TBANK: Annual Report 2011

Six Strategic Intents for the Business Operation in 2012

1. We intend to provide our customers with a superior experience by offering the best service and a total financial

solution to their unique needs.

2. We intend to increase our productivity and customer satisfaction through strategic investments in our people,

leadership, systems and processes.

3. We intend to be the dominant market leader for Hire Purchase Business with increasing share in higher yielding

Used and CYC segments.

4. We intend to aggressively grow the housing loan portfolio to be the top-five in market share of the Commercial

Banking Industry.

5. We intend to grow the Corporate and SME loan portfolios higher than industry average and gain market share.

6. We intend to increase the fee-based income proportion to be on par with industry average.

Vision of Thanachart Group

To provide fully integrated financial services targeted at meeting customers’ unique financial needs by creating

the highest quality products and services which strengthen our image as a trustworthy financial services group.

2 Annual Report 2011 Thanachart Bank Public Company Limited Annual Report 2011 Thanachart Bank Public Company Limited 3

Consolidated Consolidated Separate financial statements Separate financial statements As at and for the year ended December 31 As at and for the year ended December 31

2011 2010 2009 2008 2007 2011 2010 2009 2008 2007 2011 2010 2009 2008 2007 2011 2010 2009 2008 2007

Operating results (Million Baht)

Interest income 44,214 34,781 21,470 20,688 17,488 29,547 21,397 20,934 19,897 17,123

Interest expenses 19,797 11,566 6,736 9,398 9,396 14,959 7,375 6,791 9,429 9,386

Net interest income 24,416 23,216 14,734 11,290 8,092 14,589 14,022 14,143 10,467 7,737

Non-interest income 10,595 9,457 18,403 10,700 6,111 7,172 4,000 2,815 2,286 2,005

Total income(1) 35,011 32,673 33,137 21,990 14,203 21,760 18,022 16,958 12,753 9,742

Non-interest expenses 21,877 16,824 24,177 15,535 9,905 13,671 8,730 9,125 7,788 6,105

Bad debt and doubtful accounts(2) 2,504 2,149 3,107 3,968 2,692 1,422 1,280 2,830 3,548 2,606

Net income(3) 7,671 8,777 4,056 1,870 1,327 6,668 5,719 3,547 1,304 991

Operating performance

Basic earnings per share (Baht) 1.39 1.92 2.19 1.08 0.84 1.21 1.25 1.91 0.75 0.63

Return on average assets (ROAA) (percent) 0.89 1.23 1.06 0.56 0.47 1.13 1.31 0.96 0.41 0.36

Return on average equity (ROAE) (percent) 10.61 15.52 17.01 8.79 7.47 9.42 10.70 15.20 6.22 5.52

Interest spread(4) (Percent) 2.92 3.33 3.73 3.17 2.64 2.99 3.63 3.66 3.14 2.73

Cost to income ratio net insurance 62.49 51.49 56.51 60.09 62.11 62.83 48.44 53.81 61.06 62.67

premium income(5) (Percent)

Statement of financial position

(Million Baht)

Loans 635,220 606,851 285,515 276,142 228,776 616,713 326,549 282,577 272,925 224,940

Total assets 886,060 873,203 432,970 378,347 300,787 878,053 482,063 413,878 368,272 291,098

Deposits and bill of exchange 655,206 672,475 341,496 317,243 248,193 693,991 349,753 342,664 318,760 248,084

Total liabilities 810,526 800,809 405,098 357,006 279,807 807,169 415,327 387,523 347,002 270,402

Shareholders’ equity(6) 74,848 72,183 27,811 21,278 20,923 70,884 66,737 26,355 21,270 20,695

FINANCIAL hIghLIghTS

Remark: Financial Statement Appearance in accordance with the notification of the BOT Re: the Preparation and Announcement of Financial Statements of Financial Institutions dated 28 December 2010 or Sor Nor Sor 11/2010 resulted in change various items. however, the Bank and its subsidiaries have revised the financial statement for the year 2011 (exepting Y2010) for analysis and comparison

Definitions and (1) Total income = Net interest income + Non-interest income Formulas (2) Including loss on debt restructuring (3) Excluding minority interest/non-controlling interest (4) Interest spread = Yield-Cost of fund Yield = Interest income/Average earning assets Earning assets = Interbank and money market from interest bearing + net investment + loans

1. Interest income excludes dividend income 2. Interest expense excludes contribution fee to Deposit Protection Agency 3. Non-interest income includes fee paid related to income and insurance/life insruance expenses 4. Non-interest expense excludes fee paid related to income, insurance/life insurance expense and contribution fee to Deposit Protection Agency 5. Financial ratios are calculated on disclosure financial statement

Cost of fund = Interest expenses/Average paying liabilities Paying liabilities = Total deposits + interbank and money market from interest bearing + total borrowings (5) Cost to income ratio = Non-interest expenses/Total income (6) Excluding minority interest/non-controlling interest (7) Total allowance/NPL (8) Stand alone exchange booth

Asset quality

Loans to deposits and short-term 96.95 90.24 83.61 87.04 92.18 88.86 93.37 82.46 85.62 90.67

borrowings ratio (Percent)

NPL-gross to total loans (Percent) 5.58 5.60 2.57 2.37 2.41 2.74 2.26 2.49 2.30 2.31

NPL-net to total loans (Percent) 2.64 2.48 0.58 0.58 0.78 1.45 0.57 0.59 0.60 0.81

Coverage ratio(7) (Percent) 69.75 71.22 96.41 94.99 92.07 71.53 97.66 92.33 88.81 86.80

Total allowance to BOT regulation 104.27 108.05 111.66 112.75 121.72 103.12 105.32 102.85 101.55 108.38

(Percent)

Non-performing loans (NPL) 37,677 36,859 8,675 7,466 5,520 17,989 7,648 8,359 7,167 5,213

(Million Baht)

Capital measures

Tier I capital ratio (Percent) 9.28 11.71 8.65 8.02 10.15

Total capital ratio (Percent) 13.72 14.75 14.10 11.18 12.00

Risk weighted assets (Million Baht) 664,103 609,277 273,366 252,634 197,128

Common share information

Common shares outstanding (Million shares)

- Average-basic 5,514 4,563 1,854 1,735 1,584 5,514 4,563 1,854 1,735 1,584

- End of period 5,514 5,514 1,935 1,735 1,735 5,514 5,514 1,935 1,735 1,735

Book value (Baht) 13.58 13.09 14.38 12.26 12.06 12.86 12.10 13.62 12.26 11.93

Dividends per share (Baht) 0.40 0.56 0.56 0.43

Other information

Employees 16,298 16,846 9,368 9,630 6,210 14,152 7,871 7,470 7,534 4,603

Branches 676 256 256 213 166

Exchange booth 79 89 92 76 64(8)


Dear shareholders,

2011 was a year of great change and challenge for

Thailand and Thanachart Bank. First and foremost was the

devastating flooding which impacted the central part of

Thailand, including sections of Bangkok. This unprecedented

disaster caused substantial damage to agriculture,

infrastructure and productive capacity and most sadly led to

substantial loss of life. 2011 was also a year of political change

which saw the election of a new government led by Thailand’s

first female Prime Minister.

On the economic front, the global economy continued

to be impacted by a weak recovery in the USA and the

European Debt Crisis, which affected tourism, exports and

investments in Asian countries, including Thailand. As for

Thailand, inflation concerns prompted the Bank of Thailand to

move into a tightening phase and substantially increase

interest rates in the first half of the year before starting to

ease rates in light of the weak global economy and the effects

of the flood. Due to these issues, the Thai economy contracted

in the fourth quarter, reducing overall GDP growth from 7.8%

in 2010 to only 0.1% in 2011.

The banking industry was also affected. Despite

unfavorable factors and fierce competition, the overall banking

industry remained strong with high growth in loans and

deposits and well-controlled non-performing loans.

In the past year, we focused on the integration project

with Siam City Bank (SCIB) and serving our existing

customers amid the high impact from the floods. This was the

largest and most complex merger in the history of Thailand’s

financial services industry and required additional one-time

costs in such areas as branches, training, systems and human

resources among others. With the strong dedication and

tremendous efforts of all of our staff and key vendors and with

the support of our strategic partner, The Bank of Nova Scotia

(Scotiabank), we completed the Entire Business Transfer of

all the assets of SCIB as scheduled on October 1, 2011 with

minimal disruption to our clients. All SCIB branches have now

been re-branded to Thanachart and all key systems and

processes have been unified. We greatly appreciate the

support of our over 4 million customers throughout this

process and now with over 670 branches, 2,100 ATMs and a

full range of financial services; the Thanachart Bank group is

well positioned to meet all the unique financial needs of our

customers.

We continue to maintain our strong position as the

market leader in auto Hire Purchase and to show strong

growth in our credit card and revolving cash card portfolios

with an overall loan growth of 4.7%. The increase in the Bank

of Thailand’s interest rates in the first half of the year along

with heightened competition for deposits, especially from the

government-owned Special Financial Institutions, resulted in

a rapid increase in deposit rates and funding costs throughout

the year. This combined with our market leading fixed rate Hire

Purchase portfolio led to a decline in Net Interest Margin over

the year from 3.33 to 2.92%. Along with the one-time

integration costs and impact from the floods, these factors

impacted our results such that net income declined by 12.59%

from THB 8,777 to THB7,672 million in 2011.

With the systems and branch conversion phase of

integration now complete, we move into the next phase of our

development with our efforts firmly focused on growth and

further increasing our productivity, sales capacity and

customer satisfaction through strategic investments in our

people, leadership, technology and processes. Working with

Scotiabank to implement global best practices, we will

complete the process of upgrading our sales and support

infrastructure which will centralize back office processes,

allowing our branches and call centers to focus on sales and

customer service activities, significantly accelerating our loan

approval, fulfillment and collection processes while further

improving our loan quality. We have recruited new leadership

in several key business lines and support functions to support

these initiatives and are confident these investments will

position the bank as a leader in customer service in the Thai

financial services sector.

While we are excited about the future, we expect the

environment for commercial banks in 2012 in Thailand to

continue to be challenging. The global economic recovery

remains uncertain with slow recovery in the USA and the debt

crisis continuing to impact major European economies. Here in

Thailand, flood recovery efforts are now commencing with

subdued economic conditions expected until at least the

second half of the year. In addition, competition remains fierce

not only among the commercial banks but also from the

growing presence of the government owned Special Financial

Institutions. The royal decree to restructure Financial

Institution Development Fund (FIDF)’s debt owed to the

Finance Ministry B.E. 2555, allows the Bank of Thailand to

impose a 0.47% fee on the deposit bases of commercial banks,

will be another challenge facing commercial banks. Thus, it is

important that economic policy continue to support a strong

private sector financial system and a level playing field for all

participants so that the sector can continue to foster long

term, sustainable economic development and be competitive in

the increasingly integrated Asean Economic Community.

2011 has truly been a year of transformation for our

bank with the successful completion of the merger with Siam

City Bank. This was carried out in a difficult local and global

environment which was closely followed by devastating

flooding in many parts of Thailand. Through these many

challenges, our management and staff showed their enduring

dedication to helping our customers and one another overcome

any obstacle and reach their goals. It is this spirit and

commitment which we take this opportunity to recognize and

the Board of Directors expresses our sincere appreciate to all

our staff for their great efforts this year and we would also like

to thank all the customers, stakeholders, and shareholders as

well for their strong support. While challenges abound, the

Board is committed to strong corporate governance and is

confident that our strategy under the guiding principal of

Transforming to Strength and realizing Synergies and with the

trust of our customers and support of our strategic partner,

Scotiabank, Thanachart Bank is well positioned for further

growth and prosperity.

MESSAGE FROM THE BOARD OF DIRECTORS

(Mr. Banterng Tantivit)Chairman of the Board of Director

Thanachart Bank Public Company Limited

Mr. Suphadej Poonpipat Vice Chairman

and Chairman of the Executive Committee

Mr. Somjate Moosirilert Member of

the Executive Committee and Chief Executive Officer and President



20 Annual Report 2011 Thanachart Bank Public Company Limited

MANAGEMENT DISCUSSION AND ANALYSIS

Management Discussion and Analysis of Financial Position and Performance (A comparative analysis of 2011 and 2010 consolidated Consolidated Financial Statements)

On April 9, 2010, TBANK successfully acquired 1,005,330,950 SCIB common shares, equivalent to 47.58 percent of SCIB’s total issued and paid up shares, from Financial Institution Development Fund (FIDF). Thereafter, it conducted tender offers to purchase the remaining shares from public shareholders in June and November 2010 at a price of THB 32.50 per share (the same price that TBANK paid to FIDF). Consequently, TBANK’s held 99.95 percent of SCIB’s total issued and paid up shares.

Upon the successful share acquisition as mentioned above, therefore, the balance sheets as well as consolidated

income statements of SCIB and its subsidiaries have been consolidated into TBANK’s consolidated financial statements since the date that TBANK assumed a control over SCIB.

TBANK, in the first quarter of 2011, established a wholly-owned subsidiary named TS Asset Management Company

Limited (TS AMC) to facilitate an efficient management of the entire non-performing assets transferred from SCIB as part of the acquisition. All of SCIB Non-Performing Loans (NPLs), Non-Performing Asset (NPA), liabilities, and obligations whether existing ones or that may arise in the future were transferred to TS AMC on October 1, 2011 at a fair price recommended by the Independent Financial Advisor at THB 50,134 million, comprising assets of THB 381,077 million and liabilities of THB 330,943 million. Since the same date, SCIB had ceased its entire business operation. Thereafter on December 6, 2011, the Extraordinary General Meeting of Shareholders of SCIB approved a change its name to “SCIB Public Company Limited.” It returned a commercial banking license to the Ministry of Finance on December 8, 2011 and had gone under the process of liquidation since December 9, 2011.

To allow the minority shareholders of SCIB to sell their shares before the liquidation, in November 2011 TBANK

performed a tender offer to SCIB shareholders and acquired 696,865 SCIB shares at THB 16 million, resulting in 2,112,375,422 shares held in total, equivalent to 99.98 percent stake.

Meanwhile, as part of the acquisition, 437.25 million ordinary shares or 48.35 percent stake of Ratchathani Leasing

Public Company Limited’s (THANI) were transferred from the SCIB to TBANK on October 1, 2011. On October 21, 2011 TBANK subscribed to THANI shares from the THANI’s right offering proportionately to its original shareholding, resulting in 874.97 million shares held. However, the remaining of THANI shareholders did not exercise all of their rights; TBANK’s shareholding, therefore, rose from 48.35 percent to 65.18 percent of the total issued and paid up shares.

TBANK consolidated financial statements included performances of the following

subsidiaries. Direct subsidiaries SCIB Public Company Limited (formerly Siam City Bank Public Company Limited) Thanachart Securities Public Company Limited Thanachart Insurance Company Limited Thanachart Life Assurance Company Limited Thanachart Fund Management Company Limited Thanachart Broker Company Limited Thanachart Group Leasing Company Limited Thanachart Management and Services Company Limited

Annual Report 2011 Thanachart Bank Public Company Limited 21

Thanachart Legal and Appraisal Company Limited Thanachart Training and Development Company Limited TS Asset Management Company Limited Ratchathani Leasing Public Company Limited Indirect Subsidiaries National Leasing Company Limited Siam City Securities Company Limited (Disposed investment in August 2011) Siam City Life Assurance Company Limited Siam City Asset Management Company Limited (Disposed investment in May 2011) SCIB Service Company Limited

OVERVIEW OF OPERATING RESULTS (A comparative analysis of 2011 and 2010 Consolidated Financial Statements)

In 2011, net income of TBANK and its subsidiaries recorded THB 7,671 million, fell by THB 1,105 million or 12.60 percent year-on-year. The key factors contributing to its performance were the following:

• Loans grew by 4.7 percent year-on-year. In particular, the hire purchase Loans grew by 19.5 percent. Despite

negative impact from the flood crisis in the 4Q2011, TBANK maintained its leading position in the automobile hire purchase loans. The outstanding hire purchase loans stood at THB 286,361 million where it achieved a penetration rate of new car hire purchase loans of 19.1 percent. Owing to the successful merger with SCIB, the bank loan portfolio was well diversified. The ratio of retail loans and SME loans was at 62 percent to 38 percent.

• Deposit and B/E fell by 2.6 percent year-on-year. In 2011, TBANK altered it products and interest rates offer

to be in line with the policy interest rate as well as the market trends. The ratio of current account deposits and savings deposits (CASA) to total deposits including B/E was 26.9.

Change from 20102011

Increase/(Decrease) Percent

2010

Interest income 44,214 34,781 9,432 27.12 Interest expenses 19,797 11,566 8,232 71.18 Net interest income 24,416 23,216 1,201 5.18 Net fee and service income 3,358 2,850 508 17.82 Other operating incomes(1) 7,237 6,607 630 9.54 Other operating expenses(2) 21,877 16,824 5,054 30.04 Income (loss) before impairment loss of loans and debt securities 13,134 15,849 (2,715) (17.14) Impairment loss of loans and debt securities 2,504 2,149 355 16.55 Income before corporate income tax 10,630 13,701 (3,071) (22.42) Corporate income tax 2,948 4,548 (1,600) (35.19) Net income 7,682 9,152 (1,471) (16.07) Attributable to controlling interests 7,671 8,777 (1,105) (12.60) Attributable to minority interests 10 376 (365) (97.23) Earnings per share (Baht) 1.39 1.92 Weighted average number of ordinary shares (shares) 5,513.66 4,562.52

Consolidated Income Statements

(Unit: THB Million)

Notes: (1) Income net of insurance/life assurance expenses (2) Exclusive of insurance/life assurance expenses


• Interest spread stood at 2.9 percent, decreased from 3.3 percent from 2010, with the yield on earning assets rose to 5.5 percent along with the rise of market interest rate, compared to 5.1 percent of the 4Q2010 despite lower interests recognized as flood relief programs given to customers who were affected by the flood crisis in 4Q2011. Yet, the gain is expected in 1Q2012. Meanwhile, yield on loan rose slightly in 4Q2011 as a result of combining Ratchthani Leasing’s performance. Cost of fund increased to 2.6 percent compared to 1.8 percent of 2010 as a result of the higher market interest rates as well as intensifying competition.

• Non-performing loan management. Impairment

loss of loans and debt expense to total loan ratio was 0.4 percent, slightly increased from 0.3 of 2010 despite an impact from the flood crisis. Meanwhile, a result of TS AMC’s good performance helped improve quality of NPL, thus, lowering its provision for NPL. As of December 31, 2011, TBANK and its subsidiaries incurred NPL of THB 37,677 million with the ratio of gross NPL to total loans of 5.6 percent.

• Growth on non-interest income which was

contributed by fees and service income, brokerage fees, gains on proprietary trading and foreign trading transactions, gain on investment, profit sharing from investments in associated companies recognized under equity method, dividend income, net insurance/life insurance premium income. Net-interest income to net operating income was 30.2 percent.

• The effectiveness of operating expense

management: The ratio of operating expense to total income was 62.5 percent, increased from 51.1 percent of 2010. This was due primarily to thinner interest spread and integration costs which included IT system improvement, branch decoration cost, employee benefits and trainings, as well as cost from early retirement program.

• Corporate income tax: TBANK and its subsidiaries

corporate income tax for 2011 totaled THB 2,948 million baht, or 27.7 percent, compared to 33.2 percent of 2010. This was because of NPA transfer to TS AMC and sales of investment in Siam City Securities Co., Ltd. And the provision could be recognized as tax deductible expenses.

• Capital Adequacy: TBANK’s total capital amounted to THB 91,093 million, of which THB 61,638 million was Tier 1 and THB 29,455 million was Tier 2. BIS ratio was 13.7 percent. The capital consideration has deducted THB 15,740 million of goodwill from acquiring SCIB shares and included THB 10,000 million subordinated debentures transferred from SCIB. This was carried out in accordance with a waiver granted by the Bank of Thailand which stipulated such consideration for capital after the completion of the entire business transfer (October 1, 2011).

Net Interest income

In 2011, net interest income of TBANK and its

subsidiaries recorded at THB 24,416 million, reflecting an increase of THB 1,201 million or 5.18 percent year-on-year. This was due primarily to increasing volumes of TBANK and SCIB transactions. Total interest income amounted to THB 44,214 million, an increase of THB 9,432 million or 27.12 percent while interest expenses amounted to THB 19,797 million, an increase of THB 8,232 million or 71.18 percent year-on-year. As a result, interest spread of 2011 stood at 2.92, a decrease from 3.32 percent of 2010.

Non-interest Income

Non-interest income consisted of net fee and

service income, net insurance/life insurance premium income, and other operating income recorded THB 10,595 million, an increase of THB 1,137 million or 12.03 percent year-on-year.

• Net Fees and Service Income TBANK and its subsidiaries recorded net fees and

service income of THB 3,358 million, representing an increase of THB 508 million or 17.82 percent year-on-year. Fees and service income amounted to THB 3,858 million, an increase of THB 489 million or 14.52 percent while fees and service expenses amounted to THB 500 million, a decrease of THB 19 million or 3.60 percent due to financial product variety offered to customers both from TBANK and SCIB.

• Other Operating Income Other operating income consisted of gain on trading

and foreign exchange transaction, gain on investments, profit sharing from investments in associated companies recognized under equity method, dividend income, brokerage fees, net insurance/life assurance premium


income, and other income. In 2011, other operating income (net of insurance/life assurance operating expenses) of TBANK and its subsidiaries recorded THB 7,237 million, reflecting an increase of THB 630 million or 9.54 percent year-on-year. The increase was attributable to an increase of gain on investments of THB 398 million, gain on trading and foreign exchange transaction of THB 321 million, and dividend income SCIB received from Vayupak Fund of THB 246 million while net insurance/life assurance premium income fell by THB 225 million.

Other Operating Expenses TBANK and its subsidiaries recorded other operating expenses (exclusives of insurance/life assurance expenses)

of THB 21,877 million, rose by THB 5,054 million or 30.04 percent year-on-year due primarily to personnel expenses and integration costs. Consequently, other operating expenses to net operating income ratio (cost to income ratio) was at 62.5 percent.

Bad Debts, Doubtful Accounts, and Allowance for Impairment In 2011, TBANK and its subsidiaries incurred expenses of bad debt, doubtful accounts, and impairment

of securities investments of THB 2,504 million, an increase of THB 355 million. Provision to total loan ratio rose to 0.53 percent from 0.47 percent of 2010 while coverage ratio was 69.75 percent and actual/required LLR required by the Bank of Thailand was 104.27 percent.

CONSOLIDATED FINANCIAL POSITION

Change from 2010December 31, 2011 Increase/

(Decrease) Percent

December 31, 2010

AssetsCash 16,006 15,298 708 4.63Interbank and money market items (with interest) 63,201 85,060 (21,859) (25.70)Investment-net 148,345 140,022 8,323 5.95Loans and accrued interest receivables-net 609,903 581,525 28,378 4.88Property foreclosed-net 6,762 7,851 (1,089) (13.87)Land, premises and equipment-net 8,759 8,986 (227) (2.53)Goodwill 15,750 15,750 0 0.00Other assets 17,334 18,711 (1,377) (7.36)

Total assets 886,060 873,203 12,857 1.47

Consolidated Balance Sheet

(Unit: THB Million)


As of December 31, 2010, TBANK and its subsidiaries recorded net asset of THB 886,060 million, an increase of THB 12,857 million or 1.47 percent year-on-year, due primarily to an increase of loans and accrued interest receivables of THB 28,378 million. Ratio of retail loan to corporate loan and SME loan was 62 to 38.

Liabilities and shareholders’ equityDeposits 436,040 532,656 (96,617) (18.14)Interbank and money market items (with interest) 60,151 40,545 19,606 48.36Liability payable on demand 2,131 3,127 (996) (31.86)Debt issued and borrowings 254,297 174,949 79,348 45.36Provisions 2,824 900 1,924 213.84Insurance and contract liabilities 36,154 29,774 6,380 21.43Other liabilities 18,931 18,859 71 0.38Total liabilities 810,526 800,809 9,717 1.22Equity attributable to the Bank’s shareholders 74,848 72,183 2,665 3.70Minority interest 685 211 475 225.49

Total liabilities and shareholders’ equity 886,060 873,203 12,857 1.47

Change from 2010December 31, 2011 Increase/

(Decrease) Percent

December 31, 2010Consolidated Balance Sheet

(Unit: THB Million)

As of December 31, 2011, TBANK and its subsidiaries posted total liabilities of THB 810,526 million, an increase of THB 9,717 million or 1.22 percent compared to the end of 2010. An increase was attributed to the following:

• Debt instruments and borrowings of THB 254,297 million, an increase of THB 79,348 million or 45.36 percent from

last year. Most of debt instruments issued by TBANK were B/E as a mean to diversify customers’ investment portfolio and provide them an investment alternative with a better yield in light of Deposit Protection Agency Act which took effect since August 2011. The products were well accepted by TBANK customers. Meanwhile, deposits dropped by THB 96,617 million or 18.14 percent compared to the end of 2010.

• Interbank and money market was THB 60,151 million, an increase of THB 19,606 million. Shareholders’ equity of TBANK and its subsidiaries as of December 31, 2011 amounted to THB 74,848 million,

an increase of THB 2,665 million or 3.70 percent from the end of 2010, most of which came from 2011 net profit. ASSETS QUALITY Assets as reflected in the consolidated financial statements. 1. Loans, receivables and accrued interest receivables As of December 31, 2011, TBANK and its subsidiaries’ net loans and accrued interest receivables in accordance

with the Notifications of the BOT amounted to THB 620,328 million, an increase of THB 17,079 million or 2.83 percent from the end of last year. During 2011, the Bank and its subsidiaries entered into various debt restructuring agreements in the form of reconditioning of the debt repayment, transferring assets and/or equity and/or reconditioning the terms and conditions of repayment. The total of THB 38,685 million of debts was restructured compared to THB 17,180 million outstanding balances before the restructuring. At the end of 2011, the Bank and its subsidiaries had entered into debt restructuring agreements with 53,922 debtors out of 1,382,206 total bank’s debtors. The total outstanding balance of loans and accrued interest from restructuring was of THB 38,816 million.


LOAN CONCENTRATION At the end of 2011, 45.08 percent of loan portfolio was nominated by hire purchase loans, followed by 12.90 percent

of manufacturing and commerce loans, 11.59 percent of housing loans, 9.20 percent of infrastructure and service loans, 7.55 percent of real estate and construction loans, and 13.68 percent of other loans respectively.

LOANS CLASSIFIED BY BUSINESS TYPE IN 2010 LOANS CLASSIFIED BY BUSINESS TYPE IN 2011

16.05%Manufacturing and Commerce

12.16% Others

39.48%Hire Purchase

12.79%Housing

10.88%Infrastructure and Service

8.64%Real Estate and Construction


13.68%Others

45.08% Hire Purchase

9.20%Infrastructure and Service

11.59%Housing


2. Loan classification according to the BOT’s notification As of December 31, 2011, TBANK and its subsidiaries’ loans and accrued interest receivables classified under the

BOT’s notification registered at THB 620,328 million, an increase of THB 17,079 million or 2.83 percent from the previous year. As of December 31, 2011, it set aside allowance for doubtful accounts of THB 24,417 million and additional allowances for doubtful accounts of THB 383 million. As a result, the total allowance for doubtful accounts amounted to THB 24,800 million. The ratio of total allowance for doubtful account to loans and accrued interest receivables, therefore, stood at 4.00 percent.

LOANS CLASSIFICATION ACCORDING TO THE BOT’S NOTIFICATION

Normal 542,456 531,104 3,970 2,082Special mention 40,447 36,539 722 2,249substandard 7,031 6,663 3,870 2,898doubtful 11,763 12,620 7,507 8,277doubtful of loss 18,631 16,323 8,348 8,199

Total 620,328 603,249 24,417 23,705

Additional allowance for doubtful accounts 383 534

Total allowance for doubtful accounts 24,800 24,239

Ratio of total allowance for doubtful accounts to total loans 4.00 4.02and interest receivables (percent)

Note: (1) The debt balance/book value of the normal and special mention accounts did not include the accrued interest receivables.

December 31, 2011 December 31, 2011 December 31, 2010December 31, 2010Loans and Interest Receivables

Debt Balance/Book Value(1) Allowance for Doubtful Accounts

(Unit: THB Million)


3. Non-Performing Loans (NPLs) As of December 31, 2011, TBANK and its subsidiaries recorded an NPL in the amount of THB 37,677 million, an

increase of THB 818 million from the end of 2010, due primarily to changes of policies, strategies, and process of debt management and collections. Meanwhile, good performance of TS AMC helped improve quality of NPL transferred from SCIB. As a result, it achieved total NPL ratio of 5.58 percent.

NON-PERFORMING LOANS

CLASSIFIED NPLs

18.79%Substandard

31.46% Doubtful

49.75% Doubtful of Loss

9.37%Housing Loans

NPLs CLASSIFIED BY BUSINESS TYPE


9.51% Hire Purchase Loans

14.74%Service

11.91% Others


4. INVESTMENT IN SECURITIES In 2011, TBANK and its subsidiaries’ total investments in securities stood at THB 148,345 million. Investments in

government and state enterprise securities accounted for 52.97 percent, followed by foreign debt securities, most of which were forward contracts to cover the foreign exchange risks for both foreign investments and accrued interests which accounted for 18.72 percent. After taking into consideration net revaluation surplus on investments in securities, TBANK recorded net investments in securities of THB 148,345 million in 2010, an increase from THB 139,933 million in 2010. The details of 2011 investment in securities are provided as follows:

Non-performing loans (NPLs) 37,677 36,859NPLs to total loans (percent) 5.58 5.60NPL-net (Under the BOT’s regulation) 17,787 16,336NPL-net (percent) 2.64 2.48

December 31, 2011

(Unit: THB Million)

December 31, 2010


INVESTMENT IN SECURITIES CLASSIFIED BY TYPE OF INSTRUMENTS

December 31, 2011

December 31, 2010 PercentPercent

Debt securitiesGovernment and state enterprise securities• Tradingsecurities 10,508 7.11 44 0.03• Available-for-salesecurities 40,877 27.67 52,685 37.92• Held-to-maturitysecurities 26,876 18.19 36,138 26.01Private debt securities• Tradingsecurities 4,770 3.23 21 0.02• Available-for-salesecurities 18,389 12.45 9,898 7.12• Held-to-maturitysecurities 6,592 4.46 5,874 4.23Foreign debt securities • Tradingsecurities 642 0.43 3,015 2.17• Available-for-salesecurities 25,516 17.27 12,704 9.14• Held-to-maturitysecurities 1,500 1.02 5,705 4.11Equity securities Listed securities • Tradingsecurities 34 0.02 74 0.05• Available-for-salesecurities 7,483 5.06 7,752 5.58Unit trusts• Available-for-salesecurities 12 0.01 29 0.02General investments 4,549 3.08 4,993 3.59Total investment in securities 147,748 100.00 138,932 100.00 Add (Less) Allowance for revaluation 641 1,098Allowance for impairment (44) (97)

Total investments-net 148,345 139,933

INVESTMENT CLASSIFIED BY TYPE

LIQUIDITY At the end of 2011, TBANK and its subsidiaries’ cash flows received from financing activities amounted to THB

69,490 million while that of the investment activities was THB 10,216 million and cash flows used in operating activities stood at THB 78,998 million. The Bank’s cash and cash equivalents, therefore, increased by THB 708 million. At the end of 2011, the Bank’s outstanding cash and cash equivalent increased by THB 16,006 million with major items listed as follows:

•Cashflowsfromfinancingactivities includedcashreceivedfromborrowingsofTHB1,181,760millionwhilecash

paid for borrowings was THB 1,103,304 million, cash paid for interest from borrowings was THB 6,759 million, cash paid for dividend was THB 2,205 million, and dividend paid to non-controlling interests of its subsidiaries was THB 2 million.

•Cash flows fromthe investingactivities included increase in investment insecuritiesofTHB5,798million, cash

received from interests on investment of THB 4,534 million, cash received from dividend was of THB 824 million, and cash paid for purchase of equipment of THB 852 million.

•Cash flows from operating activities included decrease of deposits in the amount of THB 96,617million, cash

received from increase of loans by THB 22,028 million, cash received from interbank and money market items of THB 23,211 million and profit from operation of THB 18,627 million respectively.

(Unit: THB Million)


Relationship between sources and utilization of funds

In 2011, TBANK’s major sources of funds were from deposits and borrowings of THB 436,040 million and THB 254,297 million respectively. For the utilization of funds, THB 635,220 million was used for loans and THB 147,748 million was for investments respectively.

The comparison between sources and utilization of funds based on maturity of financial instruments dated in balance

sheet as of December 31, 2011 illustrated that the primary sources of funds were deposits with remaining maturity of less than one year which accounted for 36.19 percent of total sources of funds; followed by 31.50 percent of borrowings with remaining maturity of less than one year. On fund utilizing side, funds were used for loans with remaining maturity of more than one year which was accounted for 50.37 percent and loans with remaining maturity of less than one year accounted for 24.68 percent of total uses of funds. However, the maturity mismatch between sources and uses of funds was considered normal in commercial bank and financial institution business. This was due to the behavior of most depositors to extend their deposits after the maturity. Furthermore, the Bank had conducted risk management program that aimed at seeking for sources of funds that were most compatible with their uses through various financial instruments. This therefore enabled the TBANK to recognize in advance the signal of any adverse impacts that would occur to the sources and uses of funds. Details of key sources and uses of funds classified by maturity date of each item since the balance sheet date as of December 31, 2011 were as follows:

Cashflowsfromfinancingactivities 69,490 91,746Cashflowsfrominvestingactivities 10,216 (35,165)Cashflowsfromtheoperatingactivities (78,998) (45,003)Net increase (decrease) in cash 708 11,578Cash at beginning of the year 15,298 3,720

Cash at end of the year 16,006 15,298

2011Major Changes Iems 2010

(Unit: THB Million)

Sources of fundsDeposits 176,616 25.58 249,835 36.19 9,589 1.39 0 0.00 436,040 63.16 Borrowings 999 0.14 217,447 31.50 28,721 4.16 7,130 1.03 254,297 36.84

Total Sources of funds 177,615 25.73 467,282 67.69 38,310 5.55 7,130 1.03 690,337 100.00 Uses of Funds

Loans(1) 47,672 6.09 193,205 24.68 394,343 50.37 0 0.00 635,220 81.13 Investments 1 0.00 67,445 8.61 68,908 8.80 11,394 1.46 147,748 18.87

Total Uses of funds 47,673 6.09 260,650 33.29 463,251 59.17 11,394 1.46 782,968 100.00

TypeLess Than 1 YR More Than 1 YR Not Specified TotalAt Call

THB Million Percent THB Million Percent THB Million Percent THB Million Percent THB Million Percent

Note: (1) The outstanding balance of loans and debtors at call also included loans and debtors whose income recognition was put on hold


MAINTENANCE OF CAPITAL ADEQUACY RATIO As of December 31, 2011, TBANK’s total capital registered at THB 91,093 million of which THB 61,638 million was

Tier 1 capital and THB 29,455 million was Tier 2. The ratio of capital to risk weighted assets calculated under Basel II standards dropped from 14.75 percent at the end of 2010 to 13.72 percent, comprising 9.28 percent of Tier 1 capital, compared to 11.71 percent of 2010 due to goodwill expense from acquiring SCIB in the amount of THB 15,740 million and 4.44 percent of Tier 2 capital, compared to 3.04 percent of 2011 from subordinated debentures transferred from SCIB. This was carried out in accordance with a waiver granted by the Bank of Thailand which stipulated such consideration for capital after the completion of the entire business transfer (October 1, 2011).

The capital ratio, however, remained well above the BOT’s minimum requirement at 8.50 percent. Details of ratio

of capital to risk weighted assets could be listed as follows: CAPITAL ADEQUACY RATIO

THB Million THB Million PercentPercent

Tier 1 capital 61,638 9.28 71,335 11.71Total capital 91,093 13.72 89,898 14.75

December 31, 2011 December 31, 2010

Thanachart Securities Public Company Limited A daily average trading value of Thanachart Securities Public Company Limited (TNS) in 2011 was THB 2,266 million,

dropped from THB 2,305 million of 2010. The market share was 4.43 percent, ranked number 10 in the industry. 77.4 percent of its trading volume was dominated by retail customers, followed by 21.0 percent of financial institutions and 1.6 percent of foreign customers respectively.

For 2011, TNS recorded a net profit of THB 293 million, a decrease of THB 98 million or 25.0 percent year-on-year.

Total income rose slightly by 3.7 percent year-on-year due to higher brokerage fees from derivative business which increased by THB 52 million, equivalent to 115.5 percent; interest income from margin loans increased by THB 51 million or 75.1 percent; and interest and dividend income rose by THB 35.7 million. Meanwhile, fees and service income dropped by 27.1 percent while total expense increased by 20.6 percent.

TNS net liquid capital ratio stood at 149.1 percent which was substantially higher than the minimum requirement of

the Securities and Exchange Commission (SEC) regulated level of 7.0 percent.


Thanachart Fund Management Company Limited

At the end of 2011, Thanachart Fund Management Company Limited (TFUND)’s asset under management recorded THB 96,351 million, an increase of THB 2,795 million or 3.0 percent year-on-year. Mutual fund asset dropped by 1.8 percent year-on-year, yet, this was offset by an increase of provident fund and private fund asset of 76.7 and 4.6 percent respectively. Asset under management was divided into 81.3 percent of mutual fund, 9.2 percent of provident fund, and the balance 9.4 percent of private fund.

For 2011, TFND recorded a net profit of THB 89

million, a drop of THB 42 million or 32.2 percent year-on-year. This was due primarily to a drop of fee income in the amount of THB 35.97 million or 8.49 percent. However, TFUND put in place a plan to launch variety of new products to serve its clients’ needs in light of changing interest rate trend and market environment.

Thanachart Insurance Company

Limited For the year ended December 31, 2011, Thanachart

Insurance Company Limited (TNI) recognized a net income of THB 435.88 million, achieving an increase of THB 83.74 million or 23.8 percent year-on-year. The key factors contributing to its success included an increase of premium received through bancassurance channel and efficiency in claim management. The capital ratio at the end of 2011 was 505 percent, substantially higher than the minimum requirement of the Office of Insurance Commission (OIC) of 125 percent.

Thanachart Life Assurance Company Limited

For 2011, Thanachart Life Assurance Company

Limited (TLIFE) recorded a net profit of THB 770 million, an increase of THB 82 million or 11.9 percent year-on-year. An increase was attributable to a growing customer base. Investment income grew by THB 202 million or 30 percent year-on-year. Income from underwriting remained the same as 2011. The capital ratio was 278 percent which was well higher than the minimum requirement of the OIC of 125 percent.

TS Asset Management Company

Limited TS AMC Company Limited (TS AMC) was found on

March 3, 2011, as part of the entire business transfer project of SCIB to TBANK. NPLs and NPA were transferred to TS AMC in order to efficiently manage and restructure the debts. For the year ended December 31, 2011, TS AMC recorded its total assets of THB 12,267 million and net profit of THB 180 million. THB 259 million of its income was generated from loans, THB 282 million reversals of provision for doubtful accounts, and THB 33 million non-interest income. Allowance for impairment of property foreclosed was THB 12 million. Meanwhile, THB 85 million of its expense was interest expense and THB 95 million was operating expense.


NATURE OF BUSINESS OPERATIONS

An Overview of the Business Operation Upon a successful integration with the SCIB and the entire business transfer of all of the SCIB’s assets on October

1, 2011, TBANK’s business structure, having TCAP as a parent company, consists of two groups: 1) financial group and 2) Supporting group. It was presently a fully integrated financial conglomerate serving customers with a full range of financial services primarily available through TBANK branch network and TBANK service outlets, and it is strongly committed to good corporate governance principles. The details of the business operations of each subsidiary company are as follows:

Financial Group

1. Thanachart Capital Public Company Limited (TCAP) operates as the holding company being a parent company of

Thanachart Financial Conglomerate. 2. Thanachart Bank Public Company Limited (TBANK) operates commercial banking business and other businesses

permitted by the BOT, such as life and non-life insurance broker, a provider of services relating to unit trust and securities such as securities brokerage, proprietary trading, unit trust underwriting, mutual fund trustee service, provident fund custodian service, debt instrument underwriting and trading, securities registrar, and gold derivative trading.

3. Thanachart Securities Public Company Limited (TNS) was permitted by the Ministry of Finance and the Office of the Securities and Exchange Commission of Thailand to operate the following activities:

3.1 TNS was granted a Full-Service License to operate securities businesses and related businesses such as securities brokerage (domestically and internationally), securities underwriting, investment advisory service, securities borrowing and lending, financial advisory service, unit trust underwriting and repurchasing, and securities registrar.

3.2 TNS was granted a Derivatives Business Sor 1 License to engage in a full range of derivative businesses and related businesses such as derivative brokerage and proprietary trading.

4. Thanachart Fund Management Company Limited (TFUND), which is a joint venture between Thanachart Bank (holding 75 percent of the total shares) and The Government Savings Bank (holding 25 percent shares), operates a full range of investment management services in mutual fund management business, private fund and provident fund management business, and investment advisory business.

5. Thanachart Insurance Company Limited (TNI) operates a non-life insurance business and a disaster insurance business such as fire insurances, automobile insurances, marine and transportation insurances, miscellaneous insurance, and investment business.

6. Thanachart Life Assurance Company Limited (TLIFE) operates a life insurance business and a health insurance business individual life insurances, such as individual endowment and annuity, group life insurance, such as group life insurances for corporation and organization, and credit life insurances including hire purchase loan, mortgage, SME loan, and credit card.

7. Siam City Life Assurance Company Limited (SCILIFE) operates life insurance business by offering products through TBANK’s branch network. Its customer segment is mainly TBANK’s lending customers and deposit customers.

8. Thanachart Group Leasing Company Limited (TGL) operates a hire purchase business of all automobile types. 9. Ratchthani Leasing Public Company Limited (THANI) operates a hire purchase business and financial lease

business focusing on the segment of private used cars and commercial cars such as pick-ups, taxis, tractors, and trucks. 10. NFS Asset Management Company Limited (NFS AMC) operates an asset management business by buying or

receiving transfers of NPLs and NPAs from financial institutions in the Thanachart Group. 11. MAX Asset Management Company Limited (MAX AMC) operates an asset management business by buying or

receiving transfers of NPLs and NPAs from other financial institutions. 12. TS Asset Management Company Limited (TS AMC) operates an asset management business by receiving

transfer of NPLs and NPAs from SCIB and TBANK.


Scotia Netherlands Holding B.V.

Chart of Shareholding Structure of Thanachart Group As of December 31, 2011

Supporting Business Financial Business

Securities Business

Insurance Business

Asset Management Business

Leasing Business

Thanachart Securities Plc.

Thanachart Insurance Co., Ltd.

Thanachart Group Leasing Co., Ltd.

TS Asset Management Co., Ltd.

Thanachart Fund Management Co., Ltd.

Thanachart Life Assurance Co., Ltd.

Siam City Life Assurance Co., Ltd.

Ratchthani Leasing Plc.

Thanachart Management and Services Co., Ltd.

Thanachart Broker Co., Ltd.

National Leasing Co., Ltd.

Thanachart Legal and Appraisal Co., Ltd.

Thanachart Training and Development Co., Ltd.

SCIB Services Co., Ltd.

Asset Management Business

Commercial Banking Business

Thanachart Bank Public Company Limited

Thanachart Capital Public Company Limited

50.96% 83.44%

NFS Asset Management Company Limited

100.00%

48.99%

100.00%

100.00%

100.00% 100.00%

100.00%

100.00%

100.00%

65.18%

75.00%

100.00%

100.00%

100.00%

100.00%

100.00%

Note: 1. The above shareholdings include shares held by the related parties.

2. TLA is in the process of entering into the dissolution and liquidation.

MAX Asset Management Company Limited

Supporting Business Group 1. Thanachart Management and Services Company Limite (TMS) provides services to the Group’s service staff. 2. Thanachart Broker Company Limited (TBROKE) pursues Thanachart Group’s hire purchase customers to insure

their automobiles. TBROKE is also an automobile insurance broker of TNI. 3. Thanachart Training and Development Company Limited (TTD) organizes training activities for employees of

member companies of Thanachart Group. 4. Thanachart Legal and Appraisal Company Limited (TLA) provides legal advisory services, contracts, litigation,

legal enforcement, and appraisal of collateral. Presently, all of its assets and employees have already been transferred to TBANK and TLA under the process of liquidation.

5. SCIB Services Company Limited (SCIB Services) provides general services to TBANK and companies in the Group, such as janitor, security, delivery, car rental, car drivers, and outsourcing service.


Policy on Division of Operational Functions among Member Companies of Thanachart Group

Being a parent company of Thanachart Financial

Conglomerate with a controlling interest (i.e. owning more than 50 percent of issued and paid-up capital), TCAP has adopted the following policies and approaches in managing the member companies of the Group as follows:

Business policies TCAP and TBANK are responsible for establishing

annual key business policies of Thanachart Group. Each subsidiary is required to formulate business plans and budgets for 3 - 5 years and submit them to the parent company for consideration, in order to ensure that they are in alignment with the established key business policies. The business plans and budgets are also subject to evaluation and review regularly. The objective is to ensure that the business plans and budgets are in line with the changing business conditions.

Supervision of subsidiaries The directors and high-ranking executives of TCAP

and TBANK are assigned to be the members of the Board of Directors of the subsidiaries. The arrangement not only enables TCAP and TBANK to assist the subsidiaries in establishing their policies and in determining their future direction, but also ensures the close supervision of the subsidiaries’ business operations. Importantly, the Chief Executive Officers of the subsidiaries are required to present a monthly performance report to the Executive Committee and the matters in the Executive Committee Meeting are then reported to the Board of Directors of TBANK.

Centralizing of support services It is a policy of the Thanachart Group to centralize

specific functions of the support services into one company which, then, is responsible for providing such services to all other member companies of the Group. The purpose is to maximize benefits within the existing resources including expertise of operations staff and various information technologies, and to reduce staffing costs. The centralized support services available now within Thanachart Group included information technology, human resource, systems and internal regulatory development, internal audit, operation control, business control,

electronic services, administration and procurement, legal and appraisal services, as well as retail debt collections and collections brokerage.

Internal Control, Audit, and Corporate Governance of Parent Company and Subsidiaries

Thanachart Group places strong emphasis on

internal control. The Group adheres to the principle of adequate and appropriate internal control by establishing procedures for business conducts, provision of services, and operations. The Group also separates the duties and responsibilities of each unit to allow internal examination of each other, based on a check and balance system. In addition, it puts in writing the announcements as well as order mandates, rules and regulations covering key business areas and operations, and this information was also disclosed to all staff in such a way that they can always study them to gain a full understanding. A central unit at TBANK is responsible for preparing and proposing the announcements, order mandates rules and regulations of all member companies of the Group.

As regard to the internal audit, the internal audit

group is responsible for auditing the business operations of all member companies of the Group, ensuring that they comply with the regulations and the established work systems. The internal audit group also assesses an adequacy and effectiveness of an internal control system in operations to ensure the use of resources and properties and prevention or reduction of errors, damages in order to propose corrective measures for improvement. In addition, the Thanachart Group has established a Compliance Unit responsible for closely monitoring changes of laws, notifications, and orders related to the Group’s business affairs and operations and disseminating the information to the staff. The Compliance Unit is also responsible for ensuring that the conduct of business affairs of the member companies of the Group is in compliance with the legal requirements.

Moreover, the Audit Committee of each member

company of the Group is responsible for governing, controll ing, and auditing their respective business operations. The Audit Committee is also allowed to carry out its duties and give its opinions in an independent manner of the management of each company. The purpose is to ensure that internal control and audit systems are effective and that the financial statements are properly reviewed.


Interest and dividend income Thanachart Bank Plc.

Siam City Bank Plc.

Thanachart Securities Plc.

Thanachart Fund Management Co., Ltd.

Thanachart Insurance Co., Ltd.

Thanachart Life Assurance Co., Ltd.

Thanachart Group Leasing Co., Ltd.


TS Asset Management Co., Ltd.

Thanachart Broker Co., Ltd.

Thanachart Management and Services Co., Ltd.

Thanachart Law and Appraisal Co., Ltd.

Thanachart Training and Development Co., Ltd.

T Leasing Co., Ltd.

National Leasing Co., Ltd.

Siam City Securities Co., Ltd.

Siam City Life Assurance Co., Ltd.

Siam City Asset Management Co., Ltd.

SCIB Services Co., Ltd.

Total interest and dividend income

Percentage of share held

(inclusive of related parties)

THB Million Percent THB Million Percent THB Million Percent

2009 2010 2011

Consolidated financial statements

99.98

100.00

75.00

100.00

100.00

100.00

65.18

100.00

100.00

100.00

100.00

100.00

-

100.00

-

100.00

-

100.00

29,351

12,996

121

5

93

710

112

175

264

1

-

-

-

-

2

-

382

2

-

44,214

63.48

28.11

0.26

0.01

0.20

1.54

0.24

0.38

0.57

-

-

-

-

-

-

-

0.83

-

-

95.62

21,318

12,186

76

2

56

589

206

-

-

1

-

-

-

86

3

25

228

5

-

34,781

50.73

29.00

0.18

0.01

0.13

1.40

0.49

-

-

-

-

-

-

0.20

0.01

0.06

0.54

0.01

-

82.76

20,282

-

104

2

68

384

356

-

-

-

-

-

-

271

3

-

-

-

-

21,470

61.21

-

0.31

-

0.21

1.16

1.07

-

-

-

-

-

-

0.82

0.01

-

-

-

-

64.79

As regard to the corporate governance, the Boards of Directors of TCAP and the companies in the Group place a strong emphasis on the good corporate governance both at the level of the Boards of Directors and the level of various Committees. Independent directors are appointed to the Boards of Directors and the Committees to provide effective checks and balances on the powers of executive directors. The established scope of responsibilities of the Boards of Directors and the Committees are also in line with the principles of good corporate governance. In addition, the Boards of Directors of the TCAP and the subsidiaries have established the corporate governance policy and the code of conduct which the directors, executives, and staff of the member companies of Thanachart Group are required to adhere to. Focus is given to integrity, transparency, and avoidance of any conflict of interest.

Risk management TCAP ensured that the member companies of the Group analyze and assess various risks of their business

operations and that the risks are properly managed in line with the guidelines given by the authorities. In addition, TCAP conducts an analysis of the key risks faced by the member companies of the Group which may need direct financial or management support from TCAP. The established risk management policy of the Thanachart Financial Conglomerate is in line with the guidelines given by the BOT.

Income structures of TBANK and its subsidiaries Income structures of TBANK and its subsidiaries based on the consolidated financial statements as of December

31, 2011, 2010 and 2009 are as follows;

A table of income structures of TBANK and its subsidiaries (the consolidated financial statements)


Percentage of share held

(inclusive of related parties)


2009 2010 2011


Interest Expense Thanachart Bank Plc. Siam City Bank Plc. Thanachart Securities Plc. Thanachart Fund Management Co., Ltd. Thanachart Insurance Co., Ltd. Thanachart Life Assurance Co., Ltd. Thanachart Group Leasing Co., Ltd. Ratchthani Leasing Plc. TS Asset Management Co., Ltd. Thanachart Broker Co., Ltd. Thanachart Management and Services Co., Ltd. Thanachart Law and Appraisal Co., Ltd. Thanachart Training and Development Co., Ltd. T Leasing Co., Ltd. National Leasing Co., Ltd. Siam City Securities Co., Ltd. Siam City Life Assurance Co., Ltd. Siam City Asset Management Co., Ltd. SCIB Services Co., Ltd.

Total interest expense Net interest and dividend income Non-interest income

Thanachart Bank Plc. Siam City Bank Plc. Thanachart Securities Plc. Thanachart Fund Management Co., Ltd. Thanachart Insurance Co., Ltd. Thanachart Life Assurance Co., Ltd. Thanachart Group Leasing Co., Ltd. Ratchthani Leasing Plc. TS Asset Management Co., Ltd. Thanachart Broker Co., Ltd. Thanachart Management and Services Co., Ltd. Thanachart Law and Appraisal Co., Ltd. Thanachart Training and Development Co., Ltd. T Leasing Co., Ltd. National Leasing Co., Ltd. Siam City Securities Co., Ltd. Siam City Life Assurance Co., Ltd. Siam City Asset Management Co., Ltd. SCIB Services Co., Ltd.

Total non-interest income Total interest and dividend income

and non-interest income

99.98 100.00 75.00

100.00 100.00 100.00 65.18

100.00 100.00 100.00 100.00 100.00

- 100.00

- 100.00

- 100.00

99.98 100.00 75.00

100.00 100.00 100.00 65.18

100.00 100.00 100.00 100.00 100.00

- 100.00

- 100.00

- 100.00

14,298 5,475

5 - - - -

20 - - - - - - - - - - -

19,798

24,416

4,703 1,681 1,267

444 3,938 7,205

65 22 32 60 1 - - - -

110 2,255

32 5

21,820

46,236

30.92 11.84 0.01

- - - -

0.04 - - - - - - - - - - -

42.81

52.81

10.17 3.63 2.74 0.96 8.52

15.58 0.14 0.05 0.07 0.13

- - - - -

0.24 4.88 0.07 0.01

47.19

100.0

7,329 4,233

2 - - - - - - - - - - - - 2 - - -

11,566

23,215

2,715 2,296 1,302

479 3,085 5,828

83 - -

56 1

14 -

11 1

235 2,637

65 2

18,810

42,025

17.44 10.08

- - - - - - - - - - - - - - - - -

27.52

55.24

6.46 5.46 3.10 1.14 7.34

13.87 0.20

- -

0.13 -

0.03 -

0.03 -

0.56 6.28 0.15 0.01

44.76

100.0

6,734

- 1 - - - - - - - - - - - 1 - - - -

6,736

14,734

2,393 -

1,027 437

2,672 11,637

96 - -

57 1

43 -

37 3 - - - -

18,403

33,137

20.33

- - - - - - - - - - - - - - - - - -

20.33

44.46

7.22 -

3.10 1.32 8.07

35.12 0.29

- -

0.17 -

0.13 -

0.11 0.01

- - - -

55.54

100.0

A table of income structures of TBANK and its subsidiaries (the consolidated financial statements) (Cont’)


Interest and dividend income

Interest expenses

Net interest and dividend income

Non-interest income

Total interest and dividend income and non-interest income


2009 2010 2011

The separated financial statement

29,548

14,959

14,589

7,304

21,893

134.97

68.33

66.64

33.36

100.0

21,397

7,375

14,022

4,070

18,092

118.27

40.77

77.50

22.50

100.0

20,421

7,863

12,558

3,328

15,886

128.55

49.50

79.05

20.95

100.0

Income structures of TBANK based on separated financial statements for the year ended December 31, 2011, 2010 and 2009 were as follows;

A table of income structures of TBANK (the separated financial statements)

Nature of Business Operation of Each Business Group Business Policy and Strategies of Thanachart Group

In 2011, Thanachart Group has determined its strategic direction to become a fully integrated financial services

group capable of offering a full range of quality products and services that cater to the financial needs of the customers in an efficient manner. To achieve this goal, Thanachart Group has set up its vision “Becoming a fully integrated financial services group; aiming at creating an excellence in our services and product development, so as to satisfy our customers’ financial needs, with the cooperation and unity of all the members of the Group.”

Such vision was developed from three major fundamentals which are providing fully integrated financial services

(Universal Banking) with TBANK being the main services offering; focusing on satisfying of our customers’ different needs (Customer Centric); and cooperating from all departments wholeheartedly to provide excellent service to customers (Synergy).

The endeavor and accomplishment from the three major fundamentals not only allowed Thanachart Group to be

a fully integrated financial services group with highly successful in competition, but also is a key to drive Thanachart Group to become one of Thailand’s leading banks over the next three to five years.

From our goal to become a fully integrated financial services group, Thanachart Group aims to become one of

Thailand’s top five leading banks in the commercial banking industry. A result from merging with SCIB allows Thanachart Group to possess an asset size appropriate for business competition and gain an ability to diversify risks by expanding corporate loans to small-sized and medium-sized enterprises so as to provide varieties of alternatives to customers. Moreover, synergy of Customer Experience Management and Sale and Service Model system from Scotiabank enables Thanachart Group to offer a superior experience by providing the best services to fully satisfy financial needs of our customers as well as creating financial performance at the level equivalent to that of Commercial Bank industry’s average. Besides that, Thanachart Group also puts an emphasis on diversification of income sources in order to balancing interest income and fee-based income, by focusing more on fee-based transactions and cross-selling transactions. These aims have been communicated to all of our staff. In 2011, the Thanachart Group has set six Strategic Intents as follows:


1. We intended to provide our customers with a superior experience by offering the best service and a total financial solution to their unique needs.

2. We intended to be the dominant market leader for Hire Purchase Business. 3. We intended to aggressively grow the housing loan portfolio to be the top-three in market share of the

Commercial Banking Industry. 4. We intended to grow the loan portfolio (corporate and SME) higher than industry average. 5. We intended to increase the fee-based income proportion to be on par with industrial average. 6. We intended to enhance our services and support productivity with cost effectiveness. The above six Strategic Intents were communicated to all staffs at all levels so that they all shared a mutual

objectives consistent with visions and strategic objectives of the Thanachart Group. In order that the strategies were in alignment, efficiently evaluated and able to manage the organization systematically, Thanachart Group has developed a plan namely “CEO’s Six-Point Agenda” which served as a tool to enhance the set target to be efficient and systematic success. Business Operations of Each Business Group Commercial Banking Business

Characteristics of Products and Services TBANK operated its businesses in compliance with the Financial Institutions Business Act and other relevant

notifications issued by the Bank of Thailand (BOT). It acts as a non-life and life insurance brokerage agent, an advisor and investment unit distributor for mutual funds, trustee services for mutual funds, custodian services for private funds, securities brokerage, securities trading, debt instrument trading, securities registrar, and a selling agent for gold derivatives.

As of December 31, 2011, TBANK had a total of 676 branches (excluding the headquarters or Tonson branch), 2,151

ATMs (Automatic Teller Machines), 57 CDMs (Cash Deposit Machines), 135 Passbook Update Machines, and 79 foreign exchange booths (35 in-branches, 43 stand-alone and 1 mobile car).

Group of Products and Services TBANK improves and developes products to better serve various needs of our customers. Its four main products and

services were as follows:

Group 1 Deposit Products

Deposit products are offered to customers, both individuals and corporates. There are 4 major types of deposit products which are saving deposit, fixed deposit, current deposit and foreign currency deposit.

In 2011, the merger of TBANK and SCIB had been scheduled to complete by October 1, 2011. Therefore databases of the customers and deposits of both TBANK and SCIB must be combined into one to serve customer’s need perfectly after the merger. To do so, all resources were used to develop information systems and other necessary systems to be able to complete the merger within the timeline. Because of that, TBANK did not focus its effort on launching any new product to the market. Moreover with the rising trend of interest rate, TBANK changed strategy by:

1. Emphasizing on expanding customer base to both small-sized and medium-sized.

2. Expanding customer base especially on saving deposit and current deposit by launching new saving deposit product “Corporate Saving Plus” to broaden customer base.

Owing to the success of the merger, TBANK can successfully serve more than three million customers of both TBANK and SCIB through our 676 branches nationwide without any interruption.

Competitive Strategies Characteristics Products and Services


Group 2 Lending Products

1. Personal Loans, consist of:

Home loans under the brand of “TBANK Home Loan”, Multi-purposed loans named “Home Cash” and “Mortgage Cash”, Education Loans called “Scholar Loan”, Wish-list loans which are credit lines given to the hire purchase customers with good repayment records, new products of Credit Card under the name of Thanachart “Drive Visa/Master Card” given to the hire purchase customers with good repayment records and the depositors.

2. Automobile SMEs

TBANK offeres this product to car related entrepreneurs who have short-term financial needs with the proceeds of the loans to be used as their working capital or for enhancing their liquidity position as well as those who have long-term financial needs with the proceeds of the loans to be used for business expansion or reducing funding cost. These included guarantee/avals and trade finance.

TBANK placed emphasis on efficient service delivery and fully integrated products that fulfill to all customer needs. As well, marketing promotion, which is in line with the situation and competitive condition, is highlighted. The Retail Banking Department is responsible for developing products, terms and conditions, as well as interest rates charged. The target customers are divided into four groups, i.e. customers who needed home loans, customers who needed personal loans with houses as collateral, hire purchase customers with good repayment records and customers who need to study further in a higher level of education. The main distribution channel is personal sales and marketing teams that are responsible for the sales target set in the business plan. Moreover, branches are channels to advertise personal loans or new products to the customers.

TBANK places emphasis on lending to car related entrepreneurs.

The plan is set together between the Product Development team and Marketing team. Focus is given to a selection of the target customers, with whom TBANK has their database and good relationships. Also, TBANK continues placing an emphasis on promoting good relationships with its customers by providing the customers with advices on financial and business planning. This is for maintaining the TBANK’s existing customers. TBANK continues developing loan products that in corporate other financial services, ensuring that the customers have the credit line and products that matched their financial needs as well as the financial structure that were appropriate to their business operations. Loan approval authority was delegated by making use of the credit scoring techniques as a main tool for screening and approving applications for standard loan products. The main distribution channels were in Bangkok and its vicinity and in the upcountry.



3. Corporate Loans In 2011, TBANK

classifies its corporate finance customers into two major groups as follows; 1.)Large scale businesses which are those of annual sales revenue of over THB 600 million; and 2.) Small-sized and Medium-sized enterprises (SMEs) which include the group of customers with annual sales revenue of less than THB 600 million.

4. Automobile Hire Purchase Loans

TBANK give hire purchase loans for new and used cars. The Bank also offeres sale and lease back services under the product named “Cash Your Car”. This product is in response to hire purchase customers who need cash, with a sell ing point of higher credit line than a personal loan, lower interest rate and longer period of installment payment than a personal loan. Customers are able to choose the period of payment and installment plan at the most suitable for them.

In 2011, TBANK concentrates on maintaining its existing customer base for SME customers by launching products for those with good repayment records and also allowing loosen schemes for customers who are affected by flooding crisis. For corporate loan customers, TBANK places an emphasis on lending programs that match their financial needs. Apart from the products, TBANK places an emphasis on improving work processes in order to be more efficient, yet flexible while having a proper Internal control and a proper risk management system.

TBANK’s hire purchase loan services are provided across the

country through car dealers and TBANK’s branches. In setting the policy to offer a price, the Bank considers external factors such as a competition in the market and internal factors such as cost of fund and loan risk. In addition, TBANK places an emphasis on sales promotion activities with car dealers in each region, aiming to offer high purchase loan conditions that meet the need of regional dealers and customers the most, as well as establishing relationships with the automobile manufacturers in order to gain a larger market share of the automobile hire purchase business and promote the image of a leading loan provider of automobile hire purchase. TBANK increases distribution channels, providing customer’s convenience by offering the “Cash Your Car” product through TBANK branches.



5. Trade Finance TBANK provides a

full range of trade finance products and services including Import Letter of Credit (L/C), Trust Receipt, Collection Agency of D/P and D/A for oversea buyers, Packing Credit, Export Bills Purchased/ Discounted, Export Bills for Collection, Letter of Guarantee, Stand-by L/C, and Oversea Money Transfer.

6. Personal Loans

TBANK provides many types of unsecured personal loans. To be accessible and responsive to cover a wide range of customer needs, therefore the purpose of loans may or may not be specified. TBANK’s personal loans are serves under the product names as follows:

- T-Loan T-Loan is a

multi-purpose loan providing for general customers. The repayments are arranged in equal installment monthly and specified time.

- Wish-List loan Wish-List loan

is an additional credit l ine of loan provided to TBANK’s hire purchase customers who have good repayment record.

- Special for Corporate Staff

TBANK provides this loan specifically to customers whose companies have a campaign with TBANK

The main factors that promote trade finance services to customers are accuracy in services, convenience, competitive interest rate and fees. The Bank took into consideration the customers’ needs and the promotion of business transactions as the main concerns. For the corporate clients, the Bank has the target to expand customer base to large scale businesses and SMEs. The Bank provides trade finance credit limit, liquidity supports, and specialist advices on trade finance documents for customers. TBANK also developes trade finance products and services to cater to customer needs. The global business alliance network is useful for fast and convenience service which provides customers’ satisfactory on the Bank’s products and services.

Products under unsecured personal loans defined competitive

strategies on product development, marketing campaign, distribution channel, and appropriate services to serve target customers’ needs. Thus TBANK provides a variety of products for customers to choose appropriately by life stage and life style, These products have been designed in such a way that are easily understandable and practical for every day needs.

Main competitive strategies of each product 1. Personal Loan Providing a variety of product to carter to customer needs in

each group that fit their purposes. 2. Revolving Credit Card

Providing cardholders with a credit line to spend for any purposes. Customers can withdraw cash within a credit line as per their needs at ATM worldwide.

3. Credit Card Emphasizing on everyday needs of cardholders with simplified

and practical use of he card. Cardholders received benefits as per their needs for every purchase.



- Scholar Loan Scholar loan is

a loan for payment of tuition or any expenses for obtaining a master’s or doctorate degree.

- P e n s i o n Secured Loan

This is a special multi-purpose loan for government employees w h o r e c e i v e m o n t h l y pension payment from the Comptro l le r Genera l ’s Department.

7. FLASH Card is a

product that provides cardholders with enhanced flexibility as it serves as a source of a revolving credit. FLASH Card places an emphasis on fast and convenience service which enables the cardholders to withdraw cash from ATMs worldwide. FLASH Card also allows the cardholders to pay the minimum amount in each collection period.

8. Credit Card Services

This product provides the line of credit to purchase products/services as cash or allows cardholders to withdraw cash. TBANK, collaborates with VISA and MASTERCARD to provide credit card in multiple types suitable to customers’ qualifications and needs under the following names:



- T h a n a c h a t “Drive” Credit Card :

For customers who needed a credit card with cash back for every payment made at any gas stations.

- T h a n a c h a t Platinum Credit Card :

For customers who are looking for exclusive services and privilege benefits in a view of luxury and convenience.

TBANK offers electronic

products and services that enabled customers to make financial transactions at a better efficient manner. These services included fund transfer, Automatic Transfer Service (ATS), online settlement for financial transactions through the Bank of Thailand’s Automatic High-Volume Tr a n s a c t i o n N e t w o r k (BAHTNET), automatic money transfers between banks (Bulk Payment System), Bil l Payment service for goods and services and a debit card. To meet the customer needs, the Bank has also developed the service system through the Internet, which are as follows:

- Thanachart i-Net service

- Thanachart SMS Alert service

- Cash Back Debit Card

The strategy focuses on cross-selling and up-selling via bank

branches to both small and large scale companies. For individual customers who needed convenient transaction and safety for money transfer, TBANK initiates the promotion campaign aiming at easy accessibility and services. The money can be received on the same day of a transfer. Branches have been available in shopping centers or nearby office areas for customers’ convenience.

In 2011, TBANK offered services as follows: 1. Internet Banking Service. This service was for both individual

and corporate customers in order to broaden channels for customers to facilitate their financial transactions.

2. Financial Transaction Notification via SMS service. This 24-hour service notified all transactions i.e. deposit, withdrawal and money transfer via SMS to the customers’ mobile phone number registered with the Bank.

3. An exclusive Cash Back Debit Card. The value of this service was that customers receive cash back directly into their accounts for every spending. The EMV technology provided an ultimate security to protect a card from data stealing.


Group 3 Electronic Products and Services


1. Foreign Exchange Services

TBANK’s services include foreign exchange services in forms of; bank no t e s and t rave l e r ’s cheques, money changers, forward foreign exchange for international business transaction, inward and outward foreign currency transfers for goods and serv ices , t rans fer for personal accounts, account opening for Foreign Currency Deposit (FCD), etc.

2. Bill of Exchange

(B/E) TBANK has expanded

its bill of exchange services to every branch nationwide resulting in more convenient accessibility to customers. The product is well accepted by the customers.

3. Securities Business Support Services

TBANK’s securities business support services are, for example, Custodian, Trustee, Fund Supervisor and Bondholder Representative.

TBANK has expanded its branch network and currency exchange booths to serve all business sectors and tourists nationwide. TBANK also adjusts exchange rates by benchmarking with the movements of the world’s currency market. As a result, its customers receives real time rates and fair prices.

TBANK has developed B/E service to be safer and more

convenient to enhance customers’ confidence by using a B/E passbook that allow customers to review transaction lists and outstanding of investments in each bills of exchange.

TBANK also facilitates its customers by transferring payments of

principal and interest when the B/E reaches its maturity or transferring a payment of interest of each period automatically to the customers’ saving accounts or current accounts as stated in each purchase order. Target customers are those depositors both individuals and corporates who have financial literacy and experience in investing in debt instruments and are able to accept a certain level of the Bank’s credit risk.

Besides acquiring Foreign Sub Custodian license from the SEC

in order to serve Thai Funds which invest overseas, in 2011, TBANK applied and was granted a Registrar license from the SEC to support customers transferred from SCIB and to fully offer all range of services to meet customer needs. TBANK continues to develop business by utilizing the Bank’s network along with providing securities business support services to support the financial management of investment funds.


Group 4 Other Products


Influential Factors of Constraints on Business Operation

The economic outlook for the first nine months of

2011 was likely to expand moderately, although it was slow down in the second quarter as the production sector faced supply disruption problems following Tsunami disaster in Japan. In addition, exports of goods and services in Asian Region was decelerated due to uncertainty growth of the global economy in the last quarter of the year, resulting from real estate problems, unemployment problem in the U.S., and the European sovereign debt crisis. Besides, Thailand faced the widespread floods’ impact across the country, especially in the central region such as Ayutthaya and Patum Thani provinces, in which seven industrial estates were located. The total damages were amounted to THB 1,300,000 million approximately. These circumstances affected all sectors, especially productions and exports of hard disk drive, automobile, electronic bulbs and parts, and electric appliances.

Consequently, the economic growth in the fourth

quarter was dramatically contracted compared to the previous year, and was forecasted to grow at an annualized rate of 1.8 to 2.0 percent approximately. The expenditure of the government’s investment budget was reduced as the capital expenditure disbursement under the Thai Khem Khang: TKK 2012 program was declined. However, private sector investment remained sound.

Apart from economic factors, the commercial banks

needed to divert to ensure that they are properly prepared for entering the ASEAN Economic Community (AEC)’s 2015 Financial Sector Master Plan Phase II, implementing process between 2010 – 2014. This circumstance had drawn plenty of attention and awareness from commercial banks during the past years. The Financial Sector Master Plan phase II’s main policies could be categorized into three key pillars:

1) Reduce system-wide operating costs, including regulatory costs and costs of legacy non-performing assets, in order to enhance the efficiency of financial institutions system.

2) Promote competition and financial access by increasing of new service providers, as well as expanding business scope of existing service providers. This will help induce competition in price and service quality, as well as the opportunity for boarder financial access. Accordingly the efficiency of overall economy will increase.

3) Strengthen financial infrastructure, by enhancing the capability and tools for risk management, improving the information system for risk management, reviewing the financial laws that support risk management, strengthen the information technology (IT) infrastructure and capacity, and enhancing the capacity of human resources.

After the Bank of Thailand (BOT) has launched new

policies encouraging Thai commercial banks to gain strength from 2010 to 2011, the year of 2012 would be the phase of promoting competition. Accordingly, BOT has granted permission for foreign bank branches to open two additional branches and allowed any existing foreign bank branches in Thailand to step up as a subsidiary that could have a maximum of 20 branches and 20 off-premise ATMs. Thai commercial banks, therefore, need to improve their capability to withstand their market share and compete in the system.

Industry Condition and Competition

At the end of 2011, the total number of commercial

banks in industry registered at 31, of which 16 were domestically registered banks, and 15 were foreign bank’s branches.

The outstanding amount of deposits in the

commercial banking industry at the end of 2011 stood at THB 7,990,823 million, of which THB 7,367,485 million or 92.2 percent of total deposits were at the domestically registered banks, and THB 623,338 million or 7.8 percent of total deposits were at foreign bank’s branches. The total deposits of domestic banks increased 6.69 percent from the same period of the last year.

In terms of net loans of the commercial banking

industry, the total amount was THB 9,782,193 million. From the total net loans of industry, of which THB 8,732,797 or 89.27 percent of total net loans came from domestic banks and THB 1,049,396 or 10.73 of total net loans came from foreign bank’s branches. Comparing to the previous year, the total net loans increased 11.63 percent due to a real growth of an economic sector of the country.

Besides the competition within the commercial

banking industry, commercial banks also faced with other competitions from non-bank institutions such as non-banks, financial and capital market, as well as the


government’s specialized banks, resulted from changes in the regulators’ rules and regulations. The changes allowed for more flexibility and prepared the industry for the financial liberalization in the future. The increase of competitions has caused the commercial banks to increase competitive advantages by developing differentiations, called non-price strategies. The strategies are as follow: developing a more diverse range of financial products to meet the needs of specified customers (Customer Segmentation), increasing more distribution channels to cover potential customers across the nation such as increasing of branches in department stores, ATM booths, Electronic corner (ATM + CDM + UDP), etc., improving quality of service by using Customer Experience Management, making a good impression on customers by using Customer Data Analysis in order to offer suitable products and services that meet the customers’ needs, and establishing business alliances and merger in the financial industry. The objectives are to provide customers with greater convenience and to cater to customers’ all financial needs. Moreover, the commercial banks placed a strong emphasis on creating a corporate image through advertising media, public relations, and an establishment of a greater corporate social responsibility. In addition to a competition in interest rate, non-price strategy would help commercial banks substantially to differentiate their competitive positioning leading to competitive advantages in the future.

Regarding the interest rate trend, the most recent

meeting of the Monetary Policy Committee (MPC) on November 30, 2011 presented a resolution to decrease policy interest rate by 0.25 percent (from 3.50 percent to 3.25 percent), which was the first reduction of policy interest rate of the year (since the beginning of the year 2011, interest rate policy has been continuously risen, by 1.50 percent). The causes were an increasing risk of the global economy downturn and the remaining weak confidence of private sector from the floods’ impact of 2011.

The Company’s Size Compared to Competitors

In 2011, TBANK had accomplished in merger with

Siam City Bank on October 1, 2011, allowing TBANK to enhance its potential and competitive edge. Presently, TBANK have 676 branches in total. It had THB 886,060 million in its total assets, increased by THB 12,857 million from the previous year or 1.47 percent. The Bank’s ROAA was at 0.89 percent, ROAE was at 10.61 percent, total loans were THB 635,220 million, increased by THB 28,367 million or 4.67 percent from 2010. In addition, the Bank had 2,151 ATM booths. Moreover, to maintain market

leadership of hire purchase industry, TBANK purchased and held 65.81 percent of Ratchathani Leasing’s shares. Ratchthani Leasing has a strong emphasis on commercial cars (trucks and taxi), second-hand cars, and large-sized motorcycles (Big Bikes).

Trends in Competition

According to economic forecasts from domestic and

international research houses and financial institutions, economic indicators signaled an improvement. In 2012, the Thai economy is expected to grow at 4.5 to 5.5 percent from the previous year, driven mostly by economic restoration after the flood in 2011 which is expected to begin in the first quarter of 2012, as well as government stimulus policies employing various measures such as a rice pledging scheme, increase in the minimum wage and corporate income tax reductions, and a low base of 2011 economic figures. Yet, the weak of global economy continues to be a major factor that could undermine Thai economy and must be closely watched. As for the economy of the United States, although the unemployment rate declined in the fourth quarter of 2011 yet it remained high, the real estate sector has not yet recovered, while public debts stood at high level. Meanwhile, the debts crisis in Europe, especially in Greece was ongoing and began to spread into the financial sector of the Eurozone while no solid solution has been reached. These may be the key factors to cause Thailand’s exports in 2012 to slow down. Nonetheless, the inflation rate in 2012 is estimated to be similar to the previous year. The 2012 headline inflation is expected to be at 3.2 percent, caused by rising fuel prices and lower demand for commodities as a result of the global market downturn while domestic production costs grow higher than minimum wage, higher transportation costs from levy to oil fund, and higher rice price from rice pledging scheme. Due to the continuous increase of the policy interest rate to 1.50 percent in 2011, it is therefore estimated that in 2012 BOT will adjust the policy interest rate slightly.

As BOT has promoted competition under the 2nd

Phase of development plan which prepared for entering the AEC, it prompted Thai commercial banks to be more enthusiastic and more competitive. The competition trend in the Thai commercial banking industry in 2012 will be a service development under the Customer Centricity especially on Universal Banking and also the restructuring of branches to serve customers more effectively which enhances the Fee Based Income and increase efficiency of the services such as Internet Banking and Mobile Banking. Moreover, the quality improvement and business service in


Trade Finance and Cash Management will also build the banks’ interest this year. Building the Strategic Alliances with other businesses to expand the network and extending business potentials will also allow the commercial banks to better serve their target customer versatile. The strategy should also be complemented by the Bundling Product and Cross-selling within the bank’s own business group such as the Bancassurance in the life assurance and insurance businesses.

For risk factors in 2012, the global economic

recovery is a critical issue that must be monitored closely, especially the economic recovery in the U.S. where its labor market got a better signal at the end of 2011 and the public debt issue in Europe is intensifying and extending to other countries’ economies. France, Italy and Spain will therefore need to exercise strict Fiscal Consolidation while they are still lack of solid measures to solve this problem. Not only economic problems in the U.S. and Europe, the Asian economies that are tied to the global economy, especially on the export sector, started to slow down at the end of the year. Furthermore, political uncertainty in Thailand and performance of government in the fourth quarter of 2011, along with unclear guidelines for sustainable water management to prevent the flood in the long run may affect the confidence of consumers and investors in both inside and outside the country.

Products of Securities Business and Fund Management Business

Securities Business is provided to customers

through TNS. The company was granted a full license to operate a full range of securities businesses including securities brokerage (inside and outside Thailand), securities underwriting, investment advisory service, securities borrowing and lending service, financial advisory service, mutual fund management, private fund management, venture capital management, securities registrar, and derivatives business Sor 1. Also, the company is engaged in other related businesses that supported the securities business. As for Fund Management Business, this service is provided through TFUND who operates mutual funds, private funds, provident fund management businesses and investment advisory businesses.

Securities Business Products and Services TNS operates two key areas of business, brokerage

business and investment banking and advisory business. As of December 31, 2011, the company had a total of 36 branches and offered the following services:

1. Brokerage Business covers brokerage services

which included a service of securities dealing, securities trading, and giving investment advices to investors whether individual, retail, institutional, local or foreign, to make decision on their investment.

2. Derivative Business covers trading services for future contracts and derivatives.

3. Securities Borrowing and Lending (SBL) covers services of borrowing or lending securities for customers who has a desire to borrow or lend securities.

4. Investment Advisory covers services of seeking or issuing new financial products, whether local or foreign, in order to satisfy the customers’ needs. This also includes providing customers with investment planning and investment diversification by prioritizing customer’s suitability and investment objectives for each customer. Such investment covers various types of instruments.

5. Investment Unit Dealer covers services of sale support and provided fund facts and related information on mutual funds of various asset management companies that TNS represents.

6. Financial Advisory and Securities Underwriting Services covered financial advisory business, underwriting service of debt and equity securities both as a role of lead underwriter, co-underwriter, and dealer.

7. Securities Registrar covers three types of services, namely, a securities issuance registrar, securities holder registrar and a registrar for the Employee Stock Option Program (ESOP).

Competition and Market Outlook 1. Brokerage business in 2011 was relatively

volatile, especially in the second half of the year. The stock market in August 2011 reached its peak level in 15 years at 1,148 points and later in September 2011 dropped sharply due to a number of negative factors, both domestic and international such as economic disruption due to the flood and the debts crisis in euro-zone economies, especially in the PIIGS. In 2011, trading volume reached THB 7.19 trillion, the highest volume since 1975. Retail client transactions captured the highest volume at 55


percent of the market while foreign clients’ transactions returned to a net sales value of THB 5,290.42 million. In terms of mobilization of the number of initial public offering (IPO) in 2011, there were a total of 12 new IPOs (5 companies in SET and 7 companies in MAI). In 2011, the SET index closed at 1,025.32 points, 7.44 points lower than 2010 while the average daily trading volume was at THB 29,473.29 million, the highest volume for SET and the second highest behind Singapore Securities. TNS developed new financial products such as the SBL products for trading of foreign securities (offshore securities), so that investors can diversify the risks of investing in a full range of securities. TNS’s total trading value in 2011 was THB 553,069.59 million, accounted for 4.43 percent market share, ranked number 10 out of 35 companies in the industry.

2. Currently, there are a total of 41 members in the Thailand Future Exchange (TFEX), of which 36 are general securities companies and 6 are gold-trading members. In 2011, total trading volume was 10,027,116 contracts, or a daily average of 41,145 contracts, an increase of 120 percent from a daily average of 18,676 contracts in 2010. As of December 30, 2011, there were 56,452 outright contracts, a decrease of 28 percent from 77,955 outright contracts in 2010. The key contributing factor was the popularity of Gold Futures trading which almost tripled in trading volume from 971,423 contracts in 2010 to 3,989,278 contracts in 2011, with a daily average of 16,350 contracts, valued at THB 11,037 million as the gold price has continued to rise to a peak of over USD 1,900 per ounce in the third quarter, as a consequence of volatility of gold prices in conjunction with the extension of TFEX’s trading hours to 10.30 pm. since June 2010 onwards. TNS trading volume accounted for 2.52 percent market share, ranking number 18 out of all members in TFEX.

In 2011 there were 62,883 TFEX trading accounts,

an increase of 50 percent from 41,880 accounts in 2010. The proportions of the most active investors were domestic individual investors which accounted for 60 percent of the market while foreign investors accounted for 33.6 percent and domestic institutional investors accounted for 6.4 percent respectively.

3. Currently, an investment advisory service is being offered only by the top-rank securities companies and the large commercial banks which try to offer customers with complete and more integrated financial services. The current major customers focus their priority on the allocation of investment and diversification of financial products to get a better return on investment and to be more efficient in financial management. This

business sector, therefore, become more popular among financial institutions who try to enhance their service potential in the future. Beside domestic competitors, there is competition from foreign private banks, which focus on offering investment alternatives in various types of instruments in order to create a satisfactory return to major customers in Thailand.

4. In financial advisory and securities underwriting services, competition was aggressive, especially in mergers & acquisitions, IPOs and fund raising. Though competition focuses on price, the key competitive factor, thus, remains on service quality, expertise on providing a customer with relevant advice and solutions to a problem, having a wide network, as well as product innovation, which can create value-added and greater benefits to customers of TNS.

Fund Management Business

Products and Service TFUND put importance and emphasis on a great

range of retail mutual funds marketing strategies, in order to fully cover all needs of investors in every group and level. The company utilized many types of distribution channels for sales, such as TBANK’s branches and other investment unit distributors licensed by SEC. The TFUND’s staffs are qualified by law and are strictly required to adhere to related laws and regulations. For greater convenience, TBANK, acting as investment unit distributor, has been supporting sale and redemption of investment units offered by TFUND as well as other investment management companies it represents through electronic channels.

Competition and Market Outlook As of December 30, 2011, there were a total of

23 fund management companies, with total assets under management of THB 1,750,824.95 million (excluding Vayupak Fund, Foreign Funds, Property Fund for Resolving Financial Institution Problem and Property and Loan Fund), an increase of 2.75 percent from 2010. During 2011, there were 692 newly issued funds, accounting for THB 1,086,169.61 million of net assets. Among the newly issued funds, 228 were domestic and foreign investment funds fixed-income funds investing in debt securities with maturity not exceeding 1 year, which accounted for THB 536,033.50 million of net assets or 49.35 percent of total net assets of the newly issued funds during 2011.


As of December 30, 2011, TFUND had THB 96,350.78 million assets under management from which retail mutual funds accounted for THB 78,372.94 million, private funds accounted for THB 9,087.86 million, and provident funds accounted for THB 8,889.98 million.

Insurance Business

The Insurance business of Thanachart Group can

be divided into two key areas, namely non-life insurance operated by TNI, which offers all types of non-life insurance services, and life insurance operated by TLIFE, which offers life insurance services to institutional, corporate and individual customers.

Non-Life Insurance Business

Products and Services TNI offers all types of insurance services e.g. fire,

automobile, marine, and miscellaneous. In addition, the company also operates investment businesses.

Competition and Market Outlook In 2011, non-life insurance business in Thailand

experienced a growth in direct premium income compared to 2010, and was expected to grow by 10.6 percent but at a decreasing rate as compared to 2010 which had a growth rate of 13.7 percent, primarily due to the effect of the Tsunami in Japan in April 2011, resulting in a slowdown of domestic automobile manufacturing. Moreover, the flood crisis in Thailand in October 2011 also affected the entire economy as well as domestic automobile manufacturing which, in turn, directly affected the non-life insurance business.

As for the non-life insurance market structure in

2011, automobile insurance received the highest share of the market with a total share of 59 percent, followed by miscellaneous insurance with 32 percent, fire and marine & transportation insurance with 6 and 3 percent, respectively.

In 2011, The Office of Insurance Commission (OIC)

issued stricter rules and regulations, especially on Risk-Based Capital Requirement, minimum standards of risk management in non-life insurance businesses. To comply with these rules, domestic non-life insurance companies opted to emphasize on risk management and become more careful on insurance policy underwriting to avoid high risks.

TNI focuses on a standard of products, service

quality, productivity, efficiency and honesty, as well as development of new products in order to offer new policies which are more coherent with economic and social conditions and responsive to customer needs, by taking

into consideration a fair premium rate to customers. Furthermore, the company constantly adjusted its progressive competitive strategy to be coherent with ever-changing conditions, by ways of increasing sales channels, expanding the customer base, and maintaining the existing customer base. As much as 95 percent of all customers are those with a policy claim limit not exceeding THB 5 million. The customers mostly selected automobile and fire insurance and these customers mainly are the Bank’s lending customers as well as customers from the company’s marketing campaigns.

This service is only offered to domestic customers.

The customer group with a policy claim limit of THB 5 million are mostly comprised of institutional customers, private enterprises that possess branch network, both in commerce and industrial sectors. A major portion of this customer group choose miscellaneous and fire insurances. As aforementioned, it can be concluded that TNI has never relied on any customer group that accounted for more than 30 percent of TNI’s total revenue.

According to Thai Reinsurance Public Company

Limited, the Thai economy is expected to continue growing after 2011, but less than the growth in 2011 due to the impact of the flood crisis in Thailand and also the complexity and uncertainty of climate, economic, social, and political conditions. These are key variable factors determining the direction of the non-life insurance industry in Thailand. If economic growth is in line with assumptions, the insurance industry would likely to experience a moderate expansion of 10 percent in premium received or a total of THB 151,819 million. Miscellaneous insurance received the highest growth rate 17 percent, followed by automobile insurance with 10 percent, marine & transportation and fire insurance with 6 and 3 percent, respectively.

Life Insurance Business

Products and Services TLIFE offers life insurance and saving, which can

be divided into two key categories, individual and group insurance. The license to operate the life insurance business was granted by the Office of Insurance Commission (OIC) on 22 October 1997.

Competition and Market Outlook TLIFE operates its business with a multi-distribution

channel strategy, in order to satisfy various needs of the customers by offering products and services suitable for each customer group. The company has utilized various channels, such as, the bancassurance channel, corporate


network channels, insurance brokers, cooperatives, and other agents. TLIFE is customer centric, developing new products and offering services suited to the needs of customers and appropriate marketing channels. As TLIFE is a part of the Thanachart Group, the company’s customers included savings deposit customers, automobile hire purchase customers, mortgage loan customers, SME loan customers, as well as customers from other corporates, co-operatives and companies through other distribution channels.

In the 10-month period of 2011, the life insurance

industry captured a total market share of THB 263,317 million representing an increase of 12.12 percent. The main market sector went to individual and group insurance as follows:

Individual insurance received a total premium of

THB 221,246 million which accounted for 84.02 percent of the market and a 15.38 percent increase, due to new product innovations which are more coherent with the economic trends, interest rates, target customers’ need as well as sales promotions and marketing staff skills.

Group insurance received a total premium of THB

30,587 million which accounted for 11.62 percent of the market, yet, this represented a 3.20 percent decline. The main source of premiums, 53.59 percent, came from Group Mortgage. In the 10-month period of 2011, mortgage insurance experienced a declining growth at 15.02 percent due to a lack of tax incentives on property transfer fees and mortgage registration fees to encourage consumers to complete housing transfers as in 2010. Moreover, the flood occurring in many areas during the fourth quarter of 2011 has slowed consumer buying decisions due primarily to the cost of flood evacuation and provision for the cost of home repairs after the flood. Meanwhile, consumers postponed their decisions to buy a new housing in order to determine the locations safe from the flood. The cumulative 10-month of automobile market reported sales volume of 713,842 units, 13.6 percent increase compared to the same period of the previous year. The passenger vehicle market saw a growth of 17.5 percent and the commercial vehicle market of 10.6 percent due to strong purchasing power of consumers as well as growth in investment and consumption and the continuing popularity of new vehicles for the first three quarters of 2011. However, the premium from auto hire purchase loans may be subdued due to the impacts of the great flood on the domestic automobile industry.

Currently, the life insurance industry consists of 24

insurance companies. In 2011, the company occupied a total premium of THB 5,791 million, or a 2.20 percent of the market share and ranked 10th in the industry.

The Individual Life Insurance Product has a variety of products such as saving products and annuity products. The products with the highest sales figures are as follow:

Speedy Saving 10/2, it is a short-term savings

product with premiums due for only 2 years, yet providing 10 years of life insurance coverage and a cash back policy at the end of the first year at the rate of 3 percent, and the second year to-10 that the rate of 6 percent, and on maturity date at the end of the 10th year at a lump sum rate of 200 percent, equivalent to a total cash return benefit of 257 percent.

Big Bonus 12/6, it is 12 years life insurance with

premiums due for only 6 years with cash back policy for the first to -fourth year at the rate of 8 percent, the fifth to -eighth year at 10 percent, the ninth to -twelfth year at the rate of 12 percent, and on maturity at the end of the 12th year at a lump sum of 660 percent, equivalent to total cash return benefit of 780 percent.

Thanachart Annuity 85/60 (Tax Deductible

Benefit) has premium payments until 59 years of age and coverage period until 85 years of age. While providing benefit of 12 percent annuity between 60-85 years of age, totaling 312 percent cash benefits with guaranteed annuity over 20 years. For this plan, insurance premiums can be used for an income tax shield up to a maximum of THB 300,000 per year.

Thanachart Annuity 90/5 (Tax Deductible

Benefit) is a new life insurance products with a coverage period until 90 years of age and a short period of premium payments of only 5 years with an annuity benefit of 12 percent between 60 to 90 years of age, totaling 372 percent cash benefits. For this plan, insurance premiums can be used for an income tax shield up to a maximum of THB 300,000 per year.

Group Insurance provided appropriate products

to each distribution channel, comprising of Thanachart Smile Car Plus+ and Thanachart Smile Car Extra which cover all liabilities of car loans through car hire purchase, Thanachart Smile Home and Thanachart Smile Home Plus which cover all liabilities of home loans through mortgage loan, Thanachart Smile SME which covers liabilities of SME loans for enterprises through SME loans. Moreover, the Company also provides group insurance for cooperatives, other companies and organizations.

There are many factors to support life insurance

business trend in 2012; to name a few are government’s rehabilitation plan for the flood disaster in early 2012, Thai people’s concern over uncertainty of natural disaster that


motivated them to be aware of and give importance to life insurance in order to mitigate risk for themselves and their families. As a result, customers purchased more life insurances while insurance companies have developed new policies of various life insurance products that are more consistent with the economic conditions and that expand distribution channels to meet customers’ needs. To provide accessibil ity, a services provider system has been developed, prior to and after sale service, training for insurance brokers and banks that are life insurance agents. In addition, the OIC has announced a policy to promote savings and awareness about savings through life insurance by giving an additional benefits of THB 200,000 income tax shield from life insurance annuities. A number of life insurance companies, therefore, have developed a variety of life annuity policies to support the diverse structure of the aging population targeting at those over 60 year old, in order to get a regular income after retirement. For the aforementioned, it is estimated that the life insurance business will continue its growth at increasing rate in 2012.

Assets Management Business

Products and Services Assets Management Business operates by TS AMC

Company Limited (TS AMC) which was established on March 3, 2011. The license to operate the assets management business was granted by the BOT and under the Emergency Decree on the Asset Management Corporation BE 2543 (1998), the asset management company Registration No. 001/2554 dated April 12, 2011. It received the transfer of non-performing assets from SCIB and TBANK, including both non-performing loans and non-performing assets, in order to conduct debt restructuring with the debtors, hence, allow them to repay the debts at their real debt-service capacity and turning non-performing assets back to becoming the performing ones.

Competition and Market Outlook TS AMC operates its business with a primary

objective to manage and restructure the non-performing assets received from SCIB and TBANK. To divest or sell those non-performing assets (NPA) to third parties who are interested in real estate market, TS AMC hires a professional advisory in assets sales to determine the selling price and manage the assets in such a way that creates the highest value. It also appoints a professional asset selling agent as well as collaborates with the related group of companies to expand sales channels, such as brokers or auction agents as well as cross-selling and

through website of TNS and the other channels to reach the target customers as much as possible.

Products and Services Management

Sources of fund One source of TBANK’s fund was the its capital,

comprising of issued and paid-up capital in the amount of THB 55,137 million in 2011, including legal reserve and retained earnings. Another two key sources of fund which were;

1. Deposits which by the end of 2011 were in the amount of THB 436,040 million.

2. Borrowings which were in the amount of THB 254,296 million, of which THB 218,492 million were short-term B/E since TBANK provided B/E as another saving alternative for its customers and THB 35,804 million were long-term borrowings.

Funding or lending to related

parties At the end of 2011, TBANK extended loans to

subsidiaries and related companies in Thanachart Group as follows;

1. TGL (subsidiary of TBANK) TBANK extended loans to TGL for hire purchase

business for all types of automobile, in line with the business direction of Thanachart Group. In 2011, loan outstanding balance was THB 353 million, a decrease from THB 934 million at the end of 2010.

2. National Leasing (subsidiary of TGL) TBANK extended loans to National Leasing for

property hire purchase business as well as property leasing. In 2011, loan outstanding balance was THB 22 million, a decrease from THB 52 million at the end of 2010.

3. Ratchthani Leasing (subsidiary of TBANK) TBANK extended loans to Ratchthani Leasing for

hire purchase business for all types of automobile, in line with the business direction of Thanachart Group. In 2011, loan outstanding balance was THB 7,867 million.

4. TS AMC (subsidiary of TBANK) TBANK extended loans to TS AMC for asset

management business by receiving transfer and managing of NPLs and NPAs, in line with the business direction of Thanachart Group. In 2011, loan outstanding balance was THB 9,822 million.

Loan outstanding balance of Thanachart Group, as

aforementioned, totaled to THB 18,064 million, accounted for 2.84 percent of total loans at the end of 2011. All lending and borrowing activities were transacted under the permission of the BOT.


RISK MANAGEMENT AND RISK FACTORS

An Overview of the Risk Management Thai economy grew marginally by only 0.1 percent in 2011 compared to 7.8 percent of 2010, attributed to a

combined effect of several risk factors including world economy slowdown, European sovereign debt crisis, Japan’s Tsunami disaster in the second quarter as well as the devastating floods in Thailand in the last quarter of the year which posed substantial impact on agricultural and industrial sectors in a large area. Consequently, export, private consumption, and private investment became contracted in the last quarter of the year. It is, however, forecasted that Thai economy will start to rebound by mid 2012. GDP will grow within a range of 5.5 to 6.5 percent, driven primarily by government’s flood-damage restoration measures and policies that stimulate domestic spending. Yet, there remain a number of risk factors such as uncertainty over the world economic crisis, fluctuation of capital flows, pressure from inflation, and the government’s minimum wage policy, which may adversly affect business operations. Caution must be given in business management in order to cope with uncertainties and to be ready to compete in the global arena, in particular in the year 2015 when Thailand will step into the ASEAN Economic Community (AEC).

TBANK and Thanachart Group have realized the importance of risk management. In the year 2011, TBANK

continually developed an Internal Capital Adequacy Assessment Process (ICCAP) to support risk other than credit risk, market risk and risk in compliance with Pillar 2 of Basel II framework, in accordance with the Bank of Thailand (BOT) guidelines, which will make TBANK manage funds more efficiently.

The Board of Directors and executives of TBANK closely govern, monitor and develop the risk management system

regularly to be sure that the measures are appropriate to and prompt on the ever-changing internal and external risk factors. To support the risk management system, TBANK strategically establishes a structure of the organization to support the operation under the direction and supervision of the various committees, as follow:

The Board and Committees at the Policy Level;

TBANK’s Board of Directors and the Executive Committee has a role in policy determination and establishes

guidelines for an efficient enterprise-wide risk management by taking into consideration the impact of risks on TBANK’s operational goal and financial position that has to be in line with its normal operation.

Risk Management Committee plays a role in establishing strategic plans and developing the risk management

procedure, as well as considering appropriate risk management policies and guidelines which will be proposed to the Executive Committee and the Bank’s Board of Directors for consideration and approval.

Audit Committee has a role in determining the supervisory guidelines for the operation to comply with measures of

related authorities as well as assessing the effectiveness and competency of the risk management process and internal control system.

The Committees at the Operation Level;

Asset and Liability Management Committee plays a role in supervising the structure of the Bank’s assets and

liabilities to be appropriate for characteristics of the business and in line with the Bank’s risk management policy. Investment Portfolio Committee plays a role in supervising investment in financial instruments of TBANK to be in

line with the Bank’s market risk management policy. Credit Committee plays a role in supervising the credit lending and other credit-related transactions to be in line

with the Bank’s credit risk management policy.


Chief Executive Officer and President

Deputy Chief Executive Officer

Audit CommitteeRisk Management Committee

Office of Executive Committee and CEO

Asset and Liability Management Committee

Investment Portfolio Committee

Credit Committee

IT Security Management Committee

Internal Audit

Risk Management Policy and Capital Market

Credit Analysis I & II

Risk Control

Risk Management

Compliance

Executive Committee

Board of Directors

•The conduct of business affairs is under a system of check and balancewith theMiddle office, comprising of the Risk Control Department and the Back Office, being separated from the Front Office.

•TBANK would put in writing all the established policies and guidelines regarding the riskmanagement that

specifies responsibilities of related unit as the operational guidelines for the employees. Moreover, the Bank has established a four-step guideline for risk management comprising of; 1) identification of the characteristics of risk as well as risk factors, 2) development of appropriate tools and models for risk measurement, 3) the control of risks within acceptable limits and 4) the close monitoring of risk status in order to properly manage any possible risks in a timely manner.

•The difference in size and risk ratios determined for each exposure allowed TBANK to be able to perceive the

degree of severity from the possible risks. These risk variables could also be used as a ceiling or the acceptable risk level as well as to provide warning signals before severe losses occur.

The aforementioned risk management systems are developed based on prudent principles and will be reviewed

regularly to suit prevailing situations. The systems are designed to be transparent, explicit examinable and to take into consideration the interests of shareholders, customers and staff of the Bank.

IT Security Management Committee plays a role in establishing policies regarding the IT Security System, proposing preventive measures against risks arising from information and technology system, as well as monitoring, supervising and controlling the operation of the IT Security System in accordance with the proposed plan.

Audit Division has a key role in (i) reviewing internal control system, risk management system, the conduct and

disclosure of financial information, the operation, the report and supervisory procedures to govern practices in accordance with policies, work plans, rules and regulations of TBANK and its subsidiaries, official rules and regulations of relevant regulators and good corporate governance principle, and (ii) providing consult with other divisions for the sake of development and proper internal control of TBANK’s and subsidiaries’ system.

TBANK’s Risk Management Structure

As of December 31, 2011


Key Risk Categories 1. Credit Risk

Credit risk arises from a situation in which the debtors or counterparties fail to repay or fulfill their agreed obligations. This might be contributed by the fact that the debtor’s financial position is under distress due to volatilities of economic conditions that pose adverse impact on businesses or the debtors’ mismanagement, which as a result, may adversely affect TBANK and the subsidiaries’ earnings and capital. The credit risk may arise from ordinary financial transactions such as credit lending, financial obligations in the form of avals or guarantees, other transactions related to credit lending, as well as investment in debt instruments issued by state agencies or state enterprises with neither guarantee from government nor the BOT and private debt instruments such as debentures.

Under its credit risk management policies and guidelines, TBANK has successfully established a credit culture.

To start with, the credit risk of the borrowers, counterparties or issuers of debt instruments will be independently assessed by the model developed specifically to each type of borrowers or counterparties by the Credit Analysis Unit. At this juncture, authorized Credit Committee would then consider and determine the level of credit risk of borrowers or counterparties, appropriate credit lines and investment budget, as well as terms and conditions on loans or other obligations. The Committee also controls the overall risk status by appropriately diversifying credit risk into various business sectors and groups of customers within the established risk ceilings. In addition, the Committee closely monitors the quality of loans to ensure proper and vigilant management by emphasizing on business capability and repayment ability under the supervision of an independent risk control unit. Apart from the aforementioned units, there is also an Internal Audit Division to verify that the credit transactions are in compliance with the BOT’s guidelines.

To ensure optimal returns under acceptable risk, TBANK has employed measuring tool called RAROC (Risk

Adjusted Return on Capital) to reflect the appropriate level of capital. Moreover, the Bank also performed stress tests to estimate any damage that may occur during the crisis. Under this condition, the borrower’s ability to repay could erode or they could fail to make a repayment under terms and conditions stated in the hypothesized contract. The risk factors in the tests were assumed to affect the industry that the debtors’ business belonged to.

Important credit risk factors 1.1 Credit concentration risk

TBANK aims to appropriately diversify its loans to various groups of customers, focusing on high potential customers and attempt to prevent concentration of loans to a particular group of customers. Under such goal, the TBANK pursues proper risk management on overall credit portfolios with close monitoring and comprehensive assessment to report to the assigned committees on a regular basis. The purpose is to mitigate exogenous risks that may adversely affect any particular group of business excessively financed by the Bank.


Table of credit status As of December 31, 2011 compared to December 31, 2010 classified by business types was as follow:

2011 2010 Debt balance (THB Million)

Debt balance (THB Million) Percent Percent

Agricultural and mining 10,830 1.71 10,957 1.81Manufacturing and commerce 81,967 12.90 97,384 16.05Real estate and construction 47,972 7.55 52,406 8.64Public utilities and service 58,441 9.20 66,047 10.88Housing loans 73,636 11.59 77,636 12.79Margin loans for securities business 2,236 0.35 2,683 0.44Hire purchase 286,361 45.08 239,611 39.48Others 73,777 11.62 60,127 9.91

Total loans and accrued interest receivables 635,220 100.00 606,851 100.00

Business type


Debt balance (THB Million) Percent Percent

Substandard 7,026 18.65 6,649 18.04Doubtful 12,059 32.01 13,948 37.84Doubtful of loss 18,592 49.34 16,262 44.12

Total 37,677 100.00 36,859 100.00

Loan classification

The overall credit data revealed that TBANK’s lending on hire purchase business grew moderately from 39.48 percent as of December 31, 2010 to 45.08 percent of total loans and accrued interest receivables as of December 31, 2011. Most of these hire purchase loans were provided to retail customers whose credit line was relatively small and with a large number of customers, such risk therefore was well diversified.

1.2 Risks from non-performing loans

The non-performing loans are loans classified as substandard, doubtful and doubtful of loss. They have been the major concerns across financial institutions due to their adverse effect on earnings and capital of TBANK and subsidiaries. At this juncture, TBANK has focused major efforts on controlling credit quality through appropriate policies and procedures to regularly monitor the quality of the loans.

Table of the NPLs Ratios As of December 31, 2011 compared with those of December 31, 2010 were as follow:


TBANK and subsidiaries’ non-performing loans increased from THB 36,859 million as of December 31, 2010 to THB 37,677 million as of December 31, 2010. From the credit overview, the non-performing loans were accountable for 5.93 percent of total loans and interest receivables, dropped from 6.07 percent as of December 31, 2010. The non-performing loans could be classified by types of business as follow:

Table of Non-Performing Loans Classified by Type of Business


Debt balance (THB Million)

Percent Percent Type of Business

Agricultural and mining 347 0.92 401 1.09 Manufacturing and commerce 16,588 44.03 14,924 40.49Real estate and construction 3,767 10.00 4,745 12.87Public utilities and service 5,510 14.62 5,981 16.23Housing loans 3,501 9.29 2,807 7.62Margin loans for securities business 306 0.81 1,339 3.63Hire purchase 3,553 9.43 3,977 10.79Others 4,105 10.90 2,685 7.28

Total loans and accrued interest receivables 37,677 100.00 36,859 100.00

As of December 31, 2011, TBANK and its subsidiaries, under the BOT’s supervision, had no credit risk from non-performing loans that collateral did not fully cover the remaining loan amounts after deducting provision for loan loss. This was due to the fact that 100 percent provision was allocated on such loans by the Bank in compliance with the International Accounting Standards No. 39 (IAS39).

Table of Non-Performing Loans

Change 2010 2011

Non-performing loans (NPLs) 37,425 35,606 1,819 Loans not fully covered by collateral 19,585 19,184 401 Provision for loan loss 19,725 19,374 351

Loans not fully covered by collateral after loan loss provision - - -

General provision for loan loss 383 534 (151)

(Unit: THB Million)


Table of Troubled Debt Restructuring

The risk on debt restructuring arises from the re-entry of the substandard debtors, i.e. after the debt restructuring, the debtors again default on their repayments and hence re-enter the non-performing status. The problem poses adverse effects on debt-restructuring performance of TBANK and its subsidiaries. As of December 31, 2011, the outstanding principal and the accrued interest receivables of the restructured debt amounted to THB 38,816 million or 6.10 percent of total loans and accrued interest receivables. The net restructured debt (less collateral) amounted to approximately THB 14,558 million.

1.3 Risks from Collaterals

For collateralized loans, TBANK carefully assess and classify quality of each type of collateral by taking into

account the liquidity and overall risk from that collateral. The assessment result is one of the important factors applied in the classification of each credit exposure. In this regard, the collateral, both in the form of immovable and movable whose value could be appraised, is subject to appraisal or valuation complying with the BOT’s regulation. TBANK significant types of collateral are deposits and bills of exchange, marketable equity securities, non-listed equity securities, commercial immoveable property, immovable property from housing, vehicles, machinery, etc. TBANK has determined guidelines, standards and frequency of appraisal and valuation of each type of collateral. Furthermore, a report of the appraisal and valuation is made which includes clear and sufficient data and analysis to determine the price. In the case that it cannot be specified whether the collateral price has decreased or declined over time, the impairment of the asset must be considered by an official.

In the past years, automobile hire purchase loans of TBANK and its subsidiaries have continued to expand.

According to the BOT notification regarding the valueless and non-callable assets dated December 2006, the regulations on provisioning based on IAS39 whereby cars whose ownership belongs to the Bank can be used as collateral. In the case of default, the Bank is eligible to immediately repossess to collateral for the purpose of reselling in the used car market. As a result, TBANK and its subsidiaries might be exposed to risk from the inability to repossess the cars or from recovering the incurred loss by reselling the assets. Such conditions depend on various risk factors, for instance, the conditions of the used car market and the repossessed car itself.

1.4 Risk from Guarantees and Avals

Under the current customer service, TBANK and its subsidiaries are also obligated in forms of avals, letter of

credits and loan guarantees, which TBANK and its subsidiaries are held responsible for, should the customers are unable to fulfill their obligations. In managing such risk, TBANK carefully scrutinizes supporting information and applies strict approval procedures to these obligations. The close monitoring on these transactions is undertaken based on the same guideline used for its regular lending procedure of TBANK.

2010 2011

Number of debtors (persons) 53,922 20,194Outstanding principal and accrued interest receivables 38,816 28,230Loans not fully covered by collateral 14,558 12,009Revaluation allowance for debt restructuring 382 460

Total loans and accrued interest receivables 636,183 607,775

Restructured debts to total loans (percent) 6.10% 4.64%

(Unit: THB Million)


As of December 31, 2011, TBANK and its subsidiaries’ obligations in the form of avals and guarantees for loans amounted to THB 26,752 million or 3.02 percent of the total assets.

2. Market Risk

The market risk arises from movements in interest rates, exchange rates and prices of instruments in money

market and capital market, which may adversely affect earnings and capital of TBANK and its subsidiaries. The market risk can be segmented into three categories including price risk, interest rate risk and exchange rate risk. At this juncture, TBANK’s policies are to control and manage these risks to remain at an appropriate level and inline with TBANK’s policy on risk management.

2.1 Price Risk

Price risk arises when TBANK and its subsidiaries’ earnings or capital are adversely affected by changes in the

price of debt and equity instruments, causing the value of TBANK and its subsidiaries’ trading and available-for-sales investment portfolio to decline.

TBANK has developed risk measurement tools based on the Value-at-Risk (VaR) model to estimate the

maximum loss amount at a certain confidence level and over a given asset holding period. TBANK also determine the various limits of transactions in order to control risk to remain in as acceptable level, for example; Position Limit, Loss Limit and VaR Limit. The Risk Control Unit, separated from the front office and the back office, has the duty of risk control and reporting on the status of the limits to the Board of Directors, departments and executives associated to the risk management. In order to ensure the efficiency and accuracy of its tools for risk measurement, TBANK requires that the tools are subject to back-testing in accordance with the Bank of International Settlement (BIS) standards. Moreover, TBANK has conducted stress testing by formulating stress scenarios which can create extraordinary reduction in stock prices. The test result could therefore shed light on the impact on TBANK earnings and required capital should such events occur.

As of December 31, 2011, TBANK and its subsidiaries’ trading investments and available-for-sale securities

classified by type of investment were as follow:

Table of trading investments and available-for-sale securities classified by type of investment

Trading investments Government and state enterprise securities 10,479 45Private debt securities 4,758 21Foreign debt securities 637 3,023Domestic marketable equity securities 38 80

Total trading investments 15,912 3,169

Available-for-sale investments Government and state enterprise securities 41,003 52,604Private debt securities 18,533 10,064Foreign debt securities 25,425 12,920Domestic marketable equity securities 7,983 8,530

Total available-for-sale investments 92,944 84,118

Total trading and available-for-sale investments 108,856 87,287

2010 2011

Fair Value (THB Million)


TBANK and its subsidiaries have invested more in debt securities, thus, the value of trading and available-for-sale investments have increased. As a result, the price risk of TBANK and its subsidiaries are higher than the previous year.

2.2 Interest Rate Risk

The interest rate risk is the risk that earnings or capital are adversely affected by changes in interest rates that pose impact on its rate-sensitive items including assets and off-balance sheet items whose repricing periods are mismatched. These changes may have a negative impact on net interest income of TBANK and its subsidiaries.

It is the goal of TBANK to run their business operations under a long-term effective interest rate risk

management system. In other words, to maintain an appropriate structure of assets and liabilities which are rate-sensitive at different time intervals. To ensure maximum benefits of TBANK’s shareholders, TBANK has developed the Repricing Gap Analysis Model as a tool for measuring interest rate risk by assessing the impact that may arise from the mismatch of the repricing periods of assets, liabilities and obligations at different time intervals, which is used for risk measurement every month. In order to ensure that the risk of TBANK business operations is within an acceptable limit, they have also established an acceptable risk ceiling and an early warning risk level, taking into account the structure of assets, liabilities and obligations as well as interest rate repricing which are expected to take pace in each period of TBANK business plan. The Asset and Liability Management Committee (ALCO) is responsible for monitoring and controlling such risk very closely. To effectively design appropriate measures to accommodate the risks, the committee has to monitor economic conditions, development in the money market and capital market and the interest rate trend which could become important risk factors to the Bank’s rate-sensitive items.

Details of financial assets and liabilities as of December 31, 2011, classified by the period when the interest rates

would be repriced in accordance with contracts related to financial assets and liabilities of TBANK and its subsidiaries were as follow:

Table of Financial Assets and Liabilities

Items

Financial assets Cash - - - - - 16,006 16,006Interbank and money market items 23,000 29,523 2,655 - - 8,137 63,315Derivatives - - - - - 1,536 1,536Investments 12 14,772 46,447 57,851 16,781 13,308 149,171Loans 316,891 22,243 15,445 212,320 68,113 208 635,220Receivables from clearing house - - - - - 25 25Receivables from purchase

and sale securities and derivatives - - - - - 858 858

Total financial assets 339,903 66,538 64,547 270,171 84,894 40,078 866,131

Financial liabilities Cash 174,608 169,399 77,929 8,404 - 5,700 436,040Interbank and money market items 20,877 32,220 5,379 217 - 1,458 60,151Liabilities payable on demand - - - - - 2,131 2,131Derivative liabilities - - - - - 2,886 2,886Borrowings 999 133,517 103,060 16,700 21 - 254,297Payables to clearing house - - - - - 306 306Payables from purchase

and sale securities and derivatives - - - - - 851 851

Total financial liabilities 196,484 335,136 186,368 25,321 21 13,332 756,662

Period of interest rate repricing or due date

At call 0 - 3 months

3 - 12 months 1 - 5 years Over 5

years No interest Total

(Unit: THB Million)


Based on the aforementioned structure of financial assets and liabilities, TBANK’s net interest income in the next year would decrease should the market interest rate increase. This was mainly due to the expansion of TBANK’s hire purchase business with fixed-interest-rate feature.

2.3 Exchange Rate Risk

The exchange rate risk is a risk that the earnings or capital of TBANK and its subsidiaries can be adversely affected by exchange rate fluctuations from transactions in foreign currencies, exchange rate exposures in their possession of assets or liabilities in foreign currencies. There are two types of exchange rate risk-risk from transactions in foreign currencies (Transaction Risk) and risk from exchanging foreign currency to local currency (Translation Risk).

The ALCO is responsible for monitoring and controlling this type of risk through the consideration

in the proper matching between the structure and the maturity of assets and liabilities in foreign currencies. TBANK’s policy is to also rely on the VaR ceiling in order to control the impact of exchange rate movements on earnings and capital. Nevertheless, in order to avoid the exchange rate risk, TBANK has also relied on hedging instruments such as forward contracts.

As of December 31, 2011, TBANK and its subsidiaries faced with relatively low exchange rate risk as most

of the assets in foreign currencies have been hedged by forward contracts. 3. Liquidity Risk

Liquidity risk arises from the inability of TBANK and its subsidiaries to repay their debts or obligations upon the delivery date due to the lack of ability to convert assets into cash or to mobilize adequate funds or to mobilize funds at an acceptable cost. This could adversely affect the current and future earnings and capital of TBANK and its subsidiaries. The liquidity risk management mechanism starts with the assessment of the cash flows and liquidity position over particular time horizons of TBANK when the different levels of funds may be required to accommodate deposit withdrawal, reduce other types of the Bank’s liabilities or increase the Banks’s assets by using the Liquidity Gap Analysis. Various liquidity ratios and “What if” scenarios to evaluate the sufficiency of the cash flow liquidity depending on customer behavior in extending contracts upon maturity and estimate the need of liquidity in various “What if” scenarios depending on the economic climate and extraordinary situations that may happen to TBANK and the financial institution system.

Meanwhile, TBANK and its subsidiaries developed an emergency plan in the case of a liquidity problem and

there will be a revision of the significant occurrences that affect working operations. In this regard, TBANK and its subsidiaries have assigned ALCO, controlling and managing the liquidity risk with a weekly meeting to monitor and manage risk.

The structure of TBANK’s capital fund could be classified by different type and maturity of source of funds

as follow:

Table of Capital Funds Classified by Source (Unit: THB Million)

Percent Percent 2010 2011

Deposits 436,040 58.10 532,656 70.27Domestic interbank and money market items 50,851 6.78 33,251 4.39Foreign interbank and money market items 9,300 1.24 7,294 0.96Borrowings 254,297 33.88 174,949 23.38

Total 750,488 100.00 748,150 100.00


Table of Capital Fund Classified by Maturity (Unit: THB Million)

Percent Percent 2010 2011

Less than 1 year 701,284 93.44 680,818 91.00More than 1 year 49,204 6.56 67,332 9.00

Total 750,488 100.00 748,150 100.00

As of December 31, 2011, deposits and borrowings of TBANK and its subsidiaries amounted to THB 750,488 million, where sources of funds were mostly from public deposits with the maturity less than one year. This is considered a common structure of the commercial banks. Nevertheless, TBANK and its subsidiaries also issued bills of exchange and debentures in order to increase the saving alternatives for their customers.

The financial assets and liabilities as of December 31, 2011 classified by maturity date were as follow:

Table of the Financial Assets and Liabilities

Items

Financial assets Cash 16,006 - - - 16,006 Interbank and money market items 8,368 54,827 120 - 63,315 Derivatives - 1,536 - - 1,536 Investments 1 67,445 68,908 12,817 149,171 Loans 47,672 193,205 394,343 - 635,220 Receivables from clearing house - 25 - - 25 Receivables from purchase and sale securities and derivatives - 858 - - 858

Total financial assets 72,047 317,896 463,371 12,817 866,131

Financial liabilities Cash 176,616 249,835 9,589 - 436,040 Interbank and money market items 21,081 35,306 3,764 - 60,151 Liabilities payable on demand 2,131 - - - 2,131 Derivative liabilities - 2,886 - - 2,886 Borrowings 999 217,447 28,721 7,130 254,297 Payables to clearing house - 306 - - 306 Payables from purchase and sale securities and derivatives - 851 - - 851

Total financial liabilities 200,827 506,613 42,074 7,130 756,662

Off-balance sheet items Avals to bills and guarantees of loans 1 1,572 43 - 1,616 Obligation under unmatured import bills 624 481 - - 1,105 Letter of credits 86 2,540 - - 2,626 Other commitments 41,732 6,138 2,061 2 49,933

Total off-balance sheets 42,443 10,731 2,104 2 55,280

The maturity date of financial instruments

At call More than 1 year

Less than 1 year

Not specified Total

(Unit: THB Million)

Liabilities payable on demand Borrowings Payables to clearing house Payables from purchase and sale securities and derivatives


4. Operational Risk The operational risk is the risk that arises

from the damage that occurs from lack of good corporate governance within the organization. Risk may also arise from the inadequate efficiency of the internal audit and internal control systems which could be relating to internal operation process, personnel, systems or external events. This also includes legal risks such as litigations, exploitation by the government and also damage from settlements outside the courtroom. Such risks can pose adverse impact on other risks, especially strategic risk and reputation risk.

TBANK has established policies and

guidelines to ensure the prevention and monitoring of this type of risk. As the internal control system is an important tool in controlling and preventing potential risk that may occur, TBANK has implemented an efficient internal control system as follow:

• Regarding the organization of the Bank’s

structure, TBANK has specified the roles, the scope of duties and responsibilities for each position, based on a system of check and balance. The front office where all the transaction takes place is separated from the middle office, comprised of the Risk Control Department and the back office who record all items in the transactions.

• Establish the transaction-supporting units

which are independent and have expertise in their respective fields of work such as information technology unit, legal and appraisal unit in order to prevent any possible errors that may arise

• Putoperationalproceduresandregulations

related to all types of transaction, staff manuals as well as the authority ranks for approval in writings as a guideline to set the same standards for all internal operations within the organization

• EstablishtheAuditCommitteeandtheRisk

Management Committee to control, monitor and assess the risks of TBANK. The committees are responsible for examining and correcting the pitfalls in order to create soundness and efficiency in the Bank’s operation.

• Improve the management of the information

technology system and information security system in order to enhance its potential to accommodate business expansion and gain credibility from the customers in the

aspect of data and technology. A particular focus is given to the prevention of damages from unauthorized access to the Bank’s information.

• Formulate the Business Continuity Plan

which consists of an emergency plan, a plan for backup systems and a business recovery plan to prevent disruption in business operation. In addition, the drills are essential to test for the readiness and to consistently improve the plans for its effective implementation.

TBANK also employs the services of the third

party to operate some group activities as per the direction of the work operations of financial institutions at present and in the future. TBANK determines policies in order to manage the risk that may occur from outsourcing. These policies have to also be subject to regulations of BOT and must be beneficial to the internal control of the Bank as well.

In the measurement and assessment

of operational risk, TBANK determines a principle, form or condition of the process used in the measurement and assessment of risk in TBANK. In the determination of this process, TBANK considers the circumstantial factors such as supervising guidelines of the government units associated with the Bank, state and complexity of the business, the capability of the Bank in accepting risk, probability, likelihood or frequency as well as the impact or severity of risk that has happened or may happen. As per BOT specification for commercial bank to maintain the funds to risk-weighted assets in credit, market and operation according to Basel II guidelines, TBANK has employed the Basic Indicator Approach to calculate operational risks.

In addition, to monitor operational risk,

TBANK determined a policy for executives of each department to have the responsibility of monitoring the risk and consider a part of their regular duties. This will help promptly inform all of the risk and problems that occur and to respond to the changes in each time period in an appropriate and timely manner, not damaging to the Bank. Nevertheless, to inform of the result of business operations and problems that occur, as well as trends and chages in information of risk factors, TBANK organized a filing and reporting of the information associated with operational risk management such as information on data loss, key risk indicatiors and important risk points to be continually and regularly reported to the Board of Directors, the Risk Management Committee and the


executives to use in the determination of policies, to develop a sufficient risk management system and to be a tool in aiding TBANK to evaluate the capability and efficiency of the internal control system.

5. Strategic Risk

This type of risk arises from the inappropriate formulation of strategies, business planning and implementation which are not compatible with internal setups and external environment, resulting in an adverse impact on earnings, capital or the existence of TBANK and its subsidiaries. In managing the strategic risk, the formulation of strategies of TBANK will be considered over the three years ahead, with the review required annually or in the case of an external event that may impact the achievement of the Bank’s business goals. The Executive Committee is responsible for regular monitoring and evaluating the performance of the work units upon the established targets stated in the annual operation plan.

6. Regulatory Risk

The regulatory risk arises from amendments or changes in regulations, laws or requirements of the authorities especially the BOT. Changes in the authority’s policy may affect the strategies and business operations of TBANK and its subsidiaries.

In 2011, most changes in regulations and

requirements from the related authorities have concentrated on the improvement of measures to promote corporate governance of financial institutions, more efficient risk management and improved consumer protection. These measures therefore posed no significant impact on the strategies and business operation of the Bank. And throughout, TBANK has constantly improved and developed the internal operation system as well as customer service standard. This has also been an important mission for the Bank that the business operation has to also comply with authorities’ rules and regulations.

7. Risk from Capital Inadequacy

TBANK calculates its capital to cushion any possible risks, in accordance with Basel II criteria as follow:

• Credit risk bymeans of the Standardized

Approach • Marketrisktoexplorestatusofmarketrisk

by means of the Standardized Approach • Operational Risk by means of the Basic

Indicator Approach

In addition, TBANK has assessed its future capital adequacy based on budget and 3-year business plan. The risk calculated is capped with risk limit in which the Risk Management Division monthly reports the adequacy of capital to the Executive Committee and the Board of Directors to ensure that TBANK has sufficient capital after risk capital allocation to support sustainable business’ growth as planned.

As of December 31, 2011, TBANK’s total

capital registered at THB 91,093 million of which THB 61,638 million was Tier I capital and THB 29,455 million was for Tier II. The BIS ratio amounted to 13.72 percent which exceeded the BOT’s minimum requirement at 8.50 percent. This level of capital should be sufficient in accommodating any potential risks as well as the Bank’s future business expansion.


CORPORATE SOCIAL RESPONSIBILITY (CSR) ACTIVITIES

Corporate social responsibility

Thanachart Group is an organization that adheres to the principles of corporate social responsibility both in its conduct of business affairs and its participation in other social activities. The objectives are to create sustainability and the well-being of society and people living in communities as well as to protect the environment. In addition, our employees are encouraged to participate in CSR-related activities.

CSR-in-Process

This type of corporate social responsibility (CSR) focuses on conducting business affairs with responsibility towards society. In this connection, Thanachart Group has been embracing the principles of corporate social responsibility for a long time. We treat all our groups of stakeholders including shareholders, customers, consumers, and business counterparts in a fair and equitable manner. Recognizing the importance of good corporate governance, we also place strong emphasis on transparency in information disclosure. With the support of Chulalongkorn University’s Continuing Education Center, we regularly and continuously organize training activities for our staff on good corporate governance. In regard to our employees, we have promoted and fostered good relations with our staff by offering competitive remuneration, excellent welfare benefits, and a stimulating work environment. In addition, as part of our energy conservation policy, Thanachart Group encourages staff to participate in activities aimed at conserving electricity and other energy sources and using less paper, thus preserving the environment.

In 2011, many provinces of Thailand were severely hit by the floods. In response, Thanachart Group introduced

a number of measures aimed at helping both corporate and individual customers who were flood victims. These included a grace period of up to 90 days for hire purchase loans as well as extension of the repayment period for up to 12 months. As for home loans, borrowers could suspend repayment of principal amounts for up to 12 months. As well, a total of THB 5 billion was set aside for loans to small-and-medium-sized enterprises (SMEs) with the principal repayment period extended by up to one year. In regard to ATM and debit cards, fees for all cash withdrawals and transfers thru TBANK’s ATMs, including all inter-region withdrawals and transfers were waived. Moreover, the fees for inter-bank cash withdrawals as well as cash transfers between bank accounts with TBANK which were tied to the same card were also waived. As well, annual fees and fees for issuing replacement cards lost or damaged during the flood were waived for customers who were flood victims. Holders of Thanachart Drive Credit Cards and FLASH Cards could request a grace period, lower monthly repayments, or extension of their repayment period until the situation returned to normalcy.

CSR-after-Process

This type of corporate social responsibility (CSR) covers any activities other than those undertaken in the ordinary course of business. Thanachart Group has been involved in these types of activities for a long time. However, since the commercial banking services became one of Thanachart Group’s main businesses with an extensive branch network nationwide, the corporate social responsibility activities have been implemented in line with the policy established by the central organization. The activities have also been supported by the regional hubs concerned. In this connection, the CSR Committee is responsible for approving the programs and financial support for all activities. After the approval is granted, the Bank’s staff and members of Thanachart Group in each regional hub will start implementing the CSR activities together. Their customers and trading partners, as well as people living in communities, will also be encouraged to participate in the activities. As a guideline for the implementation of the activities, the organization has established a framework of social issues to be addressed. They can be divided into four main groups as follows:


1. Development activities for disadvantaged children and youth

2. Community health and hygiene 3. Conservation of culture and national identity 4. Assistance to people who are adversely affected

by natural disasters

Thanachart’s public concern– motorcycle helmets for kids

This project was initiated in 2007 by the regional hub based in Hat Yai. The main objective was to give motorcycle helmets to young students who rode motorcycles to their schools in Hat Yai District and Muang District in Songkhla Province. During the period from 2008 - 2010, the project’s coverage areas were extended to include Nakhon Sawan, Phitsanulok, Nakhon Pathom and Udon Thani Provinces. TBANK recognizes the importance of reducing the number of casualties caused by accidents in which small children are involved, principally when they sit at the rear of motorcycles without wearing helmets. But this will only happen when parents become more concerned with children safety and the standard helmets for young children become less expensive. There are far fewer manufacturers of motorcycle helmets for children than those producing helmets for adults. The project also helps inculcate into parents and children the importance of wearing safety helmets every time they ride motorcycles from home to school and vice versa. The project has been continuously implemented and has received very good responses from the parents and their children participating in the project. It is also in line with the Bank’s CSR policy aimed at creating a motorcycle safety culture which encourages children who sit at the rear of motorcycles to wear safety helmets. As well, it is in line with the Bank’s campaign aimed at promoting safe driving habits. The related activities help mitigate casualties caused by accidents in which the victims do not wear safety helmets.

On the occasion of His Majesty the King’s 84th

Birthday Anniversary in 2011, the Bank organized activities under the project entitled “Thanachart’s concern–motorcycle helmets for kids to wear, 84th birthday and 84 schools” in honor of His Majesty the King. As well, it launched a campaign aimed at promoting traffic knowledge and discipline as well as the culture of ensuring that both parents and children wear safety helmets every time they sit at the rear of motorcycles. As part of the activities, 20,000 helmets whose standards were certified by the Thai Industry Standards Institute (TISI) were given to students studying at 84 government and private schools nationwide

from the kindergarten level to Prathomsuka 3, which participated in the project. The activities have been implemented over the past five years, during which time, 28,800 safety helmets for children were given to various schools. The Bank will continue implementing its activities which include the delivery of safety helmets to children as well as the campaigns aimed at inculcating in adults the importance of the safety helmets.

Thanachart initiates and fulfils Thai identity project

The activities of the project place emphasis on promoting the country’s unique identity and beautiful culture by encouraging young people to read Thai out loud with correct pronunciation and to learn about good manners in Thai culture, which they can adopt in daily life. This is an extension of SCIB’s previous project entitled “Siam City Bank conserves Thai identity” which was continuously implemented for over 39 years. The project consists of two main activities including reading aloud contests and Thai manners contests. First rounds of the contests to select qualified candidates are organized in four regions including North, North East, South and Central (including Bangkok). Educational institutions are provided with an opportunity to send students from Prathomsuksa 1 to the university level as their representatives to participate in the contests to compete for H.R.H. Princess Maha Chakri Sirindhorn’s Cups, honourable shields and certificates of honour, as well as scholarships. In 2011, the Bank organized a contest to decorate a traditional Thai pedestalled tray (or Phan in Thai) which contained candles and joss sticks. The objective was for the young people to come up with creative ideas to decorate beautifully a set of Thai style altar tables. The project was supported by qualified experts from the Office of the Permanent Secretary of the Ministry of Culture, the Department of Cultural Promotion of the Ministry of Culture, the Office of the National Broadcasting and Telecommunication Commission (NBTC), the Royal Institute, the National Identity Office, and Phra Tumnuk Suankularb School, as well as experts on each region’s culture, who served as panel judges for the contests.

The project was first initiated in 1972 in the form of

a contest organized on “Thai Manners” under the auspices of Bangkok Metropolitan Bank. Later in 1980, the first “Reading Aloud Contest by Bangkok Metropolitan Bank” was organized. In 1995, it humbly requested that H.R.H. Princess Maha Chakri Sirindhorn graciously give royal cups to top winners of the two contests. In 2002, Bangkok Metropolitan Bank merged with SCIB and the name of the


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project was changed to “Siam City Bank conserves Thai identity”. Recently in 2011, SCIB merged with TBANK, the project then has been sustained with the name changed to “Thanachart initiates and fulfils Thai identity project”.

The intention to preserve Thai identity is the

inspiration behind the project. The activities of the project include reading Thai aloud and adopting Thai manners in daily life. The objective is for Thai people to preserve the unique values and prevent their disintegration over time as a result of western values which are influencing young people to move away from their culture. Moreover, the project also helps inculcate in Thai youths the love of Thai culture. This will make them cherish the culture and help sustain it for Thai society. Both the Thai language and Thai manners are internationally recognised as unique characteristics of Thai identity.

In 2011, over 3,000 students from 980 educational

institutions nationwide participated in the ‘Thanachart initiates and fulfills Thai Identity’ project. The students were divided into five groups according to their educational levels, including the first level of primary education (Pathomsuksa 1 - 3), second level of primary education (Pathomsuksa 4 - 6), lower secondary education (Mathayomsuksa 1 - 3), upper secondary education (Mathayomsuksa 4 - 6), and the university level. The contests were held during the period from July to September 2011.

Sapan Boon Project (Bridge-to-good deeds Project)

The Bank provides holders of TBANK ATM cards with the convenience of making merit via its ATMs. Customers can donate money to several charitable organizations via the TBANK’s ATMs free of charge. The Bank serves as a bridge for its customers to make donations to many organizations that dedicate themselves to solving problems in Thai society. In doing so, the Bank serves as a channel for raising funds to support charitable foundations and organizations. Moreover, the Bank supports the Foundation for Slum Child Care (FSCC) under the Royal Patronage of H.R.H. Princess Galyani Vadhana Krom Luang Naradhiwas Rajanagarindra. In 2011, it gave the Foundation THB 1,170,000 which was sourced from charity collection boxes placed in 680 branches of the Bank nationwide. The donations were made by customers and staff of Thanachart Group for paying living expenses, education and enhancing the quality of life of children so that in the future they will grow up to become responsible youths and good citizens of the country. The activities have been continuously supported by TBANK for over 10 years.

Pictures 1 - 2: Royal Kathin Robes Thanachart Group offered Royal Kathin robes to Wat Pa Pradu, Muang District, Rayong Province, and with member companies of Thanachart Group, their customers, trading partners, executives, and staff as well as members of the general public all jointly donated THB 7,977,422.27 in good faith to the temple as part of the funds to be used for constructing a new sermon hall. Picture 3: Financial Support to Slum Children TBANK gave THB 1,170,000 to the Foundation for Slum Child Care (FSCC) under the Royal Patronage of H.R.H. Princess Galyani Vadhana Krom Luang Naradhiwas Rajanagarindra. The money was sourced from charity collection boxes placed in 680 branches of the Bank nationwide. The donations were made by customers and staff of Thanachart Group. Picture 4: Thanachart joined hands to help flood victims in 2011 Member companies of Thanachart Group jointly gave 5,000 survival bags to the Royal Thai Navy based in Bangkok, for distribution to flood-hit people living in Wat Tuk Community, Wat Bote and Phra Nangklao Community, Nonthaburi Province, which were difficult to access. The money for buying the survival bags were donated by TBANK and member companies of Thanachart Group as well as their executives and staff.


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Project supporting Thai Red Cross Society

•Participation in the Annual Red Cross

Fair Both TBANK and SCIB always participated in the

Annual Red Cross Fair. In 2011, the 35th anniversary fair was held from 30 March to 7 April 2011 at Suan Amporn Park, under the theme entitled “On 84th Birthday Anniversary of Great King, follow His footsteps with Red Cross helping Thai people in honor of His Majesty the King”. The event was organized in celebration of the 84th Birthday Anniversary of His Majesty the King, the patron of the Thai Red Cross Society. On this occasion, the Bank humbly presented a donation of THB 5.2 million to benefit the Thai Red Cross Society as part of its participation in the Fair 2011 with Her Majesty Queen Sirikit as president of the Society.

The participation in the annual fair could be traced

back to the year 1976 when Bangkok Metropolitan Bank was invited to join the Red Cross Fair. It was the only participating commercial bank at the fair, using the name of ‘Bangkok Metropolitan Bank’s Booth’. Later in 2002 when Bangkok Metropolitan Bank merged with SCIB, SCIB participated in the fair, using the name of ‘SCIB’s Booth’. In 2011 when SCIB merged with TBANK, their name at the fair was changed to ‘Booth of TBANK and SCIB’. Today, it is

still the only commercial bank with a booth in the Annual Red Cross Fair at Suan Amporn Park. The net income gained from selling Red Cross lotteries as well as proceeds from the Bank’s participation in the fair were humbly presented to H.R.H. Princess Maha Chakri Sirindhorn, Executive Vice-President of the Thai Red Cross Society, annually for the benefit of the Thai Red Cross Society.

•Blood donation in honor of the Royal

Father This activity has been implemented by the

TBANK’s Khon Kaen Hub for seven consecutive years. The activity involves a campaign aimed at encouraging both members of the public and staff to donate blood in honor of His Majesty the King. Donating blood not only helps save the lives of victims of emergent accidents but also alleviate blood shortage during treatment. The activity has been well supported by the Faculty of Medicine, Khon Kaen Unviersity, who facilitates the blood donations. Moreover, the Bank also gives financial health check-up to those who participate in the activity. Tree seedlings are also distributed to the participants, as part of the fight global warming campaign. The objective is also to instill into people cooperation in preserving the environment. In 2011, 1,164 people donated 480,050 cc of blood to the Thai Red Cross Society.

The first blood donation event took place in 2004

Pictures 5 - 6: Thanachart’s concern – motorcycle helmets for kids, 84th birthday anniversary and 84 schools TBANK gave 20,000 helmets to student representatives from 84 schools that participated in the project named “Thanachart’s concern – motorcycle helmets for kids, 84th birthday anniversary and 84 schools”. The activity was part of the campaign aimed at promoting safe driving habits. Pictures 7 - 8: Thanachart initiated and fulfilled Thai identity project TBANK granted scholarships to the youths who won the reading aloud contests and Thai manners contests. Top winners were awarded H.R.H. Princess Maha Chakri Sirindhorn’s Cups under the “Thanachart initiates and fulfills Thai identity” project. First rounds of the contests to select qualified candidates were organized in four regions of the country. The objective was to encourage Thai youths to preserve their culture through the language and to learn about correct ways of behaving in line with Thai manners.


with Khon Kaen Hub serving as a prototype for the blood donation activity nationwide. This CSR activity has been organized twice annually on the occasions of the birthday anniversaries of His Majesty the King and Her Majesty Queen Sirikit respectively. Later, the coverage areas for the event were extended to include those covered by Ayutthaya Hub, Nakhon Si Thammarat Hub, Saraburi Hub, Udon Thani Hub, Thon Buri Hub and Rajchadapisek Hub. The intention to do good deeds in honor of His Majesty the King and Her Majesty Queen Sirikit is the inspiration behind the project. The objective is also to encourage executives, staff, customers as well as members of the general public to make merit together to help alleviate the plight of fellow human beings in the case of emergencies or blood shortages.

Groups of schools receiving con-tinuous support from TBANK

•Reuse Project entitled ‘Pi Chai Ngan Nong Chai Rien’ (Senior use them for work, junior use them for learning)

The activity is based on the idea that materials can be reused. The TBANK reused structural materials and all decorative materials (such as desks, tables, bookshelves, educational materials and light bulbs) at its booths at Money Expo 2011 to build a multipurpose facility and a library for Pak Dan Temple School in Sichon District, Nakhon Si Thammarat Province, which was adversely affected by southern floods. The Bank also provided the school with sports equipment and school supplies to give moral support for the children education and shape the better future for them.

Projects to support disaster victims

These CSR activities are continuously implemented every year and place emphasis on rehabilitating victims affected by natural disasters. In 2011, TBANK gave assistance to victims of natural disasters through its various activities as follows:

•Thanachart Group members joined

hands to help Tsunami victims in Japan The natural disasters that hit Japan hard in 2011

represented a great tragedy that inflicted the heaviest casualties and damage in the country for more than a century. Both TBANK and SCIB joined hands to help

victims of the earthquake and Tsunami in Japan by opening a bank account for customers nationwide to contribute to and making available collection boxes to accept donations from customers, staff and branches of the Bank. In this connection, a total of THB 2,840,913.38 was donated and delivered to the Ministry of Foreign Affairs to help Japanese disaster victims.

•Thanachart joined hands to help

disaster victims in the South The activities organized by Nakhon Si Thammarat

Hub were aimed at helping victims who were adversely affected by floods. Survival bags were given to the victims in Tambon Tonhong and the disaster evacuation centers in Amphur Nop Pi Tum, Soi Pratu Kao Community, Tambon Thepraj and Tambon Chalong, Amphur Sichon, Tambon Bang Rakam, Amphur Pakpanang, and the District Office of Amphur Pi Poon, Nakhon Si Thammarat Province. Surat Thanai Hub also gave survival bags and drinking water to flood victims in Surat Thanai Province. As well, Phuket Hub gave assistance to flood victims in Tambon Khao Pranom, Amphur Khao Pranom, Krabi Province.

•Thanachart joined hands to help flood

victims in 2011 Many provinces of Thailand including Bangkok

were severely hit by recent devastating floods. The disasters inflicted serious damage and caused a lot of people to suffer. As a result, the Bank and Thanachart Group organized activities aimed at helping the flood victims through a project named “Thanachart joins hands to help flood victims in 2011”. The activities included the following:

1. TBANK opened a bank account using the

name of “Thanachart joins hands to help flood victims in 2011”, to accept donations for flood victims. It used the donated money to pay for 5,000 survival bags containing consumer goods worth THB 1,020,410.25 in total. The Bank teamed up with the Royal Thai Navy in distributing the survival bags to flood victims in Wat Tuk Community, Wat Bote and Phra Nangklao Community, Nonthaburi Province. It also paid THB 973,905.83 for 5,000 medicine sets together with boxes of cooked food. It also paid THB 267,773.03 for 1,000 survival bags together with 1,000 dozen bottles of drinking water. The Bank teamed up with the Royal Thai Army in distributing them to flood victims in the areas of Bang Plat, Taling Chan, Bang Yai, Bangbuathong, Don Muang, and Rangsit.


2. Drinking water was distributed to flood

victims at the temporary evacuation center inside Thammasat University Rangsit Campus, Maha Chulalongkorn Ratchawithayalai evacuation center in Wang Noi District in Ayutthaya Province and the evacuation center at Valaya Alongkorn Rajabhat University under the Royal Patronage. Each center received 9,000 bottles of drinking water.

3. The Bank provided the Security Forces

Regiment (King’s Guards), the Security Forces Command, with financial assistance, an amount of THB 50,000 to buy cleaning supplies for flood victims.

4. The Bank provided Wat-Sing Kindergarten in

Chainat Province with 120 pairs of student desks and chairs. In an effort to rehabilitate the kindergarten, the Bank also helped repaint school fences and buildings to make them look beautiful again. The objective was to enhance the quality of educational life. Moreover, in collaboration with Thanachart Foundation for Thai Society, the Bank plans to give additional pairs of student desks and chairs in the first quarter of 2012 to about 20 schools which were hit by floods. A budget of about THB 6 - 7 million is being allocated for this purpose.

5. Thanachart Securities Public Company

Limited made a financial contribution worth THB 100,000 to buy survival bags for flood victims, through the project named “Thanachart joins hands to help flood victims in 2011”. The company also provided TBANK’s CSR working group with 999 medicine sets worth THB 49,950. The money was donated by executives, staff and customers of Thanachart Securities Public Company Limited. The medicine sets were distributed later to the flood victims.

6. Thanachart Life Assurance Company Limited

made a financial contribution worth THB 700,000 to buy survival bags for flood victims. The survival bags were distributed to the victims through the Royal Thai Navy and the Royal Thai Army. As well, some of the company’s executives and staff volunteered to visit the flood-hit areas to distribute the bags themselves. The purpose was to alleviate the plight of flood victims under the project named “Thanachart joins hands to help flood victims in 2011”.

7. Thanachart Insurance Company Limited

made a financial contribution worth THB 100,000 to buy survival bags for flood victims through the project named ‘Thanachart joins hands to help flood victims in 2011’.

Project for Buddhism

•Activity to maintain and support

Buddhism through the offering of ‘royal Kathin robes’

TBANK organizes annually the offering ceremony of Royal Kathin robes. In 2011, the Bank offered the Royal Kathin robes, graciously bestowed by His Majesty the King, to Wat Pa Pradu, Muang District, Rayong Province. In this connection, the Bank together with member companies of Thanachart Group, their customers, trading partners, executives, and staff as well as members of the general public jointly donated THB 7,977,422.27 in good faith to the temple as part of the funds to be used for constructing a new sermon hall.

The offering ceremony of Royal Kathin robes,

graciously bestowed by His Majesty the King, was first organized in 2006. The Royal Kathin robes were offered to Wat Keaw Gro Wa Ram Temple in Krabi Province. Since then, TBANK has been organizing the offering ceremony of Royal Kathin robes every year. The purpose of this CSR activity is to maintain and support Buddhism, royal temples, and sanctuaries so that they remain intact as long as the nation exists. In addition, the Bank grants scholarships to financially needy students with good grades and good behavior.


RESPONSIBILITIES OF THE BOARD OF DIRECTORS FOR FINANCIAL REPORT

TBANK’s Board of Directors is responsible for the separated and consolidated financial statements and for financial information presented in this annual report. The aforementioned financial statements were prepared in accordance with the generally accepted accounting principles, applying appropriate and consistent accounting policies and with careful judgments and best estimates. Important information is adequately and transparently disclosed to TBANK’s shareholders and other investors in the notes to financial statements.

TBANK’s Board of Directors has established and maintained appropriate and effective risk management and internal

control system in order to rationally assure that the accounting information is correctly and completely recorded and adequate to sustain TBANK’s assets, as well as to prevent any material irregular operations or frauds.

TBANK’s Board of Directors has appointed the Audit Committee comprising independent directors responsible for

revision of accounting policies and the quality of financial statements, internal control, internal audit and risk management system, as well as the disclosure of related party transactions. The committee’s comments on these issues were included in the Audit Committee Report in this annual report.

TBANK’s separated and consolidated financial statements were audited by the certified public accountant of Ernst &

Young Office Limited. TBANK’s Board of Directors had provided the auditing team all information and document supports in order that the auditor would be able to audit and address his/her opinion to the auditing standards. The auditor’s opinion was included in the Report of independent Auditor in this annual report.

TBANK’s Board of Directors is of the opinion that TBANK’s overall internal control is at a satisfying level and provides

reliability on TBANK’s separated and consolidated financial statements for the year ended December 31, 2011 which is in compliance with the generally accepted accounting principles and relevant rules and regulations.

(Mr. Somjate Moosirilert)Chief Executive Officer and President

(Mr. Banterng Tantivit)Chairman


REPORT OF THE AuDIT COmmITTEE

The Audit Committee of Thanachart Bank Public Company Limited consisted of three qualified and experienced independent directors. The composition was as follows;

1. mr. Kiettisak meecharoen Chairman of the Audit Committee 2. Assoc. Prof. Dr. Somjai Phagaphasvivathana member of the Audit Committee 3. mr. Sataporn Jinachitra member of the Audit Committee mrs. Vijitra Thumpothong, Executive Vice President, Audit, served as the secretary of the Audit Committee The Audit Committee was responsible for carrying out the duties as assigned by TBANK’s Board of Directors in line

with the regulations imposed by the Securities and Exchange Commission (SEC), notifications of the Stock Exchange of Thailand (SET) and Bank of Thailand (BOT) as stated in the charter stipulated by the Board of Directors.

In 2011, the Audit Committee convened 13 meetings in total with the management, top level executives of the

related business units and auditors; whereas 11 meetings were regular meetings and 2 meetings were extraordinary meetings to acknowledge and consider numerous matters as of the following:

• Financial Statements The Audit Committee reviewed the quarterly and year-end and consolidated financial statements of TBANK by

consulting with the external auditors and TBANK management in order to ensure the accounting standards, the accuracy of its significant matters, and the appropriate disclosure of information. In addition, the Audit Committee convened the meetings without the presence of TBANK management in order to ensure the independence of the auditors’ duties and comments.

• Internal Control and Internal Audit The Audit Committee reviewed the TBANK’s business to ensure an effective internal control and internal audit.

It provided consultation for the internal auditors in formulating the annual audit plan to ensure its sufficiency and appropriateness of the auditors’ independence, The audit plan was monitored and evaluated quarterly. The professionals were engaged to assess and analyze an appropriateness of the organization structure, work force and capability of the internal auditors in order to further develop the effectiveness and efficiency of audit system.


• Regulatory Compliance The Audit Committee reviewed the performance

of Compliance unit’s to as certain that the Bank’s businesses were conducted in compliance with related rules and regulations imposed by authorities such as the Bank of Thailand (BOT), Office of the Securities and Exchange Commission of Thailand (SEC), Stock Exchange of Thailand (SET), the Office of Insurance Commission (OIC) and Anti-money Laundering Office (AmLO). The Audit Committee also acknowledged changes of any rules or regulations that affected operation and ensured the adjustment of operation in response to those changes.

• Risk management The Audit Committee monitored and ensured

the adequacy of the Risk management framework, The Committee met with executives in order to acknowledge the Risk management report in various aspects to ensure an adequacy and effectiveness of TBANK’s risk management system.

• Audit Committee’s charter The Audit Committee considered and approved

the amendment in the Audit Committee’s Charter to make it up-to-date and more appropriate.

• Independent Auditor The Audit Committee considered and approved

the qualification, the independence, performance and remuneration of the auditor. In addition, it also advised on the appointment and suitable remuneration of auditors to the TANK’s Board of Directors.

• Connected Transactions or Conflict of Interests The Audit Committee reviewed connected

transactions and transactions where there might be conflict of interests based on rationale, transparency and appropriate disclosure of information before giving an opinion to the Board of Directors.

The Audit Committee views that the Bank has

disclosed financial reports and financial statements properly and in accordance with the accounting standards. The internal control, internal audit and risk management have been appropriate, effective, and in compliance with laws and regulations. Independent auditor was independent to perform duties. Connected transactions and conflict of interests have been disclosed appropriately.

(Mr. Kiettisak Meecharoen)Chairman of the Audit Committee


REPORT OF INDEPENDENT AuDITOR

To the Shareholders of Thanachart Bank Public Company Limited I have audited the accompanying consolidated statement of financial position of Thanachart Bank Public Company

Limited and its subsidiaries as at 31 December 2011, and the related consolidated statements of comprehensive income, changes in equity and cash flows for the year then ended, and have also audited the separate financial statements of Thanachart Bank Public Company Limited for the same period. These financial statements are the responsibility of the management of the Bank and its subsidiaries as to their correctness and the completeness of the presentation. my responsibility is to express an opinion on these financial statements based on my audit.

I conducted my audit in accordance with generally accepted auditing standards. Those standards require that I plan

and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audit provides a reasonable basis for my opinion.

In my opinion, the financial statements referred to above present fairly, in all material respects, the financial

position of Thanachart Bank Public Company Limited and its subsidiaries and of Thanachart Bank Public Company Limited as at 31 December 2011, and the results of their operations and cash flows for the year then ended in accordance with generally accepted accounting principles.

Without qualifying my opinion on the aforementioned financial statements, I draw attention to Note 4 to

the financial statements. During the current year, the Bank and its subsidiaries adopted a number of revised and new accounting standards as issued by the Federation of Accounting Professions, and applied them in the preparation and presentation of the financial statements.

The consolidated financial statements of Thanachart Bank Public Company Limited and its subsidiaries and the

separate financial statements of Thanachart Bank Public Company Limited as at 31 December 2010 and for the year then ended were audited in accordance with generally accepted auditing standards by another auditor of our firm who expressed an unqualified opinion on those statements, under her report dated 24 February 2011. However, the Bank has restated the consolidated financial statements regarding the allocation cost of business combination from the purchase of investment in a subsidiary company within the period for measurement allowed by the related accounting standard as described in Note 2.3 to the financial statements. I have audited the adjustment and believed that it is correctly and appropriately recorded.

Phuphun Charoensuk Certified Public Accountant (Thailand) No. 4950 Ernst & Young Office Limited Bangkok: 23 February 2012


STATemenTS of fInAnCIAL PoSITIon

Thanachart Bank Public Company Limited and its subsidiaries

Statements of financial position

As at 31 December 2011 and 2010

(Unit: Thousand Baht)

Note 2011 2010 2011 2010

(Restated)

Assets

Cash 16,005,678 15,298,105 16,004,051 3,733,489

Interbank and money market items - net 8 63,201,206 85,060,091 62,963,184 28,427,950

Derivatives assets 9 1,536,490 3,117,370 1,532,331 927,751

Investments - net 10 148,344,800 140,021,676 114,540,693 49,758,732

Investments in subsidiary

and associated companies - net 11 1,423,339 2,177,314 40,841,867 73,121,367

Loans to customers and accrued interest

receivables 12

Loans to customers 675,021,253 639,320,239 654,451,435 358,727,116

Accrued interest receivables 962,799 923,792 924,925 272,080

Total loans to customers and

accrued interest receivables 675,984,052 640,244,031 655,376,360 358,999,196

Less: Deferred revenue (39,801,128) (32,469,290) (37,738,871) (32,178,121)

Allowance for doubtful accounts 13 (25,897,903) (25,789,301) (12,485,712) (7,431,429)

Revaluation allowance for debt

restructuring 14 (381,719) (459,963) (381,719) (37,741)

Net loans to customers and

accrued interest receivables 609,903,302 581,525,477 604,770,058 319,351,905

Customers' liability under acceptances 90,531 72,156 90,531 -

Property foreclosed - net 16 6,761,904 7,850,667 3,653,106 639,782

Land, premises and equipment - net 17 8,758,841 8,986,185 8,365,341 1,690,163

Intangible assets - net 18 4,709,082 4,804,990 4,650,449 485,475

Goodwill 19 15,749,643 15,749,643 15,739,527 -

Receivables from purchase and sale of securities

and derivatives 858,326 2,870,279 64,929 1,732,965

Prepaid corporate income tax 1,019,680 6,730 1,011,958 -

Reinsurance assets 2,573,393 532,773 - -

Other assets - net 20 5,123,388 5,129,331 3,825,298 2,193,641

Total assets 886,059,603 873,202,787 878,053,323 482,063,220

The accompanying notes are an integral part of the financial statements.

Consolidated Separate

financial statements financial statements


STATemenTS of fInAnCIAL PoSITIon (ConTInUeD)


Statements of financial position (continued)

As at 31 December 2011 and 2010


Note 2011 2010 2011 2010

(Restated)

Liabilities and equity

Deposits 21 436,039,579 532,656,130 471,617,573 242,791,035

Interbank and money market items 22 60,150,845 40,544,594 59,282,708 29,705,720

Liability payable on demand 2,130,716 3,126,945 2,130,716 2,326,457

Derivatives liabilities 9 2,885,848 941,073 2,876,790 434,206

Debt issued and borrowings 23 254,296,521 174,948,957 257,503,221 132,092,201

Banks' liability under acceptances 90,531 72,156 90,531 -

Provisions 24 2,823,534 899,690 2,620,953 113,284

Payable from purchase and sale of securities

and derivatives 851,388 4,053,940 267,638 1,733,060

Insurance contract liabilities 25 36,154,060 29,773,671 - -

Other liabilities 26 15,103,017 13,792,197 10,778,836 6,130,602

Total liabilities 810,526,039 800,809,353 807,168,966 415,326,565

Equity

Share capital 27

Registered

5,934,619,272 ordinary shares of Baht 10 each 59,346,193 59,346,193 59,346,193 59,346,193

Issued and paid-up share capital

5,513,664,903 ordinary shares of Baht 10 each 55,136,649 55,136,649 55,136,649 55,136,649

Share premium 2,100,694 2,100,694 2,100,694 2,100,694

Other components of equity 28 612,902 1,147,783 211,106 169,512

Retained earnings

Appropriated - statutory reserve 29 989,326 655,945 989,326 655,945

Unappropriated 16,008,739 13,141,827 12,446,582 8,673,855

Equity attributable to owner of the company 74,848,310 72,182,898 70,884,357 66,736,655

Non-controlling interests of the subsidiaries 685,254 210,536 - -

Total equity 75,533,564 72,393,434 70,884,357 66,736,655

Total liabilities and equity 886,059,603 873,202,787 878,053,323 482,063,220

- - - -


Directors




STATemenTS of ComPReHenSIVe InCome


Statements of comprehensive income

For the years ended 31 December 2011 and 2010

(Unit: Thousand Baht except earnings per share expressed in Baht)

Note 2011 2010 2011 2010

Profit or loss

Interest income 32 44,213,744 34,781,263 29,547,478 21,397,458

Interest expenses 33 (19,797,303) (11,565,745) (14,958,709) (7,375,390)

Net interest income 24,416,441 23,215,518 14,588,769 14,022,068

Fees and service income 3,857,939 3,368,918 2,904,042 2,030,464

Fees and service expenses (499,958) (518,588) (144,272) (45,055)

Net fees and service income 34 3,357,981 2,850,330 2,759,770 1,985,409

Gains on trading and foreign

exchange transactions 35 890,895 569,670 563,565 144,001

Gains (loss) on investments 36 712,193 313,838 59,843 147,524

Share of profit from investments accounted

for under equity method 156,064 206,711 - -

Insurance/Life insurance income 12,853,319 11,186,879 - -

Dividend income 707,542 461,284 1,590,458 575,941

Brokerage fee from securities/derivatives 1,167,668 1,407,762 - -

Income on supporting service 44,708 55,984 1,062,319 278,092

Other operating income 1,430,155 1,239,248 1,135,592 868,822

Total operating income 45,736,966 41,507,224 21,760,316 18,021,857

Insurance expenses (10,725,745) (8,834,326) -

Net operating income 35,011,221 32,672,898 21,760,316 18,021,857

Other operating expenses

Employee's expenses 10,735,944 8,458,418 6,626,964 3,855,982

Directors’ remuneration 37 43,223 44,866 26,888 17,891

Premises and equipment expenses 3,474,246 3,148,053 1,833,460 1,531,862

Taxes and duties 898,439 618,432 406,770 181,826

Other expenses 6,725,454 4,553,979 4,776,988 3,142,638

Total other operating expenses 21,877,306 16,823,748 13,671,070 8,730,199

Impairment losses of loans

and debt securities 38 2,504,008 2,148,604 1,421,636 1,279,692

Profit before income tax 10,629,907 13,700,546 6,667,610 8,011,966

Income tax 39 (2,948,049) (4,548,121) - (2,293,437)

Profit for the year 7,681,858 9,152,425 6,667,610 5,718,529

Other comprehensive income 40

Gains (losses) on changes in value of

available-for-sale investments

Share of other comprehensive income (loss) (355,528) 688,370 41,594 (44,182)

of associates (180,370) 204,123 - -

Total other comprehensive income (loss) (535,898) 892,493 41,594 (44,182)

Total comprehensive income 7,145,960 10,044,918 6,709,204 5,674,347





STATemenTS of ComPReHenSIVe InCome (ConTInUeD)


Statements of comprehensive income (continued)


(Unit: Thousand Baht except earnings per share expressed in Baht)

Note 2011 2010 2011 2010

Profit attributable to:

The Bank 7,671,425 8,776,543 6,667,610 5,718,529

Non-controlling interests 10,433 375,882

7,681,858 9,152,425

Total comprehensive income attributable to:

The Bank 7,136,544 9,664,436 6,709,204 5,674,347

Non-controlling interests 9,416 380,482

7,145,960 10,044,918

Earnings per share of the Bank 41

Basic earnings per share

Profit attributable to the Bank (Baht per share) 1.39 1.92 1.21 1.25

Number of ordinary shares (shares) 5,513,664,903 4,562,521,270 5,513,664,903 4,562,521,270





STATemenTS of CASH fLoWS


Statements of cash flows



2011 2010 2011 2010

Cash flows from operating activities

Profit before income tax 10,629,907 13,700,546 6,667,610 8,011,966

Adjustments to reconcile profit before income tax

to net cash received (paid) from operating activities:

Share of profit from investments accounted

for under equity method (156,064) (206,711) - -

Depreciation and amortisation 1,715,216 1,309,796 768,191 573,110

Impairment losses of loans and debt securities 2,504,008 2,148,604 1,421,636 1,279,692

Increase (decrease) in provisions (346,472) 102,912 1,195,615 2,569

Amortisation of premiums (discounts) on investment in

debt securities 364,504 561,197 (69,123) 94,827

Gain from disposal of investments in

subsidiary companies (65,751) (24,224) - (21,625)

Gain from disposal of investment in an (22,276) - - -

associated company

Increase (decrease) in allowance for impairment

of investments (40,978) (20,549) 4,463 (18,037)

Increase in allowance for change in value

of investments 49,226 6,065 1,825 3,428

Increase (decrease) in allowance for impairment of

property foreclosed 443,562 (40,387) 29,079 13,762

Increase (decrease) in allowance for impairment of land,

premises and equipment 93,470 60 - (1,190)

Increase in allowance for impairment of

intangible asset 26,843 - 24,816 -

Interest income and other income from the assets

transferred for debt repayment (1,967) (16,618) (1,967) (16,618)

Loss (gain) on disposal of equipment (7,923) 4,033 (2,632) 4,353

Loss from written-off of other assets - 5,469 - -

Gain from written-off of other liabilities - (9,315) - -

Unrealised (gain) loss on exchange (1,536,625) 647,046 (1,536,625) (153,991)

Decrease in allowance for impairment

of other assets (270,482) (32,059) (2,011) (57,982)

Increase in other income receivable (156,200) (108,922) (75,977) (9,002)

Decrease in fees and rental received in advance (46,437) (42,592) (46,437) (42,592)

Decrease in deferred income (4,708) (5,703) (4,708) (5,699)

Increase (decrease) in accrued expenses 1,077,288 (142,045) 1,453,301 132,628

Amortisation of discounts on long-term borrowings 810 6,288 - 767

14,248,951 17,842,891 9,827,056 9,790,366

Net interest income (24,781,755) (23,783,003) (14,519,646) (14,117,662)

Dividend income (707,542) (461,284) (1,590,458) (575,941)

Cash received from interest income 40,114,752 31,108,643 27,553,999 19,673,174

Cash payment for interest expenses (11,936,018) (7,944,427) (8,303,265) (4,492,833)

Cash paid for corporate income tax (3,555,117) (4,331,947) (1,970,980) (2,432,349)

Income from operating activities before changes

in operating assets and liabilities 13,383,271 12,430,873 10,996,706 7,844,755





STATemenTS of CASH fLoWS (ConTInUeD)


Statements of cash flows (continued)



2011 2010 2011 2010

Decrease (increase) in operating assets

Interbank and money market items 23,183,890 42,647,210 33,785,015 35,579,111

Investments in trading securities (12,792,593) 3,010,869 (4,780,207) 688,682

Derivatives assets 2,094,487 (680,785) 300,643 869,688

Loans and receivables (22,441,973) (50,543,824) (52,904,541) (49,502,317)

Property foreclosed 3,963,047 4,493,962 3,403,850 4,064,796

Receivables from purchase and sale of securities

and derivatives 2,011,953 (1,602,244) 1,677,045 (1,423,075)

Reinsurance assets (2,040,620) (101,158) - -

Other assets (220,462) 1,686,656 2,693,151 (431,483)

Increase (decrease) in operating liabilities

Deposits (96,616,551) (41,943,638) (27,141,638) (23,936,288)

Interbank and money market items 9,892,160 (22,028,919) 18,330,999 7,526,302

Liability payable on demand (996,229) 120,125 (973,984) 214,645

Derivatives liabilities 652,276 245,789 661,248 (24,228)

Payable from purchase and sale of securities

and derivatives (3,202,552) 2,298,262 (1,465,422) 1,423,172

Liabilities under insurance/ life insurance 6,380,389 4,217,902 - -

Other liabilities (1,963,750) 745,696 (2,982,791) 456,684

Net cash flows used in operating activities (78,713,257) (45,003,224) (18,399,926) (16,649,556)

Cash flows from investing activities

Cash payment for the entire business transfer - - (39,253,886) -

Decrease (increase) in investments in securities held

for investment 4,964,042 19,603,730 (10,547,385) 9,631,746

Cash paid for acquire investment in subsidiaries (16,446) (59,291,064) (2,681,425) (68,835,299)

Cash received from disposal of investments

in subsidiary companies 366,304 212,756 - 212,766

Cash received from disposal of investment in an

associated company 113,750 - - -

Capital returned from a subsidiary - - 16,922,510 4,671

Cash received from interest on investments 4,533,638 4,301,842 1,984,309 1,803,609

Cash received from dividend 824,488 602,433 1,590,487 576,466

Cash paid for purchase of equipment (852,070) (579,042) 674,382 (262,296)

Cash received from disposal of equipment 39,767 17,713 4,106 7,940

Cash paid for dividend to non-controlling interests (42,588) (33,516) - -

Net cash flows from (used in) investing activities 9,930,885 (35,165,148) (31,306,902) (56,860,397)





STATemenTS of CASH fLoWS (ConTInUeD)


Statements of cash flows (continued)



2011 2010 2011 2010

Cash flows from financing activities

Cash received from issued additional share capital - 35,790,456 - 35,790,456

Cash received from borrowings 1,181,760,489 525,897,163 990,764,061 460,836,327

Cash paid for borrowings (1,103,304,035) (465,956,560) (920,720,557) (419,681,093)

Cash paid for interest from borrowings (6,758,720) (2,901,428) (5,860,648) (2,338,590)

Cash paid for dividend (2,205,466) (1,083,387) (2,205,466) (1,083,387)

Cash paid to non-controlling interests for capital refund (2,323) - - -

Net cash flows from financing activities 69,489,945 91,746,244 61,977,390 73,523,713

Net increase in cash 707,573 11,577,872 12,270,562 13,760

Cash at beginning of the year 15,298,105 3,720,233 3,733,489 3,719,729

Cash at end of the year 16,005,678 15,298,105 16,004,051 3,733,489

Supplemental cash flows information

Non-cash transactions

Transfer of properties foreclosed from receivables for

debt settlement 3,307,890 3,941,135 3,137,524 3,812,704

Accounts payable for purchase of fixed assets 159,024 139,067 112,184 33,884

Bad debt written-off 1,479,108 1,181,569 618,108 593,531




80 Annual R

eport 2011 Thanachart Bank Public C

ompany Lim

ited

STATemenTS of CHAnGeS In eQUITY


Statements of changes in equity




Other components of equity

Surplus from Share of

Issued and business Surplus on other comprehensive Retained earnings

fully paid-up combination under changes in value income (loss) Appropriated - Non-controlling

share capital Share premium common control of investments of associates statutory reserve Unappropriated interests Total

Balance as at 1 January 2010 19,346,193 2,100,694 (123,379) 264,125 119,144 370,019 5,734,597 60,691 27,872,084

Increase in share capital (Note 27) 35,790,456 - - - - - - - 35,790,456

Dividend paid (Note 31) - - - - - - (1,083,387) - (1,083,387)

Decrease in non - controlling interests -

of the subsidiaries - - - - - - - (230,637) (230,637)

Transfer of retained earnings to

statutory reserve (Note 29) - - - - - 285,926 (285,926) - -

Total comprehensive income for the year - - - 683,770 204,123 - 8,776,543 380,482 10,044,918

Balance as at 31 December 2010 55,136,649 2,100,694 (123,379) 947,895 323,267 655,945 13,141,827 210,536 72,393,434

Balance as at 1 January 2011 - 55,136,649 2,100,694 (123,379) 947,895 323,267 655,945 13,141,827 208,955 72,391,853

as previously reported

The allocation of cost of business combination

adjustment (Note 2.3) - - - - - - - 1,581 1,581

Balance as at 1 January 2011 - as restated 55,136,649 2,100,694 (123,379) 947,895 323,267 655,945 13,141,827 210,536 72,393,434

Cumulative effect of change in accounting policy

for employee benefits (Note 4) - - - - - - (2,265,666) (6,472) (2,272,138)

Dividend paid (Note 31) - - - - - - (2,205,466) - (2,205,466)

Increase in non - controlling interests

of the subsidiaries - - - - - - - 471,774 471,774

Transfer of retained earnings to

statutory reserve (Note 29) - - - - - 333,381 (333,381) - -

Total comprehensive income for the year - - - (354,511) (180,370) - 7,671,425 9,416 7,145,960

Balance as at 31 December 2011 55,136,649 2,100,694 (123,379) 593,384 142,897 989,326 16,008,739 685,254 75,533,564


Annual R


ompany Lim

ited 81

STATemenTS of CHAnGeS In eQUITY (ConTInUeD)


Statements of changes in equity (continued)



Separate financial statements

Other components

of equity

Issued and Surplus on changes Retained earnings

fully paid-up in value of Appropriated -

share capital Share premium investments statutory reserve Unappropriated Total

Balance as at 1 January 2010 19,346,193 2,100,694 213,694 370,019 4,324,639 26,355,239

Increase in share capital (Note 27) 35,790,456 - - - - 35,790,456

Dividend paid (Note 31) - - - - (1,083,387) (1,083,387)

Transfer of retained earnings to statutory reserve (Note 29) - - - 285,926 (285,926) -

Total comprehensive income for the year - - (44,182) - 5,718,529 5,674,347

Balance as at 31 December 2010 55,136,649 2,100,694 169,512 655,945 8,673,855 66,736,655

Balance as at 1 January 2011 55,136,649 2,100,694 169,512 655,945 8,673,855 66,736,655

Cumulative effect of change in accounting policy for

employee benefits (Note 4) - - - - (356,036) (356,036)

Dividend paid (Note 31) - - - - (2,205,466) (2,205,466)

Transfer of retained earnings to statutory reserve (Note 29) - - - 333,381 (333,381) -

Total comprehensive income for the year - - 41,594 - 6,667,610 6,709,204

Balance as at 31 December 2011 55,136,649 2,100,694 211,106 989,326 12,446,582 70,884,357



noTeS To ConSoLIDATeD fInAnCIAL STATemenTS

1

Thanachart Bank Public Company Limited and its subsidiaries Notes to consolidated financial statements For the years ended 31 December 2011 and 2010

1. General information

Thanachart Bank Public Company Limited (“Thanachart Bank” or “the Bank”) was

incorporated as a public limited company under Thai laws and its parent company is

Thanachart Capital Public Company Limited (herein after referred to as “the Parent

company”), a public limited company also existing under Thai laws. The Parent company

holds 50.96 percent of the Bank issued shares and Scotia Netherlands Holding BV, a

company registered in Netherland, holds 49.00 percent of the Bank issued shares. The

Bank’s registered address is 900, Tonson Tower, Ploenchit Road, Lumpini, Pathumwan,

Bangkok. The Bank has 676 operational branches (2010: 256 operational branches).

All subsidiaries are registered limited or public limited companies under Thai laws and

operate their businesses in Thailand. The subsidiaries businesses include commercial

bank, non-performing assets management business, securities business, leasing and hire

purchase business, non-life insurance business, life insurance business, fund

management business and others.

2. Thanachart Bank’s project to purchase Siam City Bank Plc.’s ordinary shares with the purpose of transferring Siam City Bank’s entire business to the Bank

2.1 The purchase of the ordinary shares of Siam City Bank Plc. from the Financial Institutions Development Fund

On 11 March 2010, Thanachart Bank entered into a share purchase agreement with the

Financial Institutions Development Fund (“FIDF”) to purchase 1,005,330,950 shares of

Siam City Bank Plc. (“SCIB”), or 47.58 percent of the total issued and paid-up share

capital, at a price of Baht 32.50 per share, or for total of Baht 32,673 million. On 9 April

2010, Thanachart Bank paid FIDF for SCIB’s shares, with the approval of the 2010 Annual

General Meeting of the Bank’s shareholders, and the Bank of Thailand (“BOT”). The BOT

also approved the Bank to hold the shares of SCIB in accordance with certain specified

conditions, i.e. SCIB is to continue operating as commercial bank but has to return its

banking license within 31 December 2011, the requirements on capital funds calculation,

the structure of the financial business group, and holdings in companies in the financial

business group.


2

The Share Purchase Agreement between Thanachart Bank as “the Purchaser” and the

FIDF as “the Seller”, dated 11 March 2010, states that the obligations, guarantees,

liabilities or indemnities of the Seller to SCIB under any arrangements, agreements or

documents in connection with the merger between SCIB and Bangkok Metropolitan Bank

Public Company Limited (“BMB”) (the “Seller’s Obligations”) including funds deposited in

accounts opened and maintained with SCIB to compensate for any losses or damages

suffered or incurred by SCIB arising out of or in connection with the merger between SCIB

and BMB will continue in full force and effect after completion of the sale and purchase of

SCIB’s shares. Rights and obligations of SCIB related to the Seller’s Obligation, including

funds deposited in the accounts opened and maintained with SCIB, will be transferred to

and/or assumed by Thanachart Bank, with effect from the completion date of the entire

business transfer from SCIB to Thanachart Bank. In addition, in case of the liquidation of

the Seller, the Seller’s Obligations will be transferred and/or assumed by another

government agency.

2.2 Additional tender offer for common shares of SCIB in 2010

During June 2010, Thanachart Bank made an additional tender offer to the minority

shareholders of SCIB, at the same price as it paid to purchase shares of SCIB at auction

from FIDF. Other shareholders sold 1,091,439,949 shares, or for a total of Baht 35,472

million, or 51.66 percent of the issued and paid-up shares of SCIB as a result of the tender

offer, and combined with its existing holding, Thanachart Bank shareholding in SCIB

reached 99.24 percent.

During November 2010, Thanachart Bank acquired 14,907,658 additional shares of SCIB

for a total of Baht 484 million, increasing its shareholding to 99.95 percent of the issued

and paid-up shares of SCIB. The Stock Exchange of Thailand announced the voluntary

delisting of SCIB’s shares on 13 December 2010.


3

2.3 Allocating the cost of business combination

Thanachart Bank acquired 47.58 percent of SCIB’s shares in April 2010 and on the same

day, management of Thanachart Bank were assigned as directors of SCIB in a number

that gave Thanachart Bank voting control over SCIB. Because Thanachart Bank had

control over SCIB through shareholding and management, it has treated SCIB’s shares as

investment in a subsidiary company since then. As a result of purchasing of additional

shares to increase its shareholding in SCIB to 99.24 percent in June 2010 and 99.95

percent in November 2010, the total cost of investment in SCIB was Baht 68,801 million in

the consolidated financial statements (including expenses in business combination and

after deducting intercompany transactions). On 9 April 2010, Thanachart Bank’s

management preliminarily estimated the fair value of each asset and liability of SCIB for

the purpose of allocating the cost of business combination and recognised the difference

between the cost of business combination and the fair value of assets, liabilities,

contingent liabilities and intangible assets in proportion to its shareholding as goodwill

from business combination in the consolidated financial statements.

However, after the purchase, Thanachart Bank adjusted the estimated fair value of the

assets and liabilities because of additional information that was received. This is in line

with the related financial reporting standard that allows the purchaser to adjust the fair

value for up to one year from the purchase date. The revised fair values of assets and

liabilities are as follows:

1. Assets and liabilities in SCIB and its subsidiaries’ accounts were valued and noted

that the fair value of assets and liabilities as at investment payment date were totaled

of Baht 48,635 million, which was Baht 4,264 million higher than book value.

2. Intangible assets are assets that will generate future economic benefits. Thanachart

Bank estimated the fair value of the intangible assets of SCIB at Baht 4,100 million,

comprised of (a) Core Deposit Intangibles which are evaluated using the incremental

cash-flows from low cost deposit, and considering the cost saving from current and

saving deposits; and (b) Customer Relationships which are valued on the base of

future revenues that will be earned from SCIB’s existing customers.

3. For liabilities specify at acquisition date and contingent liabilities, Thanachart Bank

estimated these and concluded that no additional contingent liabilities need to be

recognised.


4

Differences between the cost of business combination and the fair value of assets,

liabilities, contingent liabilities and intangible assets in proportion to the shareholding,

amounting to Baht 15,740 million, are recognised as goodwill from business combination

in the consolidated financial statements. The Bank has retrospectively adjusted the

comparative financial information in the previous year’s financial statements as if the

accounting records for business combination had completed since the acquisition date.

The fair value of the assets and liabilities of SCIB and its subsidiaries and the carrying value

of each significant account as at the date Thanachart Bank assumed control over SCIB are

as follow:

(Unit: Million Baht)

Fair value

Book value Previous balance Revised

Intangible assets 293 4,393 4,393

Other assets 435,702 437,016 439,966

Total liabilities 391,495 391,495 391,495

Non-controlling interests of the subsidiaries 129 129 129

Net assets value 44,371 49,785 52,735

Cost of business combination 68,801 68,801

Goodwill 18,688 15,740

In allocating the purchase price, Thanachart Bank did not recognise deferred tax liabilities of

Baht 2,466 million arising from the adjustment of assets to fair value (If the Bank

recognised deferred tax liabilities on the date of business combination, the balance of

such liabilities as at 31 December 2011 would be decreased to Baht 1,644 million,

calculated using the tax rates enacted at the year-end date), and did not recognise the

employee benefits of SCIB and its subsidiaries payable under labour law, amounting to

Baht 1,804 million, since the two relevant accounting standards are not yet effective for

the year of business combination.

Since the fair value adjustment of assets and liabilities mentioned above and the

recalculation of goodwill, Thanachart Bank has retrospectively adjusted the comparative

financial information in the previous year’s financial statements as if the Bank has

completely accounted for the business combination on the acquisition date, resulted in the

following revisions to the consolidated comparative financial statements as of 31

December 2010:


5


31 December 2010 31 December 2010

Before adjustment After adjustment

Net investment 137,959 140,022

Properties foreclosed 6,964 7,850

Intangible assets 4,805 4,805

Goodwill 18,698 15,750

Non - controlling interests of the subsidiaries 209 210

2.4 Key operation after the tender offer for SCIB’s shares in 2011

On 10 March 2011, BOT approved Thanachart Bank’s proposed plan for an entire

business transfer of SCIB’s business to the Bank. The significant conditions of such

approval are that SCIB must complete the entire business transfer and return the banking

licenses and banking authorisations to the Ministry of Finance within 31 December 2011,

and promptly proceed with the liquidation process, and that obligations between the Bank

and FIDF are to comply with the Share Purchase Agreement dated 11 March 2010.

On 7 April 2011, the 2011 Annual General Meeting of the Shareholders of SCIB and

Thanachart Bank passed resolutions approving the transfer of SCIB’s entire business to

Thanachart Bank, and the BOT has already approved this transaction. The Meetings also

delegated the related authorities to SCIB’s Board of Directors and Thanachart Bank’s

Board of Directors for further arrangement. On 30 June 2011, a meeting of the Bank’s

Board of Directors passed a resolution to perform the entire business transfer from SCIB

to the Bank on 1 October 2011 (EBT date).

On 30 September 2011, Thanachart Bank entered into the Entire Business Transfer

Agreement, legally effective on 1 October 2011, to transfer SCIB’s business to Thanachart

Bank. The transferred business consisted of the assets, liabilities and commitment of

SCIB as of 1 October 2011 and/or contingent liabilities that may arise in the future, with

the parties agreeing a transfer price of Baht 50,134 million. The transfer price was set in

accordance with the guidelines for setting transfer prices of financial assets among

companies in the Thanachart group, and an independent financial advisor opined that it

was fair value. SCIB recognised gain on the entire business transfer of Baht 5,299 million

which has been eliminated in the consolidated financial statements.


6

Significant guidelines of the transfer price of assets and liabilities are as follows:

- Loans: The transfer values were based on the outstanding loan balances net of

related allowance for doubtful accounts.

- Investments: The fair values of marketable securities were based on the latest bid

price, the fair value of debt securities were determined using the yield rate quoted by

the Thai Bond Market Association, and the fair values of other investments were

determined from expected future cash flows, expected dividend to be received or net

book value.

- Property foreclosed: The fair values were based on the values appraised by

independent appraisers in accordance with BOT guidelines, after deduction of a

discount determined on the basis of past selling experience.

- Deposit/debt issued and borrowings: Almost of deposits and short-term borrowings

have floating interest rate and therefore the fair value is deemed to be closed to the

book value. Long-term deposits and borrowings have interest yields that approximate

market interest rate, and therefore fair value is deem to be closed to the book value.

- Other assets/liabilities: The fair value approximates the book value.

- Off-balance items and commitments under various exchange contracts are

transferred at book value.

Significant assets and liabilities at the transfer date are as follow:


Interbank and money market items - net 67,649

Net investment 47,852

Loans to customer and accrued interest receivables - net 236,689

Property foreclosed 3,303

Land, premises and equipment 7,830

Other assets 17,754

Deposits 255,968

Debt issued and borrowings 58,366

Other liabilities 16,609

Entire business transfer price - net 50,134


7

Effective 1 October 2011, SCIB discontinued its operations. On 1 November 2011, the

Board of Directors of SCIB passed a resolution to pay an interim dividend at Baht 7.50 per

shares to its shareholders, totaling Baht 15,846 million. In November 2011, Thanachart

Bank purchased additional shares of SCIB from the minority shareholders, to give those

minority shareholders a chance to sell their shares before SCIB’ dissolution. Minority

shareholders sold a total of 696,865 shares, at Baht 16 million, Thanachart Bank therefore

holds 2,112,375,422 shares, or 99.98% of the total shares in issue.

On 6 December 2011, the Extraordinary Meeting of SCIB’s shareholders approved the

change of Siam City Bank’s name to “SCIB Plc.”. On 8 December 2011, SCIB returned its

banking license and banking authorisations to the Ministry of Finance, and registered the

change in its company’s name as “SCIB Plc.”. SCIB registered the company’s dissolution

on 9 December 2011.

2.5 Transfer business of subsidiaries in the group

Siam City Securities Co., Ltd.

On 28 October 2010, the Boards of Directors of Thanachart Bank and SCIB passed

resolutions to approve a plan for a business combination between Thanachart Securities

Plc. (“Thanachart Securities”) and Siam City Securities Co., Ltd. (“SCIB Securities”), which

is a subsidiary in the Group, by means of a partial business transfer of the assets of SCIB

Securities to Thanachart Securities. The price of the transfer was to be not less than the

book value, with reference to the latest adjusted book value before the transaction date. In

November 2010, an extraordinary meeting of SCIB Securities’ shareholders approved the

partial business transfer. On 30 December 2010, SCIB Securities entered into agreements

to transfer assets relating to the securities business and obligations relating to the

investment banking business, amounting to Baht 11 million, effective from 31 December

2010, while transfers of claims under agreements appointing an agent and/or broker for

securities trading, including securities business receivables and payables with a net

balance of Baht 206 million, and cash collateral for settlements amounting to Baht 216

million, were effective on 1 January 2011. SCIB Securities also transferred certain

employees to Thanachart Securities on the same day.

SCIB Securities temporary discontinue of its operations since 1 January 2011. The Annual

General Meeting of the shareholders of SCIB Securities, held on 27 April 2011, approved

the reduction of the registered and paid-up share capital of SCIB Securities from Baht

2,000 million to Baht 900 million. SCIB Securities registered the shares reduction on 7

June 2011.

Annual Report 2011 Thanachart Bank Public Company Limited 89 8

In August 2011, SCIB disposed investment in common shares of SCIB Securities at a

price of Baht 168 million and recognised gains on the disposal of Baht 40 million in the

consolidated financial statements of Thanachart Bank. This disposal was in accord with

the approval by the Board of Directors of SCIB on 23 June 2011.

Siam City Asset Management Co., Ltd.

On 27 January 2011, the Board of Directors of SCIB passed a resolution to approve an

offer to purchase and/or to sell shares of Siam City Asset Management Co., Ltd. to

Government Pension Fund, a former shareholder. During May 2011, SCIB disposed all of

its shares to the purchaser at a price of Baht 198 million and recognised gain on the

disposal of Baht 26 million in the consolidated financial statements of Thanachart Bank.

Siam City Bank Plc./ TS Asset Management Co., Ltd.

During the year 2011, SCIB and TS Asset Management Co., Ltd. (“TS”) (The new

company, which was licensed by the Bank of Thailand, set up to receive the transfer of

SCIB’s non-performing assets including non-performing loans and property foreclosed, for

further management) entered into an agreement to transfer rights in loan receivables and

property foreclosed from SCIB to TS as follows:

Fair value

(Million Baht)

- Non-performing loans 9,062

- Property foreclosed 3,083

The transfer of such financial assets was treated as a true sale in both financial

statements of the transferee and the transferor since the transferor surrendered control

over the assets. The selling prices were mutually agreed among companies in Thanachart

Group with reference to what in the opinions of a financial advisor were fair values.

Compensation for this transfer will be considered the fair value when recognising the

selling price and the values of the transferred assets, which are as follows:

- For non-performing loans, the fair values are referred to the outstanding loan balance

net of related allowance for doubtful accounts.

- For property foreclosed, the fair values are referred to the value appraised by

independent appraisers in accordance with the BOT guidelines, after deduction by an

amount determined on the basis of past selling experience.

90 Annual Report 2011 Thanachart Bank Public Company Limited 9

Under the conditions of the agreement, the transferee is entitled to claim compensation if

conditions specified in the agreement are breached within the specified period. However,

gains (losses) from transfers of assets and the intercompany balances are eliminated

when preparing the consolidated financial statements of Thanachart Bank because the

transfers are intercompany transactions.

Siam City Insurance Co., Ltd.

On 27 July 2011, the Board of Directors of SCIB passed a resolution approving the

disposal of investment in common shares of Siam City Insurance Co., Ltd. to other party.

SCIB subsequently sold all the shares to purchasers on 19 August 2011 at a total price of

Baht 113.75 million.

3. Basis of preparation of the financial statements

3.1 Basis of preparation of the financial statements

The financial statements have been prepared in accordance with accounting standard

enunciated under the Accounting Professions Act B.E. 2547 with reference to accounting

practice of “Transferring/Transferred of financial assets” and the principles stipulated by

the Bank of Thailand (“BOT”). The presentation of the financial statements has been made

in compliance with the BOT’s Notification relating to the preparation and format of the

financial statements of commercial banks and holding company of financial business

groups, dated 3 December 2010. Hence, the Bank reclassified certain items of the

comparative financial statements.

The financial statements in Thai language are the official financial statements of the Bank.

The financial statements in English language have been translated from the Thai language

financial statements.

The financial statements have been prepared on a historical cost basis except where

otherwise disclosed in the accounting policies.


10

3.2 Basis of preparation of the consolidated financial statements

a) The consolidated financial statements included the financial statements of the Bank

and the following subsidiary companies (“the subsidiaries”).

Percentage of holding Percentage of holding

by the Bank by the subsidiaries

2011 2010 2011 2010

Subsidiaries directly held by the Bank

SCIB Plc.

(Formerly known as “Siam City Bank Plc.”)

99.98 99.95 - -

Thanachart Securities Plc. 100.00 100.00 - -

Thanachart Insurance Co., Ltd. 100.00 100.00 - -

Thanachart Life Assurance Co., Ltd. 100.00 100.00 - -

Thanachart Fund Management Co., Ltd. 75.00 75.00 - -

Thanachart Broker Co., Ltd. 100.00 100.00 - -

Thanachart Group Leasing Co., Ltd. 100.00 100.00 - -

Thanachart Management and Services Co., Ltd. 100.00 100.00 - -

Thanachart Legal and Appraisal Co., Ltd. 100.00 100.00 - -

Thanachart Training and Development Co., Ltd. 100.00 100.00 - -

TS Asset Management Co., Ltd. 100.00 - - -

Ratchthani Leasing Plc. 65.18 - - -

Subsidiaries indirectly held by the Bank

National Leasing Co., Ltd. 100.00 - 100.00 100.00

Siam City Securities Co., Ltd. - - - 99.79

Siam City Life Assurance Co., Ltd. 100.00 - 100.00 100.00

Siam City Asset Management Co., Ltd. - - - 60.00

SCIB Service Co., Ltd. 100.00 - 100.00 100.00


11

b) Total assets and total income of the subsidiaries that have significant impact to and

are included in the consolidated financial statements as at 31 December 2011 and

2010 and for the years then ended, after eliminating significant intercompany

transactions, are as follows:


Total income

Total assets for the year

2011 2010 2011 2010

SCIB Plc. - 406,974 9,044 9,945

Thanachart Life Assurance Co., Ltd. 20,402 19,917 1,964 1,471

Siam City Life Assurance Co., Ltd. 11,195 11,008 (89) 482

Thanachart Insurance Co., Ltd. 7,176 5,189 1,975 1,523

Thanachart Securities Plc. 3,877 3,958 1,377 1,357

TS Asset Management Co., Ltd. 11,361 - 296 -

Ratchthani Leasing Plc. 12,033 - 175 -

c) The Bank has additionally invested in TS Asset Management Co., Ltd. which was

newly set up during March 2011, and holds 100 percent.

d) In October 2011, the Bank received the investments in 437,250,000 ordinary shares

of Ratchthani Leasing Plc. from SCIB for Baht 536 million, in accordance with the

terms of the entire business transfer agreement. As a result, the Bank’s interest in

Ratchthani was 48.35 percent. On 1 November 2011, the Bank also purchased

437,486,500 additional shares at Baht 1.52 per share, or for a total of Baht 665

million, resulting in the Bank’s shareholding increasing to 65.18 percent of the total

shares in issued. The investment was therefore treated as investment in subsidiary.

Such purchase of additional ordinary shares is deemed to be a step acquisition.

Under the Financial Reporting Standard, the Bank had to assess the value of the

investment at equity held on the date before the business combination, using the fair

value at the purchase date, and the Bank realised the gain of Baht 33 million in profit

or loss in the statements of comprehensive income.


12

Amount

(Million Baht)

Fair value of investment at equity as at the purchase date before business

combination 556

Less: Investment value at equity before business combination (523)

Gain on revaluation of investment recognised in profit or loss 33

In addition, under the business combination, the Bank has to estimate the fair value

of each asset and liability for the purpose of allocating the cost of business

combination. The fair value of the assets and liabilities of Ratchthani Plc. (“THANI”)

and the carrying value of each significant account as at the date the Bank obtained

control over THANI is as follow:


Book value Fair value

Loans 11,842 11,576

Land, premises and equipment 45 62

Other assets 1,502 1,512

Total liabilities 11,278 11,278

Net assets value 2,111 1,872

Cost of business combination 1,221

In allocating the purchase price, the cost of business combination does not differ

from the net adjusted book value of the assets and liabilities at the purchase date, at

the purchase portion, and thus no goodwill arose from this business combination. In

addition, the Bank did not recognise deferred tax assets of Baht 72 million arising

from the adjustment of assets to fair value since this accounting standard is not yet

effective in the year of business combination. However, if the Bank had applied such

standard on that date, deferred tax assets as at 31 December 2011 would be

decreased to Baht 48 million (effect from the tax rates enacted at the year-end date).

Therefore, the consolidated financial statements of the Bank included the statement

of financial position of Ratchthani Leasing Plc. as at 31 December 2011, and the

consolidated statements of comprehensive income included income and expenses

from such company from 1 November 2011 (the date that Thanachart Bank assumed

control) to 31 December 2011. The Bank recognised net loss from THANI totaling

Baht 27 million from the date that the Bank assumed control based on its

shareholding interest.


13

For additional information to facilitate evaluation of the financial impact of the business combination, proforma consolidated total income and profit of the Bank and its subsidiaries for the year are presented below, inclusive of income and profit of Ratchthani Leasing Plc. as if business combination had occurred since the beginning of the year.


For the year ended

31 December 2011

Total income as if business combination occurred on 1 January 2011 66,947

Profit attributable to the Bank as if business combination occurred on

1 January 2011 (exclude elimination transactions before the purchase date) 7,700

e) The consolidated statements of comprehensive income for the year ended 31 December 2010 include the operating results of SCIB and the subsidiaries held by SCIB from 9 April 2010 to 31 December 2010 because the Bank purchased the ordinary shares of SCIB and assumed control over SCIB in April 2010.

f) In May 2011, SCIB disposed of investments in common shares of Siam City Asset Management Co., Ltd. to former shareholders for Baht 198 million. The gain on disposal of Baht 26 million was recognised in the consolidated financial statements. In addition in August 2011, SCIB disposed of investments in common shares of SCIB Securities Co., Ltd. for Baht 168 million, with gain on disposal of Baht 40 million recognised in the consolidated financial statements.

g) The consolidated statements of comprehensive income for the year ended 31 December 2010 included the operating results of T Leasing Co., Ltd. from 1 January 2010 until 30 April 2010, the date of disposal of the investment, and the gain on such disposal of Baht 24 million was recognsied in the consolidated financial statements.

h) All subsidiaries are fully consolidated as from the acquisition, being the date on which the Bank obtains control, and continue to be consolidated until the date when such control ceases. However, the consolidated statement of financial position as at 31 December 2010 and the consolidated statements of comprehensive income for the years ended 31 December 2011 and 2010 did not include the financial position and operating results of a subsidiary company, Chada Thong Properties Co., Ltd., in which the Bank has indirectly held by SCIB at 70 percent, because that subsidiary has ceased its operations and is in the process of being liquidated. SCIB has already made a full allowance for impairment in the value of its investment in that subsidiary. However, during the third quarter of 2011, SCIB sold out all of its investment.


14

i) The financial statements of the subsidiaries are prepared for the same reporting

period as the Bank, using the same significant accounting policies. In case where

there are different accounting policies the Bank has adjusted the effect of these in

the consolidated financial statements.

j) The outstanding balances and significant intercompany transactions between the

Bank and its subsidiaries have been eliminated from the consolidated financial

statements. The investments in subsidiaries as recorded in the Bank’s and

subsidiaries’ books of accounts have been eliminated against equity of the

subsidiaries.

k) Non-controlling interests represent the portion of profit or loss and net assets of the

subsidiaries that are not held by the Bank and are presented separately in the

consolidated statement of comprehensive income and within equity in the

consolidated statement of financial position.

3.3 The separate financial statements, which present investments in subsidiary and associated

companies under the cost method, have been prepared solely for the benefit of the public.

4. Adoption of new accounting standards during the year

During the current year, the Bank and its subsidiaries adopted a number of revised and

new accounting standards, issued by the Federation of Accounting Professions, as listed

below.

Accounting standards:

TAS 1 (revised 2009) Presentation of Financial Statements

TAS 2 (revised 2009) Inventories

TAS 7 (revised 2009) Statement of Cash Flows

TAS 8 (revised 2009) Accounting Policies, Changes in Accounting Estimates and

Errors

TAS 10 (revised 2009) Events after the Reporting Period

TAS 11 (revised 2009) Construction Contracts

TAS 16 (revised 2009) Property, Plant and Equipment

TAS 17 (revised 2009) Leases

TAS 18 (revised 2009) Revenue

TAS 19 Employee Benefits

TAS 23 (revised 2009) Borrowing Costs

TAS 24 (revised 2009) Related Party Disclosures

TAS 26 Accounting and Reporting by Retirement Benefit Plans


15

TAS 27 (revised 2009) Consolidated and Separate Financial Statements

TAS 28 (revised 2009) Investments in Associates

TAS 29 Financial Reporting in Hyperinflationary Economies

TAS 31 (revised 2009) Interests in Joint Ventures

TAS 33 (revised 2009) Earnings per Share

TAS 34 (revised 2009) Interim Financial Reporting

TAS 36 (revised 2009) Impairment of Assets

TAS 37 (revised 2009) Provisions, Contingent Liabilities and Contingent Assets

TAS 38 (revised 2009) Intangible Assets

TAS 40 (revised 2009) Investment Property

Financial reporting standards:

TFRS 2 Share-Based Payment

TFRS 3 (revised 2009) Business Combinations

TFRS 5 (revised 2009) Non-current Assets Held for Sale and Discontinued Operations

TFRS 6 Exploration for and Evaluation of Mineral Resources

Financial Reporting Standard Interpretations:

TFRIC 15 Agreements for the Construction of Real Estate

Accounting Standard Interpretations:

SIC 31 Revenue-Barter Transactions Involving Advertising Services

These accounting standards do not have any significant impact on the financial

statements for the current year, except for TAS 19 “Employee Benefits”.

TAS 19 Employee Benefits

This accounting standard requires employee benefits to be recognised as expense in the

period in which the service is performed by the employee. In particular, an entity has to

evaluate and make a provision for post-employment benefits using actuarial techniques.

The Bank and its subsidiaries previously accounted for such employee benefits when they

were incurred.


16

The Bank and its subsidiaries have changed this accounting policy in the current year and

recognise the liability in the transition period through an adjustment to the beginning

balance of retained earnings in the current year. The change has the effect of decreasing

the beginning balance of retained earnings of the Bank and its subsidiaries by Baht 2,266

million (Separate financial statements: decreasing retained earnings by Baht 356 million).

The cumulative effect of the changes in accounting policy has been presented in

“Cumulative effect of change in accounting policy for employee benefits” in the statements

of changes in equity.

In addition, the change has the effect of decreasing the profit of the Bank and its

subsidiaries for the year ended 31 December 2011 by Baht 184 million, or Baht 0.033 per

share (Separate financial statements: decreasing profit by Baht 50 million or Baht 0.009

per share).

5. New accounting standards issued during the year not yet effective

The Federation of Accounting Professions issued the following new/revised accounting

standards that are effective for fiscal years beginning on or after 1 January 2013.

Accounting standards:

TAS 12 Income Taxes

TAS 20 (revised 2009) Accounting for Government Grants and Disclosure of

Government Assistance

TAS 21 (revised 2009) The Effects of Changes in Foreign Exchange Rates

Accounting Standard Interpretations:

SIC 10 Government Assistance - No Specific Relation to Operating

Activities

SIC 21 Income Taxes - Recovery of Revalued Non-Depreciable Assets

SIC 25 Income Taxes - Changes in the Tax Status of an Entity or its

Shareholders

The Bank and its subsidiaries’ management believe that these accounting standards will

not have any significant impact on the financial statements for the year when they are

initially applied, except for TAS 12 “Income Taxes”.


17

TAS 12 Income Taxes

This accounting standard requires an entity to identify temporary differences, which are

differences between the carrying amount of an asset and liability in the accounting records

and its tax base, and to recognise deferred tax assets and liabilities under the stipulated

guidelines.

At present, the management of the Bank and its subsidiaries is evaluating the impact on

the financial statements in the year when this standard is adopted.

6. Significant accounting policies

6.1 Revenue recognition

a) Interest and discounts on loans

Interest on loan is recognised as income on an accrual basis, based on the amount

of principal outstanding. Interest on hire purchase and financial lease is recognised

on the effective interest rate.

For loans on which principal or interest payments have been defaulted for more than

three months past the due date, the Bank and its subsidiaries cease accrual of

interest income, and accrued interest already recorded is reversed from the Bank

and its subsidiaries’ accounts. Interest is then recognised as income on a cash basis

until settlement of such overdue balance has been received from the debtors.

Interest income on restructured loans is recognised as income on an accrual basis,

with reference to the interest rate stipulated in the agreements, with the exception of

interest on loans that are subject to monitoring for compliance with restructuring

conditions, which the Bank and its subsidiaries recognise as income on a cash basis

until the receivable is able to comply with the restructuring conditions for a period of

no less than three months or three installments, whichever is longer.

The Bank and its subsidiaries recognise interest income on investments in

purchased/transferred loans for which loan repayment is received during the year

based on the effective yield rate of the portfolio by the new book value (acquisition

cost) of the outstanding balances of receivables. After the restructuring, interest

income is recognised by the effective interest rate method for those receivables from

which loan repayment was received during the year.


18

Interest or discounts already included in the face value of notes receivable or loans

are recorded as deferred interest and taken up as income evenly throughout the

term of the notes or loans or in proportion of debt repayment.

Interest income received in advance on hire purchase represents discounted on

interest given to debtors by dealers, is recognised based on the effective interest

method, in the same manner as interest income on hire purchase receivables.

b) Interest and dividends on investments

Interest on investments is recognised as income on an accrual basis based on the

effective interest rate. Dividends are recognised as income when the right to receive

the dividends is established.

c) Brokerage fee income

Brokerage fees on trading of securities and derivatives are recognised as income on

the transaction date.

d) Interest on margin loans for purchase of securities

Interest on margin loans for purchases of securities is recognised as income over the

term of the loans based on the amount of principal outstanding. The subsidiary

companies cease accruing interest for certain loans that fall under the conditions set

by the Securities and Exchange Commission (“SEC”).

e) Gains (losses) on investments and derivatives

Gains (losses) on investments and derivatives are recognised as income/ expenses

on the transaction date.

f) Fees and service income

Fees and service income are recognised as income on an accrual basis.


19

g) Insurance/life insurance premium income

Non-life insurance business

Insurance premium income on insurance policies is recognised on the date the insurance policy comes into effect, after deducting premium ceded and refunded for insurance policies with coverage periods of up to 1 year. For long-term insurance policies with coverage periods of longer than 1 year, related revenues and expenses are recorded as unearned and prepaid items, and amortised to income and expenses over the coverage period.

Insurance premium income is recognised after deducting unearned premium reserve.

Reinsurance premium income is recognised when the reinsurer places the reinsurance application or statement of accounts.

Life insurance business

Premium income is recognised as income on the date the insurance policy comes into effect, after deducting premium ceded and refunded. For renewal policy, premium income is recognised as income when the premium is dued, only if the policy is still in force at the year-end date.

6.2 Expenses recognition

a) Interest expenses

Interest expenses are charged to expenses on an accrual basis. Interest on notes payable included in the face value is recorded as deferred interest and amortised to expenses evenly throughout the term of the notes.

b) Commission and expenses charged on hire purchase/financial leases

For hire purchase/financial lease contracts originating on or after 1 January 2007, initial direct expenses at the inception of a hire purchase/financial lease contract (i.e. commission expenses and stamp duty expenses) are to be deferred and amortised using the effective interest method, with amortisation deducted from interest income throughout the contract period, in order to reflect the effective rate of return on the contracts.

Unearned income on hire purchase/financial leases is presented net of commission expenses and initial direct cost on the inception of the contracts.

c) Fees and service expenses

Fees and service expenses are recognised as expenses on an accrual basis.


20

6.3 Investments

Investments in securities held for trading are stated at fair value. Changes in the fair value

of the securities are recorded in profit or loss in the statements of comprehensive income.

Investments in available-for-sale securities are stated at fair value. Changes in the fair

value of these securities are recorded in other comprehensive income in the statements of

comprehensive income, and will be recognised in profit or loss when the securities are

sold.

Investments in held-to-maturity debt securities are recorded at amortised cost.

Premiums/discounts on debt securities are amortised/accreted by the effective rate

method with the amortised/accreted amount presented as an adjustment to the interest

income.

Investments in non-marketable equity securities, which are classified as other

investments, are stated at cost net of allowance for impairment (if any).

The Bank and its subsidiaries do not treat investments in mutual funds, in which they hold

not less than 20 percent of the units issued, as investments in subsidiary or associated

companies because the Bank and its subsidiaries do not have control or influence over the

financial and operating policies of these funds, which are independently managed by the

fund manager in accordance with the details of each fund project and are under the

supervision of the Securities and Exchange Commission.

The fair value of marketable securities is based on the latest bid price of the last working

day of the year. The fair value of debt securities is determined using the yield rates quoted

by the Thai Bond Market Association, other markets, or yield rate of government bond

adjusted by an appropriate risk factor. The fair value of unit trusts is determined from their

net asset value.

The fair value of investments which have embedded derivatives was determined using an

internal model because there is no active market. (2011: the fair value was determined

using the fair value as estimated by the seller). The gains/losses arising from revaluation

are recognised in profit or loss. This method of measurement is in compliance with the

principles stipulated by the BOT.

The Bank and its subsidiaries recognised loss on impairment (if any) of available-for-sale

securities, held-to-maturity debt securities and other investments in part of profit or loss in

the statements of comprehensive income.


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In the event of the Bank and its subsidiaries’ transfer investments to another category, the

investments are valued at their fair valued prevailing on the transfer date. Differences

between the carrying amount of the investments and their fair value on that date are

recorded as profit or loss in the statements of comprehensive income or surplus (deficit)

from revaluation of investments, which is presented as a separate item in equity and

amortised over the remaining period to maturity of the debt securities, depending on the

type of investment which is reclassified.

On disposal of an investment, the difference between net disposal proceeds and the

carrying amount of the investment is recognised as income or expenses in part of profit or

loss in the statement of comprehensive income. In case of disposal partial of the

investment, the carrying value per share used to calculate the cost of the portion sold is

determined using the weighted average method.

6.4 Investments in receivables purchased and allowance for impairment

Investments in receivables purchased are presented at their acquisition cost net of

allowance for impairment (if any). Loss on impairment is recognised as an expense in part

of profit or loss in the statements of comprehensive income.

In case that the receivables purchased enter into troubled debt restructuring agreements,

they are transferred to loans and presented at fair value. The fair value is determined

based on the outstanding balance of investments as at the transfer date or as at the date

of restructuring.

Allowance for impairment of investments in receivables purchased is determined based on

the fair value, with reference to the collateral value.

6.5 Investments in subsidiary and associated companies

Investments in subsidiary and associated companies in the separate financial statements

are accounted for under the cost method net of allowance for impairment (if any). Loss

on impairment is recognised as expenses in part of profit or loss in the statements of

comprehensive income.


22

Investments in associated companies in the consolidated financial statements are

accounted for under the equity method. Under this method, investments are initially

recorded at acquisition cost and are adjusted to reflect the attributable shares of the net

income from the operations of the associated companies, in proportion to the investment.

6.6 Loans

Loans are stated at the principal balances, excluding accrued interest receivable, except

for overdrafts which are presented at the principal balances plus accrued interest

receivable. Unrecognised deferred income and discounts on loans are deducted from the

loan balances.

Hire purchase receivables and financial lease receivables are stated at the contract value

of the hire purchase receivables and financial lease receivables net of unearned income,

which is presented after netting commission expenses and initial direct cost on the

inception of the contracts.

Securities and derivatives business receivables comprise the net balances of securities

business receivable and derivatives business receivables. Securities business receivable

comprises receivable balances of credit balance accounts (for which the securities

purchased are used as collateral), securities borrowing and lending receivables and

guarantee deposit receivables (which comprise cash placed as guarantee for borrowers of

securities or Thailand Securities Depository) as well as other receivables, such as overdue

amounts in cash accounts and securities receivables which are under legal proceedings,

are undergoing restructuring, or are being settled in installments. The receivable balance

of cash accounts is presented as “Receivable from purchase and sale of securities and

derivatives”.

6.7 Allowances for doubtful accounts

a) The Bank and its subsidiary companies that operate in banking and asset

management business provide allowance for doubtful accounts in accordance with

the Notifications of the BOT and adjust these by the additional amount which is

expected not to be collectible based on an evaluation of the current status of the

debtors, taking into consideration the recovery risk and the value of collateral.

Increase (decrease) in an allowance for doubtful accounts is recognised as an

expense during the year.


23

The Bank and its subsidiary companies set provision for normal loans (including

restructured receivables) and special mention loans at minimum rates of 1% and 2%,

respectively, of the loan balances (excluding accrued interest receivable) net of

collateral value, as required by the BOT’s guidelines. Collateral values include

values of vehicles under hire purchase and finance lease contracts. For non-

performing loans, provision is set at a rate of 100% of the debt balance remaining

after deducting the present value of expected future cash flows from debt collection

or the present value of expected cash flows from collateral disposal, based on the

use of a discount rate and assumptions as to the time needed to dispose of the

collateral, in accordance with the BOT’s guideline. However, non-performing hire

purchase receivables and financial lease receivables are treated as uncollateralised.

b) Subsidiaries engaged in securities business have provided an allowance for doubtful

accounts based on a review of debtors’ repayment capability, taking into

consideration the risk of recovery and the value of collateral. An allowance is set

aside for doubtful debts not fully covered by collateral and/or those which may not be

fully recovered. Such debt classifications and provisions are made in accordance

with the Notifications of the SEC.

c) Subsidiaries engaged in hire purchase and leasing businesses have provided

allowance for doubtful accounts at percentages of the amount of principal

outstanding net of unearned income, based on the number of months overdue (with

reference to the classification of loans under BOT’s guidelines). Allowance for

doubtful accounts is provided based on the loan balances after net of collateral value

for receivables overdue no more than 3 months, while provided based on the loans

balance without deducting collateral value for receivables overdue more than 3

months.

d) Allowance for doubtful accounts of other receivables is based on the amount of debt

that may not be collectible, determined from a review of the current status of the

receivables as at the financial reporting date.

e) The Bank writes off hire purchase receivables when full allowance for doubtful

accounts has been made for such receivables. For other loans, the Bank and its

subsidiaries will be written off when the relevant criteria under tax law are met.

Amounts written off as bad debts or bad debt recovery are deducted from or added

to the allowance for doubtful accounts.


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6.8 Troubled debt restructuring

In cases where the debt restructuring involves modifications of the terms, the fair value of

the receivables after restructuring is based on the net present value of expected future

cash flows, discounted by the market’s minimum interest rate for credit to large customers

as at the date of the debt restructuring. The differences between the fair values of

receivables as of the restructuring date and their previous book values is recorded in

“Revaluation allowance for debt restructuring”, and recognised as an expense in part of

profit or loss in the statements of comprehensive income in the restructuring period. The

Bank and its subsidiaries review such revaluation allowance based on the net present

value of future cash flows over the remaining period to maturity, recognising adjustments

against bad debt and doubtful accounts.

In cases where the troubled debt restructuring involves the transfer of assets or equity, the

Bank and its subsidiaries record the assets or equity interest received as a result of debt

restructuring at their fair value (based on the value appraised by internal appraisers or

external independent appraisers) providing this does not exceed the amount of principal

legally claimable from the debtor (including interest of which recognition has ceased until

the restructuring date). Any excess of the fair value of the assets over the book value is

recognised as interest income in part of profit or loss in the statement of comprehensive

income.

Losses arising from debt restructuring through waivers of part of principal or recorded

accrued interest receivable are recognised in part of profit or loss in the statement of

comprehensive income when incurred.

6.9 Recognition and amortisation of customers’ assets

Assets which customers have placed with the subsidiary companies for securities trading,

in term of cash accounts and credit balance accounts, including amounts which customers

have placed as security for derivative trading, are recorded as assets and liabilities of the

subsidiary companies for internal control purpose. As at the reporting date, the subsidiary

companies write off those amounts which there are no guarantee obligations from both

assets and liabilities and present only those assets which belong to the subsidiary

companies.


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6.10 Property foreclosed

Property foreclosed is stated at the lower of cost (fair value with reference to appraisal

value, providing this does not exceed the legally claimable amount of debt) or net

realisable value, which is determined with reference to the latest appraisal value less

estimated selling expenses, adjusts these in accordance with the BOT’s guideline and

taking into consideration the type and the nature of the assets.

Gains on disposal of property foreclosed are recognised in part of profit or loss in the

statements of comprehensive income on the disposal date, unless the purchase is made

with a loan from the Bank. In such cases, gains are recognised in accordance with the

BOT’s guideline. Losses on disposal and impairment losses are recognised as expenses

in part of profit or loss in the statements of comprehensive income.

6.11 Land, premises and equipment and depreciation

a) Land and assets under installation are stated at cost, and depreciation is not

provided.

b) Premises and equipment are stated at cost less accumulated depreciation and

allowance for impairment (if any). Depreciation is calculated by reference to their

cost on a straight-line basis over the following estimated useful lives:

Buildings - 20 - 30 years

Buildings improvement - 5 - 10 years

Furniture, fixtures and equipment - 3 - 10 years

Motor vehicles - 5 years

Depreciation is included in determining income.

c) Land, premises and equipment are derecognised upon disposal or when no future economic benefits are expected from their use. Any gain or loss arising on disposal of these assets (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in profit or loss in the statements of comprehensive income.

6.12 Intangible assets and amortisation

Intangible assets acquired through business combination are initially recognised at their fair value on the date of business acquisition while intangible assets acquired in other cases are recognised at cost. Following the initial recognition, the intangible assets are carried at cost less any accumulated amortisation and any accumulated impairment losses (if any).


26

The Bank and its subsidiaries amortised intangible assets with finite lives on a systematic

basis over the economic useful life and tested for impairment whenever there is an

indication that the intangible asset may be impaired. The amortisation period and the

amortisation method of such intangible assets are reviewed at least at each financial year

end. The amortisation expense and loss on impairment are recognised as expenses in

part of profit or loss in the statements of comprehensive income.

The intangible assets with finite useful lives have useful lives of approximately 3 - 10 years.

No amortisation for computer software under development.

6.13 Leasehold rights

Leasehold rights are stated at cost less accumulated amortisation. Leasehold rights are

amortised on a straight-line basis over the lease periods and the amortisation amounts are

recognised as expenses in part of profit or loss in the statements of comprehensive

income.

6.14 Business combination and goodwill

Business combination accounted for under purchase method.

Goodwill is initially recorded at cost, which equals the excess of the cost of business

combination over the fair value of the net assets acquired. Goodwill is carried at cost less

any accumulated impairment losses. Goodwill is tested for impairment annually and when

circumstances indicate that the carrying value may be impaired.

6.15 Receivables from/payable to Clearing House

Receivables from/payable to Clearing House comprises the net balance receivable/

payable in respect of securities and derivatives trades. These include amounts pledged

with the Derivatives Clearing House as security for derivatives trading.


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6.16 Securities purchased under resale agreements/securities sold under repurchasedagreements

The Bank and its subsidiaries enter into agreements with private entities to purchase/sell

securities whereby there is an agreement to resell/repurchase the securities at certain

dates and at fixed price. Amounts paid for the securities purchased are presented as

assets under the caption of interbank and money market items or loans, depending on the

counter party, and the underlying securities are treated as collateral to such receivables.

The securities sold under repurchase agreement at the amounts received are presented

as liabilities under the caption of interbank and money market items and the underlying

securities are treated as collateral.

6.17 Premium due and uncollected and allowance for doubtful accounts

Premium due and uncollected is carried at its net realisable value. Subsidiary companies

provide an allowance for doubtful accounts based on the estimated loss that may be

incurred in the collection of the premium due, on the basis of collection experience and a

review of current status of the premium due as at the financial reporting date.

6.18 Reinsurance assets and liabilities

Reinsurance assets represent balances due from reinsurance companies, deposits placed

for reinsurance and insurance reserve to recover from reinsurers. Insurance reserve to

recover from reinsurers are estimated in a manner consistent with the outstanding claims

provision or settled claims associated with the reinsurer’s policies, and are in accordance

with the related reinsurance contracts.

Reinsurance liabilities represent balances due to reinsurance companies and deposits for

reinsurance held by the subsidiaries. The amounts payable on reinsurance are estimated

in a manner consistent with the related reinsurance contracts.


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6.19 Unearned premium/life insurance premium reserve

Non-life insurance contract

The subsidiaries set up gross unearned premium reserve in accordance with the

followings:

Marine and transportation (cargo) - Net premium written for the last

ninety days

Traveling accident with coverage of not more

than 6 months

- Net premium written for the last

thirty days

Others - Monthly average basis

(the one-twenty fourth basis)

In 2011, the Office of the Insurance Commission (“OIC”) has required that insurers

allocate an additional gross unexpired risk reserve in an amount not less than the

difference between gross unexpired risk reserve and unearned premium reserve, in cases

where gross unexpired risk reserve is higher than unearned premium reserve. Gross

unexpired risk reserve is calculated based on an actuarial method using a best estimate of

expected claims over the remainder of the insured period, based on historical data.

Life insurance contract

Life assurance policy reserve represents the accumulated total liabilities for estimated

future claims under all policies in force as at the financial statement date.

Subsidiaries determine life assurance policy reserve under long-term policies by using the

higher of the net level premium valuation method (NPV) and the gross premium valuation

method (GPV).

Life assurance policy reserve under NPV method is a type of actuarial method with the

main assumptions used relating to mortality rate, morbidity rate, longevity and discount

rates.

Calculation of life assurance policy reserve under GPV method is another type of actuarial

method with main assumptions used relating to lapse rate or surrender rate, selling and

administrative expenses, mortality and morbidity rate, discount rates and non-guaranteed

dividend rate. This calculation method is in compliance with the bases stipulated in the

OIC’s notification regarding valuation of assets and liabilities of life insurance company

(2011).


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6.20 Loss reserve and outstanding claims/Benefits payment to life policy

Non-life insurance contract

Outstanding claims are recorded at the actual amount to be paid. Loss reserve is recorded

upon the receipt of the claims advice from the insured based on the number of claims

notified by the insured and estimates made by a subsidiary’s management. The estimated

value of losses is limited to not more than the sum insured of the related insurance

policies.

In addition, in 2011, the OIC changed the method to be used for setting additional reserve

for incurred but not reported (IBNR) claims. The reserve is calculated using an

international standard actuarial method, based on the best estimated of claims expected

to be paid in the future for losses occurring before or as at the financial statement date,

including both reported and unreported claims, net of loss reserve already recorded

(Formerly, the subsidiary set up additional provision for IBNR at the higher of the reserve

calculated using actuarial method minus the recorded amount or outstanding claims, and

2.5 percent of total net premiums written in the previous twelve months).

Life insurance contract

Benefits paid under life policies are provided for upon receipt of the claims advices from

the insured or in accordance with the conditions of the policy.

6.21 Long-term leases

Leases that transfer substantially all the risks and rewards of ownership to the Bank and

its subsidiaries are classified as financial leases. Financial leases are capitalised at the

lower of the fair value of the leased assets and the present value of the minimum lease

payments. The outstanding rental obligations, net of finance charges, are included in other

payables, while the interest element is charged to profit or loss in the statement of

comprehensive income over the lease period. Assets acquired under finance leases are

depreciated over their estimated useful lives.

Lease not transferring a significant portion of the risks and rewards of ownership to the

lessee are classified as operating leases. Advance payments made under operating

leases is recorded as leasehold rights, and then amortise as expenses over the term of

the leases on the straight - line basis. Moreover, payments made under operating leases

are recognised as expenses over the term of the leases on the straight-line basis.


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6.22 Sales of commercial paper

The Bank and its subsidiary company which operates in banking business recorded

commercial paper with an aval by the Bank, or without an aval or acceptance which is sold

with recourse, as a liability under the caption of “Liabilities under commercial paper sold”.

Commercial paper sold at a discount with recourse, which is avaled by or has acceptance

from a commercial bank or other finance company, is recorded by crediting the notes

receivable account, and the obligations disclosed as part of “Contingent liabilities”.

6.23 Financial derivatives

The Bank and its subsidiaries have entered into off-balance transactions involving

derivative financial instruments in order to manage risk of the Bank and its subsidiaries

and in response to customer needs.

Forward foreign currency contracts which originated for trading purposes are recorded as

off-balance items. Gains or losses arising from changes in the fair value of the contracts

are recognised as part of profit or loss in the statement of comprehensive income.

Forward foreign currency contracts, interest rate swap contracts and cross currency and

interest rate swap contracts which were not originated for trading purposes are recorded

as off-balance items, and presented on an accrual basis. Foreign currency components

are translated at the year-end exchange rate, in the same manner as the hedged items,

with unrealised gains or losses on translation recognised as part of profit or loss in the

statement of comprehensive income. Interest rate components are presented on an

accrual basis, in the same manner as the hedged assets or liabilities, with gains or losses

recorded to interest income and interest expense over the terms of the contracts.

Receivables and payables under exchange contracts are presented at the net amount in

the statement of financial position.

The subsidiaries record obligations in respect of futures contracts made for trading

purposes as off-balance items. Gains or losses from changes in the fair value of financial

derivatives contracts are recorded in profit of loss. Fair value is determined based on the

daily settlement price quoted by Thailand Futures Exchanges Public Company Limited. If

the fair value of financial derivatives cannot be determined with reference to market price,

it is determined by a technical and valuation model, in which the variables used, will be

derived from the observable markets.


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6.24 Related party transactions

Related parties comprise enterprises and individuals that control, or are controlled by, the

Bank and its subsidiaries, whether directly or indirectly, or which are under common

control with the Bank and its subsidiaries.

They also include associated companies and individuals which directly or indirectly own a

voting interest in the Bank and its subsidiaries that give them significant influence over the

Bank and its subsidiaries, key management personnel, directors and officers with authority

in the planning and direction of the Bank’s and its subsidiaries’ operations.

6.25 Impairment of assets

The Bank and its subsidiaries assess at each financial reporting date whether there is an

indication that an asset may be impaired. If any indication exists, or when annual

impairment testing for an asset is required, the Bank and its subsidiaries realise loss on

impairment when the asset’s recoverable amount is less than the book value. An asset’s

recoverable amount is the higher of an asset’s fair value less costs to sell and its value in

use. Fair value less costs to sell reflects the amount that the Bank and its subsidiaries

could obtain at the financial reporting date from the disposal of the asset in an arm’s

length transaction between knowledgeable, willing parties, after deducting the costs of

disposal. In assessing value in use, the estimated future cash flows are discounted to their

present value using a pre-tax discount rate that reflects current market assessments of the

time value of money and the risks specific to the asset.

The Bank and its subsidiaries recognise impairment losses as expenses in part of profit or

loss in the statement of comprehensive income.

In assessing impairment of asset other than goodwill, if there is any indication that

previously recognised impairment losses may no longer exist or may have decreased, the

Bank and its subsidiaries estimate the asset’s recoverable amount. A previously

recognised impairment loss for assets other than goodwill is reversed only if there has

been a change in the assumptions used to determine the asset’s recoverable amount

since the last impairment loss was recognised. The increased carrying amount of the

asset attributable to a reversal of an impairment loss shall not exceed the carrying amount

that would have been determined had no impairment loss been recognised for the asset in

prior years. Such reversal is recognised in part of profit or loss in the statement of

comprehensive income.


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6.26 Employee benefits

a) Short-term employee benefits

The Bank and its subsidiaries recognised short-term employee benefits, such as

salary, wages, bonuses, contributions to the social security fund, and vacation, as

expenses when incurred.

b) Post-employment benefits (Defined contribution plans)

The Bank, its subsidiaries and its employees have jointly established a provident fund.

The fund is monthly contributed by employees and by the Bank and its subsidiaries.

The fund’s assets are held in a separate trust fund, and the Bank and its subsidiaries

contributions are recognised as expenses when incurred.

c) Post-employment benefits (Defined benefit plans)

The Bank and its subsidiaries have obligations in respect of the severance payments

it must make to employees upon retirement under labor law. The Bank and its

subsidiaries treat these severance payment obligations as a defined benefit plan.

The obligation under the defined benefit plan is determined by a professionally

qualified independent actuary, using the projected unit credit method.

Actuarial gains and losses arising from post employment benefits are recognized

immediately in profit or loss.

For the first-time adoption of TAS 19 Employee Benefits, the Bank and its subsidiaries

elected to recognise the transitional liability, which exceeds the liability that would

have been recognised at the same date under the previous accounting policy,

through an adjustment to the beginning balance of retained earnings in the current

year.

6.27 Foreign currencies

Foreign currency transactions are translated into Baht at the exchange rates ruling at the

transaction dates. Monetary assets and liabilities denominated in foreign currencies and

commitment outstanding on the financial reporting date have been translated into Baht at

the rates ruling at the financial reporting date.

Exchange gains and losses arising from trading or translation of foreign currencies are

included in determining income.


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6.28 Income tax

Income tax is provided in the accounts at the amount expected to be paid to the taxation

authorities, based on taxable profits determined in accordance with tax legislation.

6.29 Provisions

Provisions are recognised when the Bank and its subsidiaries have a present obligation as

a result of a past event, it is probable that an outflow of resources embodying economic

benefits will be required to settle the obligation, and a reliable estimate can be made of the

amount of the obligation.

7. Significant accounting judgments and estimates

The preparation of financial statements in conformity with generally accepted accounting

principles at times requires management to make subjective judgments and estimates

regarding matters that are inherently uncertain. These judgments and estimates affect

reported amounts and disclosures; and actual results could differ from these estimates.

Significant judgments and estimates are as follows:

7.1 Recognition and derecognition of assets and liabilities

In considering whether to recognise or to derecognise assets or liabilities, the

management is required to make judgment on whether significant risk and rewards of

those assets or liabilities have been transferred, based on their best knowledge of the

current events and arrangements.

7.2 Allowance for doubtful accounts for loans and allowance for impairment of investment in receivables

Allowance for doubtful accounts for loans and allowance for impairment of investment in

receivables are intended to adjust the value of loans for probable credit losses. The

management uses the BOT’s and SEC’s regulations regarding the provision of allowance

for doubtful accounts and judgments to estimate losses on outstanding loans when there

is any doubt about the borrower’s capability to repay the principal and/or the interest. The

allowances for loan losses are determined through a combination of specific reviews,

probability of default, value of collateral and current economic conditions.


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7.3 Allowance for impairment of investments in securities

The Bank and its subsidiaries review an impairment of investments in securities when

indication of impairment exists. The determination of what is indication of impairment

requires the management’s judgment.

7.4 Fair value of financial instruments

In determining the fair value of financial instruments that are not actively traded and for

which quoted market prices are not readily available, the management exercised

judgment, using a variety of valuation techniques and models. The input to these models

is taken from observable markets, and includes consideration of liquidity, correlation and

longer-term volatility of financial instruments.

7.5 Allowance for impairment of property foreclosed

The Bank and its subsidiaries assess allowance for impairment of property foreclosed

when net realisable value falls below the book value. The management uses the BOT’s

regulation and judgment to estimate impairment losses, taking into consideration the latest

appraisal value, the type and the nature of the assets.

7.6 Land, premises and equipment/Depreciation

In determining depreciation of premises and equipment, the management is required to

make estimates of the useful lives and salvage values of the premises and equipment,

and to review estimate useful lives and salvage values when there are any changes.

In addition, the management is required to review impairment of land, premises and

equipment on a periodical basis and record impairment losses in the period when it is

determined that their recoverable amounts are lower than the carrying amounts. This

requires judgments regarding forecast of future revenues and expenses relating to the

assets subject to the review.


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7.7 Goodwill and intangible assets

The initial recognition and measurement of goodwill and intangible assets, and

subsequent impairment testing, require management to exercise judgment as to the

recoverable amount to be generated by the asset, using the discounted cash flows

method, and including the selection of a suitable discount rate in order to determine the

present value of that cash flow. The estimated cash flows may differ as a result of

competitive forces, or changes in revenue trends, cost structures, and the discount rate,

industry circumstances or related market conditions. In addition, the management

estimates the useful life of those assets which have finite useful lives and revises such

useful lives if there are any changes.

7.8 Finance lease/Operating lease

When entering into lease agreement, the management is required to access and consider

the scope of significant risk and rewards of ownership of the leased assets. Leases that

transfer substantially all the risks and rewards of ownership to the leasee are classified as

financial leases. In the other hand, leases not transferring a significant portion of the risks

and rewards of ownership to the leasee are classified as operating leases.

7.9 Loss sharing from transfer of non-performing loans to TAMC

In estimating losses arising from the transfer of non-performing loans to the Thai Asset

Management Corporation (“TAMC”), the Bank uses the latest information received from

TAMC and projections of the amounts expected to be received from the debtors or from

debtors’ collateral value. The management uses judgment in determining the assumptions

as to the percentage on the amount expected to be recovered from the debt restructuring

agreement, or as to collateral value. The management considers these assumptions to be

appropriate given the current available information and current situation

7.10 Unearned premium/Life insurance premium reserve

Unexpired risk reserve is calculated under an actuarial method, which reflects the best

estimate of losses expected to be incurred over the remaining period of the insurance.

Estimating these reserves requires management to exercise judgment, with reference

made to historical data and current best estimates at that time.


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Life assurance policy reserve is calculated under an actuarial method, and adjusted

upwards to reflect risk factors and deviations. The main assumptions used relate to policy

termination or surrender rates, selling and administrative expenses, mortality rate,

morbidity rate, longevity, expenses and discount rates. Estimating these reserves requires

management to exercise judgments with reference made to historical data and current

best estimates at that time.

7.11 Loss reserve and outstanding claims

At each reporting date, subsidiaries estimate loss reserves and outstanding claims in two

parts; loss incurred for which the claims advice has been received from the insured, and

loss incurred but not yet reported (IBNR). The IBNR reserve is calculating by using an

international standard actuarial method. The main assumptions underlying these

techniques relate to historical claims experience, including development of estimates of

paid and incurred losses, average costs per claim, and claim numbers. Estimating these

reserves requires management to exercise judgment reflecting the best estimates

available at that time.

7.12 Post-employment benefits under defined benefit plans

Obligations under the defined benefit plan are determined by using actuarial technique.

Such determination is made based on various assumptions, including discount rate, future

salary increase rate, staff turnover rate, mortality rate, and inflation rates, based on their

best knowledge of current situation.

7.13 Litigation and contingent liabilities

The Bank and its subsidiaries have contingent liabilities as a result of litigation and

contingent liabilities as a result of transfer of business and transfer of non-performing

assets. The management has used judgment to assess of the results of the litigation, and

in case where they believe that there will be no losses, they will provide no provisions and

contingent liabilities as at the end of reporting period.


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8. Interbank and money market items (assets)



2011 2010

At call Term Total At call Term Total

Domestic

Bank of Thailand and Financial

Institutions Development Fund 5,492 2,000 7,492 4,821 26,000 30,821

Commercial banks 549 8,518 9,067 854 21,022 21,876

Specialised financial institutions 39 8,238 8,277 42 14,545 14,587

Other financial institutions 197 22,618 22,815 150 16,079 16,229

Total 6,277 41,374 47,651 5,867 77,646 83,513

Add: Accrued interest receivables - 11 11 - 34 34

Less: Allowance for doubtful accounts - (193) (193) - (162) (162)

Total domestic items 6,277 41,192 47,469 5,867 77,518 83,385

Foreign

US Dollar 1,449 13,470 14,919 776 169 945

Euro 119 - 119 119 - 119

Others 523 103 626 496 114 610

Total 2,091 13,573 15,664 1,391 283 1,674


Total foreign items 2,091 13,641 15,732 1,391 284 1,675

Total 8,368 54,833 63,201 7,258 77,802 85,060


38



2011 2010


Domestic

Bank of Thailand and Financial

Institutions Development Fund 5,492 2,000 7,492 3,178 12,000 15,178


Specialised financial institutions 27 8,200 8,227 30 - 30

Other financial institutions 196 22,769 22,965 115 1,570 1,685

Total 6,108 41,309 47,417 3,432 24,390 27,822


Less: Allowance for doubtful accounts - (195) (195) - - -


Foreign

US Dollar 1,449 13,470 14,919 347 70 417

Euro 119 - 119 7 - 7

Others 523 103 626 61 114 175

Total 2,091 13,573 15,664 415 184 599


Total foreign items 2,091 13,641 15,732 415 185 600

Total 8,199 54,764 62,963 3,847 24,581 28,428

As at 31 December 2011, the Bank had loan to a subsidiary company of Baht 150 million

in the separate financial statements.


39

9. Derivatives

As at 31 December 2011 and 2010, the notional amount and the fair value of trading

derivatives, and the adjustments made on an accrual basis for banking book derivatives

were classified by type of risk as follow.



2011 2010

Fair value/Adjustment on

an accrual basis Notional

Fair value/Adjustment on

an accrual basis Notional

Assets Liabilities amount* Assets Liabilities amount*

Type of risk

Foreign exchange rate

Derivatives for trading 858 820 63,491 509 295 53,139

Derivatives for banking book - 1,706 31,788 3 5 3,488

Interest rate


Derivatives for banking book - - 3,967 - - 13,681

Foreign exchange rate and

interest rate


Derivatives for banking book 585 291 15,445 1,574 339 21,529

Others

Derivatives for trading - - 641 - - -

Total 1,536 2,886 123,501 3,117 941 106,027

* Disclosed only in case that the Bank and its subsidiaries have an obligation to pay


40



2011 2010

Fair value/Adjustment

on an accrual basis

Notional Fair value/Adjustment

on an accrual basis

Notional

Assets Liabilities amount* Assets Liabilities amount*

Type of risk

Foreign exchange rate


Derivatives for banking book - 1,706 31,788 3 5 3,488

Interest rate

Derivatives for trading 64 60 5,957 - - -

Derivatives for banking book - - 3,667 - - 12,532

Foreign exchange rate and

interest rate

Derivatives for trading 29 9 2,212 - - -

Derivatives for banking book 585 291 15,445 816 339 13,479

Total 1,532 2,877 122,560 928 434 50,352

* Disclosed only in case that the Bank and its subsidiaries have an obligation to pay

Derivatives for banking book are obligations under contracts which are not held for trading,

and are measured on an accrual basis. Gain (loss) on exchange at the end of the year is

presented under derivatives assets/derivatives liabilities. Accrued interest receivables

(payables) per the contracts are recorded as receivables and payables in other

assets/liabilities.

Below are the proportions of trading derivatives transactions classified by counterparty,

determined based on the notional amount, as at 31 December 2011 and 2010.

Consolidated financial statements Separate financial statements

Counterparties 2011 2010 2011 2010

Percent Percent Percent Percent

Financial institutions 80.01 73.91 79.83 86.29

Companies within Thanachart Group - - 0.89 -

Third parties 19.99 26.09 19.28 13.71

Total 100.00 100.00 100.00 100.00


41

10. Investments

10.1 Classified by type of investment



2011 2010 2011 2010

Cost/

Amortised

cost Fair value

Cost/

Amortised

cost Fair value

Cost/

Amortised

cost Fair value

Cost/

Amortised

cost Fair value

Trading securities

Government and state enterprises

securities 10,508 10,479 44 45 3,174 3,179 44 45

Private debt securities 4,770 4,758 21 21 1,661 1,660 21 21

Foreign debt securities 642 637 3,015 3,023 642 637 - -

Domestic marketable equity

securities 34 38 74 80 - - - -

15,954 15,912 3,154 3,169 5,477 5,476 65 66

Add: Allowance for change in value (42) 15 (1) 1

Net 15,912 3,169 5,476 66

Available-for-sale securities


securities 40,877 41,003 52,685 52,604 38,431 38,554 15,764 15,708

Private debt securities 18,389 18,533 9,898 10,064 13,529 13,600 2,945 2,981

Foreign debt securities 25,516 25,425 12,704 12,920 25,516 25,425 6,128 6,342

Domestic marketable equity

securities 7,483 7,983 7,752 8,530 6,099 6,241 476 546

92,265 92,944 83,039 84,118 83,575 83,820 25,313 25,577

Add: Allowance for change in value 683 1,083 245 264

Less: Allowance for impairment (4) (4) - -

Net 92,944 84,118 83,820 25,577

Held-to-maturity debt securities


securities 26,876 27,771 36,138 36,849 17,642 18,096 18,986 19,426

Private debt securities 6,592 6,689 5,874 6,070 1,600 1,647 - -

Foreign debt securities 1,500 1,488 5,705 5,720 1,500 1,488 4,800 4,819

Investment in receivables purchased 12 12 29 29 12 12 - -

34,980 35,960 47,746 48,668 20,754 21,243 23,786 24,245

Other investment

Investment in property fund 671 845 671 234

Domestic non-marketable

equity securities 3,794 4,064 3,776 97

Foreign non-marketable equity

securities 84 84 84 3

4,549 4,993 4,531 334

Less: Allowance for impairment (40) (4) (40) (4)

Net 4,509 4,989 4,491 330

Total investment - net 148,345 140,022 114,541 49,759


42

10.2 Classified by due date of debt securities



2011 2010

Due within Due within

Less than

1 year 1 - 5 years

Over

5 years Total

Less than

1 year 1 - 5 years

Over

5 years Total



securities 20,031 20,828 18 40,877 31,162 21,492 31 52,685

Private debt securities 1,557 14,836 1,996 18,389 4,175 5,600 123 9,898

Foreign debt securities 19,021 6,495 - 25,516 904 11,800 - 12,704

Total 40,609 42,159 2,014 84,782 36,241 38,892 154 75,287

Add: Allowance for change in value 35 103 41 179 15 278 8 301

Net 40,644 42,262 2,055 84,961 36,256 39,170 162 75,588



securities 5,157 15,659 6,060 26,876 3,650 11,032 21,456 36,138

Private debt securities 3,990 2,288 314 6,592 1,346 3,063 1,465 5,874

Foreign debt securities 1,500 - - 1,500 4,800 905 - 5,705

Investment in receivables 8 4 - 12 18 11 - 29

Total 10,655 17,951 6,374 34,980 9,814 15,011 22,921 47,746

Total debt securities 51,299 60,213 8,429 119,941 46,070 54,181 23,083 123,334



2011 2010

Due within Due within

Less than

1 year 1 - 5 years

Over

5 years Total

Less than

1 year 1 - 5 years

Over

5 years Total



securities 18,399 20,014 18 38,431 10,302 5,462 - 15,764

Private debt securities 975 12,554 - 13,529 2,076 781 88 2,945

Foreign debt securities 19,021 6,495 - 25,516 602 5,526 - 6,128

Total 38,395 39,063 18 77,476 12,980 11,769 88 24,837

Add: Allowance for change in value 32 71 - 103 10 179 5 194

Net 38,427 39,134 18 77,579 12,990 11,948 93 25,031



securities

4,938 12,704 - 17,642 3,201 7,316 8,469 18,986

Private debt securities 800 650 150 1,600 - - - -

Foreign debt securities 1,500 - - 1,500 4,800 - - 4,800

Investment in receivables 8 4 - 12 - - - -

Total 7,246 13,358 150 20,754 8,001 7,316 8,469 23,786

Total debt securities 45,673 52,492 168 98,333 20,991 19,264 8,562 48,817


43

10.3 As at 31 December 2011, the Bank and its subsidiaries have a revaluation deficit arising

from transfers of investments in debt securities, of which the current balances of Baht 3

million in the consolidated financial statements and Baht 34 million in the separate

financial statements. These are presented in equity caption. (2010: Revaluation deficit of

Baht 71 million in the consolidated financial statements, and revaluation deficit of Baht 94

million in the separate financial statements).

10.4 As at 31 December 2011, investments in held-to-maturity debt securities included non-

transferable promissory notes amounting to Baht 4 million, which were received as a result

of the transfer of non-performing loans to Thai Asset Management Corporation (“TAMC”)

(2010: Baht 296 million). However, the agreed transfer price received in the form of

promissory notes could be revised up or down after TAMC reviews the price, assesses the

collateral or adjusts the price.

As at 31 December 2011, the Bank is still unable to assess the exact amount of such

losses since TAMC has been dissolved and is in the process of liquidation. However, the

Bank estimated the contingent losses arising from the management of non-performing

assets at approximately Baht 89 million (2010: Baht 89 million). Such amount has been

shown as a part of provisions for liabilities.

In addition, the Bank also shares joint responsibility with TAMC for future profits or losses

arising from TAMC’s management of the non-performing assets as mentioned in Note

46.2 to the financial statements.

10.5 Investments in securities in which the Bank and its subsidiaries hold not less than 10 percent of the equity of the investee

As at 31 December 2011 and 2010, investments in companies which the Bank and its

subsidiaries hold not less than 10 percent of the equity of the investee, but which are not

treated as subsidiaries or associated companies, separated by industry as follow:



2011 2010 2011 2010

Banking and finance sector 761 1,307 600 234


44

The investments mentioned above include investments in unit trusts in which the Bank

and its subsidiaries hold not less than 20 percent of the units issued. The Bank and its

subsidiaries do not treat these investments as investments in subsidiaries or associates

because the Bank and its subsidiaries do not have control or influence over the financial

and operating policies of these funds, which are independently managed by fund

managers in accordance with the details of each fund project, and are under the

supervision of the SEC. The Bank and its subsidiaries therefore record them as available-

for-sale or other investments, based on their investment objectives.


2011 2010 2011 2010

Net book Percentage Net book Percentage Net book Percentage Net book Percentage

Securities value of holding value of holding value of holding value of holding

Million

Baht

Percent Million

Baht

Percent Million

Baht

Percent Million

Baht

Percent

The Thai Business Fund 3 144 60.00 355 60.00 144 60.00 158 26.67

Sub Thawee Property Fund 36 56.00 76 56.00 36 56.00 76 56.00

Business Strategic Fund 278 67.33 278 67.33 278 67.33 - -

Thanachart Long Term Fixed

Income Fund 62 27.79 60 27.79 - - - -

Thanachart Fixed Income FIF 51 50 22.63 50 22.63 - - - -

11. Investments in subsidiary and associated companies

11.1 Separate financial statements

As at 31 December 2011 and 2010, investments in subsidiary companies and an

associated company in the separate financial statements stated under the cost method,

consist of investment in ordinary shares of the following companies:


45



Value of investment

Paid-up Percentage under the Dividend income

Company’s name Nature of business share capital of holding (Percent) cost method for the years

2011 2010 2011 2010 2011 2010 2011 2010

Subsidiary companies

SCIB Plc. (Formerly known as “Siam

City Bank Plc.”) Dissolution 21,128 21,128 99.98 99.95 32,542 68,835 260 -

TS Asset Management Co., Ltd. Asset management 2,000 - 100 - 2,000 - - -

Thanachart Securities Plc. Securities business 1,500 1,500 100 100 1,858 1,858 345 210

Thanachart Life Assurance Co., Ltd. Life - insurance 500 500 100 100 936 936 250 -

Thanachart Insurance Co., Ltd. Non-life insurance 740 740 100 100 867 867 300 -

Thanachart Group Leasing Co., Ltd. Hire purchase 360 360 100 100 400 400 203 148

Ratchthani Leasing Plc. Hire-purchase and

leasing business 1,342 - 65.18 - 1,201 - - -

Thanachart Broker Co., Ltd. Non-life insurance

broker 100 100 100 100 104 104 65 65

Thanachart Fund Management Co., Ltd. Fund management 100 100 75 75 97 97 97 83

Thanachart Legal and Appraisal

Co., Ltd. Dissolution 10 10 100 100 13 13 - -

Thanachart Management and Services

Co., Ltd. Services 6 6 100 100 6 6 - 12

Thanachart Training and Development

Co., Ltd. Training services 5 5 100 100 5 5 12 12

SCIB Service Co., Ltd. Services 10 - 100 - 5 - - -

Siam City Life Assurance Co., Ltd. Life - insurance 700 - 100 - 761 - - -

Total investments in subsidiary

companies 40,795 73,121 1,532 530

Associated company

Siam Samsung Life Insurance Co., Ltd. Life - insurance 500 - 25 - 47 - - -

Total investments in an associated

company 47 - - -

Total investments in subsidiary and

associated companies - net 40,842 73,121 1,532 530

After the entire business transfer from SCIB to Thanachart Bank, the Bank recognised

intangible assets arising from the business combination of Baht 3,613 million and goodwill

arising from the business combination of Baht 15,740 million in the separate financial

statements by deducting them from the cost of investment in SCIB. This presentation is to

reflect the business combination transactions in the separate financial statements. In

addition, the Bank received a partial of capital return on investment in the form of dividend

income.

The Bank additional invested in TS Asset Management Co., Ltd., which was established in

March 2011, with a shareholding of 100 percent.


46

In October 2011, the Bank received the transfer of 437,250,000 shares in Ratchthani

Leasing Plc. from SCIB, for a total of Baht 536 million. The Bank also purchased

437,486,500 additional shares from THANI at Baht 1.52 per share or for a total of Baht 665

million. As a result, the Bank’s shareholding increased from 48.35 percent to 65.18 percent

and the status of Ratchthani Leasing Plc. was changed from an associated company to a

subsidiary company.

11.2 Consolidated financial statements

As at 31 December 2011 and 2010, investments in associated companies in the

consolidated financial statements consist of investments in ordinary shares of the following

companies which operate in Thailand:


Share of income

(loss) for the

Paid-up share Percentage Value of investment Dividend income periods ended

capital of holding Cost method Equity method for the years 31 December

Company’s name 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010

MBK Plc. (operating in

property rental, hotel and

services business)

1,886 1,886 9.90 9.90 984 984 1,389 1,530 93 89 132 160

Siam Samsung Life

Insurance Co., Ltd.

(operating in life

insurance business)

500 500 25.00 25.00 104 104 34 81 - - (46) (24)

Siam City Insurance Co.,

Ltd. (operating in non-life

insurance business)

- 40 - 45.50 - 92 - 109 10 - (8) 17


(operating in hire-

purchase and leasing

business)

- 823 - 48.35 - 403 - 457 12 - 78 54

Total investments in associated companies 1,088 1,583 1,423 2,177 115 89 156 207

The Bank and its subsidiaries classified investment in MBK Plc. as investments in an

associated company, since the Parent company, the Bank and its subsidiaries had

significant influence in that company.

In August 2011, SCIB disposed of all of investments in ordinary shares of Siam City

Insurance Co., Ltd.


47

11.3 Cash flow information of an asset management company that is a subsidiary

Cash flow information of TS Asset Management Company Limited, a subsidiary, for the

year ended 31 December 2011 is as follows:


Cash flows from operating activities

Profit before income tax 321

Adjustments to reconcile profit before income tax

to net cash provided by (paid for) operating activities

Reversal of bad debt and doubtful account (221)

Increase in allowance for impairment of property foreclosed 12

Interest income - net (188)

Cash received from interest income 232

Cash paid for interest expense (83)

Income from operating activities before changes in operating assets and liabilities 73

Increase in operating assets

Loans (8,010)

Property foreclosed (3,093)

Other assets (47)

Increase in operating liabilities

Interbank and money market items 9,822

Other liabilities 123

Net cash flows used in operating activities (1,132)

Cash flows from investing activities

Cash received from interest income from investments 4

Net cash flows from investing activities 4

Cash flows from financing activities

Paid-up share capital 2,000

Net cash flows from financing activities 2,000

Net increase in cash and cash equivalents 872

Cash and cash equivalents at beginning of the year -

Cash and cash equivalents at end of the year 872


48

11.4 Summarised financial information of associated companies

a) Summarised financial information of MBK Plc. as at 30 September 2011 and 2010

and for the years then ended are as follows:


Total income Net income

Paid-up share capital Total assets Total liabilities for the periods ended for the periods ended

30 September 30 September 30 September 30 September 30 September

2011 2010 2011 2010 2011 2010 2011 2010 2011 2010

1,886 1,886 27,409 28,752 13,916 14,006 8,582 8,548 1,338 2,477

The share of income of MBK Plc. recognised in the current year is determined based

on financial statements of MBK Plc. prepared for a different period, as a result of

limitations on the availability of information. The financial information used was

based on the statements of financial position as at 30 September 2011 and 2010

and the statements of profit or loss for the years then ended as prepared by the

Bank’s management, with reference to the financial statements as reviewed by its

auditor and adjusted for the effect of the differences in accounting policies. The

Bank’s management believes that the net income for the year ended 30 September

2011 is not material different from that income for the year ended 31 December

2011.

b) Summarised financial information of Siam Samsung Life Insurance Co., Ltd., Siam

City Insurance Co., Ltd. and Ratchthani Leasing Plc. as at 31 December 2011 and

2010 and for the periods then ended are as follows:


Paid-up share Total income Net income (loss)

Company’s name capital Total assets Total liabilities for the years for the years

2011 2010 2011 2010 2011 2010 2011 2010 2011 2010

Siam Samsung Life Insurance

Co., Ltd.

500 500 1,989 2,073 1,854 1,766 1,170 911 (184) (98)

Siam City Insurance Co., Ltd. - 40 - 932 - 689 414 632 (17) 37

Ratchthani Leasing Plc. - 823 - 9,549 - 8,270 913 695 160 112

Income, profit or loss and shares of profit (loss) of investments in associated

companies were determined based on the financial statements of those companies

for the period starting from the date that the Bank and/or the subsidiaries invested in

such companies, in proportion to the shareholding interest, and until the Bank

disposed of such investment or its status was changed to a subsidiary company.


49

11.5 As at 31 December 2011 and 2010, the fair value of investments in associated companies

which are listed in the Stock Exchange of Thailand is as follows


Company’s name 2011 2010

MBK Plc. 1,649 1,887

Ratchthani Leasing Plc. - 616

12. Loans to customers and accrued interest receivables

12.1 Classified by loan type




2011 2010 2011 2010

Loans to customers

Overdrafts 23,358 24,562 23,358 3,243

Loans 271,129 275,232 250,290 58,324

Notes receivable 49,984 62,171 68,048 24,985

Hire purchase receivables 325,976 271,851 310,595 269,834

Financial lease receivables 2,104 2,392 1,926 2,341

Others 234 429 234 -

Less: Deferred revenues (39,801) (32,469) (37,739) (32,178)

Total loans to customers net of deferred

revenues 632,984 604,168 616,712 326,549

Add: Accrued interest receivables 963 924 925 272

Total loans to customers net of deferred

revenues and accrued interest

receivables 633,947 605,092 617,637 326,821

Less: Allowance for doubtful accounts

- BOT’s minimum requirement

provision (25,197) (23,917) (12,102) (7,056)

- Excess provision (396) (534) (383) (375)

Less: Revaluation allowance for debt

restructuring (382) (460) (382) (38)

Loans to customer and accrued interest

receivables - net 607,972 580,181 604,770 319,352

Securities business receivables

Credit balances receivables 1,926 1,341 - -

Other receivables 310 1,342 - -

Total securities business receivables 2,236 2,683 - -

Less: Allowance for doubtful accounts (305) (1,338) - -

Securities business receivables - net 1,931 1,345 - -

Loans to customer and accrued interest

receivables - net 609,903 581,526 604,770 319,352


50

12.2 Classified by currency and country



2011 2010

Domestic Foreign Total Domestic Foreign Total

Baht 624,935 450 625,385 590,382 4,794 595,176

US Dollar 5,740 3,386 9,126 7,468 3,835 11,303

Other currencies 284 425 709 372 - 372

Total* 630,959 4,261 635,220 598,222 8,629 606,851

* Total loans net of deferred revenues



2011 2010


Baht 602,308 450 602,758 322,533 380 322,913

US Dollar 7,282 5,853 13,135 2,803 800 3,603

Other currencies 395 424 819 33 - 33

Total* 609,985 6,727 616,712 325,369 1,180 326,549



51

12.3 Classified by type of business and loan classification



2011

The Bank and a subsidiary company which are financial institutions

Normal

Special

mention

Sub-

standard Doubtful

Doubtful

of loss Total

Subsidiary

companies Consolidated

Agricultural and mining 10,452 27 95 104 148 10,826 4 10,830

Manufacturing and commerce 60,956 4,364 3,363 6,741 6,484 81,908 59 81,967

Real estate and construction 42,730 1,463 577 736 2,454 47,960 12 47,972

Public utilities and services 49,553 3,317 921 1,529 3,060 58,380 61 58,441

Personal consuming

Housing loans 68,632 1,503 552 1,221 1,728 73,636 - 73,636

Securities business - - - - - - 2,236 2,236

Hire purchase 242,023 27,443 664 648 2,241 273,019 13,342 286,361

Others 48,357 2,076 673 763 2,095 53,964 116 54,080

Others 18,927 177 178 14 382 19,678 19 19,697

Total* 541,630 40,370 7,023 11,756 18,592 619,371 15,849 635,220




2010


Normal

Special

mention

Sub-

standard Doubtful

Doubtful

of loss Total

Subsidiary


Agricultural and mining 8,124 2,432 194 71 136 10,957 - 10,957

Manufacturing and commerce 73,796 8,663 1,697 8,459 4,768 97,383 1 97,384

Real estate and construction 45,690 1,958 1,549 644 2,552 52,393 13 52,406

Public utilities and services 55,570 4,490 1,210 1,659 3,112 66,041 6 66,047

Personal consuming

Housing loans 72,939 1,890 581 813 1,413 77,636 - 77,636

Securities business - - - - - - 2,683 2,683

Hire purchase 218,478 15,416 782 606 2,589 237,871 1,740 239,611

Others 15,474 842 428 169 909 17,822 54 17,876

Others 40,270 778 204 192 783 42,227 24 42,251

Total* 530,341 36,469 6,645 12,613 16,262 602,330 4,521 606,851



52



2011

Special Doubtful

Normal mention Substandard Doubtful of loss Total

Agricultural and mining 10,452 27 69 15 25 10,588

Manufacturing and commerce 60,956 4,364 583 672 2,725 69,300

Real estate and construction 42,730 1,463 295 333 1,323 46,144

Public utilities and services 48,218 3,317 545 1,255 1,773 55,108

Personal consuming

Housing loans 68,627 1,503 493 738 692 72,053

Hire purchase 242,023 27,443 664 648 2,241 273,019

Others 48,356 2,076 654 616 1,596 53,298

Others 36,991 177 5 2 27 37,202

Total* 558,353 40,370 3,308 4,279 10,402 616,712




2010

Special Doubtful

Normal mention Substandard Doubtful of loss Total

Agricultural and mining 3,639 1 1 - 8 3,649

Manufacturing and commerce 20,751 193 65 130 450 21,589

Real estate and construction 18,434 104 254 163 439 19,394

Public utilities and services 18,110 17 8 197 77 18,409

Personal consuming

Housing loans 4,998 466 162 107 285 6,018

Hire purchase 218,478 15,416 782 606 2,589 237,871

Others 7,554 651 248 169 908 9,530

Others 10,064 25 - - - 10,089

Total* 302,028 16,873 1,520 1,372 4,756 326,549



53

12.4 Non-performing loans

As at 31 December 2011 and 2010, the Bank and its subsidiaries (banking, securities and

asset management) had non-performing loans classified in accordance with the

Notification of the BOT and SEC (debtors classified as substandard, doubtful and doubtful

of loss) as follows:




2011 2010 2011 2010

Non-performing loans (excluding

accrued interest receivables)

Banking business 17,989 35,520 17,989 7,648

Securities business 306 1,339 - -

Asset management 19,382 - - -

The above definition of non-performing loans does not include overdue loans which have

been already restructured and are now qualified for classification as Normal or Special

mention debt.

Additionally, the Bank and its subsidiaries (banking and securities business) had loans for

which income recognition under an accrual basis has been discontinued, as follows:




2011 2010 2011 2010

Banking business 16,558 44,046 16,558 7,538

Securities business 306 1,339 - -

The subsidiary company engaged in the asset management business recognises income

from loan on a cash basis.


54

12.5 Debt restructuring

During the years 2011 and 2010, the Bank and its subsidiaries have entered into debt

restructuring agreements as follows:

consolidated financial statements

For the years ended 31 December

Outstanding Outstanding Fair value of

loans balance loans balance Type of assets assets to be

Number of before after to be transferred under

Type of restructuring debtors restructuring (1) restructuring (1) transferred agreement

Million Baht Million Baht Million Baht

2011

Modification of repayment

conditions 38,676 16,553 16,553

Transfer of assets and/or

ordinary shares and/or

modification of repayment

conditions 9 627 627 Land 190

Total 38,685 17,180 17,180

2010

Transfer of assets 1 6 6 Land and premise 6


conditions 5,908 10,616 10,616

Transfer of assets and/or ordinary

shares and/or modification of

repayment conditions 4 154 154 Land 127

Total 5,913 10,776 10,776

(1) Presents the outstanding balance per the books of account (principal plus accrued interest receivable).


55



Type of restructuring

Number of

debtors

Outstanding

loans balance

before

restructuring (1)

Outstanding

loans balance

after

restructuring (1)

Type of assets

to be

transferred

Fair value of

assets to be

transferred under

agreement

Million Baht Million Baht Million Baht

2011


conditions 38,353 13,163 13,163




Total 38,359 13,177 13,177

2010


conditions 4,978 1,949 1,949




Total 4,982 2,103 2,103

(1) Presents the outstanding balance per the books of account (principal plus accrued interest receivable).

Counting from the end of the year, the remaining periods to maturity of receivables which

entered into debt restructuring agreements during the years 2011 and 2010, are

summarised below.



2011 2010

Periods

Number of

debtors

Outstanding

balances after

restructuring

Number of

debtors

Outstanding

balances after

restructuring

Million Baht Million Baht

Past due after restructuring 1,261 1,734 1,299 582

Due within the year 908 1,504 670 618

Less than 5 years 27,984 8,645 2,096 1,563

5 - 10 years 8,498 5,213 1,609 7,295

10 - 15 years 13 45 112 458

Over 15 years 21 39 127 260

Total 38,685 17,180 5,913 10,776


56



2011 2010

Periods

Number of

debtors

Outstanding

balances after

restructuring

Number of

debtors

Outstanding

balances after

restructuring


Past due after restructuring 1,169 841 1,247 438

Due within the year 812 168 663 130

Less than 5 years 27,947 8,098 1,947 505

5 - 10 years 8,422 4,029 1,102 977

10 - 15 years 5 31 9 13

Over 15 years 4 10 14 40

Total 38,359 13,177 4,982 2,103

Supplemental information for the years 2011 and 2010 relating to restructured loan is as

follows:


Consolidated

financial statements

Separate


2011 2010 2011 2010

Interest incomes recognised in the statements

of comprehensive income 1,292 1,080 543 487

Cash repayment from receivables 4,985 4,331 2,288 1,594

Properties foreclosed received for debts

settlement 58 309 58 303

Loss on debt restructuring 40 77 15 123

As at 31 December 2011 and 2010, the Bank and its subsidiaries have the following

restructured receivables balances (principal and accrued interest receivable):

Restructured receivables

Total number of

outstanding receivables Number of receivables Outstanding balances

Outstanding balances,

net of collateral

2011 2010 2011 2010 2011 2010 2011 2010

Million Baht Million Baht Million Baht Million Baht

Thanachart Bank Plc. 1,378,861 944,313 52,289 13,944 25,803 5,324 9,350 2,414

Siam City Bank Plc. - 358,647 - 6,247 - 22,871 - 9,560

Thanachart Securities Plc. 886 395 3 3 35 35 35 35

TS Asset Management Co., Ltd. 2,459 - 1,630 - 12,978 - 5,173 -


57

12.6 Hire purchase/Financial lease receivables

As at 31 December 2011, net hire purchase/financial lease receivables of the Bank and its

subsidiaries amounting to Baht 283,038 million were recorded in the consolidated financial

statements, with Baht 270,015 million recorded in the separate financial statements. These

mostly comprise hire purchase agreements or financial lease agreements for cars and

motorcycles. The terms of the agreements are generally between 3 and 7 years and they

carry interest at fixed rates.


Consolidated financial statement as at 31 December 2011

Amounts due under lease agreements

Less than

1 year* 1 - 5 years Over 5 years Total

Gross investment in the lease 98,530 218,233 11,317 328,080

Less: Unearned finance income (15,589) (23,687) (515) (39,791)

Present value of minimum lease payments

receivable 82,941 194,546 10,802 288,289

Allowance for doubtful accounts (5,251)

Hire purchase/Financial lease receivables -

net 283,038

* Included non-performing receivables


Consolidated financial statement as at 31 December 2010


Less than





receivable 75,321 159,515 6,950 241,786



net 236,649



58


Separate financial statement as at 31 December 2011


Less than





receivable 81,559 182,790 10,443 274,792



net 270,015



Separate financial statement as at 31 December 2010


Less than





receivable 74,532 158,531 6,938 240,001



net 235,076



59

12.7 Classified by classification

As at 31 December 2011 and 2010, the Bank and its financial institution subsidiaries

(banking and asset management business) classified and made allowances against their

loans in accordance with the BOT’s guidelines as summarised below.


Consolidated financial statements (1)

Loans and accrued

interest receivables

Net balance used in

made allowance for

doubtful accounts (2)

Minimum

percentage

Allowance for doubtful

accounts

2011 2010 2011 2010 (Percent) 2011 2010

Normal 542,456 531,104 201,301 189,131 1 3,970 2,082

Special mention 40,447 36,539 18,289 16,944 2 722 2,249

Substandard 7,031 6,663 3,870 2,805 100 3,870 2,898

Doubtful 11,763 12,620 7,507 8,199 100 7,507 8,277

Doubtful of loss 18,631 16,323 8,208 8,180 100 8,348 8,199

Total 620,328 603,249 239,175 225,259 24,417 23,705

Additional allowance for possible uncollectability debts 383 534

Total 24,800 24,239

(1) Only the Bank and subsidiary companies subject to BOT’s regulations; and after deducting intragroup transactions.

(2) The net balance used in setting allowance for doubtful accounts for loans classified as Normal and Special mention is the principal

balance net of deferred revenues, excluding accrued interest receivables, and after deducting collaterals values, while for loans

classified as Substandard, Doubtful and Doubtful of loss, it is the principal balance net of deferred revenues plus accrued interest

receivables, and after deducting the present value of expected future cash flows from debt collection or from disposal of collaterals.



Loans and accrued

interest receivables

Net balance used in

made allowance for

doubtful accounts (1)

Minimum

percentage


accounts

2011 2010 2011 2010 (Percent) 2011 2010

Normal 559,184 302,266 218,024 103,855 1 2,812 1,155

Special mention 40,447 16,887 18,289 8,414 2 721 168

Substandard 3,309 1,523 1,500 1,070 100 1,500 1,070

Doubtful 4,279 1,372 1,791 775 100 1,791 775

Doubtful of loss 10,418 4,773 5,138 3,888 100 5,278 3,888

Total 617,637 326,821 244,742 118,002 12,102 7,056

Additional allowance for possible uncollectability debts 383 375

Total 12,485 7,431

(1) The net balance used in setting allowance for doubtful accounts for loans classified as Normal and Special mention is the principal

balance net of deferred revenues, excluding accrued interest receivables, and after deducting collaterals values, while for loans

classified as Substandard, Doubtful and Doubtful of loss, it is the principal balance net of deferred revenues plus accrued interest

receivables, and after deducting the present value of expected future cash flows from debt collection or from disposal of collaterals.


60

From July to December 2011, there was widespread flooding in Thailand. The floods may affect the business of certain debtors. The Bank has provided support to its customers in accordance with the policy of the BOT by relaxing principal and/or interest payments, extending the repayment schedule, maintaining the status of each debtor as it was before such floods occurred, and not treating the related receivables as non-performing loans. As at 31 December 2011 a total of 27,783 debtors with total balances of Baht 22,096 million had received relaxations of terms due to the flooding. However, the Bank’s management believes that no further significant damage will be incurred as a result of this situation.

12.8 Loan to companies which have settlement problems

As at 31 December 2011 and 2010, loans of the Bank and its subsidiaries in the consolidated financial statements and the separate financial statements included debts due from companies with weak financial positions and poor operating results, as follows:



accounts provided

Number of debtors Debt balance Collateral value in the accounts

2011 2010 2011 2010 2011 2010 2011 2010

Million Million Million Million Million Million

Baht Baht Baht Baht Baht Baht

1. Listed companies possible to 6 6 857 425 67 67 790 359

delisting from the SET

2. Non - listed companies with 9 11 585 750 334 753 236 275

similar operating results and

financial positions to listed

companies possible to


3. Companies which have loan 1,130 1,102 24,337 30,827 11,760 13,545 13,213 13,708

settlement problems or have

defaulted on the repayment



accounts provided

Number of debtors Debt balance Collateral value in the accounts

2011 2010 2011 2010 2011 2010 2011 2010

Million Million Million Million Million Million

Baht Baht Baht Baht Baht Baht

1. Listed companies possible to 3 2 169 122 31 - 138 122


2. Non - listed companies with 9 11 585 750 334 753 236 275

similar operating results and

financial positions to listed

companies possible to


3. Companies which have loan 737 432 8,042 931 5,323 580 2,726 392

settlement problems or have

defaulted on the repayment


61

12.9 Classification of securities business receivables in accordance with the Notification of the Securities and Exchange Commission

As at 31 December 2011 and 2010, subsidiary companies operating in the securities

business classified securities business receivables and accrued interest receivables, and

provided related allowance for doubtful accounts, in accordance with the Notification of the

Securities and Exchange Commission (SEC), as follows:


Debt balance net of allowance

Receivable balances Allowance for doubtful accounts for doubtful accounts

2011 2010 2011 2010 2011 2010

Normal 1,930 1,344 - - 1,930 1,344

Substandard 3 4 2 3 1 1

Doubtful 303 1,335 303 1,335 - -

Total 2,236 2,683 305 1,338 1,931 1,345

Allowance for doubtful accounts for substandard loans set aside by subsidiaries is higher

than the minimum amount required by the SEC, and takes into account uncertainties as to

collateral value and the risk from collection of such receivables.

12.10 Hire purchase receivables/financial lease receivables of subsidiaries classified by aging

As at 31 December 2011 and 2010, hire purchase and financial lease receivables

balances of subsidiary companies engaged in hire purchase and financial lease

businesses are classified by the due date of the contracts (after elimination) as follows:


2011 2010

Current or overdue not over 90 days 12,863 1,590

Overdue 91 - 365 days 363 40

Overdue more than 1 year 66 48

Debtors under legal actions 205 107

Total 13,497 1,785

Allowance for doubtful accounts provided in the accounts 792 212


62

12.11 As at 31 December 2011 and 2010, the Bank has loans to subsidiary companies as

follows:

Contract period as at Interest rate as at Outstanding balances

Company’s name Type of credit 31 December 2011 31 December 2011 2011 2010



Thanachart Group Leasing Co.,

Ltd.

Promissory note At call The Bank’s cost of fund plus a

fixed interest rate per annum

353 932

National Leasing Co., Ltd. Promissory note At call The Bank’s cost of fund plus a


22 52

Ratchthani Leasing Plc. Promissory note At call The Bank’s cost of fund plus a


7,867 -

TS Asset Management Co., Ltd. Promissory note At call The Bank’s cost of fund plus a


9,822 -

Total 18,064 984

13. Allowance for doubtful accounts



2011


Normal

Special

mention

Sub-

standard Doubtful

Doubtful of

loss

General

provision Total

Subsidiary


Balance - beginning of the year 2,082 2,249 2,898 8,277 8,199 534 24,239 1,550 25,789

Beginning balance of the subsidiaries

acquired during the year - - - - - - - 542 542

Balance of a subsidiary company

disposed during the year - - - - - - - (1,023) (1,023)

Increase (decrease) during the year 1,888 (1,527) 992 (571) 1,826 (151) 2,457 91 2,548

Bad debts recovery - - - 253 156 - 409 11 420

Bad debts written-off - - (20) (452) (933) - (1,405) (73) (1,478)

Reversal from disposal of loans - - - - (900) - (900) - (900)

Balance - end of the year 3,970 722 3,870 7,507 8,348 383 24,800 1,098 25,898


63



2010


Normal

Special

mention

Sub-

standard Doubtful

Doubtful

of loss

General

provision Total

Subsidiary


Balance - beginning of the year 895 188 968 1,181 4,258 214 7,704 659 8,363


acquired during the year 971 2,854 1,346 4,745 6,244 - 16,160 1,074 17,234

Balance of a subsidiary company

disposed during the year - - - - - - - (64) (64)

Increase (decrease) during the year 216 (793) 584 2,595 (858) 320 2,064 (29) 2,035

Bad debts recovery - - - 223 56 - 279 16 295

Bad debts written-off - - - (467) (594) - (1,061) (106) (1,167)

Reversal from disposal of loans - - - - (907) - (907) - (907)

Balance - end of the year 2,082 2,249 2,898 8,277 8,199 534 24,239 1,550 25,789



2011

Normal

Special

mention Substandard Doubtful

Doubtful

of loss

General

provision Total

Balance - beginning of the year 1,155 168 1,070 775 3,888 375 7,431

Increase (decrease) during the year 10 138 (775) 729 1,278 8 1,388

Increase for receivables which were

transferred from SCIB during the

year 1,647 415 1,205 287 1,474 - 5,028

Bad debts recovery - - - - 156 - 156

Bad debts written-off - - - - (618) - (618)

Reversal from disposal of loans - - - - (900) - (900)

Balance - end of the year 2,812 721 1,500 1,791 5,278 383 12,485



2010

Normal

Special

mention Substandard Doubtful

Doubtful

of loss

General

provision Total

Balance - beginning of the year 909 188 968 1,181 4,258 214 7,718

Increase (decrease) during the year 246 (20) 102 (406) 1,076 161 1,159

Bad debts recovery - - - - 55 - 55

Bad debts written-off - - - - (594) - (594)

Reversal from disposal of loans - - - - (907) - (907)

Balance - end of the year 1,155 168 1,070 775 3,888 375 7,431


64

14. Revaluation allowance for debt restructuring



2011 2010 2011 2010

Balance - beginning of the year 460 33 38 33


acquired during the year - 472 - -

Additional allowance for receivables received

during the year - - 369 -

Increase (decrease) during the year (35) (40) 15 7

Amortised during the year (43) (5) (40) (2)

Balance - end of the year 382 460 382 38

15. Classification of assets

As at 31 December 2011 and 2010, the quality of assets of the Bank and its subsidiaries

classified in accordance with the announcements of the Bank of Thailand are as follows:



2011

Interbank and

money market

items

Loans to

customer and

accrued

interest

receivables Investments

Property

foreclosed Other assets Total

Normal 39,364 542,456 - - 162 581,982

Special mention - 40,447 - - 108 40,555

Substandard - 7,031 - - 4 7,035

Doubtful - 11,763 - - 4 11,767

Doubtful of loss - 18,631 238 197 237 19,303

Total 39,364 620,328 238 197 515 660,642


65



2010

Interbank and

money market

items

Loans to

customer and

accrued

interest


Property


Normal 51,777 531,104 - - 192 583,073

Special mention - 36,539 - - 84 36,623

Substandard - 6,663 - - 8 6,671

Doubtful - 12,620 - - 14 12,634

Doubtful of loss - 16,323 89 56 503 16,971

Total 51,777 603,249 89 56 801 655,972



2011

Interbank and

money market

items

Loans to

customer and

accrued

interest


Property


Normal 39,514 559,184 - - 162 598,860

Special mention - 40,447 - - 108 40,555

Substandard - 3,309 - - 4 3,313

Doubtful - 4,279 - - 4 4,283

Doubtful of loss - 10,418 238 148 237 11,041

Total 39,514 617,637 238 148 515 658,052



2010

Interbank and

money market

items

Loans to

customer and

accrued

interest


Property


Normal 12,510 302,266 - - 179 314,955

Special mention - 16,887 - - 82 16,969

Substandard - 1,523 - - 5 1,528

Doubtful - 1,372 - - 4 1,376

Doubtful of loss - 4,773 89 56 16 4,934

Total 12,510 326,821 89 56 286 339,762


66

16. Property foreclosed (Unit: Million Baht)


For the year ended 31 December 2011

Balance -

beginning

of the year

Increased

from

purchase of

subsidiary

company Additions Disposals

Change

appraiser

Balance - end

of the year

Assets transferred in settlement of debts

Immovable assets

External appraiser 6,472 - 108 (1,079) 114 5,615

Internal appraiser 233 - 16 (38) (114) 97

Movable assets 289 4 3,184 (3,112) - 365

Assets foreclosed from purchase

by bid on the open market

Immovable assets

External appraiser 673 - 93 (63) 4 707


Assets awaiting disposal

External appraiser 168 - (52) - 116

Total property foreclosed 7,907 4 3,356 (4,303) - 6,964

Less: Allowance for impairment (56) - (528) 382 - (202)

Property foreclosed - Net 7,851 4 2,828 (3,921) - 6,762




Balance -

beginning

of the year

Increased

from

purchase of

subsidiary


Change

appraiser

Balance - end

of the year


Immovable assets

External appraiser 353 6,657 205 (639) (104) 6,472

Internal appraiser 110 16 17 (14) 104 233

Movable assets 428 - 3,733 (3,872) - 289



Immovable assets

External appraiser - 577 119 (24) 1 673

Internal appraiser 65 7 13 (12) (1) 72


External appraiser - 168 - - - 168

Total property foreclosed 956 7,425 4,087 (4,561) - 7,907

Less: Allowance for impairment (44) - (186) 174 - (56)

Property foreclosed - Net 912 7,425 3,901 (4,387) - 7,851


67




Balance -

beginning

of the year

Increased

from

purchase of

subsidiary


Change

appraiser

Balance - end

of the year


Immovable assets

External appraiser 111 2,367 - (33) 119 2,564


Movable assets 283 4 3,122 (3,064) - 345



Immovable assets

External appraiser 1 636 - (17) 4 624



External appraiser - 116 - - - 116

Total property foreclosed 696 3,123 3,145 (3,163) - 3,801

Less: Allowance for impairment (56) (63) (165) 136 - (148)

Property foreclosed - Net 640 3,060 2,980 (3,027) - 3,653




Balance -

beginning

of the year Additions Disposals

Change

appraiser

Balance - end

of the year


Immovable assets

External appraiser 353 186 (324) (104) 111

Internal appraiser 110 17 (1) 104 230

Movable assets 410 3,610 (3,737) - 283



Immovable assets

External appraiser - - - 1 1

Internal appraiser 65 12 (5) (1) 71

Total property foreclosed 938 3,825 (4,067) - 696

Less: Allowance for impairment (43) (167) 154 - (56)

Property foreclosed - Net 895 3,658 (3,913) - 640


68

16.1 As at 31 December 2011 and 2010, property foreclosed received in settlement of

receivables that are subject to restrictions can be summarised as follows: (Unit: Million Baht)


2011 2010 2011 2010

Immovable assets subject to buyback

options or first refusal rights 739 522 739 221

16.2 As at 31 December 2011, the Bank and its subsidiaries have agreements with clients to purchase or sell property foreclosed amounting to approximately Baht 966 million (at cost) in the consolidated financial statements and Baht 926 million in the separate financial statements that are currently being settled in installments or through transfer of ownership. The Bank and its subsidiaries have therefore not recognised gains on the sales, and the assets continue to be recorded as property foreclosed of the Bank and its subsidiaries.

17. Land, premises and equipment (Unit: Million Baht)



Land

Buildings and buildings

improvement

Furniture,fixtures and equipment Vehicles

Assetsunder

installation Total

Cost 31 December 2010 4,649 2,652 3,916 155 134 11,506 Increase from purchase of subsidiary

company 12 37 6 7 - 62 Decrease from disposal of a subsidiary

company - - (107) (13) - (120) Additions 43 54 428 11 327 863

Transfers/disposals - (277) (10) (84) (315) (686)

31 December 2011 4,704 2,466 4,233 76 146 11,625

Accumulated depreciation 31 December 2010 - 201 2,258 60 - 2,519 Decrease from disposal of a subsidiary

company - - (95) (13) - (108) Transfer/disposals (270) (310) (74) - (654)

Depreciation for the years - 216 756 42 - 1,014

31 December 2011 - 147 2,609 15 - 2,771

Allowance for impairment 31 December 2010 - - 1 - - 1 Increase (decrease) during the period 68 26 1 - - 95 Decrease from disposal of a subsidiary

company - - (1) - - (1)

31 December 2011 68 26 1 - - 95

Net book value

31 December 2011 4,636 2,293 1,623 61 146 8,759

Depreciation charge for the year 1,014


69




Land

Buildings and

building

improvement

Furniture,

fixtures and

equipment Vehicles

Assets under

installation Total

Cost

31 December 2009 426 390 3,057 168 18 4,059

Increase from purchase of subsidiary

companies 4,173 2,142 704 62 134 7,215

Decrease from disposal of a subsidiary

company - - (6) (1) - (7)

Additions 54 56 380 20 90 600

Transfers/disposals (4) 64 (219) (94) (108) (361)

31 December 2010 4,649 2,652 3,916 155 134 11,506

Accumulated depreciation

31 December 2009 - 42 1,710 95 - 1,847

Decrease from disposal of a subsidiary

company - - (2) (1) - (3)

Transfer/disposals - (3) (244) (94) - (341)

Depreciation for the year - 162 794 60 - 1,016

31 December 2010 - 201 2,258 60 - 2,519

Allowance for impairment

31 December 2009 1 - - - - 1


companies - - - - - -

Increase (decrease) during the year (1) - 1 - - -

31 December 2010 - - 1 - - 1

Net book value

31 December 2010 4,649 2,451 1,657 95 134 8,986

Depreciation charge for the year 1,016


70




Land

Buildings

and buildings

improvement

Furniture,

fixtures and

equipment Vehicles

Assets

under

installation Total

Cost

31 December 2010 475 371 2,572 105 13 3,536

Received from Entire Business Transfer 4,100 1,921 756 8 114 6,899

Additions 43 22 197 5 50 317

Transfers/disposals - - 15 (8) (33) (26)

31 December 2011 4,618 2,314 3,540 110 144 10,726


31 December 2010 - 48 1,736 62 - 1,846

Transfers/disposals - - (17) (8) - (25)

Depreciation for the year - 52 470 18 - 540

31 December 2011 - 100 2,189 72 - 2,361

Net book value

31 December 2011 4,618 2,214 1,351 38 144 8,365

Depreciation charge for the year 540

(Unit: Million Baht) Separate financial statements


Land

Buildings

and

buildings

improvement

Furniture,

fixtures and

equipment Vehicles

Assets under

installation Total

Cost

31 December 2009 426 331 2,456 101 17 3,331

Additions 54 40 127 15 13 249

Transfers/disposals (5) - (11) (11) (17) (44)

31 December 2010 475 371 2,572 105 13 3,536


31 December 2009 - 31 1,295 54 - 1,380

Transfers/disposals - - (20) (11) - (31)

Depreciation for the year - 17 461 19 - 497

31 December 2010 - 48 1,736 62 - 1,846


31 December 2009 1 - - - - 1

Decrease during the year (1) - - - - (1)

31 December 2010 - - - - - -

Net book value

31 December 2010 475 323 836 43 13 1,690

Depreciation charge for the year 497


71

As at 31 December 2011, the Bank and its subsidiaries have vehicles acquired under

financial leases with net book values amounting to approximately Baht 39 million. In

addition, the Bank and its subsidiaries have office equipment and vehicles which have

been fully depreciated but are still in use. The gross carrying amount before deducting

accumulated depreciation and allowance for impairment loss, amounting to approximately

Baht 1,330 million (separate financial statements: Baht 31 million and Baht 1,016 million,

respectively).

18. Intangible assets




Intangible

assets from

business

combination

Computer

software

Membership

fees for

Thailand

Futures

Exchange and

others

Computer

software under

development Total

Cost

31 December 2010 4,100 905 4 163 5,172

Increase from purchase of a

subsidiary company - 2 - 6 8

Decrease from disposal of a

subsidiary company - (22) - - (22)

Additions - 341 - 233 574

Transfers/disposals - (36) 3 (222) (255)

31 December 2011 4,100 1,190 7 180 5,477

Accumulated amortisation

31 December 2010 137 227 3 - 367



Disposals - (258) 3 - (255)

Amortisation for the year 465 169 1 - 635

31 December 2011 602 134 7 - 743


31 December 2010 - - - - -

Increase during the period - 27 - - 27



31 December 2011 - 25 - - 25

Net book value

31 December 2011 3,498 1,031 - 180 4,709

Amortisation expenses for the year 635

Remaining amortisation period

(years) 8.3 years 0-10 years 0-1 years -


72




Intangible

assets from

business

combination

Computer

software

Membership

fees for

Thailand

Futures

Exchange and

others

Computer

software under

development Total

Cost

31 December 2009 - 492 7 116 615

Increase from purchase of

subsidiary companies - 253 1 39 293

Additions/increase due to

business combination 4,100 65 - 109 4,274

Transfer - 101 - (101) -

Disposals - (6) (4) - (10)

31 December 2010 4,100 905 4 163 5,172


31 December 2009 - 134 5 - 139

Increase from purchase of

subsidiary companies - - - - -

Disposals - (5) (4) - (9)

Amortisation for the year 137 98 2 - 237

31 December 2010 137 227 3 - 367

Net book value

31 December 2010 3,963 678 1 163 4,805



73




Intangible assets

from business

combination

Computer

software

Computer

software under

development Total

Cost

31 December 2010 - 501 99 600

Increase from Entire Business Transfer 3,613 238 - 3,851

Additions - 300 225 525

Transfer - 160 (160) -

31 December 2011 3,613 1,199 164 4,976


31 December 2010 - 115 - 115

Amortisation for the year 115 71 - 186

31 December 2011 115 186 - 301


31 December 2010 - - - -

Increase during the year - 25 - 25

31 December 2011 - 25 - 25

Net book value

31 December 2011 3,498 988 164 4,650


Remaining amortisation period (years) 8.3 years 0 – 9.9 years -




Computer

software

Computer software

under development Total

Cost

31 December 2009 390 113 503

Additions 27 70 97

Transfer 84 (84) -

31 December 2010 501 99 600


31 December 2009 72 - 72

Amortisation for the year 43 - 43

31 December 2010 115 - 115

Net book value

31 December 2010 386 99 485



74

As at 31 December 2011, the Bank and its subsidiaries have computer software which

have been fully amortised but are still in use with original costs, before deducting

accumulated amortisation, amounting to approximately Baht 40 million (separate financial

statement: Baht 7 million).

19. Goodwill

As at 31 December 2011 and 2010, goodwill stated in the consolidated financial

statements are as follows.



2011 2010 2011 2010

Goodwill - beginning of the year 15,750 10 - -

Increase during the year 2010 - 15,740 15,740 -

Goodwill - ending of the year 15,750 15,750 15,740 -

20. Other assets (Unit: Million Baht)

Consolidated


Separate


2011 2010 2011 2010

Accrued premium insurance income 440 444 - -

Other receivables 1,553 949 1,547 281

Accrued interest and dividend income

receivables 1,052 1,024 725 311

VAT refundable 57 676 48 670

Prepaid leasehold rights 392 411 388 208

Other receivables - VAT paid in advance for

customers 197 172 184 172

Suspense accounts between head office and

branches - 326 - 183

Deposit 276 331 255 173

Estimated insurance claims recoveries 264 187 - -

Receivable from clearing house 25 391 - -

Deposit from derivative contracts 357 148 357 100

Others 817 645 578 125

Total 5,430 5,704 4,082 2,223

Less: Allowance for impairment (307) (575) (257) (29)

Other assets - Net 5,123 5,129 3,825 2,194


75

21. Deposits

21.1 Classified by type of deposits




2011 2010 2011 2010

Current 7,129 7,222 7,227 2,487

Saving 169,196 181,350 170,386 87,765

Promissory notes 61 61 61 61

Certificates of deposit 2 5,297 2 -

Fixed deposits

- Less than 6 months 52,172 154,231 86,450 68,894

- 6 months and up to 1 year 133,560 39,394 133,560 16,737

- Over 1 year 73,920 145,101 73,932 66,847

Total deposits 436,040 532,656 471,618 242,791

21.2 Classified by currency and countries



2011 2010


Baht 435,796 1 435,797 532,253 1 532,254

US Dollar 84 20 104 160 25 185

Other currencies 22 117 139 90 127 217

Total 435,902 138 436,040 532,503 153 532,656



2011 2010


Baht 471,374 1 471,375 242,614 - 242,614

US Dollar 84 20 104 24 13 37

Other currencies 22 117 139 35 105 140

Total 471,480 138 471,618 242,673 118 242,791


76

22. Interbank and money market items (liabilities)



2011 2010


Domestic

Bank of Thailand and the FIDF - 3,065 3,065 1,427 2,601 4,028


Specialised financial institutions 3,100 7,234 10,334 24 3,206 3,230

Other financial institutions 17,015 9,705 26,720 14,361 6,635 20,996


Foreign

US Dollar 3 8,599 8,602 81 6,832 6,913

Euro - - - - 24 24

Baht currency 241 457 698 95 262 357

Total foreign items 244 9,056 9,300 176 7,118 7,294

Total 21,059 39,092 60,151 16,162 24,383 40,545



2011 2010


Domestic

Bank of Thailand and the FIDF - 3,064 3,064 - 2,600 2,600


Specialised financial institutions 3,100 7,234 10,334 - 3,206 3,206

Other financial institutions 17,420 9,705 27,125 11,176 3,885 15,061


Foreign

US Dollar 3 8,599 8,602 61 5,928 5,989

Euro - - - - 24 24

Baht currency 241 457 698 95 262 357

Total foreign items 244 9,056 9,300 156 6,214 6,370

Total 21,445 37,838 59,283 11,351 18,355 29,706


77

As at 31 December 2011, a subsidiary company has loans from financial institutions that

require it to comply with certain conditions, as summarised follows.

(a) A long-term loans amounting to Baht 773 million, repayable in 48 monthly installments

from the date of loan drawdown, with interest charged at the average MLR less a

fixed percentage per annum, payable monthly. The loans are secured by the

assignment of collection rights over hire purchase receivables of the subsidiary

company with a value of not less than 125 percent of the loan balances, and the

transfer of ownership of the vehicles for which collection rights are assigned, as well

as the assignment of collection rights over deposit accounts and related interest of the

subsidiary company. In addition, the subsidiary has to maintain the terms and

conditions as specified in the loan agreement i.e. to maintain a debt to equity ratio of

not more than 8:1 and to maintain non-performing receivables at not more than 10

percent of total hire purchase receivables.

(b) A long-term loans amounting to Baht 275 million, repayable in 36 monthly installments

from the date of loan drawdown, with interest charged at fixed interest rate per

annum, payable monthly. The loan is secured by the assignment of collection rights

over hire purchase/financial lease receivables of the subsidiary company, and the

transfer of ownership of vehicles, with a value of not less than 110 percent of the loan

balances that were drawn down. In addition, the subsidiary has to maintain the terms

and conditions as specified in the loan agreement i.e. to maintain a debt to equity ratio

of not more than 8:1.

(c) A long-term loans amounting to Baht 6 million, repayable in 42 monthly installments

from the date of loan drawdown, with interest charged at the average MLR less a

fixed percentage per annum, payable monthly. The loans are secured by the

assignment of collection rights over hire purchase receivables of the subsidiary

company with a value of not less than 125 percent of the loan balances, and the

transfer of ownership of the vehicles for which collection rights are assigned, as well

as the assignment of collection rights over deposit accounts and related interest of the

subsidiary company. In addition, the subsidiary has to maintain the terms and

conditions as specified in the loan agreement i.e. to maintain a debt to equity ratio of

not more than 8:1 and to maintain non-performing receivables at not more than 10

percent of total hire purchase receivables.


78

23. Debt issued and borrowings

As at 31 December 2011 and 2010, the balance of debt issued and domestic borrowings,

which stated in Baht, are as follows:


Interest rate Consolidated Separate

per annum (as at financial statements financial statements

Type of borrowings 31 December 2011) Maturity date 2011 2010 2011 2010

Perpetual subordinated hybrid bonds

issued under Tier I (a)

8.60 percent Dissolution 7,130 7,130 7,130 7,130

Subordinated hybrid bonds issued

under Tier II (b)

5.25 percent 2019 and 2024 5,000 5,000 5,000 5,000

Subordinated debentures issued

under Tier II (c - f)

5.00 - 5.50 and 6.00

percent

2015 - 2020 23,000 23,000 23,000 13,000

Bills of exchange 0 - 3.25 percent At call 57 11 56 1

Bills of exchange 0.50 - 4.65 percent 2012 - 2013 217,999 139,574 222,148 106,961

Promissory note 4.75 percent At call 942 - - -

Borrowings - Department of

Alternative Energy Development

and Efficiency

0 - 0.50 percent 2012 - 2017 169 234 169 -

Total debt issued and borrowings 254,297 174,949 257,503 132,092

(a) On 22 April 2010, the Bank issued 7,130,000 name registered of perpetual, non-

cumulative, subordinated, hybrid Tier 1 bonds, with a face value of Baht 1,000 each, and

sold them to two major shareholders of the Bank. The bonds mature upon dissolution or

liquidation of the Bank. The bonds are unsecured and non-convertible and bear interest at

a rate equal to the highest interest rate for a six-month fixed deposit plus 6 percent per

annum, payable semi-annually. The Bank has a call option to early redeem the bonds at

par if the condition specified are met.

(b) On 24 July 2009, the Bank issued 5,000,000 name registered subordinated hybrid bonds,

unsecured, unconvertible debentures with debenture holders’ representative, with a face

value of Baht 1,000 each. Of these, 3.5 million units mature in 2019 and bear interest at

rate of 5.25 percent per annum for the first five years, and 5.5 percent per annum for the

sixth to tenth years, while 1.5 million units mature in 2024 and bear interest at rate of 5.25

percent per annum for the first five years, 6.0 percent per annum for the sixth to tenth

years and 6.5 percent per annum for the eleventh to fifteenth years, payable quarterly.

The Bank has a call option to early redeem these debentures at par and has option to

postpone principal and/or interest payment date if the conditions as specified are met.


79

(c) On 9 May 2008, the Bank issued 5,000,000 name registered subordinated, unsecured,

unconvertible debentures with no debenture holders’ representative, with a face value of

Baht 1,000 each. The debentures mature in 2015 and bear interests at rate of 5.1 percent

per annum for the first three years, and 6 percent per annum for the fourth to seventh

years, payable quarterly.

(d) On 3 April 2009, the Bank issued 2,000,000 name registered subordinated, unsecured,

unconvertible debentures with debenture holders’ representative, with a face value of Baht

1,000 each. The debentures mature in 2019 and bear interest at fixed interest rates of

5.25 percent per annum for the first three years, 5.75 percent per annum for the fourth to

seventh years, and 6.5 percent per annum for the eighth to tenth years, payable quarterly.

The Bank has a call option to early redeem these debentures at par if the conditions

specified are met.

(e) On 2 April 2010, the Bank issued 6,000,000 name registered subordinated, unsecured,

unconvertible debentures with debenture holders’ representative, with a face value of Baht

1,000 each. The debenture mature in 2020 and bear interests at fixed interest rate of 5

percent per annum for the first five years and 5.5 percent per annum for the sixth to tenth

years, payable quarterly. The Bank has a call option to early redeem these debentures at

par if the conditions specified are met.

(f) On 19 June 2009, SCIB issued 10,000,000 unsecured subordinated debentures with a

face value of Baht 1,000 each. The debentures mature in 2019 and bear interests at fixed

interest rates of 5.50 percent per annum for the first three years, 6.00 percent per annum

for the fourth to seventh years, and 6.50 percent per annum for the eighth to tenth years.

Interest is payable quarterly. SCIB has a call option to early redeem these debentures at

par if the conditions specified are met. On 20 June 2011, SCIB early redeemed all

debentures at par value with no gain (loss) on the transaction. Thanachart Bank has issue

debentures to replace these SCIB’s debentures with the same interest rates, terms, and

conditions. The BOT has given approval in principle to counting such subordinated

debentures as Tire II of Thanachart Bank when the entire business transfer between

Thanachart Bank and SCIB is completed. This is in accordance with the BOT’s letter for

the entire business of SCIB.


80

24. Provisions


Consolidated financial statement


Loss from

litigation

Employee

benefits

Obligations of

off-balance Others Total

Balance as at 1 January 2011 89 43 285 483 900

The cumulative effect of the changes

in the accounting policy for

employee benefits - 2,272 - - 2,272


company - 3 - - 3

Increase during the year 2 360 39 90 491


subsidiary company (1) (3) - - (4)

Utilised (1) (387) - (57) (445)

Reversal of provisions (4) (335) (54) - (393)

Balance as at 31 December 2011 85 1,953 270 516 2,824




Loss from

litigation

Obligations of off-

balance Others Total

Balance as at 1 January 2010 18 - 9 27


company 60 420 290 770

Increase during the year 11 - 297 308

Utilised - - (10) (10)

Reversal of provisions - (135) (60) (195)

Balance as at 31 December 2010 89 285 526 900


81


Separate financial statement


Loss from

litigation

Employee

benefits

Obligations

of off-

balance Others Total

Balance as at 1 January 2011 19 2 - 92 113

The cumulative effect of the changes

in the accounting policy for

employee benefits - 356 - - 356

Employee benefits for staff transferred

from SCIB - 1,395 - - 1,395

Increase from entire business transfer 64 259 231 402 956

Increase during the year 1 50 39 18 108

Utilised - (54) - - (54)

Reversal of provisions - (253) - - (253)

Balance as at 31 December 2011 84 1,755 270 512 2,621




Loss from

litigation Others Total

Balance as at 1 January 2010 18 4 22

Increase during the year 1 94 95

Utilised - (4) (4)

Balance as at 31 December 2010 19 94 113

Employee Benefits

Employee benefits under defined benefit plans recognised in part of profit or loss in the

statements of comprehensive income for the year ended 31 December 2011 consist of the

followings:


Consolidated financial

statement

Separate financial

statement

2011 2011

Current service cost 149 82

Interest cost 81 41

Loss on curtailment (160) -

Termination benefits 337 -

Actuarial gain (47) (73)

Total employee benefits 360 50


82

The principal actuarial assumptions used to calculate the defined benefit obligations are as

follows:

(Percent per annum)


statement

Separate financial

statement

2011 2011

Discount rate 4.07 - 4.70 4.09

Future salary increase rate 6.00 - 6.50 6.00

Average staff turnover rate (depending on age) 0.00 - 42.11 0.85 - 21.51

Inflation rate 3.00 -

During the year 2011, Thanachart Bank received the transfer of 6,368 employees from

SCIB, this accorded with a resolution passed by a Board of Directors’ meeting of

Thanachart Bank and is approved by the BOT. SCIB also transferred employee benefits

liabilities related to the transferred employees amounting to Baht 1,395 million to

Thanachart Bank, together with another Baht 337 million of accrued employee expenses.

Under the employee transfer agreement, rights and benefits of employees will be

determined counting consecutively from their existing length of service.

25. Insurance contract liabilities



statement

Separate financial

statement

2011 2010 2011 2010

Life policy reserve 29,831 25,961 - -

Loss reserve and outstanding claims 3,441 1,141 - -

Unearned premium reserve 2,659 2,461 - -

Other liabilities under insurance policies 223 211 - -

Total 36,154 29,774 - -

Subsidiaries presented life policy reserve under long-term insurance contracts at the

higher amount of the net level premium reserve method (NPV) and the gross level

premium method (GPV). As a result of this change, life insurance policy reserve liabilities

of a subsidiary company as at 31 December 2011 was increased by Baht 649 million,

which was recognised in profit or loss.


83

From July to December 2011, there was widespread flooding in Thailand. The floods have

an effect to the parties insured by the subsidiary companies. However, the subsidiary

companies have assessed and recorded the impact of this situation in their financial

statements. They believe that no further significant loses will be incurred.

26. Other liabilities



2011 2010 2011 2010

Other payables 1,253 912 1,038 249

Suspense cash received from account

receivables 435 731 435 731

Insurance premium payable 69 83 208 196

Unearned income from hire purchase 300 163 300 163

Deposit from derivative contracts - 1,762 - 348

Provision for income tax 330 568 330 568

Accrued interest payable 3,267 1,852 3,413 1,084

Corporate income tax payable 2,431 2,327 - 999

Accrued expense 3,855 3,137 3,078 1,421

Payable from clearing house 306 98 - -

Others 2,857 2,159 1,977 372

Total other liabilities 15,103 13,792 10,779 6,131

27. Share capital

During 8 - 19 April 2010, the Bank called up additional paid-up share capital of

3,579,045,631 shares with a par value of Baht 10 totaling Baht 35,790,456,310 and

registered an additional share capital on 30 April 2010, and as a result the Bank had

issued and paid-up share capital equals to Baht 55,136,649,030. The parent company

exercised both its own entitlement and the unexercised entitlement of the minority

shareholders, and as a result the parent company increased its shareholding from 50.92

percent to 50.96 percent.


84

28. Other components of equity



2011 2010 2011 2010

Surplus from business combination under

common control (123) (123) - -

Revaluation surplus (deficit) on

investments

Revaluation surplus on investments

Available-for-sale investments

Debt instruments 364 399 287 254

Equity instruments 488 742 143 70

Total 852 1,141 430 324

Revaluation deficit on investments

Available-for-sale investments

Debt instruments (252) (119) (184) (60)

Equity instruments (4) (3) (1) -

Held-to-maturity investments (transfer from

available-for-sale investments) (3) (71) (34) (94)

Total (259) (193) (219) (154)

Total revaluation surplus (deficit) on

investments 593 948 211 170

Share of other comprehensive income of

associates 143 323 - -

Total 613 1,148 211 170

29. Statutory reserve

Pursuant to Section 116 of the Public Limited Companies Act B.E. 2535, the Bank is required to set aside to a statutory reserve at least 5 percent of its net profit after deducting accumulated deficit brought forward (if any), until the reserve reaches 10 percent of the registered capital. The statutory reserve is not available for dividend distribution.

As at 31 December 2011, the Bank allocated Baht 333.4 million of net income for the year 2011 to the statutory reserve (2010: Baht 285.9 million).


85

30. Capital funds

The primary objectives of the Bank’s capital management are to maintain the Bank’s ability to continue as a going concern and to maintain a capital adequacy ratio in accordance with the Act on Undertaking of Banking business B.E. 2551.

As at 31 December 2011 and 2010, capital funds of the Bank consist of the following:


2011 2010

Tier I

Issued and fully paid up share capital 55,137 55,137

Share premium 2,101 2,101

Perpetual subordinated hybrid bonds (Hybrid Tier I) 7,130 7,130

Statutory reserve 968 537

Retained earnings - unappropriated 12,042 6,430

Total 77,378 71,335

Less: goodwill (15,740) -

Total 61,638 71,335

Tier II

Subordinated debentures 26,000 17,000

Reserve for assets classified as normal 3,391 1,532

Total 29,391 18,532

Total Tier I and Tier II 91,029 89,867

Add: Net revaluation surplus on investment in equity securities 64 31

Total capital funds 91,093 89,898

On 25 August 2011, the Board of Directors’ meeting of Thanachart Bank passed a

resolution to allocate Baht 312 million of net income for the six-month period ended 30

June 2011 amounting to statutory reserve. The remaining net income of such period,

amounting Baht 5,930 million, was allocated as capital funds of the Bank.

In addition, the BOT granted a waiver for Thanachart Bank to hold more SCIB’s shares

than permitted by law, for the purposes of the business transfer. The BOT also permitted

the Bank not to include SCIB in the financial business group until the date of completion of

liquidation, while the computation of the ratio of the capital to risk assets and contingent

liabilities includes the assets and contingent liabilities of SCIB until the date of SCIB return

its banking license.


86

As at 31 December 2011 and 2010, the Bank’s capital ratios, calculated based on the

BOT’s regulation relating to the calculation of capital funds announced by the BOT, and

including additional permission from the BOT, are as follows:

2011 2010

Minimum Minimum

Capital ratio requirement Capital ratio requirement

of the Bank by BOT of the Bank by BOT

Total capital to risk assets (percent) 13.72 8.50 14.75 8.50

Total Tier I to risk assets (percent) 9.28 4.25 11.71 4.25

The Bank will disclose qualitative and quantitative information regarding capital

maintenance as at 31 December 2011 in accordance with the Notification of the Bank of

Thailand Re: Public Disclosure of Capital Maintenance Information for Commercial Banks

on its website at www.thanachartbank.co.th, within April 2012. In addition, the Bank had

disclosed the latest capital maintenance information as at 30 June 2011 on its website

since October 2011.

31. Dividends

Dividends Approved by Total dividends Dividend per share

Million Baht Baht

Dividends on net income for

the year 2010

Annual General Meeting of the

Shareholders on 7 April 2011 2,205 0.40

Dividends on net income for

the year 2009

Annual General Meeting of the

Shareholders on 7 April 2010 1,083 0.56

32. Interest income

Interest income for the years ended 31 December 2011 and 2010 consisted of the

following:




2011 2010 2011 2010

Interbank and money market items 2,237 1,054 1,365 403

Investments and trading transactions 78 82 24 13

Investments in debt securities 4,114 3,653 2,023 1,708

Loans 20,774 14,760 9,413 4,336

Hire purchase and financial lease 17,011 15,232 16,722 14,937

Total interest income 44,214 34,781 29,547 21,397


87

33. Interest expenses

Interest expenses for the years ended 31 December 2011 and 2010 consisted of the

following:




2011 2010 2011 2010

Deposits 8,973 5,960 5,766 3,512

Interbank and money market items 1,289 506 1,555 293

Contribution fee to the Deposit Protection

Agency 1,955 1,914 1,132 1,034

Issues debt instruments

- Subordinated debentures 2,145 1,727 1,889 1,312

- Others 5,432 1,455 4,606 1,217

Borrowings 1 3 - -

Fees and services expense on borrowing 3 1 11 7

Total interest expenses 19,798 11,566 14,959 7,375

34. Fees and service income

Fees and service income for the years ended 31 December 2011 and 2010 consisted of

the following:




2011 2010 2011 2010

Fees and service income

Acceptance, aval and guarantees 271 228 102 46

ATM and electronic banking services 669 575 161 104

Hire purchase fee income 901 857 875 830

Insurance brokerage fee income 222 226 982 733

Management fees 479 533 6 5

Credit card fee 698 395 366 96

Others 618 555 412 216

Total fees and service income 3,858 3,369 2,904 2,030

Fees and service expenses (500) (519) (144) (45)

Net fees and service income 3,358 2,850 2,760 1,985


88

35. Gains on trading and foreign exchange transactions

Gains on trading and foreign exchange transactions for the years ended 31 December

2011 and 2010 consisted of the following:




2011 2010 2011 2010

Foreign exchange and derivatives relating to

foreign exchange 871 360 518 132

Foreign exchange and derivatives relating to

interest rate 1 1 - -

Debt securities 21 (6) 46 12

Equity securities (5) 211 - -

Others 3 4 - -

Total 891 570 564 144

36. Gains (losses) on investments

Gains (losses) on investments for the years ended 31 December 2011 and 2010 consisted

of the following:


Consolidated


Separate


2011 2010 2011 2010

Gains (losses) on disposal

Available-for-sale securities 182 267 81 108

Held-to-maturity securities (1) 2 - -

Other investments 80 - (17) -

Investments in associated and subsidiary

companies 87 24 - 22

Gain on revaluation of investment at equity

from business combination 33 - - -

Reversal of impairment on general investments

(losses) (41) 21 (4) 18

Gain on transfer of investments 372 - - -

Total 712 314 60 148


89

During the year, a subsidiary company has transferred investment which classified as held-to-maturity debt securities amounting to Baht 8,439 million to be trading in order to comply with the measurement of liabilities reserve for long-term insurance contracts of which the value of the liabilities reserve is depend on the changes in discounted market interest rate. As a result of this transfer, a gain of Baht 329 million was recognised in profit or loss. The subsidiary company also transferred investments classified as available-for-sale securities amounting to Baht 2,000 million to be trading with a gain on transfer of Baht 43 million.

37. Directors’ remuneration

Directors’ remuneration represents the benefits paid to the directors of the Bank and

public subsidiary companies in accordance with Section 90 of the Public Limited

Companies Act, exclusive of salaries and related benefits payable to directors who hold

executive positions but including the payment of remuneration amounting to Baht 19

million to the Bank’s and its subsidiaries’ directors, which was approved by the Annual

General Meeting of Shareholders of the Bank and its subsidiaries.

38. Impairment loss of loans and debt securities

Impairment loss of loans and debt securities for the years ended 31 December 2011 and

2010 consisted of the following:




2011 2010 2011 2010

Bad debts and doubtful accounts

Loans to customers 2,548 2,035 1,388 (1) 1,159

Interbank and money market items 31 38 59 (1) -

Amortisation of revaluation allowance for

debts restructured during the year (40) (2) (40) (2)

Loss from debt restructuring (reversal) (35) (2) 78 15 123

Total 2,504 2,149 1,422 1,280

(1) Net of gain on revaluation adjustment on the receivables which were transferred from SCIB after deduction of additional allowance for

doubtful accounts for those receivables. (2) Net of gain on revaluation adjustment on the receivables which were transferred from SCIB after deduction of additional loss on debt

restructuring for those receivables.


90

39. Income tax expense

Corporate income tax was calculated on profit for the year, after adding back and

deducting with expenses and provisions which are disallowable for tax computation

purposes and deducting income which is exempted for tax computation purposes.

The Bank has no corporate income tax liability for the year 2011 since after adding back

and deducting expenses and/or income which are disallowed for tax computation

purposes, there is a net loss. Therefore, corporate income tax that was paid during the

year 2011 will be presented as “Prepaid corporate income tax” in the statement of financial

position.

40. Components of other comprehensive income

Components of other comprehensive income for the years ended 31 December 2011 and

2010 of the following:


Consolidated


Separate


2011 2010 2011 2010

Other comprehensive income

Available-for-sale investments:

Unrealised gains (losses) during the year (495) 421 (40) (152)

Less: Reclassification of adjustment for the realised

losses that included in profit or loss 182 267 81 108

Gain from reclassified type of investments (43) - - -

(356) 688 41 (44)

Share of other comprehensive income in associated

companies (loss) (180) 204 - -

Other comprehensive income (loss) for the year (536) 892 41 (44)


91

41. Earnings per share

Basic earnings per share is calculated by dividing profit for the years attributable to equity

holders of the Bank (excluding other comprehensive income) by the weighted average

number of ordinary shares in issue during the year.



2011 2010 2011 2010

Profit for the period (Million Baht) 7,671 8,777 6,668 5,719

Weighted average number of shares (Million shares) 5,514 4,563 5,514 4,563

Earnings per share (Baht/share) 1.39 1.92 1.21 1.25

42. Provident fund

The Bank, its subsidiaries and its employees have jointly established a provident fund in

accordance with the Provident Fund Act B.E. 2530. Employees contributed to the fund

monthly, at rates of 3 -10 percent of their basic salaries, and the Bank and its subsidiaries

contributed to the fund at stipulated rates. The fund will be paid to the employees upon

termination of employment in accordance with the fund rules. During the year 2011, the

Bank and its subsidiaries contributed Baht 443 million to the fund (separate financial

statements: Baht 253 million).


92

43. Related party transactions

During the years, the Bank and its subsidiaries had significant business transactions with

related parties. These transactions have been concluded on commercial terms and bases

agreed upon in the ordinary course of businesses between the Bank and those

companies. Below is a summary of those transactions.



Consolidated


Separate

financial statements Transfer pricing policy

2011 2010 2011 2010 (For the year 2011)

Transactions occurred during

the years

Parent company

Purchase of investment in

subsidiary company

- 3,411 - 3,411

Purchase of debt securities 158 15,463 158 15,417 At market price

Sales of debt securities 13,792 38,856 13,792 38,856 At market price

(Related gain) 1 3 1 3

Purchase of subordinated

debentures

- 3,057 - 3,057

Sales of subordinated debentures - 3,636 - 3,636

Purchase of fixed assets and other

assets

100 109 100 109 At the rate agreed under the contract

which based on appraisal value

Interest income 4 6 - - At interest rate of 4.7 - 9.15 percent per

annum

Fee and service income 1 14 - 2

Insurance/Life insurance income - 1 - -

Income on supporting service 26 39 26 39 At the rate agreed under the service

contract

Other income 2 10 - -

Interest expenses 300 262 300 262 At interest rate of 0.75 - 2.90 and 8.00

percent per annum

Rental expenses 115 152 93 127 At the rate agreed under the rental

contracts

Other expenses 48 43 44 41

Dividend payment 1,124 552 1,124 552 As declared


93



Consolidated


Separate


2011 2010 2011 2010 (For the year 2011)

Transactions occurred during the

years (continued)


Purchase of debt securities 35,358 58,436 7,057 4,953 At market price


(Related gain (loss)) (9) 18 41 4

Purchase of investments in equity

instruments

143 - 143 - At market price

Purchase/sales of forward

exchange contracts

6,147 1,227 6,147 1,227 At market price

(Related gain) 21 - 21 -

Purchase of fixed assets and other

assets

- 14 - 3

Sales of fixed assets - 14 - -

Consulting fee on purchase of

investment in subsidiary

- - - 34

Interest income - - 196 80 At interest rate of 2.45 – 4.10 and 6.13

– 7.90 percent per annum

Dividend income - - 1,532 525 As declared

Fee and service income - - 153 53 At the rate agreed under the service

contract

Discount income on insurance

premium

- - 888 658

Income on supporting service - - 1,018 222 At the rate agreed under the service

contract

Other income - - - 8

Interest expenses - - 661 40 At interest rate of 0.25 – 4.40 percent

per annum

Fee and service expenses - - 10 3 At the rate agreed under the service

contracts

Rental expenses - - 7 6 At the rate agreed under the rental

contracts

Other expenses - - 167 164


94



Consolidated


Separate


2011 2010 2011 2010 (For the year 2011)


years (continued)

Associated companies


subsidiary company

- 161 - 161

Purchase of debt securities 80 350 - 350 At market price

Sales of debt securities 360 17,046 300 16,492 At market price

Sales of investment in a subsidiary

company

- 213 - 213

(Related gain) - 24 - 22

Interest income 369 199 59 - At interest rate of 2.25 - 3.25 and 3.75 -

7.25 percent per annum

Fee and service income 7 14 - - At the rate agreed under the service

contract

Non-life insurance/Life insurance

income

- 1 - -

Other income - 2 - -

Interest expenses 82 70 81 69 At interest rate of 0.25 - 2.80 and 5.25

percent per annum


contracts

Insurance premium/life insurance

premium expenses

1 4 - - At the rate agreed under the contract


Related companies


subsidiary company

- 6,228 - 6,228

Purchase of debt securities 1,139 3,229 1,139 3,229


(Related gain) 2 1 2 1

Purchase/sales of forward

exchange contracts

443,693 179,266 437,552 179,266 At market price

(Related loss) (114) (9) (59) (9)

Sales of fixed assets and other

assets

- 58 - 58


Sales of property foreclosed - 373 - 373



95



Consolidated


Separate


2011 2010 2011 2010 (For the year 2011)


years (continued)

Related companies (continued)

Interest income 658 286 241 113 At interest rate of 2.00 - 7.90 percent

per annum

Dividend income 33 47 2 3 As declared

Fee and service income 7 19 - - At the rate agreed under the service

contract

Insurance/Life insurance income 4 - - -

Income on supporting service 17 17 17 17 At the rate agreed under the service

contract

Other income 24 33 2 2

Interest expenses 431 297 355 262 At interest rate of 0.125 – 6.10, 7.40 ,

8.00 and 8.60 percent per annum


contracts

Insurance premium/life insurance

premium expenses

- 125 - -

Fee and service expenses 1 91 - - At the rate agreed under the contract


Dividend payment 1,113 558 1,081 531 As declared

In addition to the transactions mentioned above, during the year ended 31 December

2011, SCIB transferred non-performing loans amounting to Baht 9,062 million and

properties foreclosed amounting to Baht 3,083 million to TS Asset Management Co., Ltd.,

a subsidiary company. The transfer prices are mutually agreed with reference to financial

advisors have opinion that they are fair values.


96

The outstanding balances of the above transactions during the years ended 31 December

2011 and 2010 have been shown at the average balance at the end of each month as

follows:




2011 2010 2011 2010

Parent company

Loans to customers 19 22 - -

Deposits 161 442 161 441

Debt issued and borrowings 3,896 5,901 3,896 5,901


Interbank and money market items (assets) - - 397 3,931

Loans to customers - - 4,470 1,760

Deposits - - 3,646 466

Interbank and money market items (liabilities) - - 18,045 626

Debt issued and borrowings - - 2,179 1,010


Loans to customers 7,512 5,757 2,434 -

Deposits 297 386 166 253


Related companies

Interbank and money market items (assets) 1,626 2,874 435 287

Loans to customers 17,481 9,131 6,745 3,538

Deposits 1,266 4,536 1,087 4,269

Interbank and money market items (liabilities) 7,581 6,598 6,922 6,478



97

As at 31 December 2011 and 2010, the significant outstanding balances of the above

transactions are as follows:



2011

Assets Liabilities

Interbank

and money

market

items

Investments

- debt

securities

Loans to

customers

and interest

receivables

Other

assets Deposits

Interbank

and money

market

items

Debt

issued and

borrowings

Other

liabilities Commitments

Parent company

Thanachart Capital Plc. - - 17 24 71 - 3,644 87 -


MBK Plc. - - - 8 93 - 1,500 - -

Siam Samsung Life

Insurance Co., Ltd. - - - - 26 - 100 - -

Related companies

Seacon Development Plc. - - 591 1 - - - - -

Thai Hua Rubber Plc. - - 1,993 - 195 - 150 1 10

Synphaet Co., Ltd. - - 796 - 9 - - - -

The Bank of Nova Scotia 1,122 - - 26 - 7,933 3,494 102 2,580

Srithai Superware Plc. - - 577 - 15 - - - 76

Krungthai Card Plc. - 582 3,533 - 7 - - - -

Chaimongkol Refinery

Co., Ltd. - - 2,471 - - - - - 3

Other related companies - - 1,324 194 851 35 932 317 305

1,122 582 11,302 253 1,267 7,968 9,820 507 2,974


98



2010

Assets Liabilities

Interbank

and money

market

items

Investments

- debt

securities

Loans to

customers

and interest

receivables

Other

assets Deposits

Interbank

and money

market

items

Debt

issued and

borrowings

Other


Parent company

Thanachart Capital Plc. - 45 21 24 61 - 3,636 71 -


MBK Plc. - - - 9 144 - 1,800 10 30

Ratchthani Leasing Plc. - - 6,503 - 37 - - - -

Siam Samsung Life

Insurance Co., Ltd. - - - - 98 - - - -

Siam City Insurance

Co., Ltd. - - - - 98 - - - -

Related companies

Seacon Development Plc. - - 736 1 1 - - - 58

Thai Hua Rubber Plc. - - 1,777 - 191 - 150 1 1,359

Krung Thai IBJ Leasing

Co., Ltd. - - 593 - - - - - -

Advanced Info Service Plc. - 244 24 6 2,041 - 200 39 19

Synphaet Co., Ltd. - - 654 - 9 - - - 28

Government Savings Bank 4,056 - - 1 - 30 500 224 -

The Bank of Nova Scotia 435 - - 3 - 6,853 3,494 76 1,458

Krungthai Card Plc. - 964 9,344 9 4 - - - -

Wangkanai Sugar Co., Ltd. - - 1,658 - 15 - - - 48

Chaimongkol Refinery

Co., Ltd. - - 2,840 - 95 - - - 3

Other related companies 320 175 1,575 302 1,076 37 780 18 227

4,811 1,428 25,725 355 3,870 6,920 10,560 439 3,230


99



2011

Assets Liabilities

Interbank

and money

market

items

Investments

- debt

securities

Loans to

customers

and interest

receivables

Other

assets Deposits

Interbank

and money

market

items

Debt

issued and

borrowings

Other


Parent company

Thanachart Capital Plc. - - - 19 71 - 3,643 86 -


Siam City Bank Plc. - - - - 34,298 - - 85 -

Thanachart Group Leasing

Co., Ltd. - - 353 - 6 - - - -

Thanachart Securities Plc. 150 - - 3 - 55 - 7 737

Thanachart Insurance

Co., Ltd. - - - 95 241 - 1,124 170 10

Thanachart Life Assurance

Co., Ltd. - - - 57 - 215 2,000 62 -

Thanachart Broker

Co., Ltd. - - - - 114 - 140 - -

TS Asset Management

Co., Ltd. - - 9,824 12 872 - - 46 -

Siam City Life Assurance

Co., Ltd. - - - 2 - 131 885 20 -

Ratchthani Leasing Plc. - - 7,870 - 24 - - - 17

Other subsidiary

companies - - 22 22 56 5 - 67 -

Associated company

MBK Plc. - - - 8 93 - 1,500 11 -

Siam Samsung Life

Insurance Co., Ltd. - - - - 26 - 100 - -

Related companies

Seacon Development Plc. - - 591 1 - - - - -

Thai Hua Rubber Plc. - - 1,993 - 195 - 150 1 10

Synphaet Co., Ltd. - - 796 - 9 - - - -

Krungthai Card Plc. - 582 3,533 - 7 - - - -

Srithai Superware Plc. - - 577 - 15 - - - 76

The Bank of Nova Scotia 1,122 - - 21 - 7,933 3,494 89 2,580

Other related companies - - 751 157 851 34 932 115 84

1,272 582 26,310 397 36,878 8,373 13,968 759 3,514


100



2010

Assets Liabilities

Interbank

and money

market

items

Investments

- debt

securities

Loans to

customers

and interest

receivables

Other

assets Deposits

Interbank

and money

market

items

Debt

issued and

borrowings

Other


Parent company

Thanachart Capital Plc. - - - 622 60 - 3,636 70 -


Siam City Bank Plc. 25 - - - - 9 - - -

Thanachart Group Leasing

Co., Ltd. - - 934 - 9 - - - -

Thanachart Securities Plc. - - - 2 - 624 - 13 30

Thanachart Insurance

Co., Ltd. - - - 46 173 - 166 116 10

Thanachart Life Assurance

Co., Ltd. - - - 218 - 443 - 51 -

Thanachart Broker

Co., Ltd. - - - 100 127 - - - -

Other subsidiary companies - - 52 2 45 19 - 61 -

Associated company

MBK Plc. - - - 8 139 - 1,800 10 30

Related companies

Seacon Development Plc. - - 736 1 1 - - - 58

Thai Hua Rubber Plc. - - 1,677 - 153 - 150 - 1,358

Advanced Info Service Plc. - 4 23 - 2,039 - 200 3 19

Synphaet Co., Ltd. - - 654 - 9 - - - 28

Krungthai Card Plc. - - 2,013 - 4 - - - -

The Bank of Nova Scotia 430 - - 3 - 5,948 3,494 76 1,458

Other related companies 11 - 810 274 900 38 780 223 11

466 4 6,899 1,276 3,659 7,081 10,226 623 3,002

As at 31 December 2011 and 2010, the Bank has loans to subsidiary companies as

mentioned in Note 12.11 to the financial statements.

As at 31 December 2011, the Bank and its subsidiaries have investments amounting to

Baht 672 million (Baht 252 million in the separate financial statements) in related

companies in which they are related by means of members of their management being

shareholders and/or directors of those companies (2010: Baht 596 million in the

consolidated financial statements and Baht 62 million in the separate financial

statements).


101


related parties transactions with executive employees of the Bank and companies within

Thanachart Group from management level up, including related persons who together with

these employees:




2011 2010 2011 2010

Loans 49 59 45 24

Deposits 535 487 535 386

Directors and management’s remuneration

During the years 2011 and 2010 the Bank and its subsidiaries paid the following benefits to

their key management personnel, including directors, totaled 147 persons and 177 persons

respectively (the separate financial statements: 50 persons and 34 persons respectively):


Consolidated


Separate


2011 2010 2011 2010

Short-term employee benefits 597 495 254 162

Post-employment benefits 10 - 3 -

Termination benefits 26 - - -

633 495 257 162


102

44. Financial information by segment

44.1 Financial position and results of operations classified by business activity

The financial position as at 31 December 2011 and 2010, and the results of operations for

the years ended 31 December 2011 and 2010, classified by domestic and foreign

operations, are as follow:



2011

Domestic Foreign

operations operations Eliminations Total

Total assets 986,181 15,245 (115,366) 886,060

Interbank and money market items (assets) 106,642 8,066 (51,507) 63,201

Investments 145,222 7,132 (4,009) 148,345

Investments in subsidiary and associated

companies 42,552 - (41,129) 1,423


receivables 628,174 - (18,271) 609,903

Deposits 471,618 - (35,578) 436,040

Interbank and money market items (liabilities) 78,910 15,010 (33,769) 60,151

Debt issued and borrowings 258,446 - (4,149) 254,297



2010

Domestic Foreign


Total assets 928,250 10,758 (66,005) 873,003

Interbank and money market items (assets) 98,005 196 (13,141) 85,060

Investments 126,284 10,505 3,233 140,022


companies 77,219 - (75,042) 2,177


receivables 582,595 - (1,069) 581,526

Deposits 532,974 - (318) 532,656


Debt issued and borrowings 175,115 - (166) 174,949


103



2011

Domestic Foreign


Interest income 45,076 218 (1,080) 44,214

Interest expenses (20,661) (37) 900 (19,798)

Net interest income 24,415 181 (180) 24,416

Net fee and service income (losses) 4,727 (4) (1,365) 3,358

Net insurance/Life insurance income 897 - 1,231 2,128

Other operating income 12,824 39 (7,754) 5,109

Other operating expenses (21,909) - 32 (21,877)

Impairment loss of loans and debt securities (2,525) - 21 (2,504)

Corporate income tax (2,948) - - (2,948)

Income before non-controlling interests 15,481 216 (8,015) 7,682

(Unit: Million Baht) Consolidated financial statements

2010

Domestic Foreign


Interest income 35,056 274 (549) 34,781


Net interest income 23,361 227 (373) 23,215

Net fee and service income (losses) 3,992 - (1,142) 2,850

Net insurance/Life insurance income 1,447 - 905 2,352

Other operating income 5,774 15 (1,534) 4,255

Other operating expenses (17,272) (3) 452 (16,823)

Impairment loss of loans and debt securities (2,130) - (19) (2,149)

Corporate income tax (4,548) - - (4,548)

Income before non-controlling interests 10,624 239 (1,711) 9,152


104



2011

Domestic Foreign


Total assets 877,959 15,245 (15,151) 878,053

Interbank and money market items (assets) 70,048 8,066 (15,151) 62,963

Investments 107,409 7,132 - 114,541


companies 40,842 - - 40,842


receivables 604,770 - - 604,770

Deposits 471,618 - - 471,618


Debt issued and borrowings 257,503 - - 257,503


2011

Domestic Foreign


Interest income 29,519 40 (11) 29,548


Net interest income 14,560 29 - 14,589

Net fee and service income 2,760 - - 2,760

Other operating income 4,412 - - 4,412

Other operating expenses (13,671) - - (13,671)

Impairment loss of loans and debt securities (1,422) - - (1,422)

Income before non-controlling interests 6,639 29 - 6,668

The financial position as at 31 December 2010 and the results of operations for the year

then ended, per separate financial statements are the result of domestic operations only.


105

44.2 Financial positions and results of operations classified by business type

The Bank and its subsidiaries’ business operations involve 6 principal segments:

(1) Banking business; (2) Securities business; (3) Life insurance business; (4) Non-life

insurance business; (5) Asset management business; and (6) Hire purchase and finance

lease business. Below is the consolidated financial information of the Bank and its

subsidiaries by segment.



Banking

business

Securities

business

Life

insurance

business

Non-life

insurance

business

Asset

managemen

t business

Hire

purchase/

finance

lease

business

Other

busines

s Eliminations Consolidated

Interest income 43,225 194 1,143 122 273 175 125 (1,043) 44,214

Interest expenses (20,440) (17) - - (85) (98) (21) 863 (19,798)

Net interest income 22,785 177 1,143 122 188 77 104 (180) 24,416

Net fee and service income

(losses) 3,946 504 (16) (5) - 9 285 (1,365) 3,358

Net insurance income - - (317) 1,214 - - - 1,231 2,128

Other operating income 10,682 1,359 501 43 32 12 234 (7,754) 5,109

Other operating expenses (18,897) (1,397) (467) (636) (119) (28) (365) 32 (21,877)

Impairment loss of loans

and debt securities (2,706) - - - 220 (37) (2) 21 (2,504)

Corporate income tax (1,873) (170) (426) (255) (141) (21) (62) - (2,948)

Income before

non-controlling interest 13,937 473 418 483 180 12 194 (8,015) 7,682



Banking

business

Securities

business

Life

insurance

business

Non-life

insurance

business

Other

business Eliminations Consolidated

Interest income 33,961 129 829 60 304 (502) 34,781

Interest expenses (11,652) (5) - - (38) 129 (11,566)

Net interest income 22,309 124 829 60 266 (373) 23,215

Net fee and service income

(losses) 3,242 547 (120) (4) 327 (1,142) 2,850

Net insurance income - - 579 868 - 905 2,352

Other operating income 3,703 1,504 312 52 218 (1,534) 4,255

Other operating expenses (14,579) (1,438) (379) (474) (405) 452 (16,823)

Impairment loss of loans and

debt securities (2,159) - - - 29 (19) (2,149)

Corporate income tax (3,576) (216) (442) (208) (106) - (4,548)

Income before

non-controlling interests 8,940 521 779 294 329 (1,711) 9,152


106


As at 31 December 2011

Banking

business

Securities

business

Life

insurance

business

Non-life

insurance

business

Asset

management

business

Hire

purchase/

finance

lease

business

Other


Interbank and money

market items 97,346 376 359 233 872 50 321 (36,356) 63,201

Investments 114,541 223 32,814 4,776 - - - (4,009) 148,345

Investments in subsidiary

and associated

companies 40,842 667 678 303 - - 62 (41,129) 1,423

Loans to customers and

accrued interest

receivable - net 604,770 1,953 99 - 8,267 12,176 909 (18,271) 609,903

Land, premises and

equipment - net 8,365 54 155 106 - 45 17 17 8,759

Other assets 46,572 966 798 3,290 3,128 77 65 (467) 54,429

Total assets 912,436 4,239 34,903 8,708 12,267 12,348 1,374 (100,215) 886,060


As at 31 December 2010

Banking

business

Securities

business

Life

insurance

business

Non-life

insurance

business

Other


Interbank and money market items 84,277 1,684 1,263 296 197 (2,657) 85,060

Investments 103,227 767 28,794 3,801 200 3,233 140,022

Investments in subsidiary and

associated companies 75,271 763 776 347 62 (75,042) 2,177

Loans to customers and accrued

interest receivable - net 579,541 1,345 58 - 1,651 (1,069) 581,526

Land, premises and equipment -

net 8,731 79 128 19 29 - 8,986

Other assets 31,498 2,033 703 926 58 20,014 55,232

Total assets 882,545 6,671 31,722 5,389 2,197 (55,521) 873,003


107

45. Encumbrance of assets


assets, presented at book value, which are subject to restriction.


Consolidated


Separate


2011 2010 2011 2010

Investment in securities

Guarantee placed with the registrar 7,448 6,214 - -

Placed with court for stay of execution 20 283 20 20

Collateral for derivatives agreements - 190 - 190

Security for electricity usage - 13 - -

Property foreclosed

Immovable assets subject to buyback options

or first refusal rights 739 522 739 221

Immovable assets subject to purchase or sell

agreements with clients but currently being

settled in installments or through transfer of

ownership 963 1,554 923 31

9,170 8,776 1,682 462

46. Commitments and contingent liabilities

As at 31 December 2011 and 2010, significant commitments and contingent liabilities

consisted of:

46.1 Commitments (Unit: Million Baht)


2011 2010 2011 2010

Aval to bills 386 654 386 238

Guarantees of loans 1,230 422 1,230 2

Liability under unmatured import bills 1,105 571 1,105 120

Letter of credits 2,626 2,456 2,626 672

Other obligations

Committed (but not draw) overdraft 28,548 45,740 28,548 5,757

Others 21,405 24,234 21,385 5,266

Total 55,300 74,077 55,280 12,055

In addition, the Bank and its subsidiaries have commitments in respect of foreign

exchange contracts, interest rate swap contracts, cross currency and interest rate swap

contracts and gold futures, as mentioned in Note 9 to the financial statements.


108

46.2 During the years 2001 and 2002, the Bank entered into agreements to transfer non-

performing loans and receivables of approximately Baht 296 million to TAMC. The Bank is

still jointly liable for a share of the gains and losses arising from TAMC’s management of

these non-performing assets to be calculated at the end of the fifth year and tenth year,

counting from 1 July 2001. If there are losses, the Bank is liable for all initial losses up to

20 percent of the transfer price, while further losses of up to another 20 percent of the

transfer price are to be shared equally between the Bank and TAMC, and TAMC is liable

for all remaining losses. Such gains and losses will be determined based on the

accumulated value of collections made on the assets at the date of determination, minus

transfer costs and all operating expenses of TAMC, including interest on the debt

instruments issued to purchase the loans and receivables. The gain or loss cannot be

estimated at this stage, but as at 31 December 2011, the Bank has estimated its share of

the losses which may arise from the management of the non-performing assets at

approximately Baht 89 million. This amount has been presented as a part of provisions in

the statements of financial position.

46.3 The Bank has entered into agreements to sell housing loans/transfer rights to the

Secondary Mortgage Corporation, under which it is committed to compensate the

Corporation for losses from uncollected housing loans up to a maximum of 20 percent of

the valuation of the said receivables. As at 31 December 2011, its maximum obligation is

Baht 2 million.

46.4 As at 31 December 2011, the Bank and its subsidiaries have commitments to pay the

service fees in relation to property foreclosed, computer system services and other

services, including commitments in respect of office rental and related service fees under

long-term rental contracts, as follow:




Other Parent Other Parent Subsidiary

Year parties company parties company companies

2012 1,675 69 1,613 52 47

2013 1,253 9 1,196 2 -

2014 onward 4,043 1 3,609 1 -

In addition, the Bank has obligations to pay an administrative fee to a subsidiary company,

determined at actual cost plus a margin, for the period stipulated in the agreement.


109

46.5 Commitments of SCIB from transfer of business from Bangkok Metropolitan Bank Public Company Limited and transfer of non-performing assets to Sukhumvit Asset Management Company Limited

SCIB entered into a business transfer agreement with Bangkok Metropolitan Bank Plc.

(“BMB”), effective from 1 April 2002, and transferred its assets and those of BMB to

Petchburi Asset Management Co., Ltd. (“PAM”), before they were transferred to Sukhumvit

Asset Management Co., Ltd. (“SAM”). Subsequently, SCIB transferred its entire business,

including commitments and agreements with PAM and SAM, to Thanachart Bank, effective

from 1 October 2011. Thanachart Bank thus has commitments as a result of such transfer.

However, the commitments of FIDF to SCIB have been transferred to/assumed by

Thanachart Bank as the purchaser of SCIB’s shares from FIDF. As at 31 December 2011,

outstanding obligations are summarised below.

a) There was an outstanding difference of Baht 93 million, as a result of the transfer of

assets to SAM. These comprised receivables awaiting collection and the difference is

presented under the caption of “Differences as a result of assets transferred to SAM”

in the statements of financial position. Such amounts mainly relate to transfers of

guarantee claims, for which there are pending issues with regard to proof the rights of

claim or the assets transferred being qualified in accordance with the conditions set

out in the transfer agreements. Such differences are now being examined and/or

negotiated among Thanachart Bank, SAM and the FIDF for final resolution.

As at 31 December 2011, such differences consist of (i) Baht 10 million of

transactions incurred directly by SCIB, for which full allowance for doubtful debts has

been set aside, and (ii) Baht 83 million of transactions incurred by BMB. If losses

arise on the latter and collection cannot be made from SAM, the FIDF will consider

compensating for all losses from (ii). Thanachart Bank’s management believes that

no significant further losses will arise since the transfers of those assets

corresponded to the principles of the agreements made among SCIB, BMB and SAM

and the agreement given by FIDF.


110

b) SAM is re-examining certain previously transferred assets (both of SCIB and BMB) in

order to determine whether to transfer the assets back, to request price adjustments

or to request settlement together with interest. The major pending issue relates to the

proof of rights of claim over these assets.

As at 31 December 2011, the transferred assets which SAM is re-examining totaling

Baht 370 million consist of (i) Baht 28 million of transactions incurred directly by

SCIB, for which full allowance for doubtful loss has set aside under the caption of

“Provision for liabilities” in the statements of financial position, and (ii) Baht 342

million of transactions incurred by BMB. If losses arise from (ii), Thanachart Bank will

receive compensation for loss from FIDF and any adjusting transactions will be within

the limit of the funds set aside by FIDF to compensate losses in such cases,

amounting to approximately Baht 258 million. In addition, SAM is now negotiating

with Thanachart Bank to request interest payment on the assets transferred back, or

a price adjustment.

c) Lawsuits in which SCIB is involved as a result of the transfer of business from BMB

amounting to approximately Baht 11,280 million, as disclosed under contingent

liabilities in Note 47 to the financial statements.

d) Outstanding letters of guarantee.

The FIDF deposited an amount equal to the loss compensation limit with Thanachart Bank

in the FIDF’s account. Such deposit account is to compensate for losses incurred as a

result of the transfer of business from BMB, if such losses are actually incurred due to the

outstanding issues described in a), b), c) and d) above. As at 31 December 2011, the

deposit account of the FIDF with Thanachart Bank to fund the payment of compensation

for losses has an outstanding balance of approximately Baht 791 million. In addition, there

is a memorandum of agreement concerning conditions for additional loss compensation if

Thanachart Bank incurs losses in relation to the two lawsuits discussed in c), with claims

totaling Baht 9,965 million.

However, Thanachart Bank and SAM had a meeting and mutually agreed a resolution to

such pending issues. Thanachart Bank believes that no significant further losses will be

incurred, other than losses for which it has already set aside full allowance for doubtful

debts and/or amount that will compensate by FIDF.


111

46.6 Commitments arising from sale of ordinary shares of Siam City Securities

As a result of the sale of all ordinary shares of Siam City Securities in August 2011, SCIB is obligated to pay compensation to indemnify the buyer from pending lawsuits including litigation in which Siam City Securities is pursuing collection of debt amounts and/or future litigation which made claims against its debtor that arose before the disposal date of such shares. Moreover, SCIB undertakes to compensate the buyer for any expenses incurred whenever the buyer or Siam City Securities provide SCIB with written notification of reasons for such compensation, together with evidence, for up to 3 years from the share transfer date. Such commitment of SCIB has transferred to Thanachart Bank at the date of the entire business transfer. However, Thanachart Bank’s management believes that no further losses will be incurred.

47. Litigation

As at 31 December 2011, the Bank and its subsidiaries have contingent liabilities amounting to approximately Baht 24,026 million (separate financial statements: Baht 22,940 million) in respect of litigation. However, the Bank and its subsidiaries’ management have already made certain provision for contingency losses, and for the remaining portion the management believes that no losses will result and therefore no liabilities are currently recorded.

Part of the contingent liabilities of the litigation mentioned above amounting to Baht 22,446 million represents claims filed against SCIB as defendant or co-defendant in lawsuits. These comprise both lawsuits directly involving SCIB and obligations arising as a result of the transfer of business from BMB; (i) Baht 11,166 million relates to SCIB’s own lawsuits, with Baht 8,594 million of this amount relating to a tort case in which the actual loss is only Baht 202 million. The Court of First Instance has already ordered the case be dismissed and it is in the process of being reviewed by the Supreme Court. The total sum of claims in cases relating directly to SCIB’s business, after deducting this tort case, is thus Baht 2,572 million; and (ii) The remaining portion of Baht 11,280 million represents cases in which SCIB is involved as a result of the transfer of business from BMB, and for which SCIB is entitled to compensation for actual losses incurred if such losses are in accordance with the conditions agreed with the FIDF (Baht 9,586 million of this amount relates a single case brought by a debtor that BMB had already transferred to SAM before SCIB received the transfer of business from BMB, and SCIB believes that the lawsuit has been brought against the wrong party, and not SCIB’s responsibility, SCIB’s management believes that SCIB has no liability in respect of such case.). As at 31 December 2011, SCIB had already made provisions for contingent liabilities totaling Baht 62 million for those lawsuits under (i) above where the Court of First Instance has already judged in favor of the plaintiff. SCIB’s management believes that there will be no significant future losses as a result of the remaining cases. However, all contingent liabilities and provisions for contingent liabilities were transferred from SCIB to Thanachart Bank on the date of the entire business transfer.


112

In addition, SCIB was requested to make restitution as a result of a person forging SCIB’s

documents and using such counterfeit documents. However, SCIB has already filed a

complaint against the person who produced and used counterfeit documents so as to

proceed with a legal action. SCIB believes that no liability will arise from such restitution

claim.

48. Letter of guarantees

As at 31 December 2011, the Bank and its subsidiaries had letter of guarantees issued by

the Bank and its subsidiaries, amounting approximately Baht 24 million, placed for

electricity usage of the branches (separate financial statements: Baht 23 million).

49. Financial instruments

Financial instruments are any contracts which give rise to both a financial assets of one

enterprise and a financial liability or equity instruments of another enterprise.

49.1 Credit risk

Credit risk is the risk that the party to a financial instrument will fail to fulfill an obligation,

causing the Bank and its subsidiaries to incur a financial loss. The amount of maximum

credit risk exposure is the carrying amount of the financial assets less provision for losses

as stated in the statements of financial position and the risk of commitments from avals,

guarantees of loans, other guarantees and derivative contracts.

In addition, the Bank and its subsidiaries manage credit risk by the means of careful

consideration of credit approval process, analysis of risk factors and, the ability to service

debt of customers, and a credit review process, which examines and reviews the quality of

the loan portfolio so as to prevent and provide a remedy for problem loans in the future.

49.2 Market risk

Market risk is the risk that changes in interest rates, foreign exchange rates and securities

prices may have an effect on the Bank and its subsidiaries’ foreign currency position and

investment status. As such, market risk consists of interest rate risk, foreign exchange risk

and equity position risk.


113

a) Interest rate risk

Interest rate risk is the risk that the value of financial instrument will fluctuate as a result of

changes in market interest rates.

The Bank and its subsidiaries manage the changes in interest rate risk by means of an

appropriate structuring of holdings in assets and liabilities with different repricing dates,

taking into account the direction of market interest rates, in order to generate a suitable

yield while maintaining risk at acceptable levels. Such management is under the

supervision of the Asset and Liabilities Management Committee.

As at 31 December 2011 and 2010, financial assets and liabilities classified by types of

interest rate are as follows:



2011

Floating Fixed Non-

interest interest interest

Transactions rate rate bearing Total

Financial assets

Cash - - 16,006 16,006

Interbank and money market items 23,000 32,178 8,137 63,315

Derivatives assets - - 1,536 1,536

Investments 12 135,851 11,885 147,748

Investments in associated companies - - 1,423 1,423

Loans to customers(1) 313,265 321,747 208 635,220

Receivable from purchase and sale securities and

derivatives - - 858 858

Other assets - receivable from clearing house - - 25 25

Financial liabilities

Deposits 174,519 255,821 5,700 436,040


Liabilities payable on demand - - 2,131 2,131

Derivatives liabilities - - 2,886 2,886

Debt issued and borrowings - 254,297 - 254,297

Payable from purchase and sale securities and


Other liabilities - payable from clearing house - - 306 306

(1) The outstanding balances of loans to customers which have floating interest rates or fixed interest rates include loans on which interest

recognition is discontinued




2010

Floating Fixed Non-



Financial assets

Cash - - 15,298 15,298



Investments 5,840 121,092 12,000 138,932

Investments in associated companies - - 2,177 2,177



derivatives - - 2,870 2,870

Other assets - receivable from clearing house - - 391 391


Deposits 185,346 341,372 5,938 532,656



Derivatives liabilities - - 941 941

Debt issued and borrowings 3,996 170,930 23 174,949



Other liabilities - payable from clearing house - - 98 98








2011

Floating Fixed Non-



Financial assets

Cash - - 16,004 16,004



Investments 12 103,875 10,450 114,337


companies - - 40,842 40,842





Deposits 175,709 290,112 5,797 471,618



Derivatives liabilities - - 2,877 2,877





116


2010

Floating Fixed Non-



Financial assets

Cash - - 3,733 3,733

Interbank and money market items 115 24,574 3,732 28,421

Derivatives assets - - 928 928

Investments - 48,897 601 49,498


companies - - 73,121 73,121





Deposits 91,918 149,844 1,029 242,791

Interbank and money market items 3,809 25,190 707 29,706


Derivatives liabilities - - 434 434






With respect to financial instruments that carry fixed interest rates, the periods from the

financial position date to the repricing or maturity date (whichever is the earlier) are

presented below: (Unit: Million Baht)


2011

Repricing or maturity date Weighted

0 - 3 3 - 12 1 - 5 Over 5 average

Transactions At call months months years years Total interest rates

Percent

Financial assets

Interbank and money market items - 29,523 2,655 - - 32,178 1.27-2.49

Investments - 14,772 46,447 57,851 16,781 135,851 3.19-4.47

Loans to customers 3,626 22,243 15,445 212,320 68,113 321,747 8.10-9.82


Deposits 89 169,399 77,929 8,404 - 255,821 3.12

Interbank and money market items 13,458 32,220 5,379 217 - 51,274 2.29

Debt issued and borrowings 999 133,517 103,060 16,700 21 254,297 4.06-4.75


117



2010


0 - 3 3 - 12 1 - 5 Over 5 average


Percent

Financial assets

Interbank and money market items 147 76,912 500 - - 77,559 1.75 – 2.21

Investments - 23,980 26,872 47,241 22,999 121,092 3.18 – 3.33

Loans to customers 6,968 48,134 40,693 198,372 59,106 353,273 5.48 – 7.60


Deposits 53 193,904 125,726 21,689 - 341,372 1.65 – 1.98

Interbank and money market items 7,015 19,901 3,076 1,406 - 31,398 1.52 – 1.55

Debt issued and borrowings 1 109,296 38,415 23,185 33 170,930 2.63 – 2.83



2011


0 - 3 3 - 12 1 - 5 Over 5 average


Percent

Financial assets

Interbank and money market items - 29,546 2,567 - - 32,113 3.24

Investments - 13,136 42,218 47,283 1,238 103,875 3.19

Loans to customers 3,473 22,197 14,921 199,900 67,738 308,229 8.10


Deposits 89 203,677 77,942 8,404 - 290,112 3.01

Interbank and money market items 13,458 32,220 5,379 217 - 51,274 0.25

Debt issued and borrowings 56 135,642 105,084 16,700 21 257,503 4.05



2010


0 - 3 3 - 12 1 - 5 Over 5 average


Percent

Financial assets

Interbank and money market items - 24,574 - - - 24,574 1.75

Investments - 7,477 18,319 14,542 8,559 48,897 3.33

Loans to customers 3,595 11,225 17,886 193,959 57,002 283,667 7.58


Deposits 1 82,136 61,182 6,525 - 149,844 1.98

Interbank and money market items 6,835 16,365 602 1,388 - 25,190 1.53

Debt issued and borrowings 1 87,700 31,391 13,000 - 132,092 2.63


In addition, the average balances of the financial assets and liabilities of the Bank and its

subsidiaries generating revenues and expenses, calculated based on the average

balances outstanding during the years, and the average interest rate for the years 2011

and 2010 can be summarised as follows:




2011 2010

Average Average Average Average

balances Interest rate (%) balances Interest rate (%)

Interest bearings financial assets

Interbank and money market items 65,402 2,237 3.42 76,969 1,054 1.67

Investments and trading operations 4,950 78 1.58 5,164 82 2.04

Investment in debt securities 133,575 4,114 3.08 132,140 3,653 3.18

Loans/hire purchase and finance leases 667,896 37,785 5.66 537,667 29,992 6.22

Interest bearings financial liabilities

Deposits 447,955 10,928 2.44 538,925 7,874 1.67

Interbank and money market items 56,551 1,289 2.28 47,226 506 1.27

Debt issued and borrowings 215,485 7,581 3.52 132,292 3,186 2.58




2011 2010

Average Average Average Average

balances Interest rate (%) balances Interest rate (%)

Interest bearings financial assets


Investments and trading operations 1,755 24 1.35 565 13 2.36

Investment in debt securities 61,702 2,023 3.28 54,488 1,708 3.13

Loans/hire purchase and finance leases 400,397 26,135 6.53 289,939 19,273 6.65

Interest bearings financial liabilities

Deposits 266,850 6,898 2.16 248,617 4,546 1.83


Debt issued and borrowings 176,696 6,506 3.68 98,284 2,536 2.58


b) Foreign exchange risk

Foreign exchange risk is the risk that changes in foreign exchange rates may result in

changes in the value of financial instruments, and fluctuations in revenues or the values of

financial assets and liabilities.

Since the Bank and its subsidiaries have foreign exchange transactions, it may be

exposed to foreign exchange risk. However, the Bank and its subsidiaries have a policy to

mitigate this foreign exchange exposure through management of its net exchange position

and operation in accordance with a risk management policy which has been approved by

their Board of Directors and is in strict accordance with BOT guidelines.

The status of the Bank and its subsidiaries’ foreign currency balances as at 31 December

2011 and 2010 can be summarised as follows:



2011

US Dollar Euro Yen Won Yuan Others

Foreign currency in the statements of financial positionCash 618 395 292 - 1 381

Interbank and money market items 14,987 119 128 - 6 492

Investments 11,192 599 3,035 549 12,327 38

Loans to customers 13,186 234 486 - - 101

Other assets 463 1 17 - 49 -

Total assets 40,446 1,348 3,958 549 12,383 1,012

Deposits 104 21 1 - - 117

Interbank and money market items 8,602 - - - - -

Other liabilities 14 - - - - -

Total liabilities 8,720 21 1 - - 117

Net 31,726 1,327 3,957 549 12,383 895

Foreign currency commitmentsGuarantees of loans 920 - 310 - - -

Liability under unmatured import bills 368 34 118 - - 5

Letter of credits 2,376 100 92 - - 22

Others 984 48 1 - - 27


120


2010


Foreign currency in the statements of financial positionCash 234 213 119 1 - 191 Interbank and money market items 3,312 119 151 33 - 427 Investments 14,724 571 1,376 4,800 - 37 Loans to customers 11,350 289 30 - - 54 Other assets 306 8 9 22 - 9

Total assets 29,926 1,200 1,685 4,856 - 718

Deposits 185 72 2 - - 143 Interbank and money market items 8,119 24 - - - - Liability payable on demand - - 1 - - -

Other liabilities 1,803 - 9 - - -


Net 19,819 1,104 1,673 4,856 - 575

Foreign currency commitmentsGuarantees of loans 36 22 - - - - Liability under unmatured import bills 305 29 56 - - 32 Letter of credits 2,134 112 103 - - 28 Others 4,505 25 - - - 19


2011


Foreign currency in the statements of financial position

Cash 619 395 292 - 1 381 Interbank and money market items 14,987 119 128 - 6 492 Investments 11,192 599 3,035 549 12,327 38 Loans to customers 13,183 234 486 - 101

Other assets 458 1 17 - 49 -

Total assets 40,439 1,348 3,958 549 12,383 1,012

Deposits 104 21 1 - - 117 Interbank and money market items 8,602 - - - - -


Net 31,733 1,327 3,957 549 12,383 895

Foreign currency commitmentsGuarantees of loans 920 - 310 - - - Liability under unmatured import bills 368 34 118 - - 5 Letter of credits 2,376 100 92 - - 22 Others 984 48 1 - - 27


121


2010


Foreign currency in the statements of financial position

Cash 134 36 88 - - 55

Interbank and money market items 417 7 28 33 - 115

Investments 5,383 570 178 4,800 - -

Loans to customers 3,609 30 - - - 3

Other assets 160 1 - 22 - -

Total assets 9,703 644 294 4,855 - 173

Deposits 37 7 - - - 133

Interbank and money market items 7,195 24 - - - -

Other liabilities 348 - - - - -

Total liabilities 7,580 31 - - - 133

Net 2,123 613 294 4,855 - 40

Foreign currency commitments

Guarantees of loans - 2 - - - -

Liability under unmatured import bills 111 7 - - - -

Letter of credits 625 44 - - - -

Others 665 - - - - 2

In addition, the Bank and its subsidiaries have commitments from foreign currency

exchange contracts, cross currency and interest rate swap contracts and interest rate

swap contracts which have to pay or received repayment in foreign currency that the Bank

and its subsidiaries made for trading transactions or hedging transactions (banking book)

as follow:


2011


Foreign exchange contracts

- Bought 32,441 1,002 386 - - 552

- Sold 52,246 1,757 1,509 - 10,828 1,467

Cross currency and interest rate swap

contracts

- Bought 1,347 - - - - -

- Sold 11,235 615 2,834 548 1,611 -

Interest rate swap contracts

- Bought 1,453 - - - - -

- Sold 1,453 - - - - -


122


2010



- Bought 23,624 145 194 - - 404

- Sold 30,779 754 721 - - 1,090


contracts

- Bought 6,874 - - - - -

- Sold 21,091 599 1,187 4,786 - -


- Bought 916 - - - - -

- Sold 916 - - - - -


2011



- Bought 31,805 1,002 386 - - 552

- Sold 52,883 1,757 1,509 - 10,828 1,467


contracts

- Bought 1,347 - - - - -

- Sold 11,235 615 2,834 548 1,611 -


- Bought 1,453 - - - - -

- Sold 1,453 - - - - -


2010



- Bought 12,770 30 105 - - 249

- Sold 11,292 124 448 - - 407


contracts

- Bought 4,476 - - - - -

- Sold 8,094 599 - 4,786 - -


- Bought 302 - - - - -

- Sold 302 - - - - -


123

c) Equity position risk

Equity position risk is the risk that changes in the market prices of equity securities which

will result in fluctuations in revenue and the value of financial assets.

The Bank and its subsidiaries have a policy to manage market risk by setting manageable

limits on transactions, such as position limit and loss limits. The Risk Control Unit, which is

separated from front office and back office functions, is responsible for control of risk and

reporting on compliance with the various limits to the Board of Directors, related business

unit and related management, in order to facilitate responsive risk management, under the

supervision of the Investment Portfolio Committee.

49.3 Liquidity risk

Liquidity risk is the risk that the Bank and its subsidiaries will be unable to liquidate their

financial assets and/or procure sufficient funds to discharge their obligations in a timely

manner, resulting in the Bank and its subsidiaries incurring a financial loss.

The Bank and its subsidiaries manage liquidity risk by means of appropriate structuring of

short-term and long-term sources of capital. In addition, the Bank and its subsidiaries have

a policy to maintain liquidity to ensure that it has sufficient liquidity to meet both present

and future requirements, under the supervision of the Asset and Liability Management

Committee.


124

Counting from the financial position date, the periods to maturity of financial instruments held

as at 31 December 2011 and 2010 are as follows:



2011

Transactions At call

Less than

1 year

Over

1 year Unspecified Total

Financial assets

Cash 16,006 - - - 16,006

Interbank and money market items (1) 8,368 54,827 120 - 63,315

Derivatives assets - 1,536 - - 1,536

Investments 1 67,445 68,908 11,394 147,748

Investments in associated companies - - - 1,423 1,423

Loans to customers(2) 47,672 193,205 394,343 - 635,220


derivatives - 858 - - 858

Other assets - receivable from clearing house - 25 - - 25


Deposits 176,616 249,835 9,589 - 436,040

Interbank and money market items 21,081 35,306 3,764 - 60,151

Liability payable on demand 2,131 - - - 2,131

Derivatives liabilities - 2,886 - - 2,886

Debt issued and borrowings 999 217,447 28,721 7,130 254,297



Other liabilities - payable from clearing house - 306 - - 306

Commitments

Aval to bill 1 342 43 - 386

Guarantees of loans - 1,230 - - 1,230

Liability under unmatured import bills 624 481 - - 1,105

Letter of credits 86 2,540 - - 2,626

Other commitments 41,732 6,138 2,061 2 49,933

(1) The outstanding balances of interbank and money market items at call included the item for which have defaulted on the repayment.

(2) The outstanding balances of loans to customers at call included loans for which revenue recognition has been discontinued.


125



2010


Less than

1 year

Over


Financial assets

Cash 15,298 - - - 15,298

Interbank and money market items (1) 7,405 77,662 120 - 85,187


Investments - 48,826 83,891 6,215 138,932

Investments in associated companies - - - 2,177 2,177



derivatives - 2,870 - - 2,870

Other assets - receivable from clearing house - 391 - - 391


Deposits 188,806 318,019 25,831 - 532,656



Derivatives liabilities - 941 - - 941



derivatives - 4,054 - - 4,054

Other liabilities - payable from clearing house - 98 - - 98

Commitments

Aval to bill 13 585 56 - 654

Guarantees of loans 354 57 11 - 422

Liability under unmatured import bills 156 415 - - 571

Letter of credits 156 2,280 20 - 2,456

Other commitments 56,107 9,407 2,513 1,947 69,974

(1) The outstanding balances of interbank and money market items at call included the item for which have defaulted on the repayment.



126



2011


Less than

1 year

Over


Financial assets

Cash 16,004 - - - 16,004

Interbank and money market items 8,199 54,762 120 - 63,081


Investments 1 51,378 52,999 9,959 114,337


companies - - - 40,842 40,842





Deposits 177,903 284,126 9,589 - 471,618



Derivatives liabilities - 2,877 - - 2,877




Commitments

Aval to bill 1 342 43 - 386

Guarantees of loans - 1,230 - - 1,230

Liability under unmatured import bills 624 481 - - 1,105

Letter of credits 86 2,540 - - 2,626

Other commitments 41,732 6,138 2,061 2 49,933



127



2010


Less than

1 year

Over


Financial assets

Cash 3,733 - - - 3,733

Interbank and money market items 3,847 24,574 - - 28,421

Derivatives assets - 928 - - 928

Investments - 21,046 27,892 560 49,498


companies - - - 73,121 73,121



derivatives - 1,733 - - 1,733


Deposits 90,432 141,692 10,667 - 242,791



Derivatives liabilities - 434 - - 434



derivatives - 1,733 - - 1,733

Commitments

Aval to bill 3 179 56 - 238

Guarantees of loans - 2 - - 2

Liability under unmatured import bills 2 118 - - 120

Letter of credits 76 576 20 - 672

Other commitments 6,140 2,751 185 1,947 11,023



128

49.4 Fair value

Fair value represents the amount for which an asset could be exchanged or a liability

settled between knowledgeable, willing parties in an arm’s length transaction. The Bank

and its subsidiaries have estimated the fair value of financial instruments as follows:

a) Financial assets

The method used for determining the fair value depends upon the characteristics of the

financial instruments. The fair values of most financial assets are presented at the amount

stated in the statement of financial position, including cash, interbank and money market

items, derivatives assets, receivable from purchase and sale securities and derivatives,

receivables from clearing house and loans. These financial assets have their fair value

approximate to their respective carrying value since the values of these financial

instruments are predominantly subject to market interest rates. Financial instruments with

standard terms and conditions which are traded on an active and liquid market, such as

investments, have their fair values determined by the quoted market price.

b) Financial liabilities

The fair values of financial liabilities, including deposits, interbank and money market

items, liabilities payable on demand, derivatives liabilities, debt issued and borrowings,

payable from purchase and sale securities and derivatives, and payable to clearing house

are considered to approximate their respective carrying values for the same reasons as

described above.


129

As at 31 December 2011 and 2010, the book value and fair value of financial instruments of the Bank and its subsidiaries are as follow.



2011 2010

Book value Fair value Book value Fair value

Financial assets

Cash 16,006 16,006 15,298 15,298


Derivatives assets 1,536 1,536 3,117 3,117

Investments 148,345 149,325 140,022 140,944

Investments in associated companies 1,423 1,423 2,177 2,177


Receivables from purchase and sale securities and

derivatives 858 858 2,870 2,870

Other assets - receivable from clearing house 25 25 391 391


Deposits 436,040 436,040 532,656 532,656


Liabilities payable on demand 2,131 2,131 3,127 3,127

Derivatives liabilities 2,886 2,886 941 941



derivatives 851 851 4,054 4,054

Other liabilities - payable from clearing house 306 306 98 98


130



2011 2010

Book value Fair value Book value Fair value

Financial assets

Cash 16,004 16,004 3,733 3,733


Derivatives assets 1,532 1,532 928 928

Investments 114,541 115,030 49,759 50,218

Investments in subsidiary and associated companies 40,842 40,842 73,121 73,121


Receivables from purchase and sale securities and

derivatives 65 65 1,733 1,733


Deposits 471,618 471,618 242,791 242,791


Liabilities payable on demand 2,131 2,131 2,326 2,326

Derivatives liabilities 2,877 2,877 434 434



derivatives 268 268 1,733 1,733

49.5 Financial derivatives

The Bank and its subsidiaries engage in financial derivatives activities as required in the

normal course of their business to manage risk and to meet their clients’ needs. These

financial derivatives include foreign exchange contracts, cross currency and interest rate

swap contracts, interest rate swap contracts, and gold futures contracts.

The Bank and its subsidiaries have set a policy and limit to mitigate related risk, and

require risk reporting for the various types of risk, as a control over financial derivative

activities. The Bank and its subsidiaries manage the credit risk associated with financial

derivatives on the basis of the credit limits granted to customers in general. The same

credit approval process that is used when granting loans to a customer is adopted for

financial derivative customers, and so the Bank and its subsidiaries are able to maintain

risk at acceptable levels.


131

As at 31 December 2011 and 2010, the Bank and its subsidiaries have financial

derivatives for trading and hedging (banking book) as classified by their maturities as

follows:



2011 2010

Less than Over Less than Over

1 year 1 year Total 1 year 1 year Total


- Bought 34,381 - 34,381 24,367 - 24,367

- Sold 67,807 - 67,807 33,344 - 33,344

Cross currency and interest rate

swap contracts

- Bought 824 523 1,347 6,393 481 6,874

- Sold 9,598 7,245 16,843 14,574 13,089 27,663


- Paid fixed interest rate 2,692 3,954 6,646 500 15,480 15,980

- Paid floating interest rate 325 2,954 3,279 - 3,359 3,359

- Received fixed interest rate 325 2,954 3,279 - 3,359 3,359

- Received floating interest rate 2,692 3,954 6,646 500 15,480 15,980

Gold future contracts

- Sold 641 - 641 - - -



2011 2010

Less than Over Less than Over

1 year 1 year Total 1 year 1 year Total


- Bought 33,745 - 33,745 13,154 - 13,154

- Sold 68,444 - 68,444 12,271 - 12,271

Cross currency and interest rate

swap contracts

- Bought 824 523 1,347 4,476 - 4,476

- Sold 9,598 7,245 16,843 9,262 4,217 13,479


- Paid fixed interest rate 2,692 3,954 6,646 - 12,302 12,302

- Paid floating interest rate 25 2,954 2,979 - 230 230

- Received fixed interest rate 25 2,954 2,979 - 230 230

- Received floating interest rate 2,692 3,954 6,646 - 12,302 12,302


132

50. Reclassification

The Bank and its subsidiaries have reclassified certain amounts in the financial

statements as at 31 December 2010 and for year then ended to conform to the current

year’s classifications, in accordance with the revised format stipulated by the BOT, with no

effect to previously reported net income or equity.


31 December 2010

Consolidated


Separate


As

reclassified

As previously

reported

As

reclassified

As previously

reported

Net investment 140,022 139,933 49,759 49,670

Receivables from clearing house - 391 - -

Derivatives assets 3,117 - 928 -

Financial derivatives assets - 3,117 - 928

Prepaid corporate income tax 7 - - -

Reinsurance assets 533 - - -

Other assets - net 5,129 4,820 2,194 2,194

Payable to clearing house - 99 - -

Derivatives liabilities 941 - 435 -

Provisions for liabilities 900 770 113 24

Financial derivatives liabilities - 941 - 435

Accrued interest payable - 1,852 - 1,084

Corporate income tax payable - 2,327 - 999

Accrued expenses - 3,271 - 1,421

Unearned premium reserve - 1,882 - -

Life insurance premium reserve - 26,348

Insurance contract liabilities 29,774 - - -

Other liabilities 13,792 7,370 6,130 2,626


133



Consolidated


Separate


As

reclassified

As previously

reported

As

reclassified

As previously

reported

Interest income 34,781 - 21,397 -

Interest and dividend income - 34,974 - 21,973

Interest expenses 11,566 9,651 7,375 6,334

Contribution fee to the Deposit Protection Agency - 1,915 - 1,034

Fee and service income 3,369 3,592 2,030 2,030

Fee and service expenses 519 237 45 45

Gains on trading and foreign exchange transactions 570 - 144 -

Gains on investments 314 519 148 160

Gains on foreign exchange and financial derivatives - 376 132

Other operating income 3,164 - 1,723 -

Non-interest income - 2,680 - 1,124

Gains on disposal of property foreclosed and other

assets - 116 - 48

Premises and equipment expenses 3,148 3,390 1,532 1,606

Other expenses 4,554 4,653 3,143 3,101

Impairment loss of loans and debt securities 2,149 - 1,280 -

Bad debts and doubtful accounts - 2,072 - 1,157

Loss on debt restructuring - 77 - 123

51. Events after the reporting period

On 23 February 2012, the Board of Directors of the Bank passed a resolution to propose

the payment of a dividend of Baht 0.35 per share to the ordinary shareholders in respect

of the operating results for the year 2011, or a total of Baht 1,929.7 million, to the Annual

General Meeting of Shareholders.

52. Approval of financial statements

These financial statements were authorised for issue by the Bank’s Board of Directors on

23 February 2012.


RemUneRATIon foR THe AUDIToRS

on annual basis, the Audit Committee evaluates the qualification and performance of the auditors and recommends to TBAnK’s Board of Directors for an appointment and fees of the auditors, in order to further obtain an approval from the shareholders meeting. The proposed candidates shall be the auditors approved by the BoT, according to the BoT’s letter no. forKorKor. (02) 237/2011 dated february 28, 2011 Lists of Auditors Approved for the accounting year 2011. The three auditors as follow were in the lists:

1. ms. Phuphun Charoensuk Certified Public Accountant no. 4950: and/or 2. ms. Rungnapha Lertsuwankul Certified Public Accountant no. 3516: and/or 3. mr. narong Pantawongs Certified Public Accountant no. 3315 of ernst & Young office Limited, the current auditor

team of TBAnK. The Relationship of the Auditors

and TBANK The proposed auditors have no relationship in any

form with the Bank. The Auditors of Subsidiaries and

Associated Companies in Thanachart Group

TBAnK, as a company in the group of TCAP,

proposed ernst & Young office Limited which was an auditor of Thanachart Group, to be its auditor.

In 2011, TBAnK paid ernst & Young office Limited for the audit services and other services as details of the auditor’s fee provided below:

1. Audit Fees 1.1 Audit fees of THB 9,820,000 was paid for

auditing the financial statements of the previous year, signed by ms. Phuphun Charoensuk, Certified Public Accountant.

1.2 The fees of THB 780,000 for conducting

special audit and auditing electronic funds transfer systems, as required by the BoT.

2. Non–Audit Fees none Apart from the fees mentioned in 1 and 2 above

there was no other fee for the past year that TBAnK paid to the auditors of the Bank, the audit firm the Certified Public Accountant auditors affiliated with, persons or businesses related to Certified Public Accountant or related to the audit firm the Certified Public Accountant auditors affiliated with.

ReLATeD PARTY TRAnSACTIonS

The details are presents in the note to consolidated financial statements under item 43; Related party transactions.


CORPORATE GOVERNANCE

Report on Corporate Governance Compliance Corporate Governance Policy, Business Ethics and Codes of Conduct for Directors, Executives, and Staff

TBANK’s Board of Directors has put in place written policy guidelines on corporate governance since 2003. The Board

also conducts an annual review of corporate governance policies and the reporting process on business compliance with corporate governance principles of TBANK, at least once per annum. The business ethics as well as codes of conduct for directors, executives, and staff have been improved in order to establish a framework for all personnel of the Bank.

TBANK has established a corporate governance policy as well as business ethics and codes of conduct for directors,

executives, and staff. The policy can be easily accessed via the Bank’s website “www.thanachartbank.co.th” and Thanachart Group’s intranet system which is intended to be a channel for communicating with staff of the Group at every level, shareholders, as well as stakeholders, so that they can observe a firm standpoint and principle in good corporate governance established and practiced by the Board of Directors.

In 2011, the Bank evaluated all levels of Thanachart group’s staff in order to assess and evaluate comprehension

level of practicing accordingly to good corporate governance twice by the Compliance Unit. The result showed that 90% of staff was at excellent level.

Moreover, Thanachart Group has continuously supported good corporate governance and recognition of corporate

social responsibility awareness (CG & CSR Project) among staff in the group. This is intended to stimulate staff to acknowledge working principles of various business units in accordance with good corporate governance which begins with designing training courses that focus particularly on encouraging staff to work on the basis of morality, ethics, and business codes of conduct, for example, pure-hearted businessman program, inner power program and morality strengthening program. In 2011, there were 14,115 staffs at all levels across the country attending training courses.

TBANK’s business conducts according to good corporate governance principles in 2011 include; 1. Shareholders’ Rights and Equitable Treatment

1.1 Shareholders’ Basic Rights

TBANK has a policy on shareholders’ right protection and encourages them to honor their rights. The policy includes legal basic rights, such as the bank’s profit sharing, share transactions or transfers and participation in shareholder’s meeting in order to honor their voting rights equitably and independently.

1.2 Shareholder’s Meeting

In 2011, TBANK held the Annual General Meeting of Shareholders on Thursday April 7, 2011. The meeting was conducted according to related laws, regulations and corporate governance guidelines as follows:

Prior to the Shareholders’ Meeting

•TheBankpublishedtheNoticeofShareholders’meetingaswellasrelateddocuments inbothThaiandEnglish,

including meeting agendas and complete details of each agenda which were sufficient for shareholders’ decision making before the meeting. The aforementioned information was available via various channels as the followings;


Website The information was published (www.thanachartbank.co.th) on the website 14 days prior

to the meeting and was comprised the Notice of Shareholders’ Meeting and related information including; date, time and meeting venue, meeting rules, vote casting procedures, as well as proxy statements. This information replicated the documents mailed to each shareholder.

Delivered by mail The meeting notice, meeting

documents and annual report we re de l i ve r ed t o a l l shareholders at least 14 days prior to the meeting.

Newspaper advertisement The meeting notice was

advertised in both Thai and English daily newspapers for three consecutive days, six days prior to the meeting day.

•TBANKalsoprovidedanopportunitytotheBank’s

shareholder to raise issues for consideration as additional items of the meeting agenda. They could nominate candidates for director as well as any other business-related issues prior to the meeting day for one month, from January 14, 2011 until February 14, 2011. This had been done in Thai and English in order to accommodate both Thai and foreign shareholders. In addition, rules, procedures, and channels for raising such issues were available on the Bank’s website and the results would be informed at the shareholders’ meeting.

•The proxy statements were delivered with the

meeting notice and also published on the Bank’s website should shareholders need to request a proxy to attend the meeting on their behalf.

•TBANK proposed the Chief ExecutiveOfficer and

President and one independent director for shareholders to assign a proxy on their behalf. The curriculum vitae as well as information about interests of the independent director in TBANK were included in the meeting notice to provide the shareholders alternatives for appointment of proxy.

The day of Annual General Meeting of Shareholders of 2011

•TBANK arranged various facilities, such as the

meeting venue, reception staff as well as printed ballot papers for each meeting agenda item, for shareholders during the registration. In addition, shareholders could also register in advance up to two hours prior to the meeting time.

•TBANK established shareholder’s meeting

guidelines to ensure that shareholders’ rights would not be compromised. At any point of the meeting, shareholders could register and enter the meeting to exercise their voting rights on any votes that has not been cast. TBANK has never adjusted or added the agendas or distributed additional documents which contain material information during the meeting without prior notice. During the course of the meeting, all the shareholders were provided equitable rights to express their opinions and ask questions.

•There were 23 shareholders in person, 43

individual shareholders by proxy, and two juristic shareholders by proxy totaling 68 shareholders attended the meeting.

•10 of 12 Directors including the Chairman, the

Chairman of the Audit Committee and the Chairman of Nomination and Remuneration Committee and the Chief Executive Officer and President attended the meeting.

•The chairman of themeeting explicitly informed

the shareholders on meeting rules, vote casting, and vote counting procedures.

•In castingvotes,ballotpaperswere required for

every agenda item. Also, during the agenda of appointing directors, TBANK opened voting for each director one by one. The ballot papers were collected from shareholders for tabulating votes.

•Videopresentationswereused in themeeting in

order to assure that all information was clearly presented.

Post Annual General Meeting of Shareholders •TBANK tookminutes of themeetingwhereby all

important information was entirely recorded in detail. The drafted minutes of the 2011 Annual General Meeting of Shareholders was submitted to the SEC within 14 days after the meeting day.


1.3 Controlling Measures on the Use of Internal Information

TBANK has specified the controlling measures

of the use of internal information which can be summarized as follows:

• Anappropriateoversightontheinternaldata

maintenance system is required for all business units within the Bank.

• In compliance with the SEC regulations,

executives in manager position, the next four positions below manager position, and the highest ranking position in the Accounting Department are required to report their holdings of the Bank’s shares on a quarterly basis. Moreover, any trading transactions of aforementioned shares have to be reported to the SEC within 3 business days once the transaction has been completed, and a copy of the transactions have to be submitted to the Office of the Chairman of Executive Committee and the CEO.

• Directors, executives, staff, employees and

advisors who have access to the confidential information are prohibited from seeking any benefit from such information for their own or other’s interest. This is indicated in Thanachart Group’s ethics.

• According to the Bank’s notification on

securities trading supervision and abusive internal data control, Directors and executives are prohibited from engaging in any trading of the Bank’s shares 15 days before the end of each quarter until two days after the disclosure of the financial statements.

• The use of internal data for the individual

interest is considered as a policy misconduct and will be subject to the penalties according to the judgment of the Disciplinary Committee.

1.4 Controlling Measures on Conflict

of Interests

TBANK has established documented policies and approval procedures on connected transactions that are fully disclosed to all related parties. The Bank has also established controlling policies and measures aiming at preventing executives and related parties from making use of internal information for their personal benefit. The policies are including;

• Incaseofaconflict-of-interest,connectedorrelated transaction between any related parties, the matter will be reported to the Compliance Department in order to seek their opinion on legal issues and practice guidelines before being forwarded to the authorized party for approval.

• As stated in the notification of various

committees, any transactions from which the directors, executives or related parties gain benefit are required to specify their interest of such transaction. In addition, related directors or executives are prohibited from attending the meeting during the time when such an agenda item is being taken up.

• The execution of transactions from which

TBANK or directors or senior management of the Bank gain benefit has to obtain unanimous approval from the Board of Directors in which neither director nor senior management who is beneficiary can participate in the approval process.

• The Board of Directors has to be fully

informed of transactions that may involve in a conflict of interest or related party issues and such matters are always subject to careful consideration and in compliance with rules and regulations of the SEC and the BOT.

• Informationdisclosureontransactionswhich

may have conflicts of interest or connected transactions or related transactions must comply with rules and regulations established by the authorities.

• All connected transactions are subject to a

review in accordance with the annual audit plan and will be reported to the Audit Committee.

• Information about business connections or

business of which the benefit is related to directors and senior management has to be disclosed quarterly for controlling purposes and included in the list of connected transactions which will be disclosed in notes to the financial statements.

2. Role of Stakeholders

Thanachart Group has established written practice

guidelines on stakeholders; including customers, trading partners/lenders, competitors, public sector, as well as society and environment, in the Business Code of Conduct of directors, executives, and staff. All information in the guideline is disseminated through internal communication


channels, so that directors, executives, and staff at all levels can strictly adhere to. The information has also been publicized via the Bank’s website to enhance stakeholders’ confidence on their rights. The details on the treatment of various groups of stakeholders are as follows:

Shareholders Thanachart Group aims at having a solid

performance and achieving a sustainable growth as well as being competitive to ensure an appropriate regular return to shareholders. In conducting business, the Bank has been aware of risks and ensures that there is an efficient internal control system as well as information disclosure in an accurate, complete, timely and transparent manner. Moreover, the Bank has made arrangements to provide shareholders with convenience in exercising any of the rights to which they are entitled.

Employees Thanachart Group recognizes equal and fair

treatments of its employees, it ensures that employees are fairly compensated. As a guideline in determining employees’ salaries, the Group conducts surveys and takes into consideration inflation rates, the Consumer Price Index and the Key Performance Indicators (KPIs). In 2011, the Group introduced a performance evaluation form, which is consistent with Thanachart Group’s key business strategies or the CEO’s Six-point agenda, to assess employees’ performance for the purpose of fair compensation and promotion. Moreover, the Group appropriately improved fringe benefits for employees to relieve their burdens based on the economic factors and integration preparation such as medical expense, annual leave, employer and employee contribution rates of provident fund, saving cooperatives for Thanachart Group’s staff, relief funds for unprecedented disasters such as fire and flood, fire drills, upkeep of workplace environment, as well as security for life and belongings. The Group also strengthens working relationships among employees by publishing and circulating the monthly journal entitled “San Saiyai” that encourages better connections between employees within the Group. In addition, the Group also circulates news and information through the intranet system and internal television Thanachart Channel” such as Thanachart Group’s products and services, related rules and regulations, as well as activities that Thanachart Group held in 2011.

Thanachart Group has been continually active in

human resource development. In 2011, Thanachart Group focused its efforts on enhancing employees’ knowledge and

competencies as well as necessary working skills for each position at every level in order to increase employees’ capability to respond to Thanachart Group’s visions, missions and objectives. The Group also strengthened employees’ recognition of relevant rules and regulations as well as the Business Codes of Conduct. In order to facilitate successful integration and strengthen the expertise of all staff members who are significant resources to support business growth and business continuity, the Group has established human resources development plans which are in alignment with its strategic direction. In 2011, advised by its strategic partner, Scotiabank, which has expertise in international finance, the Group organized a number of effective training courses, and provided external training, seminars, and staff training visits at reputable domestic and foreign institutes.

Apart from that, the Chief Executive Officer and

President have initiated the “Go Together” project, which is a special project aimed at strengthening the unity of the organization under the Thanachart vision “Synergy”. In 2011, 18 “Go Together” conferences were organized in every region of the country. Each conference aimed at communicating policies and the direction of strategies from the central Thanachart Group, in order to ensure that all staff share the same understanding of the Group’s strategic direction. The Chief Executive Officer and President as well as high-level executives of TBANK paid visits to all the hubs nationwide to meet with managers and staff of the network branches in order to exchange views on business operations with an emphasis on adjusting competitive strategies in each region. This is to ensure that the Group truly operates its business to meet all the unique financial needs of its customers in each region. This project not only stimulates enthusiasm of all staff and creates a true understanding of the Group’s business direction among them, which has become a driving force for the success of Thanachart Group, but enhances unity and cooperation among staff across the organization as well. The project will be continued in 2012 to capture the ultimate benefits of synergy and collaboration of TBANK, SCIB and the Bank of Nova Scotia.

Customers Thanachart Group is determined to develop

financial products and services that could accommodate all financial needs of customers. Fees are fairly charged and the Group aims to provide customers with complete and sufficient information of products and services before customers’ decisions are reached.


P a r t i c i p a t i o n M e c h a n i s m o f Stakeholders

Thanachart Group has created a system for

receiving complaints and suggestions from customers, external parties and stakeholders more effectively for the purpose of organizational development. This has been undertaken through various channels such as the Bank’s website “www.thanachartbank.co.th”, marketing staff and Thanachart Contact Center 1770. The Bank has also explicitly established a business practice for the complaints reception system in which the responsible unit will follow up customers’ complaints and provide feedback to every customer or party that lodges the complaint, as well as applying customer’s needs to improve Thanachart Group’s services and increasing consumer or stakeholders’ satisfaction.

Trading Partners and Lenders Thanachart Group has established explicit policies

and practices on purchasing and outsourcing for the purpose of fairness, transparency and verifiability of all related parties as well as the rules for approval authority of package purchasing and rental.

The Bank has provided transparent and verifiable

information to lenders and has committed to the integrity of fulfilling the obligations made with the lenders under the conditions that are mutually agreed upon in addition to legal rules and regulations in order to build confidence for long-term cooperation.

Competitors The Bank operates under rules and competition

with other parties and organizations as well as under fairly established policies and practices. The Bank also does not accuse, defame, or aggravate its competitors as well as seek for confidential information of its competitors dishonestly or inappropriately.

Society and Environment Thanachart Group holds a responsible attitude

towards society. The senior management of the Group has played an important role in promoting the principles of social responsibility. These principles fall under the umbrella of the Group’s corporate social responsibility (CSR) that places emphasis on “sustainable growth with moral righteousness”. Supported by its staff, business alliances, local communities and society, the Group is

prepared to consistently participate in activities that support and help communities and societies in a long-term manner with mutual understanding and sincerity.

Public Sector TBANK conducts its business in adherence to laws,

rules and regulations of authorities as well as provides effective cooperation according to government policies. Moreover, the Bank will not become involved or do business with any illegal organizations or individuals.

3. Information Disclosure and Transparency

TBANK’s Board of Directors is responsible for the

financial statements of the Bank. In this regard, it has assigned the Audit Committee to ensure that the financial reports and internal control system of the Bank are accurate and valid in accordance with generally accepted accounting principles. TBANK has also included the report of the Audit Committee in the annual report.

TBANK ensures sufficient disclosure of important

information in notes to the Bank’s financial statements. The Bank also discloses the financial statements and the notes to the financial statements on a quarterly and annual basis on the Bank’s website. Moreover, the Investor Relations Unit is responsible for providing an accurate information and news on a timely manner to Thai and foreign shareholders, investors, analysts, and credit rating agencies in order to strengthen the image and credibility of the Bank as well as provide services to shareholders effectively. The Investor Relations Unit can be contacted via telephone at +66 (0) 2613 6107 and +66 (0) 2217 8199 Ext. 3027 or at E-mail address: [email protected]. TBANK has established policies on information disclosure in which the information must be accurate, complete, equitable, transparent and timely as well as in compliance with related laws and regulations. The information is disclosed via the channels as follows:

1. Securities and Exchange Commission 2. Department of Business Development, Ministry

of Commerce 3. TBANK’s www.thanachartbank.co.th • Annualregistrationstatementform56-1 • Financialstatementsandannualreport • Shareholders’meetingresolutions4. Press, media and other channels 5. Analyst meetings 6. Company visits / one-on-one meetings 7. Road shows 8. Notifications by mail


In 2011, the Bank’s senior management and Investor Relations provided information to related parties on various occasions, including one-on-one meetings, conference calls, croup analyst meetings and road shows.

4. Responsibil ities of the Board of Directors

Constituent of the Board of Directors TBANK’s Board of Directors is composed of well

qualified persons who have expertise, skills and experience in financial, accounting, management and other professional areas which provide TBANK with great benefits.

TBANK’s Board of Directors structure is in

compliance with the notification of the Capital Market Supervisory Committee No. ThorChor 28/2008 re: Application for Offer and Permission for Sale of Newly Issued Securities, dated December 15, 2008 and the BOT’s notification re: Governance of Financial Institutions, dated July 9, 2009.

Independent Director TBANK specifies a more stringent definition and

qualification of the independent directors as follows: (1) Holding shares not more than 0.5 percent of

paid-up capital of the Bank, member company of the Group, subsidiary company, associated company or related company, including shares held by persons related to the independent director.

(2) Not taking part in the management or being an employee, staff or advisor, who receives salary or a controlling person of the Bank, a regular salary from the Bank, member company of the Group, subsidiary company, associated company, related company or a person who has authority controlling a juristic person that may have a conflict of interest (at present and during the past two years).

(3) Not having a business relationship with the Bank, member company of the Group, subsidiary company, affiliated company, or juristic person that may have a conflict of interest that obstructs independence of opinion.

(4) Not being a person related by blood or registration under laws such as father, mother, sibling and child, including spouse of children, executives, major shareholders, controlling persons, or persons to be nominated as executive or controlling person of the Bank, member company of the Group, subsidiary company, associated company, or related company.

(5) Neither having a relationship with the Bank in the form of its professional service provider such as auditor and financial advisor nor having a business association with the Bank under significant cash amount or value as stipulated (at present or during the past two years before the Bank’s election).

(6) Not being a representative of any member of the Bank’s Board of Directors or any major shareholder, nor being a shareholder related to the major shareholders.

(7) Not being simultaneously an audit committee member of any listed company of the Group, subsidiary company, or associated company.

(8) Not having any prohibited characteristic that undermines independence in carrying out his or her duties as director.

Every Independent Director is free to express

opinion without interest in benefit in terms of assets or working position from the pressure of any person or any group of people as well as from any circumstances that could affect their opinion expression.

Executive Directors are defined as 1) Directors who are involved in the management

of the Bank in accordance with the Notification of the Securities and Exchange Commission no. ThorChor 28/2008 Re: Application for Offer and Permission for Sale of Newly Issued Securities, dated December 15, 2008, including any additional amendments or announced substitution which means a director who assume the directorship in the executive position, a director who act as the executive; and as a director with full signatory authority except the case when it can be demonstrated that he or she is the authorized signatory according to the list that the Board of Director has already approved and is the joint authorized signatory with other committees.

2) In accordance with the BOT’s Notification no.

SorNorSor 13/2009 Re: Governance of Financial Institutions, Executive Director is defined as:

(1) Director that discharges responsibility in the position of manager, deputy manager, assistant manager or the equivalent.

(2) Director that discharges responsibility in the operations or is involved in business management as executive, including parties in an executive committee.

(3) Director with full signatory authority, except for the case when it can be demonstrated that he or she is the authorized signatory according to the list that the Board of Director has already approved and is the joint authorized signatory with other committees.


At present, the number of Independent Directors and Non-Executive Directors of TBANK accounts for 50 percent of the total number of Board of Directors. The constituent of the Bank’s Board of Directors as of December 31, 2011 is as follows:

1. Mr. Banterng Tantivit Chairman - ✓ - 2. Mr. Suphadej Poonpipat Vice Chairman ✓ - - 3. Mrs. Michele Chiu Kwok Vice Chairperson - ✓ - 4. Mr. Kiettisak Meecharoen Director - - ✓ 5. Mr. Narong Chivangkur Director - - ✓ 6. Mr. Sataporn Jinachitra Director - - ✓ 7. Assoc. Prof. Dr. Somjai Phagaphasvivathana Director - - ✓ 8. Ms. Suvarnapha Suvarnaprathip Director ✓ - - 9. Mr. Somjate Moosirilert Director ✓ - - 10. Mr. Brendan George John King Director ✓ - - 11. Mr. Kobsak Duangdee Director ✓ - - 12. Mr. Alberto Jaramillo Director - ✓ -

Name Position

Executive Non-Executive Independent Director Director Director

Note: TBANK’s directors who are authorized signatories include Mr. Suphadej Poonpipat, Ms. Suvarnapha Suvarnaprathip, Mr. Brendan George John King,

Mr. Kobsak Duangdee and Mr. Somjate Moosirilert. Any two out of the five authorized signatories can jointly sign with TBANK’s seal affixed.


Tenure of Directorship The tenure of directorship of the Board of Directors

has been covered clearly by TBANK’s Articles of Association. At each annual general shareholder’s meeting of TBANK, one third (or nearest number but not exceeding one third) of the members of the Board of Directors must retire. After the date when TBANK’s Articles of Association has become effective, the retirement of directors in year one and year two is decided by a draw. In subsequent years, the director who holds the longest time in office will be retired. Should there be a case when the number of directors holding the longest office tenure is greater than the number of directors that have to be retired, a draw will be applied. Directors who retire due to this reason can be reelected to re-assume their directorship.

Roles and Responsibilities of

TBANK’s Board of Directors 1. The Board is responsible for the overall business

conducts of TBANK to ensure the compliance with regulatory requirements, the Bank’s objectives and Articles of Association, as well as the resolutions adopted at the shareholders’ meetings.

2. The Board appoints the Executive Committee or sub-committees to perform duties as assigned by the Board.

3. The Board may assign or authorize one or more directors or other persons to take any action on behalf of the Board.

4. The Board makes approval on visions, missions, and values of the Bank as well as business ethics.

5. The Board considers strategies proposed by the management and approves on important issues related to the Bank’s direction and policies. The Board also approve on business plans, budgets, and operational goals proposed by the management.

6. The Board monitors the Bank’s performance and progress achieved in relation to the established objectives as well as compliance with related laws, regulations, and policies.

7. The Board authorizes the Chief Executive Officer and President to conduct business management of TBANK within the framework of equity expenditure budgets and operating expenditure budgets approved for various projects. Moreover, the Bank’s Board of Directors shall approve any loan applications which are beyond the authority on credit approval.

8. The Board ensures that the Bank has the effective internal control system and appropriate risk management system.

9. The Board ensures that both internal and external auditors conduct their duties effectively.

10. The Board approves the quarterly and annual financial statements and ensures that the financial statements are prepared in accordance with generally accepted accounting principles.

11. The Board ensures that information is disseminated to Bank’s stakeholders and to the general public.

Segregation of Duties The Chairman of the Board of Directors shall not be

the same person as the Chief Executive Officer and President so as to segregate the duties of developing policies from day-to-day business management.

Assumption of Directorship in Other

Companies by Directors and Senior Executives

In compliance with the BOT’s Notification on

Governance of Financial Institutions, directors and senior executives of the Bank can assume the position of Chairman, Executive Director or director with full signatory authority in no more than three business groups.

Sub-committees The Board of Directors of TBANK has appointed the

sub-committees to be responsible for performing necessary duties. The roles and responsibilities of each sub-committee are as follows:

Executive Committee TBANK’s Board of Directors has appointed the

Executive Committee which consists of five members. As of December 31, 2011, the names of the member of the Executive Committee were as follows:

1. Mr. Suphadej Poonpipat Chairman of the Executive Committee 2. Ms. Suvarnapha Suvarnaprathip Vice Chairperson of the Executive Committee 3. Mr. Brendan George John King Vice Chairman of the Executive Committee 4. Mr. Somjate Moosirilert Member of the Executive Committee 5. Mr. Kobsak Duangdee Member of the Executive Committee Representative of the Office of the Chairman of Executive Committee and the CEO Secretary of the Executive Committee


Roles and Responsibilities of the Executive Committee

1. Authorized to approve lines of credit for the

benefit of TBANK as well as approve debt restructuring in compliance with the Financial Institution Business Act as well as the rules and regulations of the BOT.

2. Authorized to approve investments aimed at generating earnings for TBANK in compliance with the Financial Institutions Businesses Act as well as the rules and regulations of the BOT.

3. To manage business operations in line with TBANK’s business objectives as well as managing liquidity, risks and the interest rate structures.

4. Authorized to make purchases, take transfers, and dispose of TBANK’s assets in an amount up to 5 percent of TBANK’s share capital.

5. To consider and screen matters which are beyond the authority of the Executive Committee and to present them to those having higher authority for consideration.

6. Authorized to restructure and manage the organization, to establish rules and regulations related to work process, to appoint and remove employees, to appoint advisors, as well as directing and governing the conduct of TBANK’s business affairs.

7. Authorized to approve salaries or other compensation benefits for employees and advisors to support TBANK’s normal business operations.

8. To consider and approve appointments of independent appraisers.

9. To establish expense budgets for appraising the value of the collateral as well as controlling the related expenses.

10. Authorized to delegate its authority to other staff of TBANK for the purpose of efficiency.

The Executive Committee is authorized to approve

lines of credit, investments and obligations in compliance with the requirements imposed by the BOT.

Audit Committee TBANK’s Board of Directors approved the

establishment of the Audit Committee to ensure that TBANK’s business management is efficient and adheres to the principles of good corporate governance, which would help fostering the Bank’s credibility in the eyes of general public and in compliance with the authorities’ policy. The Audit Committee consists of three independent directors; all of which posses knowledge, understanding and

experience in accounting or finance. As of December 31, 2011, the names of the members of the Audit Committee were as follows:

1. Mr. Kiettisak Meecharoen Chairman of the Audit Committee (Independent Director) 2. Mr. Sataporn Jinachitra Member of Audit Committee (Independent Director) 3. Assoc. Prof. Dr. Somjai Phagaphasvivathana Member of Audit Committee (Independent Director) Mrs. Vijitra Thumpothong Secretary of the Audit Committee Roles and Responsibilities of the Audit

Committee 1. To review the process employed in the

preparation and information disclosure of TBANK’s financial reports, ensuring that the information is accurate, complete, and reliable. During the reviewing process, the Audit Committee will cooperate with the external auditor and the executives responsible for preparing both quarterly and annual financial reports.

2. To review the efficiency and appropriateness of the internal control system, internal audits system with the adequate and efficient corporate governance. In this regard, the Audit Committee will cooperate with the external auditors, internal auditors, and the respective regulators.

3. To review TBANK’s efficient risk management, ensuring that it is adequate and in compliance with the Bank’s policies as well as the BOT’s guidelines

4. To review TBANK’s business conducts, ensuring that they are in compliance with the Bank’s policies as well as regulatory requirements.

5. To review evidences from internal investigations when there is an observation or inference that there might be frauds, irregularities or substantial loopholes in the Bank’s internal control system. The committee will then make a prompt report to TBANK’s Board of Directors for further consideration.

6. To review connected transactions as well as transactions which may lead to conflicts of interest, ensuring that they are reasonable and carried out for the best benefit of the Bank.

7. To c o n s i d e r t h e a u d i t r e p o r t s a n d recommendations presented by the internal auditor, the compliance officer, the external auditor, and the respective regulators, ensuring that the Bank perform necessary actions according to those recommendations.


8. To ensure that the business conducts of subsidiaries are in compliance with Thanachart Group’s policies by giving the Internal Audit Group the following assignments:

8.1 To report TBANK’s Audit Committee the summary of the overall performance of the Internal Audit Group which is responsible for auditing the Bank’s subsidiaries.

8.2 To report TCAP’s Board of Directors on the summary of the overall performance of the Internal Audit Group which is responsible for auditing the TBANK and subsidiaries and further presented to the Board of Directors.

8.3 In undertaking the auditing duties specified in 8.1 and 8.2, in case that there are key issues such as violation of law, fraud, or matters that have a serious impact on financial statements, status or image of TBANK and its subsidiaries, the Internal Audit Group is required to report in detail.

9. To specify the scope of Audit Committee and any change in composition, including any significant change of the process of the audit committee in a written form clearly according to the approval from the Board of Directors. This shall be revealed to the shareholders in the annual report of the Bank.

10. To report to the Board of Directors in order to improve and solve problems in a timely manner in case there are key issues, transactions or actions that have a serious impact on the financial statement and the Bank’s performance as follows:

• Conflictinteresttransactions• Fraudormattersthathaveaseriousimpact

to the internal audit system • Violation of law related to financial

institutions or any regulatory requirements If the Board of Directors or the Executive

do not proceed with the corrections on time, the Audit Committee shall reveal such action in the Bank’s annual report and the report to the BOT.

11. To consider the independence of the internal audit department and the compliance department

12. To appoint, evaluate, remove, transfer, or dismiss the head of internal audit department and the head of compliance department.

13. To recruit and nominate candidates for the external auditor of TBANK and to consider the auditing fees, taking into account the auditor’s credibility, the adequacy of its resources, workload of the auditor as well as experience of the staff.

14. To hold a meeting with the Audit Committee without other management presence at least once a year.

15. To annually review the Audit Committee charter and ask for the approval from Board of Directors if there is any additional revision.

16. To provide a report of Audit Committee which includes necessary information required by the SET, signed off by the Chairman of the Audit Committee, in the Bank’s annual report.

17. To provide comments in the compliance report submitted to the BOT.

18. To report the performance of self–evaluation to the Board of Directors on an annual basis.

19. To perform any other duties assigned by the Board of Directors.

Nomination and Remuneration

Committee TBANK’s Board of Directors approved the

establishment of the Nomination and Remuneration Committee. As of December 31, 2011, the members of the Nomination and Remuneration Committee were as follows:

1. Mr. Narong Chivangkur Chairman of the Nomination and Remuneration

Committee (Independent Director) 2. Mr. Sataporn Jinachitra Member of the Nomination and Remuneration

Committee (Independent Director) 3. Mrs. Michele Chiu Kwok Member of the Nomination and Remuneration Committee (Non-Executive Director) Mr. Thaneit Khantikaroon Secretary of the Nomination and Remuneration

Committee Roles and Responsibilities of the Nomination

and Remuneration Committee 1. To propose policy relating to nomination and

remuneration of directors, sub committee’s directors, Chief Executive Officer and President, and executives to the Bank’s Board of Directors.

2. To propose criteria relating to nomination and remuneration of directors and sub committee’s directors, Chief Executive Officer and President, and executives to the Bank’s Board of Directors.

3. To propose performance appraisal criteria of Chief Executive Officer and President and executives for annual remuneration package consideration.

4. To select and examine the candidates with appropriate qualifications for appointment as director, sub committee directors, or Chief Executive Officer and


President and to propose qualified candidates to the Bank’s Board of Directors or Annual General Meeting of Shareholders. (Depending on the situation).

5. To consider annual remunerations of director, dub committee’s directors, Chief Executive Officer and President, and executives which are in alignment of the criteria that have been set.

6. To review policy and principles of nomination and remuneration of directors, Chief Executive Officer and President, and executives to be appropriate with job descriptions and the market.

Risk Management Committee The Board of Director of TBANK has established the

Risk Management Committee to ensure that risks are effectively and appropriately managed and consistently with the Bank’s organizational structure. As of December 31, 2011, the members of the Risk Management Committee were as follows:

1. Mr. Suphadej Poonpipat Chairman of the Risk Management Committee 2. Mr. Somjate Moosirilert Vice Chairman of the Risk Management Committee 3. Mr. Brendan George John King Vice Chairman of the Risk Management Committee 4 Mr. Piyaphong Artmangkorn Member of the Risk Management Committee 5. Mr. Ajay Pratap Mundkur Member of the Risk Management Committee 6. Mr. Anuwat Luengtaweekul Member of the Risk Management Committee 7. Mr. Enghug Nontikarn Member of the Risk Management Committee 8. Mrs. Angelina Dick Member of the Risk Management Committee 9. Mr. Ricky Jon Yakabowich Member of the Risk Management Committee 10. Mrs. Kjitphan Chunharit Member of the Risk Management Committee 11. Mr. Sakda Chantrasuriyarat Member of the Risk Management Committee 12. Mr. Kamtorn Tantisiriwat Member and Secretary of the Risk Management Committee

Roles and Responsibilities of the Risk Management Committee

1. To propose policy on overall risk management of

TBANK to the Board of Directors for their approval. In this regard, monitoring and auditing standards must be established to ensure that the risk management policy is strictly adhered to.

2. To formulate risk management strategies in accordance with the risk management policy and to ensure that the Bank’s risks are appropriately measured, monitored, and maintained at an appropriate level.

3. To review the adequacy of risk management policy, including the effectiveness of the risk management system and the adherence to the established policy.

4. To establish risk management measures which aims at preventing possible losses from occurring and at finding resolutions.

5. To assess both internal and external factors that might have material impact on the Bank’s financial positions. The assessment results will be taken into account in the adjustment of TBANK’s overall risk management policy.

6. To determine and instruct business units under the Risk Management Committee for the development of more efficient risk managing, controlling, and monitoring mechanisms.

7. To monitor and control the risk management conduct of committees and/or business units to ensure that they adhere to the established policy.

8. To report the committee’s performance to the Audit Committee regularly on areas that need improvement, ensuring that the improvements are in line with the established risk management policy and strategies.

Corporate Governance Committee TBANK has realized the importance of having a

good corporate governance system in accordance with the good corporate governance principles for listed companies and the SET’s guidelines on the disclosure of information on corporate governance practices in the annual report. The Bank’s Board of Directors, therefore, plays the role of the Corporate Governance Committee by determining policy on corporate governance in compliance with the SET, the SEC, and the BOT’s guidelines. The committee has assigned duties for two sub-committees as follows:

1. The Executive Committee undertakes the oversight and control of the Bank’s business conducts to ensure compliance with the policy guidelines on corporate governance, approved by Board of Directors.


2. The Audit Committee is responsible for monitoring, reviewing, and examining the policy compliance to ensure that the Bank has a good corporate governance system.

Asset and Liability Management

Committee The Executive Committee has established the Asset

and Liability Management Committee to manage the Bank’s assets and liabilities effectively and to be consistent with the organization structure. As of December 31, 2011, the committee was consisted of:

1. Mr. Suphadej Poonpipat Chairman of the Asset and Liability Management Committee 2. Mr. Somjate Moosirilert Vice Chairman of the Asset and Liability Management Committee 3. Ms. Suvarnapha Suvarnaprathip

Member of the Asset and Liability Management Committee

4. Mr. Brendan George John King Member of the Asset and Liability Management Committee

5. Mr. Enghug Nontikarn Member of the Asset and Liability Management Committee

6. Mrs. Noossara Roonsamrarn Member of the Asset and Liability Management Committee

7. Mr. Piyaphong Artmangkorn Member of the Asset and Liability Management Committee

8. Mr. Nophadon Ruengchinda Member of the Asset and Liability Management Committee

9. Mr. Anuwat Luengtaweekul Member of the Asset and Liability Management Committee

10. Mr. Ajay Pratap Mundkur Member of the Asset and Liability Management Committee

11. Mr. Kobsak Duangdee Member of the Asset and Liability Management Committee

12. Mr. Pisuthi Amyongka Member of the Asset and Liability Management Committee

13. Mr. Lalit Dodampe Gamage Dharmaseri Member of the Asset and Liability Management Committee Representative of the Risk Control Dept. Secretary of the Asset and Liability Management Committee

Roles and Responsibilities of the Asset and

Liability Management Committee 1. To formulate the Bank’s liquidity, interest rate,

and exchange rate risk management plans under the policy established by the Executive Committee.

2. To manage TBANK’s liquidity and exchange rate risks in accordance with the trends of the money market and capital market conditions.

3. To manage the Bank’s interest rate structure and determine the rate of interest both floating and fixed interest rates in order to prevent any adverse impacts from interest rate volatility.

4. To approve investments in bonds and private debt instruments within budget limits.

5. To authorize a person or a group of persons under the authority of the Asset and Liability Management Committee.

6. To report on the performance of liquidity, interest rate and exchange rate management to the Executive Committee.

Investment Portfolio Committee The Executive Committee has established the

Investment Portfolio Committee in order to ensure that the investment portfolio of the Bank is efficient and consistent to the organizational structure. The committee, as of December 31, 2011, comprised the followings:

1. Mr. Suphadej Poonpipat Chairman of the Investment Portfolio Committee

2. Mr. Somjate Moosirilert Vice Chairman of the Investment Portfolio Committee

3. Ms. Suvarnapha Suvarnaprathip Member of the Investment Portfolio Committee

4. Mr. Brendan George John King Member of the Investment Portfolio Committee

5. Mr. Piyaphong Artmangkorn Member of the Investment Portfolio Committee Representative of the Risk Control Dept. Secretary of the Investment Portfolio Committee


Roles and Responsibilities of the Investment Portfolio Committee

1. To determine investment policies as well as to

consider and approve investment plans. 2. To approve investments within the scope of

authority specified by TBANK, which must be complied within established position limits and VaR limits and to examine investment proposals that exceed its approval authority before proposing them to the Executive Committee which has higher approval authority.

3. To review the investment performance and determine guidelines aimed at improving investment performance

4. To manage the market risk arising from changes in prices of investment portfolios.

5. To establish and review the ratio of provisioning or determine the impairment value of the securities invested.

Credit Committee The Executive Committee has established the Credit

Committee to enhance the efficiency of TBANK’s credit underwriting process, integration process, and compliance with the organizational structure of the Bank. As of December 31, 2011, the members of the Credit Committee included:

1. Mr. Suphadej Poonpipat Chairman of the Credit Committee

2. Mr. Somjate Moosirilert Member of the Credit Committee

3. Ms. Suvarnapha Suvarnaprathip Vice Chairperson of the Credit Committee

4. Mr. Brendan George John King Member of the Credit Committee

5. Mrs. Noossara Roonsamrarn Member of the Credit Committee

6. Mr. Taweesak Saksirilap Member of the Credit Committee

7. Mrs. Angelina Dick Member of the Credit Committee

8. Mr. Noel Singh Member of the Credit Committee

9. Mrs. Sasima Taweeskulchai Member of the Credit Committee

10. Mr. Wuttichai Suraratchai Member of the Credit Committee

11. Mr. Pisuthi Amyongka Member of the Credit Committee Representative of the Risk Control Dept. Secretary of the Credit Committee

Roles and Responsibilities of the Credit Committee

1. To establish a work plan and oversight credit

approval procedures under the policy approved by TBANK’s Executive Committee or Board of Directors.

2. To establish covenants and conditions of credit lines and approve new credit lines as well as adjust conditions on credit lines within the delegated authority, taking into account the credit risk assessments within the scope specified by TBANK’s Executive Committee or Board of Directors.

3. To establish the authority on credit approval to a person or a group of persons within delegated authority of the Credit Committee.

4. To approve transactions which exceed the scope of authorization of the Debt Restructuring Committee or other subsequently appointed committees of which scope of responsibilities are similar to the aforementioned committee.

5. To screen credit applications which exceed the scope of authorization of the Credit Committee in order to propose them to TBANK’s Executive Committee or Board of Directors for approval. In case of urgency, the Credit Committee may propose credit applications to the aforementioned committee without screening.

6. To report credit approval results to TBANK’s Executive Committee or Board of Directors.

The Executive Committee has also established

a number of sub-committees to ensure that TBANK’s business conducts have been managed in a proper, efficient, and effective manner.

Executives As of December 31, 2011, there were executives

in the manager’s position and the first four executives subsequent to the manager, according to the SEC guidelines as follows:

1. Mr. Somjate Moosirilert1

Chief Executive Officer and President 2. Mr. Brendan George John King

Deputy Chief Executive Officer 3. Mrs. Noossara Roonsamrarn

Executive Vice President 4. Mr. Piyaphong Artmangkorn

Executive Vice President 5. Mr. Nophadon Ruengchinda

Executive Vice President 6. Mr. Anuwat Luengtaweekul

Executive Vice President


7. Mr. Ajay Pratap Mundkur Executive Vice President 8. Mr. Enghug Nontikarn2

Executive Vice President 9. Mr. Rathian Srimongkol3

Executive Vice President 10. Mrs. Phenchan Weerawuth4

First Vice President

Notes: 1 Mr. Somjate Moosirilertposition’s name has changed to Chief Executive Officer and President since January 6, 2011.

2 Mr. Enghug Nontikarn has been appointed to be Executive Vice President since June 1, 2011.

3 Mr. Rathian Srimongkol was appointed to be Executive Vice President on June 1, 2011 and resigned since January 1, 2012.

4 Mrs. Phenchan Weerawuth has been appointed to be First Vice President since October 1, 2011.

Chief Executive Officer and President With reference to the BOT Notification No.

TorPorTor. ForKorKor.(21) Lor. 248/2010 dated October 22, 2010 approving the appointment of Mr. Somjate Moosirilert as Chief Executive Officer and President, TBANK’s Board of Directors has determined the duties and authority of the Chief Executive Officer and President as follows:

1. To formulate directions and strategies which aim at achieving TBANK’s goals, visions, and missions.

2. To formulate business plans and budget for TBANK’s Executive Committee’ and Board of Directors’ approval.

3. To manage and approve business transactions, as well as to oversight business conducts of TBANK’s executives and staff, ensuring that they are in alignment with the business plans and budget approved by the Bank’s Executive Committee and Board of Directors.

4. To manage and approve matters related to TBANK’s organizational structure and human resource management.

5. To report TBANK’s performance to the Executive Committee or the Board of Directors.

As regards the level of approval authorization, the

Chief Executive Officer and President is authorized to approve a credit line, investment or obligation worth no more than THB 300 million, provided that they are supported by collateral in the form of bonds, deposits or debt instruments.

Company Secretary In accordance with the principles of good corporate

governance, TBANK has assigned the Office of the Chairman of the Executive Committee and the CEO to be a unit that performs the secretariat functions to ensure the Bank’s effective business management.

Roles and Responsibilities of the Company Secretary

1. To provide the Board of Directors with

preliminary advice on laws, rules and regulations as well as the Articles of Association of Thanachart Bank and ensure that they have been complied properly and regularly. Moreover, the secretary is entitled to report to the Board of Directors on any material changes.

2. To organize annual shareholders general meetings and the Board of Directors meetings in compliance with legal requirements as well as the Articles of Association of TBANK.

3. To take minutes of annual shareholders general meetings and the Board of Directors meetings, as well as to monitor the implementation of the resolutions adopted at the shareholders’ meeting and the meetings of the Board of Directors.

4. To document and keep records of director’s reiterative documents, invitations to the Board of Directors meeting, the minutes of the Board of directors meeting, TBANK’s annual report, invitations to the shareholders’ meeting and the minutes of the shareholders’ meeting.

5. To ensure the disclosure of information and reports within respective authority to the supervisory agency in accordance with authority’s rules and regulations

6. To contact and communicate with shareholders in general, ensuring that they are well informed about their rights and about news of TBANK.

7. To support activities of TBANK’s Board of Directors.

Board of Directors Meetings TBANK’s Board of Directors convenes its meeting

regularly in the last week of each month. It may also hold additional meetings as deemed appropriate. The meeting agenda will be clearly determined in advance including the regular agenda such as business performance monitoring, approval of business transactions, and risk management. The Secretary of the Board of Directors is responsible for sending meeting invitations to all members of the Board along with the agenda as well as supporting documents in advance so that the Board has sufficient time to review them before attending the meetings. In 2011, the Board of Directors convened 14 general meetings.

At the Board of Directors meeting, every director

is encouraged to express their opinions and to adopt resolutions independently. The Chairman of the Board of Directors shall provide opportunities to all directors to express their opinions before requesting the adoption of resolutions. The notices and opinions of the directors


at meetings are documented. The minutes of the meetings are approved by the Board of Directors and are available to be examined by the Board and related parties.

Table of Directors’ Attendance at Meeting held in 2011

(Unit: times)

1. Mr. Banterng Tantivit 13/13 - - - - 2. Mr. Suphadej Poonpipat 13/13 - - 8/9 28/28 3. Mrs. Michele Chiu Kwok 0/13 - 0/13 - - 4. Mr. Kiettisak Meecharoen 13/13 13/13 - - - 5. Mr. Narong Chivangkur 13/13 - 13/13 - - 6. Mr. Sataporn Jinachitra 13/13 13/13 13/13 - - 7. Assoc. Prof. Dr. Somjai 13/13 13/13 - - - Phagaphasvivathana 8. Ms. Suvarnapha Suvarnaprathip 13/13 - - - 25/28 9. Mr. Brendan George John King 13/13 - - 5/9 25/28 10. Mr. Somjate Moosirilert 13/13 - - 8/9 28/28 11. Mr. Kobsak Duangdee 12/13 - - - 24/28 12. Mr. Martin Weeks 4/7 - - - - 13. Mr. Alberto Jaramillo 3/4 - - - -

List of TBANK’s Directors

Risk Management Committee

(9 Meetings)

Executive Committee

(28 Meetings)

Board of Directors

(13 Meetings)

Audit Committee

(13 Meetings)

Nomination and Remuneration

Committee (13 Meetings)

Nomination and Appointment of Directors 1. Appointment Procedures of TBAK’s Board of Directors.

TBANK does not specify the maximum number of directors. However, in accordance with the Bank’s Articles of Association, the Bank must have at least five directors. The appointment procedure can be categorized into two cases, including the case of appointing a new director to replace the one who is retired by rotation; and the case is when the appointment is made during the directorship tenure due to a vacancy. In this regard, TBANK’s Board of Directors has established the Nomination Committee in order to select and nominat qualified candidates for directorships. Under the first circumstance, a resolution of the shareholders’ meeting is required, while, in the latter case, the Board of Directors is able to approve the director’s appointment, given that qualifications are fulfilled. In addition, the appointment of the independent director has to be conducted in compliance with the regulations imposed by the BOT.

Notes: 1. Mrs. Michele Chiu Kwok had health problems. However, she has been electronically monitoring the Bank’s business conducts and giving recommendations of benefits to the Bank on a regular basis. 2. Mr. Martin Weeks resigned from his directorship on June 30, 2011. 3. Mr. Alberto Jaramillo has assumed his directorship since September 27, 2011.


In electing the Bank’s Director at the shareholders’ meeting, every shareholder has equal voting rights. The rules and procedures of Director’s election at the shareholders’ meeting are as follows:

(1) Each voter has one vote which equals to one share per one vote.

(2) Vote casting can be conducted individually or in terms of a group of individuals or by any other procedure as deemed appropriate by the shareholders. However, in each resolution, all shareholders must cast their votes according to (1).

(3) Resolutions are adopted by a majority vote. In case votes are equal, the ultimate decision belongs to the Chairman of the meeting.

2. Appointment Procedures of the Executive Committee.

TBANK’s Board of Directors may appoint a number of directors to hold a position of the Executive Committee as it deems appropriate. Among these, one of them shall serve as the Chairman of the Executive Committee. The Executive Committee will be authorized to manage and conduct TBANK’s business affairs as assigned by TBANK’s Board of Directors. The Chief Executive Officer and President will be ex-officio members of the Executive Committee.

3. Appointment Procedures of the Audit Committee. The Board of Directors will appoint at least

three Independent Directors who have met the Bank’s qualifications to assume the directorship in the Audit Committee. The Committee is responsible for undertaking responsibilities as specified in the charter of the Audit Committee which must be complied with the SEC’s guideline. The Committee is fully independent to perform their duties and has a direct reporting line to the Board of Directors.

4. Appointment Procedures of the Nomination and Remuneration Committee.

The Board of Directors will appoint at least three Independent Directors to assume the directorship in the Nomination and Remuneration committee. The Committee is responsible for undertaking responsibilities as specified in the charter of the Nomination and Remuneration Committee in accordance with the SEC’s guidelines and the BOT’s regulations.

Development of Directors and

Executives Each Director of TBANK has attended at least one

training course organized by the Thai Institute of Directors (IOD). Two Directors that have attended the training course in 2011 are:

1. Mr. Narong Chivangkur Independent Director/Chairman of the Nomination and Remuneration Committee Certificate: Role of the Nomination and Governance Committee, Class 1/2011 Certificate: Financial Institutions Governance Program, Class 2/2011

2. Mr. Kobsak Duangdee Director/Executive Committee Certificate: Financial Institutions Governance Program, Class 2/2011

Evaluation of the Board of Directors

and Senior Management’s Performance TBANK conducts the evaluation of the directors’

performance annually. The evaluation can be categorized into: 1) The evaluation of Board of Directors’ performance and 2) The evaluation of Chief Executive Officer and President’s performance.

Succession Plan The Nomination and Remuneration Committee is

responsible for ensuring that there is a succession plan for the Chief Executive Officer and President position in order to sustain continuity of the Bank’s management.

The Orientation for Newly Appointed

Directors and Executives When there is a newly appointed director or

executive, the Office of the Chairman of Executive Committee and the CEO is responsible for preparing necessary documents for the new director or executive, as the case may be. Such documents comprised the Bank’s annual report, which contains visions, strategies, and goals of the Bank; the director and executive’s manual, which includes what prohibited by laws related to financial institutions; and the relevant Acts and notifications.

Remuneration Policy The remuneration of TBANK’s directors has been

determined by comparison with the director’s remuneration across the industry. Such comparison has been applied along with consideration of roles, duties, and scope of responsibilities of each director. The remuneration of TBANK’s director has to be under the review and screening of the Nomination and Remuneration Committee which then recommends to the Bank’s Board of Directors for their consideration before being proposed to the shareholders’


meeting. The remuneration will be paid in terms of meeting stipends, monthly compensation, and performance allowances. Members of sub-committee will receive the remuneration as specified by TBANK’s Board of the Directors based on

the recommendation of the Nomination and Remuneration Committee. The recommendation is derived by considering their duties and responsibilities compared to industry peers. The sub-committee’s remuneration will be in terms of meeting stipends and/or position allowance.

The remuneration of executives complies with policies and standards which are associated with the Bank as well as

individual performance. The performance assessment is conducted via the use of Key Performance Indicators (KPI). The executives will be remunerated in terms of salaries and allowances of which the average meets the industry’s peers.

Director’s Remuneration a) Financial Remuneration

Director’s and Committee’s Remuneration As of December 31, 2011, TBANK has remunerated three committees, including the Board of Directors, the Audit

Committee, and the Nomination and Remuneration Committee totaling THB 26,928,252.69. The remuneration has been paid in terms of meeting stipends, position allowance and performance-based allowance (from the Bank’s performance in 2010) which can be summarized as follow:

Table of the remuneration of the Board of Directors

1. Mr. Banterng Tantivit 693,000.00 556,400.00 2,714,419.67 3,963,819.67 2. Mr. Suphadej Poonpipat 346,500.00 278,200.00 1,357,209.82 1,981,909.82 3. Mrs. Michele Chiu Kwok 346,500.00 0.00 1,357,209.82 1,703,709.82 4. Mr. Kiettisak Meecharoen 346,500.00 278,200.00 1,357,209.82 1,981,909.82 5. Mr. Narong Chivangkur 346,500.00 278,200.00 1,357,209.82 1,981,909.82 6. Mr. Sataporn Jinachitra 346,500.00 278,200.00 1,357,209.82 1,981,909.82 7. Assoc. Prof. Dr. Somjai Phagaphasvivathana 346,500.00 278,200.00 1,357,209.82 1,981,909.82 8. Ms. Suvarnapha Suvarnaprathip 346,500.00 278,200.00 1,357,209.82 1,981,909.82 9. Mr. Brendan George John King 346,500.00 278,200.00 1,357,209.82 1,981,909.82 10. Mr. Somjate Moosirilert 346,500.00 278,200.00 1,357,209.82 1,981,909.82 11. Mr. Kobsak Duangdee 346,500.00 256,800.00 1,357,209.82 1,960,509.82 12. Mr. Martin Weeks 173,250.00 85,600.00 1,357,209.82 1,616,059.82 13. Mr. Alberto Jaramillo 90,475.00 64,200.00 0.00 154,675.00 Total 4,421,725.00 3,188,600.00 17,643,727.69 25,254,052.69 Notes: 1. Mr. Martin Weeks resigned from his directorship on June 30, 2011. 2. Mr. Alberto Jaramillo has assumed his directorship since September 27, 2011.

List of Directors

Type of remuneration (Baht per year)

Monthly compensation

Meeting stipends

Performance allowance Total


The Remuneration of the Executive Committee TBANK’s Board of Directors has not yet determined the remuneration of the Executive Committee; therefore,

no payment to its members was made. The Remuneration of Executives Based on the guidance of the SEC and Section 4 and Section 25 of Financial Institution Business Act B.E.

2551, there were 37 persons in total who were considered executives in the position of manager and the first four executive below the manager. The total payments made to them in 2011 in the form of salaries, allowances, cost-of-living allowances and contribution payments to the provident fund amounted to THB 201,253,695.00.

The Remuneration of the Independent Director of the Subsidiaries With regard to the remuneration of the independent director of the subsidiaries, there is one independent

director who assumed the directorship in TLIFE and received the compensation amounted to THB 200,000.00 in 2011.

b) Remuneration Other Than Cash Payments As of December 31, 2011, there was no remuneration other than cash payments.

1. Mr. Narong Chivangkur 325,000.00 2. Mr. Sataporn Jinachitra 195,000.00 3. Mrs. Michele Chiu Kwok 0.00 Total 520,000.00

List of Directors

Table of the remuneration of the Nomination and Remuneration Committee

Type of remuneration (Baht per year)

Meeting stipends

1. Mr. Kiettisak Meecharoen 219,600.00 357,500.00 577,100.00 2. Mr. Sataporn Jinachitra 109,800.00 178,750.00 288,550.00 3. Assoc. Prof. Dr. Somjai Phagaphasvivathana 109,800.00 178,750.00 288,550.00 Total 439,200.00 715,000.00 1,154,200.00

Table of the remuneration of the Audit Committee

List of Directors Type of remuneration (Baht per year)

Monthly compensation Meeting stipends Total


RePoRT of The NomiNATioN ANd RemuNeRATioN CommiTTee

on march 26, 2002, TBANK’s Board of directors approved the establishment of the Nomination Committee and the Remuneration Committee. on march 25, 2009, the Bank Board of directors’ meeting adopted a resolution to combine the Nomination Committee and the Remuneration Committee together and name the Committee to “the Nomination and Remuneration Committee”. The Committees consisted of two independent directors and one non-executive director whose names as of december 31, 2011 were as follows;

1. mr. Narong Chivangkur Chairman (independent director) 2. mrs. michele Chiu Kwok member (Non-executive director) 3. mr. Sataporn Jinachitra member (independent director) mr. Thaneit Khantikaroon Secretary in 2011, the Nomination and Remuneration Committee convened thirteen meetings to process the following matters;

1. To select and nominate appropriate persons to be appointed as a director replacing the director resigning to the Bank’s Board of directors.

2. To review and nominate appropriate persons to be appointed as directors replacing the directors retiring by rotation for the year 2011 to the Bank’s Board of directors’ meeting and the Annual General meeting of the Shareholders.

3. To select and nominate the appropriate persons to be appointed as executives to the Board of directors. 4. To provide opportunities for shareholders to propose appropriate persons to be appointed as Bank’s directors in

the 2012 Annual General meeting of Shareholders of Thanachart Bank Public Company Limited. 5. To review and consider the remuneration packages for directors and sub-committees, taking into consideration

that such remuneration package commensurate with the assigned duties and responsibilities, the Board of directors’ and sub-committee performances, and the Bank’s overall performance 2011 remuneration packages were proposed for approval at the Bank’s Board of directors meeting and the Annual General meeting of Shareholders for the year 2011.

6. To consider the performance evaluation, adjustment of annual salary and bonus of Chairman of the executive Committee, Chief executive officer and President, and executives.

7. To consider the remuneration of the Chairman of the executive Committee and Chief executive officer and President.

8. To recommend the Thanachart Group’s executives Succession Plan. 9. To recommend related issues of the salary structure and salary survey results of financial institutions.

(Mr. Narong Chivangkur) Chairman of the Nomination and Remuneration Committee


suPeRvision And MAnAgeMenT sTRuCTuRes

Investment Portfolio

Committee

Asset and Liability Management

Committee Credit Committee

IT Security Management Committee

office of executive Committee Chairman and Ceo

Chief Executive Officer and Presidentintegration and Change

Risk Management Committee

Compliance unit

investment Management

As of december 31, 2011

Executive Committee

Board of Directors


BoARd of diReCToRs And MAnAgeMenT TeAM

Mr. Banterng Tantivit Chairman (non-executive director) Age 67 years Education(s) • MasterofScience(Finance)inManagement, MassachusettsInstituteofTechnology,USA • BachelorofScienceinElectricalEngineering, MassachusettsInstituteofTechnology,USA Directorship and executive ThaiInstituteofDirectorsAssociationtraining program(s) • DirectorAccreditationProgram(DAP),Class25/2004 Experience(s) in the past 5 years 2006–Present • ViceChairman,ThanachartInsuranceCompanyLimited • Director,SiamPiwatHoldingCompanyLimited2005–Present • Chairman,ThanachartLifeAssuranceCompanyLimited2003–Present • Chairman,MBKResortPublicCompanyLimited • Director,SiamPiwatCompanyLimited • Director,B.V.HoldingCompanyLimited • Chairman,PlanEstateCompanyLimited2001–Present • Advisor,DusitThaniPublicCompanyLimited • Advisor,PatumRiceMillandGranaryPublicCompanyLimited1994–Present • Chairman,ThanachartCapitalPublicCompanyLimited1989–Present • ChairmanandChairmanoftheExecutiveCommittee, MBKPublicCompanyLimited1987–Present • Director,DeebukCompanyLimited • Director,ThaiFarmingCompanyLimited2010–2011 • Chairman,SiamCityBankPublicCompanyLimited2006–2010 • Director,ArsomSilpInstitutionoftheArtsCouncil Family relationship with none management No. of TBANK share(s) held none


Mr. suphadej Poonpipat ViceChairmanandChairmanoftheExecutiveCommittee(executive director) Age 61 years Education(s) •MasterofScience,UniversityofWisconsin,USA •BachelorofBusinessAdministrationandAccounting,ChulalongkornUniversity Directorship and executive ThaiInstituteofDirectorsAssociation training program(s) •DirectorAccreditationProgram(DAP),Class8/2004 CapitalMarketAcademy,TheStockExchangeofThailand •LeadershipProgram,Class8/2009 Experience(s) in the past 5 years 2011–Present •ViceChairmanandChairmanoftheExecutiveCommittee, Patum Rice Mill and granary Public Company Limited 2007–Present •Director,RoyalOrchidHotel(Thailand)PublicCompanyLimited •Director,ThaiRoyalOrchidRealEstateCompanyLimited2006–Present •Director,SiamPiwatHoldingCompanyLimited2005–Present •DirectorandChairmanoftheExecutiveCommittee, Thanachart insurance Company Limited •Director,MBKResortPublicCompanyLimited2003–Present •DirectorandChairmanoftheExecutiveCommittee, ThanachartLifeAssuranceCompanyLimited •Director,PlanEstateCompanyLimited •Director,SiamPiwatCompanyLimited •ViceChairman,MemberoftheCompensationandNominationCommitteeand ViceChairmanoftheExecutiveCommittee,MBKPublicCompanyLimited1990–Present •ViceChairman,ChairmanoftheExecutiveCommitteeand PresidentandChiefExecutiveOfficer,ThanachartCapitalPublicCompanyLimited (HoldingViceChairmanpositionintheBoardofDirectorsandChairmanposition in the executive Committee in 2007) 2010–2011 •ViceChairman,SiamCityBankPublicCompanyLimited2000–2011 •Advisor,PatumRiceMillandGranaryPublicCompanyLimited1992–2010 •Director,AdvancedInfoServicePublicCompanyLimited Family relationship with none management No. of TBANK share(s) held none


Mrs.MicheleChiuKwokViceChairpersonandMemberoftheNominationand Remuneration Committee (non-executive director) Age 52years Education(s) • MasterofBusinessAdministration(Finance&Marketing), UniversityofBritishColumbia,Canada • BachelorofScienceinMathematics,UniversityofBritishColumbia,Canada Directorship and executive none training program(s) Experience(s) in the past 5 years 2008–Present • Director,CanadaChinaBusinessCouncil,Canada2006–Present • Governor,TheCanadaChamberofCommerce,HongKong • SeniorVicePresident/RegionalHead,Asia/PacificandMiddleEast, TheBankofNovaScotia,HongKong • Director,Scotiabank(HongKong)Limited,HongKong • Director,BoracayLimited,HongKong • Director,TheBankofNovaScotiaAsiaLimited,Singapore • Director,TheBankofNovaScotiaBerhad,Malaysia • Director,Scotiatrust(Asia)Limited,HongKong2010–2011 • ViceChairmanandMemberoftheNominationandRemunerationCommittee, siam City Bank Public Company Limited Family relationship with none management No. of TBANK share(s) held none


Mr.KiettisakMeecharoenChairmanoftheAuditCommittee(independent director) Age 65years Education(s) • MasterofTheoreticalEconomics,KeioUniversity,Japan • BachelorofScienceinFinance,HitotsubashiUniversity,Japan Directorship and executive ThaiInstituteofDirectorsAssociation training program(s) • DirectorAccreditationProgram(DAP),Class40/2005 • AuditCommitteeProgram(ACP),Class10/2005 HarvardUniversity • BankingandMonetaryPolicyinDevelopingCountriesProgram Experience(s) in the past 5 years 2005–Present • IndependentDirector,TararomEnterprisePublicCompanyLimited2000–Present • IndependentDirector,ThanachartLifeAssuranceCompanyLimited • IndependentDirectorandChairmanoftheAuditCommittee, SafetyInsurancePublicCompanyLimited2010–2011 • IndependentDirectorandChairmanoftheAuditCommittee, siam City Bank Public Company Limited Family relationship with none management No. of TBANK share(s) held none

240Annual Report 2011 Thanachart Bank Public Company Limited

Mr. narong Chivangkur ChairmanoftheNominationandRemunerationCommittee(independent director) Age 67 years Education(s) • ManagementDevelopmentProgram,AsianInstituteofManagement,Philippines • FinancialManagementProgram,RochesterInstituteofTechnology,USA Directorship and executive ThaiInstituteofDirectorsAssociation training program(s) • RoleoftheNominationsandGovernanceCommittee(RNG),Class1/2011 • FinancialInstitutionsGovernanceProgram(FGP),Class2/2011 • AuditCommitteeProgram(ACP),Class32/2010 • FinancialStatementforDirectors(FSD),Class4/2009 • SuccessfulFormulation&ExecutiontheStrategy(SFE),Class2/2008 • RoleoftheCompensationCommittee(RCC),Class4/2007 • CorporateSocialResponsibility(CSR),Class1/2007 • DirectorCertificationProgram(DCP),Class34/2003 Experience(s) in the past 5 years 2005–Present • Director,MomchailaiDevelopmentCompanyLimited2003–Present • Director,MomentumIMCompanyLimited2000–Present • Director,MomentumBBSCompanyLimited2010–2011 • DirectorandChairmanoftheNominationandRemunerationCommittee, siam City Bank Public Company Limited 2004–2011 • Director,MomentumSaleandDistributionCompanyLimited Family relationship with none management No. of TBANK share(s) held none

Annual Report 2011 Thanachart Bank Public Company Limited241

Ms. suvarnapha suvarnaprathip ViceChairpersonoftheExecutiveCommittee(ExecutiveDirector) Age 66 years Education(s) • BachelorofEconomics,MonashUniversity,Australia • Certificate,ExecutiveCommercialLendingTrainingProgram,BankerTrust, NewYork,USA Directorship and executive ThaiInstituteofDirectorsAssociation training program(s) • DirectorAccreditationProgram(DAP),Class20/2004 Experience(s) in the past 5 years 2005–Present • DirectorandChairpersonoftheExecutiveCommittee, Thanachart Capital Public Company Limited • DirectorandMemberoftheExecutiveCommittee, ThanachartLifeAssuranceCompanyLimited1991 – Present • Director,SeaconDevelopmentPublicCompanyLimited2010 – 2011 • DirectorandViceChairpersonoftheExecutiveCommittee, siam City Bank Public Company Limited Family relationship with none management No. of TBANK share(s) held none


Mr.Sataporn JinachitraMemberoftheAuditCommitteeandMemberoftheNominationand Remuneration Committee (independent director) Age 63 years Education(s) • MasterofScience(Econometrics), TheLondonSchoolofEconomicsandPoliticalScience(UniversityofLondon), england • BachelorofScience(Economics),UniversityCollegeLondon (UniversityofLondon),England • BachelorofArts(Law),SukhothaiThammathiratOpenUniversity Directorship and executive ThaiInstituteofDirectorsAssociation training program(s) • RoleoftheChairmanProgram(RCP),Class24/2010 • RoleoftheCompensationCommittee(RCC),Class10/2010 • CorporateSocialResponsibility(CSR),Class1/2007 • DCPRefresherCourse,Class2/2006 • DirectorCertificationProgram(DCP),Class0/2000 Experience(s) in the past 5 years 2010 – 2011 • IndependentDirector,MemberoftheAuditCommitteeand MemberoftheNominationandRemunerationCommittee, siam City Bank Public Company Limited 2006 – 2011 • DisputeResolutionCommittee,InterconnectionInstitution,NTC1999 – 2011 • Director,ThaiInstituteofDirectorsAssociation2002 – 2006 • President,Export-ImportBankofThailand Family relationship with none management No. of TBANK share(s) held none


Mr.BrendanGeorgeJohnKingViceChairmanoftheExecutiveCommitteeandDeputyChiefExecutiveOfficer(ExecutiveDirector) Age 48years Education(s) • MasterofBusinessAdministration(Finance&InternationalBusiness), YorkUniversity,Canada • BachelorofArts(Business&Economics),YorkUniversity,Canada Directorship and executive • MarketingCertificate,Queen’sUniversityExecutiveManagementProgramtraining program(s) • HonorsDiplomainGeneralManagement,theInstituteofCanadianBankers • TheFundamentalsofCoachingExcellence • Moody’sRiskAnalysis • CommercialSalesLeadershipProgram,Scotiabank • InternationalCommercialBankerDevelopmentProgram,Scotiabank • MerchantBankingIntroductoryCourse • IntroductiontoInvestmentBankingandBondStructuring • Leader-CoachProgram,Scotiabank • StrategicSellingSkillsCourse,Scotiabank Experience(s) in the past 5 years 2011–Present • Director,ScotiaNetherlandsHoldingB.V.2004–Present • Director,Scotiabank(HongKong)Limited,HongKong • Director,ScotiaNominees(HongKong)Limited,HongKong2010–2011 • DirectorandViceChairmanoftheExecutiveCommittee, siam City Bank Public Company Limited 2002–2004 • GeneralManager,InternationalCorporateFinance, Scotiabank(Bahamas)Limited,USA Family relationship with none management No. of TBANK share(s) held none


Assoc.Prof.Dr.Somjai PhagaphasvivathanaMemberoftheAuditCommittee(IndependentDirector) Age 66 years Education(s) • DoctoradodeEstado,FacultaddeCienciaPolitica, UniversidadComplutensedeMadrid,Spain • Diplomed’EtudesSuperieures(EconomicIntegration), UniversitedeNancy,France • Licenciatura,FacultaddeCienciaPoliticayEconomica, UniversidadComplutensedeMadrid,Spain • BeachelorofArts,ChulalongkornUniversity Directorship and executive ThaiInstituteofDirectorsAssociation training program(s) • DirectorAccreditationProgram(DAP),Class34/2005 Experience(s) in the past 5 years 2006–Present • IndependentDirectorandChairmanoftheAuditCommittee, seAfCo Public Company Limited 1997–Present • IndependentDirectorandChairmanoftheAuditCommittee, Lee feed Mill Public Company Limited • Director,KrungthepThanakomCompanyLimited • Director,ThaiHuaRubberPublicCompanyLimited1996–Present • IndependentDirectorandMemberoftheAuditCommittee, Amarin Printing and Publishing Public Company Limited 2010–2011 • IndependentDirectorandMemberoftheAuditCommittee, siam City Bank Public Company Limited Family relationship with none management No. of TBANK share(s) held none


Mr.KobsakDuangdeeMemberoftheExecutiveCommitteeandExecutiveVicePresident(executive director) Age 55years Education(s) • MasterofBusinessAdministration(Finance),UniversityofTennessee, Knoxville,USA • BachelorofCommerceandAccountancy,ChulalongkornUniversity Directorship and executive ThaiInstituteofDirectorsAssociation training program(s) • FinancialInstitutionsGovernanceProgram(FGP),Class2/2011 • DirectorAccreditationProgram(DAP),Class73/2008Experience(s) in the past 5 years 2011–Present • Liquidator,SCIBPublicCompanyLimited2008–Present • DirectorandMemberoftheExecutiveCommittee, Thanachart securities Public Company Limited • VicePresidentandCountryHead, TheBankofNovaScotia,BangkokRepresentativeOffice2010–2011 • DirectorandMemberoftheExecutiveCommittee, siam City Bank Public Company Limited • Director,SiamCitySecuritiesCompanyLimited2006–2010 • Director,Thai-CanadianChamberofCommerce1997–2008 • VicePresidentandCountryHead,TheBankofNovaScotia,BangkokBranch2003–2005 • President,Thai-CanadianChamberofCommerce Family relationship with none management No. of TBANK share(s) held none


Mr. somjate Moosirilert MemberoftheExecutiveCommitteeandChiefExecutiveCommitteeand President (executive director) Age 54years Education(s) • MasterofManagement, SasinGraduateInstituteofBusinessAdministrationofChulalongkornUniversity • BachelorofBusinessAdmininstration,ThammasatUniversity Directorship and executive ThaiInstituteofDirectorsAssociation training program(s) • RoleoftheChairmanProgram(RCP),Class5/2001 CapitalMarketAcademy,TheStockExchangeofThailand • LeadershipProgram,Class5/2007 JudicialTrainingInstitute • CertificateintheprogramforSeniorExecutivesonJusticeAdministration, Class9/2005 Experience(s) in the past 5 years 2011–Present • Governor,TheStockExchangeofThailand • ExecutiveDirector,TheThaiBankers’Association • ViceChairman,ThaiListedCompaniesAssociation • Chairman,TSAssetManagementCompanyLimited2010–Present • ChairmanandChairmanoftheExecutiveCommittee, SiamCityLifeAssuranceCompanyLimited • DirectorandChairmanoftheExecutiveCommittee, Thanachart fund Management Company Limited • DirectorandMemberoftheExecutiveCommittee, Thanachart insurance Company Limited • Advisor,AssociationofSecuritiesCompanies2009–Present • Chairman,ThanachartSecuritiesPublicCompanyLimited • Director,MemberoftheExecutiveCommittee andSeniorExecutiveVicePresident,ThanachartCapitalPublicCompanyLimited2010–2011 • Chairman,SiamCityAssetManagementCompanyLimited • Chairman,ThanachartFundManagementCompanyLimited • Chairman,SiamCitySecuritiesCompanyLimited • Director,ChairmanoftheExecutiveCommitteeandChiefExecutiveOfficer andPresident,SiamCityBankPublicCompanyLimited2010 • Director,ThanachartLifeAssuranceCompanyLimited2009–2011 • ViceChairman,TheStockExchangeofThailand • Director,ThaiCapitalMarketDevelopmentCommittee2009–2010 • PresidentandChiefExecutiveOfficer,ThanachartCapitalPublicCompanyLimited • SeniorExecutiveVicePresident,ThanachartBankPublicCompanyLimited • Director,TSFCSecuritiesPublicCompanyLimited • ExecutiveDirector,AssociationofSecuritiesCompanies2009 • ChairmanoftheExecutiveCommittee,ThanachartSecuritiesPublicCompanyLimited2002–2008 • President,ThaiAssetManagementCorporation Family relationship with none management No. of TBANK share(s) held none


Mr.Alberto Jaramillodirector (non-executive director) Age 40years Education(s) • MasterofBusinessAdministration, UniversitédeMontréalÉcoledesHautesÉtudesCommerciales,Canada • AdministradordeEmpresas, InstitutoColombianodeEstudiosSuperioresdeIncolda,Colombia Directorship and executive none training program(s) Experience(s) in the past 5 years 2011–Present • VicePresident&RegionalTreasurer,TheBankofNovaScotia,HongKong2005–2011 • Treasurer,TheBankofNovaScotiaInverlat,Mexico2001–2005 • RiskManagerLatinAmerica,TheBankofNovaScotia,Canada1998–1999 • TradingGroupDirector,CorfinsuraColombia1996–1998 • Trader,CorfivalleColombia Family relationship with none management No. of TBANK share(s) held none

Mrs. noossara Roonsamrarn ExecutiveVicePresident Age 53years Education(s) • MasterofBusinessAdministration,National InstituteofDevelopmentAdministration • BachelorofPoliticalScience,ChulalongkornUniversity Directorship and executive HarvardBusinessSchool training program(s) • CertificateinAdvancedManagementProgram(AMP168) ThailandNationalDefenceCollege • TheJoint-State-PrivateSectorsCourse(NDC22) CapitalMarketAcademy,TheStockExchangeofThailand • LeadershipProgram,Class7(CMA7) ThaiInstituteofDirectorsAssociation • DCPRefresherCourse,Class4/2007 • DirectorCertificationProgram(DCP),Class19/2002 Experience(s) in the past 5 years 1997–Present • DirectorandMemberoftheAuditCommittee, Thanachart insurance Company Limited 2005–2008 • DirectorandMemberoftheAuditCommittee, Thanachart fund Management Company Limited Family relationship with none management No. of TBANK share(s) held none


Mr. Piyaphong Artmangkorn ExecutiveVicePresident Age 54years Education(s) • MasterofPublicAdministration(Taxation),UniversityofSouthernCalifornia,USA • BachelorofEconomics,ThammasatUniversity Directorship and executive ThaiInstituteofDirectorsAssociation training program(s) • DirectorAccreditationProgram(DAP),Class8/2004 Experience(s) in the past 5 years 1998–Present • Director,MBKPublicCompanyLimited2006–Present • ExecutiveCommittee,MBKPublicCompanyLimited2010 • Director,SiamCityBankPublicCompanyLimited2005–2009 • ChairmanandChairmanoftheExecutiveCommittee, Thanachart securities Public Company Limited 2001–2008 • Director,ThaiRoyalOrchidRealEstateCompanyLimited2000–2008 • Director,RoyalOrchidHotel(Thailand)PublicCompanyLimited2005–2007 • DirectorandMemberoftheExecutiveCommittee, Thanachart Capital Public Company Limited 1998–2005 • ExecutiveVicePresident,NationalFinancePublicCompanyLimited Family relationship with none management No. of TBANK share(s) held none


Mr. nophadon Ruengchinda ExecutiveVicePresident Age 54years Education(s) • MasterofManagement, SasinGraduateInstituteofBusinessAdministrationofChulalongkornUniversity • MasterofBusinessAdministration, NationalInstituteofDevelopmentAdministration • BachelorofPoliticalScience,ChulalongkornUniversity Directorship and executive ThaiInstituteofDirectorsAssociation training program(s) • DirectorCertificationProgram(DCP),Class45/2004 • FinanceforNon-FinanceDirectors(FND),Class11/2004 Experience(s) in the past 5 years 2009–Present • Director,ThanachartTrainingandDevelopmentCompanyLimited2005–Present • Director,ThanachartLifeAssuranceCompanyLimited1998–Present • Director,ThanachartInsuranceCompanyLimited2010 • Director,SiamCityBankPublicCompanyLimited2009–2010 • Director,TLeasingCompanyLimited2004–2009 • DirectorandChairmanoftheAuditCommittee, Thanachart fund Management Company Limited 2000–2009 • Director,ThaiInternationalRentaCarCompanyLimited Family relationship with none management No. of TBANK share(s) held none


Mr.Anuwat LuengtaweekulExecutiveVicePresident Age 48years Education(s) • MasterofBusinessAdministration,RangsitUniversity • BachelorofScience(Accounting),KasetsartUniversity Directorship and executive ThaiInstituteofDirectorsAssociation training program(s) • SuccessfulFormulation&ExecutiontheStrategy(SFE),Class3/2009 • BoardandPerformanceEvaluationProgram • DirectorCertificationProgram(DCP),Class24/2002 AssociationofFinanceCompanies • Financers’ExecutiveDevelopmentProgram,Class9/1994 Experience(s) in the past 5 years 2010–Present • Director,RatchthaniLeasingPublicCompanyLimited2010 • Director,SiamCityBankPublicCompanyLimited2007–2009 • Director,MemberoftheExecutiveCommitteeandExecutiveVicePresident, Thanachart Capital Public Company Limited Family relationship with none management No. of TBANK share(s) held none

Mr. Ajay Pratap Mundkur ExecutiveVicePresident Age 47years Education(s) • MasterofBusinessAdministration,JohnM.OnlinSchoolofBusiness, WashingtonUniversity,St.Louis,USA • PostGraduateDiplomainFinancialManagement, SymbiosisInstituteofBusinessManagement,Pune,India • BachelorofCommerce(AccountingandAuditing),UniversityofPune,India Directorship and executive none training program(s) Experience(s) in the past 5 years 2005–2009 • VicePresident,RetailBanking,Asia-PacificRegion,TheBankofNovaScotia Family relationship with none management No. of TBANK share(s) held none


Mr. enghug nontikarn ExecutiveVicePresident Age 55years Education(s) • MasterofBusinessAdministration,ThammasatUniversity • BachelorofEconomics,ThammasatUniversity Directorship and executive ThaiInstituteofDirectorsAssociation training program(s) • DirectorAccreditationProgram(DAP),Class25/2004 Experience(s) in the past 5 years 1995–Present • IndependentDirector,MemberoftheAuditCommitteeand MemberoftheNominationCommittee, SrithaiSuperwarePublicCompanyLimited2006–2011 • SeniorExecutiveVicePresident,SiamCityBankPublicCompanyLimited Family relationship with none management No. of TBANK share(s) held none


Mr. Rathian srimongkol ExecutiveVicePresident Age 52years Education(s) • MasterofBusinessAdministration,ThammasatUniversity • MasterofPublicAdministration(GeneralManagement), SuanSunandhaRajabhatUniversity • BachelorofMedicine(M.D.),MahidolUniversity • BachelorofScience(MedicalScience),MahidolUniversity • Diploma,NationalDefenceCollege,theJoint-State-PrivateSectorsCourse,Class21 Directorship and executive KingPrajadhipok’sInstitute training program(s) • AdvancedCertificateCourseinPoliticsandGovernanceinDemocraticSystemfor Executives,Class9 CapitalMarketAcademy,TheStockExchangeofThailand • LeadershipProgram,Class11 Experience(s) in the past 5 years 2009–Present • ViceChairmanandChairmanoftheAuditCommittee, IndoramaVenturesPublicCompanyLimited2010–2011 • DirectorandChairmanoftheAuditCommittee, indorama Polyimers Public Company Limited 2008–2011 • ExecutiveVicePresident,SiamCityBankPublicCompanyLimited2008–2010 • Director,TOTPublicCompanyLimited2008 • Chairman,IndustrialEstateAuthorityofThailand2004–2008 • FirstExecutiveVicePresident,SiamCityBankPublicCompanyLimited • Chairman,TheZoologicalParkOrganization Family relationship with none management No. of TBANK share(s) held none Note: Mr.RathianSrimongkolresignedfromExecutiveVicePresidentinTBANKon1January2012

Mrs.PhenchanWeerawuthFirstVicePresident,Accounting Age 59years Education(s) • MasterofAccounting,ThammasatUniversity • BachelorofAccounting,ThammasatUniversity Directorship and executive none training program(s) Experience(s) in the past 5 years 2005–2011 • FirstVicePresident,Accounting,SiamCityBankPublicCompanyLimited Family relationship with none management No. of TBANK share(s) held none

Annual R


ompany Lim

ited253

TheinformationoftheExecutivesandAuthorizedpersons’positioninsubsidiary,associatedandrelatedcompanies As at 31 December 2011

Name List

Mr. Banterng Tantivit XXX XXX XX XXX XXX/// X XXX X X XXX X X

Mr. suphadej Poonpipat XX/// XX///A X///X/// XX// X X X X XX/// X X

Mrs.Michele ChiuKwok XX X X g X X X X X

Mr.Kiettisak Meecharoen X X X X

Mr. narong Chivangkur X X X X

Ms. suvarnapha suvarnaprathip X// X// X/ X

Mr.Sataporn Jinachitra X

Mr.Brendan GeorgeJohnKing X//B X X X

Assoc.Prof.Dr.Somjai X X X X X X

Phagaphasvivathana

Mr.Kobsak Duangdee X/D X/ G

Mr. somjate Moosirilert X/A X/C XXX X/// X/ XXX/// XXX X

Mr.Alberto Jaramillo X X f

Mrs. noossara Roonsamrarn d X

Mr. Piyaphong Artmangkorn D X/

Mr. nophadon Ruengchinda d X X X

Mr.Anuwat Luengtaweekul d X

Mr. Ajay Pratap Mundkur d

Mr. enghug nontikarn d X

Mr. Rathian srimongkol d X

Mrs.Phenchan Weerawuth e

TB

AN

K Subsidiary CompaniesAssoci-

ated Company

ParentCompany Related Companies

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46

Note: XXX=Chairman XX=ViceChairman X=Director ///=ChairmanoftheExecutiveCommittee //=ViceChairmanoftheExecutiveCommittee /=MemberoftheExecutiveCommittee

A=PresidentandChiefExecutiveOfficer B=DeputyChiefExecutiveOfficer C=SeniorExecutiveVicePresident D=ExecutiveVicePresident E=FirstVicePresident

F=VicePresident G=AuthorizedPersonManagementPower


ListofParentCompanySubsidiary,AssociatedandRelatedCompanies Parent Company 1. Thanachart Capital Public Company Limited Subsidiary Companies 2. Thanachart securities Public Company Limited 7. Ts Assets Management Company Limited 3. Thanachart fund Management Company Limited 8. Rachthani Leasing Public Company Limited 4. ThanachartInsuranceCompanyLimited 9. ThanachartManagementandServiceCompanyLimited 5. ThanachartLifeAssuranceCompanyLimited 10. ThanachartTrainingandDevelopmentCompanyLimited 6. SiamCityLifeAssuranceCompanyLimited Associated Companies 11. MBKPublicCompanyLimited Related Companies 12. SiamPiwatHoldingCompanyLimited 31. SafetyInsurancePublicCompanyLimited13. MBKResortPublicCompanyLimited 32. MomChailaiDevelopmentCompanyLimited14. SiamPiwatCompanyLimited 33. MomentumIMCompanyLimited15. B.V.HoldingCompanyLimited 34. MomentumBBSCompanyLimited16. PlanEstateCompanyLimited 35. SeaconDevelopmentPublicCompanyLimited17. DeebukCompanyLimited 36. ScotiaNetherlandsHoldingB.V.18. ThaiFarmingCompanyLimited 37. ScotiaNominees(HongKong)Limited,HongKong 19. Patum Rice Mill and granary Public Company Limited 38. seAfCo Public Company Limited 20. RoyalOrchidHotel(Thailand)PublicCompanyLimited 39. LeeFeedMillPublicCompanyLimited21. ThaiRoyalOrchidRealEstateCompanyLimited 40. KrungthepThanakomCompanyLimited22. CanadaChinaBusinessCouncil,Canada 41. ThaiHuaRubberPublicCompanyLimited23. TheCanadianChamberofCommerce,HongKong 42. AmarinPrinting&PublishingPublicCompanyLimited24. TheBankofNovaScotia,HongKong 43. SCIBPublicCompanyLimited25. Scotiabank(HongKong)Limited,HongKong 44. TheBankofNovaScotia,BangkokRepresentativeOffice26. BoracayLimited,HongKong 45. TheStockExchangeofThailand27. TheBankofNovaScotiaAsiaLimited,Singapore 46. SrithaiSuperwarePublicCompanyLimited28. TheBankofNovaScotiaBerhad,Malaysia 47. IndoramaVenturesPublicCompanyLimited29. Scotiatrust(Asia)Limited,HongKong 30. Tararom enterprise Public Company Limited


1 Thanachart Securities Plc. Securities Ordinary 1,500,000,000 1,499,999,930 100.00

444 MBK Tower,14th, 18th, and 19th Floor, Share

Phayathai Road, Wangmai, Pathumwan,

Bangkok 10330

Tel. +66 (0) 2217-8888,

+66 (0) 2217-9595

Fax +66 (0) 2217-9642

2 Thanachart Insurance Co., Ltd. Non-Life Ordinary 74,000,000 73,999,434 100.00

999/1 The Nine Tower 2nd-3rd, 5th Floor, Insurance Share

999/2, 4th Floor, 999/3 4th Floor,

Rama 9 Road, Suanluang, Bangkok 10250

Tel. +66 (0) 2308-9300

Fax +66 (0) 2308-9333

3 Thanachart Life Assurance Co., Ltd. Life Ordinary 50,000,000 49,999,400 100.00

999/1 The Ninth Tower 1st, 4th-5th Floor, Assurance Share

999/4, 4th Floor, Rama 9 Road, Suanluang,

Bangkok 10250

Tel. +66 (0) 2308-9400

Fax +66 (0) 2308-9444

4 Thanachart Legal and Appraisal Co., Ltd.3 Legal Ordinary 1,000,000 999,993 100.00

128/20-21 Phayathai Plaza Office, 3rd Floor, Advisory Share

Phayathai Road, Thung Phaya Thai, Services

Ratchathewi, Bangkok 10400 and Appraisal

Tel. +66 (0) 2216-6677

Fax +66 (0) 2216-9022

5 Thanachart Management and Services Services Ordinary 600,000 599,993 100.00

Co., Ltd. Share

128/23 Phayathai Plaza Office, 3rd Floor,

Phayathai Road, Thung Phaya Thai,

Ratchathewi, Bangkok 10400

Tel. +66 (0) 2612-1500

Fax +66 (0) 2612-1400

Investment of TBANK in Other Companies

Details of TBANK and its Subsidiary Companies, Associated Companies, and Other Companies in which it hold 10 percent of shares and over

Type of Type of Total numberv of Total number of

Percent of No. Company/Locations

Business shares paid-up shares shares held TBANK’s

shareholding1

GeNeRAL INFORMATION


6 Thanachart Training and Development Training Ordinary 500,000 499,993 100.00

Co., Ltd.

207/6 Thanachart Building, 5th Floor,

Ratchadaphisek Road, Dindaeng,

Bangkok 10400

Tel. +66 (0) 2290-3410

Fax +66 (0) 2290-3419

7 Thanachart Group Leasing Co., Ltd. Leasing Ordinary 36,000,000 35,999,994 100.00

444 MBK Tower, 11th Floor, Phayathai Road, Share

Wangmai, Pathumwan, Bangkok 10330

Tel. +66 (0) 2217-8000,

+66 (0) 2217-8333

Fax +66 (0) 2611-9488

8 National Leasing Co., Ltd.2 Leasing Ordinary 600,000 599,994 100.00

444 MBK Tower, 12th Floor, Share

Phayathai Road, Wangmai, Phayathai,

Pathumwan, Bangkok 10330

Tel. +66 (0) 2217-8000

9 Siam City Life Assurance Co., Ltd. Life Ordinary 70,000,000 69,999,994 100.00

231 Thanachart Park Place, 9th-11th Floor, Assurance Share

Rachadamri Road, Lumpini, Pathumwan,

Bangkok 10330

Tel. +66 (0) 2207-4200

Fax +66 (0) 2253-8484

10 SCIB Services Co., Ltd. Services Ordinary 100,000 99,998 100.00

1091/230 New Petchburi Road, Share

Makkasan, Ratchathewi, Bangkok 10400

Tel. +66 (0) 2208-5061-2

Fax +66 (0) 2651-6611

11 TS Asset Management Co., Ltd. Non- Ordinary 200,000,000 199,999,997 100.00

1101 Petchburi Building, 9th Floor performing Share

New Petchburi Road, Makkasan, asset

Ratchathewi, Bangkok 10400 management

Tel. +66 (0) 2208-5555

Fax +66 (0) 2208-5892

12 Thanachart Broker Co., Ltd. Insurance Ordinary 10,000,000 9,999,000 99.99

1 Glas Haus Building, 4th Floor, Broker Share

Soi Sukhumvit 25, Klongtoey Nuea,

Watthana, Bangkok 10110

Tel. +66 (0) 2685-0200,

+66 (0) 2685-0300

Fax +66 (0) 0685-0322, 2685-0333




shareholding1


13 SCIB Public Co., Ltd.3 Sale of Ordinary 2,112,810,676 2,112,375,422 99.98

1091/230 New Petchburi Road, company Share

Makkasan, Ratchathewi, assets

Bangkok 10400

Tel. +66 (0) 2208-5061-2

Fax +66 (0) 2651-6611

14 Thanachart Fund Management Co., Ltd. Mutual Ordinary 10,000,000 7,499,993 75.00

898 Ploenchit Tower, 15th and 18th Floor, Fund Shar

Ploenchit Road, Lumpini, Pathumwan, Management

Bangkok 10330

Tel. +66 (0) 2126-8300

Fax +66 (0) 2126-8398

15 Rachthani Leasing Public Co., Ltd. Leasing Ordinary 1,342,349,708 874,973,000 65.18

77/35-36 Sinn Sathorn Tower, 11upth Floor, Share

Krung Thonburi Road, Klong Ton Sai,

Klong San, Bangkok 10600

Tel. +66 (0) 2440-0844

Fax +66 (0) 2440-0848

16 Thoon Ruam Kan Co., Ltd.3 Others Ordinary 240,000 80,000 33.33

133/2 Soi Sukumvit 21, Sukumvit Road, Share

Klongtoey, Bangkok 10110

Tel. +66 (0) 2259-0284

Fax +66 (0) 2258-7043

17 Siam Samsung Life Insurance Co., Ltd. Insurance Ordinary 50,000,000 12,500,000 25.00

2922/222-227, 15th Floor, Share

2922/262, 21st Floor,

Charn Issara Tower II, New Petchburi Road,

Bangkapi, Huay Klang, Bangkok 10320

Tel. +66 (0) 2308-2261-8

Fax +66 (0) 2308-2269

18 Siam Media and Communication Co., Ltd.3 Commu- Ordinary 7,000,000 1,633,800 23.34

18 Building 2 West SCB Park Plaza, nication Share

17th-22nd Floor, Ratchadapisek Road,

Ladyao, Chatuchak, Bangkok 10900

Tel. +66 (0) 2544-2451

Fax +66 (0) 2544-3317

19 Siam City Leasing and Factoring Plc. Leasing Ordinary 29,999,971 4,500,000 15.00

1091/179-181 New Petchburi Road, Share

Makkasan, Ratchathewi, Bangkok 10400

Tel. +66 (0) 2254-8744




shareholding1


20 High Pressure Steal Pipe Industry Industrial Ordinary 500,001 70,470 14.09

Co., Ltd.3 pipe Share

36/4 Moo 2 Soi Wat Mahawong, Manufacturing

Phuchaosmingprai Road, Samrong,

Prapha Daeng, Samut Prakarn 10130

Tel. +66 (0) 2393-4485

21 Puen Pob Paet Co., Ltd. Medical Ordinary 100,000 9,998 10.00

444 MBK Tower, 9th Floor, Phayathai Road, Clinic Share

Wangmai, Pathumwan, Bangkok 10330

Tel. +66 (0) 2217-9836-7

22 Crystal City Development Co., Ltd.3 Construction Ordinary 750,000 75,000 10.00

419 Sathupradit Road, Chong Nonsi, Share

Yannawa Bangkok 10120

Tel. +66 (0) 2255-6470

Fax +66 (0) 2255-6495

23 Metropolitan Industrial Leasing Co., Ltd.3 Leasing Ordinary 5,000,000 500,000 10.00

81/42 Moo 5, Surasak, Sriracha, Share

Chonburi 20110

Tel. +66 (0) 3804-8052

24 Steel Top Co., Ltd. Manufacturing Ordinary 74,000,000 7,400,000 10.00

551/144 Sathupradit Road, Chong Nonsi, Share

Yannawa, Bangkok 10120

Tel. +66 (0) 2719-9643

25 Sahakol Chassis Co., Ltd. Vehicle Ordinary 45,000,000 4,500,000 10.00

1418/6-8 Phaholyotin Road, Lard Yao, Share

Chatuchak, Bangkok 10900

Tel. +66 (0) 2512-0336-41

Fax +66 (0) 2513-2424

26 Siam Tire Cord Co., Ltd. Textiles Ordinary 20,000 2,000 10.00

46/1 Moo 9, Bang Na-Trat Road, K. M. 39, and apparel Share

Bangprakong, Chachoengsao, 24180

Tel. +66 (0) 3853-8400-6

Fax +66 (0) 3853-8399

27 Soonvijai Development Co., Ltd.3 Construction Ordinary 13,000 1,300 10.00

1740 New Petchburi Road, Bangkapi, Share

Huai Khwang, Bangkok 10310




shareholding1


28 Modular Samko Co., Ltd.3 Household Ordinary 3,500,000 350,000 10.00

155 Moo 14, Suhkumvit Sai Kao Road, Share

Bangpakong, Chachoengsao 24130

Tel. +66 (0) 3853-2050-3

Fax +66 (0) 3853-0053

29 Siam Euro Leasing Co., Ltd.3 Finance Ordinary 13,000,000 1,300,000 10.00

20/22 Soi Prommitr, Suhkumvit Road, and Share

Klong Tan Nuea, Watthana, Securities

Bangkok 10110

30 Siam City Real Estate Services Co., Ltd.3 Construction Ordinary 1,000,000 100,000 10.00

62 Thaniya Building, 1st Floor, Share

Silom Road, Suriyawong,

Bangrak, Bangkok 10500

Notes: 1 Shareholding percentage shown included the shareholding of by related companies.

2 TBANK indirectly held shares through TGL which was in line with the definition of subsidiaries company announced by the SeT.

3 Held by TBANK, which is in the process of liquidation, dissolution, bankruptcy, receivership or abandoned.

TBANK’S ReFeReNCeS Location of Head office: 900 Tonson Tower, Ploenchit Road, Lumpini, Pathumwan, Bangkok 10330, Thailand Registration No.: 0107536001401 Registered Capital: THB 59,346,192,720, consist of common shares of 5,934,619,272 shares with a value of THB 10 per share. (As of December 31, 2011) Paid-up Capital: THB 55,136,649,030, consist of common shares of 5,513,664,903 shares with a value of THB 10 per share. (As of December 31, 2011) Website: www.thanachartbank.co.th Telephone: +66 (0) 2655-9000 Fax +66 (0) 2655-9001 Thanachart Contact Center: 1770




shareholding1


Name, Location, Telephone and Fax of Other References Ordinary shares Securities Representative/Registrar Thailand Securities Depository Company Limited 62 The Stock exchange of Thailand Building, Ratchadaphisek Road, Khlongtoei, Bangkok 10110, Thailand Tel. +66 (0) 2229-2800 Call Center +66 (0) 2229-2888 www.tsd.co.th Debentures TBANK155A, TBANK194A, TBANK197A and TBANK247A Debenture Representative/Registrar Thai Military Bank Public Company Limited 393 Silom Road, Silom, Bangrak, Bangkok 10500, Thailand Tel. +66 (0) 2230-6061 Fax +66 (0) 2230-6093 Website: www.tmbbank.com TBANK204A Debenture Representative/Registrar CIMB Thai Public Company Limited 44 Lungsuna Building, 15th Floor, Lungsuan Road, Lumpini, Pathumwan, Bangkok 10330, Thailand Tel. +66 (0) 2626-7503 Fax +66 (0) 2633-9026 Website: www.cimbthai.com TBANK196A Debenture Representative/Registrar Thanachart Bank Public Company Limited Securities and Trustee Services 1 Glas Haus Building, Ground Floor, Sukhumvit 25 Road, Klongtoey Nuea, Watthana, Bangkok 10110, Thailand Tel. +66 (0) 2207-4900 ext 1300, 1317 Fax +66 (0) 2207-4930-1 Website: www.thanachartbank.com Hybrid Tier I Debenture Representative/Registrar Thanachart Bank Public Company Limited Securities Operation Section 444 MBK Tower, 20th Floor, Payathai Road, Wangmai Pathumwan Bangkok 10330, Thailand Tel. +66 (0) 2217-8000 ext 3833 Fax +66 (0) 2611-4839 Website: www.thanachartbank.co.th Auditor Miss Phuphun Charoensuk, Certified Public Accountant (Thailand) No. 4950 Ernst & Young Office Limited 193/136-137 Lake Rajada Office Complex, 33rd Floor, Rachadaphisek Road, Klongtoey, Bangkok 10110, Thailand Tel. +66 (0) 2264-0777 Fax +66 (0) 2264-0789-90 Financial Advisor None Advisor or Manager under None Management Contract


Rank List Of Shareholders No. Of Shares Percentage of Shareholding

1. Thanachart Capital Public Company Limited 2,809,726,575 50.960 2. Scotia Netherlands Holdings B.V. 2,701,627,557 48.999 3. Mr. Thung-ngern Pum-ngern 418,462 0.008 4. Ms. Kittima Tolieng 157,525 0.003 5. Mr. Sathit Majurintangkurg 110,327 0.002 6. Ms. Piengjai Hanphanit 96,665 0.002 7. Mr. Wanchai Chirathivat 84,809 0.002 8. Mr. Thanawat Chareonthassanont 70,000 0.001 9. Mr. Pinit Laosoontorn 63,569 0.001 10. Mr. Somyos Jittipralungsri 60,000 0.001 By receivership of Legal execution Department of Thai Finance and Securities Plc. 11. Other Shareholders 1,249,414 0.023 Total Paid-up Capital 5,513,664,903 100.000 Thai Shareholders 2,811,994,046 51.000 Foreign Shareholders 2,701,670,857 49.000

Group of major shareholders who have significant influence over the formulation of management policies

There are two major shareholders who have significant influence over management policies, which are TCAP and the Scotia Netherlands Holdings B.V., which holds 50.960 percent and 48.999 percent of the total paid-up shares respectively.

TCAP does not have any major shareholder which has significant influence over its management policies or its

operation.

Source: Report of the Bank’s Major shareholders as of December 30, 2011 prepared by Thailand Securities Depository Co., Ltd.

STRUCTURe OF MAJOR SHAReHOLDeRS List of top ten major shareholders


Dividend Payment Policy Dividend Payment Policy of Thanachart Bank

TBANK has a policy to pay dividend out of its net profit after deduction of all reserve funds according to requiremrnt of the relevant laws. Payment of dividends is subject to investment plans and other necessaries as seen appropriate by the Board of Directors. The Board, however, may approve to pay an interim dividend and will report to the Shareholders at the next Shareholders Meeting.

At the Annual General Meeting of Shareholders for the year 2011 held on 7 April 2011, the shareholders passed

a resolution approving the dividend payment for the year 2010 performance to the Bank shareholders at a rate of THB 0.40 per share. The dividend payment was made, on 26 April 2011, to 5,513,664,903 shares in the total amount of THB 2,205,465,961.20. Dividend Payment Policy of the Subsidiary Companies

TBANK has not fixed a dividend payout ratio for its subsidiaries. Their dividend payments shall depend on

the operating results of each company.

The subsidiary companies, similar to TBANK, have a policy to paying dividend out of their net profit after deduction of all reserve funds according to requirments of the relevant laws. Payment of dividends is subject to investment plans and other necessaries as seen appropriate by the Board of Directors. The Board, however, may approve to pay an interim dividend and will report to the shareholders at the next Shareholders Meeting.


COMPANIeS IN THANACHART GROUP THANACHART CAPITAL Public Company Limited 444 MBK Tower, 10th-11 th and 15th-20th Floor, Phayathai Road,Wangmai, Pathumwan, Bangkok 10330, THAILAND Tel. +66 (0) 2217-8444, 2217-8000, 2611-9111 Fax +66 (0) 2613-6099 www.thanachart.co.th Registration No. 0107536000510 THANACHART BANK Public Company Limited 900 Tonson Tower, Ploenchit Road, Lumpini, Pathumwan, Bangkok 10330, THAILAND Tel. +66 (0) 2655-9000 Fax +66 (0) 2655-9001 www.thanachartbank.co.th Registration No. 0107536001401 THANACHART SECURITIES Public Company Limited 444 MBK Tower, 14th, 18th and 19th Floor, Phayathai Road, Wangmai, Pathumwan, Bangkok 10330, THAILAND Tel. +66 (0) 2217-8888, 2217-9595, 2611-9222 Fax +66 (0) 2217-9642 www.tnsitrade.com Registration No. 0107557000591 THANACHART FUND MANAGEMENT Company Limited 898 Ploenchit Tower, 15th and 18th Floor, Ploenchit Road, Lumpini, Pathumwan, Bangkok 10330, THAILAND Tel. +66 (0) 2126-8300 Fax +66 (0) 2126-8398 www.thanachartfund.co.th Registration No. 0105535049696 THANACHART INSURANCE Company Limited 999/1 The Nine Tower, 2nd-3rd, 5th Floor, 999/2, 4th Floor, 999/3, 4th Floor, Rama 9 Road, Suanluang, Bangkok 10250, THAILAND Tel. +66 (0) 2308-9300 Fax +66 (0) 2308-9333 www.thanachartinsurance.co.th Registration No. 0105540060091

SIAM CITY LIFE ASSURANCE Company Limited 231 Thanachart Park Place, 9th-11th Floor, Rachadamri Road, Lumpini, Pathumwan, Bangkok 10330, THAILAND Tel. +66 (0) 2207-4200 Fax +66 (0) 2253-8484 www.scilife.co.th Registration No. 0105540057138 THANACHART LIFE ASSURANCE Company Limited 999/1 The Ninth Tower 1st, 4th-5th Floor, 999/4, 4th Floor, Rama 9 Road, Suanluang, Bangkok 10250, THAILAND Tel. +66 (0) 2308-9400 Fax +66 (0) 2308-9444 www.thanachartlife.co.th Registration No. 0105540057090 TS ASSETS MANAGEMENT Company Limited 1101 Petchburi Building, 9th Floor, New Petchburi Road, Makkasan, Ratchathewi, Bangkok 10400, THAILAND Tel. +66 (0) 2208-5555 Fax +66 (0) 2208-5892 http://property.scib.co.th/property Registration No. 0105554031624 THANACHART GROUP LEASING Company Limited 444 MBK Tower, 11th Floor, Phayathai Road, Wangmai, Pathumwan, Bangkok 10330, THAILAND Tel. +66 (0) 2217-8000, 2217-8333 Fax +66 (0) 2611-9488 Registration No. 0105538045861 RATCHTHANI LEASING Public Company Limited 77/35-36 Sinn Sathorn Tower, 11upth Floor, Krung Thonburi Road, Klong Ton Sai, Klong San, Bangkok 10600, THAILAND Tel. +66 (0) 2440 0844 Fax +66 (0) 2440 0848 www.ratchthani.com Registration No. 0107545000209


Information as of December 31, 2011 HEAD OFFICE

Tonson Branch

Tel. +66 (0) 2655-9560-4

Fax +66 (0) 2655-9585

BANGKOK AND VICINITY

Tonson Branch

Tel. +66 (0) 2655-9560-4

Fax +66 (0) 2655-9585

Phetchaburi Office Branch

Tel. +66 (0) 2208-5000,

+66 (0) 2253-0200-43

Fax +66 (0) 2253-6198

Suan Mali Office Branch

Tel. +66 (0) 2225-9999,

+66 (0) 2223-0561

Fax +66 (0) 2224-3810

Department of Land Transport

Branch

Tel. +66 (0) 2272-6073-5,

+66 (0) 2272-6076

Fax +66 (0) 2272-6077

Green Place (Soi Wat Phai Ngoen)

Branch

Tel. +66 (0) 2211-3515,

+66 (0) 2211-3519-20

Fax +66 (0) 2674-9704

Kluai Nam Thai Branch

Tel. +66 (0) 2258-6620-1

Fax +66 (0) 2258-5505

Crystal Design Center Branch

Tel. +66 (0) 2102-2410-2

Fax +66 (0) 2102-2413

Khlong Chan Branch

Tel. +66 (0) 2377-1364,

+66 (0) 2377-1368-9

Fax +66 (0) 2377-3609

BRANCHeS OF THANACHART BANK PUBLIC COMPANY LIMITeD

Khlong Tan Branch

Tel. +66 (0) 2314-2642-4,

+66 (0) 2719-8030

Fax +66 (0) 2719-8031

Khlong Toei Branch

Tel. +66 (0) 2240-0161,

+66 (0) 2249-2633

Fax +66 (0) 2249-4789

Khlong Thom Branch

Tel. +66 (0) 2221-1677,

+66 (0) 2221-1671

Fax +66 (0) 2221-1679

Charan Sanitwong 13 Branch

Tel. +66 (0) 2864-1560-3

Fax +66 (0) 2864-1566

Charan Sanitwong 35 Branch

Tel. +66 (0) 2411-0511,

+66 (0) 2411-0545

Fax +66 (0) 2411-0607

Chamchuri Square Branch

Tel. +66 (0) 2160-5254-6,

+66 (0) 2160-5257

Fax +66 (0) 2160-5258

Cha Ru Mueang Branch

Tel. +66 (0) 2214-1488,

+66 (0) 2214-1739

Fax +66 (0) 2214-2038

Charoen Krung 17 Branch

Tel. +66 (0) 2224-1839,

+66 (0) 2225-7194

Fax +66 (0) 2224-2059

Charoen Nakhon Soi 36 Branch

Tel. +66 (0) 2862-5010-6

Fax +66 (0) 2862-5017

Charoen Phon Branch

Tel. +66 (0) 2215-6628-30

Fax +66 (0) 2215-6627

Charn Issara Tower (Rama IV)

Branch

Tel. +66 (0) 2267-4296-8

Fax +66 (0) 2267-4299

Charn Issara Tower II Branch

Tel. +66 (0) 2308-2955-8,

+66 (0) 2718-1834

Fax +66 (0) 2308-2950

Chok Chai 4 Branch

Tel. +66 (0) 2931-0895-7

Fax +66 (0) 2931-0798

Seacon Square Branch

Tel. +66 (0) 2721-8548-50

Fax +66 (0) 2721-8551

Seacon Square Srinagarindra

Branch

Tel. +66 (0) 2721-9955

Fax +66 (0) 2721-8321

Century the Movie Plaza Branch

Tel. +66 (0) 2245-8500-2

Fax +66 (0) 2245-8504

Central Pin Klao Branch

Tel. +66 (0) 2884-9680-3

Fax +66 (0) 2884-9684

Central Rama II Branch

Tel. +66 (0) 2872-4770

Fax +66 (0) 2872-4769

Central Rama III Branch

Tel. +66 (0) 2211-8260

Fax +66 (0) 2211-8190

Central Ram Inthra Branch

Tel. +66 (0) 2552-7462,

+66 (0) 2970-5517

Fax +66 (0) 2970-5518

Central Bang Na Branch

Tel. +66 (0) 2398-9572-3

Fax +66 (0) 2398-9574

Central Plaza Grand Rama IX

Branch

Tel. +66 (0) 2160-2950-52,

+66 (0) 2160-2953

Fax +66 (0) 2160-2954

Central Lat Phrao Branch

Tel. +66 (0) 2937-1279,

+66 (0) 2937-1280

Fax +66 (0) 2937-1283


Central World Branch

Tel. +66 (0) 2646-1346-9,

+66 (0) 2646-1353

Fax +66 (0) 2646-1350

Central World Plaza (3) Branch

Tel. +66 (0) 2255-6163,

+66 (0) 2255-9658-9

Fax +66 (0) 2255-9657

Don Mueang Branch

Tel. +66 (0) 2929-7004,

+66 (0) 2566-1950-1

Fax +66 (0) 2566-3425

The Avenue Chaengwattana

Branch

Tel. +66 (0) 2573-0673-5

Fax +66 (0) 2573-0677

The Nine (Thanon Rama IX)

Branch

Tel. +66 (0) 2319-1662-4,

+66 (0) 2716-7868

Fax +66 (0) 2718-7868

The Paseo (Lat Krabang) Branch

Tel. +66 (0) 2346-4103-4,

+66 (0) 2346-4109

Fax +66 (0) 2346-4111

The Mall Bang Kapi (2) Branch

Tel. +66 (0) 2734-3735-6

Fax +66 (0) 2734-3647

The Mall 2 Ramkhamhaeng Branch

Tel. +66 (0) 2369-2486,

+66 (0) 2369-2482

Fax +66 (0) 2369-2484

The Mall Tha Phra Branch

Tel. +66 (0) 2477-7321-3

Fax +66 (0) 2477-7324

The Mall Bangkapi Branch

Tel. +66 (0) 2375-1575

Fax +66 (0) 2375-1686

The Mall Bang Khae Branch

Tel. +66 (0) 2803-8310

Fax +66 (0) 2803-8305

The Mall Bang Khae (2) Branch

Tel. +66 (0) 2803-8373-4

Fax +66 (0) 2803-8375

Trok Chan Branch

Tel. +66 (0) 2211-1286,

+66 (0) 2211-4511

Fax +66 (0) 2211-4653

Talat Bang Khun Non Branch

Tel. +66 (0) 2434-6067-8,

+66 (0) 2434-6078

Fax +66 (0) 2882-4581

Talat Bang Khae Branch

Tel. +66 (0) 2801-1004-6

Fax +66 (0) 2801-1007

Talat Phlu Branch

Tel. +66 (0) 2466-7404,

+66 (0) 2466-7423

Fax +66 (0) 2465-1767

Talat Ying Charoen Branch

Tel. +66 (0) 2552-8043,

+66 (0) 2552-8045

Fax +66 (0) 2972-3161

Talat Saphan Mai Don Mueang

Branch

Tel. +66 (0) 2521-1670,

+66 (0) 2521-0612-3

Fax +66 (0) 2521-0611

Talat Samrae Branch

Tel. +66 (0) 2472-2045-50

Fax +66 (0) 2472-2052

Talat Mo Chit Branch

Tel. +66 (0) 2278-5300-1,

+66 (0) 2270-0308

Fax +66 (0) 2279-3411

Taling Chan Branch

Tel. +66 (0) 2882-7790-4

Fax +66 (0) 2882-7796

Tao Pun Branch

Tel. +66 (0) 2587-7292,

+66 (0) 2587-7284-5

Fax +66 (0) 2587-7379

TOYOTA BUZZ Kaset-Nawamin

Branch

Tel. +66 (0) 2561-0069-71,

+66 (0) 2561-0072

Fax +66 (0) 2561-0073

Thanon Romklao Housing Branch

Tel. +66 (0) 2543-9200-1,

+66 (0) 2543-9191

Fax +66 (0) 2543-9192

Thanon Chak Phet

(Pak Khlong Talat) Branch

Tel. +66 (0) 2225-1555,

+66 (0) 2225-1628

Fax +66 (0) 2623-6527

Thanon Chan Branch

Tel. +66 (0) 2285-5360,

+66 (0) 2285-5368

Fax +66 (0) 2285-5361

Thanon Charoen Nakhon Branch

Tel. +66 (0) 2438-6953-5,

+66 (0) 2860-2018

Fax +66 (0) 2860-4355

Thanon Chalong Krung Branch

Tel. +66 (0) 2327-8111-3

Fax +66 (0) 2327-8114

Thanon Nang Linchi Branch

Tel. +66 (0) 2286-1971,

+66 (0) 2286-1898

Fax +66 (0) 2286-1939

Thanon Borom Rat Chonnani

Branch

Tel. +66 (0) 2446-8061-4

Fax +66 (0) 2446-8065

Thanon Burapha (Phahurat)

Branch

Tel. +66 (0) 2221-2069,

+66 (0) 2221-5239

Fax +66 (0) 2221-5128

Thanon Prajadhipok

(Wongwian Yai) Branch

Tel. +66 (0) 2437-0188,

+66 (0) 2437-2596

Fax +66 (0) 2437-5784

Thanon Pracha Uthit

(Thung Khru) Branch

Tel. +66 (0) 2426-7017-9,

+66 (0) 2873-4029

Fax +66 (0) 2873-4030


Thanon Rama II

(Thon Buri Housing 3) Branch

Tel. +66 (0) 2451-4402,

+66 (0) 2451-4460

Fax +66 (0) 2451-4882

Thanon Rama II (Soi 3) Branch

Tel. +66 (0) 2427-1552-3

Fax +66 (0) 2427-1551

Thanon Rama IX Branch

Tel. +66 (0) 2246-7829-30

Fax- +66 (0) 2246-8473

Thanon Phrasumen

(Bang Lamphu) Branch

Tel. +66 (0) 2281-6821,

+66 (0) 2281-6332

Fax +66 (0) 2281-7457

Thanon Phatthanakan Branch

Tel. +66 (0) 2369-2814-7

Fax +66 (0) 2369-2818

Thanon Phatthanakan 22 Branch

Tel. +66 (0) 2318-7241-2,

+66 (0) 2318-7620

Fax +66 (0) 2318-7393

Thanon Petchaburi Soi 20 Branch

Tel. +66 (0) 2251-6018,

+66 (0) 2251-6852

Fax +66 (0) 2252-6935

Thanon Petchaburi Tat Mai Branch

Tel. +66 (0) 2254-0252-4

Fax +66 (0) 2254-0255

Thanon Pho Phanit (Ratchawong)

Branch

Tel. +66 (0) 2622-9050,

+66 (0) 2622-4093

Fax +66 (0) 2622-9029

Thanon Mangkon Branch

Tel. +66 (0) 2225-3331,

+66 (0) 2225-3863

Fax +66 (0) 2225-8364

Thanon Ramkhamhaeng 2 Branch

Tel. +66 (0) 2397-6173-5,

+66 (0) 2728-4060

Fax +66 (0) 2728-4061

Thanon Witthayu

(All Seasons Place) Branch

Tel. +66 (0) 2252-6784-5

Fax +66 (0) 2252-6786

Thanon Sathon Tai

(Thai CC Tower) Branch

Tel. +66 (0) 2675-5697-9,

+66 (0) 2675-5700

Fax +66 (0) 2675-5701

Thanon Sathon Nuea Branch

Tel. +66 (0) 2267-7512-4,

+66 (0) 2637-8651

Fax +66 (0) 2637-8975

Thanon Sirindhorn Branch

Tel. +66 (0) 2434-5028-9,

+66 (0) 2434-5947-8

Fax +66 (0) 2434-5661

Thanon Suea Pa Branch

Tel. +66 (0) 2221-4327-9,

+66 (0) 2623-0578

Fax +66 (0) 2623-0579

Arun Ammarin Branch

Tel. +66 (0) 2424-0888,

+66 (0) 2424-0999

Fax +66 (0) 2433-7061

Thanon Ekkachai (Bang Bon 5)

Branch

Tel. +66 (0) 2450-3741-3

Fax +66 (0) 2450-3744

Thong Lo Branch

Tel. +66 (0) 2381-8421-2,

+66 (0) 2381-8364-5

Fax +66 (0) 2381-8423

Thong Lo Soi 17 Branch

Tel. +66 (0) 2185-2756,

+66 (0) 2185-2758-61

Fax +66 (0) 2185-2757


Tel. +66 (0) 2392-5802-4,

+66 (0) 2712-8245

Fax +66 (0) 2712-8168


Tel. +66 (0) 2392-0527-8

Fax +66 (0) 2391-1862

Tops RCA Branch

Tel. +66 (0) 2203-0267-9,

+66 (0) 2641-5120

Fax +66 (0) 2641-5121

Tha Din Daeng Branch

Tel. +66 (0) 2863-1283-8

Fax +66 (0) 2863-1289

Tha Phra Chan Branch

Tel. +66 (0) 2221-6486,

+66 (0) 2225-4466

Fax +66 (0) 2225-8933

Thewet Branch

Tel. +66 (0) 2628-7240-4,

+66 (0) 2628-7247

Fax +66 (0) 2282-8810

Tesco Lotus Bang Kapi Branch

Tel. +66 (0) 2377-8029,

+66 (0) 2377-8457

Fax +66 (0) 2377-8508

Tesco Lotus Rama II Branch

Tel. +66 (0) 2415-9130-2,

+66 (0) 2415-9133

Fax +66 (0) 2892-8004

Tesco Lotus Rama IV Branch

Tel. +66 (0) 2249-7533-5,

+66 (0) 2249-7536

Fax +66 (0) 2249-7537

Tesco Lotus Phet Kasem 81 Branch

Tel. +66 (0) 2489-2087-9,

+66 (0) 2812-4072

Fax +66 (0) 2812-4073

Tesco Lotus Lat Phrao Branch

Tel. +66 (0) 2512-1955,

+66 (0) 2512-1963

Fax +66 (0) 2939-3043

Tesco Lotus Wang Hin Branch

Tel. +66 (0) 2578-6194-6

Fax +66 (0) 2578-6197

Thian Kua Thian Branch

Tel. +66 (0) 2221-3575-6,

+66 (0) 2622-9063

Fax +66 (0) 2221-3575


Thai Summit Tower

(Thanon Petchaburi Tat Mai)

Branch

Tel. +66 (0) 2252-6458,

+66 (0) 2251-1327

Fax +66 (0) 2251-1357

Thaniya Branch

Tel. +66 (0) 2236-3520-1,

+66 (0) 2236-5339

Fax +66 (0) 22369119

Nawamin 42 Branch

Tel. +66 (0) 2375-1281-2,

+66 (0) 2375-1284

Fax +66 (0) 2375-1285

Nawamin 66 Branch

Tel. +66 (0) 2519-5724,

+66 (0) 2519-4616

Fax +66 (0) 2519-4627

Nawamin Market Place Branch

Tel. +66 (0) 2519-1142,

+66 (0) 2519-1154

Fax +66 (0) 2946-7432

Nang Loeng Branch

Tel. +66 (0) 2281-0842,

+66 (0) 2281-2169

Fax +66 (0) 2281-2322

Na Na Nuea Branch

Tel. +66 (0) 2252-0709,

+66 (0) 2252-6540

Fax +66 (0) 2253-5668

Bang Khun Non Branch

Tel. +66 (0) 2424-9778-9,

+66 (0) 2433-6028-9

Fax +66 (0) 2434-9772

Bang Khae Branch

Tel. +66 (0) 2454-6225-7,

+66 (0) 2454-2790-2

Fax +66 (0) 2413-1329

Bang Khlo Branch

Tel. +66 (0) 2289-4223,

+66 (0) 2289-4236

Fax +66 (0) 2289-4159

Bang Sue Branch

Tel. +66 (0) 2587-0616,

+66 (0) 2587-0686

Fax +66 (0) 2585-9659

Bang Na Branch

Tel. +66 (0) 2397-3757

Fax +66 (0) 2398-0185

Bang Na-Trat km. 4 Branch

Tel. +66 (0) 2399-2841-4,

+66 (0) 2399-2844

Fax +66 (0) 2399-2845

Bang Bon Branch

Tel. +66 (0) 2899-8533-5

Fax +66 (0) 2899-8540

Bang Phlat Branch

Tel. +66 (0) 2435-7205,

+66 (0) 2435-6808-10

Fax +66 (0) 2435-6807

Bang Mod Branch

Tel. +66 (0) 2428-7014-5,

+66 (0) 2428-6913-6

Fax +66 (0) 2428-6994

Bang Yi Ruea Branch

Tel. +66 (0) 2472-2664-7

Fax +66 (0) 2472-2668

Bang Rak Branch

Tel. +66 (0) 2234-4227-9,

+66 (0) 2630-9026

Fax +66 (0) 2630-9027

Bang Lamphu Branch

Tel. +66 (0) 2356-0783,

+66 (0) 2356-0782

Fax +66 (0) 2356-0787

Bamrung Mueang Branch

Tel. +66 (0) 2216-9794-7,

+66 (0) 2214-0606-8

Fax +66 (0) 2216-9798

Big C Chaeng Wattana Branch

Tel. +66 (0) 2574-3525-7

Fax +66 (0) 2574-3528

Big C Don Mueang Branch

Tel. +66 (0) 2551-0638-9,

+66 (0) 2551-0641

Fax +66 (0) 2551-0642

Big C Bang Na Branch

Tel. +66 (0) 2396-0482,

+66 (0) 2396-0484-5

Fax +66 (0) 2396-0500

Big C Bang Bon Branch

Tel. +66 (0) 2416-9969-71

Fax +66 (0) 2416-9974

Big C Phet Kasem Branch

Tel. +66 (0) 2444-2927,

+66 (0) 2444-2904

Fax +66 (0) 2444-2909

Big C Sukhaphiban 3

(Ramkhamhaeng) Branch

Tel. +66 (0) 2916-3584-5,

+66 (0) 2916-3604

Fax +66 (0) 2916-3607

Big C Sukhaphiban 5 Branch

Tel. +66 (0) 2153-1513-4,

+66 (0) 2153-1566

Fax +66 (0) 2153-1567

Big C Ekkamai Branch

Tel. +66 (0) 2714-8274-7

Fax +66 (0) 2714-8268

Bo Bae Branch

Tel. +66 (0) 2356-0755-8

Fax +66 (0) 2356-0759

Bobae Tower Branch

Tel. +66 (0) 2628-1693-5,

+66 (0) 2628-1690

Fax +66 (0) 2628-1696

Baiyoke Pratu Nam Branch

Tel. +66 (0) 2208-0824-5

Fax +66 (0) 2208-0826

PTT Thanon Seri Thai Branch

Tel +66 (0) 2187-2009-11,

+66 (0) 2187-2012

Fax +66 (0) 2187-2013

Pracha Chuen Branch

Tel. +66 (0) 2585-6811,

+66 (0) 2585-9656

Fax +66 (0) 2585-2666

Pracha Uthit Branch

Tel. +66 (0) 2873-4721-3,

+66 (0) 2873-5848

Fax +66 (0) 2873-5849

Pracha Uthit (Huai Khwang)

Branch

Tel. +66 (0) 2934-4181-3

Fax +66 (0) 2934-4184


Pratu Nam Branch

Tel. +66 (0) 2208-0072,

+66 (0) 2208-0074-5

Fax +66 (0) 2208-0076

Prawet Branch

Tel. +66 (0) 2322-2223,

+66 (0) 2722-1371

Fax +66 (0) 2322-8943

Pak Khlong Talat Branch

Tel. +66 (0) 2221-7511,

+66 (0) 2222-0686

Fax +66 (0) 2222-4794

Pin Klao Branch

Tel. +66 (0) 2435-4273-4,

+66 (0) 2435-4577-8

Fax +66 (0) 2435-4518

Rama III Branch

Tel. +66 (0) 2682-7322-6,

+66 (0) 2682-7328-9

Fax +66 (0) 2682-7327

Rama IV Branch

Tel. +66 (0) 2249-4201-3,

+66 (0) 2671-0260

Fax +66 (0) 2249-4204

Phran Nok Branch

Tel. +66 (0) 2418-0785,

+66 (0) 2418-0787

Fax +66 (0) 2418-0786

Phlapphlachai Branch

Tel. +66 (0) 2224-6922-3,

+66 (0) 2224-6931

Fax +66 (0) 2224-6947

Phahon Yothin Soi 6 Branch

Tel. +66 (0) 2279-9874-5

Fax +66 (0) 2279-9895

Phahon Yothin Soi 9 Branch

Tel. +66 (0) 2270-1371-3,

+66 (0) 2619-6399

Fax +66 (0) 2619-6339

Phatthanakan Branch

Tel. +66 (0) 2719-4580-3

Fax +66 (0) 2719-4591

Paradise Park Branch

Tel. +66 (0) 2325-9072-4

Fax +66 (0) 2325-9075

Phahurat Branch

Tel. +66 (0) 2221-4409,

+66 (0) 2623-8097

Fax +66 (0) 2623 8098

P.B. Tower (Khlong Tan) Branch

Tel. +66 (0) 2381-3114-5,

+66 (0) 2381-3121-2

Fax +66 (0) 2381-3124

Phet Kasem Branch

Tel. +66 (0) 2456-0337-42

Fax +66 (0) 2454-4116

Phet Kasem 69 Branch

Tel. +66 (0) 2809-3034-8

Fax +66 (0) 2809-3041

Phloen Chit Center Branch

Tel. +66 (0) 2656-8403-7

Fax +66 (0) 2656-8400

Platinum Pratu Nam Branch

Tel. +66 (0) 2121-9683-5,

+66 (0) 2121-9686

Fax +66 (0) 2121-9687

Fashion Island Branch

Tel. +66 (0) 2519-5784,

+66 (0) 2519-5753

Fax +66 (0) 2519-5718

Fashion Island (2) Branch

Tel. +66 (0) 2947-6402-5

Fax +66 (0) 2947-6410

Money Park Branch

Tel. +66 (0) 2686-3960-1,

+66 (0) 2686-3962

Fax +66 (0) 2686-3959

Mah Boon Krong Branch

Tel. +66 (0) 2611-5710-4

Fax +66 (0) 2611-5717

Min Buri Branch

Tel. +66 (0) 2517-8014-5,

+66 (0) 2517-9321

Fax +66 (0) 2517-8016

Major Ratchayothin Branch

Tel. +66 (0) 2512-1082,

+66 (0) 2512-1102

Fax +66 (0) 2939-5372

Union Mall Lat Phrao Branch

Tel. +66 (0) 2511-0236,

+66 (0) 2511-0246

Fax +66 (0) 2511-0268

Union Mall (2) Branch

Tel. +66 (0) 2512-4304,

+66 (0) 2512-2040

Fax +66 (0) 2512-5516

Yaowarat Branch

Tel. +66 (0) 2221-1868,

+66 (0) 2221-1845-7

Fax +66 (0) 2221-1869

Ratchada Phisek Branch

Tel. +66 (0) 2641-2225-8

Fax +66 (0) 2641-3233

Ratchada Phisek

(Glas Haus Building) Branch

Tel. +66 (0) 2693-9811,

+66 (0) 2290-3500

Fax +66 (0) 2693-9820

Ratchada Phisek-Tha Phra Branch

Tel. +66 (0) 2878-8845-50

Fax +66 (0) 2878-8852

Ratchada-Huai Khwang Branch

Tel. +66 (0) 2694-1489-91,

+66 (0) 2694-1495

Fax +66 (0) 2694-1496

Ratchadamnoen Branch

Tel. +66 (0) 2221-3391,

+66 (0) 2223-6010

Fax +66 (0) 2222-9635

Ratchadamnoen Klang Branch

Tel. +66 (0) 2226-3083-5,

+66 (0) 2621-2185

Fax +66 (0) 2621-2186

Ratchadamri Branch

Tel. +66 (0) 2251-3113,

+66 (0) 2251-4314

Fax +66 (0) 2251-4316

Ratcha Prarop Branch

Tel. +66 (0) 2245-4968-9,

+66 (0) 2642-6054-5

Fax +66 (0) 2245-0882


Ratchawong Branch

Tel. +66 (0) 2224-5705,

+66 (0) 2224-5870

Fax +66 (0) 2224-5792

Ratcha Wat Branch

Tel. +66 (0) 2241-0868,

+66 (0) 2243-6183

Fax +66 (0) 2241-1483

Ramkhamhaeng 155 Branch

Tel. +66 (0) 2373-0005,

+66 (0) 2373-0007-8

Fax +66 (0) 2373-0004

Ramkhamhaeng 73 Branch

Tel. +66 (0) 2375-2126-7,

+66 (0) 2374-9644

Fax +66 (0) 2375-2452

Ramkhamhaeng Soi 122 Branch

Tel. +66 (0) 2372-2377-9

Fax +66 (0) 2728-2950


Tel. +66 (0) 2372-3318-20,

+66 (0) 2729-5625

Fax +66 (0) 2729-5832


Tel. +66 (0) 2300-4957-8,

+66 (0) 2300-4956

Fax +66 (0) 2719-1258

Ram Inthra Branch

Tel. +66 (0) 2943-5630-2,

+66 (0) 2519-0824-5

Fax +66 (0) 2519-0826

Ram Inthra (Km. 7) Branch

Tel. +66 (0) 2510-9610,

+66 (0) 2510-9882

Fax +66 (0) 2510-9197

Ram Inthra (Km. 8) Branch

Tel. +66 (0) 2510-6900,

+66 (0) 2510-2342

Fax +66 (0) 2510-9875

Navaminthra 9 Hospital Branch

Tel. +66 (0) 2518-1100,

+66 (0) 2518-2360-1

Fax +66 (0) 2518-2363

Paolo Memorial Hospital

Chok Chai 4 Branch

Tel. +66 (0) 2514-3277,

+66 (0) 2933-2291

Fax +66 (0) 2933-2292

Ramkhamhaeng Hospital Branch

Tel. +66 (0) 2374-1523-5,

+66 (0) 2374-1561

Fax +66 (0) 2374-1562

Lat Phrao Hospital Branch

Tel. +66 (0) 2932-2473-5,

+66 (0) 2932-2529

Fax +66 (0) 2932-2530

Vichaiyut Hospital Branch

Tel. +66 (0) 2278-2194-6

Fax +66 (0) 2278-2606

Samitivej Hospital Sukhumwit 49

Branch

Tel. +66 (0) 2712-7013-4

Fax +66 (0) 2712-7016

Lat Krabang Branch

Tel. +66 (0) 2327-2754-7

Fax +66 (0) 2327-2706

Lat Phrao Branch

Tel. +66 (0) 2512-2343-4,

+66 (0) 2938-2433

Fax +66 (0) 2512-2342

Lat Phrao 118 Branch

Tel. +66 (0) 2539-2925-7

Fax +66 (0) 2530-4348

Lat Phrao 53 Branch

Tel. +66 (0) 2539-1167,

+66 (0) 2553-9150-7

Fax +66 (0) 2539-2261

Lat Phrao 80 Branch

Tel. +66 (0) 2933-9172,

+66 (0) 2933-9174-5

Fax +66 (0) 2933-9178

Lat Phrao Soi 101 Branch

Tel. +66 (0) 2187-0162-4,

+66 (0) 2187-0165

Fax +66 (0) 2187-0161

Lam Sa Li Branch

Tel. +66 (0) 2735-2060-3

Fax +66 (0) 2735-2067

Leng Noei Yi Branch

Tel. +66 (0) 2221-1248,

+66 (0) 2221-3501

Fax +66 (0) 2223-3211

Wongwian Yai Branch

Tel. +66 (0) 2438-2486,

+66 (0) 2438-2562

Fax +66 (0) 2438-2568

Wong Sawang Branch

Tel. +66 (0) 2834-9999,

+66 (0) 2834-9900

Fax +66 (0) 2834-9905

Wong Sawang Town Center Branch

Tel. +66 (0) 2586-0420-2

Fax +66 (0) 2910-7949

Watcharaphon Branch

Tel. +66 (0) 2508-2185-7

Fax +66 (0) 2508-2207

Wat Phra Ya Kai Branch

Tel. +66 (0) 2289-3026-7,

+66 (0) 2289-5033

Fax +66 (0) 2289-5032

Wutthakat Branch

Tel. +66 (0) 2249-4201-3,

+66 (0) 2466-6160

Fax +66 (0) 2472-5838

Woeng Nakhon Khasem Branch

Tel. +66 (0) 2222-2430,

+66 (0) 2221-7201-4

Fax +66 (0) 2222-6475

Si Worachak Branch

Tel. +66 (0) 2222-1912,

+66 (0) 2222-1917

Fax +66 (0) 2622-9338

Siwara Branch

Tel. +66 (0) 2538-8466,

+66 (0) 2538-8986

Fax +66 (0) 2538-9378

Appeal Court Branch

Tel. +66 (0) 2938-3421-6

Fax +66 (0) 2938-3428

Sirirat Branch

Tel. +66 (0) 2412-4515,

+66 (0) 2412-4583-4

Fax +66 (0) 2866-3218


Vichaiyut Medical Center Branch

Tel. +66 (0) 2357-1916-8

Fax +66 (0) 2619-7043

The Government Complex

Commemorating (Building A)

Branch

Tel. +66 (0) 2143-9631-33

Fax +66 (0) 2143-9634

The Government Complex

Commemorating Chaengwattana

(Building B) Branch

Tel. +66 (0) 2143-9393-5,

+66 (0) 2143-9396

Fax +66 (0) 2143-9397

Sanam Pao Branch

Tel. +66 (0) 2271-0026-8,

+66 (0) 2271-0029

Fax +66 (0) 2271-0030

Siam Discovery Branch

Tel. +66 (0) 2658-0491-3

Fax +66 (0) 2658-0494

Siam Paragon Branch

Tel. +66 (0) 2129-4374-7

Fax +66 (0) 2129-4372

Siam Square Branch

Tel. +66 (0) 2252-7363-5,

+66 (0) 2252-7366

Fax +66 (0) 2252-7367

Song Prapha Branch

Tel. +66 (0) 2928-8542-5

Fax +66 (0) 2928-8546

Suan Phlu Branch

Tel. +66 (0) 2287-3084-5,

+66 (0) 2679-3027

Fax +66 (0) 2679-3028

Suan Lumphini (Thanon Sarasin)

Branch

Tel. +66 (0) 2252-2677-8,

+66 (0) 2651-9037

Fax +66 (0) 2252-2679

Saphan Khwai Branch

Tel. +66 (0) 2279-3942,

+66 (0) 2279-5633

Fax +66 (0) 2616-6747

Rama VII Bridge (Bang Phlat)

Branch

Tel. +66 (0) 2423-9011-3,

+66 (0) 2423-9014

Fax +66 (0) 2423-9015

Saphan Mai Don Mueang Branch

Tel. +66 (0) 2970-4400-3

Fax +66 (0) 2970-4408

Sathu Pradit 49 Branch

Tel. +66 (0) 2682-0610-8

Fax +66 (0) 2682-0619

Sam Yan Branch

Tel. +66 (0) 2215-1549,

+66 (0) 2215-4199

Fax +66 (0) 2216-6170

Sam Yaek Branch

Tel. +66 (0) 2223-2706-8

Fax +66 (0) 2223-2705

Sam Yaek Fai Chai Branch

Tel. +66 (0) 2411-3446,

+66 (0) 2418-3575-6

Fax +66 (0) 2411-2321

Sam Pheng Branch

Tel. +66 (0) 2222-7396,

+66 (0) 2222-7551

Fax +66 (0) 2225-8468

Samrae Branch

Tel. +66 (0) 2468-0609,

+66 (0) 2468-1008-9

Fax +66 (0) 2476-5423

Si Kak Phra Ya Si Branch

Tel. +66 (0) 2222-4477-8,

+66 (0) 2226-2267

Fax +66 (0) 2225-7036

Si Phra Ya Branch

Tel. +66 (2) 2335-3057,

+66 (0) 2672-1914

Fax +66 (0) 2233-4174

Si Yaek Kaset Branch

Tel. +66 (0) 2579-1340,

+66 (0) 2579-3483

Fax +66 (0) 2579-6794

Si Yaek Chaloem Buri

(Yaowarat) Branch

Tel. +66 (0) 2221-1236,

+66 (0) 2221-7194

Fax +66 (0) 2225-0580

Si Yaek Ban Khaek Branch

Tel. +66 (0) 2465-2115,

+66 (0) 2466-1950

Fax +66 (0) 2465-5071

Si Yaek Prawet Branch

Tel. +66 (0) 2328-8023-5

Fax +66 (0) 2328-8027

Silom Branch

Tel. +66 (0) 2266-7414,

+66 (0) 2266-7417-8

Fax +66 (0) 2266-7416

Silom (Thanon Pan) Branch

Tel. +66 (0) 2237-9317-20,

+66 (0) 2235-5800-2

Fax +66 (0) 2237-9321

Silom Soi 15 Branch

Tel. +66 (0) 2237-4192-4,

+66 (0) 2635-0272

Fax +66 (0) 2635-0270

Silom Complex Branch

Tel. +66 (0) 2235-8832

Fax +66 (0) 2235-8833

Sukhumwit 71 Branch

Tel. +66 (0) 2391-6067,

+66 (0) 2392-5944

Fax +66 (0) 2392-2534

Sukhumwit Soi 101/1 (Piyarom Place)

Branch

Tel. +66 (0) 2332-7060-2,

+66 (0) 2741-8016

Fax +66 (0) 2741-8017

Sukhumwit Soi 25 Branch

Tel. +66 (0) 2259-4727-9,

+66 (0) 2259-4726

Fax +66 (0) 2259-4730


Tel. +66 (0) 2204-0307-9,

+66 (0) 2662-7708

Fax +66 (0) 2662-5632



Tel. +66 (0) 2393-7123,

+66 (0) 2395-5959

Fax +66 (0) 2399-2399

Sutthi San Branch

Tel. +66 (0) 2616-3553-8

Fax +66 (0) 2616-3561

Surawong Branch

Tel. +66 (0) 2234-5964-6,

+66 (0) 2631-7030

Fax +66 (0) 2631-7031

Seri Thai 32 Branch

Tel. +66 (0) 2376-1043-46

Fax +66 (0) 2376-1122

Nong Khaem Branch

Tel. +66 (0) 2445-4788,

+66 (0) 2445-4790-2

Fax +66 (0) 2445-4789

Huai Khwang Branch

Tel. +66 (0) 2692-0061,

+66 (0) 2692-2098-100

Fax +66 (0) 2276-1134

Hua Lam Phong Branch

Tel. +66 (0) 2237-9710-4

Fax +66 (0) 2237-9713

Hua Mak Branch

Tel. +66 (0) 2314-2627,

+66 (0) 2314-0086-7

Fax +66 (0) 2314-7277

Anu Wong Branch

Tel. +66 (0) 2222-0161-3,

+66 (0) 2222-0169

Fax +66 (0) 2225-8931

Victory Monument Branch

Tel. +66 (0) 2644-7474-6,

+66 (0) 2354-9330-1

Fax +66 (0) 2354-9351

Asok Branch

Tel. +66 (0) 2260-7831-4

Fax +66 (0) 2260-7839

Asok-Din Daeng Branch

Tel. +66 (0) 2641-7547-9

Fax +66 (0) 2641-7566

On Nuch 52 Branch

Tel. +66 (0) 2322-1557-9

Fax +66 (0) 2322-1556

All Seasons Place Branch

Tel. +66 (0) 2250-7611-3,

+66 (0) 2250-7614

Fax +66 (0) 2250-7615

B.B. Building (Asok) Branch

Tel. +66 (0) 2204-1695-7,

+66 (0) 2204-1698

Fax +66 (0) 2204-1699

Berli Jucker House (Kluai Nam Thai)

Branch

Tel. +66 (0) 2381-5065-7

Fax +66 (0) 2381-5068

Vorawat Building Silom Branch

Tel. +66 (0) 2635-1150-2

Fax +66 (0) 2635-1157

Vibulthani Tower (Rama IV) Branch

Tel. +66 (0) 2661-5534-7

Fax +66 (0) 2661-5539

Siam Kit Building Branch

Tel. +66 (0) 2251-6763,

+66 (0) 2252-5252

Fax +66 (0) 2253-9429

India Emporium Branch

Tel. +66 (0) 2224-0133,

+66 (0) 2224-0135

Fax +66 (0) 2623-9434

Udom Suk Branch

Tel. +66 (0) 2398-4024-7

Fax +66 (0) 2398-4028

Ekkamai 28 Branch

Tel. +66 (0) 2392-2831,

+66 (0) 2392-7278-9

Fax +66 (0) 2392-2832

MBK Center Branch

Tel. +66 (0) 2611-4752-4,

+66 (0) 2611-4843

Fax +66 (0) 2611-4751

MBK Tower Branch

Tel. +66 (0) 2611-9480

Fax +66 (0) 2611-9557

Esplanade Ratchada Branch

Tel. +66 (0) 2354-2052-4

Fax +66 (0) 2660-9250

IT Square Branch

Tel. +66 (0) 2576-0104-5

Fax +66 (0) 2576-0106

VICINITY

King Kaeo Branch

Tel. +66 (0) 2316-1990-2,

+66 (0) 2750-0184-5

Fax +66 (0) 2317-1312

Khru Nai Branch

Tel. +66 (0) 2462-8020,

+66 (0) 2462-8034

Fax +66 (0) 2462-6193

Khlong Luang Branch

Tel. +66 (0) 2516-1230-3,

+66 (0) 2516-1202

Fax +66 (0) 2516-1203

Chaeng Wattana Branch

Tel. +66 (0) 2982-9192-5

Fax +66 (0) 2982-9441

Chaeng Wattana (Software Park)

Branch

Tel. +66 (0) 2962-0066,

+66 (0) 2962-0415-6

Fax +66 (0) 2962-0376

Central Chaengwattana Branch

Tel. +66 (0) 2193-8114-6,

+66 (0) 2101-0709

Fax +66 (0) 2101-0710

Central Rattanathibet Branch

Tel. +66 (0) 2525-4736-8,

+66 (0) 2969-7536

Fax +66 (0) 2969-7537

Zeer-Rangsit Branch

Tel. +66 (0) 2992-6807-9

Fax +66 (0) 2992-6810

The Mall Ngamwongwan Branch

Tel. +66 (0) 2550-1231-3,

+66 (0) 2550-1234

Fax +66 (0) 2550-1235


Talat Klang Bang Yai Branch

Tel. +66 (0) 2595-0682-4

Fax +66 (0) 2595-0685

Talat Thai Branch

Tel. +66 (0) 2529-6171-2,

+66 (0) 2529-6173

Fax +66 (0) 2529-6175

Talat Bang Bua Thong Branch

Tel. +66 (0) 2571-3598-9,

+66 (0) 2571-3373-5

Fax +66 (0) 2571-7845

Talat Pak Nam Branch

Tel. +66 (0) 2702-8380-4

Fax +66 (0) 2702-8388

Talat Samrong Branch

Tel. +66 (0) 2756-8411-4

Fax +66 (0) 2756-8419

Thanon Rangsit-Pathum Thani Branch

Tel. +66 (0) 2567-5808,

+66 (0) 2567-2738-9

Fax +66 (0) 25675809

Thanon Samakkhi Branch

Tel. +66 (0) 2574-2794-5

Fax +66 (0) 2574-2793

Tha Nam Nonthaburi Branch

Tel. +66 (0) 2527-0255-60

Fax +66 (0) 2527-0254

Tha Nam Phra Pradaeng Branch

Tel. +66 (0) 2463-0488,

+66 (0) 2463-2228

Fax +66 (0) 2464-2156

Thepharak Branch

Tel. +66 (0) 2759-6061-4,

+66 (0) 2759-6066

Fax +66 (0) 2759-6067

Tesco Lotus Navanakhon Branch

Tel. +66 (0) 2529-6187-9,

+66 (0) 2529-6186

Fax +66 (0) 2909-7097

Tesco Lotus Rattanathibet Branch

Tel. +66 (0) 2950-1160,

+66 (0) 2950-1297

Fax +66 (0) 2950-1157

Tesco Lotus Lam Luk Ka Khlong 6

Branch

Tel. +66 (0) 2569-1694,

+66 (0) 2998-8163

Fax +66 (0) 2998-8164

Tesco Lotus Srinagarindra Branch

Tel. +66 (0) 2175-7844-6,

+66 (0) 2759-9053

Fax +66 (0) 2759-9054

Tesco Lotus Samakkhi Branch

Tel. +66 (0) 2582-8146-8,

+66 (0) 2997-6041

Fax +66 (0) 2997-6042

Nonthaburi Branch

Tel. +66 (0) 2526-3453-6

Fax +66 (0) 2526-3457

Navanakhon Branch

Tel. +66 (0) 2909-0620-3,

+66 (0) 2909-0626

Fax +66 (0) 2909-0625

Bang Pu Industrial Estate Branch

Tel. +66 (0) 2324-0360,

+66 (0) 2324-0364

Fax +66 (0) 2324-0805

Bang Kruai Branch

Tel. +66 (0) 2447-2897,

+66 (0) 2447-5095

Fax +66 (0) 2883-8619

Bang Khru Branch

Tel. +66 (0) 2817-5417-19

Fax +66 (0) 2817-5423

Bang Bua Thong Branch

Tel. +66 (0) 2571-7124,

+66 (0) 2920-6621

Fax +66 (0) 2920-9603

Bang Pu Branch

Tel. +66 (0) 2323-2960-3

Fax +66 (0) 2323-2964

Bang Yai Branch

Tel. +66 (0) 2594-1143,

+66 (0) 2594-1152

Fax +66 (0) 2594-1161

Big C Bang Phli Branch

Tel. +66 (0) 2312-2284,

+66 (0) 2312-2300

Fax +66 (0) 2312-2321

Big C Bang Phli (2) Branch

Tel. +66 (0) 2752-5632-3

Fax +66 (0) 2752-5635

Big C Samut Prakan Branch

Tel. +66 (0) 2702-1792-3,

+66 (0) 2702-1859

Fax +66 (0) 2702-1982

Big C Samrong 2 Branch

Tel. +66 (0) 2380-1100-2,

+66 (0) 2755-0239

Fax +66 (0) 2755-0240

Big C Suk Sawat (2) Branch

Tel. +66 (0) 2463-7700,

+66 (0) 2463-1894-6

Fax +66 (0) 2463-7144

Big C Suk Sawat Branch

Tel. +66 (0) 2463-0992-3

Fax +66 (0) 2463-0980

Pathum Thani Branch

Tel. +66 (0) 2581-5766,

+66 (0) 2581-6976

Fax +66 (0) 2581-6925

Pak Kret Branch

Tel. +66 (0) 2960-9928-30,

+66 (0) 2583-7246

Fax +66 (0) 2583-7562

Pak Nam Branch

Tel. +66 (0) 2173-7882-4,

+66 (0) 2702-8036

Fax +66 (0) 2702-8037

Pu Chao Saming Prai Branch

Tel. +66 (0) 2183-2044,

+66 (0) 2183-2046-7

Fax +66 (0) 2183-2043

Phra Pradaeng Branch

Tel. +66 (0) 2463-3940-1,

+66 (0) 2463-3841-57

Fax +66 (0) 2463-6897


Pantip Plaza Ngamwongwan Branch

Tel. +66 (0) 2953-5056-7

Fax +66 (0) 2953-5058

Future Park Rangsit Branch

Tel. +66 (0) 2958-5116-8,

+66 (0) 2958-5119

Fax +66 (0) 2958-5121

Future Park Rangsit (2) Branch

Tel. +66 (0) 2958-0914-5

Fax +66 (0) 2958-0917

Huachiew Chalermprakiet University

Branch

Tel. +66 (0) 2312-6600-5

Fax +66 (0) 2312-6603

Mueang Mai-Bang Phli Branch

Tel. +66 (0) 2706-0322-6

Fax +66 (0) 2706-0329

Rangsit Branch

Tel. +66 (0) 2567-1117,

+66 (0) 2567-5586

Fax +66 (0) 2567-6694

Rangsit-Khlong 3 Branch

Tel. +66 (0) 2990-8806-8

Fax +66 (0) 2533-1659

Rattanathibet Branch

Tel. +66 (0) 2969-9040-3,

+66 (0) 2969-9046

Fax +66 (0) 2969-9048

Paolo Memorial Hospital

Samut Prakan Branch

Tel. +66 (0) 2182-7239-41,

+66 (0) 2182-7242

Fax +66 (0) 2182-7243

Lam Luk Ka Branch

Tel. +66 (0) 2994-5747-51

Fax +66 (0) 2994-5753

Samut Prakan Branch

Tel. +66 (0) 2388-0099,

+66 (0) 2395-0045

Fax +66 (0) 2395-2021

Bang Kadi Industrial Park Branch

Tel. +66 (0) 2501-1254-6

Fax +66 (0) 2501-1257

Sam Yaek Phra Pradaeng Branch

Tel. +66 (0) 2463-2156-7,

+66 (0) 2462-6284

Fax +66 (0) 2462-5355

Samrong Branch

Tel. +66 (0) 2396-0278-80,

+66 (0) 2745-3482-3

Fax +66 (0) 2399-5103

Samrong Nuea Branch

Tel. +66 (0) 2384-7141,

+66 (0) 2384-7244

Fax +66 (0) 2384-7678

Si Mum Mueang-Rangsit Branch

Tel. +66 (0) 2531-9774,

+66 (0) 2531-3445

Fax +66 (0) 2531-9636

Nam Daeng Branch

Tel. +66 (0) 2385-2511-2,

+66 (0) 2385-2920

Fax +66 (0) 2385-2921

Ha Yaek Pak Kret Branch

Tel. +66 (0) 2583-7574,

+66 (0) 2583-9144

Fax +66 (0) 2584-3959

Imperial World Samrong Branch

Tel. +66 (0) 2380-2943-5,

+66 (0) 2756-9023

Fax +66 (0) 2756-9024

Homework Ratchaphruek Branch

Tel. +66 (0) 2447-6690-92

Fax +66 (0) 2447-6693

CENTRAL REGION

Kabin Buri Branch

Tel. +66 (0) 3728-1156,

+66 (0) 3728-1333

Fax +66 (0) 3728-1155

Krathum Baen Branch

Tel. +66 (0) 3447-2422,

+66 (0) 3447-2651-2

Fax +66 (0) 3447-1511

Kanchanaburi Branch

Tel. +66 (0) 3451-8763,

+66 (0) 3462-1565-6

Fax +66 (0) 3451-4961

Kamphaeng Saen Branch

Tel. +66 (0) 3435-1100,

+66 (0) 3435-1614

Fax +66 (0) 3435-1094

Kaeng Khoi Branch

Tel. +66 (0) 3624-4176,

+66 (0) 3624-4179

Fax +66 (0) 3624-4178

304 Industrial Park Branch

Tel. +66 (0) 3741-4378-80

Fax +66 (0) 3741-4381

Khao Wang Branch

Tel. +66 (0) 3242-5350,

+66 (0) 3242-8352

Fax +66 (0) 3242-8351

Khlong Khru Branch

Tel. +66 (0) 3482-7086,

+66 (0) 3482-7093

Fax +66 (0) 3482-7094

Cha-am Branch

Tel. +66 (0) 3243-4130-1,

+66 (0) 3247-1158

Fax +66 (0) 3247-1185

Dan Chang Branch

Tel. +66 (0) 3559-5497

Fax +66 (0) 3559-5499

Damnoen Saduak Branch

Tel. +66 (0) 3225-3810-2

Fax +66 (0) 3225-3813

Talat Chao Prom Branch

Tel. +66 (0) 3524-4768,

+66 (0) 3524-5162-3

Fax +66 (0) 3524-5441

Talat Tha Na (Nakhon Chai Si) Branch

Tel. +66 (0) 3433-1107-9

Fax +66 (0) 3433-1151

Talat Mahachai Branch

Tel. +66 (0) 3481-0287-8

Fax +66 (0) 3481-0467

Talat Suphan Buri Branch

Tel. +66 (0) 3551-1330,

+66 (0) 3551-1590

Fax +66 (0) 3552-3881


Thanon Khun San (Sing Buri) Branch

Tel. +66 (0) 3651-1199,

+66 (0) 3652-1200-1

Fax +66 (0) 3652-1202

Thanon Sai Phra (Nakhon Pathom)

Branch

Tel. +66 (0) 3425-5317-9

Fax +66 (0) 3425-4915

Thanon Songphon Branch

Tel. +66 (0) 3220-0427,

+66 (0) 3221-1900

Fax +66 (0) 3220-0426

Thanon Bowon Branch

Tel. +66 (0) 3451-1022,

+66 (0) 3451-2387

Fax +66 (0) 3451-1597

Thanon Phrapanwasa Branch

Tel. +66 (0) 3552-1575,

+66 (0) 3552-1963

Fax +66 (0) 3552-1964

Thanon Phahon Yothin (Saraburi)

Branch

Tel. +66 (0) 3621-1166,

+66 (0) 3621-1454

Fax +66 (0) 3621-2421

Thanon Phet Kasem (Hua Hin) Branch

Tel. +66 (0) 3251-6666-45,

+66 (0) 3251-6663

Fax +66 (0) 3253-2919

Thanon Ratchawithi (Nakhon Pathom)

Branch

Tel. +66 (0) 3424-2348,

+66 (0) 3425-1080

Fax +66 (0) 3425-1081

Thanon Setthakit 1 (Om Noi) Branch

Tel. +66 (0) 2810-4596-9

Fax +66 (0) 2810-4605

Thanon Sut Banthat (Saraburi) Branch

Tel. +66 (0) 3631-4512

+66 (0) 3631-4256-7

Fax +66 (0) 3631-5404

Thanon Sura Songkhram (Lop Buri)

Branch

Tel. +66 (0) 3661-8023,

+66 (0) 3661-8083-4

Fax +66 (0) 3642-4846

Thanon Saengchuto (Kanchanaburi)

Branch

Tel. +66 (0) 3451-5096-100

Fax +66 (0) 3451-5102

Thanon Amarin (Ratchaburi) Branch

Tel. +66 (0) 3233-7142,

+66 (0) 3233-8280

Fax +66 (0) 3232-5801

Thanon Ekkachai (Samut Sakhon)

Branch

Tel. +66 (0) 3441-1127,

+66 (0) 3441-1225-6

Fax +66 (0) 3442-5204

Thavikit Plaza Mae Klong Branch

Tel. +66 (0) 3472-0744,

+66 (0) 3472-0766

Fax +66 (0) 3471-6267

Thong Pha Phum Branch

Tel. +66 (0) 3459-9073,

+66 (0) 3459-9352

Fax +66 (0) 3459-9613

Tha Muang Branch

Tel. +66 (0) 3461-1119,

+66 (0) 3461-1403

Fax +66 (0) 3461-2419

Tha Yang Branch

Tel. +66 (0) 3246-1445-6,

+66 (0) 3246-1823-4

Fax +66 (0) 3246-1447

Tha Ruea-Kanchanaburi Branch

Tel. +66 (0) 3456-1130,

+66 (0) 3456-1040

Fax +66 (0) 3456-2073

Tha Ruea-Ayutthaya Branch

Tel. +66 (0) 3534-1019,

+66 (0) 3534-1029

Fax +66 (0) 3534-1795

Thung Khok Branch

Tel. +66 (0) 3556-8086-7

Fax +66 (0) 3556-8069

Tesco Lotus Pran Buri Branch

Tel. +66 (0) 3254-2436-7,

+66 (0) 3254-2454

Fax +66 (0) 3282-5777

Tesco Lotus Mahachai Branch

Tel. +66 (0) 3482-6231,

+66 (0) 3482-6230

Fax +66 (0) 3442-1356

Nakhon Chai Si Branch

Tel. +66 (0) 3433-1350-1

Fax +66 (0) 3433-1349

Nakhon Nayok Branch

Tel. +66 (0) 3731-1131,

+66 (0) 3731-2608-9

Fax +66 (0) 3731-2610

Nakhon Pathom Branch

Tel. +66 (0) 3421-9131

Fax +66 (0) 3421-9160

Na Di Branch

Tel. +66 (0) 3728-9069,

+66 (0) 3741-1201-2

Fax +66 (0) 3728-9069

Bang Sai Branch

Tel. +66 (0) 3528-2118-20,

+66 (0) 3537-5226

Fax +66 (0) 3537-5144

Bang Pahan Branch

Tel. +66 (0) 3538-1023-5

Fax +66 (0) 3538-1026

Bang Len Branch

Tel. +66 (0) 3439-1026-9

Fax +66 (0) 3439-1030

Ban Pong Branch

Tel. +66 (0) 3220-0429-31,

+66 (0) 3221-1993

Fax +66 (0) 3221-1035

Ban Phaeo Branch

Tel. +66 (0) 3448-1088,

+66 (0) 3448-0111-12

Fax +66 (0) 3448-1606

Ban Mo Branch

Tel. +66 (0) 3620-1141,

+66 (0) 3620-1391-2

Fax +66 (0) 3620-1142

Prachuap Khiri Khan Branch

Tel. +66 (0) 3260-4464-7

Fax +66 (0) 3260-4468


Prachin Buri Branch

Tel. +66 (0) 3721-1300,

+66 (0) 3721-3855-9

Fax +66 (0) 3721-3080

Pran Buri Branch

Tel. +66 (0) 3262-1643,

+66 (0) 3262-2373-4

Fax +66 (0) 3262-2055

Pak Phriao Branch

Tel. +66 (0) 3621-1833-4,

+66 (0) 3622-1286

Fax +66 (0) 3622-1884

Phra Nakhon Si Ayutthaya Branch

Tel. +66 (0) 3523-5611

Fax +66 (0) 3523-5630

Phra Pathom Chedi Branch

Tel. +66 (0) 3425-4203-5,

+66 (0) 3421-3541

Fax +66 (0) 3425-9131

Phutthamonthon Sai 4 Branch

Tel. +66 (0) 2420-0444,

+66 (0) 2813-1115

Fax +66 (0) 2813-1116

Phetchaburi Branch

Tel. +66 (0) 3242-7023-5

Fax +66 (0) 3241-5455

Photharam Branch

Tel. +66 (0) 3223-1089,

+66 (0) 3223-1255

Fax +66 (0) 3223-1090

Pho Hak Branch

Tel. +66 (0) 3238-7021-2

Fax +66 (0) 3238-7023

Mahachai Mueang Mai Branch

Tel. +66 (0) 3481-2620-4

Fax +66 (0) 3442-6989

Ratchaburi Branch

Tel. +66 (0) 3231-1203-5

Fax +66 (0) 3231-1207

Phetcharat Hospital (Phetchaburi)

Branch

Tel. +66 (0) 3241-0505,

+66 (0) 3241-0506

Fax +66 (0) 3240-0618

Rojana Branch

Tel. +66 (0) 3521-3892-4,

+66 (0) 3524-4381

Fax +66 (0) 3524-2136

Robinson Ratchaburi Branch

Tel. +66 (0) 3232-7711-3

Fax +66 (0) 3232-7714

Lop Buri Branch

Tel. +66 (0) 3622-1163,

+66 (0) 3641-1595

Fax +66 (0) 3642-1023

Lat Bua Luang Branch

Tel. +66 (0) 3537-9290-1

Fax +66 (0) 3537-9292

Wang Nam Yen Branch

Tel. +66 (0) 3725-1543-7

Fax +66 (0) 3725-1546

Wang Sombun Branch

Tel. +66 (0) 3744-9193-4

Fax +66 (0) 3744-9195

Wat Thian Dat Branch

Tel. +66 (0) 2429-0216,

+66 (0) 2429-0813

Fax +66 (0) 2429-0847

Wiset Chai Chan Branch

Tel. +66 (0) 3563-2801-4

Fax +66 (0) 3563-2805

Si Prachan Branch

Tel. +66 (0) 3558-1150,

+66 (0) 3558-1160

Fax +66 (0) 3558-1140

Salaya Branch

Tel. +66 (0) 2441-4557-9

Fax +66 (0) 2441-4560

Samut Songkhram Branch

Tel. +66 (0) 3471-1361,

+66 (0) 3471-1444

Fax +66 (0) 3471-5555

Samut Sakhon Branch

Tel. +66 (0) 3482-0359-60,

+66 (0) 3482-0365-6

Fax +66 (0) 3482-0445

Sa Kaeo Branch

Tel. +66 (0) 3724-1061,

+66 (0) 3724-1585-6

Fax +66 (0) 3724-1062

Saraburi Branch

Tel. +66 (0) 3631-8291-4

Fax +66 (0) 3631-6601

Rojana Industrial Park Ayutthaya

Branch

Tel. +66 (0) 3571-9710-2,

+66 (0) 3571-9713

Fax +66 (0) 3533-1651

Song Phi Nong Branch

Tel. +66 (0) 3553-2890-3

Fax +66 (0) 3553-2894

Sam Chuk Branch

Tel. +66 (0) 3557-1644,

+66 (0) 3557-1655

Fax +66 (0) 3557-1099

Sam Phran Branch

Tel. +66 (0) 3432-2781,

+66 (0) 3432-2783

Fax +66 (0) 3432-2782

Sing Buri Branch

Tel. +66 (0) 3653-0410,

+66 (0) 3653-0435

Fax +66 (0) 3651-2021

Suphan Buri Branch

Tel. +66 (0) 3552-5742,

+66 (0) 3550-1237

Fax +66 (0) 3552-5743

Sena Branch

Tel. +66 (0) 3520-1035,

+66 (0) 3520-1291

Fax +66 (0) 3520-1749

Nong Khae Branch

Tel. +66 (0) 3637-1504,

+66 (0) 3637-1517

Fax +66 (0) 3637-1516

Hua Hin Branch

Tel. +66 (0) 3251-1098,

+66 (0) 3251-1203

Fax +66 (0) 3251-2219


Ayutthaya Branch

Tel. +66 (0) 3525-2431-6,

+66 (0) 3525-2359

Fax +66 (0) 3525-2437

Ayutthaya Park Branch

Tel. +66 (0) 3522-9560-1

Fax +66 (0) 3522-9554

Aranyapraphet Branch

Tel. +66 (0) 3722-3505-7

Fax +66 (0) 3722-3511

Om Noi Branch

Tel. +66 (0) 2420-1450,

+66 (0) 2420-1811

Fax +66 (0) 2420-1132

Om Yai Branch

Tel. +66 (0) 2420-4920,

+66 (0) 2420-4930

Fax +66 (0) 2811-6538

Amphawa Branch

Tel. +66 (0) 3475-1177-8,

+66 (0) 3475-1640-1

Fax +66 (0) 3475-1642

Ang Thong Branch

Tel. +66 (0) 3561-1099,

+66 (0) 3561-2301-3

Fax +66 (0) 3561-1100

Kabin Buri Industrial (Nongki) Branch

Tel. +66 (0) 3745-5428-9,

+66 (0) 3745-5420-1

Fax +66 (0) 3745-5439

U Thong Branch

Tel. +66 (0) 3555-1299,

+66 (0) 3555-1618

Fax +66 (0) 3555-1868

NORTHERN REGION

Khuang Sing Branch

Tel. +66 (0) 5321-0826-8,

+66 (0) 5321-6586

Fax +66 (0) 5322-2718

Bhumibol Dam Branch

Tel. +66 (0) 5549-5989,

+66 (0) 5599-0045

Fax +66 (0) 5559-9021

Chong Khae Branch

Tel. +66 (0) 5626-9163,

+66 (0) 5691-2830

Fax +66 (0) 5626-9127

Chai Nat Branch

Tel. +66 (0) 5641-6650-3

Fax +66 (0) 5641-6654

Chang Chlan Branch

Tel. +66 (0) 5327-4634,

+66 (0) 5327-4934-5

Fax +66 (0) 5327-4635

Chiang Rai Branch

Tel. +66 (0) 5371-7100-6,

+66 (0) 5371-7108-9

Fax +66 (0) 5371-7107

Chiang Mai Branch

Tel. +66 (0) 5327-3352,

+66 (0) 5327-5737

Fax +66 (0) 5327-2733

Central Airport Chiang Mai Branch

Tel. +66 (0) 5320-1234

Fax +66 (0) 5320-1900

Central Plaza Chiang Rai Branch

Tel. +66 (0) 5317-9928-30,

+66 (0) 5317-9931

Fax +66 (0) 5375-4496

Talat Varorot Branch

Tel. +66 (0) 5387-4018-9,

+66 (0) 5387-4020

Fax +66 (0) 5387-4006

Tak Branch

Tel. +66 (0) 5551-1275,

+66 (0) 5551-1360

Fax +66 (0) 5551-3486

Takhli Branch

Tel. +66 (0) 5626-1093,

+66 (0) 5626-1133

Fax +66 (0) 5626-2383

Thanon Kosi (Nakhon Sawan) Branch

Tel. +66 (0) 5631-3929-31

Fax +66 (0) 5631-3932

Thanon Chom Phon (Tak) Branch

Tel. +66 (0) 5554-0219,

+66 (0) 5554-1721

Fax +66 (0) 5551-3988

Thanon Charoen Suk

(Kamphaeng Phet) Branch

Tel. +66 (0) 5571-3325-6

Fax +66 (0) 5571-3368

Thanon Chang Chlan (Chiang Mai)

Branch

Tel. +66 (0) 5382-0538-41,

+66 (0) 5382-0542

Fax +66 (0) 5382-0543

Thanon Chang Phueak (Chiang Mai)

Branch

Tel. +66 (0) 5323-1060,

+66 (0) 5341-2116-7

Fax +66 (0) 5323-1061

Thanon Thatsana Phanit 2 (Sukhothai)

Branch

Tel. +66 (0) 5561-6201

Fax +66 (0) 5561-6200

Thanon Thipyawan (Lampang) Branch

Tel. +66 (0) 5422-6041-4

Fax +66 (0) 5422-6045

Thanon Nimmanhemin Branch

Tel. +66 (0) 5322-5483,

+66 (0) 5340-0672-4

Fax +66 (0) 5340-0675

Thanon Barom Trai Lokanart 2

(Phitsanulok) Branch

Tel. +66 (0) 5521-8645-9

Fax +66 (0) 5521-8648

Thanon Bunyawat Branch

Tel. +66 (0) 5421-7444,

+66 (0) 5421-8790

Fax +66 (0) 5422-4667

Thanon Yantrakit Koson (Phrae)

Branch

Tel. +66 (0) 5462-6811,

+66 (0) 5462-6931

Fax +66 (0) 5453-2837

Thanon Wet Suwan (Nakhon Sawan)

Branch

Tel. +66 (0) 5622-2998,

+66 (0) 5622-7835

Fax +66 (0) 5623-1462


Thanon Sueksa Charoen (Phetchabun)

Branch

Tel. +66 (0) 5674-4076-8,

+66 (0) 5672-2414

Fax +66 (0) 5672-2415

Thanon Samran Ruen (Uttaradit)

Branch

Tel. +66 (0) 5540-3103-6

Fax +66 (0) 5540-3107

Thanon Ekathossaros (Phitsanulok)

Branch

Tel. +66 (0) 5524-3871-2,

+66 (0) 5525-9322

Fax +66 (0) 5524-4268

Tha Phae Branch

Tel. +66 (0) 5323-5755

Fax +66 (0) 5323-5757

Tesco Lotus Chiang Mai Hang Dong

Branch

Tel. +66 (0) 5380-6266-8,

+66 (0) 5380-6269

Fax +66 (0) 5328-1460

Tesco Lotus Phitsanulok Branch

Tel. +66 (0) 5537-7254,

+66 (0) 5537-7326

Fax +66 (0) 5537-7356

Nakhon Sawan Branch

Tel. +66 (0) 5631-3848,

+66 (0) 5622-5444

Fax +66 (0) 5631-3850

Nan Branch

Tel. +66 (0) 5471-1095-9

Fax +66 (0) 5471-1098

Lamphun Industrial Estate Branch

Tel. +66 (0) 5358-1662-3

Fax +66 (0) 5358-1664

Bo Sang Branch

Tel. +66 (0) 5333-7004-6

Fax +66 (0) 5333-7007

Big C Chiang Mai Branch

Tel. +66 (0) 5324-1248-9,

+66 (0) 5324-1336

Fax +66 (0) 5324-1337

Big C Phitsanulok Branch

Tel. +66 (0) 5537-8295,

+66 (0) 5220-7845

Fax +66 (0) 5537-8296

Big C Kamphaeng Phet Branch

Tel. +66 (0) 5585-3928-30,

+66 (0) 5585-3931

Fax +66 (0) 5585-3932

Pak Nam Pho Branch

Tel. +66 (0) 5621-2082,

+66 (0) 5621-2189

Fax +66 (0) 5621-3516

Pai Branch

Tel. +66 (0) 5369-9886,

+66 (0) 5369-9505

Fax +66 (0) 5369-9252

Phran Kratai Branch

Tel. +66 (0) 5576-2111-2

Fax +66 (0) 5576-2113

Phayao Branch

Tel. +66 (0) 5443-1124,

+66 (0) 5448-2386-8

Fax +66 (0) 5443-1272

Phichit Branch

Tel. +66 (0) 5661-1033,

+66 (0) 5661-1651

Fax +66 (0) 5661-1127

Phitsanulok Branch

Tel. +66 (0) 5530-4313,

+66 (0) 5909-9009

Fax +66 (0) 5530-4279

Phetchabun Branch

Tel. +66 (0) 5672-3103

Fax +66 (0) 5672-3104

Phrae Branch

Tel. +66 (0) 5452-2004,

+66 (0) 5452-2006

Fax +66 (0) 5452-2005

Phaisali Branch

Tel. +66 (0) 5625-9721-2

Fax +66 (0) 5625-9723

Mae Sot Branch

Tel. +66 (0) 5533-3113,

+66 (0) 5553-3319

Fax +66 (0) 5553-3320

Mae Sai Branch

Tel. +66 (0) 5373-1675,

+66 (0) 5373-1879

Fax +66 (0) 5373-1905

Mae Hong Son Branch

Tel. +66 (0) 5361-4441-2,

+66 (0) 5361-4444-5

Fax +66 (0) 5361-4443

McCormick Hospital (Chiang Mai)

Branch

Tel. +66 (0) 5326-1218-9,

+66 (0) 5330-0421

Fax +66 (0) 5326-1123

Lampang Branch

Tel. +66 (0) 5431-8927-30

Fax +66 (0) 5431-6960

Lamphun Branch

Tel. +66 (0) 5351-0371,

+66 (0) 5312-0601

Fax +66 (0) 5351-0372

Wang Chao Branch

Tel. +66 (0) 5555-6059,

+66 (0) 5555-6061

Fax +66 (0) 5555-6063

Sop Tui Branch

Tel. +66 (0) 5422-8040-3

Fax +66 (0) 5422-8044

Sawankhalok Branch

Tel. +66 (0) 5564-1478-9,

+66 (0) 5564-2512

Fax +66 (0) 5564-1480

San Sai Branch

Tel. +66 (0) 5349-1457,

+66 (0) 5349-1934

Fax +66 (0) 5349-1728

San Pa Khoi Branch

Tel. +66 (0) 5324-4157,

+66 (0) 5324-9167-8

Fax +66 (0) 5324-1157

Sukhothai Branch

Tel. +66 (0) 5561-6022,

+66 (0) 5562-2465-6

Fax +66 (0) 5562-2469


Nong Ben Branch

Tel. +66 (0) 5629-6163-5

Fax +66 (0) 5629-6166

Lom Kao Branch

Tel. +66 (0) 5670-8492-3

Fax +66 (0) 5670-8494

Lom Sak Branch

Tel. +66 (0) 5670-1540,

+66 (0) 5670-1878

Fax +66 (0) 5670-4513

Hankha Branch

Tel. +66 (0) 5645-1040,

+66 (0) 5645-1042

Fax +66 (0) 5645-1499

Hang Dong Branch

Tel. +66 (0) 5343-4035-7

Fax +66 (0) 5343-4038

Hang Nam Sakorn Branch

Tel. +66 (0) 5643-1232-3

Fax +66 (0) 5643-1234

Ha Yaek Phokhun Mengrai

(Chiang Rai) Branch

Tel. +66 (0) 5374-5244,

+66 (0) 5374-5245

Fax +66 (0) 5374-5247

Uttaradit Branch

Tel. +66 (0) 5544-1777,

+66 (0) 5544-2240

Fax +66 (0) 5541-4096

Uthai Thani Branch

Tel. +66 (0) 5657-1616-9

Fax +66 (0) 5657-1620

Happy Plaza (Phichit) Branch

Tel. +66 (0) 5661-6471-3,

+66 (0) 5661-6474

Fax +66 (0) 5665-0987

NORTH EASTERN REGION

Kalasin Branch

Tel. +66 (0) 4382-1080-1,

+66 (0) 4382-1420

Fax +66 (0) 4381-6584

Khon Kaen Branch

Tel. +66 (0) 4332-4321,

+66 (0) 4322-6888

Fax +66 (0) 4332-5919

Chaiyaphum Branch

Tel. +66 (0) 4481-3251-5

Fax +66 (0) 4481-3253

Chum Phae Branch

Tel. +66 (0) 4331-1684,

+66 (0) 4331-2292

Fax +66 (0) 4331-2395

Central Plaza Khon Kaen Branch

Tel. +66 (0) 4328-8361-3,

+66 (0) 4328-8364

Fax +66 (0) 4328-8365

Talat Thetsaban Maha Sarakham

Branch

Tel. +66 (0) 4372-5485,

+66 (0) 4372-5661

Fax +66 (0) 4372-3692

Talat Pak Chong Branch

Tel. +66 (0) 4431-3798-9,

+66 (0) 4431-3855-6

Fax +66 (0) 4431-3255

Thanon Klang Mueang (Khon Kaen)

Branch

Tel. +66 (0) 4322-8266,

+66 (0) 4332-2630

Fax +66 (0) 4332-2386

Thanon Kuang Heng (Si Sa Ket)

Branch

Tel. +66 (0) 4561-7861-4

Fax +66 (0) 4561-7860

Thanon Chit Bamrung (Surin) Branch

Tel. +66 (0) 4453-8934-5

Fax +66 (0) 4471-4051

Thanon Thinanon (Kalasin) Branch

Tel. +66 (0) 4381-2024,

+66 (0) 4381-2026

Fax +66 (0) 4381-2066

Thanon Prachak (Nong Khai) Branch

Tel. +66 (0) 4241-2890-4

Fax +66 (0) 4241-2895

Thanon Pho Si (Udon Thani) Branch

Tel. +66 (0) 4234-3817-8

Fax +66 (0) 4234-3727

Thanon Mittraphap Branch

Tel. +66 (0) 4426-8631-6

Fax +66 (0) 4426-8634

Thanon Mittraphap

(Nakhon Ratchasima) Branch

Tel. +66 (0) 4425-9003-4,

+66 (0) 4425-1376

Fax +66 (0) 4425-9002

Thanon Ruam Chai (Loei) Branch

Tel. +66 (0) 4286-1451-3

Fax +66 (0) 4286-1454

Thanon Ratphatthana (Sakon Nakhon)

Branch

Tel. +66 (0) 4271-5767,

+66 (0) 4273-6146-8

Fax +66 (0) 4271-5686

Thanon Warin-Phibun

(Warin Chamrap) Branch

Tel. +66 (0) 4532-5075,

+66 (0) 4528-6171-3

Fax +66 (0) 4532-5076

Thanon Si Chan Branch

Tel. +66 (0) 4322-7275-8

Fax +66 (0) 4322-7279

Thanon Sappasit Branch

Tel. +66 (0) 4524-4315,

+66 (0) 4524-4729

Fax +66 (0) 4524-3193

Thanon Suranari Branch

Tel. +66 (0) 4424-2560,

+66 (0) 4425-6705

Fax +66 (0) 4425-6706

Thanon Na Mueang (Khon Kaen)

Branch

Tel. +66 (0) 4322-1163,

+66 (0) 4322-3234

Fax +66 (0) 4322-1822

Thanon Hai Srok (Roi Et) Branch

Tel. +66 (0) 4352-3335-7

Fax +66 (0) 4352-3339


Thanon Aphiban Bancha

(Nakhon Phanom) Branch

Tel. +66 (0) 4251-4500

Fax +66 (0) 4251-4501

Thanon Udon Dutsadi Branch

Tel. +66 (0) 4224-7574,

+66 (0) 4224-7732

Fax +66 (0) 4224-7510

Tesco Lotus Khorat Branch

Tel. +66 (0) 4426-3564,

+66 (0) 4426-3567

Fax +66 (0) 4426-3565

Tesco Lotus Chaiyaphum Branch

Tel. +66 (0) 4483-8324-6,

+66 (0) 4483-8327

Fax +66 (0) 4481-3352

Nakhon Phanom Branch

Tel. +66 (0) 4251-6125-8

Fax +66 (0) 4251-6129

Nakhon Ratchasima Branch

Tel. +66 (0) 4426-9797,

+66 (0) 4426-8336-8

Fax +66 (0) 4426-9790

Nang Rong Branch

Tel. +66 (0) 4463-1049,

+66 (0) 4463-1586-8

Fax +66 (0) 4463-1050

Ban Phai Branch

Tel. +66 (0) 4327-4038-40

Fax +66 (0) 4327-4043

Big C Udon Thani Branch

Tel. +66 (0) 4212-8551-3

Fax +66 (0) 4212-8548

Big C Buri Ram Branch

Tel. +66 (0) 4469-0450,

+66 (0) 4469-0468

Fax +66 (0) 4469-0469

Big C Yasothon Branch

Tel. +66 (0) 4572-4361,

+66 (0) 4572-4437

Fax +66 (0) 4572-5067

Buri Ram Branch

Tel. +66 (0) 4460-1555,

+66 (0) 4460-2000

Fax +66 (0) 4460-2123

Pak Chong Branch

Tel. +66 (0) 4431-6866-9

Fax +66 (0) 4431-6859

Phlapphla Chai (Buri Ram) Branch

Tel. +66 (0) 4460-8012-5

Fax +66 (0) 4460-8016

Maha Sarakham Branch

Tel. +66 (0) 4374-0681-3,

+66 (0) 4374-0684

Fax +66 (0) 4372-2958

Mukdahan Branch

Tel. +66 (0) 4263-1367-70

Fax +66 (0) 4263-1374

Yasothon Branch

Tel. +66 (0) 4571-4051-6

Fax +66 (0) 4571-4054

Roi Et Branch

Tel. +66 (0) 4351-1521,

+66 (0) 4351-3520-1

Fax +66 (0) 4351-1520

Loei Branch

Tel. +66 (0) 4283-0851-3,

+66 (0) 4283-0854

Fax +66 (0) 4281-4472

Wang Sam Mo Branch

Tel. +66 (0) 4238-7486-7

Fax +66 (0) 4238-7488

Warin Chamrap Branch

Tel. +66 (0) 4532-2788,

+66 (0) 4532-2791-3

Fax +66 (0) 4532-2790

Si Sa Ket Branch

Tel. +66 (0) 4562-0500-2,

+66 (0) 4562-0503

Fax +66 (0) 4564-4197

Sakon Nakhon Branch

Tel. +66 (0) 4271-6446-50

Fax +66 (0) 4271-6451

Sang Khom Branch

Tel. +66 (0) 4227-6222-4

Fax +66 (0) 4227-6225

Sam Yaek Pak Thong Chai Branch

Tel. +66 (0) 4421-3993-5,

+66 (0) 4428-1815-6

Fax +66 (0) 4421-3994

Surin Branch

Tel. +66 (0) 4451-4455-8

Fax +66 (0) 4451-4459

Surin Plaza Branch

Tel. +66 (0) 4453-8517-20

Fax +66 (0) 4453-8521

Suwannakhuha Branch

Tel. +66 (0) 4237-2515-6

Fax +66 (0) 4237-2517

Nong Khai Branch

Tel. +66 (0) 4246-0119-22

Fax +66 (0) 4246-0199

Nong Bua Lam Phu Branch

Tel. +66 (0) 4231-1107,

+66 (0) 4231-1166

Fax +66 (0) 4231-1657

Ha Yaek Nampu (Udon Thani) Branch

Tel. +66 (0) 4222-1703,

+66 (0) 4222-1381

Fax +66 (0) 4224-7209

Thao Suranari Monument Branch

Tel. +66 (0) 4424-1774,

+66 (0) 4424-1775

Fax +66 (0) 4424-1776

Amnat Charoen Branch

Tel. +66 (0) 4551-1721-4

Fax +66 (0) 4551-1726

Udon Thani Branch

Tel. +66 (0) 4234-2550

Fax +66 (0) 4234-2398

Ubon Ratchathani Branch

Tel. +66 (0) 4531-9401-3,

+66 (0) 4531-9404

Fax +66 (0) 4531-9405

EASTERN REGION

Ko Chang Branch

Tel. +66 (0) 3955-1026-9

Fax +66 (0) 3955-1030

Klaeng Branch

Tel. +66 (0) 3888-7003-9

Fax +66 (0) 3867-8002


Chanthaburi Branch

Tel. +66 (0) 3934-4323-6

Fax +66 (0) 3934-4327

Chachoengsao Branch

Tel. +66 (0) 3851-5835-7

Fax +66 (0) 3851-5838

Chon Buri Branch

Tel. +66 (0) 3827-6930-7

Fax +66 (0) 3827-6935

Central Chon Buri Branch

Tel. +66 (0) 3805-3531-3,

+66 (0) 3805-3534

Fax +66 (0) 3805-3535

Central Center Pattaya Branch

Tel. +66 (0) 3841-4852-4,

+66 (0) 3841-4855

Fax +66 (0) 3841-4846

Central Festival Pattaya Beach Branch

Tel. +66 (0) 3300-3571-3,

+66 (0) 3804-3193

Fax +66 (0) 3804-3194

Trat Branch

Tel. +66 (0) 3953-1641-3,

+66 (0) 3953-1645

Fax +66 (0) 3952-2662

Tukcom Pattaya Branch

Tel. +66 (0) 3872-4105-7

Fax +66 (0) 3872-4108

Thanon Khwang (Chanthaburi) Branch

Tel. +66 (0) 3932-5925,

+66 (0) 3932-2048

Fax +66 (0) 3932-5926

Thanon Chetchamnong (Chon Buri)

Branch

Tel. +66 (0) 3879-2203-5

Fax +66 (0) 3879-2178

Thanon Tat Mai (Trat) Branch

Tel. +66 (0) 3952-5731-5

Fax +66 (0) 3952-5734

Thanon Phraya Satcha (Chon Buri)

Branch

Tel. +66 (0) 3879-2214-5,

+66 (0) 3879-2217

Fax +66 (0) 3879-2216

Thanon Maha Chakkaphat

(Chachoengsao) Branch

Tel. +66 (0) 3881-2856-7,

+66 (0) 3853-5336

Fax +66 (0) 3881-2874

Thanon Sukhumwit (Chon Buri)

Branch

Tel. +66 (0) 3879-6066,

+66 (0) 3879-5639

Fax +66 (0) 3827-7841

Thanon Sukhumwit (Rayong) Branch

Tel. +66 (0) 3861-4913-4

Fax +66 (0) 3861-2342

Thanon Sukhumwit (Si Racha) Branch

Tel. +66 (0) 3877-3415-20

Fax +66 (0) 3877-3421

Thanon Surasak (Si Racha) Branch

Tel. +66 (0) 3831-1872-3,

+66 (0) 3831-2206-7

Fax +66 (0) 3831-1871

Tesco Lotus Pattaya Nuea Branch

Tel. +66 (0) 3841-1410,

+66 (0) 3841-1316

Fax +66 (0) 3841-1423

Na Kluea (Pattaya) Branch

Tel. +66 (0) 3822-6060-1

Fax +66 (0) 3822-6117

Nikhom Phatthana Branch

Tel. +66 (0) 3863-6090-1

Fax +66 (0) 3863-6092

Bo Win Industrial Estate Branch

Tel. +66 (0) 3834-5456-7,

+66 (0) 3834-5828

Fax +66 (0) 3834-5829

Bang Pla Soi Branch

Tel. +66 (0) 3827-1819,

+66 (0) 3827-6651

Fax +66 (0) 3827-6652

Ban Bueng Branch

Tel. +66 (0) 3844-3060-1,

+66 (0) 3844-4015-6

Fax +66 (0) 3844-3713

Ban Phe Branch

Tel. +66 (0) 3865-1995,

+66 (0) 3865-1997

Fax +66 (0) 3865-1993

Big C Chachoengsao 2 Branch

Tel. +66 (0) 3851-5188,

+66 (0) 3851-5190

Fax +66 (0) 3851-5219

Big C Chon Buri 2 Branch

Tel. +66 (0) 3878-3032-4,

+66 (0) 3878-3035

Fax +66 (0) 3838-7923

Big C Pattaya Tai Branch

Tel. +66 (0) 3837-4270,

+66 (0) 3837-4273

Fax +66 (0) 3837-4463

Big C Rayong Branch

Tel. +66 (0) 3887-3094,

+66 (0) 3887-3323

Fax +66 (0) 3862-2659

Big C Sa Kaeo Branch

Tel. +66 (0) 3742-1761-3,

+66 (0) 3742-1764

Fax +66 (0) 3742-1765

Pluak Daeng Branch

Tel. +66 (0) 3865-9768-9

Fax +66 (0) 3865-9770

Pacific Park (Si Racha) Branch

Tel. +66 (0) 3831-3226,

+66 (0) 3831-3236

Fax +66 (0) 3831-3245

Pranom Sarakham Branch

Tel. +66 (0) 3855-1005,

+66 (0) 3855-1824-6

Fax +66 (0) 3855-1659

Pattaya Branch

Tel. +66 (0) 3872-0334,

+66 (0) 3872-0339

Fax +66 (0) 3842-9973

Pattaya Klang Branch

Tel. +66 (0) 3842-6312,

+66 (0) 3842-6343

Fax +66 (0) 3842-1325

Pattaya Nuea Branch

Tel. +66 (0) 3842-8901-2,

+66 (0) 3842-8962

Fax +66 (0) 3842-8963


Rajamanggala University of

Technology Tawan-ok Branch

Tel. +66 (0) 3834-1029

Fax +66 (0) 3834-1159

Burapha University Branch

Tel. +66 (0) 3839-4185-6

Fax +66 (0) 3839-4187

Map Ta Phut Branch

Tel. +66 (0) 3868-2531-3

Fax +66 (0) 3868-1995

Rayong Branch

Tel. +66 (0) 3892-8600,

+66 (0) 3886-4123

Fax +66 (0) 3886-4115

Si Racha Branch

Tel. +66 (0) 3877-1686-9,

+66 (0) 3877-1663

Fax +66 (0) 3877-1690

Saha Pathana Industrial Park

(Si Racha) Branch

Tel. +66 (0) 3848-1826-8

Fax +66 (0) 3848-1829

Sattahip Branch

Tel. +66 (0) 3843-7321,

+66 (0) 3843-7986

Fax +66 (0) 3843-7717

Sam Yaek Klaeng Branch

Tel. +66 (0) 3888-4503-5

Fax +66 (0) 3888-4506

Nong Mon Branch

Tel. +66 (0) 3839-2302,

+66 (0) 3839-2125

Fax +66 (0) 3839-2501

Nong Mon (Chon Buri) Branch

Tel. +66 (0) 3874-5233,

+66 (0) 3874-5239

Fax +66 (0) 3874-6349

Huai Sathon Branch

Tel. +66 (0) 3939-5381-3

Fax +66 (0) 3939-5384

Hat Pattaya (Nuea) Branch

Tel. +66 (0) 3841-5772-4,

+66 (0) 3841-5884

Fax +66 (0) 3841-5885

Laem Chabang Branch

Tel. +66 (0) 3840-0740-3

Fax +66 (0) 3840-0745

Laem Thong Rayong Branch

Tel. +66 (0) 3802-3405-7,

+66 (0) 3802-3408

Fax +66 (0) 3802-3409

SOUTHERN REGION

Krabi Branch

Tel. +66 (0) 7563-2838-41

Fax +66 (0) 7563-2835

Kantang Branch

Tel. +66 (0) 7525-1250,

+66 (0) 7525-1640

Fax +66 (0) 7525-1644

Ko Tao Branch

Tel. +66 (0) 7745-6533-4

Fax +66 (0) 7745-6784

Ko Pha-ngan Branch

Tel. +66 (0) 7737-7051,

+66 (0) 7737-7054

Fax +66 (0) 7737-7052

Ko Lanta Branch

Tel. +66 (0) 7566-8152

Fax +66 (0) 7566-8151

Ko Samui Branch

Tel. +66 (0) 7742-1110,

+66 (0) 7742-0363

Fax +66 (0) 7742-1112

Khao Lak Branch

Tel. +66 (0) 7648-5493-4

Fax +66 (0) 7648-5560

Khian Sa Branch

Tel. +66 (0) 7738-7407-8

Fax +66 (0) 7738-7409

Khok Kloi (Phang Nga) Branch

Tel. +66 (0) 7643-4821-4

Fax +66 (0) 7643-4827

Chumphon Branch

Tel. +66 (0) 7757-1935,

+66 (0) 7757-1938-9

Fax +66 (0) 7757-1940

Central Festival Phuket Branch

Tel. +66 (0) 7620-9290,

+66 (0) 7620-9292

Fax +66 (0) 7620-9291

Diana Si Phuwanart Branch

Tel. +66 (0) 7446-5316-8

Fax +66 (0) 7446-5319

Trang Branch

Tel. +66 (0) 7522-3240-3

Fax +66 (0) 7522-3244

Talat Tha Phae

(Nakhon Si Thammarat) Branch

Tel. +66 (0) 7538-3271,

+66 (0) 7538-3277

Fax +66 (0) 7538-3110

Talat Maha Rat (Krabi) Branch

Tel. +66 (0) 7561-1320-1,

+66 (0) 7562-0520

Fax +66 (0) 7562-0549

Takua Pa Branch

Tel. +66 (0) 7642-5176,

+66 (0) 7643-1503-5

Fax +66 (0) 7642-5177

Thanon Chuti Uthit (Hat Yai) Branch

Tel. +66 (0) 7434-6396-8

Fax +66 (0) 7434-6393

Thanon Chon Kasem (Surat Thani)

Branch

Tel. +66 (0) 7728-3627-30

Fax +66 (0) 7728-4080

Thanon Thawi Wong (Hat Patong)

Branch

Tel. +66 (0) 7629-2116-8

Fax +66 (0) 7634-5687

Thanon Thammanun Withi (Hat Yai)

Branch

Tel. +66 (0) 7423-5549,

+66 (0) 7423-9907

Fax +66 (0) 7424-3648

Thanon Niphat Uthit 1 Branch

Tel. +66 (0) 7424-4898-9

Fax +66 (0) 7423-2485


Thanon Montri Branch

Tel. +66 (0) 7621-2993,

+66 (0) 7621-2999

Fax +66 (0) 7621-3149

Thanon Ratthakan (Hat Yai) Branch

Tel. +66 (0) 7434-9070-2,

+66 (0) 7426-1751

Fax +66 (0) 7426-1752

Thanon Ratsada (Phuket) Branch

Tel. +66 (0) 7621-9664,

+66 (0) 7625-6873-5

Fax +66 (0) 7621-9731

Thanon Ratchadamnoen


Tel. +66 (0) 7534-2779-80,

+66 (0) 7535-6119

Fax +66 (0) 7535-6741

Thanon Ramet (Phatthalung) Branch

Tel. +66 (0) 7462-6952-4,

+66 (0) 7462-6955

Fax +66 (0) 7461-5451

Thanon Si Wichai (Surat Thani)

Branch

Tel. +66 (0) 7720-6488,

+66 (0) 7726-4170

Fax +66 (0) 7720-6671

Thanon Sala Daeng (Chumphon)

Branch

Tel. +66 (0) 7750-5051-2

Fax +66 (0) 7750-5054

Thanon Sai Buri (Songkhla) Branch

Tel. +66 (0) 7431-1638,

+66 (0) 7432-3735-6

Fax +66 (0) 7431-3543

Thalang Branch

Tel. +66 (0) 7631-1020,

+66 (0) 7631-1040

Fax +66 (0) 7631-1433

Thap Thiang (Trang) Branch

Tel. +66 (0) 7521-8059,

+66 (0) 7421-8590

Fax +66 (0) 7521-1320

Thai Mueang Branch

Tel. +66 (0) 7657-1234-7

Fax +66 (0) 7657-1215

Tha Ruea Bang Rak (Ko Samui)

Branch

Tel. +66 (0) 7741-7184

Fax +66 (0) 7741-7185

Tha Wang (Nakhon Si Thammarat)

Branch

Tel. +66 (0) 7531-3144-6,

+66 (0) 7535-7066

Fax +66 (0) 7535-7067

Thung Song Branch

Tel. +66 (0) 7541-1087,

+66 (0) 7541-1287

Fax +66 (0) 7541-1054

Tesco Lotus Krabi Branch

Tel. +66 (0) 7565-0833,

+66 (0) 7565-0836-7

Fax +66 (0) 7565-0834

Tesco Lotus Chao Fa (Phuket) Branch

Tel. +66 (0) 7626-8059-61,

+66 (0) 7621-9247

Fax +66 (0) 7621-9248

Tesco Lotus Choeng Thale (Phuket)

Branch

Tel. +66 (0) 7632-5919-21,

+66 (0) 7632-5922

Fax +66 (0) 7627-0572

Tesco Lotus Thung Song Branch

Tel. +66 (0) 7541-3003-5,

+66 (0) 7541-3006

Fax +66 (0) 7541-3007

Tesco Lotus Phuket Branch

Tel. +66 (0) 7625-5472-4,

+66 (0) 7625-5475

Fax +66 (0) 7652-3400

Tesco Lotus Ranong Branch

Tel. +66 (0) 7782-6636-8,

+66 (0) 7782-6639

Fax +66 (0) 7782-6640

Tesco Lotus Lamai (Ko Samui) Branch

Tel. +66 (0) 7741-8464,

+66 (0) 7741-8719

Fax +66 (0) 7741-8720

Nakhon Si Thammarat Branch

Tel. +66 (0) 7532-2689-90

Fax +66 (0) 7532-2144

Narathiwat Branch

Tel. +66 (0) 7351-2013,

+66 (0) 7351-1030

Fax +66 (0) 7351-2014

Ban Don Branch

Tel. +66 (0) 7721-0365,

+66 (0) 7727-2006

Fax +66 (0) 7721-0366

Ban Na Doem Branch

Tel. +66 (0) 7735-9013,

+66 (0) 7735-9015

Fax +66 (0) 7735-9014

Big C Krabi Branch

Tel. +66 (0) 7570-1020-22

Fax +66 (0) 7570-1023

Big C Pattani Branch

Tel. +66 (0) 7333-8004,

+66 (0) 7331-3982-3

Fax +66 (0) 7333-8005

Big C Hat Yai 2 Branch

Tel. +66 (0) 7446-9235-7,

+66 (0) 7446-9238

Fax +66 (0) 7455-5609

Betong Branch

Tel. +66 (0) 7323-1120,

+66 (0) 7323-1416

Fax +66 (0) 7323-0914

Pattani Branch

Tel. +66 (0) 7333-5950-1,

+66 (0) 7333-1851

Fax +66 (0) 7333-5949

Pak Phanang Branch

Tel. +66 (0) 7551-7132,

+66 (0) 7551-7298

Fax +66 (0) 7551-8021

Patong Branch

Tel. +66 (0) 7629-0585-7

Fax +66 (0) 7629-0588

Phra Phrom Branch

Tel. +66 (0) 7576-3260-1

Fax +66 (0) 7576-3262

Phang-nga Branch

Tel. +66 (0) 7641-1295,

+66 (0) 7641-1527-8

Fax +66 (0) 7641-1326


Phatthalung Branch

Tel. +66 (0) 7461-3082,

+66 (0) 7461-3951-2

Fax +66 (0) 7461-1918

Phunphin Branch

Tel. +66 (0) 7731-1449,

+66 (0) 7731-1377

Fax +66 (0) 7731-1537

Phuket Branch

Tel. +66 (0) 7626-1570-5

Fax +66 (0) 7626-1576

Mae Nam Branch

Tel. +66 (0) 7724-8375,

+66 (0) 7733-2259

Fax +66 (0) 7733-2260

Yala Branch

Tel. +66 (0) 7321-2592,

+66 (0) 7321-3375

Fax +66 (0) 7321-1691

Yan Ta Khao Branch

Tel. +66 (0) 7528-1003,

+66 (0) 7528-1101

Fax +66 (0) 7528-1102

Ranong Branch

Tel. +66 (0) 7781-1198,

+66 (0) 7781-1299

Fax +66 (0) 7781-1751

Robinson Trang Branch

Tel. +66 (0) 7559-0018-9,

+66 (0) 7559-0120

Fax +66 (0) 7522-6157

Robinson Ocean


Tel. +66 (0) 7534-1875,

+66 (0) 7534-1960-1

Fax +66 (0) 7534-1876

Lee Gardens Plaza Branch

Tel. +66 (0) 7423-9010,

+66 (0) 7423-9349

Fax +66 (0) 7423-0414

Songkhla Branch

Tel. +66 (0) 7444-1198-9,

+66 (0) 7444-1232

Fax +66 (0) 7444-1233

Satun Branch

Tel. +66 (0) 7472-5251-3

Fax +66 (0) 7472-5254

Sam Kong (Phuket) Branch

Tel. +66 (0) 7621-2077,

+66 (0) 7622-2838-40

Fax +66 (0) 7622-2841

Sai Buri Branch

Tel. +66 (0) 7341-1021,

+66 (0) 7341-1314-5

Fax +66 (0) 7341-1138

Surat Thani Branch

Tel. +66 (0) 7721-4581-7

Fax +66 (0) 7721-3560

Su-ngai Kolok Branch

Tel. +66 (0) 7361-1359,

+66 (0) 7361-1002

Fax +66 (0) 7361-3632

Na Thon (Ko Samui) Branch

Tel. +66 (0) 7723-6612-3,

+66 (0) 7723-6661-4

Fax +66 (0) 7723-6611

Lang Suan Branch

Tel. +66 (0) 7754-1965,

+66 (0) 7754-1975

Fax +66 (0) 7754-1987

Huai Yot Branch

Tel. +66 (0) 7523-5033-5,

+66 (0) 7527-1013

Fax +66 (0) 7527-1064

Hat Karon Branch

Tel. +66 (0) 7639-6981,

+66 (0) 7639-6485-6

Fax +66 (0) 7639-6980

Hat Chaweng Branch

Tel. +66 (0) 7723-0405,

+66 (0) 7723-1089-90

Fax +66 (0) 7742-2051

Hat Rin Branch

Tel. +66 (0) 7737-5254,

+66 (0) 7737-5477

Fax +66 (0) 7737-5476

Hat Lamai Branch

Tel. +66 (0) 7745-8159-60,

+66 (0) 7745-8162-4

Fax +66 (0) 7745-8161

Hat Yai Branch

Tel. +66 (0) 7435-4690

Fax +66 (0) 7435-4696

Hat Yai Nai Branch

Tel. +66 (0) 7436-1313-5,

+66 (0) 7436-1316

Fax +66 (0) 7425-9704

Ha Yaek Chalong (Phuket) Branch

Tel. +66 (0) 7638-3222,

+66 (0) 7638-3431

Fax +66 (0) 7638-3348

Ao Nang Branch

Tel. +66 (0) 7566-1434,

+66 (0) 7566-1430-2

Fax +66 (0) 7566-1433

Ao Luek Branch

Tel. +66 (0) 7561-0739,

+66 (0) 7563-4335-7

Fax +66 (0) 7561-0755


SummARy of SPeCified iTemS PeR foRm 56-2 in 2011 AnnuAL RePoRT

1. General information 1.1 Company 259 1.2 Juristic companies in which the proportion of shares held is 10% or greater 255 - 259 1.3 other references 260 2. financial highlights 2 - 3 3. nature of business operations 3.1 nature of business operations of the Company and subsidiary 31 - 34 and Policy on division of work among member companies of Thanachart Group 3.2 income structure 34 - 36 3.3 Key changes of business operations 36 - 50 4. Risk factors 51 - 62 5. Shareholders structure and management 5.1 Shareholders 261 5.2 management 5.2.1 management structure 235 5.2.2 Selection and appointment of members of various committees 230 - 231 5.2.3 Remuneration for the Board of directors and management 231 - 233 5.2.4 Corporate governance 216 - 230 5.2.5 Rules of proper use of insider information 218 5.2.6 internal control and auditing systems 70 - 71 5.3 dividend policy 262 6. Related party transactions 215 7. management discussion and analysis 20 - 30 8. financial statements 8.1 financial statements and notes to financial statements 73 -214 8.2 Auditor fee 215

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Documents

TBANK: Annual Report 2011