to certain groups of customers and limited growth in some types of loans amid an uneven economic recovery. In addition, net fees and service income of the banking system continued to enjoy steady

Economic Growth Sources: Office of the National Economic and Social Development Council and Ministry of Commerce *Projection by KResearch Ye ar -o n- Ye ar C ha ng e (p er ce nt ) 2 1.2 Banking Industry

come due, and/or an inability to convert assets into cash. Liquidity in the banking system during 2019 was ample due to slower growth of net loan; in fact, deposits saw stronger growth than loans

Competition Commercial banks’ overall performance in the first quarter of 2018 was better than what was seen in the previous quarter while also sustaining growth over-year. Net interest income in the banking

strong across-the-board growth. The business sector remained challenged by new modes of competition amid the advancing digital age and the rapid pace of technological advancement, together with the

generating new opportunities to increase revenues. In terms of customer base expansion, financial innovation has created new forms of financial services which enable banks to explore new business opportunities

- and long-term, to ensure that we continue to adopt proper fund-raising strategies. 2.4 Digital Risk Management KBank aims to maintain our growth and our market leadership in digital banking services in

E_1 Legal_FA_2015_12_29-c A FFeeCCoorrppLL44..11hhiigg A Executive Summary Management Discussion and Analysis For the Quarter Ended September 30, 2017 The Thai economy maintained steady growth in the

Global and Thai Economy in the Third Quarter of 2019 1 1.2 Banking Industry and Competition 2 1.3 Significant Regulations and Rules related to Business Operations 2 2. Risk Management and Risk Factors 5

maintained its growth momentum. Similarly, Thailand’s major economic indicators continued to exhibit growth, as evidenced by brighter exports, government spending and private spending on certain items of