Pillar 3 Disclosures
31 March 2024

Sumitomo Mitsui Trust Bank (Thai) Public Company Limited

Pillar 3 Disclosure
March 31st, 2024

Sumitomo Mitsui Trust Bank (Thai) Public Company Limited1

Pillar 3 Disclosures
31 March 2024

Contents
1.

Scope of Application ............................................................................................................................ 32.

Key Prudential Metrics ........................................................................................................................ 3

3.

Capital .......................................................................................................................................................... 5

3.1

Capital Structure .................................................................................................................................... 5

3.2

Capital Adequacy ................................................................................................................................... 5

4. Risk Exposure and Assessment ............................................................................................................ 7
4.1 Qualitative Disclosures ........................................................................................................................... 7
4.2 Qualitative and quantitative disclosure for each type of risk .......................................... 12
4.2.1 Disclosure of credit risk information ............................................................................. 12
4.2.2 Disclosure of market risk information .......................................................................... 26
4.2.3 Disclosure of operational risk information ................................................................. 29
4.2.4 Disclosure of interest rate risk in the banking book ............................................. 30
5.

Additional disclosure of capital information under the BCBS guideline(Composition of capital disclosure requirements) ......................................................................... 33
6.

Liquidity Coverage Ratio .................................................................................................................. 34

6.1

Liquidity Coverage Ratio and Disclosure Standard ........................................................... 34

6.2

LCR Qualitative Disclosure ............................................................................................................. 34

6.3

LCR Quantitative Disclosure .......................................................................................................... 35

Sumitomo Mitsui Trust Bank (Thai) Public Company Limited2

Pillar 3 Disclosures
31 March 2024
Introduction
Sumitomo Mitsui Trust Bank (Thai) Public Company Limited (the “Bank”), is incorporated in Thailand. The ultimate
parent company during the financial year/period was Sumitomo Mitsui Trust Holding, Inc. and the Bank’s major
shareholders and the immediate parent company during the year/period is Sumitomo Mitsui Trust Bank, Limited(99.99% shareholding). Both companies were incorporated in Japan. The formation of the Bank was registered with
Department of Business Development, Ministry of Commerce on July 7th, 2014. The Bank obtained its banking license
on August 14th, 2015, and commenced operating as a bank on October 28th, 2015.

All quantitative disclosures are reported in Million Baht.

1.

Scope of Application

With pursuant to the BOT notification no. SorNorSor 04/2556 Re: Capital Disclosure Requirements for Commercial
Banks and SorNorSor. 14/2562 Re: Capital Disclosure Requirements for Commercial Banks (No.2), the Bank is required
to disclose capital maintenance function based on ‘Solo basis’. The Bank discloses this report under the Bank’s website
at www.smtb.jp/smtbthai/

2.

Key Prudential Metrics

Bank of Thailand requires the Bank to disclose the key prudential metrics in respect of both capital and liquidity. The
key prudential metrics is reflected the provisioning impact from Thai Financial Reporting Standard No.9 (TFRS 9) which
effective on the Bank’s accounting periods beginning from April 1st, 2020.

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31 March 2024
Table 1: Key Prudential Metrics
Item

31 March
2024

30 September
2023

Available capital (unit: million baht)
1
1A
2
2A
3
3A

Common equity tier 1 (CET1)
Fully loaded ECL1/ CET1
Tier 1
Fully loaded ECL tier 1
Total capital
Fully loaded ECL total capital

20,516.66
20,516.66
20,516.66
20,516.66
20,932.05
20,932.05

20,181.04
20,181.04
20,181.04
20,181.04
20,542.31
20,542.31

77,263.74

79,135.67

26.55
26.55
26.55
26.55
27.09
27.09

25.50
25.50
25.50
25.50
25.96
25.96

2.50
2.50

2.50
2.50

18.59

17.46

16,547.23
6,416.69
257.8814,819.02
7,960.96
186.15

Risk-weighted assets (unit: million baht)
4

Total risk-weighted assets (RWA)

Risk-based capital ratios as a percentage of RWA (%)
5
5A
6
6A
7
7A

CET1 ratio
Fully loaded ECL CET1 ratio
Tier 1 ratio
Fully loaded ECL tier 1 ratio
Total capital ratio
Fully loaded ECL total capital ratio

Capital buffer ratios a percentage of RWA (%)
8
9
10
11

Conservation buffer ratio
Countercyclical buffer ratio
Higher loss absorbency ratio
Total capital buffer ratio (the sum of Item 8 to Item 10)
Ratio of CET1 available after meeting the commercial bank's minimum
12
capital requirements 2/
Liquidity coverage ratio (LCR)
13
14
15

Total high-quality liquid assets (Total HQLA) (unit: million baht)
Total net cash outflows (within a 30-day period) (unit: million baht)
LCR ratio (%)

1/ Expected credit losses according to the Thai Financial Reporting Standard No.9 - Financial Instruments
2/ CET1 ratio remaining after maintaining the minimum capital is not necessarily equal to the difference between CET1 ratio in items
no.5 with minimum CET1 ratio requirement at 4.5% since CET1 ratio may be included in minimum Tier 1 ratio requirement at 6%
and/or minimum total capital ratio requirement at 8.5%.

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3.

Capital

3.1

Capital Structure

In this section, it covers the disclosure of the Bank’s capital structure and capital adequacy.
As of March 31st, 2024, the Bank’s capital component comprises Common Equity Tier 1 (CET1) capital 20,516.66 Million
Baht, there is no additional tier 1 capital. And Tier 2 capital is 415.39 Million Baht. The Bank maintains regulatory capital
20,932.05 Million Baht in total.
Table 2: Capital of Locally-Registered Commercial Banks
Unit: Million Baht
Item Details

30 September
2023

20,516.66

20,181.04

CET120,516.66

20,181.04

1.1.1 Paid-up capital (common stock) deducted by buyback of common stock

20,000.00

20,000.00

39.73

39.73

1,032.87

757.11(101.33)(216.75)--(454.61)(399.05)

415.39361.27415.39361.27

20,932.05

20,542.31

1. Tier 1 capital
1.1

31 March2024

1.1.2 Legal reserves
1.1.3 Net profits after appropriated1.1.4 Other items of owner’s equity:• Accumulated other comprehensive income• Other items from owner changes
1.1.5 Items to be deducted from CET1:• Total amount of items to be deducted from (e.g. net losses, intangible
assets, deferred tax asset and other)
2. Tier 2 capital
2.1

General provision

Total regulatory capital

Based on the BOT notification no. SorNorSor 22/2562 Re: Guidelines on Holding of Minimum Provisions for Financial
Institutions and Financial Business Groups, the Bank shall hold the minimum provision (provision floor) at 1.00% or
896.08 Million Baht at the end of March 31st, 2024. However, the Bank has shortfall provision by 462.55 Million Baht
which will be deducted from CET1 and treat this shortage as general provision in the same period of retained earnings
after apportion in tier 1 capital according to the resolution of shareholders’ general meeting or company’s regulations.

3.2

Capital Adequacy

Risk Management Department carries out monitoring of capital adequacy ratio plans by monitoring the status of riskweighted asset amounts and capital adequacy ratio on a monthly basis. In particular, Risk Management Department
monitors that such events as a significant impact on the capital adequacy ratio have not been occurred. In cases where
the required capital levels are reviewed due to changes in the strategic targets, risk profile and external businessconditions, Risk Management Department examines the need of revising capital adequacy ratio plans as necessary.
The Bank applies Standardised Approach for credit risk weighted assets calculation as well as market risk weighted
assets calculations. For operational risk, the Bank has applied Basic Indicator Approach (BIA) in calculation ofoperational risk weighted assets.

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As of March 31st, 2024, the Bank has minimum capital requirement for to absorb each risk under Pillar 1 based on thecalculation method specified as above as shown in below table.
Risk type

Unit: Million Baht
Minimum capitalrequirements

Credit risk

6,372.95

Market risk

63.54

Operational risk

130.93

Table 3: Minimum capital requirement for credit risk classified by type of assets under the SA
Unit: Million Baht
Minimum capital requirement for credit risk classified by type of assets under the SA

31 March
2024

30 September
2023

Performing claims:
1. Claims on sovereigns and central banks, multilateral development banks (MDBs), andnon-central government public sector entities (PSEs) treated as claims on sovereigns
2. Claims on financial institutions, non-central government public sector entities (PSEs)
treated as claims on financial institutions, and securities firms
3. Claims on corporates, non-central government public sector entities (PSEs) treated asclaims on corporate
4. Other assets
Total minimum capital requirement for credit risk--

369.61

533.43

5,992.66

6,036.18

10.68

11.61

6,372.95

6,581.23

Table 4: Minimum capital requirement for market risk (SA)
Unit: Million Baht
Minimum capital requirement for market risk (positions in the trading book)

31 March
2024

30 September
2023

1. Standardised method

63.54

19.81

Total minimum capital requirement for market risk

63.54

19.81

Table 5: Minimum capital requirement for operational risk (BIA)
Unit: Million Baht
Minimum capital requirement for operational risk

31 March
2024

30 September
2023

1. Basic Indicator Approach

130.93125.49Total minimum capital requirement for operational risk

130.93125.49Sumitomo Mitsui Trust Bank (Thai) Public Company Limited

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Table 6: Ratio of total capital to risk-weighted assets, ratio of Tier 1 capital to risk-weighted assets andratio of Common Equity tier 1 to risk-weighted assets

Below table illustrates the ratio of capital to risk weighted assets, the ratio of Tier 1 capital to risk weighted assets andratio of Common Equity Tier 1 to risk- weighted assets.
31 March 2024
Capitalratio ofthe bank

Minimum
CapitalRequirement
Ratio

1. Total Capital Ratio

27.09

2. Tier 1 Ratio
3. Common Equity Tier 1 Ratio

Ratio

30 September 2023
Capitalratio ofthe bank

Minimum
CapitalRequirement
Ratio

8.50

Minimum
CapitalRequirement
and Capital
Buffer Ratio
11.000

25.96

8.50

Minimum
CapitalRequirement
and Capital
Buffer Ratio
11.000

26.55

6.00

8.500

25.50

6.00

8.500

26.55

4.50

7.000

25.50

4.50

7.000

4. Risk Exposure and Assessment
The following section describes the information on each risk exposure which includes credit, market and operationalrisk as well as the techniques which are applied to identify, measure and monitor and control such exposures.
4.1 Qualitative Disclosures

Risk Management Processes:
Risk Management Department manages risk at the bank-wide level as the following process:1. Risk Identification
The identification process covers full scope of any business activities including every department and all third parties
to which any business is outsourced. Risk Management Department identifies risk potential, scales and characteristics
exhaustively and precautiously.
2. Risk Assessment
The risk identified in the scope of management are analysed, assessed and measured in an appropriate manner to matchwith its scales, characteristics and risk profiles.
3. Risk Monitoring
The risk status is monitored to ensure that risk level progress within the risk management plan and is approved by
Board of Directors. Risk Management Department provides recommendations to relevant departments by taking into
account the internal environment, e.g., risk profiles, credit limit utilisation, external economic conditions and market
environments. Risk Management Department reports the status of risk management to Risk Management Committee
on monthly basis and to the Board of Directors and the Executive Committee on a quarterly basis or whenever deemednecessary.
4. Risk Control and mitigation
In the event that a large risk event causes negative impact to the Bank, and the risk exceeds or is likely to exceed the risk
limit, Risk Management Department shall provide information to Risk Management Committee, Executive Committee
and the Board of Directors and request upon an immediate action.

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5. Risk Review
Risk Management Department regularly conducts reviews on existing risk management measures to uncover any
limitations and weaknesses, and implement remedial or supplement measures. The department regularly conducts
investigation, and analysis on those limitations and weaknesses, to ensure that the risk management measures areappropriate to the risk profile and the business complexity.
The risk management measures are reviewed regularly to conform with the Bank’s strategic objectives, the scales, thecharacteristics and the risk profiles of business, and shall be updated as necessary if needed.

Structures and responsibilities of relevant risk management unit:
Risk Management Department, independent of the front office, is established for check-and-balance system. The
department develops and manages risk management process of identification, assessment, monitoring, control andmitigation for overall Enterprise Risk. The department plans and promotes Risk Management system such assynthetically monitoring the status of risk and overall risk management while sharing appropriate information witheach department, and reporting regularly or as necessary to the management.
Below is the Bank’s Committee structure.

1) Board of Directors:
The Board of Directors that also takes roles of Risk Oversight Committee has the following roles and responsibilities.
• Formulate or approve strategies, policies, internal rules (rule 1) which require a resolution of the Board or framework
for managing all associated risks faced by the bank whereby the strategies, policies, rule 1 or frameworks should
include risk identification, assessment, monitoring, control & limit, mitigation of the risk, risk reporting, andresponsible person/committee to manage risks.
• Formulate or approve strategies, transaction or new product policy, and business plan that is appropriate to risk
profile, business model and the level of systemic importance as well as robustness of capital and liquidity positionsof the Bank for absorbing various types of risk in line with the approved risk appetite, policy on the management of
non-performing loans and investments, and set aside sufficient bad-debt provisions to absorb possible losses.
• Oversee at least once a year or when there is an significant change, review and assess adequacy, effectiveness andefficiency of policies and strategies on overall risk management and risk appetite in accordance with size, country
and complexity of transactions to ensure to be in line with the strategy, acceptable level of risk, and anticipatedreturns, as well as reflect changes from the economic conditions and environment. Should consult and exchange
view with audit committee to assess the coverage on all existing and new types of risk faced by the Bank.
• Monitor the overall risk exposure, exposure by risk type, effectiveness of risk management, implementation of risk
culture, significant factors, problems faced by the Bank both currently and in the future, capital and liquidity position
based on the information or reports which accurately, complete, timely and regularly submitted by relevant
committees and senior executives.
• Supervise the bank to ensure there must be stress testing and assessment while conduct capital planning according
to specified strategies, set out the policies on preparation of a recovery plan in accordance with the BOT’s guidelines
and if the Bank uses modeling technique for assessing risk exposures, BDM must assign senior executive to overseethat the Bank comply with the minimum BOT’s requirements, and that there is the independent assessment andSumitomo Mitsui Trust Bank (Thai) Public Company Limited

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•

•

•

•

validation of the model on regular basis and must be aware of and understand limitations and uncertainty of theresults and risk from the use of modeling technique.
Promote risk governance within the Bank to ensure the transparency and fairness, as well as to supervise the Bank
to follow relevant rules and regulations and promote the balance of power by segregation of duties between risktaker functions and risk management functions.
Supervise the establishment of risk and compliance awareness culture by ensuring that there is regularcommunication of risk management policies and strategies as well as risk appetite and risk limit, which may be in
the form of “risk appetite statement (RAS)” so that all staffs understand the importance, contribute to the risks andrisk exposure are controlled.
Establish organizations for risk management, e.g., establishment of risk management related departments anddelegation of authorities for risk management that is favorable to the monitoring, oversight, control and audit toensure the operations comply with policies, strategies on risk management to ensure that Risk Management is
independent, follows sound risk management practices, and is consistent with the bank’s internal control. Oversee
the senior executives and the head of risk management to ensure complying with risk management policies andstrategies as well as the specified risk appetite. Opine or take part in the evaluation of the effectiveness and efficiencyof the Head of Risk Management function.
Details of Board of Directors’ roles and responsibilities have been described in Board of Director Policy

2) Executive Committee:
The Executive Committee has the following roles and responsibilities.
• Grant approval and dissemination of internal rules based on policy including those of identification, assessment,
monitoring, controls and mitigation of risks, and raising recognition of rules throughout the Bank.
• Review and revise Risk Management Policy, Risk Appetite Framework, and IT Security Rule and propose to Boardof Directors for approval, at least on an annual basis.
• Review organisational structure, and risk management operation to ensure that both support effective risk
management within the Bank.
• Supervise risk management to ensure that it functions in accordance with Risk Appetite Framework.
• Appoint personnel with skills, knowledge and expertise necessary for risk management to the risk management
related departments within necessary authority scope.
• Ensure the implementation of risk governance on the 3 lines of defense in order to put in place the “Checks andBalance function”.
• Ensure that any department that involves risk exposure will strictly comply with rules and regulations and secure
effectiveness of the risk management while able to take necessary actions upon improving and following up on
related risk matters.
• Ensure that the risk and compliance awareness program is arranged for Bank’s Personnel to promote risk andcompliance culture.
• Analyse and assess the efficiency and deficiency of risk management systems and controls based on risk audit results
conducted by internal or external auditors as well as reports from other risk management related departments.
• Provide risk status reports and reporting to parent company. Ensure that the report is accurate, complete, timely,reflect risk profile and adequacy of capital and liquidity positions.
• Review and revisit the all of the above points based on relevant reports received regularly or whenever it deemednecessary.
• Resolve for approval / pre-approval or to be reported for acknowledgement the matters as prescribed in theCommittee policy.
• To ensure the control environment for solving problems and follow up on the progress to compliance culture andcustomer protection management.
• To ensure the effectiveness and efficiency of the business operational control.
• Oversee the sustainability or ESG topics, to review guidelines, to provide advice and recommendation, to supervise
Sustainability/ESG matters and to ensure the sufficient resources allocation and the providing of adequate training
to all level of staff according to Sustainability Policy.
• To be responsible for IT management and oversight of IT operations.
• Perform any other tasks as assigned or delegated by the Board of Directors.

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3) Credit Business Committee
The Credit Business Committee is established as a sub-committee under the Executive Committee with the mainfunction to assist the Executive Committee and the Board of Directors of the Bank in carrying out its responsibilities todeliberate and determine the Bank’s material matters and basic policies surrounding managing/operating, including
approve and execute credit transactions. The Credit Business Committee has the following roles and responsibilities.
• Resolve for approval or to be reported for acknowledgement the credit matters.
• Perform any other tasks as assigned or delegated by the Executive Committee or the Board of Directors.
4) Asset and Liability Management Committee
The Asset and Liability Management Committee is established as a sub-committee under the Executive Committee withthe main function to assist the Executive Committee and the Board of Directors of the Bank in carrying out its
responsibilities to establish the Bank’s guidelines for asset and liability management as well as monitor and control the
Bank’s market and liquidity risks. The Asset and Liability Management Committee has the following roles andresponsibilities.
• Resolve for approval or to be reported for acknowledgement the asset and liability management matters.
• Perform any other tasks as assigned or delegated by the Executive Committee or the Board of Directors.
5) Risk Management Committee:
The Risk Management Committee has the following roles and responsibilities.
• Establish policies, rules, procedures and controls of risk management for every risk categories in accordance withthe supervisory guidelines and Bank’s criteria.
• Implement risk management strategies to comply with Risk Management Policy and to ensure that risks are assessed,monitored and controlled within the pre-specified level of Risk Appetite.
• Review the policies related to risk management and risk management system to ensure the effectiveness of risk
management and compliance management within the Bank.
• Monitor and Check the Bank’s status on compliance with applicable laws and regulations, including monitor andprovide updates with respect to any movement of regulators to the parent company of the Bank and other bodies
within the Bank, as necessary.
• Regular report to the Executive Committee and/or Board of Directors, as appropriate, on status of risk, compliance,
IT outsourcing, and IT security matters.
• Discuss for acknowledgement the risk management matters.
• Resolve for approval or to be reported for acknowledgement the risk management matters.
• Advice the Executive Committee on the Bank’s risk management for credit business and market transactions.
• Assess the thoroughness and efficiency of the risk management systems and policies.
• Promote the risk awareness in the Bank.
• To be responsible for the oversight of IT risk management according to the Bank’s related IT risk management
policies and rules• To perform as Data Governance Committee as specified in Data Governance Policy• Perform any other tasks as assigned or delegated by the Board of Directors
6) Audit Committee
The Audit Committee is established with the main function to assist the Board of Directors of the Bank in carrying out
its oversight responsibilities to ensure effectiveness and efficiency of business operation, reliability of financial
reporting, internal control, risk management and governance systems and processes and to ensure that they arecomplied with applicable laws and regulations and safeguarding of assets of the Bank, thereby helping to protect the
Bank and its reputation including fraud. The Audit Committee has the following roles and responsibilities.
• Resolve for approval or to be reported for acknowledgement the audit matters.
• Review the Bank’s financial reporting process to ensure accuracy and adequacy.
• Ensure that the Bank has in place appropriate and effective internal control and audit systems.
• Review the Bank’s compliance with laws governing securities and stock exchange, the Stock Exchange of Thailand
regulations, and other laws relating to the Bank’s business.
• Review a report on the Audit Committee's monitoring activities, and disclose it in the Bank ’s annual report.

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• Formulate the Audit Committee’s duties, including changes in composition, and changes that might materially affectthe Audit Committee’s performance, in writing as approved by the Board of Directors and inform the shareholders
in the annual report.
• Assess the efficiency and effectiveness of the performance of the Head of Internal Audit Department.
• To be responsible for the oversight of IT audit, where the IT audit should cover IT operations and IT risk management
as well as compliance with relevant IT laws and regulations.
• Perform any other tasks as assigned or delegated by the Board of Directors.
7) Compliance Committee
The Compliance Committee is established with the main function to assist the Board of Directors of the Bank inmonitoring the compliance situation of each and everybody within the Bank and ensuring effectiveness and efficiency
of customer protection management of the Bank. The Compliance Committee has the following roles andresponsibilities.
• Discuss for acknowledgement the compliance matters.
• Oversee and monitor the appropriateness and efficiency of the Bank’s compliance and customer protection
management and personal data protection related policies and plans, and the implementation thereof.
• Assess the performance of Head of Compliance Department.
• Promote the compliance awareness in the Bank.
• Resolve for approval or to be reported for acknowledgement the compliance matters as prescribed in the Committee
policy.
• Perform any other tasks as assigned or delegated by the Board of Directors.

Roles and Responsibilities of Internal Auditors:
Below is the roles and responsibilities of internal auditors.
• Provide independent opinions to Board of Directors and Audit Committee regarding the internal audit within theBank.
• Report auditing status to Audit Committee regarding important investigations, findings and advice.
• Promote effective internal control and transparency in risk governing and control within the Bank.

Scopes and Nature of Risk Measuring, Monitoring and Reporting System:
Risk is a possibility of loss event of the Bank due to certain negative activities or change of external environments that
affects bank negatively. Risk management is the act when the Bank takes necessary measures against any events of risk,
by utilising the risk governing processes of risk identification, risk assessment, risk monitoring, and risk control, inorder to secure or limit risk to an acceptable level in accordance with the corporate strategies to ensure soundness,
profitability and sustainable growth of the Bank.
The scope and nature of risk measuring, monitoring and reporting system covers each risk category which is classified
based on their causes, i.e., Credit Risk, Market Risk, Liquidity Risk, Operational Risk, and Information Technology (IT)
Risk.

Setting Risk Controlling Limits:
The Bank’s risk limit setting plan has been established in the viewpoints listed below:• Risk limits are set up in accordance with the Internal Capital Adequacy Assessment (ICAAP) that is conducted inconsideration to (1) risk-return performance in comparison to external environment, ALM Master Plan and Credit
Portfolio Plan, (2) business performance target and (3) stress test results.
• Risk limits are set up for each of the following risk categories: Credit Risk, Market Risk and Liquidity Risk.
The risk limit setting plan is proposed by Risk Management Department and discussed in the Risk Management
Committee after prior consultation with parent company. The risk limit setting plan is also discussed and approved by
the Credit Business Committee, the ALM Committee and the Executive Committee as a part of the business plan, andresolved by the Board of Directors.

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4.2 Qualitative and quantitative disclosure for each type of risk
4.2.1 Disclosure of credit risk information
Credit risk is the risk of financial loss of the Bank when a customer or counterparty fail to meet its contractual
obligations, and such risk is generated from claims.
Item 1: General disclosures of credit risk exposures:

1) Credit Risk Management Structure
The Risk Management Department manages credit risk at bank-wide level, and cover not only loans but also assets
which expose to credit risk and off-balance sheet items.
The Bank’s Board of Directors decides on important matters related to credit risk management when developing
management plans. The Board of Directors also decides on credit strategy and capital plan, and approve asset
classification policy, to ensure the soundness of the assets.
The roles and responsibilities of credit risk management are described as follows:
Senior Management• Provide necessary tools, system, information, and resources to ensure that the credit risk management activities arecarried out in accordance with the Risk Management Policy and Risk Appetite Framework• Ensure that effective credit risk management system is implemented and properly maintained.
• Implement the control system/process to ensure compliance to the policies, rules and procedures.
• Establish and maintain clear line of authority and responsibility for managing credit risk.
• Provide the Board of Directors, the Executive Committee and other relevant committees the periodic reports on the
Bank’s credit risk status.
• Review the above points regularly or whenever deemed necessary based on the reports received.
Executive Vice President (EVP)• EVP should carry on operation making much account of risk management, fully recognising that a lack of such an
approach could seriously hinder attainment of strategic objectives.
• The EVP in charge of Risk Management Department reviews the policy and specific measures for developing andestablishing an adequate risk management system with a full understanding of the risk incidents. Such EVPs are
required to identify, assess, monitor and control such event, in addition to understand the importance of risk
management.
Risk Management Department• Prepare and propose credit risk management policy, risk appetite for credit risk and credit risk management
framework to the Risk Management Committee.
• Design and develop tools and processes for credit risk management, and implement such tools and processes inbank-wide business responsible departments while balancing between risk and reward.
• Analyse, monitor, control and report overall credit risk level as well as provide guidelines for managing credit risk
• Promote credit risk management practices in the Bank by communicating, coordinating and training personnel
within the Bank. This is to ensure that the importance of policies, rules, procedures in credit risk management isrecognised and abided by.
• Review the above mentioned activities regularly or whenever deemed necessary based on the reports received
Corporate Business Department• A risk owner, and follow policies, rules, procedures in credit risk management.
• Manage credit risk inherent in the products in their business responsible departments by utilising credit risk tools
and processes.
• Participate in trainings and activities that promote understanding in risk management.
• Regularly update the operational manual to ensure the compliance with credit risk management policies, rules,
procedures.

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Product (Business) Responsible Departments• Monitor and coordinate with units relevant to credit risk management to analyse and assess credit risk inherent in
the responsible products established.
• Establish and maintain product manual to ensure that it is accurate and up-to-date. This also includes establishment
and maintenance of a manual for new products.
2) Credit Risk Management
2.1) Credit Risk Management Policy
The Bank manages credit exposures of each customer based on limited credit amount, and periodically reviews impactof identified risks to large and particular customers and concentration in industry sectors, including the measurementof the credit risk. The Board of Directors has delegated responsibility for credit risk to Risk Management Committee,
which is responsible for the development and implementation of control to address credit risk.
2.2) Credit Risk Management Process•

Risk Identification

Credit risk is identified with details of risk types and risk factors at both obligor and portfolio level. Identification
process of credit risk at obligor level can be varied by each product. The identification process considers any factor
associated with the default risk of an obligor, as well as any other sources of funds, e.g., guarantees and collateral in thecase of default occurs. Identification process of credit risk at portfolio level covers both internal and external factors,
such as changes in economic and market conditions, changes in rules and regulations, credit concentration, businessstrategic outlook from sustainability/Climate Change/Environmental, Social and Governance Risk Management pointof view.
•

Risk Measurement and Approval

Credit risk of an obligor is assessed at the credit origination and at the credit limit review according to the policy
standards stated in the Credit Policy. In addition, the credit risk is also measured through the internal credit rating
system, which is developed based on main credit risk indicators, such as quality of the obligor, financial performance.
The Bank manages individual credits through processes such as internal credit ratings. Credit ratings indicate the credit
status of creditor and the responsibility of default on scale, and provide the basis for credit screening of individualtransactions and credit portfolio management. The Bank evaluates solvency and collectability of credits based on theanalysis, for instance the customer’s financial condition, cash flow, and earning capacity.
As for screening and credit management of each case, the Global Credit Supervision Department of parent company
provides prior consultation to Credit Department. Furthermore, the Research Department of parent company also
provide consultation to evaluate credit ratings based on industry research and credit analysis of individual companies
along with performing quantitative analysis.
•

Risk Monitoring and Control

The process of credit risk control is established and assigned the business responsible departments as a Risk Owner.
Risk Owner is responsible for controlling and monitoring its own risk and developing progress of risk mitigation bytaking into account risks and rewards.
Credit risk is monitored and reported to the Risk Management Committee and the senior managements on a regularbasis. Credit monitoring processes are conducted on a regular basis by the business responsible departments, Credit
Department and Risk Management Department, such as customer contact, and credit review. The reports include therisk characteristics, incurred credit losses, and credit risk mitigation plan.
2.3) Definition of Past Due and Impairment
Loans are classified as past due when debtors is unable to pay at maturity date specified in agreements. Classificationis the process of categorising facilities based on credit quality and/or the willingness of the obligor to honor its
commitments.

Sumitomo Mitsui Trust Bank (Thai) Public Company Limited

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An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit exceeds its recoverable
amount. The impairment loss is recognised in profit or loss unless it reverses a previous revaluation credited to equity,in which case it is charged to equity.
The Bank conforms to the Bank of Thailand’s classification requirements and provision requirements which align withTFRS 9 standards. Moreover, the Bank continuously reviews and sets management overlay which is the additionalmodel calculation as model provisions for the transactions may not contemporaneously capture risk factors within theeconomy and broader markets/industries and also reflect the asset quality deterioration because of economic
uncertainty.
Table 7: Outstanding amounts of significant on-balance sheet assets and off-balance sheet items before
the recognition of credit risk mitigation
Unit: Million Baht
Items
1. On-balance sheet assets (1.1 + 1.2 + 1.3 + 1.4)
1.1

Loan and accrued interest receivable (net) 1/

31 March 2024
116,074.24
96,035.08

1.2 Net Investment in debt securities 2/

15,707.53

1.3 Deposits and accrued interest receivable (net) 3/

3,052.21

1.4 Derivatives

1,279.42

2. Off-balance sheet items 4/ (2.1 + 2.2 + 2.3)

68,729.92

2.1 Aval of bills, guarantees, and letters of credit

186.37

2.2 OTC derivatives 5/53,528.47

2.3 Undrawn committed lines

15,015.08

1/ Including accrued interest income, net of deferred interest income, gains or losses due to changes in the conditions, and reserves for
expected credit losses; including loans and accrued interest receivable of interbank and money market items
2/ Including investments in receivables but excluding accrued interest receivable and net of reserves for adjustments of security values andreserves for expected credit losses. The amount is different from net investment in balance sheet due to net of reserves for expected credit losses.
3/ Including accrued interest income, net of reserves for expected credit losses
4/ Before multiplying by credit conversion factors
5/ Including equity-related derivatives

Unit: Million Baht
Items
1. On-balance sheet assets (1.1 + 1.2 + 1.3 + 1.4)
1.1

Loan and accrued interest receivable (net) 1/

31 March 2023
116,561.04
99,956.72

1.2 Net Investment in debt securities 2/

12,519.73

1.3 Deposits and accrued interest receivable (net) 3/

3,223.20

1.4 Derivatives
2. Off-balance sheet items 4/ (2.1 + 2.2 + 2.3)
2.1 Aval of bills, guarantees, and letters of credit

861.3970,543.31
141.92

2.2 OTC derivatives 5/58,430.36

2.3 Undrawn committed lines

11,971.03

1/ Including accrued interest income, net of deferred interest income, gains or losses due to changes in the conditions, and reserves for
expected credit losses; including loans and accrued interest receivable of interbank and money market items
2/ Including investments in receivables but excluding accrued interest receivable and net of reserves for adjustments of security values andreserves for expected credit losses. The amount is different from net investment in balance sheet due to net of reserves for expected credit losses.
3/ Including accrued interest income, net of reserves for expected credit losses
4/ Before multiplying by credit conversion factors
5/ Including equity-related derivatives

Sumitomo Mitsui Trust Bank (Thai) Public Company Limited

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Pillar 3 Disclosures
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Table 8: Outstanding amounts of on-balance sheet assets and off-balance sheet items before therecognition of credit risk mitigation classified by country or geographic area of debtors
Unit: Million Baht
31 March 2024
Country or
geographic
area of debtor

1.Thailand
2. Asia Pacific(excludeThailand)3. NorthAmerica andLatin America
4. Africa andMiddle East
5. Europe
Total

On-balance sheet assets
Loans andNet
Deposits
accruedInvestment
and accrued
interest
in debt
interest
receivable
receivablesecurities 2/(net) 1/
(net) 3/Total

Derivatives

Off-balance sheet items 4/
Aval ofOTC
bills,
derivatives
5/
guarantees,
and letterof credits

Total

Undrawn
committed
line

112,885.92

95,109.67

15,707.53

789.301,279.42

68,686.54

186.3753,485.09

15,015.08

2,128.32--

2,128.32

-

43.38

-

43.38

-

1,054.13

925.41-128.72

-

-

-

-

-

-

-

-

-

-

-

-

-

-

5.87

-

-

5.87

-

-

-

-

-

116,074.24

96,035.08

15,707.53

3,052.21

1,279.42

68,729.92

186.3753,528.47

15,015.08

1/ Including accrued interest income, net of deferred interest income, gains or losses due to changes in the conditions, and reserves for expectedcredit losses; including loans and accrued interest receivable of interbank and money market items
2/ Including investments in receivables but excluding accrued interest receivable and net of reserves for adjustments of security values andreserves for expected credit losses. The amount is different from net investment in balance sheet due to net of reserves for expected credit losses.
3/ Including accrued interest income, net of reserves for expected credit losses
4/ Before multiplying by credit conversion factors
5/ Including equity-related derivatives

Unit: Million Baht
31 March 2023
Country or
geographic
area of debtor

1.Thailand
2. Asia Pacific(excludeThailand)3. NorthAmerica andLatin America
4. Africa andMiddle East
5. Europe
Total

On-balance sheet assets
Loans andNet
Deposits
accruedInvestment
and accrued
interest
in debt
interest
receivable
receivablesecurities 2/(net) 1/
(net) 3/Total

Derivatives

Off-balance sheet items 4/
Aval ofOTC
bills,
derivatives
5/
guarantees,
and letterof credits

Total

Undrawn
committed
line

112,969.63

98,182.97

12,519.73

1,405.54

861.3970,543.31

141.9258,430.36

11,971.03

2,340.20

652.16-

1,688.04

-

-

-

-

-

1,229.16

1,121.59-

107.57

-

-

-

-

-

-

-

-

-

-

-

-

-

-

22.05

-

-

22.05

-

-

-

-

-

116,561.04

99,956.72

12,519.73

3,223.20

861.3970,543.31

141.9258,430.36

11,971.03

1/ Including accrued interest income, net of deferred interest income, gains or losses due to changes in the conditions, and reserves for expectedcredit losses; including loans and accrued interest receivable of interbank and money market items
2/ Including investments in receivables but excluding accrued interest receivable and net of reserves for adjustments of security values andreserves for expected credit losses. The amount is different from net investment in balance sheet due to net of reserves for expected credit losses.
3/ Including accrued interest income, net of reserves for expected credit losses
4/ Before multiplying by credit conversion factors
5/ Including equity-related derivatives

Sumitomo Mitsui Trust Bank (Thai) Public Company Limited

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Pillar 3 Disclosures
31 March 2024
Table 9: Outstanding amounts of on-balance sheet assets and off-balance sheet items before therecognition of credit risk mitigation classified by residual maturity
Unit: Million Baht
31 March 2024
Items
1. On-balance sheet assets (1.1 + 1.2 + 1.3 + 1.4)

Maturity notexceeding 1 Yr

Maturity
exceeding 1 Yr

Total

59,476.04

56,598.20

116,074.24

1.1 Loans and accrued interest receivable (net) 1/

52,029.05

44,006.03

96,035.08

1.2 Net Investment in debt securities 2/

3,115.36

12,592.17

15,707.53

1.3 Deposits and accrued interest receivable (net) 3/

3,052.21-

3,052.21

1.4 Derivatives

1,279.42-

1,279.42

68,558.05

171.8768,729.92

14.50

171.87186.37

2.2 OTC derivatives 5/53,528.47-

53,528.47

2.3 Undrawn committed lines

15,015.08-

15,015.08

2. Off-balance sheet items 4/ (2.1 + 2.2 + 2.3)
2.1 Aval of bills, guarantees, and letters of credit

1/ Including accrued interest income, net of deferred interest income, gains or losses due to changes in the conditions, and reserves for
expected credit losses; including loans and accrued interest receivable of interbank and money market items
2/ Including investments in receivables but excluding accrued interest receivable and net of reserves for adjustments of security values andreserves for expected credit losses. The amount is different from net investment in balance sheet due to net of reserves for expected credit losses.
3/ Including accrued interest income, net of reserves for expected credit losses
4/ Before multiplying by credit conversion factors
5/ Including equity-related derivatives

Unit: Million Baht
31 March 2023
Items
1. On-balance sheet assets (1.1 + 1.2 + 1.3 + 1.4)

Maturity notexceeding 1 Yr

Maturity
exceeding 1 Yr

Total

56,559.29

60,001.75

116,561.04

1.1 Loans and accrued interest receivable (net) 1/

51,004.47

48,952.25

99,956.72

1.2 Net Investment in debt securities 2/

1,492.98

11,026.75

12,519.73

1.3 Deposits and accrued interest receivable (net) 3/

3,223.20-

3,223.20

838.6422.75

861.3967,027.59

3,515.72

70,543.31

1.81

140.11141.92

2.2 OTC derivatives 5/

57,789.30

641.0658,430.36

2.3 Undrawn committed lines

9,236.48

2,734.55

11,971.03

1.4 Derivatives
2. Off-balance sheet items 4/ (2.1 + 2.2 + 2.3)
2.1 Aval of bills, guarantees, and letters of credit

1/ Including accrued interest income, net of deferred interest income, gains or losses due to changes in the conditions, and reserves for
expected credit losses; including loans and accrued interest receivable of interbank and money market items
2/ Including investments in receivables but excluding accrued interest receivable and net of reserves for adjustments of security values andreserves for expected credit losses. The amount is different from net investment in balance sheet due to net of reserves for expected credit losses.
3/ Including accrued interest income, net of reserves for expected credit losses
4/ Before multiplying by credit conversion factors
5/ Including equity-related derivatives

Sumitomo Mitsui Trust Bank (Thai) Public Company Limited

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Pillar 3 Disclosures
31 March 2024
Table 10: Outstanding amounts of financial instruments before the recognition of credit risk mitigation andprovisions (General provision and specific provisions)
Unit: Million Baht
31 March 2024
Provisions 2/ for exposures
under the SA

Outstanding amountItem

Amount ofprovisions 2/

Net amount 3/

Defaulted
exposures 1/

Nondefaulted
exposures 1/-

96,406.44

371.3567.43

303.92

96,035.09-

15,724.20

16.67

-

16.67

15,707.53-

3,052.21---

3,052.21-

15,201.44

70.73

-

70.73

15,130.71-

130,384.29

458.7567.43

391.32

129,925.54

1. Loans and accrued
interest receivable 4/
2. Investments in debt
securities 5/
3. Deposits and accrued
interest receivable 6/
4. Committed lines andfinancial guarantees 7/
Total

Generalprovisions

Specific
provisions

1/ Depending on the approach used by the reporting bank, namely (1) SA: Non-performing claims and performing claims; and (2) IRB:
Defaulted exposures and non-defaulted exposures. In determining if any exposure is a "defaulted" exposure, commercial banks shall refer to thedefinition of credit-impaired assets (non-performing) as specified in the Bank of Thailand Notification Re: Asset Classification and Provisioningof Financial Institutions.
2/ means reserves for expected credit losses according to TFRS 9. For financial instruments designated at fair value through othercomprehensive income, the amount of provisions may not be disclosed according to the Thai Financial Reporting Standard No.7 - Disclosure
Requirements for Financial Instruments (TFRS 7). And, the outstanding amounts of those instruments will be the amounts net of provisions.
3/ Net amount = Outstanding amount - Provisions
4/ Including accrued interest income, net of deferred income and gains or losses due to changes in the conditions, and including loans andaccrued interest receivable of interbank and money market items
5/ Excluding accrued interest receivable, net of reserves for adjustments of security values, and excluding investments in receivables
6/ Including accrued interest income
7/ Before multiplying by credit conversion factors

Unit: Million Baht
31 March 2023
Provisions 2/ for exposures
under the SA

Outstanding amountItem

1. Loans and accrued
interest receivable 4/
2. Investments in debt
securities 5/
3. Deposits and accrued
interest receivable 6/
4. Committed lines andfinancial guarantees 7/
Total

Nondefaulted
exposures 1/

Defaulted
exposures 1/

Amount ofprovisions 2/

Generalprovisions

Net amount 3/

Specific
provisions-

100,419.17

462.45134.86327.5999,956.72-

12,532.33

12.60

-

12.60

12,519.73-

3,223.20---

3,223.20-

12,112.94

48.30

-

48.30

12,064.64-

128,287.64

523.35134.86388.49127,764.29

1/ Depending on the approach used by the reporting bank, namely (1) SA: Non-performing claims and performing claims; and (2) IRB:
Defaulted exposures and non-defaulted exposures. In determining if any exposure is a "defaulted" exposure, commercial banks shall refer to thedefinition of credit-impaired assets (non-performing) as specified in the Bank of Thailand Notification Re: Asset Classification and Provisioningof Financial Institutions.
2/ means reserves for expected credit losses according to TFRS 9. For financial instruments designated at fair value through othercomprehensive income, the amount of provisions may not be disclosed according to the Thai Financial Reporting Standard No.7 - Disclosure
Requirements for Financial Instruments (TFRS 7). And, the outstanding amounts of those instruments will be the amounts net of provisions.
3/ Net amount = Outstanding amount - Provisions
4/ Including accrued interest income, net of deferred income and gains or losses due to changes in the conditions, and including loans andaccrued interest receivable of interbank and money market items
5/ Excluding accrued interest receivable, net of reserves for adjustments of security values, and excluding investments in receivables
6/ Including accrued interest income
7/ Before multiplying by credit conversion factors

Sumitomo Mitsui Trust Bank (Thai) Public Company Limited

17

Pillar 3 Disclosures
31 March 2024
Table 11: Outstanding amounts of loans including accrued interest receivable and investments in debt
securities before the recognition of credit risk mitigation classified by country or geographic area ofdebtors and asset classifications as specified by the Bank of Thailand
Unit: Million Baht
31 March 2024
Loans including accrued interest receivable 1/
Country or
geographic
area ofdebtors

With aninsignifi-cantincreasein creditriskWith asignifica-ntchangein creditrisk

Creditimpaired

Purchased
andoriginatedcreditimpaired

1. Thailand

94,979.84

495.12---931.48

2. Asia
Pacific(excluding
Thailand)3. NorthAmerica and
Latin
America
4. Africa andMiddle East
5. Europe

Investments in debt securities 2/

Total

With aninsignifi-cantincreasein creditriskWith asignifica-ntchangein creditrisk

Creditimpaired

Purchased
andoriginatedcreditimpaired-

95,474.96

15,724.20---

15,724.20

-

-

-

-

-

-

-

-

-

-

-

931.48

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Total

95,911.32
495.12
96,406.44
15,724.20
15,724.20
Total
1/ Including accrued interest income, net of deferred income and gains or losses due to changes in the conditions, and including loans and accrued
interest receivable of interbank and money market items
2/ Excluding accrued interest receivable, net of reserves for adjustments of security values, and excluding investments in receivables

Unit: Million Baht
31 March 2023
Loans including accrued interest receivable 1/
Country or
geographic
area ofdebtors

With aninsignifi-cantincreasein creditriskWith asignifica-ntchangein creditrisk

Creditimpaired

Purchased
andoriginatedcreditimpaired

1. Thailand

97,711.15

921.63-658.72-

1,127.67

2. Asia
Pacific(excluding
Thailand)3. NorthAmerica and
Latin
America
4. Africa andMiddle East
5. Europe

Investments in debt securities 2/

Total

With aninsignifi-cantincreasein creditriskWith asignifica-ntchangein creditrisk

Creditimpaired

Purchased
andoriginatedcreditimpaired-

98,632.78

12,532.33---

12,532.33--

658.72

-

-

-

-

-

-

-

-

1,127.67

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Total

99,497.54
921.63
100,419.17
12,532.33
12,532.33
Total
1/ Including accrued interest income, net of deferred income and gains or losses due to changes in the conditions, and including loans and accrued
interest receivable of interbank and money market items
2/ Excluding accrued interest receivable, net of reserves for adjustments of security values, and excluding investments in receivables

Sumitomo Mitsui Trust Bank (Thai) Public Company Limited18

Pillar 3 Disclosures
31 March 2024
Table 12: Provisions (General provision and Specific provision) and write-offs during the period for loans
including accrued interest receivable and investments in debt securities classified by country or
geographic area of debtors
Unit: Million Baht
31 March 2024
Loans including accrued interest receivable 1/
Country or geographic area ofdebtors

Investments in debt securities 2/

Provisions 3/ for exposures under theSA
Generalprovisions 4/

Provisions 3/ for exposures under theSA

Write-offs
during theperiodSpecific
provisions

Generalprovisions 4/

Specific
provisions

297.44-

16.67

2. Asia Pacific (excluding Thailand)

-

-

-

3. North America and Latin America

6.48

-

-

-

-

-

-

-

303.92-

1. Thailand

4. Africa and Middle East
5. Europe

Total

67.43

-

16.67

1/ Including the amounts of provisions and write-offs during the period for loans including accrued interest receivable of interbank and money
market items
2/ Excluding investments in receivables
3/ Reserves for expected credit losses
4/ Total amount will be disclosed

Unit: Million Baht
31 March 2023
Loans including accrued interest receivable 1/
Country or geographic area ofdebtors

Investments in debt securities 2/

Provisions 3/ for exposures under theSA
Generalprovisions 4/

Provisions 3/ for exposures under theSA

Write-offs
during theperiodSpecific
provisions

Generalprovisions 4/

Specific
provisions

313.35-

12.60

2. Asia Pacific (excluding Thailand)

7.17

-

-

3. North America and Latin America

7.07

-

-

4. Africa and Middle East

-

-

-

5. Europe---

327.59

-

1. Thailand

Total

134.86-

12.60

1/ Including the amounts of provisions and write-offs during the period for loans including accrued interest receivable of interbank and money
market items
2/ Excluding investments in receivables
3/ Reserves for expected credit losses
4/ Total amount will be disclosed

Sumitomo Mitsui Trust Bank (Thai) Public Company Limited

19

Pillar 3 Disclosures
31 March 2024
Table 13: Outstanding amounts of loans including accrued interest receivable* before the recognition of
credit risk mitigation classified by type of business and asset classifications as specified by the Bank ofThailand
Unit: Million Baht
31 March 2024

Type of business- Agriculture and mining- Manufacturing and commerceWith aninsignificant
increase incredit risk

With asignificant
change incredit risk

Purchased
andoriginatedcreditimpaired

Creditimpaired

Total

-

-

-

-

-

21,655.27

395.09--22,050.36- Real estate business and construction

3,349.60---

3,349.60- Public utilities and services

17,469.63

100.03--

17,569.66

-

-

-

-

-

53,436.82---

53,436.82

95,911.32

495.12--

96,406.44- Housing loans- Others
Total* Including accrued interest income, net of deferred income and gains or losses due to changes in the conditions, and including loans and accrued
interest receivable of interbank and money market items

Unit: Million Baht
31 March 2023

Type of business- Agriculture and mining- Manufacturing and commerceWith aninsignificant
increase incredit risk

With asignificant
change incredit risk

Purchased
andoriginatedcreditimpaired

Creditimpaired

Total

-

-

-

-

-

20,207.64

440.02--

20,647.66- Real estate business and construction

3,754.25---

3,754.25- Public utilities and services

17,295.58

481.61--

17,777.19

-

-

-

-

-

58,240.07---

58,240.07

99,497.54

921.63--

100,419.17- Housing loans- Others
Total* Including accrued interest income, net of deferred income and gains or losses due to changes in the conditions, and including loans and accrued
interest receivable of interbank and money market items

Sumitomo Mitsui Trust Bank (Thai) Public Company Limited

20

Pillar 3 Disclosures
31 March 2024
Table 14: General provisions and specific provisions and write-offs during the period for loans and accrued
interest receivable* classified by business of debtors
Unit: Million Baht
31 March 2024
Provisions 1/ for exposures under the SA

Item

General provisions 2/

Write-offs during
the period

Specific provisions- Agriculture and mining--- Manufacturing and commerce

92.78

-

- Real estate business and construction

36.76

-

- Public utilities and services

79.80

-

-

-

94.58

-

303.92-- Housing loans- Others
Total

67.43

* Including the amount of provisions and write-offs during the period for loans and accrued interest receivable of interbank and money market
items
1/ Reserves for expected credit losses
2/ Total amount of the provisions will be disclosed

Unit: Million Baht
31 March 2023
Provisions 1/ for exposures under the SA

Item

General provisions 2/

Write-offs during
the period

Specific provisions- Agriculture and mining

-

-

85.07

-

- Real estate business and construction

33.82

-

- Public utilities and services

107.16---101.54-327.59-- Manufacturing and commerce- Housing loans- Others
Total

134.86* Including the amount of provisions and write-offs during the period for loans and accrued interest receivable of interbank and money market
items
1/ Reserves for expected credit losses
2/ Total amount of the provisions will be disclosed

Table 15: Reconciliation of changes in available provisions (General provisions and specific provisions) for
loans including accrued interest receivable*
Unit: Million Baht
31 March 2024
Item

Provisions 1/ for exposures under the SA
Total

General provisions

Specific provisions

Provisions at the beginning of the period
Increases or decreases in provisions during the period 2/
Other provisions (provisions for FX losses, provisions formergers and sales of businesses)
Write-offs during the period

134.86(67.43)327.59(23.67)462.45(91.10)

-

-

-

-

-

-

Provisions at the end of the period

67.43

303.92371.35* Including the amount of provisions for loans and accrued interest receivable of interbank and money market items
1/ Reserves for expected credit losses
2/ Excluding expected credit losses of financial instruments designated at fair value through other comprehensive income

Sumitomo Mitsui Trust Bank (Thai) Public Company Limited21

Pillar 3 Disclosures
31 March 2024
Unit: Million Baht
31 March 2023
Provisions 1/ for exposures under the SA

Item

Total

General provisions

Specific provisions

Provisions at the beginning of the period
Increases or decreases in provisions during the period 2/
Other provisions (provisions for FX losses, provisions for mergers
and sales of businesses)
Write-offs during the period202.29(67.43)279.5448.05

481.83(19.38)

-

-

-

-

-

-

Provisions at the end of the period

134.86327.59462.45* Including the amount of provisions for loans and accrued interest receivable of interbank and money market items
1/ Reserves for expected credit losses
2/ Excluding expected credit losses of financial instruments designated at fair value through other comprehensive income

Table 16: Outstanding amounts of on-balance sheet assets and credit equivalent amounts of off-balance
sheet items (net of specific provisions) classified by type of assets under the SA
Unit: Million Baht
31 March 2024
Type of asset

On-balance
sheet assets

Off-balance
sheet item *16,460.89-

13,004.71

31 March 2023
On-balance
sheet assets

Off-balance
sheet item *16,460.89

13,905.52-

13,905.52

1,793.89

14,798.60

21,353.36

1,354.61

22,707.97

85,434.32

3,858.83

89,293.15

80,601.20

3,572.83

84,174.03

1,479.08-

1,479.08

1,059.50-

1,059.50

116,379.00

5,652.72

122,031.72

116,919.58

4,927.44

121,847.02

Total

Total

1. Performing claims
1.1 Claims on sovereigns andcentral banks, multilateraldevelopment banks (MDBs), andnon-central government public sector
entities (PSEs) treated as claims on
sovereigns
1.2 Claims on financial
institutions , non-central government
public sector entities (PSEs) treated asclaims on financial institutions, andsecurities firms
1.3 Claims on corporates , noncentral government public
sector entities (PSEs) treated as claims
on corporate
1.4 Other assets
Total* Including all Repo-style transactions (as well as Reverse repo transactions)

Item 2: Credit risk exposures classified by credit risk-weighted assets calculation approach used bycommercial banks

The Bank applies the following External credit institution (ECAIs) as reference for assigning risk weights for all claims.
The following are the process used in assigning risk weights to the debtors.
• S&P• Moody’s• Fitch• Fitch (Thailand)• TRISIn assigning the risk weights to the debtors, the Bank’s follow the Bank of Thailand notification.

Sumitomo Mitsui Trust Bank (Thai) Public Company Limited

22

Pillar 3 Disclosures
31 March 2024
Table 17: Outstanding amount of net on-balance sheet assets and credit equivalent amount of off-balance
sheet items net of specific provisions and after credit risk mitigation for each type of asset, classified byrisk weight under the SA
Unit: Million Baht
Type of asset
Risk weight (%)
Performing claims
1 Claims on
sovereigns andcentral banks,
multilateraldevelopment banks(MDBs), and noncentral government
public sector entities(PSEs) treated asclaims on sovereigns
2 Claims on financial
institutions, noncentral government
public sector entities(PSEs) treated asclaims on financial
institutions, andsecurities firms
3 Claims on
corporates, noncentral government
public sector entities(PSEs) treated asclaims on corporate
4 Claims on retail
portfolios
5 Claims on housing
loans

31 March 2024
Rated outstanding amount
20
50
100

0

150

16,460.89

-

-

-

-

-

13,059.10

5.91

1,733.59--

15,083.31

13,449.21

5,953.97-

6 Other assets

0

20

35

Unrated outstanding amount
50
75
100
250

-

625

938

100/
8.5
%

-

-

-

-

-

54,806.66

1,353.49

-

-

-

-

125.59-Risk weight (%)
50
100
150
75
Non-performing
claims1/
Capital deduction
items prescribed by the
Bank of Thailand
1/ For the portion with no credit risk mitigation of which risk weight is determined by the proportion of provision to total amount of claims

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Unit: Million Baht
Type of asset
Risk weight (%)
Performing claims
1 Claims on
sovereigns andcentral banks,
multilateraldevelopment banks(MDBs), and noncentral government
public sector entities(PSEs) treated asclaims on sovereigns
2 Claims on financial
institutions, noncentral government
public sector entities(PSEs) treated asclaims on financial
institutions, andsecurities firms
3 Claims on
corporates, noncentral government
public sector entities(PSEs) treated asclaims on corporate
4 Claims on retail
portfolios
5 Claims on housing
loans

31 March 2023
0

Rated outstanding amount
20
50
100

150

13,905.52

-

-

-

-

-

20,216.48

22.05

2,469.44--

8,279.24

13,116.21

2,360.92-

6 Other assets

0

20

35

Unrated outstanding amount
50
75
100
250

-

625

938

100/
8.5%

-

-

-

-

-

60,417.66

934.15----125.35-

Risk weight (%)
50
100
150
75
Non-performing
claims1/
Capital deduction
items prescribed by the
Bank of Thailand
1/ For the portion with no credit risk mitigation of which risk weight is determined by the proportion of provision to total amount of claims

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Pillar 3 Disclosures
31 March 2024
Item 3: Credit risk mitigation under the SA

This section describes information related to credit risk mitigation under Standardised Approach.

1) On-Balance Sheet Netting Policy and Process
The Bank doesn’t apply the on-balance sheet netting between assets (loans) and debts (deposits) of the same
counterparty to reduce credit risks in accordance with the regulations on credit risk mitigation by on-balance sheet
netting.
2) Collateral and Credit Risk Mitigation Plan
The Bank doesn’t use the value of financial collaterals approved by the Bank of Thailand to reduce outstanding valueof assets before using such value to calculate credit risk-weighted assets, in accordance with the regulations on credit
risk mitigation by financial collateral.

Table 18: Part of outstanding that is secured by collateral** under SA classified by type of assets andcollateralType of asset

Performing assets- Claims on sovereigns and central banks,
multilateral development banks (MDBs),
and non-central government public sector
entities (PSEs) treated as claims on
sovereigns- Claims on financial institutions , noncentral government public sector entities(PSEs) treated as claims on financial
institutions, and securities firms- Claims on corporates , non-central
government public sector entities (PSEs)
treated as claims on corporate- Other assets
Total

Unit: Million Baht
31 March 2023
Eligible financial
Guarantee andcollateral1/
credit derivatives

31 March 2024
Eligible
Guarantee andfinancialcreditcollateral1/
derivatives
-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

* Excluding securitisation.
** Values after on-balance sheets and off-balance sheets netting
1/ Eligible financial collateral that the Bank of Thailand allows to use for risk mitigation. Commercial banks applying the comprehensive
approach shall disclose the value after haircut.

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Pillar 3 Disclosures
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4.2.2 Disclosure of market risk information
Market risk is the risk of financial loss of the Bank through changes in income and value of assets and liabilities held,
including off-balance sheet items, due to fluctuations in various market risk factors, such as interest rates and exchange
rates. This section describes information related to market risk management:
1) Market Risk Management Structure
Risk Management Department is responsible for planning and implementing market risk management. The role of Risk
Management Department includes measuring risk levels and profits and losses and monitoring the status of market
risk managed under ALM plans and status of compliance with risk limits. The Department reports its findings to themembers of the ALM Committee members on a daily basis, and to Risk Management Committee as well as the Boardof Director periodically. Role and responsibilities of market risk management is described as follows:
Senior Management• Provide necessary tools, system, information, and resources to ensure that the market risk management activities
are carried out in accordance with the business plan, including risk management plan that represents Risk Appetite
and Risk Tolerance of the Bank.
• Ensure that effective market risk management system is implemented and properly maintained.
• Implement the control system/process to ensure policies, rules and procedures compliances.
• Establish and maintain clear line of authority and responsibility for managing market risk.
• Provide the Board of Directors, the Executive Committee and other relevant committees the periodic reports on the
Bank’s market risk status.
• Review all of the above points regularly or whenever it deemed necessary based on the risk reports received.
Risk Management Department• Prepare and propose market risk management policy, Risk Appetite for market risk and market risk management
framework to the Risk Management Committee.
• Design and develop tools and processes for market risk management, and implement such tools and processes inbank-wide business responsible departments while balancing between risk and rewards.
• Analyse, monitor, control and report overall market risk levels as well as provide guidelines for managing market
risk.
• Promote market risk management practices in the Bank by communicating, coordinating and training personnel
within the Bank. This is to ensure that the importance of policies, rules, procedures in market risk management isrecognised.
• Review the above points regularly or whenever it deemed necessary based on the risk reports received.
Treasury Department• Become a risk owner, and follow policies, rules, procedures in market risk management.
• Manage market risk inherent in the products in their business responsible departments by utilising market risk
tools and processes.
• Participate in trainings and activities that promote understanding in risk management.
• Regularly update the operational manuals to ensure the compliance of market risk management policies, rules, andprocedures.
Product (Business) Responsible Departments• Monitor and coordinate with units relevant to market risk management to analyse and assess market risk inherent
in the responsible products.
• Establish and maintain product manual to ensure that it is accurate and up-to-date. This also includes establishment
and maintenance of the manual for new products.

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2) Market Risk Management
2.1) Market Risk Management Policy
In managing market risk, the Bank ensures the soundness of its business by appropriately controlling risks, and strives
to secure reasonable profits which correspond to strategic goals, the sale and nature of its operations and risk profiles
through risk management framework. The Board of Directors has delegated responsibility for market risk to Risk
Management Committee, which is responsible for the development and implementation of control to address market
risk.
The Bank’s board of directors resolves ALM plans and risk management plans as important matters related to market
risk under management plans. The ALM Committee resolves basic matters of ALM plans and the basic mattersconcerning the management of market risk, liquidity risk, etc. and the progress.
2.2) Market risk Assessment
The Bank uses sensitivity analysis to measure market risk for both foreign exchange rate risk and interest rate risk
1.

Interest rate risk

Interest rate risk arises from the potential for a change in interest rates to have an adverse effect on the interest incomeof the Bank.
2.

Foreign exchange rate risk

Foreign exchange rate risk arises from the potential for an unfavorable fluctuation in foreign exchange rates whichcauses a result to loss value of an asset or liability denominated in a foreign currency.
2.3) Market risk Limit
The appropriate limit to control market risk exposure is determined in a limit review process taking into account ofbusiness strategy, capital requirement, liquidity etc. Market risk limit is reviewed and approved by the Board of
Directors.
2.4) Market Risk Monitoring and Controlling
The process of market risk control should be established and assigned to the Treasury Department as a Risk Owner.
Risk Owner is responsible for controlling and monitoring its own risk and developing progress of risk mitigation bytaking into account risks and rewards.
Market risk is required to be appropriately monitored and reported by Risk Management Department, to the Risk
Management Committee, the ALM Committee, the Executive Committee and the Board of Directors on the status ofinterest rate risk, on a regular and as-necessary basis. When the monitoring result is addressed as material or unusual,the Risk Management Department shall discuss and escalate the incidents with the relevant departments, and consider
the necessity of responding measures and promptly report to the ALM Committee.

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Item 4: Market risk exposure

The Bank applies Standardised Approach (SA) to calculate minimum capital requirements. Below is the summary ofminimum capital requirements for market risk.
Table 19: Minimum capital requirements for each type of market risk under the Standardised Approach
Unit: Million Baht
Minimum capital requirements for market risk under the Standardised
Approach

31 March 2024

30 September 2023
0.20

0.43

-

-

63.34

19.38

-

-

63.54

19.81

Interest rate risk
Equity position risk
Foreign exchange rate risk
Commodity risk
Total minimum capital requirement for market risk

Item 5: Equity exposures in banking book

As of March 31st, 2024, the Bank has equity exposures in banking book by 8.99 Million Baht.
For monitoring the risks from the above-mentioned investment, the Executive Committee monitors in accordance withthe processes prescribed in the Bank’s Procedure Manual for Strategic Investment. In addition, such investment shallbe considered and approved in accordance with the Bank’s Policy.
The Bank performs fair valuation calculation for investment in non-exchange traded equity by using Discount Cash
Flow method. The projected cash flow is subjected to risk-adjusted discount rate. Changes in the fair value ofinvestments in equity exposures is recognized in the item of unrealized gains (losses) on investments in equity
instruments designated at fair value through other comprehensive income in the statements of profit or loss and othercomprehensive income. The details of equity exposures in banking book are as below.
Table 20: Equity exposures in banking book

Unit: Million Baht
Equity exposures

31 March 2024

31 March 2023

1. Equity exposures
1.1 Equity securities listed and publicly traded on a stock exchange(domestic and foreign securities)

-

-

8.99

12.61

-

-

(10.95)(7.33)

- SA

0.76

1.07

- IRB

-

-

-

-

1.2 Other equity securities (domestic and foreign securities)
2. Gains (losses) from sales of equity securities during the period
3. Revaluation surplus (deficit) of investments in equity securities designatedat fair value through other comprehensive income
4. Minimum capital requirements for equity exposures classified by thecalculation method:

5. Equity exposures for the IRB reporting bank permitted by the Bank ofThailand to use the SA

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4.2.3 Disclosure of operational risk information
Item 6: Operational risk exposure

Operational risk is the risk that the Bank incurs losses resulting from inadequate or careless operations processes,
inadequate activities by EVPs and employees, inadequate systems or losses incurred from external events. This section
describes information related to operational risk management.
1) Operational Risk Structure
The roles and responsibilities of operational risk management are described as follows:
Senior Management• Monitor the effectiveness of operational risk management based on the business activities and the Bank’s
operational risk management framework, which includes risk identification, risk assessment, risk monitoring andrisk control as well as risk mitigation, to ensure that the Bank achieves its business objectives and manages risk levelwithin Risk Appetite that is described as a part of the business plan including risk management plan.
• Implement the operational risk management• Provide the Board of Directors, the Executive Committee and other relevant committees the status of operationalrisk report as well as significant operational risk.
• Participate in risk assessment for new products.
Risk Management Department• Prepare and propose operational risk management policy, Risk Appetite for operational risk and operational risk
management framework to the Risk Management Committee.
• Promote operational risk management within the Bank to ensure the compliance to the operational risk
management framework, operational risk management policy and risk management process.
• Analyse and report the status of operational risk to the Risk Management Committee. The reports to the Risk
Management Committee is required to include information such as important risk assessment, important
operational risk incidents, emerging risks, and recommendations for prevention or mitigation.
• Monitor and maintain information for operational risk management to ensure the completeness, timeliness andreliability.
• Promote the operational risk management within the Bank to ensure the recognition of importance of theoperational risk management.
• Review all of the above points regularly or whenever it deemed necessary based on the reports received.
Product (Business) responsible departments• Manage operational risk inherent in processes and activities within the Business responsible departments• Ensure that the process and activities of the Business responsible departments are consistent with the operationalrisk management framework, and that risk identification, risk assessment, risk monitoring and risk control are
implemented and maintained.
• Implement appropriate measures to mitigate and control risks.

2) Operational Risk Management
2.1) Operational Risk Management Policy
The Bank’s objective to manage operational risk so as to balance the avoidance of financial losses and damages to thebank’s reputation with overall cost effectiveness and innovation. The Board of Directors has delegated responsibility
for operational risk to Risk Management Committee, which is responsible for the development and implementation ofcontrols to address operational risk.
Significant operational risk identified by relevant Business responsible departments, which has a good understanding
and has capability to collect and record information, causes and impacts.

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2.2) Operational Risk Assessment
The operational risk assessment is conducted by relevant Business responsible departments. The assessment shall coverboth qualitative and quantitative assessments. The assessment process must consider the magnitude of impact andprobability of operational incidents.
2.3) Operational Risk Limit
Projected operational risk amount, which is consistent with the desired level of returns per business plan, is utilised for
ICAAP verification when risk limit setting plan for credit risk and market risk is established.
2.4) Operational Risk Monitoring and Controlling
Business responsible departments identify the measures for controlling operational risk and evaluate the effectivenessof such measures. In addition, the Business responsible departments shall develop appropriate measures to mitigate
operational risk, taking into account of risk and rewards of the Bank.
Business responsible departments shall monitor existing operational risk, effectiveness of controls and loss events.
3) Operational Risk Capital
The Bank applies Basic Indicator Approach (BIA) to calculate values equivalent to operational risk-weighted assets.

4.2.4 Disclosure of interest rate risk in the banking book 1
Item 7: Interest rate risk exposure in the banking bookInterest Rate Risk in Banking Book is defined as the risk of potential loss of earnings and capital caused by changes inmarket and interest rates that can have adverse effects to the on and off-balance sheet of the bank. Risk Management
Department manages Interest Rate Risk in Banking Book at bank-wide level.
1) Interest Rate Risk Management Structure
The roles and responsibilities of interest rate risk management are described as follows:
Senior Management• Provide necessary tools, system, information, and resources to ensure that the risk management activities are carriedout in accordance with the business plan, including risk management plan that represents Risk Appetite and Risk
Tolerance of the Bank.
• Ensure that effective risk management system is implemented and properly maintained.
• Implement the control system/process to ensure policies, rules and procedures compliances.
• Establish and maintain clear line of authority and responsibility for managing risk.
• Provide the Board of Directors, the Executive Committee and other relevant committees the periodic reports on the
Bank’s risk status.
• Review all of the above points regularly or whenever it deemed necessary based on the risk reports received.
Risk Management Department• Prepare and propose risk management policy, Risk Appetite for market risk and market risk management
framework to the Risk Management Committee.
• Design and develop tools and processes for risk management, and implement such tools and processes in bankwide business responsible departments while balancing between risk and rewards.
• Analyse, monitor, control and report overall market risk levels as well as provide guidelines for managing market
risk.

Refer to Bank of Thailand Notification Re: Supervisory Guidelines on Interest Rate Risk in the Banking Book for Financial
Institutions
1

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Pillar 3 Disclosures
31 March 2024••

Promote risk management practices in the Bank by communicating, coordinating and training personnel within the
Bank. This is to ensure that the importance of policies, rules, procedures in market risk management is recognised.
Review the above points regularly or whenever it deemed necessary based on the risk reports received.

Treasury Department• Become a risk owner, and follow policies, rules, procedures in risk management.
• Participate in trainings and activities that promote understanding in risk management.
• Regularly update the operational manuals to ensure the compliance of risk management policies, rules, andprocedures.
Product (Business) Responsible Departments• Monitor and coordinate with units relevant to risk management to analyse and assess risk inherent in the
responsible products.
• Establish and maintain product manual to ensure that it is accurate and up-to-date. This also includes establishment
and maintenance of the manual for new products.
2) Interest Rate Risk Management
2.1) Interest Rate Risk Management Policy
Interest rate risk identification covers both on and off-balance sheet, and also both internal and external factors such aschanges in economic and market conditions, changes in rules and regulation. The Board of Directors has delegatedresponsibility for market risk management to Risk Management Committee, which is responsible for the development
and implementation of control to address interest rate risk.
2.2) Interest Rate Risk Assessment
The Risk Management Department measures interest rate risk properly with appropriate measurement method that
corresponds to scale and natures of business activities and risk profile.
The Bank uses re-pricing gap analysis provides an estimated measure of the Banking book sensitivity to interest rates
change by distributing interest rate sensitive assets, liabilities and off balance sheet positions into time bands based on
re-pricing schedule.
2.3) Interest Rate Risk Limit
The appropriate limit to control interest rate risk is determined in a limit review process taking into account of businessstrategy, capital requirement, and liquidity. Market risk limit is reviewed and approved by the Board of Directors.
2.4) Interest Rate Risk Monitoring and Controlling
The process of interest rate risk control is established and assigned to the Treasury Department as a Risk Owner. Risk
Owner is responsible for controlling and monitoring its own risk and developing progress of risk mitigation by taking
into account risks and rewards.
Interest rate risk is monitored and reported by Risk Management Department, to the Risk Management Committee, the
ALM Committee, the Executive Committee and the Board of Directors on the status of interest rate risk, on a regularand as-necessary basis. When the monitoring result is addressed as material or unusual, the Risk Management
Department shall discuss and escalate the incidents with the relevant departments, and consider the necessity of
responding measures and promptly report to the ALM Committee.

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31 March 2024
Below is the result of changes in interest rate to net earnings by applying the change of 100 bps according to the Bankof Thailand requirements.
Table 21: The effect of changes in interest rates* to net earnings

Unit: Million Baht
Currency

31 March 2024

31 March 2023

Effect to net earnings

Effect to net earnings

Baht

8.81

-99.48USD-25.50-30.51

EURO

-0.05

0.22

Others-48.46-9.51

Total effect from changes in interest rate

-65.21-139.28% of anticipated net interest income for the next one year

-6.88%-18.18%* Use the percentage changes in interest rates of 100 bps.

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5. Additional disclosure of capital information under the BCBS guideline (Compositionof capital disclosure requirements)
Key features of financial instruments to be included in the capital

No financial instruments to be included in the capital.
Disclosure of capital in transitional period under the Basel III guideline (Transitional period)

No items related to capital to be phased in or phased out under the Basel III guideline.

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6.
6.1

Liquidity Coverage Ratio
Liquidity Coverage Ratio and Disclosure Standard

In pursuant of BOT Circular number Sor.Nor.Sor. 2/2561: Liquidity Coverage Ratio Disclosure Standards, the Bank
must disclose its Liquidity Coverage Ratio (LCR) under requirements for subsidiary of foreign banks whose financial
years end on March 31st, the disclosure date is based on September 30th (quarter 2) and March 31st (quarter 4) for firstand second half of the year respectively. The disclosed LCR, HQLA and Net COF are calculated by averaging
outstanding at the end of each month within the reported quarter. The LCR is a measure of the Bank’s ability to coverits own short-term obligated cash payment with its liquid assets under crisis situation. It is measured as a ratio ofoutstanding HQLA (High Quality Liquid Asset) over Net COF (Net Cash Outflow within 30 days under liquidity
stressed scenario, as defined in BOT Circular number Sor.Nor.Sor. 9/2558: Guideline on Liquidity Ratio ‘LCR’) andsubsequent update per BOT Circular number Sor.Nor.Sor. 4/2563: Re: Guidelines on Liquidity Coverage Ratio (LCR)(No.2). Per BOT’s requirement, the Bank is required to sustain LCR at or above 100% during the reporting periods:

𝐿𝐶𝑅 =

6.2

𝐻𝑄𝐿𝐴
𝑁𝑒𝑡 𝐶𝑂𝐹LCR Qualitative Disclosure

Average LCR during quarter ending in March 2024 is 211.2% and in December 2023 is 232.2%, which are above the level
required by the Bank of Thailand at 100%. LCR is composed of two main components as follows:
High-quality Liquid Assets (HQLA)HQLA refers to assets that are highly liquid (easily converted to cash without major loss of value), low risk, not volatile(value has low correlation to overall economic condition), and not encumbered. LCR recognizes HQLA in 3 levels; level
1, which is highest in quality and most liquid asset, and can be included without a limit or a haircut (such as Thai
Government Bond and cash), level 2A and 2B which are relatively stable but not to the same degree as level 1 and are
faced with larger haircut and maybe limited in amount that can be counted toward HQLA. the Bank of Thailand requirecompliance with Operational Requirement for HQLA which tests for the characteristics above, as well as the haircut tobe applied for each type.
The Bank’s average HQLA at the end of quarter ending in March 2024 is 13,434.0 MTHB, of which is wholly comprisedof level 1 HQLA, which is diversified among assets such as bonds issued by Bank of Thailand and Ministry of Finance,and deposit at the Bank of Thailand or other major financial institutions.
Net Cash Outflow (Net COF)

Net Cash Outflow (Net COF) is the Bank’s total obligated outflow within 30 calendar days from both on and off-balance
sheet. It is calculated by Cash Outflow subtracted by the smaller between Cash Inflow and 75% of Cash Outflow. Each
type of Cash Outflow and Inflow are subjected to runoff rate under stressed scenario per Bank of Thailand’s regulation.
Average Net COF at the end of quarter ending in March 2024 is 6,339.6 MTHB. The major sources of Cash Outflow
include deposit outflow, interbank borrowing, and net cash flow within the financial group. The major sources of Cash
Inflow include loan repayment from interbank and customer. One of the Bank’s major funding source is foreign
currency loan from parent bank, which is then swapped to local currency to minimize market risk. The arisingderivative, and net cash flow within the financial group are major contributor to Net COF.
Other Disclosure

Along with LCR, the Bank also employ industry standard tools to monitor and manage its liquidity risks, such as
Liquidity Gap, Funding Concentration, monitoring of various liquidity indicators for internal and external factors, andwill continuously improve its risk management tools and techniques to align with global best practice and the Bank’sbusiness plan to achieve safe and profitable business.

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6.3

LCR Quantitative Disclosure

Table 22: Average LCR and components
Unit: Million Baht
31 March 2024
31 March 2023
(2023 Q4)
(2022 Q4)
13,434.0
16,153.6
6,339.6
6,528.4
211.2%
261.5%
100%
100%

1. Total HQLA
2. Net COF
3. LCR (%)
4. Minimum required LCR per BOT (%)*Per Bank of Thailand’s circular (Sor.Nor.Sor. 9/2558: Guideline on Liquidity Ratio ‘LCR’ and subsequent updates, the Bank is required to sustain
LCR at or above 100% during reported periods).
**Per Bank of Thailand’s circular (Sor.Nor.Sor. 2/2561: Liquidity Coverage Ratio Disclosure Standards, subsidiaries of foreign banks whose financial
years ends on March 31st, the disclosure date is based on September 30th (quarter 2) for first half of the year, and March 31st (quarter 4) for second
half of the year.

Table 23: Average LCR for comparison

PeriodAverage LCR

Minimum
required LCR
per BOT

2023 Q4

211.2%

100%

2023 Q3

232.2%

100%

2022 Q4

261.5%

100%

For Comparison

2022 Q3

182.4%

100%

For Comparison

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