Form 56-1 One Report 2021 NPLs NPL ratio FY2019 FY2020 FY2021 39,594 37,746 2.35% 2.50% 2.81% 42,121 Figure 12: Stage 3 loans (NPLs) and NPL ratio THB million Note: Consolidated financial statements As of 31 December 2021, NPL ratio on consolidated basis was recorded at 2.81%, compared with 2.50% at the end of 2020. Meanwhile, NPL ratio on bank-only basis stood at 2.76% when compared with 2.38% as of 31 December 2020. Allowance for loan losses As of 31 December 2021, the Bank and its subsidiaries reported the allowance for expected credit loss at THB54,472 million, which rose by 4.8% YTD due to additional provision buffer set to preemptively limit future downside risk, reflecting the Bank’s prudent risk management. Given the current unfavorable economic conditions and the prolonged COVID-19 pandemic, the Bank remains prudent in setting provision and proactively reviews and set aside management overlay to cover both Probability of default (PD) and Loss given default (LGD) shift. Moreover, the Bank closely monitors customers under debt relief program and offers further assistance to those in need after the resurgence of COVID-19 cases. The allowance for expected credit loss was set at the prudent level, preparing for the future uncertainties. 137
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