequately set aside with a prudent approach, resulting in coverage ratio increasing to 153.27%. As of 31 December 2024, KASIKORNBANK FINANCIAL CONGLOMERATE’s capital adequacy Ratio (CAR) according to the Basel III Accord remained strong at 20.25%.

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Thailand’s economy in 2024 continued to grow steadily, driven primarily by the recovery of tourism and exports. The number of international tourists has soared due to visa exemption measures and tourism promotion activities. Exports have also maintained strong growth, especially in electronics, agricultural products,

and agro-manufacturing goods, bolstered by the recovery of the global economy which will provide momentum for further growth in 2025. However, several challenges remain to be monitored including trade barrier measures from major trading partners, fluctuations in energy and commodity prices stemming from international conflicts, and the high level of household debt, which could undermine long-term economic stability.

While the Thai economy is on a positive trajectory, it still faces several challenges. These include the intensifying impact of climate change, which requires businesses to adhere to international environmental policies and standards. The rapid advancement of technology and new innovations is driving businesses to adjust

to match with the digital age. In addition, external competition and increasing uncertainty in the future, particularly the policies of major economies, pose further challenges. Bangkok Bank, as a ‘trusted partner and reliable close friend,’ continues to focus on supporting customers with both financial resources and knowledge that keep pace with changes in the modern business world. The Bank also aims to enhance customers’ competitiveness in the dynamic technological landscape and prepare them to conduct business under the principles of environmental sustainability. Additionally, the Bank supports customers to tap into opportunities to expand

their businesses internationally. At the same time, the Bank places importance on prudent management, together with adhering to responsible lending guidelines with an emphasis on social responsibility and sustainable growth.

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