1. 11 Ballobh Kritayanavaj Senior Vice President GH Bank – Thailand Housing Finance Market in Thailand Workshop on Housing Finance Asia Pacific Union for Housing Finance (APUHF) Ulaanbaatar, Mongolia 26-29 June 2011

2. 2 Residential Mortgages in Thai Economy Items2004200520062007200820092010 Residential Mortgage Outstanding (RM) 1,055,0841,220,3941,351,1821,443,4351,566,4401,715,584 1,873,784 All Types of Loans(AL) 6,891,8097,477,5717,756,1228,137,489 9,690,223 10,390,417 11,802,544 GDP at current price 6,489,4767,092,8937,844,9398,525,1979,080,4669,041,551 10,102,986 RM : AL (%) 13.916.317.417.716.2 16.5 15.9 RM : GDP (%) 16.317.2 16.917.3 19.0 18.5 Source : Bank of Thailand Unit : Million Baht

3. 3 GDP VS New Home Loan Growth Rates in Thailand

4. 4

5. 5 Housing Completion in Bangkok and Metropolitan Region

6. 6 Newly - launched Housing Units - Bangkok and Vicinity

7. 7

8. 8

9. 9 New Home Loans in Thailand

10. 10 Market Share of New Home Loans

11. 11 Home Loans Outstanding in Thailand

12. 12 Market Share of Home Loans Outstanding

13. 13

14. 14 GH Bank Established in 1953, under the Ministry of Finance (MOF) State Enterprise, solely-owned by the government Specialised Housing Finance Institution

15. 15 GH Bank Purposes GH Bank Purposes Assists Thai people to have their own home Provides mortgage loans to general public, emphasises on low and middle income groups Operates in the banking system on commercial basis Competes in the free financial market both in funding and lending No direct-funding or subsidy from the government

16. 16 GH Bank Organization Assets : 678,904 million baht (2010) (Rank no. 7) Home loans : 659,092 million baht (2010) Deposits : 546,277 million baht (2010) Profit : 6,353 million baht (2010) Staffs : 2,457 (as of April,2011) Branches : 78 branches (BMR=32, Provincial = 46) 18 mini- branches 16 mobile credit unit 26 One Stop Services 15 Off-site banking counters

17. 17 GH Bank PROFIT Source : GH Bank ITEM 200 6 200 7 200 8 20092010 Profit (mill.THB) 2,3283,6913,3065,0336,353 Profit/head (mill.THB) 1.0661.6611.4692.2872.611 Bonus (salary-month) 4.556.54.756.06.5

18. 18 GH Bank Financial Ratio Source : GH Bank Items200820092010 2011 (April) ROA (%)0.510.740.931.34 ROE (%)11.6115.6517.1922.97 Interest Rate Spread (%)1.632.392.342.5 Liquidity Ratio (%)1213.767.56.05 Provision NPL44.3554.3565.8269.05

19. 19 Assets Expansion of GH Bank Assets

20. 20 GH Banks Deposit Outstanding

21. 21 GH Banks New Home Loans

22. 22 GH Banks Home Loans Outstanding

23. 23 Net Interest Margin GH Bank VS Commercial Banks

24. 24 Mortgage Market Leader in Thailand 34 - 40% market share (highest) Govt instrument in real estate market revival and economic growth stimulation - Government assisted- mortgage programme for first-time homebuyers - etc. Housing Finance Infrastructure National Credit Bureau (established in 2004, currently with 75 institutional members and 30 million accounts) Real Estate Information Center, www.reic.or.th (2004)www.reic.or.th Housing Knowledge and Education Center GH Bank Housing Journal - Thai (1995) Asia Pacific Housing Journal - English (2007) Home-buying information center www.ghbhomecenter.com Real estate professional associations (>16) GH Bank s role

25. 25 GH Bank Home Mortgage Lending Maximum loan amounts : no limit (average loan size Bt700,000) Loan - to - value ratios : 70 – 100% Loan term or repayment period 20-30 years (Borrower s age and term loan must not exceed 70 years) Mortgage Rates 1.Floating rate 2. Fixed rate 3.Mixed-rate loan or hybrid mortgage 4.Special floating rates Mortgage interest rate ceilings GH Bank 19% / Commercial Bank 11.25% - 18%

26. 26 GH Bank Home Mortgage Lending Valuation fees : Bt1,700 – 2,100 Origination Fees : 0.01% if exceed Bt500,000 Loan analysis and approval : Credit scoring Property transfers 2% mortgage registration 1% Monthly installment payments : MRR+1% Loan repayment channels : Banks + other pay points e.g. 7-11 Mortgage amortization : declining principal balance Prepayment penalties : First year 3%, year 2-3 for 2.5% Late charges : 60-day-past-due charges 13.5% Mortgage related insurance : fire insurance (compulsory) mortgage life insurance (voluntary)

27. 27 Deposit Rates GH BANK VS Commercial Banks Type of Deposit GH BANK (%)Commercial Banks (%) Savings Account 0.75 Special Savings Account 2.00 1.00 – 2.50 Time Deposit Account 3 - Months 2.251.50 - 2.50 6 - Months 2.351.95 - 2.85 12 - Months 2.60 2.25 – 2.75 24 - Months 3.25 2.75 – 3.30 36 - Months 3.60 2.00 – 3.25 60 - Months 3.65 2.50 – 3.50 Sources : GH Bank and Bank of Thailand (BOT) as of 20 June 2011

28. 28 GH Bank Mortgage Interest Rates OptionType of RateRate Remainder of Loan Term MRR - 0.50 = 6.375% 1 Special Floating Rate 1 st - 2 th YearMRR - 2.00 % = 4.875 % 3 th YearMRR - 1.00 % = 5.875 % 4 th YearMRR - 0.50 % = 6.375 % MRR = 6.875 % 2 Fixed Loan Rate 3-Year6.50 % 5-Year7.00 % Note : Effective Date June 20, 2011 : MRR is GHB Floating Rates

29. 29 GH Bank Mortgage Interest Rates Type RateRemainder of Loan Term LTV Ordinary Customer 2 optionsMRR = 6.875 % 70% - 85% Baan Eua Arthorn 1 st Year = 3.00 % 2 st - 3 th Year = MRR – 1.50 % = 5.25% 4 th Year = MRR – 1.00 % = 5.75 % MRR – 1.00 % = 5.75 %100% Social Security member Fixed Rate 2-Year = 4.50% MRR – 1.00 % = 5.75 %80% - 90% Note : Effective Date June 20, 2011

30. 30 2 years 0% First Home Mortgage Programme Total Programme Loan amount: Bt25 billion For first- time homeowners : no homeownership Loan limit : not more than Bt3 million Loan period : not more than 30 Years Loan Interest rates: 1 st – 2 nd year equal 0%/year 3 rd – 5 th year, welfare customers = MRR- 0.5%/year, retail customers = MRR 6 th year onward, welfare customers = MRR – 1.00%/year, retail customers = MRR – 0.50%/year Fees - transfer fee (1% from 2%) no mortgage registration fee (1%) (14 June fully booked) Programme period: May 9 – December 30,2011 (14 June fully booked)

31. 31 Refinance-In Programme Total Programme Loan amount: Bt5 billion Loan interest rates (privilege) : - 1 st year = MRR - 5% - 2 nd year = MRR - 2 % - From 3 rd year onwards = MRR – 1 % For welfare customers only

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