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TheBoardofDirectors isdeeplycognizantof thecriticalimportanceof corporategovernance (CG) in thepursuitofsustainablegrowth,creationof long-termshareholdervalueandsecuringthetrustofallstakeholders,including shareholders, customers, employees, partners and thecommunity. The Board believes that good corporate governancewillhelpnurturethesteadygrowthofourcapital marketandincreasevalueforshareholdersoverthelongterm.Asaresult,theBoardconsistentlyadherestogoodcorporategovernancebasedonprinciplesandpracticesthataregenerallyacceptedinThailandandinternationally. AdherencetothesepracticeshascontributedtotheBank’ssuccessover thepastdecadeandwon recognition fromseveral organizations. For instance, SCB achieved thetoplevel(“Excellent”)inthe2016CGassessmentresultsannouncedby theThai InstituteofDirectorsAssociation(IOD).TheBankattained scoreswithin the top rangeof 99-100(forthetwelveconsecutiveyearfrom2005-2016) in the Thai Investors Association’s assessment of shareholders’meetingsfrom2009-2016.Partlyasaresult ofthesetwoscores,SCBbecameoneofthefewcompanies in Thailand to receive the highest rating in corporate governance for fourconsecutiveyears,during2012-2015,undertheASEANCGScorecardassessmentprocess. Corporate Governance PolicyTheBoardhasassignedtheNomination,CompensationandCorporateGovernanceCommitteetoformulatetheCorporate GovernancePolicyandmonitorcompliancetherewith.TheCommitteealso reviewsand revises thePolicy toensurethatitisappropriateandinlinewiththeguidelinesissuedbysupervisoryauthorities,aswellaswith internationallyacceptedstandardsforcorporategovernance.TheBank’sCorporateGovernancePolicyencompassesthefollowingcoreelements:

1) ThePolicyrequiresthattheBankmusthaveestablished aclearvision,missionandcodeofconductgoverning practicesofthedirectors,managersandemployeesof theBank.TheBoardhas reviewedandapproved the Bank’s vision to serve as “TheMostAdmiredBank”, toberealizedby2020.

2) The Policy formalizes, among othermatters, the structureoftheBoardandBoardcommittees, inclusive of rolesand responsibilities, compositionand tenure of members; the Board’s meeting procedures; nomination and appointment ofmembers of the Board;orientation for theBoard’snewmembers; the holdingofpositionsinothercompaniesbythedirectors andseniorexecutives; theseparationofpositionand ro les among the chai rman of the Board, the chairmanof theExecutiveCommitteeandthesenior executives; remuneration of directors and persons w i th management author i ty ; assessment o f performance of the Board, Board committees and persons withmanagement authority; succession planning;andtherolesandfunctionsofthecompany secretary.3) The policy enumerates the rights and treatment of a l l s takeholders in terms of ar rangement of shareholders’ meetings, dividend payments and transparencythroughdisclosureofinformation.4) The Policy restricts the use of confidential and non-public information by directors and employees andspecifiesrulesgoverningconnectedtransactions, conflictsofinterest,andconflict-of-interestreporting ofdirectorsandpersonswithmanagementauthority.

TheCorporateGovernancePolicyispubliclydisclosedandavailable on theBank’swebsite (www.scb.co.th) underthesequenceofmenuheadings“AboutSCB,”“Corporate Governance,”andthen“CorporateGovernancePolicy.”

2016 Corporate Governance TheBank’s corporate governance practices in 2016 aresummarizedasfollows:

1. Rights of ShareholdersTheBank has compliedwith its CorporateGovernancePolicywith the aimof ensuring that shareholders enjoytheirrightsandexercisesuchrightsinanequitablemanner, suchasbuyingor selling shares, receivingdividendsandreceiving adequate, timely and complete information about the Bank through easily accessible channels.

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In addition, shareholders are entitled to take partin mater ia l bus iness decis ions , e .g . , payment ofdividends, appointment and removal of directors, determination of directors’ remuneration, appointmentof auditors, determinationof audit fees, amendment to provisionsoftheMemorandumandArticlesofAssociation,andapprovalofspecialtransactions(e.g.,capitalincreaseorreduction,acquisitionordisposalofsignificantassets,orconnectedtransactions)TheshareholdersmaycasttheirvotesontheaforesaidmattersaccordingtodetailsprovidedintheNoticeofanAnnualGeneralMeetingofShareholders or, if applicable, theNoticeof anExtraordinaryGeneralMeetingofShareholders.Theprinciplesadoptedby theBank in respectof treatmentof shareholdersare shownin detail on theBank’swebsite (www.scb.co.th) underthesequenceofmenuheadings“AboutSCB,”“Corporate Governance,” “CorporateGovernancePolicy,” and then “Section3-RightsandTreatmentofStakeholders.”

1.1 Shareholders’ MeetingIn 2016, the Bank held its Annual GeneralMeeting of Shareholders (AGM)No. 193 on 5April 2016. TheBankconductedtheproceedingsinamannertoensurethattheshareholderswereabletoexercisetheirrightsinaccordance with the law, relevant regulationsandgoodgovernancepractices.1) Toensurethatshareholdersreceiveclearandadequate information, have sufficient time to consideragenda itemsof theAGM, andare able to easily access the NoticeoftheAGManditsaccompanyingdocuments, theBankpostedtheNoticeoftheAGM,accompanying documents,andproxyformsinbothThaiandEnglish onitswebsite30dayspriortothemeetingdate.Then, theNoticeoftheAGM,inbothThaiandEnglish,together withthe2015AnnualReport(inCD-ROMformat)was sent via post to shareholders at least 21 days in advanceofthemeetingdate.TheaforesaidNoticeof theAGMcontainedinformationsuchasdate,timeand venueofthemeeting(withamapanddirections),and details of each agenda item (including factual background, purposes, rationale, and opinions or recommendationsoftheBoard)aswellasaccompanying documents, includingdetails ofmeetingprocedures, votingandproxyappointments.Furthermore,theBank postedtheNoticeoftheAGMonbulletinboardsatits headofficeandall itsbranches.TheMeetingNotice wasalsoadvertisedinnewspapersinaccordancewith

law. Also, shareholderswere entitled to receive the printed 2015Annual Report before the date of the meetingfromthecompanysecretaryuponrequest.2) TheBankrecognizesshareholders’rightstoknowand fully access informationandallows shareholders to submitquestionsinadvanceoftheAGMtothecompany secretarythroughvariouschannels,includingviapost ore-mailatcompany_secretary@scb.co.th,inaccordance with the guidelines on the Bank’s website. The questionsarecollectedandthenproposedtotheBoard via the Nomination, Compensation and Corporate GovernanceCommittee.3)To encourage and facil itate participation of all shareholders(individuals,juristicpersonsandinstitutional investors)toattendtheAGMandexercisetheirrights inanequitablemanner, theBankdeliveredtheProxy FormBtoshareholdersfortheappointmentofproxies toattendthemeetingontheirbehalfintheeventthat they were unable to attend the AGM in person. Furthermore, institutional investors such as fund managersorcustodianswereinvitedtonominatetheir representatives to attend themeeting and, for their convenience, theBankassignedofficerstocheckthe requireddocumentsinadvanceofthemeeting.4) Tofacilitateattendancebyallshareholdersandproxy holders,theAGMwasheldduringbusinesshoursand on aworking day at theBank’s head office.On the meetingday,theregistrationcounterswereopenatleast two hours prior to themeeting time to facilitate procedural document checks and registration. The Bank’smeeting registration servicemade use of a barcodesystemwherebydifferentcountersweresetup for each typeof shareholder, e.g., individuals, juristic personsandfundmanagersorcustodians.Forefficiency and convenience, the Bank al located to each shareholderorproxyholdertheballotbearingthesame bar codeas their registrationbar code for voting on eachagendaitem.Themeetingregistrationremained open to shareholders during themeeting, allowing shareholderstoregisterandattendthemeetingatany timeandvoteonanyremainingagendaitem.5)ThechairmanoftheBoardpresidedasthechairmanof themeetingand 16directors (out of 17 directors) of the Bank were in attendance together with the chairmen of Board committees, the Bank’s senior executivesandtheexternalauditorsinordertoclarify andrespondtoanyquestionsorissuesraised.Priorto

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proceedinginaccordancewiththemeetingagenda,the companysecretaryinformedthemeetingofthevoting and vote counting practices for each agenda item. Holdersof theBank’sordinaryandpreferred shares, includingproxyholderswhoattendedthemeeting,were entitledtocasttheirvotesbasedontheone-share-one- votebasis.Inordertoincreasetheefficiencyandspeed ofthevotingprocess,onlytheballotsfordisapproval andabstentionvoteswerecollected.Votingandballot countingwere conducted openly, and the bar code systemwasemployedintabulatingandreportingvotes. Baker &McKenzie, an international law firm, was assignedbytheBanktoreviewandinspectthevalidityof the proxy appointments, adequacy of quorum, and tabulationand reportingof votes. Further, the voting results for each agenda itemwere reported to the meetinginatimely,accurateandtransparentmanner.6)Multimediapresentationswereusedatthemeetingto highlightboththeperformancein2015andthebusiness strategies for 2016. The chairman of themeeting allowed shareholders to askquestions and/ormake recommendationsonanequitabletreatmentbasisand askedthatcomprehensiveresponsesbeprovidedtoall questionsorissuesraised.Thedirectorsandmanagement jointlyrespondedtoshareholders’questionsandclarified issues. The company secretary recordedminutes of themeeting and the votes cast under each agenda item.Additionally,themeetingproceededinaccordance with the announced agenda, and the Bank did not switch, add, or revise any agenda items, ormodify previouslyissuedinformationatthemeeting.7) Following themeeting adjournment, the resolutions adoptedwerepostedinbothThaiandEnglishonthe websites of theStock Exchange of Thailand and of theBankonthemeetingdate.Inaddition,theminutes oftheAGMinThaiandEnglishweresubmittedtothe Stock Exchangeof Thailandandmadeavailable on theBank’swebsitewithin14daysfromthemeetingdate toprovideshareholderswithwideandearlyaccessto such documents. Theminutes contained the list of directors and senior executiveswho attended the meeting, the voting procedures, abstracts of the questionsandissuesraisedandtheanswersorclarifications providedbytheBoardandseniorexecutives,andthe resolutions reached, togetherwith the number of approval, disapproval andabstention voteson each agendaitemthatrequiredvoting.

1.2 Dividend PaymentTheBankhasadividendpolicythatprovidesguidancethatthedividendpayoutwillusuallybeintherangeof30-50%ofitsconsolidatedannualnetprofitandsuchpayoutwouldtakeintoaccountthelong-termreturntoallshareholders.DividendsareconsideredinanyyearwhentheBank,afterdeductionofallstatutoryandotherreserves,postsaprofit,providedthatthere isnoaccumulatedlossandtheBankisabletomaintainadequatecapitalfundsincompliancewith the regulatory requirements, aswell as taking into accounttheneedtopreservecapitalforitsfuturebusinessneeds.Theinterimdividendsandannualdividendsarepaidwithin30daysaftertheBoardortheshareholders’meetingapproves thedividendpayment. Inproposingadividendpayment for approval, the Bank discloses its DividendPolicy,dividendrateandamount, includingrationaleandother relevant information, to support the shareholders’decision-making.

At the 2016AGM, themeeting resolved to approve thedividendpaymentfromtheBank’s2015operatingresultstoholdersoftheBank’spreferredandordinarysharesatthe rateofBaht5.50per share, equivalent toa total ofBaht 18,696millionorapproximately39.6%of the2015consolidatednetprofit.Thedetailsofdividendpaymentsareasfollows:1) TheBoard,atitsmeetingNo.9/2015on25August2015, resolvedtoapproveaninterimdividendpaymentatthe rate ofBaht 1.50per share to holders of theBank’s preferredandordinary shares.The interimdividends were paid to holders of the Bank’s preferred and ordinaryshareson18September2015(24daysfrom thedateofapprovaloftheinterimdividendpayment bytheBoard);and2)ThefinaldividendwaspaidattherateofBaht4.00per share toholdersof theBank’spreferredandordinary shareson3May2016(28daysfromthedateofapproval ofthedividendpaymentbytheshareholders’meeting).

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1.3 Election of Director on an Individual BasisAspart of the director election process, the profiles of d i rectors nominated fo r e lect ion a re d i sc losedin the notice of the AGM to support the shareholders’ consideration.Eachprofileincludesinformationsuchasthe nominee’s age, education,work experience, positions in otherlistedandnon-listedcompanies,dateofappointment asdirector,meetingattendance inthepreviousyear,and typeofdirectorship.Inthecaseofindependentdirectors,theBankadditionallyprovidesitsdefinitionofindependent directorsandotherinformationsuchastheirrelationshiporconflictsofinterestwiththeBank,itsparentcompanies,its subsidiary companies, its associate companies andanyotherpartieshavingtheauthoritytocontroltheBankorjuristicpersonswithpotentialconflictsofinterestwiththeBankeitheratpresentorduringthetwoyearspriortotheirappointmentasanindependentdirectoroftheBank.AteveryAGM,one-thirdofthedirectorsretirebyrotation.Atthe2016AGM,sixdirectorsretiredbyrotation.TheBankarranged for shareholders toelect individualdirectors toreplacetheoutgoingdirectorsbycastingtheirvotes.Similartothevotingonotheragendaitems,onlydisapprovalandabstentionballotswerecollectedandtabulated.TheAGMminutesclearlyshowedthevotingresultsforeachdirectorappointedbytheshareholders.

1.4 determination of directors’ remunerationAs stipulated in the Bank’s Articles of Association approvedbytheshareholders’meeting,adirectorisentitledtoreceiveremunerationfromtheBankthroughgratuities,meetingallowances, rewards, bonusesor otherbenefitsconsistentwiththeArticlesofAssociationortheresolutionof the shareholders’meeting. Such remunerationmaybe fixedor specified from time to timeaccording to the regulationslaidout,ormaybeallowedtoremainineffect until changed. Further, a director is also entitled to a perdiemandfringebenefitsaccordingtotheregulationsoftheBank.TheNomination,CompensationandCorporate GovernanceCommitteeisassignedbytheBoardtorecommenddirectors’remunerationtotheBoardpriortoproposingtheremunerationtoanAGMforapprovalonanannualbasis.TheBoardhassetasapolicythatthedirectors’remunerationshouldbe:appropriateandcommensuratewithdirectors’scopeofdutiesandresponsibilities;comparabletoothermajorlistedcompaniesandcommercialbanks;andinlinewithprevailingbusinessconditionsandtrends.

1.5 Communication Among the Bank’s ShareholdersTheBankdoesnotseektopreventcommunicationamongitsshareholders.Shareholdersareatlibertytoshareinformationwith each other andmay request a copy of the list oftheBank’sshareholders fromtheBusinessDevelopment DepartmentoftheMinistryofCommerce.

2. Equitable Treatment of ShareholdersAs stipulated in the Bank’s Corporate Governance Policy,allshareholders,i.e.,major,minor,institutionaland foreignshareholders,areentitledtothesameshareholderrightsandaretreatedonanequitableandfairbasis.The principlesofequitabletreatmentofshareholders,towhichtheBankhasadhered,areprovidedontheBank’swebsite(www.scb.co.th) under the sequenceofmenuheadings“AboutSCB,”“CorporateGovernance,”“CorporateGovernancePolicy,” and then “Section 3 - Rights andTreatment ofStakeholders.”

2.1 Invitation to Shareholders to Propose Agenda Items, Candidates for Directorship, and Questions Prior to the Shareholders’ Meeting AllshareholdersoftheBankareinvitedtoproposematterstobeincludedasagendaitemsfortheAGMandtonominatequalifiedcandidatesfordirectorshiptobenominatedforelectionatanAGMaccordingthecriteriathathavebeenclearlyestablishedandpublishedon theBank’swebsite.The shareholdersmay submit their proposals to the companysecretaryviapostore-mailatcompany_secretary@scb.co.th.TheNomination,CompensationandCorporateGovernanceCommitteewill consider the shareholders’proposalspriortosubmittingthemtotheBoardforfurtherconsideration.Thedecisiononthematterwillbenotifiedtotheshareholdersconcernedfortheiracknowledgment.Anyproposals that areacceptedwill be included in theagendaattheAGM.

TheBank invitedshareholders toproposeagenda items,candidatesfordirectorship,andquestionsforthe2016AGMthreemonthspriortotheendoftheBank’saccountingperiod,i.e.,from1Octoberto31December2015.Nonetheless,theBankdidnotreceiveanyproposalsfromtheshareholders.

2.2 Proxy Appointments for Shareholders’ MeetingForeveryshareholders’meeting,theBankhasmadeavailablethreetypesofproxyforms(FormA,FormBandFormC)as

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determinedbytheDepartmentofBusinessDevelopmentoftheMinistryofCommerce.Theconditionsanddocumentsrequiredfortheappointmentofproxiesareclearlydescribedanddonotcauseanydifficulties.

At the 2016 AGM, the Proxy FormB indicating specificdetai ls of a proxy appointment was del ivered to shareholderstogetherwiththeNoticeoftheAnnualGeneralMeetingofShareholders.Shareholderswereprovidedwithanadditionaloptionofappointingastheirproxiesoneoftwo independentdirectorsoftheBankwhodidnothave any conflict of interest in the relevant agenda itemsoftheAGM. In this regard,shareholdersweresuppliedwithimportantinformationabouttheseindependentdirectors.Theshareholderswereabletoappointeitheroneofthetwoindependentdirectorsoranyotherpersonoftheirchoosingasproxy.Inaddition,shareholderswereabletodownloadProxyFormAorProxyFormCfromtheBank’swebsitefortheiruseasandwhenapplicable.

2.3 Ballots for Shareholders’ MeetingIn the 2016AGM, ballotswere used for voting on everyagenda item,butonly theballots indicatingdisapprovalandabstentionvoteswerecollectedandretainedforfutureexamination.

Inorder to ensure that the votingprocesswasefficient, accurate, speedy and verifiable, a bar code systemandPDAwereemployedintabulatingvotes.Priortoproceeding in accordancewith themeeting agenda, the company secretary informed themeeting of the voting and votetabulation procedures. In addition, theBank requestedshareholders to return all unusedballots to theBank’s officersandkepttheseballotsasevidence.

2.4 Internal Control and Risk ManagementTheBank regularlymonitorsandassesses theadequacyofitsinternalcontrolsystemandriskmanagementsystembasedon the internal control practice guidelines of the CommitteeofSponsoringOrganizationsoftheTreadway Commission (COSO), which specify f ive necessary components for internal control, namely, (1) control environment, (2) risk assessment, (3) control activities,(4)informationandcommunications,and(5)monitoring activities. Activities undertaken under each of these componentsareoutlinedbelow:

(1) Control EnvironmentTheBank requires thatallbusinessand functionalunits, includingthoseundertheumbrellaoftheSCBGroup,maintain acultureandenvironment thatprovide for a soundand effectiveinternalcontrolsystem,togetherwithacommitment byemployeesateveryleveltoadheretotheprinciplesofintegrity and transparency. TheBank iswell aware that asoundinternalcontrolsystemisacriticalfoundationinmeetingitsbusinessobjectivesinasustainablemanner.

Accordingly, theBankhasprepared formal policies andproceduresrequiringthatmanagementandstaffatevery level in theorganizationhavea role,dutyandresponsibilityinmaintaining sound internal control. The Bank has establishedanorganizational structure that supports asound internal control system through clear supervisorylines,scopeofauthorityandresponsibilityformanagementandstaff,andeffectivesegregationofduties,allofwhichareundertheoversightoftheBoardofDirectors.TheBoardofDirectorsisindependentfrommanagementandexercisesoversightover thedevelopmentandeffectivenessof theinternalcontrolenvironment.

TheBank revised its organizational structure in 2016 to promotecustomercentricity,collaborationacrossfunctional units,aswellasempowermentanddecision-makingagility.Asaresult,SCB’sorganizationalstructurenowconsistsof14 function-orientedgroups includingSegment,Product,Channel,Support, Technology,Risk,Strategy,Marketing, Transformation, Legal and Control, Finance, People, Audit, and Economic Intelligence Center (EIC). The Bank also revised the structure and operations of the Compl iance Funct ion . The Audit Committee acknowledges theCompliance Functionmonthly reportof issuesandactionplanand reviews themanagementperformance evaluation of theCompliance Function toprovideadditionaloversightforgoodcorporategovernance.

As part of its ongoing efforts tomaintain effective internalcontrolandriskmanagementandefficientbusiness operations, the Bank provides extensive training and development to ensure that executives and staff possesstherelevantknowledgeandskillstoundertaketheir duties.In2016,theBankupdatedtheCodeofConductthat provides integrity andaccountability guideline for every actioninlinewiththeBank’spolicy.TheCodeofConductwas

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communicated through an e-learning session for allemployees’ acknowledgment and strict compliance.Thewhistleblower channels to receive complaints andnotificationsthatmay indicatepotentialfraudorcorruptpracticesincludeaWhistleblowerHotline,ane-mailinbox: whistleblower@scb.co.th, and byway of letter to the president, head of Audit Function, or head of Human ResourceFunction.Suchcomplaintsandnotificationsareconsidered andhandledby theAudit Function and theHumanResourceFunctionforfurtheraction.TheBankhasundertakentheseandotherrelatedeffortstoensurethatmanagementandstaffeffectivelyperformtheirdutieswithtransparency,integrity,fairnessandaccountability,andthattheirperformanceisroutinelyreviewedsoastogaingreatertrustfromallstakeholders.

Additionally, theBoard recognizes the need to preventthe use of confidential and non-public information for inappropriategainsbydirectors,executivesandemployees.The Bank has established procedures for handling connected transactions in order to prevent conflicts ofinterestandtorequiredisclosureofconnectedinterestincompliancewithlegalrequirements.IthasalsoformulatedtheCorporateGovernancePolicy,which entails internalcontrol.Relevantdetailsarepublishedonwww.scb.co.thunder the sequence ofmenu headings “About SCB,” “CorporateGovernance,” “CorporateGovernancePolicy” and then “Section 4-Internal Control,” and can be summarizedasfollows:

1.1 Internal Control over the Use of Inside Information by Directors and Employees TheBoardhas formulatedcomprehensiveguidelines forthedisclosureofinformation,includingtheprevention ofconflictofinterestandinappropriateorillegaluseof non-publicinformation,assummarizedbelow:• Established codes of conduct for directors and employees, covering suchmatters as the use of non-publicinformationandtherequirementtomaintain confidentialityofcustomerinformation.Thecodesof conducthavebeendisseminatedtodirectors,executives andstaff,andstrictcomplianceisexpected.• Established regulations governing securities trading bydirectors, executives andemployees thatprevent directors,executives,employeeshavingaccesstoinside informationandemployeesauthorized toworkwith

functions having access to inside information from usingsuchinformationforpersonalgainorbenefitof others.Theseregulationsalsoapplytorelatedparties ofdirectors,executivesandemployees.• Imposednon-tradingperiodsondirectors,executives andemployeesinvolvedinthepreparationoffinancial statements toprohibit them from trading theBank’s securitiesandsecuritieswhichhavetheBank’sordinary sharesasanunderlyingassetduringthe14-dayperiod precedingtheannouncementofquarterly,semi-annual andannualfinancialstatementsaswellastoprohibit directorsandexecutivesfrominvestinginsecuritiesthat havetheBank’sordinarysharesasanunderlyingasset.• Required directors and personswithmanagement authority (asdefined in theSecuritiesandExchange Act,B.E.2535(A.D.1992))todiscloseinformationon theirshareholdingsandtradingoftheBank’ssecurities andsecuritiesthathavetheBank’sordinarysharesas anunderlyingassettotheBankandtheOfficeofSecurities andExchangeCommissionwithinthreeworkingdays. The company secretary is responsible for compiling reportsonshareholdingchangesand including these reportsasaregularitemontheBoardmeetingagenda.• Establishedregulationsagainsttheuseofnon-public informationinordertopreventleakageofconfidential and/or non-public information of the Bank and its customers as well as to prevent use of inside informationbypersonshavingaccesstosuchinformation for personal gainor benefit of others. In this regard, theBank has assigned theCompliance Function to monitor securities tradingof personswithaccess to non-public information to ensure compliancewith relevantregulations.

1.2 Connected and Conflict-of-Interest Transactions 1.2.1 TheBank’soperatingproceduresandprocesses govern ing the approva l o f connected o r conflict-of-interesttransactionsareasfollows: • Tostrictlyfollowtheregulationsandnotifications of the Stock Exchange of Thailand, the SecuritiesandExchangeCommissionandthe CapitalMarketSupervisoryBoardgoverning connected transactions and conflict-of- interest transactionswherebydirectors and executives areprohibited fromparticipating in the considerationanddecision-makingof

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anymatterinwhichtheymighthaveaconflict ofinterest.Thecompanysecretarymakesnote ofanydisclosedrelatedinterestsintheminutes ofthemeeting. • To set a pricing policy and conditions for related-partytransactionstoensurethatsuch pricingandconditionsareonanarm’slength basis and reasonable and offermaximum benefittotheBank. • Torequirethatsuchtransactionsshallnotbe approved by any personwith a conflict of interestandthattheapprovalmustbegranted bytheBoardwherebydirectorshavingconflicts of interest shall not part ic ipate in the consideration anddecision-making of such transactions. • TorequirethattheBoardalone(excludingany directorwitha conflict of interest) is vested withtheauthoritytoapprovecreditfacilities, investment,contingentliabilitiesorcredit-like transactionsbetweentheBankanditsmajor shareholdersorbusinesseshavingconnected interestwiththeBank,directors,orpersonswith managementauthorityortheirrelatedparties (as defined in the Financial Institutions BusinessAct,B.E.2551(A.D.2008)). • Oversight of the SCB Group’s intra-group transactions ensures that each company’s operations are in compliancewith related regulationsandpreventsanyconflictofinterest arisingfromintra-grouptransactions.

Additionally, the Bank requires the appointment of anindependent financial advisor for transactions that aresubjecttoapprovalfromashareholders’meeting.Theroleofthefinancialadvisoristoprovideopinionsonconnected transactions,particularlythoserelatingtotheacquisitionordisposalofsignificantassetsoftheBankanditssubsidiaries, anymergerorothertransactionasprescribedbylaw.TheBoard has assigned theAuditCommittee to review the procedures and oversee all material transactions to ensurethattheyarecompliantwithapplicablelawsand/orregulations.

1.2.2 Inordertoenhancetransparencyforintra-group transactionsbetweencompanies in theSCB FinancialGroup,andtoavoidanyconflictof interestbetweenSCBandothershareholders inbusinessesthatarenotwhollyownedbySCB, an Intra-GroupTransactionPolicy hasbeen approvedandisannuallyreviewedbytheSCB Board of Directors. This Policy covers risk managementforintra-grouptransactions,with controls over two types of s ignif icant transactions, namely, credit transactions (loans,investments,obligationsorlending-like transactions) and non-credit transactions ( those other than loans, investments , obligations).TheBankhas set guidelines so thatsuchtransactionsareincompliancewith theregulationsandrequirementsofregulators, including the Bank of Thailand, the Stock ExchangeofThailand,andtheSecuritiesand ExchangeCommission,aswellasthelawsand regulationsofcountrieswhereSCBbranches orrepresentativeofficesarelocated. According to the significant contentsof this Policy, intra-group transactionsmust not include special conditions or requirements thatmateriallydifferfromgeneraltradewith thesame risk level;or in theabsenceofany similar transactions, theymust conform with market practices. Also, the Pol icy requ i res that ag reements w i th lega l en fo rceab i l i ty must be p repared ; a l l documentary evidencemust be retained in accordance with customary business practices; and approval authority for such transactions should be in linewith the risk levelandmaterialityofeachtransaction. 1.2.3 With regard to pol ic ies and t rends of related-party transactions in the future, the Bank ’s emphasis on good governance principleshasledtoaclearpolicyforrelated-party transactions,compliantwiththeprovisionsof lawandthenotificationsoftheStockExchange ofThailandandtheSecuritiesandExchange Commissionregardingconnectedtransactions.

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Also, the Bank’s policy for the acquisition anddisposalofassetsoflistedcompaniesis compliantwiththenotificationsoftheBankof Thailand.TheBank’srelated-partytransactions mayariseaspartofitsbusinessoperationsin general. Inthisregard,SCBhassetclearand appropriateapprovalmeasuresandprocedures. 1.2.4 TheBankhasapolicyoninformationdisclosure coveringallmarket-sensitiveinformation.The thrust of the policy is to ensure that all significant information disclosed is timely, transparent and adequate. Also,misuse of insideinformation,eitherdirectlyorindirectly, isprohibited.TheBankdisclosesrelated-party transactions and connected transactions in compliancewiththeregulationsoftheStock Exchange of Thailand, in the notes to the financial statements in theAnnualReport in accordancewiththerequirements,conditions andmanner for such informationdisclosure. Connected transactions are reported on a quarterly basis for the Audit Committee’s acknowledgment. In 2016, theBankdidnot haveanymaterial connected transactions to be disclosed in accordancewiththeregulationsoftheStock ExchangeofThailand.Theinformationpertaining toother connected transactions isdisclosed inthenotestothefinancialstatements.

1.3 Conflict-of-Interest ReportTheBankrequiresdirectorsandpersonswithmanagementauthority(asdefinedintheFinancialInstitutionsBusiness Act, B.E. 2551 (A.D. 2008)) to report to the company secretaryonaquarterlybasisanyconflictofinterestarisingforthemselvesandtheirrelatedpartiesaswellaschangestoanypreviouslyreported items.Thecompanysecretarycollects and submits copies of the conflict-of-interestreportstothechairmanoftheBoardandthechairmanoftheAuditCommitteeincompliancewiththeSecuritiesandExchangeAct,B.E. 2535 (A.D. 1992).This information isusedbytheBankformonitoringtransactionsbetweentheBankanddirectors,personswithmanagementauthority,and/ortheirrelatedpartiesinaccordancewithapplicablelegalrequirements.

(2) Risk AssessmentTheBoardofDirectorschecksandapprovestheBank’skey riskmanagementpolicies.TheBoardofDirectorsassignedthreesub-committeeswithmainrolesandresponsibilities related to riskmanagementwhich are the Executive Committee,theAuditCommitteeandtheRiskManagementCommittee.Other sub-committeesarealsoempoweredspecificallyforriskmanagementbyrisktype,asappropriatetorisklevelandwithinagivenapprovalauthorityframework.

The Bank has also established the RiskManagement FunctiontodirectlyreporttothepresidentandCEO.TheRiskManagementFunctionisresponsibleforformulating a risk management framework, recommending risk managementpolicy,monitoring and reporting key risks,andpromotingtheBank’sriskmanagementqualitytomeetinternationalstandardsandrelevantpracticeframeworksacrosstheorganization.

Inplanningriskmanagementoperationalimprovements,thecommitteesconsiderbothinternalandexternalfactors,aswellasfraudriskoroperationalrisk.TheRiskManagement CommitteeshallreportresolutionsfromitsmeetingstotheExecutiveCommittee,theAuditCommittee,andtheBoardofDirectorsonamonthlybasis.

Wellawareof the importanceof riskmanagementamidchangesinbothinternalandexternalfactorsthatimpactits business, the Bank considers riskmanagement asanessential component in everyprocessof itsbusiness operations,whichmust be connected across all levels.Therefore,theBankcontinuallydevelopsandimprovesitsriskmanagementprocessesandriskassessmentprocedures, concurrentlywith establishing controls, identifying andmonitoring the underlying risk levels, andassessing thepotentialexposureoftheBank.Also,theBankevaluates the adequacy of its capital and the provisions for impairmenttoitsassetsaftertakingintoaccountsignificantriskfactors.Theaimistoensurecompliancewiththerelatedregulatoryrequirements,andmaintainadequatecapitaltocopewithunforeseenrisks.

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(3) Control ActivitiesTheBank has formal policies, regulations, operational procedures,manuals,andinstructions,whicharereviewedand updated on a regular basis. These include generalcontrolsovertheinformationsystemscoveringdatacenteroperations,includingdatanetworks,systemsdevelopment and testing, IT systemmaintenance, IT security and procurement.

Further,theBankemphasizesthesegregationofdutiesasakeycontroltomaintainadequateandappropriatecontrolsoveroperationsateverylevelwithintheorganizationandtomaintainasystemofchecksandbalances,particularlyforactivitiespronetoriskorgivingrisetoaconflictofinterest.In 2016, the Bank engaged an external consultant to review the SCBGroup’s internal control systems, andtook recommendations for improvement of operational effectivenessandefficiencyinlinewithinternationalbestpractices.

(4) Information and CommunicationsTheBankandSCBGroupcontinuetoinnovateandenhancecompetitivenessusing effective IT and communicationstokeepupwithchangingbusinesstrendsandconsumerbehaviors.

TheBank has developed IT systems for constant datacommunicationsthatprovidecomplete,reliableandtimelyinformationtotheBoardofDirectors,executivesandotherstakeholderssuchasshareholders,investorsandregulators. TheBank emphasizes the importance of IT security inprocessing transactions and protection of customers’ confidential data, to ensure that its securitymeasures remainsoundandappropriate.

TheBankprovidesinternalcommunicationchannelsfortheBankandtheSCBGrouptodisseminatepolicies,regulations, procedures,manualsandotheressentialinformation.Thesecommunicationsaredesignedtokeepallexecutivesandrelevantstaffknowledgeableandinformedandfacilitatecompliancewithpolicies,proceduresandregulationsinatimelymanner. Inaddition, theBankprovidesaseparatecommunicationchanneltoenablesafecommunicationforbothinternalandexternalparties.

(5) Monitoring ActivitiesTheBankhasinternalcontrolmonitoringandassessmentinplacetoensurethatthe internalcontrolsystemisstilleffective and efficient,with complete and appropriatemonitoringandassessmentabilityasdesignedandabletotacklechangingrisks.

TheComplianceFunctionisresponsibleforreviewingandmonitoringallunits’operationswithintheBankandtheSCBGrouptoensuretheircompliancewithimportantregulations,laws,rules,andregulatoryrequirements.TheAuditFunctionperforms independentassuranceandconsulting,sothattheorganization’s internal processes are regulatedwithsoundgovernance,riskmanagementandinternalcontrol.TheAudit Functionalsoconsiders the root causeofanymaterialfindingsandrisksfoundduringtheaudit,whicharedirectlyreportedfortheAuditCommittee’sconsiderationonamonthlybasis.Furthermore,theAuditFunctionalsofollowsupontheimplementationofitsrecommendationstoensurethatissuesofconcernareresolvedandimprovementsareimplemented.

TheAudit Committee and theBoard ofDirectors haveconsidered the results of the internal control adequacyassessment,anddiscussedwiththeBank’smanagementactionstakeninlinewiththerecommendationsforinternalcontroldevelopment.TheAuditCommitteeandtheBoardofDirectors’ opinionare that theBank’s internal controlsystemandriskmanagementsystemareappropriateandadequateforitsbusinessoperations.Thisconclusionwasinlinewiththeopinionoftheexternalauditors.

3. Role of Stakeholders3.1 Treatment of StakeholdersAsoneof the largest organizationswithin theKingdom,witha longheritageofserviceto thecountryas the firstThaibank,theBankrecognizesthatitneedstorespondtothe interestsofabroadrangeofstakeholders.The issue ofresponsibilitytostakeholdersiscoveredinmoredetailwithin the 2016 Sustainability Report. The essence is summarizedbelow:

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customers:TheBankexists to serve itscustomers,whoencompassalmosttheentirespectrumofThaisociety.Forallofthem,theBankaspirestoprovideabroadrangeofproductsandservicesandtoservicetheirneedsviabranch,electronicanddirectchannels.TheoverridingaimisfortheBanktobeviewedasthemainfinancialservicespartnerfor customers through theprovisionof reliable services, innovativeproducts and trustworthy conduct.CustomerdatasecurityandconfidentialityaretopprioritiesbecausetheBankputs the customerat theheart of itsbusinessand“thecustomeralwayscomesfirst”atSCB.TheBankmeasures its success through regular customer surveysandbyaimingfor(andattaining)amarket-leadingscorefromsuchsurveys.

Shareholders:TheBank’sexistence ismadepossiblebythecapitalcontributionsofalargenumberofshareholders. Toall of them theBank aspires to provide transparentandmarket-leadingdisclosure, parity of treatment, andanabove industry-average, sustainable returnonequity. Today, its success in this aim is evident in the Bank’s market capitalization,which is the largest inThailand’s financialservicessector.

Employees: Employeeswill always remain the Bank’smost valuable asset, and the recruitment, retentionanddevelopmentof employees is central to theBank’s successfulexecutionofitsshort-termandlong-termbusiness strategiesandtheachievementof itsmissionandvision.Employeeinterestsareaddressedthroughappropriateandcompetitivecompensationpractices,skillandcompetencydevelopmentprograms,careeradvancementopportunities,andwelfareandbenefitpackagestoincreasethewellbeing andmotivationofitsemployees.Thesewelfareandbenefitpackagesincludemedicalbenefits,scholarships,emergency f inancial assistance, pension fund and employee welfareloans,suchasmortgageloanandautoloanprograms, retirement funds, and savings cooperative, and are regularly reviewed to ensure appropriateness. Equally,theBankactivelysupportsdiversity intheworkforceand prohibitsanydiscriminationbasedongender,age,religiousbeliefordisability.TheBankallowsemployeestoexercisetheirrighttojoinlaborunionsandencouragesallemployees to suggest ideas for improving or adjusting the Bank’spolicies,practices,products,proceduresandservices.Aswithcustomers, theBankengages third-partyexperts toconduct employee surveys to assess theBank’s health

and readiness for future changes.According to the2016organizationalhealthsurvey,theBank’sscorewasrankedinthetopquartileoftheSoutheastAsiaregion.

Community (including business partners, competitors,suppliersandcreditors):TheBankaspirestobeamodelcorporatecitizeninThailand.Tothatend,theBank:behavesinanethicalandtransparentwaytowardcompetitorsandbusinesspartners; honors itsobligationsandcovenants;followstransparentprocurementpracticesthatwillensurethatprocurementistransparentandfreeofcorruptionand;doesnotparticipateinactivitiesthatmightbedetrimentaltoThaisocietyorthequalityoflifeofitsresidents.Further,theBankrecognizesandsupportstheUniversalDeclarationofHumanRightsandensuresthat itsbusinessactivities,particularlylending,areconductedsothatthetenetsofthisDeclarationareobserved.TheBankadopteda “SupplierCodeofConduct” to encourage its suppliers todo their businesses ethically, respect the freedomand rights of others,andtreattheirworkersresponsibly inaccordancewith labor rights andhuman rights principles, including occupational health, safety andenvironment standards.The Bankhas strictly compliedwith theobligationsand agreementsmadewith its creditors, including guarantee conditions and its obligations toward effective capital and liquiditymanagement to sustain financial strength and sol id debt servic ing abi l i ty. In an event that theBank isunable tocomplywithacondition, theBank will notify its creditors of suchmatter without delay to jointly consider possible solutions based on the principle of reasonableness and accountability toward creditors. The Bank is committed tomaking punctual payments anddebt repayments aswell asmaintaining goodrelationshipswithitscreditors.

TheBank has actively and consistently supported andcarriedoutactivitiesthatarebeneficialto itscommunity and society at large. Further, to propagate a sense of volunteerism, theBankhasencouragedallemployeestoregularlyparticipateinsuchactivities.Inpromotingrespectforintellectualpropertyrightsanddeterringtheinfringement thereof,theBankhasincorporatedpoliciesandguidelinesrelated to intellectual property in its EmployeeCodeofConduct.ItistheresponsibilityofallemployeestoprotecttheBank’s intellectual property fromunauthorized useanddisseminationandtorespecttherightsofintellectualpropertyowners.

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environment: The Bank is determined to operate in accordancewith environmental laws and regulations and implements effective safety and environmental managementmeasures toprevent any negative impact on local communit ies. Further, SCB supports the conservation of natural resources and the environment through awareness-raising campaigns and programsto educate and engage staff, business partners , customers and other CSR networks in support ive programs and activities. The Bank has increased its internal energy-use efficiencyby upgrading lightingandelectric systems. It also has reduced the use of paperin both internal and external processes. It became thefirst financial institution to participate in the nation’s pilot carbon-offset program to support the domestic voluntarycarboncreditmarket.Inthisregard,theCenterofExcellenceonEnvironmentalStrategyforGREENBusiness(VGREEN)ofKasetsartUniversityassistedtheBankintheanalysisofcarbonemissionsfromitsenergyandresourceconsumption.In2016,theBankdevelopeditsownEnergySavingAwarenesscourseandincorporateditintheannualemployee trainingprogramsoas topromoteawareness,knowledge and active contribution to efficient use of energyaswellastosharetipsandrecommendationsaboutenergy-savingandenvironmentally friendly technologies that can be applied to daily life. The coursewas first facilitated in November 2016 for approximately 100 employees. In addition, theBank sent its employees to participate inCSR-relatedlearningprogramssuchastheNewDimensionofCSRforSustainableSocialDevelopment.

Anti-Corruption: TheBankhasenforceditsAnti-CorruptionandBriberyPolicy,whichhasbeenapprovedbyitsBoardofDirectorsandwillalsobeadoptedbyallcompaniesintheSCBFinancialGroup.ThesaidPolicyclearlysetsoutthe definitionsand formsof “corruptionandbribery,” includingmeasures against corruption and bribery, andwill be reviewedat leastannually. ExecutivesandemployeesatalllevelsandallunitsoftheBankarerequiredtocomplywith thePolicy. To demonstrate theBank’swillingness regardingtheimplementationofanti-corruptionefforts,theBanksignedtheDeclarationofIntentaspromotedbytheThailand’sPrivateSectorCollectiveActionCoalitionAgainstCorruption (CAC) and completed theCACmembership certification in early 2015. Anti-corruption and briberyknowledge has been disseminated to employees atall levels of the Bank through internal communication

channels,includingtotherelevantentitiesandstakeholders oftheBank.Topromotetransparentandethicalbusiness practices, all employees of the Bank are required toenroll in in-house training courseswhich are related to anti-corruption,suchasthee-learningcoursesonanti-money laundering/combating the financing of terrorism (AML/CFT),andanti-corruptionandbriberyaswellas topass relevantteststocompletethecourses.Also,refreshercourses mustbecompletedwithindefinedperiods.Employeesarealsoencouragedtoparticipateinanti-corruptionactivitiesarrangedbyagenciesorinstitutionsasdetailedbelow: 1. Thailand’s 7th National Conference on Collective Action against Corruption, organized by the Thai InstituteofDirectorsAssociation. 2.CGForum3/2016onInternalCorruption:Preventable and Controllable Threat, organized by the Stock ExchangeofThailand. 3.Anti-CorruptionCollaboration:SinfulCorruptionand ConsequenceForumand the2016Anti-Corruption Dayorganizedby theAnti-CorruptionOrganization ofThailand. 4.Anti-CorruptionMeasuresofPrivateSector Forum organizedbytheOfficeoftheNationalAnti-Corruption Commission.

To activelymonitor and evaluate compliancewith the Anti-Corruption Policy, an assessment of the Bank’s corruption and bribery exposure has been regularly conducted; and the Audit Committee ismandated to oversee the Bank’s internal controls, whichmust be adequate and ef fect ive in p rotect ing the Bank from the risk of corruption and bribery, and to report the results to theBoard ofDirectors. In addition, there are internal units directly in charge of disseminating re levant knowledge to the d i rectors , execut ives and employees across the Bank to ensure proper understanding of the pol icy and practices and to promotestrictcompliance.

3.2 Contact Channels for StakeholdersTheBankprovidesmultiplechannelsforvariousgroupsofstakeholderstodirectlycontacttherelevantunitasfollows:

- Customersorthirdpartiescancommunicatewiththe Bankthroughstaffatbranchesorrelationshipmanagers orthroughtheCallCenterat0-2777-7777,orbywriting

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toaseniorexecutiveoftheBank.Allcommunications are trackedandusually responded towithina short specifiedperiod.- Employees are informed that theBankhasmultiple channelstoacceptcomplaintsandreportsofemployee misconduct. Employees can voice their opinionsand reportonanyunfair treatment, fraudulentactivityor suspicionofmisconductdirectlytotheirsupervisorsor throughotherchannels,anonymously ifpreferred,as follows: • SCB’sWhistleblower Policy provides a channel throughwhich employees can report complaints, fraudornon-compliancewiththeBank’sregulations, rulesandCodeofConductaswellasactsthatmay causedamage to customers and theSCBGroup, including any unfair treatment theymight have suffered.TheaimistoensuretheBank’sadherence to its principles of transparency and corporate governance. There are multiple channels for reportingcomplaints,fraudornon-compliance,e.g., via e-mail to whistleblower@scb.co.th or via posttoPOBox177,ChatuchakDeliveryPostOffice 10900, or via telephoneat0-2544-2000.A brief report on the action taken in this regard will bereportedtotheAuditCommitteeeveryquarter. • TheHRCallCenterat0-2544-4444isachannelfor employeestomakeinquiriesrelatedtoemployment and/orbenefitsortoshareopinions. • “Purple People Talk” is a channel throughwhich employees can voice their opinions, report issues or consultwith theheadofHumanResources via e-mail (purple_talk@scb.co.th) inorder tonurture SCBasagreatworkplace.

It is theBank’s policy toprotect the confidentiality and anonymity of employees report ing misconduct or complaintsinordertoprotectthemandpreventretaliationoradverseeffectsonthem.Anindependent,issue-specificinvestigationteamisquicklysetupbytheBanktoinvestigateanyissueorpossiblefraudulentbehaviorwhennotifiedbyanemployee,whenwarranted.Ifthegroundsforacomplaintareproven,thematterisescalatedfordisciplinaryactioninaccordancewiththefollowingprocedure: • Employeessubmitopinions, reports,orcomplaints relatingtofraudviaarangeofchannels,wherethey canchoose to remainanonymous, if they sowish, andthematterwillbetreatedasconfidential.

• TheWorkingTeamconductsapreliminaryinvestigation. Theprogresswillbereportedtotheinformantsifthey havechosentobeidentified. • TheWorkingTeamsubmitscomplaintsorreportsof misconduct that are well grounded to relevant unitsinordertoappointaninvestigationcommittee accordingtotheBank’sregulationsortotheFinancial Crime&SecurityServicesDivisionforfurtheraction.TheBank takes action as deemed appropriate in eachcasewithoutdisclosingthesourcesofinformationsoasto protectconfidentialityoftheinformants.

Further, all stakeholders can raise complaints, ormakesuggestionsorcommentstotheBoardandmanagementoftheBankthroughthefollowingaddress:

CompanySecretary TheSiamCommercialBankPCL ShareholderServicesandCorporateGovernance 21stFloorZoneA,9RatchadapisekRoad,Chatuchak Bangkok10900 Telephone:0-2544-7156 Fax:0-2937-7931 E-mail:company_secretary@scb.co.th

Also,theBankhasestablishedaclearpolicyandprocedure for handling complaints fromcustomers, suppliers andother stakeholders. All complaints received are kept confidential,investigatedandresolvedaswellasreportedtotheAuditCommitteeandtheBoard.

4. Disclosure and Transparency4.1 Disclosure Policy and Practice TheBank’sdisclosurepolicyandproceduresareincorporated within the Corporate Governance Policy, and InvestorRelationshasbeenassignedtheroleandresponsibilitytoprovidedisclosureoftheBank’sinformationinaccordancewiththefollowingprinciples:

1) Informationtobedisclosedmustbeaccurate,adequate andclearaswellasdisclosedonatimelybasis;2) Disclosuremustcomplywithallapplicable rulesand regulations;3)Stakeholdersincludingshareholders,investors,analysts andinterestedpersonsmusthaveequalrightofaccess totheinformationdisclosedbytheBank;and

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4)Information that couldaffect thepriceof theBank’s sharesor influence investors’ decisionsor affect the rightsofshareholdersmustbeimmediatelydisclosed, asappropriate,tothepublicthroughtheStockExchange ofThailand.

TheBankhasdesignatedofficersand InvestorRelationsto be responsible for disclosure aswell asmaintainingtheoperating resultsdisclosure scheduleas specified in theCorporateGovernancePolicy.Auditedannualfinancial statementsare releasedwithin60days from theendofeach financial year.Quarterly financial statements aredisclosedtogetherwiththeManagementDiscussionandAnalysis(MD&A)andarereleasedwithin45daysfromtheendofeachquartertohelpinvestorsbetterunderstandtheBank’soperatingresults.

Inaddition,theBank’sCorporateGovernancePolicyrequiresdirectors andmanagement todisclose their holdingsoftheBank’sshares.Changes in theholdingsof theBank’ssharesbydirectorsandmembersofmanagementin2016areshowninthe“ReportofBankOrdinaryShareholdingbyDirectorsandSeniorManagement”intheSupplementaryInformationsectionofthisAnnualReport.

In 2016, disclosure activities undertaken by Investor Relationsaresummarizedbelow:

Form of activity Frequency (times)

One-on-onemeetings/conferencecallswith

investorsandequityanalysts 89

Meetingswithequityanalysts 3

Investorconferences 8

Globalroadshow 1

TheBankalsoregularlyheldpressconferencesandmediaeventsandissuedpressreleasestopublicizeandpromoteitsactivities.

4.2 Investor RelationsInvestorRelations is a functional unit of theBank thatis responsible for the accuracy, adequacyand clarity of disclosureoftheBank’sinformationtoinvestorsonatimelybasis inaccordancewiththeBank’sdisclosureprinciplesandapplicable requirementsand regulations.Beyond itsplannedactivities such asmeetingswith investors andanalysts, participation at investor events andarrangingroadshows,InvestorRelationsservesastheprimarypointofcontact forall shareholders,analysts, fundmanagers,bondholdersandratingagencies.Thepresidentandchiefexecutiveofficer, chief financial officer andother seniorexecutivesparticipateininvestorrelationsactivities.

SCB’s InvestorRelationsCode of Conduct is publishedonwww.scb.co.thunderthesequenceofmenuheadings “About SCB,” “Investor Relations,” and then “Code of ConductforInvestorRelations.” InterestedpersonscancontactInvestorRelationsat:InvestorRelationsTheSiamCommercialBankPCL,9RatchadapisekRoad,Chatuchak,Bangkok10900Telephone:0-2544-4358Fax:0-2937-7721E-mail:investor.relations@scb.co.thWebsite:www.scb.co.th

4.3 auditorsTheauditors’ qualificationsare scrutinizedby theAuditCommittee in terms of their independence, suitability, accountability,andabsenceofanyconflictofinterestwithrespecttotheBankanditssubsidiaries,management,majorshareholdersor relatedparties thereof, andapprovalbytheSecuritiesandExchangeCommission(SEC).TheAuditCommitteealsoreviewstheannualauditfeesinviewofthescopeofauditandproposesthequalifiedauditorsandtheauditfeestotheBoardforconsiderationpriortoproposalthereoftotheAGMforapproval.

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TheBankanditssubsidiariespaidexternalauditfeesfor2016totallingBaht27.9million.TheBankanditssubsidiariespaidfeesforservicesotherthanstatutoryauditsasfollows:- Auditsandexaminationasrequiredbyregulatorsuch as special audits, examination of banking returns, information technology review covering electronic money transfer systemandaudit of theRisk-Based CapitalReports.- Examinationofforeignexchangebooths.- Taxservices.- Review of the embedded value report (Insurance company).- ReviewofFinancialReports. Non-audit fees to the external auditorswere Baht 9.2 millionin2016,ofwhichBaht1.2millionwaspaidin2016,andBaht8.0millionisduetobepaidin2017.

4.4 Compliance with the Principles of Good Corporate Governance as Stipulated by the Stock Exchange of ThailandTheBank aims to adhere to national and international corporategovernancestandards.However,certainpracticesoftheBankdidnotcomply,orcompliedonlyinpart,withtheprinciplesofgoodcorporategovernancestipulatedbytheStockExchangeofThailand,duetoreasonsassetoutbelow:

• Directorremunerationinallformsshouldbeapprovedby shareholdersonanannualbasis–TheBankproposes the director remuneration,which includesmonthly remuneration,attendancefeeandbonusforshareholders’ approvalonanannualbasis.Asregardsotherbenefits, theBank views that thedefinitionof other benefits

adoptedbydifferentorganizationsmayvaryduetothe lackofclarityinthisissue;thereforetheBankdoesnot include other benefits in the director remuneration proposedtothemeetingofshareholders.• Thedisclosedinformationaboutshareholdingstructure shouldclearlyspecifytheactualownersofSCBshares- TheBank’sshareholders includenomineecompanies becausetheseinstitutionalinvestorsareinterestedin investinginSCBshares,andthisisbeyondtheBank’s control.• The Board should have an appropriate number of members ranging from5 to 12–At theendof 2016, theBoardiscomprisedof16members.TheBankviews thatthenumberisappropriate,inlightofthegrowing sizeandcomplexityoftheBank’sbusiness.Giventhe rapidtechnologicalchanges,itisnecessaryfortheBank tohavedirectorswithdiverseexperience, knowledge andexpertisetomaintainitsstrongbusinessmomentum.• TheBankshouldincludeinitspolicyarequirementthat itsdirectorsandseniorexecutivesdeclaretotheBoard ordesignatedpersonstheirintenttotradeSCBshares at least 1businessday inadvanceof the transaction date – At present, no policy of the Bank explicitly requiressuchdeclaration,buttheBankalreadyhasin place clear regulations governing the prevention of insidertrading.TheseregulationsincludetheDirectors CodeofConduct,theEmployeeCodeofConduct,the rulesgoverningsecuritiestradingbydirectors,executives andemployees,theinsidertradingrule,theguidelineon declaration of securities holding by the directors, executivesandemployees,andthenon-tradingperiod ruleswithwhichthedirectors,executivesandemployees mustcomply.

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5. Responsibilities of the Board5.1 Board CompositionAt theendof 2016, theBankhad 16directors,while thenumber of total directors approved by themeeting ofshareholderswas17.TheBankselectsitsBoardmembersbasedonthecriteriaset forthby relevant regulatorsandwiththeaimoffosteringdiversityintermsofprofessionalskills,expertise,age,genderandotherkeyattributesthatareessentialfor,andinlinewith,theBank’sstrategy.

The 16 directors consist of 3women and 13menwith diverseprofessionalbackgroundsinbanking,accountingandfinance,businessadministration, strategicmanagement, riskmanagement, social responsibility and corporate governance, economics, laws, regulation of financial institutions,scienceandtechnology,andotherexperiencethat is consideredbeneficial and relevant to theBank’sbusiness.

*Theterm“independentdirector”hasthemeaningspecifiedintheBankofThailand’sNotificationNo.SorNorSor.13/2552Re:CorporateGovernanceofFinancialInstitutions,andtheCapitalMarketSupervisoryBoard’sNotificationNo.TorJor.39/2559,Re:ApplicationandApprovalforOfferingNewlyIssuedShares,and/ortheiramendments(ifany).Moreover,thenumberofsharesheldbyanindependentdirectorandhis/herrelatedpartiescombinedshallnotexceed0.5%ofthetotalvotingsharesoftheBank,ortheBank’sparentcompany,subsidiaries,orassociatecompanies,ormajorshareholders, orthepersonshavingtheauthoritytocontroltheBank.Thisshareholdingrestrictionofnotmorethan0.5%istheBank’sstandard,whichisahigherstandardthanthatsetbytheCapitalMarketSupervisoryBoard,whichprohibitsanindependent directorfromholdingmorethan1%ofthetotalvotingsharesofthecompanyofwhichhe/sheisadirector.

CompositionoftheBoardisasfollows:• The9independentdirectors*(representing56.25%of the total directors) are Mr. Anand Panyarachun, KhunyingJadaWattanasiritham,Mr.PrasanChuaphanich, Dr. Kulpatra Sirodom,Mr. Ekamol Kiriwat,Mr. Krirk Vanikkul,Dr.ThaweesakKoanantakool,Mr.Weerawong Chittmittrapap,andMr.KanTrakulhoon.• The3executivedirectors(representing18.73%ofthe total directors) are Dr. Vichit Suraphongchai,Mrs. KannikarChalitapornandMr.ArthidNanthawithaya.• The non-executive directors, which comprise 4 directors representing themajor shareholders, are Dr.ChirayuIsarangkunNaAyuthaya,M.R.DisnaddaDiskul, Dr.EknitiNitithanprapasandMr.ChakkritParapuntakul. ThenameoftheBank’sdirectorsandtheirrespective numberofyearsasdirectorareprovidedinTable1.

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Table 1: Board of Directors (As of 31 December 2016)

Name Position Date of appointment Number of years as director in directorship1)

1.Mr.AnandPanyarachun ChairmanoftheBoardand 6March1984 1stround:7years(1984-1991) IndependentDirector 2October1992 2ndround:24years3months (1992-present) 2. Dr.VichitSuraphongchai DirectorandChairmanofthe 10December1999 17years1month ExecutiveCommittee 3. Dr.ChirayuIsarangkun DirectorandChairmanofthe 18September1987 29years3months NaAyuthaya Nomination,Compensationand CorporateGovernanceCommittee 4.KhunyingJada IndependentDirector,Chairman 2February1999 17years11months Wattanasiritham2) oftheCorporateSocialResponsibility (Independentdirector:7years Committee,andMemberof 2months) theNomination,Compensationand CorporateGovernanceCommittee 5.Mr.PrasanChuaphanich IndependentDirectorand 4April2013 3years9months ChairmanoftheAuditCommittee 6.M.R.DisnaddaDiskul Director 22November1996 1stround:2years2months (1996-1999) 5April1999 2ndround:17years9months (1999-present) 7. Dr.KulpatraSirodom IndependentDirector,Memberofthe 19June2009 7years6months AuditCommittee,andMember oftheCorporateSocialResponsibility Committee 8.Mr.EkamolKiriwat IndependentDirectorandMemberof 5April2011 5years9months theAuditCommittee 9.Mr.KrirkVanikkul IndependentDirectorandMemberof 1November2015 1year2months theAuditCommittee10.Dr.ThaweesakKoanantakool3) IndependentDirectorandMemberof 5April2016 9months theAuditCommittee 11.Mr.WeerawongChittmittrapap IndependentDirectorandMemberof 22September2014 2years3months theNomination,Compensationand CorporateGovernanceCommittee 12.Dr.EknitiNitithanprapas DirectorandMemberofthe 25November2015 1year1month Nomination,Compensationand CorporateGovernanceCommittee 13.Mr.KanTrakulhoon4) IndependentDirectorandMemberof 5April2016 9months theNomination,Compensationand CorporateGovernanceCommittee 14.Mr.ChakkritParapuntakul DirectorandMemberoftheCorporate 25November2015 1year1month SocialResponsibilityCommittee 15.Mrs.KannikarChalitaporn Director,MemberoftheExecutive 21January2002 14years11months Committee,andMemberofthe CorporateSocialResponsibility Committee16.Mr.ArthidNanthawithaya PresidentandCEO,Memberofthe 2April2015 1year9months ExecutiveCommittee,andMember oftheCorporateSocialResponsibility Committee

Remark: 1) Informationasof31December2016. 2) KhunyingJadaWattanasirithamqualifiedasanindependentdirectorfrom19October2009. 3) Dr.ThaweesakKoanantakoolwasappointedasdirectorinreplacementofProf.VicharnPanich,M.D.,whoretiredbyrotation. 4) Mr.KanTrakulhoonwasappointedasdirectorinreplacementofMr.ChumpolNaLamlieng,whoretiredbyrotation.

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5.2 directors’ Term of positionOne-thirdof thetotalnumberofdirectorsmust retirebyrotationateveryannualgeneralmeetingofshareholders.Thosedirectorswhohaveheldofficeforthelongesttimeperiodshallretire.Incasethenumberofdirectorsisnotamultipleofthree,thenumberofdirectorstoretireshallbethenumberclosesttoone-thirdofalldirectors.Directors retiringbyrotationmaybere-electedtocontinuetheiroffice.

Toenhance transparencyandcorporategovernance, theBankhaslimitedtheofficetermofindependentdirectors tonineyears,effectivefrom2015onward.Asregardsthetenure of directors asmembers of Board committees,namely theExecutiveCommittee, theAuditCommittee,theNomination,CompensationandCorporateGovernanceCommittee,theCorporateSocialResponsibilityCommittee,andtheRiskManagementCommittee,theirtenureshallbeconcurrentwiththeirdirectorships.

5.3 Segregation of Roles, Duties and ResponsibilitiesThe Bank has clearly segregated the positions and authorityofthechairmanoftheBoard,thechairmanoftheExecutiveCommittee,andthepresidentandchiefexecutive officer to enhance the effectiveness of performance, governance and transparency of internal operations asfollows: Chairmanof theBoard - The chairmanof theBoardofDirectorsisanindependentdirectorandshallnotserveasthechairmanoftheExecutiveCommitteeorthepresidentandchiefexecutiveofficerof theBank,orbe involved intheBank’sroutinemanagement.Thisisincompliancewiththeprincipleofsegregationofdutiesinpolicyformulationandoversightfromthoseinoperationalmanagement.ThekeyrolesofthechairmanoftheBoardare:toensurethatBoardmeetingsareconductedeffectivelyandmattersthatareessentialtotheBank’soperationsand/orperformanceareplacedon themeeting agenda, particularlymattersrelated to corporate strategy; to allocate sufficient timeformanagementtopresentclearandtimelyinformation;toallowattendingBoardmemberstovoicetheiropinionsandaskquestions;andtoensurethatBoardresolutionsareclearandthemeetingminutesarecorrect.ThechairmanoftheBoardalsopresidesovertheshareholders’meeting.AnotherkeyroleofthechairmanistoensurethattheBank’sgovernancepractices,suchasthecompositionoftheBoard,directors’performanceofduties,andsuccessionplanning

fortopexecutives,isincompliancewithadoptedpolicies.ChairmanoftheExecutiveCommittee-ThechairmanoftheExecutiveCommittee is aBoard-appointeddirector withpowersanddutiestomanageandcontrolthebusinessof theBankasdelegatedby theBoard.Thechairmanof theExecutiveCommittee is empowered todevelopand implement key strategies and practices relating to thebusiness of the Bank, in addition to responsibilities as the chairman of other Board committees. The role ofthechairmanoftheExecutiveCommitteealsoincludes ensuring the Executive Committee’s compliancewith its charter, andexecutionofdocumentsor contractson behalf of theBank.TheExecutiveCommitteeCharter isavailable on theBank’swebsite (www.scb.co.th) underthesequenceofmenuheadings“AboutSCB,”“CorporateGovernance,” and then “Charter of theBoardandBoardCommittees.” PresidentandChiefExecutiveOfficer-In2016,theBoardappointedMr.ArthidNanthawithaya,adirectoroftheBank,asthepresidentandchiefexecutiveofficer(hewasformerlythe chief executive officer anddeputy chairman of the Executive Committee) to be principally in charge of settingtheBank’sstrategicdirectionandpolicies,overseeinginternaloperationstoensurecompliancewithestablishedplansandthecorporategovernanceprinciples,andleadingtheBanktowardtherealizationofitsvisionandsustainablegrowth.

5.4 Directorships of Other CompaniesTheBankhasestablishedaclearpolicyregardingholdingofpositionsbytheBank’sdirectors(andseniorexecutives)inothercompanies.TheBank’sdirectorsarenotallowedtoholddirectorshipinmorethanfivelistedcompanies,whichisinlinewiththebestpracticesetbytheThaiInstituteofDirectorsAssociation.Further,inordertocomplywiththeregulationsoftheBankofThailandregardingthecorporategovernanceoffinancialinstitutions,holdingofpositionsbydirectorsand/orseniorexecutivesoftheBankasthechairman,oranexecutivedirector,oranauthorizeddirectorofothercompaniesislimitedtothreebusinessgroupsonly. Further to the policies stated above, the Bank has an internalguidelinepertainingtoholdingofpositionsinothercompanies.ThisrequiresdirectorstonotifytheNomination,CompensationandCorporateGovernanceCommitteeoftheirpositionsinothercompaniesororganizationssothat

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theNomination,CompensationandCorporateGovernance Committee can review the appropriateness of the appointment and compliancewith relevant laws andregulations.ThecompanysecretaryshallregularlyreportchangesinpositionsofdirectorstotheBoardofDirectors.Informationaboutpositionsheldby theBank’sdirectorsin other companies is disclosed to shareholders in this AnnualReport.Inthisregard,nodirectorholdspositionsinmorethanfivelistedcompanies,andnodirectororseniorexecutiveoftheBank(executivevicepresidentorhigher)holdspositionsasdirectorand/orexecutivedirectorand/orauthorizeddirectorofothercompaniesinmorethanthreebusinessgroups.

5.5 Roles and Responsibilities of the Board of DirectorsTheBoardofDirectorsiscommittedtopursuingthehigheststandardsofethicalconductandcomplyingwithrelatedlegalrequirements.TheBoard’sroles,dutiesandresponsibilities shall be in accordancewith those specifiedby law, theBank’sMemorandumandArticles of Association, andthe resolutionsof the shareholders suchasdeterminingpolicies, strategies and financial targets of theBank. Intheprior fiscal year, theBoard conductedmid-year andyear-endreviewsoftheBank’svision,missionandbusiness strategy,which, according to applicable requirements,mustbereviewedannually.TheBoardisalsoresponsiblefor approvingbusinesspoliciesanddirectionsproposedbymanagementandoverseeing theperformanceof themanagementtoensurethatthepoliciesandstrategiesareimplementedandthefinancialtargetsareachieved.Theaimistomaximizelong-termshareholdervaluebytakingintoaccountthebestinterestsofallrelevantstakeholders. TheBoard’s responsibilities include regularly reviewingsuccessionplansforthepositionsofthechairmanoftheExecutiveCommitteeandthepresidentandchiefexecutive officer,establishingthestructureandprocessesthatensure there are appropriate systems and processes for risk management,auditandcompliance,andinternalcontrol.Suchsystemsandprocessesshallbe regularly reviewed.Detailsoftheroles,responsibilitiesandapprovalauthority of theBoard are available onwww.scb.co.th under thesequence ofmenu headings “About SCB,” “Corporate Governance,”“CharteroftheBoardandBoardCommittee,”and then “Charter of theBoardofDirectors” (under thesection“AuthorityoftheBoard”).

Inadditiontocomplyingwiththerelevantlawsandregulationsasmentionedabove, theBoard is committed toabidingbytheDirectorsCodeofConduct,whichprovidesethicalstandards governing: a) honesty, fairness and integrity,b)personaltransactions,c)confidentiality,d)disclosureof interest,e)abidingby the law,and f)payments,gifts, entertainmentandtravel.Inaddition,theBoard,theBank’sexecutivesandemployeesarecommitted toadhering totheprinciplesunder theCorporateCodeofConduct, the DirectorsCode of Conduct, and the EmployeeCode ofConduct.DetailsregardingtheCorporateCodeofConduct,theDirectorsCodeofConduct,andtheEmployeeCodeofConductareavailableonwww.scb.co.thunderthesequenceofmenuheadings “AboutSCB,” “CorporateGovernance,”andthen“CodeofConduct.”

5.6 committeesThefollowingcommitteeshavebeensetupbytheBoardanddelegated to reviewor oversee specificmatters to supporttheBoard’sperformanceofduties. 5.6.1 board committees TheBankhasfourBoardcommittees,namelythe ExecutiveCommittee,theAuditCommittee,the Nomination, Compensation and Corporate GovernanceCommittee,andtheCorporateSocial ResponsibilityCommitteetoassisttheBoardin screening specificmatters as assigned by the Board. Themeeting schedule of each Board committee isplanned inadvance for theentire year.TherolesandresponsibilitiesofeachBoard committeeareclearlydefinedinitscharter,which isavailableonwww.scb.co.thunderthesequence of menu headings “About SCB,” “Corporate Governance,” and then “Charter of the Board and Board Committees.” A summary of each committee’soperationsin2016isasfollows:

• executive committee TheExecutiveCommittee is appointedby theBoard and comprises a number of directors andany other personorpersonswhoholdmanagementpositionsat theBankorareoutsideindividuals.Formembersofthe ExecutiveCommittee servingas theBank’sdirectors, theirtermsontheExecutiveCommitteeareconcurrent with theirdirectorships.Asat31December2016, the

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ExecutiveCommitteehad10memberscomprisingthree directors,namelyDr.VichitSuraphongchai(chairman oftheExecutiveCommittee),Mrs.KannikarChalitaporn, andMr.ArthidNanthawithaya,sixseniorexecutivevice presidentsoftheBank,andanoutsideindividualwho wasaformerseniorexecutiveoftheBank.TheBoard,at itsMeetingNo.15/2016on25November2016,resolved to appoint the new Executive Committeewhich is comprisedoffivememberswhoallaredirectorsofthe Bank,namelyDr.VichitSuraphongchai(chairmanofthe Executive Committee),Mrs. Kannikar Chalitaporn, Mr.KirkVanikkul(independentdirector),Dr.Thaweesak Koanantakool (independentdirector) andMr.Arthid Nanthawithaya,effectivefrom1January2017. The major functions and responsibilities of the ExecutiveCommitteeare tomanageandoversee the Bank’s business in accordance with the Bank’s strategiesandpolicies,undertakingsupervisoryduties asassignedby theBoard, screeningallmattersprior to submission to theBoard, andapproving requests withinthescopeofauthoritydelegatedbytheBoard andstipulatedinthecharteroftheExecutiveCommittee. In2016,theExecutiveCommitteeheld48meetings.

• audit committee TheBoard initially appointedanAuditCommittee in 1998withresponsibilitiesinseveralareas,e.g.,financial reporting, internal control, internal audit, corporate governance, and compliancewith ethics, code of conduct and riskmanagement principles. These responsibilitiesinclude:toreviewtheBank’sfinancial statements to ensure theaccuracyandadequacyof such statements; to ensure that the Bank has appropriateandeffectiveinternalcontrolandinternal audit;toreviewtheeffectivenessoftheBank’scompliance monitoringsystem;toreviewtheefficiencyoftherisk management systemof theBankandSCBFinancial Group;andtoperformotherdutiesasstipulatedinthe charteroftheAuditCommittee,etc.Anotherkeyrole oftheAuditCommitteeistoproposetheappointment and discharge of external auditors, including the correspondingauditfees,totheBoardforconsideration priortoseekingapprovalfromtheAGMonanannual basis. Further, the Audit Committee is taskedwith assessingtheexternalauditors’performance.Asat31

December2016,theAuditCommitteeiscomprisedof f ive independent directors, namely Mr. Prasan Chuaphanich (chairman of the Audit Committee), Dr. Kulpatra Sirodom,Mr. Ekamol Kiriwat,Mr. Krirk Vanikkul and Dr. Thaweesak Koanantakool. Their tenureson theAuditCommitteeare concurrentwith theirdirectorships.EverymemberoftheAuditCommittee possesses extensive knowledge and experience in the reviewoffinancial statements, and thereare two memberswhograduated in accountingand finance. Detailsofitsactivitiesin2016areasshownintheAudit CommitteeReportinthisAnnualReport.

TheBoard,atitsMeetingNo.15/2016on25November 2016, resolved to appoint two members of the Audit Committee, namely Mr. Kirk Vanikkul and Dr. Thaweesak Koanantakool, asmembers of the ExecutiveCommittee,andtheyresignedasmembers oftheAuditCommittee,effectivefrom1January2017. Therefore , the Aud i t Committee i s cur rent ly comprised of threemembers, namelyMr. Prasan Chuaphanich (chairman of the Audit Committee), Dr.KulpatraSirodomandMr.EkamolKiriwat.

• Nomination, Compensation and Corporate Governance committee The threemain responsibilities of theNomination, CompensationandCorporateGovernanceCommittee are: 1) To nominate individuals for the position of directoroftheBankaswellastoproposefortheBoard’s endorsement the appropriate remuneration for members of the Board and the Board committees priortoreferringthemattertotheshareholders’meeting forapproval;2)Tonominateindividualsfortheposition ofseniorexecutiveandensurethattheirremuneration iscommensuratewiththeirrolesandresponsibilities; and 3) To formulate theBank’s policy in respect of corporategovernanceandoverseetheBank’scorporate governancepracticesinaccordancewiththecorporate governanceprinciplessetforthbyregulatoryauthorities. Details regarding roles and responsibilities of the Nomination,CompensationandCorporateGovernance CommitteeareelaboratedintheCharteroftheNomination, CompensationandCorporateGovernanceCommittee.

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Asat31December2016,theNomination,Compensation andCorporateGovernanceCommittee is comprised of five directors, namelyDr. Chirayu IsarangkunNa Ayuthaya(chairmanoftheNomination,Compensation and Corporate Governance Committee), Khunying Jada Wattanasir itham (independent director) , Mr.WeerawongChittmittrapap(independentdirector), Mr. Kan Trakulhoon (independent director), and Dr. Eknit i Nit ithanprapas. Their tenures on the Nomination,CompensationandCorporateGovernance Committee are concurrentwith their directorships. Detailsofitsactivitiesin2016areshownintheReport of the Nomination, Compensation and Corporate GovernanceCommitteeinthisAnnualReport. • Corporate Social Responsibility Committee TherolesandresponsibilitiesoftheCorporateSocial Responsibility Committee are to set direction and superviseanddetermineaCSRframeworkwiththeaim tocontributetoThailand’seconomy,socialwelfareand theenvironment.TheCorporateSocialResponsibility Committee focusesonbuildinga strong foundation, nurturing new initiatives, developing networks and sustaining success in the following three coreareas: 1) youth development and learning enhancement, 2)volunteer networks, and 3) quality of life and the environment.Asat31December2016, theCorporate SocialResponsibilityCommittee is comprisedof five directors, namely Khunying JadaWattanasiritham, (chairman of the Corporate Social Responsibility Committee,independentdirector),Dr.KulpatraSirodom (independent director),Mr. Chakkrit Parapuntakul, M r s . Kann i ka r Cha l i t apo rn and M r. A r t h i d Nanthawithaya. Their tenures on the Corporate Social Responsibility Committee are concurrent with their directorships. Details of its activities in 2016areshownintheReportoftheCorporateSocial ResponsibilityCommitteeinthisAnnualReport.

5.6.2 Major Committees Relating to Management of the Bank There are four key committees relating to the managementoftheBank,namelytheManagement Committee, theRiskManagementCommittee, theAssetsandLiabilitiesManagementCommittee andtheEquityInvestmentManagementCommittee.

Therolesandresponsibilitiesofeachcommittee canbesummarizedasfollows:

• Management Committee TheManagementCommitteeisresponsibleforformulation oftheBank’sbusinessplanandannualactionplan;the Committeeisalsoinchargeofreviewingtheoperational resultsandformulatingbusinessstrategiesforcompetitive success,aswellasmonitoringandprovidingdecisions onmajorprojectsoftheBank.In2016,theManagement Committeeheld33meetingstocarryoutitsduties.

• Risk Management Committee TheRiskManagementCommitteeischieflyresponsible fortheriskgovernanceoftheBankandcompaniesin theSCBFinancialGroup.Itsdutiesandresponsibilities areasdetailedbelow:

1.To determine and propose to the Executive Committee and the Board the riskmanagement policies for the Bank and companies in the SCB FinancialGroup,wherebysuchpoliciesmustaddress material risks such as credit, market, liquidity, operational, and reputational risks of the SCB FinancialGroup. 2.Todetermine strategieswhichare in linewith risk managementpoliciesandcanmeasure,monitorand control risksof theSCBFinancialGroupwithinan appropriatelevel. 3.Toapproveriskmodels. 4.Tocontrol,monitorandmeasure the riskexposure ofSCBFinancialGroupandensurethatcompaniesin SCB Financial Group strictly comply with risk management policies set by the Bank and the requirementsstipulatedbytheBankofThailand. 5.ReviewtheadequacyoftheBank’sriskmanagement policiesandsystems,includingtheeffectivenessof thesystemsandcompliancewithestablishedpolicies. 6.RegularlyreporttotheAuditCommitteetheareasfor improvementinworkingtocomplywithestablished policiesandstrategies.

TheBoardofDirectors,atitsMeetingNo.7/2016on23 August2016,resolvedtoapprovethestructureofthe RiskManagementCommittee,whichshallbecomposed ofthefollowingexecutives:

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1.Presidentandchiefexecutiveofficer,asthechairman oftheRiskManagementCommittee 2.Chiefriskofficer 3.Chieffinancialofficer 4.Chieflegalandcontrolofficer 5.Chieftechnologyofficer 6.Chiefstrategyofficer 7.HeadofSCBEconomicIntelligenceCenter 8.Headofcreditriskmanagement

In 2016, the RiskManagement Committee held 11 meetings.

• Assets and Liabilities Management Committee TheAssets and LiabilitiesManagementCommittee isamechanismintheBank’smanagementof its liquidity risk, interest rate riskandexchange rate risk.Thekey responsibilitiesaretoformulatestrategiestoaddress the funding and liquidity, interest rate and foreign exchangeriskfacedbytheBankaswellastoensurethat theBankhasadequatecapitalforitsbusinessaswell astheappropriatelevelofTierIIcapital.Also,itensures effectiveandefficientasset/liabilitymanagementand theabilityoftheBanktoeffectivelyrespondtoadverse economicconditionsandunexpectedshocks.In2016, theAssetsandLiabilitiesManagementCommitteeheld 12meetings.

• Equity Investment Management Committee The Equity InvestmentManagement Committee’s responsibilitiesaretoreviewandapproveinvestmentin, or divestment of, equities in theBank’s investment portfolio, including the investment and operational processassociatedwith the investment. In 2016, the Equity Investment Management Committee held 1meeting.

5.7 Board MeetingsMeetingsoftheBoardofDirectorsareheldinaccordancewiththerulesandproceduresspecifiedintheCharteroftheBoardandtheCorporateGovernancePolicy.ThemeetingscheduleoftheBoardisplannedinadvancefortheentireyear.Thechairmanof theBoarddetermines theagendaof eachBoardmeeting. The chairmanof the Executive Committee, thepresident and chief executiveofficer aswell asdirectors canproposeagenda items through thecompany secretary. In addition, theBoard has a policytocall forameetingof thenon-executivedirectorsona semi-annual basis. As far as possible, the meeting documents are del ivered to directors seven days inadvanceofeachBoardmeetinginorderthatthedirectors have sufficient time to study the documents.Directorscanrequestadditional informationthroughthecompanysecretary.

At eachBoardmeeting, executivesare invited toattendthemeeting on agenda items concerning their areas ofresponsibility in order toprovide relevant information tothe directors. Such discussions andmeetings betweendirectorsandexecutivesarealsobeneficial forexecutivesuccessionplanning.Inaddition,theBoardhasestablishedapolicythatifthemeetinghasanagendaitemtobevotedon,atleasttwo-thirdsofthetotalboardmembersmustbepresentatthemeeting.

In2016,therewere16Boardmeetings(includingaBoardretreat) and twonon-executivedirectors’meetings (ledbyanindependentdirector).Detailsofdirectors’meetingattendancein2016areasshowninTable2.

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Table 2: Details of Meeting Attendance Record in 2016

1. Mr.AnandPanyarachun 16/16 - - - - 1/1

2. Dr.VichitSuraphongchai 15/16 44/48 - - - 1/1

3. Dr.ChirayuIsarangkunNaAyuthaya1) 16/16 - - 3/3 8/8 1/1

4. KhunyingJadaWattanasiritham2) 15/16 - - 9/9 11/11 1/1

5. Mr.PrasanChuaphanich 14/16 - 12/12 - - 1/1

6. M.R.DisnaddaDiskul 11/16 - - - - 1/1

7. Dr.KulpatraSirodom3) 14/16 - 12/12 5/6 - 1/1

8. Mr.EkamolKiriwat 16/16 - 11/12 - - 1/1

9. Mr.KrirkVanikkul4) 16/16 - 9/9 - 3/3 1/1

10. Dr.ThaweesakKoanantakool5) 8/12 - 6/9 - - -

11. Mr.WeerawongChittmittrapap6) 15/16 - 2/3 - 7/8 1/1

12. Dr.EknitiNitithanprapas 13/16 - - - 8/11 1/1

13. Mr.KanTrakulhoon7) 10/12 - - - 8/8 -

14. Mr.ChakkritParapuntakul8) 14/16 - - 3/6 3/3 1/1

15. Mrs.KannikarChalitaporn 15/16 40/48 - 9/9 - 1/1

16. Mr.ArthidNanthawithaya 15/16 44/48 - 8/9 - 1/1

17. Prof.VicharnPanich,M.D.5) 4/4 - - 3/3 - 0/1

18. Mr.ChumpolNaLamlieng7) 4/4 - - - 3/3 1/1

19. Mr.YolPhokasub9) 12/12 35/39 - 6/7 - 1/1

Remark: 1) Dr. Chirayu IsarangkunNaAyuthaya resigned from theCorporateSocialResponsibilityCommittee andwasappointed as the chairmanoftheNomination,CompensationandCorporateGovernanceCommitteetoreplaceMr.ChumpolNaLamlieng,effective from5April2016. 2) Khunying JadaWattanasirithamwasappointedas the chairmanof theCorporateSocialResponsibilityCommittee to replace Dr.ChirayuIsarangkunNaAyuthaya,effectivefrom5April2016. 3) Dr.KulpatraSirodomwasappointedasamemberoftheCorporateSocialResponsibilityCommittee,effectivefrom5April2016. 4) Mr.KrirkVanikkulresignedasamemberoftheNomination,CompensationandCorporateGovernanceCommitteeandwasappointed asamemberoftheAuditCommittee,effectivefrom5April2016. 5) Dr.ThaweesakKoanantakoolwaselectedbytheAGMNo.193asadirectortoreplaceProf.VicharnPanich,M.D.whocompletedhis directorshipterm,effectivefrom5April2016.Dr.ThaweesakwasalsoappointedasamemberoftheAuditCommittee,effective from5April2016. 6) Mr.WeerawongChittmittrapapresignedasamemberoftheAuditCommitteeandwasappointedasamemberoftheNomination, CompensationandCorporateGovernanceCommittee,effectivefrom5April2016. 7) Mr.KanTrakulhoonwaselectedbytheAGMNo.193asadirectortoreplaceMr.ChumpolNaLamliengwhocompletedhisdirectorship term, effective from5April 2016.Mr.Kanwasalsoappointedasamember of theNomination,CompensationandCorporate GovernanceCommittee,effectivefrom5April2016. 8) Mr.ChakkritParapuntakulresignedasamemberoftheNomination,CompensationandCorporateGovernanceCommitteeandwas appointedasamemberoftheCorporateSocialResponsibility,effectivefrom5April2016. 9) Mr.YolPhokasubresignedasadirector,memberoftheExecutiveCommitteeandmemberoftheCorporateSocialResponsibility Committee,effectivefrom16September2016.

name board of directors

executive committee

audit committee

Corporate Social

Responsibility committee

nomination, Compensation and Corporate

governance committee

Annual General

Meeting of Shareholders

no. 193

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5.8 board and senior executive assessment

5.8.1 assessment of the board of directors and board committees The Board assessment is divided into four parts covering:1)self-assessmentofindividualdirectors; 2) assessment of the chairman of the Board; 3) assessment of the Board as a whole; and 4) assessment of Board committees. As part of theassessmentprocess, thedirectors’opinionson the performance of the company secretary team thatsupportstheBoardaresolicited.

TheBoardassessment is conductedannually.The companysecretarysubmitsanassessmentformto each director at the end of each year before collecting andpresenting the assessment results to theNomination, Compensation andCorporate Gove rnance Commi t tee . The resu l t s and recommendationsare then reported to theBoard for acknowledgment and d iscuss ion about how to further enhance the performance of the Boardandthesupportteam.

Additionally, toensureeffectiveassessmentofthe Board in accordancewith theStock Exchangeof Thai land’s corporate governance pr inc ip les applicable to l isted companies, the Bank has engagedan external consultantwithprofessional expertiseandexperienceincorporategovernanceto facilitateaboardassessmenteverythreeyears,starting from2012.Theassessmentfacilitatedbyanexternal consultantcoverstheaforesaidfourdimensionsas well.AccordingtotheassessmentresultsoftheBoard for 2016, the average rating was good, i.e., the performanceoftheBoardandtheBoardcommittee inmostofthecategoriessurveyedmetorexceeded the targets, and there were recommendations f rom the d i rectors about areas for fur ther development. The Board noted the assessment results and aspired to improve upon certain areasbasedon the findings from theassessment withanaimtofurtherincreaseitseffectiveness

5.8.2 senior executive assessment Prior to proposing thematter to the Board for approval, the Nomination, Compensation and

CorporateGovernanceCommitteeisresponsiblefor assessing the performance of the Bank’s senior executives, namely the chairmanof theExecutive Committee,thepresidentandchiefexecutiveofficer, andseniorexecutivesholdingthepositionofexecutive vicepresidentandhigher,onanannualbasis.

5.9 procedure for nomination of directors and senior executivesTheNomination,CompensationandCorporateGovernance Committee is responsible for screening and proposingto theBoardqualified candidates thatmeet theBank’s strategies to serve as directors andmembers of Board committees based on each candidate’s knowledge, capabilities,expertise,andtheexperiencerequiredforanyvacancy,byusingaboardskillmatrixasatool,aswellas,inthecaseofindependentdirectors,theirindependence.Withregard to thedirectors representingmajor shareholders,inprinciple, themajorshareholdersnominate individualstobeelectedas theBank’sdirectorsand theBoard is inchargeofverifyingthatthequalificationsofsuchindividualsnominatedarenotcontrarytorelevantlawsandconformtotheBank’spoliciesgoverningdirectors’holdingofpositioninothercompanies.TheNomination,CompensationandCorporateGovernanceCommitteeselectscandidatesfordirectorshipfromthedirectorpooloftheThaiInstituteofDirectorsAssociation(IOD)andtheproposalssubmittedbythedirectorsandtheshareholdersoftheBank.Aftera scrutiny of each candidate’s qualifications to ensure compliancewith lawsand regulations, theNomination,CompensationandCorporateGovernanceCommitteewillpropose the nomination to theBoard for consideration.Following the Board’s endorsement of the nominated candidates, the Bank wi l l consult with and seek endorsementfromtheBankofThailandpriortoproposing the nomination to the shareholders, if applicable, for approvaloftheappointment.

Toensurethatthedirectornominationandselectionarein linewith theBank’sstrategicandbusinessdirection, theNomination, Compensation andCorporateGovernanceCommitteehasrefinedthequalificationscreeningcriteriawhichspecifythethreeaspectsofpersonalcharacteristicsand expertise that constitute the desiredqualifications of directors: (1) Knowledge, expertise or experience in macro-levelmanagement, (2) Knowledge, expertise or specific experience in themanagement of financial

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institutions, and (3)Knowledge, expertiseor experiencein other fields that is deemeduseful to theBoard. TheNomination, Compensation andCorporateGovernanceCommitteealsoregularlyreviewedandupdatedtheboardskillmatrixfortheeffectivenessofthedirectorscreeningandnomination.

TheNomination,CompensationandCorporateGovernanceCommitteeisalsoresponsibleforreviewingandscreeningthequalificationsofcandidatesforpositionsatthelevelofexecutivevicepresidentandhigher,priortoproposingthenominationstotheBoardforapprovalandsubsequentlytotheBankofThailandforendorsementoftheappointment.Theabove-mentionedprocessesfornomination,selection andappointmentof directors and senior executives areconductedby theBoard, theNomination,Compensation and Corporate Governance Committee and relevant managementwithoutanydiscriminationon thegroundsofrace,religiousbelief,gender,maritalstatusorphysicaldisability.

5.10 Succession PlanningTheBoardhasassigned theNomination,CompensationandCorporateGovernanceCommitteetheresponsibilityforsuccessionplanninginordertoensurethattheBankhasinplaceasuccessionplanthatincorporatesthenomination,selection and training for key positions, particularly the positionsofchairmanoftheExecutiveCommittee,presidentandchiefexecutiveofficer,andexecutivesatthelevelofexecutivevicepresidentorhigher,toensurethecontinuityof theBank’smanagement andbusiness operations asandwhenexecutivepositionsbecomevacantduetonewappointment, job transfer, retirement, resignationor anyotherreasons.

Also,theBankhasregularlyrefinedthecompetencysetsformanyseniorpositionsandjobfamiliesinsupportofthedevelopmentofcareerroadmapandsuccessionplanning.

5.11 director and executive remuneration 5.11.1 director remuneration TheBoardhasapolicythatdirectorremuneration should be commensuratewith the duties and responsibilitiesthatdirectorsundertaketoaddress stakeholders’ expectations and in accordance withapplicablelawsandregulations.Asaresult, theBank’s directorsmustpossess appropriate experience and qualifications and be offered remunerationappropriateto theircontributions andresponsibilities.TheNomination,Compensation andCorporateGovernanceCommitteeisresponsible forproposing remunerationofmembersof the BoardandBoard committees to theBoard for considerationand,subsequently,forproposalto shareholdersforapprovaleachyear. At the2016AGM, the shareholders resolved to approvethatthechairmanoftheBoardreceivea remunerationofBaht1.8millionperyear,andeach memberoftheBoardreceivearemunerationof Baht1.2millionperyear.Theseratesareconsistent with those adopted since 2000. In 2016, the BoardofDirectors,comprising19directors(including thosestartingorretiringduringtheyear),received anaggregateremunerationofBaht20.65million.

AtthesaidAGM,shareholdersapprovedabonus paymenttodirectorsatarateofnotmorethan 0.5percentofthedividend,andauthorizedthe Board to determine how the bonus should be distr ibuted within the said framework. As shareholders approveda dividendpayment of Baht 18,696millionorBaht5.50per share for theBank’s2015operatingresults,thedirectors’ bonusfor2015performancewassetatBaht54 millionor0.29%ofthedividend.

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executive committee

• Chairman

• Member

AuditCommittee

• Chairman

• Member

Nomination, Compensation and Corporate Governance

committee

• Chairman

• Member

Corporate Social Responsibility Committee

• Chairman

• Member

-

300,000

75,000

50,000

45,000

30,000

45,000

30,000

-

-

15,000

10,000

15,000

10,000

15,000

10,000

Committee Monthly remuneration (Baht) Attendance fee (Baht/meeting)

Remark: Thechairmanof theExecutiveCommittee, thepresidentandchiefexecutiveofficer, andother seniorexecutives oftheBankdonotreceiveremunerationforservingonBoardcommittees.

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1. Mr.AnandPanyarachun 1.80 - - - - 5.06

2. Dr.VichitSuraphongchai 1.20 - - - - 3.38

3. Dr.ChirayuIsarangkunNaAyuthaya1) 1.20 - - 0.12 0.52 3.38

4.4.KhunyingJadaWattanasiritham2) 1.20 - - 0.61 0.47 3.38

5.Mr.PrasanChuaphanich 1.20 - 1.10 - - 3.38

6. M.R.DisnaddaDiskul 1.20 - - - - 3.38

7. Dr.KulpatraSirodom3) 1.20 - 0.73 0.32 - 3.38

8. Mr.EkamolKiriwat 1.20 - 0.72 - - 3.38

9. Mr.KrirkVanikkul4) 1.20 - 0.53 - 0.12 0.56

10.Dr.ThaweesakKoanantakool5) 0.89 - 0.50 - - -

11.Mr.WeerawongChittmittrapap6) 1.20 - 0.19 - 0.34 3.38

12. Dr.EknitiNitithanprapas 1.20 - - - 0.44 0.34

13.Mr.KanTrakulhoon7) 0.89 - - - 0.35 -

14.Mr.ChakkritParapuntakul8) 1.20 - - 0.30 0.12 0.34

15.Mrs.KannikarChalitaporn 1.20 3.60 - 0.45 - 3.38

16.Mr.ArthidNanthawithaya 1.20 - - - - 2.53

17. Prof.VicharnPanich,M.D.5) 0.31 - - 0.19 - 3.38

18.Mr.ChumpolNaLamlieng7) 0.31 - - - 0.19 3.38

19.Mr.YolPhokasub9) 0.85 0.75 - 0.09 - 2.53

20.Mr.MarisSamaram10) - - - - - 0.85

21. Mr.ApisakTantivorawong11) - - - - - 2.11

22.Mr.KulitSombatsiri12) - - - - - 2.53

Total 20.65 4.35 3.77 2.08 2.55 54.00

name board of directors

executive committee

audit committee

Corporate Social

Responsibility committee

nomination, Compensation and Corporate

governance committee

directors’bonus for 2015

performance

Remark: 1) Dr.ChirayuIsarangkunNaAyuthayaresignedfromtheCorporateSocialResponsibilityCommitteeandwasappointedasthechairman oftheNomination,CompensationandCorporateGovernanceCommitteetoreplaceMr.ChumpolNaLamlieng,effectivefrom5April2016. 2) Khunying JadaWattanasirithamwasappointedas thechairmanof theCorporateSocialResponsibilityCommittee to replaceDr. ChirayuIsarangkunNaAyuthaya,effectivefrom5April2016. 3) Dr.KulpatraSirodomwasappointedasamemberoftheCorporateSocialResponsibilityCommittee,effectivefrom5April2016.4) Mr.KrirkVanikkulresignedasamemberoftheNomination,CompensationandCorporateGovernanceCommitteeandwasappointed asamemberoftheAuditCommittee,effectivefrom5April2016. 5) Dr.ThaweesakKoanantakoolwaselectedbytheAGMNo.193asadirectortoreplaceProf.VicharnPanich,M.D.,whocompletedhis directorshipterm,effectivefrom5April2016.Dr.ThaweesakwasalsoappointedasamemberoftheAuditCommittee,effectivefrom 5April2016.6) Mr.WeerawongChittmittrapapresignedasamemberoftheAuditCommitteeandwasappointedasamemberoftheNomination, CompensationandCorporateGovernanceCommittee,effectivefrom5April2016. 7) Mr.KanTrakulhoonwaselectedbytheAGMNo.193asadirectortoreplaceMr.ChumpolNaLamlieng,whocompletedhisdirectorship term, effective from5April 2016.Mr. Kanwas also appointed as amember of theNomination, Compensation andCorporate GovernanceCommittee,effectivefrom5April2016.

RemunerationofindividualdirectorsisshowninTable3.Table 3: Details of Pecuniary Remuneration of Individual Directors in 2016.

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5.11.2 executive remuneration committees TheNomination,CompensationandCorporate Governance Committee is responsible for proposingremunerationforexecutives,including the president andchiefexecutiveofficer, to the Boardforendorsement.Theremunerationshould be appropriate for and in linewith theBank’s policies as well as reflect short-term and long-termcorporateperformanceandindividual performance.Theperformanceisassessedand benchmarked against KPIs, which include financialindicators,customer-relatedindicators aswell as indicators relating towork process improvementandpeopledevelopment,tobuild a sol id foundation for sustainable successof theBank.The remuneration is assessed using t ransparent criteria, scope of responsibilities andcompetitiveness of the Bank as compared to leading financial institutionsandcompanies inThailand.

In accordancewith the definition determined by the Office of Securit ies and Exchange Commission,theterm“executives”refersto“the managerorthenextfourexecutivessucceeding themanager, the persons holding equivalent positiontothefourthexecutive,andshallinclude the persons holding the position ofmanager or equivalent in the accounting or finance departments.”In2016,thenumberoftheBank’s executives using this definition covered nine pe rsons , and co l lect ive ly they rece ived remuneration in the form ofmonthly salary, bonus andallowances of Baht 334.53million (inclusive of two executiveswho resignedand changed their positions during the year). On the other hand, the term “executives” according to the definition of the Bank of Thailand refers to executives holding the position of executive vice president level and

higher. In 2016, the number of the Bank’s executives using this definit ion covers 94 pe rsons , and co l lect ive ly they rece ived remuneration in the form ofmonthly salary, bonus and a l lowances of Baht 1 ,334.78 million (inclusiveof 11 executiveswho resigned duringtheyear). 5.11.3 Other benefits for directors and executives DirectorsandexecutivesoftheBankareentitled toreceiveotherwelfareandbenefitsinaccordance withtheBank’sregulations.Directorsareentitled tomedicalbenefits,includinganannualmedical check-up,thatareequivalenttothoseofferedto theBank’sexecutivesatthelevelofexecutivevice presidentlevelorhigher,andthechairmanofthe Board isadditionallyentitled toacompanycar benefit.In2016,threenon-executivedirectorsof the Bank were al lowed medical expense reimbursement ofBaht 15,084.50. TheBank’s executives are entitled towelfare and other benefitssimilartothoseofferedtootheremployees such as medical benefits, annual medical check-up, l i fe and acc ident i nsu rance , welfareloansandprovidentfundcontributions. In 2016, theBank’sprovident fundcontribution for seven executives as defined by theOffice of Secur it ies and Exchange Commission, i .e. , senior executive vice president level , was Baht 6.05million, while the provident fund contribution for86executivesasdefined by the Bank of Thailand, i.e., executive vice president level and higher, was Baht 40.75 million.

5.12 director OrientationThe Bank arranges orientationmeetings for all new directors. At thesemeetings, briefings are provided coveringtheBank’svision,strategies,keybusinesstargets, performance highlights and relevant regulatory rules.

8) Mr.ChakkritParapuntakulresignedasamemberoftheNomination,CompensationandCorporateGovernanceCommitteeandwas appointedasamemberoftheCorporateSocialResponsibility,effectivefrom5April2016.9) Mr.YolPhokasubresignedasadirector,memberoftheExecutiveCommitteeandmemberoftheCorporateSocialResponsibility Committee,effectivefrom16September2016.10) Mr.MarisSamaramcompletedhisdirectorshiptermon2April2015.11) Mr.ApisakTantivorawongresignedasadirector,effectivefrom17August2015.12) Mr.KulitSombatsiriresignedasadirector,effectivefrom2October2015.

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Also, important documents provided to new directors include the Director ’s Manual , the Memorandumand Articles of Association of the Bank, the Bank’sAnnual Report, and the Directors Code of Conduct.These documents enunciate, among others , key information regarding the roles and responsibilities of directors, the Corporate Governance Policy, approvalauthority, prohibitions under applicable laws, rolesand responsibilities of the Board committees, and the Anti-CorruptionandBriberyPolicy.

5.13 Director, Executive and Employee Development 5.13.1 Director Development The Bank at taches impor tance to the development of its directors and encourages directorstoparticipateincoursesoractivitiesto enhance their knowledgeandperformanceas members of theBoardofDirectors andBoard committees.Thisincludescoursesandactivities arrangedbytheStockExchangeofThailand,the

OfficeoftheSecuritiesandExchangeCommission, theThai Institute ofDirectorsAssociationand otherinstitutions.Directorsarealsoencouraged toattendoverseasseminarsandactivities that promoteanappreciationofcorporategovernance practices.Inthisregard,theBankregularlykeeps directorsinformedofrelevanttrainingcourses.

Further, the Board of Directors has directed the Bank to regularly arrange appropriate developmentprogramstoensurethatdirectors remain currentwith the skills andknowledge related to their performance as members o f t h e Boa rd o f D i rec to r s and Boa rd committees, and talk or forum sessions as part of Board meetings, at least once per year. Details of participation of each director in training courses in 2016 are shown in the followingtable.

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1. Mr.AnandPanyarachun

2. Dr.VichitSuraphongchai

3. KhunyingJada Wattanasiritham

4. Dr.KulpatraSirodom

5. Mr.Weerawong Chittmittrapap

6. Mr.KrirkVanikkul

7. Dr.EknitiNitithanprapas

8. Mr.ChakkritParapuntakul

9. Mrs.KannikarChalitaporn

10. Mr.ArthidNanthawithaya

• Talksessionon“DisruptiveTechnologiesand the Millennials-Whattheymeanfortraditionalfinancial servicesandbricksandmortarbusinesses”• ExecutiveTalk “ChinaEconomicDirection in an Ever-ChangingWorld”

• Talksessionon“DisruptiveTechnologiesand the Millennials-Whattheymeanfortraditionalfinancial servicesandbricksandmortarbusinesses”• EICConference2016“RevivingInvestment,Restoring Thailand’sPotential”• ExecutiveTalk “ChinaEconomicDirection in an Ever-ChangingWorld”

• Talksessionon“DisruptiveTechnologiesand the Millennials-Whattheymeanfortraditionalfinancial servicesandbricksandmortarbusinesses”• EICConference2016“RevivingInvestment,Restoring Thailand’sPotential”

• ExecutiveTalk “ChinaEconomicDirection in an Ever-ChangingWorld”

• EICConference2016“RevivingInvestment,Restoring Thailand’sPotential”

• Talksessionon“DisruptiveTechnologiesand the Millennials-Whattheymeanfortraditionalfinancial servicesandbricksandmortarbusinesses”• EICConference2016“RevivingInvestment,Restoring Thailand’sPotential”

• Talksessionon“DisruptiveTechnologiesand the Millennials-Whattheymeanfortraditionalfinancial servicesandbricksandmortarbusinesses”• RoleofNominationandGovernanceCommittee (RNG8/2016)

• Talksessionon“DisruptiveTechnologiesand the Millennials-Whattheymeanfortraditionalfinancial servicesandbricksandmortarbusinesses”

• Talksessionon“DisruptiveTechnologiesand the Millennials-Whattheymeanfortraditionalfinancial servicesandbricksandmortarbusinesses”

• Talksessionon“DisruptiveTechnologiesand the Millennials-Whattheymeanfortraditionalfinancial servicesandbricksandmortarbusinesses”• EICConference2016“RevivingInvestment,Restoring Thailand’sPotential”• ExecutiveTalk “ChinaEconomicDirection in an Ever-ChangingWorld”

TheSiamCommercialBankPCL

EmbassyofthePeople’sRepublicofChina in theKingdomofThailand,TheSiamCommercialBankPCL

TheSiamCommercialBankPCL

TheSiamCommercialBankPCL

EmbassyofthePeople’sRepublicofChinaintheKingdomofThailand,TheSiamCommercialBankPCL

TheSiamCommercialBankPCL

TheSiamCommercialBankPCL

EmbassyofthePeople’sRepublicofChinaintheKingdomofThailand,TheSiamCommercialBankPCL

TheSiamCommercialBankPCL

TheSiamCommercialBankPCL

TheSiamCommercialBankPCL

TheSiamCommercialBankPCL

ThaiInstituteofDirectorsAssociation(IOD)

TheSiamCommercialBankPCL

TheSiamCommercialBankPCL

TheSiamCommercialBankPCL

TheSiamCommercialBankPCL

EmbassyofthePeople’sRepublicofChinaintheKingdomofThailand,TheSiamCommercialBankPCL

Name of Director Course Subject Organizer

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5.13.2 Executive and Employee Development TheBankstronglybelievesthatthecontinuous developmentofitsemployeesatalllevelsisa key foundation for sustainable growth and business success, both in the short-and long-term.With this inmind, the Bank has since 2014 focused on the implementation o f a sys temat i c and comprehens i ve career developmentprogramtoenhance the knowledge, sk i l ls and competencies of employees through identifying competency sets for each position and a corresponding career road map, including succession planning for key positions. Thiswill enable the Bank to steer its people development efforts in alignment with the prevail ing bus iness needs , i ts fu tu re goa ls and strategies, and career advancement of its personnel based on proficiency and career preference.Inpursuingitsgoalofbecominga learningorganization,theBankhascontinued itsimplementationofablendedlearningand developmentapproachtopromote learning- outside-the-classroom. Inparticular, internal skills development programs have been reinforced by integrating current business scenarios.Othermajorprogramsimplemented by the Bank include coaching programs, e - lea rn ing , a management assoc iate program,leadershipdevelopmentprograms, scholarship programs for domestic and overseas education, and a project named i-Plearn, which offers new and innovative “edutainment”learningtools.

D e ta i l s o f execu t i ve and emp loyee development in 2016are shown in the 2016 SustainabilityReport.

5.14 Oversight of Subsidiaries and AffiliatesTheBank,astheparentofcompaniesintheSCBFinancial Group, attaches importance to aligning the businessdirectionof these companies to theBank’spoliciesandprocesses,asthiscontributestotheGroup’ssynergyandoperationaleffectiveness.

TheBoard ofDirectors has delegated to the ExecutiveCommitteetheauthoritytonominatetheBank’sexecutiveswith theappropriatebusinessacumenandexpertiseasrepresentativedirectorsofcompaniesintheSCBFinancialGroupinordertoassist intheformulationofthepoliciesandstrategiesofeachaffiliateandensure, to theextent applicable,thattheseareinlinewiththeBank’skeypolicies. In this regard, theBankhasdevelopeda representative directorhandbook,whichdefinestherolesandresponsibilities ofrepresentativedirectorsaswellasprovidesguidelinesforrepresentativedirectorswhohaveakeyroleinprotectingtherightsandinterestsoftheBankanditsshareholders.

Also, to promote transparency and prevent conflict of interest,theBank,astheparentcompany,hasestablishedpolicies and regulations governing transactions amongcompaniesintheSCBFinancialGroupbasedonapplicableregulatoryandlegalrequirements.

Further, theRiskManagementCommittee is establishedbytheBoardofDirectorsandtaskedwithmonitoringandsupervising riskmanagementpracticesofall companiesintheSCBFinancialGrouptoensurecompliancewithriskmanagementpoliciesandregulationsimposedbyboththeBankandtheBankofThailand.Riskmanagementpolicies for companies in the SCB Financial Group have beendeveloped toprovide standardguidelines for identifying,assessing, controlling,monitoringand reportingmaterialrisksspecifictoeachcompanyintheSCBFinancialGroup.

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5.15 Board Support UnitTheBankprovidessupportto,andrecognizestheimportance of, the following units and personnel thereinwho are responsibleforensuringtheBank’spropercompliancewithlawsandregulationsaswellastheBoard’sadherencetostatutoryandgoodcorporategovernancepractices:

5.15.1 audit function The Audit Function is an independent and business-neutralunitthathasbeenestablished to improve the level of internal control , including policies, practices and procedures, and to ensure compliance therewith for the SCBGroup.Also, theAudit Function conducts regular audits, identifies conditions requiring attention, provides advice, and recommends improvements to i n te rna l cont ro l , r i s k managemen t s ys tems , a nd co rpo rate governance practices. The Audit Function is led by Mr. K r i eng Wongnongtaey, f i r s t executive vicepresident, headof audit,who is responsible for ensuring that the aforesaid ro les and responsib i l i t ies are effect ively carriedout.Theheadofauditreportsdirectlyto theAuditCommittee.TheAuditCommitteehas thedutytoreviewthesuitabilityoftheheadof auditintermsofqualificationsandperformance, aswellastoendorsetheappointment,removal, transfer, or dismissal of the head of audit, including conducting the annual performance assessment.

5.15.2 Compliance Function TheComplianceFunction servesas theBank’s regulatory center, providing consultation and advicepertainingtoregulatoryrequirementsand

theBank’s policies, practices, procedures and controls. Italsocoordinateswiththe regulators on behalf of theBank. The Function is also in chargeofformulatinginternalpolicies,rulesand regulationsthatgoverntheregulatoryandlegal complianceforallemployeesandexecutivesof theBank.Itisalsoresponsibleforscreeningthe qualificationsofpersonsnominatedasdirectors orexecutivesoftheBankanditssubsidiariesto ensure that thenomineespossessappropriate qualifications thatmeet legal and regulatory requirements.TheComplianceFunctionisunder the leadership of Mr. Nopadol Mungonchai, executivevicepresident,headofcompliance. 5.15.3 Company Secretary TheBoardofDirectorshasappointedacompany secretarytoactundertheprovisionsoflawand as further instructedby theBoardofDirectors. Currently,Mrs.WallayaKaewrungruang, senior executivevicepresident,chieflegalandcontrol officer, is thecompany secretary.Thekey roles aretosupporttheBoardwithrespecttostatutory andsupervisoryrequirementsandgoodcorporate governance.Functionsofthecompanysecretary areexplainedontheBank’swebsite(www.scb. co.th) under the sequence ofmenu headings “AboutSCB,”“CorporateGovernance,”andthen “CompanySecretary.”

Educational background,work experience, and trainingrecordsofthepersonsmentionedabove aredetailedinthisAnnualReportunder“Information oftheManagementandControlleroftheBank.”