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Contents 11 Financial Highlights 12 Message from the Chairman and the President 14 Organization Chart 16 Statement of Direction, Vision and Mission 17 Board of Directors 21 Executive Officers 25 Brief Biography of Board of Directors and Executive Officers 34 Business Environment 40 Business Operation 66 Shareholding and Management Structures 90 Analysis of Operating Performance and Financial Standing 102 Risk Factors and Risk Management 111 Report of the Corporate Governance and Social Responsibility Committee 112 Report of the Nominating and Remuneration Committee 113 Corporate Governance 130 Report of the Audit Committee 131 The Board of Directors’ Responsibility for Financial Reports 132 Report of the Independent Certified Public Accountants 133 Financial Statements 213 General Information 225 Executives Directory 231 Banking Network 248 Summary of Items in accordance with Form 56-2

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Financial Highlights

Consolidated

Krung Thai Bank

1 2009 2008 2007 2006 2005 2009 2008 2007 2006 2005

Financial Standing (million baht) Loans 1,071,880 1,042,498 954,571 922,679 892,066 1,074,601 1,046,086 958,084 926,269 894,801 Bad Debts and Doubtful Accounts (including Revaluation Allowance for Debt Restructuring) 40,451 35,585 36,968 39,523 41,125 40,211 35,399 36,921 39,519 41,125 84,920 85,448 96,164 89,692 97,635 84,762 85,188 96,084 89,692 97,635 NPLs 1,543,830 1,330,376 1,212,722 1,204,828 1,162,748 1,539,743 1,327,184 1,211,330 1,204,717 1,162,796 Total Assets 1,207,613 1,063,216 1,000,671 966,437 982,971 1,208,140 1,063,531 1,002,098 968,281 983,213 Total Deposits 1,431,303 1,226,748 1,117,062 1,112,100 1,080,116 1,430,511 1,226,093 1,117,629 1,113,486 1,080,166 Total Liabilities 112,527 103,628 95,660 92,729 82,631 109,232 101,091 93,701 91,231 82,630 Total Shareholders’ Equity

Operating Performance (million baht) Interest and Dividend Income Interest Expense Net Interest and Dividend Income Non- Interest Income Non- Interest Expense Net Income (Loss)

57,983 15,447 42,536 13,785 32,463 12,189

65,449 19,633 45,816 10,945 30,118 12,272

66,177 22,139 44,038 11,028 28,015 6,407

67,292 21,405 45,887 10,699 25,966 14,078

50,061 11,445 38,616 7,641 22,517 13,024

57,596 15,448 42,148 12,002 31,755 11,125

65,514 19,636 45,878 9,567 29,292 12,053

66,413 22,140 44,273 10,039 27,699 6,113

67,767 21,406 46,361 9,537 25,602 13,798

50,166 11,434 38,732 7,259 22,282 13,024

0.85 11.28 6.52 15.92 10.06

0.97 12.32 7.68 13.08 9.26

0.53 6.80 9.57 15.16 8.55

1.19 16.06 9.25 14.03 8.29

1.13 16.44 10.32 12.10 7.39

0.78 10.58 6.49 15.92 9.77

0.95 12.38 7.63 13.08 9.04

0.51 6.61 9.53 15.16 8.38

1.17 15.87 9.22 14.03 8.16

1.13 16.44 10.32 12.10 7.39

Financial Ratios (%) Return on Average Assets Return on Average Equity NPLs / Loans BIS Total Capital Ratio Book Value per Share (baht)

Annual Report 2009 Krung Thai Bank Pcl.

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Message from the Chairman and the President

2009 was another year of difficult operation striving with the world economy and the worst ever contracted Thai economy over a decade. But the Bank was able to go through obstacles and achieved quite a satisfactory operating performance in terms of loan growth, deposits and fee-based income while non-performing loans declined. Consequently, we have made a net profit of Baht 12,189 million, a mere slide of Baht 83 million from 2008. Our financial standing is very strong with a CAR ratio of a high 15.92 percent compared to the minimum requirement of 8.50 percent prescribed by the Bank of Thailand. Such achievements came from the Bank’s competence in adjusting our strategy with the changing economic and business environment. Our strength as a highly stable state-owned commercial bank has been utilized to gain much confidence from customers and general public as well. Importantly, the Bank is determined to pursue an on-going development of services to reaffirm our being “The Convenience Bank”. This has enabled our clients to have a touch of what the Bank has intended to offer in four aspects. On products,

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the Bank has joined forces with our subsidiaries in developing products and services to meet the exact needs of customers of all segments and generations. As a result, we are now a leader in service innovations that provide the clients with convenience, speed, ease and comfort. As for places, the Bank opened up new branches nationwide, installing more ATMs in community areas and adding “Convenience Counters” in remote areas while enhancing existing branches for better convenience to customers. Furthermore, new distribution channels were developed such as KTB Online and KTB Online@Mobile enabling our clients to access services conveniently anytime anywhere. Regarding process, the Bank has continuously improved efficiency of the work processes through introduction of state-of-the-art technology to shorten operating steps and cost cutting. Today, the Bank has in place application software that can render high quality services and is all set for full competition. On people, the Bank has organized wide variety of training programs to enhance the competence of our staffs thus enabling them to efficiently support the Bank’s strategy focusing specially on increasing skills


and knowledge of our products and services. With the aim that after training, they will be able to provide a total solution with optimum benefit for the clients, while satisfying customers with dedicated, devoted and positive servicing attitude. Apart from success in operating performance and customer service, the Bank in 2009 took pride in providing assistance to entrepreneurs and general public during the economic downturn through the product “Krung Thai – True Friend of SMEs Solving Crisis”. Such loan offers special conditions for SMEs encountering liquidity strap and has bailed out a large number of them. Meanwhile, the Bank issued construction loan and instant letter of guarantee to support contractors of government projects. This has helped speed up the government Stimulus Package 2 (SP2) more effectively. For depositors, the Bank realizing the concern of those depending on interest income during relatively low interest period launched a term deposit with 4 percent interest rate per annum, the highest in commercial banking industry then. Such deposit has given customers and general public higher income and better living condition. This was considered a part of the Bank’s core mission in creating good and sustainable returns. The Bank has been conducting business in parallel with social caring through adherence to the principles under the concept of “intellectual capital building” comprising several Bank-supported projects in four dimensions: education, society & environment, art & culture and sports. All our work received broad recognition from the general public. During 2009, respective organizations, local and foreign, presented several prestigious awards to the Bank. Among them were the Banker Awards 2009 selected as the Bank of the Year in Thailand 2009, the SOE Awards for distinctive state enterprise in 2009 in three categories namely distinctive state Enterprise

(Dr. Sathit Limpongpan) Chairman of the Board of Directors

Board of Directors Award, Outstanding CSR Award and Outstanding Service Award. Also included was the Board of the Year Awards 2008/09 in the category Board of the Year for Exemplary Practices for second consecutive years. As for 2010, the economy tends to recover gradually with growing strengths while the global economic landscape has changed after the current crisis with the Asian region playing more vital role in directing the world economy. At the same time, commercial bank structure in Thailand will change with higher foreign shareholding under the Financial Sector Master Plan Phase 2 and Thai Capital Market Development Plan resulting in much tougher competition in commercial banking business. Hence, we have formulated our strategy to cater for such changes under our vision of being the Convenience Bank for retail clients, private business sector and public sector through focusing on business expansion for successive profitability. Apart from aiming at core business expansion of lending, the Bank will aggressively penetrate the fee-based income especially in cash management, trade finance and cash flow management of government agencies and their counterparties. Meanwhile, the Bank will further develop the operation process and human resources to get ready for new challenges while retaining the status of Thailand’s leading financial institution. The Board of Directors hereby expresses sincere thanks and deep appreciation to all our valued shareholders and clients in trusting your confidence and chooses to bank with us. We convey our heartfelt thanks. Our gratitude is also extended to all the stakeholders participating in the Bank’s mission as well as executives and staffs who have fully devoted themselves to perform the tasks thus enabling the Bank to successfully strive through this round of crisis. We do hope to receive all these precious things from you for always.

(Mr. Apisak Tantivorawong) President Annual Report 2009 Krung Thai Bank Pcl.

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Statement of Direction (SOD)

Strengthen financial stability and provide shareholders with appropriate returns through top–ranking product and service management while supporting public affairs

Vision

The Convenience Bank for Retail, Business, Government and Institution

Mission

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Being a Thailand’s leading financial institution Providing excellent services Creating sustainable returns Promoting intellectual capital Adhering to good corporate governance


Board of Directors

1. Dr. Sathit Limpongpan

Chairman

Annual Report 2009 Krung Thai Bank Pcl.

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Board of Directors

2. Dr. Chaiyawat Wibulswasdi 4. Mr. Aswin Kongsiri

5

2

4 3

Vice Chairman, Chairman of the Board of Executive Directors

Director, Chairman of the Risk Management Committee, Executive Director

3. Mr. Apisak Tantivorawong 5. Dr. Jamlong Atikul

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President, Executive Director, Director, Executive Director, Member of the Risk Management Member of the Risk Management Committee Committee


Board of Directors

6. Mr. Pachara Yutidhammadamrong 8. Mr. Dusit Nontanakorn

8

6

7

Chairman of the Audit Committee, Independent Director

7. Mr. Visut Montriwat

Member of the Audit Committee, Independent Director

Chairman of the Independent Director Committee, Member of the Audit Committee

Annual Report 2009 Krung Thai Bank Pcl.

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Board of Directors

9. Mr. Santi Vilassakdanont 11. Mr. Nontigorn Kanchanachitra

9

11

10 12

Chairman of the Corporate Governance and Social Responsibility Committee, Member of the Nominating and Remuneration Committee, Independent Director

10. Mr. Supachai Jongsiri

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Chairman of the Nominating and Remuneration Committee, Member of the Corporate Governance and Social Responsibility Committee, Independent Director

12. Mr. Pongtep Polanun

Member of the Corporate Governance Director and Social Responsibility Committee, Member of the Nominating and Remuneration Committee, Independent Director


Executive Officers

1. Mr. Apisak Tantivorawong President

Annual Report 2009 Krung Thai Bank Pcl.

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Executive Officers

3. Ms. Kittiya Todhanakasem

6 3 13 4

14

13. Ms. Sriprabha Pringpong

Senior Executive Vice President – Managing Director Financial Management Group

4. Ms. Nongnutch Thienpaitoon

14. Mr. Weidt Nuchjalearn Senior Executive Vice President – Managing First Executive Vice President – Director Network Group Managing Director Business Center Group

6. Ms. Sompis Charoenkiatikul

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First Executive Vice President – Managing Director Government & State Enterprise Relations Group

Senior Executive Vice President – Managing Director Corporate Banking Group


Executive Officers

2. Dr. Pongsathorn Siriyodhin

8

12 2 10 7

7. Mr. Teerapol Pussadet

First Executive Vice President – Managing Director Credit Restructuring Group

8. Mr. Assanee Subvanich

10. Mr. Prasert Thiranakanat

First Senior Executive Vice President – Managing Director Operation Group

First Executive Vice President – Managing Director Credit Risk Transaction Management Group

12. Dr. Anuchit Anuchitanukul

First Executive Vice President – Managing Director Products & Marketing Management Group

First Executive Vice President – Managing Director Asset & Legal Management Group

Annual Report 2009 Krung Thai Bank Pcl.

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Executive Officers

5

11 9

5. Ms. Sumana Vonggapan

9. Ms. Pannipa Apichatabutra

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11. Ms. Patcharasiri Kiatkumjai

Senior Executive Vice President – Managing First Executive Vice President – Director Human Resources & Corporate Managing Director Risk Management & Governance Group Compliance Group

First Executive Vice President – Managing Director Internal Audit Group


Brief Biography of Board of Directors and Executive Officers Board of Directors as at January 8, 2010 1. Dr. Sathit Limpongpan Chairman Age 59 Education

- PhD (Development Administration), National Institute of Development Administration (NIDA) - MA (Economics), Sukhothai Thammathirat Open University - LLM, Tulane University, USA - Barrister-at-Law, Institute of Legal Education Thai Bar Association - LLB, Thammasat University

- Leaders in Development: Managing Political & Economic Reform, Harvard University - Advanced Management Program, Oxford University - Class 22/2008 Audit Committee Program (ACP), Class 18/2008 Role of the Chairman Program (RCP) and Class 28/2003 Director Certification Program (DCP), Thai Institute of Directors Association (IOD)

- Permanent Secretary, Ministry of Finance - Chairman, Government Pension Fund - Chairman, Government Lottery Office - Chairman, Student Loan Fund - Chairman, Office of Insurance Commission - Director, Bank of Thailand - Director, The Office of Securities and Exchange Commission - Director, Thai Asset Management Corporation - Chairman of the Audit Committee, Independent Director, Ratchaburi Electricity Generating Holding Pcl. - Director, Thai Airways International Pcl.

- Deputy Permanent Secretary, Ministry of Finance - Director-General, The Customs Department - Director-General, The Excise Department - Chairman, Thai Military Bank Pcl. - Chairman, CAT Telecom Pcl. - Chairman, TOT Pcl. - Director, Bangchak Petroleum Pcl. - Director, Siam City Bank Pcl. - Director, Kuang Pei San Food Products Pcl.

Training

Other Positions

Experience

2. Dr. Chaiyawat Wibulswasdi

Vice Chairman, Chairman of the Board of Executive Directors Age 63 Education

- PhD (Economics), Massachusetts Institute of Technology, USA - BA (Economics), Williams College, USA Training - Class 77/2006 Director Certification Program (DCP), Thai Institute of Directors Association (IOD)

Other Position

-

- Advisor to the Deputy Prime Minister, Minister of Finance and Minister of Commerce - Vice Chairman, The Office of Securities and Exchange Commission - Director, National Economic and Social Development Board - Member, Audit Committee, CPPC Pcl.

Experience

3. Mr. Apisak Tantivorawong

President, Executive Director, Member of the Risk Management Committee Age 56 Education

- MBA (Industrial Management), University of Tennessee, USA - BEng (Chemical Engineering), Chulalongkorn University Training - Class 18/2002 Director Certification Program (DCP), Thai Institute of Directors Association (IOD)

Other Positions

- Chairman, The Thai Bankers’ Association - Director, The Board of Investment of Thailand - Director, Thai Asset Management Corporation - Independent Director, Indorama Polymers Pcl. - Independent Director, Thai Oil Pcl.

- Chairman, ASEAN Bankers Association - Independent Director, Member of Audit Committee, Thai-German Ceramic Industry Pcl.

Experience

Annual Report 2009 Krung Thai Bank Pcl.

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4. Mr. Aswin Kongsiri

5. Dr. Jamlong Atikul

Director, Chairman of the Risk Management Committee, Executive Director Age 64 Education

- Class 6 National Defence Course for the Joint State-Private Sectors, National Defence College - BA (Philosophy, Politics and Economics) (Hons), Oxford University, UK Training - Banff School of Advanced Management, Alberta, Canada - Class 11/2001 Director Certification Program (DCP), and Class 5/2001 Chairman 2000 Program, Thai Institute of Directors Association (IOD)

Other Positions

- Chairman and Independent Director, Ch. Karnchang Pcl. - Chairman, AK. Place Co., Ltd. - Chairman, Ton Poh Emerging Thailand Fund - Chairman of Performance Evaluation Sub-Committee, Management 2: Risk Management - Vice Chairman, Member of the Nomination and Remuneration Committee, Electricity Generating Pcl. - Independent Director, Chairman of the Audit Committee, OHTL. Pcl. - Independent Director, Member of the Audit Committee, Thoresen Thai Agencies Pcl. - Independent Director, Member of the Audit Committee, Member of the Nomination and Remuneration Committee, Padaeng Industry Pcl. - Independent Director, Chairman of the Risk Management Committee, Bangkok Aviation Fuel Services Pcl. - Independent Director, Member of Audit Committee, Member of the Nomination Committee, Thai Reinsurance Pcl. - Director, Kompastra Co., Ltd. - Director, ECR Property Ordinary Partnership - Member, Performance Agreement Sub-Committee, Ministry of Finance - Member, State Enterprise Performance Evaluation Sub-Committee, Management

- Member, The National Legislative Assembly - Director, Thai-German Ceramic Industry Pcl. - Director, Chairman of the Nominating and Remuneration Committee, Member of the Audit

Experience

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Committee, Member of the Risk Management Committee, Muang Thai Life Assurance Co., Ltd. - Director, Member of the Audit Committee, Thai Rating and Information Service Co., Ltd.

Director, Executive Director, Member of the Risk Management Committee Age 61 Education

- PhD (City & Regional Planning), Cornell University, USA - MCom. (Economics), University of Auckland, New Zealand - BCA (Economics), Victoria University of Wellington, New Zealand Training - Class 77/2006 Director Certification Program (DCP) and Class 55/2006 Director Accreditation Program (DAP), Thai Institute of Directors Association (IOD) - Pacific Rim Executive Banker’s Program 1996

Other Positions

- Director, Chairman of the Board of Executive Directors, Krungthai-AXA Life Insurance Co., Ltd. - Director, RCL Pcl. - Chairman of External Examination, Member of the Audit Committee, Assumption University

- President, Bank of Ayudhya Pcl. - Executive Director, The Thai Bankers’ Association - Director, Siam City Cement Pcl. - Honorary Director, Member of the Audit Committee, Council of National Institute of Development Administration

Experience

6. Mr. Pachara Yutidhammadamrong

Chairman of the Audit Committee, Independent Director Age 62 Education

- Class 399 National Defence Course for the Joint State-Private Sectors, National Defence College - Honorary Degree of Doctor of Laws, Ramkhamhaeng University - Barrister-at-Law, Institute of Legal Education Thai Bar Association - LLB, Thammasat University Training - Class 21 Naval College


- Class 22/2008 Audit Committee Program (ACP) and Class 55/2006 Director Accreditation Program (DAP), Thai Institute of Directors Association (IOD) - Class 1/2009 Corporate Governance Program for Director and Top Management of State Enterprises and Public Organization, Public Director Institute

- Independent Director, Chairman of the Audit Committee, Bangkok Aviation Fuel Services Pcl. - Director, Thai Aviation Refuelling Co., Ltd. - Director, Office of the Council of State - Sub-Committee, Sukhumvit Asset Management Co., Ltd.

- Attorney General, Office of the Attorney General - Deputy Attorney General, Office of the Attorney General - Member, The National Legislative Assembly - Director, Thai Airways International Pcl. - Director, IRPC Pcl. - Director, Provincial Electricity Authority

Other Positions

Experience

Working Capital - Member of the Audit Sub-Commission, Highland Research and Development Institute - Member of Performance Agreement Sub-Committee, Ministry of Finance - Member of the Audit and Assessment of Public Sector Sub-Commission on Ministry Group of Management, Security and Foreign Affair - Member of the Civil Service Sub–Commission on Discipline and Dismissal, Office of the Civil Service Commission

- Deputy Permanent Secretary, Ministry of Finance - Executive Director, Courts of Justice

Experience

8. Mr. Dusit Nontanakorn

Member of the Audit Committee, Independent Director Age 62 Education

7. Mr. Visut Montriwat

Chairman of the Independent Director Committee, Member of the Audit Committee Age 63 Education

- MBA (Marketing), University of California, USA - MS (Structural Engineering), Ohio State University, USA - BEng (Civil Engineering), Youngstown State University, USA

- Class 10/2005 Audit Committee Program (ACP), Class 24/2002 Director Certification Program (DCP) and Class 7/2002 Chairman 2000 Program, Thai Institute of Directors Association (IOD)

- Chairman, Thai Chamber of Commerce & Board of Trade of Thailand - Chairman, Audit Committee, Crown Seal Pcl. - Chairman, University of the Thai Chamber of Commerce - Independent Director, Member of the Audit Committee, Wiik & Hoeglund Pcl. - Member of the Audit Committee, Loxley Pcl. - Independent Director, RCL Pcl. - Independent Director, Member of the Audit Committee, S&P Syndicate Pcl. - Member of the Audit Committee, Siam Future Development Pcl. - Independent Director, Amata Corporation Pcl. - Director, Krungthep Thanakom Co., Ltd. - Director, Palang Sophon Co., Ltd.

Training

- Class 38 National Defence Course for the Joint State-Private Sectors, National Defence College - MBA, Northern Illinois University, USA - BA (Commerce), Chulalongkorn University

- Class 12 Top Management Program, Office of the Civil Service Commission - Class 7/2009 Monitoring of the Quality of Financial Report (MFR), Class 2/2007 Role of the Chairman Program (RCP), Class 1/2007 Monitoring of the System of the Internal Control and Risk Management (MIR), Class 77/2006 Director Certification Program (DCP) and Class 15/2006 Audit Committee Program (ACP), Thai Institute of Directors Association (IOD)

- Independent Director, Member of the Audit Committee, Bangkok Aviation Fuel Services Pcl. - Director, Thai Aviation Refuelling Co., Ltd. - Director, Thai Paiboon Insurance Co., Ltd. - Director,The Scrutiny Committee on Establishing

Other Positions

Training

Other Positions

Annual Report 2009 Krung Thai Bank Pcl.

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- Member of Property Management Board, Thai Red Cross Society - Director, Highland Research and Development Institute - Member, Performance Agreement Committee - Member of the Audit and Assessment Committee, Ministry of Finance - Director, Office of Insurance Commission - Director, Industrial Development Foundation - Director, Thai Institute of Directors Association - Director, Thailand Management Association - Advisor, CPB Equity Co., Ltd. - Advisor on the Management, The Siam Cement Pcl.

9.

- Vice Chairman, Thai Chamber of Commerce - Chairman, Independent Director, Chairman of the Audit Committee, 124 Communications Pcl. - Chairman of Sub-Committee, National Discovery Museum Institute - President, Cementhai Distribution Co., Ltd. - Director, State Railway of Thailand - Member of Sub-Committee Overseeing Internal Audit, Thai Health Promotion Foundation

Experience

Mr. Santi Vilassakdanont

Chairman of the Corporate Governance and Social Responsibility Committee, Member of the Nominating and Remuneration Committee, Independent Director Age 59 Education

- Class 355 National Defence Course for the Joint State-Private Sectors, National Defence College - Honorary Degree of Doctor of Engineering in Industrial Engineering, Ramkhamhaeng University - Honorary Degree of Doctor of Philosophy in Technology Management, Phranakhon Rajabhat University - MM, Sasin Graduate Institute of Business Administration of Chulalongkorn University - MA (Accounting), Chulalongkorn University - BA (Accounting, Commerce), Chulalongkorn University Training - Class 1/2009 Top Executive Program in Commerce and Trade: TEPCOT, Commerce Academy, University of the Thai Chamber of Commerce - Class 7/2008 Top Management Program, Capital Market Academy, The Stock Exchange of Thailand

28

- Class 6/2008 Role of the Compensation Committee (RCC) Class 3/2003 Director Accreditation Program (DAP) Thai Institute of Directors Association (IOD)

- Chairman, The Federation of Thai Industries - President, Saha Pathana Inter-Holding Pcl. - Director, Thai Asset Management Corporation - Director, Thai National Shippers’ Council - Independent Director, Sahacogen (Chonburi) Pcl. - Director, Sompo Japan Insurance (Thailand) Co., Ltd. - Director, First United Industry Co., Ltd. - Director, Pitakkij Co., Ltd. - Director, Sahapat Properties Co., Ltd. - Director, Pan Land Co., Ltd. - Director, Treasure Hill Co., Ltd. - Director, Sinparadorn Co., Ltd. - Director, Thai Kamaya Co., Ltd. - Director, Thai Dairy Co., Ltd. - Director, Saha Pathana Real Estate Co., Ltd. - Director, PF Inter Tech Co., Ltd. - Director, Eastern Thai Consulting 1992 Co., Ltd. - Director, Nissin Foods (Thailand) Co., Ltd. - Director, Sriracha BSC Bowling Co., Ltd. - Director, Kabin Patanakij Co., Ltd. - Director, Sriracha Aviation Co., Ltd. - Director, Thai Samsung Electronics Co., Ltd. - Director, Thai Arai Co., Ltd. - Director, Thai Flying Maintenance Co., Ltd.

Other Positions

Experience

- Member of the National Legislative Assembly, Thailand - Vice Chairman, The Federation of Thai Industries - Vice Chairman, Thai National Shippers’ Council - Director, Chumporn Palm Oil Industry Pcl. 10. Mr. Supachai Jongsiri Member of the Corporate Governance and Social

Responsibility Committee, Member of the Nominating and Remuneration Committee, Independent Director Age 59 Education

- Class 39 National Defence Course for the Joint State-Private Sectors, National Defence College - BA (Economics), University of the Thai Chamber of Commerce Training - Class 80/2006 Director Certification Program (DCP),


Thai Institute of Directors Association (IOD)

- Deputy Permanent Secretary, Ministry of Finance - Chairman, Krung Thai Computer Services Co., Ltd. - Director, CAT Telecom Pcl.

- Inspector General, Ministry of Finance - Director, Krung Thai Computer Services Co., Ltd. - Advisor on ICT (Information and Communication Technology), Ministry of Finance

Other Positions

Experience

11. Mr. Nontigorn Kanchanachitra

Chairman of the Nominating and Remuneration Committee, Member of the Corporate Governance and Social Responsibility Committee, Independent Director Age 54 Education

- Class 48 National Defence Course for the Joint State-Private Sectors, National Defence College - MPA, Middle Tennessee State University, USA - BPol. Sc., Chiang Mai University Training - Class 102/2008 Director Certification Program (DCP), Class 22/2008 Audit Committee Program (ACP), Class 6/2008 Role of the Compensation Committee (RCC), and Class 1/2008 Financial Statements of Director (FSD), Thai Institute of Directors Association (IOD)

Other Positions

- Independent Director, Chairman of the Nomination and Remuneration Committee, Thai Oil Pcl. - Independent Director, Chairman of the Audit Committee, Asian Property Development Pcl. - Independent Director, Member of the Audit Committee, Interlink Communication Pcl. - Deputy Secretaries-General, Office of the Civil Service Commission (OCSC) - Director, The Council of Khon Kaen University - Director, The Council of Rattana Bundit University - Honorable Person on Human Resources Management, Agricultural Research Development Agency (Public Organization) - Honorable Person on Human Resources Management, Defence Technology Institute (Public Organization) - Honorable Member of the Civil Service Sub-Commission, Office of the National Economic and Social

Development Board - Honorable Member of the Civil Service Sub-Commission, State Enterprise Policy Office - Honorable Member of the Civil Service Sub-Commission, Department of Special Investigation - Visiting Instructor, Faculty of Law, Chulalongkorn University

- Senior Advisor, Office of the Civil Service Commission

Experience

12. Mr. Pongtep Polanun (As at February 4, 2010) Director Age 55 Education

- MBA, Graduate Institute of Business Administration, Chulalongkorn University - M.Econ. (Financial Economics), National Institute of Development Administration - BBA (Economic), Thammasat University

- Class 36/2005 Director Accreditation Program (DAP), Thai Institute of Directors Association (IOD)

- Vice Chairman / Member of the Audit Committee Independent Director, Advanced Information Technology Pcl. - Independent Director, Phatra Leasing Pcl. - Independent Director / Member of the Audit Committee, Phatra Securities Pcl. - Director K.S.P. square Co.Ltd. - Advisor to the Director, The Royal Ceramic Industry Pcl.

-

Training

Other Positions

Experience

Executive Officers as at February 2, 2010 1. Mr. Apisak Tantivorawong President

- Please refer to page 25

2. Dr. Pongsathorn Siriyodhin

First Senior Executive Vice President – Managing Director Operation Group Age 59 Education

- PhD (Economics), University of Cincinnati, USA - MA (Economics), California State University, USA

Annual Report 2009 Krung Thai Bank Pcl.

29


- BA (Economics), California State University, USA

Training

- Class 7/2008 Leadership Program, Capital Market Academy, The Stock Exchange of Thailand - Class 78/2006 Director Certification Program (DCP), Thai Institute of Directors Association (IOD)

- Chairman, Krungthai Card Pcl. - Director, Trinity Watthana Pcl. - Director, Nok Airlines Co., Ltd.

- First Senior Executive Vice President, Business Support Group; Banking Operation Group & Finance Group, Krung Thai Bank Pcl. - Chairman, Krung Thai Legal Services Co., Ltd. - Director, Krungthai-AXA Life Insurance Co., Ltd. - Director and Member of the Audit Committee, The Industrial Finance Corporation of Thailand (IFCT)

Other Positions

Experience

3. Ms. Kittiya Todhanakasem

Senior Executive Vice President – Managing Director Financial Management Group Age 51 Education

- Class 21/2008 National Defence Course for the Joint State-Private Sectors, National Defence College - MBA, University of Illinois, Champaign-Urbana, USA - BBA (Accounting) (Honors), Thammasat University

Training

- Class 76/2006 Director Certification Program (DCP), Thai Institute of Directors Association (IOD)

Other Positions

- Chairman, KTB Advisory Co., Ltd. - Director, Krungthai Card Pcl. - Director, Krungthai Panich Insurance Co., Ltd.

- Senior Executive Vice President, Risk Management Group, Krung Thai Bank Pcl.

Experience

4. Ms. Nongnutch Thienpaitoon

Senior Executive Vice President – Managing Director Network Group Age 59 Education

30

- MBA (Honors), Roosevelt University , Illinois, USA - BA (Accounting) (Honors), Chulalongkorn University

Training

- Class 41/2005 Director Accreditation Program (DAP), Thai Institute of Directors Association (IOD) - The Job of the Chief Financial Officer, New York University & Singapore Institute of Management - Senior Executive Program (SEP), SASIN - Credit / Risk Management Program, Citibank Singapore

- Director, TPT Petrochemicals Pcl. & TPT Utilities Co., Ltd. - Director, Bangkok Metro Pcl. - Director, Advance Agro Pcl. - Bancassurance Working Group, Krungthai-AXA Life Insurance Co., Ltd. - Chairman, KTB Leasing Co., Ltd. - Advisor to the Board of Director, Dhipaya Insurance Pcl.

Other Positions

Experience

- Senior Executive Vice President, Credit Risk Transaction Management Group; Corporate Banking Group / First Executive Vice President, Corporate Banking Group; Eastern Region & Bangkok Metropolis Group; Eastern Region & Southern Bangkok Metropolis Group, Krung Thai Bank Pcl. 5. Ms. Sumana Vonggapan Senior Executive Vice President – Managing Director

Human Resources & Corporate Governance Group Age 59 Education

- MBA, Southeastern Oklahoma State University, USA - BA (Communication Arts) (Honors), Chulalongkorn University Training - Strategic Human Resource Management Program, Graduate School of Business Administration, Harvard University, USA - Class 47/2005 Director Accreditation Program (DAP), Thai Institute of Directors Association (IOD) - Executive Teamwork Development Program - Management Problem Solving and Decision Making Program - Advanced Management Program

Other Positions

- Secretary to the Nominating and Remuneration Committee, Krung Thai Bank Pcl. - Chairman, Nominating Committee, Krung Thai General Business Services Co., Ltd.


- Director, Krung Thai General Business Services Co., Ltd.

- Senior Executive Vice President, Human Resources and Organization Management Group / First Executive Vice President, Human Resources and Organization Management Group; Human Resources and Corporate Support Group, Krung Thai Bank Pcl.

Experience

6. Ms. Sompis Charoenkiatikul

Senior Executive Vice President – Managing Director Corporate Banking Group Age 56 Education

- Master of Professional Accounting Program, Thammasat University - BBA (Accounting) (cum laude), Thammasat University Training - Class 13/2004 Financial Executive Development Program (FINEX XIII), The Thai Institute of Banking and Finance Association - Class 5/2009 Executive Program for Senior Management (EX-PSM5), Fiscal Policy Research Institute Foundation (FPRI)

Other Positions

- Director, Thai Nam Plastic Pcl. - Director, KT ZMICO Securities Co., Ltd. - Director, KTB Advisory Co., Ltd.

- Senior Executive Program (SEP), SASIN - Pacific Rim Bankers Program, USA - Modern Management Strategy for KTB Executives Program - Advanced Management Program

- Advisor to the Board of Executive Directors, Dhipaya Insurance Pcl. - Director and Audit Committee Chairman, KT ZMICO Securities Co., Ltd.

Other Positions

Experience

- Executive Vice President, Business Center CRTM Sector, Credit Risk Transaction Management Group; Products & Marketing Sector, Product Management & Special Projects Group, Krung Thai Bank Pcl. Mr. Assanee Subvanich 8. First Executive Vice President – Managing Director

Asset & Legal Management Group Age 60 Education

- MBA, Kasetsart University - Barrister at Law, Institute of Legal Education of the Thai Bar Association - BA (Law) (Honors), Thammasat University

Training

- Professional NPA Selling Program - Advanced Management Program - Design Microfinance Program Experience - Management Problem Solving and Decision Making Program - First Executive Vice President, Corporate Banking - Technique of Professional Real Estate Selling Program Group / Executive Vice President, Corporate Banking - Technique of Supreme Business Negotiation Program Sector 1, Corporate Banking Group, Krung Thai Bank Pcl. - Retail Finance & Cards and Payment Program - Marketing Director Development Program, Thammasat University 7. Mr. Teerapol Pussadet First Executive Vice President – Managing Director - Class 114/2009 Director Certification Program (DCP), Thai Institute of Directors Association (IOD) Credit Restructuring Group Other Positions Age 59 - Director and Executive Director, KT ZMICO Securities Co., Ltd. Education - Vice Chairman, Krung Thai Legal Services Co., Ltd. - MBA, University of Detroit, USA Experience - BA (Accounting), Kasetsart University - Executive Vice President, Retail Products Management Training and Marketing Promotion Sector, Product - International Banking Program Management Sector, Products & Marketing - Financial Management Program Management Group; Legal Administration Sector and - Project Management for Local Development Properties Management Sector, Substandard Debts - Corporate Finance & Merchant Banking Seminar, Management Group, Krung Thai Bank Pcl. Citibank USA Annual Report 2009 31

Krung Thai Bank Pcl.


9. Ms. Pannipa Apichatabutra

First Executive Vice President – Managing Director Internal Audit Group Age 55 Education

- MBA, Ohio University, USA - BBA (Accounting), Chulalongkorn University Training - Class 28/2008 Company Secretary Program (CSP), Thai Institute of Directors Association (IOD) - Internal Audit Quality Assessment Program, The Institute of Internal Auditors of Thailand (IIAT) - Class 2/2006 Executive Program for Senior Management (EX-PSM2), The Fiscal Policy Research Institute Foundation (FPRI)

Other Position

- Secretary of the Audit Committee, Krung Thai Bank Pcl.

- Executive Vice President, Treasury & Capital Market Sector, Financial Management Group; Financial Market and Institutions Sector, International Business and Financial Markets Group, Krung Thai Bank Pcl.

Experience

10. Mr. Prasert Thiranakanat

First Executive Vice President – Managing Director Credit Risk Transaction Management Group Age 59 Education

- MBA, Kasetsart University - BA (Economics), Thammasat University

- Class 1/2007 Management Administration Public – Private - Class 6/2005 Audit Committee Program (ACP) and Class 15/2004 Director Accreditation Program (DAP), Thai Institute of Directors Association (IOD) - Management Problem Solving and Decision Making Program - Class 8/1994 Senior Executive Program (SEP), SASIN

- Chairman of KTB Provident Fund - Director, Krung Thai IBJ Leasing Co., Ltd.

- Executive Vice President, Corporate CRTM Sector, Credit Risk Transaction Management Group /

Training

Other Positions Experience

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Executive Vice President; Senior Vice President, Industrial Financing Analysis Department, Corporate Banking Group, Krung Thai Bank Pcl.

11. Ms. Patcharasiri Kiatkumjai

First Executive Vice President – Managing Director Risk Management & Compliance Group Age 58 Education

- MS, National Institute of Development Administration - BSc. , Chulalongkorn University Training - Class 29/2009 Company Secretary Program (CSP), Thai Institute of Directors Association (IOD) - Class 13/2009 Effective Minute Taking (EMT), Thai Institute of Directors Association (IOD) - TLCA Annual Risk Management Conference 2009, Thai Listed Companies Association - The Role of Banking and Banking Supervision in Financial Stability 2008, People’s Bank of China - Class 84/2007 Director Certification Program (DCP), Thai Institute of Directors Association (IOD) - Value Based Management 2007, Mahidol University - CFO State Enterprise 2006 - Creating a Value Based Organization 2005, SASIN - Senior Administrators Program (SAP) 2005, SASIN

Other Positions

- Secretary to the Board of Directors, Krung Thai Bank - Corporate Secretary, Krung Thai Bank Pcl. - Director, Krung Thai Computer Services Co., Ltd. - Director, Thai Listed Companies Association

Experience

- Executive Vice President, Financial Planning Sector, Financial Management Group / Executive Vice President; Senior Vice President; First Vice President, Planning & Budgeting Department, Krung Thai Bank Pcl. 12. Dr. Anuchit Anuchitanukul

First Executive Vice President – Managing Director Products & Marketing Management Group Age 39 Education

- PhD (Computer Science), Stanford University, USA - MSCS (Computer Science), Stanford University, USA


- MBA, Chulalongkorn University - BEng (Computer Engineering) (1st Class Honors), Chulalongkorn University

- Class 4/2008 Executive Program for Senior Management (EX-PSM4), The Fiscal Policy Research Institute Foundation (FPRI) - Class 93/2007 Director Certification Program (DCP), Thai Institute of Directors Association (IOD)

- Director, Krung Thai Computer Services Co., Ltd. - Director, National ITMX Co., Ltd. - Director, Krungthai Panich Insurance Co., Ltd.

- Executive Vice President; Senior Vice President, Cash Management Sector, Operation Group / First Vice President, Corporate Cash Management Department, Operation Group, Krung Thai Bank Pcl.

Training

Other Positions

Experience

13. Ms. Sriprabha Pringpong

First Executive Vice President – Managing Director Government & State Enterprise Relations Group Age 57 Education

- MBA, University of Toledo, Ohio, USA - BA (Accounting), Chulalongkorn University

- -

-

Training

Advanced Management Program for Oversea Bankers, Wharton School, University of Pennsylvania, USA Certified Internal Audit (CIA), Faculty of Commerce and Accountancy, Chulalongkorn University

Other Position

Experience

- First Executive Vice President; Executive Vice President, Government Relations Sector, Government & State Enterprise Relations Group / Senior Vice President, Government & State Enterprise Relations Sector, Government & State Enterprise Relations Group, Krung Thai Bank Pcl. 14. Mr. Weidt Nuchjalearn First Executive Vice President – Managing Director

Business Center Group Age 56 Education

- MS (Commercial), Thammasat University - BSc., Kasetsart University

- Commercial Credit Skills Assessment - Class 14 /2005 Financial Executive Development Program (FINEX), The Thai Institute of Banking and Finance Association

- Director, Krungthai Panich Insurance Co., Ltd. - Director, KTB IBJ Leasing Co., Ltd.

- Executive Vice President; Senior Vice President, Central, Eastern & Southern Region BC Sector, Business Center Group / Senior Vice President, Central & Eastern Region BC Department 1, Business Center Group, Krung Thai Bank Pcl.

Training

Other Positions Experience

Annual Report 2009 Krung Thai Bank Pcl.

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Business Environment 2009 Economic Overview and Outlook for 2010 The Economy in 2009 The Global Economy: Heavy Storms Worldwide Recession The sub-prime crisis that sparked up since year-end 2008 left stronger impact than expected. The 2009 global economy ended with an economic contraction of 0.8 percent from a growth of 3.0 percent in prior year. This is the first decline in post-World War II. The gross domestic product of the G3 countries, United States, Euro Zone and Japan, key world markets all contracted simultaneously as much as 2.5 percent, 3.9 percent and 5.3 percent respectively. Consequently this economic crisis severely affected many countries worldwide. Moreover, additional major incidents had affected the world economy as well which can be summarized as follows: - Change of head of state Predominantly in the United States and Japan, world’s first and second largest economies, when Mr. Barack Obama was elected as the 44th President of the United States and Mr. Yukio Hatoyama, the Opposition Leader, stepped up as Japanese Prime Minister first time in over 50 years. Such changes influenced the global economy significantly causing changes in national administration and foreign policies. - World financial problems After stress testing in early 2009 it was discovered that 10 out of 19 US large financial institutions had unsound financial standing and needed to increase their capital. Meanwhile Citigroup Inc., Bank of America and Morgan Stanley all were confronted with heavy liquidity strap and had to seek bailout from the US government and throughout the year, over 140 US financial institutions announced their bankruptcy. At the same time, the EU economy was shaken when Dubai World, a major debtor of a top

34

European financial institute sought to delay its debt payment. Moreover, governments of several countries in Euro Zone, namely Greece, Ireland, Spain and Portugal encountered heavy insolvency and budget deficits after successively taking economic stimulus measures. - Worldwide export decline This crucial cause sent the financial crisis in the US to other regions with escalating intensity until it became a global economic crisis. As buying orders from G3 markets phased out, volume of export, production and investment of export countries worldwide contracted accordingly. Economic activities in various countries including consumption, employment and import thus slumped as well. - Outbreak of 2009 H1N1 Flu This influenza spread rapidly after its first outbreak in Mexico prompting the World Health Organization (WHO) in June 2009 to raise the pandemic alert to the highest level 6. As a result a serious panic was stirred up in the global money markets and capital markets putting a negative impact on tourism in several countries as well as that of manufacturing. - Record low interest rates The severely tight liquidity and rapid economic slump forced central banks of respective countries to inject funds into the system and continuously cut their interest rates. As a result, policy interest rates were cut to a record low. In 2009, US Fed Funds Rate stood at 0 – 0.25 percent, Euro Zone Refinancing Rate down to 1.0 percent, UK Bank Rate at 0.5 percent and Japan Uncollateralized Overnight Call Rate at 0.1 percent. - Negative inflation rate Oil prices plummeted continuously from late last year following slackening demand from economic downturn. Oil prices reached a record high of USD 147/barrel in mid-2008 and


dropped to a low of less than USD 40/barrel in early 2009 and annual average price was at USD 61.59/ barrel compared to average price of USD 93.53/barrel in 2008. Hence negative inflation rates were seen in several countries including the United States, Euro Zone, China and Japan. - Gold prices made new records throughout the year As investors turned to speculate gold in place of oil after successive falls of oil prices and the sale of large quantities of gold by IMF to central banks in some countries, boosted demand for increasing proportions of gold in international reserves of many countries. Coupled with that, the US dollar was weakened from prior year. Gold bullion prices hit a record high of USD 1,215.90 per ounce before declining in certain periods with annual average price at USD 973.72 per ounce compared to an average of USD 698.45 in 2008. - Rapid rise in unemployment Global economic recession prompted the manufacturing sector to scale down production or close down business. Hence, unemployment figures trended to increase in almost every country especially the United States and Europe where unemployment hit the level of 10 percent at yearend. This was a significant factor pressuring volume of consumption, the essential part of economy, to slacken deeply. The Thai Economy: Double Crisis The Thai economy in 2009 contracted 2.3 percent from a growth of 2.5 percent in prior year, another recession in a decade after contraction of 10.5 percent in 1998 from the 1997 economic crisis. The negative impact from global economic recession caused Thailand’s export, the crucial driving force of national economy, to contract drastically and continuously throughout the first 10 months of the year. As a result,

annual average export declined by as much as 13.9 percent from an expansion of as high as 15.9 percent in previous year. Production and domestic investment followed suit with chain reaction to employment in industries particularly automobile, textile and electronics causing private spending to shrink. Apart from such pressure, the Thai economy in 2009 had to encounter an environment that was more serious than other countries including political conflict with periodic rallies by anti-government groups, deep-south insurgency problem as well as outbreak of 2009 H1N1 flu causing large number of deaths. During the first half of 2009, the Thai economy contracted by as much as 6.0 percent specifically 7.1 percent in the first quarter. This was due to contraction of consumption, private investment and export by as much as 2.5 percent, 15.9 percent and 16.7 percent respectively. Capacity utilization rate in February dropped to merely 54.6 percent close to the lowest level during 1997 economic crisis. In the second quarter, contraction started to slow down after the government implemented Stimulus Package 1, comprising of Saving Nation Cheques, 15-Year Free Education, Old–Aged Allowance and Village Health Volunteers including renewal of Cost-of-Living Reduction Project or the Six-Month Five Measures Scheme. Hence Thai economy in the second quarter contracted somewhat less but contraction was still as large as 4.9 percent. During the second half of the year, good signs started to show when global economy began to recover from the driving forces of fiscal and monetary measures taken by respective nations including Thailand that launched Stimulus Package 2. Businessmen and consumers regained their confidence from the third quarter after the government launched concrete and Annual Report 2009 Krung Thai Bank Pcl.

35


tangible measures and budgetary funds came into the system in October. This was combined with the government’s success in hosting the ASEAN Summit Conference in October that was able to build confidence to foreign investors and tourists at a certain level. Such positive factors clearly helped the Thai economy to pick up when export and consumption grew again during the last two months of the year resulting in GDP growth of 5.8 percent in the fourth quarter. Meanwhile, general inflation started to go up from a negative rate of as much as 4.4 percent in July to a positive rate of 3.5 percent in December. However, the annual average inflation rate for 2009 posted -0.9 percent compared to 5.4 percent in 2008.

Economic Outlook for 2010

Global Economy: Back on Recovery but Still Unstable Global economy is anticipated to grow again at the rate of about 3.9 percent after evidencing recovery signs in the second half of 2009. Leading the head will be the Asian economy especially China and India that will continue to grow. From key economic indicators other regions also see trends of recovery such as GDP of the US, Euro Zone and Japan in the fourth quarter of 2009 expanded from the same quarter of 2008 by as much as 5.7, 0.1 and 1.1 percent respectively. As a result, inventories depleted so much that restocking was needed. Nevertheless, recovery of the world economy is still very fragile and may be twisted to another round of economic crisis considering the following key factors: - Unemployment remains high The United States and Europe continue to experience high unemployment rate reflecting that such recovering economy is still at risk. Private spending both consumption and investment remain lackluster and

36

unable to drive up the economy to replace public spending while governments of various countries put more restrictions on budget disbursements. - Public debt on the rise The need to take economic stimulus in prior year has caused governments of several countries to experience high public debts relative to GDP. National fiscal stability was finally affected and impacted debt repayment as seen in Greece, Ireland, Spain and Portugal whereby country credit rating had been downgraded. This stirred up panic in the money market last year. Problems of similar nature may arise again. - Oil price hike Following world economic recovery, the intention of OPEC to peg oil price at the target level, the weaken US dollar resulting from the fragile US economic recovery and the strong Asian currencies, it is expected that annual average Dubai crude oil price for 2010 will move up to USD 75/ barrel from average of USD 61.59 /barrel in prior year or up 21.8 percent. This will put pressure on production cost and inflation and will have an on-going impact on consumption that has just recuperated. - Bubble condition in China property sector With the huge capital inflows into China in the past years coupled with record high lending in 2009 from credit relaxation measures by the Chinese government, property prices have surged up dramatically and continuously provoking concern that such expanding bubbles may burst and cause another round of economic crisis. As many countries particularly those in Asia, predominantly rely on Chinese economy, so if Asian economy, the vital driving force of world economy in 2010 is adversely affected, global economic recovery will definitely be impacted. - More frequent and severe natural catastrophe Natural disasters could create economic losses and


impact people’s well being such as the strong earthquake in Haiti in January 2010 claiming over 100,000 lives and expecting more than a decade to rehabilitate the country. Also climatic conditions in various regions of the world have changed considerably and could affect world economic recovery, for instance, the coldest weather in several decades in China, South Korea, Japan, and heavy snowfalls in Europe. Unfortunately such climatic condition cannot be accurately predicted.

The Thai Economy: Recovering amidst Risky Environment

It is anticipated that the Thai economy in 2010 will turn around to grow at 3.0-4.0 percent through key driving forces in the second stimulus package. In 2010, more than Baht 3.0 trillion of the budgets will be injected into the system in continuation from year-end 2009 when over Baht 1.7 trillion was disbursed. This extra budget increment will help to stimulate consumption and investment until they are able to function normally. At the same time, it is expected that export which started to expand successively in the last two months of 2009 will retain such expansion throughout 2010 following global economic recovery. However, key risk factors that may adversely affect the Thai economy to recover longer than anticipated are as follows: - Problem in Maptaphut Industrial Estate The government’s competence to resolve problems of industrial projects that may have negative impact on health and environment such as Maptaphut incident will be a key indicator for future Thai investment. After this incident where stakeholders collectively filed lawsuit at year-end 2009 and the court ordered 64 large projects totaling investment of nearly Baht 3.0 trillion to suspend their activities until the case comes to an end, investors

were confused as they confirmed that they have followed the official procedural steps. This will adversely affect foreign investors’ confidence and they might relocate their production base away from Thailand. If 50 percent of 2009 foreign investment phase out of Thailand it is estimated that 2010 GDP growth will fall to merely 2.2 percent from 3.5 percent if nothing happen or down by as much as 1.3 percent. - Internal Politics Problem This will remain a key risk pushing down the Thai economy to grow less than its potential as it has impact on trade, investment and tourism. Such impact will also lower the government’s administrative efficiency in carrying out its policy. Also affected will be the credibility of the government and the nation in the eyes of international institutions. - Inflation Inflation rate tends to rise following oil prices, commodity prices and demand turnaround. It is expected that the 2010 annual average inflation rate will range about 2.5 - 4.5 percent. This may not adversely affect the overall stability but in early stage of economic recovery, high inflation will have impact on private consumption and investment through rising prices of consumer goods and raw material costs. Inflationary pressure will also speed up the regulator action to adjust interest rates to curb inflation to be at an appropriate level. - Baht Value The Thai Baht tends to appreciate again after following other currencies in the region especially if China strengthen its Yuan as anticipated by money markets. Besides, Baht will be more volatile due to the current of capital movement at times when various countries raise their interest rates. Such scenario will obstruct Thailand’s competitiveness in export especially when comparing Baht with Vietnamese Dong that tends to weaken further.

Annual Report 2009 Krung Thai Bank Pcl.

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- Risk of a New Round of World Economic Crisis The Thai economic recovery needs to rely on export that accounts for as much as 64.7 percent of GDP. If a new round of global economic crisis occur it is inevitable that Thailand will escape the effects.

An Overview of Commercial Banking Business and Outlook for 2010 Commercial Banking Business in 2009

In 2009 Thai commercial bank as a whole had proved its strength and ability to cope with the world economic crisis and the Thai economy that contracted drastically in the past decade. The 11 banks and their subsidiaries listed in the SET earned a net profit of as high as Baht 93,525 million in 2009, up by Baht 8,065 million or 9.44 percent from 2008. Key factor contributing to this outstanding performance is the strong financial position with CAR ratio of 15.77 percent. Operating performances reflecting commercial banks’ competence in adjusting with the changing environment were summarized below: Efficient Earnings Management Despite interest earning, major income of the business slumped by as much as 11.86 percent, the Bank managed to lower interest expenses by as much as 38.35 percent. Quality Credit Management The accrued interest receivable of commercial banking industry dropped by as much as 29.29 percent and NPLs declined by 5.55 percent while NPLs to Loans ratio improved from 3.26 percent in 2008 to 3.03 percent. Expansion of Non-interest Income Base to Replace Interest Income Fee-based income boosted up by as high as 12.68 percent. As a result, non-interest income to total income ratio rose to 30.38 percent from

38

22.69 percent in 2008. Expansion of Business Network for Larger Income Base Commercial banks enlarged their income base through acquisition of business or loan portfolios from several business groups. As a result, the overall operating performance of commercial banks improved significantly. Key financial figures shown in consolidated financial statements were much better than those in the banks’ own statements such as loans, noninterest income and net profit rose by 1.25, 31.19 and 9.44 percent compared with slight increases of merely 0.02, 27.70 and 1.71 percent respectively on the banks’ own statements.

Commercial Banking Outlook and Competition in 2010

Commercial banking industry in 2010 is expected to improve following the directions of world economy and Thai economy that are anticipated to rebound once again. However, commercial banks still have to face challenges in several aspects especially more intensive competition, greater volatility of currencies and stricter rules and regulations following progress in implementation of the Financial Sector Master Plan Phase 2 as well as the Thai Capital Market Development Plan. Crucial changes in 2010 are as follows: Interest rates will be driving up The repurchase rates is expected to increase in the second half of the year. Commercial banks interest rates particularly deposit rates will tend to increase at a faster pace than interest rate for loans due to heavy competition. However, interest rate upward direction and credit expansion trends will widen the interest spread for 2010 after declining in 2009. Change in the Thai commercial bank structure In 2010 Thailand will have more banks with foreign


shareholders but the total number of banks will decrease and banks in general have wider business network resulted from the impact of the Financial Sector Master Plan Phase 2 and the Thai Capital Market Development Plan. Commercial banks will be stronger and carry lower operating costs With the increase in foreign shareholding and the implementation of the Financial Sector Master Plan Phase 2 and the regulatory relaxation enabling banks to expand their branch network and scope of operation and the promotion of voluntary merger to strengthen the business, banking industry is foreseen to expand favorably. At the same time, NPL and NPA tend to decline following economic rebound. It is thus anticipated that in 2010, cost to income ratio of commercial banks will tend to fall. Operating performance tends to outshine Commercial banks performance in 2010 will outpace the prior year with better trends in lending, interest rate spreads, asset quality, capital funds and net earnings as well as expedition of fee base income. Competition will intensify The gradual global and Thai economic recoveries induce higher demand for loans in business and private sectors. The enforcement of the Financial Sector Master Plan Phase 2 in 2010 helps to strengthen banks and allows each foreign bank to open another two offices, as well as government lowering its profile in commercial banks and expansion of specialized financial institutions’ services. Enforcement of the Thai Capital Market Development Plan also help to stimulate competition with its liberalization measures and boosting efficiency of financial intermediaries, tax reform for capital market development, financial products enhancement to attract investors. Hence, commercial banks in 2010 must set up their strategy to handle stressful and diversified

competition with overall trends summarized below: - Customer Centric Innovative products are introduced to meet the exact needs of customers in each segment. It is hoped that with impressive services customers will return and use other recommended services. The ultimate goal is customers bringing back new customers. - Providing knowledge, advisory service and help in problem solving Such as consulting services in wealth management, it will be a good strategy in earning fee based income, attracting customers, creating values and loyalty to the banks in the future. - Developing Human resources for higher efficiency and excellent service mind Training is focused on staffs to service all levels of customers molding them into professional sales besides offering excellent services. - Technological development In 2010 the Bank of Thailand and commercial banks thus aim at developing technology in financial servicing to be more convenient, economical and secure especially in funds transfer and payment.

Annual Report 2009 Krung Thai Bank Pcl.

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Business Operation

An Overview of Krung Thai Bank Performance 2009 Operation

Krung Thai Bank in 2009 succeeded well in striving through the economic turmoil and challenges all around with strong devotion and collaboration from the Board of Directors, executives and all staff members in turning crises into opportunities. They all performed their tasks with determination to achieve the goals; to carry out the consolidated supervision policy; to continue developing Bank’s competitiveness and to create new innovations. Business operation proceeded on the principle of sustainable growth with continuous care for the society and environment. All these enabled the Bank to retain the position of being Thailand’s leading commercial bank providing versatile financial products and services through distribution channels with modern state-of-the-art technology. The Bank was capable of rendering services of convenience and speed meeting the needs of customers of all segments and in line with its vision of being the Convenience Bank. Moreover, the Bank maintained high standards of business

40

management and risk management with transparency and good corporate governance. Staff members were always ready to provide quality services as such customer base expanded continuously. On the operating performance, the Bank’s income grew satisfactorily with quality assets, strong capital base and broad business and social networks. These combined factors resulted in successful operation albeit economic downturn (details in Analysis of Operating Performance and Financial Standing pages 90-99). Moreover, the Bank had opportunities both as the country’s leading commercial bank and as state-owned bank in stimulating the economy through injecting credit into the economic system to assist entrepreneurs. At the same time, the Bank launched new loan products in full support of the government’s Stimulus Package 2. Such actions were recognized locally and abroad. As a result, the Bank and its executives were presented with many prestigious awards in 2009. Among them was the Banker Awards 2009 for good operating performance, expansion of credit despite worldwide


economic recession, vital role in helping to stimulate the country’s economy and modern technology to add extra convenience for the clients. The operating performance of Krung Thai Bank and its subsidiaries for the period ended December 31, 2009 registered total deposits of Baht 1,207,613 million up from the prior year by as much as Baht 144,397 million or 13.58 percent despite tough competition from high interest rate deposits plus privileges offered by commercial banks and government bonds as well as private sector debentures offering much higher interest rates. The Bank’s total loans amounted to Baht 1,071,880 million, up Baht 29,382 million from the previous year or 2.82 percent. Meanwhile, non-performing loans declined with net NPLs of Baht 52,209 million, down from prior year-end by Baht 6,604 million or a fall of as much as 11.23 percent enabling net NPLs to loans ratio to decrease to 4.11 percent from 5.42 percent at prior year-end. This was in contradictory direction to the economy that contracted most severely over a decade pressuring demand for loans and debt repayment to drop significantly. Such success was derived from the Bank’s policy and determination to extend credit to boost liquidity of entrepreneurs and further drive the economy to recovery. Under prudential and sound credit risk management principle, the Bank carefully analyzed and approved new loans and closely monitored existing customers. As a result, provisions for bad and doubtful accounts dramatically dropped by 42.76 percent from prior year while fee income expanded 30.68 percent but since interest rate was on the downward slide net interest income was impacted to decline more. Hence, the Bank earned a total net profit of Baht 12,189 million in 2009, a slight fall from prior year by Baht 83 million or 0.68 percent.

The Bank is determined to ceaselessly develop its organization to accommodate future growth and competition through clear formulation of policy and strategic plan for the next 3-5 years taking into consideration the changing business environment under the vision of being the Convenience Bank for retail customers, public and private sectors and institutional clients. (Details on page 65) The Bank has developed many products and upgraded the quality of services whereby customers of all groups can have a touch of comfort with convenience and care provided while enjoying ultimate satisfaction thus enabling its Convenience Brand to always remain in the customers’ minds.

Core Business Groups and Income Structure

The Bank’s organization structure comprises 13 business groups that serve as a mechanism in driving the Bank forward to achieve the set goals under the mission of being Thailand’s leading financial institutions providing excellent service, creating sustainable returns, promoting intellectual capital and adhering to good corporate governance. Details of each group are summarized below: Network Group is the main business group for income building and customer service providing through its front office operation. Geographical area of responsibility includes 10 sectors, 64 regional offices and 884 domestic branches as at December 31, 2009. The group renders full line of financial services to clients under the Bank’s strategies such as deposit taking, lending, payment of goods and services as well as selling products of subsidiaries and business alliances to boost income and ultimate customer satisfaction under systematic risk management. Annual Report 2009 Krung Thai Bank Pcl.

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The Network Group in 2009 enjoyed satisfactory overall operation performance amidst contracted economy. It mobilized savings and extending credit well beyond targets while non-interest income and NPA proceeds were very close to the target. All these resulted from the development of new products and distribution channels adding convenience and speed to clients. For instance, KTB Smart Open Account service depositors can open new account online without application form. More branches and currency exchange booths were opened in Bangkok and vicinity as well as in the provincial areas. In existing branches, wider customer areas were provided with interior ambiance that was spacious, well-ventilated, comfortable and chic. On service side, the Network Group gives priority to customer satisfaction creation through speedy service assurance under the on-going Service Level Agreement (SLA) since 2007. Among assured services were Thanawat revolving loan approval within 5 working days, housing loan approval within 7 working days, over-the-counter

42

services within 3 minutes and new account opening with ATM card within 10 minutes. Furthermore, the Group organized the “Star of QA” contest and award presentation to the branches with excellent customer service and well kept premises in support of quality assurance for excellence as well as employees competence development toward professionalism. Various training programs were organized concerning products, service providing and selling. At the same time, employees with top sales and excellent services were honored. On sales promotion, the network Group organized joint projects with the subsidiaries throughout the year 2009 such as “Go Shop, Go Bank” to boost the Bank’s earnings and fee-based income and the project “KTB Fair 2009” to help promote clients’ business while conveying thanks to customers and ultimately stimulating the economy. Such performance gave the Bank the award “Distinctive Services in 2009” from the State Enterprise Policy Office. For 2010, the Network Group sets its strategy on expansion of retail customer base, from new customers and from increased sales of existing clients. All branches will have to hold marketing activities from time to time to recommend new products with focus on increasing competitiveness in the target areas and customer segments both in deposits and lending services. All these will be topped up towards recommending services of Asset Under Management (AUM) and Cash Management. Also in 2010, the Group will further enhance its quality assurance of service by putting in more customer service relationship manager (CSRM) officers to take care of the customers, and recommend appropriate products. Relevant training and activities will be organized more intensively while branches outlook will be modernized with new


branches and ATMs added and relocate certain ATMs for greater customer convenience. Moreover Mobile Banking unit will be provided regularly in all regional offices to facilitate client banking service such as deposit and withdrawal of cash and foreign exchange transactions thus reaffirming the Bank’s stance of being “the Convenience Bank”. Business Center Group provides the small and medium enterprises (SMEs) with credit line from Baht 20 to 500 million. This is one of the core target segment and crucial base for national economic growth. In 2009, the Business Center Group offered various loans and financial products to SMEs through 63 business offices (BC) nationwide, manned by qualified and experienced staff whose competence has been enhanced continuously to take good care of the customers. Moreover, the Group had developed loan products that meet the client needs thus boosting fee-based-income, market share and being a leader in SME business service providing. Apart from rendering general domestic credit line such as overdraft, term loan, promissory note, foreign credit line is also given namely letter of credit, trust receipt and packing credit. The Group in 2009 set up several loan projects to support and strengthen the SME competence that were in line with the government policies. Among them were: Krung Thai – SME Loan, True Friend overcome Crisis to supplement liquidity and boost competitiveness of SMEs impacted by economic downturn. Thai Khemkhaeng Loan Project comprising Instant L/G and Thai Khemkhaeng Construction Loan in support of the Stimulus Package 2 (2010 – 2012) for stimulating and

reviving the economy with fast track loan approval for SME construction contractors under this scheme. Furthermore, the Business Center Group continuously carried out the Modern Management for SMEs training program to enhance knowledge and understanding of modern business management to the small and medium entrepreneurs with opportunities to exchange business information among them for their future strengths. In 2010, the Business Center Group keeps attaching priority to expansion of quality credit and issuance of more loan products that match the needs of the SMEs focusing on small entrepreneurs’ greater access to sources of capital funds. A scheme in support of this task is the Factoring Project as well as support given to government policy particularly the Stimulus Package 2 Scheme to provide on-going assistance to the SMEs, credit for entrepreneurs in agriculture and hotel in major tourist areas. In addition, the Group aims for building strengths for the SME clients through conversion of its role to be business alliance and buddy of the clients. The Bank staff’s competence will be enhanced continuously so that they can understand SME clients’ needs better and efficiently give advisory services to them. Besides, the Group plans to organize Customer Value Added Program to provide SMEs with technical knowledge and will join forces with the alliance network in giving continuous support to the clients’ business activities. All these will help build the SME competence to serve as strong foundation of the Bank and the country as a whole. Government & State Enterprise Relations Group provides respective government agencies Annual Report 2009 Krung Thai Bank Pcl.

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and state enterprises with financial services including deposit taking, loan to goverment agencies and retail loan to government officials and state enterprise employees. The Group also acts as an intermediary to facilitate the receipt and payment of goods and services between the government and the general public or counterparty. As the world economic downturn in 2009 had negative impact on countries worldwide including Thailand resulting in higher risk in business operation. The Group thus focused on credit expansion to government and state enterprise to avert such risk and support government agencies operation as well. Emphasis was placed on loans to the government for budget expenditure and retail loans for government employees to boost domestic purchasing power and stimulate the economy. As a result, the Group in 2009 mobilized higher retail loans surpassing the target set. When the Bank launched “Krung Thai Loan for Thai Khemkhaeng” in support of the government’s Stimulus Package 2 (2010 – 2012), the Group played an active part in supporting loans for construction university buildings, energy saving and environment conservation loan, local administration organization loan and community bank. Besides, the Group attached the importance to rendering cash management services to government agencies and state enterprises and thus enhanced applications of several projects to provide full array of services. On distribution channel development, the Group had added more Convenience Counter service points in remote communities with no branches. Since it is expected that the Thai economy will pick and with continuous support to the government’s Stimulus Package, the Group plans to expand credit to the government sector to

44

accommodate the budget expenditure required and extend more retail loans to government officials, as low-risk credit. Other financial services to be expanded include cross-selling products and up-selling service. Development Cash Management system is in conjunction with core business units of government and state enterprises. Furthermore, the Group will continue on supporting the government policies with key projects such as “Non-Financial Institution Debts Resolving” and Village Funds Credit Expansion projects. Corporate Banking Group renders loans with credit lines of over Baht 500 million to private corporate and state enterprise customers of all main businesses through arrangements for credit facilities appropriate for their business operation and requirements. Among them are fixed assets investment loan, working capital loan and international trade finance including services such as debenture issuance, cash management service and hedging tools against exchange rate risk. During 2009, economic contraction combined with political turmoil periodically throughout the year caused declining applications for investment loans and/or domestic business expansion credit. Hence, foreign investors reduced or deferred their investment in Thailand and clients in several business sectors particularly hotel and tourism encountered financial problems. The Bank thus had the policy to bail them out through renewal of loan period or interest rate cuts as deemed appropriate. Overall in 2009, the Group continued to provide credit facilities to businesses such as petro-chemicals, energy, office building leasing, steel manufacturing, sugar manufacturing, real estate and telecommunication. As for the problems of Maptaphut projects whose


businesses were temporarily suspended by court order included those supported financially by the Group but most of them were projects run by companies of strong financial standing so still able to repay debts to the Bank. Concerning operation plan for 2010, the Corporate Banking Group still concentrates on credit expansion both to existing clients and new customer bases in respective business sectors overseen by the Group. They are construction finance, project finance, agricultural finance, commercial finance

and services finance as well as one-stop services for clients by being a Value Advisor giving advice on blending of money market products with capital market products to be in line with the trends that corporate entrepreneurs will mobilize funds through debt securities issuance more than borrowing from banks. Apart from this, the Group still attaches significance to risk management and credit impairment prevention through close monitoring of credit lines used by clients. Financial Management Group formulates the Bank’s business plan and oversees the financial

structure to ensure its appropriate levels while creating profit from managing the Bank’s investment, foreign exchange business and excess liquidity. Besides, the Group oversees services relating to interest rates and exchange rates as well as wealth management. Furthermore, the Group serves as a center for financial information, customer information and management information and disseminates them to investors, risk rating agencies and general public. In addition the Group also formulated KPI for assessing for executives and the Bank. During 2009, the key plans implemented made satisfactory progress especially managing capital fund that was so well enabling the Bank to enjoy a very strong financial standing. CAR value as at December 31, 2009 posted 15.92 percent, up from 13.08 percent as at year-end 2008. On treasury and capital market, the Group expanded and strengthened its teams while issuing wider array of products. An additional subsidiary was set up namely KTB Advisory Co., Ltd. to render financial advisory services to clients both in public and private sectors. At the same time, the Group urged more synergy between the Bank and its subsidiaries to serve as a “Total Solution Provider” to meet all customer requirements. Besides, the Group entered into a co-investment agreement with ZMICO Securities Pcl. for investing in KT ZMICO Securities Co., Ltd. (formerly KTB Securities Co., Ltd.) bringing its market share to the third rank of a total 38 companies. In addition preparation has been done to accommodate the International Accounting Standard No.39 (IAS 39). The Bank already reported the impact and recommendations in adopting IAS 39 and what occurred with financial statements using IAS 39. Also reported were issues of differences between the Bank’s accounting Annual Report 2009 Krung Thai Bank Pcl.

45


practice and IAS 39 and the difference between the Bank’s work system and compliance to IAS 39. For 2010, the Group’s will keep focusing on boosting transactions and income from treasury activities and investment including efforts to expand customer bases in the groups of savings and investment with on-going enhancement of internal work systems. Operation Group supports all income-generating business units and serves as a key driving force in propelling the Bank’s business forward. The Group acts as an operation center for branch support, international business operation, credit operation, premises and property management, security service, procurement including management and enhancement major work systems of the Bank. During 2009, the Operation Group set up the Legal Contract Center and introduced the Legal Contract System for setting personal retail and corporate credit lines. A state-of-the-art trade finance software was introduced enabling the International Trade Services Department and International Business Centers nationwide to serve clients on internet web-based trade finance system thus helping to boost income from international business services. Moreover, the Group supported other operations of the Bank for greater efficiency and better services to the clients namely GIS ATM Profile Website enhancement to boost efficiency of electronic machines management, centralization of loan operation management and procurement of electronic self-service machines and kiosks to accommodate the client base broadening. Also the Group supported the Bank’s corporate social and environmental responsibility policy through establishment of internal energy saving project and

46

Krung Thai Growing Green project. Plans for 2010 Operation Group will set up more electronic machines and continues on with centralizing loan operation management to cover all types of credit transactions for all customer groups. Also the Group will enhance trade finance service to be Hub & Spoke so to reduce errors and expenses of the Bank. Products & Marketing Management Group supports marketing management and income generating work. Major responsibility includes formulating marketing and sale strategies, research on market opportunities so as to develop new products and services including distribution channels for products that suit each client groups as well as appropriate pricing for such products. Moreover, the Group oversees cash management service for the clients in private and public sectors, preparation of sales media and tools, marketing activities organizing, market information preparation and customer relationship management (CRM) system setup as well as monitoring, assessment and survey on customer satisfaction toward products and services rendered. All this is the boost earning and cut operating cost while increasing market share for the Bank. In 2009, the Group jointly with the Network Group set the targets in expanding deposit bases, loans and fees while joining hands with Corporate Banking Group, Business Center Group and Government & State Enterprise Relations Group to widen the cash management client bases. On deposit side, the Group launched high yielding deposit products such as KTB Birthday to return income to depositors on the occasion of the Bank’s 43rd Birthday Anniversary, Krung Thai 48-month


fixed deposit for customers missing the opportunity to buy the Thai khemkhaeng savings bonds, KTB Fair 2009 deposit in return to patron clients etc. As a result, the Bank in 2009 enjoyed satisfactory increase in deposits. The Group also enhanced service system to add convenience and ease for customers such as KTB Smart Open for account opening with no application needed, e-Savings Account and e-Saving Card enabling the cardholders to conduct transactions without passbook. On loan side, certain part of general public in 2009 encountered financial problems resulting from economic recession, the Group thus launched home refinancing product at special interest rate together with product package of loans for leasing, fire insurance and life insurance. Moreover, the Group issued Thanawat Revolving Loan and Multipurpose Consumer Loan at lower interest rate than in the markets for clients on payroll through accounts with the Bank thus enabling the Group’s loan performance to surpass the target set by large amount. Concerning services, the Group developed new services of numerous types such as interbank funds transfer through ADM, issuance of Prepaid Card for clients who do not want to open their account or minor customers and Fleet Card with credit line for gasoline filling. Such operating performance helped increase the Bank’s fee income and the Group’s target for this type exceeded the target. To boost customer satisfaction, the Group set up a Complaints Center to accept complaints from clients with quality assurance requiring them to submit complaint to business units concerned within one day so that they would be informed of the progress and solution to such complaint in no time. In 2010, the Group plans to support the Bank’s strategy in offering Convenience & Care to clients

through greater convenience and ease with respect to network and system. On network, the Group will stress on selling points in location easily accessed by customers while standardized in-branch banking media to be under the concept “Mood & Tone” to match the branch design. On banking system, focus will be on more stability through increase of self-service features such as install barcode reader on all ATMs, held-card process enhancement for quicker solution, increase communication channels between branch, clients and product specialists for higher efficiency in products sale as well as after-service evaluation to create customer satisfaction. On income generating, the Group plans to continue increasing deposits, loans and fee-based income. On deposits will focus on private sector deposit expansion while retaining government deposits combined with launching new deposit products to meet the needs of clients preferring higher returns than market rates and more convenience is provided for online account opening. On credit side, focus will be on loan expansion for clients on payroll with accounts at the Bank while synergy with subsidiaries and business alliances will be strengthened to expand personal loans and one-stop service. The Group plans to expand its service providing online and issue more versatile cards for different customer segment while speeding up fee-based income building as well as broadening cash management client bases. Credit Risk Transaction Management Group (CRTM) operates autonomously playing vital role of checks and balances in credit work process namely credit scrutiny, risk assessment and advisory service related to credit approval. All these aim for quality credit extension in compliance with the Bank’s Annual Report 2009 Krung Thai Bank Pcl.

47


policy and procedures and requirements of the Bank of Thailand. During 2009, the CRTM Group scrutinized credit applications to obtain quality loans through regular monitoring relevant information of industry to catch up with the changing economic environment affecting credit quality. The Group developed business and credit models of major key industries. Crucial information include industry condition, comparative marketing data, financial ratios, outstanding NPL and terms & conditions setting for risk prevention with publicity on the Bank’s intranet website to strengthen the operations of respective business groups for greater efficiency. Besides, the Group focused on aggressive functioning to monitor, review and protect quality credit from becoming problem loans and also preventing substandard debts. Upon finding signs of problems, the Group would promptly collaborate with relevant business groups to find proper solution. On task development, the Group joined hands with the Human Resources & Corporate Governance Group in organizing regular training and workshops for its staff members and those of related business groups to enhance their competence of credit extension for higher standard and efficiency. Qualified lecturers from within and outside the Bank including experienced clients or experts in diverse industries were invited to transfer their knowledge and experience to the staff thus enabling the Group’s operating performance in 2009 to achieve the set targets. For 2010, the Group plans to concentrate on boosting quality and speed of credit scrutiny task to obtain quality assets and achieve the goals of credit expansion through close cooperation with relevant business group in compiling information on business and credit models of competent industries from the

48

prior year while updating data in all models. Moreover, the Group will enhance its work process for higher standard. Issues and scope of credit scrutiny will be clearly and completely defined while regular and continuous emphasis is placed on human resources development within the Group for higher competency. All these will bring about their expertise until they are capable of helping to enhance staff members of other business group so as to jointly create quality credit as a key foundation for the Bank’s sustainable growth. Credit Restructuring Group manages NPLs of business centers and corporate banking group rectifies NPLs to performing loans (PLs) to reduce costs of loan loss provisioning and enable debtors to carry on normal business operation. In 2009, the Credit Restructuring Group implemented several projects in support of the Bank’s goals of NPL reduction, classified loan restructuring expedition and increase of bad debt recovery. Particular attention was on credit restructuring information center project with objective to enhance skills, expertise and transfer of credit restructuring knowledge to the Group staff member so that they would be able to apply such knowledge to their own task as well as solving the clients’ problems. This resulted in more efficient and effective credit restructuring. The Group also supported knowledge transfer and dissemination of case studies on credit restructuring to interested people within and outside the Bank. During 2009, the Group’s key performances in such three aspects were beyond the targets and this is a part contributing to the Bank’s retention of profitability. For 2010 where Thai economy show signs of recovery along with improving world economy,


the Credit Restructuring Group has adjusted the targets for NPL reduction, debt restructuring and bad debt recovery expedition higher than in 2009 through formulation of backup strategic plans encompassing work process, staff and IT to obtain satisfactory performance as targeted. Asset & Legal Management Group is charged with generating income from NPA sales as well as cost management and risk management. The Group manages all NPAs to be ready for sale so as to reduce burdens of NPA holding and monitors loan collection expedition to prevent occurrence of NPLs. Apart from this, the Group is responsible for handling legal matters including legal proceeding, execution, debt collection expedition in parallel with credit restructuring and acting as advocate in various cases for the Bank and staff members as well as taking legal action with persons committing fraud so that the Bank will be indemnified for loan repayment and losses incurred. During 2009, the Group conducted aggressive NPA sale through different channels such as staff members, sale agents, booth setup in NPA Grand Sale organized by the Bank and participation in NPA fairs with respective institutions throughout the year as well as selling NPAs to the Asset Management Corporation. On sales promotion, the Group organized on-going NPA sale activities such as media publicity, sale announcement and special promotion to urge buying decisions. The Group also made arrangement for clearing the NPAs from any encroachers and property repairs to be ready for sale. Regarding loan collection expedition, the Group acted as a hub for collection expedition of consumer loans and business center loans as authorized by the Banks through Loan Collection

system to reduce overdue debt volume. On legal side, the Group handled legal proceedings, execution and loan collection expedition simultaneously with credit restructuring negotiation to encourage debtors to negotiate and repay debts thus resulting in improved overall asset quality. Furthermore, the Group expedited legal actions taken with fraud committing persons and legal execution of cases helping the Bank to get faster loan repayment. Also in 2009, the Group implemented respective projects to achieve its operational targets such as NPA Online information system development between Head Office and branches, NPA sale promotion with special interest rates, training programs to boost NPA, selling skills for employees nationwide and SMS message sending to debtors for loan collection expedition. The Group’s targets for 2010 is to speed up proceeds from NPA sales through formulation of aggressive on-going NPA marketing and sales plan such as classifying asset types to better suit each client group and opening up new distribution channels including direct sale of NPAs nationwide and outsourcing sales agents. Moreover, the Group draws up a support plan through in-depth NPA sale for Bank employees nationwide and service quality assurance to add speed and readiness to compete. KTB NPA Champion Project will be implemented both for employees and business units as moral support and reward those with highest NPA sale proceeds. Another key project for 2010 is NPA sale remuneration payment to Bank staff and outside individuals as sales stimulus. Such projects will contribute to the concept of “Convenience & Care” that the Bank intends to offer to the stakeholders in support of the Group to attain the targets set.

Annual Report 2009 Krung Thai Bank Pcl.

49


Human Resources & Corporate Governance Group manages plans and develops the Bank’s human resources for greater knowledge and competence of their responsible task and readiness for competition while promoting the staff’s awareness of and adherence to good corporate governance principles as guidelines for performing their job. The Group oversees and promotes employees’ disciplines and work ethics so that they can enjoy high morale and strong physical and mental health as well as good welfare to live in dignity. All employees are encouraged to have affection and pride for the organization able to drive the Bank forward to be the clients’ selected bank that yields good returns and gains recognition from general public. The Group plays crucial role in restructuring the organization for better management through functions promotion and development and quality assurance for all business units to boost operational efficiency in line with the Bank’s business strategy. Moreover, the Group oversees promotion of intellectual capital building and respective activities showing corporate social responsibility.

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During 2009, the Human Resources and Corporate Governance Group carried out crucial operation of organization restructuring and review of missions of various business units to enable them to appropriately meet the Bank’s targets. The Group organized human resources training and development in respective courses continuously for professionalism in customer centric servicing of the same unified standard as well as promotion and assessment of service quality assurance of branches nationwide to be up to the assured standards. Furthermore, the Group supplemented the tasks with competent teams of young generation while promoting self-development of employees at all levels through self-learning process together with leadership development to serve as role model of change manager. Also included were development of staff members within business unit under the Bank’s Learning Organization policy through different processes such as job coaching, on-the-job training and mentoring. The overall performance of the Group in 2009 met the targets with full cooperation and support from all concerned: the Board of Directors, top executives, business unit chiefs, staff members and Krung Thai Bank State Enterprise Union. For 2010, the Group plans to implement the staff operation competency enhancement project and staff assessment approach to be put into practice for efficient human resources management in line with the enterprise strategy. To support the vision of being the Convenience Bank, the Group has initiated “Wow! KTB GREAT” project as campaign for raising awareness of being Convenience People in all employees with diverse activities and communications through the acronym “GREAT” standing for Good service (speedy, caring, smiling),


Relationship (friendly & accountable), Expert (skilled, modern, up-to-date), Attitude (positive attitude toward task and servicing) and Teamwork (teaming up in mutual support). Internal Audit Group operates independently and reports directly to the Audit Committee. The group provides recommendations and advisory service, assesses and examines operation processes to ensure with independent, fairness as well as create value added and enhance the operation to meet the Bank’s objectives. The responsibility scopes in review operating process, assess policy adequacy, risk management operational regulation, internal control and supervision of the Bank to ensure that the operating performance meets the set objectives efficiently, effectively and economically in compliance with the principles of good corporate governance so as to boost value added, reduce loss or fraud and errors. In 2009, the Internal Audit Group focused on enhancement of the audit process to cover more of the key risks with greater integration of job performance for better coordination and cooperation with respective business units within and outside the Bank. The Group developed its staff members to have relevant knowledge, specialization, skills, techniques and professional competence in support of their job performance to achieve the objectives continuously and up to internal audit profession standards. The Group’s overall performance in 2009 attained the target set. For 2010, the Group plans to support the Bank’s key strategy of becoming an “IA+” for sustainable growth. The on-going operation plan of IA+ refers to operational enhancement in three perspectives namely Process of internal audit

standard enhancement, People or personnel management and development of work format to be more integrated with focus on Cooperation through teamwork. At the same time, the Group will closely coordinate with other business units within and outside the Bank for greater operational efficiency. Risk Management & Compliance Group is responsible for formulating policies and strategies on management of risk relating to the Bank’s business operation including enterprise risk, credit risk, market risk, and operational risk. Besides, the Group supervises the Bank’s operation to be in compliance with applicable laws, rules and regulations, requirements and guidelines prescribed by the regulators namely the Bank of Thailand (BOT), the Office of Securities and Exchange Commission (SEC) and the State Enterprise Policy Office. During 2009, the Risk Management and Compliance Group enhanced the risk management policy and process for greater efficiency. The Group set up working group to enhance the risk management process and tools along the risk management roadmap of the Bank and of the State Enterprise Policy Office. Apart from this, the Group formulated the capital funds policy to be under the Basel II requirements including the Internal Capital Adequacy Assessment Process (ICAAP) and disclosure of information on maintenance of capital funds to risk weighted assets through information disclosure on the Bank’s website. The Group also formulated policy and guidance on risk management of the financial business group and conducted assessment of such risk management under the Bank policy and BOT requirements. On credit risk, the Group introduced the Loan Origination and Annual Report 2009 Krung Thai Bank Pcl.

51


Credit Scoring systems in supplement to retail clients credit analysis and approval, conducted stress testing to accommodate the implementation of ICAAP and monitored and reported risk management results for better control under the Bank’s work plan. On market risk, the Group reviewed market risk limit structure of transactions in trading book to be in line with current structure and more flexible. Moreover, the Group introduced the Delta-Plus Method as permitted by the BOT for calculation of capital funds to cater for market risk using standardized approach for options transactions enabling the Bank to handle short/write FX-option transactions resulting in higher non-interest income for the Bank. On operational risk, the Group monitored the newly launched products to avert risk that would stem from transactions handling and kept track of losses that might arise from use of the Bank’s services due to computer system disruption, faulty operation or fraud committed by Bank staff and customers to be at acceptable levels. Concerning compliance tasks, the Group strictly operated in accordance with the amended procedures or upon recommendations by the regulators such as disclosure of key information in the annual report, promotion of organization with good corporate governance and social responsibility, follow-up of progress on requirements governing the Independent Directors Committee and the Audit Committee under the Securities and Exchange Act (No.4) B.E.2551 (2008) and setting of criteria for giving consent to the appointments of the President, person with management authority or advisor of financial institution as well as structure and qualifications of the committee and subcommittee under BOT procedures. All these aim for boosting the competence of the enterprise and promoting

52

value added in the business as well as enabling the Bank to have a steady and sustainable growth. For 2010, the Group sets the target to further enhance the risk management process for higher efficiency through establishment of various projects to support the front office transaction handling to have efficient risk management that is in compliance with the rules, regulations and requirements of the regulators. Among these projects such as Customer Credit Exposure Monitoring, and enhance risk assessment process of the Bank’s new products. The other plan is to link risk of various types together in an integrated manner for better management of capital funds to be at appropriate levels under the requirements of the Bank of Thailand while getting ready to report the matter to BOT as scheduled in the first quarter of 2011.


Income Structure (Consolidated)

Income Type

Interest and Dividend Income Loans Interbank and Money Market Items Investments Total Interest and Dividend Income Non-Interest Income Gain (Loss) from Investments Share of Gain (Loss) from Investments on Equity Method Fees and Service Income Acceptances, Avals and Guarantees Others Gain (Loss) on Exchanges Reversal of Loss from Impairment of Properties Foreclosed Other Income Total Non-Interest Income Total Income

Dec. 31, 2009 Income % (Mn. Baht)

Dec. 31, 2008 Income % (Mn. Baht)

Dec. 31, 2007 Income % (Mn. Baht)

50,673 3,926 3,384 57,983

70.61 5.47 4.71 80.79

56,520 4,139 4,790 65,449

73.98 5.42 6.27 85.67

54,052 6,197 5,928 66,177

70.01 8.03 7.68 85.72

593

0.83

(959)

(1.25)

1,180

1.53

970

1.35

726

0.95

453

0.59

1,001 9,367 665

1.39 13.05 0.93

1,112 6,822 1,152

1.45 8.93 1.51

1,129 6,003 672

1.46 7.77 0.87

- 1,189 13,785 71,768

- 1.66 19.21 100.00

- 2,092 10,945 76,394

- 2.74 14.33 100.00

265 1,326 11,028 77,205

0.34 1.72 14.28 100.00

Consolidated Operation Policy Overview of Subsidiaries’ Operation

To enhance the efficiency of the core business and boost the return channels, the Bank invested in the following subsidiaries and associated companies: Subsidiaries Group refers to the group of companies in which the Bank holds 100 percent shares. These companies support the Bank’s business and are

vital as business units of the Bank. They render services to the Bank and the financial business group or act as the Bank’s channels in conducting full-ranging financial services. The Bank thus oversees that the operation of subsidiaries be in line with its policies and strategic plans. This group comprises: Annual Report 2009 Krung Thai Bank Pcl.

53


1) Krung Thai Asset Management Pcl. which conducts securities business relating to management of funds and business with license from the Office of Securities and Exchange Commission. 2) KTB Leasing Co., Ltd. conducts hire purchasing, hire purchasing for leasing of all types of movable assets, consumer goods hire purchasing and factoring. 3) Krung Thai Computer Services Co., Ltd. provides information technology services and advice on development and enhancement of computer system mainly to working units within the Bank and in the financial business group. 4) Krung Thai Legal Services Co., Ltd. provides legal services to the Bank and its financial business group. 5) Krung Thai General Business Services Co., Ltd. renders general business services to the Bank and its financial business group in the areas of premises management, transportation of assets, financial and non-financial documents, security service, printing and collating and delivery of cash and documents to other financial institutions as permitted by the Bank of Thailand. 6) KTB Advisory Co., Ltd. provides financial advisory services to customers in the public and private sectors as well as business clients of the Bank and subsidiaries. 7) Krung Thai Property Development Co., Ltd. a real estate developer but currently is in the process of liquidation. Associated Group refers to group of companies in which the Bank co-invested 35 to 50 percent with the business alliances for strategic benefits and business synergy especially in the development of financial products that the Bank does not provide. This group comprises:

54

1) Krungthai Card Pcl. renders credit card and other plastic cards business as well as grants personal and retail loans. 2) Krungthai-AXA Life Insurance Co., Ltd. conducts life insurance business through co-investment with the AXA Group (France), one of the world’s leading insurance companies. 3) Krungthai Panich Insurance Co., Ltd. conducts all types of non-life insurance business. 4) Krung Thai IBJ Leasing Co., Ltd. a joint venture between the Bank and the IBJ Leasing Group (Japan) conducts hire-purchase leasing of machinery and equipment of all types, hire purchase movable property and factoring business. 5) KT ZMICO Securities Co., Ltd. a joint venture between the Bank and the ZMICO Group conducts securities trading as a brokerage, securities underwriting, financial advisory service and businesses as permitted by the Office of Securities and Exchange Commission. 6) Krung Thai Charoensri Co., Ltd. engaged in cars and motorcycles hire-purchase in the Upper Northeastern area and currently is under liquidation process. Other Group refers to group of companies in which the Bank holds 10 percent or more shares excluding subsidiaries and associated companies.


Income Structure of the Bank and Subsidiaries

Income Type

Interest and Dividend Income Krung Thai Bank Pcl. Krung Thai Computer Service Co., Ltd. Krung Thai Legal Services Co.,Ltd. Krung Thai General Business Services Co., Ltd. Krung Thai Property Development Co., Ltd. KTB Leasing Co., Ltd. Krung Thai Asset Management Pcl. KTB Advisory Co., Ltd.* Total Interest and Dividend Income Non-Interest Income Krung Thai Bank Pcl. Krung Thai Computer Services Co., Ltd. Krung Thai Legal Services Co.,Ltd. Krung Thai General Business Services Co., Ltd. Krung Thai Property Development Co., Ltd. KTB Leasing Co., Ltd. Krung Thai Asset Management Pcl. KTB Advisory Co., Ltd.* Total Non-Interest Income Total Income Krung Thai Bank Pcl. Krung Thai Computer Services Co., Ltd. Krung Thai Legal Services Co.,Ltd. Krung Thai General Business Services Co., Ltd. Krung Thai Property Development Co., Ltd. KTB Leasing Co., Ltd. Krung Thai Asset Management Pcl. KTB Advisory Co., Ltd.* Grand Total

Dec. 31, 2009 Income % (Mn. Baht)

Dec. 31, 2008 Income % (Mn. Baht)

Dec. 31, 2007 Income % (Mn. Baht)

56,967 - - - - 1,015 1 - 57,983

79.38 - - - - 1.41 0.00 - 80.79

64,601 - - - - 844 4 - 65,449

84.56 - - - - 1.10 0.01 - 85.67

65,873 - - - - 298 6 - 66,177

85.32 - - - - 0.39 0.01 - 85.72

12,926 (17) 3 79 98 214 473 9 13,785

18.01 (0.02) 0.00 0.11 0.14 0.30 0.66 0.01 19.21

10,189 125 19 74 85 138 315 - 10,945

13.34 0.16 0.03 0.10 0.11 0.18 0.41 - 14.33

10,399 90 27 53 11 84 364 - 11,028

13.47 0.12 0.03 0.07 0.01 0.11 0.47 - 14.28

69,893 (17) 3 79 98 1,229 474 9 71,768

97.39 (0.02) 0.00 0.11 0.14 1.71 0.66 0.01 100.00

74,790 125 19 74 85 982 319 - 76,394

97.90 0.16 0.03 0.10 0.11 1.28 0.42 - 100.00

76,272 90 27 53 11 382 370 - 77,205

98.79 0.12 0.03 0.07 0.01 0.50 0.48 - 100.00

Note: * Established on April 24, 2009 Annual Report 2009 Krung Thai Bank Pcl.

55


Thailand. Policy on doing transactions and risk management within the financial business group is To be in compliance with the Bank of Thailand’s prudently formulated so as to enable business operation consolidated supervision requirement and the Financial to proceed appropriately and efficiently with proper Institutions Business Act B.E. 2551 (2008), a financial supervision, standards and high stability to business group has been established with Krung Thai accommodate the rising risk. Furthermore, the Bank delegates its executives to Bank as the parent company with following investment serve as directors on the boards of the companies in the and management policy: Investment Policy It is the Bank’s policy to financial business group to closely supervise the invest in businesses permitted by regulators and in business. The Bank requires subsidiaries to prepare addition supports its core business in achieving the business plan and annual budget to be submitted to the target of being the Convenience Bank. Investments Bank for prior approval so that their policies will be in line with the Bank’s policy and strategic plan. The Bank include: 1) Financial Business The Bank invested in closely oversees uses of capital funds of financial financial business so as to have a full line of services. business group, analyzing and reporting to the Board of They include eight companies namely Krung Thai Asset Directors and regulators concerned. Management Pcl., Krungthai Card Pcl., Krung Thai IBJ Leasing Co., Ltd., KTB Leasing Co., Ltd., Krungthai Krung Thai Bank in 2009 continuously maintains AXA Life Insurance Co., Ltd., Krungthai Panich Insurance Co., Ltd., KT ZMICO Securities Co., Ltd. and its competitiveness despite confrontation with difficulties amidst serious economic recession. The Bank still KTB Advisory Co., Ltd. 2) Support Business Investment in this support enjoyed the second rank in the commercial banking group is for the purpose of supporting, providing industry in terms of assets, loans and deposits with convenience and boosting efficiency in the Bank’s increasing market share. In this year, the Bank was able operations such as legal work, information technology to turn crisis to opportunity through full support of the and general services (KTB Training Center government economic stimulus measures under prudent management, vehicle and transportation, security risk management. This not only helped to revive the service, document printing and collating). The Bank has Thai economy from recession, new businesses were invested in three companies namely Krung Thai Legal also acquired both in the public and private sectors. The Services Co., Ltd., Krung Thai Computer Services Co., Bank also reorganized its structure and revamped Ltd. and Krung Thai General Business Services Co., Ltd. working processes in all aspects for higher efficiency in Management Policy The Bank supervised preparation for aggressive competition to come. With the financial business group in line with the consolidated such determination combined with distinctive operating supervision requirement prescribed by the Bank of performance the Bank received recognition from local

Overview Business Operation under BOT Consolidated Supervision Guideline

Competitiveness of the Bank

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and international public, reflecting from the many prestigious awards received, such as the SOE Award for outstanding state enterprise, the Board of Directors of the Year Award and the Banker Awards 2009. In addition, the Bank was well prepared to cope with competition of all types. Details are given below: Service Quality of Excellence The Bank has retained its service standard under the Service Level Agreement (SLA) announced since 2008. Various campaigns were launched to speed up all its branches to uplift their service standard to excellence so customers will always remember in their minds. Products and Services of Exact Needs In 2009, the Bank took the lead in successively launching financial products that met the customers’ needs. On deposit side the Bank issued 3-month term deposit at 4 percent, the highest rate among commercial banks as an interesting alternative for general public savings. In addition, the Bank advanced further to render personal financial consulting service through Krung Thai Wealth Management to help customers build their financial independence and stability as recommending sale of securities and debt instruments. On loan side, the Bank issued “Krung Thai SME True Friend Solving Crisis” to boost SMEs liquidity in the form of 5 credit packages with special conditions at low interest rate. Moreover, In 2009 the Bank stressed its being the Convenience Bank aiming to give greater convenience to customers launching two new services namely KTB Online@Mobile enhancing from KTB Online via mobile phone. The other service was KTB e-Savings enabling clients with savings accounts to withdraw or do other transactions 24/7 with KTB Visa Debit card or ATM card and KTB Online password

without the need to carry passbook which is convenient in all nature. Accessible Service Channel to All Customer Groups In the year 2009, the Bank opened 52 new branches bringing the total no. of domestic branches to 884 branches at year-end. Of these, 187 branches provided 7-day services and located in all provinces nationwide. The Bank also installed 532 more ATMs totaling to 6,398 machines as at year-end 2009. All BTS sky-train and MRT subway stations are now installed with KTB ATMs. The Bank also added more “Convenience Counters” through its business alliances such as post office and Agricultural Co-ops to render services to people in remote areas. As at year-end 2009, there were 16 convenience counters. Large Government Customer Base With the long relationship and the attention given to customers of the governmental sector, the Bank had set up a business unit to take care of them specially. The Bank is quite successful in attracting them to use a wide range of services such as welfare loans, housing loans and multi-purpose consumer loans. Currently state and enterprise employees in over 140 agencies use such services. Quality Human Resources for Organization’s Success The Bank has continuously given priority to enhance the skills of staffs in various fields so that servicing will be efficient while creating customer satisfaction. At the same time, the Bank encourages its employees to be interested in self-development. As such the Bank has awarded presentation for outstanding performance both at unit and individual levels such as outstanding award for product, CG Award, Star of QA and Star of the Stars in QA project. Annual Report 2009 Krung Thai Bank Pcl.

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In this connection, the Bank’s Directors, the President and senior executives paid periodical visits to branches nationwide including those in the four southern border provinces boosting staff morale and ready to perform their jobs to the best of their ability. Strong Subsidiaries Covering Key Business Currently the Bank has 11 subsidiaries in the financial business group covering key businesses such as mutual fund, credit card, leasing, life and non-life insurance. All these companies have been capable of supplementing the Bank business; have strong financial standing and high competitiveness with top-rated market shares for instance Krungthai Card rated first in the credit card business. They also have received prestigious awards such as Krung Thai Asset Management received 3 Lipper Fund Awards 2009 for Best Debt Securities Management, Outstanding 3-year and 5-year Debt Securities Mutual Fund; KrungthaiAXA Life Insurance with first-rank in Management Development for 2007; Krungthai Panich Insurance receiving outstanding in management of non-life insurance for two consecutive years - second outstanding in 2008 and third outstanding in 2007. Efficient and Advanced Software Systems In 2009 the Bank enhanced original work systems and introduced new software for greater efficiency in performance. As an example is the GFMIS Auto system whereby the government budgetary funds transfer to government agencies was enhanced from manual to automatic for unified standard and in addition making it faster at a lower cost and reduces operational risk especially in managing the Bank volume of funds with greater efficiency. The Business & Credit Model is a newly developed system to boost efficiency and cut

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down procedural steps in analysis and approval of corporate and business center credits and the Meeting Place system to support product sale enabling interested party to ask Bank’s specialists for details and can also be used to facilitate teleconference and long distance training between branch staff and the Head Office helping to boost working efficiency and reducing travel expenses. Colorful Event Organizing The Bank and subsidiaries joined forces to organize sale promotion activities throughout the year including sale stimulating activities and sale promotions for customers’ businesses such as Krung Thai ATM Slip to win a car, deposit taking during major festivals such as on Chinese New Year, Valentine Day, KTB 43rd Birthday, KTB Fair 2009 and Customers Products Sale. For such purposes, the Bank allocated spaces free of charge in over 800 branches and regional offices for customers to sell their products. Such activity helped boost customers’ liquidity in time of recession and also stimulated local economy as well. Besides, the Bank took part in respective activities at national level, for instance Thai Effort for National Economic Recovery, the 9th Money Expo 2009, the 20th Home & Condo Fair and Bright Sky for Smiling Thais events. All these activities enabled the Bank and subsidiaries products to be well received and remembered with good feed back from customers and general public. Distinct Marketing Media During 2009, the Bank launched advertising film under the concept “Bright Side of Life” presented along with a beautiful melody and touching lyrics as moral support to customers and general public to strive through economic crisis. At the same time, the presentation also


services in the areas of deposits, credit, cash management and payment were launched under the mission of creating services of excellence and in line with the Bank’s vision of being the Convenience Bank. Details as follows: Deposit Products The Bank issued wide-ranging types of deposit to help customers during time of record low interest rates and simultaneously retaining its customer base from being pulled away by higher interest rate of government bonds and private sector debentures. Term deposits with special interest rates were launched during various festivities and Organization Restructuring occasions. Among them were Krung Thai Chinese New The Bank in 2009 slightly restructured its Year deposit, KTB and KTB-B/E Birthday deposit, organization for greater operational efficiency. Two Generous Krung Thai term deposit, term deposits for departments under the Credit Restructuring Sector 2 those registered at Thailand United to recover Economy were added -- Credit Restructuring Department 7 and Fair and KTB Fair 2009 term deposit, 18-month and Credit Restructuring Department 8. Credit Monitoring 48-month Krung Thai deposits for customers missing Department was integrated into Customer Information opportunities to subscribe to the savings bonds under Department and renamed as Credit Monitoring & Stimulus Package 2 Scheme. Apart from all these, Customer Information Department under the Financial deposit packages with extra benefits were offered to Planning Sector, Financial Management Group. customers such as KTB 4+ and KTB 2 Pay offering high Working units were renamed to match their job function interest rate but requiring depositors to buy life namely Credit Monitoring & Asset Disposition Sector insurance policy from its subsidiary and KTB B/E were renamed as Asset Disposition Sector and Together offering sale of bill of exchange together with Collateral System Department renamed as the retirement mutual fund (RMF) or long term equity fund Electronic Document Operation Department. Also (LTF). Also in 2009, the Bank added convenience and renamed and adjusted job functions of the Electronic ease to customers through KTB e-Savings service Banking Products & Card Management Department as which facilitates savings deposit and other transactions Electronic Banking Products Department and Cash without the use of passbook. Management Products Department to Cash and Card Loan Products The Bank launched different Management Products Department. types of loans to support SMEs that were impacted by New Products & Services the economic downturn such as KTB SMEs Exporter to In 2009, several new distinctive products and help ease the export crisis., KTB SMEs Supply Chain to communicated to customers to have confidence that in time of trouble and desperation, Krung Thai Bank is the bright side or the better side of life ready to lend a helping hand and always stand by their side. Following that, the Bank came out with the ad film “Thai Khemkhaeng Construction Loan Project” to accommodate the government’s Stimulus Package 2 and reaffirm that the Bank is ready to stand by the customers and also all set for fully driving the Thai economy.

Key Changes in 2009

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support private and government trading partners., SMEs-Tax Payment to facilitate SME business income tax payment., Portfolio Guarantee Scheme to guarantee SMEs by the Small Business Credit Guarantee Corporation (SBCG). Other loan products issued were: Loan for university building construction, Loan for energy saving and environment conservation, Loan for Local Administration Council, Community Bank Loan. Moreover, the Bank supported the government’s economic stimulus measures through fast track channel for the Thai Khemkhaeng Scheme loan approval (TKK 2555 Pre-Financing) and the issuance of instant letter of guarantee (L/G-Bid TKK 2555) for contractors bidding in construction project under the Stimulus Package 2 (2010 – 2012). Cash Management and Processing Bank The Bank continues to develop collection, payment, funds transfer and other financial services to meet customer needs with regard to convenience, speed, modernity and safety. Among the services provided were KTB Wealth Management giving advice on personal financial planning, e-Money Card prepaid card without the need of account opening and is able to buy goods and services from shops bearing VISA sign plus cash withdrawal from ATM. More services included KTB Online@Mobile allowing KTB Online customers to assess the service through mobile phone of all system using the same user ID and password as KTB Online’s.

Progress of Key Projects

The Bank in 2009 moved forward to develop its key projects in support of the operation plan for target achievements. Development of new projects and enhancement of existing ones for higher efficiency are

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as follows: KTB Strong Branding To create KTB brand recognition among target clients a variety of activities were organized throughout the year including versatile marketing mixed media including the press, radio spot and advertising film. This year the Bank launched new ad movies entitled “Krung Thai - Bright Side of Life” and “Thai Khemkhaeng Construction Loan Project”. Additionally the Bank held a national seminar on “Thai Future under Strong Thai Economy” to build recognition of the Bank’s vision as “The Convenience Bank” in which customers and general public can be confident that the Bank would stand by their side even in economic crisis. Cash Management with Public Organizations In conjunction with the government agencies, serviceproviding facilities have been further developed. The main purpose was to supplement operational efficiency of such agencies and their servicing to the general public, such as cash management service system, payment of utilities, budget funds transfer, assets auction, purchase of goods in auction, letter of guarantee issuance, tax payment and return and cargo guarantee, cash delivery to treasury and deposit reporting for management. Centralized Operation Credit operation, legal preparation and credit line setting for business center, corporate and retail loans have been centralized for higher efficiency. Currently is in the process of organizational restructuring and system development to accommodate this project. CRM System To enable Branch staff nationwide to recommend all goods and services offered by the Bank and its four subsidiaries namely Krung Thai Asset


Management Pcl., Krungthai-AXA life Insurance Co., Ltd., Dhipaya Insurance Pcl. And Krungthai Panich Insurance Co., Ltd instantly and efficiently CRM system (Trigger by Teller) was used. This would help expand cross selling, major source of non-interest income.

be implemented, extended and linked with continuous monitoring and assessment. Importantly, the Bank’s directors, executives and staffs at all levels including over 30 subsidiaries and business alliances that carried out CSR activities with the Bank fully joined forces together to drive forward the social and environmental activities in all dimensions namely education, society The Bank in 2009 continued to pursue the policy and environment, art and culture and sports. The on creating customer satisfaction through its on-going Bank’s CSR activities are summarized as follows: research and development of financial products and Education The Bank continues to give services such as KTB Online@Mobile offering banking importance to education since it is a crucial foundation services on mobile phone through website, KTB for national development and a part of its mission to e-Savings or savings account with no passbook and build the intellectual capital that is inexhaustible and can KTB Smart Open Account a new innovation using only be expanded endlessly. In 2009, the Bank spent over ID card. Moreover, the Bank conducted exit poll to Baht 25 million in building intellectual capital for the assess servicing quality which helped to remedy society through 19 educational projects or about half of customer needs more speedily. Other research work the Bank’s total CSR projects. One educational project included analysis of consumer behavior to help in implemented was School Development Pilot Project customer targeting and setting marketing strategy under HRH Princess Maha Chakri Sirindhorn Royal appropriately for each customer group. The Bank was Project. Other educational projects included Krung Thai thus able to meet the customer needs in accordance Dream School, Krung Thai University Graduates, Good with Customer Centric principle and in line with State Books for Youth, Book Corner, Essay Writing Contest, Enterprise Policy Office’s assessment. Research and Young writers Training, School Directors Seminar under development expenses in 2009 totaled about Baht Krung Thai Dream School Project, ICT Teaching Aids 21.5 million. Contest, Music for Relationship by KTB Dream School, School Bank, KTB Young Reporters, Young Journalists for Child Rights, Children’s Savings Promotion, Krung During 2009, the Bank’s social and environmental Thai Young Enterprise Awards, Krung Thai Business activities proceeded with good progress and satisfaction Ethics Initiative, KTB Lecture Series, Creative Vocational partly because of the set up of Intellectual Capital & Education towards Business 2009 and KTB Read & Social Responsibility Department in the Human Learn Club. Resources & Corporate Governance Group to take care Society and Environment The Bank has these activities directly. This has enabled the corporate continuously organized activities to create awareness of social responsibility (CSR) policy and strategic plan to conservation of nature, environment and energy.

Research and Development Policy

Social and Environmental Projects

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Among such activities were Krung Thai Care for Environment, Krung Thai Green Heart, Krung Thai Growing Green, Eco School, Shred 2 Share: Secure Info for Environment, Mangrove Reforestation, Coral Planting, Banana Tree Planting for Watershed, Check Down and Artificial Spring Construction, Agriculture Support for School Lunch, CSR Kids Camp, and Brotherhood Painting. Art and Culture The Bank urges its staff members and general public to appreciate Thai art, culture and good traditions through on-going projects in this area. Among them were Krung Thai Art and Culture providing financial support for the National Art Exhibition 2009 for seven consecutive year and Krung Thai Art Gallery where one section of Yawaraj Branch has been allocated for this purpose and the general public are invited to visit the gallery and participate in art and culture activities during respective festivals throughout the year. Another on-going project was Water-Color Painting skill promotion for Bank employees and families, students under Krung Thai Dream School Project and those in schools located near Krung Thai Training Center Khao Yai. Sports The Bank has supported several types of sports at youth and national levels so as to promote the youngsters to utilize their leisure properly while boosting competence of the Thai national athletes. Such assistance was given through the Youth Footballers Project, the Amateur Boxing Association of Thailand under the Royal Patronage Support Project and Krung Thai Bank Championships to support the 5th Thailand Amateur Boxing Championships for male and female youths in 2009. Apart from the above CSR activities implemented

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under the Bank policy and plan encompassing hundreds of thousands of direct and indirect beneficiaries, there are still other CSR activities organized through initiative and voluntary spirit of Bank employees in various business units and branches nationwide. They included knowledge enhancement training, donation of blood, cash, books and scholarships; reforestation and environment conservation; religion, culture and tradition promotion, national unity activities, Thai unity & strengths activities, Thai monarchy loyalty activities and sports & health promotion for the general public. Such programs enabled the Bank to further build alliance network in wider range as intended. Besides, the Bank continued to disseminate and share its experience in conducting CSR activities with other agencies or organizations so as to broaden the happy society with no limit. All these contributed to the Bank’s distinctive image in the eyes of the general public reflecting from the Outstanding Social and Environmental Responsibility Award 2009 presented to the Bank for the second year consecutively by the State Enterprise Policy Office, Ministry of Finance. Additionally, results of the survey on satisfaction with the Bank’s CSR activities in 2009 showed higher satisfaction than in 2008. Such survey was conducted by collecting opinions from the Bank customers, other banks customers, investors, mass media, students and general public (details of CSR operation are elaborated in the Development for Sustainability Report 2009 or at http://www.ktb.co.th. Select menu: CSER).

Awards of Pride in 2009

With outstanding banking management through good governance and continuous adherence to honesty, integrity, transparency and social and environmental


responsibility especially active participation in public and quality action plan such as the Service Level sector in recovering the Thai economy, the Bank was Agreement, Smart Open Account using only ID card, presented with several awards of honor from various No-Passbook Transactions, and service points for the domestic and external institutions in 2009. Among the disabled and elderly. Services are provided to clients with due consideration of convenience, speed and key awards are: The Banker Awards 2009 The Banker Magazine equitability focusing on creating customer satisfaction. and the UK Trade & Investment will award banks Problems and complaints were treated systematically worldwide that have good operating performance and via appropriate channels and regular satisfaction management including contribution in developing the surveys were carried out. economies of their countries. Krung Thai Bank is the Board of the Year Awards 2008/09 in only bank in Thailand that was selected to be “Bank of the category “Board of the Year for Exemplary the Year in Thailand 2009” due to good operating Practices”. The Subcommittee on Education and Public results even in time of economic downturn. Moreover, Relations on Corporate Governance in Thailand, the Thai the Bank introduced state-of-the-art technology to Institute of Directors Association, the Board of Trade of enhance its service quality in providing convenience to Thailand, the Federation of Thai Industries, the Thai customers of all segments while taking part in reviving Bankers’ Association, the Thai Listed Companies and stimulating the nation’s economy through credit Association, the Thai Capital Market Business Council facilities under the Stimulus Package 2 to supplement and the Stock Exchange of Thailand set up to support liquidity to SMEs and retail investors. and encourage the Board of Directors of listed companies SOE Award 2009 The State Enterprise in understanding their own role and responsibility under Policy Office, Ministry of Finance proclaims this honor to the principles of good corporate governance taking into state enterprises with distinctive operating performance. consideration shareholders’ interest with transparency Krung Thai Bank received three awards “Distinctive and fair treatment. The Bank was among the five companies State Enterprise Board of Directors” from outstanding being presented with such award for two consecutive years. role of the Board of Directors in policy formulation and SET Awards 2009 in the category “Top efficient management together with active participation Corporate Governance Report Awards” The Stock in various activities and in giving useful recommendations Exchange of Thailand in conjunction with the Money & to other state enterprises. The second award was Banking Magazine grants this award to honor and praise “Outstanding Social and Environmental Responsibility” listed companies, securities companies and asset from on-going implementation on corporate social and management companies with outstanding performance environmental responsibility (CSR) with systematic in various fields. The Bank was one of the 11 companies monitoring and assessment as well as awareness receiving Top Corporate Governance Report Awards for building and support to staffs at all levels. The final distinction in good corporate governance compliance award was “Distinctive Services” from pursuing policies reporting and listed company compliance reporting. Annual Report 2009 Krung Thai Bank Pcl.

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Excellent assessment of Ordinary General Meeting of Shareholders deserving role model The Office of Securities and Exchange Commission in conjunction with the Thai Investors Association and the Thai Listed Companies Association presented this award. The Bank was one of the 41 listed companies selected from a total of 497 receiving full score of 100. This was the third consecutive years. Corporate Governance Report of Thai Listed Companies 2009 Award 5-star from the Thai Institute of Directors Association reflecting the Bank’s high standards of good corporate governance. Outstanding Financial Institution for Management Notes Award 2008 The Bank of Thailand gave this award for the first time in assessing cash management quality of financial institutions. Relevant officers and Suan Dusit Poll were designated to conduct research and assess the quality in real scenario together with surveying public satisfaction from using cash management. Apart from these, during 2009 the Bank’s senior executives received outstanding awards of honor from their outstanding performance, namely

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Mr. Apisak Tantivorawong, President was selected by the general public through voting on Thansettakij Newspaper website to be the “Businessman with Outstanding Performance for 2009”. He is an executive who participates in reviving and stimulating the national economy. At the same time, he enhances the Bank’s service quality to the customers’ satisfaction and manages the business successfully to achieve good performance amidst the economic downturn in 2009. Ms. Sumana Vonggapan, Senior Executive Vice President-Managing Director, Human Resources & Corporate Governance Group received “Thailand TOP 100 HR Award”, 2009 in HR Professional from the Human Resources Institute, Thammasat University and “the PMAT HR Awards 2009” for Outstanding HR Executive from the Personnel Management Association of Thailand. She has been an HR executive with more than 20 years of experience in personnel management and outstanding performance in HR well recognized by organizations, social groups and the nation. Moreover, she had performed the task under professional code of conduct prescribed by the Association and contributed assistance and valuable support to those in the same profession thus deserving an honor as Thailand’s HR role model.


Direction and Business Strategy within 3 – 5 Years

To strengthen the Bank for long-term sustainable growth and prepare for the increasingly severe competition in the future, a strategic plan for the coming 3 – 5 years under the vision of being “The Convenience Bank” in four dimensions below: Convenience Bank Define strategy for retail customers, corporate clients, business center customers and those of government agencies and state enterprises giving them the experience in feeling and remembrance of the convenience, ease and prompt services provided. The Bank is ready to enhance, alter and develop distribution channels as well as products innovation and technology so as to boost business volume and earnings while increasing its competitiveness to a higher level. Processing Bank Focus on being market leader as Processing Bank through extending services to clients in public and private sectors that use cash management service with the Bank. They were urged to use more varieties of financial services and expanded customer base further to serve larger number of potential clients.

Bank for Government Support government policies and operation through loans provided to the village funds, co-ops and community financial organizations. The Bank continues to extend credit to accommodate the Stimulus Package 2 for 2010 – 2012 and link its Core Banking System with specific financial institutions for more convenience in serving the clients. Sustainable Growth The Bank aims at strengthening its financial stability and creating good returns to the shareholders with target-setting for continuous and appropriate growth of loans and deposits. In addition getting ready to join forces with subsidiaries and business alliances to boost market share of non-interest income. At the same time, the Bank will expedite NPL reduction and focus on more aggressive NPA sale for sustainability in the long run. comprise the following: - KTB Strong Branding - Cash Management Expansion - Distribution Channels and Business Network Expansion and Enhancement - Centralized Back Office - Customer Relationship Management (CRM)

Key Projects in 2010

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Shareholding and Management Structures

1. Shareholding Structure Shareholders as at March 27, 2009 (share register closing date)

Shareholders

1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11)

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The Financial Institutions Development Fund Thai NVDR Co., Ltd.

Ordinary

Number of Shares Preferred Total

%

6,184,072,567 - 6,184,072,567 55.29 324,090,233 60 324,090,293 2.90 Mellon Bank, N.A. 277,769,610 - 277,769,610 2.48 Vayupaksa Mutual Fund 1 managed by MFC 253,616,858 2,726,095 256,342,953 2.29 Vayupaksa Mutual Fund 1 managed by KTAM 253,616,857 2,726,095 256,342,952 2.29 State Street Bank and Trust Company 222,872,359 - 222,872,359 1.99 State Street Bank and Trust Company for London 151,984,825 - 151,984,825 1.36 HSBC (Singapore) Nominees Pte. Ltd. 147,024,367 - 147,024,367 1.31 Government Savings Bank 88,145,858 - 88,145,858 0.79 Nortrust Nominees Ltd. 77,435,958 - 77,435,958 0.69 Other shareholders 3,199,119,508 47,750 3,199,167,258 28.61 Total 11,179,749,000 5,500,000 11,185,249,000 100.00


Proportion of Thai Nationality and Non-Thai Nationality Shareholders

Shareholders

Thai Nationality Non-Thai Nationality Total

Entity Individual Total Number Number of Shares Number Number of Shares Number Number of Shares

356 173 529

%

7,626,698,703 43,395 1,769,837,389 43,751 9,396,536,092 84.01 1,782,394,613 214 6,318,295 387 1,788,712,908 15.99 9,409,093,316 43,609 1,776,155,684 44,138 11,185,249,000 100.00

Notes: 1. Information from Thailand Securities Depository Co., Ltd. 2. Investors can look up the latest shareholding structure at www.ktb.co.th

2. Management Structure

the meeting. (3) Call an annual ordinary general meeting within four months from the closing of accounting period. Other general meetings may be called anytime as extra ordinary meeting when the Board deems appropriate or within one month from the date 2.1 Scope of Authority and Responsibility of shareholder’s written request. (4) Despite Board vacancy, the subsisting and Members of Each Committee directors can still perform the duty. However, if the 2.1.1 The Board of Directors The Board of Directors assumes full number of directors does not constitute a quorum, the authority in the management and oversees that the remaining directors can only call a general meeting to operation of commercial banking business complies elect new candidates to fill all the vacancies. (5) Comply with the Code of Best Practice with the objectives, the Bank’s Articles of Association and the resolutions of the shareholders meetings, all of Directors of Listed Companies. of which be under relevant laws and regulations. Authority The authority and responsibilities include: (1) Each director can cast one vote and the majority vote shall be taken as the resolution of Responsibilities (1) Oversee and manage the Bank’s the Board meeting. In case of equal votes, the business in accordance with the objectives, the Chairman of the Board shall have the second vote for Bank’s Articles of Association and the resolutions of a decision. (2) Any director who has his own interest in the shareholders meeting as well as supervising the the matter discussed in the Board meeting is Bank’s various operations. (2) Meet at least once a month and there prohibited from casting vote on such issue. In this must be at least half of the total directors attending. case, the Chairman may request such director to The majority vote shall be taken as the resolution of temporarily leave the meeting. The Bank complies with the corporate governance of financial institution notification of the Bank of Thailand and formulate the scope of authority and responsibility for Structure of the Board of Directors and relevant committees as follows:

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(3) All business activities of the Bank shall be under the authority of the Board of Directors. Either the President, or at least two other directors as delegated by the Board have the authority to sign and affix the Bank’s official seal on behalf of the Bank. (4) The Board of Directors has the authority to appoint the General Manager and staff members as well as agent of the Bank with the authority and duty as the Board deems appropriate. Remuneration, expenses and benefits as well as removal of such persons from office are also within the authority. (5) The Board of Directors can empower the General Manager to appoint and revoke the appointment of the staff members of the Bank. If the General Manager is also a director of the Board of Directors, he is named “President”. (6) The Board of Directors has the authority to invite any person, as it deems appropriate, to be an advisor assisting the Board on banking business as well as determining wages and remuneration for the advisor.

Scope of Authority As stipulated in the Bank’s Articles of Association and the Public Limited Company Act, B.E.2535 (1992), the Board of Directors can process the following issues only upon receiving approval from the Bank’s general meeting. (1) Approval of the balance sheets and the profit and loss statements. (2) Approval of the profit appropriation. (3) Election of new directors replacing those who completed their term of office or election of additional directors when there is an increase in the total number of directors. (4) Appointment of the Bank’s auditor and fixing their audit fee. (5) Increase of capital, reduction of capital and transfer of allowance for compensation of accumulated loss, dividend payment, public offering or allocation of capitalized shares and issuance of debentures. (6) Sale or transfer of the Bank’s entire business or some material parts, acquisition or acceptance of transfer of other business, amendment or termination of agreement relating to renting out partial or the entire Bank’s business.

Members of the Board of Directors as at January 8, 2010 1) Dr. Sathit Limpongpan Chairman 2) Dr. Chaiyawat Wibulswasdi Vice Chairman 3) Mr. Aswin Kongsiri Director 4) Mr. Santi Vilassakdanont Director and Independent Director 5) Mr. Pachara Yutidhammadamrong Director and Independent Director 6) Dr. Jamlong Atikul Director 7) Mr. Visut Montrivat Director and Chairman of the Independent Director Committee

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8) Mr. Dusit Nontanakorn 9) Mr. Supachai Jongsiri 10) Mr. Nontigorn Kanchanachitra 11) Mr. Apisak Tantivorawong 12) Ms. Patcharasiri Kiatkumjai 13) Mr. Suchart Dejittirut Details of Changes of Directorship 1) Dr. Sathit Limpongpan 2) Mr. Supachai Jongsiri 3) Dr. Pichit Likitkijsomboon 4) Mr. Nontigorn Kanchanachitra Changing after January 8, 2010 1) Mr. Pongtep Polanun

Director from Major Shareholders Mr. Aswin Kongsiri is the representative from the major shareholder group (FIDF). He is not eligible to sign on behalf of the Bank. President Authority and Responsibility The President is empowered to conduct business in accordance with the established policies and targets set by the Board of Directors and strictly manage operation according to plans or budget approved by the Board. The President shall perform his duties honestly and cautiously while safeguarding the interest of the Bank and the shareholders.

Director and Independent Director Director and Independent Director Director and Independent Director President Secretary Assistant Secretary Took Chairman position on July 2, 2009 to replace Mr. Suparut Kawatkul who resigned on May 22, 2009. Took Director position on July 6, 2009 to replace Mr. Suri Buakhom retiring at the age of 65 on July 5, 2009. Resigned on July 24, 2009 Took Director position on December 24, 2009 to replace Mr. Sima Simananta retiring at the age of 65 on December 23, 2009. Took position on February 4, 2010

Authorized Directors Mr. Apisak Tantivorawong are authorized to sign on behalf of the Bank solely or Mr. Chaiyawat Wibulswasdi jointly with Mr. Jamlong Atikul and affixed with the Bank’s official seal. 2.1.2 The Board of Executive Directors Authority and Responsibility The Board of Directors has empowered the Board of Executive Directors with the following duties: (1) Approve credit, debt restructuring and debt write-off within the authority. (2) Approve investment or sales of securities invested by the Bank, trading or renting out

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Banks’ property within the authority. (3) Approve the appointment of executives. (4) Approve the hiring of consultant and procurement in accordance with the procedures. (5) Scrutiny business plan, policy tasks and annual budget as well as monitoring significant assignments.

(6) Approve or acknowledge other businesses relating to management that deemed necessary, appropriate or urgent to resolve problems that may damage the Bank if unattended. Report such issue promptly to the Board of Directors. (7) Perform other task assigned by the Board of Directors.

The Board of Executive Directors as at January 8, 2010 1) Dr. Chaiyawat Wilbulswasdi Chairman 2) Mr. Aswin Kongsiri Director 3) Dr. Jamlong Atikul Director 4) Mr. Apisak Tantivorawong Director 5) Ms. Patcharasiri Kiatkumjai Secretary 6) Mr. Suchart Dejittirut Assistant Secretary 2.1.3 The Audit Committee Authority and Responsibility Comply with the Charter of the Audit Committee revised on June 2009 detail as follow: 1. Financial Reporting and Public Disclosure (1) Review the Bank’s financial reports to ensure their adequacy, accuracy and reliability in accordance with the generally accepted accounting principles. (2) Review with the Bank’s auditor key issues that may adversely affect the reliability of the financial reports such as: - Significant difficulties or conflicts encountered during the course of the audit. - Different facts and opinions between the auditor and the management. - Effectiveness of internal control.

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- Deficiencies or losses found in the current accounting period and the possibility to recur in the following periods. - The draft of the annual financial statements and notes to the financial statements. - The auditor’s report. (3) Review any related transactions or transactions that may cause conflict of interest so as to ensure accuracy, completeness and transparency of the Bank’s disclosure of information and accounting procedures. (4) Review the evidences in case of doubt about operation that may significantly affect the Bank’s business or conflict of interest that may have negative impact on the Bank’s operation. (5) See that the information submitted to the regulator is in line with that in the financial reports.


2. Internal Control (1) Review the internal control system to ensure its effectiveness in accordance with the standards of the Committee of Sponsoring Organizations of Treadway Commission (COSO). Internal auditor must assess the entire internal control system at least once a year in addition to the assessment of financial reporting with the Bank’s auditor. (2) Review the appropriateness and effectiveness of risk management, internal control of the Bank’s IT system and its security including business continuity plan. 3. The Auditor (1) Ensure independence of the auditor. (2) Review the scope of work of the auditor and internal auditors to avoid duplication of work in financial auditing with due consideration of efficiency in the use of resources in the audit process. (3) Consider the appointment and remuneration of the auditor for submission to the general meeting. (4) Review the annual audit report of the Office of the Auditor General and may suggest review or audit of any transactions deemed necessary and material together with presentation of crucial recommendations to the Board of Directors. 4. The Internal Auditor (1) Ensure independence of the internal auditor. (2) Directly supervise the Internal Audit Group. However, the management of the Internal Audit Group shall report directly to the President. (3) Oversee the Internal Audit Group to adhere to moral ethics and corporate governance

with generally accepted audit standards as well as examine and review code of business conduct of audit officers prior to submission to the Board of Directors for approval. (4) Regularly examine and review the Charter of the Internal Audit Group. (5) Consider and approve the strategic plan for internal audit, organization structure, manpower staffing, annual internal audit program as well as budget used in auditing aiming at efficiency and effectiveness including their prioritization with regard to risk levels. (6) Review the internal audit reports and call confidential meetings with the Managing Director of the Internal Audit Group in order to examine any interference from the executives and the management that may have negative impact on the independence and free will of the internal auditor. (7) Review with the Internal Audit Group Managing Director the utilization of the Bank’s resources to be in line with the established policy or operating manual. (8) Review and consider with the management in the material deficiencies found from auditing and their responses. (9) Submit the opinions to the Board of Directors concerning the appointment, transfer, dismissal, remuneration fixing and performance of the Internal Audit Group Managing Director and all those of the internal auditors of the Internal Audit Group. (10) Assess the performance of the Internal Audit Group Managing Director. (11) Arrange for Independent Quality Assessment Review by external auditor at least every five years.

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5. Regulatory Compliance (1) Review all compliances with relevant laws, rules and regulations stipulated by the official authorities and the regulators so as to prevent penalty charges, warning or reputation of the Bank and its executives. (2) Compliance - Review policy and assess the efficiency of complaince risk management, ensuring that procedure is appropriate. - Assess annual performance of compliance unit to maintain independence and avoid conflict of interest. - Consider and approve the Annual Compliance Report. (3) Supervision in financial business group - Supervising and monitoring operation in accordance with financial business group policy. - Review accuracy and adequacy of financial report of financial business group. 6. Risk Management (1) Review crucial risk levels and risk assessment methods used by the internal auditor and

the Bank’s auditor whether they are adequate and up to standards. (2) Review whether the Bank’s directors and top executives are well aware of key risks and those related to strategic risk, credit risk, market risk, liquidity risk and operational risk. 7. Performance Assessment Conduct self-assessment and the Board of Directors will appraise the Audit Committee’s annual performance. 8. Charter Review Review the Charter of the Audit Committee on regular basis for submission to the Board of Directors for approval. 9. Other Responsibilities (1) Have the authorization to audit or investigate concerned persons under the scope of authority and responsibility of the Audit Committee and to hire specialist to assist in auditing or investigation. (2) Perform other jobs as assigned by the Board of Directors and with consent from the Audit Committee.

The Audit Committee as at January 8, 2010 1) Mr. Pachara Yutidhammadamrong Chairman and Independent Director 2) Mr. Visut Montrivat Member and Chairman of the Independent Director Committee 3) Mr. Dusit Nontanakorn Member and Independent Director 4) Ms. Pannipa Apichatabutra Secretary Member of the Audit Committee with knowledge and experience in review of financial statement: Mr. Visut Montrivat Member of the Audit Committee His brief biography with qualifications and experience in reviewing financial statements is shown in “Brief Biography of the Board of Directors and Executive Officers” on pages 25-33.

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2.1.4 The Nominating and Remuneration Committee Authority and Responsibility (1) Set policy, criteria and procedure in nominating and fixing remuneration including other benefits for the directors, top executives and authorized personal. (2) Recommend overall policy concerning the fixing of remuneration and other benefits of the Bank. (3) Recruit and select applicants with qualifications directly according to rules and relevant laws, and present the selected applicants to the Board of Directors for consideration as - Director - Member of relevant committees delegated directly authority and responsibility from the Board of Directors. - Top executives and authorized personnel (4) Oversee that the size of the Board of Directors is justifiable and appropriate for the organization and the changing environment. The Board of Directors must comprise personnel with

knowledge, skill and experience in various area. (5) Activate the Board of Directors to select new director to replace the one that has completed term of office according to the Articles of Association. (6) Oversee that the directors, top executives and authorized persons’ remunerations are justifiable and appropriate with their duties and responsibilities. Remunerations adjusted in accordance with additional duties and responsibilities of such director. (7) Formulate guidelines for assessing the performance and revising annual remuneration of the directors, top executives and authorized management personnel takings consideration in duties, responsibilities, related risk and long term value creation for shareholders. (8) Disclose policy and details of recruiting procedures, remunerations policy as well as disclose the remuneration formulation report at least details of target, performance, and recommendation of the Nominating and Remuneration Committee in the annual report. (9) Perform other tasks as assigned by the Board of Directors.

The Nominating and Remuneration Committee as at January 8, 2010 1) Mr. Nontigorn Kanchanachitra Chairman 2) Mr. Santi Vilassakdanont Member 3) Mr. Supachai Jongsiri Member 4) Ms. Sumana Vonggapan Secretary Details of changes of the Nominating and Remuneration Committee 1) Mr. Sima Simananta Retiring at the age of 65 on December 23, 2009 2) Mr. Suri Buakhom Retiring at the age of 65 on July 5, 2009 3) Mr. Supachai Jongsiri Took position on August 6, 2009 4) Mr. Nontigorn Kanchanachitra Took position on January 8, 2010 Annual Report 2009 Krung Thai Bank Pcl.

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2.1.5 The Corporate Governance and Social Responsibility Committee Authority and Responsibility (1) Present policy on corporate governance and social and environmental responsibility of the Bank and its subsidiaries to the Board of Directors. (2) Oversee that the Bank’s operations are in compliance with the principles of corporate governance stipulated by the regulators such as the Bank of Thailand, the Stock Exchange of Thailand and the Office of Securities and Exchange Commission, together with bearing social and environmental responsibility. (3) Regularly review the Bank’s corporate governance, social and environmental responsibility policy to be in consonance with international

The Corporate Governance and Social Responsibility 1) Mr. Santi Vilassakdanont 2) Mr. Supachai Jongsiri 3) Mr. Nontigorn Kanchanachitra 4) Mr. Chaianun Siravanichkarn 5) Mr. Phisek Phonakorn 6) Mr. Adisorn Anutarapong Detail of changes of Directorship 1) Mr. Suri Buakhom 2) Dr. Pichit Likitkijsomboon 3) Mr. Supachai Jongsiri 4) Mr. Sima Simananta 5) Mr. Nontigorn Kanchanachitra

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practices and recommendations of related institutions. (4) Recommend Code of Best Practices or Board of Directors Charter to the Board of Directors as well as other committees established. (5) Recommend Code of Business Conduct of the Bank and Code of Practices for executives and staff members. (6) Encourage good corporate governance culture and participation in social and environmental activities for sustainable development which must be understood and carried out effectively at all levels. (7) Nominate subcommittee to support corporate governance and social and environmental responsibility work as deemed appropriate. (8) Perform other tasks as assigned by the Board of Directors.

Committee as at January 8, 2010 Chairman Member Member Secretary Assistant Secretary Assistant Secretary Resigned on July 5, 2009 Resigned on July 24, 2009 Took position on October 15, 2009 Resigned on December 23, 2009 Took Position on January 8, 2010


2.1.6 Risk Management Committee The Board of Directors on December 17, 2009 restructured the composition of the Risk Management Committee from formerly comprising the President and top executives to now including the Bank’s Directors, the President and top executives from the Risk Management & Compliance Group, Operation Group and Financial Management Group. Such restructuring would enable the Bank to oversee risk management with greater efficiency and in line with the good corporate governance principle to which the Bank has given continuous significance. Scope of Authority (1) Present the overall risk management policy to the Board of Directors covering crucial risks namely strategic risk, credit risk, market risk, liquidity risk, operational risk and reputation risk. (2) Set out strategies in consonance with the risk management policy and assessing, monitoring and overseeing risk volume of the Bank to be at appropriate levels.

(3) Control, monitor and assess risk management as well as oversee that business units concerned have implemented the risk management policy and follow the guidelines prescribed by the Bank and the regulators. (4) Review adequacy of the risk management policy and risk management system including effectiveness of the system and implementation of the policy set forth. (5) Formulate the risk management policy and oversee the risk management of the financial business group to be in compliance with the Consolidated Supervision guidance of the Bank of Thailand. As well as controlling, monitoring and assessing risks of the financial business group for better efficiency and to be at acceptable levels. (6) Report the operating performance of the Risk Management Committee to the Audit Committee regularly every month and report the same to the Board of Directors every quarter.

The Risk Management Committee as at January 8, 2010 1) Mr. Aswin Kongsiri Chairman 2) Dr. Jamlong Atikul Member 3) Mr. Apisak Tantivorawong Member 4) Dr. Pongsathorn Siriyodhin Member 5) Ms. Kittiya Todhanakasem Member 6) Ms. Patcharasiri Kiatkumjai Member 7) Mr. Poonpat Sripleng Secretary

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2.1.7 Independent Directors Committee Definition Independent Director must not have any business or work related to commercial bank that might have an impact on his or her independent decision-making and must have additional qualifications as follows: (a) Not holding more than 0.5 percent of the total number of voting shares of the Bank or the Bank’s parent company, subsidiary, associated company, major shareholder or any person with control power over the Bank including shares held by any related person of such an independent director. (b) Not be and have not been a director taking part in the management of the Bank, or an employee or an officer of the Bank, or an advisor of the Bank receiving regular salary from the Bank, and not be and have not been a person with control power over the Bank or the Bank’s parent company, subsidiary, or associated company, or a subsidiary of another company in the same level of the Bank, unless such an independent director has not been a person referred to above for at least two years prior to the date on which the application for being an independent director is filed with the Office of the Securities and Exchange Commission. Such restriction or prohibition shall not apply to an independent director who has been a government officer or an advisor of a government authority, which is the major shareholder of the Bank or the person with control power over the Bank. (c) Not be a person having relationship either through blood or lineage or legal registration as a father, mother, spouse, sibling or child, including as

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a spouse of a child of any management person or major shareholder of the Bank or the Bank’s subsidiary, or of any person with power to control the Bank or the Bank’s subsidiary, or of the person being nominated to be a management person of or a person having power to control the Bank or the Bank’s subsidiary. (d) Not having and have not had any business relationship with the Bank or the Bank’s parent company, subsidiary, associated company, or major shareholder, or with the person with control power of the Bank that may have conflict of interest, in the manner in which his/her independent discretion might be affected, and not be and have not been a substantial shareholder of or a person with power to control the person that has business relationship with the Bank or the Bank’s parent company, subsidiary, associated company, or major shareholder, or person with control power over the Bank unless such an independent director has not been a person referred to above for at least two years prior to the date on which the application for being an independent director is filed with the Office of Securities and Exchange Commission. Business relationship referred to the first paragraph above shall mean to include any ordinary course of business or trade for business engagement purpose, any lease taking or lease out of any property, any transaction relating to asset or services, any financial support by way of either borrowing, lending, guaranteeing or collateral providing or any other manner similar thereto that could result to an obligation required to be performed by the Bank or the party thereto in an amount of three percent or


more of the net tangible asset value of the Bank or twenty million Baht or more, whichever is lesser. In light of this, the method for calculation of the value of connected transaction pursuant to the Capital Market Supervising Committee’s Notification, Re: Regulations in respect of an Entering into a Connected Transaction shall be applied mutatis mutandis for the purpose of calculation of such amount of debt of the Bank, provided that the amount of debt incurred during the past one year prior to the date on which such a business relationship with such person exists. (e) Not be and have not been an auditor of the Bank or the Bank’s parent company, subsidiary, associated company, or major shareholder, or any person with control power over the Bank, and not be and have not been a substantial shareholder of, a person with power to control over, or a partner of any auditing firm or office in which the auditor of the Bank or the Bank’s parent company, subsidiary, associated company, or major shareholder, or the person with control power over the Bank is working, unless such an independent director has not been a person referred to above for at least two years prior to the date on which the application for being an independent director is filed with the Office of the Securities and Exchange Commission. (f) Not be and have not been a professional advisor, including legal or financial advisor who receives fee of more than two million Baht a year from the Bank or the Bank’s parent company, subsidiary, associated company, or major shareholder, or from the person with control power over the Bank and not be and have not been a substantial shareholder of, a person with control

power or a partner of any of such professional service provider firm or office, unless such an independent director has not been a person referred to above for at least two years prior to the date of on which the application for being an independent director is filed with the Office of the Securities and Exchange Commission. (g) Not a director appointed as a representative of a director of the Bank, a representative of a major shareholder of the Bank, or a representative of a shareholder of the Bank which is a related person of the major shareholder of the Bank. (h) Not engage in any business of the same nature of which is the same as that of the Bank or the Bank’s subsidiary and which, in any material respect, is competitive with the business of the Bank or the Bank’s subsidiary, or not be a substantial partner in a partnership, a director taking part in the management, an employee or officer, an advisor receiving regular salary from, or a shareholder holding more than one percent of the voting shares of a company engaging in any business the nature of which is the same as that of the Bank or the Bank’s subsidiary and which, in any material respect, is competitive with the business of the Bank or the Bank’s subsidiary. (i) Having no other characteristics by which his/her independent comment or opinions on the Bank’s operation may be affected. (j) Must be person who has already passed through the process of nomination by the Board of Directors or the Nominating and Remuneration Committee. If a person having qualifications stated in

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(a) to (j) above is appointed as an independent director of the Bank, such appointed independent director may be assigned by the Bank’s Board of Directors to make decision in respect of business operation of the Bank, or the Bank’s parent company, subsidiary, associated company, or a subsidiary of another company in the same level of the Bank, the major shareholder of the Bank, or the person having control power over the Bank, provided that such decision made by such appointed independent director must always be made on a collective decision basis. Statement as referred to the first paragraph of (b) (d) (e) and (f) and specified for the consideration of qualification of the Bank’s Independent Director for at least two years prior to the date of on which the application for being an independent director is filed with the Office of the Securities and Exchange Commission shall be

effective from shareholders annual general meeting in year 2011 onwards. Furthermore, in case of the Capital Market Supervisory Board/the Office of the Securities and Exchange Commission announcing the improvement/ flexibility of the regulation of Independent Director’s qualification, that shall be applied afterwards. Scope of Authority (1) Recommend agenda of meeting to the Chairman of the Board of Directors in case of deeming it material or issues that should be considered by the Board and not yet included on the agenda. (2) Providing opinions to the Chairman of the Board of Directors with regard to the role and performance of the Board. (3) Support the Board of Directors in boosting efficiency in complying with the principles of good corporate governance.

The Independent Director Committee as at January 8, 2010 1) Mr. Visut Montrivat Chairman 2) Mr. Santi Vilassakdanont Independent Director 3) Mr. Pachara Yutidhammadamrong Independent Director 4) Mr. Dusit Nontanakorn Independent Director 5) Mr. Supachai Jongsiri Independent Director 6) Mr. Nontigorn Kanchanachitra Independent Director 7) Ms. Patcharasiri Kiatkumjai Secretary Detail of changes of Independent Directorship 1) Mr. Supachai Jongsiri Took position on July 6, 2009 2) Dr. Pichit Likitkijsomboon Resigned from Independent Director on July 24, 2009 3) Mr. Nontigorn Kanchanachitra Took position on December 24, 2009 4) Mr. Visut Montrivat Took the Chairman position on January 8, 2010

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Business Relationship of Independent Directors The Office of the Securities and Exchange Commission (SEC) issued circular No. 11/2552 on April 16, 2009 revising the requirements governing independent directors of listed companies. Listed companies now require disclosing relevant information concerning the business relationship of independent director value over Baht twenty million with the company/subsidiary/associated company/entity that might have conflict of interest presently or during the past two years. The Board of Directors appointed independent directors with prudence and transparency realizing that all the present six independent directors possess qualifications, knowledge, competence and experience that would benefit the Bank’s business operation. They all have performed their duties with full responsibilities, prudence and integrity under the applicable laws, objectives and Articles of Association of the Bank as well as resolutions of the shareholders general meeting. Moreover, they have fulfilled the tasks with complete independence in helping to oversee business operation satisfactorily and continuously. None of the Bank’s independent directors holds the office of independent director in the parent company, subsidiary or associated company of the same order. Company in which the Bank’s independent director holds office and has business relationship with the Bank in the form of granting credit line or contingency worth over Baht twenty million is regarded as conducting normal business transactions in banking operation on normal general terms and

conditions. Besides, such relationship does not bear the nature that will obstruct the use of discretion or judgment in performing duty independently of the independent directors. Details are as follows: Mr. Santi Vilassakdanont was the director of Sahapatana Interholding Pcl. and Chumporn Palm Oil Industry Pcl., companies having business relationship with the Bank during the past two years. Mr. Pachara Yutidhammadamrong and Mr. Visut Montrivat held the office of director in Bangkok Aviation Fuel Services Pcl. the company that has business relationship with the Bank during the past two years. Mr. Dusit Nontanakorn was the a director in the Crown Seal Pcl., Loxley Pcl., Siam Future Development Pcl., RCL Pcl. and Krungthep Thanakom Co., Ltd. All these companies had business relationship with the Bank during the last two years. Mr. Supachai Jongsiri was the chairman of the Board of Directors of Krung Thai Computer Services Co., Ltd. and a director of CAT Telecom Pcl., currently both companies have business relationship with the Bank. Mr. Nonthikorn Kanchanachiitra was a director in Thai Oil Pcl. and Interlink Communication Pcl., currently both companies have business relationship with the Bank. Apart from the above principles, the Bank has appointed executives with knowledge and appropriate expertise to serve in various committees to scrutinize crucial issues that the Bank needs to give closer and sound supervision namely:

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Executive Committee (Exec.Com.) Formulate the Bank’s policy and strategic plan on credit, liquidity management, investment in financial and capital markets, interest rates, foreign exchange rates, products and compliance with the policies established by the Board of Directors and the Board of Executive Directors as well as other activities. The committee meets on a weekly basis. Investment Committee (IC) IC manages the Bank’s investment in equity and debt instruments, approves investment within the limits set by the Board of Directors and reviews investment that exceeds its limit proposed to the Board of Executive Directors and or the Board of Directors. In addition IC controls investment management and risk pertaining to trading of instruments which must be in accordance with the Bank’s policy and targets. Meeting is held at least once a month. Assets and Liabilities Management Committee (ALCO) Formulate framework for managing the Bank’s assets, liabilities and capital funds in line with external factors affecting the Bank’s liquidity and profitability. Recommend strategies and tools to be used for fixing interest rates, returns on loans and deposits, including investment in asset consistent with the bank liquidity management. ALCO meets at least once a month and reports to the Board of Executive Directors or the Board of Directors for acknowledgement or decision-making.

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Group Credit Committee (GCC) Consider and approve lending limits, debt restructuring, acceptance of transfer of collateral and purchase of mortgaged properties from auction as stipulated in the Bank’s instruction. GCC meets at least once a week. Credit Scrutiny Committee This Committee scrutinizes credit work under the authority of the Board of Executive Directors and the Board of Directors including applications for credit and debt restructuring, credit limit and debt restructuring limit, trading of non-performing assets (NPAs), underwriting or investment in debt instruments except those issued by government, the Bank of Thailand or other government agencies guaranteed by Ministry of Finance and other duties by the President. Meeting is held at least once a week. 2.2 Nominating Directors and Executives 2.2.1 Selection of Directors The Bank has appointed the Nominating and Remuneration Committee to select and scrutinize applicant nominated for director. Such person must be qualified and not forbidden by the Standard Qualifications for State Enterprise Board Members and Staff Act, the Financial Institutions Business Act, the Securities and Exchange Act and other relevant applicable laws. The candidate must also have the required qualifications, skills, knowledge, competency and experience in the fields that are beneficial to the Bank such as finance, economics, IT, human resources management and law. If the Bank should need personnel in additional qualified person in that


field will be recruited to join director. Name of candidate will be submitted to the general meeting via the Board of Directors. After approval of the appointment, the responsible business unit will proceed with the registration of director change and report it to the units concerned within the specified time. Directors who completed their term of office may be re-elected. Moreover, the Bank organizes orientation for new directors to inform them of their role, duty and responsibility as well as relevant rules and policies needed for the understanding of the Bank’s business operation. 2.2.2 Appointment of Director There are two cases: Case 1: Appointment of new director to replace the one who completed his or her term of office will be done in the shareholder general meeting. Director who completed his/her term may be re-elected. Case 2: Appointment of director to replace the one who left prior to completion of term of office shall be made by the Board of Directors with voting of no less than three-fourths of the subsisting directors. Qualified person without any forbidden traits will be selected and will stay only for the remaining tenure of the director who left. 2.2.3 Rights of Minority Shareholders in Appointment of Director The general meeting of shareholders shall elect director on the following criteria: (1) One share equals one vote except preferred shares with provision of condition to have less voting right than ordinary shareholder.

(2) Each shareholder may exercise all the votes to elect one person or several persons but is not entitled to divide the votes for any particular person. (3) Persons receiving the highest votes in descending order shall be elected. The number of directors to be elected depends on the vacancy at that time. In the event of a tied vote for the last opening, the Chairman of the general meeting shall cast the deciding vote. The Bank allows shareholders to add in the agenda item name of qualified applicant as director via the Bank’s website from October 1 to December 31 of each year prior to the annual general meeting. The named applicant will be scrutinized by the Nominating and Remuneration Committee and the Board of Directors with consent from the Bank of Thailand as prescribed in Section 25 of the Financial Institutions Business Act. Results will be notified through the Bank’s website and that of the Stock Exchange of Thailand in March of every year and will also notify on the date of the annual ordinary general meeting. 2.2.4 Selection of the President The Bank complied with the Standard Qualifications for State enterprise Board Members and Staff Act B.E.2543 (2000) in holding a transparent process of selection. A public announcement will be made for the post giving an opportunity to qualified persons with vision, knowledge, competency and experience in the management of large organization to apply. Then the Nominating and Remuneration Committee will select the appropriate person.

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2.2.5 Selection of Group Executives The Nominating and Remuneration Committee will nominate in-bank person with knowledge and competency relating to the work under consideration. In the event that no appropriate person is available, it will nominate outsider with vision, knowledge, leadership and capability in managing banking business as well as having positive attitude toward the organization. 2.3 Directors Orientation The Bank organizes Directors Orientation for newly appointed Directors to familiarize them with the business plan, products and services, capital and shareholding structure, organization structure and key legal issues necessary for performing the duty of director of a registered company. For 2009 orientation was given to the new director Dr. Sathit Limpongpan and Mr. Supachai Jongsiri. The topics presented covered: (1) Board of Directors structure and schedule for Board meeting (2) Calendar and agenda of the Board of Directors meeting (3) Standard agenda (4) Relevant laws (5) Capital and shareholding structures, certification letter, Memorandum of Association, the Bank’s Articles of Association and minutes of the shareholders general meeting (6) Assessment of the role of state enterprise board of directors by Thai Rating and Information Service Ltd. (TRIS) (7) Credit rating

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(8) Directors and officers liability insurance coverage (9) Fire escape plan of Nana Nua Building (10) Business Plan of the Bank (11) KTB Corporate War Room (12) Organization structure and list of executive officers (13) Directorship in subsidiaries, affiliated and associated companies (14) Risk Management overview of the Bank (15) Audit reports of Bank of Thailand (16) Progress reports following audit results by the Bank of Thailand Additional activities were also organized for the new director in accordance with best practices as follows: - Visit various departments in Head Office, Nana Nua Building and Sukhumvit Building. - Off-sight Board meeting at Rayong province, visiting branches, the collateral appraisal center, mortgage operation center, Business Center in Chonburi and Rayong Province to giving moral support to the staffs and monitoring related business unit to solving any problem and threat. 2.4 Assessment of the Board of Directors, President and Group Executives 2.4.1 Self-Assessment of the Board of Directors The Bank requires the Board of Directors to perform self-assessment twice a year so as to reflect operation efficiency under the principles of good corporate governance. This self-assessment has three types: self-assessment of the entire Board of


Directors, self-assessment of individual Director and inter-assessment of individual Director. Criteria as follow: (1) Self-assessment of the entire Board of Directors consists of four areas namely Board Policy, Board Composition, Board Practices and Board Meeting. The overall assessment results for the four areas in 2008 and 2009 were excellent at 95.0 percent. Majority of the Directors were of the opinion that the number of Directors was appropriate for the business size and the number of Independent Directors was more than what the regulators required making it adequate to oversee the material issues prudently. (2) Self-assessment of the individual Director covers six areas namely Accountability, Responsibility, Equitable Treatment, Transparency, Vision to Create Long Term Value and Ethics. The overall assessments for the six areas in 2008 and 2009 were excellent at 98.7 percent and 98.8 percent respectively. Most of the Directors were of the opinion that each Director must be accountable for the accuracy and completeness of financial reports and the general information disclosed to the stakeholders on equitable and fair basis. (3) Inter-assessment of individual Director comprises queries that promote the principles of good corporate governance whereby Directors are able to express their opinions that are useful to the stakeholders, such as opinions and recommendations that do not contradict the best practices and are beneficial to the Bank, independent and creative

expression of opinions, useful information for the Board’s decision-making and responsibility to the stakeholders leading to accurate and equitable treatment. The overall assessments in 2008 and 2009 were excellent at 99.4 percent and 99.5 percent respectively. Most of the Directors expressed their opinions that recommendations of each Director helped to promote the principles of good corporate governance and were useful to the Bank. Moreover, the Directors’ opinions were independent and creative in various perspectives that will lead to proper practices. The Bank concluded the assessment results to all the Directors for acknowledgement as a move toward creation of good corporate governance across the board and continuous business growth with efficient, transparent and fair management thus creating confidence to all concerned. 2.4.2 Assessment of the President The Bank required two assessments annually during January-June and July-December under following procedures: (1) The Nominating and Remuneration Committee will assess the performance by comparing it with the key performance indicator (KPI) as specified in the strategies and targets of each year. (2) The Nominating and Remuneration Committee submits the performance assessment to the Board of Directors for approval. (3) The Nominating and Remuneration Committee informs the President of the assessment results.

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2.4.3 Assessment of Group Executives The Bank requires assessment of Group Executives twice a year during January-June and July-December in the same manner as the assessment of the President. (1) The Group Executive Performance Assessment Committee will assess the performance of Group Executives as follows: - Compare the performance under consideration with the key performance indicator (KPI) that has been agreed upon with the President (70 percent weighted). - Management competency scores assessed by supervisor and colleagues (30 percent weighted). (2) The Group Executive Performance Assessment Committee submits the assessment to the Nominating and Remuneration Committee for approval. (3) The Nominating and Remuneration Committee submits the assessment further to the Board of Director for approval. (4) The Nominating and Remuneration Committee informs the Group Executives of their assessment results.

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2.5 Board of Directors Meeting Dates of the Board of Directors meeting have been fixed in advance trough the year at the first and the third Thursday of every month and there may be extra meeting when appropriate. The Board of Directors will be notified with meeting agenda and related document at least 7 days before the meeting date. Meeting agenda was clearly categorized into headings for efficiency such as Chairman’s statement for information, adoption of previous meeting’s minutes, on-going issues, policies, credit, debt rerstructuring, invesment, property trading and procurement, human resouce, issue for information and other businesses. Corporate secretary will note the minutes and retain for audit after the Board of Directors’ approval. The Board of Directors in 2009 called 26 meetings, the Board of Executive Directors 52 meetings, the Audit Committee 12 meetings, the Nominating and Remuneration Committee 10 meetings, the Corporate Governance and Social Responsibility Committee 10 meetings, the Risk Management Committee 15 meetings and the Independent Directors Committee 4 meetings. Details of each Director’s attendance are as follows:


Nominating Risk Audit & CG & CSR Independent Committee Remuneration Committee Management Committee Committee Committee

Name of Director

Board of Directors

Board of Executive Directors

1) Dr. Sathit Limpongpan 2) Dr. Chaiyawat Wibulswasdi 3) Mr. Aswin Kongsiri (1) 4) Mr. Santi Vilassakdanont 5) Mr. Pachara Yutidhammadamrong 6) Dr. Jamlong Atikul (1) 7) Mr. Visut Montrivat 8) Mr. Dusit Nonthanakorn 9) Mr. Supachai Jongsiri 10) Mr. Nontigorn Kanchanachitra(2) 11) Mr. Apisak Tantivorawong

12/12 26/26 23/26 23/26 26/26 26/26 26/26 26/26 11/12 - 26/26

51/52 44/52 12/12 52/52 12/12 12/12 48/52

Director resigned during the year 1) Mr. Suparut Kawatkul

11/11

1/1 10/10 10/10 1/1 4/4 3/3 - - 15/15

3/4 4/4 4/4 4/4 2/2 -

(resigned on May 22, 2009)

2) Mr. Suri

Buakhom

14/14

6/6

6/6

2/2

15/15

7/7

2/2

25/26

4/4

(retiring at the age of 65 on July 5, 2009)

3) Dr. Pichit

Likitkijsomboon

(resigned on July 24, 2009)

4) Mr. Sima

Simananta

10/10 10/10

(retiring at the age of 65 on December 23, 2009) Note:

Number in the table refers to number of attendance/number of Board Meeting held while acting as Director (1) Mr. Aswin Kongsiri and Dr. Jamlong Atikul were appointed to be Chairman of the Risk Management Committee, and member respectively on December 17, 2009. (2) Mr. Nontigorn Kanchanachitra were appointed to be Independent Committee on December 24, 2009 , Chairman of Nominating and Remuneration Committee, and member of Corporate Governance & Social Responsibility Committee on January 8, 2010.

Annual Report 2009 Krung Thai Bank Pcl.

85


2.6 Corporate Secretary The Bank has assigned Ms. Patcharasiri Kiatkumjai, First Executive Vice President - Managing Director of the Risk Management and Compliance Group to be the Corporate Secretary complied with the Securities and Exchange Act (No.4) B.E. 2551 (2008) and the principles of good corporate governance. Main duties and responsibilities include: (1) Oversee activities of the Board of Directors to be in compliance with the relevant applicable laws, rules and regulations. (2) Organize shareholders general meeting and the Board meeting to be in compliance with the relevant laws and the Bank’s Articles of Association and monitoring those actions taken according to the meeting resolution for accuracy and compliance. (3) Prepare and retain the following documents: - Director registration - Notice of board meeting to Directors, minutes of the Board of Directors meeting and the annual report of the company. - Notice of shareholders general meeting and minutes of such meeting. (4) Retain the reports on interest reported by Directors or executives. (5) Monitor the actions taken in accordance with the resolutions of the Board of Directors meeting and shareholders meeting. (6) Provide appropriate recommendations to Directors concerning legal matter, rules and regulations of the Bank. (7) Oversee corporate governance issues. (8) Acting as a consultant and coordinator with secretaries of respective committees of the Bank. (9) Communicate with the shareholders to inform them of their rights and news of the Bank. (10) Take any other actions are prescribed by the Capital Market Supervisory Board.

86


2.7 Shareholding of the Board of Directors and Top Executives as at December 31, 2009

Name

Position

1 Dr. Sathit Limpongpan Chairman 2 Dr. Chaiyawat Wibulswasdi Vice Chairman 3 Mr. Apisak Tantivorawong President 4 Mr. Aswin Kongsiri Director 5 Mr. Santi Vilassakdanont Director 6 Mr. Pachara Yutidhammadamrong Director 7 Dr. Jamlong Atikul Director 8 Mr. Visut Montrivat Director 9 Mr. Dusit Nontanakorn Director 10 Mr. Supachai Jongsiri Director 11 Mr. Nontigorn Kanchanachitra Director 12 Dr. Pongsathorn Siriyodhin FS EVP 13 Ms. Kittiya Todhanakasem SEVP 14 Ms. Nongnutch Thienpaitoon SEVP 15 Ms. Sumana Vonggapan SEVP 16 Ms. Sompis Charoenkiatikul SEVP 17 Mr. Teerapol Pussadet FEVP 18 Mr. Assanee Subvanich FEVP 19 Ms. Pannipa Apichatabutra FEVP 20 Mr. Prasert Thiranakanat FEVP 21 Ms. Patcharasiri Kiatkumjai FEVP 22 Dr. Anuchit Anuchitanukul FEVP 23 Ms. Sriprabha Pringpong FEVP 24 Mr. Weidt Nuchjalearn FEVP

KTB Shares Held

Own

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Spouse

Child

Total

0 0 0 0 0 0 0 80,276 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 200

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 80,276 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 200

% 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000718 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000002

Annual Report 2009 Krung Thai Bank Pcl.

87


2.8 Informations of Directorship of The Bank’s Directors and Executives in Subsidiaries, Associated and Related Companies as at December 31, 2009 Name

KTB

Directors Dr. Sathit Limpongpan XX Dr. Chaiyawat Wibulswasdi A Mr. Aswin Kongsiri / Mr. Santi Vilassakdanont X Mr. Pachara Yutidhammadamrong X Dr. Jamlong Atikul / Mr. Visut Montrivat X Mr. Dusit Nontanakorn X Mr. Supachai Jongsiri X Mr. Nontigorn Kanchanachitra X Mr. Apisak Tantivorawong B Group Managing Directors (6) Dr. Pongsathorn Siriyodhin M Ms. Kittiya Todhanakasem M Ms. Nongnutch Thienpaitoon M Ms. Sumana Vonggapan M Ms. Sompis Charoenkiatikul M Mr. Teerapol Pussadet M Mr. Assanee Subvanich M Ms. Pannipa Apichatabutra M Mr. Prasert Thiranakanat M Ms. Patcharasiri Kiatkumjai M Dr. Anuchit Anuchitanukul M Ms. Sriprabha Pringpong M Mr. Weidt Nuchjalearn M Sector Directors (7) Ms. Arisara Dharamadhaj Mi Ms. Wallaya Kaewrungruang Mi Mr. Tawan Puntawong Mi

Subsidiaries (1)

Related Companies Companies with Joint Directors (4)

Associated Companies (2) Other Companies (3)

1 2 3 4 5 6 1 2 3 4 5 6

1 2 3 4 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

X X X

X

XX XX XX X X X X

/

XX X

X / X

X

/ X /

X X

X

X

X

X X

X

X

X

XX

X X X

X X C X

X X X X X X X

Note: Brief information on each person’s position is shown in “Brief Biography of Board of Directors and Executive Officers” and “Executives Directory”

Symbol XX = Chairman

A = Dr. Chaiyawat Wibulswasdi holds the following positions in KTB: B = Mr. Apisak Tantivorawong holds the following positions in KTB: C = Mr. Santi Vilassakdanont acting as President in Saha Pathana Inter-Holding Pcl.

- Vice Chairman of the Board of Directors - Chairman of the Board of Executive Directors - Director Definition

/ = Executive Director

X = Director

M = Group Managing Director

- President - Executive Director - Director

Mi = Sector Director

(1) Subsidiary refers to a company in which the Bank’s shareholding exceeds 50 percent of paid-up capital and such company is under the Bank’s control excluding company in which the Bank has invested due to troubled debt restructuring. (2) Associated company refers to a company in which the Bank’s shareholding is 20 percent and over but not more than 50 percent of paid-up capital and such company is under material influence of the Bank excluding company in which the Bank has invested due to troubled debt restructuring. (3) Other company refers to a company in which the Bank’s shareholding is 10 percent and over excluding company in which the Bank has invested due to troubled debt restructuring. (4) Company with joint Directors refers to a company in which the Bank’s Director has directorship of the Board of Directors whereby the Bank does not hold any share or hold less than 10 percent. . (5) Company with Joint Senior Executives refers to a company whose Bank Senior Executive holds directorship in that company whereby the Bank does not hold any share or hold less than 10 percent. (6) Group Managing Director refers to Senior Executive definition in accordance with that of SEC. (7) Group Managing Director and Sector Director refers to Senior Executive definition in accordance with that of BOT

88


Name Directors Dr. Sathit Limpongpan Dr. Chaiyawat Wibulswasdi Mr.Aswin Kongsiri Mr. Santi Vilassakdanont Mr. Pachara Yutidhammadamrong Dr. Jamlong Atikul Mr. Visut Montrivat Mr. Dusit Nontanakorn Mr. Supachai Jongsiri Mr. Nontigorn Kanchanachitra Mr. Apisak Tantivorawong Group Managing Directors (6) Dr. Pongsathorn Siriyodhin Ms. Kittiya Todhanakasem Ms. Nongnutch Thienpaitoon Ms. Sumana Vonggapan Ms. Sompis Charoenkiatikul Mr. Teerapol Pussadet Mr. Assanee Subvanich Ms. Pannipa Apichatabutra Mr. Prasert Thiranakanat Ms. Patcharasiri Kiatkumjai Dr. Anuchit Anuchitanukul Ms. Sriprabha Pringpong Mr. Weidt Nuchjalearn Sector Directors (7) Ms. Arisara Dharamadhaj Ms. Wallaya Kaewrungruang Mr. Tawan Puntawong

Subsidiaries

Related Companies

Companies with Joint Directors (4)

Companies with joint Senior Executives (5)

18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 1 2 3 4 5 6

7 8 9 10 11 12 13 14 15 16 17

X X

X X

X

X

X

XX

X

XX

X

X X

X

X

X

X

X

X

X

X

X

X X

X

X

X

X

X X X X X X

Related Companies

1. Krung Thai Legal Services Co., Ltd. Other Companies Companies with Joint Directors Airways International Pcl. 1. Thai 2. Krung Thai General Business Services Co., Ltd. 1. Trinity Watthana Pcl. 2. Dhipaya Insurance Pcl. Asset Management Corporation 2. Thai 3. Krung Thai Asset Management Pcl. Generating Pcl. 3. Electricity 4. Krung Thai Computer Services Co., Ltd. 3. Nok Airlines Co.,Ltd. Pcl. 4. OHTL 5. KTB Leasing Co., Ltd. 4. National ITMX Co.,Ltd. 5. Suvarnabhumi Airport Hotel Co.,Ltd. 5. Padaeng Industry Pcl. 6. KTB Advisory Co., Ltd. 6. CH. Karnchang Pcl. 7. Bangkok Aviation Fuel Services Pcl. 8. Thai Reinsurance Pcl. Associated Companies 9. Saha Pathana Inter-Holding Pcl. 1. Krungthai-AXA Life Insurance Co.,Ltd. 10. Saha Pathana Group of Companies 2. Krungthai Card Pcl. (20 Companies) 3. Krungthai Panich Insurance Co.,Ltd. 11. Thoresen Thai Agencies Pcl. 4. Krungthai Charoensri Co.,Ltd. 12. RCL Pcl. 13. Crown Seal Pcl. 5. Krung Thai IBJ Leasing Co.,Ltd. 14. Wiik & Hoeglund Pcl. 6. KT ZMICO Securities Co.,Ltd. 15. Loxley Pcl. 16. S&P Syndicate Pcl.

17. Siam Future Development Pcl. 18. Indorama Polymers Pcl. 19. Thai Oil Pcl. 20. Paiboon Insurance Co., Ltd. 21. The Krungthep Thanakom Co.,Ltd. 22. Palang Sophon Limited 23. AK. Place Co.,Ltd. 24. Kompastra Co., Ltd. 25. Ton Poh Emerging Thailand Fund 26. ECR Property ordinary Partnership 27. Thai Aviation Refuelling Co., Ltd. 28. Amata Corporation Pcl. 29. Ratchaburi Electricity Generating Holding Pcl. 30. CAT Telecom Pcl. 31. Asian Property Development Pcl. 32. Interlink Communication Pcl.

Companies with Joint Senior Executives 1. AFC Merchant Bank 2. TPT Petrochemicals (Thailand) Pcl. [formely named Tuntex Petrochemicals (Thailand) Pcl.] 3. TPT Utilities Co.,Ltd. 4. Advance Agro Pcl. 5. Bangkok Metro Pcl. 6. Thai Nam Plastic Pcl. 7. TRIS Corporation Limited 8. TRIS Rating Co.,Ltd. 9. Thai Listed Companies Association 10. Rhein Element International Co.,Ltd. 11. Sri Siam Paper Pcl. 12. Thai Water Works Associates Co.,Ltd. 13. Millenium Microtech (Thailand) Co.,Ltd. 14. Millenium Microtech Holding (Cayman) 15. Millenium Microtech (USA) 16. Bangkok Expressway Pcl. 17. Northern Bangkok Expressway Co.,Ltd.

Annual Report 2009 Krung Thai Bank Pcl.

89


Analysis of Operating Performance and Financial Standing (Consolidated) Overview

In 2009, the Bank and its subsidiaries earned a profit before income tax of Baht 17,615 million, up from prior year by Baht 1,878 million or 11.93 percent. After deduction of income tax of Baht 5,426 million, net income stood at Baht 12,189 million a slight decrease of only Baht 83 million or 0.68 percent.

Operating Performance 2009

Income before income tax Less income tax Net Income

17,615 5,426 12,189

2008

15,737 3,465 12,272

Million Baht

Change % Amount

1,878 1,961 (83)

11.93 56.59 (0.68)

Net Interest and Dividend Income Net interest and dividend income of the Bank and subsidiaries in 2009 totaled Baht 42,536 million, down from prior year by Baht 3,280 million or 7.16 percent due to downhill interest rates. As a result, interest income from loans slipped by Baht 5,847 million or 10.35 percent. Interest income from interbank and money market items dropped by Baht 213 million or 5.15 percent and interest and dividend income from investments decreased by Baht 1,406 million or 29.35 percent. At the same time, interest expense registered Baht 15,447 million, a decline of merely Baht 4,186 million or 21.32 percent, less than the drop of interest and dividend income. Hence, net interest margin to average assets in 2009 fell to 2.96 percent from 3.60 percent in prior year.

Net Interest and Dividend Income 2009

Interest and dividend income - Loans - Interbank and money market items - Investments Less Total interest expense Net interest and dividend income Net interest margin (average assets) (%)

90

50,673 3,926 3,384 15,447 42,536 2.96

2008

56,520 4,139 4,790 19,633 45,816 3.60

Million Baht

Change % Amount

(5,847) (213) (1,406) (4,186) (3,280)

(10.35) (5.15) (29.35) (21.32) (7.16)


Non-Interest Income

In 2009, the Bank and its subsidiaries’ non-interest income posted Baht 13,785 million, up from prior year by Baht 2,840 million or 25.95 percent due to gain in investments of Baht 593 million compared with loss of Baht 959 million in the year before. Meanwhile, share of gain from investments on equity method and fees and service income rose by 33.61 percent and 30.68 percent respectively.

Non-Interest Income

Percentage Share of Non-Interest Income

Million Baht

15,000

100%

884 305 665

1,178 914 1,152

10,000

10.76% 8.35% 10.53%

80% 60%

10,368 7,934

5,000

6.41% 2.21% 4.83%

75.21%

40%

72.49%

20%

970 593

726 (959)

0

2008

2009

7.04% 4.30%

6.63% -8.76%

0

2008

2009

Other income Net gain from properties foreclosed Gain on exchange Fees and service income Share of gain from investments on equity method Net gain (loss) from investments

Non-Interest Expenses

Non-interest expenses of the Bank and subsidiaries in 2009 totaled Baht 32,463 million, up by Baht 2,345 million or 7.79 percent from previous year mostly due to personnel expenses and fees and service expenses. As a result, cost to income ratio in 2009 increased to 58.65 percent from 53.75 percent in prior year.

Annual Report 2009 Krung Thai Bank Pcl.

91


Non-Interest Expenses

Percentage Share of Non-Interest Expenses

Million Baht

100%

35,000 30,000

80%

25,000

13,584

15,000

5,313

10,000

2,484 421 4,155

5,474 2,028 1,103 4,370

4,161

4,446

0

2008

46.34%

17.64%

16.86%

8.25% 1.40% 13.80%

6.25% 3.40% 13.46%

13.81%

13.69%

60%

20,000

5,000

45.10%

15,042

40% 20% 0

2009

2008

2009

Personnel expenses Premises and equipment expenses Taxes and duties Fees and service expenses Contribution to the Financial Institutions Development Fund and Deposit Protection Agency Other expenses

Bad Debts and Doubtful Accounts Expenses

In 2009, the Bank and subsidiaries set allowance for bad and doubtful accounts of Baht 6,243 million, down by Baht 4,663 million or 42.76 percent from 2008. Monthly provision for bad and doubtful accounts was set at Baht 500 million.

Analysis of Financial Standing Total Assets

As a December 31, 2009 total assets of the Bank and subsidiaries stood at Baht 1,543,830 million, up by Baht 213,454 million or 16.04 percent from prior year-end. Net Investments amounted to Baht 136,374 million, up by Baht 24,863 million or 22.30 percent from previous year-end attributing to increase of net current investments and net investments in subsidiaries and associated companies while net long-term investments decreased.

92


Net Investments December 31, 2009 Amount %

Net current investments Net long-term investments Net investments in subsidiaries and associated companies Total net investments

Million Baht December 31, 2008 Amount %

Change Amount %

75,301 55.22 45,405 40.72 29,896 65.84 53,787 39.44 59,918 53.73 (6,131) (10.23) 7,286 5.34 6,188 5.55 1,098 136,374 100.00 111,511 100.00 24,863

17.74 22.30

As at December 31, 2009 , investments in government and state enterprise bonds accounted for 62.87 percent, up from 56.31 percent as at prior year-end followed by investments in equity securities (including mutual funds) 24.64 percent, foreign debt instruments 5.90 percent, investments in subsidiaries and associated companies 5.34 percent and investments in private sector debt instruments 1.25 percent.

Net Investments Classified by Investment Type 56.31%

62.87% 1.25%

4.17%

December 2008

6.41% 5.55% 27.56%

December 2009

5.90% 5.34% 24.64%

Government & state enterprise securities Private sector debt instruments Foreign debt instruments Investments in subsidiaries & associated companies Equity securities ( including mutual funds )

Loans as at December 31, 2009 totaled Baht 1,071,880 million (excluding interest receivable and interbank and money market loans), up from previous year-end by Baht 29,382 million or 2.82 percent. Manufacturing and commercial loans still accounted for the largest percentage share.

Annual Report 2009 Krung Thai Bank Pcl.

93


Percentage Share of Loans Classified by Business Type 14.59%

12.59% 15.07% 2.73% 33.98%

December 2008

13.76% 2.13% 33.92%

Manufacturing and commerce Real estate and construction

December 2009

Public utilities and services Housing loans

23.20%

22.57% 13.54%

Agriculture and Mining

Others

11.92%

Assets Quality

Loans Classification Assets quality of the Bank and subsidiaries improved from prior year as seen from the higher percentage of loans classified as pass by 0.78 percent.

Loans Classification

December 2008

89.52% 2.30% 0.46% 2.20% 5.52%

90.30% 1.78% 0.27% 2.07%

December 2009

5.58%

Pass Special mention Substandard Doubtful Doubtful of loss

Non-performing Loans (NPLs) As at December 31, 2009 NPLs of the Bank and subsidiaries registered Baht 84,920 million, down from prior year-end by Baht 528 million or 0.62 percent. As a result, NPLs to total loans declined to 6.52 percent from 7.68 percent as at previous year-end. Meanwhile net NPLs fell to Baht 52,209 million, declining from prior year-end by Baht 6,604 million or 11.23 percent with net NPLs to total loans down to 4.11 percent from 5.42 percent as at last year-end.

94


Non-Performing Loans 85,448 mn. Baht 7.68%

2008

Net Non-Performing Loans

84,920 mn. Baht 6.52%

58,813 mn. Baht 5.42%

2009

52,209 mn. Baht 4.11%

2008

2009

Allowance for Doubtful Accounts As at December 31, 2009 the Bank and subsidiaries’ allowance for doubtful accounts (including allowance for revaluation from troubled debt restructuring) posted Baht 40,451 million, up by Baht 4,866 million or 13.67 percent from prior year-end. Troubled Debt Restructuring (TDR) In 2009, the Bank made TDR agreements totaling 5,948 cases with book value of debt before TDR of Baht 43,063 million. Interest and principle totaling Baht 3,854 were repaid while additional loans of Baht 2,750 million were made and bad debts from TDR registered Baht 597 million.

Troubled Debt Restructuring (Bank’s Financial Statements)

Million Baht December 31, 2009 No. of Cases

Assets transferred Loan terms modification Combination of debt restructuring Total

Book Value

of Debt before TDR

December 31, 2008 No. of Cases

Book Value of Debt before TDR

Change (%) No. of Cases

Book Value of Debt before TDR

22 1,418 35 2,360 (37.14) (39.92) 1,018 11,297 1,124 9,558 (9.43) 18.19 4,908 30,348 4,432 29,486 10.74 2.92 5,948 43,063 5,591 41,404 6.39 4.01

Net Properties Foreclosed As at year-end 2009, the Bank and subsidiaries’ non-performing assets (NPAs) amounted to Baht 42,148 million, up by Baht 4,568 million or 12.16 percent from prior year-end, most of which resulted from acceptance of assets transfer for debt repayment to resolve NPL problems and auctioned purchase of collateral properties mortgaged arranged by the Legal Execution Department. Annual Report 2009 Krung Thai Bank Pcl.

95


Total Liabilities

As at December 31, 2009 total liabilities in consolidated statements amounted to Baht 1,431,303 million, up from previous year-end by Baht 204,555 million or 16.67 percent. Deposits increased by Baht 144,397 million or 13.58 percent owing to rise in demand and savings deposits. Meanwhile, borrowings rose by Baht 20,462 million or 20.42 percent from long-term borrowings.

Deposits Classified by Type 17.80%

5.78%

7.89%

6.41%

23.13%

Demand deposits

3.01%

December 2008

Savings deposits

December 2009

Time deposits : Less than 6 months 6 months to less than one year

12.38% 18.49%

one year and over 50.04%

55.07%

Shareholders’ Equity

As at December 31, 2009 the shareholders’ equity in consolidated financial statements registered Baht 112,527 million, up by Baht 8,899 million or 8.59 percent from prior year-end due to the following key changes: Premium on capital from changes of investments value amounted to Baht 1,545 million, up from previous year-end by Baht 2,109 million or 373.94 percent. Share book value as at December 31, 2009 was Baht 10.06 per share, up from Baht 9.26 per share as at previous year-end or up by 8.64 percent.

Off-Balance Sheet Items: Contingencies

As at December 31, 2009 total contingencies in consolidated financial statements stood at Baht 780,417 million, rising by Baht 243,245 million or 45.28 percent from prior year-end which was considered normal business operation changes.

96


Off-Balance Sheet Items: Contingencies

Million Baht

Change Amount %

December 31, 2009 December 31, 2008

Avals to bills and guarantee of loans Liabilities under unmatured import bills Letter of credit Other contingencies Total contingencies

6,271 - 25,357 748,789 780,417

Liquidity Policy, Sources and Uses of Funds

Liquidity The Bank has pursued liquidity management policy getting different sources of funds ready for business expansion. The Assets and Liabilities Management Committee (ALCO) formulates such policy and manages the Bank’s liquidity under the requirements prescribed by the Bank of Thailand. As at December 31, 2009 liquidity for Bank and subsidiaries was better than previous yearend. Loans to deposits declined by 88.76 percent, from 98.05 percent as at prior year-end. If bills of exchange were included in deposit, total loans to deposits ratio as at December 31, 2009 would drop to 84.57 percent from 93.06 percent as at 78.22% previous year-end. 4.62% Sources and Uses of Funds Key 7.82% sources of funds of the Bank and subsidiaries as 2.05% at December 31, 2009 accounting for as7.29% much as 78.22 percent were deposits. Other sources included borrowings through debt instruments, interbank Deposits borrowing and shareholders’ equity totaling 21.78 Interbank and money market items percent. The Bank and subsidiaries used capital Loans funds of 67.05 percent in net lending followed by Others interbank and money market items (net) 16.38 percent, equity net investments 8.83Shareholders' percent, net properties foreclosed and others totaling 7.74 percent.

5,263 1,008 19.15 88 (88) (100.00) 20,005 5,352 26.75 511,816 236,973 46.30 537,172 243,245 45.28

Sources of Funds

5.01 2.73%

78.22% 4.62% 7.82% 2.05% 7.29%

Deposits

N

Interbank and money market items

N

Loans

N

Others

N

Shareholders' equity

O

Uses of Funds 5.01% 16.38%

2.73%

8.83%

67.05%

Net interbank and money market items Net investments Net loans Net properties foreclosed Others

Annual Report 2009 Krung Thai Bank Pcl.

97


Key Sources and Uses of Funds December 31, 2009 Amount %

Loans - Not over one year - Over one year Less Unearned discounts Total loans * Deposits - Not over one year - Over one year Total deposits

356,617 716,895 1,632 1,071,880 1,195,344 12,269 1,207,613

Million Baht

December 31, 2008 Amount %

33.27 66.88 0.15 100.00 98.98 1.02 100.00

362,690 681,919 2,111 1,042,498 1,033,157 30,059 1,063,216

Change Amount %

34.79 (6,073) 65.41 34,976 0.20 (479) 100.00 29,382 97.17 162,187 2.83 (17,790) 100.00 144,397

(1.67) 5.13 (22.69) 2.82 15.70 (59.18) 13.58

Note : * Excluding accrued interest receivable and interbank and money market loans

Capital Funds to Risk Weighted Assets Ratio

As at December 31, 2009 the Bank’s statutory capital funds under Basel II as enforced by BOT amounted to Baht 168,934 million or 15.92 percent of risk weighted assets, higher than BOT requirement of 8.50 percent and up from prior year-end by Baht 32,609 million or 23.92 percent. Of this, tier-1 capital registered Baht 106,628 million or 10.05 percent of risk weighted assets, higher than BOT minimum requirement of 4.25 percent. Hence, the Bank had a strong capital funds standing with ability to expand business as planned.

Capital Funds to Risk Weighted Assets (Bank’s Financial Statement)

December 31, 2009 Amount %

Tier-1 Capital Fund 106,628 Tier-2 Capital Fund 62,306 Total capital fund before less items 168,934 Less Revaluation deficit (net) on investments in available- for-sale equity securities - Total capital fund 168,934 Risk weighted assets 1,061,174

98

Million Baht

December 31, 2008 Amount %

Change Amount %

10.05 101,011 37,285

9.70

5,617 25,021

5.56 67.11

138,296

30,638

22.15

1,971 15.92 136,325 1,041,878

13.08

(1,971) (100.00) 32,609 23.92 19,296 1.85


Analysis of Cash Flow Statement

For the year-ended December 31, 2009 cash and cash equivalent items in consolidated financial statements stood at Baht 33,203 million, down from previous year-end by Baht 1,317 million or 3.82 percent due to the following reasons: 1) Net cash used in operating activities amounted to Baht 4,917 million deriving from operation income before changes in operating assets and liabilities of Baht 20,077 million, and the Bank had major changes of assets and liabilities namely deposits increase of Baht 144,397 million, interbank and money market items (liabilities) increase by Baht 34,969 million while interbank and money market items (assets) rose by Baht 159,543 million, net loans increased by Baht 37,183 million and net investments in securities trading went up by Baht 8,134 million. 2) Net cash used in investment activities amounted to Baht 12,352 million deriving from net cash paid for purchase of available-for-sale securities of Baht 18,758 million and net cash paid for purchase of land, premises and equipment amounting to Baht 1,298 million as net cash received from sale of held-tomaturity debt securities equaled Baht 9,069 million. 3) Net cash from financing activities amounted to Baht 15,952 million deriving from cash received from long-term borrowings of Baht 26,874 million with cash paid on ordinary share and preferred share dividends of Baht 4,922 million and cash paid as repayment of long-term borrowings amounting to Baht 6,000 million.

Annual Report 2009 Krung Thai Bank Pcl.

99


The Bank’s Performance from 2005-2009

Consolidated Items

Operating Performance Interest and Dividend Income Interest Expense

2009

Amount (million baht) 2008 2007 2006

57,983 15,447 42,536 6,243

65,449 19,633 45,816 10,906

66,177 22,139 44,038 19,575

2005

2009

Change (%) 2008 2007 2006

67,292 50,061 (11.41) (1.10) (1.66) 21,405 11,445 (21.32) (11.32) 3.43 45,887 38,616 (7.16) 4.04 (4.03) 16,502 6,438 (42.76) (44.29) 18.62

34.42 87.02 18.83 156.32

2005

9.00 (14.34) 18.57 (22.89)

Net Interest and Dividend Income Bad Debts and Doubtful Accounts Net Interest and Dividend Income after Bad Debts and Doubtful Accounts and Loss on Debt Restructuring 36,293 34,910 24,463 29,385 32,178 3.96 42.71 (16.75) (8.68) 32.86 Non-Interest Income 13,785 10,945 11,028 10,699 7,641 25.95 (0.75) 3.08 40.00 (17.37) Non-Interest Expenses 32,463 30,118 28,015 25,966 22,517 7.79 7.51 7.89 15.32 0.76 Income (Loss) before Income Tax 17,615 15,737 7,476 14,117 17,303 11.93 110.50 (47.04) (18.41) 55.59 Income Tax Expense 5,426 3,465 1,069 39 4,279 56.59 224.13 2,641.03 (99.09) 15,748.15 Net Income (Loss) 12,189 12,272 6,407 14,078 13,024 (0.68) 91.54 (54.49) 8.09 17.40 Financial Standing Interbank and Money Market Items 252,875 93,022 76,008 86,129 69,132 171.84 22.38 (11.75) 24.59 37.66 Securities Purchased Under Resale Agreements - - 600 21,200 48,210 - (100.00) (97.17) (56.03) (14.22) Net Investments 136,374 111,511 110,124 113,578 103,425 22.30 1.26 (3.04) 9.82 48.40 Loans 1,071,880 1,042,498 954,571 922,679 892,066 2.82 9.21 3.46 3.43 (4.61) Allowance for Doubtful Accounts and Revaluation Allowance for Debt Restructuring 40,451 35,585 36,968 39,523 41,125 13.67 (3.74) (6.46) (3.90) (35.09) Net Loans and Accrued Interest Receivable 1,035,151 1,011,748 922,760 888,641 855,953 2.31 9.64 3.84 3.82 (2.77) Net Properties Foreclosed 42,148 37,580 34,718 34,110 33,786 12.16 8.24 1.78 0.96 6.80 Total Assets 1,543,830 1,330,376 1,212,722 1,204,828 1,162,748 16.04 9.70 0.66 3.62 1.21 Total Deposits 1,207,613 1,063,216 1,000,671 966,437 982,971 13.58 6.25 3.54 (1.68) (2.01) Interbank and Money Market Items 71,416 36,447 39,601 48,534 52,454 95.94 (7.96) (18.41) (7.47) 24.06 Borrowings 120,688 100,226 50,382 77,344 20,451 20.42 98.93 (34.86) 278.19 104.49 Total Liabilities 1,431,303 1,226,748 1,117,062 1,112,100 1,080,116 16.67 9.82 0.45 2.96 0.66 Total Shareholders’ Equity 112,527 103,628 95,660 92,729 82,631 8.59 8.33 3.16 12.22 8.93

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Consolidated Items

2009

Amount (million baht) 2008 2007 2006

2005

2009

Change (%) 2008 2007 2006

2005

Financial Ratios Profitability Ratios 2.96 3.60 3.64 3.88 3.34 Net Interest Margin (%) Return on Average Assets (%) 0.85 0.97 0.53 1.19 1.13 Return on Average Equity (%) 11.28 12.32 6.80 16.06 16.44 Cost to Income Ratio (%) 58.65 53.75 51.48 45.22 48.94 Net Income / No.of Employees (million baht)* 0.64 0.72 0.38 0.89 0.87 Financial Policy Ratios 88.76 98.05 95.39 95.47 90.75 Loan / Deposit (%) Liabilities / Shareholders’ Equity 12.72 11.84 11.68 11.99 13.04 (times) Shareholders’ Equity / Assets (%) 7.29 7.79 7.89 7.70 7.11 Capital Adequacy Ratios 10.05 9.70 11.41 10.88 8.50 BIS Tier 1 Capital Ratio (%) BIS Total Capital Ratio (%) 15.92 13.08 15.16 14.03 12.10 Asset Quality Ratios * Earning Assets / Total Assets (%) 94.21 93.68 94.14 94.51 95.17 NPLs / Loans 6.49 7.63 9.53 9.22 10.32 Allowance for Doubtful Accounts / Total Loans (%) 3.73 3.37 3.85 4.27 4.60 Allowance for Doubtful Accounts / NPLs (%) 47.44 41.55 38.43 44.06 42.12

Other Items NPLs (million baht) Book Value per Share (baht) P/E Ratio (times) Price per Book Value (times) No. of Employees (persons) * No. of Branches (branches) * Note: *KTB data only

84,920 85,448 96,164 89,692 97,635 10.06 9.26 8.55 8.29 7.39 9.33 4.10 17.64 9.22 9.63 1.01 0.42 1.18 1.46 1.50 17,477 16,689 16,110 15,445 14,952 884 832 762 695 643

(11.86) 90.33 (57.53)

(0.62) (11.14) 8.64 8.30

7.22 3.14

4.72 6.25

4.31 9.64

3.59 9.19

2.56

16.29

(8.14) (18.43) 12.18 9.00 3.30 8.09

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Risk Factors and Risk Management Loan Origination and Credit Scoring application

Risk management was a crucial mechanism that enabled the Bank’s operating performance in 2009 to remain at a good level despite the impact from the world economic crisis on the Thai economy. The Bank follows COSO framework in managing risk within the enterprise. The key principle is to link risk management process to the Bank’s strategic plan and business opportunities thus integrating risk management to cover the whole organization. In 2009, the Bank drew up the annual risk map together with key risk indicators (KRIs), risk appetite and risk tolerance embracing the key risks namely strategic risk, operational risk, financial risk and compliance risk. To manage risk in key areas, the Bank has reviewed and enhanced the processes and tools concerned for greater efficiency and in preparation for the increasingly severe competition to come under the changing economic and financial environment. Credit risk management especially will have considerable effect on major income and capital funds position. Hence, the Bank has continuously introduced state-of-the-art tools such as

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to be used in retail loan approval and stress testing upon impact from key risk factors. Besides, the Bank attaches significance to creation of awareness and understanding that risk management involves all staff members and it is also their responsibility. Therefore, the Bank has incorporated a risk management course for staff orientation, both at director and new comer levels, to have knowledge of the Bank’s risk management while communicating across-the-board continuously the awareness of this issue. Such effort has enabled all the business units to efficiently attain the Bank’s targets in line with management under the good corporate governance principles that would result in a steady and sustainable growth. The Bank in 2009 attached increasing importance to risk management of the financial business group totaling 11 companies in the business of credit extension, securities, non-life insurance and supporting business. Policies and guidelines for risk management of such financial business group were already formulated in line with the Bank of Thailand’s notification on consolidated supervision requirement. The Bank oversight that its financial business group of companies had in place risk management covering the five key areas namely strategic, credit, market, liquidity and operational risks. Moreover, the Bank organized training courses for the staff of the financial business group for actual practical implementation and assessment of overall risk management of this group will be done at least once a year.


Risk Management Structure

efficient analytical tools in setting interest rates, The Bank assigns respective committees returns on loans and deposits as well as investment namely the Board of Directors, the Board of in assets to be in consonance with the Bank’s Executive Directors, the Audit Committee and the liquidity management. Meeting is called at least once Risk Management Committee to be in charge of a month with submission of minute/reports to the overseeing the risk management policy. Moreover, Board of Executive Directors/Board of Directors for several other sub-committees comprising senior information and/or decision. executives are appointed to formulate policies and Group Credit Committee (GCC) approves strategies on risk management. These include: credit line application, debt restructuring, accept Executive Committee (Exec.comm.) mainly transfer of collateral and buy back property under responsible for formulating the Bank’s policies and mortgage from auction sale. GCC meets at least once strategic plans including credit policy as well as a week. liquidity management, investment in money market Credit Scrutiny Committee scrutinizes the and capital markets, interest rates and exchange rates, product development and general operation. tasks in the authority of the Board of Executive Directors and the Board of Directors such as Meeting is called regularly every week. credit line application, debt restructuring, foreclosed Investment Committee (IC) considers investment property trading, underwriting and/or investment framework for equity securities and debt securities, in debt securities except those issued by the approving investment within the limit designated by government, the Bank of Thailand and state the Board of Directors, scrutinizing investments exceeding enterprises guaranteed by the Ministry of Finance. IC authority for submission to the Board of Executive Committee authority includes approval of credit line Directors and/or the Board of Directors for approval, application, debt restructuring, credit transactions overseeing investment management including risk and other assignments from the President. Meeting control in instruments trading under investment policy is called at least once a week. and target. IC meets at least once a month. Regarding risk management of the financial Assets and Liabilities Management Committee business group, the Risk Management Committee (ALCO) responsible for formulating strategies on has formulated risk management policy for such managing assets, liabilities and capital funds to suit group along the guidelines for consolidated different surrounding factors that affect the Bank’s supervision of the Bank of Thailand including regular liquidity and profit making. ALCO considers introducing control, monitoring and assessment of risk of the

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proved to be quite satisfactory. Measures in strategic risk management included: 1. Management of strategic risk in conformity with the Bank of Thailand’s examination guidelines and the guidance of the State Enterprise Policy Office on enterprise management governing risk management. 2. The strategic planning process has Risk Management Principles To ensure efficient risk management, the Bank comprehensive procedural steps with active participation of the Directors and top executives in has set up the following principles: establishing the strategic plan. A process is also in place to communicate and put the strategic plan into 1. Strategic Risk Strategic risk arises from inappropriate actual practices by each business unit for the utmost formulation of strategic plan and operation plan, and efficiency. 3. In formulating the strategy, relevant factors implementation of such plans not in line with internal factors and external environment thus impacting including internal and external environment are taken into consideration. In depth information such as income, capital funds and survival of business. In 2009, the economic risk factors had more comparative data of competitors, customer satisfaction negative effect on the Bank’s operation than in the survey and SWOT analysis have been used for the prior year as the sub-prime crisis occurring in the purpose. 4. Operating performance is periodically United States since year-end 2008 had expanded to various countries worldwide including Thailand. monitored against the set targets with adjustment to The export sector contracted abruptly from diminishing suit the changing business environment ensuring that demand of the key markets negatively impacted all the operating results will attain their goals. manufacturing sector and employment in several major industries. Meanwhile, the prolonged internal 2. Credit Risk political conflict and A/H1N1 flu outbreak caused a Credit risk refers to the risk stemming from the slump in domestic demand and consumption as well as counterparty’s failure to comply with the conditions investment resulting in the Bank having to confront and covenants in the agreement agreed upon strategic risk. However, the Bank continuously and resulting in non-repayment of the debt which might regularly monitored the situation and established incur losses to the Bank. guidelines for coping with any incidents that The Bank has realized the importance of credit occurred. As a result, the Bank’s operation still risk management at customer and portfolio levels. group to be at acceptable levels. At the same time, the Audit Committee oversees and monitors their performance to ensure the compliance with the group’s risk management policy as well as reviewing their financial reports for accuracy and adequacy.

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The credit risk management system comprises key processes namely risk identification, risk assessment, risk monitoring and control and risk reporting. During 2009, the Bank enhanced the efficiency of credit risk management through reviewing and revising the credit risk management policy and manual as well as processes relating to the Bank’s credit extension. Such enhancement included improvement of credit processes, credit policy and tools for retail clients through introduction of loan origination and credit scoring. In addition, stress testing is also conducted to meet the requirement of the Internal Capital Adequacy Assessment Process (ICAAP). Risk management results are monitored to control credit risk to be in accordance with its credit risk management plan and the Bank of Thailand’s credit risk oversight policy as well as the Basel II requirement. • Credit Concentration Risk The Bank has the policy to oversee credit concentration risk to be in compliance with the regulators’ requirement for corporate customer supervision. Apart from this, the Bank has set sector limit for each industry in order to diversify risk and control any significant credit concentration with close monitoring on such risk. As at year-end 2009, there was no significant credit concentration in any particular industry or individual clients. The Bank’s top-ten customers comprised government agencies, state enterprises and corporate businesses with strong financial standing. Most of the credits extended were diversified among manufacturing and

commercial industries, public utility and services, housing, real estate and construction. • Asset Quality Risk The Bank managed the asset quality of new borrowers in 2009 with prudent and preventive measures under the credit policy and efficient credit risk indicator. The Bank also required close monitoring after approval of credit and regular checks on the clients’ credit quality to prevent incoming problem loans. Besides, the Bank gave importance to reduction of non-performing loans (NPLs) under the NPL expedition scheme for all debtors through troubled debt restructuring, expedition of cases and execution with problem debtors, aggressive NPA sale planning as well as enhancement of NPL monitoring and implementation to enable the NPL reduction plan and NPA sale achieve the set targets. Hence, total NPLs in 2009 declined with net NPLs amounting to Baht 52,209 million, down Baht 6,604 million from the prior year-end or a drop of as much as 11.23 percent thus resulting in the net NPLs/Loans ratio to decrease to 4.11 percent from 5.42 percent as at previous year-end. • Collateral Value Impairment Risk In general lending, collaterals are required such as bank deposits, bills of exchange, government & state enterprise bonds, unencumbered property, registered machinery, leasehold rights and warehouse stock. Collateral mostly takes the form of immovable property that may be adversely affected by volatile prices in the

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markets. The Bank thus required stringent control of collateral value appraisal and close monitoring of any changes in collateral value. At the same time, closely coordinates with internal and external business units to constantly update collateral value to meet the requirement prescribed by the Bank of Thailand with required provisioning under the IAS 39. • Counterparty Limit Risk The Bank sets the counterparty limit to control risk that may arise from the counterparty’s failure to make payment or submit the securities to the Bank as agreed upon. Hence, close monitoring and management are required not to exceed the set limit. 3. Market Risk Market risk arises from changes in financial securities value as a result of changes of market factors such as volatility of interest rates, exchange rates and equity securities prices with negative impact on income and capital funds. Hence, the Bank has designated the Market Risk Management Department, an independent unit from the front office to be responsible for market risk management enabling efficient and transparent oversights. • Risk affecting the Trading Book VaR, a statistical tool, is used in assessing market risk. VaR equivalents to the maximum value that the Bank will incur loss upon changes of risk factors at 99 percent confidence level during one-day holding. Besides, the Bank also sets

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sensitivity and risk factor of each type as risk limit for risk control such as Delta value and PV01. Overview of the Bank’s market risk in 2009 was at a low level and within the acceptable risk limit. Risk on positions in the trading book is classified as follows: (1) Interest Rate Risk During 2009 overall interest rates did not fluctuate much since interest rates of major countries did not change. For example, US Federal Reserve retained the Fed Funds Rate at 0 – 0.25 percent throughout the year. Meanwhile, Thailand’s policy interest rate (repo rate) remained at 1.25 percent since April 2009 and inflation rate as anticipated. Hence, interest rate risk in 2009 was rather low and within acceptable level. (2) Foreign Exchange Rate Risk The Bank controlled its daily foreign exchange trading relating to spot and forward transactions as well as options. The Baht in 2009 fluctuated less than in 2008 despite trend of appreciation in the latter half of the year. Foreign exchange risk of the Bank in 2009 was thus rather low and within the acceptable level. (3) Price Risk The stock market was rather fluctuating and slumping in early 2009 in continuation from late 2008 after being impacted by the world economic crisis. Nevertheless, the continuing rise of the SET index in the second half of 2009 yielded positive results. Hence, risk arising from equity prices in 2009 was rather low and within the acceptable level. Additionally, there were other market risk management measures for transactions in the trading book which were currently in used and still effective, namely:


(1) Review market risk management policy to be in line with the Bank’s strategy and guidelines for market risk supervision prescribed by the Bank of Thailand. (2) Product program for handling derivative transactions in line with the Bank’s strategy and guidelines for market risk supervision prescribed by the BOT. (3) Set up threshold limit for market risk as determined by the Board of Directors to control risk exposure. Authority is also delegated to respective committees to oversee the issues as deemed appropriate. (4) Report market risk to the Department head daily and to the Group Executives and the Risk Management Committee on monthly basis. (5) Conduct stress testing under simulated scenario required by the Bank of Thailand for the Financial Sector Assessment Program (FSAP) and under Bank’s own scenario as deemed appropriate. Stress testing report is submitted monthly to the Risk Management Committee. (6) Assess mark-to-market values for transactions in the trading book at day-end to see the impact from fluctuations of interest rates, foreign exchange rates and stock prices that might have impact on the Bank’s income and capital funds. (7) Communicate to directors, executives and staff members understanding and awareness of market risk so they will realize the importance of risk prevention as prescribed in the market risk management policy. (8) Develop personnel through training to enhance

their knowledge and competence specifically in risk management which will help boost the efficiency of market risk management. • Risk affecting the Banking Book Interest rate risk is the main risk impacting the banking book position causing losses to income and economic value of the Bank. Such interest rate risk could arise both from positions in and off-balance sheets of the banking book. In 2009, the overall interest rate risk in the banking book was still within the approved limit and at acceptable levels. Measures used in the market risk management for transactions in the banking book are: (1) Review policy on interest rate risk management in the banking book to be in consonance with the guidelines for curbing the interest rate risk in the banking book of financial institutions and Pillar II guideline of the Bank of Thailand. (2) Set up interest rate risk limit in the banking book as approved by the Board of Directors in order to control such risk to be within acceptable levels. (3) Determine the risk management process requiring regular monitoring and assessment of interest rate risk in the banking book. Impact on net interest income and economic value from interest rate volatility is considered with monthly reports to the Risk Management Committee. (4) Conduct Stress testing to assess interest rate risk in the banking book under supervisory scenario prescribed by the Bank of Thailand. Stress testing results are reported to the Risk Management Committee on quarterly basis.

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(5) Review and enhance the Contingency Liquidity risk refers to the risk of being unable to Funding Plan to be in line with the liquidity risk repay the liabilities or contingencies upon maturity management policy and the changing environment. since the assets cannot be liquidated into cash or 5. Operational Risk sufficient funds cannot be acquired or could be Operational risk stems from lack of proper acquired but at an unacceptable cost. All these may have negative impact on the Bank’s current and supervision and control or lack of good corporate future income. In 2009, overall liquidity risk was within governance. The main causes of such risk include the approved limit and at acceptable levels reflecting internal operation process, personnel, work system or from various indicators such as net liquid asset to net external incidents including legal risk but excluding liquidity ratio and excess liquidity at day-end with strategic risk and reputation risk. The Bank manages operational risk in average not below the required limit. Measures and tools used in liquidity risk accordance with the prescribed process comprising identification, assessment, control and monitoring of management are as follows: (1) Review the liquidity risk management policy risk. All business units are required to conduct risk to be in line with the Bank of Thailand’s guidelines control self-assessment once a year by identifying for liquidity risk management by financial institutions and risks relating to their own operation and assessing requirement for capital funds supervision under Pillar II. them to see the level of risk with respect to impact (2) Set the liquidity risk limit as approved by the and frequency of risk occurring. If risk level is high, Board of Directors so as to control such risk not to appropriate measures must be taken to mitigate or reduce such risk. Apart from this, the Bank efficiently exceed the acceptable level. (3) Establish liquidity risk management process stores the loss event data incurred from operational with due consideration of liquidity trends from risk through KTB OpRisk Monitor system which estimates of liquidity position of the Bank and assess requires all business units to report losses the risk from the net liquid assets to net liquidity ratio immediately upon finding. The loss data are classified to see the adequacy of liquid assets used in by eight business lines and by seven loss event accommodating demand for use of short term types. Such data will then be compiled, analyzed and capital. Reports are submitted regularly to the Risk presented to senior management and the Risk Management Committee, executives and related Management Committee regularly every month so that they will be informed of the operating results and business units. (4) Regularly conduct stress testing to assess the problems encountered. The loss data reported liquidity risk under the BOT’s supervisory scenario will be reconciled with concerned business units to and report the test results to the Risk Management ensure that major losses of the Bank have been completely and properly managed. Committee every quarter.

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4. Liquidity Risk


Regarding risk factors arising from external incidents, the Bank has prepared the Business Continuity Plan and Emergency Plan to ensure that in time of serious catastrophe or disaster the Bank will be able to recover its services within appropriate time frame. External incidents already covered by business continuity plans are natural catastrophe, pandemic, sabotage and riot. The outbreak of A/H1N1 influenza in early 2009 the Bank was well prepared with medical equipment and communication to all staff. All these enabled the Bank to cope with the incident and not to face personnel shortage in daily operation. Moreover, other important business activities also have their business continuity plans drawn up and require testing at least twice a year. All the loss data resulting from operational risk have been used to supplement the Bank’s risk control self-assessment so as to find appropriate preventive measures against any recurrence of such losses. Besides, the Bank regularly monitors and reports on risk through the use of Operational Key Risk Indicator (KRI), a tool that pre-warns the severity of risk factors at a certain time period. If the risk lies at highly severe level, concerned business units must promptly seek control measure to prevent such risk from actual occurrence.

6. Capital Adequacy Risk

Capital adequacy risk refers to the risk of having insufficient capital funds for business expansion, unexpected losses and the changing regulations and uncontrollable environment, impacting banks stability and operation. The Bank of Thailand has thus given great importance to stringent supervision

of capital adequacy of financial institutions through adoption of Basel II requirement which took effect as of year-end 2008 to enhance risk management process and capital funds management of all commercial banks. In this connection, the Bank has adopted the Standardized Approach (SA) for capital funds calculation to accommodate credit risk, market risk and operational risk. Capital funds calculated under Basel II requirement, first phase for data as at December 31, 2008 were submitted to the Bank of Thailand in January 2009 and on a monthly basis after that. As at December 31, 2009 the CAR value was a high of 15.92 percent compared with 8.50 percent the minimum requirement prescribed by the Bank of Thailand. This reflected adequate capital funds to accommodate risks and business expansion. Moreover, such ratio was within the framework of efficient capital funds management and in line with the capital funds management guidelines of the Bank.

Preparedness for Basel II

The Bank of Thailand has set forth plan for enforcement of Basel II framework for financial institutions comprising the three pillars (Pillars I – III). Krung Thai Bank has prepared and implemented the work plan as follow: (1) Pillar I: For minimum regulatory capital requirement the Bank has developed, installed and used the Standardized Approach (SA) application for calculating capital funds to cater for credit risk, market risk and operational risk with data as at December 31, 2008 as scheduled by the Bank of Thailand.

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(2) Pillar II: In 2009, the Bank enhanced its risk management system and the Internal Capital Adequacy Assessment Process (ICAAP) covering significant risks of all types through formulation of ICAAP policy and stress testing policy already approved by the Board of Directors. In addition, the Bank has established an Action Plan as preparedness for implementation of Pillar II requirement and submitted to the Bank of Thailand as scheduled by December 2009 thus the Bank is well prepared for actual enforcement starting from December 2010 onward. In assessing risk and capital adequacy under Pillar II, the Bank has assessed all the significant risks including risks required under Pillar I namely credit risk, market risk and operational risk as well as other risks still uncovered by Pillar I such as credit concentration risk, interest rate risk affecting the banking book, liquidity risk, strategic risk and reputation risk. Moreover, preparedness has been made in other parts such as 3-year capital funds

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management plan covering both in normal and critical situations, capital funds management strategy, capital funds building plan to be used in management and maintenance of the Bank’s capital funds and stress testing guidance. These are on-going operation from 2009 to year-end 2010 for preparation of actual practice of ICAAP process and ICAAP reporting within the first quarter of each year. The Bank will submit the first report within the first quarter of 2011 as scheduled by BOT. (3) Pillar III: The Bank formulated the policy on disclosure of information of capital funds under Pillar III and already approved by the Board of Directors in 2009. The first information disclosure was in September 2009 as scheduled by BOT via the Bank’s website for transparency in disclosure of capital funds information and self-risk assessment so that the general public received accurate and complete information.


Report of the Corporate Governance and Social Responsibility Committee Throughout the past three years (2006 – 2008) that Krung Thai Bank has campaigned for corporate governance, it is now a part of the organization culture. We could say that this is a great success as evidenced by the good response from customers and the many awards received from various agencies. We do not stop here yet and in 2009 we put it into policy that our wholly owned subsidiaries adopt corporate governance in their management as well. Furthermore, the Bank determines to enhance its potential and competence in corporate social responsibility (CSR) through set of clear guidelines. To this end, the Bank has instilled in its employees the importance of social and environmental responsibility under the concept “Building Intellectual Capital” which is in line with our mission. Together with the full cooperation from our business alliances, we believe that we could develop society and environment on a continuous and sustainable basis. With such dedicated operation, the Bank received the following awards for corporate governance and social and environmental responsibility: SOE Award for Distinctive State Enterprise Board of directors awarded by the State Enterprise Policy Office, Ministry of Finance. CSER Award for distinctive performance in corporate social and environmental responsibility awarded by the State Enterprise Policy Office, Ministry of Finance. Quality Assurance Award for distinctive services awarded by the State Enterprise Policy Office, Ministry of Finance. SET Awards 2009 for distinctive corporate governance awarded by the Stock Exchange of Thailand in conjunction with the Money & Banking Magazine. “Excellent” assessment for Ordinary General Meeting by the Securities and Exchange Commission in conjunction with Thai Investors Association and the Thai Listed Companies Association. Corporate Governance Report of Thai Listed Companies 2009 Award, five-star ranking from the Thai Institute of Directors Association. Board of the Year Award - “Excellent” for 2008/2009 from the National Corporate Governance Committee. These awards truly reflected our management policy in observing corporate governance and social and environmental responsibility which we will continue to adhere to. (Mr. Santi Vilassakdanont) Chairman of the Corporate Governance and Social Responsibility Committee January 8, 2010 Annual Report 2009 Krung Thai Bank Pcl.

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Report of the Nominating and Remuneration Committee The Nominating and Remuneration Committee has been assigned with responsibilities as prescribed by the Bank of Thailand, namely formulation of policies, requirements and approaches for recruiting candidates, assessing performance and fixing remunerations for the Directors, President and authorized personnel. The Nominating and Remuneration Committee has nominated qualified candidates as Directors, President and authorized executives taking into account their qualifications, knowledge, competence, skills, experience and versatile expertise as well as leadership, vision and attitude towards the Bank. This helps to create good corporate governance which will be beneficial to the Bank’s operation. Additionally, the Committee also considers the size and structure suitable for the Bank to ensure efficient and effective management in compliance with the regulatory requirement and in line with the changing environment. As regards to remunerations, the Committee takes into consideration responsibilities and performance of the candidates, the overall operating performance of the Bank as well as remunerations competitive in the banking market. The Nominating and Remuneration Committee met 10 times in 2009. Recruitment and remuneration fixing has been approved by the Board of Directors. (Mr. Santi Vilassakdanont) Signing on behalf of Chairman of the Nominating and Remuneration Committee January 8, 2010

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Corporate Governance (CG) The Board of Directors has been fully aware of the importance of good corporate governance as it will help to build confidence to the shareholders, investors and all the stakeholders and contribute to the strong and sustainable growth of the Bank itself. Hence, the Board determined to carry out business supervision in accordance with the principles of good corporate governance and induce corporate governance culture to truly exist within the organization. The Board has designated the Corporate Governance and Social Responsibility Committee to formulate relevant policy and oversee the overall operation of the Bank to be in line with the good corporate governance principles including corporate social and environmental responsibility. Throughout 2009, the Bank was still determined to retain corporate governance culture within the enterprise on continuous basis. Furthermore, the Bank expedited the implementation of the project entitled KTB CG Group “Honest, Transparent and Ethical” for concrete and tangible results after signing an MOU with its subsidiaries in late 2008. The main purpose is to urge subsidiaries with 100 percent shareholding to draw up their corporate governance policy to serve as an operation framework that will enable the Bank’s business group to have a strong and sustainable growth. Apart from this, the Bank has also transferred its experience gained from its compliance with the good corporate governance principles and business operation with social and environmental responsibility to respective organizations and institutions. The Bank strongly believes that if all the segments of Thai society realize the importance of and willingly comply with the good corporate governance principles, our nation will steadily thrive on.

The determined and continued CG operation enabled the Bank in 2009 to be presented with awards of honor from several institutions. Among them was the SOE Award for distinctive state enterprise Board of Directors and for distinctive performance in CSR, the Top Corporate Governance Report Awards and being one of the eight companies nominated to win the Outstanding CSR Award.

Corporate Governance Policy

The Board of Directors has designated the Corporate Governance and Social Responsibility Committee to set forth action plan and measures, ensuring that the CG Policy is complied. In addition to assess performance outcome and to review such policy regularly as well as to update the guidelines in consonance with domestic and international practices gearing towards global standards. The Bank’s policy and guidelines was written since 2002 in accordance with the Stock Exchange of Thailand’s corporate governance practices. It comprises seven principles as follows: 1. Creation of long term value added: create sustainable value added. 2. Accountability: responsible for one’s commitment, action and decision. 3. Responsibility: perform assigned duties with utmost competence. 4. Promotion of best practices: provide services with good corporate governance and moral ethics. 5. Equitable treatment: give equitable and fair treatment to all stakeholders. 6. Transparency: show transparency in business operation. 7. Social and environmental awareness: aware of social and environmental responsibility issues.

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the shareholders meeting, the right to propose agenda in the shareholders meeting, the right to vote for the appointment of auditor and fixing of auditor fee, and the right to take part in decision-making of the Bank’s material issues such as approval of key activities affecting business direction, amendment to the Memorandum and the Articles of Association. Besides these basic rights, the Bank has established best practices to its shareholders. Included are shareholders’ right to receive news and information on operating performance, management policy and other key information through the easy access of the Bank’s website. Additionally, the Bank organized trips for shareholders to visit its business. 1.2 Shareholders Meeting The Bank gives great importance to the Ordinary General Meeting held once a year within four months after the end of the accounting period. In this regard, the Bank has fully observed Corporate Governance Principles set by the the principles of CG and the prescribed legal previsions allowing shareholders to propose the Stock Exchange of Thailand The Bank has fully complied with the principles agenda prior to the Annual Ordinary General of good corporate governance and all the five categories Meeting. All relevant information is posted on the set forth by the Stock Exchange of Thailand. The five Bank website: www.ktb.co.th/Investor Relations/ Shareholders Information/Invitation letter to the categories are: Shareholders Annual General Meeting about 30 days before the meeting date for shareholders to have 1. Shareholders’ Rights 1.1 Policy and Shareholders’ Rights Protection sufficient information and time prior to meeting and The Bank attaches importance to detailed agenda. The Bank will not add any important protection of shareholders’ rights and promotion of agenda unnotified in advance. In case of doubt, exercising such rights. The basic legal rights shareholders can still submit queries to the Directors comprise the right to buy, sell or transfer securities prior to the meeting via the website or mail directly to held, the right to receive dividend, the right to attend the Board of Directors. The Chairman of the Meeting

The above seven CG principles have been communicated to staffs at all levels through respective media. They are also well blended within the tasks that all business units must carry out to ensure that the Bank has managed its business in accordance with corporate governance framework. All the Directors are fully aware of their duties to conduct business for the Bank’s optimum benefit, oversee public disclosure of information while ensuring operational transparency, giving fair and equitable treatment to stakeholders, and adhering to social responsibility. All staff members perform their duties to the best of their ability and as what good citizens should do. Furthermore, the Bank has initiated projects to boost the education of Thai youth, to support local heritage, develop local communities and strengthen the economy continuously for the benefits of society (details can be seen at: www.ktb.co.th).

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will inform the shareholders of the rules of the meeting and the procedures of voting, allowing fair opportunities to present their opinions and inquire about any Bank’s matter. Chairman of the Board of Directors, President and all the relevant chairmen of the respective committees will attend to explain the operating performance and management policies and to answer any queries raised. The Bank held the Annual Ordinary General Meeting on April 17, 2009 attended by all the Directors and 12 Group Executives including CFO. Representatives from related organizations and institutions also attended as observers such as the Office of the Auditor General Thailand, Thai Investors Association, Thai Institute of Directors Association and Bank of Thailand. The Chairman of the Meeting gave equitable opportunities and time to all shareholders in exercising their rights to check the Bank’s operation, raise questions, or make recommendations. Those important questions and recommendations were recorded in minutes of the meeting and disclosed to shareholders on the Bank’s website within 30 days after the meeting date.

2. Equitable Treatment to Shareholders

2.1 Treatment of Minority Shareholders The Bank provides equitable and fair treatment to all shareholders whether they are institutional investors, foreign investors or minority, enabling them to enjoy equitable treatment in exercising their rights. In addition, the Bank allows them to nominate appropriate person to be elected as Director through the Nominating & Remuneration Committee 3 months before ending account period

on December 31. In 2009, four directors have completed their terms of office. Hence, during October 1 – December 31, 2008 the Bank requested minority shareholders and other groups of shareholders to submit in names of nominees with related qualifications. However, no eligible person was nominated (details are shown at www.ktb.co.th/ Investor Relations/Shareholders /Minutes of Meeting). 2.2 Attendance of General Meeting by Shareholder’s Proxy When shareholders cannot attend the general meeting, they can assign proxies and vote on their behalves. Proxy form and the proposed two Independent Directors were attached with the notice of meeting. Shareholders or proxies are urged to use voting ballots on every agenda items. 2.3 Preventive Measures for Misuse of Inside Information by Directors and Executives To eliminate conflict of interest and oversee that inside information is not misused for personal interest or that of others; the Bank has clearly stipulated respective measures written in the Code of Business Ethics and inform the rules and procedures on prevention of misusing inside information to the Directors, employees and related persons for acknowledgement through various Bank channels on regular basis. For transparency and verification, the Bank has shown information on Bank Securities Holdings by Directors and Senior Executives and information on Directorship of Directors and Senior Executives in the Bank, subsidiaries, associated

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companies and affiliated companies on pages 87-89 in accordance with the requirment of regulator such as Bank of Thailand, Office of Securities and Exchange Commission, and the Stock Exchange of Thailand.

3. Consideration for Stakeholders

3.1 Treatment of Stakeholders The Bank recognized the rights and roles of various groups of stakeholders, internally or externally, and has included it as an integral part in the Code of Conduct disclosed through respective media, such as the Bank intranet and website. It is also published as manuals distributed to all business units for strict compliance which could enable the Bank to have a sustainable growth. The practice guidelines are summarized below: Shareholders The Bank is determined to conduct business with prudence and transparency, making profits grow continuously and steadily, boosting its competitiveness and enhance value to the shareholders in the long run. Customers It is the Bank’s determination to serve all customers willingly and eagerly and with equality and fairness. All staffs are ready to assist customers with their problems, finding them appropriate solutions and keeping the confidentiality of their information except when it is stipulated by law or with customer’s written consent. Creditors The Bank has the policy to treat creditors of all groups including depositors, debenture holders and other creditors with equitability and fairness on

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the basis of fair returns to both parties strictly under the agreements or covenants agreed upon. In case of non-compliance with any one of covenants, the Bank will promptly notify the creditor to jointly consider the issue and seek remedy. Moreover, the Bank regularly prepares financial reports that are accurate, complete and timely for submission to the creditors. Trading Partners The Bank required its employees to strictly adhere to the Bank’s optimum interest regardless of self-interest or interest of related kin. Employees must provide accurate and complete information that will not impede the buyers’ or sellers’ decisions. Importantly, employees should avoid accepting gifts or rewards from buyers or sellers as well as attending private functions hosted by them so as to avoid any accusations or render special assistance in return on later occasion. Business Alliances The Bank is firmly determined to comply with the agreements made with its business partners and to provide assistance for mutual business benefits. Competitors The Bank has no policy to falsify or distort competitors’ facts. At the same time, the Bank avoids making deals or discussion with employees of other agencies or financial institutions on the issues concerning geographical locations, marketing, customer segmentation, interest rates, fees and commissions including products, services or business plans that may have negative impact on the Bank’s business competition.


Social and Environmental Responsibility Relating to corporate social and environmental responsibility (CSR), the Bank focuses on creating intellectual capital in four dimensions: education, art and culture, society and environment, and sports. CSR implementation has been under four principles namely 1) continuous operation 2) inter-project linking 3) Bank-wide staff participation and 4) networking of governmental and private organizations concerned. Employees Realizing the significance of human resources management and development, the Bank gives employees of all levels opportunities to advance in their career under fair merit system coupled with oversight their salary, remuneration, welfare and other benefits to be comparable to general leading companies. During 2009, the Bank had added welfare to upgrade their quality of life such as child education allowance from kindergarten or equivalent up to bachelor degree, both for government and private educational institutions, extension of credit limit and repayment period for welfare housing loans and providing employees and families with reasonable-priced welfare resorts. Furthermore, the Bank increases employees’ competence through learning development and training so that they will be ready for business competition. Scholarships locally and abroad, have been granted continuously to employees. On working ambiance, the Bank has provided an environment favorable to job performance with occupational safety complying with legal standards and those prescribed by the Bank. Each business unit is required to

prepare a business continuity plan both for normal and critical situations. Additionally, the Bank urged employees to respect and honor one another along the guidelines stipulated in the personnel code of conduct. Government Sector The Bank supported government’s operations and complied with the regulator’s requirements and policies in conjunction with promotion of collaboration in respective activities of governmental agencies so as to build national stability and growth. 3.2 Stakeholders’ Participation The Bank provides stakeholders with opportunities to participate in various activities through their own rights such as shareholders’ rights to express opinions independently in the Annual Ordinary General Meeting or propose agenda items or nominate appropriate persons for Directors. Other activities included activities in honor of His Majesty the King’s Birthday, merit-making on the anniversary of Bank’s Foundation day and Songkran Day activities. Furthermore, the Bank fully supported stakeholders, as well as executives, employees, subsidiaries, customers, students, teachers, instructors and interested public, to participate in respective corporate social and environmental responsibility (CSR) activities of the Bank such as - Krung Thai Dream Schools near Home project through giving financial support to respective schools across the country for development of IT and science studies.

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- Krung Thai Young Enterprise project through competition of high school students’ business plans for supplementing their skills and paving the way for future careers. - Krung Thai White Seedlings project encouraging university students nationwide to compete in implementing business schemes with ethical conduct under sufficiency economy philosophy. - KTB Lecture Series project providing knowledge to customers, employees and interested public through discussions on topics of interest including economics, finance, innovation, art and culture. 3.3 Whistle Blowing & Complaints It is the Bank’s policy to enable stakeholders such as customers and general public to lodge their complaints directly to the Bank or express opinions through various channels as follows: - KTB Call Center 1551 - http://www.ktb.co.th or http://www.contactcenter.ktb.co.th - E-mail: call@contactcenter.ktb.co.th - Fax: +662 255-9391 to 3 - Customer Satisfaction questionnaire under Service Quality Assurance project - Corporate Secretary. Krung Thai Bank Pcl. Office of the Board of Directors & Shareholders 35 Nana Nua Bldg, 8th Fl., Sukhumvit Rd., Klong Toey Nua Subdistrict, Wattana District, Bangkok 10110

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Bank employees are able to lodge complaints or opinions directly to the Board of Directors and the Management via e-mail in the intranet system.

4. Disclosure of Information and Transparency

4.1 Disclosure of Information as prescribed in Listed Company Requirements The Bank oversees that key information, financial and performance related data are disclosed accurately, completely, transparently, comprehensively and timely as prescribed in the requirements of the Office of Securities and Exchange Commission of Thailand and those of the Stock Exchange of Thailand. Apart from annual disclosure (Form 56-1) and the Annual Report (Form 56-2), most of the information is posted on the Bank’s website in Thai and English with regular updates, thus helping shareholders, customers and interested persons to access the information with ease, equality and reliability. Key information disclosed by the Bank included performance of the Directors over the year, Directors’ training records, roles of the Boards and sub-committees, number of meetings called, number of attendance of each Director and opinions from performing their duty as well as remuneration policy and remunerations of Directors and senior executives that reflect their roles and responsibilities, shareholding structure, business operation and targets, operating performance, business ethics and corporate governance & social and environmental responsibility policy.


4.2 Disclosure of Information under Official Information Act, B.E.2540 (1997) As a state enterprise under the Ministry of Finance and a state agency under the Official Information Act, B.E.2540 (1997), the Bank has disclosed information to the general public in compliance with the Act completely and continuously for the people’s benefit. Implementation of this matter is summarized below: 4.2.1 Information Dissemination through the IT System The Bank set a Quick Link from the website www.ktb.co.th to webpage e-Procurement to provide interested public with news and information on procurement. In the webpage, all the information on procurements with individuals and external agencies from February 2003 onwards is depicted. In 2009, the Bank still publicized procurement notices on this website including price inquiry, bidding, cancellations, announcements of winners and auction. In addition to viewing information on procurement, interested persons are able to offer sale of goods or services through such system after having registered and complied with terms and conditions as stipulated by the Bank. 4.2.2 Disclosure of Bank and Customers’ Information to Requesting Agencies and Outsiders Government agencies and private enterprises are able to request for verification of information under the following terms and conditions: 1) Agencies with legal authority to request information, documentary evidences for

verification or requesting Bank employees to testify in respective courts include court of law, Legal Execution Department, Revenue Department, Special Investigation Department, Royal Thai Police, Office of the Consumer Protection Board, Social Security Office, Office of the Securities and Exchange Commission of Thailand, Office of the National Counter Corruption Commission (NCCC), Anti-Money Laundering Office (AMLO), Office of the Narcotics Control Board, Office of the Auditor General Thailand, Ministry of Finance Inspector-General, the Office of the Ombudsman Inspector-General and the Bank of Thailand. Such agencies could request information and documentary evidences concerning application for account opening, transaction records of the account, deposit and withdrawal information and deposit account balances. 2) As for government agencies, private bodies and general public with no legal authority of information verification most of which request personal information verification, the Bank is unable to disclose requested information. As stipulated in the Official Information Act, B.E. 2540 (1997), Section 24 government agencies are unable to disclose personal information under their supervision to other government agencies or others without prior written consent from the owner of such information. 4.3 Performance of the Board of Directors and Respective Committees 4.3.1 Name, Biography, Responsibility and Term of Office of Directors on Board Brief biography of the Directors and Executive Officers on board is shown on pages 25 - 33

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and scope of authority and list of members on various committees is shown in Shareholding and Management Structure on pages 67-80. 4.3.2 Remunerations for the Board of Directors and Executive Officers The Bank structures its policy on remunerations fairly and reasonably with the reviewing of the Nominating and Remuneration Committee. The appropriateness and the consonance of the Directors’ responsibilities and financial standing of the Bank comparable to those of the same level of business are taken into consideration and must be in accordance with the resolution passed by the shareholders meeting. Remunerations are classified into four parts as follows (the same rate as 2008): 1) Remuneration in capacity as Director at the rate of Baht 50,000 per month. 2) Ex-officio remuneration: • Chairman of the Board of Directors at the rate of Baht 130,000 per month. • Vice Chairman at the rate of Baht 30,000 per month. • Chairman of the Board of Executive Directors, Chairman of the Audit Committee, Chairman of the Nominating and Remuneration Committee, Chairman of the Corporate Governance & Social Responsibility and Chairman of the Risk Management Committee at the rate of Baht 30,000 per month.

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3) Meeting honorarium paid in accordance with number of attendance at the rate of Baht 30,000 per meeting. 4) Gratuity payment to Directors is paid on the following conditions: • the Bank makes a profit from the business and • the Bank pays dividend to shareholders. At the 16th Annual Ordinary General Meeting on April 17, 2009, the following remunerations were approved for the Board of Directors comprising remunerations for attending the Board meetings in 2009 and gratuity for Directors in 2008. Remunerations for the Board of Directors in 2009 In 2009 the Bank paid remunerations in cash to the Board of Directors, ex-officio remuneration and meeting honorarium totaling Baht 27,825,806.45 broken down into: 1) Remuneration for the Board of Directors a total of Baht 17,319,032.26. 2) Remuneration for the Board of Executive Directors Baht 6,210,000, the Audit Committee Baht 1,440,000, the Nominating and Remuneration Committee Baht 1,342,258.06, the Corporate Governance & Social Responsibility Committee Baht 1,440,000 and the Risk Management Committee Baht 74,516.13 totaling Baht 10,506,774.19 with details are as follows:


Baht

Remuneration in Cash Board of Executive Directors

Name of Director

Board of Directors

1. Dr. Sathit Limpongpan 2. Dr. Chaiyawat Wibulswasdi 3. Mr. Aswin Kongsiri 4. Mr. Santi Vilassakdanont 5. Mr.Pachara Yutidhammadamrong 6. Dr. Jamlong Atikul 7. Mr. Visut Montrivat 8. Mr. Dusit Nontanakorn 9. Mr. Supachai Jongsiri 10. Mr. Nontigorn Kanchanachitra 11. Mr. Apisak Tantivorawong

1,434,193.55 1,740,000.00 1,290,000.00 1,290,000.00 1,380,000.00 1,380,000.00 1,380,000.00 1,380,000.00 621,935.48 12,903.23 1,380,000.00

Corporate Nominating & Governance & Remuneration Social Committee* Responsibility Committee

Audit Committee

1,890,000.00 1,320,000.00 1,560,000.00 1,440,000.00

330,000.00 720,000.00 360,000.00 360,000.00 120,000.00

Risk Management Committee

660,000.00

44,516.13

30,000.00

90,000.00

Directors resigned during the year 1. Mr. Suparut Kawatkul

1,177,741.94

(resigned on May 22, 2009)

2. Mr. Suri

Buakhom

728,064.52

210,000.00

180,000.00

3. Dr. Pichit Likitkijsomboon 787,096.77

210,000.00

682,258.06

300,000.00

(completed 65 years old on Jul 5, 2009) (resigned on Jul 24, 2009)

4. Mr. Sima

Simananta

(completed 65 years old on Dec 23, 2009)

1,337,096.77

Total remuneration according to 1) 17,319,032.26 6,210,000.00 1,440,000.00 1,342,258.06 1,440,000.00 74,516.13 Total remuneration according to 2) Grand total according to 2) 10,506,774.19 Grand total 1) and 2) 27,825,806.45 Note: * Meeting honorarium one more time in 2008 of the Nominating and Remuneration Committee has been reimbursed

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Gratuity payment to Directors in 2008

The Board of Directors allocated a total of Baht 24,120,000 as gratuity for Directors in 2008 as follows: Baht

Name of Director 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13.

Mr. Suparut Kawatkul Dr. Chaiyawat Wibulswasdi Mr. Aswin Kongsiri Mr. Santi Vilassakdanont Mr. Suri Buakhom Mr. Pachara Yutidhammadamrong Mr. Sima Simananta Dr. Jamlong Atikul Mr. Visut Montrivat Mr. Dusit Nontanakorn Dr. Pichit Likitkijsomboon Mr. Apisak Tantivorawong Mrs. Tanya Sirivedhin

Total

During 2009, the Bank paid a total of Baht 150,087,000 as salary, business unit allowance and special incentives to the President and 14 Group Managing Directors. In making such payment, the Bank did not pay its matching fund into the provident fund. As for remunerations for 37 Sector Directors, the Bank paid a total of Baht 118,804,306.30 as salary, business unit allowance, special incentives, child allowance, child education allowance, housing allowance and its provident fund. 4.3.3 Performance of the Board of Directors in 2009 All the prestigious awards presented to the Bank truly reflected the Board’s great attention and devotion to their performance of task to the best of their ability. Such awards also showed the strong

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Gratuity

2,621,894.86 2,330,573.21 2,039,251.56 2,039,251.56 1,747,929.91 1,915,081.68 2,039,251.56 2,039,251.56 1,747,929.91 1,747,929.91 1,166,082.56 2,039,251.56 646,320.16 24,120,000.00 collaboration and effort of all the executives and bank employees enabling the Bank to achieve the targets of its mission. Among the awards of honor were the SOE Award for distinctive State Enterprise Board of Directors and Corporate Governance Report of Thai Listed Company 5-Star Award presented to the Bank for two years running, the SET Awards 2009 in the category of Outstanding Corporate Governance Report as well as the Banker Awards 2009 where Krung Thai Bank had the prestige of being the only one Bank in Thailand that was selected as Bank of the Year in Thailand 2009. Performance of each committee is shown in details in the Report of the Corporate Governance and Social Responsibility Committee, page 111, Report of the Nominating and Remuneration Committee page 112 and Report of the Audit Committee, page 130.


4.4 Quality of Financial Statements The Board of Directors attaches the importance to and takes responsibility for the consolidated financial statements of the Bank and subsidiaries including financial information in the Annual Report. Such financial statements are prepared in accordance with the accounting standards and generally accepted accounting principles through the use of appropriate accounting policy with prudence, accuracy and completeness so as to reflect the real operating performance of the Bank. Operating performance and key information are disclosed transparently and adequately through continuous and timely reports to the Stock Exchange of Thailand for the benefit of shareholders and general investors. Apart from this, the Board has appointed the Audit Committee comprising independent directors with expertise and experience in this field to oversee and

Type of Call

One-on-One Meeting & Conference Call Analyst Meeting Total

Contact with Financial Institutions & Investor Relations Department

Telephone : +662 208-3668 - 9 Fax. : +662 256-8800 E-mail : ir@ktb.co.th Address : Krung Thai Bank Pcl. 35 Nana Nua Bldg.,6th Fl., Sukhumvit Rd., Klong Toey Nua Subdictrict, Wattana District, Bangkok 10110 Website : http://www.ktb.co.th (select Investor Relations / Contact IR)

review the reliability and accuracy of financial statements as well as the adequacy and appropriateness of the internal control systems thus ensuring that the Bank’s financial statement are reliable. 4.5 Investor Relations The Financial Institutions & Investor Relations Department has been assigned to take the responsibility of providing and disseminating information and activities of the Bank for the benefits of all concerned such as investors of all types, stock analysts, fund managers both local and foreign as well as government agencies concerned on equal and fair basis through diverse organized activities. During 2009, the Bank’s executives and investor relations officers met with respective analysts and investors on various occasions and provided them with useful information as follows:

Number of Call

63 4 67

Moreover, the Bank has provided the press and media with a Press Room on the 2nd Floor, Nana Nua Building equipped with computer and accessories for convenience of the mass media in publicizing the Bank’s news and activities. The Marketing and Corporate Communications Department is responsible for coordination with the press for interviews with Bank executives and other public relations task. For 2009 details as follows: Annual Report 2009 Krung Thai Bank Pcl.

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Type of Communications

Total

Number of Time

Press Release Press Conference Press Interview

5. Responsibility of the Board of Directors Unless otherwise agreed among themselves, the

5.1 Independence from the Management The Board of Directors assumes responsibility for performing its duty and is truly independent from the Management. There exists clear segregation of duty and responsibility between the Board of Directors and the Management. In this respect, the Board of Directors will formulate policies, business strategy, oversee that operations transparent and proceed lawfully and ethically under the respective policies, communication and relevant information was disclosed appropriately. Moreover, for proper check-and-balance, the Chairman of the Board of Directors, and the President are different persons. 5.2 Appropriateness of the Board of Directors The number of Directors is in accordance with the Articles of Association, Article 19 which stipulates that “There shall be no less than 7 directors and no more than 15 directors as determined by the general meeting from time to time and no less than half of the total number of directors must reside in the Kingdom”. The term of office of directors is under the charter of each committee. Article 22 has prescribed that one-third of the directors must retire at each annual general meeting. If the number cannot be divided exactly into one-third, such number must be closest to one-third.

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149 16 28 193 directors to retire during the first and the second times shall be drawn by lots and subsequently the director that has been longest in the office shall retire. A retiring director is eligible for re-election. In 2009, four Directors retired. The Bank thus included the election of directors to replace the retiring ones on the agenda of the 16th Annual Ordinary General Meeting on April 17, 2009. The General Meeting resolved by majority votes to elect the retired four Directors for another term. All the Directors have diverse qualifications with respect to skills, experience and specialization beneficial to the Bank (details are shown in Brief Biography of the Board of Directors and Executives pages 25-33) including full devotion to their performance reflecting by the many awards received. Besides, the Independent Directors with qualifications as defined by the Bank, comprise as many as 6 from the total of 11 Directors, more than the requirement of at least one-third or 3 persons as prescribed by the Office of the Securities and Exchange Commission of Thailand. 5.3 Transparency in Nominating Directors In screening and nominating the Directors, the Bank has clearly and transparently prescribed the criteria and conditions as disclosed in “Nominating Directors and Executives” on pages 80-84.


5.4 Efficiency of the Board of Directors 5.4.1 Formulating Policies and Overseeing Management The Board of Directors has performed its duty honestly and prudently safeguarding the shareholders’ interest particularly in giving its consent on the vision, mission, strategy and approving key issues relating to operating direction and policy, as well as business plan and annual budget. In so doing, the Board has adopted principles of logic and justification with sound analyses of business condition and social and environmental factors. In the last quarter of each year, the Board calls a meeting to review the Bank’s policies and targets before delegating to the Management to formulate into efficient operating strategy together with the business units and branches nationwide so all will move towards a unified target. Moreover, the Board of Directors oversees the performance of the Management that it is in accordance with the key performance indicators (KPI) determined at the beginning of the year. Operating performance is monitored on a monthly and quarterly basis so as to know the status at every stage. If the operating performance falls short of the target, the Board will conduct an analysis to find the root causes for further solutions. At year-end, the Board will compare the Management’s performance with the KPI set under the Performance Agreement (PA). In addition, the Board controls and verifies the Management work to ensure transparency and compliance with the Bank’s code of conduct as stipulated in the constitution of the Royal Kingdom of Thailand B.E. 2550 (2007), Article 279 and in accordance with the core value as recommended by

the Ombudsman, Office of the Ombudsman. Such code will serve as ethical standards and guidelines for regulatory compliance of the Management and Bank employees at all levels since they are state officers as well. Concerning directorship of the President and top executives in other companies, the Bank has formulated clear policy as to type of directorship and number of companies in which they are entitled to hold the post, and such directorship holding must be first approved by the Board of Directors. Apart from this, the Bank has established practices on holding posts in other companies in accordance with the guidelines prescribed by the Standard Qualifications for State Enterprise Directors and Employees Act, the Financial Institution Act, the Securities and Stock Exchange Act and other related law. Under such practice guidelines, Directors are entitled in no more than three state enterprise companies and Directors are entitled to hold the post of Chairman, Executive Director or authorized signatory director in no more than three other business groups. The Bank disclosed information on directorship in other companies of each Director on pages 88-89. 5.4.2 Relevant Committees The Board of Directors has appointed respective committees to help study and scrutinize the task as deemed necessary to ensure the Board’s greater efficiency and effectiveness in performing its duty as described in “Shareholding and Management Structure” pages 79-80. 5.4.3 Board of Directors Meeting The Bank sets the schedules for the Board of Directors meeting in advance and regularly throughout the year. Meeting schedules are shown

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on the Bank’s intranet website. Each Director is informed of such schedules to facilitate arrangement for attendance as per details in “Board of Directors Meeting” pages 84-85. In this regard, the subcommittee related to the agenda on such particular issue will scrutinize the relevant information; make comments and recommendation prior to submission to the Chairman of the Board of Directors for approval and inclusion of that issue on the agenda for prudence and management of risks in all respects that may arise. Besides, the Board of Directors has the policy to provide the Independent Directors with opportunities to call meeting among themselves as deemed necessary to discuss issues of common interest without attendance of the Management. The President will be informed of the meeting results. The Independent Directors Committee in 2009 called four meetings. 5.4.4 Self-Assessment of Individual Performance The Bank requires the Board of Directors to conduct self-assessment twice a year so as to reflect operational efficiency under principles of good corporate governance, details of which are shown in “Self Assessment of the Board of Directors” pages 82-84. 5.4.5 Development of Directors and Executives The Bank promotes the competence development of the Directors and the executives through continuous and regular training courses to enhance their knowledge. Details in “Brief Biography of the Board of Directors and Executive Officers” pages 25-33. Moreover, for each new Director

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appointment, the Bank organizes Orientation to provide the newly appointed Directors with key information on the Bank as well as making arrangement for them to visit and observe the Bank business operation. In 2009, the Bank organized such orientation for two new Directors, Dr. Sathit Limpongpan and Mr. Supachai Jongsiri. Details in “Directors Orientation” page 82. During January of each year, Directors and executives across the country including those from overseas branches met to discuss Business Strategy of the Bank. The main purpose is to jointly drive the Bank to achieve the targets set out in the strategy as well as giving good opportunities to the Directors and the executives to exchange their opinions, experience and current information among themselves. 5.5 Corporate Secretary It is the Bank’s policy to appoint the Secretary to the Board of Directors and the Corporate Secretary to be in compliance with the applicable Securities and Stock Exchange (No 4), B.E. 2551 (2008) and principles of good corporate governance of the Bank. Core duties and responsibilities are detailed in “Shareholding and Management Structures” page 86. Besides, the Bank insists that the Corporate Secretary is trained in appropriate courses such as Company Secretary Program (CSP), Effective Minute Taking (EMT) and Board Reporting Program (BRP) to enable her to perform the duty more efficiently.


5.6 Succession Plan The Bank has its system of succession for executives at each level and each job family that can be implemented effectively through the Succession Plan for crucial posts especially the chief executive officer of the Bank. Preparedness of the persons that will become executive officer or manager has been in place together with the Individual Development Plan to enable the successor to manage and carry on the task instantly, smoothly and efficiently. Work plan and requirements for selecting successor at different levels are summarized below: 1. The President level, the Bank complies with the Standard Qualifications for State Enterprise Directors and Employees Act B.E.2518 (1975) and also has transparent nominating and selecting process by recruiting from the executive officers within the Bank and giving opportunities to external applicants who are visionary with knowledge, competence and experience in corporate management to apply for the President. From then the applicants will be selected through appropriate nominating process by the Nominating and Remuneration Committee. 2. Group, sector and department level, the Bank makes relevant assessment seeking opinions from existing group executive and requesting such group executive to nominate qualified person as successor of each business group. 3. Regional office and business center, the Bank utilizes the Assessment Center for selection. The candidate’s appropriateness will be assessed

by two levels of supervisors. The highly competent executives will be listed in preparation for replacement and business expansion. 4. Branch manager and deputy branch manager, selection will be done through testing and the Assessment Center. High-potential executives within the Bank will be considered. Moreover, the Bank selects and builds competent employees groups, that is, the Bank scholars and Talent groups to be further developed for the new generation executive posts. They will serve as foundation for business expansion and help prevent any problem of understaffing or shortage of manpower for future executive posts in the organization.

Internal Control

The Board of Directors attaches significance to have an internal control system by entrusting the Audit Committee that oversees the Internal Audit Group to monitor and assess the internal control to ensure the appropriateness of the available system. Hence, the Bank’s operation has been carried on efficiently in accordance with the plans and targets at acceptable risk levels. This serves as measure for protecting the benefit of the shareholders in line with the good corporate governance principles. The Audit Committee in 2009 made an assessment that risk management and internal control systems were effective, appropriate and adequate. The internal audit is independent encompassing high risk operating processes and up to the standards and appropriate audit performance monitoring to ensure

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accuracy under the applicable laws or requirements and in consonance with the current business environment. Details in “Report of the Audit Committee� page 130.

such transactions were conducted in accordance with general nature of business. In addition, the Bank received and paid remunerations at market prices or fair prices, and also complied with the requirements of the regulators concerned with such transactions while relevant information was disclosed accurately Related-Party Transactions For prevention of conflict of interest that may and completely. Measures for Related-Party Transactions arise from conducting related-party transactions, the Bank has prescribed that market price shall be used Approval The Bank gives importance to prevention of in conducting transactions of all types. If market price is not available, the Bank stipulated that fair conflict of interest from conducting inter-party or price is used in conducting such transaction, except related transactions. In approving such transactions, transaction under requirement prescribed otherwise the Bank has carefully considered the issues with by the regulator the Bank will adhere to the practices integrity, good faith, justification and independence within moral ethical framework while adhering to the under such requirement. Necessity and Justifications of Related-Party Code of Business Ethics and good corporate governance principles of the Bank. Moreover, the Transactions Inter-party or related-party transactions conducted Bank formulate related transactions procedure and in 2009 were normal business transaction or normal regulations to the responsible unit. The Bank has business support transactions of the Bank. Such assigned the Compliance Department to oversee transactions are conducted under the same general and re-check the approval procedures of such trading conditions as those done with outsiders. transaction to be in compliance with the requirements Moreover, such conducts of inter-party or related- prescribed by the regulators in addition to complying party transactions were necessary for business with the Bank procedures. As for any related-party transactions or related operation and/or supporting business operation with justifications of conducting for optimum interest transactions prescribed by the regulators or by the of the Bank and its shareholders. The Bank’s Audit Bank procedures requiring that such transaction Committee had already considered inter-party must be approved by the Board of Directors, the transactions between the Bank or subsidiaries and Bank has prescribed the best practices of the related persons or persons who might have conflict of Directors in relation to approval of related-party interest with the Bank or subsidiaries during the past transactions or related transactions so as to prevent period up to present, and was of the opinion that conflict of interest. Details are summarized as follows:

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1) Each Director is required to disclose information on transactions that might bear conflict of interest, related-party transactions or related transactions as prescribed in the requirements of the Office of Securities and Exchange Commission of Thailand and the Stock Exchange of Thailand. 2) Director having conflict of interest is prohibited from approving such transaction. In conducting the related-party transaction, the Audit Committee shall participate and give opinion under the principles of good corporate governance and the requirements prescribed by the Stock Exchange of Thailand. 3) Lending or investing in business in which the Director has interest must be unanimously approved by the Board of Directors without attendance of such Director. To prevent conflict of interest, pricing and terms and conditions must be determined in accordance with the Bank’s normal trading and with the same treatment given to general clients. Policy on Conducting Future Related-Party Transactions In general business operation, if the Bank realizes that conducting related-party transactions in the future will benefit the Bank and its shareholders, the possibility will be that the Bank or subsidiaries will do so in compliance with the regulators’ requirements and the Bank’s measures for approval of relatedparty transactions as earlier described. Moreover, in conducting related-party transactions or related transactions in the future, the Bank will

adhere to the same practices as those of conducting transactions with general clients on trading terms and conditions that are not different from those of general business or business of the same type. Remuneration paid or received from such transactions shall be in accordance with market price or fair price. Relevant information concerning related-party transactions or related transactions must be disclosed to the public in an accurate and complete manner in accordance with the regulatory requirements and criteria for considering justifications of related-party transactions as well as opinions of the Board of Directors and the Audit Committee. Information on related-party transactions conducted by Directors and senior executives in 2009 is shown in 56-1 Report Part 1 No.10 Related-Party Transactions and the Notes to the Financial Statements No. 3.21 Related-Party Transactions.

Annual Report 2009 Krung Thai Bank Pcl.

129


Report of the Audit Committee The Audit Committee comprises three Independent Directors, each of whom has a three-year term of office. One year refers to the period from the Ordinary General Meeting of the year in which the Director is appointed to the next Ordinary General Meeting. During 2009, the Audit Committee called 12 meetings to consider issues within its scope of responsibility as well as performing other tasks delegated by the Board of Directors. The Audit Committee reported the outcome of each meeting to the Board of Directors, details of which are summarized as follows: Reviewed the monthly operating performance, the quarterly, half-yearly and annual financial statements with the external auditor and Management of the Accounting Department, to ensure that the accounting system and the financial reports were prepared in accordance with generally accepted accounting principles and that the disclosures of information were adequate, complete and reliable. Reviewed intercompany transactions between the Bank and its subsidiaries including connected-party transactions or transactions that might lead to conflict of interest, so as to ensure that they were in accordance with normal business practices, that information disclosures were adequate and transparent, and that there were no transactions with significant negative impact on the Bank. Reviewed risk management processes, internal audit reports and internal control assessments, exchanged views with Senior Managements and monitored the internal control system and control self-assessment, including approved the annual compliance reports, as to ensure that the Bank’s internal control system was appropriate and adequate Reviewed regularly with the Management to ensure that the Bank complies with legal provisions and requirements of regulators such as the Office of the Auditor General of Thailand, the Bank of Thailand and the Bank’s operating procedures and regulations. Consulted with Senior Management concerning crucial management issues that might adversely affect the Bank. Recommended the external auditor and its remuneration to the Board of Directors for approval at the shareholders’ meeting. Approved the Internal Audit Group’s the audit plan and annual budget, as well as the annual reviewed plan of “Bank’s loans and contingency obligations” as to ensure that objectives and scope of audit covered major risk exposures in each business unit and at activity level. Approved the revised charter and standard of procedures of the Internal Audit Group. The Audit Committee performed its duty with prudence and independence. All the opinions expressed were straightforward, transparent and verifiable, and in accordance with good corporate governance. In this regard, the Audit Committee is of the opinion that the Bank’s financial statements and disclosure of information are complete and reliable, consistent with generally accepted accounting principles. Overall risk management and internal control systems have been implemented effectively and appropriately. Internal audits have been independently conducted in compliance with internal audit standards covering all high-risk processes. Moreover, there are adequate system of control to ensure compliance with applicable laws and regulations, consistent with the current business environment. (Mr. Pachara Yutidhammadamrong) Chairman of the Audit Committee January 18, 2010

130


The Board of Directors’ Responsibility for Financial Reports The Board of Directors gives priority to and takes responsibility for the consolidated financial statements of Krung Thai Bank and its subsidiaries, as well as the financial information appeared in the annual report. Hence, such financial statements have been prepared in accordance with the generally accepted accounting principles and standards under appropriate accounting policy and regular adherence with prudence, accuracy and completeness to reflect the true operating performance of the Bank. In this regard, the Bank has continuously reported the operating results and disclosed adequately key information with transparency to the Stock Exchange of Thailand for the benefit of the shareholders and general investors. The Board of Directors has provided and maintained appropriate and efficient risk management, internal control, internal audit and supervision to ensure accurate, complete and adequate financial information for retention of assets and prevention of frauds or significant irregularities. The Board of Directors has appointed the Audit Committee comprising entirely of independent Directors to oversee and review the reliability and accuracy of the financial reports including the internal control system that must be adequate and appropriate to ensure true reliability of such financial statements. (Dr. Sathit Limpongpan) (Mr. Apisak Tantivorawong) Chairman of the Board of Directors President

Annual Report 2009 Krung Thai Bank Pcl.

131


Report of the Independent Certified Public Accountants To the Shareholders of Krung Thai Bank Public Company Limited The Office of the Auditor General has audited the accompanying consolidated and the Bank’s Balance Sheet as at December 31, 2009 and 2008, and the related consolidated and the Bank’s Statements of Income, Changes in Shareholders’ Equity, and Cash Flows for the years then ended of Krung Thai Bank Public Company Limited and its Subsidiaries and of Krung Thai Bank Public Company Limited, respectively. The Bank’s management is responsible for the correctness and completeness of information presented in these financial statements. The responsibility of the Office of the Auditor General is to express an audit opinion on these financial statements based on the audits. The Office of the Auditor General conducted the audits in accordance with generally accepted auditing standards. Those standards require that the Office of the Auditor General 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. The Office of the Auditor General believes that the audits provide a reasonable basis for the opinion. In the opinion of the Office of the Auditor General, the consolidated and the Bank’s financial statements referred to above present fairly, in all material respects, the financial position as at December 31, 2009 and 2008, and the results of operations, and cash flows for the year then ended of Krung Thai Bank Public Company Limited and its Subsidiaries and of Krung Thai Bank Public Company Limited, respectively, in accordance with generally accepted accounting principles. Without qualifying opinion to the above financial statements, we draw attention to Note 3.32 to the financial statements regarding loans under execution of the Attorney General.

POUNGCHOMNAD JARIYAJINDA (Ms. Poungchomnad Jariyajinda) Inspector General Office of the Auditor General February 18, 2010

132

JIRAPORN PIRIYAKITPAIBOON (Ms. Jiraporn Piriyakitpaiboon) Director of Audit Office


KRUNG THAI BANK PUBLIC COMPANY LIMITED AND SUBSIDIARIES

BALANCE SHEETS

AS AT DECEMBER 31, 2009 AND 2008

NOTE

(Baht)

CONSOLIDATED FINANCIAL STATEMENTS THE BANK’S FINANCIAL STATEMENTS

2009

2008

2009

ASSETS

2008

33,203,184,544 34,519,836,413 33,202,223,417 34,518,986,606 CASH INTERBANK AND MONEY MARKET ITEMS 3.2 DOMESTIC ITEMS 231,157,281,200 69,561,415,775 231,231,443,404 69,487,487,403 INTEREST BEARING NON-INTEREST BEARING 10,232,148,411 5,889,233,564 10,227,389,179 5,873,474,005 FOREIGN ITEMS 9,456,668,574 16,640,218,210 9,456,668,574 16,640,218,210 INTEREST BEARING 2,029,001,250 931,655,070 2,029,001,250 931,655,070 NON-INTEREST BEARING TOTAL INTERBANK AND MONEY MARKET ITEMS, NET 252,875,099,435 93,022,522,619 252,944,502,407 92,932,834,688 INVESTMENTS 2.4 3.3 75,300,991,333 45,404,900,264 75,300,991,333 45,404,900,264 CURRENT INVESTMENTS, NET 53,787,415,892 59,917,737,328 53,787,415,856 59,917,737,308 LONG-TERM INVESTMENTS, NET INVESTMENTS IN SUBSIDIARIES 7,285,693,183 6,188,237,865 6,281,479,200 5,705,771,104 AND ASSOCIATED COMPANIES, NET 136,374,100,408 111,510,875,457 135,369,886,389 111,028,408,676 TOTAL INVESTMENTS, NET LOANS AND ACCRUED INTEREST RECEIVABLE 2.5 3.4 1,071,880,325,393 1,042,497,939,138 1,074,600,861,736 1,046,085,832,380 LOANS 3,722,232,021 4,835,461,554 3,724,487,127 4,838,786,175 ACCRUED INTEREST RECEIVABLE TOTAL LOANS AND ACCRUED INTEREST RECEIVABLE 1,075,602,557,414 1,047,333,400,692 1,078,325,348,863 1,050,924,618,555 LESS ALLOWANCE FOR DOUBTFUL ACCOUNTS 2.6 3.5 (40,152,398,613) (35,075,264,155) (39,911,651,685) (34,889,472,894) LESS REVALUATION ALLOWANCE FOR DEBT RESTRUCTURING 2.7 3.6 (299,067,314) (509,621,319) (299,067,314) (509,621,319) TOTAL LOANS AND ACCRUED INTEREST RECEIVABLE, NET 1,035,151,091,487 1,011,748,515,218 1,038,114,629,864 1,015,525,524,342 PROPERTIES FORECLOSED, NET 2.8 3.7 42,147,820,293 37,579,787,915 42,142,803,599 37,551,818,098 CUSTOMERS’ LIABILITIES UNDER ACCEPTANCES 3,808,647,416 5,249,248,610 3,808,647,416 5,249,248,610 PREMISES AND EQUIPMENT, NET 2.9 3.8 21,166,006,894 22,466,531,798 18,078,459,979 19,181,917,898 OTHER DEBTORS - SUKHUMVIT ASSET MANAGEMENT CO., LTD. 32,572,588 32,572,588 32,572,588 32,572,588 INTANGIBLE ASSETS, NET 2.10 3.9 3,125,378,743 2,704,850,480 626,649,939 466,229,787 DERIVATIVE REVALUATION 3,256,728,459 4,324,800,513 3,256,728,459 4,324,800,513 OTHER ASSETS, NET 3.10 12,689,506,178 7,216,214,707 12,165,833,197 6,371,661,787 TOTAL ASSETS 1,543,830,136,445 1,330,375,756,318 1,539,742,937,254 1,327,184,003,593 NOTES TO THE FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.

134


KRUNG THAI BANK PUBLIC COMPANY LIMITED AND SUBSIDIARIES

BALANCE SHEETS (CONTINUED) AS AT DECEMBER 31, 2009 AND 2008

NOTE

(Baht)

CONSOLIDATED FINANCIAL STATEMENTS THE BANK’S FINANCIAL STATEMENTS

2009

2008

2009

2008

LIABILITIES AND SHAREHOLDERS’ EQUITY 2.17 3.11 DEPOSITS 1,179,524,205,844 1,041,434,412,305 1,180,050,904,438 1,041,750,426,588 DEPOSITS IN BAHT 28,089,285,986 21,781,477,221 28,089,285,986 21,781,477,221 DEPOSITS IN FOREIGN CURRENCIES 1,207,613,491,830 1,063,215,889,526 1,208,140,190,424 1,063,531,903,809 TOTAL DEPOSITS INTERBANK AND MONEY MARKET ITEMS 3.12 DOMESTIC ITEMS 67,813,471,855 29,353,949,814 67,834,827,474 29,373,536,753 INTEREST BEARING 2,614,687,085 2,599,133,037 2,614,687,085 2,599,133,037 NON-INTEREST BEARING FOREIGN ITEMS 674,786,993 4,269,608,349 674,786,993 4,269,608,349 INTEREST BEARING 313,117,457 223,898,723 313,117,457 223,898,723 NON-INTEREST BEARING TOTAL INTERBANK AND MONEY MARKET ITEMS 71,416,063,390 36,446,589,923 71,437,419,009 36,466,176,862 LIABILITIES PAYABLE ON DEMAND 3,931,021,428 3,004,235,951 3,931,021,428 3,004,235,951 BORROWINGS 3.13 42,974,022,579 48,918,234,648 42,974,022,579 48,918,234,648 SHORT-TERM BORROWINGS 77,713,825,741 51,308,025,000 77,713,825,741 51,308,025,000 LONG-TERM BORROWINGS 120,687,848,320 100,226,259,648 120,687,848,320 100,226,259,648 TOTAL BORROWINGS BANK’S LIABILITIES UNDER ACCEPTANCES 3,808,647,416 5,249,248,610 3,808,647,416 5,249,248,610 PROVISIONS, CONTINGENT LIABILITIES 2.21 3.14 2,670,880,750 2,712,923,220 2,670,880,750 2,712,923,220 ACCRUED INTEREST PAYABLE 3,225,938,392 4,398,006,970 3,225,963,739 4,398,071,063 OTHER CREDITORS - THAI ASSET MANAGEMENT CO., LTD. 198,194,534 24,488,269 198,194,534 24,488,269 DERIVATIVE REVALUATION 3,012,910,259 3,820,902,122 3,012,910,259 3,820,902,122 OTHER LIABILITIES 3.15 14,737,968,865 7,649,082,019 13,397,493,431 6,658,548,066 TOTAL LIABILITIES 1,431,302,965,184 1,226,747,626,258 1,430,510,569,310 1,226,092,757,620 SHAREHOLDERS’ EQUITY 3.16 SHARE CAPITAL AUTHORIZED SHARE CAPITAL 28,325,000 28,325,000 28,325,000 28,325,000 PREFERRED SHARE CAPITAL 5,500,000 @ 5.15 Baht ORDINARY SHARE CAPITAL 11,191,412,250 @ 5.15 Baht 57,635,773,087 57,635,773,087 57,635,773,087 57,635,773,087 ISSUED AND PAID-UP SHARE CAPITAL 28,325,000 28,325,000 28,325,000 28,325,000 PREFERRED SHARE CAPITAL 5,500,000 @ 5.15 Baht ORDINARY SHARE CAPITAL 11,179,749,000 @ 5.15 Baht 57,575,707,350 57,575,707,350 57,575,707,350 57,575,707,350

NOTES TO THE FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.

Annual Report 2009 Krung Thai Bank Pcl.

135


KRUNG THAI BANK PUBLIC COMPANY LIMITED AND SUBSIDIARIES

BALANCE SHEETS (CONTINUED) AS AT DECEMBER 31, 2009 AND 2008

CONSOLIDATED FINANCIAL STATEMENTS

NOTE

LIABILITIES AND SHAREHOLDERS’ EQUITY (CONTINUED) PREMIUM ON ORDINARY SHARE CAPITAL APPRAISAL SURPLUS ON ASSETS REVALUATION REVALUATION SURPLUS (DEFICIT) ON INVESTMENTS 3.3.6 RETAINED EARNINGS APPROPRIATED 3.17 LEGAL RESERVE UNAPPROPRIATED MINORITY INTERESTS TOTAL SHAREHOLDERS’ EQUITY TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY OFF-BALANCE SHEET ITEMS 3.19 - CONTINGENCIES AVAL TO BILLS AND GUARANTEES OF LOANS LIABILITIES UNDER UNMATURED IMPORT BILLS LETTERS OF CREDIT OTHER CONTINGENCIES

(Baht)

2009 1,207,650 5,496,322,400

2008

THE BANK’S FINANCIAL STATEMENTS

2009

1,207,650 5,973,154,085

1,207,650 5,494,668,020

2008 1,207,650 5,971,499,705

1,545,283,434 (563,790,060) 951,965,702 (1,463,583,582) 3,981,464,163 3,421,464,163 3,981,464,163 3,421,464,163 43,898,860,532 37,192,061,147 41,199,030,059 35,556,625,687 732 725 - - 112,527,171,261 103,628,130,060 109,232,367,944 101,091,245,973 1,543,830,136,445 1,330,375,756,318 1,539,742,937,254 1,327,184,003,593

6,271,347,305 5,263,108,459 6,271,347,305 5,263,108,459 - 88,286,768 - 88,286,768 25,357,442,764 20,004,706,228 25,357,442,764 20,004,706,228 748,788,673,349 511,815,953,180 748,788,673,349 511,815,953,180

NOTES TO THE FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.

136

SATHIT LIMPONGPAN

APISAK TANTIVORAWONG

(Mr. Sathit Limpongpan) Chairman of the Board of Directors

(Mr. Apisak Tantivorawong) President


KRUNG THAI BANK PUBLIC COMPANY LIMITED AND SUBSIDIARIES

STATEMENTS OF INCOME

FOR THE YEARS-ENDED DECEMBER 31, 2009 AND 2008

NOTE

INTEREST AND DIVIDEND INCOME 2.2 LOANS INTERBANK AND MONEY MARKET ITEMS INVESTMENTS TOTAL INTEREST AND DIVIDEND INCOME INTEREST EXPENSE 2.3 DEPOSITS INTERBANK AND MONEY MARKET ITEMS SHORT-TERM BORROWINGS LONG-TERM BORROWINGS TOTAL INTEREST EXPENSE INTEREST AND DIVIDEND INCOME, NET BAD DEBTS AND DOUBTFUL ACCOUNTS INTEREST AND DIVIDEND INCOME AFTER BAD DEBTS AND DOUBTFUL ACCOUNTS, NET NON-INTEREST INCOME 3.3.7 NET GAIN (LOSS) ON INVESTMENTS SHARE OF PROFIT FROM INVESTMENTS ON EQUITY METHOD FEES AND SERVICE INCOME ACCEPTANCES, AVAL AND GUARANTEES OTHERS GAIN ON EXCHANGE GAIN ON DISPOSAL OF PROPERTIES FORECLOSED, NET OTHER INCOME TOTAL NON-INTEREST INCOME

(Baht)

CONSOLIDATED FINANCIAL STATEMENTS

THE BANK’S FINANCIAL STATEMENTS

2009

2008

2009

50,672,802,844 3,925,594,880 3,384,106,910 57,982,504,634 10,888,497,338 330,490,397 837,734,965 3,390,067,142 15,446,789,842 42,535,714,792 6,243,076,999 36,292,637,793 592,811,120 970,627,067 1,000,802,544 9,367,184,851 665,422,173 304,794,730 883,678,309 13,785,320,794

56,520,456,003 4,138,706,463 4,790,042,337 65,449,204,803 15,558,950,299 474,639,879 1,064,045,751 2,535,740,292 19,633,376,221 45,815,828,582 10,906,139,543 34,909,689,039 (959,294,298) 726,350,413 1,111,603,968 6,821,908,771 1,152,363,950 914,261,000 1,177,775,239 10,944,969,043

50,067,823,791 3,924,896,134 3,603,604,548 57,596,324,473 10,889,944,297 330,581,662 837,734,965 3,390,067,142 15,448,328,066 42,147,996,407 6,000,000,000 36,147,996,407 600,825,183 - 1,001,666,370 8,950,174,852 665,287,749 304,794,730 478,968,523 12,001,717,407

NOTES TO THE FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.

2008 56,220,912,550 4,134,157,524 5,158,382,314 65,513,452,388 15,560,740,794 475,026,503 1,064,045,751 2,535,740,292 19,635,553,340 45,877,899,048 10,700,000,000 35,177,899,048 (716,884,985) - 797,533,215 6,866,513,629 1,152,363,950 914,261,000 553,048,086 9,566,834,895

Annual Report 2009 Krung Thai Bank Pcl.

137


KRUNG THAI BANK PUBLIC COMPANY LIMITED AND SUBSIDIARIES

STATEMENTS OF INCOME (CONTINUED) FOR THE YEARS-ENDED DECEMBER 31, 2009 AND 2008

NOTE

NON - INTEREST EXPENSES PERSONNEL EXPENSES PREMISES AND EQUIPMENT EXPENSES TAXES AND DUTIES FEES AND SERVICE EXPENSES DIRECTORS’ REMUNERATION CONTRIBUTION TO THE FINANCIAL INSTITUTIONS DEVELOPMENT FUND AND DEPOSIT PROTECTION AGENCY OTHER EXPENSES TOTAL NON - INTEREST EXPENSES INCOME BEFORE INCOME TAX INCOME TAX EXPENSE 2.18 NET INCOME NET INCOME ATTRIBUTABLE TO : EQUITY HOLDERS OF THE BANK MINORITY INTERESTS

BASIC EARNINGS PER SHARE DILUTED EARNINGS PER SHARE

2.19 2.19

(Baht)

CONSOLIDATED FINANCIAL STATEMENTS

2009

2008

2009

15,042,531,057 5,474,140,713 2,027,728,322 1,103,442,754 70,396,892 4,369,781,500 4,375,239,812 32,463,261,050 17,614,697,537 5,425,538,826 12,189,158,711 12,189,158,695 16 12,189,158,711 1.09 1.09

13,583,942,777 5,313,327,606 2,484,300,760 421,204,675 61,229,282 4,154,586,679 4,099,165,783 30,117,757,562 15,736,900,520 3,465,146,646 12,271,753,874 12,271,753,857 17 12,271,753,874 1.10 1.10

13,848,854,134 3,852,505,404 2,023,280,068 988,521,175 51,945,806 4,369,781,500 6,620,062,045 31,754,950,132 16,394,763,682 5,270,000,000 11,124,763,682 11,124,763,682 - 11,124,763,682 0.99 0.99

NOTES TO THE FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.

138

THE BANK’S FINANCIAL STATEMENTS

2008 12,547,927,085 3,625,257,218 2,483,170,972 335,682,925 44,522,666 4,154,586,679 6,100,544,268 29,291,691,813 15,453,042,130 3,400,000,000 12,053,042,130 12,053,042,130 - 12,053,042,130 1.08 1.08

SATHIT LIMPONGPAN

APISAK TANTIVORAWONG

(Mr. Sathit Limpongpan) Chairman of the Board of Directors

(Mr. Apisak Tantivorawong) President


Annual Report 2009 Krung Thai Bank Pcl.

139

(9) (9) - (476,831,685) 716 103,151,298,366 - 2,109,073,494 - 2,109,073,494 - (4,922,359,310) 16 12,189,158,711 732 112,527,171,261

- - - - - - (476,831,685) - - - 1,207,650 5,496,322,400 (563,790,060) 3,421,464,163 37,192,061,147 - - 2,109,073,494 - - - - 2,109,073,494 - - - - - - (4,922,359,310) - - - 560,000,000 11,629,158,695 1,207,650 5,496,322,400 1,545,283,434 3,981,464,163 43,898,860,532

NOTES TO THE FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.

725 103,628,130,060

- - - - - (1,938) (1,938) 1,207,650 5,973,154,085 383,838,457 2,811,464,163 28,886,731,740 708 95,660,429,153 - - (947,628,517) - - - (947,628,517) - - (947,628,517) - - - (947,628,517) - - - - (3,356,424,450) - (3,356,424,450) - - - 610,000,000 11,661,753,857 17 12,271,753,874 1,207,650 5,973,154,085 (563,790,060) 3,421,464,163 37,192,061,147 725 103,628,130,060 1,207,650 5,973,154,085 (563,790,060) 3,421,464,163 37,192,061,147

BEGINNING BALANCE AS AT JANUARY 1, 2009 57,604,032,350 ADJUSTMENT FOR B/F RETAINED EARNINGS OF SUBSIDIARIES AND ASSOCIATES - ADJUSTMENT FOR APPRAISAL SURPLUS ON ASSETS - BALANCE AFTER ADJUSTMENT 57,604,032,350 REVALUATION SURPLUS ON INVESTMENTS - UN-RECOGNISED ITEMS IN INCOME STATEMENTS - DIVIDENDS PAYABLE 3.18 - NET INCOME - ENDING BALANCE AS AT DECEMBER 31, 2009 57,604,032,350

TOTAL

(Baht)

383,838,457 2,811,464,163 28,886,731,740 2,646 95,660,431,091

RETAINED EARNINGS REVALUATION APPRAISAL SURPLUS MINORITY APPROPRIATED SURPLUS (DEFICIT) UNAPPROPRIATED INTERESTS ON ASSETS ON INVESTMENTS LEGAL RESERVE

CONSOLIDATED FINANCIAL STATEMENTS

1,207,650 5,973,154,085

NOTE ISSUED AND PREMIUM PAID-UP ON SHARE SHARE CAPITAL CAPITAL

BEGINNING BALANCE AS AT JANUARY 1, 2008 57,604,032,350 ADJUSTMENT B/F RETAINED EARNINGS - OF SUBSIDIARIES AND ASSOCIATED BALANCE AFTER ADJUSTMENT 57,604,032,350 REVALUATION DEFICIT ON INVESTMENTS - UN-RECOGNIZED ITEMS IN INCOME STATEMENTS - DIVIDENDS PAYABLE 3.18 - NET INCOME - ENDING BALANCE AS AT DECEMBER 31, 2008 57,604,032,350

FOR THE YEARS-ENDED DECEMBER 31, 2009 AND 2008

STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY

KRUNG THAI BANK PUBLIC COMPANY LIMITED AND SUBSIDIARIES


140 ISSUED AND PREMIUM PAID-UP ON SHARE SHARE CAPITAL CAPITAL APPRAISAL SURPLUS ON ASSETS

- - - - 1,207,650 1,207,650 - 1,207,650 - - - - 1,207,650

- - - - 5,971,499,705 5,971,499,705 (476,831,685) 5,494,668,020 - - - - 5,494,668,020

NOTES TO THE FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.

- - - - 57,604,032,350 57,604,032,350 - 57,604,032,350 - - - - 57,604,032,350

(157,133,892) (1,306,449,690) (1,306,449,690) - - (1,463,583,582) (1,463,583,582) - (1,463,583,582) 2,415,549,284 2,415,549,284 - - 951,965,702

2,811,464,163 - - - 610,000,000 3,421,464,163 3,421,464,163 - 3,421,464,163 - - - 560,000,000 3,981,464,163

27,470,008,007 - - (3,356,424,450) 11,443,042,130 35,556,625,687 35,556,625,687 - 35,556,625,687 - - (4,922,359,310) 10,564,763,682 41,199,030,059

RETAINED EARNINGS REVALUATION SURPLUS APPROPRIATED UNAPPROPRIATED (DEFICIT) LEGAL RESERVE ON INVESTMENTS

THE BANK’S FINANCIAL STATEMENTS

1, 2008 57,604,032,350 1,207,650 5,971,499,705

NOTE

UN-RECOGNIZED ITEMS IN INCOME STATEMENTS DIVIDENDS PAYABLE 3.18 NET INCOME ENDING BALANCE AS AT DECEMBER 31, 2008 BEGINNING BALANCE AS AT JANUARY 1, 2009 ADJUSTMENT FOR APPRAISAL SURPLUS ON ASSETS BALANCE AFTER ADJUSTMENT REVALUATION SURPLUS ON INVESTMENTS UN-RECOGNISED ITEMS IN INCOME STATEMENTS DIVIDENDS PAYABLE 3.18 NET INCOME ENDING BALANCE AS AT DECEMBER 31, 2009

REVALUATION SURPLUS ON INVESTMENTS

BEGINNING BALANCE AS AT JANUARY

FOR THE YEARS-ENDED DECEMBER 31, 2009 AND 2008

STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY (CONTINUED)

KRUNG THAI BANK PUBLIC COMPANY LIMITED AND SUBSIDIARIES

93,701,077,983 (1,306,449,690) (1,306,449,690) (3,356,424,450) 12,053,042,130 101,091,245,973 101,091,245,973 (476,831,685) 100,614,414,288 2,415,549,284 2,415,549,284 (4,922,359,310) 11,124,763,682 109,232,367,944

TOTAL

(Baht)


KRUNG THAI BANK PUBLIC COMPANY LIMITED AND SUBSIDIARIES

CASH FLOW STATEMENT

FOR THE YEARS-ENDED DECEMBER 31, 2009 AND 2008

CONSOLIDATED FINANCIAL STATEMENTS THE BANK’S FINANCIAL STATEMENTS

CASH FLOWS FROM OPERATING ACTIVITIES INCOME BEFORE INCOME TAX ADJUSTMENTS TO RECONCILE INCOME BEFORE INCOME TAX TO NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES DEPRECIATION AND AMORTIZATION EXPENSES BAD DEBTS AND DOUBTFUL ACCOUNTS SHARE OF GAIN FROM INVESTMENTS ON EQUITY METHOD DIVIDEND RECEIVED FROM ASSOCIATED COMPANIES GAIN ON DISPOSAL OF ASSETS GAIN ON LIQUIDATION OF INVESTMENTS IN SUBSIDIARY COMPANY LOSS (GAIN) ON DISPOSAL OF INVESTMENTS LOSS ON WRITE-DOWN OF INVESTED COMPANY - GENERAL INVESTMENTS LOSS ON WRITE-DOWN OF INVESTED COMPANY - ASSOCIATED COMPANIES LOSS ON RECLASSIFICATION OF INVESTMENTS LOSS (GAIN) ON REVALUATION OF INVESTMENTS LOSS (REVERSAL) ON IMPAIRMENT OF PROPERTIES FORECLOSED LOSS (REVERSAL) ON IMPAIRMENT OF INVESTMENTS REVERSAL OF IMPAIRMENT OF PREMISES AND EQUIPMENT REVERSAL OF IMPAIRMENT OF OTHER ASSETS LOSS ON IMPAIRMENT OF OTHER ASSETS DISCOUNT ON AMORTIZATION OF INVESTMENTS LOSS ON REVALUATION OF FOREIGN CURRENCIES DECREASE (INCREASE) IN ACCRUED OTHER INCOME INCREASE IN ACCRUED OTHER EXPENSES

(Baht)

2009

2008

2009

2008

17,614,697,537

15,736,900,520

16,394,763,682 15,453,042,130

2,684,629,571 6,243,076,999 (970,627,067) 94,389,994 (2,691,690)

2,454,760,887 10,906,139,543 (726,350,413) 243,889,995 (8,647,593)

1,451,291,987 1,255,261,745 6,000,000,000 10,700,000,000 - - - - (927,997) (2,171,814)

- 677,599,472

(234,456) (1,954,625,299)

- 677,599,472

(478,001) (1,954,625,299)

108,354,861

172,414,694

108,354,861

172,414,694

- - (3,193,030,342)

- 183,293,040 2,669,438,875

163,100,000 - (3,193,030,342)

- 183,293,040 2,669,438,875

169,140,889 (159,554,685) 164,890,889 (175,097,099) (1,075,205,312) 7,181,283 (1,246,319,374) (235,228,030) (17,130,984) - (17,130,984) - - (2,732,116) - (2,732,116) 174,513,759 198,953,747 174,513,759 198,953,747 (595,642,736) (352,045,320) (595,450,393) (350,208,020) 1,403,112,207 1,036,621,589 1,403,246,141 1,036,234,963 (79,050,145) 47,872,275 (79,050,145) 47,872,275 133,979,960 564,224,741 133,979,960 564,224,741 23,370,116,973 31,017,501,307 21,539,831,516 29,560,195,831 INTEREST AND DIVIDEND INCOME, NET (42,535,714,792) (45,815,828,582) (42,147,996,407) (45,877,899,048) PROCEEDS FROM INTEREST AND DIVIDEND INCOME 59,107,329,066 66,241,871,695 58,722,218,419 66,307,065,503 PROCEEDS FROM TAX REFUND 152,759,034 2,553,575,236 - 2,396,604,203 (16,618,858,420) (20,187,631,590) (16,620,435,391) (20,189,744,617) CASH PAID ON INTEREST EXPENSES CASH PAID ON INCOME TAX (3,398,477,572) (4,064,709,772) (3,180,402,652) (3,918,284,435) OPERATING INCOME BEFORE CHANGES IN 20,077,154,289 29,744,778,294 18,313,215,485 28,277,937,437 OPERATING ASSETS AND LIABILITIES (INCREASE) DECREASE IN OPERATING ASSETS (159,542,904,900) (16,914,411,265) (159,701,995,802) (16,856,013,325) INTERBANK AND MONEY MARKET ITEMS SECURITIES PURCHASED UNDER RESALE AGREEMENTS - 600,000,000 - 600,000,000

NOTES TO THE FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.

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KRUNG THAI BANK PUBLIC COMPANY LIMITED AND SUBSIDIARIES

CASH FLOW STATEMENT (CONTINUED) FOR THE YEARS-ENDED DECEMBER 31, 2009 AND 2008

(Baht)

CONSOLIDATED FINANCIAL STATEMENTS THE BANK’S FINANCIAL STATEMENTS

2009

CASH FLOWS FROM OPERATING ACTIVITIES (CONTINUED) INVESTMENTS IN TRADING SECURITIES, NET LOANS, NET PROPERTIES FORECLOSED, NET OTHER ASSETS, NET INCREASE (DECREASE) IN OPERATING LIABILITIES DEPOSITS INTERBANK AND MONEY MARKET ITEMS LIABILITIES PAYABLE ON DEMAND SHORT-TERM BORROWINGS OTHER LIABILITIES NET CASH USED IN OPERATING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES PURCHASE OF AVAILABLE FOR SALE SECURITIES PROCEEDS FROM DISPOSAL OF AVAILABLE FOR SALE SECURITIES PURCHASE OF HELD TO MATURITY DEBT SECURITIES PROCEEDS FROM DISPOSAL OF HELD TO MATURITY DEBT SECURITIES PURCHASE OF GENERAL INVESTMENTS PROCEEDS FROM DISPOSAL OF GENERAL INVESTMENTS PURCHASE OF INVESTMENTS IN SUBSIDIARY & ASSOCIATED COMPANIES PROCEEDS FROM LIQUIDATION OF INVESTMENTS IN SUBSIDIARY COMPANY PURCHASE OF INTANGIBLE ASSETS PURCHASE OF PREMISES AND EQUIPMENT PROCEEDS FROM DISPOSAL OF PREMISES AND EQUIPMENT NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES CASH FLOWS FROM FINANCING ACTIVITIES PROCEEDS FROM LONG-TERM BORROWINGS REPAYMENTS OF LONG-TERM BORROWINGS DIVIDEND PAID - ORDINARY SHARE DIVIDEND PAID - PREFERRED SHARE NET CASH PROVIDED BY FINANCING ACTIVITIES NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS BEGINNING BALANCE OF CASH AND CASH EQUIVALENTS ENDING BALANCE OF CASH AND CASH EQUIVALENTS

2008

(8,133,879,950) (7,415,926,166) (37,183,002,785) (106,505,065,094) 1,955,665,193 3,564,600,172 (6,157,721,237) (593,809,808) 144,397,602,304 62,544,964,116 34,969,473,467 (3,154,498,479) 926,785,477 (386,020,469) (66,212,070) 28,357,255,437 3,840,050,772 3,361,122,811 (4,916,989,440) (6,797,010,451) (79,846,799,420) (26,772,606,613)

2008

(8,133,879,950) (7,415,926,166) (36,127,524,553) (106,513,629,031) 1,936,962,069 3,602,593,375 (6,325,976,075) (553,092,804) 144,608,286,616 61,434,139,435 34,971,242,147 (3,164,756,807) 926,785,477 (386,020,469) (66,212,070) 28,357,255,437 3,461,847,381 3,195,954,910 (6,137,249,275) (9,421,558,008) (79,846,799,420) (26,772,606,613)

61,089,033,339 22,814,975,445 61,089,033,339 22,814,975,445 (324,155,606) (7,988,294,040) (239,347,934) (7,214,264,375) 9,393,512,815 13,075,769,220 (109,507,843) (60,000,000) 53,377,693 4,213,133,955

9,308,512,815 12,180,769,220 (109,507,843) (60,000,000) 53,377,693 4,213,133,955

(527,694,034)

(6,896,720)

(567,694,034)

- (780,816,463) (1,317,173,656) 18,619,315 (12,351,603,860) 26,874,300,741 (6,000,000,000) (4,919,089,560) (3,269,750) 15,951,941,431 (1,316,651,869) 34,519,836,413 33,203,184,544

1,021,901 (509,669,850) (2,797,341,984) 18,353,445 1,988,444,759 21,228,400,000 - (3,353,924,700) (2,499,750) 17,871,975,550 13,063,409,858 21,456,426,555 34,519,836,413

- (185,311,501) (634,667,215) 948,755 (11,131,455,345) 26,874,300,741 (6,000,000,000) (4,919,089,560) (3,269,750) 15,951,941,431 (1,316,763,189) 34,518,986,606 33,202,223,417

NOTES TO THE FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.

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2009

(6,898,820) 881,401,901 (242,077,442) (1,183,915,606) 2,275,487 4,612,793,152 21,228,400,000 - (3,353,924,700) (2,499,750) 17,871,975,550 13,063,210,694 21,455,775,912 34,518,986,606


KRUNG THAI BANK PUBLIC COMPANY LIMITED AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEARS-ENDED DECEMBER 31, 2009 AND 2008

1. BASIS OF PRESENTATION OF THE FINANCIAL STATEMENTS

Krung Thai Bank Public Company Limited (“The Bank”) is a registered public company in the Kingdom of Thailand with its head office located at 35 Sukhumvit Road, Klongtoey Nua, Wattana, Bangkok, Thailand. The Bank engages in commercial banking business and conducts its business through a nationwide branch network and in certain major centers of the world. 1.1 Basis of Preparation of the Consolidated Financial Statements and the Bank’s Financial

Statements

The consolidated financial statements and the Bank’s financial statements are prepared in accordance with the Bank of Thailand (BOT)’s Notification No. SOR NOR SOR. 70/B.E. 2551 (2008) dated August 3, 2008 regarding the Preparation and Announcement of the Financial Statements of Commercial Banks and Holding Companies which are Parent Company of Group of Companies Offering Financial Services, including related BOT’s Notifications and with the Stock Exchange of Thailand (SET)’s regulations dated January 22, 2001 regarding the Preparation and Submission of Financial Statements and Report on Financial Status and Results of Business Operations of Listed Companies, B.E. 2544 (2001). Moreover, these statements are prepared in conformity with generally accepted accounting principles under Accounting Act B.E. 2543 (2000). Consolidated Financial Statements The consolidated financial statements comprise the accounts of the Bank and those of its subsidiaries where the Bank controls and holds more than 50 percent of paid-up shares capital after eliminating material inter-company transactions and balances. There are seven and six consolidated subsidiaries in 2009 and 2008, respectively, which are Krung Thai Legal Services Co., Ltd., Krung Thai General Business Services Co., Ltd., Krung Thai Asset Management Pcl., Krung Thai Computer Services Co., Ltd., Krung Thai Property Development Co., Ltd., KTB Leasing Co., Ltd. and KTB Advisory Co., Ltd. (added in 2009 which registered as a company limited on April 24, 2009). Krung Thai Property Development Co., Ltd. had the business dissolution and registration with the Ministry of Commerce and Revenue Department held on September 11, 2008 and September 15, 2008, respectively (during liquidation). The Bank’s consolidated financial statements exclude the accounts of N.C. Associates Co., Ltd. due to the business dissolution, registration with the Ministry of Commerce and Revenue Department was held on December 28, 2005 and the liquidation was done in 2008 (Note 3.3.4). Percentages of shareholdings and investments in subsidiaries and associated companies are shown in Note 3.3.4 Investments in associated companies, shown in the consolidated financial statements, are accounted for by the equity method. The Bank’s Financial Statements Investments in subsidiaries and associated companies, shown in the Bank’s financial statements, are accounted for by the cost method. The Bank’s financial statements for the years-ended December 31, 2009 and 2008 included the accounts of domestic and overseas branches, after eliminating material inter-branch transactions and balances. Annual Report 2009 Krung Thai Bank Pcl.

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1.2 Revised Accounting Standards and Financial Reporting Standards

1.2.1 Adoption of Revised Accounting Standards The Federation of Accounting Professions issued Notification No. 86/B.E. 2551 (2008) dated November 12, 2008 and No. 16/B.E. 2552 (2009) dated May 21, 2009 to use new accounting standards, financial reporting standards and practical guidelines. In 2009, The Bank and subsidiaries have adopted the revised accounting standards which related to the Bank’s operations as follows: - TAS 36 (revised 2007) Impairment of Assets (previously TAS 36) - TFRS 5 (revised 2007) Non-Current Assets Held for Sale and Discontinued Operations (previously TAS 54) - Accounting Framework (revised 2007), effective on June 26, 2009 - Practical Guidelines for the Accounting Record of the Leasehold Right There is insignificant effect to the consolidated financial statements and the Bank’s financial statements that used those revised accounting standards, financial reporting standards, and practical guidelines. Following the practical guidelines results in reclassification of leasehold right from intangible assets to other assets (Note 3.10). 1.2.2 Announced Accounting Standards, Not Effective in 2009 The Federation of Accounting Professions issued Notification No. 16/B.E. 2552 (2009) dated May 21, 2009 which was announced in the Government Gazette already but is still not effective in 2009 as follows:

TAS 20

TAS 24

TAS 40

Accounting Standard

Effective Date

Accounting for Government Grants and Disclosure of Government Assistance (revised 2007) Related Party Disclosure (previously TAS 47) Investment Property

1 January 2012 1 January 2011 1 January 2011

1.2.3 Rearrangement of the New TAS Numbers The Federation of Accounting Professions issued Notification No. 12/B.E. 2552 (2009) dated May 15, 2009, arranging the identification number of Thai Accounting Standards in accordance with International Accounting Standards. According to the Notification, these financial statements refer to the revised identification number of TAS. 2. SIGNIFICANT ACCOUNTING POLICIES 2.1 Cash and Cash Equivalents Cash and cash equivalents represent cash in hand and cash on collection. 2.2 Recognition of Interest Income Interest income is recognized on an accrual basis, except for interest on loans classified as delinquent over 3 months and interest on loans under troubled debt restructuring contract. In accordance with the BOT’s regulations, interest income on delinquent loans over 3 months from the due date already recognized as an

144


income beginning from January 1, 2000 has been reversed from the Statements of Income and recognized as income when the actual payments are received. The recognition of income generated from rental contract of a certain subsidiary company is as follows: - Interest income from hire-purchasing and financial lease is recognized by using effective interest rate throughout the contract period. Interest on delinquent lease over 4 periods is reversed from income statements whereas over 3 periods for consumer product debtor will be reversed and recognized only when the actual payment are received. - Income from operational contract is recognized on a straight-line basis over the lease term. 2.3 Recognition of Expenses Interest expense and non-interest expense are recognized on an accrual basis. 2.4 Investments in Securities 2.4.1 Basis of Classification of Investments The Bank classifies its marketable debt and/or equity securities as trading securities, and/or as available-for-sale securities, and held-to-maturity securities. Non-marketable equity securities are classified as general investments. Securities held for less than 1 year are presented as current investments, while those held exceeding 1 year are presented as long-term investments. Trading securities are classified as current investments. 2.4.2 Basis of Valuation of Investments Investments in marketable debt or equity securities classified as trading securities are stated at fair value. Unrealized gains or losses arising from the revaluation are credited or charged as non-interest income directly to the Statements of Income under non-interest income item. Investments in marketable debt or equity securities classified as available-for-sale securities are stated at fair value. Unrealized gains or losses arising from the revaluation are shown as a separate component in shareholders’ equity and realized gains or losses on disposal of those securities are credited or charged to the Statement of Income. Investments in debt securities classified as held to maturity are stated at the amortized cost. Premiums or discounts arising on acquisition are amortized or accreted at month-end over the periods to maturity by using the straight-line method which the effect is not materially different from using the effective interest yield method. Investments in non-marketable equity securities are classified as general investments are stated at cost, net of allowance for impairment. Losses on impairment are charged to the statements of income. Investments in marketable investment units classified as trading and available-for-sale securities are stated at fair value whereas investments in non-marketable investment units are stated at net value of financial assets. Investments in foreign asset-backed debt securities classified as trading securities-current investments are stated at fair value. Investments in subsidiaries and associates, shown in the Bank’s financial statements, are accounted for by using the cost method, net of allowance for impairment. Investments in subsidiaries and associates, shown in the consolidated financial statements of the Bank’s and its subsidiaries are accounted for by using the equity method (associated companies based on unaudited/ unreviewed financial statements). The cost of disposed investments is calculated by using the weighted average method. Gains or losses Annual Report 2009 Krung Thai Bank Pcl.

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on disposal of investments is presented under non-interest income item in the Statement of Income. Dividend income from investments is recognized as income when dividend is declared (except for dividend from associated companies in consolidated financial statements which are recognized on equity method). 2.5 Loans Loans represent the outstanding principal amounts, except for bank overdrafts which include accrued interest receivable. Unearned discounts are presented as net deduction from the loans. 2.6 Allowance for Doubtful Accounts The Bank’s allowance for doubtful accounts are set up in compliance with the Bank of Thailand (BOT)’s Notifications No. SOR NOR SOR. 31/B.E. 2551 (2008) dated August 3, 2008 regarding Guidelines on Assets Classification and Provisioning of Financial Institutions and with the BOT’s Guidelines on valuation and appraisal of collateral and immovable properties foreclosed acquired through debt repayment dated August 3, 2008. The Notifications and Policy Guidelines are summarized as follows: 1. The Bank has set aside provision for impaired-debtors at 100 percent of the difference between the book value of loans and the present value of expected cash flows from the disposals of collateral as to the practice stipulated by the BOT. 2. Collateral to be calculated the present value of expected cash flows from the sales are immovable properties, leasehold rights, and machineries (e.g. the present value of expected cash flows from disposals of immovable properties which are collateral of debtors under the litigation process is 62.03 percent of the appraisal value, the present value of expected cash flows from disposals of immovable properties which are collateral of debtors under the public auction process is 66.38 percent of the appraisal value). Other types of collateral are calculated by using the valuation rate specified by the BOT. 3. Collateral valuation has been conducted according to the BOT’s regulation in association with types of collateral, valuation methodology, valuation frequency, and values of collateral that can be deductible before provisioning as follows: - As for pass and special mention categories, the underlying collateral is required to reappraise or revalue on a 3-year basis except for that for every credit line of housing loans and other loans apart from housing loans with credit lines or outstanding balances not exceeding Baht 5 million. - As for sub-standard, doubtful and doubtful of loss, the appraisal or valuation of collateral is conducted by using the methods specified by the BOT. All types of immovable properties and machineries are required to reappraise or revalue on a 3-year basis as a minimum; whereas, near-cash collateral such as marketable securities and non-traded securities, is required to reappraise or revalue on the end of each accounting period. However, the Bank has also considered provisioning on a qualitative basis by assessing debtors’ solvency. Since the accounting period of 2008, the Bank has gradually set aside the allowance for doubtful accounts on a monthly basis of Baht 500 million. Apart from this, the additional provision has been appropriately considered by the Management. Bad debts written off and bad debts recovered are either deducted from or added to the allowance for doubtful accounts, whichever the case may be. Any debtors classified as doubtful of loss and considered uncollectible are written off at the value of underlying provisioning as prescribed by the Bank’s write-off policy which is in line with the BOT’s guideline.

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2.7 Determination of losses on Troubled Debt Restructuring (TDR) Losses arising on debt restructuring were determined as follows: 2.7.1 Where the Bank accepts relaxation of the repayment conditions without reducing principal and accrued interest prior to troubled debt restructuring, the present value of expected cash flow received is discounted by using the interest rate under the conditions specified in the TDR contract. In case where such interest rate is lower than financial cost rate, the financial cost rate is used instead. Where the present value computed is lower than the book value (the principal amount plus interest receivable included in the outstanding balance of restructured debt), an allowance for losses on troubled debt restructuring is recognized in income statement for the relevant period. The component of financial costs encompasses the cost of deposits and weighted average loans, including the Bank’s contributions to the Financial Institutions Development Fund and expenses incurred to maintain liquidity. 2.7.2 Where the Bank accepts assets transferred, financial instruments, or debt-equity conversion for repayment, total accounts receivables are entirely written off. Losses arising are charged to Statements of Income instantly upon the receipt of transfer by taking into account the original allowance for doubtful of loss provided. Hence, the value of transferred assets shall be recorded not higher than the book value of the debt plus accrued interest receivable entitled by the Bank. In case of partial settlement of debt through the transfer of assets, financial instruments or debt-equity conversion, the Bank’s practice is to follow No. 2.7.2 in the first place. For the remaining amount of debt (with the relaxation of lending criteria), the Bank follows No. 2.7.1.

2.8 Properties Foreclosed

Properties foreclosed are immovable and movable properties which are stated at lower of cost or market value less allowance for impairment. Losses on impairment or reversal of losses on impairment are recognized as non-interest expenses/income in the Statements of Income. Gains or losses on disposals of those properties after deducting selling expenses are recognized as non-interest income/expenses in the Statements of Income. 2.9 Property, Premises and Equipment Property, premises and equipment are stated at cost less accumulated depreciation and allowance for asset impairment. Land is revalued on a 3-5 year basis. A deficit on revaluation of land is recognized as loss on impairment in the Statements of Income. A surplus on revaluation of land is recognized in appraisal surplus on assets revaluation account and shown in the shareholders’ equity. Subsidiaries’ land is stated at cost. Depreciation of premises and equipment is calculated on the straight-line basis over their estimated useful lives at the rate of 5 percent per annum for premises and 20 percent per annum for equipment. Equipment with an acquisition cost not exceeding Baht 3,000 is charged directly to expense in the period of acquisition. 2.10 Intangible Assets Intangible assets comprising software licenses and computer system development costs are stated at cost less accumulated amortization and allowance for impairment. Amortization is calculated on the straight-line basis at the rate of 10 percent per annum and recognized in the Statements of Income.

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2.11 Leasehold Rights Leasehold rights are stated at cost less accumulated amortization. Amortization is calculated on the straight-line basis over the lease term between 3-30 years and recognized as expense in the statements of income. 2.12 Impairment of Assets For outstanding balances of assets as of the end of period, the Bank reviews the impairment of assets by items when there is an indication that the book value of those assets is higher than the expected recoverable amounts. As such, losses on impairment will be realized in the statements of income. The reversal of losses on impairment will be recorded only when there is an indication that such impairment no longer exists or shown at a declining balance, if any, and credited to Other Income. 2.13 Foreign Currency Translation Assets and liabilities denominated in foreign currency are translated into Thai Baht at the rates of exchange prevailing at the dates of the transaction. Translation of assets and liabilities balances into Thai Baht uses reference rates of exchange announced by the BOT at month-end. Foreign exchange (FX) gains or losses arising from translation are dealt with through the profit and loss account in the relevant period. Risk management of assets and liabilities dominated in foreign currency is performed under the BOT’s supervision. Net individual foreign currency position shall be maintained on a daily basis where its overbought or oversold position shall not exceed 15 percent in proportion to their capital fund or USD 5 million, whichever is greater. Also, aggregate foreign currency position shall be maintained on a daily basis where its overbought or oversold position shall not exceed 20 percent in proportion to thier capital fund or USD 10 million, whichever is greater. Reserve for FX unusual volatility is provided to moderate the impact of losses expected in subsequent periods. 2.14 Derivatives The accounting treatments for financial derivative transactions in response to their purposes are as follows: 1. Trading Derivatives The Bank records at fair value and recognizes gains or losses arising from changes of fair value in income statements along with assets and liabilities in balance sheet. 2. Hedging Derivatives The Bank measures in the same manner consistent with the measurement of the hedged items. 2.15 Embedded Derivatives Accounting for Embedded Derivative namely Credit Derivative Transaction and Structured Deposit/Note in line with the IAS 39 Financial Instruments : Recognition and Measurement is treated by way of the followings: 1. Embedded Derivative must be separated from the host contract when it is able to determine reliably and classified as ‘Not closely related’ and measured at fair value through profit and loss whereas the measurement of host contract is accounted for under the applicable Accounting Standards. Conversely if the entity is unable to determine reliably, the fair value is measured by the entire contract and classified as held for trading measured at fair value through profit and loss.

148


2. Embedded Derivative must not be separated from the host contract when determined as ‘Closely related’ and accounted for as an integral part of the host contract under the applicable Accounting Standards to the host contract. 2.16 Employees Provident Fund and Retirement Pay The Bank established a Provident Fund under the Provident Fund Act B.E. 2530 (1987) and entered to the registered fund approved by the Ministry of Finance on June 25, 1992. The Provident Fund is managed by an external fund manager. Permanent employees of the Bank are entitled to apply for membership according to the registered KTB Provident Fund’s regulations. Employees can opt out to contribute to the Fund at the rate of either 3 percent, 6 percent, or 10 percent of basic salary while the Bank’s supplemental contribution is at 10 percent of the employees’ basic salary. Employees whose working tenure totals ten years or more are entitled to special remuneration as prescribed by the Bank which is charged to expenses in the relevant period. 2.17 Unclaimed Balances Unclaimed balances which remain dormant for more than 10 years are taken to non-interest income at the accounting period-end. 2.18 Income Tax The Bank’s income tax expenses are recorded based on tax paid and tax accrued for the year. 2.19 Basic Earnings per Share Basic Earnings per share are calculated by dividing the net income/(loss), in associated with ordinary shares, by the weighted average number of ordinary shares outstanding. Diluted Earnings per Share Diluted Earnings per share are calculated by dividing the net income after deducting noncumulative preferred dividend declared during the period by the weighted-average number of ordinary share outstanding. 2.20 Accounting Estimates In compliance with generally accepted accounting principles, the Bank is required to make estimates and assumptions in the financial statements that affect the reported amounts of income, expense, assets and liabilities and the disclosure of contingent assets and liabilities. Actual results could differ from those estimates. 2.21 Provisions, Contingent Liabilities The Bank of Thailand issued the Notification No. SOR NOR SOR. 31/B.E. 2551 (2008) dated August 3, 2008 regarding Guidelines on Assets Classification and Provisioning of Financial Statements prescribing the provisioning regulations in associated with the off-balance sheet obligation underlying significant impacts that may arise from the misuse of the off-balance sheet items in conformity with Accounting Standard 37 regarding Provisions, Contingent Liabilities and Contingent Assets, the Bank is required to set aside the provisions for off-balance sheet items satisfying the following criteria:

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1. Off-balance sheet obligation classified as substandard, doubtful, doubtful of loss and loss 2. Off-balance sheet obligation which the Bank should recognized provisions under liabilities shown on Balance Sheet according to item 14 in Thai Accounting Standard No. 37 when satisfying the following criteria: 2.1 A present obligation resulting from past events that may be a legal or a constructive obligation. 2.2 It is possibly certain that there will be a future outflow of resources embodying economic benefit to settle such obligation, and 2.3 A reliable estimate of obligation can be made. 3. Off-balance sheet obligation engage in high credit risk such as guarantee of loan, aval to bill or irrevocable obligation whereby the Credit Conversion Factor stipulated by the BOT in calculating Capital Fund to be maintained is equal to 1.0.

3. SUPPLEMENTARY INFORMATION

3.1 Disclosure of Cash Flow Information Significant non-cash items for the years ended December 31, 2009 and 2008 set out as the table below:

Increased (Decreased) Revaluation Surplus on Investments in Shareholders’ Equity Increased (Decreased) Appraisal Surplus on Properties Changes from Long-term Investments to Current Investments Investments increased from Loan Payment Properties Foreclosed increased from Loan Payment Transfer of Properties Foreclosed to Properties, Premises and Equipment Transfer of Properties, Premises and Equipment to Properties Foreclosed

150

(Million Baht)

Consolidated Financial Statements The Bank’s Financial Statements December 31, 2009 December 31, 2008 December 31, 2009 December 31, 2008

2,109.07 (476.83)

(947.63) -

2,415.55 (476.83)

(1,306.45) -

- - 6,700.97

7,055.95 5.04 6,312.34

- - 6,700.97

7,055.95 5.04 6,312.34

8.14

67.86

8.14

67.86

-

22.55

-

22.55


3.2 Interbank and Money Market Items 3.2.1 Domestic Items Bank of Thailand and Financial Institutions Development Fund Commercial banks Other banks Finance Co., Finance & Securities Co., Securities Co., and Credit Fonciers Co. Other financial institutions Total Domestic Items Add Accrued interest receivable Less Allowance for doubtful accounts Total

3.2.2 Foreign Items US Dollar Japanese Yen Other currencies Total Foreign Items Add Accrued interest receivable Less Allowance for doubtful accounts Total Total Domestic and Foreign Items

(Million Baht)

Consolidated Financial Statements December 31, 2009 Demand Time Total

December 31, 2008 Demand Time Total

10,135.01 147,500.36 157,635.37 5,826.83 7,557.00 13,383.83 21.41 865.00 886.41 145.44 873.59 1,019.03 13.30 40,560.33 40,573.63 0.05 16,265.60 16,265.65 - 450.52 450.52 - 207.51 207.51 69.44 41,591.64 41,661.08 146.11 44,709.38 44,855.49 10,239.16 230,967.85 241,207.01 6,118.43 69,613.08 75,731.51 - 537.15 537.15 - 104.88 104.88 (0.69) (361.77) (362.46) - (385.74) (385.74) 10,238.47 231,143.23 241,381.70 6,118.43 69,332.22 75,450.65 3,548.69 5,743.53 9,292.22 351.60 - 351.60 1,146.02 676.72 1,822.74 5,046.31 6,420.25 11,466.56 0.01 22.77 22.78 - (3.67) (3.67) 5,046.32 6,439.35 11,485.67 15,284.79 237,582.58 252,867.37

1,104.18 13,082.94 14,187.12 142.09 - 142.09 846.72 2,254.77 3,101.49 2,092.99 15,337.71 17,430.70 - 145.36 145.36 - (4.19) (4.19) 2,092.99 15,478.88 17,571.87 8,211.42 84,811.10 93,022.52

Annual Report 2009 Krung Thai Bank Pcl.

151


3.2 Interbank and Money Market Items (continued)

(Million Baht)

The Bank’s Financial Statements December 31, 2009 Demand Time Total

December 31, 2008 Demand Time Total

3.2.1 Domestic Items Bank of Thailand and Financial Institutions Development Fund 10,135.01 147,500.36 157,635.37 5,826.83 7,557.00 13,383.83 Commercial banks 98.54 865.00 963.54 55.75 873.59 929.34 Other banks 13.30 40,560.33 40,573.63 0.05 16,265.60 16,265.65 Finance Co., Finance & Securities Co., Securities Co., and Credit Fonciers Co. - 450.52 450.52 - 207.51 207.51 Other financial institutions 69.44 41,591.64 41,661.08 146.11 44,709.38 44,855.49 Total Domestic Items 10,316.29 230,967.85 241,284.14 6,028.74 69,613.08 75,641.82 Add Accrued interest receivable - 537.15 537.15 - 104.88 104.88 Less Allowance for doubtful accounts (0.69) (361.77) (362.46) - (385.74) (385.74) Total 10,315.60 231,143.23 241,458.83 6,028.74 69,332.22 75,360.96

3.2.2 Foreign Items US Dollar Japanese Yen Other currencies Total Foreign Items Add Accrued interest receivable Less Allowance for doubtful accounts Total Total Domestic and Foreign Items

152

3,548.69 5,743.53 9,292.22 351.60 - 351.60 1,146.02 676.72 1,822.74 5,046.31 6,420.25 11,466.56 0.01 22.77 22.78 - (3.67) (3.67) 5,046.32 6,439.35 11,485.67 15,361.92 237,582.58 252,944.50

1,104.18 142.09 846.72 2,092.99 - - 2,092.99 8,121.73

13,082.94 14,187.12 - 142.09 2,254.77 3,101.49 15,337.71 17,430.70 145.36 145.36 (4.19) (4.19) 15,478.88 17,571.87 84,811.10 92,932.83


3.3 Investments

(Million Baht)

Consolidated Financial Statements December 31, 2009 Cost / Unrealized Unrealized Amortized Cost Gains Losses

3.3.1 Current Investments Trading Securities Government & state enterprise securities 23,632.76 Private enterprise debt securities 80.22 Foreign debt securities 6,583.65 Total 30,296.63 Less Allowance for revaluation (2,409.42) Total 27,887.21 Available-for-Sale Securities Government & state enterprise securities 38,590.53 Private enterprise debt securities - Foreign debt securities 5.02 Total 38,595.55 Add Allowance for revaluation 5.15 Less Allowance for impairment - Total 38,600.70 Held-to-Maturity Debt Securities Government & state enterprise securities 5,000.00 Private enterprise debt securities 185.71 Foreign debt securities 3,663.08 Total 8,848.79 Less Allowance for impairment (35.71) Total 8,813.08 Total Current Investments - net 75,300.99

December 31, 2008 Fair Cost / Unrealized Unrealized Value Amortized Cost Gains Losses

11.09 (1.11) 23,642.74 13,527.03 0.81 - 81.03 7.12 - (2,188.07) 4,395.58 8,984.60 11.90 (2,189.18) 28,119.35 22,518.75 (5,763.85) 28,119.35 16,754.90 9.34 - - 9.34 71.13 0.18 - 71.31

Fair Value

87.02 (0.05) 13,614.00 0.01 - 7.13 - (5,757.92) 3,226.68 87.03 (5,757.97) 16,847.81

16,847.81

(4.19) 38,595.68 20,598.54 75.69 - - 147.60 12.04 - 5.02 73.49 - (4.19) 38,600.70 20,819.63 87.73 87.73 (0.72) 38,600.70 20,906.64

- 20,674.23 - 159.64 (0.72) 72.77 (0.72) 20,906.64 20,906.64

- 5,071.13 7,408.23 120.30 (71.55) 7,456.98 (35.71) 150.18 35.71 - (35.71) - - 3,663.08 335.13 - - 335.13 (35.71) 8,884.39 7,779.07 120.30 (107.26) 7,792.11 (35.71) 8,884.39 7,743.36 7,792.11 75,604.44 45,404.90 45,546.56

Annual Report 2009 Krung Thai Bank Pcl.

153


(Million Baht)

Consolidated Financial Statements December 31, 2009 Cost / Unrealized Unrealized Amortized Cost Gains Losses

3.3.2 Long-Term Investments Available-for-Sale Securities Government & state enterprise securities 7,068.77 66.06 Private enterprise debt securities 1,490.93 0.13 Foreign debt securities 212.56 - Domestic marketable equity securities 1,570.03 760.17 Others - VAYUPAKSA MUTUAL FUND 1 29,417.05 401.92 Total 39,759.34 1,228.28 Add (Less) Allowance 946.82 for revaluation Less Allowance for impairment (3.30) Total 40,702.86 Held-to-Maturity Debt Securities Government & state enterprise securities 11,416.06 - Private enterprise debt securities 1.06 - Foreign debt securities - - Total 11,417.12 - Less Allowance for impairment (1.06) Total 11,416.06 General Investments Domestic non-marketable equity securities 1,943.24 - Foreign non-marketable equity securities 65.24 - Total 2,008.48 - Less Allowance for impairment (339.99) Total 1,668.49 Total Long-Term Investments - net 53,787.41

154

December 31, 2008 Fair Cost / Unrealized Unrealized Value Amortized Cost Gains Losses

Fair Value

(52.99) 7,081.84 2,780.36 285.07

- 3,065.43

(17.14) 1,473.92 4,052.00 141.56 (2.37) 210.19 114.23 -

(6.45) 4,187.11 (1.66) 112.57

(212.26) 2,117.94 1,570.03 535.33 (439.41) 1,665.95 - 29,818.97 29,412.96 - (2,068.29) 27,344.67 (284.76) 40,702.86 37,929.58 961.96 (2,515.81) 36,375.73

(1,551.32)

(2.53) 40,702.86 36,375.73

36,375.73

(4.47) 11,411.59 18,030.22 212.90

- 18,243.12

(1.06) - 301.36 - - - 3,494.37 - (5.53) 11,411.59 21,825.95 212.90

(1.36) 300.00 - 3,494.37 (1.36) 22,037.49

(1.36) 11,411.59 21,824.59

22,037.49

(337.50) 1,605.74 3,035.86

- (1,384.03) 1,651.83

(2.49) 62.75 96.52 (339.99) 1,668.49 3,132.38

- (30.93) 65.59 - (1,414.96) 1,717.42

(1,414.96) 1,668.49 1,717.42

1,717.42

53,782.94 59,917.74

60,130.64


(Million Baht)

Consolidated Financial Statements

Within 1 year

December 31, 2009

December 31, 2008

Maturity Total Over 1 Over Within to 5 years 5 years 1 year

Maturity Over 1 Over to 5 years 5 years

Total

3.3.3 Maturity Schedule of Debt Securities Available-for-Sale Securities Government & state enterprise securities 38,590.53 7,067.78 0.99 45,659.30 20,598.54 300.00 2,480.36 23,378.90 Private enterprise debt securities - 1,040.93 450.00 1,490.93 147.60 1,247.00 2,805.00 4,199.60 Foreign debt securities 5.02 104.30 108.26 217.58 73.49 5.06 109.17 187.72 Total 38,595.55 8,213.01 559.25 47,367.81 20,819.63 1,552.06 5,394.53 27,766.22 Add (Less) Allowance for revaluation 5.15 12.42 (16.50) 1.07 87.73 37.65 382.33 507.71 Less Allowance for impairment - (2.24) - (2.24) (0.72) (1.47) - (2.19) Total 38,600.70 8,223.19 542.75 47,366.64 20,906.64 1,588.24 5,776.86 28,271.74 Held-to-Maturity Debt Securities Government & state enterprise securities 5,000.00 9,904.56 1,511.50 16,416.06 7,408.23 16,464.65 1,565.57 25,438.45 Private enterprise debt securities 185.71 - 1.06 186.77 35.71 300.00 1.36 337.07 Foreign debt securities 3,663.08 - - 3,663.08 335.13 3,494.37 - 3,829.50 Total 8,848.79 9,904.56 1,512.56 20,265.91 7,779.07 20,259.02 1,566.93 29,605.02 Less Allowance for impairment (35.71) - (1.06) (36.77) (35.71) - (1.36) (37.07) Total 8,813.08 9,904.56 1,511.50 20,229.14 7,743.36 20,259.02 1,565.57 29,567.95 Total Debt Securities 47,413.78 18,127.75 2,054.25 67,595.78 28,650.00 21,847.26 7,342.43 57,839.69

Annual Report 2009 Krung Thai Bank Pcl.

155


(Million Baht)

The Bank’s Financial Statements

December 31, 2009

December 31, 2008

Cost / Unrealized Unrealized Amortized Cost Gains Losses

Fair Cost / Unrealized Unrealized Value Amortized Cost Gains Losses

3.3.1 Current Investments Trading Securities Government & state enterprise securities Private enterprise debt securities Foreign debt securities Total Less Allowance for revaluation Total Available-for-sale Securities Government & state enterprise securities Private enterprise debt securities Foreign debt securities Total Add Allowance for revaluation Less Allowance for impairment Total Held-to-Maturity Debt Securities Government & state enterprise securities Private enterprise debt securities Foreign debt securities Total Less Allowance for impairment Total Total Current Investments - net

156

23,632.76

11.09

(1.11) 23,642.74 13,527.03

80.22 6,583.65 30,296.63

0.81 - 81.03 7.12 - (2,188.07) 4,395.58 8,984.60 11.90 (2,189.18) 28,119.35 22,518.75

87.02

Fair Value

(0.05) 13,614.00

0.01 - 7.13 - (5,757.92) 3,226.68 87.03 (5,757.97) 16,847.81

(2,409.42) 27,887.21

(5,763.85) 28,119.35 16,754.90

16,847.81

38,590.53

9.34

(4.19) 38,595.68 20,598.54

75.69

- 20,674.23

- 5.02 38,595.55

- - 9.34

- - 147.60 - 5.02 73.49 (4.19) 38,600.70 20,819.63

12.04 - 87.73

- 159.64 (0.72) 72.77 (0.72) 20,906.64

5.15

- 38,600.70

(0.72) 38,600.70 20,906.64

20,906.64

5,000.00

71.13

- 5,071.13 7,408.23 120.30

(71.55) 7,456.98

185.71 3,663.08 8,848.79

0.18 (35.71) 150.18 35.71 - (35.71) - - - 3,663.08 335.13 - - 335.13 71.31 (35.71) 8,884.39 7,779.07 120.30 (107.26) 7,792.11

87.73

(35.71) 8,813.08

(35.71) 8,884.39 7,743.36

7,792.11

75,300.99

75,604.44 45,404.90

45,546.56


(Million Baht)

The Bank’s Financial Statements

December 31, 2009

December 31, 2008

Cost / Unrealized Unrealized Amortized Cost Gains Losses

Fair Cost / Unrealized Unrealized Value Amortized Cost Gains Losses

3.3.2 Long-Term Investments Available-for-sale Securities Government & state enterprise securities 7,068.77 66.06 Private enterprise 1,490.93 0.13 debt securities Foreign debt securities 212.56 - Domestic marketable 1,570.03 760.17 equity securities Others - VAYUPAKSA 29,417.05 401.92 MUTUAL FUND 1 Total 39,759.34 1,228.28 Add (Less) Allowance 946.82 for revaluation Less Allowance (3.30) for impairment Total 40,702.86 Held-to-Maturity Debt Securities Government & state - enterprise securities 11,416.06 Private enterprise 1.06 - debt securities Foreign debt securities - - Total 11,417.12 - Less Allowance (1.06) for impairment Total 11,416.06 General Investments Domestic non-marketable 1,943.24 - equity securities Foreign non-marketable 65.24 - equity securities Total 2,008.48 - Less Allowance for (339.99) impairment Total 1,668.49 Total Long-Term 53,787.41 Investments - net

Fair Value

(52.99) 7,081.84 2,780.36 285.07

- 3,065.43

(17.14) 1,473.92 4,052.00 141.56 (2.37) 210.19 114.23 -

(6.45) 4,187.11 (1.66) 112.57

(212.26) 2,117.94 1,570.03 535.33 (439.41) 1,665.95 - 29,818.97 29,412.96 - (2,068.29) 27,344.67 (284.76) 40,702.86 37,929.58 961.96 (2,515.81) 36,375.73

(1,551.32)

(2.53) 40,702.86 36,375.73

36,375.73

(4.47) 11,411.59 18,030.22 212.90

- 18,243.12

(1.06) - 301.36 - - - 3,494.37 - (5.53) 11,411.59 21,825.95 212.90

(1.36) 300.00 - 3,494.37 (1.36) 22,037.49

(1.36) 11,411.59 21,824.59

22,037.49

(337.50) 1,605.74 3,035.86

- (1,384.03) 1,651.83

(2.49) 62.75 96.52 (339.99) 1,668.49 3,132.38

- (30.93) 65.59 - (1,414.96) 1,717.42

(1,414.96) 1,668.49 1,717.42

1,717.42

53,782.94 59,917.74

60,130.64

Annual Report 2009 Krung Thai Bank Pcl.

157


Shown in the Consolidated and the Bank’s financial statements as at December 31, 2009 and 2008, the Bank’s long-term investments in Government and State Enterprise debt securities held-to-maturity included promissory notes issued by the Thai Asset Management Corporation (TAMC) in exchange for the transfer of the Bank’s impaired assets amounting to Baht 10,416.07 million and Baht 12,030.22 million, respectively (Note 3.29). Reclassification of Investments In 2008, according to the BOT’s Notification No. SOR NOR SOR. 9/B.E. 2551 (2008), dispatched on August 3, 2008 Re : the Permission granted to Commercial Banks to invest in Collateralized Debt Obligations - CDOs, stipulated the Bank to perform in compliance with the international accounting standards, hence, from accounting period commencing in or after January 1, 2008. On January 31, 2008, the Bank reclassified type of investments in foreign asset-backed debt securities from long-term investments, held-to-maturity foreign debt securities to current investments in trading foreign debt securities. The related cost price was Baht 6,922.68 million and its fair value stated at Baht 3,778.14 million. The difference of Baht 3,144.54 was an allowance for revaluation transferred from an allowance for doubtful accounts amounting to Baht 3,000 million (Note 3.5) and booked as losses arising from such reclassification of Baht 144.54 million. As of December 31, 2009 and 2008, current investments in trading foreign debt securities of Baht 6,583.65 million and Baht 8,984.60 million entirely represented the asset-backed debt securities. When booked at their fair value of Baht 4,395.58 million and Baht 3,226.68 million, the difference amounting to Baht 2,188.07 million and Baht 5,757.92 million, respectively, would represent an allowance for revaluation. Besides, the Bank has provided for in full the allowance for revaluation against foreign debt securities, CDO type, with its residual fair value at Baht 232.15 million and Baht 92.91 million, as to the following: (Million Baht)

December 31, 2009

Cost Value Fair Value

Collateralized Debt Obligations (CDO) Credit Linked Notes (CLN) First to Default Credit Linked Notes (FTDN)

Allowance for Revaluation

2,335.81 232.15 (2,103.66) 3,336.87 3,265.26 (71.61) 910.97 898.17 (12.80) 6,583.65 4,395.58 (2,188.07)

Allowance (Increase)

Book Value

(232.15) - - 3,265.26 - 898.17 (232.15) 4,163.43 (Million Baht)

December 31, 2008

Cost Value Fair Value

Collateralized Debt Obligations (CDO) Credit Linked Notes (CLN) First to Default Credit Linked Notes (FTDN)

158

Allowance for Revaluation

5,584.57 92.91 (5,491.66) 2,446.06 2,257.47 (188.59) 953.97 876.30 (77.67) 8,984.60 3,226.68 (5,757.92)

Allowance (Increase)

Book Value

(92.91) - - 2,257.47 - 876.30 (92.91) 3,133.77


Sales of Investments to the Bank’s Subsidiaries

In 2009, the Bank sold CDO, original cost of Baht 3,090.46 million with the same amount of allowance for revaluation, to one of the Bank’s subsidiaries for Baht 3. Moreover, the Bank sold general investments which are investments in common stock of 12 companies, original cost of Baht 912.41 million with the same amount of allowance for impairment, to one of the Bank’s subsidiaries for Baht 13. (Million Baht)

The Bank’s Financial Statements

December 31, 2009

Within 1 year

Maturity Total Over 1 Over Within to 5 years 5 years 1 year

December 31, 2008 Maturity Over 1 to 5 years

Over 5 years

Total

3.3.3 Maturity Schedule of Debt Securities Available-for-Sale Securities Government & state enterprise securities 38,590.53 7,067.78 0.99 45,659.30 20,598.54 300.00 2,480.36 23,378.90 Private enterprise debt securities - 1,040.93 450.00 1,490.93 147.60 1,247.00 2,805.00 4,199.60 Foreign debt securities 5.02 104.30 108.26 217.58 73.49 5.06 109.17 187.72 Total 38,595.55 8,213.01 559.25 47,367.81 20,819.63 1,552.06 5,394.53 27,766.22 Add (Less) Allowance for revaluation 5.15 12.42 (16.50) 1.07 87.73 37.65 382.33 507.71 Less Allowance for impairment - (2.24) - (2.24) (0.72) (1.47) - (2.19) Total 38,600.70 8,223.19 542.75 47,366.64 20,906.64 1,588.24 5,776.86 28,271.74 Held-to-Maturity Debt Securities Government & state enterprise securities 5,000.00 9,904.56 1,511.50 16,416.06 7,408.23 16,464.65 1,565.57 25,438.45 Private enterprise debt securities 185.71 - 1.06 186.77 35.71 300.00 1.36 337.07 Foreign debt securities 3,663.08 - - 3,663.08 335.13 3,494.37 - 3,829.50 Total 8,848.79 9,904.56 1,512.56 20,265.91 7,779.07 20,259.02 1,566.93 29,605.02 Less Allowance for impairment (35.71) - (1.06) (36.77) (35.71) - (1.36) (37.07) Total 8,813.08 9,904.56 1,511.50 20,229.14 7,743.36 20,259.02 1,565.57 29,567.95 Total Debt Securities 47,413.78 18,127.75 2,054.25 67,595.78 28,650.00 21,847.26 7,342.43 57,839.69

Annual Report 2009 Krung Thai Bank Pcl.

159


3.3.4 Investments in Subsidiaries and Associated Companies

Name of Company

Type of Business

Consolidated Financial Statements Type of Shares December 31, 2009 (Preferred/ Percentage of Ordinary Shareholding Investments Investments Dividend (Preferred/ (Cost Method) (Equity Method) Shares) Ordinary Shares)

Associated Companies Krungthai Axa Life Insurance Co., Ltd. Life Insurance Ordinary Krungthai Card Pcl. Credit Card Business Ordinary Krungthai Panich Insurance Co., Ltd. Non-Life & Ordinary Life Insurance Krungthai Charoensri Co., Ltd. Hire Purchase Ordinary Krung Thai IBJ Leasing Co., Ltd. Hire Purchase Ordinary KT ZMICO Co., Ltd. Securities Trades Ordinary (Formerly: KTB Securities Co., Ltd.) Total Investments in Associated Companies - net

Name of Company

Type of Business

Associated Companies Krungthai Axa Life Insurance Co., Ltd. Life Insurance Krungthai Card Pcl. Credit Card Business Krungthai Panich Insurance Co., Ltd. Non-Life & Life Insurance Krungthai Charoensri Co., Ltd. Hire Purchase Krung Thai IBJ Leasing Co., Ltd. Hire Purchase KTB Securities Co., Ltd. Securities Trades Total Investments in Associated Companies - net

(Million Baht)

50.00 593.57 1,427.46 - 49.45 1,994.60 3,190.18 - 45.00 971.30 1,525.46 79.20 35.00 49.00 50.00

35.00 - - 87.38 329.11 15.19 768.90 813.48 -

4,450.75 7,285.69 94.39 (Million Baht)

Consolidated Financial Statements Type of Shares December 31, 2008 (Preferred/ Percentage of Ordinary Shareholding Investments Investments Dividend (Preferred/ (Cost Method) (Equity Method) Shares) Ordinary Shares) Ordinary 50.00 593.57 1,382.46 - Ordinary 47.92 1,966.90 2,955.75 147.00 Ordinary

45.00

971.30 1,361.02 84.15

Ordinary 35.00 Ordinary 49.00 Ordinary 50.00

35.00 - - 87.38 300.43 12.74 432.00 188.58 -

4,086.15 6,188.24 243.89

The Bank’s consolidated financial statements exclude NC Associates Co., Ltd. (Note 1.1) due to business dissolution. In quarter 1/2008, the Baht 1.02 million of cash received from liquidation was rendered to the Bank with the Baht 0.48 million as gains on related investments. In the consolidated financial statements, investments in associated companies accounted for using the equity method are recorded based on financial information from unaudited/unreviewed financial statements of the associates. An investment in Krungthai Charoensri Co., Ltd., the Bank’s associates, which is accounted for using equity method has no value as of December 31, 2009 and 2008 due to the company’s losses in excess of capital. Krungthai Charoensri Co., Ltd. has discontinued its operation already and been under dissolution process.

160


3.3.4 Investments in Subsidiaries and Associated Companies (continued)

Name of Company

Type of Business

Subsidiaries Krung Thai Legal Services Co., Ltd. Legal Services Krung Thai General Business Services Co., Ltd. General Services Krung Thai Asset Management Pcl. Asset Management Krung Thai Computer Services Co., Ltd. IT Services Krung Thai Property Development Real Estate Co., Ltd. Development KTB Leasing Co., Ltd. Hire Purchase KTB Advisory Co., Ltd. Financial Counseling & Advisory Services Total Less Allowance for Impairment * Total Associated Companies Krungthai Axa Life Insurance Co., Ltd. Life Insurance Krungthai Card Pcl. Credit Card Business Krungthai Panich Insurance Co., Ltd. Non-Life & Life Insurance Krungthai Charoensri Co., Ltd. Hire Purchase Krung Thai IBJ Leasing Co., Ltd. Hire Purchase KT ZMICO Co., Ltd. Securities Trades (Formerly: KTB Securities Co., Ltd.) Total Less Allowance for Impairment * Total Total Investments in Subsidiaries and Associated Companies - net

Type of Shares (Preferred/ Ordinary Shares)

Ordinary Ordinary Ordinary Ordinary Ordinary Ordinary Ordinary

(Million Baht)

The Bank’s Financial Statements December 31, 2009

Percentage of Shareholding Investments (Preferred/ (Cost Method) Ordinary Shares)

100.00

Dividend

30.00 13.50

100.00 140.00 8.05 100.00 210.90 18.00 100.00 1,300.00 35.75

100.00 266.79 - 100.00 100.00 50.00

100.00 40.00 - 2,087.69 125.30 (128.25) - 1,959.44 125.30

Ordinary Ordinary Ordinary Ordinary Ordinary Ordinary

50.00 593.57 - 49.45 1,994.60 - 45.00 971.30 79.20 35.00 35.00 - 49.00 87.38 15.19 50.00 768.90 -

4,450.75 94.39 (128.71) - 4,322.04 94.39

6,281.48 219.69

The Bank registered KTB Advisory Co., Ltd. as a company limited on April 24, 2009 with authorized share capital of Baht 40 million which is 100 percent held by the Bank. Besides, the Bank has increased its investments in Krungthai Card Pcl. and KT ZMICO Co., Ltd. amounting to Baht 27.70 million and Baht 500 million, respectively. On November 2, 2009, KT ZMICO Co., Ltd. wrote down its shares from Baht 10 per share to Baht 8.25 per share for compensating accumulated deficit. The Bank wrote off the investments in that company to be loss on share write-down of invested company amounting to Baht 163.10 million. As a result, the cost of investments decrease from Baht 932 million to Baht 768.90 million. The Bank has already set full amount of allowance for impairment for that write-off. Annual Report 2009 Krung Thai Bank Pcl.

161


3.3.4 Investments in Subsidiaries and Associated Companies (continued)

Name of Company

Type of Business

Subsidiaries Krung Thai Legal Services Co., Ltd. Legal Services Krung Thai General Business Services Co., Ltd. General Services Krung Thai Asset Management Pcl. Asset Management Krung Thai Computer Services Co., Ltd. IT Services Krung Thai Property Development Real Estate Co., Ltd. Development KTB Leasing Co., Ltd. Hire Purchase Total Less Allowance for Impairment * Total Associated Companies Krungthai Axa Life Insurance Co., Ltd. Life Insurance Krungthai Card Pcl. Credit Card Business Krungthai Panich Insurance Co., Ltd. Non-Life & Life Insurance Krungthai Charoensri Co., Ltd. Hire Purchase Krung Thai IBJ Leasing Co., Ltd. Hire Purchase KTB Securities Co., Ltd. Securities Trades Total Less Allowance for Impairment * Total Total Investments in Subsidiaries and Associated Companies - net

Type of Shares (Preferred/ Ordinary Shares)

Ordinary Ordinary Ordinary Ordinary Ordinary Ordinary

(Million Baht)

The Bank’s Financial Statements December 31, 2008

Percentage of Shareholding Investments (Preferred/ (Cost Method) Ordinary Shares)

100.00

Dividend

30.00 12.00

50.00 593.57 47.92 1,966.90 45.00 971.30 35.00 35.00 49.00 87.38 50.00 432.00 4,086.15 (326.47) 3,759.68

- 147.00 84.15 - 12.74 - 243.89 - 243.89

100.00 140.00 19.95 100.00 210.90 60.00 100.00 1,300.00 32.50

100.00 266.79 - 100.00 100.00 - 2,047.69 124.45 (101.60) - 1,946.09 124.45

Ordinary Ordinary Ordinary Ordinary Ordinary Ordinary

5,705.77 368.34

* Allowance for Impairment of investments in Subsidiaries and Associated Companies arising when cost value is greater than carrying value.

162


3.3.5 Financial Position and Operations of Associated Companies

(Million Baht)

Consolidated Financial Statements

December 31, 2009

Name of Company

Total Assets

Krung Thai IBJ Leasing Co., Ltd. KT ZMICO Co., Ltd. (Formerly: KTB Securities Co., Ltd.) Krungthai Panich Insurance Co., Ltd. Krungthai Axa Life Insurance Co., Ltd. Krungthai Card Pcl.

“Unaudited” Total Shareholders’ Liabilities Equity

December 31, 2008 Total Assets

“Audited” Total Shareholders’ Liabilities Equity

3,992.66 3,321.02 671.64 3,996.62 3,384.86 3,386.43 1,759.47 1,626.96 725.41 375.03

611.76 350.38

4,558.52 1,168.60 3,389.92 4,225.80 1,193.58 3,032.22 24,582.69 21,727.76 2,854.93 17,929.32 15,164.40 2,764.92 50,016.68 43,565.43 6,451.25 51,898.94 45,733.73 6,165.21 86,536.98 71,542.28 14,994.70 78,776.09 65,851.60 12,924.49 (Million Baht)

Consolidated Financial Statements

December 31, 2009

Name of Company

Krung Thai IBJ Leasing Co., Ltd. KT ZMICO Co., Ltd. (Formerly: KTB Securities Co., Ltd.) Krungthai Panich Insurance Co., Ltd. Krungthai Axa Life Insurance Co., Ltd. Krungthai Card Pcl.

December 31, 2008

“Unaudited” “Audited” Total Income Net Profit (Loss) Total Income Net Profit (Loss)

355.43 1,040.01

90.89 116.07

362.44 235.25

103.29 (157.94)

1,414.31 13,294.32 12,354.53 28,458.60

342.08 957.33 286.03 1,792.40

1,458.34 9,319.82 12,029.09 23,404.94

366.32 656.95 520.40 1,489.02

3.3.6 Revaluation Surplus (Deficit) on Investments (Million Baht)

Balance brought forward Changes for the period Balance carried forward

Consolidated Financial Statements The Bank’s Financial Statements December 31, 2009 December 31, 2008 December 31, 2009 December 31, 2008 (563.79) 2,109.07 1,545.28

383.84 (947.63) (563.79)

(1,463.58) 2,415.55 951.97

(157.13) (1,306.45) (1,463.58)

Annual Report 2009 Krung Thai Bank Pcl.

163


In addition, the Bank has acquired the investments in other securities classified by industrial sector whereby the Bank holds equal to or more than 10 percent of the shareholdings stated at their fair value as follows : (Million Baht)

Manufacturing Banking and Financial Public Utilities and Services Others Total

Consolidated Financial Statements The Bank’s Financial Statements December 31, 2009 December 31, 2008 December 31, 2009 December 31, 2008 1.00 1.00 1.00 1.00 150.15 109.88 150.15 109.88 761.37 685.01 761.37 685.01 8.69 - 8.69 - 921.21 795.89 921.21 795.89

As of December 31, 2009 and 2008, the Bank’s investments in foreign debt securities which were affected by adverse foreign exchange rate movements, resulting in a decrease of Baht 404.52 million and an increase of Baht 353.06 million in value, respectively. 3.3.7 Gain (Loss) on net Investments shown in Statements of Income for the years-ended December 31, 2009 and 2008 comprises the following: (Million Baht)

Realized Gain (Loss) on disposal of Trading Securities Realized Gain (Loss) on disposal of Available- for-Sale Current Investments Realized Gain on disposal of Available-for- Sale Long-term Investments Realized Gain (Loss) on disposal of Long-term General Investments Gain (Loss) on Revaluation of Marketable Trading Securities Loss on Reclassification of Investments Gain (Loss) on Revaluation of Investments Reversal of Impairment (Loss) on Investments Loss on Share Write-Down of Invested Company Total Non-Interest Income - Gain on Investments, net

164

Consolidated Financial Statements December 31, 2009 Gain/Reversed

December 31, 2008

Gain/Reversed

Loss

Loss

236.83

(3,126.30)

200.49

229.81

(0.29)

47.39

-

59.86

-

134.50 0.78

- (1,042.41)

1,848.99

(82.56)

(1.14)

3,200.35 - - (2,719.53) - - - (183.29) - (7.32) 50.09 - 1,075.21 - - (7.18) - (108.35) - (172.41) 4,877.48 (4,284.67) 2,206.82 (3,166.11) 592.81 (959.29)


3.3.7 Gain (Loss) on net Investments shown in Statements of Income (continued)

Realized Gain (Loss) on disposal of Trading Securities Realized Gain (Loss) on disposal of Available- for-Sale Current Investments Realized Gain on disposal of Available- for-Sale Long-term Investments Realized Gain (Loss) on disposal of Long-term General Investments Gain (Loss) on Revaluation of Marketable Trading Securities Loss on Reclassification of Investments Gain (Loss) on Revaluation of Investments Reversal of Impairment (Loss) on Investments Loss on Share Write-Down of Invested Company Total Non-Interest Income - Gain on Investments, net

(Million Baht)

The Bank’s Financial Statements December 31, 2009 Gain/Reversed

December 31, 2008

Gain/Reversed

Loss

Loss

236.83

(3,126.30)

200.49

229.81

(0.29)

47.39

-

59.86

-

134.50

-

0.78

(1,042.41)

3,200.35 - - 1,246.32 - 5,048.59 600.82

1,848.99

(82.56)

(1.14)

- - (2,719.53) - - (183.29) (7.32) 50.09 - - 235.23 - (271.45) - (172.41) (4,447.77) 2,442.05 (3,158.93) (716.88)

3.3.8 Investments in listed companies whose financial position and operations fall under SET’s delisted criteria as of December 31, 2009 were as follows:

Equity Securities Prasit Pattana Pcl. Manager Media Group Pcl. Debt Securities Manager Media Group Pcl.

Cost

(Million Baht) Fair Value

Allowance for Impairmen t

0.77 0.29

- -

0.77 0.29

35.71

-

35.71

Annual Report 2009 Krung Thai Bank Pcl.

165


3.4 Loans and Accrued Interest Receivable

(Million Baht)

Consolidated Financial Statements The Bank’s Financial Statements December 31, 2009 December 31, 2008 December 31, 2009 December 31, 2008

Loans 1,073,512.27 1,044,609.26 1,074,666.01 1,046,146.23 Accrued interest receivable 3,722.23 4,835.46 3,724.49 4,838.79 Less Unearned discounts (1,631.94) (2,111.32) (65.15) (60.40) Total Loans and Accrued Interest Receivable 1,075,602.56 1,047,333.40 1,078,325.35 1,050,924.62

3.4.1 Classified by Type of Loans (Million Baht)

Consolidated Financial Statements The Bank’s Financial Statements December 31, 2009 December 31, 2008 December 31, 2009 December 31, 2008 Overdrafts 121,008.30 123,832.61 121,008.30 123,832.61 Fixed loans 644,944.99 608,540.31 655,824.53 617,553.46 Bills receivable 291,626.07 295,890.20 294,995.07 302,251.20 Hire Purchase Receivable 11,589.28 12,338.47 - - Financial Lease Receivable 1,396.20 1,422.02 - - Others 2,947.43 2,585.65 2,838.11 2,508.96 Total 1,073,512.27 1,044,609.26 1,074,666.01 1,046,146.23 Add Accrued interest receivable 3,722.23 4,835.46 3,724.49 4,838.79 Less Allowance for doubtful accounts (40,152.40) (35,075.26) (39,911.65) (34,889.47) Allowance for TDR revaluation (299.07) (509.62) (299.07) (509.62) Total 1,036,783.03 1,013,859.84 1,038,179.78 1,015,585.93 Less Unearned discounts (1,631.94) (2,111.32) (65.15) (60.40) Total 1,035,151.09 1,011,748.52 1,038,114.63 1,015,525.53

As of December 31, 2009 and 2008, the Bank’s other loans of Baht 2,838.11 million and Baht 2,508.96 million included Baht 2,585.57 million and Baht 2,163.97 million, respectively, of debts resulting from the Bank’s liabilities under acceptances or guarantees.

166


3.4.2 Classified by Remaining Maturity

Consolidated Financial Statements The Bank’s Financial Statements December 31, 2009 December 31, 2008 December 31, 2009 December 31, 2008 356,616.67 362,690.35 355,968.67 365,624.58 716,895.60 681,918.91 718,697.34 680,521.65 1,073,512.27 1,044,609.26 1,074,666.01 1,046,146.23 3,722.23 4,835.46 3,724.49 4,838.79 1,077,234.50 1,049,444.72 1,078,390.50 1,050,985.02 (1,631.94) (2,111.32) (65.15) (60.40) 1,075,602.56 1,047,333.40 1,078,325.35 1,050,924.62

Within 1 year Over 1 year Total Add Accrued interest receivable Total Less Unearned discounts Total

3.4.3 Classified by Currency and Customer’s Residence

(Million Baht)

(Million Baht)

Consolidated Financial Statements December 31, 2009 Domestic

Overseas

December 31, 2008 Total

Domestic

Overseas

Total

Thai Baht 1,030,460.23 77.62 1,030,537.85 1,001,543.86 43.83 1,001,587.69 US Dollar 35,438.90 5,413.09 40,851.99 35,103.56 5,634.74 40,738.30 Other currencies 2,027.85 94.58 2,122.43 2,010.18 273.09 2,283.27 Total 1,067,926.98 5,585.29 1,073,512.27 1,038,657.60 5,951.66 1,044,609.26 Add Accrued interest receivable 3,698.73 23.50 3,722.23 4,788.47 46.99 4,835.46 Total 1,071,625.71 5,608.79 1,077,234.50 1,043,446.07 5,998.65 1,049,444.72 Less Unearned discounts (1,631.94) (2,111.32) Total 1,075,602.56 1,047,333.40 (Million Baht)

The Bank’s Financial Statements December 31, 2009 Domestic

Overseas

December 31, 2008 Total

Domestic

Overseas

Total

Thai Baht 1,031,613.97 77.62 1,031,691.59 1,003,080.83 43.83 1,003,124.66 US Dollar 35,438.90 5,413.09 40,851.99 35,103.56 5,634.74 40,738.30 Other currencies 2,027.85 94.58 2,122.43 2,010.18 273.09 2,283.27 Total 1,069,080.72 5,585.29 1,074,666.01 1,040,194.57 5,951.66 1,046,146.23 Add Accrued interest receivable 3,700.99 23.50 3,724.49 4,791.80 46.99 4,838.79 Total 1,072,781.71 5,608.79 1,078,390.50 1,044,986.37 5,998.65 1,050,985.02 Less Unearned discounts (65.15) (60.40) Total 1,078,325.35 1,050,924.62 Annual Report 2009 Krung Thai Bank Pcl.

167


3.4.4 Classified by Business Types and Loan Classification

Agriculture and mining Manufacturing and commercial Real estate and construction Public utilities and services Housing loans Others Total Add Accrued interest receivable Total Less Unearned discounts Total

(Million Baht)

Consolidated Financial Statements

Pass

December 31, 2009 Special Mention Substandard Doubtful Doubtful of Loss

Total

20,228.87 367.00 46.76 700.22 1,543.92 22,886.77 310,411.99 8,998.70 1,255.95 11,279.83 32,234.53 364,181.00 103,056.56 1,423.60 615.50 4,964.43 17,943.22 128,003.31 233,254.86 5,887.82 82.72 3,634.26 6,153.62 249,013.28 156,837.75 1,527.78 639.42 1,057.91 1,659.16 161,722.02 145,550.73 936.80 215.30 590.80 412.26 147,705.89 969,340.76 19,141.70 2,855.65 22,227.45 59,946.71 1,073,512.27 3,245.58 39.18 13.11 211.89 212.47 3,722.23 972,586.34 19,180.88 2,868.76 22,439.34 60,159.18 1,077,234.50 (1,631.94) 1,075,602.56 (Million Baht)

Agriculture and mining Manufacturing and commercial Real estate and construction Public utilities and services Housing loans Others Total Add Accrued interest receivable Total Less Unearned discounts Total

168

Consolidated Financial Statements

Pass

December 31, 2008 Special Mention Substandard Doubtful Doubtful of Loss

25,871.96 557.96 301,577.07 11,560.30 112,907.30 2,435.50 218,268.67 6,462.08 147,928.83 1,794.73 128,592.61 1,168.63 935,146.44 23,979.20 4,209.00 152.86 939,355.44 24,132.06

101.67 544.17 2,450.33 9,947.29 1,081.78 6,161.67 313.61 5,106.00 643.06 847.92 228.16 347.09 4,818.61 22,954.14 1.23 211.36 4,819.84 23,165.50

Total

1,452.28 28,528.04 29,455.21 354,990.20 18,864.95 141,451.20 5,580.16 235,730.52 1,136.93 152,351.47 1,221.34 131,557.83 57,710.87 1,044,609.26 261.01 4,835.46 57,971.88 1,049,444.72 (2,111.32) 1,047,333.40


3.4.4 Classified by Business Types and Loan Classification (continued)

(Million Baht)

The Bank’s Financial Statements

Pass

December 31, 2009 Special Mention Substandard Doubtful Doubtful of Loss

Total

Agriculture and mining 20,052.21 366.64 46.76 695.66 1,543.92 22,705.19 Manufacturing and commercial 309,141.69 8,982.00 1,250.00 11,264.13 32,234.53 362,872.35 Real estate and construction 103,362.71 1,385.54 610.68 4,943.88 17,937.64 128,240.45 Public utilities and services 231,708.79 5,875.67 77.82 3,624.36 6,153.62 247,440.26 Housing loans 156,837.75 1,527.78 639.42 1,057.91 1,659.16 161,722.02 Others 150,302.18 361.24 147.46 548.86 326.00 151,685.74 Total 971,405.33 18,498.87 2,772.14 22,134.80 59,854.87 1,074,666.01 Add Accrued interest receivable 3,247.83 39.18 13.12 211.89 212.47 3,724.49 Total 974,653.16 18,538.05 2,785.26 22,346.69 60,067.34 1,078,390.50 Less Unearned discounts (65.15) Total 1,078,325.35 (Million Baht)

The Bank’s Financial Statements

Pass

December 31, 2008 Special Mention Substandard Doubtful Doubtful of Loss

Total

Agriculture and mining 25,600.63 544.18 101.67 544.17 1,452.28 28,242.93 Manufacturing and commercial 300,583.07 11,545.18 2,450.33 9,947.29 29,455.21 353,981.08 Real estate and construction 113,904.41 2,402.80 1,078.76 6,161.67 18,864.95 142,412.59 Public utilities and services 216,676.73 6,429.05 307.02 5,106.00 5,580.16 234,098.96 Housing loans 147,928.83 1,794.73 643.06 847.92 1,136.93 152,351.47 Others 133,102.28 446.01 85.29 248.70 1,176.92 135,059.20 Total 937,795.95 23,161.95 4,666.13 22,855.75 57,666.45 1,046,146.23 Add Accrued interest receivable 4,212.33 152.86 1.23 211.36 261.01 4,838.79 Total 942,008.28 23,314.81 4,667.36 23,067.11 57,927.46 1,050,985.02 Less Unearned discounts (60.40) Total 1,050,924.62

Annual Report 2009 Krung Thai Bank Pcl.

169


3.4.5 Classified by Loan Classification

Consolidated Financial Statements Loans and Accrued Interest Receivable

Pass ** Special Mention ** Substandard Doubtful Doubtful of Loss Total

(Million Baht)

882,312.53 11,778.38 2,835.74 22,434.71 60,121.37 979,482.73

December 31, 2009 Allowance Debt Net of Collateral 1 Rate (%)

386,509.52 1,170.25 1,026.94 7,681.88 9,497.64 405,886.23

1 2 100 100 100

Allowance for doubtful accounts for total loans under BOT’s regulations Less Allowance for doubtful accounts for inter-bank and money market items Allowance for doubtful accounts for loans under BOT’s regulations Allowance for doubtful accounts provided as of December 31, 2009 (Note 3.5) Excess of allowance for doubtful accounts over the BOT’s minimum requirement

Minimum Allowance Required as to BOT’s Regulations

4,393.54 1,523.47 1,026.94 8,655.02 23,105.47 38,704.44 38,704.44 (366.13) 38,338.31 40,152.40 1,814.09 (Million Baht)

Consolidated Financial Statements Loans and Accrued Interest Receivable

Pass ** Special Mention ** Substandard Doubtful Doubtful of Loss Total

875,374.28 19,513.81 4,795.17 23,155.89 57,943.04 980,782.19

December 31, 2008 Allowance Debt Net of 1 Collateral Rate (%)

389,846.34 3,314.97 838.85 4,904.54 7,348.52 406,253.22

1 2 100 100 100

Allowance for doubtful accounts for total loans under BOT’s regulations Less Allowance for doubtful accounts for inter-bank and money market items Allowance for doubtful accounts for loans under BOT’s regulations Allowance for doubtful accounts provided as of December 31, 2008 (Note 3.5) Excess of allowance for doubtful accounts over the BOT’s minimum requirement

170

Minimum Allowance Required as to BOT’s Regulations

4,336.29 3,587.77 838.85 6,047.77 19,749.19 34,559.87 34,559.87 (389.94) 34,169.93 35,075.26 905.33


3.4.5 Classified by Loan Classification (continued)

(Million Baht)

The Bank’s Financial Statements Loans and Accrued Interest Receivable

Pass ** Special Mention ** Substandard Doubtful Doubtful of Loss Total

885,951.15 11,208.86 2,755.38 22,346.69 60,039.49 982,301.57

December 31, 2009 Allowance Debt Net of Collateral 1 Rate (%)

399,408.57 1,089.19 988.12 7,625.58 9,415.77 418,527.23

Minimum Allowance Required as to BOT’s Regulations

1 2 100 100 100

Allowance for doubtful accounts for total loans under BOT’s regulations Less Allowance for doubtful accounts for inter-bank and money market items Allowance for doubtful accounts for loans under BOT’s regulations Allowance for doubtful accounts provided as of December 31, 2009 (Note 3.5) Excess of allowance for doubtful accounts over the BOT’s minimum requirement

4,377.54 1,521.78 988.12 8,598.72 23,023.60 38,509.76

38,509.76 (366.13) 38,143.63 39,911.65 1,768.02 (Million Baht)

The Bank’s Financial Statements Loans and Accrued Interest Receivable

Pass ** Special Mention ** Substandard Doubtful Doubtful of Loss Total

864,204.24 18,818.58 4,667.36 23,067.11 57,899.61 968,656.90

December 31, 2008 Allowance Debt Net of 1 Collateral Rate (%)

388,330.12 3,238.79 777.37 4,850.46 7,305.09 404,501.83

1 2 100 100 100

Allowance for doubtful accounts for total loans under BOT’s regulations Less Allowance for doubtful accounts for inter-bank and money market items Allowance for doubtful accounts for loans under BOT’s regulations Allowance for doubtful accounts provided as of December 31, 2008 (Note 3.5) Excess of allowance for doubtful accounts over the BOT’s minimum requirement

Minimum Allowance Required as to BOT’s Regulations

4,313.72 3,584.26 777.37 5,993.69 19,705.75 34,374.79 34,374.79 (389.94) 33,984.85 34,889.47 904.62

** Accrued interest receivable are not included in Pass and Special Mention Categories. 1 Debts net of collateral represent those after deducting the present value of expected cash flows from debtors or from the sale of collateral. Annual Report 2009 Krung Thai Bank Pcl.

171


As of December 31, 2009 and 2008, the Bank’s classified loans and accrued interest receivable including inter-bank and money market items were Baht 1,306,508.76 million and Baht 1,116,798.34 million, respectively. The loans, net of classified debts exempt from provisioning according to the BOT’s regulations as of December 31, 2009 and 2008 comprised loans guaranteed by MOF of Baht 316,887.31 million and Baht 143,790.55 million and restructured loans under follow-up on which losses were recognized of Baht 7,319.88 million and Baht 4,350.89 million, respectively. Thus, the residual amount of loans and accrued interest receivable of Baht 982,301.57 million and Baht 968,656.90 million, respectively, were required to be provisioned as prescribed by the Bank of Thailand’s loan classification guidelines. As of December 31, 2009 and 2008, the Bank’s allowance for doubtful accounts for loans in the Bank’s financial statements total Baht 39,911.65 million and Baht 34,889.47 million, which were in excess of the BOT minimum requirement by Baht 1,768.02 million and Baht 904.62 million, respectively. 3.4.6 Non-Performing Loans (NPLs) As of December 31, 2009 and 2008, the Bank’s non-performing loans according to the BOT’s guideline comprised loans classified as substandard, doubtful, doubtful of loss and loss which the Bank has ceased their income recognition, amounting to Baht 84,761.81 million and Baht 85,188.34 million or 6.49 percent and 7.63 percent of the Bank’s loan portfolio (including loans to banks and money market as financial institutions), respectively. Loans which their income recognition is ceased are in line with the Bank of Thailand’s definition comprising classified loans according to BOT’s classification guideline as substandard, doubtful, doubtful of loss and loss. For the years ended December 31, 2009 and 2008, impaired-assets were written off both principal and accrued interest receivable amounting to Baht 3,998.23 million and Baht 13,719.56 million, respectively. 3.4.7 Loans to Closed Financial Institutions As of December 31, 2009, the Bank’s loans outstanding and accrued interest receivable to four debtors which suffered from financial and operational difficulties, the businesses were offically ordered to be discontinued, and thus, as non-performing loans, were Baht 68.07 million. The Bank has considered to set aside the provision according to the BOT’s regulation. 3.4.8 Loans to Potential Delisted Companies As of December 31, 2009 and 2008, the Bank’s loans extended to six and five potential delisted companies were Baht 1,145.73 million and Baht 446.83 million and accrued interest receivable amounting to Baht 1.06 million and Baht 0.01 million, respectively, bringing up the total to Baht 1,146.79 million and Baht 446.84 million. The provisions of Baht 195.75 million and Baht 118.83 million were set aside as an allowance for doubtful accounts in accordance with the BOT’s regulations on loans classification and an revaluation allowance for debt restructuring, respectively.

172


3.4.9 Troubled Debt Restructuring The original value of the 5,948 and 5,591 cases of troubled debts restructured for the years-ended December 31, 2009 and 2008 were Baht 43,062.76 million and Bath 41,404.29 million. The repayments for related interest and principal were Baht 3,854.13 million and Bath 6,022.87 million, whereas extended lending increased by Baht 2,749.81 million and Baht 6,420.15 million and losses resulted from restructuring were Baht 596.99 million and Baht 517.77 million, respectively. Troubled Debt Restructuring for the year ended December 31, 2009 was set out as follows: (Million Baht)

Troubled Debt Restructuring Approaches

The Bank’s Financial Statements No. of Cases Book Value of Debt Type of Assets

Asset transferred Debt-equity swap Loan terms modification Combination of restructuring

22 - 1,018 4,908 5,948

as to Original Term

Transferred

1,417.43 Land & Premises - 11,297.27 30,348.06 43,062.76

Fair Value

1,067.46

As of December 31, 2009 the Bank has outstanding restructured loans for 23,299 cases amounting to Baht 80,688.89 million, of which 427 cases amounting to Baht 5,407.81 million, have been monitored under the new contractual agreements. The Consolidated Financial Statements as of December 31, 2009 showed the original value of 5,991 cases of restructured loans at Baht 43,166.03 million. Troubled Debt Restructuring for the year-ended December 31, 2008 was set out as follows:

(Million Baht)

Troubled Debt Restructuring Approaches

The Bank’s Financial Statements No. of Cases Book Value of Debt Type of Assets

Asset transferred Debt-equity swap Loan terms modification Combination of restructuring

35 - 1,124 4,432 5,591

as to Original Term

Transferred

2,360.53 Land & Premises - 9,557.53 29,486.23 41,404.29

Fair Value

2,019.90

Annual Report 2009 Krung Thai Bank Pcl.

173


As of December 31, 2008 the Bank has outstanding restructured loans for 24,598 cases amounting to Baht 72,713.41 million, of which 480 cases amounting to Baht 6,073.03 million, have been monitored under the new contractual agreements. The Consolidated Financial Statements as of December 31, 2008 showed the original value of 5,695 cases of restructured loans at Baht 41,467.39 million.

3.5 Allowance for Doubtful Accounts

(Million Baht)

Pass

The Bank’s Financial Statements December 31, 2009

Allowance in Doubtful excess of BOT’s of Loss Guideline

Special Substandard Doubtful Mention

Opening balance 3,923.93 3,584.11 Increased (Decreased) allowance for doubtful accounts 87.47 (2,062.32) Allowance for doubtful accounts transferred to TDR revaluation - - Bad debt recovered - - Bad debts written off - - Others - - Total 4,011.40 1,521.79 Allowance for doubtful accounts transferred from SAM (net) - - Allowance for doubtful accounts transferred to TAMC (net) - - Transfer of impairment allowance from potential losses arising on debt transferred from TAMC - - Closing Balance 4,011.40 1,521.79

Total

777.37 5,993.69 19,705.75

904.62 34,889.47

210.75 2,605.03 4,295.67

863.40

6,000.00

-

-

(3.39)

-

(3.39)

-

- (275.68)

-

(275.68)

- - 210.55 - 210.55 - - 3,044.25 - 3,044.25 - - (3,998.23) - (3,998.23) - - 3.33 - 3.33 988.12 8,598.72 23,261.32 1,768.02 40,149.37

- - 41.35 - 41.35 988.12 8,598.72 23,023.60 1,768.02 39,911.65

The Consolidated Financial Statements as of December 31, 2009 showed an allowance for doubtful accounts of Baht 40,152.40 million included those of its subsidiaries amounting to Baht 240.75 million. For the year-ended December 31, 2009, the Bank has set aside monthly provision of Baht 500 million totaling to Baht 6,000 million

174


3.5 Allowance for Doubtful Accounts (continued)

(Million Baht)

The Bank’s Financial Statements December 31, 2008

Allowance in Doubtful excess of BOT’s of Loss Guideline

Pass

Special Substandard Doubtful Mention

Opening balance Increased (Decreased) allowance for doubtful accounts Allowance for doubtful accounts transferred from TDR revaluation Bad debt recovered Bad debts written off Others Total Allowance for doubtful accounts transferred from SAM (net) Allowance for doubtful accounts transferred to TAMC (net) Transfer of impairment allowance from potential losses arising on debt transferred to TAMC Allowance for doubtful accounts transferred to allowance for impairment CDO Closing Balance

132.58 1,649.13 6,780.81 20,133.33 3,300.44 35,527.79

3,531.50

Total

392.43 3,451.53 (871.76) (787.12) 10,910.74 (2,395.82) 10,700.00 - - - - - - - - 3,923.93 3,584.11

- - 884.02 - - 3,889.52 - - (13,719.56) - - (29.15) 777.37 5,993.69 22,068.90

- 884.02 - 3,889.52 - (13,719.56) - (29.15) 904.62 37,252.62

-

-

-

-

647.28

-

647.28

-

-

-

-

(13.98)

-

(13.98)

-

-

-

-

3.55

-

3.55

- - 3,923.93 3,584.11

- - (3,000.00) 777.37 5,993.69 19,705.75

- (3,000.00) 904.62 34,889.47

The Consolidated Financial Statements as of December 31, 2008 showed an allowance for doubtful accounts of Baht 35,075.26 million included those of its subsidiaries amounting to Baht 185.79 million. For the year ended December 31, 2008, the Bank has set aside monthly provision of Baht 500 million totaling to Baht 6,000 million and additional Baht 4,700 million bringing the total to Baht 10,700 million (according to the accounting policy No. 2.6).

Annual Report 2009 Krung Thai Bank Pcl.

175


3.6 Revaluation Allowance for Debt Restructuring

(Million Baht)

Consolidated and the Bank’s Financial Statements

December 31, 2009

Opening balance Transfer from (to) allowance for doubtful accounts Closing balance

December 31, 2008

509.62 (210.55) 299.07

1,393.64 (884.02) 509.62

The revaluation allowance for troubled debt restructuring (TDR) was transferred from allowance for doubtful accounts for restructured debtors, and vice versa when the debtors failed to comply with the TDR new agreement. The allowance for revaluation on TDR has not been amortized and recognized as income upon receipt of debt repayment but transferred to an allowance for doubtful accounts instead as the restructured debts may again become non-performing due to economic instability.

3.7 Properties Foreclosed, net (Million Baht)

Type of Properties Foreclosed

Consolidated Financial Statements December 31, 2009 Opening Additions Disposals Closing Balance Balance

Acquired from debt settlement 38,714.15 8,305.66 Immovable assets Movable assets 65.04 319.58 Total 38,779.19 8,625.24 Others (closed branches) 222.34 - Properties foreclosed in transit 3,413.77 6,030.48 Total 42,415.30 14,655.72 Less Allowance for impairment (4,835.51) (169.15) Properties Foreclosed, net 37,579.79 14,486.57

176

December 31, 2008

4,666.04 245.66 4,911.70 3.04 5,003.80 9,918.54 - 9,918.54

Opening Additions Disposals Closing Balance Balance

42,353.77 37,725.62 8,381.27 138.96 27.05 193.16 42,492.73 37,752.67 8,574.43 219.30 291.61 22.55 4,440.45 1,686.54 5,478.10 47,152.48 39,730.82 14,075.08 (5,004.66) (5,013.02) - 42,147.82 34,717.80 14,075.08

7,392.74 38,714.15 155.17 65.04 7,547.91 38,779.19 91.82 222.34 3,750.87 3,413.77 11,390.60 42,415.30 (177.51) (4,835.51) 11,213.09 37,579.79


3.7 Properties Foreclosed, net (continued)

Type of Properties Foreclosed

(Million Baht)

The Bank’s Financial Statements December 31, 2009

December 31, 2008

Opening Additions Disposals Closing Balance Balance

Acquired from debt settlement 38,714.15 8,305.66 Immovable assets Movable assets 19.37 95.45 Total 38,733.52 8,401.11 Others (closed branches) 222.34 - Properties foreclosed in transit 3,413.77 6,030.48 Total 42,369.63 14,431.59 Less Allowance for impairment (4,817.81) (164.90) Properties Foreclosed, net 37,551.82 14,266.69

Opening Additions Disposals Closing Balance Balance

4,666.04 42,353.77 37,725.62 8,381.27 2.83 111.99 19.37 - 4,668.87 42,465.76 37,744.99 8,381.27 3.04 219.30 291.61 22.55 5,003.80 4,440.45 1,686.54 5,478.10 9,675.71 47,125.51 39,723.14 13,881.92 - (4,982.71) (5,010.86) - 9,675.71 42,142.80 34,712.28 13,881.92

7,392.74 38,714.15 - 19.37 7,392.74 38,733.52 91.82 222.34 3,750.87 3,413.77 11,235.43 42,369.63 (193.05) (4,817.81) 11,042.38 37,551.82

As of December 31, 2009 and 2008, the reversal or increase of impairment losses has caused an increase of Baht 164.90 million and a decrease of Baht 193.05 million of the allowance for properties foreclosed impairment, respectively. The Bank generated Baht 472.19 million and Baht 1,127.53 million of gains on sale of properties foreclosed for the years-ended December 31, 2009 and 2008, respectively (before deduction of selling expenses amounting to Baht 167.40 million and Baht 213.27 million, respectively).

3.8 Properties, Premises and Equipment - Net

Properties, Premises and equipment as of December 31, 2009 and 2008 were as follows:

(Million Baht)

Consolidated Financial Statements

December 31, 2009 (Net) Cost Accumulated Depreciation Allowance Properties, Opening Additions Disposals Closing Opening Depreciation Disposals Closing and for Premises Balance Balance Balance Balance Impairment Equipment

Land Historical cost 5,882.40 11.74 - 5,894.14 - - - - 52.38 5,841.76 Add. Revaluation 5,971.50 - 476.83 5,494.67 - - - - - 5,494.67 Premises 10,035.60 46.43 4.31 10,077.72 5,086.63 454.57 2.77 5,538.43 - 4,539.29 Equipment 13,322.35 2,267.74 1,002.85 14,587.24 7,585.71 1,788.40 97.38 9,276.73 100.03 5,210.48 Others 96.56 - 16.75 79.81 - - - - - 79.81 Total 35,308.41 2,325.91 1,500.74 36,133.58 12,672.34 2,242.97 100.15 14,815.16 152.41 21,166.01

Annual Report 2009 Krung Thai Bank Pcl.

177


3.8 Properties, Premises and Equipment - Net (continued)

(Million Baht)

Consolidated Financial Statements

December 31, 2008 (Net) Cost Accumulated Depreciation Allowance Properties, Opening Additions Disposals Closing Opening Depreciation Disposals Closing and for Premises Impairment Balance Balance Balance Balance Equipment

Land Historical cost 5,849.38 55.57 Add. Revaluation 5,971.50 - Premises 9,993.57 67.22 Equipment 10,750.58 3,306.67 Others 55.13 41.43 Total 32,620.16 3,470.89

22.55 5,882.40 - - - - 56.54 5,825.86 - 5,971.50 - - - - - 5,971.50 25.19 10,035.60 4,645.62 461.52 20.51 5,086.63 - 4,948.97 734.90 13,322.35 6,105.29 1,576.26 95.84 7,585.71 113.00 5,623.64 - 96.56 - - - - - 96.56 782.64 35,308.41 10,750.91 2,037.78 116.35 12,672.34 169.54 22,466.53 (Million Baht)

The Bank’s Financial Statements

December 31, 2009 (Net) Cost Accumulated Depreciation Allowance Properties, Opening Additions Disposals Closing Opening Depreciation Disposals Closing and for Premises Balance Balance Balance Balance Impairment Equipment

Land 5.92 Historical cost 6,103.36 Add. Revaluation 5,971.50 - Premises 9,602.61 36.12 Equipment 7,332.37 666.06 Others 96.48 - Total 29,106.32 708.10

- 6,109.28 - - 476.83 5,494.67 - - 0.47 9,638.26 4,925.37 428.35 67.39 7,931.04 4,829.49 906.21 16.75 79.73 - - 561.44 29,252.98 9,754.86 1,334.56

- - 52.38 6,056.90 - - - 5,494.67 0.40 5,353.32 - 4,284.94 66.91 5,668.79 100.03 2,162.22 - - - 79.73 67.31 11,022.11 152.41 18,078.46 (Million Baht)

December 31, 2008 (Net) Cost Accumulated Depreciation Allowance Properties, Opening Additions Disposals Closing Opening Depreciation Disposals Closing and for Premises Impairment Balance Balance Balance Balance Equipment

Land Historical cost 6,070.34 55.57 Add. Revaluation 5,971.50 - Premises 9,578.47 49.33 Equipment 6,279.78 1,129.91 Others 55.05 41.43 Total 27,955.14 1,276.24

178

The Bank’s Financial Statements

22.55 6,103.36 - - - 5,971.50 - - 25.19 9,602.61 4,518.69 427.19 77.32 7,332.37 4,164.16 740.76 - 96.48 - - 125.06 29,106.32 8,682.85 1,167.95

- - 56.54 6,046.82 - - - 5,971.50 20.51 4,925.37 - 4,677.24 75.43 4,829.49 113.00 2,389.88 - - - 96.48 95.94 9,754.86 169.54 19,181.92


As of December 31, 2009, the Bank has a number of fully depreciated premises and equipment but still in use. The cost of those assets is approximately Baht 4,574.69 million. The allowance for impairment as of December 31, 2009 and 2008 was set out as follows: (Million Baht)

December 31, 2009

Begining Balance Add Additional Allowance Less Transferred to income Ending Balance

December 31, 2008

169.54 - (17.13) 152.41

151.55 17.99 - 169.54

3.9 Intangible Assets

(Million Baht)

Consolidated Financial Statements

December 31, 2009

December 31, 2008

Opening Increase Disposals Closing Balance (Decrease) Balance

Opening Increase Disposals Closing Balance (Decrease) Balance

License Software 1,116.29 210.40 (174.45) 1,152.24 1,106.36 187.04 (177.11) 1,116.29 License-Others 3.49 0.86 (0.78) 3.57 128.09 0.65 (125.25) 3.49 Research and Development 1,147.24 234.10 (180.24) 1,201.10 1,222.26 98.20 (173.22) 1,147.24 Partial Payment of Intangible Assets 437.83 330.59 - 768.42 2.10 435.73 - 437.83 Total 2,704.85 775.95 (355.47) 3,125.33 2,458.81 721.62 (475.58) 2,704.85 (Million Baht)

The Bank’s Financial Statements

December 31, 2009

December 31, 2008

Opening Increase Disposals Closing Balance (Decrease) Balance

License Software License-Others Research and Development Partial Payment of Intangible Assets Total

10.43 2.87 104.32

Opening Increase Disposals Closing Balance (Decrease) Balance

42.36 (3.41) 49.38 9.66 - (0.49) 2.38 128.02 42.33 (21.48) 125.17 107.27

3.39 (2.62) 10.43 - (125.15) 2.87 15.23 (18.18) 104.32

348.61 101.11 - 449.72 - 348.61 - 348.61 466.23 185.80 (25.38) 626.65 244.95 367.23 (145.95) 466.23

Annual Report 2009 Krung Thai Bank Pcl.

179


3.10 Other assets, net

(Million Baht)

Consolidated Financial Statements The Bank’s Financial Statements December 31, 2009 December 31, 2008 December 31, 2009 December 31, 2008

Accrued income Prepaid expenses Advances & prepayment Inter-office account Account receivable - Dhipyasin Co., Ltd. (formerly Sayam Bank Ltd.) (Note 3.27.1) Account receivable - Revenue Department Leasehold rights Other debtors and sundry assets Total Less Allowance for impairment Total other assets-net

1,166.48 548.76 17.23 5,168.98 -

223.20 658.60 7,143.72 14,926.97 (2,237.46) 12,689.51

1,151.32 524.20 17.91 150.77 335.00

908.13 493.97 12.87 5,168.98 -

1,150.34 358.70 16.29 150.77 335.00

428.35 681.15 5,990.46 9,279.16 (2,062.94) 7,216.22

117.76 658.60 7,042.98 14,403.29 (2,237.46) 12,165.83

130.57 681.15 5,611.78 8,434.60 (2,062.94) 6,371.66

“Accrued Income” as of December 31, 2009 and 2008 included Baht 128.48 million and Baht 181.74 million, respectively, which were accrued interest receivable on government and state enterprise bonds. “Other debtors and sundry assets” as of December 31, 2009 and 2008 included the differences between debts transferred to BBC Asset Management Co., Ltd. and a promissory note received amounting to Baht 134.81 million and Baht 139.57 million, respectively, which was included in the balances notified to the FIDF on August 15, 2002. (Note 3.27.2)

3.11 Deposits

3.11.1 Classified by Products

(Million Baht)

Demand deposits Savings deposits Time deposits - Less than 6 months - 6 months - less than 1 year - 1 year and over Total

180

Consolidated Financial Statements The Bank’s Financial Statements December 31, 2009 December 31, 2008 December 31, 2009 December 31, 2008 77,402.68 665,062.49

61,408.43 532,079.06

77,550.38 665,429.86

61,438.42 532,354.11

149,446.98 196,652.81 149,446.98 196,663.78 36,372.29 83,862.93 36,372.29 83,862.93 279,329.05 189,212.66 279,340.68 189,212.66 1,207,613.49 1,063,215.89 1,208,140.19 1,063,531.90


3.11.2 Classified by Remaining Maturity

Consolidated Financial Statements The Bank’s Financial Statements

December 31, 2009 December 31, 2008 December 31, 2009 December 31, 2008

Within 1 year Over 1 year Total

(Million Baht)

1,195,343.81 1,033,157.12 1,195,870.51 1,033,473.13 12,269.68 30,058.77 12,269.68 30,058.77 1,207,613.49 1,063,215.89 1,208,140.19 1,063,531.90

3.11.3 Classified by Currency and Residence of Depositors

Consolidated Financial Statements

Thai Baht US Dollar Other currencies Total

(Million Baht)

December 31, 2009 Domestic

Overseas

1,174,441.54 25,135.82 1,332.33 1,200,909.69

December 31, 2008 Total

Domestic

Overseas

5,082.66 1,179,524.20 1,035,548.18 1,541.98 26,677.80 18,704.04 79.16 1,411.49 1,296.06 6,703.80 1,207,613.49 1,055,548.28

Total

5,886.23 1,041,434.41 1,700.53 20,404.57 80.85 1,376.91 7,667.61 1,063,215.89 (Million Baht)

The Bank’s Financial Statements

Thai Baht US Dollar Other currencies Total

December 31, 2009 Domestic

1,174,968.24 25,135.82 1,332.33 1,201,436.39

Overseas

December 31, 2008 Total

Domestic

5,082.66 1,180,050.90 1,035,864.19 1,541.98 26,677.80 18,704.04 79.16 1,411.49 1,296.06 6,703.80 1,208,140.19 1,055,864.29

Overseas

Total

5,886.23 1,041,750.42 1,700.53 20,404.57 80.85 1,376.91 7,667.61 1,063,531.90

Annual Report 2009 Krung Thai Bank Pcl.

181


3.12 Interbank and Money Market Items

(Million Baht)

Consolidated Financial Statements December 31, 2009 Demand

Time

December 31, 2008 Total

Demand

Time

Total

3.12.1 Domestic items Bank of Thailand and Financial Institutions Development Fund 15.87 4,523.78 4,539.65 29.34 4,826.08 4,855.42 Commercial banks 406.59 50,466.85 50,873.44 1,111.55 13,000.01 14,111.56 Other banks 552.24 0.56 552.80 337.05 - 337.05 Finance Co., Finance&Securities Co., Securities Co., and Credit Foncier Co. 1,058.15 5.99 1,064.14 2,119.36 5.97 2,125.33 Other financial institutions 11,957.27 1,440.86 13,398.13 9,644.24 879.48 10,523.72 Total Domestic Items 13,990.12 56,438.04 70,428.16 13,241.54 18,711.54 31,953.08

3.12.2 Foreign items US Dollar 126.89 500.53 627.42 72.35 4,046.49 4,118.84 Japanese Yen - 172.12 172.12 - 220.96 220.96 Other currencies 188.36 - 188.36 153.71 - 153.71 Total Foreign Items 315.25 672.65 987.90 226.06 4,267.45 4,493.51 Total Domestic & Foreign Items 14,305.37 57,110.69 71,416.06 13,467.60 22,978.99 36,446.59

182


3.12 Interbank and Money Market Items (continued)

(Million Baht)

The Bank’s Financial Statements December 31, 2009 Demand

Time

December 31, 2008 Total

Demand

Time

Total

3.12.1 Domestic items Bank of Thailand and Financial Institutions Development Fund 15.87 4,523.78 4,539.65 29.34 4,826.08 4,855.42 Commercial banks 406.59 50,466.85 50,873.44 1,111.55 13,000.01 14,111.56 Other banks 552.24 0.56 552.80 337.05 - 337.05 Finance Co., Finance&Securities Co., Securities Co., and Credit Foncier Co. 1,079.18 6.32 1,085.50 2,138.62 6.30 2,144.92 Other financial institutions 11,957.27 1,440.86 13,398.13 9,644.24 879.48 10,523.72 Total Domestic Items 14,011.15 56,438.37 70,449.52 13,260.80 18,711.87 31,972.67

3.12.2 Foreign items US Dollar 126.89 500.53 627.42 72.35 4,046.49 4,118.84 Japanese Yen - 172.12 172.12 - 220.96 220.96 Other currencies 188.36 - 188.36 153.71 - 153.71 Total Foreign Items 315.25 672.65 987.90 226.06 4,267.45 4,493.51 Total Domestic & Foreign Items 14,326.40 57,111.02 71,437.42 13,486.86 22,979.32 36,466.18 The item classified as “Bank of Thailand and Financial Institutions Development Fund” mostly comprises low-interest loans from BOT to serve as financial reliefs for debtors in various projects which currently provide support to SMEs. The amounts as of December 31, 2009 and 2008 were Baht 4,523.75 million and Baht 4,824.54 million, respectively.

Annual Report 2009 Krung Thai Bank Pcl.

183


3.13 Borrowings

Borrowings classified by types of securities and sources of fund were as follows: (Million Baht)

Consolidated Financial Statements

Short - term Borrowings - From Ministry of Finance - KTB Debenture No. 1/2006 - Principal Protected Index Linked P/N - Short-term B/E Total Short-Term Borrowings Long - term Borrowings - KTB Subordinated notes No. 1/2004 No. 1/2005 No. 1/2008 No. 1/2009 No. 2/2009 - Perpetual Hybrid Tier 1 Securities - Principal Protected Index Linked P/N - Long-term B/E Total Long-Term Borrowings Total Borrowings

184

December 31, 2009

Type of Borrowings

Domestic

Overseas

1.17

-

122.00 42,850.85 42,974.02

- 10,400.00 7,508.40 21,000.00

13,000.00

Total

-

December 31, 2008

-

Domestic

1.17

Overseas

1.17

- 6,000.00

Total

-

1.17

- 6,000.00

- 122.00 - - 42,850.85 42,917.06 - 42,974.02 48,918.23

- - - 42,917.06 - 48,918.23

- - 10,000.00 - 10,400.00 10,400.00 - 7,508.40 7,508.40 - 21,000.00 -

- 10,000.00 - 10,400.00 - 7,508.40 - -

- 13,000.00

-

-

-

1,440.00 7,341.13 8,781.13 1,440.00 7,687.63 9,127.63 - - - 122.00 - 122.00 17,024.30 - 17,024.30 14,150.00 - 14,150.00 70,372.70 7,341.13 77,713.83 43,620.40 7,687.63 51,308.03 113,346.72 7,341.13 120,687.85 92,538.63 7,687.63 100,226.26


3.13 Borrowings (continued)

(Million Baht)

The Bank’s Financial Statements Type of Borrowings

December 31, 2009 Domestic

Overseas

Total

December 31, 2008 Domestic

Overseas

Total

Short - term Borrowings - From Ministry of Finance 1.17 - 1.17 1.17 - 1.17 - KTB Debenture No. 1/2006 - - - 6,000.00 - 6,000.00 - Principal Protected Index Linked P/N 122.00 - 122.00 - - - - Short-term B/E 42,850.85 - 42,850.85 42,917.06 - 42,917.06 Total Short-Term Borrowings 42,974.02 - 42,974.02 48,918.23 - 48,918.23 Long - term Borrowings - KTB Subordinated notes No. 1/2004 - - - 10,000.00 - 10,000.00 No. 1/2005 10,400.00 - 10,400.00 10,400.00 - 10,400.00 No. 1/2008 7,508.40 - 7,508.40 7,508.40 - 7,508.40 No. 1/2009 21,000.00 - 21,000.00 - - - No. 2/2009 13,000.00 - 13,000.00 - - - - Perpetual Hybrid Tier 1 Securities 1,440.00 7,341.13 8,781.13 1,440.00 7,687.63 9,127.63 - Principal Protected Index Linked P/N - - - 122.00 - 122.00 - Long-term B/E 17,024.30 - 17,024.30 14,150.00 - 14,150.00 Total Long-Term Borrowings 70,372.70 7,341.13 77,713.83 43,620.40 7,687.63 51,308.03 Total Borrowings 113,346.72 7,341.13 120,687.85 92,538.63 7,687.63 100,226.26 Short-term borrowings Short-term borrowings from the Ministry of Finance (MOF) which was subsequently refinanced as an assistance to the affected parties in the event of the Thailand Tantalum’s plant arson in Phuket was due in 1998. The Bank had filed a bankruptcy against the guarantor as the debtor entered into a default on payment and the Bank has proceeded until the case has come to an end. Currently, the Bank is on the process of assets distribution to MOF under Bankruptcy Act.

Annual Report 2009 Krung Thai Bank Pcl.

185


The debenture No. 1/2006 in the amount of Baht 6,000 million was issued on March 16, 2006 with the maturity due on March 16, 2009. Such debentures are characterized as unsubordinated notes with holders’ certificates and they are unsecured without bondholders’ representatives. The maturity is 3 years with a face value of Baht 1,000 each and redeemable before the maturity. The debenture bears a fixed coupon of 5.34 percent p.a. the interest is paid semiannually on March 16 and September 16 over the time to maturity. The first payment was on September 16, 2006 whereas the final payment of interest was on March 16, 2009. On September 20, 2007, the Bank issued Principal Protected Index Linked P/N on behalf of a certain Fund Unit in the amount of Baht 122 million, with 3-year maturity at a discount rate of 97 percent and, simultaneously, bought back Principal Protected Index Linked P/N from a certain financial institution at the same discount rate of 97 percent for the entire hedging purpose. The P/N was issued on October 5, 2007 with the face value of Baht 122 million, non-transferable, non-convertible and fall due on October 5, 2010. As of December 31, 2009 and 2008, the Bank has offered Bill of Exchange as borrowings from the public amounting to Baht 42,850.85 million and Baht 42,917.06 million, respectively, with the maturity due in 1-12 mths. The coupon rate is 2.75-3.70 percent per annum and the interest is paid on the maturity date. Long-term borrowings Subordinated Notes represent the unsecured notes with holders’ certificates and non-convertible held by bondholders’ representatives. The maturity is 10 years after the issuance date with a face value of Baht 1,000 per unit. The Bank is eligible to redeem the notes before their maturity, if however, after 5 years of the issuance date or on any interest-paid date after 5 years of the issuance date at the face value. The unsecured notes comprise the followings: 1. Subordinated Notes No. 1/2004 of Baht 10,000 million issued on October 22, 2004, are redeemable on October 22, 2014 at a fixed coupon of 5.15 percent p.a. during the year 1-5 and 6.70 percent p.a. during the year 6-10. The interest is payable semiannually on April 22 and October 22, annually, over the time to maturity. The first repayment was on April 22, 2005. The Bank has issued and offered subordinated notes to public according to the resolution passed by the Shareholders’ extraordinary meeting No.1/2002, on September 24, 2002, in the amount not exceeding Baht 10,000 million or other currencies in which the value is equivalent. The Bank issued THOR BOR KOR. 557/B.E. 2552 (2009) dated August 3, 2009 asking for permission to redeem Subordinated Notes No. 1/2004 amounting to Baht 10,000 million before the due date. On August 26, 2009, the Bank of Thailand permitted the Bank to redeem Subordinated Notes No. 1/2004 amounting to Baht 10,000 million before the due date. As a result, the Bank has to immediately issue long-term subordinated notes no less than Baht 10,000 million in order to compensate those redeemed subordinated note. 2. Subordinated Notes No. 1/2005 of Baht 10,400 million, issued on May 18, 2005, are redeemable on May 18, 2015 at a fixed coupon of 4.60 percent p.a. during the year 1-5 and 6 percent p.a. during the year 6-10. The interest is payable semiannually on May 18 and November 18, annually, over the time to maturity. The first repayment was on November 18, 2005. The Shareholders’ ordinary meeting No. 12, on April 22, 2005 has passed a resolution for the Bank to issue and offer the Subordinated Notes in Thai Baht and/or other currencies equivalent to the amount not exceeding Baht 40,000 million within 5 years.

186


3. Baht 7,508.40 million represents the first issuance of subordinated debentures for the year 2008 with 10-year maturity which is due on June 6, 2018. The first interest payment was on December 6, 2008 and the subsequent payments are payable semiannually on June 6 and December 6, annually, over the time to maturity. It comprises the followings: st - Subordinated Notes, 1 set, amounts to Baht 6,879.20 million bearing a fixed coupon of 5 percent p.a. during the year 1-5 and 6.5 percent p.a. during the year 6-10. - Subordinated Notes, 2nd set, amounts to Baht 629.20 million bearing a floating coupon of underlying deposit rate plus 1.5 percent p.a. during the year 1-5 and plus 2.5 percent p.a. during the year 6-10. 4. KTB Subordinated Notes No. 1/2009 in the amount of Baht 21,000 million, were offered for the public to subscribe on February 20, 2009, with maturity on February 20, 2019, at a fixed coupon of 5 percent p.a. during the year 1-5 and 6.5 percent p.a. during the year 6-10. Interest is payable quarterly on 20th of February, May, August and November, annually, over the time to maturity. The first interest payment was on May 20, 2009. 5. Subordinated Notes No. 2/2009 amounting to Baht 13,000 million, issued in October 22, 2009, redeemable on October 22, 2019 at a fixed coupon of 4.80 percent p.a. during the year 1-5 and 6 percent p.a. during the year 6-10. The interest is semiyearly due every 22 April and October of the year through their maturity. The first payment of interest is an April 22, 2010. Hybrid Debt Capital Instruments On October 10, 2006, the Bank issued and offered subordinated notes characterizing the feature of non-cumulative hybrid debt capital instruments with non-interest payment in the year that there is no profit as tier 1 capital (Hybrid Tier 1) according to the BOT’s regulation through the Singapore branch in the amount of US$ 220 million which are included in tier 1 capital. The BOT average exchange rate as of December 31, 2009 is Baht 33.368750 per USD, therefore, Baht 7,341.13 million is denominated. On November 28, 2006, the Bank issued and offered subordinated notes characterizing the feature of non-cumulative hybrid debt capital instruments with non-interest payment in the year that there is no profit as tier 1 capital (Hybrid Tier 1) which BOT approved their inclusion in tier 1 capital. The notes were offerred for 11 domestic investors to subscribe amounting to Baht 1,440 million. Further, the issuance of Hybrid Tier 1 was approved according to the resolution passed by the 13th Annual General Meeting held on April 21, 2006. The Bank issued and offered the notes in Baht currency and/or other currencies equivalent to additional amount not exceeding Baht 100,000 million within 5 years after the previous approval in 2005 amounting to Baht 40,000 million. On April 27, 2007 the ordinary shareholders’ meeting No. 14 has also passed a resolution for the Bank to issue and offer various types of securities additionally at the amount not exceeding Baht 100,000 million. As at December 31, 2008, the Bank has offered long-term Bill of Exchange as borrowings from public amounting to Baht 14,150 million with 2-5 year maturity and interest rate at 3.25-5.08 percent, p.a., semiannually payable. On September 30, 2009, the Bank has offered long-term Bill of Exchange as borrowings from public amounting to Baht 2,874.30 million with 18-month maturity and interest rate at 1.65 percent, p.a., quaterly payable.

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3.14 Provisions, Contingent Liabilities

As of December 31, 2009 and 2008 of the total Baht 2,670.88 million and Baht 2,712.92 million in Consolidated Financial Statements and the Bank’s Financial Statements encompassed the potential accounting estimates for NPLs transferred to TAMC amounting to Baht 2,670.88 million and Baht 2,712.23 million, (Note 3.29) and for contingent liabilities as of December 31, 2008 amounting to Baht 0.69 million, respectively (Note 3.19).

3.15 Other liabilities Other liabilities comprise the followings:

(Million Baht)

Accrued expenses account Suspense account creditors Payable to revenue dept. Deferred income account Sundry liabilities Total

3.16 Share Capital

Consolidated Financial Statements The Bank’s Financial Statements December 31, 2009 December 31, 2008 December 31, 2009 December 31, 2008 2,311.95 7,409.16 3,025.90 958.36 1,032.60 14,737.97

1,991.44 3,196.05 919.74 1,317.89 223.96 7,649.08

1,830.02 6,778.05 2,943.77 986.16 859.49 13,397.49

1,694.07 2,504.72 893.85 1,317.89 248.02 6,658.55

3.16.1 Ordinary Shares Of the 11,191,412,250 registered ordinary shares were the 11,179,749,000 paid-up shares. The residual of 11,663,250 registered shares served as the back up to the warrants granted to the Bank’s employees. The warrants as such have been entirely exercised on December 30, 2004. The registration of such residual paid up ordinary shares will be undertaken simultaneously with that of other Debentures, on the convenient manner. 3.16.2 Preferred Share The 5.5 million of preferred shares are fully paid-up. Preferred share has more preference over the ordinary share. Apart from entitling to the same voting rights and claims on dividends as ordinary share, it may enjoy certain preferential rights to a special dividend at a 3 percent fixed rate p.a. prior to the ordinary share when paid. 3.16.3 The Bank is the State Enterprise with the Financial Institutions Development Fund (FIDF) as the major shareholder, holding 6,156,635,967 shares or 55.04 percent of paid-up ordinary and preferred shares, as of December 31, 2009.

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3.16.4 Statutory Capital Fund

Tier 1 Capital Paid-up share capital Premium on share capital Legal Reserve Net Income after appropriated Hybrid Tier 1 Total Tier 1 Capital Tier 2 Capital Appraisal Surplus on Land Long-term Subordinated Debt An allowance for Pass Asset-Classification Add Revaluation Surplus on Investments in Available-for-Sale Equity Securities, net Total Tier 2 Capital Total Capital Fund before deduction Less Revaluation Deficit on Investments in Available-for-Sale Equity Securities, net Total Capital Fund

(Million Baht)

The Bank’s Financial Statements December 31, 2008 December 31, 2009 57,604.03 1.21 3,981.46 35,344.45 9,697.26 106,628.41

57,604.03 1.21 3,421.46 30,287.48 9,697.26 101,011.44

3,824.10 51,908.40 6,145.56

4,157.88 27,908.40 5,218.34

427.90 62,305.96 168,934.37

- 37,284.62 138,296.06

- 168,934.37

(1,971.31) 136,324.75

As of December 31, 2008, the Bank’s Capital Fund has been calculated based on Basel II Guidelines tailoring according to the Notification of BOT No. SOR. NOR. SOR. 88/B.E. 2551 (2008) regarding the Composition of Capital Fund for Commercial Bank registered in the country. Supervisory revision of capital fund Guidelines is based on the International convergence of capital measurement and capital standards - A revised framework (Comprehensive version : June 2006) (Basel II guidelines) issued by Basel Committee on Banking Supervision (BCBS). Calculation of Capital Fund according to such Guidelines has taken all risk related into consideration which reflected risk - sensitive against the Bank’s assets in order to promote stronger and sustainable growth.

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The BOT’s regulation requires that Commercial Bank registered in Thailand maintain a ratio of capital fund to assets and contingencies of not less than 8.5 percent under the condition that tier 1 capital must not be less than 4.25 percent of such assets and contingencies. As of December 31, 2009 and 2008 the Bank maintained a ratio of capital fund to assets and contingencies as prescribed by the BOT’s regulation as follows:

Rate (%) December 31, 2009 December 31, 2008

Total Capital Fund Tier 1 Capital

15.92 10.05

3.17 Legal Reserve

Net Income for the year Capital Reserve (5%) (see Note 3.18) Balance brought forward Total

13.08 9.70

(Million Baht)

December 31, 2009

11,124.76 560.00 3,421.46 3,981.46

December 31, 2008

12,053.04 610.00 2,811.46 3,421.46

Under the Public Limited Companies Act, the Bank is required to allocate to the capital reserve not less than 5 percent of its net income less accumulated losses brought forward, if any, until the capital reserve of not less than 10 percent of registered share capital is met. 3.18 Net Income Appropriation for the year 2008 and Dividend Payments th On April 17, 2009 the 16 Annual General Meeting passed the resolution to approve the appropriation of net income of 2008 mounting to Baht 12,053.04 million and net income of 2007 amounting to Baht 6,112.58 million were appropriated according to the resolution passed by the shareholders’ ordinary meeting No. 15 on April 25, 2008 and dividend were subsequently paid as follows:

Legal reserve Dividend - Preferred shares (@ Baht 0.5945 and 0.4545) Dividend - Ordinary shares (@ Baht 0.44 and 0.30) Net Income carried forward

190

(Million Baht)

Profit of 2008

Profit of 2007

610.00

310.00

3.27

2.50

4,919.09 6,520.68

3,353.92 2,446.16


3.19 Contingencies

(Million Baht)

Consolidated and the Bank’s Financial Statements December 31, 2009

Thai Baht

Aval and guarantees Aval for bills Guarantees for loans

December 31, 2008

Foreign Total Thai Baht Currencies

Foreign Currencies

Total

1,222.88 - 1,222.88 1,676.70 - 1,676.70 775.08 4,273.39 5,048.47 1,213.36 2,373.05 3,586.41 1,997.96 4,273.39 6,271.35 2,890.06 2,373.05 5,263.11

Liability under unmatured import bills - - - - 88.29 88.29 Letters of credit 2,149.06 23,208.38 25,357.44 770.42 19,234.29 20,004.71 Other contingencies Firm underwriting Debt instruments or Securities - - - - - - Other guarantees 61,283.44 9,372.82 70,656.26 53,148.94 10,737.57 63,886.51 FX forward/swap contracts - Bought - 255,059.74 255,059.74 - 145,554.08 145,554.08 - Sold - 277,295.83 277,295.83 - 180,820.33 180,820.33 FX option contracts - Bought - 1,008.90 1,008.90 - - - - Sold - 1,142.10 1,142.10 - - - Interest rate swap contracts 14,352.40 3,336.87 17,689.27 3,566.20 3,494.38 7,060.58 Embedded Derivatives - Assets 122.00 6,583.65 6,705.65 122.00 8,984.60 9,106.60 - Liabilities 122.00 - 122.00 122.00 - 122.00 Undrawn overdraft 118,856.15 144.08 119,000.23 105,169.69 92.20 105,261.89 Others - 108.69 108.69 - 3.95 3.95 Total Other Contingencies 194,735.99 554,052.68 748,788.67 162,128.83 349,687.11 511,815.94 Grand Total 198,883.01 581,534.45 780,417.46 165,789.31 371,382.74 537,172.05 Apart from contingent liabilities mentioned above, as of December 31, 2009 and 2008 the Bank may have to shoulder potential debt incurred in connection with the significant filing of civil cases brought against the Bank of Baht 14,701.82 million and Baht 19,228.49 million, respectively. It has been expected that the final judgement may cause no material effect over the Bank’s financial position and operation. The Bank has set up provisions for contingencies amounting to Baht 0.69 million as of December 31, 2008, and shown in Accounting Estimates. (see Note 3.14)

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3.20 Assets Pledged as Collateral

(Million Baht)

Consolidated and the Bank’s Financial Statements December 31,2008 December 31, 2009

Government and state enterprise bonds pledged as collateral - at court Total

142.57 142.57

264.88 264.88

3.21 Related Party Transactions

3.21.1 Loans to the Bank’s executives (Senior Vice President and above), as of December 31, 2009 and 2008 were Baht 385.91 million and Baht 383.18 million, respectively. The average outstanding balance of loans at month-end was Baht 372.48 million and Baht 342.41 million, respectively. The loans outstanding as of December 31, 2009 and 2008 to close family of the Bank’s executives as referred to in the preceding paragraph were Baht 54.96 million and Baht 60.74 million, respectively. (Million Baht)

Pricing Policy for Loans and Contingencies

The Bank’s Financial Statements December 31, 2009

December 31, 2008

Loans

Loans

Contingencies

Contingencies

3.21.2 The Bank’s loans and contingencies to businesses in which the Bank totally hold from 10 to 20 percent of shareholdings Dhipaya Insurance Pcl. Normal Bank Policy 0.27 9.92 - 14.67 3.21.3 Loans and contingencies to businesses in which the Bank acquired 10 percent and more of shares from TDR Cotco Metal Works Co., Ltd. Normal Bank Policy 444.00 43.99 345.98 1.69 Kiatpapha Co., Ltd. Normal Bank Policy 238.73 0.52 134.36 0.33 Manager Media Group Pcl. Normal Bank Policy - 0.29 - 0.29 3.21.4 Loans and Contingencies to subsidiaries and associated companies Subsidiaries Krung Thai General Business Services Co., Ltd. Normal Bank Policy 32.30 0.20 55.72 0.20 Krung Thai Computer Services Co., Ltd. Normal Bank Policy 1,836.96 2.73 1,979.84 1.95 KTB Leasing Co., Ltd. Normal Bank Policy 12,380.62 0.58 13,338.59 0.57 Associated Companies Krung Thai IBJ Leasing Co., Ltd. Normal Bank Policy 1,008.32 1.08 311.25 1.86 Krungthai Card Pcl. Normal Bank Policy 0.98 - 4,970.00 - KT ZMICO Securities Co., Ltd. Normal Bank Policy 450.00 - - -

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3.21 Related Party Transactions (continued) (Million Baht)

The Bank’s Financial Statements

Pricing Policy for Loans and Contingencies

3.21.5 Loans and contingencies to Related Companies With Common Directors Padaeng Industry Pcl. Normal Bank Policy CH. Karnchang Pcl. Normal Bank Policy RCL Pcl. Normal Bank Policy Thai Airways International Pcl. Normal Bank Policy Loxley Pcl. Normal Bank Policy The Krungthep Thanakom Co., Ltd. Normal Bank Policy Chumporn Palm Pcl. * Normal Bank Policy Crownseal Pcl. Normal Bank Policy Siam Future Development Pcl. Normal Bank Policy Pattaya Manufacturing Co., Ltd. Normal Bank Policy Bangkok Aviation Fuel Services Pcl. Normal Bank Policy Wiik & Hoeglund Pcl. Normal Bank Policy CAT Telecom Pcl. Normal Bank Policy Thoresen Thai Agencies Pcl. Normal Bank Policy Interlink Communication Pcl. Normal Bank Policy With Common Executive Directors Bangkok Mass Transit System Pcl. Normal Bank Policy Thai Rubber Latex Corporation (Thailand) Pcl. Normal Bank Policy Bangkok Expressway Pcl. Normal Bank Policy World Flex Pcl. * Normal Bank Policy TPT Petrochemical (Thailand) Pcl. Normal Bank Policy Advance Agro Pcl. Normal Bank Policy

December 31, 2009

December 31, 2008

Loans

Loans

Contingencies

Contingencies

- - - 3.00 880.10 2,186.15 1,000.00 2,414.61 1,074.52 - 2,870.42 - 15.39 - 6,500.00 - 348.45 820.20 139.82 352.35 50.30 - 25.57 - - - 25.00 - 0.31 - 0.06 - - - 45.26 - 0.07 - - - 0.28 - - - 0.18 - - - 2.87 - - - 266.86 - - - - 163.37 - - 4,144.61 316.63 2,787.15 - 1,419.99 2,139.50

17.98 5.82 - - 96.12 301.97

4,144.61 310.29 4,615.48 92.92 1,910.41 1,197.41

14.38 7.68 - 3.33 183.70 147.31

* As of December 31, 2009, the Bank has no directors and management executives in common.

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3.21.6 Intercompany Trading Transactions Subsidiaries 1) Krung Thai Computer Services Co., Ltd. (KCS) has been mainly designated to provide information technology (IT) services to various work units in the Bank. Services offered consist of introducing IT to the Bank’s business operation and modernizing the existing systems in line with the Bank’s requirement, rendering system control and maintenance, system software development and offering preliminary consultancy service and organizing training in various application of IT and techniques. The Bank incurred service charges on a cost plus method amounting to Baht 2,560 million and Baht 2,300 million for the years-ended December 31, 2009 and 2008, respectively. Since 2003, the GFMIS project Phase 2 has been developed and implemented, on behalf of the Bank, by KCS. The Bank and the Office of GFMIS attached to the Secretariat of the Prime Minister have unanimously signed on the Memorandum of Agreement upon the submission of deliverables and disbursement associated to the investments on the GFMIS project on September 22, 2005. Further, the Bank has signed the hiring contract for the implementation and maintenance with the Office of GFMIS on the same day. 2) The Bank incurred service charges on its subsidiaries (including service charges mentioned in # 1) for the years-ended December 31, 2009 and 2008 amounting to Baht 4,543.60 million and Baht 4,152.55 million, respectively at the agree-upon rate. 3) The Bank generated service fee income under the contracts for the years-ended December 31, 2009 and 2008 amounting to Baht 110.55 million and Baht 88.86 million. 4) Other Information Intercompany Considerations Intercompany income and expense were based on the rate agreed-upon and the amount specified in the contract, whereas, cost plus system has been applicable to some certain transactions. The consolidated financial statements included the accounts of subsidiaries after eliminating inter-office transactions and balances. Associated Companies 1) For years-ended December 31, 2009 and 2008, the Bank generated premises rental income from associated companies amounting to Baht 1.95 million and Baht 1.97 million at the agree-upon rate. 2) For the years-ended December 31, 2009 and 2008, the Bank generated fee income of Baht 723.05 million and Baht 132.49 million at the agree-upon rate under the supportive service contract.

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3.22 Overseas Branches

The Bank has operated seven branches - in Los Angeles, Phnom Penh, Kunming, Vientiane, Singapore, Mumbai and Siem Reap Province Sub-Branch and appointed other certified accountants to conduct the audit their financial statements on annual basis. The assets and liabilities of the overseas branches included in consolidated financial statements (after elimination of inter-branch items) for the years-ended December 31, 2009 and 2008, were as follows: (Million Baht)

Assets Ratio to total assets Liabilities Ratio to total liabilities

The Bank’s Financial Statements December 31,2008

December 31, 2009

13,228.20 0.86 11,018.07 0.77

15,017.07 1.13 14,640.78 1.19

Included in the net loss of Baht 466.32 million and Baht 328.40 million as at December 31, 2009 and 2008, respectively, were gains (loss) from translation of the oversea branches’ financial statements totaling Baht (3.14) million and Baht 32.26 million, respectively. Before the elimination of inter-branch items totaling Baht 2,102.72 million and Baht 338.23 million, the overseas branches’ assets as at December 31, 2009 and 2008 were Baht 13,228.20 million and Baht 15,017.07 million, or 0.86 percent and 1.13 percent, respectively. Overseas branches’ liabilities amounted to Baht 13,120.79 million and Baht 14,979.01 million, or 0.92 percent and 1.22 percent of total liabilities, respectively. Net profit for the years-ended December 31, 2009 and 2008, were Baht 7.71 million and Baht 119.02 million, respectively.

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3.23 Significant Financial Position and Operations Classified by Domestic and International Business Segment

3.23.1 Financial Position Classified by Business Segment

Total assets Interbank and money market items Loans Investments Deposits Interbank and money market items Borrowings Contingencies

(Million Baht)

Consolidated Financial Statements December 31, 2009 Domestic Business Segment

International Business Total Segment

December 31, 2008 Domestic Business Segment

International Business Segment

1,532,704.65 13,228.20 1,545,932.85 1,315,696.92

Total

15,017.07 1,330,713.99

247,471.30 1,065,219.79 135,188.66 1,205,283.57

5,403.80 252,875.10 86,720.66 6,660.53 1,071,880.32 1,035,059.31 1,185.44 136,374.10 110,351.91 2,329.92 1,207,613.49 1,061,014.97

6,301.86 93,022.52 7,438.63 1,042,497.94 1,158.97 111,510.88 2,200.92 1,063,215.89

70,448.96 113,346.72 778,127.73

967.10 71,416.06 32,111.70 7,341.13 120,687.85 92,538.63 2,289.73 780,417.46 535,014.24

4,334.89 36,446.59 7,687.63 100,226.26 2,157.81 537,172.05 (Million Baht)

Total assets Interbank and money market items Loans Investments Deposits Interbank and money market items Borrowings Contingencies

The Bank’s Financial Statements December 31, 2009 Domestic Business Segment

International Business Total Segment

December 31, 2008 Domestic Business Segment

1,528,617.46 13,228.20 1,541,845.66 1,312,505.17

International Business Segment

Total

15,017.07 1,327,522.24

247,540.70 1,067,940.33 134,184.45 1,205,810.27

5,403.80 252,944.50 86,630.97 6,660.53 1,074,600.86 1,038,647.20 1,185.44 135,369.89 109,869.44 2,329.92 1,208,140.19 1,061,330.98

6,301.86 92,932.83 7,438.63 1,046,085.83 1,158.97 111,028.41 2,200.92 1,063,531.90

70,470.32 113,346.72 778,127.73

967.10 71,437.42 32,131.29 7,341.13 120,687.85 92,538.63 2,289.73 780,417.46 535,014.24

4,334.89 36,466.18 7,687.63 100,226.26 2,157.81 537,172.05

Total assets shown in the Consolidated and the Bank’s Financial Statements as at December 31, 2009 and 2008 were stated before the elimination of net inter-company items of Baht 2,102.72 million and Baht 338.23 million, respectively.

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3.23.2 Operations Classified by Business Segment

Consolidated Financial Statements

Interest and dividend income Interest expenses Net Interest Income Non-interest income Non-interest expense Income before Income Tax and Minority Interests

(Million Baht)

December 31, 2009 Domestic Business Segment

57,757.03 (15,399.87) 42,357.16 13,706.57 (38,456.74)

17,606.99

December 31, 2008

International Business Total Segment

949.47 (770.92) 178.55 79.65 (250.49)

7.71

Domestic Business Segment

58,706.50 (16,170.79) 42,535.71 13,786.22 (38,707.23)

17,614.70

International Business Segment

Total

65,021.31 1,325.66 66,346.97 (19,524.04) (1,007.10) (20,531.14) 45,497.27 318.56 45,815.83 11,168.01 (9.77) 11,158.24 (41,047.40) (189.77) (41,237.17)

15,617.88

119.02

15,736.90 (Million Baht)

Interest and dividend income Interest expenses Net Interest Income Non-interest income Non-interest expense Income before Income Tax

The Bank’s Financial Statements December 31, 2009 Domestic Business Segment

57,370.85 (15,401.41) 41,969.44 11,922.97 (37,505.36) 16,387.05

International Business Total Segment

949.47 (770.92) 178.55 79.65 (250.49) 7.71

58,320.32 (16,172.33) 42,147.99 12,002.62 (37,755.85) 16,394.76

December 31, 2008 Domestic Business Segment

International Business Segment

Total

65,085.56 1,325.66 66,411.22 (19,526.22) (1,007.10) (20,533.32) 45,559.34 318.56 45,877.90 9,789.88 (9.77) 9,780.11 (40,015.20) (189.77) (40,204.97) 15,334.02 119.02 15,453.04

Total interest and dividend income and total interest expense, in the Consolidated and the Bank’s financial statements for the years-ended December 31, 2009 and 2008 were stated before the adjustment of inter-company items of Baht 724 million and Baht 897.77 million, respectively. Total interest and dividend income for the years-ended December 31, 2009 and 2008 included fee income and other income generated from loan extension amounting to Baht 833.97 million and Baht 985.67 million, respectively.

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3.24 Net Foreign Exchange Position

The Bank’s net foreign exchange positions (USD equivalent) as of December 31, 2009 and 2008 were as follows: (Million USD)

Spot Forward Forward contracts Swap contracts CCS contracts Options

Consolidated and the Bank’s Financial Statements December 31, 2009 Domestic Business Segment

December 31, 2008

International Business Total Segment

Domestic Business Segment

International Business Segment

Total

666.45

3.22

669.67

1,007.43

1.09

1,008.52

1,184.36 (1,182.04) (662.19) 8.00 14.58

- - - - 3.22

1,184.36 (1,182.04) (662.19) 8.00 17.80

(27.52) 26.64 (994.67) - 11.88

- - - - 1.09

(27.52) 26.64 (994.67) - 12.97

3.25 Disclosure of Financial Instruments

Thai Accounting Standards No. 32 regarding “Financial Instruments: Disclosure and Presentation” is used as a reference for disclosing information on the Bank’s financial instruments. The information aims to assist users of the financial statements to assess the Bank’s exposure to risks associated with significant financial instruments. Financial Instruments A financial instrument is any contract that gives rise to both a financial asset of one enterprise and a financial liability or equity instrument of another enterprise. A financial asset is any asset that is: - Cash - A contractual right to receive cash or another financial asset from another enterprise - A contractual right to exchange financial instruments with another enterprise under conditions that are potentially favorable - An equity instrument of another enterprise A financial liability is any liability that is a contractual obligation: - to deliver cash or another financial asset to another enterprise - to exchange financial instruments with another enterprise under conditions that are potentially unfavorable. An equity instrument is any contract that evidences a residual interest in the assets of an enterprise after deducting all of its liabilities. Financial instruments include both: - Primary Instruments such as Receivables, Payables and Equity Securities

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- Derivative Instruments such as Option Contracts, Futures Contracts, Forward Contracts, Interest Rate Swap Contracts, Currency Swap Contracts and Credit Linked Notes. Derivative Instruments, whether recognized or unrecognized in Balance Sheet, meet the definition of a financial instrument.

3.25.1 Interest Rate Risk Interest rate risk in the balance sheet arises from market interest rate volatility and the mismatch in repricing dates of the Bank’s assets and liabilities that may have an adverse effect on the net interest earnings of the Bank. The majority of the Bank’s financial assets earn interest at floating rates such as MOR, MRR and MLR, except for investments in bonds with a fixed interest rate and maturity. The majority of the Bank’s financial liabilities, include those saving deposit in the domestic money market which pay interest at floating rates and 3-month, 6-month and 12-month time deposits which pay at short-term fixed interest rates. Primary information relating to fixed and floating interest rates applicable to loans as of December 31, 2009 and 2008 was as follows: (Million Baht)

Consolidated Financial Statements The Bank’s Financial Statements December 31, 2009 December 31, 2008 December 31, 2009 December 31, 2008

Fixed interest rate 321,766.54 Floating interest rate 983,151.00 Total loans (financial institutions included) 1,304,917.54

322,507.45 790,229.40 1,112,736.85

321,766.54 984,304.74 1,306,071.28

322,507.45 793,817.30 1,116,324.75

3.25.2 Credit Risk Credit risk is defined as the potential that a bank borrower or counterparty will fail to meet its obligations in accordance with agreed terms or due to the deterioration of credit quality which lead the Bank to fail to take full payment finality as agreed-upon in the contract. It also causes an adverse effect over the Bank’s income and capital fund. The carrying amount for each class of financial asset recognized in the balance sheet, net of applicable allowance for doubtful debts (Note 3.5), represents the Bank’s exposure to credit risk where no material concentration of credit risk. In addition, the Bank incurs risk arising from the potential default on its contractual obligations by the other party towards Contingencies which included aval for bills, guarantees for loans, liability under unmatured import bills, letters of credit and other contingencies. The credit exposure on these instruments is represented by the notional amount recorded off-balance sheet.

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The Bank has realized the effects from various factors, therefore, lending activities have been cautiously done and credit quality has been emphasized by extending credit to high potential, low risks and high yield existing and new customers. Furthermore, the Bank has established loan policy guideline for the credit extension unit to screen potential customers as well as to reduce NPL and to develop such policy to respond any changing situatuation under risk appetite. In addition, the Bank has constantly enhanced quality of business research including economic and industry analysis, Industry Risk Rating and business environment and trend report encompassing businesses according to ISIC code in order to support credit extension and risk assessment of business environment to encourage the Bank’s risk management. In 2009, the Bank improved credit risk management by conducting the revision and improvement of credit risk management policy and manual, credit policy and relative credit policies as a guideline for credit extension to ensure flexible practice and to meet international standards. The Bank also enhanced loan process and risk management tools. Nonetheless, the Bank has performed following up and reporting risk management results to control credit risk in compliance with the Bank’s risk management plan, BOT’s supervision policy and Basel II framework. Following up and managing the quality of loan by closely monitoring approved lending activities to ensure that the compliance to the Bank’s terms and conditions of loan agreement is met by carrying out the NPLs reduction expedition project. Watch list debtors with weak performance will be corrected and controlled in continuation to prevent such loans become NPLs. Further, debt restructuring coupled with legal proceedings has put in place in case of NPLs debtors. NPLs reduction expedition project will encourage precise debt management in solving NPLs problem. Regular progress reportings will help expediting debt repayment with minimum loss. In assessing the adequacy of provisioning as prescribed by the BOT, the Bank is required to conduct credit examination regarding the correctness and completeness of loan classification and debt-restructuring data base. In addition, collateral data are also taken into account in term of type and value of collateral. Such related data potentially have significant impact on the Bank’s provisioning. Any assets classified as doubtful of loss which provision has been fully made, will be totally written off. In this respect, written-off items will still be continually called for uncollectible amount or taken legal proceedings to the final action as prescribed by the Bank’s regulations. Establishing credit review to ensure compliance with standard operation procedures in relation to credit approval and debt restructuring. In addition, qualitative assessments for loan and other related assets will be useful for debtors’ classification as prescribed by the BOT.

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3.25.3 Interest Earning Financial Assets and Interest Bearing Financial Liabilities The table below represents the Bank’s average outstanding balance of interest income/expense and average interest rates on interest earning-financial assets and interest-bearing financial liabilities, for the year-ended December 31, 2009 and 2008. (Million Baht)

Consolidated Financial Statements December 31, 2009 Average Outstanding Balance

Interest Earning Financial Assets Interbank and money market items and securities purchased under resale agreements 187,224.29 Investments in securities, net 123,172.10 Loans 1,067,295.52 Total 1,377,691.91 Interest Bearing Financial Liabilities Deposits 1,151,183.16 Interbank and money 44,070.65 market items Borrowings 125,321.55 Total 1,320,575.36

December 31, 2008

Interest Average Income/ Rate Expense

Average Outstanding Balance

Interest Income/ Expense

Average Rate

3,925.59 3,384.11 50,672.80 57,982.50

2.10% 98,608.17 4,138.71 2.75% 107,895.07 4,790.04 4.75% 1,026,851.25 56,520.46 4.21% 1,233,354.49 65,449.21

4.20% 4.44% 5.50% 5.31%

10,888.50

0.95% 1,058,752.01 15,558.95

1.47%

330.49 4,227.80 15,446.79

0.75% 29,123.68 474.64 3.37% 88,844.94 3,599.79 1.17% 1,176,720.63 19,633.38

1.63% 4.05% 1.67% (Million Baht)

The Bank’s Financial Statements December 31, 2009

Average Outstanding Balance

Interest Earning Financial Assets Interbank and money market items and securities purchased under resale agreements 187,197.97 Investments in securities, net 122,484.89 Loans 1,070,326.58 Total 1,380,009.44 Interest Bearing Financial Liabilities Deposits 1,151,713.21 Interbank and money market items 44,087.72 Borrowings 125,321.55 Total 1,321,122.48

Interest Average Income/ Rate Expense

December 31, 2008

Average Outstanding Balance

Interest Income/ Expense

Average Rate

3,924.90 3,603.60 50,067.82 57,596.32

2.10% 98,306.38 4,134.16 2.94% 108,611.19 5,158.38 4.68% 1,030,487.66 56,220.91 4.17% 1,237,405.23 65,513.45

4.21% 4.75% 5.46% 5.29%

10,889.94

0.95% 1,059,761.42 15,560.74

1.47%

330.58 4,227.80 15,448.32

0.75% 29,164.92 475.03 3.37% 88,844.94 3,599.79 1.17% 1,177,771.28 19,635.56

1.63% 4.05% 1.67%

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3.25.4 Maturity Profile of Assets and Liabilities The table below represents the Bank’s maturity profile of on-balance sheet financial assets and financial liabilities as of December 31, 2009 and 2008. (Million Baht)

December 31, 2009 Less than Over 3 months 1 month 1-3 months up to 1 year Over 1 year No Maturity

Financial Assets Interbank and money market items 167,189.73 14,546.65 49,542.16 21,665.96 Investments in securities, net - - 75,300.99 60,068.90 Loans 76,131.11 67,490.98 212,281.43 718,697.34 Total 243,320.84 82,037.63 337,124.58 800,432.20 Financial Liabilities Deposits 950,061.94 145,809.48 99,999.09 12,269.68 Interbank and money market items 65,685.76 162.00 4,583.86 1,005.80 Borrowings 8,445.51 33,722.42 806.09 77,713.83 Total 1,024,193.21 179,693.90 105,389.04 90,989.31

Total

- 252,944.50 - 135,369.89 - 1,074,600.86 - 1,462,915.25 - 1,208,140.19 - 71,437.42 - 120,687.85 - 1,400,265.46 (Million Baht)

December 31, 2008 Less than Over 3 months 1 month 1-3 months up to 1 year Over 1 year No Maturity

Financial Assets Interbank and money market items 40,809.18 25,446.91 25,992.07 684.67 Investments in securities, net - - 45,404.90 65,623.51 Loans 132,722.47 106,992.22 125,849.49 680,521.65 Total 173,531.65 132,439.13 197,246.46 746,829.83 Financial Liabilities Deposits 629,370.84 199,538.40 204,563.89 30,058.77 Interbank and money market items 27,326.29 238.11 8,396.63 505.14 Borrowings 21,726.53 10,205.28 10,986.42 57,308.03 Total 678,423.66 209,981.79 223,946.94 87,871.94

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Total

- 92,932.83 - 111,028.41 - 1,046,085.83 - 1,250,047.07 - 1,063,531.90 - 36,466.17 - 100,226.26 - 1,200,224.33


3.25.5 Derivatives Derivative are financial contracts whose values are derived from the values of underlying reference rates, indices, or other instruments. Asset and Liability Management The Bank uses derivatives to hedge its market risk arising from its assets and liabilities, which are predominantly related to interest rate and foreign exchange risks. The Bank’s customers are also exposed to market risks and may choose to use derivatives as part of their risk management strategies. The Bank’s general policy is to hedge risks arising from customer positions. The Bank has also pursued a policy to maintain foreign exchange positions stipulated by the Bank of Thailand as in Note 2.13 and to monitor and to alleviate exposures in view of interest rate risk management within a timely manner. Fair Value of Derivatives Fair value represents the amount that the Bank expects to pay or receive on trading and settlement of a derivative contract. The net fair value may be determined by several generally accepted methods based on the economic characteristics of a derivative and the financial market in which it operates. When a financial instrument with standard terms and conditions is traded in an active and liquid market, its quoted market price provides the best evidence of fair value. Furthermore, a fair value can be calculated by using quoted market prices such as interest and foreign exchange rates which are subsequently incorporated into generally accepted discounted cash flow models. Derivative financial instruments as of December 31, 2009 and 2008 were as follows: (Million Baht)

December 31, 2009 Total Up to 1 year Notional Amount

Forward exchange contracts 81,330.68 Foreign exchange swap contracts 413,006.07 Cross currency swap and interest rate swap contracts 11,145.85 Interest rate swap contracts 6,472.40 Foreign exchange call options 1,008.90 Foreign exchange put options 1,142.10 Structured deposits/borrowings 244.00 Total 514,350.00

over 1 year

- - 26,872.97 11,216.87 - - - 38,089.84

81,330.68 413,006.07 38,018.82 17,689.27 1,008.90 1,142.10 244.00 552,439.84

Fair Value Assets (Liabilities)

(528.45) 495.56 258.56 19.87 2.40 (4.18) 0.06 243.82

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3.25.5 Derivatives (continued)

(Million Baht)

December 31, 2008 Total Notional Amount Up to 1 year

Forward exchange contracts 54,280.90 Foreign exchange swap contracts 226,872.04 Cross currency swap and interest rate swap contracts 12,663.00 Interest rate swap contracts 366.20 Structured deposits/borrowings - Total 294,182.14

over 1 year

3,071.75 3,859.36 25,627.37 6,694.37 244.00 39,496.85

Fair Value Assets (Liabilities)

57,352.65 230,731.40 38,290.37 7,060.57 244.00 333,678.99

1,006.20 (755.50) 253.17 0.02 - 503.89

3.25.6 Fair Value Fair value is the value for which the Bank’s and its subsidiaries’ financial assets and liabilities could be exchanged or settled. Quoted market prices, or present value estimates derived from generally accepted financial models, are used to determine fair value. The table below summarized the outstanding balance of on-balance sheet items and the estimated fair value of financial assets and liabilities as of December 31, 2009 and 2008. (Million Baht)

Consolidated Financial Statements

December 31, 2009

Outstanding Fair Value Balance

December 31, 2008 Outstanding Balance

Fair Value

Financial Assets Cash 33,203.18 33,203.18 34,519.84 34,519.84 Interbank and money market items 252,875.10 252,875.10 93,022.52 93,022.52 Investments in securities, net 136,374.10 136,440.93 111,510.88 111,772.54 Loans and accrued interest receivables, net 1,035,151.09 1,035,151.09 1,011,748.52 1,011,748.52 Customers’ liabilities under acceptances 3,808.65 3,808.65 5,249.25 5,249.25 Other debtor-SAM 32.57 32.57 32.57 32.57 Other assets 6,151.51 6,151.51 5,819.14 5,819.14 Financial Liabilities Deposits 1,207,613.49 1,207,613.49 1,063,215.89 1,063,215.89 Interbank and money market items 71,416.06 71,416.06 36,446.59 36,446.59 Liabilities payable on demand 3,931.02 3,931.02 3,004.24 3,004.24 Borrowings 120,687.85 119,944.56 100,226.26 99,101.40 Bank liabilities under acceptances 3,808.65 3,808.65 5,249.25 5,249.25 Accrued Interest Payables 3,225.94 3,225.94 4,398.01 4,398.01 Other creditor, net -TAMC 198.19 198.19 24.49 24.49 Other liabilities 10,736.07 10,736.07 5,329.20 5,329.20

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3.25.6 Fair Value (continued)

(Million Baht)

The Bank’s Financial Statements

December 31, 2009

Outstanding Fair Value Balance

December 31, 2008 Outstanding Balance

Fair Value

Financial Assets Cash 33,202.22 33,202.22 34,518.99 34,518.99 Interbank and money market items 252,944.50 252,944.50 92,932.83 92,932.83 Investments in securities, net 135,369.89 135,436.72 111,028.41 111,290.07 Loans and accrued interest receivables, net 1,038,114.63 1,038,114.63 1,015,525.52 1,015,525.52 Customers’ liabilities under acceptances 3,808.65 3,808.65 5,249.25 5,249.25 Other debtor-SAM 32.57 32.57 32.57 32.57 Other assets 5,627.84 5,627.84 4,974.58 4,974.58 Financial Liabilities Deposits 1,208,140.19 1,208,140.19 1,063,531.90 1,063,531.90 Interbank and money market items 71,437.42 71,437.42 36,466.18 36,466.18 Liabilities payable on demand 3,931.02 3,931.02 3,004.24 3,004.24 Borrowings 120,687.85 119,944.56 100,226.26 99,101.40 Bank liabilities under acceptances 3,808.65 3,808.65 5,249.25 5,249.25 Accrued Interest Payables 3,225.96 3,225.96 4,398.07 4,398.07 Other creditor, net (TAMC) 198.19 198.19 24.49 24.49 Other liabilities 9,395.60 9,395.60 4,338.66 4,338.66 The significant methods and assumptions used in measuring the fair value of financial assets and financial liabilities are disclosed as follows: The carrying value of cash, interbank and money market items (assets and liabilities), deposits, liabilities payable on demand, customers’ liabilities under acceptances and off-balance sheet items under contingencies are presented at fair value by estimation according to the amounts which are shown on the balance sheet. The quoted market values applicable to trading, available-for-sale and held to maturity debt securities determine their fair value. For non-marketable debt securities, fair value is based on the most recent bid yield. Where such prices are not available, a yield curve lately published by Thai BDC is used to determine its fair value. The net carrying amount of general investments approximates their fair value. The carrying value as disclosed in the balance sheet of loans and accrued interest receivable (net of allowance for doubtful accounts fully provided as required by the Bank of Thailand) approximates their fair value. The fair value of borrowings is the carrying value as disclosed in the balance sheet, except for those of Perpetual Tier 1 Securities are stated at fair value calculated by way of Bloomberg and Thai BMA. The fair value of off-balance sheet items as derivatives are stated in Note 3.25.5 whereas the others are reflected by their notional amount.

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3.26 Long-terms Leased Asset

The Bank has commitments arising from lease agreements. The amounts due according to the period of time are classified as follow: (Million Baht)

Description

Land/Premises lease agreement Vehicle lease agreement Facsimile/Copy Machine lease agreement Total

Year 2010

245.28 326.73 12.27 584.28

December 31, 2009 Year 2012

Year 2011

163.43 284.87 9.37 457.67

201.47 346.51 4.96 552.94

Total

610.18 958.11 26.60 1,594.89 (Million Baht)

Description

Land/Premises lease agreement Vehicle lease agreement Facsimile/Copy Machine lease agreement Total

Year 2009

221.46 327.09 19.11 567.66

3.27 The Acquisition of Assets and Liabilities

December 31, 2008 Year 2010 Year 2011 160.43 317.30 10.42 488.15

177.27 505.52 10.21 693.00

Total

559.16 1,149.91 39.74 1,748.81

3.27.1 The Acquisition of Assets and Liabilities of Sayam Bank Limited On August 17, 1987, the assets and liabilities of Sayam Bank Limited, (now called Dhipyasin Co., Ltd.) were transferred to the Bank with liabilities exceeding assets by Baht 7,371.60 million. The Bank, therefore, designated Sayam Bank Limited (Dhipyasin Co., Ltd.) as a debtor under non-interest earning accounts receivable. An effect arising from the transfer as such would be guaranteed and borne by the Government to prevent any losses that would affect the Bank according to the Government policy. The excess of liabilities over assets outstanding as of December 31, 2008 of Baht 335 million is presented in other assets (Note 3.10). In 2009, the Bank has received the settlement of the full amount of liabilities. 3.27.2 The Acquisition of Assets and Liabilities of Bangkok Bank of Commerce Public Company Limited During the period from October 8, 1998 to December 31, 1998, the Bank acquired certain liabilities (depositors and creditors) and performing assets of Bangkok Bank of Commerce Public Company Limited (BBC) (as now called Bangkok Commerce Pcl.). BBC was recorded as a Bank’s debtor for the difference of Baht 16,580.57 million and was liable to pay interest at the weighted average cost of 3 mth-fixed deposit rate of the previous month, plus 1 percent p.a. on the net debtor amount. The transfer value as such was settled since October 8, 2003. The Bank has yet to be repaid amounting to Baht 966.70 million related to debts borne by the Bangkok Commerce Pcl. as to the notice letter to FIDF dated August 15, 2002.

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On September 25, 2002 Krung Thai Legal Services Co., Ltd., acting as a fiduciary for the Bank, filed a claim with the Receiver against the Bangkok Commerce Pcl., a debtor in Bankruptcy, for which the amount included accrued interest receivable and suspended items amounting to Baht 816.44 million and Baht 139.57 million, respectively. A permission has been passed by the court’s order but the amount of repayment has yet to be considered. Where such claim was not fully met, the Bank would be totally set off by the FIDF. On July 2, 2004, the Bank has raised the issue to the FIDF whether the accrued interest receivable of Baht 816.44 million and other assets of Baht 139.57 million, under Financial Institution Rehabilitation Plan as on August 14, 1998, have been entitled to compensation borne by Ministry of Finance. It has yet to be considered by the Ministry of Finance, as informed to the Bank on December 16, 2004. The meeting between the Bank and the Financial Institutions Development Fund was held on September 25, 2008 regarding the consideration of Compensation in term of interests in associated with impaired-assets sold, allocated to related parties in order to seek collaboration and induce the ultimate resolution from the Ministry of Finance (MOF) on the matter as such, expeditiously. The Bank informed the Fiscal Policy Office on October 6, 2008 to consider the approval of such compensation which still showed no progress. On September 30, 2009 the Bank received a distribution from the Bangkok Commerce Pcl.’s bankruptcy estate amounting to Baht 4.76 million. Consequently, as of December 31, 2009 and 2008, the Bank’s remaining outstanding balance of suspense account debtor which is interest receivable since year 1998 amounted to Baht 816.44 million (included in accrued interest receivable as to Note 3.4) and the outstanding balance of suspense account arising due to the difference from the transfer was booked in other assets for approximately Baht 134.81 million and Baht 139.57 million, respectively (included in other debtors and sundry assets as to Note 3.10). 3.28 The Transfer of Non-Performing Loans to Sukhumvit Asset Management Company Limited (SAM) On April 18, 2000 the Cabinet approved a plan to manage distressed loans of the Bank through the establishment of Sukhumvit Asset Management Company Limited wholly owned 100 percent by the Financial Institutions Development Fund (FIDF). As at September 21, 2000 the Baht 519,378.17 million and Baht 198,126.15 million of non-performing assets (including those transferred from First Bangkok City Bank Pcl.) and allowance for doubtful accounts, respectively, were transferred to Sukhumvit Asset Management Co., Ltd. (SAM), in accordance with the guidelines issued by the Cabinet on April 18, 2000. A 5-year promissory note avaled by the FIDF of Baht 321,252.02 million was issued as payment to the Bank. The transferred price can be modified under the terms and conditions specified in the contract. A promissory note issued by SAM, avaled by the FIDF of Baht 108,000 million was paid to the Bank on September 21, 2000 to set off the income-reversed allowance and that was subsequently repaid to the FIDF by the same amount. As at December 31, 2005 SAM has already settled such promissory notes including accrued interest receivable.

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On February 16, 2005, the Bank requested SAM to issue a new promissory note with an increase of Baht 5,832.54 million to settle the transfer cost arising from an increase of collateral value. The Bank also suggested SAM to repay the Baht 4,630.51 million for the Bank’s advances on June 30, 2005. SAM issued the P/Ns drawn on September 20, 2005, amounting to Baht 10,000 million, which represents the compensation to the Bank for the additional transfer cost of NPLs due to the partial preliminary assessment and the settlement of inter-company transactions including those L/G and revolving loans. Settlement of P/Ns as such was completed on September 21, 2005 totaling to Baht 10,000 million, consequently, accounting treatments would be less on Other Debtors, net, - SAM amounting to Baht 5,524.60 million, less on Prepayment - SAM and other related account amounting to Baht 643.33 million. The residual amount was treated as an allowance for Doubtful Accounts transferred from SAM amounting to Baht 3,832.07 million whereas partially adjusted transfer cost, requested by the Bank, has been under verification by SAM. In 2008, SAM has, in some part, settled with the Bank for the asset transferred and other inter-company accrued items amounting to Baht 821.78 million. It has been all credited to returned of allowance for bad and doubtful accounts amounting to Baht 646.71 million, to unearned service charge included in other assets of Baht 137.61 million, to other unearned items of Baht 24.85 million, to fee received from other services of Baht 2.79 million and to VAT of Baht 9.82 million. On November 12, 2009, the Bank together with SAM held the meeting to find conclusion in the cessation of transferring assets cost adjustment. As of December 31, 2009 and 2008, the settlement between the Bank and SAM has been accrued and booked in Other Debtors (net) - SAM with the outstanding amount of Baht 32.57 million.

3.29 The Transfer of Non-Performing Loans to Thai Asset Management Corporation (TAMC) TAMC was established under Emergency Decree on Thai Asset Management Corporation B.E. 2544

(2001) with an objective to manage impaired assets of financial institutions by taking transfer of impaired assets of financial institutions as well as any other rights over the property being held as collateral for debt repayments with respect to such impaired assets. Under such decree, financial institutions are required to transfer their impaired assets to TAMC as well as any other rights over the property held as collateral under the conditions and within the timeframe specified by TAMC. The transfer price shall be equal to the value of assets held as collateral, with respect to such impaired assets, according to the appraisal criteria specified by the BOT. The Bank shall have the right to request a new appraisal of the collaterals within specified criteria and timeframe. TAMC and the Bank agree to recognise and share profit or loss arising from the management of impaired assets at the end of fifth year and the end of tenth year hence from July 1, 2001. TAMC shall calculate the profit or loss for the transferred impaired-assets of each debtor having completely repaid or only debtors whose assets are disposed in the case of asset transferred for repayment. The calculation as such will base on accumulated asset recoveries on a cash basis up to the date of calculation less transfer cost, other operating expenses incurred by TAMC including all interest paid to the Bank. In the case of generating profits, the first portion not over 20 percent of the profit will be evenly shared between the Bank and TAMC. The second portion of the profit thereafter plus the first portion thus not exceeding the difference between the book value of impaired assets and transfer price will be realised by the Bank. The remaining profit will be realised by TAMC.

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In the case of realizing losses, the first portion not over 20 percent of the transfer price will be absorbed solely by the Bank whereas the second portion not over 20 percent will be evenly shared between the Bank and TAMC. The remaining losses will be wholly absorbed by TAMC. Total losses absorbed by the Bank, therefore, will be up to 30 percent of the transfer price. The result of impaired asset management as informed by the official letter No. PHOR THOR SOR. 2471/ B.E. 2552 (2009) dated November 30, 2009 regarding the notification of impaired-asset management operation as of June 30, 2009 (the ended of 8th year), for the Bank’s proportion of income, is shown net loss approximately Baht 131.43 million. As of December 31, 2008, The Bank’s net impaired assets transferred to TAMC were Baht 18,081.55 million. For the year 2009, the transfer price was adjusted down by Baht 275.68 million, thus, the outstanding transferred price were Baht 17,805.87 million which are the transfers during year 2001-2006. TAMC shall complete a preliminary verification of asset price within 180 days for each transfer. Having confirmed matching asset price, TAMC shall issue non-transferable promissory notes, with 10-year maturity and avaled by the FIDF, to the Bank. TAMC may exercise the right to redeem these promissory notes before their maturities. Interest rates will be calculated by using reference weighted average deposit interest rate of the five large scale commercial banks announced by the BOT and will be paid on the last working day of the year. Up to December 31, 2009 and 2008, the Bank has received partial payments and as of December 31, 2009 and 2008 transfer price payables amounted to Baht 10,416.06 million and Baht 12,030.22 million, respectively, which are 29 promissory notes, included and shown under long-term investments. As at December 31, 2009 the Bank has yet to consider the lower of the transfer price of approximately Baht 170.74 million requested by TAMC. For debtors engaged in pledging machineries as collaterals amounting to Baht 1,744.48 million, the lower of face value has been adjusted by TAMC whereas the Bank has held up the receiving of such promissory notes until the resolution regarding transfer cost would be passed. Accrued interest receivable was booked at Baht 76.85 million by the Bank. The Bank has entered into the management of impaired assets transferred to TAMC without consideration according to the memorandum of assignment in managing impaired assets dated July 4, 2003. The Bank has been hired to manage the impaired assets transferred from other financial institutions as to the agreement dated August 26, 2003 and September 30, 2003, respectively. The management fee shall be charged on a monthly basis at the rate of 0.75-1 percent calculated on the outstanding balance of book value of debtors as agreed upon. The other 0.5 percent is calculated on the outstanding balance of book value of debtors having repaid through debt restructuring without default for 6 consecutive allotments. Documents and information related to each debtor must be completely prepared and submitted to TAMC Board of Directors seeking approval within 6 months from the signing date and the Bank has satisfied the agreement. The Bank generated the Baht 5.64 million as at March 31, 2008. (no management fee paid during January-December 2009) In addition, the consideration shall be rendered to the Bank as to the hiring engagement dated November 10, 2003 and July 6, 2004 for the contractual and legislative administration in associated with such impaired assets. The Bank generated the Baht 0.11 million as at March 31, 2008. (no management fee paid during January-December 2009) Provisions that may arise from losses on impaired-assets transferred to TAMC have been estimated at 15 percent upon transfer price. As of December 31, 2009 provisions as such stood at Baht 2,670.88 million as shown in Accounting Estimates (Note 3.14).

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3.30 Government Fiscal Management Information System Project (GFMIS)

On July 3, 2003 the Steering Committees to the GFMIS, chaired by the Prime Minister, has passed the approval to designate the Bank as the service provider to proceed with the system design, interfacing network development and implementation of the GFMIS Phase 1 in line with the government sector’s requirement. The Cabinet has also passed a resolution on July 22, 2003 to approving the Bank to further to GFMIS Phase 2. The Bank has pre-invested the Baht 1,400 million on the project. The GFMIS would bring about significant changes in Planning & Budgeting System, Government Cash Position, National Accounting System, E-Payment and Settlement System, Auditing and Evaluation Monitoring System and Analytical Database System. The GFMIS would run on the online-real time basis. The Krung Thai Computer Services Co., Ltd. has been subcontracted on behalf of the Bank. 3.30.1 The Bank has signed the system implementation and maintenance service hiring contract dated September 22, 2005 with the Office of GFMIS for 2 years term commencing from October 1, 2004 to September 30, 2006. KCS has been proceeded with the subcontract on behalf of the Bank. The government has agreed to extend the hiring contract with the Bank regarding such services for another period of time (from October 1, 2008 to September 30, 2009) within the budget line of Baht 365 million (VAT included). For the year-ended December 31, 2009, the Bank has realized income upon such services from the government amounting to Baht 331.75 million and incurred expenses of Baht 320.59 million to KCS at the relevant period. 3.30.2 The Bank made an agreement with the comptroller General’s Department to render money transfer services through GFMIS. The Bank has realized Baht 103.12 million upon rendering the services as such for the year-ended December 31, 2009. 3.31 Operation and Risk Management Policies within the Financial Conglomerate The Bank has followed the BOT’s Consolidated Supervision Policy by setting up a financial conglomerate consisted of 12 companies which are Krung Thai Bank Pcl., KTB Leasing Co., Ltd., Krung Thai IBJ Leasing Co., Ltd., Krungthai Card Pcl., Krung Thai Asset Management Pcl., KT Zmico Securities Co., Ltd., Krungthai-AXA Life Insurance Co., Ltd., Krungthai Panich Insurance Co., Ltd., Krung Thai Legal Services Co., Ltd., Krung Thai Computer Services Co., Ltd., Krung Thai General Business Services Co., Ltd. and KTB Advisory Co., Ltd. The Bank has prepared operation and risk management policies for the inter-company transactions within the financial conglomerate as a supervision guideline to facilitate standards and common procedures of operation and risk management which conform to the BOT’s Consolidated Supervision Policy. The policies include types of operations, rules and regulations regarding the conglomerate’s operations, ratios of significant operations and other related operating procedures. The operations within the conglomerate are conducted in the same manner as public operations and follow the Bank’s corporate governance.

210


3.32 Others

Loans investigated by the Assets Examination Committee (AEC) included those extended by the Bank to certain debtors to which approvements are granted on December 9, 2003 with the credit line of Baht 9,900 million. It has already been drawn down amounting to Baht 8,368.73 million. AEC has passed the issue to the Office of the Attorney General for further action, as such, the filing has been brought to Supreme Court’s Criminal Division for Holders of Political Positions. As of December 31, 2009, such the drawn amount has been totally accrued including the interest and classified as doubtful of loss debtors. The Bank has fully set aside the allowance for doubtful accounts to satisfy the BOT’s regulation, accordingly.

3.33 Reclassification of Accounts

Accounts in the consolidated financial statements and the Bank’s financial statement for the year-ended December 31, 2008, shown as comparing, have been reclassified to conform with the presentation in the financial statements for the year-ended December 31, 2009 as follows: (Million Baht)

Balance sheets as at December 31, 2008 Assets Premises and equipment Intangible assets Derivative revaluation Other assets Liabilities Derivative revaluation Other liabilities Statements of income for the year-ended December 31, 2008 Non-interest income Reversal of loss on impairment of properties foreclosed Reversal of loss on impairment of other assets Gain on disposal of properties foreclosed, Net Other income Non-interest expenses Taxes and duties Fees and service expenses Loss on impairment of other assets Other expenses

Consolidated Financial Statement The Bank’s Financial Statement Old Accounts New Accounts Old Accounts New Accounts 22,554.87 3,297.66 - 10,859.87

22,466.53 2,704.85 4,324.80 7,216.21

- 1,147.38 - 10,015.31

- 466.23 4,324.80 6,371.66

- 11,469.98

3,820.90 7,649.08

- 10,479.45

3,820.90 6,658.55

159.55 2.73 - 2,143.02

- - 914.26 1,177.78

175.10 2.73 - 1,502.75

- - 901.32 553.05

2,495.43 586.40 198.95 3,937.16

2,484.30 421.20 - 4,099.17

2,494.30 500.87 198.95 5,938.54

2,483.17 335.68 - 6,100.54

Annual Report 2009 Krung Thai Bank Pcl.

211


3.33 Reclassification of Accounts (continued)

(Million Baht)

Consolidated Financial Statement The Bank’s Financial Statement Old Accounts New Accounts Old Accounts New Accounts

Cash Flow Statement for the year-ended December 31, 2008 Increase in net other assets Purchase of intangible assets

3.34 Approval of the Financial Statements

373.05 730.43

593.81 509.67

332.33 462.84

553.09 242.08

The Bank’s Board of Directors has approved the presentation of this financial statements on February 18, 2010.

Basel II Pillar III disclosures concerning bank’s capital, risk exposures, risk management practices and capital adequacy is disclosed as the requirement of the Bank of Thailand. Location of disclosure www.ktb.co.th>Investor Relations>Financial Information>Basel II Pillar III Disclosures Date of disclosure within April 2010 Information period ending December 31, 2009

212


General Information

Name of Company Registration Number Business Type Head Office Telephone Number KTB Call Center Fax. Website

: : : : : : : :

Krung Thai Bank Public Company Limited 0107537000882 (formerly Bor.Mor.Jor.335) Commercial Banking 35 Sukhumvit Road, Klong Toey Nua Subdistrict, Wattana District, Bangkok 10110 +662 255-2222 1551 +662 255-9391-3 www.ktb.co.th

Nature of Business

Krung Thai Bank Pcl. conducts commercial banking business under the license issued by the Ministry of Finance and other related agencies. The Bank operates business under the Commercial Banking Act of Thailand and other directives of the Bank of Thailand, Ministry of Finance and other related agencies.

Brief History and Key Developments Historical Background

The Bank was incorporated on March 14, 1966 through a merger between the Mondhon Bank Limited and the Agriculture Bank Limited with the Ministry of Finance as major shareholder. It became a large bank after the merger with sound financial position, the ability to render financial services of all types and was trusted by the general public. In August 1987, the Bank accepted the transfer of assets and liabilities of Sayam Bank Limited for further management with total liabilities higher than assets by Baht 7,372 million. Hence, the Bank set Sayam Bank Limited (later was renamed Dhipyasin Co.,Ltd.) as its debtor without charging interest. The official regulator had the policy that if such business

management negatively impacted the Bank’s financial standing, the regulator would bail out the Bank from any losses. In June 1989, the Bank was the first state enterprise that listed its shares in the Stock Exchange of Thailand and started trading from August 7, 1989 onwards. The Bank registered its transformation to public limited company on March 24, 1994 under “Krung Thai Bank Pcl.” abbreviated KTB registration No. Bor.Mor.Jor. 335 currently changed to 0107537000882.

Key Developments

November 1998

The Bank accepted a transfer of equal amount of assets and liabilities of Baht 284,532 million from the First Bangkok City Bank Pcl. for management. In case deposit creditors or other creditors transferred to the Bank carried interest rates or other capital fund costs higher than those to be paid by the Bank, the Bank would be compensated in the amount of such difference from the official regulators (the Bank of Thailand/ the Ministry of Finance/ the Financial Institutions Development Fund). If such transfer of assets and liabilities caused any encumbrance or resulted in lack Annual Report 2009 Krung Thai Bank Pcl.

213


of benefits entitled to the Bank, the official regulators would make full compensation to the Bank. September 2002 The Extraordinary General Meeting of Shareholders No.1/2002 on September 24, 2002 passed a resolution to give an approval to the Bank to repurchase 10,800 million units of warrant for the rights to buy back preferred shares Section A from the Financial Institutions Development Fund at Baht 0.61 per unit totaling Baht 6,588 million and revoke such warrant units on September 27, 2002. The Bank had also been approved to reduce its registered capital through a reduction of 10,800 million preferred shares Section A at Baht 10 per share totaling Baht 108,000 million, and approved the reduction of its capital to decrease the accumulated loss through reduction of par value from formerly Baht 10 to Baht 5.15 per share (par value).

October 2003

Since the Financial Institutions Development Fund (FIDF) had the policy to reduce its shareholding, the Bank then made a public offering of the 3,000 million shares held by FIDF during October 9 -10, 2003 and received good response from investors. As a result, the Bank had to allocate additional 450 million shares making a total of 3,450 million shares for public offering. Of this, 1,693 million shares were sold to domestic investors breaking down into 987 million shares to individual investors and 706 million to domestic institution investors accounting for 28.6 percent and 20.5 percent of the total shares offered. The remaining 1,757 million shares were sold to foreign investors accounting for 50.9 percent at Baht 8.50 per share. After such public offering, FIDF still retained its status as a major shareholding of the Bank with 6,306,635,967 shares held accounting for 56.4 percent of the Bank’s total paid up shares then.

Bank’s Shares as at December 31, 2009

214

The Bank’s registered capital amounted to Baht 57,664,098,087.50 classified into Ordinary shares 11,191,412,250 shares at Baht 5.15 per share Preferred shares 5,500,000 shares at Baht 5.15 per share 11,196,912,250 shares Total The Bank’s paid-up capital amounted to Baht 57,604,032,350.00 classified into Ordinary shares 11,179,749,000 shares at Baht 5.15 per share Preferred shares 5,500,000 shares at Baht 5.15 per share 11,185,249,000 shares Total


Ordinary Shares Ordinary shares are traded both on domestic and foreign boards – KTB for domestic and KTB-F for foreign board. Preferred Shares Preferred shares are traded both on the domestic and foreign boards. Symbols used are KTB-P for domestic and KTB-Q for foreign board. Preferred share refers to share invested in full par value whereby the shareholder not only has the right to vote in the general meeting and the right to receive dividend, but also receives a fixed 3 percent per annum of special dividend in preference to ordinary shareholder. Conditions for Investment in Bank’s Shares 1. Bank’s shareholders shall comprise Thai nationalities of not less than 75 percent of the total voting shares sold. If it is deemed appropriate, the Bank of Thailand (BOT) may allow non-Thai persons to hold 49 percent of the voting shares sold. 2. No person can hold or possess more than 10 percent of voting shares sold of any financial institution, directly or indirectly, except when permitted by the Bank of Thailand or in compliance with the requirements of BOT. The Bank prepared the list of shareholders with the rights to attend the 16th Annual Ordinary General Meeting on Thursday March 26, 2009. The names are compiled in accordance with Section 225 of the Securities and Exchange Act B.E. 2535 (1992) and its Amendment B.E. 2551 (2008) at the closing of share register on

Friday March 27, 2009 whereby free float shareholders accounted for 44.69 percent of paid-up capital. Other Shares As at December 31, 2009, the Bank held 432,384,677 units of Non-Voting Depository Receipt (NVDR). Holders of such NVDR shall have no voting right in the general meeting except when voting on delisting of reference securities from the stock exchange. However, NVDR accounted for 3.87 percent of the Bank’s ordinary shares paid up and was equivalent to 8.61 percent of ordinary shares held by free float shareholders. Investors can check the amount of NVDR on the website of the Stock Exchange of Thailand at http://www.set.or.th.

Annual Report 2009 Krung Thai Bank Pcl.

215


Debt Instruments or Convertible Securities as at December 31, 2009

Issuance Date

Type of Debt Redemption Credit Rating(1) Outstanding Period Date Instruments

May 2005 Subordinated Debenture AA (tha) by Baht 10,400 million 10 yrs May 2015 no.1/2005 Fitch Ratings BB by USD 220 million - First date Oct. 2006 Hybrid Tier I (2) Fitch Ratings to redeem is Baa3 by Moody’s Oct. 2016 BB+ by S&P Nov. 2006 Hybrid Tier I A (tha) by Baht 1,140 million - First date Fitch Ratings to redeem is Nov. 2016 Sep. 2007 Promissory Note - Baht 122 million 3 yrs Oct. 2010 Jun. 2008 Subordinated Debenture AA (tha) by Baht 6,879.20 million 10 yrs Jun. 2018 no.1/2008 series 1 (Fix Rate) Fitch Ratings Jun. 2008 Subordinated Debenture AA (tha) by Baht 629.20 million 10 yrs Jun. 2018 no.1/2008 series 2 Fitch Ratings (Floating Rate) Feb. 2009 Subordinated Debenture AA (tha) by Baht 21,000 million 10 yrs May 2019 no.1/2009 Fitch Ratings Oct. 2009 Subordinated Debenture AA (tha) by Baht 13,000 million 10 yrs Oct. 2019 no.2/2009 Fitch Ratings Dec. 2009 Long Term B/E - Baht 17,024 million 1.5 – Depend on the 5 yrs date of purchase Dec. 2009 Short Term B/E - Baht 42,851 million 1 – 12 Depend on the months date of purchase Note: (1) Credit Rating as at December 31, 2009 (2) Listed on the Stock Exchange of Singapore as secondary market

216


Binding Obligation for Future Share Issuance provisioning as appropriate for their business

The Bank is not obligated to issue any share in the future.

Dividend Payment Policy

Payment of Dividend The Bank has the policy to pay about 40 percent of its net income as dividend. However, dividend payment in each year is subjected to realize profit from normal business operation in that year. Also taken into consideration were future performance of the Bank as well as economic condition, financial factors involved, growth of credit extension and provisioning, retained earnings, legal and other provisioning as the Bank deems necessary and regulatory compliance including resolution from the Board meeting and/or shareholders general meeting. For 2008 performance, the Bank paid Baht 0.44 per ordinary share and Baht 0.5945 per preferred share (40.84 percent of net income) on May 12, 2009. Payment of Subsidiaries Dividend Dividend payment of subsidiaries depends on each company’s operating performance, retained earnings, legal provisioning and other required

operation.

Auditor’s Fee Paid

1) Audit fee

2) Non-audit fee

The Bank and subsidiaries paid a total of Baht 6,801,230 for the audit fee in the past accounting period. The amount comprised of Baht 6,075,000 for auditing and Baht 726,230 as other expenses. The Bank and subsidiaries paid Baht 400,000 for preparation of special report and report on foreign exchange profit which has to be paid in the future as service is not completed in the past accounting period.

Other References

Securities Register Thailand Securities Depository Co., Ltd.

62 Stock Exchange of Thailand Bldg. Ratchadapisek Road, Klong Toey Subdistrict, Klong Toey District, Bangkok 10110 Telephone +662 229-2800 Fax. +662 359-1259

Annual Report 2009 Krung Thai Bank Pcl.

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Debenture Holder Agent and Debenture Registrar Subordinated debenture and Hybrid Tier I (currency: Thai Baht) The Agent and Securities Services Department TMB Pcl.

393 Silom Bldg. 2nd Floor, Silom Road, Bangrak District, Bangkok 10500 Telephone +662 230-5878 Fax. +662 230-6200

Hybrid Tier I (currency: USD)

The Bank of New York Mellon (Debenture holder agent) Merck House Seldown Poole BH15 1 PX UK

The Bank of New York Mellon (Registrar)

101 Barclay Street, New York, NY 10286 USA

218

Auditor Office of the Auditor General

Rama VI Road, Sam Sen Nai Subdistrict, Phaya Thai District, Bangkok 10400 Telephone +662 271-8000 Fax. +662 618-5788

Legal Advisors Legal Consultant Department Compliance & Procedures Sector, Risk Management & Compliance Group, Krung Thai Bank Pcl.

35 Nana Nua Bldg. 8th Floor, Sukhumvit Road, Klong Toey Nua Subdistrict, Klong Toey District, Bangkok 10110 Telephone +662 208-3850 -9 Fax. +662 256-8028

Krung Thai Legal Services Co., Ltd.

191/50-53 CTI Tower 19th Floor, Ratchadapisek Road, Klong Toey Subdistrict, Klong Toey District, Bangkok 10110 Telephone +662 261-3739 Fax. +662 261-3748 -50


Legal Disputes

As of the latest accounting period, the Bank had no cases where it was the defendant with capital of over 5 percent of shareholders’ equity. Progress on the two cases previously disclosed where the Bank was the defendant with capital of less than 5 percent of shareholders’ equity latest details as follows: 1. The case in the Bangkok South Civil Court: civil case No. Black 3129/2546 between Mrs. Kloy Koombang on her personal behalf and in her capacity as the administrator of Mr. Sa-Nga Koombang through Mrs. Nanthana Pinyocheep, assignee as plaintiff and Krung Thai Bank Pcl. as defendant with capital amounting to Baht 5,238,784,360.52 on charge of infringement, claim of damage and claim of assets. The case was filed on May 13, 2003 and the Count of First Instance issued a verdict on September 30, 2003: civil case No. Red 8406/2546 to dismiss the charges and the court fee to be non-refundable. The plaintiff later lodged an appeal and the Court of Appeal affirmed the same judgment on July 26, 2004. The plaintiff lodged a Dika appeal to the Supreme Court on December 28, 2004 and the Bank filed the reply to such appeal on March 18, 2005. The Supreme Court issued its

verdict on October 24, 2008 to confirm the judgment of the Court of First Instance. Hence, the case has come to an end. 2. The case in the Bangkok South Civil Court: civil case No. Black 4124/2543 between Markland Real Estate Co., Ltd. plaintiff and Krung Thai Bank Pcl. as defendant with capital amounting to Baht 3,148,430,000 on charges of breach of reciprocal loan agreement and claim for damage. The case was filed on June 2, 2000 and the Court of First Instance issued its verdict on June 30, 2004 on the case No. Red 4511/2547 to dismiss the charges and the court fee to be non-refundable. The plaintiff later lodged an appeal to the Court of Appeal on August 27, 2004 and the Bank filed back its reply on June 28, 2005. The Court of Appeal gave its judgment on June 16, 2009 to confirm the same verdict of the Court of First Instance of dismissing the charges with the Court of Appeal’s judgment read by the Court of First Instance on October 21, 2009. The Bank is currently waiting to see whether the plaintiff will lodge a Dika appeal on the verdict of the Court of Appeal or not. This case has no significant impact on the Bank business as yet.

Annual Report 2009 Krung Thai Bank Pcl.

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Companies in which Krung Thai Bank holds 10 percent or more of the total shares issued as at December 31, 2009

Name and Address

Type of Business

Total Shares Issued

No. of Percentage Type Shares of of Invested Shareholding Share

Life / Non-Life Insurance

1. Krungthai-AXA Life Insurance Co., Ltd. Life Insurance 135,500,000 67,750,000

50.00

Ordinary

2. Krungthai Panich Insurance Co., Ltd.

Non–life Insurance

11,000,000

4,950,000

45.00

Ordinary

3. Dhipaya Insurance Pcl.

Non-Life Insurance

300,000,000 50,880,000

16.96

Ordinary

2034/116-117,136, 138-143 Italthai Tower, 27th and 32nd – 33 rd Fl., New Phetchburi Rd., Bang Kapi, Huay Khwang, Bangkok 10320 Tel. +662 723-4000 Fax. +662 723-4032

208 Wireless Rd., Lumpini, Pathumwan, Bangkok 10330 Tel. +662 302-0111, +662 651-5500 Fax. +662 651-5511 63/2 Rama IX Rd., Huay Khwang, Bangkok 10320 Tel. +662 248-0059 Fax. +662 248-7850

Hire Purchase / Leasing 4. KTB Leasing Co., Ltd.

Hire Purchase 10,000,000

9,999,993

100.00

Ordinary

5. Krung Thai IBJ Leasing Co., Ltd. Hire Purchase 10,000,000

4,899,998

49.00

Ordinary

th

977/3 SM Tower,4 Fl., Phaholyodhin Rd., Sam Sen Nai, Phaya Thai, Bangkok 10400 Tel. +662 299-3800 Fax. +662 299-3801-2 th

161 Nantawan Bldg., 18 Fl., Rajadamri Rd., Lumpini, Pathumwan, Bangkok 10330 Tel. +662 252-9620 Fax. +662 254-6119

220


Companies in which Krung Thai Bank holds 10 percent or more of the total shares issued as at December 31, 2009 (continued)

Name and Address 6. Krungthai Charoensri Co., Ltd. (Contact office of the Liquidator)

Type of Business

Total Shares Issued

No. of Percentage Type Shares of of Invested Shareholding Share

Hire Purchase

1,000,000

350,000

35.00

Ordinary

Asset Management

20,000,000

19,999,986

100.00

Ordinary

4,000,000

3,999,997

100.00

Ordinary

186,400,000 93,200,000

50.00

Ordinary

175,552,000 34,125,000

19.44

Ordinary

21/3 Si Chan Branch Bldg., Si Chan Rd., Nai Mueang , Mueang, Khon Kaen 40000 Tel. +6643 247-215 -7 Fax. +6643 247-218

Securities / Consultant

7. Krung Thai Asset Management Pcl.

11 Q House Sathorn Bldg.,M,G Fl., South Sathorn Rd., Thung Maha Mek, Sathorn, Bangkok 10120 Tel. +662 670-4900 Fax. +662 679-1820

8. KTB Advisory Co.,Ltd. Financial 62 The Millennium Bldg.,20th Fl., Consultant Room 2002-2003, Langsuan Rd., Lumpini, Pathumwan, Bangkok 10330 Tel. +662 651-8010 Fax. +662 651-8011 9. KT ZMICO Co., Ltd. Securities th 287 Liberty Square Bldg.,16 Fl., Silom Rd., Bang Rak, Bangkok 10500 Tel. +662 695-5000 Fax. +662 631-1709 10. Trinity Watthana Pcl. Finance & th 179/111 Bangkok City Tower, 26 Fl., Securities South Sathorn Rd.,Thung Maha Mek, Sathorn, Bangkok 10120 Tel. +662 670-9100, +662 343-9888 Fax. +662 286-7222

Annual Report 2009 Krung Thai Bank Pcl.

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Companies in which Krung Thai Bank holds 10 percent or more of the total shares issued

as at December 31, 2009 (continued)

Name and Address

Type of Business

Manufacturing Industry 11. Kiatpapha Co., Ltd.

Total Shares Issued

No. of Percentage Type Shares of of Invested Shareholding Share

Paints 2 Moo 12, Kingkaew Rd., Bang Phli Yai, Manufacturing Bang Phli, Samut Prakarn 10540 and Distribution Tel. +662 312-4438 -40 Fax. +662 312-4482 12. Alphatec Electronics Pcl. Electronics (Contact office of the Liquidator) Components 889 Thai CC Tower,1st Fl., Manufacturing South Sathorn Rd., Thung Maha Mek, Sathorn, Bangkok 10120 Tel. +662 210-0593

839,000

419,000

49.94

Ordinary

2,642

806

30.51

Ordinary

13. Krung Thai General Business Services Co., Ltd.

1,400,000

1,399,990

100.00

Ordinary

14. Krung Thai Legal Services Co., Ltd. Legal Services

300,000

299,993

100.00

Ordinary

15. Krung Thai Computer Services Co., Ltd. IT Services

13,000,000

12,999,994

100.00

Ordinary

Others

96/12 Soi Ladprao 106 (Boon-Udom 1), Ladprao Rd., Wang Thong Lang, Bangkok 10310 Tel. +662 935-3719 Fax. +662 935-3708

General Services

th

191/50-53 CTI Tower, 19 Fl., Ratchadapisek Rd., Klong Toey, Bangkok 10110 Tel. +662 261-3739 Fax. +662 261-3748 -50

22/1 Sawai Brown 2 Bldg., Soi Sukhumvit 1, Sukhumvit Rd., Klong Toey Nua, Wattana, Bangkok 10110 Tel. +662 251-8199 Fax. +662 251-8198

222


Companies in which Krung Thai Bank holds 10 percent or more of the total shares issued as at December 31, 2009 (continued)

Type of Business

Total Shares Issued

16. Krung Thai Property Development Co., Ltd. (Contact office of the Liquidator)

Property Development

17,000,000

16,999,977

100.00

Ordinary

17. Krungthai Card Pcl.

Credit Card

257,833,407 127,500,000

49.45

Ordinary

Name and Address

96/12 Building 4, Soi Ladprao 106 (Boon-Udom 1), Wang Thonglang, Bangkok 10310 Tel. +662 791-9886 th

591 UBC II Bldg., 14 Fl., Sukhumvit Rd., Klong Ton Nua, Wattana, Bangkok 10110 Tel. +662 665-5100 Fax. +662 261-7695

No. of Percentage Type Shares of of Invested Shareholding Share

18. Metro Designee Co., Ltd.

Special Purpose Vehicle (SPV)

1,000

390

39.00

Ordinary

19. WTA (Thailand) Ltd.

Special Purpose Vehicle (SPV)

1,000

250

25.00

Ordinary

86,909

17.38

Ordinary

189 Rama IX Rd., Huaykwang, Bangkok 10320 313 CP Tower, Silom Rd., Silom, Bangrak, Bangkok 10500 Tel. +662 699-1609 Fax. +662 699-4891

20. National ITMX Co., Ltd.

Interbank 93/1 GPF Witthayu Tower A,17 Fl., Transaction Wireless Rd., Lumpini, Management Pathumwan, Bangkok 10330 Tel. +662 650-6800 Fax. +662 650-6808 th

500,000

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Companies in which Krung Thai Bank holds 10 percent or more of the total shares issued

as at December 31, 2009 (continued)

Name and Address 21. Manager Media Group Pcl.

98/3–10 Phra–Athit Rd., Chana Songkram, Phra Nakorn, Bangkok 10200 Tel. +662 629 -4488 Fax. +662 629 -4469

22. Thanathep Printing Co., Ltd.

Type of Business Publishing

Total Shares Issued

129,354,620 20,814,928

Printing and 100,000 111 Km. 9, Ladprao Rd., Klong Chan, Publishing Bang Kapi, Bangkok 10240 Tel. +662 377-5074 Fax. +662 377-6289 23. Nok Airlines Co., Ltd. Airline 50,000,000 th 183 Rajanakarn Bldg., 17 Fl., South Sathorn Rd., Yannawa, Sathorn, Bangkok 10120 Tel. +662 627-2000 Fax. +662 286-9830 24. Suvarnabhumi Airport Hotel Co., Ltd. Hotel 10,177,800 999 Moo 1 Suvarnabhumi Airport Hotel Bldg., Nongprue, Bang Phli, Samut Prakarn 10540 Tel. +662 131-1042 -4 Fax. +662 131-1189 25. Saraburi New Industrial City Co., Ltd. Industrial Estate 25,000,000 123 Thai Life Insurance Bldg., 21st Fl., Ratchadapisek Rd., Dindang, Bangkok 10400 Tel. +662 247-0247 ext. 2112 +662 246-9487 Fax. +662 246-9819

224

No. of Percentage Type Shares of of Invested Shareholding Share 16.09

Ordinary

10,000

10.00

Ordinary

5,000,000

10.00

Ordinary

1,017,780

10.00

Ordinary

2,500,000

10.00

Ordinary


Executives Directory

as at February 2, 2010

President Mr. Apisak Tantivorawong Office of the President Senior Vice President & Manager Ms. Mayurasiri Pongtaranont Marketing & Corporate Communications Dept. Senior Vice President & Manager Mr. Panya Prahmnee

Internal Audit Group

First Executive Vice President - Managing Director Ms. Pannipa Apichatabutra

Internal Audit Sector

Executive Vice President - Director Ms. Tiparatana Nillkan Head Office Audit Dept. First Vice President & Manager Dr. Teeratorn Wattanakull Corporate Business & Business Center Audit Dept. First Vice President & Manager Ms. Waewduan Charoen Metropolitan Network Audit Dept. Senior Vice President & Manager Mr. Kijjar Onlamai Provincial Network Audit Dept. First Vice President & Manager Mr. Boonchai Rompocapong Credit Review & Audit Dept. Senior Vice President & Manager Mr. Phanchoke Ekarohita Information Technology Audit Dept. Senior Vice President & Manager Mr. Saroj Chantawatchai

Network Group

Senior Executive Vice President - Managing Director Ms. Nongnutch Thienpaitoon Executive Vice President Mr. Kanoksak Soontornkitprapai

Metropolitan Network Sector 1

Executive Vice President - Director Mr. Suphat Intustitayakul

Nana Nua Office Senior Vice President - Acting Manager Mr. Thirapol Isarangkul na Ayudhya

Metropolitan Network Sector 2

Executive Vice President - Director Ms. Lawan Baiyoke

Central Region Network Sector Executive Vice President - Director Ms. Sumalee Suksawang

Eastern Region Network Sector Executive Vice President - Director Mr. Somjit Pongpitakwises

North-Eastern Region Network Sector 1 Senior Vice President - Director Mr. Peerawat Duangkaew

North-Eastern Region Network Sector 2 Executive Vice President - Director Mr. Danai Smanot

Northern Region Network Sector 1 Executive Vice President - Director Mr. Prasit Amporn

Northern Region Network Sector 2 Executive Vice President - Director Mr. Suwat Nestsawat

Southern Region Network Sector 1 Senior Vice President - Director Mr. Rungsan Bumbudsapparok

Southern Region Network Sector 2 Executive Vice President - Director Mr. Voravut Tepkulmanon

Business Center Group

First Executive Vice President - Managing Director Mr. Weidt Nuchjalearn

Annual Report 2009 Krung Thai Bank Pcl.

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SMEs Strategy Dept. First Vice President & Manager Ms. Troungchit Limpabandh

Metropolitan BC Sector

Executive Vice President - Director Mr. Udomsak Rojviboonchai Metropolitan BC Dept. 1 First Vice President & Manager Mr. Suwat Teerasetthamrong Metropolitan BC Dept. 2 Senior Vice President & Manager Mr. Pativate Santavanond Metropolitan BC Dept. 3 First Vice President & Manager Mr. Paichit Sirithummapun

Northern & North-Eastern Region BC Sector Executive Vice President - Director Mr. Prasit Wasupath Northern Region BC Dept. 1 Senior Vice President & Manager Mr. Alongkorn Tasabamroong Northern Region BC Dept. 2 First Vice President & Manager Mr. Songvut Vejaanuruk North-Eastern Region BC Dept. 1 Senior Vice President & Manager Mr. Nuttasak Jeansirisomboon North-Eastern Region BC Dept. 2 Senior Vice President & Manager Mr. Virath Tearakul

Central, Eastern & Southern Region BC Sector Executive Vice President - Director Mr. Verasak Prommas Central Region BC Dept. First Vice President & Manager Mr. Suwat Dendomrongkul Eastern Region BC Dept. First Vice President & Manager Mr. Kittitach Shevakidakarn Southern Region BC Dept. 1 First Vice President & Manager Mr. Apichard Detpreechar Southern Region BC Dept. 2 Senior Vice President & Manager Mr. Korakot Rattanapittayaporn

226

Financial Management Group

Senior Executive Vice President - Managing Director Ms. Kittiya Todhanakasem

Financial Planning Sector

Executive Vice President - Director Mr. Viruch Wongnirund Planning & Budgeting Dept. First Vice President & Manager Ms. Walairat Lertumpornpisal Accounting Dept. Senior Vice President & Manager Mr. Somsak Likitkranchanakul Cashier Dept. First Vice President & Manager Ms. Suvapa Kesungkul Management Information Dept. First Vice President & Acting Manager Ms. Kanjanee Udomchaiporn Credit Monitoring & Customer Information Dept. Senior Vice President & Manager Ms. Kulnaree Kettong

Treasury & Capital Market Sector

Executive Vice President - Director Mr. Tawan Puntawong Asset & Liabilities Management Dept. First Vice President & Manager Mr. Suppawat Wadhanapatee Wealth Management Dept. First Vice President & Manager Mr. Chainarong Eursithichai Treasury Dept. First Vice President & Manager Mr. Panop Svetarundra Capital Markets Dept. First Vice President & Manager Mr. Tawatchai Pramualcharoenkij Equity Investment Dept. Senior Vice President & Manager Mr. Gridsn Nuengsigkapian Financial Institutions & Investor Relations Dept. First Vice President & Manager Mr. Kaival Pongnontakul Overseas Branch Strategy Dept. Senior Vice President & Manager Mr. Somsak Nontaganok


Corporate Banking Group

Senior Executive Vice President - Managing Director Ms. Sompis Charoenkiatikul

Corporate Banking Sector 1

Senior Vice President - Director Mr. Sutthichai Krairit Industrial Finance Dept. 1 Senior Vice President & Manager Ms. Yupa Chanaudomsuk Industrial Finance Dept. 2 First Vice President & Manager Ms. Aungkana Pulsombat Commercial Finance Dept. Senior Vice President & Manager Ms. Boonsri Waitanomsat

Corporate Banking Sector 2

Executive Vice President - Acting Director Ms. Arisara Dharamadhaj Agricultural Finance Dept. First Vice President & Manager Ms. Saranya Ramkiattisak Construction Finance Dept. 1 Senior Vice President & Manager Mr. Jaruk Saengthong Construction Finance Dept. 2 First Vice President & Manager Ms. Roengchit Sujarit

Corporate Banking Sector 3

Executive Vice President - Director Ms. Arisara Dharamadhaj Services Finance Dept. Senior Vice President & Manager Ms. Duangjai Sunthornkarn Project Finance Dept. 1 Senior Vice President & Manager Mr. Werapong Suppasedsak Project Finance Dept. 2 Senior Vice President & Manager Ms. Suthini Visessmit

Government & State Enterprise Relations Group

First Executive Vice President - Managing Director Ms. Sriprabha Pringpong

Government & State Enterprise Strategy Dept. Senior Vice President - Acting Manager Ms. Siriporn Nopwattanapong

Government Relations Sector Senior Vice President - Director Ms. Siriporn Nopwattanapong Government Relations Dept. 1 First Vice President & Manager Ms. Wilaiporn Thiranakanat Government Relations Dept. 2 First Vice President & Manager Ms. Roongtip Singsuwan

State Enterprise Relations Sector

Senior Vice President - Director Mr. Dhanit Laksanaphuk State Enterprise Relations Dept. First Vice President & Manager Mr. Apichat Jaroenruanglert Government Project Management Dept. First Vice President & Manager Mr. Boonchai Sasiwong Community Bank Senior Vice President & Manager Ms. Nisanart Yothasmut

Products & Marketing Management Group

First Executive Vice President - Managing Director Dr. Anuchit Anuchitanukul Marketing Strategy & Management Dept. First Vice President & Manager Mr. Viroj Tritrakoolsin

Products Development Sector

Executive Vice President - Director Ms. Amara Klabprathum Financial & Investment Products Management Dept. Senior Vice President & Manager Mr. Jakkrit Prasatthai Consumer & Housing Loan Products Management Dept. Executive Vice President - Acting Manager Ms. Amara Klabprathum Electronic Banking Products Dept. First Vice President & Manager Ms. Ratana Ratana Annual Report 2009 Krung Thai Bank Pcl.

227


Cash Management Products Dept. First Vice President & Manager Mr. Vachara Kanchanabundhu Card Products Management Dept. First Vice President & Acting Manager Mr. Vachara Kanchanabundhu

Sales Management Sector

Senior Vice President - Director Mr. Boonsun Prasitsumrit Corporate Cash Management Dept. Senior Vice President - Acting Manager Mr. Boonsun Prasitsumrit Consumer Products Sale Management Dept. Senior Vice President & Manager Mr. Tinnakorn Boonyakalin Alternative Channel Dept. First Vice President & Manager Ms. Umaporn Mungklasthieal

Services & After Sales Sector

Senior Vice President - Director Mr. Thirin Taothong Products & Services Implementation Dept. First Vice President & Manager Mr. Prapat Noonpukdee Customer Relationship Management Dept. First Vice President & Manager Mr. Chutichai Chanakorn Product Knowledge & Internal Marketing Dept. First Vice President & Manager Mr. Sermsak Jettananont

Credit Risk Transaction Management Group

First Executive Vice President - Managing Director Mr. Prasert Thiranakanat Credit Committee Administration Dept. Senior Vice President & Manager Mr. Sakdee Cheablam

Business Center CRTM Sector

Executive Vice President - Director Mr. Winit Sangaroon Metropolitan BC CRTM Dept. Senior Vice President & Manager Mr. Santi Parivisutt

228

Northern Region BC CRTM Dept. First Vice President & Manager Ms. Jaturaporn Uttamo North-Eastern Region BC CRTM Dept. First Vice President & Manager Mr. Prasit Thaisomboon Central & Eastern Region BC CRTM Dept. First Vice President & Manager Mr. Prasert Putthisappasit Southern Region BC CRTM Dept. First Vice President & Manager Mr. Kittisap Muttameta

Corporate CRTM Sector

Executive Vice President - Director Ms. Vannee Chareonthong Industrial Business CRTM Dept. Senior Vice President & Manager Ms. Luckana Leelaamornsin Commercial & Service Business CRTM Dept. First Vice President & Acting Manager Ms. Cheerawat Phanpaisal Agricultural Business CRTM Dept. First Vice President & Manager Mr. Siripong Viriyavibulkij Construction Business CRTM Dept. Senior Vice President & Manager Mr. Boonlert Kethirun Project & Finance Institution Financing CRTM Dept. First Vice President & Acting Manager Ms. Rapee Kaewsringam

Asset & Legal Management Group

First Executive Vice President - Managing Director Mr. Assanee Subvanich

Asset Disposition Sector

Executive Vice President - Director Mr. Chairat Buchitratanakhun Asset Disposition Management Dept. First Vice President & Manager Mr. Kamthorn Chavanaves Asset Disposition Administration Dept. First Vice President & Manager Mr. Sujin Nisamaneejarus

Legal Management Sector

Senior Vice President - Director Mr. Ukrit Thanapatpaiboon


Special Cases Dept. First Vice President & Manager Mr. Chinapat Vatayanon Legal Monitoring Dept. 1 First Vice President & Manager Mr. Bunchit Saowan Legal Monitoring Dept. 2 First Vice President & Manager Mr. Kasem Swasdee Legal Management & Loan Collection Expedition Dept. First Vice President & Manager Ms. Poungpetch Vongyimyong

Credit Restructuring Group

First Executive Vice President - Managing Director Mr. Teerapol Pussadet

Credit Restructuring Sector 1 Senior Vice President - Director Mr. Weerachai Supaviratbuncha Credit Restructuring Dept. 1 Senior Vice President & Manager Ms. Aorratip Vanichkij Credit Restructuring Dept. 2 Senior Vice President & Manager Mr. Samart Noosuetrong Credit Restructuring Dept. 3 First Vice President & Manager Mr. Suwat Buranasajja Credit Restructuring Dept. 4 First Vice President & Manager Mr. Choochart Vivatdejakul

Credit Restructuring Sector 2

Senior Vice President - Director Ms. Taypee Srisukh Credit Restructuring Dept. 5 Senior Vice President & Manager Mr. Wisit Treesuvanna Credit Restructuring Dept. 6 First Vice President & Acting Manager Ms. Nongluk Chantarasombat Credit Restructuring Dept. 7 - Credit Restructuring Dept. 8 -

Operation Group

First Senior Executive Vice President - Managing Director Dr. Pongsathorn Siriyodhin Operation Process Development Dept. Senior Vice President & Manager Mr. Thamrongsak Leunanonchai

Banking Operation Sector

Executive Vice President - Director Ms. Suwannee Sukhavachana Branch Support Dept. Senior Vice President & Manager Ms. Natharee Sakriganon Cash Management Dept. First Vice President & Manager Mr. Wisun Supasombatolarn Electronic Channel Support Dept. Senior Vice President & Manager Acting Sub Lt. Pairoj Deeruksa

International Business Operation Sector

Executive Vice President - Director Mr. Pichai Kojamitr International Payment & Settlement Operation Dept. First Vice President & Acting Manager Ms. Rasmee Uboldejpracharak Foreign Exchange Business Dept. First Vice President & Manager Acting Lt. Surat Naweera International Trade Services Dept. First Vice President & Manager Mr. Chainarong Nisamaneewong

Credit Operation Sector

Senior Vice President - Director Mr. Kasem Paeyai Credit Operation Dept. First Vice President & Manager Ms. Wirisara Taptimtong Credit Agreement Operation Dept. First Vice President & Manager Mr. Kittiroj Pakdeevong Collateral Function Dept. First Vice President & Manager Mr. Visit Paisanvorajit

Annual Report 2009 Krung Thai Bank Pcl.

229


Electronic Document Operation Dept. Senior Vice President & Manager Ms. Rungluk Darunaithorn

Premises & Facilities Management Sector Executive Vice President - Director Mr. Wiwat Engsuwan Procurement Dept. First Vice President & Manager Mr. Exkaracha Ruangchainun General Services & Security Dept. First Vice President & Manager Mr. Jintawat Jangsri Premises & Property Management Dept. First Vice President & Manager Mr. Tasporn Klincharoen

Human Resources & Corporate Government Group Senior Executive Vice President - Managing Director Ms. Sumana Vonggapan

Human Resources & Organization Management Sector Executive Vice President - Director Mr. Suthee Tripornchaisak Human Resources Management Dept. Senior Vice President & Manager Ms. Malinee Bodhisundara Human Resources Development Dept. Senior Vice President & Manager Ms. Penjantra Teanpramuk Organization Development Dept. First Vice President & Manager Ms. Sasithron Singkanvanit

Corporate Governance & Welfare Sector

Executive Vice President - Director Mr. Chaianun Siravanichkarn Corporate Governance Welfare & Discipline Dept. Senior Vice President & Manager Mr. Adisorn Anutarapong Medical Dept. Senior Vice President & Manager Captain Khakkanant Kiratisountorn

230

Intellectual Capital & Social Responsibility Dept. Senior Vice President & Manager Mr. Phisek Phonakorn

Risk Management & Compliance Group

First Executive Vice President - Managing Director Ms. Patcharasiri Kiatkumjai

Risk Management Sector

Senior Vice President - Director Mr. Poonpat Sripleng Market Risk Management Dept. First Vice President & Manager Mr. Chuchird Wannatong Credit Risk Management Dept. Senior Vice President - Acting Manager Mr. Poonpat Sripleng Operation Risk Management Dept. First Vice President & Manager Mr. Chaovalit Thongsukmak Enterprise Risk Management Dept. First Vice President & Manager Mr. Songpol Tangkijthavorn Business Research Dept. First Vice President & Manager Ms. Benjamas Khajornkham

Compliance & Procedures Sector

Executive Vice President - Director Ms. Wallaya Kaewrungruang Office of the Board of Directors & shareholders Senior Vice President & Manager Mr. Suchart Dejittirut Compliance Dept. Senior Vice President & Manager Ms. Roongjit Punnahitananda Procedures & Regulation Dept. First Vice President & Manager Mr. Thanawat Pattamuk First Vice President & Manager Mr. Witoon Kantaapa Legal Consultant Dept. Executive Vice President - Acting Manager Ms. Wallaya Kaewrungruang


Banking Network

Domestic Branches: 886 Branches as at January 31, 2010

Working hours: Mon.-Fri. 8.30-16.30 hrs. (except specific branches indicated in the bracket)

Branch Name

Telephone

Bangkok (224 Branches)

Fax.

Asok +662 664-1600-5 +662 260-1365 Asok-Dindaeng Road +662 246-0735-7 +662 248-0134 Baiyoke Center* +662 251-7237-8 +662 251-7239 (Mon-Sun 10.00-19.00 hrs.) BAM* +662 236-6223-4 +662 236-6225 Bang Bon +662 416-0090-3 +662 416-0094 Bang Chan +662 517-1223-5 +662 517-1444 Bang Khun Non +662 435-1893-5 +662 435-8006 Bang Khun Thian +662 416-3015-6, 3315 +662 415-3015 Bang Plad +662 424-3678, 9028 +662 424-9313 Bangkok Airport* +662 535-2468 +662 535-2445 Bangkok Bus Terminal +662 537-9097-8 +662 537-9075 (Chatuchak)* (Mon-Sun 9.00-18.00 hrs.) Bangkok Bus Terminal +662 894-6015-6 +662 894-6017 (Thanon Borommaratchachonnani)* (Mon-Sun 10.00-19.00 hrs.) Bangkok Metropolitan +662 226-3879 +662 226-3879 Administration* Bangkok Metropolitan +662 245-5174-5 +662 245-5176 Administration 2* Banglampu +662 281-6121, +662 281-6120 +662 282-8436 Bangpo +662 585-3562-3 +662 585-3564 Bangyikhan +662 434-4895, 7157 +662 435-3681 Big C Bangna +662 398-5175-6 +662 398-5177 (Mon-Sun 10.00-20.00 hrs.) Big C Sukhaphiban 3 +662 540-4958-9 +662 540-4960 (Mon-Sun 10.00-19.00 hrs.) Bobae* +662 280-6255-6 +662 280-6257 (Mon-Sun 8.30-16.30 hrs.) Carrefour Bangpakok +662 428-7713-4 +662 428-7715 (Mon-Sun 10.30-19.30 hrs.) Carrefour Phetkasem* +662 421-2941-2 +662 421-2943 (Mon-Sun 10.30-19.30 hrs.) Carrefour Rama 4 +662 258-9300-1 +662 258-9302 (Mon-Sun 10.30-19.30 hrs.) CAT Bang Rak +662 233-6149-50 +662 233-6151 Central Bangna Tower +662 361-0993 -4 +662 361-0995 (Mon-Sun 11.00-19.00 hrs.) Central Ladprao* +662 541-1637 +662 541-1639 (Mon-Sun 11.00-19.00 hrs.) Central Pinklao +662 884-9000-7 +662 884-9011 (Mon-Fri 8.30-20.00 hrs. Sat-Sun 10.00-20.00 hrs.) Central Plaza +662 193-8106-7 +662 193-8108 Chaengwattana (Mon-Sun 11.00-19.00 hrs.) Central Power Center Huamark* +662 718-7641,7643 +662 718-7722 (Mon-Sun 10.30-19.30 hrs.) Central Rama 3* +662 673-7112 +662 673-7113 (Mon-Sun 11.00-20.00 hrs.) Central World Plaza* +662 646-1062-3 +662 646-1064 (Mon-Sun 11.00-19.00 hrs.) Century* +662 245-7358 +662 245-7359 (Mon-Sun 11.00-19.00 hrs.)

Branch Name

Telephone

Fax.

Chaeng Wattana +662 574-4197-8 +662 574-5778 Chamchuri Square +662 160-5121-5, +662 160-5129 (Mon-Sun 10.00-19.00 hrs.) 5127-8 Chan Road +662 213-2233, +662 287-1738 +662 286-2095-7 Charansanitwongse 13 +662 411-1288-90 +662 411-4027 Charoen Krung Pracharak +662 291-8041-2 +662 291-8855 Hospital Charoen Nakhon Road +662 438-9551-3 +662 438-7600 Chatuchak Market 2 (Minburi)* +662 540-7931-2 +662 540-7933 (Wed-Sun 11.00-19.00 hrs.) Chokchai 4 Soi 22 +662 530-2571, 3616 +662 530-2572 Communication Authority +662 506-4024-5 +662 574-2937 of Thailand* Criminal Court* +662 541-2870-1 +662 541-2872 Department of Industrial Works +662 354-4334-5 +662 354-4336 Dindaeng +662 692-6351-3, +662 692-6350 6373-5 Ekamai +662 381-4052-4, +662 391-2950 +662 390-1921 Energy Complex +662 537-0363-4 +662 537-0365 Esplanade Ratchada +662 354-2058-9 +662 354-2074 (Mon-Sun 11.00-19.00 hrs.) Exchange Tower +662 261-5274 +662 260-3047 (Siyaek Asok)* (Mon-Fri 10.30-20.00 hrs. Sat-Sun 10.30-16.30 hrs.) Exim Building* +662 278-1786-7 +662 278-1785 Fashion Island* +662 947-5236-7 +662 947-5238 (Mon-Sun 11.00-19.00 hrs.) Fortune Town* +662 641-1081 +662 641-1083 (Mon-Sun 11.00-19.00 hrs.) Government House* +662 282-0275, 0478 +662 282-0472 Government Pharmaceutical +662 354-8892-3 +662 354-8890 Organization* Happyland Road +662 375-6058, 6513, +662 375-6849 6653 Hi Mall Bangkrabue* +662 636-9784-5 +662 636-9782 (Mon-Sun 11.00-19.00 hrs.) Hua Takhe (Lad Krabang) +662 326-6243-4 +662 326-6243 IT Square Laksi* +662 576-0527-8 +662 576-0528 (Mon-Sun 11.00-19.00 hrs.) Kao San Road +662 281-1987, 2301, +662 282-8506 (Mon-Fri 9.30-17.30 hrs.) 3345, +662 282-8507-8 Kasetsart University +662 579-9810-11 +662 579-9808 Bang Khen King Mongkut’s Institute of +662 326-4700-1 +662 326-4702 Technology Ladkrabang* Klang Hospital +662 224-9938-9 +662 224-9921 Krasruang Sueksathikan +662 282-3132, 5457 +662 282-5458 Krungdeb Co-Operative +662 391-9861-3 +662 391-9860 Store Ltd. (Ekamai) (Mon-Sun 10.00-19.00 hrs.) Krungkasem +662 223-2431-2, +662 223-2430 +662 225-9697-8 Lad Krabang Industrial Estate +662 326-0545-6 +662 326-0547 Ladplakhao 41 +662 570-7020, 7116-7 +662 570-7223

Note: * Sub-Branch

Annual Report 2009 Krung Thai Bank Pcl.

231


Branch Name

Telephone

Ladprao 33 +662 511-2739, 3316, +662 512-1326, 1879, +662 513-9430 Ladprao 71* +662 538-4041, 4102 Ladprao 102 +662 530-4092, 4243, 4885 Ladprao 130/1 +662 731-3123-4 Lak Si +662 522-7690-1 Mahanak +662 225-5611-4 Major Hollywood +662 369-1466 -7 Ramkhamhaeng* (Mon-Sun 11.00-19.00 hrs.) Makro Charan Sanitwong +662 411-3657-8 (Mon-Sun 10.00-20.00 hrs.) Marketing Organization for +662 270-0260-3 Farmers (Chatuchak) (Mon-Fri 8.30-16.30 hrs. Sat-Sun 9.00-17.00 hrs.) MBK Center* +662 686-3945-6 (Mon-Fri 11.00-19.00 hrs. Sat-Sun 8.00-16.30 hrs.) Meenburi +662 918-8880-4 Metropolitan Waterworks* +662 503-9474 Ministry of Defence +662 223-6122-3 Ministry of Finance* +662 273-9665 -6 Ministry of Labour* +662 247-7763, 8030 N Mark Plaza* +662 375-4220 -1 (Mon-Sun 11.00-19.00 hrs.) Nananua Office +662 208-4230-2, 4254-5 Nanglingee Road +662 213-2181-2, +662 678-8411-3 National Assembly* +662 243-6107, +662 244-1479, +662 282-6911 National Housing Authority +662 374-1450, 1466 Nawamin Road +662 375-2844-6 New Phetchaburi Road +662 314-5580-7 Nongchok* +662 548-3241-2 OIC. (Ratchadaphisek Road) +662 513-8280-1 On Nuch +662 322-8932-4 P.S.Tower (Asoke) +662 258-8128-31 Pakklong Talad +662 226-6350-2 Panya Village Ramindra +662 508-7390-1 (Mon-Sun10.00-19.30 hrs.) Paradise Park +662 746-0907-9 (Mon-Sun 10.00-19.00 hrs.) Pathum Wan +662 215-0050-4 Petroleum Authority +662 537-8006-9 Phahonyothin 39 +662 561-1725-6, 3458, +662 562-0217 Phatthanakarn 17 +662 319-3910-1, 7881 Phatthanakarn 65 +662 322-8549-51 Phetkasem 29 +662 458-0778-9 (Phasi Charoen) Phetkasem 39 +662 454-8085-7 Phetkasem 65/1 +662 421-9753-5 (Bangkhaenua) Phetkasem 77/2 +662 444-2783-5 (Nong Khaem) Phetkasem 81* +662 487-5760-1

Fax.

Branch Name

+662 513-9432 +662 538-4130 +662 530-6252 +662 375-6647 +662 522-7692 +662 225-5615 +662 369-1468 +662 411-3659

+662 270-0794

+662 686-3947

+662 918-8885 +662 503-9930 +662 223-6124 +662 273-9955 +662 247-8072 +662 375-6518

+662 256-8425, 8696 +662 678-8414 +662 280-3682 +662 374-1670 +662 375-1154 +662 314-5588 +662 548-3243 +662 513-8250 +662 322-8933 +662 258-8132 +662 221-7552 +662 508-7392

+662 746-0620 +662 215-7717 +662 936-2471 +662 561-1724 +662 319-7958 +662 322-8552 +662 467-5456

+662 454-8084 +662 421-0372 +662 444-2786 +662 487-5762

Telephone

Fax.

Phetkasem 84 (Bangkae) +662 454-2100-1, +662 455-2048 Phutthamonthon Sai 4 +662 420-5023-4 (Mon-Sun 10.00-18.00 hrs.) Ploenchit Metropolitan +662 251-9114-6 Electricity Port Authority of Thailand* +662 350-2389-90 Prachaniwet +662 591-1742 Pracharaj Road +662 911-3105-8 Prachautis Road (Toongkru)* +662 428-8813-4 Prachautit +662 934-7416, 7418-20 Pradipat 13 +662 618-4855-62 Pradipat 16 +662 278-1612-3 Prakanong +662 391-1961, +662 392-9173 Prannok +662 411-5590-2 Praram 2 Road +662 468-4959, +662 877-0450-1 Praram 3 - Soi 7 +662 291-0756-7 Pratunam +662 252-9472-3, +662 253-4192 Pratunam Center* +662 250-6326-7 (Mon-Sun 10.00-18.00 hrs.) Provincial Electricity Authority* +662 591-6314 PTT. Raminthra km.3* +662 522-6156-7 (Mon-Sun 10.00-18.00 hrs.) Q.House Lumpini* +662 343-8828-9 (Mon-Fri 10.30-18.30 hrs.) Queen Sirikit National +662 229-4235-9 Convention Center Rachadapisek-Huaikhwang +662 276-0096-100 Rajadamnoen +662 281-6950-2 Rajathevi +662 215-8080-3 Rajawongse +662 222-2171-8 Rajchawat* +662 241-4204 -6 Rama 4 Road +662 249-3178, 3184, 3316 Rama 9 Soi 13 +662 717-0121-3 Ramindra Km.2 +662 521-1980, +662 552-6030, +662 971-6167-70 Raminthra Km.4 +662 510-6630-1 Raminthra Km.10 +662 518-1112-5 Ramkhamhaeng 65 +662 318-6130-1 (FBT Building)* (Mon-Sun 11.00-19.00 hrs.) Revenue Department* +662 617-2566-7 Saint Louis Soi 3 +662 212-3379, 5702 Sampeng +662 221-8666-7 Samyod +662 222-1171-4 Sanphawut +662 361-1765-8 Saphan Kasatsuek +662 214-4147, 4846, +662 215-3127 Saphan Khao +662 282-2463-4, 5007-8 Saphanmai +662 551-0545-7, +662 972-5792-3 Sathorn Road +662 670-1700-4

+662 454-2102 +662 420-5025 +662 255-2989 +662 350-2391 +662 591-3947 +662 585-4010 +662 428-8815 +662 934-7417 +662 270-0056 +662 279-6395 +662 390-0150 +662 411-5593 +662 468-6344 +662 291-0758 +662 255-1008 +662 250-6328

+662 591-3141 +662 522-6158 +662 343-8830 +662 229-4234 +662 276-0101 +662 281-1841 +662 215-8084 +662 222-9881 +662 241-4206 +662 249-3350 +662 717-0125 +662 552-6029

+662 509-0386 +662 517-5375 +662 318-6121 +662 617-2568 +662 212-7981 +662 221-0375 +662 225-9276, +662 226-1372 +662 361-1769 +662 214-1826 +662 282-0786 +662 521-1300 +662 670-1705

Note: * Sub-Branch

232


Branch Name

Telephone

Fax.

Branch Name

Sathupradit Sermmit Tower Si Ayutthaya Road Si Nakarin Si Nakarin Km.9 Siam Square Silom Siyaek Arun Amrin Siyaek Bankhaek Siyaek Praya Sri Siyaek Rajawongse Siyaek Saphan Krungthon Soi Arlee Sriyan Srong Prapa* State Tower* Suanmali Suanplu* Sukhaphiban 2 Sukhaphiban 3 Road Sukhumvit 22* Sukhumvit 49 Sukhumvit 64 Sukhumvit 71 Sukhumvit 77* Sukhumvit 93 Surawongse Sutthisanwinitchai Taksin Road Talad Huai Khwang Talad Noi Talad Plu Talad Wongsakorn* (Mon-Fri 10.00-18.00 hrs.) Tanam Rajawongse Tanon Fuangnakhon Tanon Kanchana Phisek (Bangwaek)* Tanon Mahachai

+662 295-4921-3 +662 260-2697-8 +662 246-7774-9, +662 247-9256-8 +662 379-3241-2 +662 721-8010-3 +662 251-1476, +662 252-1479, 4070, 7291 +662 233-2383-4, +662 235-8153-4 +662 433-0619, +662 435-3508, 3510 +662 465-7048, +662 466-1650 +662 221-8570, +662 222-2206, 3670 +662 221-1193-4, +662 222-2580 +662 423-0530-1 +662 271-2570-3, 2575-6 +662 243-3738-40 +662 566-4388 +662 630-5918-9 +662 223-7718, 7721, 7731, 7774, +662 621-6500-4 +662 286-2626, +662 287-1252, 1587 +662 375-1653, 1836, 1954 +662 728-5523-6 +662 663-7001-2 +662 258-0624, +662 261-6480-1 +662 311-4706, 4710, 6069 +662 381-2603-5 +662 333-0440 +662 311-4216, 4514, +662 332-5219-21 +662 233-0953, 4977, +662 234-7837-8 +662 276-9351-3 +662 438-0023-4 +662 275-2306, 2385, 2554, +662 278-2518 +662 236-4866-7 +662 466-2464, 7342, 9395, +662 472-7019 +662 533-3279, 3379 +662 221-1284, 4624, 8368, +662 222-1584 +662 221-1832 +662 449-6013-4

+662 295-4924 +662 260-2698 +662 246-2855 +662 379-3243 +662 721-8014 +662 254-8686

+662 225-9708 +662 224-3996 +662 449-6015

+662 222-9444

+662 225-3965

+662 231-5695, +662 237-5920 +662 433-0620 +662 466-1989 +662 222-9252 +662 222-6368 +662 435-0423 +662 271-2579 +662 243-2863 +662 566-4472 +662 630-5917 +662 223-7759, +662 621-6570 +662 287-1489 +662 375-1644 +662 729-5424 +662 663-7003 +662 258-0511 +662 331-6067 +662 381-2602 +662 311-6701 +662 331-6667 +662 237-6596 +662 276-9354 +662 438-2625 +662 275-2503 +662 233-8875 +662 466-7345 +662 533-3243

Telephone

Fax.

Tao Poon +662 585-1312, 2198 +662 585-8075 Tesco Lotus @ Park +662 399-1520-1 +662 399-1519 (Sukhumvit 101/1) (Mon-Sun 10.00-19.00 hrs.) Tesco Lotus Bangkae +662 454-9613-4 +662 454-9645 (Mon-Sun 10.30-19.30 hrs.) Tesco Lotus Pinklao* +662 433-8884-5 +662 433-8886 (Mon-Sun 10.00-20.00 hrs.) Tesco Lotus Si Nakarin +662 759-9267-8 +662 759-9269 (Mon-Sun 10.00-20.00 hrs.) Tha Tien +662 222-0198-9 +662 221-8483 Thadindaeng +662 437-2979 +662 437-4491 Thai Airways International* +662 512-2009, +662 512-2154 +662 545-0121 ext.2069 Thailand Post +662 573-8748-9 +662 573-8750 Thanon Kheha Romklao* +662 557-0626, 0643 +662 557-0676 Thanon Ramkhamhaeng 2 +662 316-7493-4 +662 316-7495 (Bangna-Trad)* Thanon Romklao +662 909-8266-7 +662 909-8268 (Moo Baan Preecha)* Thanon Suksawat +662 468-6860-1, +662 468-5255 +662 476-3824, 4027 Thanon Watcharaphol* +662 519-8500, 8604 +662 519-8639 Thanonnawamin 161 +662 509-5402-3 +662 509-4791 (Sahafarms)* (Mon-Sun 10.00-18.00 hrs.) Thapra +662 457-8208-9, +662 457-2344 +662 467-4224, 4292, +662 868-2330-1 The Customs Department +662 249-9310-2 +662 249-9313 The Government Complex +662 143-8966-8 +662 143-8969 Commemorating Chaengwattana (Building A) The Government Complex +662 143-8961-4 +662 143-8965 Commemorating Chaengwattana (Building B) The Mall Bangkae* +662 454-9201-2 +662 454-9203 (Mon-Sun 10.30-20.00 hrs.) The Mall Bangkapi* +662 363-3476-7 +662 363-3478 (Mon-Sun 10.30-20.00 hrs.) The Mall Thapra* +662 477-7300-1 +662 477-7307 (Mon-Fri 8.30-18.30 hrs. Sat 10.00-18.30 hrs. Sun 9.30-17.30 hrs.) The Paseo (Lad Krabang) +662 346-4195-6 +662 346-4197 (Mon-Sun 10.00-19.00 hrs.) Thewet +662 281-1332, 1570 +662 281-1127 Thonburi-Paktho +662 428-6362-3 +662 427-6550 Thong Lo +662 381-3508, 3867 +662 381-3868 TOT (Cheang Wattana)* +662 574-9410 +662 574-9412 Tourism Authority of Thailand* +662 250-1504 +662 250-1503 Udomsuk +662 399-1168-9, 1351 +662 399-1375 Union Mall Ladprao +662 511-4330, 4336 +662 511-4295 (Mon-Sun 11.00-19.00 hrs.) Victory Memorial +662 298-0016-20 +662 298-0884 Viphavadi-Rangsit 2 +662 275-3530-1 (Horkarnkathai) (Mon-Fri 9.30-17.30 hrs.) Viphavadi-Rangsit 5 +662 272-2214-5, +662 272-2386 2241-2, 2484 Vorachak +662 221-4578, +662 221-5878 +662 223-2311, 2496, +662 225-2395

Note: * Sub-Branch

Annual Report 2009 Krung Thai Bank Pcl.

233


Branch Name

Telephone

Wannasorn Building* +662 306-0878-80 (Mon-Fri 11.00-19.00 hrs. Sat-Sun 8.00-16.30 hrs.) Wisut Kasat Road +662 281-7476, 7483 Wong Sawang +662 913-2347-9 Wongsawang Town Center* +662 913-9716-9 (Mon-Sun 10.30-19.30 hrs.) Yan Nawa +662 211-0156, 3300, +662 213-0300-1 Yaowaraj +662 222-0131-45 Yingcharoen Market* +662 521-1494-5 (Mon-Sun 8.30-18.30 hrs.) Zuellig House +662 235-6292-3 (Mon-Fri 8.30-19.00 hrs. Sat 8.30-15.30 hrs.)

Fax. +662 306-0881

+662 280-1874 +662 913-2346 +662 913-9720

+662 211-9989 +662 225-9275 +662 521-1496 +662 235-6294

Bangkok Vicinity (92 Branches)

Nakhon Pathom (16 Branches) Bang Len +6634 391-032-3 Big C Nakhonphathom* +6634 251-755 (Mon-Sun 10.00-19.00 hrs.) Kamphaeng Saen +6634 351-434-6 Mahidol University Salaya +662 441-5497-8 Nakhon Chaisi +6634 331-113-6 Nakhon Pathom +6634 250-770-2 Om Yai +662 420-4980-1, 5183 Phrapratone +6634 293-052-3 Phutthamonthon Sai 5* +662 420-8771-3 Prapatomjedee +6634 254-297-8 Salaya +662 441-4451-2 Sam Phran +6634 322-900-2 Siyaek Sanamchan +6634 254-533-5 Tesco Lotus Nakhon Chaisri* +6634 339-456 (Mon-Sun 10.00-20.00 hrs.) Tesco Lotus Nakhon Pathom* +6634 259-751-2 (Mon-Sun 10.00-20.00 hrs.) Tesco Lotus Salaya* +662 482-2130-1 (Mon-Sun 10.00-20.00 hrs.) Nonthaburi (23 Branches) Bang Bua Thong +662 571-7668-9, +662 924-1031-3 Bang Kruai +662 447-0652-4 Bangkruai Electricity +662 434-8308, Generating* +662 436-1590-1 Center Point (Bang Yai)* +662 594-0507-9 (Mon-Sun 10.00-19.00 hrs.) Central Plaza Rattanathibet* +662 526-0336-7 (Mon-Sun 10.00-19.00 hrs.) Homepro Ratchaphruek +662 422-2449-50 (Mon-Sun 11.00-19.00 hrs.) Ministry of Commerce* +662 547-5941-2 Ministry of Public Health +662 580-7000 Tiwanon* Muang Thong Thani +662 503-4893-4 Ngamwongwan +662 580-1594, +662 591-6180-1 Nonthaburi +662 525-0421, 0447, +662 527-1037, 1148 Office of Civil Service +662 525-4727-8 Comission*

Branch Name

+6634 391-034 +6634 251-780

+6634 351-632 +662 441-5499 +6634 332-163 +6634 253-956 +662 420-4983 +6634 395-052 +662 420-8773 +6634 254-237 +662 441-4450 +6634 323-155 +6634 254-240 +6634 339-576

+6634 259-753 +662 482-2132 +662 571-7667 +662 447-1554 +662 433-4663 +662 594-0506 +662 526-0338 +662 422-2451 +662 547-5943 +662 580-9435 +662 503-4899 +662 589-8855 +662 525-0857 +662 525-4729

Telephone

Fax.

Pak Kret +662 583-8616-7, +662 584-3157-8 Ratanathibet +662 591-3598, 8363 Software Park Building* +662 584-1319 Suan Yai +662 525-0683, 0913, (Tanam Nonthaburi) 0957 Ta Nam Pakkret* +662 584-0669, 1032 Talad Klang Bangyai +662 595-0596, (Mon-Sun 10.00-18.00 hrs.) 0703-4 Talad Ruamjai +662 503-3927-8 (Muang Thong Thani)* (Mon-Fri 10.30-18.30 hrs.) Talad Tha It +662 595-8513-4 Tanon Kanchana Phisek +662 443-6682-3 (Bangyai) The Mall Ngamwongwan* +662 550-1226-7 (Mon-Sun 10.30-20.00 hrs.) Tiwanon 3 +662 591-5525-7, 8228 Pathum Thani (21 Branches) Amphoe Sam Khok +662 593-1381-3 Big C Lum Luk Ka (Klong 5) +662 152-7671-2 (Mon-Sun 11.00-19.00 hrs.) Big C Rungsit Klong 6* +662 577-4150-1 (Mon-Sun 10.30-19.30 hrs.) Future Park Rangsit +662 567-3607, 4498 (Mon-Sun 11.00-19.00 hrs.) Lat Lum Kaew +662 194-5564-5 (Yak Noppawong) Navanakorn Industrial* +662 529-6333-4 (Mon-Sun 9.30-18.30 hrs.) Pathum Thani +662 581-2245-6, 6228, 6490, 6675 Phithaksanti +662 581-6331-3 (Talad Pathum Thani) Poonsap Market +662 581-4260-1 (Mon-Sun 10.00-19.00 hrs.) Rung Sit +662 567-1001-5 Rungsit-Nakhonnayok Klong 3 +662 569-6933, 6973 Rungsit-Nakhonnayok Klong 4 +662 990-9939-42 Rungsit-Nakhonnayok Klong 6* +662 577-5827, 5853 Rungsit-Nakhonnayok +662 546-1239-40 Klong 10* Talad Simummueng +662 531-5111-3 Talad Tai +662 529-2022, 4206-7 Tesco Lotus Lam Luk Ka +662 191-1577-8 (Klong2) (Mon-Sun 10.30-19.30 hrs.) Tesco Lotus Navanakorn* +662 529-2883-4 (Mon-Sun 10.30-19.30 hrs.) Thamasat University +662 564-3377 Rangsit Center* Valayaalongkorn Rajabhat +662 520-3140, 3196 University Zeer Rangsit* +662 992-6373-4 (Mon-Sun 11.00-19.00 hrs.) Samut Prakarn (24 Branches) Airport Operating Building* +662 134-1923-4 Bang Bo* +662 708-5504 Bang Kru +662 462-7860-2

+662 583-8618 +662 591-3599 +662 584-1039 +662 525-1139 +662 584-1258 +662 595-0719 +662 503-3929 +662 595-8098 +662 443-6684 +662 550-0789 +662 580-2254 +662 593-1380 +662 152-7673 +662 577-4240 +662 567-5019 +662 194-5563 +662 529-6335 +662 581-1465 +662 581-4055 +662 581-4362 +662 531-3450 +662 569-7466 +662 533-1543 +662 577-5933 +662 546-1241 +662 531-7245 +662 529-4786 +662 191-1579 +662 529-5172 +662 564-3378 +662 520-3188 +662 992-6375 +662 134-1925 +662 708-5505 +662 817-8819

Note: * Sub-Branch

234


Branch Name

Telephone

Bang Phli +662 316-1935-6 Bang Poo +662 395-3047, 4599, +662 703-8093-4 Big C Bangphli* +662 312-2732 (Mon-Sun 10.00-20.00 hrs.) Big C Samutprakan* +662 395-4190 (Mon-Sun 10.00-20.00 hrs.) Carrefour Samrong* +662 380-2657-8 (Mon-Sun 10.00-20.00 hrs.) Free Zone Building +662 134-1929-30 Suvarnabhumi Airport* Mueang Mai Bang Phli +662 315-2284-5 Operation Center Thai +662 134-1920-1 Airways International Public Company Limited* Pak Nam +662 387-0704, 2564, +662 389-0993-7 Phra Pradaeng +662 462-5000, 7988, +662 463-3722, +662 464-1457-8 Puchao Saming Phrai Road +662 384-2757-9, 7320 Samrong +662 384-4974, (Mon-Fri 8.30-16.30 hrs. +662 394-1157 Sat-Sun 10.00-18.00 hrs.) Samut Prakan +662 389-1161 Si Nakarin Km.14 +662 385-8167 Srisamut Road +662 175-8894, +662 387-1003, +662 389-5970, +662 395-1564, +662 702-8207 Talad Nhamdaeng +662 385-1205-6 Tepharak +662 394-4750, 6839-40 Tesco Lotus Bang Phli* +662 325-1087-8 (Mon-Sun 10.00-20.00 hrs.) Tesco Lotus Bangpoo* +662 710-9067-8 (Mon-Sun 10.00-20.00 hrs.) Thanon Phraeksa +662 382-6712-13 Transportation Center +662 134-1926-7 Suvarnabhumi Airport* Samut Sakorn (8 Branches) Ban Pheo +6634 481-173, +6634 850-684 Krathum Baen +6634 471-926-7, +6634 846-713 Krok Krak* +6634 425-184-5 Phetkasem 91(Om Noi) +662 420-5454-5 Pho Chae* +6634 491-481-2 Samut Sakhon +6634 411-186, 788, +6634 421-601, +6634 424-795, +6634 425-170, +6634 428-180 Talad Mahachai +6634 810-257-8 (Mon-Fri 8.30-16.30 hrs. Sat-Sun 9.00-15.00 hrs.) Thanon Settakit 1 +6634 448-154-5

Fax.

Branch Name

+662 316-1938 +662 395-3048 +662 312-2733 +662 395-4191 +662 380-2659 +662 134-1931 +662 315-2286 +662 134-1922 +662 387-0705 +662 463-3721 +662 394-0955 +662 384-4448 +662 387-1182 +662 385-8292 +662 387-1002

+662 385-1207 +662 394-0720 +662 325-1088 +662 710-9069 +662 382-6714 +662 134-1928 +6634 481-364 +6634 471-928 +6634 425-176 +662 420-5456 +6634 491-483 +6634 421-600

+6634 427-702

+6634 448-156

Telephone

Central Region (86 Branches)

Ang Thong (4 Branches) Ang Thong +6635 611-720-1 (Mon-Fri 8.30-16.30 hrs. Sat-Sun 9.00-15.00 hrs.) Pa Mok +6635 661-329, 429 Pho Thong +6635 691-352-3 Wisetchaichan +6635 631-740-1 Chainat (3 Branches) Chai Nat +6656 412-406-7 (Mon-Fri 8.30-16.30 hrs. Sat-Sun 9.00-1500 hrs.) Hankha +6656 451-099-101 Sankha Buri +6656 481-061-2 Kanchanaburi (8 Branches) Bophloi +6634 628-492-4 Kanchanaburi +6634 512-289-90 Saengchuto Road +6634 511-292 Sai Yok +6634 634-263 Talad Phasuk Kanchanaburi* +6634 515-934-5 (Mon-Sun 09.00-19.00 hrs.) Tha Maka +6634 543-310, 312, +6634 640-682 Tha Muang +6634 611-441, 1891 Thong Pha Phum +6634 599-065-6, 537-8 Lop Buri (10 Branches) Ban Mi +6636 471-239 Khao Phra Ngam +6636 486-615 Khok Samrong +6636 441-239, 723 Lamnarai +6636 461-044, +6636 630-797-8 Lop Buri +6636 411-204-5 Phatthananikhom +6636 639-313-4 Tesco Lotus Lop Buri Inn Plaza* +6636 446-150-1 (Mon-Sun 10.00-20.00 hrs.) Tha Wung +6636 622-039 Vichayen Road +6636 617-953-4 Wong Wien Srakaew +6636 413-678, +6636 420-082 Pha Nakorn Si Ayutthaya (12 Branches) Ayutthaya +6635 211-483-4 Ayutthayapark Shopping +6635 345-280, 636, Complex 830, +6635 346-051 (Mon-Sun 10.00-19.00 hrs.) Bang Pa-In +6635 221-025-7 Big C Ayutthaya* +6635 747-150-1 (Mon-Sun 10.00-19.00 hrs.) Phachi +6635 311-089 Phak Hai +6635 391-458-9 Pratunam Phra In +6635 361-334-6 Rojana +6635 243-289, 389, 489, 829 Rojana Industrial Park +6635 706-301-2 Sena +6635 201-289, +6635 217-169-70, +6635 217-168-70

Fax. +6635 611-665 +6635 661-323 +6635 691-351 +6635 631-742 +6656 411-107 +6656 451-269 +6656 481-006 +6634 628-495 +6634 514-518 +6634 516-768 +6634 634-266 +6634 515-936

+6634 543-311 +6634 611-890 +6634 599-100 +6636 471-360 +6636 486-651 +6636 441-160 +6636 461-043 +6636 420-955 +6636 491-506 +6636 446-152 +6636 622-040 +6636 618-836 +6636 413-723 +6635 241-266 +6635 346-051 +6635 221-028 +6635 747-149 +6635 311-389 +6635 391-457 +6635 362-006 +6635 322-921 +6635 706-300 +6635 201-089

Note: * Sub-Branch

Annual Report 2009 Krung Thai Bank Pcl.

235


Branch Name

Telephone

Fax.

Talad Hua Raw +6635 252-365-6, 699 +6635 252-368 Tha Rua +6635 341-989 +6635 341-990 Phetchaburi (4 Branches) Cha-am +6632 471-600 +6632 471-601 Phetchaburi +6632 425-501, 516 +6632 428-229 (Mon-Fri 8.30-16.30 hrs. Sat-Sun 8.30-15.00 hrs.) Phra Nakhonkiri +6632 424-229 +6632 427-099 Tha Yang +6632 461-551-3 +6632 461-552 Prachuap Khiri Khan (8 Branches) Bang Saphan +6632 692-254 -5 +6632 692-263 Hua Hin +6632 511-307, 812, +6632 511-242 +6632 512-053 Hua Hin Market Village* +6632 526-192-3 +6632 526-242 (Mon-Sun 11.00-19.00 hrs.) Kui Buri +6632 681-585 +6632 681-546 Prachuap Khiri Khan +6632 551-140, +6632 611-575 (Mon-Fri 8.30-16.30 hrs. +6632 602-366, Sat-Sun 9.00-15.00 hrs.) +6632 611-171, 353, 372 Pran Buri +6632 621-444, 664 +6632 542-366 Talad Chat-Chai (Hua Hin) +6632 513-208-9 +6632 513-300 (Mon-Fri 10.00-18.00 hrs. Sat-Sun 10.00-19.00 hrs.) Tesco Lotus Pranburi +6632 825-803-4 +6632 825-805 (Mon-Sun 10.00-20.00 hrs.) Ratchaburi (14 Branches) Ban Pong +6632 342-988 +6632 211-891 Big C Ratchaburi* +6632 332-787-8 +6632 332-789 (Mon-Sun 10.00-19.00 hrs.) Chom Bung +6632 362-350-1 +6632 261-300 Damnoen Saduak +6632 241-500-2 +6632 254-133 Damnoen Saduak Floating +6632 241-542-3 +6632 241-544 Market (Mon-Fri 8.30-16.30 hrs. Sat-Sun 8.30-14.30 hrs.) Kraiphet Road +6632 322-049 +6632 325-590 Pak Tho +6632 281-479 +6632 281-480 Pho Tharam +6632 231-075, 926 +6632 231-927 Ratchaburi +6632 337-146 +6632 321-737 Ratchaburi City Hall* +6632 325-947 +6632 350-006 Si Suriyawong +6632 323-394-5, +6632 323-393 +6632 326-721 Suan Phung +6632 364-262-3 +6632 364-264 Talad Srimuang (Ratchaburi) +6632 332-138-9 +6632 332-140 (Mon-Fri 8.30-16.30 hrs. Sat-Sun 9.00-16.00 hrs.)

Tanon Khatha Thorn +6632 325-948 Samut Songkhram (2 Branches) Maeklong +6634 716-352-3 (Mon-Fri 8.30-16.30 hrs. Sat-Sun 9.00-15.00 hrs.) Samut Songkhram +6634 711-166, 199 Saraburi (9 Branches) Hin Kong +6636 337-411-2, +6636 379-493 Kaeng Khoi +6636 248-284-6 Na Phra Lan +6636 347-192-3, +6636 351-193 Nong Khae +6636 326-452, +6636 371-374

+6632 314-262

+6634 716-351

+6634 723-834 +6636 379-494 +6636 248-287 +6636 351-192 +6636 371-324

Branch Name

Telephone

Fax.

Nong Zang +6636 399-239 -40 Pakpreaw +6636 212-507, +6636 312-543 Sao Hai +6636 332-037, +6636 731-686 Sara Buri +6636 222-093-4 (Mon-Fri 8.30-16.30 hrs. Sat-Sun 9.00-15.00 hrs.) Thalan +6636 281-427 Sing Buri (3 Branches) In Buri +6636 581-476 -8 Sing Buri +6636 511-004, 115, +6636 512-032, 581, +6636 522-717 Tesco Lotus Sing Buri* +6636 512-953-4 (Mon-Sun 10.00-20.00 hrs.) Suphan Buri (9 Branches) Dan Chang +6635 509-503-4 Don Chedi +6635 591-301-3 Phraphanvasa Road +6635 523-475 (Mon-Fri 8.30-16.30 hrs. Sat-Sun 10.00-16.00 hrs.) Sam Chuk +6635 571-033, 755 Si Prachan +6635 581-984 -5 Song Phi Nong +6635 531-395, 454 Suphan Buri +6635 523-042, +6635 525-202-5 Suphanburi Government Centre +6635 535-060-3 U-Thong +6635 551-927-8 Northern Region (136 Branches) Chiang Mai (32 Branches) Big C Chiang Mai* +6653 246-709-10 (Mon-Sun 10.00-20.00 hrs.) Big C Hang Dong* +6653 447-809-10 (Mon-Sun 10.00-20.00 hrs.) Bo Sang +6653 338-289, 389 Carrefour Hangdong +6653 442-921-2 (Mon-Sun 10.00-20.00 hrs.) Central Airport Plaza +6653 279-337 Chiang Mai* (Mon-Sun 10.00-20.00 hrs.) Chaiprakarn +6653 457-002-3 Changklan Road +6653 272-093-5, +6653 273-276 Chiang Dao +6653 388-599-600, +6653 455-237-9 Chiang Mai +6653 245-250-1 Chiang Mai Government +6653 112-812-3 Center Chiangmai University* +6653 223-191 Chom Thong +6653 341-351, +6653 826-840 Fang +6653 451-481-3 Hang Dong +6653 441-097-8 Huai Kaew Road +6653 225-808-9 Kad Suan Kaew Shopping +6653 223-254, 268 Center* (Mon-Sun 10.00-20.00 hrs.) Khuang Sing +6653 409-545-7

+6636 399-237 +6636 222-580 +6636 731-685 +6636 222-095

+6636 281-334

+6636 581-331 +6636 511-006 +6636 511-999 +6635 595-367 +6635 591-304 +6635 523-722 +6635 571-022 +6635 582-595 +6635 531-453 +6635 523-315 +6635 535-064 +6635 551-929 +6653 246-791

+6653 447-811 +6653 338-376 +6653 442-923 +6653 279-676 +6653 457-004 +6653 818-368 +6653 455-147 +6653 248-868 +6653 112-814 +6653 223-172 +6653 341-350 +6653 452-006 +6653 441-096 +6653 225-810 +6653 225-807 +6653 409-548

Note: * Sub-Branch

236


Branch Name

Telephone

Mae Joe +6653 353-431-3 Mae Rim +6653 297-221, 223, 969, +6653 298-401 Night Bazaar Chiang Mai* +6653 280-667-9 (Mon-Fri 10.00-18.00 hrs.) Nim City Daily (Chiang Mai)* +6653 280-670-1 (Mon-Fri 10.00-18.00 hrs.) Phra Sing +6653 283-270 San Pa Khoi +6653 241-110, 854, +6653 243-188 Sanpatong +6653 311-519-21 Siyaek Nong Hoy +6653 800-475-6, 478 Siyaek Sanambin Chiang Mai +6653 280-965-7 Sri Nakorn Pink +6653 234-395, 890, +6653 251-044-6 Sun Kumphaeng +6653 331-993, +6653 332-311, 628 Suthep Road +6653 278-084, 087 Tesco Lotus Chiang Mai +6653 280-610-1 Hang Dong* (Mon-Sun 10.00-20.00 hrs.) Tesco Lotus Mae Tang* +6653 471-292-3 (Mon-Sun 10.00-20.00 hrs.) Tha Pae +6653 252-801-5 Chiang Rai (10 Branches) Big C Chiangrai* +6653 717-641-2 (Mon-Sun 10.00-20.00 hrs.) Chiang Khong +6653 791-665 Chiang Rai +6653 744-282-3 Chiang Saen +6653 650-696-7 Hayaek Phokhun Mengrai +6653 717-740-3 Mae Chan +6653 771-940-2 Mae Sai +6653 641-001, (Mon-Fri 8.30-17.30 hrs. +6653 731-624-5 Sat-Sun 9.30-17.30 hrs.) Phan +6653 721-370-1 Talad Ban Du (Chiang Rai) +6653 175-680-1 (Mon-Sun 8.30-18.30 hrs.) Talad Pa Kor (Chiang Rai) +6653 600-230-1 (Mon-Sun 9.00-19.00 hrs.) Kamphaeng Phet (6 Branches) Chakangrao +6655 711-003, 013, 023 (Mon-Fri 8.30-16.30 hrs. Sat-Sun 9.00-15.00 hrs.) Kamphaeng Phet +6655 711-007, 117 Khanu Woralaksaburi +6655 779-074 Klong Khlung +6655 863-114-6 Lan Krabu +6655 769-117-9 Salokbat +6655 771-100, 200, 300 Lampang (8 Branches) Kalangnakorn +6654 230-193-5 Lam Pang +6654 221-276, +6654 225-074, +6654 226-275 Mae Mo +6654 255-611, +6654 822-852 Mae Tha +6654 289-155 Pratuchai +6654 223-638

Fax.

Branch Name

+6653 353-430 +6653 297-222 +6653 282-782 +6653 280-672 +6653 283-269 +6653 245-405 +6653 311-503 +6653 800-477 +6653 280-968 +6653 251-724 +6653 331-994 +6653 278-871 +6653 280-612 +6653 471-294

+6653 232-537 +6653 717-789 +6653 791-772 +6653 711-700 +6653 650-698 +6653 719-147 +6653 771-939 +6653 731-831 +6653 721-622 +6653 175-682 +6653 600-232 +6655 714-024 +6655 713-567 +6655 779-014 +6655 863-113 +6655 769-174 +6655 771-491

+6654 230-192 +6654 225-748 +6654 266-005 +6654 289-154 +6654 225-051

Telephone

Tesco Lotus Lampang* +6654 230-443-4 (Mon-Sun 10.00-20.00 hrs.) Thoen +6654 291-111, 333, 444 Wang Nua +6654 279-118-9 Lamphun (6 Branches) Ban Hong +6653 591-311 Big C Lamphun* +6653 582-810-1 (Mon-Sun 10.00-20.00 hrs.) Lamphun +6653 510-309, +6653 511-109, 950 Lumphun Industrial Estate +6653 581-442 Mae Thar +6653 574-322-5 Tesco Lotus Pasang* +6653 521-302-3 (Mon-Sun 10.00-20.00 hrs.) Mae Hong Son (4 Branches) Khun Yuam +6653 691-043 Mae Hong Son +6653 612-049, (Mon-Fri 8.30-16.30 hrs. +6653 612-399 Sat-Sun 9.00-15.00 hrs.) Mae Sariang +6653 621-327, +6653 681-111, 482 Pai +6653 699-028-9 Nakorn Sawan (14 Branches) Banphot Phisai +6656 279-034, 068 Chumsaeng +6656 282-103 Fairy Land (Nakhonsawn)* +6656 372-122-3 (Mon-Sun 10.00-20.00 hrs.) Lat Yao +6656 271-267 Matuli Road +6656 229-343 Nakhon Sawan +6656 216-281-3 Nakhon Sawan Rajabhat +6656 882-633-4 University (Mon-Sun 9.00-17.00 hrs.) Pak Nam Pho +6656 221-590, +6656 227-643 Phayuha Khiri +6656 341-502 PTT.Khaothong (Nakhonsawan) +6656 247-373-4 Sawanviti Road +6656 221-628 Tak Fa +6656 241-074, 178 Takhli +6656 261-557 V - Square (Big C) Nakorn +6656 372-116-7 Sawan* (Mon-Sun 10.00-20.00 hrs.) Nan (3 Branches) Nan +6654 710-208, +6654 772-543 -4 Nara Hypermart* +6654 773-163, (Mon-Sun 9.00-19.00 hrs.) +6654 775-134 Wiang Sa +6654 782-052, 055 Phayao (5 Branches) Chiang Kham +6654 451-800, 965, +6654 452-096 Dok Kham Tai +6654 491-478 -9 Phayao +6654 431-032, 622, (Mon-Fri 8.30-18.30 hrs. 733, 992 Sat 10.00-18.30 hrs. Sun 9.30-17.30 hrs.)

Fax. +6654 230-445 +6654 291-555 +6654 279-117 +6653 591-211 +6653 582-812 +6653 511-189 +6653 581-443 +6653 574-821 +6653 521-332 +6653 691-033 +6653 612-219 +6653 681-222 +6653 699-030 +6656 279-227 +6656 282-218 +6656 372-124 +6656 271-328 +6656 229-853 +6656 216-284 +6656 882-635 +6656 221-706 +6656 341-455 +6656 247-375 +6656 226-790 +6656 241-177 +6656 262-500 +6656 372-118

+6654 710-209 +6654 740-056 +6654 782-076 +6654 451-675 +6654 491-476 +6654 431-802

Note: * Sub-Branch

Annual Report 2009 Krung Thai Bank Pcl.

237


Branch Name

Telephone

Pong +6654 497-038 Tesco Lotus Chiang Kham +6654 454-226-7 (Mon-Sun 9.00-19.00 hrs.) Phetchabun (9 Branches) Big C Phetchabun +6656 725-548-9 (Mon-Sun 10.00-20.00 hrs.) Bueng Samphan +6656 732-503-4 Chon Daen +6656 761-276-7 Lom Sak +6656 701-029, +6656 702-400 Nong Phai +6656 781-886 -8 Phetchabun +6656 711-055, 344, 388 Phetcharoen Road +6656 711-644-5 Tesco Lotus Phetchabun* +6656 711-841-2 (Mon-Sun 10.00-20.00 hrs.) Wichian Buri +6656 791-316 Phichit (7 Branches) Bang Mun Nak +6656 631-202-3, 830, 977 Phichit +6656 611-376 (Mon-Fri 8.30-16.30 hrs. Sat-Sun 9.00-15.00 hrs.) Pho Thale +6656 681-022 Rajkasemutit +6656 651-393-5 Sak Leg +6656 699-128-9 Taphan Hin +6656 621-159, 179, +6656 622-545 Thap Klo +6656 641-334 Phitsanulok (11 Branches) Bang Rakam +6655 371-227-8 Baromtrilokanart +6655 252-221-2 (Mon-Fri 9.00-17.00 hrs. Sat-Sun 10.00-17.00 hrs.) Big C Phitsanulok +6655 301-777, (Mon-Sun 10.00-20.00 hrs.) +6655 303-875 Hayaek Khokmatoom +6655 302-007-8, 010 Nakhon Thai +6655 389-296-7 Naresuan University* +6655 227-293-4 (Mon-Fri 9.00-17.00 hrs.) Phitsanulok +6655 230-371-5, +6655 242-800 Phrom Phiram +6655 369-111 Singhawat Road +6655 230-721-4 Topland Phitsanulok* +6655 247-444, 755 (Mon-Sun 10.00-20.00 hrs.) Wang Thong +6655 311-314, 317 Phrae (3 Branches) Big C Phrae* +6654 532-183-4 (Mon-Sun 9.00-19.00 hrs.) Long +6654 581-452-4, 666 Phrae +6654 511-630, +6654 522-941 Sukhothai (6 Branches) Big C Sukhothai +6655 616-018-9 (Mon-Sun 10.00-20.00 hrs.) Kong Krailat +6655 691-132-3

Fax.

Branch Name

+6654 497-035 +6654 454-228 +6656 725-460 +6656 732-505 +6656 761-276 +6656 701-676 +6656 781-884 +6656 711-168 +6656 711-646 +6656 711-843

+6656 791-318 +6656 631-414 +6656 611-396

+6656 681-024 +6656 651-396 +6656 699-130 +6656 621-959 +6656 641-307

+6655 371-148

+6655 302-856

+6655 302-011 +6655 389-090 +6655 227-445 +6655 242-112 +6655 369-112 +6655 230-723 +6655 247-833 +6655 311-231 +6654 532-185 +6654 581-456 +6654 522-928 +6655 616-020 +6655 691-131

Telephone

Fax.

Sawankhalok +6655 641-422, 681, +6655 642-252 Si Nakhon +6655 652-636, 638 Si Samrong +6655 628-598, +6655 681-366, 368 Sukhothai +6655 611-299, 383 (Mon-Fri 8.30-16.30 Sat-Sun 9.00-15.00 hrs.) Tak (4 Branches) Mae Sot +6655 531-006, 193, 600 Rim Ping* +6655 511-963-4 (Mon-Fri 8.30-16.30 hrs. Sat-Sun 9.00-15.00 hrs.) Tak +6655 511-116, 423 Talad Phacharoen Maesot* +6655 536-120-1 (Mon-Fri 9.00-17.00 hrs. Sat-Sun 9.00-1500 hrs.) Uthai Thani (2 Branches) Sawang Arom +6656 544-126, +6656 599-001 Uthai Thani +6656 511-027, 330 (Mon-Fri 8.30-16.30 hrs. Sat-Sun 9.00-15.00 hrs.) Uttaradit (6 Branches) Nam Pat +6655 481-012, 229 Phichai +6655 421-555 Si Utra Road +6655 411-285, +6655 413-860 Tesco Lotus Uttaradit* +6655 413-853, 863 (Mon-Sun 10.00-20.00 hrs.) Tron +6655 825-838 Uttaradit +6655 411-225, +6655 444-346 Northeastern Region (144 Branches) Amnat Charoen (1 Branch) Amnat Charoen +6645 511-784 (Mon-Fri 8.30-16.30 hrs. Sat-Sun 9.00-15.00 hrs.) Buri Ram (10 Branches) Big C Buri Ram* +6644 690-186-7 (Mon-Sun 10.00-19.00 hrs.) Buri Ram +6644 611-520, +6644 613-558-9 Krasang +6644 691-020-1 Kumueng +6644 699-001, 121 Lam Plaimat +6644 661-209 Nangrong +6644 632-105-7 Phutthaisong +6644 689-203 Prakhon Chai +6644 671-117, 434 Satuk +6644 627-415, +6644 681-283 Thani Road +6644 611-233, 560, +6644 614-270 Chaiyaphum (6 Branches) Bantant +6644 887-109 Bumnet Narong +6644 859-221-2 Chaiyaphum +6644 821-321-4

+6655 641-539 +6655 652-637 +6655 681-320 +6655 612-921 +6655 531-436 +6655 511-965 +6655 511-597 +6655 361-116 +6656 544-127 +6656 512-400 +6655 481-081 +6655 421-001 +6655 414-692 +6655 413-783 +6655 825-839 +6655 411-477 +6645 511-785 +6644 690-249 +6644 613-434 +6644 691-382 +6644 699-123 +6644 623-121 +6644 632-104 +6644 689-201 +6644 671-391 +6644 681-282 +6644 614-306

+6644 887-132 +6644 859-223 +6644 821-578

Note: * Sub-Branch

238


Branch Name

Telephone

Haruethai Road* +6644 821-799-800 (Mon-Fri 8.30-16.30 hrs. Sat-Sun 9.00-15.00 hrs.) Nong Bua Rawe +6644 897-225-6 Pu Keaw +6644 861-277 Kalasin (4 Branches) Kalasin +6643 811-731, +6643 814-880 Kalasin Plaza +6643 815-683 (Mon-Sun 10.00-19.00 hrs.) Kuchinarai +6643 851-312, 314 Nong Kung Si +6643 881-123-4 Khon Kaen (16 Branches) Ban Phai +6643 272-116, 996 Big C Khon Kaen* +6643 226-012-3 (Mon-Sun 10.00-20.00 hrs.) Central Plaza Khon Kaen +6643 288-096 (Mon-Sun 10.00-20.00 hrs.) Chum Phae +6643 311-119, +6643 312-017, 252, 809, 908 Khon Kaen +6643 246-838-40 Khonkaen University +6643 204-154-5 (Mon-Sun 10.00-20.00 hrs.) Klangmuang Road +6643 321-647-8 Kranuan +6643 251-700-2 Maliwan Road +6643 241-605-6 Mordindaeng Khonkaen +6643 244-461 Muang Phon +6643 414-273-4, 915 Nong Rua +6643 294-119 Pratumuang +6643 271-135-7 Si Chan +6643 245-634, +6643 246-604 Tesco Lotus Khon Kaen* +6643 472-506-7 (Mon-Sun 10.00-20.00 hrs.) Ubol Ratana +6643 446-002-4 Loei (3 Branches) Dan Sai +6642 891-273, 275 Loei +6642 812-650-1 Tanon Ouaaree* +6642 811-941 (Mon-Sun 10.00-18.00 hrs.) Maha Sarakham (9 Branches) Big C Maha Sarakham +6643 995-636-7 (Mon-Sun 10.00-19.00 hrs.) Borabu +6643 771-451-2 Hayaek Mahasarakham +6643 721-125 University* Kosum Phisai +6643 761-846 Maha Sarakham +6643 711-048, 310 Na Chuak +6643 779-641, 643 Phayakkaphumphisai +6643 791-401-2 Sermthai Plaza* +6643 723-070 (Mon-Sun 10.00-19.00 hrs.) Tha Khon Yang Mahasarakham +6643 970-224-5 (Mon-Fri 10.00-18.00 hrs.)

Fax.

Branch Name

+6644 811-325 +6644 897-112 +6644 861-411 +6643 812-232 +6643 815-684 +6643 851-052 +6643 881-222 +6643 272-886 +6643 226-014 +6643 288-098 +6643 311-139 +6643 246-838 +6643 204-156 +6643 321-649 +6643 252-013 +6643 241-607 +6643 247-044 +6643 414-275 +6643 294-118 +6643 222-966 +6643 241-865 +6643 472-508

+6643 446-005 +6642 891-274 +6642 811-728 +6642 811-942 +6643 995-638 +6643 771-113 +6643 721-625 +6643 761-844 +6643 721-512 +6643 779-651 +6643 791-112 +6643 723-061 +6643 970-223

Telephone

Mukdahan (4 Branches) Khamcha-i +6642 691-144 Mukdahan +6642 611-507, +6642 633-420 Mukdahan City Hall* +6642 614-923 (Mon-Sun 10.00-19.00 hrs.) Nikhom Kham Soi +6642 638-312 Nakhon Phanom (4 Branches) Nakae +6642 571-121-3 Nakhon Phanom +6642 513-993 Ranu Nakhon +6642 579-126-7 Tesco Lotus That Phanom* +6642 540-250-1 (Mon-Sun 10.00-19.00 hrs.) Nakhon Ratchasima (18 Branches) Ampawan* +6644 352-589 Bua Yai +6644 461-030-1 Chok Chai +6644 491-701-3 Dan Khun Thot +6644 204-034, 4698, +6644 389-428-9, 492 Jua Hua +6644 371-035 Klang Dong +6644 361-638-9, 686-7 Maharat Hospital +6644 243-300 Nakornratchasima Mitraphap Road +6644 257-470-3 (Mon-Fri 8.30-18.30 hrs. Sat-Sun 10.00-18.00 hrs.) Nakhon Ratchasima +6644 254-918-9, +6644 256-285-6 Nakhon Ratchasima City Hall* +6644 258-865-6 Pak Chong +6644 311-095, 421 Pak Thong Chai +6644 441-090, 245 Phoklang Road +6644 244-194, 222, +6644 253-710 Pra Thai +6644 479-464-5 Samyaek Pakthongchai +6644 222-122-4 Si Khiu +6644 411-666, 699, +6644 412-592 The Mall Nakornratchasima* +6644 245-432, 444 (Mon-Fri 10.30-19.30 hrs. Sat-Sun 10.00-19.00 hrs.) Wang Num Khieo +6644 228-035-7 Nong Bua Lumphu (2 Branches) Nong Bua Lumphu +6642 312-027-9 (Mon-Fri 8.30-16.30 hrs. Sat-Sun 11.00-16.30 hrs.) Na Klang +6642 359-480, 490 Nong Khai (9 Branches) Bigjieng Nongkhai* +6642 413-927-9 (Mon-Sun 10.00-20.00 hrs.) Bung Kan +6642 491-756-8 Nong Khai +6642 420-065-7 Phonphisai +6642 471-827-8 Seka +6642 489-087-8 Si Chiang Mai +6642 451-541, 641 Tesco Lotus Thabo* +6642 432-115, 155 (Mon-Sun 10.00-20.00 hrs.) Tha Bo +6642 431-793-4 Thasadej +6642 460-024-6

Fax. +6642 691-188 +6642 611-508 +6642 614-980 +6642 681-075 +6642 571-323 +6642 511-571 +6642 579-124 +6642 540-268

+6644 352-590 +6644 461-120 +6644 491-704 +6644 389-258 +6644 371-158 +6644 361-688 +6644 241-328 +6644 259-067

+6644 257-432 +6644 258-868 +6644 311-401 +6644 441-244 +6644 244-154 +6644 479-467 +6644 222-125 +6644 411-600 +6644 245-444 +6644 228-038

+6642 312-026

+6642 359-767

+6642 413-926 +6642 491-760 +6642 420-068 +6642 471-666 +6642 489-098 +6642 451-741 +6642 432-047 +6642 431-796 +6642 460-028

Note: * Sub-Branch

Annual Report 2009 Krung Thai Bank Pcl.

239


Branch Name

Telephone

Roi Et (7 Branches) Bung Planchai +6643 520-489 Nong Phok +6643 579-179, 230 Roi Et +6643 511-135, 153 Selaphum +6643 551-251-2 Suwannaphum +6643 581-252-3 Talad Haisoke +6643 522-168-9 Tesco Lotus Roi Et* +6643 519-536, 576 (Mon-Sun 11.00-19.00 hrs.) Sakon Nakhon (6 Branches) Akat Amnuai +6642 798-123, +6642 799-252 Charoenmuang +6642 715-089 Nevada Multiplex +6642 716-850-1 Sakonnakhon* (Mon-Sun 10.00-19.00 hrs.) Phang Khon +6642 771-030, 122-3 Sakon Nakhon +6642 711-024, 231, +6642 716-421 Sawang Daen Din +6642 721-680-1 Si Sa Ket (8 Branches) Big C Sisaket +6645 634-252-3 (Mon-Sun 9.00-19.00 hrs.) Kantharalak +6645 637-498, 605, +6645 661-245-6 Khun Han +6645 679-042-3 Si Sa Ket +6645 611-115, 558, (Mon-Sun 8.30-16.30 hrs.) +6645 612-508, 537 Sisaket Hospital +6645 613-675 -6 Tepha Road +6645 622-871-2 Tesco Lotus Khukhan* +6645 671-551 -2 (Mon-Sun 9.00-19.00 hrs.) Uthumphon Phisai +6645 691-199 Surin (7 Branches) Chom Phra +6644 581-188-9 Lukmuang Road +6644 519-416, 419 Prasat +6644 551-308 Si Khoraphum +6644 561-323-4 Surin +6644 511-021, +6644 514-567-8 Surin Plaza* +6644 714-005-6 (Mon-Sun 10.00-19.00 hrs.) Wongwien Namphu (Surin) +6644 518-312-3 Ubon Ratchathani (16 Branches) Aupparaj Road +6645 240-381-2 Big C Warin Chamrap +6645 854-080-1 (Mon-Sun 10.00-19.00 hrs.) Buntharik +6645 376-005-7 Chayangkul Road +6645 280-157-9, +6645 313-304-5 Det Udom +6645 282-457, +6645 361-058-9 Khong Chiam +6645 351-124-5 Sappasit Road +6645 240-099, +6645 244-848-9 Siyaek Kilosoon +6645 244-790-4

240

Fax. +6643 520-491 +6643 579-099 +6643 511-992 +6643 551-252 +6643 581-011 +6643 513-333 +6643 519-741

Branch Name

+6642 799-251 +6642 713-391 +6642 716-852 +6642 771-417 +6642 712-938 +6642 721-033 +6645 634-254 +6645 661-730 +6645 679-044 +6645 613-204 +6645 613-677 +6645 622-873 +6645 671-711 +6645 691-198 +6644 581-021 +6644 519-418 +6644 551-309 +6644 561-322 +6644 511-423 +6644 714-007

+6644 518-314 +6645 240-384 +6645 854-082 +6645 376-008 +6645 313-306 +6645 282-458 +6645 351-126 +6645 242-629 +6645 244-792

Telephone

Fax.

Talad Big C Ubon +6645 317-944, 955 Ratchathani* (Mon-Sun 10.00-19.00 hrs.) Tesco Lotus Det Udom* +6645 362-721 (Mon-Sun 10.00-19.00 hrs.) Tesco Lotus +6645 441-676, 797 Piboonmangsahan* (Mon-Sun 10.00-19.00 hrs.) Ubon Ratchathani +6645 314-931-4 Ubon Ratchathani University +6645 433-097-8 Ubonwatsadu +6645 243-503-4 Ubonratchathani* (Mon-Sun 10.00-19.00 hrs.) Warin Chamrap +6645 321-894, +6645 322-841-3 Yingcharoen Park* +6645 474-012 (Mon-Sun 10.00-19.00 hrs.) Udon Thani (10 Branches) Ban Phu +6642 281-281-2 Big C Udon Thani +6642 128-567, 597 (Mon-Sun 10.00-19.00 hrs.) Central Plaza Udon Thani +6642 249-211-2 (Mon-Sun 10.00-18.00 hrs.) Kumphawapi +6642 331-055, 384, 800 Markkaeng Road +6642 249-701-3 Talad Nong Bua +6642 244-035 Tesco Lotus Nadi Udonthani +6642 130-559 (Mon-Sun 10.00-19.00 hrs.) Udon Thani +6642 247-755-7 Udondusadee Road +6642 222-490 Udonthani City Hall +6642 212-172-3 Yasothon (4 Branches) Big C Yasothon +6645 724-517-8 (Mon-Sun 10.00-19.00 hrs.) Kut Chum +6645 789-416 -7 Loeng Noktha +6645 781-171, 374-5 Yasothon +6645 712-684, 695 (Mon-Sun 8.30-16.30 hrs.)

Eastern Region (84 Branches)

Chachoengsao (10 Branches) Bang Khla +6638 541-838 Bang Nam Prieo +6638 581-215-7 Bang Pakong +6638 531-211-2, +6638 532-088 Bangpakong Thermal Plant +6638 573-574-5 Carrefour Chachoengsao* +6638 514-676-7 (Mon-Sun 9.00-19.00 hrs.) Chachoengsao +6638 511-045-6, 468-73 Mahachakapad Road +6638 514-449 Panich Road +6638 516-691-3 Phanom Sarakham +6638 551-600-1, 836 Sanam Chai Khet +6638 597-068, 999 Chanthaburi (11 Branches) Chanthaburi +6639 311-008, 507, +6639 322-050 Khlung +6639 441-239-40 Na Yai Am +6639 371-236-7

+6645 317-366 +6645 362-743 +6645 441-763 +6645 314-935 +6645 433-099 +6645 243-621 +6645 321-613 +6645-474-011 +6642 281-283 +6642 128-596 +6642 249-210 +6642 331-006 +6642 249-704 +6642 247-654 +6642 130-560 +6642 247-758 +6642 241-768 +6642 212-174 +6645 724-519 +6645 789-114 +6645 781-172 +6645 712-215 +6638 827-499 +6638 581-179 +6638 531-213 +6638 573-574 +6638 514-668 +6638 981-567 +6638 512-023 +6638 516-694 +6638 551-154 +6638 597-067

+6639 321-153 +6639 441-241 +6639 371-235

Note: * Sub-Branch


Branch Name

Telephone

Pleaw +6639 397-225 Pong Nam Ron +6639 387-106-8 Pra Pok Klao Hospital +6639 324-098-9 Chantaburi Robinson Chanthaburi* +6639 303-255-6 (Mon-Sun 11.00-20.00 hrs.) Soydow +6639 381-035, 301 Srirongmueng Road +6639 321-188, +6639 322-116-7 Tanon Triratana +6639 325-930-2 Tesco Lotus Chantaburi* +6639 303-414 (Mon-Sun 10.00-20.00 hrs.) Chon Buri (36 Branches) Amata Nakorn Industrial Estate* +6638 440-518-9 (Mon-Fri 9.00-17.00 hrs.) Ao Udom +6638 351-357, 620, 665 Ban Kao-Panthong Road +6638 155-402-3 (Mon-Fri 10.00-18.00 hrs.) Ban Bung +6638 443-006, 498 Bangphra +6638 358-265-6 Bang Pla Soi +6638 274-093-5 Banglamung (Talad Naklua)* +6638 416-874-5 Big C Chonburi* +6638 192-150-1 (Mon-Sun 10.30-19.30 hrs.) Borwin (331 Road)* +6638 346-216-7 Burapha University* +6638 394-527-9 Central Center Pattaya Nua* +6638 362-547-8 (Mon-Sun 11.00-20.00 hrs.) Central Festival Pattaya Beach +6638 043-285-6 (Mon-Sun 11.00-20.00 hrs.) Central Plaza Chonburi +6638 053-637-8 (Mon-Sun 10.30-19.30 hrs.) Chalermthai Shopping Mall* +6638 288-496, 638 (Mon-Sun 10.30-19.30 hrs.) Chon Buri +6638 273-584-7 Chonburi Hospital* +6638 288-101-2 (Mon-Sun 9.00-17.00 hrs.) Jadjamnong Road +6638 272-456, +6638 283-456, 015 Kao Talo (Pattaya Soi 83) +6638 332-616, +6638 332-665 Najomtien (Bann Amphur)* +6638 235-786-7 Nong Yai +6638 219-472-3 Nongmon +6638 392-059-60, +6638 393-141 Pacific Park Sriracha* +6638 312-152, 154 (Mon-Sun 11.00-20.00 hrs.) Pattaya (Sukhumvit Road)* +6638 427-863, 891 Pattaya Klang +6638 428-436 Pattayatai +6638 425-014-6, +6638 429-275-6 Phan Thong* +6638 452-593-4 Phanat Nikhom +6638 461-400, +6638 473-034 Plutaluang +6638 245-057-8 Prayasatja Road* +6638 275-871-2 Sahapat Industrial Park* +6638 482-929-30 Samyaek Angsila +6638 272-471-3

Fax.

Branch Name

+6639 397-222 +6639 387-109 +6639 324-100 +6639 303-257 +6639 381-511 +6639 322-052 +6639 313-718 +6639 303-415 +6638 440-520 +6638 351-679 +6638 155-404 +6638 443-005 +6638 358-267 +6638 274-092 +6638 416-876 +6638 192-210

+6638 346-218 +6638 394-526 +6638 362-574 +6638 043-287 +6638 053-639 +6638 288-696 +6638 273-582 +6638 288-103 +6638 272-458 +6638 332-636 +6638 235-788 +6638 219-471 +6638 392-058 +6638 312-085 +6638 427-897 +6638 423-505 +6638 423-820 +6638 452-595 +6638 473-041 +6638 245-091 +6638 275-873 +6638 482-932 +6638 272-475

Telephone

Sattahip +6638 438-042-3 Si Racha +6638 312-002, 854, +6638 321-661 Talad Sriracha +6638 312-200-1, +6638 323-224-5 Tesco Lotus Amata Nakorn +6638 457-363-4 (Mon-Sun 10.30-19.30 hrs.) Tha Rua Laemchabang +6638 494-320-2 Nakhon Nayok (2 Branches) Ban Na +6637 381-191, 228-9 Nakhon Nayok +6637 311-475-6, (Mon-Fri 8.30-16.30 hrs. +6637 312-038 Sat-Sun 9.00-15.00 hrs.) Prachin Buri (4 Branches) 304 Industrial Park +6637 274-631-2 (Khlong Rang) (Mon-Fri 10.00-18.00 hrs.) Big C Prachin Buri +6637 452-129-30 (Mon-Sun 10.00-20.00 hrs.) Kabin Buri +6637 281-635-6, +6637 282-043, 423 Prachin Buri +6637 212-022, (Mon-Fri 8.30-16.30 hrs. +6637 213-184 Sat-Sun 9.00-15.00 hrs.) Rayong (12 Branches) Ban Chang +6638 601-680, +6638 602-684 Ban Phe +6638 651-541-3 Big C Rayong* +6638 621-793, 853 (Mon-Sun 10.00-20.00 hrs.) Klaeng +6638 671-200, 765-6 Mabtapud +6638 607-995-9 Nikhom Phatthana (Rayong) +6638 637-343-4 (Mon-Fri 10.00-18.00 hrs.) Rayong +6638 611-592, +6638 613-964-5 Rayong Trade Center* +6638 011-401-2 Siam Eastern Industrial* +6638 660-046-7 Tesco Lotus Rayong* +6638 624-161, (Mon-Sun 10.00-20.00 hrs.) +6638 624-511 Tha Pradu +6638 615-180 Wangchan +6638 888-254-5 Srakaew (5 Branches) Aranyaprathet +6637 231-031, +6637 232-576 Srakaew +6637 241-577, (Mon-Fri 8.30-16.30 hrs. +6637 242-694-5 Sat-Sun 9.00-15.00 hrs.) Ta Phraya +6637 269-114-5 Taladrongklua +6637 230-372-3 (Mon-Sun 10.00-18.00 hrs.) Watthana Nakhon +6637 261-021, 031 Trad (4 Branches) Khlong Yai +6639 581-243

Fax. +6638 438-044 +6638 312-001 +6638 312-202 +6638 457-365 +6638 494-324 +6637 381-668 +6637 311-076

+6637 274-633 +6637 452-131 +6637 281-637 +6637 211-369

+6638 603-256 +6638 651-540 +6638 621-914 +6638 671-240 +6638 607-994 +6638 637-345 +6638 611-205 +6638 011-400 +6638 660-048 +6638 624-019 +6638 615-181 +6638 666-382 +6637 231-331 +6637 241-576 +6637 269-116 +6637 230-374 +6637 261-022 +6639 581-244

Note: * Sub-Branch

Annual Report 2009 Krung Thai Bank Pcl.

241


Branch Name

Telephone

Fax.

Ko Chang* +6639 551-621-2 +6639 551-623 (Mon-Sun 10.00-19.00 hrs.) Santung +6639 599-121-3 +6639 599-124 Trad +6639 520-541-4 +6639 520-545 (Mon-Fri 8.30-16.30 hrs. Sat-Sun 9.00-15.00 hrs.) Southern Region (121 Branches) Chumphon (5 Branches) Chumphon +6677 511-158, 887 +6677 511-889 Lung Suan +6677 541-091, +6677 541-947 +6677 541-109, +6677 541-851 Ocean Shopping Mall +6677 501-957-8 +6677 501-959 Chumphon (Mon-Sun 10.30-19.30 hrs.) Pathomphon +6677 502-926-8 +6677 502-925 Sawi +6677 531-276, 500 +6677 531-275 Krabi (8 Branches) Ao Luk +6675 619-260 +6675 619-261 Aonang* +6675 695-535-6 +6675 695-572 (Apr.1-Oct.31 Mon-Fri 9.00-17.00 hrs. Nov.1-Mar.31 Mon-Fri 11.30-19.30 hrs.) Aonang 2* +6675 695-317-8 +6675 695-300 Klong Thom +6675 640-502, +6675 699-039 +6675 699-038, 054 Koh Lanta* +6675 684-315-6 +6675 684-317 Krabi +6675 611-193-4, +6675 612-727 +6675 612-775-6 Nua Khlong +6675 961-114-5 +6675 691-113 (Mon-Fri 8.30-16.30 hrs. Sat-Sun 9.00-15.00 hrs.) Tesco Lotus Krabi* +6675 650-740-1 +6675 650-742 (Mon-Sun 10.00-20.00 hrs.) Nakhon Si Thammarat (17 Branches) Cha Uat +6675 381-344-6 +6675 381-348 Chandi +6675 486-271-2 +6675 486-154 Chawang +6675 481-272 +6675 481-172 Chian Yai +6675 362-486 +6675 362-485 Khanom +6675 529-441-2 +6675 529-100 Maharat Hospital +6675 342-011 +6675 342-011 Nakhonsithummarat* Nakhon Si Thammarat +6675 342-772, +6675 341-197 +6675 356-017, 919 Nakhon Sri Thammarat City Hall +6675 357-137-8 +6675 357-145 Pak Phanang +6675 517-609 , +6675 517-760 +6675 517-120 -1 Robinson Ocean +6675 346-331-2 +6675 346-331 Nakhon Si Thammarat* (Mon-Sun 10.30-20.00 hrs.) Talad Hua It +6675 343-015 +6675 315-826 Taladkaset +6675 411-311, 565, 768 +6675 411-411 Tesco Lotus Nakhon Si +6675 343-752-3 +6675 347-832 Thammarat* (Mon-Sun 10.00-20.00 hrs.) Tesco Lotus Thung Song +6675 421-724-5 +6675 421-726 (Mon-Sun 10.00-20.00 hrs.) Tha Sala +6675 521-453-4 +6675 521-455 Thawang +6675 347-334-7 +6675 347-338

Branch Name

Telephone

Fax.

Thung Song Narathiwat (4 Branches) Narathiwat (Mon-Fri 9.00-15.00 hrs.) Sungai Kolok (Mon-Fri 9.00-15.00 hrs.) Tak Bai (Mon-Fri 9.00-15.00 hrs.) Tanyongmas

+6675 411-200, +6675 420-688, 787

+6675 411-601

+6673 511-004, 389, +6673 522-229 +6673 612-000 +6673 524-375, +6673 581-262-3 +6673 671-002, 113, 393

+6673 512-012

(Mon-Fri 9.00-15.00 hrs.)

Pattani (4 Branches) Big C Pattani*

+6673 312-554 (Mon-Sun 10.00-18.00 hrs.) Charoen Pradit +6673 332-553-5 (Mon-Fri 9.00-15.00 hrs.) Pattani +6673 333-024-6 (Mon-Fri 9.00-15.00 hrs.) Yarang +6673 352-277, (Mon-Fri 9.00-15.00 hrs.) +6673 439-049 Phang Nga (5 Branches) Khok Kloi +6676 581-403 Khura Buri +6676 491-392 Phang Nga +6676 411-365, 565-6 (Mon-Fri 8.30-16.30 hrs. Sat-Sun 9.00-15.00 hrs.) Takua Pa +6676 425-283-4 Talad Yanyao +6676 424-762-3 Phatthalung (6 Branches) Khao Chaison +6674 691-124 Mae Khri +6674 695-138-9 Pak Phayun +6674 699-038 Phatthalung +6674 611-432, +6674 613-033 Rames Road +6674 606-660-1 Tesco Lotus Phatthalung +6674 606-517-8 (Mon-Sun 10.00-19.00 hrs.) Phuket (9 Branches) Central Festival Phuket* +6676 248-291-2 (Mon-Sun 11.00-20.00 hrs.) Jungcetlon Patong Phuket* +6676 366-057-8 (Mon-Sun 11.00-20.00 hrs.) Kohkaew (Phuket) +6676 364-024-5 Patong +6676 344-301-2 Phuket +6676 211-158, 351, 893 Phuket Airport* +6676 327-294, 438 Rusda Road +6676 217-632, +6676 222-519, +6676 225-116 Tesco Lotus Rawai Phuket +6676 383-519-20 (Mon-Sun 10.00-20.00 hrs.) Thep Kasattri Road +6676 355-284 -6

+6673 614-314 +6673 581-261 +6673 671-451 +6673 312-555 +6673 335-991 +6673 331-036 +6673 439-112 +6676 434-754 +6676 491-118 +6676 411-810 +6676 425-286 +6676 424-764 +6674 691-032 +6674 633-231 +6674 699-028 +6674 612-156 +6674 606-662 +6674 606-519

+6676 248-290 +6676 376-059 +6676 364-026 +6676 344-300 +6676 213-598 +6676 328-150 +6676 211-586

+6676 383-533 +6676 355-288

Note: * Sub-Branch

242


Branch Name Ranong (2 Branches) Ranong Ruengraj Road

(Mon-Fri 8.30-16.30 hrs. Sat-Sun 9.00-15.00 hrs.)

Telephone

Fax.

+6677 811-502, +6677 823-039 +6677 811-105, 716, +6677 823-841

+6677 811-646 +6677 811-152

Satun (2 Branches) Khuan Ka Long +6674 797-020-1 Satun +6674 721-340-1 (Mon-Fri 8.30-16.30 hrs. Sat-Sun 9.00-15.00 hrs.) Songkhla (22 Branches) Big C Hat Yai* +6674 580-913-4 (Mon-Sun 10.00-20.00 hrs.) Carrefour Hatyai* +6674 555-463-4 (Mon-Sun 10.00-20.00 hrs.) Chung Loon* +6674 557-124-5 (Mon-Fri 9.30-17.30 hrs.) Had Yai Nai +6674 230-917-8, +6674 237-987 Hat Yai +6674 220-704-5, +6674 230-622-3 Hat Yai Hospital +6674 245-388-9 Hatyai University* +6674 501-629-30 (Mon-Fri 9.00-17.00 hrs.) Kanjanavanit (SongKhla) +6674 558-622-3 (Mon-Fri 10.00-18.00 hrs.) Khlong Ngae +6674 541-668-9 Na Thawi +6674 371-545, 547 (Mon-Fri 8.30-15.30 hrs.) Nipatutit 2 +6674 220-795, (Mon-Fri 10.00-18.00 hrs.) + 6674 239-088-9 Padang Besar +6674 521-616-7 Phetkasem Road (Hadyai) +6674 237-742, 960-1, +6674 239-086, +6674 245-854 Poonnakan (Mor-Or.Hat Yai)* +6674 500-263-4 (Mon-Fri 11.00-19.00 hrs.) Rajyindee +6674 230-481-2, 498 Sadao +6674 411-007, +6674 411-955-6 Sathing Phra +6674 397-115-6 Singha Nakhon +6674 331-252, 276, 297 Songkhla +6674 311-064, 585, (Mon-Fri 8.30-16.30 hrs. +6674 324-648 Sat-Sun 9.00-15.00 hrs.) Songkhla Hospital +6674 380-377-8 Thanon Nakhon Nok +6674 315-236-7 Thung Lung +6674 291-487, +6674 471-254-5 Surat Thani (19 Branches) Ban Na San +6677 341-450, 999 Big C Ko Samui +6677 962-031-2 (Mon-Sun 10.00-20.00 hrs.)

Branch Name

+6674 797-019 +6674 721-344 +6674 580-915 +6674 555-465 +6674 557-126 +6674 237-988 +6674 238-236 +6674 244-667 +6674 501-631 +6674 558-624 +6674 541-667 +6674 371-546 +6674 246-652 +6674 521-615 +6674 246-634 +6674 500-265 +6674 230-499 +6674 411-957 +6674 397-044 +6674 331-278 +6674 323-316

+6674 380-379 +6674 315-239 +6674 291-486 +6670 341-010 +6677 962-030

Telephone

Big C Surat Thani +6677 600-165-6 (Mon-Sun 10.00-20.00 hrs.) Chaweng* +6677 484-745-6 (Mon-Fri 10.00-18.00 hrs.) Don Sak +6677 371-095 Haadrin* +6677 375-033, 233 (Mon-Fri 11.00-19.00 hrs.) Khiri Ratthanikhom +6677 391-074-5 Ko Phangan +6677 377-184, 376 Ko Samui +6677 421-503-5 Lamai* +6677 424-569-70 Maenam* +6677 427-295-6 Phunphin +6677 311-016, 134, 334 Srivichai Road +6677 286-002-3, 442 Surat Thani +6677 281-829-30, +6677 282-923-4 Surat Thani Cooperative* +6677 441-091 Talad Mai Road +6677 273-967, +6677 283-042-3 Tesco Lotus Surat Thani* +6677 206-945-6 (Mon-Sun 10.00-20.00 hrs.) Tha Chang +6677 389-054 Wiengsa* +6677 363-100-1 Trang (9 Branches) Kantang +6675 251-178, +6675 252-898-9 Kapang +6675 286-251-2, 254 Nayong +6675 242-464-5 Sikao +6675 291-064-5 Siriban Shopping Center +6675 214-208-9 (Mon-Sun 10.30-20.00 hrs.) Talad Muengtrang +6675 219-871-2, +6675 223-435-6 Thab Thiang +6675 211-482-4 Trang +6675 218-093, 110 Yan Ta Khao +6675 281-194 , +6675 281-198 Yala (8 Branches) Ban Nang Sata +6673 289-422 (Mon-Fri 9.00-15.00 hrs.) Betong +6673 231-372, (Mon-Fri 9.00-15.00 hrs.) +6673 232-034 Coliseum Cineplex Yala* +6673 213-026 (Mon-Sun 10.00-18.00 hrs.) Raman +6673 295-101-2, 295 (Mon-Fri 9.00-15.00 hrs.) Siroros +6673 211-749-51 (Mon-Fri 9.00-15.00 hrs.) Sukyang Road +6673 230-024 (Mon-Fri 9.00-15.00 hrs.) Yaha +6673 250-358, (Mon-Fri 9.00-15.00 hrs.) +6673 291-034 Yala +6673 212-545, 596-7 (Mon-Fri 9.00-15.00 hrs.)

Fax. +6677 600-167 +6677 484-744 +6677 371-096 +6677 375-569 +6677 391-019 +6677 377-123 +6677 421-503 +6677 424-600 +6677 427-405 +6677 311-988 +6677 286-001 +6677 283-964 +6677 441-116 +6677 289-042 +6677 206-947

+6677 389-015 +6677 362-012 +6675 251-753 +6675 286-253 +6675 242-466 +6675 291-036 +6675 214-204 +6675 213-023 +6675 211-485 +6675 211-192 +6675 281-196 +6673 289-363 +6673 245-793 +6673 213-057 +6673 295-024 +6673 213-732 +6673 230-867 +6673 291-209 +6673 213-458

Note: * Sub-Branch

Annual Report 2009 Krung Thai Bank Pcl.

243


Business Office Centers (BOC):

63 Centers as at January 31, 2010 Working hours: Mon.-Fri. 8.00 - 17.00 hrs.

Business Office Center Name

Telephone

Fax.

Bangkok and Vicinity: 20 Centers

+662 415-8125, 8130 +662 573-0367 -8 +662 437-6459, 6829, 6832, 9943 +662 382-1135 -8 +662 538-2803, 2831, 3847 +662 208-3301 -6 +662 580-7544, 7561, 7563 +662 420-5953 -7 +662 320-2476 -8 +662 385-8621 -3 +662 714-6473 -9 +662 581-8455 -6 +662 435-8391, 8401 +662 225-3422 -9 +662 521-7617 -22 +662 225-3043 -5 +662 281-1288, 1374, 1478, 1530 +662 223-5812, 225-3031 -2, 3040 -2 +662 637-0572 -7 +662 556-1641 -2

+662 415-8014 +662 573-0381 +662 437-6886 +662 382-1134 +662 538-4175 +662 256-8174 +662 580-7603 +662 420-9577 +662 320-2480 +662 385-8625 +662 714-6470 +662 581-8458 +662 435-8385 +662 222-9208 +662 521-7613 +662 222-2107 +662 281-0847 +662 225-3034 +662 637-0578 +662 556-1640

Central Region: 8 Centers

+6635 345-091 -6 +6636 414-175 -6 +6634 395-553, 582, 592 -4, 636 +6632 423-835 -7 +6632 310-956 -8, 967 -8 +6634 421-521, 422-328, 424-620 +6636 308-125 -31 +6635 525-570 -1

+6635 345-098 +6636 414-177 +6634 395-174 +6632 423-840 +6632 311-022 +6634 425-616 +6636 308-124 +6635 525-887

Northern Region: 9 Centers

+6653 409-536 -9 +6653 748-800, 802 -8 +6655 717-026 -7 +6654 230-407, 426, 607 +6656 222-400, 224-219 +6656 650-670 -1

+6653 409-543 +6653 748-801 +6655 713-093 +6654 230-523 +6656 224-593 +6656 650-672

244

Bang Bon Chaeng Wattana Charoennakon Road Ekamai Lad Prao Nana Nua Nonthaburi Om Noi On Nuch Pak Nam Phathanakarn Pathum Thani Phra Pinklao Rajawongse Raminthra Samyod Sphan Khao Suanmali Surawongse Wong Sawang Ayutthaya Lop Buri Nakhon Pathom Phetchaburi Ratchaburi Samut Sakhon Saraburi Suphan Buri

Chiang Mai Chiang Rai Kamphaeng Phet Lam Pang Nakhon Sawan Phichit


Business Office Center Name

Phitsanulok Suthep Road Uttaradit

Telephone

Fax.

+6655 232-460 -5 +6653 281-671 -6 +6655 412-333, 416-333

+6655 232-469 +6653 281-670 +6655 413-399

+6644 618-748 -9 +6644 813-516 -7 +6643 338-419 -24 +6642 614-587 +6644 222-114 -20 +6643 516-002 -3, 520-416 -7 +6642 733-793 -6 +6644 521-503 -8 +6645 283-027 -33 +6642 325-126 -31

+6644 618-764 +6644 813-524 +6643 338-418 +6642 614-593 +6644 222-113 +6643 520-418 +6642 733-802 +6644 511-423 +6645 283-034 +6642 325-132

Eastern Region: 6 Centers

+6638 824-280 -2 +6639 340-294 -5 +6638 289-093 -4 +6637 214-917, 952, 954 +6638 624-983 -5 +6638 324-067

+6638 824-283 +6639 340-296 +6638 289-013 +6637 214-814 +6638 624-986 +6638 314-130

Southern Region: 10 Centers

+6677 576-807 -8 +6674 239-130, 132, 306 +6677 426-155 -6 +6675 623-340, 367 +6675 313-669 -75 +6676 232-566 -8 +6674 311-212, 313-141 +6677 221-648, 661 -3, 696 +6675 217 941 -7 +6673 222-282 -3

+6677 576-809 +6674 234-185 +6677 426-199 +6675 623-209 +6675 313-676 +6676 232-473 +6674 313-312 +6677 221-660 +6675 217-938 +6673 222-281

North-Eastern Region: 10 Centers

Buri Ram Chaiyaphum Khon Kaen Mukdahan Nakhon Ratchasima Roi-et Sakon Nakhon Surin Ubon Ratchathani Udon Thani

Chachoengsao Chanthaburi Chon Buri Prachin Buri Ra Yong Si Racha

Chumphon Hat Yai Ko Samui Krabi Nakhon Si Thammarat Phuket Songkhla Surat Thani Trang Yala

Annual Report 2009 Krung Thai Bank Pcl.

245


International Business Centers (IBC):

19 Centers as at January 31, 2010 Working hours: Mon.-Fri. 8.00 - 17.00 hrs. International Business Center Name

Telephone

Fax.

Bangkok and Vicinity: 14 Centers

+662 382-1091 -6, 1099 +662 811-4322 -5 +662 389-3183 -4, 395-0371 -2 +662 216-2570 -3 +662 884-6910 -2 +662 225-4505, 4507 -14 +662 385-8473 -4, 8820 -1 +6634 413-057 -8 +662 224-8928, 8933 -7 +662 282-5151, 7152 -4 +662 521-6340 -5 +662 223-7717, 7738, 226-4837 +662 233-3921 -5 +662 585-9970, 913-2660 -2

+662 382-1090 +662 431-0156 +662 389-2802 +662 215-8473 +662 884-6914 +662 225-4506 +662 385-8464 +6634 413-059 +662 224-8929 +662 282-5152 +662 521-6343 +662 225-3036, 3062 +662 233-3926 -7 +662 585-0862, 9469

Central Region: 1 Center

+6635 353-671 -3

+6635 353-674

Northern Region: 1 Center

+6653 216-028, 283, 225-567

+6653 214-998

Eastern Region: 1 Center

+6638 352-210 -1

+6638 352-209

Southern Region: 2 Centers

+6674 351-571 -5, 577 -80 +6676 232-470 -2

+6674 236-045 +6676 232-473

246

Ekamai Om Yai Pak Nam Pathumwan Phrapinklao Rajawongse Samut Prakan Samut Sakhon Samyod Saphan Khao Saphan Mai Suan Mali Surawongse Wongsawang Ayutthaya

Chiang Mai Chon Buri Hat Yai Phuket


Overseas Branches:

7 Branches as at January 31, 2010 Kunming Branch

General Manager : Mr. Pipat Anegsiripong & Vice President Address : 1st Floor South Building, Kunming Hotel, 52 Dong Feng Road (East), Kunming, Yunnan The People’s Republic of China, 650051 Telephone : +86 (871) 313-8370 -1 +86 (871) 313-8359 Fax. : +86 (871) 313-8367 Telex : 64190 KTB KM E-mail : br.kunming@ktb.co.th ktbkmxcn@public.km.yn.cn

Telephone Fax. Swift E-mail

: +855 (23) 882-959 +855 (23) 305-881 -2 +855 (23) 350-421 : +855 (23) 883-719 : KRTH KH PP : br.phnompenh@ktb.co.th ktbpmp@online.com.kh

Siem Reap Province Sub-Branch

General Manager : Mr. Sethayut Maneesri & Assistant Vice President Address : 10-11 Sivatha Road, Mondol 2 Sangkat Svay Dangkom Siem Reap City Siem Reap Province, Cambodia Los Angeles International Branch Telephone : +855 (63) 964-758 General Manager : Mr. Pumin Leelayoova Fax. : +855 (63) 964-759 & First Vice President E-mail : br.siemreap@ktb.co.th Address : 707 Wilshire Boulevard, ktbsre@mfone.com.kh Suite 3150 Los Angeles, CA. 90017, USA Singapore Branch Telephone : +1 (213) 488-9897 General Manager : Ms. Nuannapha Wongthawatchai +1 (213) 488-9899 & Vice President Fax. : +1 (213) 891-0733 Address : 32-05/08 OCBC Centre Swift : KRTH US 6L 65 Chulia Street, E-mail : br.losangeles@ktb.co.th Singapore, 049513 ktbla@pacbell.net Telephone : +65 6533-6691 +65 6533-0131 Mumbai Branch Fax. : +65 6533-0930 General Manager : Mr. Pisit Buranakitpinyo +65 6533-0932 & Vice President Swift : KRTH SG SG Address : 6th Floor, 62 Maker E-mail : br.singapore@ktb.co.th Chambers VI Nariman Point, ktbs@pacific.net.sg Mumbai 400-021, India Telephone : +91 (22) 2287-3741 -3 Vientiane Branch +91 (22) 2283-7693 General Manager : Mr. Jaturong Bunnag +91 (22) 2287-5458 & Assistant Vice President Fax. : +91 (22) 2287-3744 Address : 80 Lanexang Road, Swift : KRTH IN BB B. Xiengngeuanthong E-mail : br.mumbai@ktb.co.th M. Chanthabouly, Vientiane ktbmbin@bom3.vsnl.net.in People’s Democratic Republic of Lao Phnom Penh Branch Telephone & Fax. : +856 (21) 213-480 General Manager : Mr. Apinart Nuntikulvanich +856 (21) 222-761 & Vice President +856 (21) 222-762 Address : 149 Road 215, E-mail : br.vientiane@ktb.co.th Sangkat Deipo 1 Market, ktblao@laotel.com Tuankok District, Phnom Penh City, Cambodia Annual Report 2009 Krung Thai Bank Pcl.

247


Summary of Items in accordance with Form 56-2 Item

Page

Message from the Chairman and the President 12-13 The Board of Directors’ Responsibility for Financial Reports 131 Report of the Nominating and Remuneration Committee 112 Report of the Audit Committee 130 Report of the Corporate Governance and Social Responsibility Committee 111 1. General Information 1.1 Company information 213 1.2 Brief history and key developments 213-214 1.2 Other companies where shareholding is 10% or more 220-224 1.3 Information of other references 217-218 2. Financial Highlights 11, 100-101 3. Business Operation 3.1 Business operation of the Bank and affiliated companies 40-65 3.2 Income structure 53, 55 3.3 Major changes in business operation 59-61 4. Risk Factors and Risk Management 102-110 5. Shareholding and Management Structure 5.1 Shareholders 1) Top 10 shareholders 66 2) Shareholders who have influence on the Bank’s policy significantly 66-69 5.2 Management 1) Management structure (1.1) Structure and scope of power and duty of the committees 14-15, 67-80 (1.2) Names of Directors and Names of Independent Directors with 17-20, 25-29, 68-80, 72, 123 knowledge and experience in review of financial statement (1.3) Independent Directors nomination process 76-78, 80-81 (1.4) No. of Board of Directors meeting 85 (1.5) Profile of Directors, Executives and Corporate Secretary 17-33, 86 (1.6) Information of business relation transactions between Independent Directors 26-29, 78-79, 87 and the Bank , the Bank’s parent company or affiliated companies 2) Nomination of Directors and Executives and Minority Shareholders’ Rights 80-84, 114-124 3) Remuneration for Directors and Executives 120-122 4) Corporate Governance 113-129 5) Supervision of the use of inside information 115-116 6) Internal control and audit 71, 127-128, 130 5.3 Dividend payment policy 217 6. Related Party Transactions 128-129, 192-194 7. Analysis of Operating Performance and Financial Standing 90-99 8. Financial Statements 8.1 Consolidated and the Bank’s financial statements 134-212 8.2 Auditor’s fee 217 9. Industrial Situation and Competition 38-39 10. Other Factors that may affect Investment Decision 219 11. Information on Debentures or Financial Instruments 184-187, 216-218

248