Six Strategic Intents for the Business Operation in 2012
1. We intend to provide our customers with a superior experience by offering the best service and a total financial solution to their unique needs.
2. We intend to increase our productivity and customer satisfaction through strategic investments in our people, leadership, systems and processes.
3. We intend to be the dominant market leader for Hire Purchase Business with increasing share in higher yielding
4. We intend to aggressively grow the housing loan portfolio to be the top-five in market share of the Commercial
Used and CYC segments. Banking Industry.
5. We intend to grow the Corporate and SME loan portfolios higher than industry average and gain market share.
6. We intend to increase the fee-based income proportion to be on par with industry average.
Vision of Thanachart Group To provide fully integrated financial services targeted at meeting customers’ unique financial needs by creating
the highest quality products and services which strengthen our image as a trustworthy financial services group.
Financial highlights
As at and for the year ended December 31
Consolidated 2011
2010
2009
As at and for the year ended December 31
Separate financial statements
2008
2007
2011
2010
2009
2008
Consolidated
2007
Operating results (Million Baht)
Separate financial statements
2011
2010
2009
2008
2007
96.95
90.24
83.61
87.04
92.18
2011
2010
2009
2008
2007
82.46
85.62
90.67
Asset quality
Interest income
44,214
34,781
21,470
20,688
17,488
29,547
21,397
20,934
19,897
17,123
Interest expenses
19,797
11,566
6,736
9,398
9,396
14,959
7,375
6,791
9,429
9,386
Net interest income
24,416
23,216
14,734
11,290
8,092
14,589
14,022
14,143
10,467
7,737
NPL-gross to total loans (Percent)
5.58
5.60
2.57
2.37
2.41
2.74
2.26
2.49
2.30
2.31
Non-interest income
10,595
9,457
18,403
10,700
6,111
7,172
4,000
2,815
2,286
2,005
NPL-net to total loans (Percent)
2.64
2.48
0.58
0.58
0.78
1.45
0.57
0.59
0.60
0.81
Total income(1)
35,011
32,673
33,137
21,990
14,203
21,760
18,022
16,958
12,753
9,742
Coverage ratio(7) (Percent)
69.75
71.22
96.41
94.99
92.07
71.53
97.66
92.33
88.81
86.80
21,877
16,824
24,177
15,535
9,905
13,671
8,730
9,125
7,788
6,105
Total allowance to BOT regulation
104.27
108.05
111.66
112.75
121.72
103.12
105.32
102.85
101.55
108.38
(Percent) 37,677
36,859
8,675
7,466
17,989
7,648
8,359
7,167
5,213
Non-interest expenses Bad debt and doubtful
accounts(2)
Net income(3)
2,504
2,149
3,107
3,968
2,692
1,422
1,280
2,830
3,548
2,606
7,671
8,777
4,056
1,870
1,327
6,668
5,719
3,547
1,304
991
88.86
93.37
borrowings ratio (Percent)
Non-performing loans (NPL)
5,520
(Million Baht)
Operating performance Basic earnings per share (Baht)
Loans to deposits and short-term
1.39
1.92
2.19
1.08
0.84
1.21
1.25
1.91
0.75
Capital measures
0.63
Return on average assets (ROAA) (percent)
0.89
1.23
1.06
0.56
0.47
1.13
1.31
0.96
0.41
0.36
Tier I capital ratio (Percent)
9.28
11.71
8.65
8.02
10.15
Return on average equity (ROAE) (percent)
10.61
15.52
17.01
8.79
7.47
9.42
10.70
15.20
6.22
5.52
Total capital ratio (Percent)
13.72
14.75
14.10
11.18
12.00
2.92
3.33
3.73
3.17
2.64
2.99
3.63
3.66
3.14
2.73
Risk weighted assets (Million Baht) 664,103 609,277 273,366 252,634 197,128
62.49
51.49
56.51
60.09
62.11
62.83
48.44
53.81
61.06
62.67
Interest spread(4) (Percent) Cost to income ratio net insurance premium
income(5)
Common share information
(Percent) Common shares outstanding (Million shares)
Statement of financial position (Million Baht)
- Average-basic
5,514
4,563
1,854
1,735
1,584
5,514
4,563
1,854
1,735
1,584
- End of period
5,514
5,514
1,935
1,735
1,735
5,514
5,514
1,935
1,735
1,735
13.58
13.09
14.38
12.26
12.06
Loans
635,220 606,851 285,515 276,142 228,776 616,713 326,549 282,577 272,925 224,940
Book value (Baht)
12.86
12.10
13.62
12.26
11.93
Total assets
886,060 873,203 432,970 378,347 300,787 878,053 482,063 413,878 368,272 291,098
Dividends per share (Baht)
0.40
0.56
0.56
0.43
Deposits and bill of exchange
655,206 672,475 341,496 317,243 248,193 693,991 349,753 342,664 318,760 248,084
Total liabilities
810,526 800,809 405,098 357,006 279,807 807,169 415,327 387,523 347,002 270,402 14,152
7,871
7,470
7,534
4,603
676
256
256
213
166
89
92
76
64
Shareholders’ equity(6)
74,848
72,183
27,811
21,278
20,923
70,884
66,737
26,355
21,270
20,695
Other information Employees
16,298
16,846
9,368
9,630
6,210
Branches Exchange booth
Remark: Financial Statement Appearance in accordance with the notification of the BOT Re: the
1. Interest income excludes dividend income
Definitions and
Preparation and Announcement of Financial Statements of Financial Institutions dated
2. Interest expense excludes contribution fee to Deposit Protection Agency
Formulas
28 December 2010 or Sor Nor Sor 11/2010 resulted in change various items. However,
3. Non-interest income includes fee paid related to income and insurance/life insruance expenses
the Bank and its subsidiaries have revised the financial statement for the year 2011
4. Non-interest expense excludes fee paid related to income, insurance/life insurance expense and
(exepting Y2010) for analysis and comparison
contribution fee to Deposit Protection Agency
5. Financial ratios are calculated on disclosure financial statement
2
Annual Report 2011 Thanachart Bank Public Company Limited
(1) Total
income = Net interest income + Non-interest income
(2) Including
loss on debt restructuring
(3) Excluding
minority interest/non-controlling interest
(4) Interest
spread = Yield-Cost of fund
(8)
79
Cost of fund = Interest expenses/Average paying liabilities Paying liabilities = Total deposits + interbank and money market from interest bearing + total borrowings
(5)
Cost to income ratio = Non-interest expenses/Total income
Yield = Interest income/Average earning assets
(6)
Excluding minority interest/non-controlling interest
Earning assets = Interbank and money market from interest bearing +
(7)
Total allowance/NPL
net investment + loans
(8)
Stand alone exchange booth
Annual Report 2011 Thanachart Bank Public Company Limited
3
Mr. Suphadej Poonpipat Vice Chairman and Chairman of the Executive Committee
Message from the BOARD OF DIRECTORS
processes have been unified. We greatly appreciate the
remains uncertain with slow recovery in the USA and the debt
support of our over 4 million customers throughout this
crisis continuing to impact major European economies. Here in
process and now with over 670 branches, 2,100 ATMs and a
Thailand, flood recovery efforts are now commencing with
2011 was a year of great change and challenge for
full range of financial services; the Thanachart Bank group is
subdued economic conditions expected until at least the
Thailand and Thanachart Bank. First and foremost was the
well positioned to meet all the unique financial needs of our
second half of the year. In addition, competition remains fierce
devastating flooding which impacted the central part of
customers.
not only among the commercial banks but also from the
Dear shareholders,
Thailand, including sections of Bangkok. This unprecedented
growing presence of the government owned Special Financial
disaster caused substantial damage to agriculture,
We continue to maintain our strong position as the
Institutions. The royal decree to restructure Financial
infrastructure and productive capacity and most sadly led to
market leader in auto Hire Purchase and to show strong
Institution Development Fund (FIDF)’s debt owed to the
substantial loss of life. 2011 was also a year of political change
growth in our credit card and revolving cash card portfolios
Finance Ministry B.E. 2555, allows the Bank of Thailand to
which saw the election of a new government led by Thailand’s
with an overall loan growth of 4.7%. The increase in the Bank
impose a 0.47% fee on the deposit bases of commercial banks,
first female Prime Minister.
of Thailand’s interest rates in the first half of the year along
will be another challenge facing commercial banks. Thus, it is
with heightened competition for deposits, especially from the
important that economic policy continue to support a strong
On the economic front, the global economy continued
government-owned Special Financial Institutions, resulted in
private sector financial system and a level playing field for all
to be impacted by a weak recovery in the USA and the
a rapid increase in deposit rates and funding costs throughout
participants so that the sector can continue to foster long
European Debt Crisis, which affected tourism, exports and
the year. This combined with our market leading fixed rate Hire
term, sustainable economic development and be competitive in
investments in Asian countries, including Thailand. As for
Purchase portfolio led to a decline in Net Interest Margin over
the increasingly integrated Asean Economic Community.
Thailand, inflation concerns prompted the Bank of Thailand to
the year from 3.33 to 2.92%. Along with the one-time
move into a tightening phase and substantially increase
integration costs and impact from the floods, these factors
2011 has truly been a year of transformation for our
interest rates in the first half of the year before starting to
impacted our results such that net income declined by 12.59%
bank with the successful completion of the merger with Siam
ease rates in light of the weak global economy and the effects
from THB 8,777 to THB7,672 million in 2011.
City Bank. This was carried out in a difficult local and global
of the flood. Due to these issues, the Thai economy contracted in the fourth quarter, reducing overall GDP growth from 7.8%
environment which was closely followed by devastating
With the systems and branch conversion phase of
flooding in many parts of Thailand. Through these many challenges, our management and staff showed their enduring
development with our efforts firmly focused on growth and
dedication to helping our customers and one another overcome
The banking industry was also affected. Despite
further increasing our productivity, sales capacity and
any obstacle and reach their goals. It is this spirit and
unfavorable factors and fierce competition, the overall banking
customer satisfaction through strategic investments in our
commitment which we take this opportunity to recognize and
industry remained strong with high growth in loans and
people, leadership, technology and processes. Working with
the Board of Directors expresses our sincere appreciate to all
deposits and well-controlled non-performing loans.
Scotiabank to implement global best practices, we will
our staff for their great efforts this year and we would also like
complete the process of upgrading our sales and support
to thank all the customers, stakeholders, and shareholders as
In the past year, we focused on the integration project
infrastructure which will centralize back office processes,
well for their strong support. While challenges abound, the
with Siam City Bank (SCIB) and serving our existing
allowing our branches and call centers to focus on sales and
Board is committed to strong corporate governance and is
customers amid the high impact from the floods. This was the
customer service activities, significantly accelerating our loan
confident that our strategy under the guiding principal of
largest and most complex merger in the history of Thailand’s
approval, fulfillment and collection processes while further
Transforming to Strength and realizing Synergies and with the
financial services industry and required additional one-time
improving our loan quality. We have recruited new leadership
trust of our customers and support of our strategic partner,
costs in such areas as branches, training, systems and human
in several key business lines and support functions to support
Scotiabank, Thanachart Bank is well positioned for further
resources among others. With the strong dedication and
these initiatives and are confident these investments will
growth and prosperity.
tremendous efforts of all of our staff and key vendors and with
position the bank as a leader in customer service in the Thai
the support of our strategic partner, The Bank of Nova Scotia
financial services sector.
(Scotiabank), we completed the Entire Business Transfer of
Annual Report 2011 Thanachart Bank Public Company Limited
integration now complete, we move into the next phase of our
in 2010 to only 0.1% in 2011.
14
Mr. Somjate Moosirilert Member of the Executive Committee and Chief Executive Officer and President
all the assets of SCIB as scheduled on October 1, 2011 with
While we are excited about the future, we expect the
minimal disruption to our clients. All SCIB branches have now
environment for commercial banks in 2012 in Thailand to
Chairman of the Board of Director
been re-branded to Thanachart and all key systems and
continue to be challenging. The global economic recovery
Thanachart Bank Public Company Limited
(Mr. Banterng Tantivit)
Annual Report 2011 Thanachart Bank Public Company Limited
15
16
Annual Report 2011 Thanachart Bank Public Company Limited
Annual Report 2011 Thanachart Bank Public Company Limited
17
18
Annual Report 2011 Thanachart Bank Public Company Limited
Annual Report 2011 Thanachart Bank Public Company Limited
19
MANAGEMENT DISCUSSION AND ANALYSIS
Management Discussion and Analysis of Financial Position and Performance (A comparative analysis of 2011 and 2010 consolidated Consolidated Financial Statements) On April 9, 2010, TBANK successfully acquired 1,005,330,950 SCIB common shares, equivalent to 47.58 percent of SCIB’s total issued and paid up shares, from Financial Institution Development Fund (FIDF). Thereafter, it conducted tender offers to purchase the remaining shares from public shareholders in June and November 2010 at a price of THB 32.50 per share (the same price that TBANK paid to FIDF). Consequently, TBANK’s held 99.95 percent of SCIB’s total issued and paid up shares. Upon the successful share acquisition as mentioned above, therefore, the balance sheets as well as consolidated income statements of SCIB and its subsidiaries have been consolidated into TBANK’s consolidated financial statements since the date that TBANK assumed a control over SCIB. TBANK, in the first quarter of 2011, established a wholly-owned subsidiary named TS Asset Management Company Limited (TS AMC) to facilitate an efficient management of the entire non-performing assets transferred from SCIB as part of the acquisition. All of SCIB Non-Performing Loans (NPLs), Non-Performing Asset (NPA), liabilities, and obligations whether existing ones or that may arise in the future were transferred to TS AMC on October 1, 2011 at a fair price recommended by the Independent Financial Advisor at THB 50,134 million, comprising assets of THB 381,077 million and liabilities of THB 330,943 million. Since the same date, SCIB had ceased its entire business operation. Thereafter on December 6, 2011, the Extraordinary General Meeting of Shareholders of SCIB approved a change its name to “SCIB Public Company Limited.” It returned a commercial banking license to the Ministry of Finance on December 8, 2011 and had gone under the process of liquidation since December 9, 2011. To allow the minority shareholders of SCIB to sell their shares before the liquidation, in November 2011 TBANK performed a tender offer to SCIB shareholders and acquired 696,865 SCIB shares at THB 16 million, resulting in 2,112,375,422 shares held in total, equivalent to 99.98 percent stake. Meanwhile, as part of the acquisition, 437.25 million ordinary shares or 48.35 percent stake of Ratchathani Leasing Public Company Limited’s (THANI) were transferred from the SCIB to TBANK on October 1, 2011. On October 21, 2011 TBANK subscribed to THANI shares from the THANI’s right offering proportionately to its original shareholding, resulting in 874.97 million shares held. However, the remaining of THANI shareholders did not exercise all of their rights; TBANK’s shareholding, therefore, rose from 48.35 percent to 65.18 percent of the total issued and paid up shares.
TBANK consolidated financial statements included performances of the following subsidiaries. Direct subsidiaries SCIB Public Company Limited (formerly Siam City Bank Public Company Limited) Thanachart Securities Public Company Limited Thanachart Insurance Company Limited Thanachart Life Assurance Company Limited Thanachart Fund Management Company Limited Thanachart Broker Company Limited Thanachart Group Leasing Company Limited Thanachart Management and Services Company Limited
20
Annual Report 2011 Thanachart Bank Public Company Limited
Thanachart Legal and Appraisal Company Limited Thanachart Training and Development Company Limited TS Asset Management Company Limited Ratchathani Leasing Public Company Limited Indirect Subsidiaries National Leasing Company Limited Siam City Securities Company Limited (Disposed investment in August 2011) Siam City Life Assurance Company Limited Siam City Asset Management Company Limited (Disposed investment in May 2011) SCIB Service Company Limited
OVERVIEW OF OPERATING RESULTS (A comparative analysis of 2011 and 2010 Consolidated Financial Statements)
Consolidated Income Statements
2011
2010
(Unit: THB Million)
Change from 2010 Increase/ (Decrease)
Percent
Interest income
44,214
34,781
9,432
27.12
Interest expenses
19,797
11,566
8,232
71.18
Net interest income
24,416
23,216
1,201
5.18
Net fee and service income
3,358
2,850
508
17.82
Other operating incomes(1)
7,237
6,607
630
9.54
Other operating
expenses(2)
Income (loss) before impairment loss of loans and debt securities Impairment loss of loans and debt securities Income before corporate income tax
21,877
16,824
5,054
13,134
15,849
(2,715)
2,504
2,149
355
10,630
13,701
(3,071)
30.04 (17.14) 16.55 (22.42)
Corporate income tax
2,948
4,548
(1,600)
(35.19)
Net income
7,682
9,152
(1,471)
(16.07)
Attributable to controlling interests
7,671
8,777
(1,105)
(12.60)
Attributable to minority interests
10
376
(365)
(97.23)
Earnings per share (Baht) Weighted average number of ordinary shares (shares)
Notes:
(1)
Income net of insurance/life assurance expenses
(2)
Exclusive of insurance/life assurance expenses
1.39
1.92
5,513.66
4,562.52
In 2011, net income of TBANK and its subsidiaries recorded THB 7,671 million, fell by THB 1,105 million or 12.60 percent year-on-year. The key factors contributing to its performance were the following:
• Loans grew by 4.7 percent year-on-year. In particular, the hire purchase Loans grew by 19.5 percent. Despite
negative impact from the flood crisis in the 4Q2011, TBANK maintained its leading position in the automobile hire
purchase loans. The outstanding hire purchase loans stood at THB 286,361 million where it achieved a penetration
rate of new car hire purchase loans of 19.1 percent. Owing to the successful merger with SCIB, the bank loan
portfolio was well diversified. The ratio of retail loans and SME loans was at 62 percent to 38 percent.
• Deposit and B/E fell by 2.6 percent year-on-year. In 2011, TBANK altered it products and interest rates offer
to be in line with the policy interest rate as well as the market trends. The ratio of current account deposits and
savings deposits (CASA) to total deposits including B/E was 26.9.
Annual Report 2011 Thanachart Bank Public Company Limited
21
• Interest spread stood at 2.9 percent,
• Capital Adequacy: TBANK’s total capital
decreased from 3.3 percent from 2010, with the
yield on earning assets rose to 5.5 percent along
61,638 million was Tier 1 and THB 29,455 million
with the rise of market interest rate, compared to
was Tier 2. BIS ratio was 13.7 percent. The
5.1 percent of the 4Q2010 despite lower interests
capital consideration has deducted THB 15,740
recognized as flood relief programs given to
million of goodwill from acquiring SCIB shares
customers who were affected by the flood crisis in
and included THB 10,000 million subordinated
4Q2011.
Yet, the gain is expected in 1Q2012.
debentures transferred from SCIB. This was
Meanwhile, yield on loan rose slightly in 4Q2011
carried out in accordance with a waiver granted
as a result of combining Ratchthani Leasing’s
by the Bank of Thailand which stipulated such
performance. Cost of fund increased to 2.6
consideration for capital after the completion of
percent compared to 1.8 percent of 2010 as a
the entire business transfer (October 1, 2011).
result of the higher market interest rates as well as
intensifying competition.
amounted to THB 91,093 million, of which THB
Net Interest income
• Non-performing loan management. Impairment
In 2011, net interest income of TBANK and its
loss of loans and debt expense to total loan ratio
subsidiaries recorded at THB 24,416 million, reflecting an
was 0.4 percent, slightly increased from 0.3 of
increase of THB 1,201 million or 5.18 percent year-on-
2010 despite an impact from the flood crisis.
year. This was due primarily to increasing volumes of
Meanwhile, a result of TS AMC’s good performance
TBANK and SCIB transactions. Total interest income
helped improve quality of NPL, thus, lowering its
amounted to THB 44,214 million, an increase of THB 9,432
provision for NPL. As of December 31, 2011,
million or 27.12 percent while interest expenses amounted
TBANK and its subsidiaries incurred NPL of THB
to THB 19,797 million, an increase of THB 8,232 million or
37,677 million with the ratio of gross NPL to total
71.18 percent year-on-year. As a result, interest spread of
loans of 5.6 percent.
2011 stood at 2.92, a decrease from 3.32 percent of 2010.
Non-interest Income
• Growth on non-interest income which was
contributed by fees and service income, brokerage
fees, gains on proprietary trading and foreign
Non-interest income consisted of net fee and
trading transactions, gain on investment, profit
service income, net insurance/life insurance premium
sharing from investments in associated companies
income, and other operating income recorded THB 10,595
recognized under equity method, dividend income,
million, an increase of THB 1,137 million or 12.03 percent
net insurance/life insurance premium income.
year-on-year.
Net-interest income to net operating income was
30.2 percent.
•
Net Fees and Service Income
• The effectiveness of operating expense
TBANK and its subsidiaries recorded net fees and
management: The ratio of operating expense
service income of THB 3,358 million, representing an
to total income was 62.5 percent, increased
increase of THB 508 million or 17.82 percent year-on-year.
from 51.1 percent of 2010. This was due
Fees and service income amounted to THB 3,858 million,
primarily to thinner interest spread and integration
an increase of THB 489 million or 14.52 percent while fees
costs which included IT system improvement,
and service expenses amounted to THB 500 million, a
branch decoration cost, employee benefits and
decrease of THB 19 million or 3.60 percent due to financial
trainings, as well as cost from early retirement
product variety offered to customers both from TBANK and
program.
SCIB.
• Corporate income tax: TBANK and its subsidiaries
corporate income tax for 2011 totaled THB 2,948
•
Other Operating Income
million baht, or 27.7 percent, compared to 33.2
Other operating income consisted of gain on trading
percent of 2010. This was because of NPA transfer
and foreign exchange transaction, gain on investments,
to TS AMC and sales of investment in Siam City
profit sharing from investments in associated companies
Securities Co., Ltd. And the provision could be
recognized under equity method, dividend income,
recognized as tax deductible expenses.
brokerage fees, net insurance/life assurance premium
22
Annual Report 2011 Thanachart Bank Public Company Limited
income, and other income. In 2011, other operating income (net of insurance/life assurance operating expenses) of TBANK and its subsidiaries recorded THB 7,237 million, reflecting an increase of THB 630 million or 9.54 percent year-on-year.
The increase was attributable to an increase of gain on investments of THB 398 million, gain on trading and foreign exchange transaction of THB 321 million, and dividend income SCIB received from Vayupak Fund of THB 246 million while net insurance/life assurance premium income fell by THB 225 million.
Other Operating Expenses TBANK and its subsidiaries recorded other operating expenses (exclusives of insurance/life assurance expenses)
of THB 21,877 million, rose by THB 5,054 million or 30.04 percent year-on-year due primarily to personnel expenses
and integration costs. Consequently, other operating expenses to net operating income ratio (cost to income ratio) was
at 62.5 percent.
Bad Debts, Doubtful Accounts, and Allowance for Impairment In 2011, TBANK and its subsidiaries incurred expenses of bad debt, doubtful accounts, and impairment
of securities investments of THB 2,504 million, an increase of THB 355 million. Provision to total loan ratio rose
to 0.53 percent from 0.47 percent of 2010 while coverage ratio was 69.75 percent and actual/required LLR required by
the Bank of Thailand was 104.27 percent.
CONSOLIDATED FINANCIAL POSITION
Consolidated Balance Sheet
December 31, 2011
December 31, 2010
(Unit: THB Million)
Change from 2010 Increase/ (Decrease)
Percent
Assets Cash
16,006
15,298
Interbank and money market items (with interest)
63,201
85,060
Investment-net
148,345
140,022
8,323
Loans and accrued interest receivables-net
609,903
581,525
28,378
6,762
7,851
(1,089)
(13.87)
(227)
(2.53)
Property foreclosed-net
8,759
8,986
Goodwill
Land, premises and equipment-net
15,750
15,750
Other assets
17,334
18,711
886,060
873,203
Total assets
708 (21,859)
0 (1,377) 12,857
4.63 (25.70) 5.95 4.88
0.00 (7.36) 1.47
Annual Report 2011 Thanachart Bank Public Company Limited
23
As of December 31, 2010, TBANK and its subsidiaries recorded net asset of THB 886,060 million, an increase of THB 12,857 million or 1.47 percent year-on-year, due primarily to an increase of loans and accrued interest receivables of THB 28,378 million. Ratio of retail loan to corporate loan and SME loan was 62 to 38.
Consolidated Balance Sheet
December 31, 2011
December 31, 2010
(Unit: THB Million)
Change from 2010 Increase/ (Decrease)
Percent
Liabilities and shareholders’ equity Deposits Interbank and money market items (with interest)
436,040
532,656
60,151
40,545
(96,617)
(18.14)
19,606
48.36
Liability payable on demand
2,131
3,127
Debt issued and borrowings
254,297
174,949
79,348
45.36
2,824
900
1,924
213.84
36,154
29,774
6,380
21.43
Provisions Insurance and contract liabilities Other liabilities Total liabilities Equity attributable to the Bank’s shareholders Minority interest Total liabilities and shareholders’ equity
(996)
(31.86)
18,931
18,859
71
0.38
810,526
800,809
9,717
1.22
74,848
72,183
2,665
3.70
685
211
475
225.49
886,060
873,203
12,857
1.47
As of December 31, 2011, TBANK and its subsidiaries posted total liabilities of THB 810,526 million, an increase of THB 9,717 million or 1.22 percent compared to the end of 2010. An increase was attributed to the following:
• Debt instruments and borrowings of THB 254,297 million, an increase of THB 79,348 million or 45.36 percent from last year. Most of debt instruments issued by TBANK were B/E as a mean to diversify customers’ investment portfolio and provide them an investment alternative with a better yield in light of Deposit Protection Agency Act which took effect since August 2011. The products were well accepted by TBANK customers. Meanwhile, deposits dropped by THB 96,617 million or 18.14 percent compared to the end of 2010.
• Interbank and money market was THB 60,151 million, an increase of THB 19,606 million.
Shareholders’ equity of TBANK and its subsidiaries as of December 31, 2011 amounted to THB 74,848 million,
an increase of THB 2,665 million or 3.70 percent from the end of 2010, most of which came from 2011 net profit.
ASSETS QUALITY Assets as reflected in the consolidated financial statements. 1. Loans, receivables and accrued interest receivables
As of December 31, 2011, TBANK and its subsidiaries’ net loans and accrued interest receivables in accordance
with the Notifications of the BOT amounted to THB 620,328 million, an increase of THB 17,079 million or 2.83 percent from the end of last year. During 2011, the Bank and its subsidiaries entered into various debt restructuring agreements in the form of reconditioning of the debt repayment, transferring assets and/or equity and/or reconditioning the terms and conditions of repayment. The total of THB 38,685 million of debts was restructured compared to THB 17,180 million outstanding balances before the restructuring. At the end of 2011, the Bank and its subsidiaries had entered into debt restructuring agreements with 53,922 debtors out of 1,382,206 total bank’s debtors. The total outstanding balance of loans and accrued interest from restructuring was of THB 38,816 million.
24
Annual Report 2011 Thanachart Bank Public Company Limited
LOAN CONCENTRATION At the end of 2011, 45.08 percent of loan portfolio was nominated by hire purchase loans, followed by 12.90 percent of manufacturing and commerce loans, 11.59 percent of housing loans, 9.20 percent of infrastructure and service loans, 7.55 percent of real estate and construction loans, and 13.68 percent of other loans respectively. LOANS CLASSIFIED BY BUSINESS TYPE IN 2010
LOANS CLASSIFIED BY BUSINESS TYPE IN 2011
13.68% Others
12.16% Others 45.08% Hire Purchase 16.05% Manufacturing and Commerce
39.48% Hire Purchase
7.55% Real Estate and Construction 9.20% Infrastructure and Service
8.64% Real Estate and Construction 12.79% Housing
12.90% Manufacturing and Commerce
11.59% Housing
10.88% Infrastructure and Service
2. Loan classification according to the BOT’s notification
As of December 31, 2011, TBANK and its subsidiaries’ loans and accrued interest receivables classified under the
BOT’s notification registered at THB 620,328 million, an increase of THB 17,079 million or 2.83 percent from the previous year. As of December 31, 2011, it set aside allowance for doubtful accounts of THB 24,417 million and additional allowances for doubtful accounts of THB 383 million. As a result, the total allowance for doubtful accounts amounted to THB 24,800 million. The ratio of total allowance for doubtful account to loans and accrued interest receivables, therefore, stood at 4.00 percent. LOANS CLASSIFICATION ACCORDING TO THE BOT’S NOTIFICATION
(Unit: THB Million) Debt Balance/Book Value(1)
Loans and Interest Receivables
Normal
December 31, 2011 December 31, 2010
542,456
531,104
40,447 7,031
doubtful doubtful of loss
Allowance for Doubtful Accounts December 31, 2011
December 31, 2010
3,970
2,082
36,539
722
2,249
6,663
3,870
2,898
11,763
12,620
7,507
8,277
18,631
16,323
8,348
8,199
620,328
603,249
24,417
23,705
Additional allowance for doubtful accounts
383
534
Total allowance for doubtful accounts
24,800
24,239
Ratio of total allowance for doubtful accounts to total loans
4.00
4.02
Special mention substandard
Total
and interest receivables (percent) Note:
(1)
The debt balance/book value of the normal and special mention accounts did not include the accrued interest receivables.
Annual Report 2011 Thanachart Bank Public Company Limited
25
3. Non-Performing Loans (NPLs)
As of December 31, 2011, TBANK and its subsidiaries recorded an NPL in the amount of THB 37,677 million, an
increase of THB 818 million from the end of 2010, due primarily to changes of policies, strategies, and process of debt management and collections. Meanwhile, good performance of TS AMC helped improve quality of NPL transferred from SCIB. As a result, it achieved total NPL ratio of 5.58 percent.
NON-PERFORMING LOANS (Unit: THB Million) December 31, 2011
December 31, 2010
Non-performing loans (NPLs)
37,677
36,859
NPLs to total loans (percent)
5.58
5.60
17,787
16,336
2.64
2.48
NPL-net (Under the BOT’s regulation) NPL-net (percent)
NPLs CLASSIFIED BY BUSINESS TYPE
9.51% Hire Purchase Loans
11.91% Others
CLASSIFIED NPLs
18.79% Substandard
9.37% Housing Loans
14.74% Service
31.46% Doubtful 10.08% Real Estate and Construction
44.39% Manufacturing and Commerce
49.75% Doubtful of Loss
4. INVESTMENT IN SECURITIES
In 2011, TBANK and its subsidiaries’ total investments in securities stood at THB 148,345 million. Investments in
government and state enterprise securities accounted for 52.97 percent, followed by foreign debt securities, most of which were forward contracts to cover the foreign exchange risks for both foreign investments and accrued interests which accounted for 18.72 percent. After taking into consideration net revaluation surplus on investments in securities, TBANK recorded net investments in securities of THB 148,345 million in 2010, an increase from THB 139,933 million in 2010. The details of 2011 investment in securities are provided as follows:
26
Annual Report 2011 Thanachart Bank Public Company Limited
INVESTMENT IN SECURITIES CLASSIFIED BY TYPE OF INSTRUMENTS INVESTMENT CLASSIFIED BY TYPE
(Unit: THB Million) December 31, 2011
Percent
December 31, 2010
Percent
Debt securities Government and state enterprise securities • Trading securities
10,508
7.11
44
0.03
• Available-for-sale securities
40,877
27.67
52,685
37.92
• Held-to-maturity securities
26,876
18.19
36,138
26.01
4,770
3.23
21
18,389
12.45
9,898
7.12
6,592
4.46
5,874
4.23
642
0.43
3,015
2.17
25,516
17.27
12,704
1,500
1.02
5,705
Private debt securities • Trading securities • Available-for-sale securities • Held-to-maturity securities
0.02
Foreign debt securities • Trading securities • Available-for-sale securities • Held-to-maturity securities
9.14 4.11
Equity securities Listed securities • Trading securities • Available-for-sale securities
34
0.02
74
0.05
7,483
5.06
7,752
5.58
12
0.01
29
0.02
Unit trusts • Available-for-sale securities General investments Total investment in securities
4,549
3.08
4,993
147,748
100.00
138,932
Add (Less) Allowance for revaluation
641
Allowance for impairment
(44)
Total investments-net
148,345
3.59 100.00
1,098 (97) 139,933
LIQUIDITY At the end of 2011, TBANK and its subsidiaries’ cash flows received from financing activities amounted to THB 69,490 million while that of the investment activities was THB 10,216 million and cash flows used in operating activities stood at THB 78,998 million. The Bank’s cash and cash equivalents, therefore, increased by THB 708 million. At the end of 2011, the Bank’s outstanding cash and cash equivalent increased by THB 16,006 million with major items listed as follows: • Cash flows from financing activities included cash received from borrowings of THB 1,181,760 million while cash paid for borrowings was THB 1,103,304 million, cash paid for interest from borrowings was THB 6,759 million, cash paid for dividend was THB 2,205 million, and dividend paid to non-controlling interests of its subsidiaries was THB 2 million. • Cash flows from the investing activities included increase in investment in securities of THB 5,798 million, cash received from interests on investment of THB 4,534 million, cash received from dividend was of THB 824 million, and cash paid for purchase of equipment of THB 852 million. • Cash flows from operating activities included decrease of deposits in the amount of THB 96,617 million, cash received from increase of loans by THB 22,028 million, cash received from interbank and money market items of THB 23,211 million and profit from operation of THB 18,627 million respectively.
Annual Report 2011 Thanachart Bank Public Company Limited
27
(Unit: THB Million) Major Changes Iems
2011
2010
Cash flows from financing activities
69,490
91,746
Cash flows from investing activities
10,216
(35,165)
(78,998)
(45,003)
Cash flows from the operating activities Net increase (decrease) in cash Cash at beginning of the year Cash at end of the year
708
11,578
15,298
3,720
16,006
15,298
Relationship between sources and utilization of funds
In 2011, TBANK’s major sources of funds were from deposits and borrowings of THB 436,040 million and THB 254,297 million respectively. For the utilization of funds, THB 635,220 million was used for loans and THB 147,748 million was for investments respectively. The comparison between sources and utilization of funds based on maturity of financial instruments dated in balance sheet as of December 31, 2011 illustrated that the primary sources of funds were deposits with remaining maturity of less than one year which accounted for 36.19 percent of total sources of funds; followed by 31.50 percent of borrowings with remaining maturity of less than one year. On fund utilizing side, funds were used for loans with remaining maturity of more than one year which was accounted for 50.37 percent and loans with remaining maturity of less than one year accounted for 24.68 percent of total uses of funds. However, the maturity mismatch between sources and uses of funds was considered normal in commercial bank and financial institution business. This was due to the behavior of most depositors to extend their deposits after the maturity. Furthermore, the Bank had conducted risk management program that aimed at seeking for sources of funds that were most compatible with their uses through various financial instruments. This therefore enabled the TBANK to recognize in advance the signal of any adverse impacts that would occur to the sources and uses of funds. Details of key sources and uses of funds classified by maturity date of each item since the balance sheet date as of December 31, 2011 were as follows:
Type
At Call THB Million
Less Than 1 YR
Percent
THB Million
Percent
More Than 1 YR THB Million
Percent
Not Specified THB Million
Percent
Total THB Million
Percent
Sources of funds Deposits Borrowings
176,616
25.58 249,835
999 177,615
36.19
9,589
1.39
0
0.00 436,040
63.16
0.14 217,447
31.50 28,721
4.16
7,130
1.03 254,297
36.84
25.73 467,282
67.69 38,310
5.55
7,130
1.03 690,337 100.00
47,672
6.09 193,205
24.68 394,343
50.37
0
0.00 635,220
81.13
1
0.00 67,445
8.61 68,908
8.80 11,394
1.46 147,748
18.87
47,673
6.09 260,650
33.29 463,251
59.17 11,394
Total Sources of funds Uses of Funds Loans(1) Investments Total Uses of funds Note:
28
(1)
1.46 782,968 100.00
The outstanding balance of loans and debtors at call also included loans and debtors whose income recognition was put on hold
Annual Report 2011 Thanachart Bank Public Company Limited
MAINTENANCE OF CAPITAL ADEQUACY RATIO As of December 31, 2011, TBANK’s total capital registered at THB 91,093 million of which THB 61,638 million was Tier 1 capital and THB 29,455 million was Tier 2. The ratio of capital to risk weighted assets calculated under Basel II standards dropped from 14.75 percent at the end of 2010 to 13.72 percent, comprising 9.28 percent of Tier 1 capital, compared to 11.71 percent of 2010 due to goodwill expense from acquiring SCIB in the amount of THB 15,740 million and 4.44 percent of Tier 2 capital, compared to 3.04 percent of 2011 from subordinated debentures transferred from SCIB. This was carried out in accordance with a waiver granted by the Bank of Thailand which stipulated such consideration for capital after the completion of the entire business transfer (October 1, 2011). The capital ratio, however, remained well above the BOT’s minimum requirement at 8.50 percent. Details of ratio
of capital to risk weighted assets could be listed as follows:
CAPITAL ADEQUACY RATIO December 31, 2011 THB Million
December 31, 2010
Percent
THB Million
Percent
Tier 1 capital
61,638
9.28
71,335
11.71
Total capital
91,093
13.72
89,898
14.75
Thanachart Securities Public Company Limited A daily average trading value of Thanachart Securities Public Company Limited (TNS) in 2011 was THB 2,266 million,
dropped from THB 2,305 million of 2010. The market share was 4.43 percent, ranked number 10 in the industry. 77.4 percent of its trading volume was dominated by retail customers, followed by 21.0 percent of financial institutions and 1.6 percent of foreign customers respectively. For 2011, TNS recorded a net profit of THB 293 million, a decrease of THB 98 million or 25.0 percent year-on-year. Total income rose slightly by 3.7 percent year-on-year due to higher brokerage fees from derivative business which increased by THB 52 million, equivalent to 115.5 percent; interest income from margin loans increased by THB 51 million or 75.1 percent; and interest and dividend income rose by THB 35.7 million. Meanwhile, fees and service income dropped by 27.1 percent while total expense increased by 20.6 percent. TNS net liquid capital ratio stood at 149.1 percent which was substantially higher than the minimum requirement of the Securities and Exchange Commission (SEC) regulated level of 7.0 percent.
Annual Report 2011 Thanachart Bank Public Company Limited
29
Thanachart Fund Management
Company Limited
Thanachart Life Assurance Company Limited
At the end of 2011, Thanachart Fund Management
For 2011, Thanachart Life Assurance Company
Company Limited (TFUND)’s asset under management
Limited (TLIFE) recorded a net profit of THB 770 million,
recorded THB 96,351 million, an increase of THB 2,795
an increase of THB 82 million or 11.9 percent year-on-
million or 3.0 percent year-on-year.
Mutual fund asset
year. An increase was attributable to a growing customer
dropped by 1.8 percent year-on-year, yet, this was offset
base. Investment income grew by THB 202 million or 30
by an increase of provident fund and private fund asset of
percent year-on-year. Income from underwriting remained
76.7 and 4.6 percent respectively. Asset under management
the same as 2011. The capital ratio was 278 percent which
was divided into 81.3 percent of mutual fund, 9.2 percent
was well higher than the minimum requirement of the OIC
of provident fund, and the balance 9.4 percent of private
of 125 percent.
fund.
For 2011, TFND recorded a net profit of THB 89 million, a drop of THB 42 million or 32.2 percent year-on-
TS Asset Management Company Limited
year. This was due primarily to a drop of fee income in the
TS AMC Company Limited (TS AMC) was found on
amount of THB 35.97 million or 8.49 percent. However,
March 3, 2011, as part of the entire business transfer
TFUND put in place a plan to launch variety of new
project of SCIB to TBANK. NPLs and NPA were transferred
products to serve its clients’ needs in light of changing
to TS AMC in order to efficiently manage and restructure
interest rate trend and market environment.
the debts. For the year ended December 31, 2011, TS AMC
Thanachart Insurance Company Limited
recorded its total assets of THB 12,267 million and net profit of THB 180 million. THB 259 million of its income was generated from loans, THB 282 million reversals of
provision for doubtful accounts, and THB 33 million non-
For the year ended December 31, 2011, Thanachart
interest income. Allowance for impairment of property
Insurance Company Limited (TNI) recognized a net income
foreclosed was THB 12 million. Meanwhile, THB 85 million
of THB 435.88 million, achieving an increase of THB 83.74
of its expense was interest expense and THB 95 million
million or 23.8 percent year-on-year. The key factors
was operating expense.
contributing to its success included an increase of premium received through bancassurance channel and efficiency in claim management. The capital ratio at the end of 2011 was 505 percent, substantially higher than the minimum requirement of the Office of Insurance Commission (OIC) of 125 percent.
30
Annual Report 2011 Thanachart Bank Public Company Limited
NATURE OF BUSINESS OPERATIONS An Overview of the Business Operation Upon a successful integration with the SCIB and the entire business transfer of all of the SCIB’s assets on October
1, 2011, TBANK’s business structure, having TCAP as a parent company, consists of two groups: 1) financial group and
2) Supporting group. It was presently a fully integrated financial conglomerate serving customers with a full range of financial services primarily available through TBANK branch network and TBANK service outlets, and it is strongly committed to good corporate governance principles. The details of the business operations of each subsidiary company
are as follows:
Financial Group 1. Thanachart Capital Public Company Limited (TCAP) operates as the holding company being a parent company of Thanachart Financial Conglomerate. 2. Thanachart Bank Public Company Limited (TBANK) operates commercial banking business and other businesses permitted by the BOT, such as life and non-life insurance broker, a provider of services relating to unit trust and securities such as securities brokerage, proprietary trading, unit trust underwriting, mutual fund trustee service, provident fund custodian service, debt instrument underwriting and trading, securities registrar, and gold derivative trading. 3. Thanachart Securities Public Company Limited (TNS) was permitted by the Ministry of Finance and the Office of the Securities and Exchange Commission of Thailand to operate the following activities: 3.1 TNS was granted a Full-Service License to operate securities businesses and related businesses such as securities brokerage (domestically and internationally), securities underwriting, investment advisory service, securities borrowing and lending, financial advisory service, unit trust underwriting and repurchasing, and securities registrar. 3.2 TNS was granted a Derivatives Business Sor 1 License to engage in a full range of derivative businesses and related businesses such as derivative brokerage and proprietary trading. 4. Thanachart Fund Management Company Limited (TFUND), which is a joint venture between Thanachart Bank (holding 75 percent of the total shares) and The Government Savings Bank (holding 25 percent shares), operates a full range of investment management services in mutual fund management business, private fund and provident fund management business, and investment advisory business. 5. Thanachart Insurance Company Limited (TNI) operates a non-life insurance business and a disaster insurance business such as fire insurances, automobile insurances, marine and transportation insurances, miscellaneous insurance, and investment business. 6. Thanachart Life Assurance Company Limited (TLIFE) operates a life insurance business and a health insurance business individual life insurances, such as individual endowment and annuity, group life insurance, such as group life insurances for corporation and organization, and credit life insurances including hire purchase loan, mortgage, SME loan, and credit card. 7. Siam City Life Assurance Company Limited (SCILIFE) operates life insurance business by offering products through TBANK’s branch network. Its customer segment is mainly TBANK’s lending customers and deposit customers. 8. Thanachart Group Leasing Company Limited (TGL) operates a hire purchase business of all automobile types. 9. Ratchthani Leasing Public Company Limited (THANI) operates a hire purchase business and financial lease business focusing on the segment of private used cars and commercial cars such as pick-ups, taxis, tractors, and trucks. 10. NFS Asset Management Company Limited (NFS AMC) operates an asset management business by buying or receiving transfers of NPLs and NPAs from financial institutions in the Thanachart Group. 11. MAX Asset Management Company Limited (MAX AMC) operates an asset management business by buying or receiving transfers of NPLs and NPAs from other financial institutions. 12. TS Asset Management Company Limited (TS AMC) operates an asset management business by receiving transfer of NPLs and NPAs from SCIB and TBANK.
Annual Report 2011 Thanachart Bank Public Company Limited
31
Supporting Business Group 1. Thanachart Management and Services Company Limite (TMS) provides services to the Group’s service staff. 2. Thanachart Broker Company Limited (TBROKE) pursues Thanachart Group’s hire purchase customers to insure their automobiles. TBROKE is also an automobile insurance broker of TNI. 3. Thanachart Training and Development Company Limited (TTD) organizes training activities for employees of member companies of Thanachart Group. 4. Thanachart Legal and Appraisal Company Limited (TLA) provides legal advisory services, contracts, litigation, legal enforcement, and appraisal of collateral. Presently, all of its assets and employees have already been transferred to TBANK and TLA under the process of liquidation. 5. SCIB Services Company Limited (SCIB Services) provides general services to TBANK and companies in the Group, such as janitor, security, delivery, car rental, car drivers, and outsourcing service.
Chart of Shareholding Structure of Thanachart Group As of December 31, 2011
Thanachart Capital Public Company Limited
Scotia Netherlands Holding B.V.
Commercial Banking Business
Asset Management Business
48.99% 50.96%
100.00%
Thanachart Bank Public Company Limited
NFS Asset Management Company Limited
83.44%
MAX Asset Management Company Limited
Supporting Business
Financial Business 100.00% Thanachart Securities Plc. Securities Business
100.00% Thanachart Management and Services Co., Ltd.
75.00% Thanachart Fund Management Co., Ltd.
100.00%
100.00% Thanachart Insurance Co., Ltd.
100.00% Thanachart Life Assurance Co., Ltd.
Insurance Business
Thanachart Broker Co., Ltd. 100.00%
100.00%
Thanachart Training and Development Co., Ltd. 100.00%
Siam City Life Assurance Co., Ltd. 100.00% Asset Management Business
100.00%
TS Asset Management Co., Ltd.
100.00%
SCIB Services Co., Ltd.
100.00% Thanachart Group Leasing Co., Ltd.
Leasing Business
65.18% Ratchthani Leasing Plc.
Note: 1. The above shareholdings include shares held by the related parties.
32
Thanachart Legal and Appraisal Co., Ltd.
2. TLA is in the process of entering into the dissolution and liquidation.
Annual Report 2011 Thanachart Bank Public Company Limited
National Leasing Co., Ltd.
Policy on Division of Operational Functions among Member Companies of Thanachart Group Being a parent company of Thanachart Financial Conglomerate with a controlling interest (i.e. owning more than 50 percent of issued and paid-up capital), TCAP has adopted the following policies and approaches in managing the member companies of the Group as follows:
electronic services, administration and procurement, legal and appraisal services, as well as retail debt collections and collections brokerage.
Internal Control, Audit, and Corporate Governance of Parent Company and Subsidiaries Thanachart Group places strong emphasis on internal control. The Group adheres to the principle of
Business policies
adequate and appropriate internal control by establishing
procedures for business conducts, provision of services,
TCAP and TBANK are responsible for establishing
and operations. The Group also separates the duties and
annual key business policies of Thanachart Group. Each
responsibilities of each unit to allow internal examination
subsidiary is required to formulate business plans and
of each other, based on a check and balance system.
budgets for 3 - 5 years and submit them to the parent
In addition, it puts in writing the announcements as well as
company for consideration, in order to ensure that they
order mandates, rules and regulations covering key
are in alignment with the established key business policies.
business areas and operations, and this information was
The business plans and budgets are also subject to
also disclosed to all staff in such a way that they can
evaluation and review regularly. The objective is to ensure
always study them to gain a full understanding. A central
that the business plans and budgets are in line with
unit at TBANK is responsible for preparing and proposing
the changing business conditions.
the announcements, order mandates rules and regulations
Supervision of subsidiaries
of all member companies of the Group. As regard to the internal audit, the internal audit
The directors and high-ranking executives of TCAP
group is responsible for auditing the business operations of
and TBANK are assigned to be the members of the Board
all member companies of the Group, ensuring that they
of Directors of the subsidiaries. The arrangement not only
comply with the regulations and the established work
enables TCAP and TBANK to assist the subsidiaries in
systems. The internal audit group also assesses an
establishing their policies and in determining their future
adequacy and effectiveness of an internal control system in
direction, but also ensures the close supervision of the
operations to ensure the use of resources and properties
subsidiaries’ business operations. Importantly, the Chief
and prevention or reduction of errors, damages in order to
Executive Officers of the subsidiaries are required to
propose corrective measures for improvement. In addition,
present a monthly performance report to the Executive
the Thanachart Group has established a Compliance Unit
Committee and the matters in the Executive Committee
responsible for closely monitoring changes of laws,
Meeting are then reported to the Board of Directors of
notifications, and orders related to the Group’s business
TBANK.
affairs and operations and disseminating the information to
the staff. The Compliance Unit is also responsible for
Centralizing of support services
ensuring that the conduct of business affairs of the
member companies of the Group is in compliance with the
It is a policy of the Thanachart Group to centralize
legal requirements.
specific functions of the support services into one company which, then, is responsible for providing such services
Moreover, the Audit Committee of each member
to all other member companies of the Group. The purpose
company of the Group is responsible for governing,
is to maximize benefits within the existing resources
controlling, and auditing their respective business
including expertise of operations staff and various
operations. The Audit Committee is also allowed to carry
information technologies, and to reduce staffing costs. The
out its duties and give its opinions in an independent
centralized support services available now within
manner of the management of each company. The purpose
Thanachart Group included information technology, human
is to ensure that internal control and audit systems are
resource, systems and internal regulatory development,
effective and that the financial statements are properly
internal audit, operation control, business control,
reviewed.
Annual Report 2011 Thanachart Bank Public Company Limited
33
As regard to the corporate governance, the Boards of Directors of TCAP and the companies in the Group place a strong emphasis on the good corporate governance both at the level of the Boards of Directors and the level of various Committees. Independent directors are appointed to the Boards of Directors and the Committees to provide effective checks and balances on the powers of executive directors. The established scope of responsibilities of the Boards of Directors and the Committees are also in line with the principles of good corporate governance. In addition, the Boards of Directors of the TCAP and the subsidiaries have established the corporate governance policy and the code of conduct which the directors, executives, and staff of the member companies of Thanachart Group are required to adhere to. Focus is
given to integrity, transparency, and avoidance of any conflict of interest.
Risk management TCAP ensured that the member companies of the Group analyze and assess various risks of their business operations and that the risks are properly managed in line with the guidelines given by the authorities. In addition, TCAP conducts an analysis of the key risks faced by the member companies of the Group which may need direct financial or management support from TCAP. The established risk management policy of the Thanachart Financial Conglomerate is in line with the guidelines given by the BOT.
Income structures of TBANK and its subsidiaries Income structures of TBANK and its subsidiaries based on the consolidated financial statements as of December
31, 2011, 2010 and 2009 are as follows;
A table of income structures of TBANK and its subsidiaries (the consolidated financial statements) Percentage of share held (inclusive of related parties)
Interest and dividend income Thanachart Bank Plc. Siam City Bank Plc. Thanachart Securities Plc. Thanachart Fund Management Co., Ltd.
2011 THB Million
2010
Percent
THB Million
2009
Percent
THB Million
Percent
29,351
63.48
21,318
50.73
20,282
61.21
99.98
12,996
28.11
12,186
29.00
-
-
100.00
121
0.26
76
0.18
104
0.31
75.00
5
0.01
2
0.01
2
-
Thanachart Insurance Co., Ltd.
100.00
93
0.20
56
0.13
68
0.21
Thanachart Life Assurance Co., Ltd.
100.00
710
1.54
589
1.40
384
1.16
Thanachart Group Leasing Co., Ltd.
100.00
112
0.24
206
0.49
356
1.07
65.18
175
0.38
-
-
-
-
TS Asset Management Co., Ltd.
100.00
264
0.57
-
-
-
-
Thanachart Broker Co., Ltd.
100.00
1
-
1
-
-
-
Thanachart Management and Services Co., Ltd.
100.00
-
-
-
-
-
-
Thanachart Law and Appraisal Co., Ltd.
100.00
-
-
-
-
-
-
Thanachart Training and Development Co., Ltd.
100.00
-
-
-
-
-
-
-
-
-
86
0.20
271
0.82
100.00
2
-
3
0.01
3
0.01
-
-
-
25
0.06
-
-
100.00
382
0.83
228
0.54
-
-
-
2
-
5
0.01
-
-
100.00
-
-
-
-
-
-
44,214 95.62
34,781
82.76
21,470
64.79
Ratchthani Leasing Plc.
T Leasing Co., Ltd. National Leasing Co., Ltd. Siam City Securities Co., Ltd. Siam City Life Assurance Co., Ltd. Siam City Asset Management Co., Ltd. SCIB Services Co., Ltd. Total interest and dividend income
34
Consolidated financial statements
Annual Report 2011 Thanachart Bank Public Company Limited
A table of income structures of TBANK and its subsidiaries (the consolidated financial statements) (Cont’) Percentage of share held (inclusive of related parties)
Interest Expense Thanachart Bank Plc.
Consolidated financial statements 2011 THB Million
2010
Percent
THB Million
2009
Percent
THB Million
Percent
14,298
30.92
7,329
17.44
6,734
20.33
99.98
5,475
11.84
4,233
10.08
-
-
100.00
5
0.01
2
-
1
-
75.00
-
-
-
-
-
-
Thanachart Insurance Co., Ltd.
100.00
-
-
-
-
-
-
Thanachart Life Assurance Co., Ltd.
100.00
-
-
-
-
-
-
Thanachart Group Leasing Co., Ltd.
100.00
-
-
-
-
-
-
65.18
20
0.04
-
-
-
-
TS Asset Management Co., Ltd.
100.00
-
-
-
-
-
-
Thanachart Broker Co., Ltd.
100.00
-
-
-
-
-
-
Thanachart Management and Services Co., Ltd.
100.00
-
-
-
-
-
-
Thanachart Law and Appraisal Co., Ltd.
100.00
-
-
-
-
-
-
Thanachart Training and Development Co., Ltd.
100.00
-
-
-
-
-
-
-
-
-
-
-
-
-
100.00
-
-
-
-
1
-
-
-
-
2
-
-
-
100.00
-
-
-
-
-
-
-
-
-
-
-
-
-
100.00
-
-
-
-
-
-
Total interest expense
19,798 42.81
11,566
27.52
6,736
20.33
Net interest and dividend income
24,416 52.81
23,215
55.24
14,734
44.46
Non-interest income
4,703
10.17
2,715
6.46
2,393
7.22
99.98
1,681
3.63
2,296
5.46
-
-
100.00
1,267
2.74
1,302
3.10
1,027
3.10 1.32
Siam City Bank Plc. Thanachart Securities Plc. Thanachart Fund Management Co., Ltd.
Ratchthani Leasing Plc.
T Leasing Co., Ltd. National Leasing Co., Ltd. Siam City Securities Co., Ltd. Siam City Life Assurance Co., Ltd. Siam City Asset Management Co., Ltd. SCIB Services Co., Ltd.
Thanachart Bank Plc. Siam City Bank Plc. Thanachart Securities Plc.
75.00
444
0.96
479
1.14
437
Thanachart Insurance Co., Ltd.
100.00
3,938
8.52
3,085
7.34
2,672
8.07
Thanachart Life Assurance Co., Ltd.
100.00
7,205
15.58
5,828
13.87
11,637
35.12
Thanachart Group Leasing Co., Ltd.
100.00
65
0.14
83
0.20
96
0.29
65.18
22
0.05
-
-
-
-
TS Asset Management Co., Ltd.
100.00
32
0.07
-
-
-
-
Thanachart Broker Co., Ltd.
100.00
60
0.13
56
0.13
57
0.17
Thanachart Management and Services Co., Ltd.
100.00
1
-
1
-
1
-
Thanachart Law and Appraisal Co., Ltd.
100.00
-
-
14
0.03
43
0.13
Thanachart Training and Development Co., Ltd.
100.00
-
-
-
-
-
-
-
-
-
11
0.03
37
0.11
Thanachart Fund Management Co., Ltd.
Ratchthani Leasing Plc.
T Leasing Co., Ltd. National Leasing Co., Ltd. Siam City Securities Co., Ltd. Siam City Life Assurance Co., Ltd. Siam City Asset Management Co., Ltd. SCIB Services Co., Ltd. Total non-interest income
100.00
-
-
1
-
3
0.01
-
110
0.24
235
0.56
-
-
100.00
2,255
4.88
2,637
6.28
-
-
-
32
0.07
65
0.15
-
-
100.00
5
0.01
2
0.01
-
-
21,820 47.19
18,810
44.76
18,403
55.54
46,236 100.0
42,025
100.0
33,137
100.0
Total interest and dividend income and non-interest income
Annual Report 2011 Thanachart Bank Public Company Limited
35
Income structures of TBANK based on separated financial statements for the year ended December 31, 2011, 2010 and 2009 were as follows;
A table of income structures of TBANK (the separated financial statements) The separated financial statement 2011 THB Million
2010
Percent
2009
THB Million
Percent
THB Million
Percent
Interest and dividend income
29,548 134.97
21,397
118.27
20,421
128.55
Interest expenses
14,959
68.33
7,375
40.77
7,863
49.50
Net interest and dividend income
14,589
66.64
14,022
77.50
12,558
79.05
Non-interest income
7,304
33.36
4,070
22.50
3,328
20.95
100.0 15,886
100.0
Total interest and dividend income and non-interest income
21,893
100.0 18,092
Nature of Business Operation of Each Business Group
Business Policy and Strategies of Thanachart Group In 2011, Thanachart Group has determined its strategic direction to become a fully integrated financial services group capable of offering a full range of quality products and services that cater to the financial needs of the customers in an efficient manner. To achieve this goal, Thanachart Group has set up its vision “Becoming a fully integrated financial services group; aiming at creating an excellence in our services and product development, so as to satisfy our customers’ financial needs, with the cooperation and unity of all the members of the Group.” Such vision was developed from three major fundamentals which are providing fully integrated financial services (Universal Banking) with TBANK being the main services offering; focusing on satisfying of our customers’ different needs (Customer Centric); and cooperating from all departments wholeheartedly to provide excellent service to customers (Synergy). The endeavor and accomplishment from the three major fundamentals not only allowed Thanachart Group to be
a fully integrated financial services group with highly successful in competition, but also is a key to drive Thanachart Group to become one of Thailand’s leading banks over the next three to five years. From our goal to become a fully integrated financial services group, Thanachart Group aims to become one of Thailand’s top five leading banks in the commercial banking industry. A result from merging with SCIB allows Thanachart Group to possess an asset size appropriate for business competition and gain an ability to diversify risks by expanding corporate loans to small-sized and medium-sized enterprises so as to provide varieties of alternatives to customers. Moreover, synergy of Customer Experience Management and Sale and Service Model system from Scotiabank enables Thanachart Group to offer a superior experience by providing the best services to fully satisfy financial needs of our customers as well as creating financial performance at the level equivalent to that of Commercial Bank industry’s average. Besides that, Thanachart Group also puts an emphasis on diversification of income sources in order to balancing interest income and fee-based income, by focusing more on fee-based transactions and cross-selling transactions. These aims have been communicated to all of our staff. In 2011, the Thanachart Group has set six Strategic Intents as follows:
36
Annual Report 2011 Thanachart Bank Public Company Limited
1. We intended to provide our customers with a superior experience by offering the best service and a total financial solution to their unique needs. 2. We intended to be the dominant market leader for Hire Purchase Business. 3. We intended to aggressively grow the housing loan portfolio to be the top-three in market share of the Commercial Banking Industry. 4. We intended to grow the loan portfolio (corporate and SME) higher than industry average. 5. We intended to increase the fee-based income proportion to be on par with industrial average. 6. We intended to enhance our services and support productivity with cost effectiveness. The above six Strategic Intents were communicated to all staffs at all levels so that they all shared a mutual objectives consistent with visions and strategic objectives of the Thanachart Group. In order that the strategies were in alignment, efficiently evaluated and able to manage the organization systematically, Thanachart Group has developed
a plan namely “CEO’s Six-Point Agenda” which served as a tool to enhance the set target to be efficient and systematic success.
Business Operations of Each Business Group Commercial Banking Business Characteristics of Products and Services
TBANK operated its businesses in compliance with the Financial Institutions Business Act and other relevant notifications issued by the Bank of Thailand (BOT). It acts as a non-life and life insurance brokerage agent, an advisor and investment unit distributor for mutual funds, trustee services for mutual funds, custodian services for private funds, securities brokerage, securities trading, debt instrument trading, securities registrar, and a selling agent for gold derivatives. As of December 31, 2011, TBANK had a total of 676 branches (excluding the headquarters or Tonson branch), 2,151 ATMs (Automatic Teller Machines), 57 CDMs (Cash Deposit Machines), 135 Passbook Update Machines, and 79 foreign exchange booths (35 in-branches, 43 stand-alone and 1 mobile car).
Group of Products and Services TBANK improves and developes products to better serve various needs of our customers. Its four main products and services were as follows: Products and Services
Group 1 Deposit Products
Characteristics
Deposit products are offered to customers, both individuals and corporates. There are 4 major types of deposit products which
are saving deposit, fixed deposit, current deposit and foreign currency deposit.
Competitive Strategies
In 2011, the merger of TBANK and SCIB had been scheduled to complete by October 1, 2011. Therefore databases of the customers and deposits of both TBANK and SCIB must be combined into one
to serve customer’s need perfectly after the merger. To do so, all resources were used to develop information systems and other necessary systems to be able to complete the merger within the timeline. Because of that, TBANK did not focus its effort on launching any new product to the market. Moreover with the rising trend of interest rate, TBANK changed strategy by: 1. Emphasizing on expanding customer base to both small-sized and medium-sized. 2. Expanding customer base especially on saving deposit and current deposit by launching new saving deposit product “Corporate Saving Plus” to broaden customer base. Owing to the success of the merger, TBANK can successfully
serve more than three million customers of both TBANK and SCIB through our 676 branches nationwide without any interruption.
Annual Report 2011 Thanachart Bank Public Company Limited
37
Products and Services
Characteristics
Group 2 Lending
Competitive Strategies
1. Personal Loans, consist of:
Products
TBANK placed emphasis on efficient service delivery and fully integrated products that fulfill to all customer needs. As well,
Home loans under
marketing promotion, which is in line with the situation and
the brand of “TBANK Home
competitive condition, is highlighted. The Retail Banking Department is
Loan”, Multi-purposed loans
responsible for developing products, terms and conditions, as well as
named “Home Cash” and
interest rates charged. The target customers are divided into four
“Mortgage Cash”, Education
groups, i.e. customers who needed home loans, customers who needed
Loans called “Scholar Loan”,
personal loans with houses as collateral, hire purchase customers with
Wish-list loans which are
good repayment records and customers who need to study further in
credit lines given to the
a higher level of education. The main distribution channel is personal
hire purchase customers
sales and marketing teams that are responsible for the sales target set
with good repayment records,
in the business plan. Moreover, branches are channels to advertise
new products of Credit
personal loans or new products to the customers.
Card under the name of
Thanachart “Drive Visa/
Master Card” given to the
hire purchase customers
with
repayment
records and the depositors.
good
2. Automobile SMEs
TBANK places emphasis on lending to car related entrepreneurs.
TBANK offeres this
The plan is set together between the Product Development team and
product to car related
Marketing team. Focus is given to a selection of the target customers,
entrepreneurs who have
with whom TBANK has their database and good relationships. Also,
short-term financial needs
TBANK continues placing an emphasis on promoting good relationships
with the proceeds of the
with its customers by providing the customers with advices on financial
loans to be used as their
and business planning. This is for maintaining the TBANK’s existing
working capital or for
customers. TBANK continues developing loan products that in
enhancing their liquidity
corporate other financial services, ensuring that the customers have
position as well as those
the credit line and products that matched their financial needs as
who have long-term financial
well as the financial structure that were appropriate to their business
needs with the proceeds of
operations. Loan approval authority was delegated by making use
the loans to be used for
of the credit scoring techniques as a main tool for screening and
business
or
approving applications for standard loan products. The main
reducing funding cost.
expansion
distribution channels were in Bangkok and its vicinity and in the
These included guarantee/
upcountry.
avals and trade finance.
38
Annual Report 2011 Thanachart Bank Public Company Limited
Products and Services
Characteristics
Competitive Strategies
3. Corporate Loans
In 2011, TBANK concentrates on maintaining its existing customer
In 2011, TBANK
base for SME customers by launching products for those with good
classifies its corporate
repayment records and also allowing loosen schemes for customers
finance customers into two
who are affected by flooding crisis. For corporate loan customers,
major groups as follows;
TBANK places an emphasis on lending programs that match their
1.)Large scale businesses
financial needs. Apart from the products, TBANK places an emphasis
which are those of annual
on improving work processes in order to be more efficient, yet flexible
sales revenue of over THB
while having a proper Internal control and a proper risk management
600 million; and 2.) Small-
system.
sized and Medium-sized
enterprises (SMEs) which
include
of
customers with annual
sales revenue of less than
THB 600 million.
the
group
4. Automobile Hire Purchase Loans
TBANK’s hire purchase loan services are provided across the country through car dealers and TBANK’s branches. In setting the
TBANK give hire
policy to offer a price, the Bank considers external factors such as
purchase loans for new and
a competition in the market and internal factors such as cost of fund
used cars. The Bank also
and loan risk. In addition, TBANK places an emphasis on sales
offeres sale and lease back
promotion activities with car dealers in each region, aiming to offer
services under the product
high purchase loan conditions that meet the need of regional dealers
named “Cash Your Car”.
and customers the most, as well as establishing relationships with the
This product is in response
automobile manufacturers in order to gain a larger market share of the
to hire purchase customers
automobile hire purchase business and promote the image of a leading
who need cash, with a
loan provider of automobile hire purchase. TBANK increases
selling point of higher
distribution channels, providing customer’s convenience by offering the
credit line than a personal
“Cash Your Car” product through TBANK branches.
loan, lower interest rate and
longer
period
of
installment payment than a personal loan. Customers are able to choose the period of payment and installment plan at the most suitable for them.
Annual Report 2011 Thanachart Bank Public Company Limited
39
Products and Services
Characteristics
Competitive Strategies
5. Trade Finance
The main factors that promote trade finance services to
TBANK provides a
customers are accuracy in services, convenience, competitive interest
full range of trade finance
rate and fees. The Bank took into consideration the customers’ needs
products
services
and the promotion of business transactions as the main concerns. For
including Import Letter of
the corporate clients, the Bank has the target to expand customer base
Credit (L/C), Trust Receipt,
to large scale businesses and SMEs. The Bank provides trade finance
Collection Agency of D/P
credit limit, liquidity supports, and specialist advices on trade finance
and D/A for oversea buyers,
documents for customers. TBANK also developes trade finance
Packing Credit, Export Bills
products and services to cater to customer needs. The global business
Purchased/ Discounted,
alliance network is useful for fast and convenience service which
Export Bills for Collection,
provides customers’ satisfactory on the Bank’s products and services.
and
Letter of Guarantee, Stand-
by L/C, and Oversea Money
Transfer.
6. Personal Loans TBANK
Products under unsecured personal loans defined competitive
provides
strategies on product development, marketing campaign, distribution
many types of unsecured
channel, and appropriate services to serve target customers’ needs.
personal
be
Thus TBANK provides a variety of products for customers to choose
accessible and responsive
appropriately by life stage and life style, These products have been
to cover a wide range of
designed in such a way that are easily understandable and practical
customer needs, therefore
for every day needs.
loans.
To
the purpose of loans may
or may not be specified.
Main competitive strategies of each product
TBANK’s personal loans
1. Personal Loan
are
serves
under
the
product names as follows:
- T-Loan
T-Loan
2. Revolving Credit Card is
a
Providing cardholders with a credit line to spend for any
multi-purpose loan providing
purposes. Customers can withdraw cash within a credit line as per
for general customers. The
their needs at ATM worldwide.
repayments are arranged in
3. Credit Card
equal installment monthly
and specified time.
needs for every purchase.
Wish-List loan
is an additional credit
line of loan provided to TBANK’s hire purchase customers who have good repayment record. - Special
for
Corporate Staff TBANK provides this loan specifically to customers whose companies have
a
campaign
Emphasizing on everyday needs of cardholders with simplified
and practical use of he card. Cardholders received benefits as per their
- Wish-List loan
with
TBANK
40
Providing a variety of product to carter to customer needs in
each group that fit their purposes.
Annual Report 2011 Thanachart Bank Public Company Limited
Products and Services
Characteristics
Competitive Strategies
- Scholar Loan
Scholar loan is
a loan for payment of tuition or any expenses for obtaining a master ’s or doctorate degree. - P e n s i o n
Secured Loan This is a special multi-purpose loan for government
employees
who receive monthly pension payment from the Comptroller
G e n e r a l ’s
Department. 7. FLASH Card is a product
that
provides
cardholders with enhanced flexibility as it serves as a source
of
a
revolving
credit. FLASH Card places an emphasis on fast and convenience service which enables the cardholders to withdraw cash from ATMs worldwide. FLASH Card also allows the cardholders to pay the minimum amount in each collection period. 8. Credit Card Services This product provides the line of credit to purchase products/services as cash or allows cardholders to withdraw cash. TBANK, collaborates with VISA and MASTERCARD to provide credit card in multiple types suitable
to
customers’
qualifications and needs under the following names:
Annual Report 2011 Thanachart Bank Public Company Limited
41
Products and Services
Characteristics
Competitive Strategies
- T h a n a c h a t
“Drive” Credit Card :
For customers
who needed a credit card
with cash back for every
payment made at any gas
stations.
- T h a n a c h a t
Platinum Credit Card :
For customers
who are looking for exclusive
services
privilege
benefits in a view of luxury
and convenience.
and
Group 3
TBANK offers electronic
The strategy focuses on cross-selling and up-selling via bank
Electronic
products and services that
branches to both small and large scale companies. For individual
Products
enabled customers to make
customers who needed convenient transaction and safety for money
and Services
financial transactions at a
transfer, TBANK initiates the promotion campaign aiming at easy
better efficient manner.
accessibility and services. The money can be received on the same day
These services included
of a transfer. Branches have been available in shopping centers or
fund transfer, Automatic
nearby office areas for customers’ convenience.
Transfer Service (ATS),
online
In 2011, TBANK offered services as follows:
financial transactions through
1. Internet Banking Service. This service was for both individual
the Bank of Thailand’s
and corporate customers in order to broaden channels for customers to
Automatic High-Volume
facilitate their financial transactions.
Tr a n s a c t i o n
(BAHTNET),
settlement
for
Network
2. Financial Transaction Notification via SMS service. This 24-hour
automatic
service notified all transactions i.e. deposit, withdrawal and money
money transfers between
transfer via SMS to the customers’ mobile phone number registered
banks
with the Bank.
System),
Payment
3. An exclusive Cash Back Debit Card. The value of this service
service for goods and
was that customers receive cash back directly into their accounts for
services and a debit card.
every spending. The EMV technology provided an ultimate security to
To meet the customer
protect a card from data stealing.
needs, the Bank has also
developed
system through the Internet,
which are as follows:
-
(Bulk Bill
the
Payment
service
Thanachart i-Net
service -
Thanachart SMS
Alert service -
Cash Back Debit
Card
42
Annual Report 2011 Thanachart Bank Public Company Limited
Products and Services
Group 4 Other Products
Characteristics
Competitive Strategies
1. Foreign Exchange Services
TBANK has expanded its branch network and currency exchange booths to serve all business sectors and tourists nationwide. TBANK
TBANK’s services
also adjusts exchange rates by benchmarking with the movements of
include foreign exchange
the world’s currency market. As a result, its customers receives real
services in forms of; bank
time rates and fair prices.
traveler ’s
cheques, money changers,
forward foreign exchange
for international business
transaction, inward and
outward foreign currency
transfers for goods and
services, transfer for
personal accounts, account
opening for Foreign Currency
Deposit (FCD), etc.
notes
and
2. Bill of Exchange (B/E)
TBANK has developed B/E service to be safer and more convenient to enhance customers’ confidence by using a B/E passbook
TBANK has expanded its bill of exchange services
that allow customers to review transaction lists and outstanding of investments in each bills of exchange.
to every branch nationwide resulting in more convenient
TBANK also facilitates its customers by transferring payments of
accessibility to customers.
principal and interest when the B/E reaches its maturity or transferring
The product is well accepted
a payment of interest of each period automatically to the customers’
by the customers.
saving accounts or current accounts as stated in each purchase order.
Target customers are those depositors both individuals and corporates
who have financial literacy and experience in investing in debt
instruments and are able to accept a certain level of the Bank’s credit
risk.
3. Securities Business Support Services
Besides acquiring Foreign Sub Custodian license from the SEC in order to serve Thai Funds which invest overseas, in 2011, TBANK
TBANK’s securities
applied and was granted a Registrar license from the SEC to support
business support services
customers transferred from SCIB and to fully offer all range of services
are, for example, Custodian,
to meet customer needs. TBANK continues to develop business by
Trustee, Fund Supervisor and
utilizing the Bank’s network along with providing securities business
Bondholder Representative.
support services to support the financial management of investment funds.
Annual Report 2011 Thanachart Bank Public Company Limited
43
Influential Factors of Constraints on Business Operation
3) Strengthen
financial
infrastructure,
by
enhancing the capability and tools for risk management,
improving the information system for risk management,
The economic outlook for the first nine months of
reviewing the financial laws that support risk management,
2011 was likely to expand moderately, although it was
strengthen the information technology (IT) infrastructure
slow down in the second quarter as the production sector
and capacity, and enhancing the capacity of human
faced supply disruption problems following Tsunami
resources.
disaster in Japan. In addition, exports of goods and
services in Asian Region was decelerated due to
After the Bank of Thailand (BOT) has launched new
uncertainty growth of the global economy in the last
policies encouraging Thai commercial banks to gain
quarter of the year, resulting from real estate problems,
strength from 2010 to 2011, the year of 2012 would be the
unemployment problem in the U.S., and the European
phase of promoting competition. Accordingly, BOT has
sovereign debt crisis. Besides, Thailand faced the
granted permission for foreign bank branches to open two
widespread floods’ impact across the country, especially in
additional branches and allowed any existing foreign bank
the central region such as Ayutthaya and Patum Thani
branches in Thailand to step up as a subsidiary that could
provinces, in which seven industrial estates were located.
have a maximum of 20 branches and 20 off-premise ATMs.
The total damages were amounted to THB 1,300,000
Thai commercial banks, therefore, need to improve their
million approximately. These circumstances affected all
capability to withstand their market share and compete in
sectors, especially productions and exports of hard disk
the system.
drive, automobile, electronic bulbs and parts, and electric appliances.
Industry Condition and Competition
Consequently, the economic growth in the fourth
At the end of 2011, the total number of commercial
quarter was dramatically contracted compared to the
banks in industry registered at 31, of which 16 were
previous year, and was forecasted to grow at an annualized
domestically registered banks, and 15 were foreign bank’s
rate of 1.8 to 2.0 percent approximately. The expenditure
branches.
of the government’s investment budget was reduced
as the capital expenditure disbursement under the Thai
The outstanding amount of deposits in the
Khem Khang: TKK 2012 program was declined. However,
commercial banking industry at the end of 2011 stood at
private sector investment remained sound.
THB 7,990,823 million, of which THB 7,367,485 million or
92.2 percent of total deposits were at the domestically
Apart from economic factors, the commercial banks
registered banks, and THB 623,338 million or 7.8 percent
needed to divert to ensure that they are properly prepared
of total deposits were at foreign bank’s branches. The total
for entering the ASEAN Economic Community (AEC)’s 2015
deposits of domestic banks increased 6.69 percent from
Financial Sector Master Plan Phase II, implementing
the same period of the last year.
process between 2010 – 2014. This circumstance had
drawn plenty of attention and awareness from commercial
In terms of net loans of the commercial banking
banks during the past years. The Financial Sector Master
industry, the total amount was THB 9,782,193 million.
Plan phase II’s main policies could be categorized into
From the total net loans of industry, of which THB
three key pillars:
8,732,797 or 89.27 percent of total net loans came from
1) Reduce system-wide operating costs, including
domestic banks and THB 1,049,396 or 10.73 of total net
regulatory costs and costs of legacy non-performing
loans came from foreign bank’s branches. Comparing to
assets, in order to enhance the efficiency of financial
the previous year, the total net loans increased 11.63
institutions system.
percent due to a real growth of an economic sector of the
2) Promote competition and financial access by increasing of new service providers, as well as expanding business scope of existing service providers. This will
country. Besides the competition within the commercial
help induce competition in price and service quality, as well
banking industry, commercial banks also faced with other
as the opportunity for boarder financial access. Accordingly
competitions from non-bank institutions such as non-
the efficiency of overall economy will increase.
banks, financial and capital market, as well as the
44
Annual Report 2011 Thanachart Bank Public Company Limited
government’s specialized banks, resulted from changes in
leadership of hire purchase industry, TBANK purchased and
the regulators’ rules and regulations. The changes allowed
held 65.81 percent of Ratchathani Leasing’s shares.
for more flexibility and prepared the industry for the
Ratchthani Leasing has a strong emphasis on commercial
financial liberalization in the future. The increase of
cars (trucks and taxi), second-hand cars, and large-sized
competitions has caused the commercial banks to increase
motorcycles (Big Bikes).
competitive advantages by developing differentiations, called non-price strategies. The strategies are as follow: developing a more diverse range of financial products to
Trends in Competition
meet the needs of specified customers (Customer
According to economic forecasts from domestic and
Segmentation), increasing more distribution channels to
international research houses and financial institutions,
cover potential customers across the nation such as
economic indicators signaled an improvement. In 2012,
increasing of branches in department stores, ATM booths,
the Thai economy is expected to grow at 4.5 to 5.5 percent
Electronic corner (ATM + CDM + UDP), etc., improving
from the previous year, driven mostly by economic
quality of service by using Customer Experience
restoration after the flood in 2011 which is expected to
Management, making a good impression on customers by
begin in the first quarter of 2012, as well as government
using Customer Data Analysis in order to offer suitable
stimulus policies employing various measures such as a
products and services that meet the customers’ needs, and
rice pledging scheme, increase in the minimum wage and
establishing business alliances and merger in the financial
corporate income tax reductions, and a low base of 2011
industry. The objectives are to provide customers with
economic figures. Yet, the weak of global economy
greater convenience and to cater to customers’ all financial
continues to be a major factor that could undermine Thai
needs. Moreover, the commercial banks placed a strong
economy and must be closely watched. As for the economy
emphasis on creating a corporate image through
of the United States, although the unemployment rate
advertising media, public relations, and an establishment
declined in the fourth quarter of 2011 yet it remained high,
of a greater corporate social responsibility. In addition to a
the real estate sector has not yet recovered, while public
competition in interest rate, non-price strategy would help
debts stood at high level. Meanwhile, the debts crisis in
commercial banks substantially to differentiate their
Europe, especially in Greece was ongoing and began to
competitive positioning leading to competitive advantages
spread into the financial sector of the Eurozone while no
in the future.
solid solution has been reached. These may be the key
factors to cause Thailand’s exports in 2012 to slow down.
Regarding the interest rate trend, the most recent
Nonetheless, the inflation rate in 2012 is estimated to be
meeting of the Monetary Policy Committee (MPC) on
similar to the previous year. The 2012 headline inflation is
November 30, 2011 presented a resolution to decrease
expected to be at 3.2 percent, caused by rising fuel prices
policy interest rate by 0.25 percent (from 3.50 percent to
and lower demand for commodities as a result of the
3.25 percent), which was the first reduction of policy
global market downturn while domestic production costs
interest rate of the year (since the beginning of the year
grow higher than minimum wage, higher transportation
2011, interest rate policy has been continuously risen, by
costs from levy to oil fund, and higher rice price from rice
1.50 percent). The causes were an increasing risk of
pledging scheme. Due to the continuous increase of the
the global economy downturn and the remaining weak
policy interest rate to 1.50 percent in 2011, it is therefore
confidence of private sector from the floods’ impact of 2011.
estimated that in 2012 BOT will adjust the policy interest
The Company’s Size Compared to Competitors In 2011, TBANK had accomplished in merger with
rate slightly. As BOT has promoted competition under the 2nd Phase of development plan which prepared for entering
Siam City Bank on October 1, 2011, allowing TBANK to
the AEC, it prompted Thai commercial banks to be more
enhance its potential and competitive edge. Presently,
enthusiastic and more competitive. The competition trend
TBANK have 676 branches in total. It had THB 886,060
in the Thai commercial banking industry in 2012 will be a
million in its total assets, increased by THB 12,857 million
service development under the Customer Centricity
from the previous year or 1.47 percent. The Bank’s ROAA
especially on Universal Banking and also the restructuring
was at 0.89 percent, ROAE was at 10.61 percent, total
of branches to serve customers more effectively which
loans were THB 635,220 million, increased by THB 28,367
enhances the Fee Based Income and increase efficiency of
million or 4.67 percent from 2010. In addition, the Bank
the services such as Internet Banking and Mobile Banking.
had 2,151 ATM booths. Moreover, to maintain market
Moreover, the quality improvement and business service in
Annual Report 2011 Thanachart Bank Public Company Limited
45
Trade Finance and Cash Management will also build the banks’ interest this year. Building the Strategic Alliances
Securities Business
with other businesses to expand the network and
Products and Services
extending business potentials will also allow the
commercial banks to better serve their target customer
TNS operates two key areas of business, brokerage
versatile. The strategy should also be complemented by
business and investment banking and advisory business.
the Bundling Product and Cross-selling within the bank’s
As of December 31, 2011, the company had a total of 36
own business group such as the Bancassurance in the life
branches and offered the following services:
assurance and insurance businesses.
1. Brokerage Business covers brokerage services
For risk factors in 2012, the global economic
which included a service of securities dealing, securities
recovery is a critical issue that must be monitored closely,
trading, and giving investment advices to investors
especially the economic recovery in the U.S. where its
whether individual, retail, institutional, local or foreign, to
labor market got a better signal at the end of 2011 and the
make decision on their investment.
public debt issue in Europe is intensifying and extending to other countries’ economies. France, Italy and Spain will
2. Derivative Business covers trading services for future contracts and derivatives.
therefore need to exercise strict Fiscal Consolidation while
3. Securities Borrowing and Lending (SBL) covers
they are still lack of solid measures to solve this problem.
services of borrowing or lending securities for customers
Not only economic problems in the U.S. and Europe, the
who has a desire to borrow or lend securities.
Asian economies that are tied to the global economy,
4. Investment Advisory covers services of seeking
especially on the export sector, started to slow down at the
or issuing new financial products, whether local or foreign,
end of the year. Furthermore, political uncertainty in
in order to satisfy the customers’ needs. This also includes
Thailand and performance of government in the fourth
providing customers with investment planning and
quarter of 2011, along with unclear guidelines for
investment diversification by prioritizing customer’s
sustainable water management to prevent the flood in the
suitability and investment objectives for each customer.
long run may affect the confidence of consumers and
Such investment covers various types of instruments.
investors in both inside and outside the country.
Products of Securities Business and Fund Management Business
5. Investment Unit Dealer covers services of sale support and provided fund facts and related information on mutual funds of various asset management companies that TNS represents. 6. Financial Advisory and Securities Underwriting
Securities Business is provided to customers
Services covered financial advisory business, underwriting
through TNS. The company was granted a full license to
service of debt and equity securities both as a role of lead
operate a full range of securities businesses including
underwriter, co-underwriter, and dealer.
securities brokerage (inside and outside Thailand),
7. Securities Registrar covers three types of
securities underwriting, investment advisory service,
services, namely, a securities issuance registrar, securities
securities borrowing and lending service, financial advisory
holder registrar and a registrar for the Employee Stock
service, mutual fund management, private fund
Option Program (ESOP).
management, venture capital management, securities
registrar, and derivatives business Sor 1. Also, the
Competition and Market Outlook
company is engaged in other related businesses that
supported the securities business. As for Fund
1. Brokerage business in 2011 was relatively
Management Business, this service is provided through
volatile, especially in the second half of the year. The stock
TFUND who operates mutual funds, private funds,
market in August 2011 reached its peak level in 15 years
provident fund management businesses and investment
at 1,148 points and later in September 2011 dropped
advisory businesses.
sharply due to a number of negative factors, both domestic
and international such as economic disruption due to
the flood and the debts crisis in euro-zone economies, especially in the PIIGS. In 2011, trading volume reached THB 7.19 trillion, the highest volume since 1975. Retail client transactions captured the highest volume at 55
46
Annual Report 2011 Thanachart Bank Public Company Limited
percent of the market while foreign clients’ transactions
business sector, therefore, become more popular among
returned to a net sales value of THB 5,290.42 million. In
financial institutions who try to enhance their service
terms of mobilization of the number of initial public
potential in the future. Beside domestic competitors, there
offering (IPO) in 2011, there were a total of 12 new IPOs
is competition from foreign private banks, which focus on
(5 companies in SET and 7 companies in MAI). In 2011,
offering investment alternatives in various types of
the SET index closed at 1,025.32 points, 7.44 points lower
instruments in order to create a satisfactory return to
than 2010 while the average daily trading volume was at
major customers in Thailand.
THB 29,473.29 million, the highest volume for SET and the
4. In financial advisory and securities underwriting
second highest behind Singapore Securities. TNS
services, competition was aggressive, especially in
developed new financial products such as the SBL products
mergers & acquisitions, IPOs and fund raising. Though
for trading of foreign securities (offshore securities), so
competition focuses on price, the key competitive factor,
that investors can diversify the risks of investing in a full
thus, remains on service quality, expertise on providing a
range of securities. TNS’s total trading value in 2011 was
customer with relevant advice and solutions to a problem,
THB 553,069.59 million, accounted for 4.43 percent
having a wide network, as well as product innovation,
market share, ranked number 10 out of 35 companies in
which can create value-added and greater benefits to
the industry.
customers of TNS.
2. Currently, there are a total of 41 members in the Thailand Future Exchange (TFEX), of which 36 are general securities companies and 6 are gold-trading
Fund Management Business
members. In 2011, total trading volume was 10,027,116
Products and Service
contracts, or a daily average of 41,145 contracts, an
increase of 120 percent from a daily average of 18,676
TFUND put importance and emphasis on a great
contracts in 2010. As of December 30, 2011, there were
range of retail mutual funds marketing strategies, in order
56,452 outright contracts, a decrease of 28 percent from
to fully cover all needs of investors in every group and
77,955 outright contracts in 2010. The key contributing
level. The company utilized many types of distribution
factor was the popularity of Gold Futures trading which
channels for sales, such as TBANK’s branches and other
almost tripled in trading volume from 971,423 contracts in
investment unit distributors licensed by SEC. The TFUND’s
2010 to 3,989,278 contracts in 2011, with a daily average
staffs are qualified by law and are strictly required to
of 16,350 contracts, valued at THB 11,037 million as the
adhere to related laws and regulations. For greater
gold price has continued to rise to a peak of over USD
convenience, TBANK, acting as investment unit distributor,
1,900 per ounce in the third quarter, as a consequence of
has been supporting sale and redemption of investment
volatility of gold prices in conjunction with the extension of
units offered by TFUND as well as other investment
TFEX’s trading hours to 10.30 pm. since June 2010
management companies it represents through electronic
onwards. TNS trading volume accounted for 2.52 percent
channels.
market share, ranking number 18 out of all members in TFEX.
Competition and Market Outlook
In 2011 there were 62,883 TFEX trading accounts,
an increase of 50 percent from 41,880 accounts in 2010.
As of December 30, 2011, there were a total of
The proportions of the most active investors were domestic
23 fund management companies, with total assets under
individual investors which accounted for 60 percent of the
management of THB 1,750,824.95 million (excluding
market while foreign investors accounted for 33.6 percent
Vayupak Fund, Foreign Funds, Property Fund for Resolving
and domestic institutional investors accounted for 6.4
Financial Institution Problem and Property and Loan Fund),
percent respectively.
an increase of 2.75 percent from 2010. During 2011, there
3. Currently, an investment advisory service is
were 692 newly issued funds, accounting for THB
being offered only by the top-rank securities companies
1,086,169.61 million of net assets. Among the newly
and the large commercial banks which try to offer
issued funds, 228 were domestic and foreign investment
customers with complete and more integrated financial
funds fixed-income funds investing in debt securities with
services. The current major customers focus their priority
maturity not exceeding 1 year, which accounted for THB
on the allocation of investment and diversification of
536,033.50 million of net assets or 49.35 percent of total
financial products to get a better return on investment and
net assets of the newly issued funds during 2011.
to be more efficient in financial management. This
Annual Report 2011 Thanachart Bank Public Company Limited
47
As of December 30, 2011, TFUND had THB
into consideration a fair premium rate to customers.
96,350.78 million assets under management from which
Furthermore, the company constantly adjusted its
retail mutual funds accounted for THB 78,372.94 million,
progressive competitive strategy to be coherent with ever-
private funds accounted for THB 9,087.86 million, and
changing conditions, by ways of increasing sales channels,
provident funds accounted for THB 8,889.98 million.
expanding the customer base, and maintaining the existing
Insurance Business
customer base. As much as 95 percent of all customers are those with a policy claim limit not exceeding THB 5 million.
The customers mostly selected automobile and fire
The Insurance business of Thanachart Group can
insurance and these customers mainly are the Bank’s
be divided into two key areas, namely non-life insurance
lending customers as well as customers from the
operated by TNI, which offers all types of non-life
company’s marketing campaigns.
insurance services, and life insurance operated by TLIFE, which offers life insurance services to institutional, corporate and individual customers.
Non-Life Insurance Business
Products and Services
This service is only offered to domestic customers. The customer group with a policy claim limit of THB
5 million are mostly comprised of institutional customers, private enterprises that possess branch network, both in commerce and industrial sectors. A major portion of this customer group choose miscellaneous and fire insurances.
As aforementioned, it can be concluded that TNI has never
TNI offers all types of insurance services e.g. fire,
relied on any customer group that accounted for more than
automobile, marine, and miscellaneous. In addition, the company also operates investment businesses.
30 percent of TNI’s total revenue. According to Thai Reinsurance Public Company
Competition and Market Outlook
Limited, the Thai economy is expected to continue growing
after 2011, but less than the growth in 2011 due to the
In 2011, non-life insurance business in Thailand
impact of the flood crisis in Thailand and also the
experienced a growth in direct premium income compared
complexity and uncertainty of climate, economic, social,
to 2010, and was expected to grow by 10.6 percent but at
and political conditions. These are key variable factors
a decreasing rate as compared to 2010 which had a growth
determining the direction of the non-life insurance industry
rate of 13.7 percent, primarily due to the effect of the
in Thailand. If economic growth is in line with assumptions,
Tsunami in Japan in April 2011, resulting in a slowdown of
the insurance industry would likely to experience a
domestic automobile manufacturing. Moreover, the flood
moderate expansion of 10 percent in premium received or
crisis in Thailand in October 2011 also affected the entire
a total of THB 151,819 million. Miscellaneous insurance
economy as well as domestic automobile manufacturing
received the highest growth rate 17 percent, followed by
which, in turn, directly affected the non-life insurance business.
automobile insurance with 10 percent, marine &
transportation and fire insurance with 6 and 3 percent,
As for the non-life insurance market structure in
respectively.
2011, automobile insurance received the highest share of the market with a total share of 59 percent, followed by miscellaneous insurance with 32 percent, fire and marine & transportation insurance with 6 and 3 percent, respectively. In 2011, The Office of Insurance Commission (OIC)
Life Insurance Business
Products and Services TLIFE offers life insurance and saving, which can
issued stricter rules and regulations, especially on Risk-
be divided into two key categories, individual and group
Based Capital Requirement, minimum standards of risk
insurance. The license to operate the life insurance
management in non-life insurance businesses. To comply
business was granted by the Office of Insurance
with these rules, domestic non-life insurance companies
Commission (OIC) on 22 October 1997.
opted to emphasize on risk management and become more careful on insurance policy underwriting to avoid high risks.
Competition and Market Outlook
TNI focuses on a standard of products, service
TLIFE operates its business with a multi-distribution
quality, productivity, efficiency and honesty, as well as
channel strategy, in order to satisfy various needs of the
development of new products in order to offer new policies
customers by offering products and services suitable for
which are more coherent with economic and social
each customer group. The company has utilized various
conditions and responsive to customer needs, by taking
channels, such as, the bancassurance channel, corporate
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Annual Report 2011 Thanachart Bank Public Company Limited
network channels, insurance brokers, cooperatives, and
The Individual Life Insurance Product has a
other agents. TLIFE is customer centric, developing new
variety of products such as saving products and annuity
products and offering services suited to the needs of
products. The products with the highest sales figures are
customers and appropriate marketing channels. As TLIFE
as follow:
is a part of the Thanachart Group, the company’s
customers included savings deposit customers, automobile
Speedy Saving 10/2, it is a short-term savings
hire purchase customers, mortgage loan customers, SME
product with premiums due for only 2 years, yet providing
loan customers, as well as customers from other
10 years of life insurance coverage and a cash back policy
corporates, co-operatives and companies through other
at the end of the first year at the rate of 3 percent, and the
distribution channels.
second year to-10 that the rate of 6 percent, and on
maturity date at the end of the 10th year at a lump sum
In the 10-month period of 2011, the life insurance
rate of 200 percent, equivalent to a total cash return
industry captured a total market share of THB 263,317 million representing an increase of 12.12 percent. The main market sector went to individual and group insurance as follows:
benefit of 257 percent. Big Bonus 12/6, it is 12 years life insurance with premiums due for only 6 years with cash back policy for
the first to -fourth year at the rate of 8 percent, the fifth to
Individual insurance received a total premium of
-eighth year at 10 percent, the ninth to -twelfth year at
THB 221,246 million which accounted for 84.02 percent of
the rate of 12 percent, and on maturity at the end of the
the market and a 15.38 percent increase, due to new
12th year at a lump sum of 660 percent, equivalent to
product innovations which are more coherent with the
total cash return benefit of 780 percent.
economic trends, interest rates, target customers’ need
as well as sales promotions and marketing staff skills.
Thanachart Annuity 85/60 (Tax Deductible
Benefit) has premium payments until 59 years of age and
Group insurance received a total premium of THB
coverage period until 85 years of age. While providing
30,587 million which accounted for 11.62 percent of the
benefit of 12 percent annuity between 60-85 years of age,
market, yet, this represented a 3.20 percent decline. The
totaling 312 percent cash benefits with guaranteed annuity
main source of premiums, 53.59 percent, came from
over 20 years. For this plan, insurance premiums can be
Group Mortgage. In the 10-month period of 2011,
used for an income tax shield up to a maximum of THB
mortgage insurance experienced a declining growth at
300,000 per year.
15.02 percent due to a lack of tax incentives on property
transfer fees and mortgage registration fees to encourage
Thanachart Annuity 90/5 (Tax Deductible
consumers to complete housing transfers as in 2010.
Benefit) is a new life insurance products with a coverage
Moreover, the flood occurring in many areas during the
period until 90 years of age and a short period of premium
fourth quarter of 2011 has slowed consumer buying
payments of only 5 years with an annuity benefit of 12
decisions due primarily to the cost of flood evacuation and
percent between 60 to 90 years of age, totaling 372
provision for the cost of home repairs after the flood.
percent cash benefits. For this plan, insurance premiums
Meanwhile, consumers postponed their decisions to buy a
can be used for an income tax shield up to a maximum of
new housing in order to determine the locations safe from
THB 300,000 per year.
the flood. The cumulative 10-month of automobile market
reported sales volume of 713,842 units, 13.6 percent
Group Insurance provided appropriate products
increase compared to the same period of the previous
to each distribution channel, comprising of Thanachart
year. The passenger vehicle market saw a growth of 17.5
Smile Car Plus+ and Thanachart Smile Car Extra which
percent and the commercial vehicle market of 10.6 percent
cover all liabilities of car loans through car hire purchase,
due to strong purchasing power of consumers as well as
Thanachart Smile Home and Thanachart Smile Home Plus
growth in investment and consumption and the continuing
which cover all liabilities of home loans through mortgage
popularity of new vehicles for the first three quarters of
loan, Thanachart Smile SME which covers liabilities of SME
2011. However, the premium from auto hire purchase
loans for enterprises through SME loans. Moreover, the
loans may be subdued due to the impacts of the great
Company also provides group insurance for cooperatives,
flood on the domestic automobile industry.
other companies and organizations.
Currently, the life insurance industry consists of 24
There are many factors to support life insurance
insurance companies. In 2011, the company occupied a
business trend in 2012; to name a few are government’s
total premium of THB 5,791 million, or a 2.20 percent of
rehabilitation plan for the flood disaster in early 2012, Thai
the market share and ranked 10th in the industry.
people’s concern over uncertainty of natural disaster that
Annual Report 2011 Thanachart Bank Public Company Limited
49
motivated them to be aware of and give importance to life
through website of TNS and the other channels to reach
insurance in order to mitigate risk for themselves and their
the target customers as much as possible.
families. As a result, customers purchased more life insurances while insurance companies have developed new
Products and Services Management
policies of various life insurance products that are more consistent with the economic conditions and that expand
Sources of fund
distribution channels to meet customers’ needs. To provide
accessibility, a services provider system has been
One source of TBANK’s fund was the its capital,
developed, prior to and after sale service, training for
comprising of issued and paid-up capital in the amount of
insurance brokers and banks that are life insurance agents.
THB 55,137 million in 2011, including legal reserve and
In addition, the OIC has announced a policy to promote
retained earnings. Another two key sources of fund which
savings and awareness about savings through life
were;
insurance by giving an additional benefits of THB 200,000 income tax shield from life insurance annuities. A number of life insurance companies, therefore, have developed
1. Deposits which by the end of 2011 were in the amount of THB 436,040 million. 2. Borrowings which were in the amount of THB
a variety of life annuity policies to support the diverse
254,296 million, of which THB 218,492 million were short-
structure of the aging population targeting at those over
term B/E since TBANK provided B/E as another saving
60 year old, in order to get a regular income after
alternative for its customers and THB 35,804 million were
retirement. For the aforementioned, it is estimated that
long-term borrowings.
the life insurance business will continue its growth at increasing rate in 2012.
Assets Management Business
Funding or lending to related parties At the end of 2011, TBANK extended loans to
Products and Services
subsidiaries and related companies in Thanachart Group as
follows;
Assets Management Business operates by TS AMC Company Limited (TS AMC) which was established on
1. TGL (subsidiary of TBANK)
TBANK extended loans to TGL for hire purchase
March 3, 2011. The license to operate the assets
business for all types of automobile, in line with the
management business was granted by the BOT and under
business direction of Thanachart Group. In 2011, loan
the Emergency Decree on the Asset Management
outstanding balance was THB 353 million, a decrease from
Corporation BE 2543 (1998), the asset management
THB 934 million at the end of 2010.
company Registration No. 001/2554 dated April 12, 2011. It received the transfer of non-performing assets from
2. National Leasing (subsidiary of TGL)
TBANK extended loans to National Leasing for
SCIB and TBANK, including both non-performing loans and
property hire purchase business as well as property
non-performing assets, in order to conduct debt
leasing. In 2011, loan outstanding balance was THB 22
restructuring with the debtors, hence, allow them to repay
million, a decrease from THB 52 million at the end of 2010.
the debts at their real debt-service capacity and turning
3. Ratchthani Leasing (subsidiary of TBANK)
non-performing assets back to becoming the performing
ones.
TBANK extended loans to Ratchthani Leasing for
hire purchase business for all types of automobile, in line
Competition and Market Outlook TS AMC operates its business with a primary
with the business direction of Thanachart Group. In 2011, loan outstanding balance was THB 7,867 million. 4. TS AMC (subsidiary of TBANK)
TBANK extended loans to TS AMC for asset
objective to manage and restructure the non-performing
management business by receiving transfer and managing
assets received from SCIB and TBANK. To divest or sell
of NPLs and NPAs, in line with the business direction of
those non-performing assets (NPA) to third parties who are
Thanachart Group. In 2011, loan outstanding balance was
interested in real estate market, TS AMC hires a
THB 9,822 million.
professional advisory in assets sales to determine the
selling price and manage the assets in such a way that
Loan outstanding balance of Thanachart Group, as
creates the highest value. It also appoints a professional
aforementioned, totaled to THB 18,064 million, accounted
asset selling agent as well as collaborates with the related
for 2.84 percent of total loans at the end of 2011. All
group of companies to expand sales channels, such as
lending and borrowing activities were transacted under the
brokers or auction agents as well as cross-selling and
permission of the BOT.
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Annual Report 2011 Thanachart Bank Public Company Limited
RISK MANAGEMENT AND RISK FACTORS An Overview of the Risk Management Thai economy grew marginally by only 0.1 percent in 2011 compared to 7.8 percent of 2010, attributed to a combined effect of several risk factors including world economy slowdown, European sovereign debt crisis, Japan’s Tsunami disaster in the second quarter as well as the devastating floods in Thailand in the last quarter of the year which posed substantial impact on agricultural and industrial sectors in a large area. Consequently, export, private consumption, and private investment became contracted in the last quarter of the year. It is, however, forecasted that Thai economy will start to rebound by mid 2012. GDP will grow within a range of 5.5 to 6.5 percent, driven primarily by government’s flooddamage restoration measures and policies that stimulate domestic spending. Yet, there remain a number of risk factors such as uncertainty over the world economic crisis, fluctuation of capital flows, pressure from inflation, and the government’s minimum wage policy, which may adversly affect business operations. Caution must be given in business management in order to cope with uncertainties and to be ready to compete in the global arena, in particular in the year 2015 when Thailand will step into the ASEAN Economic Community (AEC). TBANK and Thanachart Group have realized the importance of risk management. In the year 2011, TBANK continually developed an Internal Capital Adequacy Assessment Process (ICCAP) to support risk other than credit risk, market risk and risk in compliance with Pillar 2 of Basel II framework, in accordance with the Bank of Thailand (BOT) guidelines, which will make TBANK manage funds more efficiently. The Board of Directors and executives of TBANK closely govern, monitor and develop the risk management system regularly to be sure that the measures are appropriate to and prompt on the ever-changing internal and external risk factors. To support the risk management system, TBANK strategically establishes a structure of the organization to support the operation under the direction and supervision of the various committees, as follow:
The Board and Committees at the Policy Level; TBANK’s Board of Directors and the Executive Committee has a role in policy determination and establishes guidelines for an efficient enterprise-wide risk management by taking into consideration the impact of risks on TBANK’s operational goal and financial position that has to be in line with its normal operation. Risk Management Committee plays a role in establishing strategic plans and developing the risk management procedure, as well as considering appropriate risk management policies and guidelines which will be proposed to the Executive Committee and the Bank’s Board of Directors for consideration and approval. Audit Committee has a role in determining the supervisory guidelines for the operation to comply with measures of related authorities as well as assessing the effectiveness and competency of the risk management process and internal control system.
The Committees at the Operation Level; Asset and Liability Management Committee plays a role in supervising the structure of the Bank’s assets and liabilities to be appropriate for characteristics of the business and in line with the Bank’s risk management policy. Investment Portfolio Committee plays a role in supervising investment in financial instruments of TBANK to be in line with the Bank’s market risk management policy. Credit Committee plays a role in supervising the credit lending and other credit-related transactions to be in line with the Bank’s credit risk management policy.
Annual Report 2011 Thanachart Bank Public Company Limited
51
IT Security Management Committee plays a role in establishing policies regarding the IT Security System, proposing preventive measures against risks arising from information and technology system, as well as monitoring, supervising and controlling the operation of the IT Security System in accordance with the proposed plan. Audit Division has a key role in (i) reviewing internal control system, risk management system, the conduct and disclosure of financial information, the operation, the report and supervisory procedures to govern practices in accordance with policies, work plans, rules and regulations of TBANK and its subsidiaries, official rules and regulations of relevant regulators and good corporate governance principle, and (ii) providing consult with other divisions for the sake of development and proper internal control of TBANK’s and subsidiaries’ system.
TBANK’s Risk Management Structure
As of December 31, 2011
Board of Directors
Risk Management Committee
Risk Management
Audit Committee
Executive Committee
Internal Audit
Compliance Risk Management Policy and Capital Market
Credit Analysis I & II
Chief Executive Officer and President
Asset and Liability Management Committee
Risk Control Investment Portfolio Committee
Deputy Chief Executive Officer Office of Executive Committee and CEO
Credit Committee
IT Security Management Committee
• The conduct of business affairs is under a system of check and balance with the Middle office, comprising of
the Risk Control Department and the Back Office, being separated from the Front Office. • TBANK would put in writing all the established policies and guidelines regarding the risk management that specifies responsibilities of related unit as the operational guidelines for the employees. Moreover, the Bank has established a four-step guideline for risk management comprising of; 1) identification of the characteristics of risk as well as risk factors, 2) development of appropriate tools and models for risk measurement, 3) the control of risks within acceptable limits and 4) the close monitoring of risk status in order to properly manage any possible risks in a timely manner. • The difference in size and risk ratios determined for each exposure allowed TBANK to be able to perceive the degree of severity from the possible risks. These risk variables could also be used as a ceiling or the acceptable risk level
as well as to provide warning signals before severe losses occur. The aforementioned risk management systems are developed based on prudent principles and will be reviewed regularly to suit prevailing situations. The systems are designed to be transparent, explicit examinable and to take into consideration the interests of shareholders, customers and staff of the Bank.
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Annual Report 2011 Thanachart Bank Public Company Limited
Key Risk Categories 1. Credit Risk Credit risk arises from a situation in which the debtors or counterparties fail to repay or fulfill their agreed obligations. This might be contributed by the fact that the debtor’s financial position is under distress due to volatilities of economic conditions that pose adverse impact on businesses or the debtors’ mismanagement, which as a result, may adversely affect TBANK and the subsidiaries’ earnings and capital. The credit risk may arise from ordinary financial transactions such as credit lending, financial obligations in the form of avals or guarantees, other transactions related to credit lending, as well as investment in debt instruments issued by state agencies or state enterprises with neither guarantee from government nor the BOT and private debt instruments such as debentures. Under its credit risk management policies and guidelines, TBANK has successfully established a credit culture. To start with, the credit risk of the borrowers, counterparties or issuers of debt instruments will be independently assessed by the model developed specifically to each type of borrowers or counterparties by the Credit Analysis Unit. At this juncture, authorized Credit Committee would then consider and determine the level of credit risk of borrowers or counterparties, appropriate credit lines and investment budget, as well as terms and conditions on loans or other obligations. The Committee also controls the overall risk status by appropriately diversifying credit risk into various business sectors and groups of customers within the established risk ceilings. In addition, the Committee closely monitors the quality of loans to ensure proper and vigilant management by emphasizing on business capability and repayment ability under the supervision of an independent risk control unit. Apart from the aforementioned units, there is also an Internal Audit Division to verify that the credit transactions are in compliance with the BOT’s guidelines. To ensure optimal returns under acceptable risk, TBANK has employed measuring tool called RAROC (Risk Adjusted Return on Capital) to reflect the appropriate level of capital. Moreover, the Bank also performed stress tests to estimate any damage that may occur during the crisis. Under this condition, the borrower’s ability to repay could erode or they could fail to make a repayment under terms and conditions stated in the hypothesized contract. The risk factors in the tests were assumed to affect the industry that the debtors’ business belonged to.
Important credit risk factors 1.1 Credit concentration risk TBANK aims to appropriately diversify its loans to various groups of customers, focusing on high potential customers and attempt to prevent concentration of loans to a particular group of customers. Under such goal, the TBANK pursues proper risk management on overall credit portfolios with close monitoring and comprehensive assessment to report to the assigned committees on a regular basis. The purpose is to mitigate exogenous risks that may adversely affect any particular group of business excessively financed by the Bank.
Annual Report 2011 Thanachart Bank Public Company Limited
53
Table of credit status As of December 31, 2011 compared to December 31, 2010 classified by business types was as follow:
Business type
2011 Debt balance (THB Million)
2010 Percent
Debt balance (THB Million)
Percent
Agricultural and mining
10,830
1.71
10,957
1.81
Manufacturing and commerce
81,967
12.90
97,384
16.05
Real estate and construction
47,972
7.55
52,406
8.64
Public utilities and service
58,441
9.20
66,047
10.88
Housing loans
73,636
11.59
77,636
12.79
2,236
0.35
2,683
0.44
286,361
45.08
239,611
39.48
73,777
11.62
60,127
9.91
635,220
100.00
Margin loans for securities business Hire purchase Others Total loans and accrued interest receivables
606,851 100.00
The overall credit data revealed that TBANK’s lending on hire purchase business grew moderately from 39.48 percent as of December 31, 2010 to 45.08 percent of total loans and accrued interest receivables as of December 31, 2011. Most of these hire purchase loans were provided to retail customers whose credit line was relatively small and with a large number of customers, such risk therefore was well diversified.
1.2 Risks from non-performing loans The non-performing loans are loans classified as substandard, doubtful and doubtful of loss. They have been
the major concerns across financial institutions due to their adverse effect on earnings and capital of TBANK and subsidiaries. At this juncture, TBANK has focused major efforts on controlling credit quality through appropriate policies and procedures to regularly monitor the quality of the loans.
Table of the NPLs Ratios As of December 31, 2011 compared with those of December 31, 2010 were as follow:
Loan classification Substandard
2011 Debt balance (THB Million)
2010 Percent
Debt balance (THB Million)
Percent
7,026
18.65
6,649
18.04
Doubtful
12,059
32.01
13,948
37.84
Doubtful of loss
18,592
49.34
16,262
44.12
Total
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Annual Report 2011 Thanachart Bank Public Company Limited
37,677 100.00
36,859 100.00
TBANK and subsidiaries’ non-performing loans increased from THB 36,859 million as of December 31, 2010 to THB 37,677 million as of December 31, 2010. From the credit overview, the non-performing loans were accountable for 5.93 percent of total loans and interest receivables, dropped from 6.07 percent as of December 31, 2010. The nonperforming loans could be classified by types of business as follow:
Table of Non-Performing Loans Classified by Type of Business
Type of Business Agricultural and mining Manufacturing and commerce
2011 Debt balance (THB Million)
2010 Debt balance (THB Million)
Percent
Percent
347
0.92
401
16,588
44.03
14,924
1.09 40.49
Real estate and construction
3,767
10.00
4,745
12.87
Public utilities and service
5,510
14.62
5,981
16.23
Housing loans
3,501
9.29
2,807
7.62
306
0.81
1,339
3.63
Margin loans for securities business Hire purchase
3,553
9.43
3,977
10.79
Others
4,105
10.90
2,685
7.28
36,859
100.00
Total loans and accrued interest receivables
37,677
100.00
As of December 31, 2011, TBANK and its subsidiaries, under the BOT’s supervision, had no credit risk from non-performing loans that collateral did not fully cover the remaining loan amounts after deducting provision for loan loss. This was due to the fact that 100 percent provision was allocated on such loans by the Bank in compliance with the International Accounting Standards No. 39 (IAS39).
Table of Non-Performing Loans
(Unit: THB Million)
2011
2010
Change
Non-performing loans (NPLs)
37,425
35,606
Loans not fully covered by collateral
19,585
19,184
401
Provision for loan loss
19,725
19,374
351
Loans not fully covered by collateral after loan loss provision
-
-
-
383
534
General provision for loan loss
1,819
(151)
Annual Report 2011 Thanachart Bank Public Company Limited
55
Table of Troubled Debt Restructuring
(Unit: THB Million)
2011
2010
Number of debtors (persons)
53,922
20,194
Outstanding principal and accrued interest receivables
38,816
28,230
Loans not fully covered by collateral
14,558
12,009
382
460
636,183
607,775
6.10%
4.64%
Revaluation allowance for debt restructuring Total loans and accrued interest receivables Restructured debts to total loans (percent)
The risk on debt restructuring arises from the re-entry of the substandard debtors, i.e. after the debt restructuring, the debtors again default on their repayments and hence re-enter the non-performing status. The problem poses adverse effects on debt-restructuring performance of TBANK and its subsidiaries. As of December 31, 2011, the outstanding principal and the accrued interest receivables of the restructured debt amounted to THB 38,816 million or 6.10 percent of total loans and accrued interest receivables. The net restructured debt (less collateral) amounted to approximately THB 14,558 million.
1.3 Risks from Collaterals For collateralized loans, TBANK carefully assess and classify quality of each type of collateral by taking into
account the liquidity and overall risk from that collateral. The assessment result is one of the important factors applied in the classification of each credit exposure. In this regard, the collateral, both in the form of immovable and movable whose value could be appraised, is subject to appraisal or valuation complying with the BOT’s regulation. TBANK significant types of collateral are deposits and bills of exchange, marketable equity securities, non-listed equity securities, commercial immoveable property, immovable property from housing, vehicles, machinery, etc. TBANK has determined guidelines, standards and frequency of appraisal and valuation of each type of collateral. Furthermore, a report of the appraisal and valuation is made which includes clear and sufficient data and analysis to determine the price. In the case that it cannot be specified whether the collateral price has decreased or declined over time, the impairment of the asset must be considered by an official. In the past years, automobile hire purchase loans of TBANK and its subsidiaries have continued to expand. According to the BOT notification regarding the valueless and non-callable assets dated December 2006, the regulations on provisioning based on IAS39 whereby cars whose ownership belongs to the Bank can be used as collateral. In the case of default, the Bank is eligible to immediately repossess to collateral for the purpose of reselling in the used car market. As a result, TBANK and its subsidiaries might be exposed to risk from the inability to repossess the cars or from recovering the incurred loss by reselling the assets. Such conditions depend on various risk factors, for instance, the conditions of the used car market and the repossessed car itself.
1.4 Risk from Guarantees and Avals Under the current customer service, TBANK and its subsidiaries are also obligated in forms of avals, letter of
credits and loan guarantees, which TBANK and its subsidiaries are held responsible for, should the customers are unable to fulfill their obligations. In managing such risk, TBANK carefully scrutinizes supporting information and applies strict approval procedures to these obligations. The close monitoring on these transactions is undertaken based on the same guideline used for its regular lending procedure of TBANK.
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Annual Report 2011 Thanachart Bank Public Company Limited
As of December 31, 2011, TBANK and its subsidiaries’ obligations in the form of avals and guarantees for loans amounted to THB 26,752 million or 3.02 percent of the total assets.
2. Market Risk The market risk arises from movements in interest rates, exchange rates and prices of instruments in money
market and capital market, which may adversely affect earnings and capital of TBANK and its subsidiaries. The market risk can be segmented into three categories including price risk, interest rate risk and exchange rate risk. At this juncture, TBANK’s policies are to control and manage these risks to remain at an appropriate level and inline with TBANK’s policy on risk management.
2.1 Price Risk Price risk arises when TBANK and its subsidiaries’ earnings or capital are adversely affected by changes in the
price of debt and equity instruments, causing the value of TBANK and its subsidiaries’ trading and available-for-sales investment portfolio to decline. TBANK has developed risk measurement tools based on the Value-at-Risk (VaR) model to estimate the maximum loss amount at a certain confidence level and over a given asset holding period. TBANK also determine the various limits of transactions in order to control risk to remain in as acceptable level, for example; Position Limit, Loss Limit and VaR Limit. The Risk Control Unit, separated from the front office and the back office, has the duty of risk control and reporting on the status of the limits to the Board of Directors, departments and executives associated to the risk management. In order to ensure the efficiency and accuracy of its tools for risk measurement, TBANK requires that the tools are subject to back-testing in accordance with the Bank of International Settlement (BIS) standards. Moreover, TBANK has conducted stress testing by formulating stress scenarios which can create extraordinary reduction in stock prices.
The test result could therefore shed light on the impact on TBANK earnings and required capital should such events occur. As of December 31, 2011, TBANK and its subsidiaries’ trading investments and available-for-sale securities classified by type of investment were as follow:
Table of trading investments and available-for-sale securities classified by type of investment Fair Value (THB Million) 2011
2010
Trading investments Government and state enterprise securities
10,479
45
Private debt securities
4,758
21
Foreign debt securities
637
3,023
38
80
15,912
3,169
Domestic marketable equity securities Total trading investments Available-for-sale investments Government and state enterprise securities
41,003
52,604
Private debt securities
18,533
10,064
Foreign debt securities
25,425
12,920
7,983
8,530
92,944
84,118
108,856
87,287
Domestic marketable equity securities Total available-for-sale investments Total trading and available-for-sale investments
Annual Report 2011 Thanachart Bank Public Company Limited
57
TBANK and its subsidiaries have invested more in debt securities, thus, the value of trading and available-forsale investments have increased. As a result, the price risk of TBANK and its subsidiaries are higher than the previous year.
2.2 Interest Rate Risk The interest rate risk is the risk that earnings or capital are adversely affected by changes in interest rates
that pose impact on its rate-sensitive items including assets and off-balance sheet items whose repricing periods are mismatched. These changes may have a negative impact on net interest income of TBANK and its subsidiaries. It is the goal of TBANK to run their business operations under a long-term effective interest rate risk management system. In other words, to maintain an appropriate structure of assets and liabilities which are rate-sensitive at different time intervals. To ensure maximum benefits of TBANK’s shareholders, TBANK has developed the Repricing Gap Analysis Model as a tool for measuring interest rate risk by assessing the impact that may arise from the mismatch of the repricing periods of assets, liabilities and obligations at different time intervals, which is used for risk measurement every month. In order to ensure that the risk of TBANK business operations is within an acceptable limit, they have also established an acceptable risk ceiling and an early warning risk level, taking into account the structure of assets, liabilities and obligations as well as interest rate repricing which are expected to take pace in each period of TBANK business plan. The Asset and Liability Management Committee (ALCO) is responsible for monitoring and controlling such risk very closely. To effectively design appropriate measures to accommodate the risks, the committee has to monitor economic conditions, development in the money market and capital market and the interest rate trend which could become important risk factors to the Bank’s rate-sensitive items. Details of financial assets and liabilities as of December 31, 2011, classified by the period when the interest rates would be repriced in accordance with contracts related to financial assets and liabilities of TBANK and its subsidiaries were as follow:
Table of Financial Assets and Liabilities (Unit: THB Million)
Items
Period of interest rate repricing or due date At call
0-3 months
3 - 12 months
1 - 5 years
Over 5 years
No interest
Total
Financial assets Cash Interbank and money market items
-
-
-
-
-
16,006
16,006
23,000
29,523
2,655
-
-
8,137
63,315
-
-
-
-
-
1,536
1,536
12
14,772
46,447
57,851
16,781
13,308 149,171
316,891
22,243
15,445 212,320
68,113
208 635,220
-
-
-
-
-
25
25
-
-
-
-
-
858
858
339,903
66,538
64,547 270,171
84,894
Derivatives Investments Loans Receivables from clearing house Receivables from purchase and sale securities and derivatives Total financial assets
40,078 866,131
Financial liabilities Cash
174,608
169,399
77,929
8,404
-
5,700 436,040
20,877
32,220
5,379
217
-
1,458
Liabilities payable on demand
-
-
-
-
-
2,131
2,131
Derivative liabilities
-
-
-
-
-
2,886
2,886
133,517 103,060
Interbank and money market items
Borrowings
999
60,151
16,700
21
-
-
-
-
-
306
306
-
-
-
-
-
851
851
196,484 335,136 186,368
25,321
21
Payables to clearing house
- 254,297
Payables from purchase and sale securities and derivatives Total financial liabilities
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Annual Report 2011 Thanachart Bank Public Company Limited
13,332 756,662
Based on the aforementioned structure of financial assets and liabilities, TBANK’s net interest income
in the next year would decrease should the market interest rate increase. This was mainly due to the expansion of TBANK’s hire purchase business with fixed-interest-rate feature.
2.3 Exchange Rate Risk The exchange rate risk is a risk that the earnings or capital of TBANK and its subsidiaries can be adversely affected by exchange rate fluctuations from transactions in foreign currencies, exchange rate exposures in their possession of assets or liabilities in foreign currencies. There are two types of exchange rate risk-risk from transactions in foreign currencies (Transaction Risk) and risk from exchanging foreign currency to local currency (Translation Risk). The ALCO is responsible for monitoring and controlling this type of risk through the consideration
in the proper matching between the structure and the maturity of assets and liabilities in foreign currencies. TBANK’s policy is to also rely on the VaR ceiling in order to control the impact of exchange rate movements on earnings and capital. Nevertheless, in order to avoid the exchange rate risk, TBANK has also relied on hedging instruments such as forward contracts. As of December 31, 2011, TBANK and its subsidiaries faced with relatively low exchange rate risk as most
of the assets in foreign currencies have been hedged by forward contracts.
3. Liquidity Risk Liquidity risk arises from the inability of TBANK and its subsidiaries to repay their debts or obligations upon the delivery date due to the lack of ability to convert assets into cash or to mobilize adequate funds or to mobilize funds at an acceptable cost. This could adversely affect the current and future earnings and capital of TBANK and its subsidiaries. The liquidity risk management mechanism starts with the assessment of the cash flows and liquidity position over particular time horizons of TBANK when the different levels of funds may be required to accommodate deposit withdrawal, reduce other types of the Bank’s liabilities or increase the Banks’s assets by using the Liquidity Gap Analysis. Various liquidity ratios and “What if” scenarios to evaluate the sufficiency of the cash flow liquidity depending on customer behavior in extending contracts upon maturity and estimate the need of liquidity in various “What if” scenarios depending on the economic climate and extraordinary situations that may happen to TBANK and the financial institution system. Meanwhile, TBANK and its subsidiaries developed an emergency plan in the case of a liquidity problem and there will be a revision of the significant occurrences that affect working operations. In this regard, TBANK and its subsidiaries have assigned ALCO, controlling and managing the liquidity risk with a weekly meeting to monitor and manage risk. The structure of TBANK’s capital fund could be classified by different type and maturity of source of funds
as follow:
Table of Capital Funds Classified by Source (Unit: THB Million)
2011 Deposits Domestic interbank and money market items Foreign interbank and money market items Borrowings Total
Percent
2010
Percent
436,040
58.10
532,656
70.27
50,851
6.78
33,251
4.39
9,300
1.24
7,294
0.96
254,297
33.88
174,949
23.38
750,488
100.00
748,150
100.00
Annual Report 2011 Thanachart Bank Public Company Limited
59
Table of Capital Fund Classified by Maturity (Unit: THB Million)
2011
Percent
2010
Percent
Less than 1 year
701,284
93.44
680,818
91.00
More than 1 year
49,204
6.56
67,332
9.00
750,488
100.00
748,150
100.00
Total
As of December 31, 2011, deposits and borrowings of TBANK and its subsidiaries amounted to THB 750,488 million, where sources of funds were mostly from public deposits with the maturity less than one year. This is considered
a common structure of the commercial banks. Nevertheless, TBANK and its subsidiaries also issued bills of exchange
and debentures in order to increase the saving alternatives for their customers. The financial assets and liabilities as of December 31, 2011 classified by maturity date were as follow:
Table of the Financial Assets and Liabilities (Unit: THB Million)
Items
The maturity date of financial instruments Less than More than 1 year 1 year
At call
Not specified
Total
Financial assets
Cash
Interbank and money market items
Derivatives
Investments
Loans
Receivables from clearing house
-
25
-
-
25
Receivables from purchase and sale securities and derivatives
-
858
-
-
858
Total financial assets
16,006
-
-
-
16,006
8,368
54,827
120
-
63,315
-
1,536
-
-
1,536
1
67,445
68,908
12,817 149,171
47,672 193,205
394,343
- 635,220
72,047 317,896 463,371
12,817 866,131
Financial liabilities
Cash
Interbank and money market items
Liabilities payable on demand
Derivative liabilities
Borrowings
Payables to clearing house
-
306
-
-
306
Payables from purchase and sale securities and derivatives
-
851
-
-
851
200,827 506,613
42,074
Total financial liabilities
176,616 249,835
9,589
- 436,040
21,081
35,306
3,764
-
60,151
2,131
-
-
-
2,131
-
2,886
-
-
2,886
999 217,447
28,721
7,130 254,297
7,130 756,662
Off-balance sheet items
Avals to bills and guarantees of loans
Obligation under unmatured import bills
Letter of credits
1
1,572
43
-
1,616 1,105
624
481
-
-
86
2,540
-
-
2,626
Other commitments
41,732
6,138
2,061
2
49,933
Total off-balance sheets
42,443
10,731
2,104
2
55,280
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Annual Report 2011 Thanachart Bank Public Company Limited
4. Operational Risk
aspect of data and technology. A particular focus is given
to the prevention of damages from unauthorized access to
The operational risk is the risk that arises
the Bank’s information.
from the damage that occurs from lack of good corporate
governance within the organization. Risk may also arise
• Formulate the Business Continuity Plan
from the inadequate efficiency of the internal audit and
which consists of an emergency plan, a plan for backup
internal control systems which could be relating to internal
systems and a business recovery plan to prevent
operation process, personnel, systems or external events.
disruption in business operation. In addition, the drills are
This also includes legal risks such as litigations,
essential to test for the readiness and to consistently
exploitation by the government and also damage from
improve the plans for its effective implementation.
settlements outside the courtroom. Such risks can pose adverse impact on other risks, especially strategic risk and
TBANK also employs the services of the third party to operate some group activities as per the direction
reputation risk.
of the work operations of financial institutions at present
TBANK
has
established
policies
and
and in the future. TBANK determines policies in order
guidelines to ensure the prevention and monitoring of this
to manage the risk that may occur from outsourcing.
type of risk. As the internal control system is an important
These policies have to also be subject to regulations
tool in controlling and preventing potential risk that may
of BOT and must be beneficial to the internal control
occur, TBANK has implemented an efficient internal control
of the Bank as well.
system as follow:
In the measurement and assessment
• Regarding the organization of the Bank’s
of operational risk, TBANK determines a principle, form
structure, TBANK has specified the roles, the scope of
or condition of the process used in the measurement and
duties and responsibilities for each position, based on a
assessment of risk in TBANK. In the determination of this
system of check and balance. The front office where all the
process, TBANK considers the circumstantial factors
transaction takes place is separated from the middle office,
such as supervising guidelines of the government units
comprised of the Risk Control Department and the back
associated with the Bank, state and complexity of
office who record all items in the transactions.
the business, the capability of the Bank in accepting risk,
probability, likelihood or frequency as well as the impact
• Establish the transaction-supporting units
or severity of risk that has happened or may happen.
which are independent and have expertise in their
As per BOT specification for commercial bank to maintain
respective fields of work such as information technology
the funds to risk-weighted assets in credit, market and
unit, legal and appraisal unit in order to prevent any
operation according to Basel II guidelines, TBANK has
possible errors that may arise
employed the Basic Indicator Approach to calculate
• Put operational procedures and regulations
operational risks.
related to all types of transaction, staff manuals as well as
In addition, to monitor operational risk,
the authority ranks for approval in writings as a guideline
TBANK determined a policy for executives of each
to set the same standards for all internal operations within
department to have the responsibility of monitoring the
the organization
risk and consider a part of their regular duties. This will
help promptly inform all of the risk and problems that
• Establish the Audit Committee and the Risk
occur and to respond to the changes in each time period in
Management Committee to control, monitor and assess the
an appropriate and timely manner, not damaging to the
risks of TBANK. The committees are responsible for
Bank. Nevertheless, to inform of the result of business
examining and correcting the pitfalls in order to create
operations and problems that occur, as well as trends and
soundness and efficiency in the Bank’s operation.
chages in information of risk factors, TBANK organized
a filing and reporting of the information associated with
• Improve the management of the information
operational risk management such as information on data
technology system and information security system in
loss, key risk indicatiors and important risk points to be
order to enhance its potential to accommodate business
continually and regularly reported to the Board of
expansion and gain credibility from the customers in the
Directors, the Risk Management Committee and the
Annual Report 2011 Thanachart Bank Public Company Limited
61
executives to use in the determination of policies,
7. Risk from Capital Inadequacy
to develop a sufficient risk management system and
to be a tool in aiding TBANK to evaluate the capability
and efficiency of the internal control system.
5. Strategic Risk
TBANK calculates its capital to cushion any possible risks, in accordance with Basel II criteria as follow:
• Credit risk by means of the Standardized This type of risk arises from the inappropriate
Approach
formulation of strategies, business planning and
implementation which are not compatible with internal setups and external environment, resulting in an adverse
• Market risk to explore status of market risk by means of the Standardized Approach
impact on earnings, capital or the existence of TBANK and
its subsidiaries. In managing the strategic risk, the formulation of strategies of TBANK will be considered over the three years ahead, with the review required annually
• Operational Risk by means of the Basic Indicator Approach
or in the case of an external event that may impact the
In addition, TBANK has assessed its future
achievement of the Bank’s business goals. The Executive
capital adequacy based on budget and 3-year business
Committee is responsible for regular monitoring and
plan. The risk calculated is capped with risk limit in which
evaluating the performance of the work units upon the
the Risk Management Division monthly reports the
established targets stated in the annual operation plan.
adequacy of capital to the Executive Committee and the
6. Regulatory Risk
Board of Directors to ensure that TBANK has sufficient capital after risk capital allocation to support sustainable business’ growth as planned.
The regulatory risk arises from amendments
or changes in regulations, laws or requirements of the
As of December 31, 2011, TBANK’s total
authorities especially the BOT. Changes in the authority’s
capital registered at THB 91,093 million of which THB
policy may affect the strategies and business operations
61,638 million was Tier I capital and THB 29,455 million
of TBANK and its subsidiaries.
was for Tier II. The BIS ratio amounted to 13.72 percent
which exceeded the BOT’s minimum requirement at 8.50 In 2011, most changes in regulations and
percent. This level of capital should be sufficient in
requirements from the related authorities have
accommodating any potential risks as well as the Bank’s
concentrated on the improvement of measures to promote
future business expansion.
corporate governance of financial institutions, more efficient risk management and improved consumer protection. These measures therefore posed no significant impact on the strategies and business operation of the Bank. And throughout, TBANK has constantly improved and developed the internal operation system as well as customer service standard. This has also been an important mission for the Bank that the business operation has to also comply with authorities’ rules and regulations.
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Annual Report 2011 Thanachart Bank Public Company Limited
CORPORATE SOCIAL RESPONSIBILITY (CSR) ACTIVITIES Corporate social responsibility Thanachart Group is an organization that adheres to the principles of corporate social responsibility both in its conduct of business affairs and its participation in other social activities. The objectives are to create sustainability and the well-being of society and people living in communities as well as to protect the environment. In addition, our employees are encouraged to participate in CSR-related activities.
CSR-in-Process This type of corporate social responsibility (CSR) focuses on conducting business affairs with responsibility towards society. In this connection, Thanachart Group has been embracing the principles of corporate social responsibility for a long time. We treat all our groups of stakeholders including shareholders, customers, consumers, and business counterparts in a fair and equitable manner. Recognizing the importance of good corporate governance, we also place strong emphasis on transparency in information disclosure. With the support of Chulalongkorn University’s Continuing Education Center, we regularly and continuously organize training activities for our staff on good corporate governance. In regard to our employees, we have promoted and fostered good relations with our staff by offering competitive remuneration, excellent welfare benefits, and a stimulating work environment. In addition, as part of our energy conservation policy, Thanachart Group encourages staff to participate in activities aimed at conserving electricity and other energy sources and using less paper, thus preserving the environment. In 2011, many provinces of Thailand were severely hit by the floods. In response, Thanachart Group introduced
a number of measures aimed at helping both corporate and individual customers who were flood victims. These included
a grace period of up to 90 days for hire purchase loans as well as extension of the repayment period for up to 12 months. As for home loans, borrowers could suspend repayment of principal amounts for up to 12 months. As well, a total of
THB 5 billion was set aside for loans to small-and-medium-sized enterprises (SMEs) with the principal repayment period extended by up to one year. In regard to ATM and debit cards, fees for all cash withdrawals and transfers thru
TBANK’s ATMs, including all inter-region withdrawals and transfers were waived. Moreover, the fees for inter-bank cash withdrawals as well as cash transfers between bank accounts with TBANK which were tied to the same card were also waived. As well, annual fees and fees for issuing replacement cards lost or damaged during the flood were waived for customers who were flood victims. Holders of Thanachart Drive Credit Cards and FLASH Cards could request a grace period, lower monthly repayments, or extension of their repayment period until the situation returned to normalcy.
CSR-after-Process This type of corporate social responsibility (CSR) covers any activities other than those undertaken in the ordinary course of business. Thanachart Group has been involved in these types of activities for a long time. However, since the commercial banking services became one of Thanachart Group’s main businesses with an extensive branch network nationwide, the corporate social responsibility activities have been implemented in line with the policy established by the central organization. The activities have also been supported by the regional hubs concerned. In this connection, the CSR Committee is responsible for approving the programs and financial support for all activities. After the approval is granted, the Bank’s staff and members of Thanachart Group in each regional hub will start implementing the CSR activities together. Their customers and trading partners, as well as people living in communities, will also be encouraged to participate in the activities. As a guideline for the implementation of the activities, the organization has established a framework of social issues to be addressed. They can be divided into four main groups as follows:
Annual Report 2011 Thanachart Bank Public Company Limited
63
1. Development activities for disadvantaged children and youth
from the kindergarten level to Prathomsuka 3, which participated in the project. The activities have been
2. Community health and hygiene
implemented over the past five years, during which time,
3. Conservation of culture and national identity
28,800 safety helmets for children were given to various
4. Assistance to people who are adversely affected
schools. The Bank will continue implementing its activities
by natural disasters
which include the delivery of safety helmets to children
Thanachart’s public concern– motorcycle helmets for kids This project was initiated in 2007 by the regional hub based in Hat Yai. The main objective was to give
as well as the campaigns aimed at inculcating in adults
the importance of the safety helmets.
Thanachart initiates and fulfils Thai identity project
motorcycle helmets to young students who rode
The activities of the project place emphasis on
motorcycles to their schools in Hat Yai District and Muang
promoting the country’s unique identity and beautiful
District in Songkhla Province. During the period from
culture by encouraging young people to read Thai out loud
2008 - 2010, the project’s coverage areas were extended
with correct pronunciation and to learn about good
to include Nakhon Sawan, Phitsanulok, Nakhon Pathom
manners in Thai culture, which they can adopt in daily life.
and Udon Thani Provinces. TBANK recognizes the
This is an extension of SCIB’s previous project entitled
importance of reducing the number of casualties caused by
“Siam City Bank conserves Thai identity” which was
accidents in which small children are involved, principally
continuously implemented for over 39 years. The project
when they sit at the rear of motorcycles without wearing
consists of two main activities including reading aloud
helmets. But this will only happen when parents become
contests and Thai manners contests. First rounds of the
more concerned with children safety and the standard
contests to select qualified candidates are organized in four
helmets for young children become less expensive. There
regions including North, North East, South and Central
are far fewer manufacturers of motorcycle helmets for
(including Bangkok). Educational institutions are provided
children than those producing helmets for adults. The
with an opportunity to send students from Prathomsuksa 1
project also helps inculcate into parents and children the
to the university level as their representatives to
importance of wearing safety helmets every time they ride
participate in the contests to compete for H.R.H. Princess
motorcycles from home to school and vice versa. The
Maha Chakri Sirindhorn’s Cups, honourable shields and
project has been continuously implemented and has
certificates of honour, as well as scholarships. In 2011, the
received very good responses from the parents and their
Bank organized a contest to decorate a traditional Thai
children participating in the project. It is also in line with
pedestalled tray (or Phan in Thai) which contained candles
the Bank’s CSR policy aimed at creating a motorcycle
and joss sticks. The objective was for the young people to
safety culture which encourages children who sit at the
come up with creative ideas to decorate beautifully a set of
rear of motorcycles to wear safety helmets. As well, it is in
Thai style altar tables. The project was supported by
line with the Bank’s campaign aimed at promoting safe
qualified experts from the Office of the Permanent
driving habits. The related activities help mitigate
Secretary of the Ministry of Culture, the Department of
casualties caused by accidents in which the victims do not
Cultural Promotion of the Ministry of Culture, the Office of
wear safety helmets.
the National Broadcasting and Telecommunication Commission
On the occasion of His Majesty the King’s
(NBTC), the Royal Institute, the National Identity Office, 84 th
and Phra Tumnuk Suankularb School, as well as experts on
Birthday Anniversary in 2011, the Bank organized activities
each region’s culture, who served as panel judges for the
under the project entitled “Thanachart’s concern–motorcycle
contests.
helmets for kids to wear, 84th birthday and 84 schools”
in honor of His Majesty the King. As well, it launched a
The project was first initiated in 1972 in the form of
campaign aimed at promoting traffic knowledge and
a contest organized on “Thai Manners” under the auspices
discipline as well as the culture of ensuring that both
of Bangkok Metropolitan Bank. Later in 1980, the first
parents and children wear safety helmets every time they
“Reading Aloud Contest by Bangkok Metropolitan Bank”
sit at the rear of motorcycles. As part of the activities,
was organized. In 1995, it humbly requested that H.R.H.
20,000 helmets whose standards were certified by the Thai
Princess Maha Chakri Sirindhorn graciously give royal cups
Industry Standards Institute (TISI) were given to students
to top winners of the two contests. In 2002, Bangkok
studying at 84 government and private schools nationwide
Metropolitan Bank merged with SCIB and the name of the
64
Annual Report 2011 Thanachart Bank Public Company Limited
identity”. Recently in 2011, SCIB merged with TBANK, the
Sapan Boon Project (Bridge-togood deeds Project)
project then has been sustained with the name changed to
project was changed to “Siam City Bank conserves Thai
The Bank provides holders of TBANK ATM cards
“Thanachart initiates and fulfils Thai identity project”.
with the convenience of making merit via its ATMs.
The intention to preserve Thai identity is the
Customers can donate money to several charitable
inspiration behind the project. The activities of the project
organizations via the TBANK’s ATMs free of charge. The
include reading Thai aloud and adopting Thai manners in
Bank serves as a bridge for its customers to make
daily life. The objective is for Thai people to preserve the
donations to many organizations that dedicate themselves
unique values and prevent their disintegration over time as
to solving problems in Thai society. In doing so, the Bank
a result of western values which are influencing young
serves as a channel for raising funds to support charitable
people to move away from their culture. Moreover, the
foundations and organizations. Moreover, the Bank
project also helps inculcate in Thai youths the love of Thai
supports the Foundation for Slum Child Care (FSCC) under
culture. This will make them cherish the culture and help
the Royal Patronage of H.R.H. Princess Galyani Vadhana
sustain it for Thai society. Both the Thai language and
Krom Luang Naradhiwas Rajanagarindra. In 2011, it gave
Thai manners are internationally recognised as unique
the Foundation THB 1,170,000 which was sourced from
characteristics of Thai identity.
charity collection boxes placed in 680 branches of the Bank
nationwide. The donations were made by customers and
In 2011, over 3,000 students from 980 educational
staff of Thanachart Group for paying living expenses,
institutions nationwide participated in the ‘Thanachart
education and enhancing the quality of life of children so
initiates and fulfills Thai Identity’ project. The students
that in the future they will grow up to become responsible
were divided into five groups according to their
youths and good citizens of the country. The activities have
educational levels, including the first level of primary
been continuously supported by TBANK for over 10 years.
education (Pathomsuksa 1 - 3), second level of primary
education (Pathomsuksa 4 - 6), lower secondary education (Mathayomsuksa 1 - 3), upper secondary education (Mathayomsuksa 4 - 6), and the university level. The contests were held during the period from July to September 2011.
1
2
3
4
Pictures 1 - 2: Royal Kathin Robes Thanachart Group offered Royal Kathin robes to
Wat Pa Pradu, Muang District, Rayong Province, and
with member companies of Thanachart Group, their
customers, trading partners, executives, and staff
as well as members of the general public all jointly
donated THB 7,977,422.27 in good faith to the
temple as part of the funds to be used for
constructing a new sermon hall. Picture 3: Financial Support to Slum Children TBANK gave THB 1,170,000 to the Foundation for
Slum Child Care (FSCC) under the Royal Patronage
of H.R.H. Princess Galyani Vadhana Krom Luang
Naradhiwas Rajanagarindra. The money was sourced
from charity collection boxes placed in 680 branches
of the Bank nationwide. The donations were made
by customers and staff of Thanachart Group. Picture 4: Thanachart joined hands to help flood victims
in 2011 Member companies of Thanachart Group jointly gave
5,000 survival bags to the Royal Thai Navy based in
Bangkok, for distribution to flood-hit people living in
Wat Tuk Community, Wat Bote and Phra Nangklao
Community, Nonthaburi Province, which were difficult
to access. The money for buying the survival bags
were donated by TBANK and member companies of
Thanachart Group as well as their executives and staff.
Annual Report 2011 Thanachart Bank Public Company Limited
65
Project supporting Thai Red Cross Society
still the only commercial bank with a booth in the Annual Red Cross Fair at Suan Amporn Park. The net income
gained from selling Red Cross lotteries as well as proceeds
• Participation in the Annual Red Cross
from the Bank’s participation in the fair were humbly
Fair
presented to H.R.H. Princess Maha Chakri Sirindhorn, Both TBANK and SCIB always participated in the
Annual Red Cross Fair. In 2011, the 35th anniversary fair
Executive Vice-President of the Thai Red Cross Society, annually for the benefit of the Thai Red Cross Society.
was held from 30 March to 7 April 2011 at Suan Amporn Park, under the theme entitled “On
84 th
• Blood donation in honor of the Royal
Birthday
Anniversary of Great King, follow His footsteps with Red
Father
Cross helping Thai people in honor of His Majesty the
This activity has been implemented by the
King”. The event was organized in celebration of the 84th
TBANK’s Khon Kaen Hub for seven consecutive years. The
Birthday Anniversary of His Majesty the King, the patron of
activity involves a campaign aimed at encouraging both
the Thai Red Cross Society. On this occasion, the Bank
members of the public and staff to donate blood in honor
humbly presented a donation of THB 5.2 million to benefit
of His Majesty the King. Donating blood not only helps
the Thai Red Cross Society as part of its participation in
save the lives of victims of emergent accidents but also
the Fair 2011 with Her Majesty Queen Sirikit as president
alleviate blood shortage during treatment. The activity has
of the Society.
been well supported by the Faculty of Medicine, Khon Kaen
Unviersity, who facilitates the blood donations. Moreover,
The participation in the annual fair could be traced
the Bank also gives financial health check-up to those who
back to the year 1976 when Bangkok Metropolitan Bank
participate in the activity. Tree seedlings are also
was invited to join the Red Cross Fair. It was the only
distributed to the participants, as part of the fight global
participating commercial bank at the fair, using the name
warming campaign. The objective is also to instill into
of ‘Bangkok Metropolitan Bank’s Booth’. Later in 2002
people cooperation in preserving the environment.
when Bangkok Metropolitan Bank merged with SCIB, SCIB
In 2011, 1,164 people donated 480,050 cc of blood to the
participated in the fair, using the name of ‘SCIB’s Booth’. In
Thai Red Cross Society.
2011 when SCIB merged with TBANK, their name at the
fair was changed to ‘Booth of TBANK and SCIB’. Today, it is
The first blood donation event took place in 2004
5
6
7
8
Pictures 5 - 6: Thanachart’s concern – motorcycle helmets for
kids, 84th birthday anniversary and 84 schools TBANK gave 20,000 helmets to student representatives
from 84 schools that participated in the project
named “Thanachart’s concern – motorcycle helmets
for kids, 84th birthday anniversary and 84 schools”.
The activity was part of the campaign aimed at
promoting safe driving habits. Pictures 7 - 8: Thanachart initiated and fulfilled Thai identity
project TBANK granted scholarships to the youths who won
the reading aloud contests and Thai manners contests.
Top winners were awarded H.R.H. Princess Maha
Chakri Sirindhorn’s Cups under the “Thanachart
initiates and fulfills Thai identity” project. First rounds
of the contests to select qualified candidates were
organized in four regions of the country. The
objective was to encourage Thai youths to preserve
their culture through the language and to learn
about correct ways of behaving in line with Thai
manners.
66
Annual Report 2011 Thanachart Bank Public Company Limited
with Khon Kaen Hub serving as a prototype for the blood
victims of the earthquake and Tsunami in Japan by opening
donation activity nationwide. This CSR activity has been
a bank account for customers nationwide to contribute to
organized twice annually on the occasions of the birthday
and making available collection boxes to accept donations
anniversaries of His Majesty the King and Her Majesty
from customers, staff and branches of the Bank. In this
Queen Sirikit respectively. Later, the coverage areas for the
connection, a total of THB 2,840,913.38 was donated and
event were extended to include those covered by
delivered to the Ministry of Foreign Affairs to help Japanese
Ayutthaya Hub, Nakhon Si Thammarat Hub, Saraburi Hub,
disaster victims.
Udon Thani Hub, Thon Buri Hub and Rajchadapisek Hub.
behind the project. The objective is also to encourage
• Thanachart joined hands to help disaster victims in the South The activities organized by Nakhon Si Thammarat
executives, staff, customers as well as members of the
Hub were aimed at helping victims who were adversely
general public to make merit together to help alleviate the
affected by floods. Survival bags were given to the victims
plight of fellow human beings in the case of emergencies
in Tambon Tonhong and the disaster evacuation centers in
or blood shortages.
Amphur Nop Pi Tum, Soi Pratu Kao Community, Tambon
The intention to do good deeds in honor of His Majesty
the King and Her Majesty Queen Sirikit is the inspiration
Groups of schools receiving continuous support from TBANK
Thepraj and Tambon Chalong, Amphur Sichon, Tambon Bang Rakam, Amphur Pakpanang, and the District Office of Amphur Pi Poon, Nakhon Si Thammarat Province. Surat Thanai Hub also gave survival bags and drinking water to
• Reuse Project entitled ‘Pi Chai Ngan
flood victims in Surat Thanai Province. As well, Phuket Hub
Nong Chai Rien’ (Senior use them for work, junior use them for learning)
gave assistance to flood victims in Tambon Khao Pranom,
The activity is based on the idea that materials can be reused. The TBANK reused structural materials and all decorative materials (such as desks, tables,
Amphur Khao Pranom, Krabi Province. • Thanachart joined hands to help flood
victims in 2011
bookshelves, educational materials and light bulbs) at its
Many provinces of Thailand including Bangkok
booths at Money Expo 2011 to build a multipurpose facility
were severely hit by recent devastating floods. The
and a library for Pak Dan Temple School in Sichon District,
disasters inflicted serious damage and caused a lot of
Nakhon Si Thammarat Province, which was adversely
people to suffer. As a result, the Bank and Thanachart
affected by southern floods. The Bank also provided the
Group organized activities aimed at helping the flood
school with sports equipment and school supplies to give
victims through a project named “Thanachart joins hands
moral support for the children education and shape the
to help flood victims in 2011”. The activities included
better future for them.
the following:
Projects to support disaster victims
1. TBANK opened a bank account using the name of “Thanachart joins hands to help flood victims in
These CSR activities are continuously implemented
2011”, to accept donations for flood victims. It used the
every year and place emphasis on rehabilitating victims
donated money to pay for 5,000 survival bags containing
affected by natural disasters. In 2011, TBANK gave
consumer goods worth THB 1,020,410.25 in total. The
assistance to victims of natural disasters through its
Bank teamed up with the Royal Thai Navy in distributing
various activities as follows:
the survival bags to flood victims in Wat Tuk Community,
Wat Bote and Phra Nangklao Community, Nonthaburi
• Thanachart Group members joined
Province. It also paid THB 973,905.83 for 5,000 medicine
hands to help Tsunami victims in Japan
sets together with boxes of cooked food. It also paid THB
The natural disasters that hit Japan hard in 2011
267,773.03 for 1,000 survival bags together with 1,000
represented a great tragedy that inflicted the heaviest
dozen bottles of drinking water. The Bank teamed up with
casualties and damage in the country for more than a
the Royal Thai Army in distributing them to flood victims in
century. Both TBANK and SCIB joined hands to help
the areas of Bang Plat, Taling Chan, Bang Yai, Bangbuathong, Don Muang, and Rangsit.
Annual Report 2011 Thanachart Bank Public Company Limited
67
2. Drinking water was distributed to flood
7. Thanachart Insurance Company Limited
victims at the temporary evacuation center inside Thammasat
made a financial contribution worth THB 100,000 to buy
University Rangsit Campus, Maha Chulalongkorn
survival bags for flood victims through the project named
Ratchawithayalai evacuation center in Wang Noi District in
‘Thanachart joins hands to help flood victims in 2011’.
Ayutthaya Province and the evacuation center at Valaya Alongkorn Rajabhat University under the Royal Patronage. Each center received 9,000 bottles of drinking water.
Project for Buddhism
Regiment (King’s Guards), the Security Forces Command,
• Activity to maintain and support Buddhism through the offering of ‘royal Kathin robes’
with financial assistance, an amount of THB 50,000 to buy
TBANK organizes annually the offering ceremony
3. The Bank provided the Security Forces
cleaning supplies for flood victims.
of Royal Kathin robes. In 2011, the Bank offered the Royal Kathin robes, graciously bestowed by His Majesty the King,
4. The Bank provided Wat-Sing Kindergarten in
to Wat Pa Pradu, Muang District, Rayong Province. In this
Chainat Province with 120 pairs of student desks and
connection, the Bank together with member companies of
chairs. In an effort to rehabilitate the kindergarten, the
Thanachart Group, their customers, trading partners,
Bank also helped repaint school fences and buildings to
executives, and staff as well as members of the general
make them look beautiful again. The objective was to
public jointly donated THB 7,977,422.27 in good faith to
enhance the quality of educational life. Moreover, in
the temple as part of the funds to be used for constructing
collaboration with Thanachart Foundation for Thai Society,
a new sermon hall.
the Bank plans to give additional pairs of student desks
and chairs in the first quarter of 2012 to about 20 schools
The offering ceremony of Royal Kathin robes,
which were hit by floods. A budget of about THB 6 - 7
graciously bestowed by His Majesty the King, was first
million is being allocated for this purpose.
organized in 2006. The Royal Kathin robes were offered to
Wat Keaw Gro Wa Ram Temple in Krabi Province. Since 5. Thanachart Securities Public Company
then, TBANK has been organizing the offering ceremony of
Limited made a financial contribution worth THB 100,000
Royal Kathin robes every year. The purpose of this CSR
to buy survival bags for flood victims, through the project
activity is to maintain and support Buddhism, royal
named “Thanachart joins hands to help flood victims in
temples, and sanctuaries so that they remain intact as
2011”. The company also provided TBANK’s CSR working
long as the nation exists. In addition, the Bank grants
group with 999 medicine sets worth THB 49,950. The
scholarships to financially needy students with good grades
money was donated by executives, staff and customers of
and good behavior.
Thanachart Securities Public Company Limited. The
medicine sets were distributed later to the flood victims.
6. Thanachart Life Assurance Company Limited made a financial contribution worth THB 700,000 to buy survival bags for flood victims. The survival bags were distributed to the victims through the Royal Thai Navy and the Royal Thai Army. As well, some of the company’s executives and staff volunteered to visit the flood-hit areas to distribute the bags themselves. The purpose was to alleviate the plight of flood victims under the project named “Thanachart joins hands to help flood victims in 2011”.
68
Annual Report 2011 Thanachart Bank Public Company Limited
RESPONSIBILITIES OF THE BOARD OF DIRECTORS FOR FINANCIAL REPORT
TBANK’s Board of Directors is responsible for the separated and consolidated financial statements and for financial information presented in this annual report. The aforementioned financial statements were prepared in accordance with the generally accepted accounting principles, applying appropriate and consistent accounting policies and with careful judgments and best estimates. Important information is adequately and transparently disclosed to TBANK’s shareholders and other investors in the notes to financial statements. TBANK’s Board of Directors has established and maintained appropriate and effective risk management and internal control system in order to rationally assure that the accounting information is correctly and completely recorded and adequate to sustain TBANK’s assets, as well as to prevent any material irregular operations or frauds. TBANK’s Board of Directors has appointed the Audit Committee comprising independent directors responsible for revision of accounting policies and the quality of financial statements, internal control, internal audit and risk management system, as well as the disclosure of related party transactions. The committee’s comments on these issues were included in the Audit Committee Report in this annual report. TBANK’s separated and consolidated financial statements were audited by the certified public accountant of Ernst & Young Office Limited. TBANK’s Board of Directors had provided the auditing team all information and document supports in order that the auditor would be able to audit and address his/her opinion to the auditing standards. The auditor’s opinion was included in the Report of independent Auditor in this annual report. TBANK’s Board of Directors is of the opinion that TBANK’s overall internal control is at a satisfying level and provides reliability on TBANK’s separated and consolidated financial statements for the year ended December 31, 2011 which is in compliance with the generally accepted accounting principles and relevant rules and regulations.
(Mr. Banterng Tantivit)
(Mr. Somjate Moosirilert)
Chairman
Chief Executive Officer and President
Annual Report 2011 Thanachart Bank Public Company Limited
69
Report of the Audit Committee
The Audit Committee of Thanachart Bank Public Company Limited consisted of three qualified and experienced
independent directors. The composition was as follows; 1. Mr. Kiettisak Meecharoen
Chairman of the Audit Committee
2. Assoc. Prof. Dr. Somjai Phagaphasvivathana Member of the Audit Committee 3. Mr. Sataporn Jinachitra Member of the Audit Committee Mrs. Vijitra Thumpothong, Executive Vice President, Audit, served as the secretary of the Audit Committee The Audit Committee was responsible for carrying out the duties as assigned by TBANK’s Board of Directors in line
with the regulations imposed by the Securities and Exchange Commission (SEC), notifications of the Stock Exchange of
Thailand (SET) and Bank of Thailand (BOT) as stated in the charter stipulated by the Board of Directors. In 2011, the Audit Committee convened 13 meetings in total with the management, top level executives of the related business units and auditors; whereas 11 meetings were regular meetings and 2 meetings were extraordinary meetings to acknowledge and consider numerous matters as of the following:
• Financial Statements The Audit Committee reviewed
the quarterly and year-end and consolidated financial statements of TBANK by
consulting with the external auditors and TBANK management in order to ensure the accounting standards, the accuracy of its significant matters, and the appropriate disclosure of information. In addition, the Audit Committee convened the meetings without the presence of TBANK management in order to ensure the independence of the auditors’ duties and comments.
• Internal Control and Internal Audit The Audit Committee reviewed the TBANK’s business to ensure an effective internal control and internal audit.
It provided consultation for the internal auditors in formulating the annual audit plan to ensure its sufficiency and
appropriateness of the auditors’ independence, The audit plan was monitored and evaluated quarterly. The professionals were engaged to assess and analyze an appropriateness of the organization structure, work force and capability of the internal auditors in order to further develop the effectiveness and efficiency of audit system.
70
Annual Report 2011 Thanachart Bank Public Company Limited
The
• Connected Transactions or Conflict of Interests The Audit Committee reviewed connected
• Regulatory Compliance Audit Committee reviewed the performance
of Compliance Unit’s to as certain that the Bank’s businesses
transactions and transactions where there might be conflict
were conducted in compliance with related rules and
of
regulations imposed by authorities such as the Bank of
appropriate disclosure of information before giving an
Thailand (BOT), Office of the Securities and Exchange
opinion to the Board of Directors.
interests
based
on
rationale,
transparency
and
Commission of Thailand (SEC), Stock Exchange of Thailand
(SET), the Office of Insurance Commission (OIC) and
The Audit Committee views that the Bank has
Anti-Money Laundering Office (AMLO). The Audit Committee
disclosed financial reports and financial statements properly
also acknowledged changes of any rules or regulations
and in accordance with the accounting standards. The
that affected operation and ensured the adjustment of
internal control, internal audit and risk management have
operation in response to those changes.
been appropriate, effective, and in compliance with laws
and regulations. Independent auditor was independent to
perform duties. Connected transactions and conflict of
• Risk Management
The
Audit Committee monitored and ensured
the adequacy of the Risk Management framework, The Committee met with executives in order to acknowledge the
Risk
Management
report
in
various
aspects
interests have been disclosed appropriately.
to
ensure an adequacy and effectiveness of TBANK’s risk management system.
(Mr. Kiettisak Meecharoen) Chairman of the Audit Committee
• Audit Committee’s charter
The
Audit Committee considered and approved
the amendment in the Audit Committee’s Charter to make it up-to-date and more appropriate.
• Independent Auditor The Audit Committee considered and approved
the qualification, the independence, performance and remuneration of the auditor. In addition, it also advised on the appointment and suitable remuneration of auditors to the TANK’s Board of Directors.
Annual Report 2011 Thanachart Bank Public Company Limited
71
Report of Independent Auditor
To the Shareholders of Thanachart Bank Public Company Limited I have audited the accompanying consolidated statement of financial position of Thanachart Bank Public Company Limited and its subsidiaries as at 31 December 2011, and the related consolidated statements of comprehensive income, changes in equity and cash flows for the year then ended, and have also audited the separate financial statements
of Thanachart Bank Public Company Limited for the same period. These financial statements are the responsibility
of the management of the Bank and its subsidiaries as to their correctness and the completeness of the presentation.
My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with generally accepted auditing standards. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. An audit also includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement presentation. I believe that my audit provides
a reasonable basis for my opinion. In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Thanachart Bank Public Company Limited and its subsidiaries and of Thanachart Bank Public Company Limited
as at 31 December 2011, and the results of their operations and cash flows for the year then ended in accordance with generally accepted accounting principles. Without qualifying my opinion on the aforementioned financial statements, I draw attention to Note 4 to
the financial statements. During the current year, the Bank and its subsidiaries adopted a number of revised and
new accounting standards as issued by the Federation of Accounting Professions, and applied them in the preparation
and presentation of the financial statements. The consolidated financial statements of Thanachart Bank Public Company Limited and its subsidiaries and the separate financial statements of Thanachart Bank Public Company Limited as at 31 December 2010 and for the year then ended were audited in accordance with generally accepted auditing standards by another auditor of our firm who expressed an unqualified opinion on those statements, under her report dated 24 February 2011. However, the Bank has restated the consolidated financial statements regarding the allocation cost of business combination from the purchase of investment in a subsidiary company within the period for measurement allowed by the related accounting standard as described in Note 2.3 to the financial statements. I have audited the adjustment and believed that it is correctly and appropriately recorded.
Phuphun Charoensuk
Certified Public Accountant (Thailand) No. 4950
Ernst & Young Office Limited Bangkok: 23 February 2012
72
Annual Report 2011 Thanachart Bank Public Company Limited
Statements of FINANCIAL POSITION Thanachart Bank Public Company Limited and its subsidiaries Statements of financial position As at 31 December 2011 and 2010 (Unit: Thousand Baht)
Note
Consolidated
Separate
financial statements
financial statements
2011
2010
2011
2010
(Restated) Assets Cash
16,005,678
15,298,105
16,004,051
3,733,489
Interbank and money market items - net
8
63,201,206
85,060,091
62,963,184
28,427,950
Derivatives assets
9
1,536,490
3,117,370
1,532,331
927,751
Investments - net
10
148,344,800
140,021,676
114,540,693
49,758,732
11
1,423,339
2,177,314
40,841,867
73,121,367
675,021,253
639,320,239
654,451,435
358,727,116
962,799
923,792
924,925
272,080
675,984,052
640,244,031
655,376,360
358,999,196
(39,801,128)
(32,469,290)
(37,738,871)
(32,178,121)
13
(25,897,903)
(25,789,301)
(12,485,712)
(7,431,429)
14
(381,719)
(459,963)
(381,719)
(37,741)
Investments in subsidiary and associated companies - net Loans to customers and accrued interest receivables
12
Loans to customers Accrued interest receivables Total loans to customers and accrued interest receivables Less: Deferred revenue Allowance for doubtful accounts Revaluation allowance for debt restructuring Net loans to customers and accrued interest receivables Customers' liability under acceptances
609,903,302
581,525,477
604,770,058
319,351,905
90,531
72,156
90,531
-
Property foreclosed - net
16
6,761,904
7,850,667
3,653,106
639,782
Land, premises and equipment - net
17
8,758,841
8,986,185
8,365,341
1,690,163
Intangible assets - net
18
4,709,082
4,804,990
4,650,449
485,475
Goodwill
19
15,749,643
15,749,643
15,739,527
-
858,326
2,870,279
64,929
1,732,965
1,019,680
6,730
1,011,958
-
Receivables from purchase and sale of securities and derivatives Prepaid corporate income tax Reinsurance assets Other assets - net Total assets
20
2,573,393
532,773
-
-
5,123,388
5,129,331
3,825,298
2,193,641
886,059,603
873,202,787
878,053,323
482,063,220
The accompanying notes are an integral part of the financial statements.
Annual Report 2011 Thanachart Bank Public Company Limited
73
Statements of FINANCIAL POSITION (CONTINUED) Thanachart Bank Public Company Limited and its subsidiaries Statements of financial position (continued) As at 31 December 2011 and 2010 (Unit: Thousand Baht)
Note
Consolidated
Separate
financial statements
financial statements
2011
2010
2011
2010
(Restated) Liabilities and equity Deposits
21
436,039,579
532,656,130
471,617,573
242,791,035
Interbank and money market items
22
60,150,845
40,544,594
59,282,708
29,705,720
2,130,716
3,126,945
2,130,716
2,326,457
Derivatives liabilities
Liability payable on demand 9
2,885,848
941,073
2,876,790
434,206
Debt issued and borrowings
23
254,296,521
174,948,957
257,503,221
132,092,201
90,531
72,156
90,531
-
24
2,823,534
899,690
2,620,953
113,284
851,388
4,053,940
267,638
1,733,060
Banks' liability under acceptances Provisions Payable from purchase and sale of securities and derivatives Insurance contract liabilities
25
36,154,060
29,773,671
-
-
Other liabilities
26
15,103,017
13,792,197
10,778,836
6,130,602
810,526,039
800,809,353
807,168,966
415,326,565
59,346,193
59,346,193
59,346,193
59,346,193
55,136,649
55,136,649
55,136,649
55,136,649
Total liabilities Equity Share capital
27
Registered 5,934,619,272 ordinary shares of Baht 10 each Issued and paid-up share capital 5,513,664,903 ordinary shares of Baht 10 each Share premium Other components of equity
2,100,694
2,100,694
2,100,694
2,100,694
28
612,902
1,147,783
211,106
169,512
29
989,326
655,945
989,326
655,945
16,008,739
13,141,827
12,446,582
8,673,855
74,848,310
72,182,898
70,884,357
66,736,655
685,254
210,536
-
-
Retained earnings Appropriated - statutory reserve Unappropriated Equity attributable to owner of the company Non-controlling interests of the subsidiaries Total equity Total liabilities and equity
75,533,564
72,393,434
70,884,357
66,736,655
886,059,603
873,202,787
878,053,323
482,063,220
-
-
-
-
The accompanying notes are an integral part of the financial statements.
Directors
74
Annual Report 2011 Thanachart Bank Public Company Limited
Statements of ComPREHENSIVE INCOME Thanachart Bank Public Company Limited and its subsidiaries Statements of comprehensive income For the years ended 31 December 2011 and 2010 (Unit: Thousand Baht except earnings per share expressed in Baht) Consolidated
Separate
financial statements Note
2011
financial statements
2010
2011
2010
Profit or loss Interest income
32
44,213,744
34,781,263
29,547,478
Interest expenses
33
(19,797,303)
(11,565,745)
(14,958,709)
(7,375,390)
24,416,441
23,215,518
14,588,769
14,022,068
3,857,939
3,368,918
2,904,042
2,030,464
Net interest income Fees and service income Fees and service expenses Net fees and service income
(499,958)
(518,588)
(144,272)
21,397,458
(45,055)
34
3,357,981
2,850,330
2,759,770
1,985,409
35
890,895
569,670
563,565
144,001
36
712,193
313,838
59,843
147,524 -
Gains on trading and foreign exchange transactions Gains (loss) on investments Share of profit from investments accounted for under equity method Insurance/Life insurance income Dividend income Brokerage fee from securities/derivatives Income on supporting service Other operating income Total operating income Insurance expenses Net operating income
156,064
206,711
-
12,853,319
11,186,879
-
-
707,542
461,284
1,590,458
575,941
1,167,668
1,407,762
-
-
44,708
55,984
1,062,319
278,092
1,430,155
1,239,248
1,135,592
868,822
21,760,316
18,021,857
45,736,966
41,507,224
(10,725,745)
(8,834,326)
35,011,221
32,672,898
21,760,316
18,021,857
10,735,944
8,458,418
6,626,964
3,855,982
43,223
44,866
26,888
17,891
3,474,246
3,148,053
1,833,460
1,531,862
898,439
618,432
406,770
181,826
6,725,454
4,553,979
4,776,988
3,142,638
21,877,306
16,823,748
13,671,070
8,730,199
2,504,008
2,148,604
1,421,636
1,279,692
10,629,907
13,700,546
6,667,610
(2,948,049)
(4,548,121)
7,681,858
9,152,425
6,667,610
(355,528)
688,370
41,594
(180,370)
204,123
-
(535,898)
892,493
41,594
10,044,918
6,709,204
-
Other operating expenses Employee's expenses Directors’ remuneration
37
Premises and equipment expenses Taxes and duties Other expenses Total other operating expenses Impairment losses of loans and debt securities
38
Profit before income tax Income tax
39
Profit for the year Other comprehensive income
-
8,011,966 (2,293,437) 5,718,529
40
Gains (losses) on changes in value of available-for-sale investments Share of other comprehensive income (loss) of associates Total other comprehensive income (loss) Total comprehensive income
7,145,960
(44,182) (44,182) 5,674,347
The accompanying notes are an integral part of the financial statements.
Annual Report 2011 Thanachart Bank Public Company Limited
75
Statements of ComPREHENSIVE INCOME (CONTINUED) Thanachart Bank Public Company Limited and its subsidiaries Statements of comprehensive income (continued) For the years ended 31 December 2011 and 2010 (Unit: Thousand Baht except earnings per share expressed in Baht) Consolidated
Separate
financial statements Note
financial statements
2011
2010
2011
2010
7,671,425
8,776,543
6,667,610
5,718,529
10,433
375,882
7,681,858
9,152,425
7,136,544
9,664,436
6,709,204
5,674,347
Profit attributable to: The Bank Non-controlling interests
Total comprehensive income attributable to: The Bank Non-controlling interests
Earnings per share of the Bank
9,416
380,482
7,145,960
10,044,918
1.39
1.92
1.21
1.25
5,513,664,903
4,562,521,270
5,513,664,903
4,562,521,270
41
Basic earnings per share Profit attributable to the Bank (Baht per share) Number of ordinary shares (shares)
The accompanying notes are an integral part of the financial statements.
76
Annual Report 2011 Thanachart Bank Public Company Limited
Statements of CASH FLOWS Thanachart Bank Public Company Limited and its subsidiaries Statements of cash flows For the years ended 31 December 2011 and 2010 (Unit: Thousand Baht) Consolidated
Separate
financial statements 2011
financial statements
2010
2011
2010
6,667,610
8,011,966
Cash flows from operating activities Profit before income tax
10,629,907
13,700,546
Adjustments to reconcile profit before income tax to net cash received (paid) from operating activities: Share of profit from investments accounted -
-
Depreciation and amortisation
for under equity method
1,715,216
1,309,796
768,191
573,110
Impairment losses of loans and debt securities
2,504,008
Increase (decrease) in provisions
(156,064)
(206,711) 2,148,604
1,421,636
1,279,692
(346,472)
102,912
1,195,615
2,569
364,504
561,197
(65,751)
(24,224)
Amortisation of premiums (discounts) on investment in debt securities
(69,123)
94,827
Gain from disposal of investments in subsidiary companies Gain from disposal of investment in an
(22,276)
-
-
(21,625) -
associated company Increase (decrease) in allowance for impairment of investments
(40,978)
(20,549)
4,463
(18,037)
49,226
6,065
1,825
3,428
443,562
(40,387)
29,079
13,762
Increase in allowance for change in value of investments Increase (decrease) in allowance for impairment of property foreclosed Increase (decrease) in allowance for impairment of land, premises and equipment
93,470
60
-
26,843
-
24,816
(1,190)
Increase in allowance for impairment of intangible asset
-
Interest income and other income from the assets transferred for debt repayment Loss (gain) on disposal of equipment
(1,967)
(16,618)
(1,967)
(16,618)
(7,923)
4,033
(2,632)
4,353
Loss from written-off of other assets
-
5,469
-
-
Gain from written-off of other liabilities
-
(9,315)
-
-
Unrealised (gain) loss on exchange
(1,536,625)
647,046
(1,536,625)
(153,991)
(2,011)
(57,982)
Decrease in allowance for impairment of other assets Increase in other income receivable Decrease in fees and rental received in advance Decrease in deferred income Increase (decrease) in accrued expenses Amortisation of discounts on long-term borrowings Net interest income Dividend income
(270,482)
(32,059)
(156,200)
(108,922)
(75,977)
(9,002)
(46,437)
(42,592)
(46,437)
(42,592)
(4,708) 1,077,288
(5,703) (142,045)
(4,708) 1,453,301
(5,699) 132,628
810
6,288
-
767
14,248,951
17,842,891
9,827,056
9,790,366
(24,781,755)
(23,783,003)
(14,519,646)
(14,117,662)
(707,542)
(461,284) 31,108,643
(1,590,458) 27,553,999
(575,941)
Cash received from interest income
40,114,752
19,673,174
Cash payment for interest expenses
(11,936,018)
(7,944,427)
(8,303,265)
(4,492,833)
Cash paid for corporate income tax
(3,555,117)
(4,331,947)
(1,970,980)
(2,432,349)
13,383,271
12,430,873
10,996,706
7,844,755
Income from operating activities before changes in operating assets and liabilities
The accompanying notes are an integral part of the financial statements. Annual Report 2011 Thanachart Bank Public Company Limited
77
Statements of CASH FLOWS (CONTINUED) Thanachart Bank Public Company Limited and its subsidiaries Statements of cash flows (continued) For the years ended 31 December 2011 and 2010 (Unit: Thousand Baht) Consolidated
Separate
financial statements
financial statements
2011
2010
2011
2010
Decrease (increase) in operating assets Interbank and money market items Investments in trading securities Derivatives assets Loans and receivables
23,183,890
42,647,210
33,785,015
(12,792,593)
3,010,869
(4,780,207)
2,094,487
(680,785)
300,643
35,579,111 688,682 869,688
(22,441,973)
(50,543,824)
(52,904,541)
(49,502,317)
3,963,047
4,493,962
3,403,850
4,064,796
and derivatives
2,011,953
(1,602,244)
1,677,045
(1,423,075)
Reinsurance assets
(2,040,620)
(101,158)
-
Property foreclosed Receivables from purchase and sale of securities
Other assets
(220,462)
-
1,686,656
2,693,151
(431,483)
(96,616,551)
(41,943,638)
(27,141,638)
(23,936,288)
9,892,160
(22,028,919)
18,330,999
7,526,302
Increase (decrease) in operating liabilities Deposits Interbank and money market items Liability payable on demand Derivatives liabilities
(996,229)
120,125
(973,984)
214,645
652,276
245,789
661,248
(24,228)
Payable from purchase and sale of securities and derivatives Liabilities under insurance/ life insurance Other liabilities Net cash flows used in operating activities
(3,202,552)
2,298,262
6,380,389
4,217,902
(1,963,750) (78,713,257)
745,696 (45,003,224)
(1,465,422) (2,982,791) (18,399,926)
1,423,172 456,684 (16,649,556)
Cash flows from investing activities Cash payment for the entire business transfer
-
-
(39,253,886)
-
4,964,042
19,603,730
(10,547,385)
9,631,746
(59,291,064)
(2,681,425)
(68,835,299)
Decrease (increase) in investments in securities held for investment Cash paid for acquire investment in subsidiaries
(16,446)
Cash received from disposal of investments in subsidiary companies
366,304
212,756
-
212,766
113,750
-
-
-
-
-
16,922,510
4,671
4,533,638
4,301,842
1,984,309
1,803,609
824,488
602,433
1,590,487
576,466
(852,070)
(579,042)
39,767
17,713
(42,588)
(33,516)
Cash received from disposal of investment in an associated company Capital returned from a subsidiary Cash received from interest on investments Cash received from dividend Cash paid for purchase of equipment Cash received from disposal of equipment Cash paid for dividend to non-controlling interests Net cash flows from (used in) investing activities
9,930,885
The accompanying notes are an integral part of the financial statements.
78
Annual Report 2011 Thanachart Bank Public Company Limited
(35,165,148)
674,382
(262,296)
4,106
7,940
-
-
(31,306,902)
(56,860,397)
Statements of CASH FLOWS (CONTINUED) Thanachart Bank Public Company Limited and its subsidiaries Statements of cash flows (continued) For the years ended 31 December 2011 and 2010 (Unit: Thousand Baht) Consolidated
Separate
financial statements 2011
financial statements
2010
2011
2010
Cash flows from financing activities Cash received from issued additional share capital
-
35,790,456
-
35,790,456
1,181,760,489
525,897,163
990,764,061
460,836,327
(1,103,304,035)
(465,956,560)
(920,720,557)
(419,681,093)
Cash paid for interest from borrowings
(6,758,720)
(2,901,428)
(5,860,648)
(2,338,590)
Cash paid for dividend
(2,205,466)
(1,083,387)
(2,205,466)
(1,083,387)
Cash received from borrowings Cash paid for borrowings
Cash paid to non-controlling interests for capital refund Net cash flows from financing activities Net increase in cash
(2,323)
-
-
-
69,489,945
91,746,244
61,977,390
73,523,713
707,573
11,577,872
12,270,562
13,760
Cash at beginning of the year
15,298,105
3,720,233
3,733,489
3,719,729
Cash at end of the year
16,005,678
15,298,105
16,004,051
3,733,489
3,307,890
3,941,135
3,137,524
3,812,704
159,024
139,067
112,184
33,884
1,479,108
1,181,569
618,108
593,531
Supplemental cash flows information Non-cash transactions Transfer of properties foreclosed from receivables for debt settlement Accounts payable for purchase of fixed assets Bad debt written-off
The accompanying notes are an integral part of the financial statements.
Annual Report 2011 Thanachart Bank Public Company Limited
79
80 Annual Report 2011 Thanachart Bank Public Company Limited
STATEMENTS OF CHANGES IN EQUITY Thanachart Bank Public Company Limited and its subsidiaries Statements of changes in equity For the years ended 31 December 2011 and 2010 (Unit: Thousand Baht) Consolidated financial statements Other components of equity Surplus from
Share of
business
Surplus on
other comprehensive
fully paid-up
combination under
changes in value
income (loss)
Appropriated -
common control
of investments
of associates
statutory reserve
share capital
Share premium
Balance as at 1 January 2010
19,346,193
2,100,694
Increase in share capital (Note 27)
35,790,456
-
-
-
-
-
-
Dividend paid (Note 31)
Retained earnings
Issued and
(123,379)
Non-controlling
264,125
119,144
370,019
-
-
-
-
-
-
-
-
-
-
-
Unappropriated
interests
5,734,597 (1,083,387)
Total
60,691
27,872,084
-
35,790,456
-
(1,083,387)
Decrease in non - controlling interests of the subsidiaries
-
(230,637)
(230,637)
Transfer of retained earnings to statutory reserve (Note 29)
-
-
-
-
-
285,926
-
-
-
-
-
683,770
204,123
-
8,776,543
380,482
10,044,918
Balance as at 31 December 2010
55,136,649
2,100,694
(123,379)
947,895
323,267
655,945
13,141,827
210,536
72,393,434
Balance as at 1 January 2011 -
55,136,649
2,100,694
(123,379)
947,895
323,267
655,945
13,141,827
208,955
72,391,853
Total comprehensive income for the year
(285,926)
as previously reported The allocation of cost of business combination adjustment (Note 2.3) Balance as at 1 January 2011 - as restated
-
-
55,136,649
2,100,694
(123,379)
-
-
-
-
1,581
1,581
947,895
323,267
655,945
13,141,827
210,536
72,393,434
Cumulative effect of change in accounting policy for employee benefits (Note 4) Dividend paid (Note 31)
-
-
-
-
-
-
(2,265,666)
-
-
-
-
-
-
(2,205,466)
-
-
-
-
-
-
-
333,381
(6,472) -
(2,272,138) (2,205,466)
Increase in non - controlling interests of the subsidiaries
-
471,774
471,774
Transfer of retained earnings to statutory reserve (Note 29) Total comprehensive income for the year Balance as at 31 December 2011
-
-
-
-
-
-
55,136,649
2,100,694
The accompanying notes are an integral part of the financial statements.
(123,379)
(354,511)
(180,370)
593,384
142,897
-
-
-
7,671,425
(333,381)
9,416
7,145,960
989,326
16,008,739
685,254
75,533,564
STATEMENTS OF CHANGES IN EQUITY (CONTINUED) Thanachart Bank Public Company Limited and its subsidiaries Statements of changes in equity (continued) For the years ended 31 December 2011 and 2010 (Unit: Thousand Baht) Separate financial statements Other components of equity Issued and
Surplus on changes
fully paid-up share capital
Share premium
Balance as at 1 January 2010
19,346,193
2,100,694
Increase in share capital (Note 27)
Retained earnings
in value of
Appropriated -
investments
statutory reserve
Unappropriated
370,019
4,324,639
26,355,239 35,790,456
213,694
Total
35,790,456
-
-
-
-
Dividend paid (Note 31)
-
-
-
-
(1,083,387)
(1,083,387)
Transfer of retained earnings to statutory reserve (Note 29)
-
-
-
285,926
(285,926)
-
Total comprehensive income for the year Annual Report 2011 Thanachart Bank Public Company Limited
-
-
-
5,718,529
5,674,347
Balance as at 31 December 2010
55,136,649
2,100,694
169,512
(44,182)
655,945
8,673,855
66,736,655
Balance as at 1 January 2011
55,136,649
2,100,694
169,512
655,945
8,673,855
66,736,655
Cumulative effect of change in accounting policy for -
-
-
-
(356,036)
(356,036)
Dividend paid (Note 31)
employee benefits (Note 4)
-
-
-
-
(2,205,466)
(2,205,466)
Transfer of retained earnings to statutory reserve (Note 29)
-
-
-
333,381
(333,381)
-
Total comprehensive income for the year Balance as at 31 December 2011
The accompanying notes are an integral part of the financial statements.
-
-
41,594
-
6,667,610
6,709,204
55,136,649
2,100,694
211,106
989,326
12,446,582
70,884,357
81
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Thanachart Bank Public Company Limited and its subsidiaries Notes to consolidated financial statements For the years ended 31 December 2011 and 2010 1.
General information Thanachart Bank Public Company Limited (“Thanachart Bank” or “the Bank”) was incorporated as a public limited company under Thai laws and its parent company is Thanachart Capital Public Company Limited (herein after referred to as “the Parent company”), a public limited company also existing under Thai laws. The Parent company holds 50.96 percent of the Bank issued shares and Scotia Netherlands Holding BV, a company registered in Netherland, holds 49.00 percent of the Bank issued shares. The Bank’s registered address is 900, Tonson Tower, Ploenchit Road, Lumpini, Pathumwan, Bangkok. The Bank has 676 operational branches (2010: 256 operational branches). All subsidiaries are registered limited or public limited companies under Thai laws and operate their businesses in Thailand. The subsidiaries businesses include commercial bank, non-performing assets management business, securities business, leasing and hire purchase
business,
non-life
insurance
business,
life
insurance
business,
fund
management business and others. 2.
Thanachart Bank’s project to purchase Siam City Bank Plc.’s ordinary shares with the purpose of transferring Siam City Bank’s entire business to the Bank
2.1
The purchase of the ordinary shares of Siam City Bank Plc. from the Financial Institutions Development Fund On 11 March 2010, Thanachart Bank entered into a share purchase agreement with the Financial Institutions Development Fund (“FIDF”) to purchase 1,005,330,950 shares of Siam City Bank Plc. (“SCIB”), or 47.58 percent of the total issued and paid-up share capital, at a price of Baht 32.50 per share, or for total of Baht 32,673 million. On 9 April 2010, Thanachart Bank paid FIDF for SCIB’s shares, with the approval of the 2010 Annual General Meeting of the Bank’s shareholders, and the Bank of Thailand (“BOT”). The BOT also approved the Bank to hold the shares of SCIB in accordance with certain specified conditions, i.e. SCIB is to continue operating as commercial bank but has to return its banking license within 31 December 2011, the requirements on capital funds calculation, the structure of the financial business group, and holdings in companies in the financial business group.
82
Annual Report 2011 Thanachart Bank Public Company Limited
1
The Share Purchase Agreement between Thanachart Bank as “the Purchaser” and the FIDF as “the Seller”, dated 11 March 2010, states that the obligations, guarantees, liabilities or indemnities of the Seller to SCIB under any arrangements, agreements or documents in connection with the merger between SCIB and Bangkok Metropolitan Bank Public Company Limited (“BMB”) (the “Seller’s Obligations”) including funds deposited in accounts opened and maintained with SCIB to compensate for any losses or damages suffered or incurred by SCIB arising out of or in connection with the merger between SCIB and BMB will continue in full force and effect after completion of the sale and purchase of SCIB’s shares. Rights and obligations of SCIB related to the Seller’s Obligation, including funds deposited in the accounts opened and maintained with SCIB, will be transferred to and/or assumed by Thanachart Bank, with effect from the completion date of the entire business transfer from SCIB to Thanachart Bank. In addition, in case of the liquidation of the Seller, the Seller’s Obligations will be transferred and/or assumed by another government agency. 2.2
Additional tender offer for common shares of SCIB in 2010 During June 2010, Thanachart Bank made an additional tender offer to the minority shareholders of SCIB, at the same price as it paid to purchase shares of SCIB at auction from FIDF. Other shareholders sold 1,091,439,949 shares, or for a total of Baht 35,472 million, or 51.66 percent of the issued and paid-up shares of SCIB as a result of the tender offer, and combined with its existing holding, Thanachart Bank shareholding in SCIB reached 99.24 percent. During November 2010, Thanachart Bank acquired 14,907,658 additional shares of SCIB for a total of Baht 484 million, increasing its shareholding to 99.95 percent of the issued and paid-up shares of SCIB. The Stock Exchange of Thailand announced the voluntary delisting of SCIB’s shares on 13 December 2010.
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2.3
Allocating the cost of business combination Thanachart Bank acquired 47.58 percent of SCIB’s shares in April 2010 and on the same day, management of Thanachart Bank were assigned as directors of SCIB in a number that gave Thanachart Bank voting control over SCIB. Because Thanachart Bank had control over SCIB through shareholding and management, it has treated SCIB’s shares as investment in a subsidiary company since then. As a result of purchasing of additional shares to increase its shareholding in SCIB to 99.24 percent in June 2010 and 99.95 percent in November 2010, the total cost of investment in SCIB was Baht 68,801 million in the consolidated financial statements (including expenses in business combination and after deducting intercompany transactions). On 9 April 2010, Thanachart Bank’s management preliminarily estimated the fair value of each asset and liability of SCIB for the purpose of allocating the cost of business combination and recognised the difference between the cost of business combination and the fair value of assets, liabilities, contingent liabilities and intangible assets in proportion to its shareholding as goodwill from business combination in the consolidated financial statements. However, after the purchase, Thanachart Bank adjusted the estimated fair value of the assets and liabilities because of additional information that was received. This is in line with the related financial reporting standard that allows the purchaser to adjust the fair value for up to one year from the purchase date. The revised fair values of assets and liabilities are as follows: 1.
Assets and liabilities in SCIB and its subsidiaries’ accounts were valued and noted that the fair value of assets and liabilities as at investment payment date were totaled of Baht 48,635 million, which was Baht 4,264 million higher than book value.
2.
Intangible assets are assets that will generate future economic benefits. Thanachart Bank estimated the fair value of the intangible assets of SCIB at Baht 4,100 million, comprised of (a) Core Deposit Intangibles which are evaluated using the incremental cash-flows from low cost deposit, and considering the cost saving from current and saving deposits; and (b) Customer Relationships which are valued on the base of future revenues that will be earned from SCIB’s existing customers.
3.
For liabilities specify at acquisition date and contingent liabilities, Thanachart Bank estimated these and concluded that no additional contingent liabilities need to be recognised.
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Annual Report 2011 Thanachart Bank Public Company Limited
Differences between the cost of business combination and the fair value of assets, liabilities, contingent liabilities and intangible assets in proportion to the shareholding, amounting to Baht 15,740 million, are recognised as goodwill from business combination in the consolidated financial statements. The Bank has retrospectively adjusted the comparative financial information in the previous year’s financial statements as if the accounting records for business combination had completed since the acquisition date. The fair value of the assets and liabilities of SCIB and its subsidiaries and the carrying value of each significant account as at the date Thanachart Bank assumed control over SCIB are as follow: (Unit: Million Baht) Fair value Book value Intangible assets
Previous balance
Revised
293
4,393
4,393
Other assets
435,702
437,016
439,966
Total liabilities
391,495
391,495
391,495
129
129
129
44,371
49,785
52,735
Cost of business combination
68,801
68,801
Goodwill
18,688
15,740
Non-controlling interests of the subsidiaries Net assets value
In allocating the purchase price, Thanachart Bank did not recognise deferred tax liabilities of Baht 2,466 million arising from the adjustment of assets to fair value (If the Bank recognised deferred tax liabilities on the date of business combination, the balance of such liabilities as at 31 December 2011 would be decreased to Baht 1,644 million, calculated using the tax rates enacted at the year-end date), and did not recognise the employee benefits of SCIB and its subsidiaries payable under labour law, amounting to Baht 1,804 million, since the two relevant accounting standards are not yet effective for the year of business combination. Since the fair value adjustment of assets and liabilities mentioned above and the recalculation of goodwill, Thanachart Bank has retrospectively adjusted the comparative financial information in the previous year’s financial statements as if the Bank has completely accounted for the business combination on the acquisition date, resulted in the following revisions to the consolidated comparative financial statements as of 31 December 2010:
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(Unit: Million Baht) 31 December 2010
31 December 2010
Before adjustment
After adjustment
137,959
140,022
Properties foreclosed
6,964
7,850
Intangible assets
4,805
4,805
18,698
15,750
209
210
Net investment
Goodwill Non - controlling interests of the subsidiaries
2.4
Key operation after the tender offer for SCIB’s shares in 2011 On 10 March 2011, BOT approved Thanachart Bank’s proposed plan for an entire business transfer of SCIB’s business to the Bank. The significant conditions of such approval are that SCIB must complete the entire business transfer and return the banking licenses and banking authorisations to the Ministry of Finance within 31 December 2011, and promptly proceed with the liquidation process, and that obligations between the Bank and FIDF are to comply with the Share Purchase Agreement dated 11 March 2010. On 7 April 2011, the 2011 Annual General Meeting of the Shareholders of SCIB and Thanachart Bank passed resolutions approving the transfer of SCIB’s entire business to Thanachart Bank, and the BOT has already approved this transaction. The Meetings also delegated the related authorities to SCIB’s Board of Directors and Thanachart Bank’s Board of Directors for further arrangement. On 30 June 2011, a meeting of the Bank’s Board of Directors passed a resolution to perform the entire business transfer from SCIB to the Bank on 1 October 2011 (EBT date). On 30 September 2011, Thanachart Bank entered into the Entire Business Transfer Agreement, legally effective on 1 October 2011, to transfer SCIB’s business to Thanachart Bank. The transferred business consisted of the assets, liabilities and commitment of SCIB as of 1 October 2011 and/or contingent liabilities that may arise in the future, with the parties agreeing a transfer price of Baht 50,134 million. The transfer price was set in accordance with the guidelines for setting transfer prices of financial assets among companies in the Thanachart group, and an independent financial advisor opined that it was fair value. SCIB recognised gain on the entire business transfer of Baht 5,299 million which has been eliminated in the consolidated financial statements.
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Annual Report 2011 Thanachart Bank Public Company Limited
Significant guidelines of the transfer price of assets and liabilities are as follows: -
Loans: The transfer values were based on the outstanding loan balances net of related allowance for doubtful accounts.
-
Investments: The fair values of marketable securities were based on the latest bid price, the fair value of debt securities were determined using the yield rate quoted by the Thai Bond Market Association, and the fair values of other investments were determined from expected future cash flows, expected dividend to be received or net book value.
-
Property foreclosed: The fair values were based on the values appraised by independent appraisers in accordance with BOT guidelines, after deduction of a discount determined on the basis of past selling experience.
-
Deposit/debt issued and borrowings: Almost of deposits and short-term borrowings have floating interest rate and therefore the fair value is deemed to be closed to the book value. Long-term deposits and borrowings have interest yields that approximate market interest rate, and therefore fair value is deem to be closed to the book value.
-
Other assets/liabilities: The fair value approximates the book value.
-
Off-balance items and commitments under various exchange contracts are transferred at book value.
Significant assets and liabilities at the transfer date are as follow: (Unit: Million Baht) Interbank and money market items - net
67,649
Net investment
47,852
Loans to customer and accrued interest receivables - net
236,689
Property foreclosed
3,303
Land, premises and equipment
7,830
Other assets Deposits
17,754 255,968
Debt issued and borrowings
58,366
Other liabilities
16,609
Entire business transfer price - net
50,134
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Effective 1 October 2011, SCIB discontinued its operations. On 1 November 2011, the Board of Directors of SCIB passed a resolution to pay an interim dividend at Baht 7.50 per shares to its shareholders, totaling Baht 15,846 million. In November 2011, Thanachart Bank purchased additional shares of SCIB from the minority shareholders, to give those minority shareholders a chance to sell their shares before SCIB’ dissolution. Minority shareholders sold a total of 696,865 shares, at Baht 16 million, Thanachart Bank therefore holds 2,112,375,422 shares, or 99.98% of the total shares in issue. On 6 December 2011, the Extraordinary Meeting of SCIB’s shareholders approved the change of Siam City Bank’s name to “SCIB Plc.”. On 8 December 2011, SCIB returned its banking license and banking authorisations to the Ministry of Finance, and registered the change in its company’s name as “SCIB Plc.”. SCIB registered the company’s dissolution on 9 December 2011. 2.5
Transfer business of subsidiaries in the group Siam City Securities Co., Ltd. On 28 October 2010, the Boards of Directors of Thanachart Bank and SCIB passed resolutions to approve a plan for a business combination between Thanachart Securities Plc. (“Thanachart Securities”) and Siam City Securities Co., Ltd. (“SCIB Securities”), which is a subsidiary in the Group, by means of a partial business transfer of the assets of SCIB Securities to Thanachart Securities. The price of the transfer was to be not less than the book value, with reference to the latest adjusted book value before the transaction date. In November 2010, an extraordinary meeting of SCIB Securities’ shareholders approved the partial business transfer. On 30 December 2010, SCIB Securities entered into agreements to transfer assets relating to the securities business and obligations relating to the investment banking business, amounting to Baht 11 million, effective from 31 December 2010, while transfers of claims under agreements appointing an agent and/or broker for securities trading, including securities business receivables and payables with a net balance of Baht 206 million, and cash collateral for settlements amounting to Baht 216 million, were effective on 1 January 2011. SCIB Securities also transferred certain employees to Thanachart Securities on the same day. SCIB Securities temporary discontinue of its operations since 1 January 2011. The Annual General Meeting of the shareholders of SCIB Securities, held on 27 April 2011, approved the reduction of the registered and paid-up share capital of SCIB Securities from Baht 2,000 million to Baht 900 million. SCIB Securities registered the shares reduction on 7 June 2011.
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Annual Report 2011 Thanachart Bank Public Company Limited
In August 2011, SCIB disposed investment in common shares of SCIB Securities at a price of Baht 168 million and recognised gains on the disposal of Baht 40 million in the consolidated financial statements of Thanachart Bank. This disposal was in accord with the approval by the Board of Directors of SCIB on 23 June 2011. Siam City Asset Management Co., Ltd. On 27 January 2011, the Board of Directors of SCIB passed a resolution to approve an offer to purchase and/or to sell shares of Siam City Asset Management Co., Ltd. to Government Pension Fund, a former shareholder. During May 2011, SCIB disposed all of its shares to the purchaser at a price of Baht 198 million and recognised gain on the disposal of Baht 26 million in the consolidated financial statements of Thanachart Bank. Siam City Bank Plc./ TS Asset Management Co., Ltd. During the year 2011, SCIB and TS Asset Management Co., Ltd. (“TS”) (The new company, which was licensed by the Bank of Thailand, set up to receive the transfer of SCIB’s non-performing assets including non-performing loans and property foreclosed, for further management) entered into an agreement to transfer rights in loan receivables and property foreclosed from SCIB to TS as follows: Fair value (Million Baht) -
Non-performing loans
9,062
-
Property foreclosed
3,083
The transfer of such financial assets was treated as a true sale in both financial statements of the transferee and the transferor since the transferor surrendered control over the assets. The selling prices were mutually agreed among companies in Thanachart Group with reference to what in the opinions of a financial advisor were fair values. Compensation for this transfer will be considered the fair value when recognising the selling price and the values of the transferred assets, which are as follows: -
For non-performing loans, the fair values are referred to the outstanding loan balance net of related allowance for doubtful accounts.
-
For property foreclosed, the fair values are referred to the value appraised by independent appraisers in accordance with the BOT guidelines, after deduction by an amount determined on the basis of past selling experience.
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Under the conditions of the agreement, the transferee is entitled to claim compensation if conditions specified in the agreement are breached within the specified period. However, gains (losses) from transfers of assets and the intercompany balances are eliminated when preparing the consolidated financial statements of Thanachart Bank because the transfers are intercompany transactions. Siam City Insurance Co., Ltd. On 27 July 2011, the Board of Directors of SCIB passed a resolution approving the disposal of investment in common shares of Siam City Insurance Co., Ltd. to other party. SCIB subsequently sold all the shares to purchasers on 19 August 2011 at a total price of Baht 113.75 million. 3.
Basis of preparation of the financial statements
3.1
Basis of preparation of the financial statements The financial statements have been prepared in accordance with accounting standard enunciated under the Accounting Professions Act B.E. 2547 with reference to accounting practice of “Transferring/Transferred of financial assets” and the principles stipulated by the Bank of Thailand (“BOT”). The presentation of the financial statements has been made in compliance with the BOT’s Notification relating to the preparation and format of the financial statements of commercial banks and holding company of financial business groups, dated 3 December 2010. Hence, the Bank reclassified certain items of the comparative financial statements. The financial statements in Thai language are the official financial statements of the Bank. The financial statements in English language have been translated from the Thai language financial statements. The financial statements have been prepared on a historical cost basis except where otherwise disclosed in the accounting policies.
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3.2
Basis of preparation of the consolidated financial statements a)
The consolidated financial statements included the financial statements of the Bank and the following subsidiary companies (“the subsidiaries”). Percentage of holding
Percentage of holding
by the Bank
by the subsidiaries
2011
2010
2011
2010
Subsidiaries directly held by the Bank SCIB Plc.
99.98
99.95
-
-
Thanachart Securities Plc.
100.00
100.00
-
-
Thanachart Insurance Co., Ltd.
100.00
100.00
-
-
Thanachart Life Assurance Co., Ltd.
100.00
100.00
-
-
75.00
75.00
-
-
Thanachart Broker Co., Ltd.
100.00
100.00
-
-
Thanachart Group Leasing Co., Ltd.
100.00
100.00
-
-
Thanachart Management and Services Co., Ltd.
100.00
100.00
-
-
Thanachart Legal and Appraisal Co., Ltd.
100.00
100.00
-
-
Thanachart Training and Development Co., Ltd.
100.00
100.00
-
-
TS Asset Management Co., Ltd.
100.00
-
-
-
65.18
-
-
-
100.00
-
100.00
100.00
-
-
-
99.79
100.00
-
100.00
100.00
-
-
-
60.00
100.00
-
100.00
100.00
(Formerly known as “Siam City Bank Plc.”)
Thanachart Fund Management Co., Ltd.
Ratchthani Leasing Plc. Subsidiaries indirectly held by the Bank National Leasing Co., Ltd. Siam City Securities Co., Ltd. Siam City Life Assurance Co., Ltd. Siam City Asset Management Co., Ltd. SCIB Service Co., Ltd.
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b)
Total assets and total income of the subsidiaries that have significant impact to and are included in the consolidated financial statements as at 31 December 2011 and 2010 and for the years then ended, after eliminating significant intercompany transactions, are as follows: (Unit: Million Baht) Total income for the year
Total assets 2011
2011
2010
-
406,974
9,044
9,945
Thanachart Life Assurance Co., Ltd.
20,402
19,917
1,964
1,471
Siam City Life Assurance Co., Ltd.
11,195
11,008
Thanachart Insurance Co., Ltd.
7,176
5,189
1,975
1,523
Thanachart Securities Plc.
3,877
3,958
1,377
1,357
TS Asset Management Co., Ltd.
11,361
-
296
-
Ratchthani Leasing Plc.
12,033
-
175
-
SCIB Plc.
c)
2010
(89)
482
The Bank has additionally invested in TS Asset Management Co., Ltd. which was newly set up during March 2011, and holds 100 percent.
d)
In October 2011, the Bank received the investments in 437,250,000 ordinary shares of Ratchthani Leasing Plc. from SCIB for Baht 536 million, in accordance with the terms of the entire business transfer agreement. As a result, the Bank’s interest in Ratchthani was 48.35 percent. On 1 November 2011, the Bank also purchased 437,486,500 additional shares at Baht 1.52 per share, or for a total of Baht 665 million, resulting in the Bank’s shareholding increasing to 65.18 percent of the total shares in issued. The investment was therefore treated as investment in subsidiary. Such purchase of additional ordinary shares is deemed to be a step acquisition. Under the Financial Reporting Standard, the Bank had to assess the value of the investment at equity held on the date before the business combination, using the fair value at the purchase date, and the Bank realised the gain of Baht 33 million in profit or loss in the statements of comprehensive income.
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Annual Report 2011 Thanachart Bank Public Company Limited
Amount (Million Baht) Fair value of investment at equity as at the purchase date before business combination
556
Less: Investment value at equity before business combination
(523)
Gain on revaluation of investment recognised in profit or loss
33
In addition, under the business combination, the Bank has to estimate the fair value of each asset and liability for the purpose of allocating the cost of business combination. The fair value of the assets and liabilities of Ratchthani Plc. (“THANI�) and the carrying value of each significant account as at the date the Bank obtained control over THANI is as follow: (Unit: Million Baht) Book value
Fair value
11,842
11,576
45
62
Other assets
1,502
1,512
Total liabilities
11,278
11,278
2,111
1,872
Loans Land, premises and equipment
Net assets value Cost of business combination
1,221
In allocating the purchase price, the cost of business combination does not differ from the net adjusted book value of the assets and liabilities at the purchase date, at the purchase portion, and thus no goodwill arose from this business combination. In addition, the Bank did not recognise deferred tax assets of Baht 72 million arising from the adjustment of assets to fair value since this accounting standard is not yet effective in the year of business combination. However, if the Bank had applied such standard on that date, deferred tax assets as at 31 December 2011 would be decreased to Baht 48 million (effect from the tax rates enacted at the year-end date). Therefore, the consolidated financial statements of the Bank included the statement of financial position of Ratchthani Leasing Plc. as at 31 December 2011, and the consolidated statements of comprehensive income included income and expenses from such company from 1 November 2011 (the date that Thanachart Bank assumed control) to 31 December 2011. The Bank recognised net loss from THANI totaling Baht 27 million from the date that the Bank assumed control based on its shareholding interest.
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For additional information to facilitate evaluation of the financial impact of the business combination, proforma consolidated total income and profit of the Bank and its subsidiaries for the year are presented below, inclusive of income and profit of Ratchthani Leasing Plc. as if business combination had occurred since the beginning of the year. (Unit: Million Baht) For the year ended 31 December 2011 Total income as if business combination occurred on 1 January 2011
66,947
Profit attributable to the Bank as if business combination occurred on 1 January 2011 (exclude elimination transactions before the purchase date)
e)
7,700
The consolidated statements of comprehensive income for the year ended 31 December 2010 include the operating results of SCIB and the subsidiaries held by SCIB from 9 April 2010 to 31 December 2010 because the Bank purchased the ordinary shares of SCIB and assumed control over SCIB in April 2010.
f)
In May 2011, SCIB disposed of investments in common shares of Siam City Asset Management Co., Ltd. to former shareholders for Baht 198 million. The gain on disposal of Baht 26 million was recognised in the consolidated financial statements. In addition in August 2011, SCIB disposed of investments in common shares of SCIB Securities Co., Ltd. for Baht 168 million, with gain on disposal of Baht 40 million recognised in the consolidated financial statements.
g)
The consolidated statements of comprehensive income for the year ended 31 December 2010 included the operating results of T Leasing Co., Ltd. from 1 January 2010 until 30 April 2010, the date of disposal of the investment, and the gain on such disposal of Baht 24 million was recognsied in the consolidated financial statements.
h)
All subsidiaries are fully consolidated as from the acquisition, being the date on which the Bank obtains control, and continue to be consolidated until the date when such control ceases. However, the consolidated statement of financial position as at 31 December 2010 and the consolidated statements of comprehensive income for the years ended 31 December 2011 and 2010 did not include the financial position and operating results of a subsidiary company, Chada Thong Properties Co., Ltd., in which the Bank has indirectly held by SCIB at 70 percent, because that subsidiary has ceased its operations and is in the process of being liquidated. SCIB has already made a full allowance for impairment in the value of its investment in that subsidiary. However, during the third quarter of 2011, SCIB sold out all of its investment.
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Annual Report 2011 Thanachart Bank Public Company Limited
i)
The financial statements of the subsidiaries are prepared for the same reporting period as the Bank, using the same significant accounting policies. In case where there are different accounting policies the Bank has adjusted the effect of these in the consolidated financial statements.
j)
The outstanding balances and significant intercompany transactions between the Bank and its subsidiaries have been eliminated from the consolidated financial statements. The investments in subsidiaries as recorded in the Bank’s and subsidiaries’ books of accounts have been eliminated against equity of the subsidiaries.
k)
Non-controlling interests represent the portion of profit or loss and net assets of the subsidiaries that are not held by the Bank and are presented separately in the consolidated statement of comprehensive income and within equity in the consolidated statement of financial position.
3.3
The separate financial statements, which present investments in subsidiary and associated companies under the cost method, have been prepared solely for the benefit of the public.
4.
Adoption of new accounting standards during the year During the current year, the Bank and its subsidiaries adopted a number of revised and new accounting standards, issued by the Federation of Accounting Professions, as listed below. Accounting standards: TAS 1 (revised 2009)
Presentation of Financial Statements
TAS 2 (revised 2009)
Inventories
TAS 7 (revised 2009)
Statement of Cash Flows
TAS 8 (revised 2009)
Accounting Policies, Changes in Accounting Estimates and Errors
TAS 10 (revised 2009)
Events after the Reporting Period
TAS 11 (revised 2009)
Construction Contracts
TAS 16 (revised 2009)
Property, Plant and Equipment
TAS 17 (revised 2009)
Leases
TAS 18 (revised 2009)
Revenue
TAS 19
Employee Benefits
TAS 23 (revised 2009)
Borrowing Costs
TAS 24 (revised 2009)
Related Party Disclosures
TAS 26
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TAS 27 (revised 2009)
Consolidated and Separate Financial Statements
TAS 28 (revised 2009)
Investments in Associates
TAS 29
Financial Reporting in Hyperinflationary Economies
TAS 31 (revised 2009)
Interests in Joint Ventures
TAS 33 (revised 2009)
Earnings per Share
TAS 34 (revised 2009)
Interim Financial Reporting
TAS 36 (revised 2009)
Impairment of Assets
TAS 37 (revised 2009)
Provisions, Contingent Liabilities and Contingent Assets
TAS 38 (revised 2009)
Intangible Assets
TAS 40 (revised 2009)
Investment Property
Financial reporting standards: TFRS 2
Share-Based Payment
TFRS 3 (revised 2009)
Business Combinations
TFRS 5 (revised 2009)
Non-current Assets Held for Sale and Discontinued Operations
TFRS 6
Exploration for and Evaluation of Mineral Resources
Financial Reporting Standard Interpretations: TFRIC 15
Agreements for the Construction of Real Estate
Accounting Standard Interpretations: SIC 31
Revenue-Barter Transactions Involving Advertising Services
These accounting standards do not have any significant impact on the financial statements for the current year, except for TAS 19 “Employee Benefits�. TAS 19 Employee Benefits This accounting standard requires employee benefits to be recognised as expense in the period in which the service is performed by the employee. In particular, an entity has to evaluate and make a provision for post-employment benefits using actuarial techniques. The Bank and its subsidiaries previously accounted for such employee benefits when they were incurred.
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Annual Report 2011 Thanachart Bank Public Company Limited
The Bank and its subsidiaries have changed this accounting policy in the current year and recognise the liability in the transition period through an adjustment to the beginning balance of retained earnings in the current year. The change has the effect of decreasing the beginning balance of retained earnings of the Bank and its subsidiaries by Baht 2,266 million (Separate financial statements: decreasing retained earnings by Baht 356 million). The cumulative effect of the changes in accounting policy has been presented in “Cumulative effect of change in accounting policy for employee benefits” in the statements of changes in equity. In addition, the change has the effect of decreasing the profit of the Bank and its subsidiaries for the year ended 31 December 2011 by Baht 184 million, or Baht 0.033 per share (Separate financial statements: decreasing profit by Baht 50 million or Baht 0.009 per share). 5.
New accounting standards issued during the year not yet effective The Federation of Accounting Professions issued the following new/revised accounting standards that are effective for fiscal years beginning on or after 1 January 2013. Accounting standards: TAS 12
Income Taxes
TAS 20 (revised 2009) Accounting
for
Government
Grants
and
Disclosure
of
Government Assistance TAS 21 (revised 2009) The Effects of Changes in Foreign Exchange Rates Accounting Standard Interpretations: SIC 10
Government Assistance - No Specific Relation to Operating Activities
SIC 21
Income Taxes - Recovery of Revalued Non-Depreciable Assets
SIC 25
Income Taxes - Changes in the Tax Status of an Entity or its Shareholders
The Bank and its subsidiaries’ management believe that these accounting standards will not have any significant impact on the financial statements for the year when they are initially applied, except for TAS 12 “Income Taxes”.
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TAS 12 Income Taxes This accounting standard requires an entity to identify temporary differences, which are differences between the carrying amount of an asset and liability in the accounting records and its tax base, and to recognise deferred tax assets and liabilities under the stipulated guidelines. At present, the management of the Bank and its subsidiaries is evaluating the impact on the financial statements in the year when this standard is adopted. 6.
Significant accounting policies
6.1
Revenue recognition a)
Interest and discounts on loans Interest on loan is recognised as income on an accrual basis, based on the amount of principal outstanding. Interest on hire purchase and financial lease is recognised on the effective interest rate. For loans on which principal or interest payments have been defaulted for more than three months past the due date, the Bank and its subsidiaries cease accrual of interest income, and accrued interest already recorded is reversed from the Bank and its subsidiaries’ accounts. Interest is then recognised as income on a cash basis until settlement of such overdue balance has been received from the debtors. Interest income on restructured loans is recognised as income on an accrual basis, with reference to the interest rate stipulated in the agreements, with the exception of interest on loans that are subject to monitoring for compliance with restructuring conditions, which the Bank and its subsidiaries recognise as income on a cash basis until the receivable is able to comply with the restructuring conditions for a period of no less than three months or three installments, whichever is longer. The Bank and its subsidiaries recognise interest income on investments in purchased/transferred loans for which loan repayment is received during the year based on the effective yield rate of the portfolio by the new book value (acquisition cost) of the outstanding balances of receivables. After the restructuring, interest income is recognised by the effective interest rate method for those receivables from which loan repayment was received during the year.
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Annual Report 2011 Thanachart Bank Public Company Limited
Interest or discounts already included in the face value of notes receivable or loans are recorded as deferred interest and taken up as income evenly throughout the term of the notes or loans or in proportion of debt repayment. Interest income received in advance on hire purchase represents discounted on interest given to debtors by dealers, is recognised based on the effective interest method, in the same manner as interest income on hire purchase receivables. b)
Interest and dividends on investments Interest on investments is recognised as income on an accrual basis based on the effective interest rate. Dividends are recognised as income when the right to receive the dividends is established.
c)
Brokerage fee income Brokerage fees on trading of securities and derivatives are recognised as income on the transaction date.
d)
Interest on margin loans for purchase of securities Interest on margin loans for purchases of securities is recognised as income over the term of the loans based on the amount of principal outstanding. The subsidiary companies cease accruing interest for certain loans that fall under the conditions set by the Securities and Exchange Commission (“SEC�).
e)
Gains (losses) on investments and derivatives Gains (losses) on investments and derivatives are recognised as income/ expenses on the transaction date.
f)
Fees and service income Fees and service income are recognised as income on an accrual basis.
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99
g)
Insurance/life insurance premium income Non-life insurance business Insurance premium income on insurance policies is recognised on the date the insurance policy comes into effect, after deducting premium ceded and refunded for insurance policies with coverage periods of up to 1 year. For long-term insurance policies with coverage periods of longer than 1 year, related revenues and expenses are recorded as unearned and prepaid items, and amortised to income and expenses over the coverage period. Insurance premium income is recognised after deducting unearned premium reserve. Reinsurance premium income is recognised when the reinsurer places the reinsurance application or statement of accounts. Life insurance business Premium income is recognised as income on the date the insurance policy comes into effect, after deducting premium ceded and refunded. For renewal policy, premium income is recognised as income when the premium is dued, only if the policy is still in force at the year-end date.
6.2
Expenses recognition a)
Interest expenses Interest expenses are charged to expenses on an accrual basis. Interest on notes payable included in the face value is recorded as deferred interest and amortised to expenses evenly throughout the term of the notes.
b)
Commission and expenses charged on hire purchase/financial leases For hire purchase/financial lease contracts originating on or after 1 January 2007, initial direct expenses at the inception of a hire purchase/financial lease contract (i.e. commission expenses and stamp duty expenses) are to be deferred and amortised using the effective interest method, with amortisation deducted from interest income throughout the contract period, in order to reflect the effective rate of return on the contracts. Unearned income on hire purchase/financial leases is presented net of commission expenses and initial direct cost on the inception of the contracts.
c)
Fees and service expenses Fees and service expenses are recognised as expenses on an accrual basis. 19
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Annual Report 2011 Thanachart Bank Public Company Limited
6.3
Investments Investments in securities held for trading are stated at fair value. Changes in the fair value of the securities are recorded in profit or loss in the statements of comprehensive income. Investments in available-for-sale securities are stated at fair value. Changes in the fair value of these securities are recorded in other comprehensive income in the statements of comprehensive income, and will be recognised in profit or loss when the securities are sold. Investments in held-to-maturity debt securities are recorded at amortised cost. Premiums/discounts on debt securities are amortised/accreted by the effective rate method with the amortised/accreted amount presented as an adjustment to the interest income. Investments in non-marketable equity securities, which are classified as other investments, are stated at cost net of allowance for impairment (if any). The Bank and its subsidiaries do not treat investments in mutual funds, in which they hold not less than 20 percent of the units issued, as investments in subsidiary or associated companies because the Bank and its subsidiaries do not have control or influence over the financial and operating policies of these funds, which are independently managed by the fund manager in accordance with the details of each fund project and are under the supervision of the Securities and Exchange Commission. The fair value of marketable securities is based on the latest bid price of the last working day of the year. The fair value of debt securities is determined using the yield rates quoted by the Thai Bond Market Association, other markets, or yield rate of government bond adjusted by an appropriate risk factor. The fair value of unit trusts is determined from their net asset value. The fair value of investments which have embedded derivatives was determined using an internal model because there is no active market. (2011: the fair value was determined using the fair value as estimated by the seller). The gains/losses arising from revaluation are recognised in profit or loss. This method of measurement is in compliance with the principles stipulated by the BOT. The Bank and its subsidiaries recognised loss on impairment (if any) of available-for-sale securities, held-to-maturity debt securities and other investments in part of profit or loss in the statements of comprehensive income.
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Annual Report 2011 Thanachart Bank Public Company Limited
101
In the event of the Bank and its subsidiaries’ transfer investments to another category, the investments are valued at their fair valued prevailing on the transfer date. Differences between the carrying amount of the investments and their fair value on that date are recorded as profit or loss in the statements of comprehensive income or surplus (deficit) from revaluation of investments, which is presented as a separate item in equity and amortised over the remaining period to maturity of the debt securities, depending on the type of investment which is reclassified. On disposal of an investment, the difference between net disposal proceeds and the carrying amount of the investment is recognised as income or expenses in part of profit or loss in the statement of comprehensive income. In case of disposal partial of the investment, the carrying value per share used to calculate the cost of the portion sold is determined using the weighted average method. 6.4
Investments in receivables purchased and allowance for impairment Investments in receivables purchased are presented at their acquisition cost net of allowance for impairment (if any). Loss on impairment is recognised as an expense in part of profit or loss in the statements of comprehensive income. In case that the receivables purchased enter into troubled debt restructuring agreements, they are transferred to loans and presented at fair value. The fair value is determined based on the outstanding balance of investments as at the transfer date or as at the date of restructuring. Allowance for impairment of investments in receivables purchased is determined based on the fair value, with reference to the collateral value.
6.5
Investments in subsidiary and associated companies Investments in subsidiary and associated companies in the separate financial statements are accounted for under the cost method net of allowance for impairment
(if any). Loss
on impairment is recognised as expenses in part of profit or loss in the statements of comprehensive income.
21
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Annual Report 2011 Thanachart Bank Public Company Limited
Investments in associated companies in the consolidated financial statements are accounted for under the equity method. Under this method, investments are initially recorded at acquisition cost and are adjusted to reflect the attributable shares of the net income from the operations of the associated companies, in proportion to the investment. 6.6
Loans Loans are stated at the principal balances, excluding accrued interest receivable, except for overdrafts which are presented at the principal balances plus accrued interest receivable. Unrecognised deferred income and discounts on loans are deducted from the loan balances. Hire purchase receivables and financial lease receivables are stated at the contract value of the hire purchase receivables and financial lease receivables net of unearned income, which is presented after netting commission expenses and initial direct cost on the inception of the contracts. Securities and derivatives business receivables comprise the net balances of securities business receivable and derivatives business receivables. Securities business receivable comprises receivable balances of credit balance accounts (for which the securities purchased are used as collateral), securities borrowing and lending receivables and guarantee deposit receivables (which comprise cash placed as guarantee for borrowers of securities or Thailand Securities Depository) as well as other receivables, such as overdue amounts in cash accounts and securities receivables which are under legal proceedings, are undergoing restructuring, or are being settled in installments. The receivable balance of cash accounts is presented as “Receivable from purchase and sale of securities and derivatives�.
6.7
Allowances for doubtful accounts a)
The Bank and its subsidiary companies that operate in banking and asset management business provide allowance for doubtful accounts in accordance with the Notifications of the BOT and adjust these by the additional amount which is expected not to be collectible based on an evaluation of the current status of the debtors, taking into consideration the recovery risk and the value of collateral. Increase (decrease) in an allowance for doubtful accounts is recognised as an expense during the year.
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Annual Report 2011 Thanachart Bank Public Company Limited
103
The Bank and its subsidiary companies set provision for normal loans (including restructured receivables) and special mention loans at minimum rates of 1% and 2%, respectively, of the loan balances (excluding accrued interest receivable) net of collateral value, as required by the BOT’s guidelines. Collateral values include values of vehicles under hire purchase and finance lease contracts. For nonperforming loans, provision is set at a rate of 100% of the debt balance remaining after deducting the present value of expected future cash flows from debt collection or the present value of expected cash flows from collateral disposal, based on the use of a discount rate and assumptions as to the time needed to dispose of the collateral, in accordance with the BOT’s guideline. However, non-performing hire purchase receivables and financial lease receivables are treated as uncollateralised. b)
Subsidiaries engaged in securities business have provided an allowance for doubtful accounts based on a review of debtors’ repayment capability, taking into consideration the risk of recovery and the value of collateral. An allowance is set aside for doubtful debts not fully covered by collateral and/or those which may not be fully recovered. Such debt classifications and provisions are made in accordance with the Notifications of the SEC.
c)
Subsidiaries engaged in hire purchase and leasing businesses have provided allowance for doubtful accounts at percentages of the amount of principal outstanding net of unearned income, based on the number of months overdue (with reference to the classification of loans under BOT’s guidelines). Allowance for doubtful accounts is provided based on the loan balances after net of collateral value for receivables overdue no more than 3 months, while provided based on the loans balance without deducting collateral value for receivables overdue more than 3 months.
d)
Allowance for doubtful accounts of other receivables is based on the amount of debt that may not be collectible, determined from a review of the current status of the receivables as at the financial reporting date.
e)
The Bank writes off hire purchase receivables when full allowance for doubtful accounts has been made for such receivables. For other loans, the Bank and its subsidiaries will be written off when the relevant criteria under tax law are met. Amounts written off as bad debts or bad debt recovery are deducted from or added to the allowance for doubtful accounts.
23
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Annual Report 2011 Thanachart Bank Public Company Limited
6.8
Troubled debt restructuring In cases where the debt restructuring involves modifications of the terms, the fair value of the receivables after restructuring is based on the net present value of expected future cash flows, discounted by the market’s minimum interest rate for credit to large customers as at the date of the debt restructuring. The differences between the fair values of receivables as of the restructuring date and their previous book values is recorded in “Revaluation allowance for debt restructuring”, and recognised as an expense in part of profit or loss in the statements of comprehensive income in the restructuring period. The Bank and its subsidiaries review such revaluation allowance based on the net present value of future cash flows over the remaining period to maturity, recognising adjustments against bad debt and doubtful accounts. In cases where the troubled debt restructuring involves the transfer of assets or equity, the Bank and its subsidiaries record the assets or equity interest received as a result of debt restructuring at their fair value (based on the value appraised by internal appraisers or external independent appraisers) providing this does not exceed the amount of principal legally claimable from the debtor (including interest of which recognition has ceased until the restructuring date). Any excess of the fair value of the assets over the book value is recognised as interest income in part of profit or loss in the statement of comprehensive income. Losses arising from debt restructuring through waivers of part of principal or recorded accrued interest receivable are recognised in part of profit or loss in the statement of comprehensive income when incurred.
6.9
Recognition and amortisation of customers’ assets Assets which customers have placed with the subsidiary companies for securities trading, in term of cash accounts and credit balance accounts, including amounts which customers have placed as security for derivative trading, are recorded as assets and liabilities of the subsidiary companies for internal control purpose. As at the reporting date, the subsidiary companies write off those amounts which there are no guarantee obligations from both assets and liabilities and present only those assets which belong to the subsidiary companies.
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Annual Report 2011 Thanachart Bank Public Company Limited
105
6.10 Property foreclosed Property foreclosed is stated at the lower of cost (fair value with reference to appraisal value, providing this does not exceed the legally claimable amount of debt) or net realisable value, which is determined with reference to the latest appraisal value less estimated selling expenses, adjusts these in accordance with the BOT’s guideline and taking into consideration the type and the nature of the assets. Gains on disposal of property foreclosed are recognised in part of profit or loss in the statements of comprehensive income on the disposal date, unless the purchase is made with a loan from the Bank. In such cases, gains are recognised in accordance with the BOT’s guideline. Losses on disposal and impairment losses are recognised as expenses in part of profit or loss in the statements of comprehensive income. 6.11 Land, premises and equipment and depreciation a)
Land and assets under installation are stated at cost, and depreciation is not provided.
b)
Premises and equipment are stated at cost less accumulated depreciation and allowance for impairment (if any). Depreciation is calculated by reference to their cost on a straight-line basis over the following estimated useful lives: Buildings
-
20 - 30
years
Buildings improvement
-
5 - 10
years
Furniture, fixtures and equipment
-
3 - 10
years
Motor vehicles
-
5
years
Depreciation is included in determining income. c)
Land, premises and equipment are derecognised upon disposal or when no future economic benefits are expected from their use. Any gain or loss arising on disposal of these assets (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in profit or loss in the statements of comprehensive income.
6.12 Intangible assets and amortisation Intangible assets acquired through business combination are initially recognised at their fair value on the date of business acquisition while intangible assets acquired in other cases are recognised at cost. Following the initial recognition, the intangible assets are carried at cost less any accumulated amortisation and any accumulated impairment losses (if any).
25
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Annual Report 2011 Thanachart Bank Public Company Limited
The Bank and its subsidiaries amortised intangible assets with finite lives on a systematic basis over the economic useful life and tested for impairment whenever there is an indication that the intangible asset may be impaired. The amortisation period and the amortisation method of such intangible assets are reviewed at least at each financial year end. The amortisation expense and loss on impairment are recognised as expenses in part of profit or loss in the statements of comprehensive income. The intangible assets with finite useful lives have useful lives of approximately 3 - 10 years. No amortisation for computer software under development. 6.13 Leasehold rights Leasehold rights are stated at cost less accumulated amortisation. Leasehold rights are amortised on a straight-line basis over the lease periods and the amortisation amounts are recognised as expenses in part of profit or loss in the statements of comprehensive income. 6.14 Business combination and goodwill Business combination accounted for under purchase method. Goodwill is initially recorded at cost, which equals the excess of the cost of business combination over the fair value of the net assets acquired. Goodwill is carried at cost less any accumulated impairment losses. Goodwill is tested for impairment annually and when circumstances indicate that the carrying value may be impaired. 6.15 Receivables from/payable to Clearing House Receivables from/payable to Clearing House comprises the net balance receivable/ payable in respect of securities and derivatives trades. These include amounts pledged with the Derivatives Clearing House as security for derivatives trading.
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Annual Report 2011 Thanachart Bank Public Company Limited
107
6.16 Securities purchased under resale agreements/securities sold under repurchased agreements The Bank and its subsidiaries enter into agreements with private entities to purchase/sell securities whereby there is an agreement to resell/repurchase the securities at certain dates and at fixed price. Amounts paid for the securities purchased are presented as assets under the caption of interbank and money market items or loans, depending on the counter party, and the underlying securities are treated as collateral to such receivables. The securities sold under repurchase agreement at the amounts received are presented as liabilities under the caption of interbank and money market items and the underlying securities are treated as collateral. 6.17 Premium due and uncollected and allowance for doubtful accounts Premium due and uncollected is carried at its net realisable value. Subsidiary companies provide an allowance for doubtful accounts based on the estimated loss that may be incurred in the collection of the premium due, on the basis of collection experience and a review of current status of the premium due as at the financial reporting date. 6.18 Reinsurance assets and liabilities Reinsurance assets represent balances due from reinsurance companies, deposits placed for reinsurance and insurance reserve to recover from reinsurers. Insurance reserve to recover from reinsurers are estimated in a manner consistent with the outstanding claims provision or settled claims associated with the reinsurer’s policies, and are in accordance with the related reinsurance contracts. Reinsurance liabilities represent balances due to reinsurance companies and deposits for reinsurance held by the subsidiaries. The amounts payable on reinsurance are estimated in a manner consistent with the related reinsurance contracts.
27
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Annual Report 2011 Thanachart Bank Public Company Limited
6.19 Unearned premium/life insurance premium reserve Non-life insurance contract The subsidiaries set up gross unearned premium reserve in accordance with the followings: Marine and transportation (cargo)
-
Net premium written for the last ninety days
Traveling accident with coverage of not more
-
than 6 months Others
Net premium written for the last thirty days
-
Monthly average basis (the one-twenty fourth basis)
In 2011, the Office of the Insurance Commission (“OIC�) has required that insurers allocate an additional gross unexpired risk reserve in an amount not less than the difference between gross unexpired risk reserve and unearned premium reserve, in cases where gross unexpired risk reserve is higher than unearned premium reserve. Gross unexpired risk reserve is calculated based on an actuarial method using a best estimate of expected claims over the remainder of the insured period, based on historical data. Life insurance contract Life assurance policy reserve represents the accumulated total liabilities for estimated future claims under all policies in force as at the financial statement date. Subsidiaries determine life assurance policy reserve under long-term policies by using the higher of the net level premium valuation method (NPV) and the gross premium valuation method (GPV). Life assurance policy reserve under NPV method is a type of actuarial method with the main assumptions used relating to mortality rate, morbidity rate, longevity and discount rates. Calculation of life assurance policy reserve under GPV method is another type of actuarial method with main assumptions used relating to lapse rate or surrender rate, selling and administrative expenses, mortality and morbidity rate, discount rates and non-guaranteed dividend rate. This calculation method is in compliance with the bases stipulated in the OIC’s notification regarding valuation of assets and liabilities of life insurance company (2011).
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Annual Report 2011 Thanachart Bank Public Company Limited
109
6.20 Loss reserve and outstanding claims/Benefits payment to life policy Non-life insurance contract Outstanding claims are recorded at the actual amount to be paid. Loss reserve is recorded upon the receipt of the claims advice from the insured based on the number of claims notified by the insured and estimates made by a subsidiary’s management. The estimated value of losses is limited to not more than the sum insured of the related insurance policies. In addition, in 2011, the OIC changed the method to be used for setting additional reserve for incurred but not reported (IBNR) claims. The reserve is calculated using an international standard actuarial method, based on the best estimated of claims expected to be paid in the future for losses occurring before or as at the financial statement date, including both reported and unreported claims, net of loss reserve already recorded (Formerly, the subsidiary set up additional provision for IBNR at the higher of the reserve calculated using actuarial method minus the recorded amount or outstanding claims, and 2.5 percent of total net premiums written in the previous twelve months). Life insurance contract Benefits paid under life policies are provided for upon receipt of the claims advices from the insured or in accordance with the conditions of the policy. 6.21 Long-term leases Leases that transfer substantially all the risks and rewards of ownership to the Bank and its subsidiaries are classified as financial leases. Financial leases are capitalised at the lower of the fair value of the leased assets and the present value of the minimum lease payments. The outstanding rental obligations, net of finance charges, are included in other payables, while the interest element is charged to profit or loss in the statement of comprehensive income over the lease period. Assets acquired under finance leases are depreciated over their estimated useful lives. Lease not transferring a significant portion of the risks and rewards of ownership to the lessee are classified as operating leases. Advance payments made under operating leases is recorded as leasehold rights, and then amortise as expenses over the term of the leases on the straight - line basis. Moreover, payments made under operating leases are recognised as expenses over the term of the leases on the straight-line basis.
29
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Annual Report 2011 Thanachart Bank Public Company Limited
6.22 Sales of commercial paper The Bank and its subsidiary company which operates in banking business recorded commercial paper with an aval by the Bank, or without an aval or acceptance which is sold with recourse, as a liability under the caption of “Liabilities under commercial paper sold”. Commercial paper sold at a discount with recourse, which is avaled by or has acceptance from a commercial bank or other finance company, is recorded by crediting the notes receivable account, and the obligations disclosed as part of “Contingent liabilities”. 6.23 Financial derivatives The Bank and its subsidiaries have entered into off-balance transactions involving derivative financial instruments in order to manage risk of the Bank and its subsidiaries and in response to customer needs. Forward foreign currency contracts which originated for trading purposes are recorded as off-balance items. Gains or losses arising from changes in the fair value of the contracts are recognised as part of profit or loss in the statement of comprehensive income. Forward foreign currency contracts, interest rate swap contracts and cross currency and interest rate swap contracts which were not originated for trading purposes are recorded as off-balance items, and presented on an accrual basis. Foreign currency components are translated at the year-end exchange rate, in the same manner as the hedged items, with unrealised gains or losses on translation recognised as part of profit or loss in the statement of comprehensive income. Interest rate components are presented on an accrual basis, in the same manner as the hedged assets or liabilities, with gains or losses recorded to interest income and interest expense over the terms of the contracts. Receivables and payables under exchange contracts are presented at the net amount in the statement of financial position. The subsidiaries record obligations in respect of futures contracts made for trading purposes as off-balance items. Gains or losses from changes in the fair value of financial derivatives contracts are recorded in profit of loss. Fair value is determined based on the daily settlement price quoted by Thailand Futures Exchanges Public Company Limited. If the fair value of financial derivatives cannot be determined with reference to market price, it is determined by a technical and valuation model, in which the variables used, will be derived from the observable markets.
30
Annual Report 2011 Thanachart Bank Public Company Limited
111
6.24 Related party transactions Related parties comprise enterprises and individuals that control, or are controlled by, the Bank and its subsidiaries, whether directly or indirectly, or which are under common control with the Bank and its subsidiaries. They also include associated companies and individuals which directly or indirectly own a voting interest in the Bank and its subsidiaries that give them significant influence over the Bank and its subsidiaries, key management personnel, directors and officers with authority in the planning and direction of the Bank’s and its subsidiaries’ operations. 6.25 Impairment of assets The Bank and its subsidiaries assess at each financial reporting date whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Bank and its subsidiaries realise loss on impairment when the asset’s recoverable amount is less than the book value. An asset’s recoverable amount is the higher of an asset’s fair value less costs to sell and its value in use. Fair value less costs to sell reflects the amount that the Bank and its subsidiaries could obtain at the financial reporting date from the disposal of the asset in an arm’s length transaction between knowledgeable, willing parties, after deducting the costs of disposal. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. The Bank and its subsidiaries recognise impairment losses as expenses in part of profit or loss in the statement of comprehensive income. In assessing impairment of asset other than goodwill, if there is any indication that previously recognised impairment losses may no longer exist or may have decreased, the Bank and its subsidiaries estimate the asset’s recoverable amount. A previously recognised impairment loss for assets other than goodwill is reversed only if there has been a change in the assumptions used to determine the asset’s recoverable amount since the last impairment loss was recognised. The increased carrying amount of the asset attributable to a reversal of an impairment loss shall not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. Such reversal is recognised in part of profit or loss in the statement of comprehensive income.
31
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Annual Report 2011 Thanachart Bank Public Company Limited
6.26 Employee benefits a)
Short-term employee benefits The Bank and its subsidiaries recognised short-term employee benefits, such as salary, wages, bonuses, contributions to the social security fund, and vacation, as expenses when incurred.
b)
Post-employment benefits (Defined contribution plans) The Bank, its subsidiaries and its employees have jointly established a provident fund. The fund is monthly contributed by employees and by the Bank and its subsidiaries. The fund’s assets are held in a separate trust fund, and the Bank and its subsidiaries contributions are recognised as expenses when incurred.
c)
Post-employment benefits (Defined benefit plans) The Bank and its subsidiaries have obligations in respect of the severance payments it must make to employees upon retirement under labor law. The Bank and its subsidiaries treat these severance payment obligations as a defined benefit plan. The obligation under the defined benefit plan is determined by a professionally qualified independent actuary, using the projected unit credit method. Actuarial gains and losses arising from post employment benefits are recognized immediately in profit or loss. For the first-time adoption of TAS 19 Employee Benefits, the Bank and its subsidiaries elected to recognise the transitional liability, which exceeds the liability that would have been recognised at the same date under the previous accounting policy, through an adjustment to the beginning balance of retained earnings in the current year.
6.27 Foreign currencies Foreign currency transactions are translated into Baht at the exchange rates ruling at the transaction dates. Monetary assets and liabilities denominated in foreign currencies and commitment outstanding on the financial reporting date have been translated into Baht at the rates ruling at the financial reporting date. Exchange gains and losses arising from trading or translation of foreign currencies are included in determining income.
32
Annual Report 2011 Thanachart Bank Public Company Limited
113
6.28 Income tax Income tax is provided in the accounts at the amount expected to be paid to the taxation authorities, based on taxable profits determined in accordance with tax legislation. 6.29 Provisions Provisions are recognised when the Bank and its subsidiaries have a present obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. 7.
Significant accounting judgments and estimates The preparation of financial statements in conformity with generally accepted accounting principles at times requires management to make subjective judgments and estimates regarding matters that are inherently uncertain. These judgments and estimates affect reported amounts and disclosures; and actual results could differ from these estimates. Significant judgments and estimates are as follows:
7.1
Recognition and derecognition of assets and liabilities In considering whether to recognise or to derecognise assets or liabilities, the management is required to make judgment on whether significant risk and rewards of those assets or liabilities have been transferred, based on their best knowledge of the current events and arrangements.
7.2
Allowance for doubtful accounts for loans and allowance for impairment of investment in receivables Allowance for doubtful accounts for loans and allowance for impairment of investment in receivables are intended to adjust the value of loans for probable credit losses. The management uses the BOT’s and SEC’s regulations regarding the provision of allowance for doubtful accounts and judgments to estimate losses on outstanding loans when there is any doubt about the borrower’s capability to repay the principal and/or the interest. The allowances for loan losses are determined through a combination of specific reviews, probability of default, value of collateral and current economic conditions.
33
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Annual Report 2011 Thanachart Bank Public Company Limited
7.3
Allowance for impairment of investments in securities The Bank and its subsidiaries review an impairment of investments in securities when indication of impairment exists. The determination of what is indication of impairment requires the management’s judgment.
7.4
Fair value of financial instruments In determining the fair value of financial instruments that are not actively traded and for which quoted market prices are not readily available, the management exercised judgment, using a variety of valuation techniques and models. The input to these models is taken from observable markets, and includes consideration of liquidity, correlation and longer-term volatility of financial instruments.
7.5
Allowance for impairment of property foreclosed The Bank and its subsidiaries assess allowance for impairment of property foreclosed when net realisable value falls below the book value. The management uses the BOT’s regulation and judgment to estimate impairment losses, taking into consideration the latest appraisal value, the type and the nature of the assets.
7.6
Land, premises and equipment/Depreciation In determining depreciation of premises and equipment, the management is required to make estimates of the useful lives and salvage values of the premises and equipment, and to review estimate useful lives and salvage values when there are any changes. In addition, the management is required to review impairment of land, premises and equipment on a periodical basis and record impairment losses in the period when it is determined that their recoverable amounts are lower than the carrying amounts. This requires judgments regarding forecast of future revenues and expenses relating to the assets subject to the review.
34
Annual Report 2011 Thanachart Bank Public Company Limited
115
7.7
Goodwill and intangible assets The initial recognition and measurement of goodwill and intangible assets, and subsequent impairment testing, require management to exercise judgment as to the recoverable amount to be generated by the asset, using the discounted cash flows method, and including the selection of a suitable discount rate in order to determine the present value of that cash flow. The estimated cash flows may differ as a result of competitive forces, or changes in revenue trends, cost structures, and the discount rate, industry circumstances or related market conditions. In addition, the management estimates the useful life of those assets which have finite useful lives and revises such useful lives if there are any changes.
7.8
Finance lease/Operating lease When entering into lease agreement, the management is required to access and consider the scope of significant risk and rewards of ownership of the leased assets. Leases that transfer substantially all the risks and rewards of ownership to the leasee are classified as financial leases. In the other hand, leases not transferring a significant portion of the risks and rewards of ownership to the leasee are classified as operating leases.
7.9
Loss sharing from transfer of non-performing loans to TAMC In estimating losses arising from the transfer of non-performing loans to the Thai Asset Management Corporation (“TAMC�), the Bank uses the latest information received from TAMC and projections of the amounts expected to be received from the debtors or from debtors’ collateral value. The management uses judgment in determining the assumptions as to the percentage on the amount expected to be recovered from the debt restructuring agreement, or as to collateral value. The management considers these assumptions to be appropriate given the current available information and current situation
7.10 Unearned premium/Life insurance premium reserve Unexpired risk reserve is calculated under an actuarial method, which reflects the best estimate of losses expected to be incurred over the remaining period of the insurance. Estimating these reserves requires management to exercise judgment, with reference made to historical data and current best estimates at that time.
35
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Annual Report 2011 Thanachart Bank Public Company Limited
Life assurance policy reserve is calculated under an actuarial method, and adjusted upwards to reflect risk factors and deviations. The main assumptions used relate to policy termination or surrender rates, selling and administrative expenses, mortality rate, morbidity rate, longevity, expenses and discount rates. Estimating these reserves requires management to exercise judgments with reference made to historical data and current best estimates at that time. 7.11 Loss reserve and outstanding claims At each reporting date, subsidiaries estimate loss reserves and outstanding claims in two parts; loss incurred for which the claims advice has been received from the insured, and loss incurred but not yet reported (IBNR). The IBNR reserve is calculating by using an international standard actuarial method. The main assumptions underlying these techniques relate to historical claims experience, including development of estimates of paid and incurred losses, average costs per claim, and claim numbers. Estimating these reserves requires management to exercise judgment reflecting the best estimates available at that time. 7.12 Post-employment benefits under defined benefit plans Obligations under the defined benefit plan are determined by using actuarial technique. Such determination is made based on various assumptions, including discount rate, future salary increase rate, staff turnover rate, mortality rate, and inflation rates, based on their best knowledge of current situation. 7.13 Litigation and contingent liabilities The Bank and its subsidiaries have contingent liabilities as a result of litigation and contingent liabilities as a result of transfer of business and transfer of non-performing assets. The management has used judgment to assess of the results of the litigation, and in case where they believe that there will be no losses, they will provide no provisions and contingent liabilities as at the end of reporting period.
36
Annual Report 2011 Thanachart Bank Public Company Limited
117
8.
Interbank and money market items (assets) (Unit: Million Baht) Consolidated financial statements 2011 At call
2010
Term
Total
5,492
2,000
7,492
549
8,518
39
At call
Term
Total
4,821
26,000
30,821
9,067
854
21,022
21,876
8,238
8,277
42
14,545
14,587
197
22,618
22,815
150
16,079
16,229
6,277
41,374
47,651
5,867
77,646
83,513
Add: Accrued interest receivables
-
11
11
-
34
34
Less: Allowance for doubtful accounts
-
(193)
(193)
-
(162)
(162)
Domestic Bank of Thailand and Financial Institutions Development Fund Commercial banks Specialised financial institutions Other financial institutions Total
Total domestic items
6,277
41,192
47,469
5,867
77,518
83,385
1,449
13,470
14,919
776
169
945
Euro
119
-
119
119
-
119
Others
523
103
626
496
114
610
2,091
13,573
15,664
1,391
283
1,674
-
68
68
-
1
1
Total foreign items
2,091
13,641
15,732
1,391
284
1,675
Total
8,368
54,833
63,201
7,258
77,802
85,060
Foreign US Dollar
Total Add: Accrued interest receivables
37
118
Annual Report 2011 Thanachart Bank Public Company Limited
(Unit: Million Baht) Separate financial statements 2011 At call
2010
Term
Total
5,492
2,000
7,492
393
8,340
27
At call
Term
Total
3,178
12,000
15,178
8,733
109
10,820
10,929
8,200
8,227
30
-
30
196
22,769
22,965
115
1,570
1,685
6,108
41,309
47,417
3,432
24,390
27,822
Add: Accrued interest receivables
-
9
9
-
6
6
Less: Allowance for doubtful accounts
-
-
-
-
Domestic Bank of Thailand and Financial Institutions Development Fund Commercial banks Specialised financial institutions Other financial institutions Total
Total domestic items
(195)
(195)
6,108
41,123
47,231
3,432
24,396
27,828
1,449
13,470
14,919
347
70
417
Euro
119
-
119
7
-
7
Others
523
103
626
61
114
175
2,091
13,573
15,664
415
184
599
-
68
68
-
1
1
Total foreign items
2,091
13,641
15,732
415
185
600
Total
8,199
54,764
62,963
3,847
24,581
28,428
Foreign US Dollar
Total Add: Accrued interest receivables
As at 31 December 2011, the Bank had loan to a subsidiary company of Baht 150 million in the separate financial statements.
38
Annual Report 2011 Thanachart Bank Public Company Limited
119
9.
Derivatives As at 31 December 2011 and 2010, the notional amount and the fair value of trading derivatives, and the adjustments made on an accrual basis for banking book derivatives were classified by type of risk as follow. (Unit: Million Baht) Consolidated financial statements 2011
2010
Fair value/Adjustment on an accrual basis
Notional
Liabilities
Assets
Fair value/Adjustment on
amount*
an accrual basis Assets
Notional
Liabilities
amount*
Type of risk Foreign exchange rate Derivatives for trading Derivatives for banking book
858
820
63,491
509
295
53,139
-
1,706
31,788
3
5
3,488
64
60
5,957
72
67
5,657
-
-
3,967
-
-
13,681
29
9
2,212
959
235
8,533
585
291
15,445
1,574
339
21,529
-
-
641
-
-
-
1,536
2,886
123,501
3,117
941
106,027
Interest rate Derivatives for trading Derivatives for banking book Foreign exchange rate and interest rate Derivatives for trading Derivatives for banking book Others Derivatives for trading Total
* Disclosed only in case that the Bank and its subsidiaries have an obligation to pay
39
120
Annual Report 2011 Thanachart Bank Public Company Limited
(Unit: Million Baht) Separate financial statements 2011
2010
Fair value/Adjustment
Notional
Fair value/Adjustment
on an accrual basis Assets
Notional
on an accrual basis
Liabilities
amount*
Assets
Liabilities
amount*
854
811
63,491
109
90
20,853
-
1,706
31,788
3
5
3,488
64
60
5,957
-
-
-
-
-
3,667
-
-
12,532
29
9
2,212
-
-
-
585
291
15,445
816
339
13,479
1,532
2,877
122,560
928
434
50,352
Type of risk Foreign exchange rate Derivatives for trading Derivatives for banking book Interest rate Derivatives for trading Derivatives for banking book Foreign exchange rate and interest rate Derivatives for trading Derivatives for banking book Total
* Disclosed only in case that the Bank and its subsidiaries have an obligation to pay
Derivatives for banking book are obligations under contracts which are not held for trading, and are measured on an accrual basis. Gain (loss) on exchange at the end of the year is presented under derivatives assets/derivatives liabilities. Accrued interest receivables (payables) per the contracts are recorded as receivables and payables in other assets/liabilities. Below are the proportions of trading derivatives transactions classified by counterparty, determined based on the notional amount, as at 31 December 2011 and 2010. Consolidated financial statements Counterparties
Financial institutions Companies within Thanachart Group Third parties Total
Separate financial statements
2011
2010
2011
2010
Percent
Percent
Percent
Percent
80.01
73.91
79.83
86.29
-
-
0.89
-
19.99
26.09
19.28
13.71
100.00
100.00
100.00
100.00
40
Annual Report 2011 Thanachart Bank Public Company Limited
121
10.
Investments
10.1 Classified by type of investment (Unit: Million Baht) Consolidated financial statements 2011
Separate financial statements
2010
Cost/
2011
Cost/
Amortised
Amortised
cost
Fair value
cost
2010
Cost/
Cost/
Amortised Fair value
Amortised Fair value
cost
Fair value
cost
Trading securities Government and state enterprises 10,508
10,479
44
45
3,174
3,179
44
45
Private debt securities
securities
4,770
4,758
21
21
1,661
1,660
21
21
Foreign debt securities
642
637
3,015
3,023
642
637
-
-
34
38
74
80
-
-
-
-
15,954
15,912
3,154
3,169
5,477
5,476
65
66
Domestic marketable equity securities Add: Allowance for change in value
(42)
15 3,169
15,912
Net
(1)
1
5,476
66
Available-for-sale securities Government and state enterprises 40,877
41,003
52,685
52,604
38,431
38,554
15,764
15,708
Private debt securities
securities
18,389
18,533
9,898
10,064
13,529
13,600
2,945
2,981
Foreign debt securities
25,516
25,425
12,704
12,920
25,516
25,425
6,128
6,342
7,483
7,983
7,752
8,530
6,099
6,241
476
546
92,265
92,944
83,039
84,118
83,575
83,820
25,313
25,577
Domestic marketable equity securities
Add: Allowance for change in value Less: Allowance for impairment
683
1,083 (4)
(4) 92,944
Net
245
84,118
264
-
-
83,820
25,577
Held-to-maturity debt securities Government and state enterprises 26,876
27,771
36,138
36,849
17,642
18,096
18,986
Private debt securities
securities
6,592
6,689
5,874
6,070
1,600
1,647
-
-
Foreign debt securities
1,500
1,488
5,705
5,720
1,500
1,488
4,800
4,819
12
12
29
29
12
12
-
-
35,960
47,746
48,668
20,754
21,243
23,786
24,245
Investment in receivables purchased
34,980
19,426
Other investment Investment in property fund
671
845
671
234
3,794
4,064
3,776
97
84
84
84
3
4,549
4,993
4,531
334
Domestic non-marketable equity securities Foreign non-marketable equity securities
Less: Allowance for impairment Net Total investment - net
(40)
(4)
(40)
(4)
4,509
4,989
4,491
330
148,345
140,022
114,541
49,759
41
122
Annual Report 2011 Thanachart Bank Public Company Limited
10.2
Classified by due date of debt securities (Unit: Million Baht) Consolidated financial statements 2011
2010
Due within
Due within
Over
Less than 1 year
1 - 5 years
20,031
20,828
Private debt securities
1,557
Foreign debt securities
19,021
Total
Less than
Over
Total
1 year
1 - 5 years
18
40,877
31,162
21,492
31
14,836
1,996
18,389
4,175
5,600
123
9,898
6,495
-
25,516
904
11,800
-
12,704
40,609
42,159
2,014
84,782
36,241
38,892
154
75,287
35
103
41
179
15
278
8
301
40,644
42,262
2,055
84,961
36,256
39,170
162
75,588
5 years
5 years
Total
Available-for-sale securities Government and state enterprises securities
Add: Allowance for change in value Net
52,685
Held-to-maturity debt securities Government and state enterprises 5,157
15,659
6,060
26,876
3,650
11,032
21,456
36,138
Private debt securities
securities
3,990
2,288
314
6,592
1,346
3,063
1,465
5,874
Foreign debt securities
1,500
-
-
1,500
4,800
905
-
5,705
8
4
-
12
18
11
-
29
Total
10,655
17,951
6,374
34,980
9,814
15,011
22,921
47,746
Total debt securities
51,299
60,213
8,429
119,941
46,070
54,181
23,083
123,334
Investment in receivables
(Unit: Million Baht) Separate financial statements 2011
2010
Due within
Due within
Over
Less than 1 year
1 - 5 years
Less than
5 years
Total
1 year
Over 1 - 5 years
5 years
Total
Available-for-sale securities Government and state enterprises 18,399
20,014
18
38,431
10,302
5,462
-
15,764
Private debt securities
securities
975
12,554
-
13,529
2,076
781
88
2,945
Foreign debt securities
19,021
6,495
-
25,516
602
5,526
-
6,128
Total
38,395
39,063
18
77,476
12,980
11,769
88
24,837
32
71
-
103
10
179
5
194
38,427
39,134
18
77,579
12,990
11,948
93
25,031
4,938
12,704
-
17,642
3,201
7,316
8,469
18,986
Private debt securities
800
650
150
1,600
-
-
-
-
Foreign debt securities
1,500
-
-
1,500
4,800
-
-
4,800
8
4
-
12
-
-
-
-
7,246
13,358
150
20,754
8,001
7,316
8,469
23,786
45,673
52,492
168
98,333
20,991
19,264
8,562
48,817
Add: Allowance for change in value Net Held-to-maturity debt securities Government and state enterprises securities
Investment in receivables Total Total debt securities
42
Annual Report 2011 Thanachart Bank Public Company Limited
123
10.3 As at 31 December 2011, the Bank and its subsidiaries have a revaluation deficit arising from transfers of investments in debt securities, of which the current balances of Baht 3 million in the consolidated financial statements and Baht 34 million in the separate financial statements. These are presented in equity caption. (2010: Revaluation deficit of Baht 71 million in the consolidated financial statements, and revaluation deficit of Baht 94 million in the separate financial statements). 10.4 As at 31 December 2011, investments in held-to-maturity debt securities included nontransferable promissory notes amounting to Baht 4 million, which were received as a result of the transfer of non-performing loans to Thai Asset Management Corporation (“TAMC�) (2010: Baht 296 million). However, the agreed transfer price received in the form of promissory notes could be revised up or down after TAMC reviews the price, assesses the collateral or adjusts the price. As at 31 December 2011, the Bank is still unable to assess the exact amount of such losses since TAMC has been dissolved and is in the process of liquidation. However, the Bank estimated the contingent losses arising from the management of non-performing assets at approximately Baht 89 million (2010: Baht 89 million). Such amount has been shown as a part of provisions for liabilities. In addition, the Bank also shares joint responsibility with TAMC for future profits or losses arising from TAMC’s management of the non-performing assets as mentioned in Note 46.2 to the financial statements. 10.5 Investments in securities in which the Bank and its subsidiaries hold not less than 10 percent of the equity of the investee As at 31 December 2011 and 2010, investments in companies which the Bank and its subsidiaries hold not less than 10 percent of the equity of the investee, but which are not treated as subsidiaries or associated companies, separated by industry as follow: (Unit: Million Baht) Consolidated financial statements
Banking and finance sector
Separate financial statements
2011
2010
2011
2010
761
1,307
600
234
43
124
Annual Report 2011 Thanachart Bank Public Company Limited
The investments mentioned above include investments in unit trusts in which the Bank and its subsidiaries hold not less than 20 percent of the units issued. The Bank and its subsidiaries do not treat these investments as investments in subsidiaries or associates because the Bank and its subsidiaries do not have control or influence over the financial and operating policies of these funds, which are independently managed by fund managers in accordance with the details of each fund project, and are under the supervision of the SEC. The Bank and its subsidiaries therefore record them as availablefor-sale or other investments, based on their investment objectives. Separate financial statements
Consolidated financial statements 2010
2011
Securities
2011
2010
Net book
Percentage
Net book
Percentage
Net book
Percentage
value
of holding
value
of holding
value
of holding
value
of holding
Million
Percent
Million
Percent
Million
Percent
Million
Percent
Baht
Baht
Baht
Net book Percentage
Baht
The Thai Business Fund 3
144
60.00
355
60.00
144
60.00
158
26.67
Sub Thawee Property Fund
36
56.00
76
56.00
36
56.00
76
56.00
278
67.33
278
67.33
278
67.33
-
-
62
27.79
60
27.79
-
-
-
-
50
22.63
50
22.63
-
-
-
-
Business Strategic Fund Thanachart Long Term Fixed Income Fund Thanachart Fixed Income FIF 51
11.
Investments in subsidiary and associated companies
11.1 Separate financial statements As at 31 December 2011 and 2010, investments in subsidiary companies and an associated company in the separate financial statements stated under the cost method, consist of investment in ordinary shares of the following companies:
44
Annual Report 2011 Thanachart Bank Public Company Limited
125
(Unit: Million Baht) Separate financial statements Value of investment
Company’s name
Nature of business
Paid-up
Percentage
share capital
of holding (Percent)
2011
2010
2011
under the
2010
Dividend income
cost method
for the years
2011
2010
2011
2010
Subsidiary companies SCIB Plc. (Formerly known as “Siam Dissolution
21,128
21,128
99.98
99.95
32,542
68,835
260
-
TS Asset Management Co., Ltd.
City Bank Plc.”)
Asset management
2,000
-
100
-
2,000
-
-
-
Thanachart Securities Plc.
Securities business
1,500
1,500
100
100
1,858
1,858
345
210 -
Thanachart Life Assurance Co., Ltd. Thanachart Insurance Co., Ltd. Thanachart Group Leasing Co., Ltd.
Life - insurance
500
500
100
100
936
936
250
Non-life insurance
740
740
100
100
867
867
300
-
Hire purchase
360
360
100
100
400
400
203
148
1,342
-
65.18
-
1,201
-
-
-
broker
100
100
100
100
104
104
65
65
Fund management
100
100
75
75
97
97
97
83
Dissolution
10
10
100
100
13
13
-
-
Services
6
6
100
100
6
6
-
12
Training services
5
5
100
100
5
5
12
12
Services
10
-
100
-
5
-
-
-
-
761
-
-
-
40,795
73,121
1,532
530
47
-
-
-
47
-
-
-
40,842
73,121
1,532
530
Ratchthani Leasing Plc.
Hire-purchase and
Thanachart Broker Co., Ltd.
Non-life insurance
leasing business
Thanachart Fund Management Co., Ltd. Thanachart Legal and Appraisal Co., Ltd. Thanachart Management and Services Co., Ltd. Thanachart Training and Development Co., Ltd. SCIB Service Co., Ltd. Siam City Life Assurance Co., Ltd.
Life - insurance
700
-
100
Total investments in subsidiary companies Associated company Siam Samsung Life Insurance Co., Ltd.
Life - insurance
500
-
25
-
Total investments in an associated company Total investments in subsidiary and associated companies - net
After the entire business transfer from SCIB to Thanachart Bank, the Bank recognised intangible assets arising from the business combination of Baht 3,613 million and goodwill arising from the business combination of Baht 15,740 million in the separate financial statements by deducting them from the cost of investment in SCIB. This presentation is to reflect the business combination transactions in the separate financial statements. In addition, the Bank received a partial of capital return on investment in the form of dividend income. The Bank additional invested in TS Asset Management Co., Ltd., which was established in March 2011, with a shareholding of 100 percent.
45
126
Annual Report 2011 Thanachart Bank Public Company Limited
In October 2011, the Bank received the transfer of 437,250,000 shares in Ratchthani Leasing Plc. from SCIB, for a total of Baht 536 million. The Bank also purchased 437,486,500 additional shares from THANI at Baht 1.52 per share or for a total of Baht 665 million. As a result, the Bank’s shareholding increased from 48.35 percent to 65.18 percent and the status of Ratchthani Leasing Plc. was changed from an associated company to a subsidiary company. 11.2 Consolidated financial statements As at 31 December 2011 and 2010, investments in associated companies in the consolidated financial statements consist of investments in ordinary shares of the following companies which operate in Thailand: (Unit: Million Baht) Share of income (loss) for the Paid-up share capital Company’s name MBK Plc. (operating in
Value of investment
Percentage of holding
Cost method
Dividend income
Equity method
for the years 2011
periods ended 31 December
2011
2010
2011
2010
2011
2010
2011
2010
2010
2011
2010
1,886
1,886
9.90
9.90
984
984
1,389
1,530
93
89
132
160
500
500
25.00
25.00
104
104
34
81
-
-
(46)
(24)
-
40
-
45.50
-
92
-
109
10
-
(8)
17
-
823
-
48.35
-
403
-
457
12
-
78
54
1,088
1,583
1,423
2,177
property rental, hotel and services business) Siam Samsung Life Insurance Co., Ltd. (operating in life insurance business) Siam City Insurance Co., Ltd. (operating in non-life insurance business) Ratchthani Leasing Plc. (operating in hirepurchase and leasing business) Total investments in associated companies
115
89
156
207
The Bank and its subsidiaries classified investment in MBK Plc. as investments in an associated company, since the Parent company, the Bank and its subsidiaries had significant influence in that company. In August 2011, SCIB disposed of all of investments in ordinary shares of Siam City Insurance Co., Ltd.
46
Annual Report 2011 Thanachart Bank Public Company Limited
127
11.3 Cash flow information of an asset management company that is a subsidiary Cash flow information of TS Asset Management Company Limited, a subsidiary, for the year ended 31 December 2011 is as follows: (Unit: Million Baht) Cash flows from operating activities Profit before income tax
321
Adjustments to reconcile profit before income tax to net cash provided by (paid for) operating activities Reversal of bad debt and doubtful account Increase in allowance for impairment of property foreclosed Interest income - net
(221) 12 (188)
Cash received from interest income
232
Cash paid for interest expense
(83)
Income from operating activities before changes in operating assets and liabilities
73
Increase in operating assets Loans
(8,010)
Property foreclosed
(3,093)
Other assets
(47)
Increase in operating liabilities Interbank and money market items Other liabilities Net cash flows used in operating activities
9,822 123 (1,132)
Cash flows from investing activities Cash received from interest income from investments
4
Net cash flows from investing activities
4
Cash flows from financing activities Paid-up share capital
2,000
Net cash flows from financing activities
2,000
Net increase in cash and cash equivalents Cash and cash equivalents at beginning of the year Cash and cash equivalents at end of the year
872 872
47
128
Annual Report 2011 Thanachart Bank Public Company Limited
11.4 Summarised financial information of associated companies a)
Summarised financial information of MBK Plc. as at 30 September 2011 and 2010 and for the years then ended are as follows: (Unit: Million Baht)
Paid-up share capital
Total assets
30 September
Total liabilities
30 September
2011
2010
1,886
1,886
2011 27,409
30 September
2010 28,752
Total income
Net income
for the periods ended
for the periods ended
30 September
30 September
2011
2010
2011
2010
2011
2010
13,916
14,006
8,582
8,548
1,338
2,477
The share of income of MBK Plc. recognised in the current year is determined based on financial statements of MBK Plc. prepared for a different period, as a result of limitations on the availability of information. The financial information used was based on the statements of financial position as at 30 September 2011 and 2010 and the statements of profit or loss for the years then ended as prepared by the Bank’s management, with reference to the financial statements as reviewed by its auditor and adjusted for the effect of the differences in accounting policies. The Bank’s management believes that the net income for the year ended 30 September 2011 is not material different from that income for the year ended 31 December 2011. b)
Summarised financial information of Siam Samsung Life Insurance Co., Ltd., Siam City Insurance Co., Ltd. and Ratchthani Leasing Plc. as at 31 December 2011 and 2010 and for the periods then ended are as follows: (Unit: Million Baht) Paid-up share
Company’s name
capital
Total assets
Total liabilities
2011
2010
2011
2010
2011
2010
500
500
1,989
2,073
1,854
1,766
Siam City Insurance Co., Ltd.
-
40
-
932
-
Ratchthani Leasing Plc.
-
823
-
9,549
-
Siam Samsung Life Insurance
Total income
Net income (loss)
for the years
for the years
2011
2010
2011
2010
1,170
911
(184)
(98)
689
414
632
(17)
37
8,270
913
695
160
112
Co., Ltd.
Income, profit or loss and shares of profit (loss) of investments in associated companies were determined based on the financial statements of those companies for the period starting from the date that the Bank and/or the subsidiaries invested in such companies, in proportion to the shareholding interest, and until the Bank disposed of such investment or its status was changed to a subsidiary company.
48
Annual Report 2011 Thanachart Bank Public Company Limited
129
11.5 As at 31 December 2011 and 2010, the fair value of investments in associated companies which are listed in the Stock Exchange of Thailand is as follows (Unit: Million Baht) Company’s name MBK Plc.
2011
2010
1,649
1,887
-
616
Ratchthani Leasing Plc.
12.
Loans to customers and accrued interest receivables
12.1 Classified by loan type (Unit: Million Baht) Consolidated
Separate
financial statements
financial statements
2011
2010
2011
2010
23,358
24,562
23,358
3,243
271,129
275,232
250,290
58,324
Loans to customers Overdrafts Loans Notes receivable Hire purchase receivables
49,984
62,171
68,048
24,985
325,976
271,851
310,595
269,834
2,104
2,392
1,926
2,341
Financial lease receivables Others
234
Less: Deferred revenues
429
234
-
(39,801)
(32,469)
(37,739)
(32,178)
632,984
604,168
616,712
326,549
963
924
925
272
633,947
605,092
617,637
326,821
(25,197)
(23,917)
(12,102)
(7,056)
(396)
(534)
(383)
(375)
(382)
(460)
(382)
(38)
Total loans to customers net of deferred revenues Add: Accrued interest receivables Total loans to customers net of deferred revenues and accrued interest receivables Less: Allowance for doubtful accounts - BOT’s minimum requirement provision - Excess provision Less: Revaluation allowance for debt restructuring Loans to customer and accrued interest receivables - net
607,972
580,181
604,770
319,352
Securities business receivables Credit balances receivables
1,926
1,341
-
-
310
1,342
-
-
2,236
2,683
-
-
(1,338)
-
-
1,931
1,345
-
-
609,903
581,526
604,770
319,352
Other receivables Total securities business receivables
(305)
Less: Allowance for doubtful accounts Securities business receivables - net Loans to customer and accrued interest receivables - net
49
130
Annual Report 2011 Thanachart Bank Public Company Limited
12.2 Classified by currency and country (Unit: Million Baht) Consolidated financial statements 2011 Domestic Baht US Dollar
Total
Domestic
Foreign
Total
624,935
450
625,385
590,382
4,794
595,176
5,740
3,386
9,126
7,468
3,835
11,303
284
425
709
372
-
372
630,959
4,261
635,220
598,222
8,629
606,851
Other currencies Total*
Foreign
2010
* Total loans net of deferred revenues (Unit: Million Baht) Separate financial statements 2011 Domestic Baht US Dollar
Total
Domestic
Foreign
Total
602,308
450
602,758
322,533
380
322,913
7,282
5,853
13,135
2,803
800
3,603
395
424
819
33
-
33
609,985
6,727
616,712
325,369
1,180
326,549
Other currencies Total*
Foreign
2010
* Total loans net of deferred revenues
50
Annual Report 2011 Thanachart Bank Public Company Limited
131
12.3 Classified by type of business and loan classification (Unit: Million Baht) Consolidated financial statements 2011 The Bank and a subsidiary company which are financial institutions
Normal
Special
Sub-
Doubtful
mention
standard
Subsidiary
of loss
Doubtful
companies Consolidated
Total
Agricultural and mining
10,452
27
95
104
148
10,826
4
10,830
Manufacturing and commerce
60,956
4,364
3,363
6,741
6,484
81,908
59
81,967
Real estate and construction
42,730
1,463
577
736
2,454
47,960
12
47,972
Public utilities and services
49,553
3,317
921
1,529
3,060
58,380
61
58,441
68,632
1,503
552
1,221
1,728
73,636
-
73,636
-
-
-
-
-
-
2,236
2,236
242,023
27,443
664
648
2,241
273,019
13,342
286,361
48,357
2,076
673
763
2,095
53,964
116
54,080
Others
18,927
177
178
14
382
19,678
19
19,697
Total*
541,630
40,370
7,023
11,756
18,592
619,371
15,849
635,220
Personal consuming Housing loans Securities business Hire purchase Others
*
Total loans net of deferred revenues
(Unit: Million Baht) Consolidated financial statements 2010 The Bank and a subsidiary company which are financial institutions
Normal Agricultural and mining
Special
Sub-
mention
standard
Doubtful Doubtful
Subsidiary
of loss
Total
companies Consolidated
8,124
2,432
194
71
136
10,957
-
10,957
Manufacturing and commerce
73,796
8,663
1,697
8,459
4,768
97,383
1
97,384
Real estate and construction
45,690
1,958
1,549
644
2,552
52,393
13
52,406
Public utilities and services
55,570
4,490
1,210
1,659
3,112
66,041
6
66,047
72,939
1,890
581
813
1,413
77,636
-
77,636
-
-
-
-
-
-
2,683
2,683
218,478
15,416
782
606
2,589
237,871
1,740
239,611
15,474
842
428
169
909
17,822
54
17,876
Others
40,270
778
204
192
783
42,227
24
42,251
Total*
530,341
36,469
6,645
12,613
16,262
602,330
4,521
606,851
Personal consuming Housing loans Securities business Hire purchase Others
*
Total loans net of deferred revenues
51
132
Annual Report 2011 Thanachart Bank Public Company Limited
(Unit: Million Baht) Separate financial statements 2011 Special
Doubtful
Normal
mention
Substandard
Doubtful
of loss
Total
Agricultural and mining
10,452
27
69
15
25
10,588
Manufacturing and commerce
60,956
4,364
583
672
2,725
69,300
Real estate and construction
42,730
1,463
295
333
1,323
46,144
Public utilities and services
48,218
3,317
545
1,255
1,773
55,108
Housing loans
68,627
1,503
493
738
692
72,053
Hire purchase
242,023
27,443
664
648
2,241
273,019
48,356
2,076
654
616
1,596
53,298
Others
36,991
177
5
2
27
37,202
Total*
558,353
40,370
3,308
4,279
10,402
616,712
Personal consuming
Others
* Total loans net of deferred revenues
(Unit: Million Baht) Separate financial statements 2010 Special
Doubtful
Normal
mention
3,639
1
1
-
8
3,649
Manufacturing and commerce
20,751
193
65
130
450
21,589
Real estate and construction
18,434
104
254
163
439
19,394
Public utilities and services
18,110
17
8
197
77
18,409
Housing loans
4,998
466
162
107
285
6,018
Hire purchase
218,478
15,416
782
606
2,589
237,871
7,554
651
248
169
908
9,530
Others
10,064
25
-
-
-
10,089
Total*
302,028
16,873
1,520
1,372
4,756
326,549
Agricultural and mining
Substandard
Doubtful
of loss
Total
Personal consuming
Others
* Total loans net of deferred revenues
52
Annual Report 2011 Thanachart Bank Public Company Limited
133
12.4 Non-performing loans As at 31 December 2011 and 2010, the Bank and its subsidiaries (banking, securities and asset management) had non-performing loans classified in accordance with the Notification of the BOT and SEC (debtors classified as substandard, doubtful and doubtful of loss) as follows: (Unit: Million Baht) Consolidated
Separate
financial statements
financial statements
2011
2010
2011
2010
17,989
35,520
17,989
7,648
Securities business
306
1,339
-
-
Asset management
19,382
-
-
-
Non-performing loans (excluding accrued interest receivables) Banking business
The above definition of non-performing loans does not include overdue loans which have been already restructured and are now qualified for classification as Normal or Special mention debt. Additionally, the Bank and its subsidiaries (banking and securities business) had loans for which income recognition under an accrual basis has been discontinued, as follows: (Unit: Million Baht)
Banking business Securities business
Consolidated
Separate
financial statements
financial statements
2011
2010
2011
2010
16,558
44,046
16,558
7,538
306
1,339
-
-
The subsidiary company engaged in the asset management business recognises income from loan on a cash basis.
53
134
Annual Report 2011 Thanachart Bank Public Company Limited
12.5 Debt restructuring During the years 2011 and 2010, the Bank and its subsidiaries have entered into debt restructuring agreements as follows: consolidated financial statements For the years ended 31 December
Number of Type of restructuring
debtors
Outstanding
Outstanding
loans balance
loans balance
Type of assets
assets to be
before
after
to be
transferred under
transferred
agreement
restructuring
(1)
restructuring
(1)
Million Baht
Million Baht
38,676
16,553
16,553
9
627
627
38,685
17,180
17,180
1
6
6
5,908
10,616
10,616
4
154
154
5,913
10,776
10,776
Fair value of
Million Baht
2011 Modification of repayment conditions Transfer of assets and/or ordinary shares and/or modification of repayment conditions Total
Land
190
2010 Transfer of assets
Land and premise
6
Modification of repayment conditions Transfer of assets and/or ordinary shares and/or modification of repayment conditions Total
Land
127
(1) Presents the outstanding balance per the books of account (principal plus accrued interest receivable).
54
Annual Report 2011 Thanachart Bank Public Company Limited
135
Separate financial statements For the years ended 31 December Outstanding
Outstanding
loans balance
loans balance
Type of assets
assets to be
before
after
to be
transferred under
transferred
agreement
Number of Type of restructuring
debtors
restructuring
(1)
restructuring
Million Baht
(1)
Fair value of
Million Baht
Million Baht
2011 Modification of repayment conditions
38,353
13,163
13,163
6
14
14
38,359
13,177
13,177
4,978
1,949
1,949
4
154
154
4,982
2,103
2,103
Transfer of assets and/or ordinary shares and/or modification of repayment conditions Total
Land
15
Land
127
2010 Modification of repayment conditions Transfer of assets and/or ordinary shares and/or modification of repayment conditions Total
(1) Presents the outstanding balance per the books of account (principal plus accrued interest receivable).
Counting from the end of the year, the remaining periods to maturity of receivables which entered into debt restructuring agreements during the years 2011 and 2010, are summarised below. Consolidated financial statements For the years ended 31 December 2011
2010 Outstanding
Periods
Outstanding
Number of
balances after
Number of
balances after
debtors
restructuring
debtors
restructuring
Million Baht Past due after restructuring
Million Baht
1,261
1,734
1,299
582
908
1,504
670
618
27,984
8,645
2,096
1,563
8,498
5,213
1,609
7,295
10 - 15 years
13
45
112
458
Over 15 years
21
39
127
260
38,685
17,180
5,913
10,776
Due within the year Less than 5 years 5 - 10 years
Total
55
136
Annual Report 2011 Thanachart Bank Public Company Limited
Separate financial statements For the years ended 31 December 2011
2010 Outstanding
Periods
Outstanding
Number of
balances after
Number of
balances after
debtors
restructuring
debtors
restructuring
Million Baht Past due after restructuring
Million Baht
1,169
841
1,247
438
812
168
663
130
27,947
8,098
1,947
505
8,422
4,029
1,102
977
10 - 15 years
5
31
9
13
Over 15 years
4
10
14
40
38,359
13,177
4,982
2,103
Due within the year Less than 5 years 5 - 10 years
Total
Supplemental information for the years 2011 and 2010 relating to restructured loan is as follows: (Unit: Million Baht) Consolidated
Separate
financial statements
financial statements
2010
2011
2011
2010
Interest incomes recognised in the statements of comprehensive income Cash repayment from receivables
1,292
1,080
543
487
4,985
4,331
2,288
1,594
58
309
58
303
40
77
15
123
Properties foreclosed received for debts settlement Loss on debt restructuring
As at 31 December 2011 and 2010, the Bank and its subsidiaries have the following restructured receivables balances (principal and accrued interest receivable): Restructured receivables Total number of
Outstanding balances,
outstanding receivables 2011
Thanachart Bank Plc. Siam City Bank Plc. Thanachart Securities Plc. TS Asset Management Co., Ltd.
2010
Number of receivables 2011
Outstanding balances
2010
net of collateral
2011
2010
2011
2010
Million Baht
Million Baht
Million Baht
Million Baht
1,378,861
944,313
52,289
13,944
25,803
5,324
9,350
2,414
-
358,647
-
6,247
-
22,871
-
9,560
886
395
3
3
35
35
35
35
2,459
-
1,630
-
12,978
-
5,173
-
56
Annual Report 2011 Thanachart Bank Public Company Limited
137
12.6 Hire purchase/Financial lease receivables As at 31 December 2011, net hire purchase/financial lease receivables of the Bank and its subsidiaries amounting to Baht 283,038 million were recorded in the consolidated financial statements, with Baht 270,015 million recorded in the separate financial statements. These mostly comprise hire purchase agreements or financial lease agreements for cars and motorcycles. The terms of the agreements are generally between 3 and 7 years and they carry interest at fixed rates. (Unit: Million Baht) Consolidated financial statement as at 31 December 2011 Amounts due under lease agreements Less than 1 year* Gross investment in the lease Less: Unearned finance income
1 - 5 years
98,530
218,233
(15,589)
(23,687)
82,941
194,546
Over 5 years 11,317 (515)
Total 328,080 (39,791)
Present value of minimum lease payments receivable
10,802
288,289 (5,251)
Allowance for doubtful accounts Hire purchase/Financial lease receivables -
283,038
net * Included non-performing receivables
(Unit: Million Baht) Consolidated financial statement as at 31 December 2010 Amounts due under lease agreements Less than 1 year* Gross investment in the lease Less: Unearned finance income
1 - 5 years
89,288
177,763
(13,967)
(18,248)
75,321
159,515
Over 5 years 7,192 (242)
Total 274,243 (32,457)
Present value of minimum lease payments receivable Allowance for doubtful accounts
6,950
241,786 (5,137)
Hire purchase/Financial lease receivables net
236,649
* Included non-performing receivables
57
138
Annual Report 2011 Thanachart Bank Public Company Limited
(Unit: Million Baht) Separate financial statement as at 31 December 2011 Amounts due under lease agreements Less than 1 - 5 years
1 year* Gross investment in the lease Less: Unearned finance income
96,982
204,671
(15,423)
(21,881)
81,559
182,790
Over 5 years 10,868 (425)
Total 312,521 (37,729)
Present value of minimum lease payments receivable
10,443
274,792 (4,777)
Allowance for doubtful accounts Hire purchase/Financial lease receivables -
270,015
net * Included non-performing receivables
(Unit: Million Baht) Separate financial statement as at 31 December 2010 Amounts due under lease agreements Less than 1 year* Gross investment in the lease Less: Unearned finance income
1 - 5 years
88,359
176,636
(13,827)
(18,105)
74,532
158,531
Over 5 years 7,180 (242)
Total 272,175 (32,174)
Present value of minimum lease payments receivable Allowance for doubtful accounts
6,938
240,001 (4,925)
Hire purchase/Financial lease receivables net
235,076
* Included non-performing receivables
58
Annual Report 2011 Thanachart Bank Public Company Limited
139
12.7 Classified by classification As at 31 December 2011 and 2010, the Bank and its financial institution subsidiaries (banking and asset management business) classified and made allowances against their loans in accordance with the BOT’s guidelines as summarised below. (Unit: Million Baht) Consolidated financial statements (1) Net balance used in Loans and accrued
made allowance for
Minimum
Allowance for doubtful
interest receivables
doubtful accounts (2)
percentage
accounts
2011
2010
2011
2010
542,456
531,104
201,301
189,131
40,447
36,539
18,289
16,944
2
722
2,249
7,031
6,663
3,870
2,805
100
3,870
2,898
Doubtful
11,763
12,620
7,507
8,199
100
7,507
8,277
Doubtful of loss
18,631
16,323
8,208
8,180
100
8,348
8,199
620,328
603,249
239,175
225,259
24,417
23,705
383
534
24,800
24,239
Normal Special mention Substandard
Total
(Percent) 1
2011
2010
3,970
2,082
Additional allowance for possible uncollectability debts Total (1)
Only the Bank and subsidiary companies subject to BOT’s regulations; and after deducting intragroup transactions.
(2)
The net balance used in setting allowance for doubtful accounts for loans classified as Normal and Special mention is the principal balance net of deferred revenues, excluding accrued interest receivables, and after deducting collaterals values, while for loans classified as Substandard, Doubtful and Doubtful of loss, it is the principal balance net of deferred revenues plus accrued interest receivables, and after deducting the present value of expected future cash flows from debt collection or from disposal of collaterals. (Unit: Million Baht) Separate financial statements Net balance used in
Normal Special mention
Loans and accrued
made allowance for
interest receivables
(1)
doubtful accounts
2011
2010
2011
2010
559,184
302,266
218,024
103,855
40,447
16,887
18,289
8,414
Minimum
Allowance for doubtful
percentage
accounts
(Percent)
2011
2010
1
2,812
1,155
2
721
168
Substandard
3,309
1,523
1,500
1,070
100
1,500
1,070
Doubtful
4,279
1,372
1,791
775
100
1,791
775
10,418
4,773
5,138
3,888
100
5,278
3,888
617,637
326,821
244,742
118,002
12,102
7,056
383
375
12,485
7,431
Doubtful of loss Total
Additional allowance for possible uncollectability debts Total (1)
The net balance used in setting allowance for doubtful accounts for loans classified as Normal and Special mention is the principal balance net of deferred revenues, excluding accrued interest receivables, and after deducting collaterals values, while for loans classified as Substandard, Doubtful and Doubtful of loss, it is the principal balance net of deferred revenues plus accrued interest receivables, and after deducting the present value of expected future cash flows from debt collection or from disposal of collaterals.
59
140
Annual Report 2011 Thanachart Bank Public Company Limited
From July to December 2011, there was widespread flooding in Thailand. The floods may affect the business of certain debtors. The Bank has provided support to its customers in accordance with the policy of the BOT by relaxing principal and/or interest payments, extending the repayment schedule, maintaining the status of each debtor as it was before such floods occurred, and not treating the related receivables as non-performing loans. As at 31 December 2011 a total of 27,783 debtors with total balances of Baht 22,096 million had received relaxations of terms due to the flooding. However, the Bank’s management believes that no further significant damage will be incurred as a result of this situation. 12.8
Loan to companies which have settlement problems As at 31 December 2011 and 2010, loans of the Bank and its subsidiaries in the consolidated financial statements and the separate financial statements included debts due from companies with weak financial positions and poor operating results, as follows: Consolidated financial statements Allowance for doubtful accounts provided Number of debtors 2011
1. Listed companies possible to
2010
Debt balance
Collateral value
in the accounts
2011
2010
2011
2010
2011
2010
Million
Million
Million
Million
Million
Million
Baht
Baht
Baht
Baht
Baht
Baht
6
6
857
425
67
67
790
359
9
11
585
750
334
753
236
275
1,130
1,102
24,337
30,827
11,760
13,545
13,213
13,708
delisting from the SET 2. Non - listed companies with similar operating results and financial positions to listed companies possible to delisting from the SET 3. Companies which have loan settlement problems or have defaulted on the repayment
Separate financial statements Allowance for doubtful accounts provided Number of debtors 2011
1. Listed companies possible to
2010
Debt balance
Collateral value
in the accounts
2011
2010
2011
2010
2011
2010
Million
Million
Million
Million
Million
Million
Baht
Baht
Baht
Baht
Baht
Baht
3
2
169
122
31
-
138
122
9
11
585
750
334
753
236
275
737
432
8,042
931
5,323
580
2,726
392
delisting from the SET 2. Non - listed companies with similar operating results and financial positions to listed companies possible to delisting from the SET 3. Companies which have loan settlement problems or have defaulted on the repayment
60
Annual Report 2011 Thanachart Bank Public Company Limited
141
12.9 Classification of securities business receivables in accordance with the Notification of the Securities and Exchange Commission As at 31 December 2011 and 2010, subsidiary companies operating in the securities business classified securities business receivables and accrued interest receivables, and provided related allowance for doubtful accounts, in accordance with the Notification of the Securities and Exchange Commission (SEC), as follows: (Unit: Million Baht) Debt balance net of allowance Allowance for doubtful accounts
Receivable balances 2011 Normal
1,930
Substandard
2011
1,344
2010 -
2011
2010
-
1,930
1,344
3
4
2
3
1
1
303
1,335
303
1,335
-
-
2,236
2,683
305
1,338
1,931
1,345
Doubtful Total
2010
for doubtful accounts
Allowance for doubtful accounts for substandard loans set aside by subsidiaries is higher than the minimum amount required by the SEC, and takes into account uncertainties as to collateral value and the risk from collection of such receivables. 12.10 Hire purchase receivables/financial lease receivables of subsidiaries classified by aging As at 31 December 2011 and 2010, hire purchase and financial lease receivables balances of subsidiary companies engaged in hire purchase and financial lease businesses are classified by the due date of the contracts (after elimination) as follows: (Unit: Million Baht) 2011
2010
12,863
1,590
363
40
Overdue more than 1 year
66
48
Debtors under legal actions
205
107
13,497
1,785
792
212
Current or overdue not over 90 days Overdue 91 - 365 days
Total Allowance for doubtful accounts provided in the accounts
61
142
Annual Report 2011 Thanachart Bank Public Company Limited
12.11 As at 31 December 2011 and 2010, the Bank has loans to subsidiary companies as follows: Company’s name
Type of credit
Contract period as at
Interest rate as at
31 December 2011
31 December 2011
Outstanding balances 2011
2010
Million Baht
Million Baht
353
932
22
52
7,867
-
9,822
-
18,064
984
Subsidiary companies Thanachart Group Leasing Co.,
Promissory note
At call
The Bank’s cost of fund plus a
Ltd.
fixed interest rate per annum
National Leasing Co., Ltd.
Promissory note
At call
The Bank’s cost of fund plus a fixed interest rate per annum
Ratchthani Leasing Plc.
Promissory note
At call
The Bank’s cost of fund plus a
TS Asset Management Co., Ltd.
Promissory note
At call
The Bank’s cost of fund plus a
fixed interest rate per annum
fixed interest rate per annum Total
13.
Allowance for doubtful accounts (Unit: Million Baht) Consolidated financial statements 2011 The Bank and a subsidiary company which are financial institutions Sub-
mention
Doubtful of
General
loss
provision
Subsidiary
standard
Doubtful
companies
Consolidated
2,082
2,249
2,898
8,277
8,199
534
24,239
1,550
25,789
-
-
-
-
-
-
-
542
542
Normal Balance - beginning of the year
Special
Total
Beginning balance of the subsidiaries acquired during the year Balance of a subsidiary company disposed during the year Increase (decrease) during the year
1,888
(1,527)
Bad debts recovery
-
-
Bad debts written-off
-
-
Reversal from disposal of loans Balance - end of the year
992 (20)
(571)
1,826
(151)
253
156
-
(452)
(933)
-
-
-
-
-
3,970
722
3,870
7,507
(900) 8,348
383
-
(1,023)
2,457
91
409
11
(1,405) (900) 24,800
(73)
(1,023) 2,548 420 (1,478)
-
(900)
1,098
25,898
62
Annual Report 2011 Thanachart Bank Public Company Limited
143
(Unit: Million Baht) Consolidated financial statements 2010 The Bank and a subsidiary company which are financial institutions
Normal Balance - beginning of the year
Special
Sub-
Doubtful
General
mention
standard
Doubtful
of loss
provision
Subsidiary companies
Total
Consolidated
895
188
968
1,181
4,258
214
7,704
659
8,363
971
2,854
1,346
4,745
6,244
-
16,160
1,074
17,234
Beginning balance of the subsidiaries acquired during the year Balance of a subsidiary company disposed during the year Increase (decrease) during the year
-
-
216
(793)
-
-
584
2,595
(858)
-
-
(64)
320
2,064
(29)
Bad debts recovery
-
-
-
223
56
-
279
Bad debts written-off
-
-
-
(467)
(594)
-
(1,061)
Reversal from disposal of loans
-
-
-
-
(907)
-
(907)
-
2,082
2,249
2,898
8,277
534
24,239
1,550
Balance - end of the year
8,199
16 (106)
(64) 2,035 295 (1,167) (907) 25,789
(Unit: Million Baht) Separate financial statements 2011 Special Normal Balance - beginning of the year Increase (decrease) during the year
mention
1,155
168
10
138
Substandard 1,070 (775)
Doubtful
Doubtful
General
of loss
provision
Total
775
3,888
375
7,431
729
1,278
8
1,388
Increase for receivables which were transferred from SCIB during the 1,647
415
1,205
287
1,474
-
5,028
Bad debts recovery
year
-
-
-
-
156
-
156
Bad debts written-off
-
-
-
-
(618)
-
(618)
Reversal from disposal of loans
-
-
-
-
(900)
-
(900)
2,812
721
1,500
1,791
Balance - end of the year
5,278
383
12,485
(Unit: Million Baht) Separate financial statements 2010 Special Normal
mention
Substandard
Balance - beginning of the year
909
188
968
Increase (decrease) during the year
246
(20)
102
Doubtful 1,181 (406)
Doubtful
General
of loss
provision
Total
4,258
214
7,718
1,076
161
1,159
Bad debts recovery
-
-
-
-
55
-
55
Bad debts written-off
-
-
-
-
(594)
-
(594)
Reversal from disposal of loans
-
-
-
-
(907)
-
(907)
1,155
168
1,070
775
Balance - end of the year
3,888
375
7,431
63
144
Annual Report 2011 Thanachart Bank Public Company Limited
14.
Revaluation allowance for debt restructuring (Unit: Million Baht) Separate financial statements
Consolidated financial statements 2011 Balance - beginning of the year
2010
2011
2010
460
33
38
33
-
472
-
-
-
-
369
-
Beginning balance of the subsidiaries acquired during the year Additional allowance for receivables received during the year
15.
Increase (decrease) during the year
(35)
(40)
15
7
Amortised during the year
(43)
(5)
(40)
(2)
Balance - end of the year
382
382
38
460
Classification of assets As at 31 December 2011 and 2010, the quality of assets of the Bank and its subsidiaries classified in accordance with the announcements of the Bank of Thailand are as follows: (Unit: Million Baht) Consolidated financial statements 2011 Loans to customer and Interbank and
accrued
money market
interest
items
receivables
39,364
542,456
-
-
162
581,982
Special mention
-
40,447
-
-
108
40,555
Substandard
-
7,031
-
-
4
7,035
Normal
Property Investments
foreclosed
Other assets
Total
Doubtful
-
11,763
-
-
4
11,767
Doubtful of loss
-
18,631
238
197
237
19,303
39,364
620,328
238
197
515
660,642
Total
64
Annual Report 2011 Thanachart Bank Public Company Limited
145
(Unit: Million Baht) Consolidated financial statements 2010 Loans to customer and Interbank and
accrued
money market
interest
items
receivables
51,777
531,104
-
-
192
583,073
Special mention
-
36,539
-
-
84
36,623
Substandard
-
6,663
-
-
8
6,671
Doubtful
-
12,620
-
-
14
12,634
Doubtful of loss
-
16,323
89
56
503
16,971
51,777
603,249
89
56
801
655,972
Normal
Total
Property Investments
foreclosed
Other assets
Total
(Unit: Million Baht) Separate financial statements 2011 Loans to customer and Interbank and
accrued
money market
interest
items
receivables
39,514
559,184
-
-
162
598,860
Special mention
-
40,447
-
-
108
40,555
Substandard
-
3,309
-
-
4
3,313
Doubtful
-
4,279
-
-
4
4,283
Doubtful of loss
-
10,418
238
148
237
11,041
39,514
617,637
238
148
515
658,052
Normal
Total
Property Investments
foreclosed
Other assets
Total
(Unit: Million Baht) Separate financial statements 2010 Loans to customer and Interbank and
Normal
accrued
money market
interest
items
receivables
Property Investments
foreclosed
Other assets
Total
12,510
302,266
-
-
179
314,955
Special mention
-
16,887
-
-
82
16,969
Substandard
-
1,523
-
-
5
1,528
Doubtful
-
1,372
-
-
4
1,376
Doubtful of loss
-
4,773
89
56
16
4,934
12,510
326,821
89
56
286
339,762
Total
65
146
Annual Report 2011 Thanachart Bank Public Company Limited
16.
Property foreclosed (Unit: Million Baht) Consolidated financial statements For the year ended 31 December 2011 Increased from Balance -
purchase of
beginning
subsidiary
of the year
company
Additions
Disposals
Change
Balance - end
appraiser
of the year
Assets transferred in settlement of debts Immovable assets External appraiser Internal appraiser
6,472
-
108
(1,079)
114
5,615
233
-
16
(38)
289
4
3,184
(3,112)
-
365
External appraiser
673
-
93
(63)
4
707
Internal appraiser
72
-
7
(11)
(4)
64
168
-
(52)
7,907
4
Movable assets
(114)
97
Assets foreclosed from purchase by bid on the open market Immovable assets
Assets awaiting disposal External appraiser Total property foreclosed Less: Allowance for impairment Property foreclosed - Net
(56) 7,851
3,356
-
(528)
4
2,828
-
116
(4,303)
-
382
6,964
-
(3,921)
(202)
-
6,762 (Unit: Million Baht)
Consolidated financial statements For the year ended 31 December 2010 Increased from Balance -
purchase of
beginning
subsidiary
of the year
company
Additions
Disposals
Change
Balance - end
appraiser
of the year
Assets transferred in settlement of debts Immovable assets External appraiser
353
6,657
205
(639)
(104)
Internal appraiser
110
16
17
(14)
104
233
428
-
3,733
(3,872)
-
289
Movable assets
6,472
Assets foreclosed from purchase by bid on the open market Immovable assets External appraiser
-
577
119
(24)
1
673
65
7
13
(12)
(1)
72
-
168
-
-
168
Total property foreclosed
956
7,425
4,087
-
7,907
Less: Allowance for impairment
(44)
Property foreclosed - Net
912
Internal appraiser Assets awaiting disposal External appraiser
7,425
(186) 3,901
(4,561) 174 (4,387)
-
(56) 7,851
66
Annual Report 2011 Thanachart Bank Public Company Limited
147
(Unit: Million Baht) Separate financial statements For the year ended 31 December 2011 Increased from Balance -
purchase of
beginning
subsidiary
of the year
Additions
company
Disposals
Change
Balance - end
appraiser
of the year
Assets transferred in settlement of debts Immovable assets External appraiser
111
2,367
-
(33)
119
Internal appraiser
230
-
16
(38)
(119)
283
4
3,122
(3,064)
External appraiser
1
636
-
Internal appraiser
71
-
7
Movable assets
2,564 89
-
345
(17)
4
624
(11)
(4)
63
Assets foreclosed from purchase by bid on the open market Immovable assets
Assets awaiting disposal -
116
-
Total property foreclosed
External appraiser
696
3,123
3,145
Less: Allowance for impairment
(56)
Property foreclosed - Net
640
(63)
(3,163)
(165)
3,060
136
2,980
-
116
-
3,801
-
(3,027)
-
(148) 3,653 (Unit: Million Baht)
Separate financial statements For the year ended 31 December 2010 Balance Change
Balance - end
of the year
Additions
Disposals
appraiser
of the year
External appraiser
353
186
(324)
(104)
111
Internal appraiser
110
17
(1)
104
230
410
3,610
(3,737)
-
283
-
-
-
1
1
(1)
71
-
696
beginning
Assets transferred in settlement of debts Immovable assets
Movable assets Assets foreclosed from purchase by bid on the open market Immovable assets External appraiser Internal appraiser
65
12
(5)
Total property foreclosed
938
3,825
(4,067)
Less: Allowance for impairment
(43)
Property foreclosed - Net
895
(167) 3,658
154 (3,913)
-
(56)
-
640
67
148
Annual Report 2011 Thanachart Bank Public Company Limited
16.1 As at 31 December 2011 and 2010, property foreclosed received in settlement of receivables that are subject to restrictions can be summarised as follows: (Unit: Million Baht) Consolidated financial statements 2011
Separate financial statements
2010
2011
2010
Immovable assets subject to buyback 739
options or first refusal rights
522
739
221
16.2 As at 31 December 2011, the Bank and its subsidiaries have agreements with clients to purchase or sell property foreclosed amounting to approximately Baht 966 million (at cost) in the consolidated financial statements and Baht 926 million in the separate financial statements that are currently being settled in installments or through transfer of ownership. The Bank and its subsidiaries have therefore not recognised gains on the sales, and the assets continue to be recorded as property foreclosed of the Bank and its subsidiaries. 17.
Land, premises and equipment (Unit: Million Baht) Consolidated financial statements For the year ended 31 December 2011
Land
Buildings and
Furniture,
buildings
fixtures and
improvement
equipment
Assets under Vehicles
installation
Total
Cost 31 December 2010
4,649
2,652
3,916
155
134
11,506
12
37
6
7
-
62
-
(120)
Increase from purchase of subsidiary company Decrease from disposal of a subsidiary company Additions
-
-
(107)
(13)
43
54
428
11
327
863
(277)
(10)
(84)
(315)
(686)
Transfers/disposals
-
31 December 2011
4,704
2,466
4,233
76
146
11,625
-
201
2,258
60
-
2,519
Accumulated depreciation 31 December 2010 Decrease from disposal of a subsidiary company
-
(95)
(13)
-
(270)
(310)
(74)
-
Depreciation for the years
-
216
756
42
-
1,014
31 December 2011
-
147
2,609
15
-
2,771
Transfer/disposals
-
(108) (654)
Allowance for impairment 31 December 2010 Increase (decrease) during the period
-
-
1
-
-
1
68
26
1
-
-
95
-
-
(1)
-
-
(1)
68
26
1
-
-
95
4,636
2,293
1,623
61
146
8,759
Decrease from disposal of a subsidiary company 31 December 2011 Net book value 31 December 2011 Depreciation charge for the year
1,014
68
Annual Report 2011 Thanachart Bank Public Company Limited
149
(Unit: Million Baht) Consolidated financial statements For the year ended 31 December 2010
Land
Buildings and
Furniture,
building
fixtures and
improvement
equipment
Assets under Vehicles
installation
Total
Cost 31 December 2009
426
390
3,057
168
18
4,059
4,173
2,142
704
62
134
7,215
Increase from purchase of subsidiary companies Decrease from disposal of a subsidiary -
-
Additions
company
54
56
380
(6)
20
(1)
90
-
600
(7)
Transfers/disposals
(4)
64
(219)
(94)
(108)
(361)
4,649
2,652
3,916
155
134
11,506
-
42
1,710
95
-
1,847
-
-
(2)
(1)
-
(3)
Transfer/disposals
-
(3)
(244)
(94)
-
(341)
Depreciation for the year
-
162
794
60
-
1,016
31 December 2010
-
201
2,258
60
-
2,519
1
-
-
-
-
1
-
-
-
-
-
-
(1)
-
1
-
-
-
-
-
1
-
-
1
4,649
2,451
1,657
95
134
8,986
31 December 2010 Accumulated depreciation 31 December 2009 Decrease from disposal of a subsidiary company
Allowance for impairment 31 December 2009 Increase from purchase of subsidiary companies Increase (decrease) during the year 31 December 2010 Net book value 31 December 2010 Depreciation charge for the year
1,016
69
150
Annual Report 2011 Thanachart Bank Public Company Limited
(Unit: Million Baht) Separate financial statements For the year ended 31 December 2011
Land
Buildings
Furniture,
and buildings
fixtures and
improvement
equipment
Assets under Vehicles
Total
installation
Cost 31 December 2010 Received from Entire Business Transfer Additions
475
371
2,572
105
13
3,536
4,100
1,921
756
8
114
6,899
43
22
197
5
50
317
Transfers/disposals
-
-
15
(33)
(26)
31 December 2011
4,618
2,314
3,540
110
(8)
144
10,726
31 December 2010
-
48
1,736
Transfers/disposals
-
-
Depreciation for the year
-
31 December 2011
Accumulated depreciation 62
-
1,846
(17)
(8)
-
(25)
52
470
18
-
540
-
100
2,189
72
-
2,361
4,618
2,214
1,351
38
144
8,365
Net book value 31 December 2011
540
Depreciation charge for the year
(Unit: Million Baht) Separate financial statements For the year ended 31 December 2010 Buildings and
Furniture,
buildings
fixtures and
improvement
equipment
426
331
2,456
Additions
54
40
127
Transfers/disposals
(5)
(11)
105
13
3,536
1,380
Land
Assets under Vehicles
installation
Total
Cost 31 December 2009
31 December 2010
-
475
371
2,572
31 December 2009
-
31
1,295
Transfers/disposals
-
-
Depreciation for the year
-
31 December 2010
101
17
3,331
15
13
249
(11)
(17)
(44)
Accumulated depreciation 54
-
(20)
(11)
-
(31)
17
461
19
-
497
-
48
1,736
62
-
1,846
1
-
-
-
-
1
(1)
-
-
-
-
(1)
-
-
-
-
-
-
475
323
836
43
13
1,690
Allowance for impairment 31 December 2009 Decrease during the year 31 December 2010 Net book value 31 December 2010 Depreciation charge for the year
497
70
Annual Report 2011 Thanachart Bank Public Company Limited
151
As at 31 December 2011, the Bank and its subsidiaries have vehicles acquired under financial leases with net book values amounting to approximately Baht 39 million. In addition, the Bank and its subsidiaries have office equipment and vehicles which have been fully depreciated but are still in use. The gross carrying amount before deducting accumulated depreciation and allowance for impairment loss, amounting to approximately Baht 1,330 million (separate financial statements: Baht 31 million and Baht 1,016 million, respectively). 18.
Intangible assets (Unit: Million Baht) Consolidated financial statements For the year ended 31 December 2011 Membership fees for Intangible
Thailand Futures
Computer
business
Computer
Exchange and
software under
combination
software
others
development
assets from
Total
Cost 31 December 2010
4,100
905
4
163
5,172
-
2
-
6
8
Increase from purchase of a subsidiary company Decrease from disposal of a -
(22)
-
-
Additions
subsidiary company
-
341
-
233
574
(22)
Transfers/disposals
-
(36)
3
(222)
(255)
31 December 2011
4,100
1,190
7
180
5,477
137
227
3
-
367
Accumulated amortisation 31 December 2010 Decrease from disposal of a subsidiary company Disposals
-
(4)
-
-
(4)
-
(258)
3
-
(255)
Amortisation for the year
465
169
1
-
635
31 December 2011
602
134
7
-
743
Allowance for impairment 31 December 2010
-
-
-
-
-
Increase during the period
-
27
-
-
27
-
(2)
-
-
(2)
-
25
-
-
25
3,498
1,031
-
180
4,709
Decrease from disposal of a subsidiary company 31 December 2011 Net book value 31 December 2011
635
Amortisation expenses for the year Remaining amortisation period (years)
8.3 years
0-10 years
0-1 years
-
71
152
Annual Report 2011 Thanachart Bank Public Company Limited
(Unit: Million Baht) Consolidated financial statements For the year ended 31 December 2010 Membership fees for Intangible
Thailand
assets from
Futures
Computer
business
Computer
Exchange and
software under
combination
software
others
development
Total
Cost 31 December 2009
-
492
7
116
615
-
253
1
39
293
4,100
65
-
109
4,274
Transfer
-
101
-
(101)
Disposals
-
Increase from purchase of subsidiary companies Additions/increase due to business combination
31 December 2010
(6)
(4)
-
(10)
4,100
905
4
163
5,172
-
134
5
-
139
-
-
-
-
-
-
(5)
(4)
-
(9)
Accumulated amortisation 31 December 2009 Increase from purchase of subsidiary companies Disposals Amortisation for the year
137
98
2
-
237
31 December 2010
137
227
3
-
367
3,963
678
1
163
4,805
Net book value 31 December 2010 Amortisation expenses for the year
237
72
Annual Report 2011 Thanachart Bank Public Company Limited
153
(Unit: Million Baht) Separate financial statements For the year ended 31 December 2011 Computer
Intangible assets from business
Computer
software under
combination
software
development
Total
Cost 31 December 2010 Increase from Entire Business Transfer
-
501
99
600
3,613
238
-
3,851
Additions
-
300
225
525
Transfer
-
160
(160)
3,613
1,199
164
4,976
-
115
-
115
Amortisation for the year
115
71
-
186
31 December 2011
115
186
-
301
31 December 2010
-
-
-
-
Increase during the year
-
25
-
25
31 December 2011
-
25
-
25
3,498
988
164
4,650
31 December 2011
-
Accumulated amortisation 31 December 2010
Allowance for impairment
Net book value 31 December 2011 Amortisation expenses for the year Remaining amortisation period (years)
186 8.3 years
0 – 9.9 years
(Unit: Million Baht)
Separate financial statements For the year ended 31 December 2010 Computer
Computer software
software
under development
Total
Cost 31 December 2009
390
113
503 97
Additions
27
70
Transfer
84
(84)
501
99
600
31 December 2009
72
-
72
Amortisation for the year
43
-
43
115
-
115
386
99
485
31 December 2010
-
Accumulated amortisation
31 December 2010 Net book value 31 December 2010 Amortisation expenses for the year
43
73
154
Annual Report 2011 Thanachart Bank Public Company Limited
As at 31 December 2011, the Bank and its subsidiaries have computer software which have been fully amortised but are still in use with original costs, before deducting accumulated amortisation, amounting to approximately Baht 40 million (separate financial statement: Baht 7 million). 19.
Goodwill As at 31 December 2011 and 2010, goodwill stated in the consolidated financial statements are as follows. (Unit: Million Baht) Consolidated financial statements 2011 Goodwill - beginning of the year Increase during the year 2010 Goodwill - ending of the year
20.
2010
Separate financial statements 2011
2010
15,750
10
-
-
-
15,740
15,740
-
15,750
15,750
15,740
-
Other assets (Unit: Million Baht) Consolidated
Separate
financial statements
financial statements
2011 Accrued premium insurance income
2010
2011
2010
440
444
-
-
1,553
949
1,547
281
1,052
1,024
725
311
57
676
48
670
392
411
388
208
197
172
184
172
-
326
-
183
Deposit
276
331
255
173
Estimated insurance claims recoveries
264
187
-
-
Receivable from clearing house
25
391
-
-
Deposit from derivative contracts
357
148
357
100
Others
817
645
578
125
5,430
5,704
4,082
2,223
Other receivables Accrued interest and dividend income receivables VAT refundable Prepaid leasehold rights Other receivables - VAT paid in advance for customers Suspense accounts between head office and branches
Total Less: Allowance for impairment Other assets - Net
(307) 5,123
(575) 5,129
(257) 3,825
(29) 2,194
74
Annual Report 2011 Thanachart Bank Public Company Limited
155
21.
Deposits
21.1 Classified by type of deposits (Unit: Million Baht) Consolidated
Separate
financial statements
financial statements
2011
2010
2011
2010
Current
7,129
7,222
7,227
2,487
Saving
169,196
181,350
170,386
87,765
61
61
61
61
2
5,297
2
-
52,172
154,231
86,450
68,894
133,560
39,394
133,560
16,737
73,920
145,101
73,932
66,847
436,040
532,656
471,618
242,791
Promissory notes Certificates of deposit Fixed deposits - Less than 6 months - 6 months and up to 1 year - Over 1 year Total deposits
21.2 Classified by currency and countries (Unit: Million Baht) Consolidated financial statements 2011
Baht
2010
Domestic
Foreign
435,796
1
Total
Domestic
Foreign
Total
435,797
532,253
1
532,254
US Dollar
84
20
104
160
25
185
Other currencies
22
117
139
90
127
217
435,902
138
436,040
532,503
153
532,656
Total
(Unit: Million Baht) Separate financial statements 2011
2010
Domestic
Foreign
471,374
1
US Dollar
84
Other currencies
Baht
Total
Total
Domestic
Foreign
Total
471,375
242,614
-
242,614
20
104
24
13
37
22
117
139
35
105
140
471,480
138
471,618
242,673
118
242,791
75
156
Annual Report 2011 Thanachart Bank Public Company Limited
22.
Interbank and money market items (liabilities) (Unit: Million Baht) Consolidated financial statements 2010
2011 At call
Term
Total
At call
Term
Total
Domestic Bank of Thailand and the FIDF
-
3,065
3,065
1,427
2,601
4,028
700
10,032
10,732
174
4,823
4,997
3,100
7,234
10,334
24
3,206
3,230
Other financial institutions
17,015
9,705
26,720
14,361
6,635
20,996
Total domestic items
20,815
30,036
50,851
15,986
17,265
33,251
US Dollar
3
8,599
8,602
81
6,832
6,913
Euro
-
-
-
-
24
24
Baht currency
241
457
698
95
262
357
Total foreign items
244
9,056
9,300
176
7,118
7,294
21,059
39,092
60,151
16,162
24,383
40,545
Commercial banks Specialised financial institutions
Foreign
Total
(Unit: Million Baht) Separate financial statements 2011 At call
2010
Term
Total
At call
Term
Total
Domestic Bank of Thailand and the FIDF
-
3,064
3,064
-
2,600
2,600
681
8,779
9,460
19
2,450
2,469
3,100
7,234
10,334
-
3,206
3,206
Other financial institutions
17,420
9,705
27,125
11,176
3,885
15,061
Total domestic items
21,201
28,782
49,983
11,195
12,141
23,336
US Dollar
3
8,599
8,602
61
5,928
5,989
Euro
-
-
-
-
24
24
Baht currency
241
457
698
95
262
357
Total foreign items
244
9,056
9,300
156
6,214
6,370
21,445
37,838
59,283
11,351
18,355
29,706
Commercial banks Specialised financial institutions
Foreign
Total
76
Annual Report 2011 Thanachart Bank Public Company Limited
157
As at 31 December 2011, a subsidiary company has loans from financial institutions that require it to comply with certain conditions, as summarised follows. (a)
A long-term loans amounting to Baht 773 million, repayable in 48 monthly installments from the date of loan drawdown, with interest charged at the average MLR less a fixed percentage per annum, payable monthly. The loans are secured by the assignment of collection rights over hire purchase receivables of the subsidiary company with a value of not less than 125 percent of the loan balances, and the transfer of ownership of the vehicles for which collection rights are assigned, as well as the assignment of collection rights over deposit accounts and related interest of the subsidiary company.
In addition, the subsidiary has to maintain the terms and
conditions as specified in the loan agreement i.e. to maintain a debt to equity ratio of not more than 8:1 and to maintain non-performing receivables at not more than 10 percent of total hire purchase receivables. (b)
A long-term loans amounting to Baht 275 million, repayable in 36 monthly installments from the date of loan drawdown, with interest charged at fixed interest rate per annum, payable monthly. The loan is secured by the assignment of collection rights over hire purchase/financial lease receivables of the subsidiary company, and the transfer of ownership of vehicles, with a value of not less than 110 percent of the loan balances that were drawn down. In addition, the subsidiary has to maintain the terms and conditions as specified in the loan agreement i.e. to maintain a debt to equity ratio of not more than 8:1.
(c)
A long-term loans amounting to Baht 6 million, repayable in 42 monthly installments from the date of loan drawdown, with interest charged at the average MLR less a fixed percentage per annum, payable monthly. The loans are secured by the assignment of collection rights over hire purchase receivables of the subsidiary company with a value of not less than 125 percent of the loan balances, and the transfer of ownership of the vehicles for which collection rights are assigned, as well as the assignment of collection rights over deposit accounts and related interest of the subsidiary company. In addition, the subsidiary has to maintain the terms and conditions as specified in the loan agreement i.e. to maintain a debt to equity ratio of not more than 8:1 and to maintain non-performing receivables at not more than 10 percent of total hire purchase receivables.
77
158
Annual Report 2011 Thanachart Bank Public Company Limited
23.
Debt issued and borrowings As at 31 December 2011 and 2010, the balance of debt issued and domestic borrowings, which stated in Baht, are as follows: (Unit: Million Baht) Interest rate
Consolidated
Separate financial statements
financial statements
per annum (as at Type of borrowings
31 December 2011)
Maturity date
2011
2010
2011
2010
Perpetual subordinated hybrid bonds
8.60 percent
Dissolution
7,130
7,130
7,130
7,130
5.25 percent
2019 and 2024
5,000
5,000
5,000
5,000
5.00 - 5.50 and 6.00
2015 - 2020
23,000
23,000
23,000
13,000
issued under Tier I (a) Subordinated hybrid bonds issued under Tier II (b) Subordinated debentures issued under Tier II (c - f)
percent
Bills of exchange
0 - 3.25 percent
At call
Bills of exchange
0.50 - 4.65 percent
2012 - 2013
Promissory note Borrowings - Department of
57
11
56
1
217,999
139,574
222,148
106,961
4.75 percent
At call
942
-
-
-
0 - 0.50 percent
2012 - 2017
169
234
169
-
254,297
174,949
257,503
132,092
Alternative Energy Development and Efficiency Total debt issued and borrowings
(a)
On 22 April 2010, the Bank issued 7,130,000 name registered of perpetual, noncumulative, subordinated, hybrid Tier 1 bonds, with a face value of Baht 1,000 each, and sold them to two major shareholders of the Bank. The bonds mature upon dissolution or liquidation of the Bank. The bonds are unsecured and non-convertible and bear interest at a rate equal to the highest interest rate for a six-month fixed deposit plus 6 percent per annum, payable semi-annually. The Bank has a call option to early redeem the bonds at par if the condition specified are met.
(b)
On 24 July 2009, the Bank issued 5,000,000 name registered subordinated hybrid bonds, unsecured, unconvertible debentures with debenture holders’ representative, with a face value of Baht 1,000 each. Of these, 3.5 million units mature in 2019 and bear interest at rate of 5.25 percent per annum for the first five years, and 5.5 percent per annum for the sixth to tenth years, while 1.5 million units mature in 2024 and bear interest at rate of 5.25 percent per annum for the first five years, 6.0 percent per annum for the sixth to tenth years and 6.5 percent per annum for the eleventh to fifteenth years, payable quarterly. The Bank has a call option to early redeem these debentures at par and has option to postpone principal and/or interest payment date if the conditions as specified are met.
78
Annual Report 2011 Thanachart Bank Public Company Limited
159
(c)
On 9 May 2008, the Bank issued 5,000,000 name registered subordinated, unsecured, unconvertible debentures with no debenture holders’ representative, with a face value of Baht 1,000 each. The debentures mature in 2015 and bear interests at rate of 5.1 percent per annum for the first three years, and 6 percent per annum for the fourth to seventh years, payable quarterly.
(d)
On 3 April 2009, the Bank issued 2,000,000 name registered subordinated, unsecured, unconvertible debentures with debenture holders’ representative, with a face value of Baht 1,000 each. The debentures mature in 2019 and bear interest at fixed interest rates of 5.25 percent per annum for the first three years, 5.75 percent per annum for the fourth to seventh years, and 6.5 percent per annum for the eighth to tenth years, payable quarterly. The Bank has a call option to early redeem these debentures at par if the conditions specified are met.
(e)
On 2 April 2010, the Bank issued 6,000,000 name registered subordinated, unsecured, unconvertible debentures with debenture holders’ representative, with a face value of Baht 1,000 each. The debenture mature in 2020 and bear interests at fixed interest rate of 5 percent per annum for the first five years and 5.5 percent per annum for the sixth to tenth years, payable quarterly. The Bank has a call option to early redeem these debentures at par if the conditions specified are met.
(f)
On 19 June 2009, SCIB issued 10,000,000 unsecured subordinated debentures with a face value of Baht 1,000 each. The debentures mature in 2019 and bear interests at fixed interest rates of 5.50 percent per annum for the first three years, 6.00 percent per annum for the fourth to seventh years, and 6.50 percent per annum for the eighth to tenth years. Interest is payable quarterly. SCIB has a call option to early redeem these debentures at par if the conditions specified are met. On 20 June 2011, SCIB early redeemed all debentures at par value with no gain (loss) on the transaction. Thanachart Bank has issue debentures to replace these SCIB’s debentures with the same interest rates, terms, and conditions. The BOT has given approval in principle to counting such subordinated debentures as Tire II of Thanachart Bank when the entire business transfer between Thanachart Bank and SCIB is completed. This is in accordance with the BOT’s letter for the entire business of SCIB.
79
160
Annual Report 2011 Thanachart Bank Public Company Limited
24.
Provisions (Unit: Million Baht) Consolidated financial statement For the year ended 31 December 2011
Balance as at 1 January 2011
Loss from
Employee
Obligations of
litigation
benefits
off-balance
89
43
285
483
900
-
2,272
-
-
2,272
-
3
-
-
3
2
360
39
90
491
-
Others
Total
The cumulative effect of the changes in the accounting policy for employee benefits Increase from purchase of subsidiary company Increase during the year Decrease from disposal of a subsidiary company
(1)
(3)
-
Utilised
(1)
(387)
-
Reversal of provisions
(4)
(335)
Balance as at 31 December 2011
85
(57)
(54)
1,953
-
270
516
(4) (445) (393) 2,824 (Unit: Million Baht)
Consolidated financial statement For the year ended 31 December 2010
Balance as at 1 January 2010
Loss from
Obligations of off-
litigation
balance
Others
Total
18
-
9
27
60
420
290
770
11
-
297
308
Utilised
-
-
(10)
(10)
Reversal of provisions
-
(135)
(60)
(195)
285
526
900
Increase from purchase of subsidiary company Increase during the year
Balance as at 31 December 2010
89
80
Annual Report 2011 Thanachart Bank Public Company Limited
161
(Unit: Million Baht) Separate financial statement For the year ended 31 December 2011 Obligations
Balance as at 1 January 2011
Loss from
Employee
of off-
litigation
benefits
balance
19
2
-
92
113
-
356
-
-
356
-
1,395
-
-
1,395
Others
Total
The cumulative effect of the changes in the accounting policy for employee benefits Employee benefits for staff transferred from SCIB Increase from entire business transfer
64
259
231
402
956
Increase during the year
1
50
39
18
108
Utilised
-
(54)
-
-
(54)
Reversal of provisions
-
(253)
-
-
(253)
270
512
Balance as at 31 December 2011
84
1,755
2,621 (Unit: Million Baht)
Separate financial statement For the year ended 31 December 2010 Loss from litigation
Others
18
4
22
Increase during the year
1
94
95
Utilised
-
(4)
(4)
Balance as at 1 January 2010
Balance as at 31 December 2010
19
Total
94
113
Employee Benefits Employee benefits under defined benefit plans recognised in part of profit or loss in the statements of comprehensive income for the year ended 31 December 2011 consist of the followings: (Unit: Million Baht)
Current service cost Interest cost
Consolidated financial
Separate financial
statement
statement
2011
2011
149
82
81
41
Loss on curtailment
(160)
-
Termination benefits
337
-
Actuarial gain
(47)
(73)
Total employee benefits
360
50
81
162
Annual Report 2011 Thanachart Bank Public Company Limited
The principal actuarial assumptions used to calculate the defined benefit obligations are as follows: (Percent per annum) Consolidated financial
Separate financial
statement
statement
2011
2011
Discount rate
4.07 - 4.70
4.09
Future salary increase rate
6.00 - 6.50
6.00
Average staff turnover rate (depending on age)
0.00 - 42.11
0.85 - 21.51
3.00
-
Inflation rate
During the year 2011, Thanachart Bank received the transfer of 6,368 employees from SCIB, this accorded with a resolution passed by a Board of Directors’ meeting of Thanachart Bank and is approved by the BOT. SCIB also transferred employee benefits liabilities related to the transferred employees amounting to Baht 1,395 million to Thanachart Bank, together with another Baht 337 million of accrued employee expenses. Under the employee transfer agreement, rights and benefits of employees will be determined counting consecutively from their existing length of service. 25.
Insurance contract liabilities (Unit: Million Baht) Consolidated financial
Separate financial
statement
statement
2011 Life policy reserve
2010
2011
2010
29,831
25,961
-
-
Loss reserve and outstanding claims
3,441
1,141
-
-
Unearned premium reserve
2,659
2,461
-
-
223
211
-
-
36,154
29,774
-
-
Other liabilities under insurance policies Total
Subsidiaries presented life policy reserve under long-term insurance contracts at the higher amount of the net level premium reserve method (NPV) and the gross level premium method (GPV). As a result of this change, life insurance policy reserve liabilities of a subsidiary company as at 31 December 2011 was increased by Baht 649 million, which was recognised in profit or loss.
82
Annual Report 2011 Thanachart Bank Public Company Limited
163
From July to December 2011, there was widespread flooding in Thailand. The floods have an effect to the parties insured by the subsidiary companies. However, the subsidiary companies have assessed and recorded the impact of this situation in their financial statements. They believe that no further significant loses will be incurred. 26.
Other liabilities (Unit: Million Baht) Consolidated financial statements 2011 Other payables
2010
Separate financial statements 2011
2010
1,253
912
1,038
249
435
731
435
731
69
83
208
196
300
163
300
163
-
1,762
-
348
330
568
330
568
Accrued interest payable
3,267
1,852
3,413
1,084
Corporate income tax payable
2,431
2,327
-
999
Accrued expense
3,855
3,137
3,078
1,421
306
98
-
-
2,857
2,159
1,977
372
15,103
13,792
10,779
6,131
Suspense cash received from account receivables Insurance premium payable Unearned income from hire purchase Deposit from derivative contracts Provision for income tax
Payable from clearing house Others Total other liabilities
27.
Share capital During 8 - 19 April 2010, the Bank called up additional paid-up share capital of 3,579,045,631 shares with a par value of Baht 10 totaling Baht 35,790,456,310 and registered an additional share capital on 30 April 2010, and as a result the Bank had issued and paid-up share capital equals to Baht 55,136,649,030. The parent company exercised both its own entitlement and the unexercised entitlement of the minority shareholders, and as a result the parent company increased its shareholding from 50.92 percent to 50.96 percent.
83
164
Annual Report 2011 Thanachart Bank Public Company Limited
28.
Other components of equity (Unit: Million Baht) Consolidated financial statements 2011
2010
Separate financial statements 2011
2010
-
-
Surplus from business combination under (123)
(123)
Debt instruments
364
399
287
254
Equity instruments
488
742
143
70
852
1,141
430
324
(60)
common control Revaluation surplus (deficit) on investments Revaluation surplus on investments Available-for-sale investments
Total Revaluation deficit on investments Available-for-sale investments Debt instruments Equity instruments
(252)
(119)
(184)
(4)
(3)
(1)
(3)
(71)
(34)
(94)
(259)
(193)
(219)
(154)
593
948
211
170
143
323
-
-
613
1,148
211
170
-
Held-to-maturity investments (transfer from available-for-sale investments) Total Total revaluation surplus (deficit) on investments Share of other comprehensive income of associates Total
29.
Statutory reserve Pursuant to Section 116 of the Public Limited Companies Act B.E. 2535, the Bank is required to set aside to a statutory reserve at least 5 percent of its net profit after deducting accumulated deficit brought forward (if any), until the reserve reaches 10 percent of the registered capital. The statutory reserve is not available for dividend distribution. As at 31 December 2011, the Bank allocated Baht 333.4 million of net income for the year 2011 to the statutory reserve (2010: Baht 285.9 million).
84
Annual Report 2011 Thanachart Bank Public Company Limited
165
30.
Capital funds The primary objectives of the Bank’s capital management are to maintain the Bank’s ability to continue as a going concern and to maintain a capital adequacy ratio in accordance with the Act on Undertaking of Banking business B.E. 2551. As at 31 December 2011 and 2010, capital funds of the Bank consist of the following: (Unit: Million Baht) 2011
2010
55,137
55,137
Share premium
2,101
2,101
Perpetual subordinated hybrid bonds (Hybrid Tier I)
7,130
7,130
968
537
Retained earnings - unappropriated
12,042
6,430
Total
77,378
71,335
Tier I Issued and fully paid up share capital
Statutory reserve
Less: goodwill Total
(15,740)
-
61,638
71,335
26,000
17,000
3,391
1,532
Total
29,391
18,532
Total Tier I and Tier II
91,029
89,867
64
31
91,093
89,898
Tier II Subordinated debentures Reserve for assets classified as normal
Add: Net revaluation surplus on investment in equity securities Total capital funds
On 25 August 2011, the Board of Directors’ meeting of Thanachart Bank passed a resolution to allocate Baht 312 million of net income for the six-month period ended 30 June 2011 amounting to statutory reserve. The remaining net income of such period, amounting Baht 5,930 million, was allocated as capital funds of the Bank. In addition, the BOT granted a waiver for Thanachart Bank to hold more SCIB’s shares than permitted by law, for the purposes of the business transfer. The BOT also permitted the Bank not to include SCIB in the financial business group until the date of completion of liquidation, while the computation of the ratio of the capital to risk assets and contingent liabilities includes the assets and contingent liabilities of SCIB until the date of SCIB return its banking license.
85
166
Annual Report 2011 Thanachart Bank Public Company Limited
As at 31 December 2011 and 2010, the Bank’s capital ratios, calculated based on the BOT’s regulation relating to the calculation of capital funds announced by the BOT, and including additional permission from the BOT, are as follows: 2011
2010 Minimum
Minimum
Capital ratio
requirement
Capital ratio
requirement
of the Bank
by BOT
of the Bank
by BOT
Total capital to risk assets (percent)
13.72
8.50
14.75
8.50
Total Tier I to risk assets (percent)
9.28
4.25
11.71
4.25
The Bank will disclose qualitative and quantitative information regarding capital maintenance as at 31 December 2011 in accordance with the Notification of the Bank of Thailand Re: Public Disclosure of Capital Maintenance Information for Commercial Banks on its website at www.thanachartbank.co.th, within April 2012. In addition, the Bank had disclosed the latest capital maintenance information as at 30 June 2011 on its website since October 2011. 31.
Dividends Dividends
Dividends on net income for
Approved by
Million Baht
Baht
Shareholders on 7 April 2011
2,205
0.40
1,083
0.56
Annual General Meeting of the
the year 2009
32.
Dividend per share
Annual General Meeting of the
the year 2010 Dividends on net income for
Total dividends
Shareholders on 7 April 2010
Interest income Interest income for the years ended 31 December 2011 and 2010 consisted of the following: (Unit: Million Baht) Consolidated
Separate
financial statements
financial statements
2011
2010
2011
2,237
1,054
1,365
403
78
82
24
13
4,114
3,653
2,023
1,708
Loans
20,774
14,760
9,413
4,336
Hire purchase and financial lease
17,011
15,232
16,722
14,937
Total interest income
44,214
34,781
29,547
21,397
Interbank and money market items Investments and trading transactions Investments in debt securities
2010
86
Annual Report 2011 Thanachart Bank Public Company Limited
167
33.
Interest expenses Interest expenses for the years ended 31 December 2011 and 2010 consisted of the following: (Unit: Million Baht) Consolidated
Separate
financial statements
financial statements
2011
2010
2011
2010
Deposits
8,973
5,960
5,766
3,512
Interbank and money market items
1,289
506
1,555
293
1,955
1,914
1,132
1,034
- Subordinated debentures
2,145
1,727
1,889
1,312
- Others
5,432
1,455
4,606
1,217
Borrowings
1
3
-
-
Fees and services expense on borrowing
3
1
11
7
19,798
11,566
14,959
7,375
Contribution fee to the Deposit Protection Agency Issues debt instruments
Total interest expenses
34.
Fees and service income Fees and service income for the years ended 31 December 2011 and 2010 consisted of the following: (Unit: Million Baht) Consolidated
Separate
financial statements
financial statements
2011
2010
2011
2010
Fees and service income Acceptance, aval and guarantees
271
228
102
46
ATM and electronic banking services
669
575
161
104
Hire purchase fee income
901
857
875
830
Insurance brokerage fee income
222
226
982
733
Management fees
479
533
6
5
Credit card fee
698
395
366
96
Others
618
555
412
216
3,858
3,369
2,904
2,030
Total fees and service income Fees and service expenses Net fees and service income
(500) 3,358
(519) 2,850
(144) 2,760
(45) 1,985
87
168
Annual Report 2011 Thanachart Bank Public Company Limited
35.
Gains on trading and foreign exchange transactions Gains on trading and foreign exchange transactions for the years ended 31 December 2011 and 2010 consisted of the following: (Unit: Million Baht) Consolidated
Separate
financial statements
financial statements
2011
2011
2010
2010
Foreign exchange and derivatives relating to foreign exchange
871
360
518
132
interest rate
1
1
-
-
Debt securities
21
(6)
46
12
Equity securities
(5)
211
-
-
3
4
-
-
891
570
564
144
Foreign exchange and derivatives relating to
Others Total
36.
Gains (losses) on investments Gains (losses) on investments for the years ended 31 December 2011 and 2010 consisted of the following: (Unit: Million Baht) Consolidated
Separate
financial statements
financial statements
2011
2010
2011
2010
182
267
81
108
-
-
Gains (losses) on disposal Available-for-sale securities Held-to-maturity securities
(1)
2
Other investments
80
-
87
24
-
22
33
-
-
-
(17)
-
Investments in associated and subsidiary companies Gain on revaluation of investment at equity from business combination Reversal of impairment on general investments (losses)
(41)
21
(4)
18
Gain on transfer of investments
372
-
-
-
Total
712
314
60
148
88
Annual Report 2011 Thanachart Bank Public Company Limited
169
During the year, a subsidiary company has transferred investment which classified as held-to-maturity debt securities amounting to Baht 8,439 million to be trading in order to comply with the measurement of liabilities reserve for long-term insurance contracts of which the value of the liabilities reserve is depend on the changes in discounted market interest rate. As a result of this transfer, a gain of Baht 329 million was recognised in profit or loss. The subsidiary company also transferred investments classified as available-forsale securities amounting to Baht 2,000 million to be trading with a gain on transfer of Baht 43 million. 37.
Directors’ remuneration Directors’ remuneration represents the benefits paid to the directors of the Bank and public subsidiary companies in accordance with Section 90 of the Public Limited Companies Act, exclusive of salaries and related benefits payable to directors who hold executive positions but including the payment of remuneration amounting to Baht 19 million to the Bank’s and its subsidiaries’ directors, which was approved by the Annual General Meeting of Shareholders of the Bank and its subsidiaries.
38.
Impairment loss of loans and debt securities Impairment loss of loans and debt securities for the years ended 31 December 2011 and 2010 consisted of the following: (Unit: Million Baht) Consolidated
Separate
financial statements
financial statements
2011
2010
2011
2,548
2,035
1,388
(1)
1,159
(1)
-
2010
Bad debts and doubtful accounts Loans to customers Interbank and money market items
31
38
59
(40)
(2)
(40)
78
15
123
2,149
1,422
1,280
Amortisation of revaluation allowance for debts restructured during the year Loss from debt restructuring (reversal) Total (1)
(35) 2,504
(2)
(2)
Net of gain on revaluation adjustment on the receivables which were transferred from SCIB after deduction of additional allowance for doubtful accounts for those receivables.
(2)
Net of gain on revaluation adjustment on the receivables which were transferred from SCIB after deduction of additional loss on debt restructuring for those receivables.
89
170
Annual Report 2011 Thanachart Bank Public Company Limited
39.
Income tax expense Corporate income tax was calculated on profit for the year, after adding back and deducting with expenses and provisions which are disallowable for tax computation purposes and deducting income which is exempted for tax computation purposes. The Bank has no corporate income tax liability for the year 2011 since after adding back and deducting expenses and/or income which are disallowed for tax computation purposes, there is a net loss. Therefore, corporate income tax that was paid during the year 2011 will be presented as “Prepaid corporate income tax� in the statement of financial position.
40.
Components of other comprehensive income Components of other comprehensive income for the years ended 31 December 2011 and 2010 of the following: (Unit: Million Baht) Consolidated
Separate
financial statements
financial statements
2011
2010
2011
2010
Other comprehensive income Available-for-sale investments: Unrealised gains (losses) during the year
(495)
421
(40)
(152)
losses that included in profit or loss
182
267
81
108
Gain from reclassified type of investments
(43)
-
-
-
(356)
688
41
(180)
204
-
(536)
892
41
Less: Reclassification of adjustment for the realised
(44)
Share of other comprehensive income in associated companies (loss) Other comprehensive income (loss) for the year
(44)
90
Annual Report 2011 Thanachart Bank Public Company Limited
171
41.
Earnings per share Basic earnings per share is calculated by dividing profit for the years attributable to equity holders of the Bank (excluding other comprehensive income) by the weighted average number of ordinary shares in issue during the year. For the years ended 31 December Consolidated financial statements 2010
2011
2011
2010
Profit for the period (Million Baht)
7,671
8,777
6,668
5,719
Weighted average number of shares (Million shares)
5,514
4,563
5,514
4,563
1.39
1.92
1.21
1.25
Earnings per share (Baht/share)
42.
Separate financial statements
Provident fund The Bank, its subsidiaries and its employees have jointly established a provident fund in accordance with the Provident Fund Act B.E. 2530. Employees contributed to the fund monthly, at rates of 3 -10 percent of their basic salaries, and the Bank and its subsidiaries contributed to the fund at stipulated rates. The fund will be paid to the employees upon termination of employment in accordance with the fund rules. During the year 2011, the Bank and its subsidiaries contributed Baht 443 million to the fund (separate financial statements: Baht 253 million).
91
172
Annual Report 2011 Thanachart Bank Public Company Limited
43.
Related party transactions During the years, the Bank and its subsidiaries had significant business transactions with related parties. These transactions have been concluded on commercial terms and bases agreed upon in the ordinary course of businesses between the Bank and those companies. Below is a summary of those transactions. (Unit: Million Baht) For the years ended 31 December Consolidated
Separate
financial statements
financial statements
2011
2011
2010
Transfer pricing policy
2010
(For the year 2011)
Transactions occurred during the years Parent company Purchase of investment in
-
3,411
-
3,411
158
15,463
158
15,417
At market price
13,792
38,856
13,792
38,856
At market price
(Related gain)
1
3
1
3
Purchase of subordinated
-
3,057
-
3,057
-
3,636
-
3,636
100
109
100
109
subsidiary company Purchase of debt securities Sales of debt securities
debentures Sales of subordinated debentures Purchase of fixed assets and other assets Interest income
At the rate agreed under the contract which based on appraisal value
4
6
-
-
At interest rate of 4.7 - 9.15 percent per annum
Fee and service income
1
14
-
2
Insurance/Life insurance income
-
1
-
-
26
39
26
39
Income on supporting service
At the rate agreed under the service contract
Other income Interest expenses
2
10
-
-
300
262
300
262
At interest rate of 0.75 - 2.90 and 8.00 percent per annum
Rental expenses
115
152
93
127
At the rate agreed under the rental contracts
Other expenses Dividend payment
48
43
44
41
1,124
552
1,124
552
As declared
92
Annual Report 2011 Thanachart Bank Public Company Limited
173
(Unit: Million Baht) For the years ended 31 December Consolidated
Separate
financial statements
financial statements
2011
2010
2011
Purchase of debt securities
35,358
58,436
7,057
4,953
At market price
Sales of debt securities
35,736
58,234
28,188
51,688
At market price
Transfer pricing policy
2010
(For the year 2011)
Transactions occurred during the years (continued) Subsidiary companies
(Related gain (loss))
18
41
4
143
-
143
-
At market price
6,147
1,227
6,147
1,227
At market price
21
-
21
-
-
14
-
3
Sales of fixed assets
-
14
-
-
Consulting fee on purchase of
-
-
-
34
-
-
196
80
Purchase of investments in equity
(9)
instruments Purchase/sales of forward exchange contracts (Related gain) Purchase of fixed assets and other assets
investment in subsidiary Interest income
At interest rate of 2.45 – 4.10 and 6.13 – 7.90 percent per annum
Dividend income
-
-
1,532
525
Fee and service income
-
-
153
53
Discount income on insurance
-
-
888
658
-
-
1,018
222
As declared At the rate agreed under the service contract
premium Income on supporting service
At the rate agreed under the service contract
Other income
-
-
-
8
Interest expenses
-
-
661
40
At interest rate of 0.25 – 4.40 percent per annum
Fee and service expenses
-
-
10
3
At the rate agreed under the service contracts
Rental expenses
-
-
7
6
Other expenses
-
-
167
164
At the rate agreed under the rental contracts
93
174
Annual Report 2011 Thanachart Bank Public Company Limited
(Unit: Million Baht) For the years ended 31 December Consolidated
Separate
financial statements
financial statements
2011
2011
2010
Transfer pricing policy
2010
(For the year 2011)
Transactions occurred during the years (continued) Associated companies Purchase of investment in
-
161
-
161
80
350
-
350
At market price
360
17,046
300
16,492
At market price
-
213
-
213
-
24
-
22
369
199
59
-
subsidiary company Purchase of debt securities Sales of debt securities Sales of investment in a subsidiary company (Related gain) Interest income
At interest rate of 2.25 - 3.25 and 3.75 7.25 percent per annum
Fee and service income
7
14
-
-
At the rate agreed under the service contract
Non-life insurance/Life insurance
-
1
-
-
-
2
-
-
82
70
81
69
income Other income Interest expenses
At interest rate of 0.25 - 2.80 and 5.25 percent per annum
Rental expenses
13
11
12
11
At the rate agreed under the rental contracts
Insurance premium/life insurance
1
4
-
-
12
12
8
9
-
6,228
-
6,228
At the rate agreed under the contract
premium expenses Other expenses Related companies Purchase of investment in subsidiary company Purchase of debt securities Sales of debt securities (Related gain) Purchase/sales of forward
1,139
3,229
1,139
3,229
18,447
3,937
18,447
3,937
2
1
2
1
443,693
179,266
437,552
179,266
At market price
At market price
exchange contracts (Related loss) Sales of fixed assets and other
(114)
(9)
(59)
(9)
-
58
-
58
(Related gain)
-
12
-
12
Sales of property foreclosed
-
373
-
373
(Related gain)
-
37
-
37
assets
94
Annual Report 2011 Thanachart Bank Public Company Limited
175
(Unit: Million Baht) For the years ended 31 December Consolidated
Separate
financial statements
financial statements
2011
2011
2010
Transfer pricing policy
2010
(For the year 2011)
Transactions occurred during the years (continued) Related companies (continued) Interest income
658
286
241
113
At interest rate of 2.00 - 7.90 percent per annum
Dividend income Fee and service income
33
47
2
3
As declared
7
19
-
-
At the rate agreed under the service contract
Insurance/Life insurance income Income on supporting service
4
-
-
-
17
17
17
17
At the rate agreed under the service contract
Other income Interest expenses
24
33
2
2
431
297
355
262
At interest rate of 0.125 – 6.10, 7.40 , 8.00 and 8.60 percent per annum
Rental expenses
125
96
88
58
At the rate agreed under the rental contracts
Insurance premium/life insurance
-
125
-
-
1
91
-
-
17
46
8
31
1,113
558
1,081
531
premium expenses Fee and service expenses Other expenses Dividend payment
At the rate agreed under the contract
As declared
In addition to the transactions mentioned above, during the year ended 31 December 2011, SCIB transferred non-performing loans amounting to Baht 9,062 million and properties foreclosed amounting to Baht 3,083 million to TS Asset Management Co., Ltd., a subsidiary company. The transfer prices are mutually agreed with reference to financial advisors have opinion that they are fair values.
95
176
Annual Report 2011 Thanachart Bank Public Company Limited
The outstanding balances of the above transactions during the years ended 31 December 2011 and 2010 have been shown at the average balance at the end of each month as follows: (Unit: Million Baht) Consolidated
Separate
financial statements
financial statements
2011
2010
2011
2010
Parent company Loans to customers
19
22
-
-
161
442
161
441
3,896
5,901
3,896
5,901
Interbank and money market items (assets)
-
-
397
3,931
Loans to customers
-
-
4,470
1,760
Deposits
-
-
3,646
466
Interbank and money market items (liabilities)
-
-
18,045
626
Debt issued and borrowings
-
-
2,179
1,010
7,512
5,757
2,434
-
297
386
166
253
2,265
1,723
2,019
1,477
1,626
2,874
435
287
17,481
9,131
6,745
3,538
Deposits
1,266
4,536
1,087
4,269
Interbank and money market items (liabilities)
7,581
6,598
6,922
6,478
Debt issued and borrowings
6,936
3,846
6,586
3,340
Deposits Debt issued and borrowings Subsidiary companies
Associated companies Loans to customers Deposits Debt issued and borrowings Related companies Interbank and money market items (assets) Loans to customers
96
Annual Report 2011 Thanachart Bank Public Company Limited
177
As at 31 December 2011 and 2010, the significant outstanding balances of the above transactions are as follows: (Unit: Million Baht) Consolidated financial statements 2011 Liabilities
Assets Interbank
Loans to
Interbank
and money
Investments
customers
market
- debt
and interest
Other
items
securities
receivables
assets
Deposits
and money
Debt
market
issued and
Other
items
borrowings
liabilities
Commitments
Parent company Thanachart Capital Plc.
-
-
17
24
71
-
3,644
87
-
-
-
-
8
93
-
1,500
-
-
-
-
-
-
26
-
100
-
-
Seacon Development Plc.
-
-
591
1
-
-
-
-
-
Thai Hua Rubber Plc.
-
-
1,993
-
195
-
150
1
10
-
-
796
-
9
-
-
-
-
1,122
-
-
26
-
7,933
3,494
102
2,580
Associated companies MBK Plc. Siam Samsung Life Insurance Co., Ltd. Related companies
Synphaet Co., Ltd. The Bank of Nova Scotia Srithai Superware Plc.
-
-
577
-
15
-
-
-
76
Krungthai Card Plc.
-
582
3,533
-
7
-
-
-
-
Chaimongkol Refinery Co., Ltd. Other related companies
-
-
2,471
-
-
-
-
-
3
-
-
1,324
194
851
35
932
317
305
1,122
582
11,302
253
1,267
7,968
9,820
507
2,974
97
178
Annual Report 2011 Thanachart Bank Public Company Limited
(Unit: Million Baht) Consolidated financial statements 2010 Liabilities
Assets Interbank
Loans to
Interbank
and money
Investments
customers
and money
Debt
market
- debt
and interest
Other
market
issued and
Other
items
securities
receivables
assets
Deposits
items
borrowings
liabilities
Commitments
Parent company Thanachart Capital Plc.
-
45
21
24
61
-
3,636
71
-
MBK Plc.
-
-
-
9
144
-
1,800
10
30
Ratchthani Leasing Plc.
-
-
6,503
-
37
-
-
-
-
-
-
-
-
98
-
-
-
-
-
-
-
-
98
-
-
-
-
Seacon Development Plc.
-
-
736
1
1
-
-
-
58
Thai Hua Rubber Plc.
-
-
1,777
-
191
-
150
1
1,359
Associated companies
Siam Samsung Life Insurance Co., Ltd. Siam City Insurance Co., Ltd. Related companies
Krung Thai IBJ Leasing Co., Ltd. Advanced Info Service Plc. Synphaet Co., Ltd.
-
-
593
-
-
-
-
-
-
-
244
24
6
2,041
-
200
39
19
-
-
654
-
9
-
-
-
28
4,056
-
-
1
-
30
500
224
-
435
-
-
3
-
6,853
3,494
76
1,458
Krungthai Card Plc.
-
964
9,344
9
4
-
-
-
-
Wangkanai Sugar Co., Ltd.
-
-
1,658
-
15
-
-
-
48
-
-
2,840
-
95
-
-
-
3
320
175
1,575
302
1,076
37
780
18
227
4,811
1,428
25,725
355
3,870
6,920
10,560
439
3,230
Government Savings Bank The Bank of Nova Scotia
Chaimongkol Refinery Co., Ltd. Other related companies
98
Annual Report 2011 Thanachart Bank Public Company Limited
179
(Unit: Million Baht) Separate financial statements 2011 Liabilities
Assets Interbank
Loans to
Interbank
and money
Investments
customers
and money
Debt
market
- debt
and interest
Other
market
issued and
Other
items
securities
receivables
assets
items
borrowings
liabilities
Deposits
Commitments
Parent company 86
-
-
85
-
-
-
-
-
-
55
-
7
737
95
241
-
1,124
170
10
-
57
-
215
2,000
62
-
-
-
-
114
-
140
-
-
-
-
9,824
12
872
-
-
46
-
-
-
-
2
-
131
885
20
-
-
-
7,870
-
24
-
-
-
17
-
-
22
22
56
5
-
67
-
-
-
-
8
93
-
1,500
11
-
-
-
-
-
26
-
100
-
-
Seacon Development Plc.
-
-
591
1
-
-
-
-
-
Thai Hua Rubber Plc.
-
-
1,993
-
195
-
150
1
10
Synphaet Co., Ltd.
-
-
796
-
9
-
-
-
-
Krungthai Card Plc.
-
582
3,533
-
7
-
-
-
-
Thanachart Capital Plc.
-
-
-
19
71
-
-
-
-
-
34,298
-
-
-
353
-
6
150
-
-
3
-
-
-
-
-
-
3,643
Subsidiary companies Siam City Bank Plc. Thanachart Group Leasing Co., Ltd. Thanachart Securities Plc. Thanachart Insurance Co., Ltd. Thanachart Life Assurance Co., Ltd. Thanachart Broker Co., Ltd. TS Asset Management Co., Ltd. Siam City Life Assurance Co., Ltd. Ratchthani Leasing Plc. Other subsidiary companies Associated company MBK Plc. Siam Samsung Life Insurance Co., Ltd. Related companies
Srithai Superware Plc.
-
-
577
-
15
-
-
-
76
The Bank of Nova Scotia
1,122
-
-
21
-
7,933
3,494
89
2,580
Other related companies
-
-
751
157
851
34
932
115
84
1,272
582
26,310
397
36,878
8,373
13,968
759
3,514
99
180
Annual Report 2011 Thanachart Bank Public Company Limited
(Unit: Million Baht) Separate financial statements 2010 Liabilities
Assets Interbank
Loans to
Interbank
and money
Investments
customers
market
- debt
and interest
Other
items
securities
receivables
assets
Deposits
and money
Debt
market
issued and
Other
items
borrowings
liabilities
Commitments
Parent company Thanachart Capital Plc.
-
-
-
622
60
-
3,636
70
-
25
-
-
-
-
9
-
-
-
-
-
934
-
9
-
-
-
-
-
-
-
2
-
624
-
13
30
-
-
-
46
173
-
166
116
10
-
-
-
218
-
443
-
51
-
-
-
-
100
127
-
-
-
-
-
-
52
2
45
19
-
61
-
-
-
-
8
139
-
1,800
10
30
-
-
736
1
1
-
-
-
58
Subsidiary companies Siam City Bank Plc. Thanachart Group Leasing Co., Ltd. Thanachart Securities Plc. Thanachart Insurance Co., Ltd. Thanachart Life Assurance Co., Ltd. Thanachart Broker Co., Ltd. Other subsidiary companies Associated company MBK Plc. Related companies Seacon Development Plc. Thai Hua Rubber Plc.
-
-
1,677
-
153
-
150
-
1,358
Advanced Info Service Plc.
-
4
23
-
2,039
-
200
3
19
Synphaet Co., Ltd.
-
-
654
-
9
-
-
-
28
Krungthai Card Plc.
-
-
2,013
-
4
-
-
-
-
The Bank of Nova Scotia
430
-
-
3
-
5,948
3,494
76
1,458
Other related companies
11
-
810
274
900
38
780
223
11
466
4
6,899
1,276
3,659
7,081
10,226
623
3,002
As at 31 December 2011 and 2010, the Bank has loans to subsidiary companies as mentioned in Note 12.11 to the financial statements. As at 31 December 2011, the Bank and its subsidiaries have investments amounting to Baht 672 million (Baht 252 million in the separate financial statements) in related companies in which they are related by means of members of their management being shareholders and/or directors of those companies (2010: Baht 596 million in the consolidated financial statements and Baht 62 million in the separate financial statements).
100
Annual Report 2011 Thanachart Bank Public Company Limited
181
As at 31 December 2011 and 2010, the Bank and its subsidiaries have the following related parties transactions with executive employees of the Bank and companies within Thanachart Group from management level up, including related persons who together with these employees: (Unit: Million Baht) Consolidated
Separate
financial statements
financial statements
2011 Loans Deposits
2010
2011
2010
49
59
45
24
535
487
535
386
Directors and management’s remuneration During the years 2011 and 2010 the Bank and its subsidiaries paid the following benefits to their key management personnel, including directors, totaled 147 persons and 177 persons respectively (the separate financial statements: 50 persons and 34 persons respectively): (Unit: Million Baht) Consolidated
Separate
financial statements
financial statements
2011 Short-term employee benefits
2010
2011
2010
597
495
254
162
Post-employment benefits
10
-
3
-
Termination benefits
26
-
-
-
633
495
257
162
101
182
Annual Report 2011 Thanachart Bank Public Company Limited
44.
Financial information by segment
44.1 Financial position and results of operations classified by business activity The financial position as at 31 December 2011 and 2010, and the results of operations for the years ended 31 December 2011 and 2010, classified by domestic and foreign operations, are as follow: (Unit: Million Baht) Consolidated financial statements 2011 Domestic
Foreign
operations
operations
Eliminations
Total
Total assets
986,181
15,245
(115,366)
886,060
Interbank and money market items (assets)
106,642
8,066
(51,507)
63,201
Investments
145,222
7,132
(4,009)
148,345
42,552
-
(41,129)
1,423
628,174
-
(18,271)
609,903
471,618
-
(35,578)
436,040
78,910
15,010
(33,769)
60,151
258,446
-
(4,149)
254,297
Investments in subsidiary and associated companies Loans to customers and accrued interest receivables Deposits Interbank and money market items (liabilities) Debt issued and borrowings
(Unit: Million Baht) Consolidated financial statements 2010
Total assets Interbank and money market items (assets) Investments
Domestic
Foreign
operations
operations
Eliminations
Total
928,250
10,758
(66,005)
873,003
98,005
196
(13,141)
85,060
126,284
10,505
3,233
140,022
77,219
-
(75,042)
2,177
582,595
-
(1,069)
581,526
532,974
-
(318)
532,656
43,894
10,291
(13,640)
40,545
175,115
-
(166)
174,949
Investments in subsidiary and associated companies Loans to customers and accrued interest receivables Deposits Interbank and money market items (liabilities) Debt issued and borrowings
102
Annual Report 2011 Thanachart Bank Public Company Limited
183
(Unit: Million Baht) Consolidated financial statements 2011
Interest income Interest expenses Net interest income
Domestic
Foreign
operations
operations
45,076
218
(20,661)
(37)
900
(19,798)
24,415
181
(180)
24,416
(4)
(1,365)
3,358
1,231
2,128
(7,754)
5,109
Net fee and service income (losses)
4,727
Net insurance/Life insurance income
897
-
12,824
39
Other operating income Other operating expenses
Eliminations (1,080)
Total 44,214
(21,909)
-
32
(21,877)
Impairment loss of loans and debt securities
(2,525)
-
21
(2,504)
Corporate income tax
(2,948)
-
-
(2,948)
Income before non-controlling interests
15,481
216
(8,015)
7,682
(Unit: Million Baht) Consolidated financial statements 2010 Domestic
Foreign
operations
operations
35,056
274
(549)
34,781
(11,695)
(47)
176
(11,566)
23,361
227
(373)
23,215
Net fee and service income (losses)
3,992
-
(1,142)
2,850
Net insurance/Life insurance income
1,447
-
Other operating income
5,774
15
(17,272)
(3)
452
(16,823)
Impairment loss of loans and debt securities
(2,130)
-
(19)
(2,149)
Corporate income tax
(4,548)
-
Income before non-controlling interests
10,624
Interest income Interest expenses Net interest income
Other operating expenses
239
Eliminations
905 (1,534)
(1,711)
Total
2,352 4,255
(4,548) 9,152
103
184
Annual Report 2011 Thanachart Bank Public Company Limited
(Unit: Million Baht) Separate financial statements 2011
Total assets Interbank and money market items (assets) Investments
Domestic
Foreign
operations
operations
877,959
Eliminations
Total
15,245
(15,151)
878,053
70,048
8,066
(15,151)
62,963
107,409
7,132
-
114,541
40,842
-
-
40,842
604,770
-
-
604,770
471,618
-
-
471,618
59,424
15,010
257,503
-
Investments in subsidiary and associated companies Loans to customers and accrued interest receivables Deposits Interbank and money market items (liabilities) Debt issued and borrowings
(15,151) -
59,283 257,503
(Unit: Million Baht) Separate financial statements 2011 Domestic
Foreign
operations
operations
29,519
40
(11)
29,548
(14,959)
(11)
11
(14,959)
14,560
29
-
14,589
Net fee and service income
2,760
-
-
2,760
Other operating income
4,412
-
-
4,412
(13,671)
-
-
(13,671)
(1,422)
-
-
(1,422)
29
-
6,668
Interest income Interest expenses Net interest income
Other operating expenses Impairment loss of loans and debt securities Income before non-controlling interests
6,639
Eliminations
Total
The financial position as at 31 December 2010 and the results of operations for the year then ended, per separate financial statements are the result of domestic operations only.
104
Annual Report 2011 Thanachart Bank Public Company Limited
185
44.2 Financial positions and results of operations classified by business type The Bank and its subsidiaries’ business operations involve 6 principal segments: (1) Banking business; (2) Securities business; (3) Life insurance business; (4) Non-life insurance business; (5) Asset management business; and (6) Hire purchase and finance lease business. Below is the consolidated financial information of the Bank and its subsidiaries by segment. (Unit: Million Baht) For the year ended 31 December 2011 Hire purchase/ finance
Other
Banking
Securities
insurance
insurance
managemen
lease
busines
business
business
business
business
t business
business
s
43,225
194
1,143
Interest income Interest expenses
Life
Non-life
Asset
(20,440)
(17)
22,785
177
3,946
504
(16)
-
-
(317)
Net interest income
122
-
-
1,143
122
273
175
Eliminations Consolidated 125
(1,043)
44,214
(85)
(98)
(21)
863
(19,798)
188
77
104
(180)
24,416
-
9
285
(1,365)
3,358
-
-
-
1,231
2,128
Net fee and service income (losses) Net insurance income Other operating income Other operating expenses
(5) 1,214
10,682
1,359
501
43
32
12
234
(18,897)
(1,397)
(467)
(636)
(119)
(28)
(365)
(7,754) 32
(21,877)
5,109
Impairment loss of loans and debt securities
(2,706)
220
(37)
(2)
21
(2,504)
Corporate income tax
(1,873)
(170)
-
(426)
-
(255)
-
(141)
(21)
(62)
-
(2,948)
13,937
473
418
483
180
12
194
Income before non-controlling interest
(8,015)
7,682
(Unit: Million Baht) For the year ended 31 December 2010
Interest income Interest expenses Net interest income
Life
Non-life
Banking
Securities
insurance
insurance
Other
business
business
business
business
business
33,961
129
829
60
304
(502)
34,781
(11,652)
(5)
-
-
(38)
129
(11,566)
22,309
124
829
60
266
(373)
23,215
3,242
547
(120)
(4)
327
(1,142)
2,850
-
-
579
868
-
905
2,352
Eliminations Consolidated
Net fee and service income (losses) Net insurance income Other operating income Other operating expenses
3,703
1,504
312
52
218
(1,534)
4,255
(14,579)
(1,438)
(379)
(474)
(405)
452
(16,823)
Impairment loss of loans and debt securities Corporate income tax
(2,159)
-
-
-
29
(19)
(2,149)
(3,576)
(216)
(442)
(208)
(106)
-
(4,548)
8,940
521
779
294
329
(1,711)
9,152
Income before non-controlling interests
105
186
Annual Report 2011 Thanachart Bank Public Company Limited
(Unit: Million Baht) As at 31 December 2011 Hire purchase/ Non-life
Life
finance
Asset
lease
Other
business
business
business
Banking
Securities
insurance
insurance management
business
business
business
business
Eliminations
Consolidated
Interbank and money market items Investments
97,346
376
359
233
872
50
321
(36,356)
63,201
114,541
223
32,814
4,776
-
-
-
(4,009)
148,345
40,842
667
678
303
-
-
62
(41,129)
1,423
604,770
1,953
99
-
8,267
12,176
909
(18,271)
609,903
Investments in subsidiary and associated companies Loans to customers and accrued interest receivable - net Land, premises and 8,365
54
155
106
-
45
17
17
8,759
Other assets
equipment - net
46,572
966
798
3,290
3,128
77
65
(467)
54,429
Total assets
912,436
4,239
34,903
8,708
12,267
12,348
1,374
(100,215)
886,060
(Unit: Million Baht) As at 31 December 2010
Interbank and money market items
Life
Non-life
Banking
Securities
insurance
insurance
Other
business
business
business
business
business
Eliminations Consolidated
84,277
1,684
1,263
296
197
(2,657)
85,060
103,227
767
28,794
3,801
200
3,233
140,022
75,271
763
776
347
62
(75,042)
2,177
579,541
1,345
58
-
1,651
(1,069)
581,526
8,731
79
128
19
29
-
8,986
Other assets
31,498
2,033
703
926
58
20,014
55,232
Total assets
882,545
6,671
31,722
5,389
2,197
(55,521)
873,003
Investments Investments in subsidiary and associated companies Loans to customers and accrued interest receivable - net Land, premises and equipment net
106
Annual Report 2011 Thanachart Bank Public Company Limited
187
45.
Encumbrance of assets As at 31 December 2011 and 2010, the Bank and its subsidiaries have the following assets, presented at book value, which are subject to restriction. (Unit: Million Baht) Consolidated
Separate
financial statements
financial statements
2011
2010
2011
2010
Investment in securities Guarantee placed with the registrar
7,448
6,214
-
-
20
283
20
20
Collateral for derivatives agreements
-
190
-
190
Security for electricity usage
-
13
-
-
739
522
739
221
963
1,554
923
31
9,170
8,776
1,682
462
Placed with court for stay of execution
Property foreclosed Immovable assets subject to buyback options or first refusal rights Immovable assets subject to purchase or sell agreements with clients but currently being settled in installments or through transfer of ownership
46.
Commitments and contingent liabilities As at 31 December 2011 and 2010, significant commitments and contingent liabilities consisted of:
46.1 Commitments (Unit: Million Baht) Consolidated financial statements 2011 Aval to bills
2010
Separate financial statements 2011
2010
386
654
386
238
Guarantees of loans
1,230
422
1,230
2
Liability under unmatured import bills
1,105
571
1,105
120
Letter of credits
2,626
2,456
2,626
672
Committed (but not draw) overdraft
28,548
45,740
28,548
5,757
Others
21,405
24,234
21,385
5,266
55,300
74,077
55,280
12,055
Other obligations
Total
In addition, the Bank and its subsidiaries have commitments in respect of foreign exchange contracts, interest rate swap contracts, cross currency and interest rate swap contracts and gold futures, as mentioned in Note 9 to the financial statements. 107
188
Annual Report 2011 Thanachart Bank Public Company Limited
46.2 During the years 2001 and 2002, the Bank entered into agreements to transfer nonperforming loans and receivables of approximately Baht 296 million to TAMC. The Bank is still jointly liable for a share of the gains and losses arising from TAMC’s management of these non-performing assets to be calculated at the end of the fifth year and tenth year, counting from 1 July 2001. If there are losses, the Bank is liable for all initial losses up to 20 percent of the transfer price, while further losses of up to another 20 percent of the transfer price are to be shared equally between the Bank and TAMC, and TAMC is liable for all remaining losses. Such gains and losses will be determined based on the accumulated value of collections made on the assets at the date of determination, minus transfer costs and all operating expenses of TAMC, including interest on the debt instruments issued to purchase the loans and receivables. The gain or loss cannot be estimated at this stage, but as at 31 December 2011, the Bank has estimated its share of the losses which may arise from the management of the non-performing assets at approximately Baht 89 million. This amount has been presented as a part of provisions in the statements of financial position. 46.3 The Bank has entered into agreements to sell housing loans/transfer rights to the Secondary Mortgage Corporation, under which it is committed to compensate the Corporation for losses from uncollected housing loans up to a maximum of 20 percent of the valuation of the said receivables. As at 31 December 2011, its maximum obligation is Baht 2 million. 46.4 As at 31 December 2011, the Bank and its subsidiaries have commitments to pay the service fees in relation to property foreclosed, computer system services and other services, including commitments in respect of office rental and related service fees under long-term rental contracts, as follow: (Unit: Million Baht)
Year
Consolidated
Separate
financial statements
financial statements
Other
Parent
Other
Parent
Subsidiary
parties
company
parties
company
companies
2012
1,675
69
1,613
52
47
2013
1,253
9
1,196
2
-
2014 onward
4,043
1
3,609
1
-
In addition, the Bank has obligations to pay an administrative fee to a subsidiary company, determined at actual cost plus a margin, for the period stipulated in the agreement.
108
Annual Report 2011 Thanachart Bank Public Company Limited
189
46.5 Commitments of SCIB from transfer of business from Bangkok Metropolitan Bank Public Company Limited and transfer of non-performing assets to Sukhumvit Asset Management Company Limited SCIB entered into a business transfer agreement with Bangkok Metropolitan Bank Plc. (“BMB”), effective from 1 April 2002, and transferred its assets and those of BMB to Petchburi Asset Management Co., Ltd. (“PAM”), before they were transferred to Sukhumvit Asset Management Co., Ltd. (“SAM”). Subsequently, SCIB transferred its entire business, including commitments and agreements with PAM and SAM, to Thanachart Bank, effective from 1 October 2011. Thanachart Bank thus has commitments as a result of such transfer. However, the commitments of FIDF to SCIB have been transferred to/assumed by Thanachart Bank as the purchaser of SCIB’s shares from FIDF. As at 31 December 2011, outstanding obligations are summarised below. a)
There was an outstanding difference of Baht 93 million, as a result of the transfer of assets to SAM. These comprised receivables awaiting collection and the difference is presented under the caption of “Differences as a result of assets transferred to SAM” in the statements of financial position. Such amounts mainly relate to transfers of guarantee claims, for which there are pending issues with regard to proof the rights of claim or the assets transferred being qualified in accordance with the conditions set out in the transfer agreements. Such differences are now being examined and/or negotiated among Thanachart Bank, SAM and the FIDF for final resolution. As at 31 December 2011, such differences consist of (i) Baht 10 million of transactions incurred directly by SCIB, for which full allowance for doubtful debts has been set aside, and (ii) Baht 83 million of transactions incurred by BMB. If losses arise on the latter and collection cannot be made from SAM, the FIDF will consider compensating for all losses from (ii). Thanachart Bank’s management believes that no significant further losses will arise since the transfers of those assets corresponded to the principles of the agreements made among SCIB, BMB and SAM and the agreement given by FIDF.
109
190
Annual Report 2011 Thanachart Bank Public Company Limited
b)
SAM is re-examining certain previously transferred assets (both of SCIB and BMB) in order to determine whether to transfer the assets back, to request price adjustments or to request settlement together with interest. The major pending issue relates to the proof of rights of claim over these assets. As at 31 December 2011, the transferred assets which SAM is re-examining totaling Baht 370 million consist of (i) Baht 28 million of transactions incurred directly by SCIB, for which full allowance for doubtful loss has set aside under the caption of “Provision for liabilities” in the statements of financial position, and (ii) Baht 342 million of transactions incurred by BMB. If losses arise from (ii), Thanachart Bank will receive compensation for loss from FIDF and any adjusting transactions will be within the limit of the funds set aside by FIDF to compensate losses in such cases, amounting to approximately Baht 258 million. In addition, SAM is now negotiating with Thanachart Bank to request interest payment on the assets transferred back, or a price adjustment.
c)
Lawsuits in which SCIB is involved as a result of the transfer of business from BMB amounting to approximately Baht 11,280 million, as disclosed under contingent liabilities in Note 47 to the financial statements.
d)
Outstanding letters of guarantee.
The FIDF deposited an amount equal to the loss compensation limit with Thanachart Bank in the FIDF’s account. Such deposit account is to compensate for losses incurred as a result of the transfer of business from BMB, if such losses are actually incurred due to the outstanding issues described in a), b), c) and d) above. As at 31 December 2011, the deposit account of the FIDF with Thanachart Bank to fund the payment of compensation for losses has an outstanding balance of approximately Baht 791 million. In addition, there is a memorandum of agreement concerning conditions for additional loss compensation if Thanachart Bank incurs losses in relation to the two lawsuits discussed in c), with claims totaling Baht 9,965 million. However, Thanachart Bank and SAM had a meeting and mutually agreed a resolution to such pending issues. Thanachart Bank believes that no significant further losses will be incurred, other than losses for which it has already set aside full allowance for doubtful debts and/or amount that will compensate by FIDF.
110
Annual Report 2011 Thanachart Bank Public Company Limited
191
46.6 Commitments arising from sale of ordinary shares of Siam City Securities As a result of the sale of all ordinary shares of Siam City Securities in August 2011, SCIB is obligated to pay compensation to indemnify the buyer from pending lawsuits including litigation in which Siam City Securities is pursuing collection of debt amounts and/or future litigation which made claims against its debtor that arose before the disposal date of such shares. Moreover, SCIB undertakes to compensate the buyer for any expenses incurred whenever the buyer or Siam City Securities provide SCIB with written notification of reasons for such compensation, together with evidence, for up to 3 years from the share transfer date. Such commitment of SCIB has transferred to Thanachart Bank at the date of the entire business transfer. However, Thanachart Bank’s management believes that no further losses will be incurred. 47.
Litigation As at 31 December 2011, the Bank and its subsidiaries have contingent liabilities amounting to approximately Baht 24,026 million (separate financial statements: Baht 22,940 million) in respect of litigation. However, the Bank and its subsidiaries’ management have already made certain provision for contingency losses, and for the remaining portion the management believes that no losses will result and therefore no liabilities are currently recorded. Part of the contingent liabilities of the litigation mentioned above amounting to Baht 22,446 million represents claims filed against SCIB as defendant or co-defendant in lawsuits. These comprise both lawsuits directly involving SCIB and obligations arising as a result of the transfer of business from BMB; (i) Baht 11,166 million relates to SCIB’s own lawsuits, with Baht 8,594 million of this amount relating to a tort case in which the actual loss is only Baht 202 million. The Court of First Instance has already ordered the case be dismissed and it is in the process of being reviewed by the Supreme Court. The total sum of claims in cases relating directly to SCIB’s business, after deducting this tort case, is thus Baht 2,572 million; and (ii) The remaining portion of Baht 11,280 million represents cases in which SCIB is involved as a result of the transfer of business from BMB, and for which SCIB is entitled to compensation for actual losses incurred if such losses are in accordance with the conditions agreed with the FIDF (Baht 9,586 million of this amount relates a single case brought by a debtor that BMB had already transferred to SAM before SCIB received the transfer of business from BMB, and SCIB believes that the lawsuit has been brought against the wrong party, and not SCIB’s responsibility, SCIB’s management believes that SCIB has no liability in respect of such case.). As at 31 December 2011, SCIB had already made provisions for contingent liabilities totaling Baht 62 million for those lawsuits under (i) above where the Court of First Instance has already judged in favor of the plaintiff. SCIB’s management believes that there will be no significant future losses as a result of the remaining cases. However, all contingent liabilities and provisions for contingent liabilities were transferred from SCIB to Thanachart Bank on the date of the entire business transfer.
111
192
Annual Report 2011 Thanachart Bank Public Company Limited
In addition, SCIB was requested to make restitution as a result of a person forging SCIB’s documents and using such counterfeit documents. However, SCIB has already filed a complaint against the person who produced and used counterfeit documents so as to proceed with a legal action. SCIB believes that no liability will arise from such restitution claim. 48.
Letter of guarantees As at 31 December 2011, the Bank and its subsidiaries had letter of guarantees issued by the Bank and its subsidiaries, amounting approximately Baht 24 million, placed for electricity usage of the branches (separate financial statements: Baht 23 million).
49.
Financial instruments Financial instruments are any contracts which give rise to both a financial assets of one enterprise and a financial liability or equity instruments of another enterprise.
49.1 Credit risk Credit risk is the risk that the party to a financial instrument will fail to fulfill an obligation, causing the Bank and its subsidiaries to incur a financial loss. The amount of maximum credit risk exposure is the carrying amount of the financial assets less provision for losses as stated in the statements of financial position and the risk of commitments from avals, guarantees of loans, other guarantees and derivative contracts. In addition, the Bank and its subsidiaries manage credit risk by the means of careful consideration of credit approval process, analysis of risk factors and, the ability to service debt of customers, and a credit review process, which examines and reviews the quality of the loan portfolio so as to prevent and provide a remedy for problem loans in the future. 49.2 Market risk Market risk is the risk that changes in interest rates, foreign exchange rates and securities prices may have an effect on the Bank and its subsidiaries’ foreign currency position and investment status. As such, market risk consists of interest rate risk, foreign exchange risk and equity position risk.
112
Annual Report 2011 Thanachart Bank Public Company Limited
193
a)
Interest rate risk
Interest rate risk is the risk that the value of financial instrument will fluctuate as a result of changes in market interest rates. The Bank and its subsidiaries manage the changes in interest rate risk by means of an appropriate structuring of holdings in assets and liabilities with different repricing dates, taking into account the direction of market interest rates, in order to generate a suitable yield while maintaining risk at acceptable levels. Such management is under the supervision of the Asset and Liabilities Management Committee. As at 31 December 2011 and 2010, financial assets and liabilities classified by types of interest rate are as follows: (Unit: Million Baht) Consolidated financial statements 2011
Transactions
Floating
Fixed
Non-
interest
interest
interest
rate
rate
bearing
Total
Financial assets Cash
-
-
16,006
16,006
23,000
32,178
8,137
63,315
-
-
1,536
1,536
12
135,851
11,885
147,748
-
-
1,423
1,423
313,265
321,747
208
635,220
-
-
858
858
-
-
25
25
174,519
255,821
5,700
436,040
7,419
51,274
1,458
60,151
Liabilities payable on demand
-
-
2,131
2,131
Derivatives liabilities
-
-
2,886
2,886
Debt issued and borrowings
-
254,297
-
254,297
-
-
851
851
-
-
306
306
Interbank and money market items Derivatives assets Investments Investments in associated companies (1)
Loans to customers
Receivable from purchase and sale securities and derivatives Other assets - receivable from clearing house Financial liabilities Deposits Interbank and money market items
Payable from purchase and sale securities and derivatives Other liabilities - payable from clearing house (1)
The outstanding balances of loans to customers which have floating interest rates or fixed interest rates include loans on which interest recognition is discontinued
113
194
Annual Report 2011 Thanachart Bank Public Company Limited
(Unit: Million Baht) Consolidated financial statements 2010
Transactions
Floating
Fixed
Non-
interest
interest
interest
rate
rate
bearing
Total
Financial assets Cash
-
-
15,298
15,298
1,166
77,559
6,462
85,187
-
-
3,117
3,117
5,840
121,092
12,000
138,932
-
-
2,177
2,177
253,297
353,273
281
606,851
-
-
2,870
2,870
-
-
391
391
185,346
341,372
5,938
532,656
7,175
31,398
1,972
40,545
Liabilities payable on demand
-
-
3,127
3,127
Derivatives liabilities
-
-
941
941
3,996
170,930
23
174,949
-
-
4,054
4,054
-
-
98
98
Interbank and money market items Derivatives assets Investments Investments in associated companies Loans to customers(1) Receivable from purchase and sale securities and derivatives Other assets - receivable from clearing house Financial liabilities Deposits Interbank and money market items
Debt issued and borrowings Payable from purchase and sale securities and derivatives Other liabilities - payable from clearing house (1)
The outstanding balances of loans to customers which have floating interest rates or fixed interest rates include loans on which interest recognition is discontinued
Annual Report 2011 Thanachart Bank Public Company Limited
114
195
(Unit: Million Baht) Separate financial statements 2011
Transactions
Floating
Fixed
Non-
interest
interest
interest
rate
rate
bearing
Total
Financial assets Cash
-
-
16,004
16,004
22,966
32,113
8,002
63,081
-
-
1,532
1,532
12
103,875
10,450
114,337
-
-
40,842
40,842
308,348
308,229
135
616,712
-
-
65
65
175,709
290,112
5,797
471,618
6,496
51,274
1,513
59,283
Liabilities payable on demand
-
-
2,131
2,131
Derivatives liabilities
-
-
2,877
2,877
Debt issued and borrowings
-
257,503
-
257,503
-
-
268
268
Interbank and money market items Derivatives assets Investments Investments in subsidiary and associated companies (1)
Loans to customers
Receivable from purchase and sale securities and derivatives Financial liabilities Deposits Interbank and money market items
Payable from purchase and sale securities and derivatives (1)
The outstanding balances of loans to customers which have floating interest rates or fixed interest rates include loans on which interest recognition is discontinued
196
Annual Report 2011 Thanachart Bank Public Company Limited
115
Separate financial statements 2010
Transactions
Floating
Fixed
Non-
interest
interest
interest
rate
rate
bearing
Total
Financial assets Cash
-
-
3,733
3,733
115
24,574
3,732
28,421
Derivatives assets
-
-
928
928
Investments
-
48,897
601
49,498
-
-
73,121
73,121
42,707
283,667
175
326,549
-
-
1,733
1,733
91,918
149,844
1,029
242,791
3,809
25,190
707
29,706
Liabilities payable on demand
-
-
2,326
2,326
Derivatives liabilities
-
-
434
434
Debt issued and borrowings
-
132,092
-
132,092
-
-
1,733
1,733
Interbank and money market items
Investments in subsidiary and associated companies (1)
Loans to customers
Receivable from purchase and sale securities and derivatives Financial liabilities Deposits Interbank and money market items
Payable from purchase and sale securities and derivatives (1)
The outstanding balances of loans to customers which have floating interest rates or fixed interest rates include loans on which interest recognition is discontinued
With respect to financial instruments that carry fixed interest rates, the periods from the financial position date to the repricing or maturity date (whichever is the earlier) are presented below: (Unit: Million Baht) Consolidated financial statements 2011 Repricing or maturity date
Transactions
At call
Weighted
0-3
3 - 12
1-5
Over 5
months
months
years
years
average Total
interest rates Percent
Financial assets Interbank and money market items
-
29,523
2,655
-
-
32,178
1.27-2.49
Investments
-
14,772
46,447
57,851
16,781
135,851
3.19-4.47
3,626
22,243
15,445
212,320
68,113
321,747
8.10-9.82
89
169,399
77,929
8,404
-
255,821
3.12
Loans to customers Financial liabilities Deposits Interbank and money market items Debt issued and borrowings
13,458
32,220
5,379
217
-
51,274
999
133,517
103,060
16,700
21
254,297
2.29 4.06-4.75
116
Annual Report 2011 Thanachart Bank Public Company Limited
197
(Unit: Million Baht) Consolidated financial statement 2010 Repricing or maturity date
Transactions
At call
Weighted
0-3
3 - 12
1-5
Over 5
months
months
years
years
average Total
interest rates Percent
Financial assets Interbank and money market items Investments Loans to customers
147
76,912
500
-
-
77,559
1.75 – 2.21
-
23,980
26,872
47,241
22,999
121,092
3.18 – 3.33
6,968
48,134
40,693
198,372
59,106
353,273
5.48 – 7.60
Financial liabilities Deposits Interbank and money market items Debt issued and borrowings
53
193,904
125,726
21,689
-
341,372
1.65 – 1.98
7,015
19,901
3,076
1,406
-
31,398
1.52 – 1.55
1
109,296
38,415
23,185
33
170,930
2.63 – 2.83
(Unit: Million Baht) Separate financial statements 2011 Repricing or maturity date
Transactions
At call
Weighted
0-3
3 - 12
1-5
Over 5
months
months
years
years
average Total
interest rates Percent
Financial assets Interbank and money market items
-
29,546
2,567
-
-
32,113
3.24
Investments
-
13,136
42,218
47,283
1,238
103,875
3.19
3,473
22,197
14,921
199,900
67,738
308,229
8.10
Loans to customers Financial liabilities Deposits Interbank and money market items Debt issued and borrowings
89
203,677
77,942
8,404
-
290,112
3.01
13,458
32,220
5,379
217
-
51,274
0.25
56
135,642
105,084
16,700
21
257,503
4.05
(Unit: Million Baht) Separate financial statement 2010 Repricing or maturity date
Transactions
At call
Weighted
0-3
3 - 12
1-5
Over 5
months
months
years
years
average Total
interest rates Percent
Financial assets Interbank and money market items
-
24,574
-
-
-
24,574
1.75
Investments
-
7,477
18,319
14,542
8,559
48,897
3.33
3,595
11,225
17,886
193,959
57,002
283,667
7.58
1
82,136
61,182
6,525
-
149,844
1.98
6,835
16,365
602
1,388
-
25,190
1.53
1
87,700
31,391
13,000
-
132,092
2.63
Loans to customers Financial liabilities Deposits Interbank and money market items Debt issued and borrowings
117
198
Annual Report 2011 Thanachart Bank Public Company Limited
In addition, the average balances of the financial assets and liabilities of the Bank and its subsidiaries generating revenues and expenses, calculated based on the average balances outstanding during the years, and the average interest rate for the years 2011 and 2010 can be summarised as follows: (Unit: Million Baht) Consolidated financial statements For the years ended 31 December 2011 Average
2010 Average
Average
Average
balances
Interest
rate (%)
balances
Interest
rate (%)
Interbank and money market items
65,402
2,237
3.42
76,969
1,054
1.67
Investments and trading operations
4,950
78
1.58
5,164
82
2.04
Investment in debt securities
133,575
4,114
3.08
132,140
3,653
3.18
Loans/hire purchase and finance leases
667,896
37,785
5.66
537,667
29,992
6.22
447,955
10,928
2.44
538,925
7,874
1.67
56,551
1,289
2.28
47,226
506
1.27
215,485
7,581
3.52
132,292
3,186
2.58
Interest bearings financial assets
Interest bearings financial liabilities Deposits Interbank and money market items Debt issued and borrowings
(Unit: Million Baht) Separate financial statements For the years ended 31 December 2011 Average
2010 Average
Average balances
Average
balances
Interest
rate (%)
Interbank and money market items
29,786
1,365
4.58
30,968
403
1.30
Investments and trading operations
1,755
24
1.35
565
13
2.36
61,702
2,023
3.28
54,488
1,708
3.13
400,397
26,135
6.53
289,939
19,273
6.65
266,850
6,898
2.16
248,617
4,546
1.83
56,340
1,555
2.76
26,629
293
1.10
176,696
6,506
3.68
98,284
2,536
2.58
Interest
rate (%)
Interest bearings financial assets
Investment in debt securities Loans/hire purchase and finance leases Interest bearings financial liabilities Deposits Interbank and money market items Debt issued and borrowings
118
Annual Report 2011 Thanachart Bank Public Company Limited
199
b)
Foreign exchange risk
Foreign exchange risk is the risk that changes in foreign exchange rates may result in changes in the value of financial instruments, and fluctuations in revenues or the values of financial assets and liabilities. Since the Bank and its subsidiaries have foreign exchange transactions, it may be exposed to foreign exchange risk. However, the Bank and its subsidiaries have a policy to mitigate this foreign exchange exposure through management of its net exchange position and operation in accordance with a risk management policy which has been approved by their Board of Directors and is in strict accordance with BOT guidelines. The status of the Bank and its subsidiaries’ foreign currency balances as at 31 December 2011 and 2010 can be summarised as follows: (Unit: Million Baht) Consolidated financial statements 2011 US Dollar
Euro
Yen
Won
Others
Yuan
Foreign currency in the statements of financial position Cash Interbank and money market items
618
395
292
-
1
381
14,987
119
128
-
6
492
Investments
11,192
599
3,035
549
12,327
38
Loans to customers
13,186
234
486
-
-
101
Other assets
463
1
17
-
49
-
Total assets
40,446
1,348
3,958
549
12,383
1,012
104
21
1
-
-
117
8,602
-
-
-
-
-
Other liabilities
14
-
-
-
-
-
Total liabilities
8,720
21
1
-
-
117
31,726
1,327
3,957
549
12,383
895
Guarantees of loans
920
-
310
-
-
-
Liability under unmatured import bills
368
34
118
-
-
5
2,376
100
92
-
-
22
984
48
1
-
-
27
Deposits Interbank and money market items
Net Foreign currency commitments
Letter of credits Others
200
Annual Report 2011 Thanachart Bank Public Company Limited
119
(Unit: Million Baht) Consolidated financial statements 2010 US Dollar
Euro
Yen
Won
Others
Yuan
Foreign currency in the statements of financial position Cash Interbank and money market items
234
213
119
1
-
191
3,312
119
151
33
-
427
Investments
14,724
571
1,376
4,800
-
37
Loans to customers
11,350
289
30
-
-
54
Other assets
306
8
9
22
-
9
Total assets
29,926
1,200
1,685
4,856
-
718
185
72
2
-
-
143
8,119
24
-
-
-
-
Deposits Interbank and money market items Liability payable on demand
-
-
1
-
-
-
Other liabilities
1,803
-
9
-
-
-
Total liabilities
10,107
96
12
-
-
143
Net
19,819
1,104
1,673
4,856
-
575
36
22
-
-
-
-
Foreign currency commitments Guarantees of loans Liability under unmatured import bills
305
29
56
-
-
32
Letter of credits
2,134
112
103
-
-
28
Others
4,505
25
-
-
-
19
(Unit: Million Baht) Separate financial statements 2011 US Dollar
Euro
Yen
Won
Others
Yuan
Foreign currency in the statements of financial position Cash
619
395
292
-
1
381
Interbank and money market items
14,987
119
128
-
6
492
Investments
11,192
599
3,035
549
12,327
38
Loans to customers
13,183
234
486
-
Other assets
458
1
17
-
49
-
Total assets
40,439
1,348
3,958
549
12,383
1,012
Deposits
101
104
21
1
-
-
117
Interbank and money market items
8,602
-
-
-
-
-
Total liabilities
8,706
21
1
-
-
117
31,733
1,327
3,957
549
12,383
895
Net Foreign currency commitments Guarantees of loans
920
-
310
-
-
-
Liability under unmatured import bills
368
34
118
-
-
5
2,376
100
92
-
-
22
984
48
1
-
-
27
Letter of credits Others
120
Annual Report 2011 Thanachart Bank Public Company Limited
201
(Unit: Million Baht) Separate financial statements 2010 US Dollar
Euro
Yen
Won
Others
Yuan
Foreign currency in the statements of financial position Cash
134
Interbank and money market items
36
88
-
-
55
417
7
28
33
-
115
Investments
5,383
570
178
4,800
-
-
Loans to customers
3,609
30
-
-
-
3
Other assets
160
1
-
22
-
-
Total assets
9,703
644
294
4,855
-
173
37
7
-
-
-
133
7,195
24
-
-
-
-
Other liabilities
348
-
-
-
-
-
Total liabilities
7,580
31
-
-
-
133
Net
2,123
613
294
4,855
-
40
-
2
-
-
-
-
Deposits Interbank and money market items
Foreign currency commitments Guarantees of loans Liability under unmatured import bills
111
7
-
-
-
-
Letter of credits
625
44
-
-
-
-
Others
665
-
-
-
-
2
In addition, the Bank and its subsidiaries have commitments from foreign currency exchange contracts, cross currency and interest rate swap contracts and interest rate swap contracts which have to pay or received repayment in foreign currency that the Bank and its subsidiaries made for trading transactions or hedging transactions (banking book) as follow: (Unit: Million Baht) Consolidated financial statements 2011 US Dollar
Euro
Yen
Won
Yuan
Others
Foreign exchange contracts - Bought
32,441
1,002
386
-
-
552
- Sold
52,246
1,757
1,509
-
10,828
1,467
Cross currency and interest rate swap contracts - Bought
1,347
-
-
-
-
-
11,235
615
2,834
548
1,611
-
- Bought
1,453
-
-
-
-
-
- Sold
1,453
-
-
-
-
-
- Sold Interest rate swap contracts
121
202
Annual Report 2011 Thanachart Bank Public Company Limited
(Unit: Million Baht) Consolidated financial statements 2010 US Dollar
Euro
Yen
Won
Yuan
Others
Foreign exchange contracts - Bought
23,624
145
194
-
-
404
- Sold
30,779
754
721
-
-
1,090
Cross currency and interest rate swap contracts - Bought
6,874
-
-
-
-
-
21,091
599
1,187
4,786
-
-
- Bought
916
-
-
-
-
-
- Sold
916
-
-
-
-
-
- Sold Interest rate swap contracts
(Unit: Million Baht) Separate financial statements 2011 US Dollar
Euro
Yen
Won
Yuan
Others
Foreign exchange contracts - Bought
31,805
1,002
386
-
-
552
- Sold
52,883
1,757
1,509
-
10,828
1,467
Cross currency and interest rate swap contracts - Bought
1,347
-
-
-
-
-
11,235
615
2,834
548
1,611
-
- Bought
1,453
-
-
-
-
-
- Sold
1,453
-
-
-
-
-
- Sold Interest rate swap contracts
(Unit: Million Baht) Separate financial statements 2010 US Dollar
Euro
Yen
Won
Yuan
Others
Foreign exchange contracts - Bought
12,770
30
105
-
-
249
- Sold
11,292
124
448
-
-
407
Cross currency and interest rate swap contracts - Bought
4,476
-
-
-
-
-
- Sold
8,094
599
-
4,786
-
-
- Bought
302
-
-
-
-
-
- Sold
302
-
-
-
-
-
Interest rate swap contracts
122
Annual Report 2011 Thanachart Bank Public Company Limited
203
c)
Equity position risk
Equity position risk is the risk that changes in the market prices of equity securities which will result in fluctuations in revenue and the value of financial assets. The Bank and its subsidiaries have a policy to manage market risk by setting manageable limits on transactions, such as position limit and loss limits. The Risk Control Unit, which is separated from front office and back office functions, is responsible for control of risk and reporting on compliance with the various limits to the Board of Directors, related business unit and related management, in order to facilitate responsive risk management, under the supervision of the Investment Portfolio Committee. 49.3 Liquidity risk Liquidity risk is the risk that the Bank and its subsidiaries will be unable to liquidate their financial assets and/or procure sufficient funds to discharge their obligations in a timely manner, resulting in the Bank and its subsidiaries incurring a financial loss. The Bank and its subsidiaries manage liquidity risk by means of appropriate structuring of short-term and long-term sources of capital. In addition, the Bank and its subsidiaries have a policy to maintain liquidity to ensure that it has sufficient liquidity to meet both present and future requirements, under the supervision of the Asset and Liability Management Committee.
123
204
Annual Report 2011 Thanachart Bank Public Company Limited
Counting from the financial position date, the periods to maturity of financial instruments held as at 31 December 2011 and 2010 are as follows: (Unit: Million Baht) Consolidated financial statements 2011
Transactions
At call
Less than
Over
1 year
1 year
Unspecified
Total
Financial assets Cash
16,006
-
-
-
16,006
8,368
54,827
120
-
63,315
Derivatives assets
-
1,536
-
-
1,536
Investments
1
67,445
68,908
11,394
147,748
Investments in associated companies
-
-
-
1,423
1,423
47,672
193,205
394,343
-
635,220
-
858
-
-
858
-
25
-
-
25
176,616
249,835
9,589
-
436,040
21,081
35,306
3,764
-
60,151
2,131
-
-
-
2,131
-
2,886
-
-
2,886
999
217,447
28,721
7,130
254,297
-
851
-
-
851
-
306
-
-
306
Aval to bill
1
342
43
-
386
Guarantees of loans
-
1,230
-
-
1,230
624
481
-
-
1,105
86
2,540
-
-
2,626
41,732
6,138
2,061
2
49,933
Interbank and money market items
(1)
Loans to customers(2) Receivable from purchase and sale securities and derivatives Other assets - receivable from clearing house Financial liabilities Deposits Interbank and money market items Liability payable on demand Derivatives liabilities Debt issued and borrowings Payable from purchase and sale securities and derivatives Other liabilities - payable from clearing house Commitments
Liability under unmatured import bills Letter of credits Other commitments
(1) The outstanding balances of interbank and money market items at call included the item for which have defaulted on the repayment. (2) The outstanding balances of loans to customers at call included loans for which revenue recognition has been discontinued.
124
Annual Report 2011 Thanachart Bank Public Company Limited
205
(Unit: Million Baht) Consolidated financial statements 2010
Transactions
At call
Less than
Over
1 year
1 year
Unspecified
Total
Financial assets Cash
15,298
-
-
-
15,298
7,405
77,662
120
-
85,187
Derivatives assets
-
3,117
-
-
3,117
Investments
-
48,826
83,891
6,215
138,932
-
-
-
2,177
2,177
62,566
183,319
360,966
-
606,851
-
2,870
-
-
2,870
-
391
-
-
391
188,806
318,019
25,831
-
532,656
16,162
22,917
1,466
-
40,545
3,127
-
-
-
3,127
-
941
-
-
941
11
134,903
32,905
7,130
174,949
-
4,054
-
-
4,054
-
98
-
-
98
13
585
56
-
654
Guarantees of loans
354
57
11
-
422
Liability under unmatured import bills
156
415
-
-
571
Letter of credits
156
2,280
20
-
2,456
56,107
9,407
2,513
1,947
69,974
Interbank and money market items
(1)
Investments in associated companies (2)
Loans to customers
Receivable from purchase and sale securities and derivatives Other assets - receivable from clearing house Financial liabilities Deposits Interbank and money market items Liability payable on demand Derivatives liabilities Debt issued and borrowings Payable from purchase and sale securities and derivatives Other liabilities - payable from clearing house Commitments Aval to bill
Other commitments
(1) The outstanding balances of interbank and money market items at call included the item for which have defaulted on the repayment. (2) The outstanding balances of loans to customers at call included loans for which revenue recognition has been discontinued.
125
206
Annual Report 2011 Thanachart Bank Public Company Limited
(Unit: Million Baht) Separate financial statements 2011
Transactions
At call
Less than
Over
1 year
1 year
Unspecified
Total
Financial assets Cash
16,004
-
-
-
16,004
8,199
54,762
120
-
63,081
Derivatives assets
-
1,532
-
-
1,532
Investments
1
51,378
52,999
9,959
114,337
-
-
-
40,842
40,842
43,701
192,374
380,637
-
616,712
-
65
-
-
65
177,903
284,126
9,589
-
471,618
21,466
34,600
3,217
-
59,283
2,131
-
-
-
2,131
-
2,877
-
-
2,877
57
221,595
28,721
7,130
257,503
-
268
-
-
268
Aval to bill
1
342
43
-
386
Guarantees of loans
-
1,230
-
-
1,230
624
481
-
-
1,105
86
2,540
-
-
2,626
41,732
6,138
2,061
2
49,933
Interbank and money market items
Investments in subsidiary and associated companies (1)
Loans to customers
Receivable from purchase and sale securities and derivatives Financial liabilities Deposits Interbank and money market items Liability payable on demand Derivatives liabilities Debt issued and borrowings Payable from purchase and sale securities and derivatives Commitments
Liability under unmatured import bills Letter of credits Other commitments
(1) The outstanding balances of loans to customers at call included loans for which revenue recognition has been discontinued.
126
Annual Report 2011 Thanachart Bank Public Company Limited
207
(Unit: Million Baht) Separate financial statements 2010
Transactions
At call
Less than
Over
1 year
1 year
Unspecified
Total
Financial assets Cash
3,733
-
-
-
3,733
Interbank and money market items
3,847
24,574
-
-
28,421
Derivatives assets
-
928
-
-
928
Investments
-
21,046
27,892
560
49,498
-
-
-
73,121
73,121
9,847
106,319
210,383
-
326,549
-
1,733
-
-
1,733
Deposits
90,432
141,692
10,667
-
242,791
Interbank and money market items
11,351
16,907
1,448
-
29,706
2,326
-
-
-
2,326
Derivatives liabilities
-
434
-
-
434
Debt issued and borrowings
1
105,469
19,492
7,130
132,092
-
1,733
-
-
1,733
Aval to bill
3
179
56
-
238
Guarantees of loans
-
2
-
-
2
Liability under unmatured import bills
2
118
-
-
120
76
576
20
-
672
6,140
2,751
185
1,947
11,023
Investments in subsidiary and associated companies (1)
Loans to customers
Receivable from purchase and sale securities and derivatives Financial liabilities
Liability payable on demand
Payable from purchase and sale securities and derivatives Commitments
Letter of credits Other commitments
(1) The outstanding balances of loans to customers at call included loans for which revenue recognition has been discontinued.
127
208
Annual Report 2011 Thanachart Bank Public Company Limited
49.4
Fair value Fair value represents the amount for which an asset could be exchanged or a liability settled between knowledgeable, willing parties in an arm’s length transaction. The Bank and its subsidiaries have estimated the fair value of financial instruments as follows: a)
Financial assets
The method used for determining the fair value depends upon the characteristics of the financial instruments. The fair values of most financial assets are presented at the amount stated in the statement of financial position, including cash, interbank and money market items, derivatives assets, receivable from purchase and sale securities and derivatives, receivables from clearing house and loans. These financial assets have their fair value approximate to their respective carrying value since the values of these financial instruments are predominantly subject to market interest rates. Financial instruments with standard terms and conditions which are traded on an active and liquid market, such as investments, have their fair values determined by the quoted market price. b)
Financial liabilities
The fair values of financial liabilities, including deposits, interbank and money market items, liabilities payable on demand, derivatives liabilities, debt issued and borrowings, payable from purchase and sale securities and derivatives, and payable to clearing house are considered to approximate their respective carrying values for the same reasons as described above.
128
Annual Report 2011 Thanachart Bank Public Company Limited
209
As at 31 December 2011 and 2010, the book value and fair value of financial instruments of the Bank and its subsidiaries are as follow. (Unit: Million Baht) Consolidated financial statements 2011 Book value
2010 Fair value
Book value
Fair value
Financial assets Cash
16,006
16,006
15,298
15,298
Interbank and money market items
63,201
63,201
85,060
85,060
1,536
1,536
3,117
3,117
148,345
149,325
140,022
140,944
1,423
1,423
2,177
2,177
609,903
609,903
581,526
581,526
858
858
2,870
2,870
25
25
391
391
436,040
436,040
532,656
532,656
60,151
60,151
40,545
40,545
Liabilities payable on demand
2,131
2,131
3,127
3,127
Derivatives liabilities
2,886
2,886
941
941
254,297
254,297
174,949
174,949
851
851
4,054
4,054
306
306
98
98
Derivatives assets Investments Investments in associated companies Loans to customers Receivables from purchase and sale securities and derivatives Other assets - receivable from clearing house Financial liabilities Deposits Interbank and money market items
Debt issued and borrowings Payable from purchase and sale securities and derivatives Other liabilities - payable from clearing house
129
210
Annual Report 2011 Thanachart Bank Public Company Limited
(Unit: Million Baht) Separate financial statements 2011 Book value
2010 Fair value
Book value
Fair value
Financial assets Cash
16,004
16,004
3,733
3,733
Interbank and money market items
62,963
62,963
28,428
28,428
1,532
1,532
928
928
114,541
115,030
49,759
50,218
40,842
40,842
73,121
73,121
604,770
604,770
319,352
319,352
65
65
1,733
1,733
471,618
471,618
242,791
242,791
Derivatives assets Investments Investments in subsidiary and associated companies Loans to customers Receivables from purchase and sale securities and derivatives Financial liabilities Deposits Interbank and money market items
59,283
59,283
29,706
29,706
Liabilities payable on demand
2,131
2,131
2,326
2,326
Derivatives liabilities
2,877
2,877
434
434
257,503
257,503
132,092
132,092
268
268
1,733
1,733
Debt issued and borrowings Payable from purchase and sale securities and derivatives
49.5 Financial derivatives The Bank and its subsidiaries engage in financial derivatives activities as required in the normal course of their business to manage risk and to meet their clients’ needs. These financial derivatives include foreign exchange contracts, cross currency and interest rate swap contracts, interest rate swap contracts, and gold futures contracts. The Bank and its subsidiaries have set a policy and limit to mitigate related risk, and require risk reporting for the various types of risk, as a control over financial derivative activities. The Bank and its subsidiaries manage the credit risk associated with financial derivatives on the basis of the credit limits granted to customers in general. The same credit approval process that is used when granting loans to a customer is adopted for financial derivative customers, and so the Bank and its subsidiaries are able to maintain risk at acceptable levels.
130
Annual Report 2011 Thanachart Bank Public Company Limited
211
As at 31 December 2011 and 2010, the Bank and its subsidiaries have financial derivatives for trading and hedging (banking book) as classified by their maturities as follows: (Unit: Million Baht) Consolidated financial statements 2011
2010
Less than
Over
1 year
1 year
Less than
Over
Total
1 year
1 year
Total
Foreign exchange contracts - Bought
34,381
-
34,381
24,367
-
24,367
- Sold
67,807
-
67,807
33,344
-
33,344
824
523
1,347
6,393
481
6,874
9,598
7,245
16,843
14,574
13,089
27,663
2,692
3,954
6,646
500
15,480
15,980
- Paid floating interest rate
325
2,954
3,279
-
3,359
3,359
- Received fixed interest rate
325
2,954
3,279
-
3,359
3,359
2,692
3,954
6,646
500
15,480
15,980
641
-
641
-
-
-
Cross currency and interest rate swap contracts - Bought - Sold Interest rate swap contracts - Paid fixed interest rate
- Received floating interest rate Gold future contracts - Sold
(Unit: Million Baht) Separate financial statements 2011
2010
Less than
Over
1 year
1 year
Less than
Over
Total
1 year
1 year
Total
Foreign exchange contracts - Bought
33,745
-
33,745
13,154
-
13,154
- Sold
68,444
-
68,444
12,271
-
12,271
824
523
1,347
4,476
-
4,476
9,598
7,245
16,843
9,262
4,217
13,479
2,692
3,954
6,646
-
12,302
12,302
- Paid floating interest rate
25
2,954
2,979
-
230
230
- Received fixed interest rate
25
2,954
2,979
-
230
230
2,692
3,954
6,646
-
12,302
12,302
Cross currency and interest rate swap contracts - Bought - Sold Interest rate swap contracts - Paid fixed interest rate
- Received floating interest rate
131
212
Annual Report 2011 Thanachart Bank Public Company Limited
50.
Reclassification The Bank and its subsidiaries have reclassified certain amounts in the financial statements as at 31 December 2010 and for year then ended to conform to the current year’s classifications, in accordance with the revised format stipulated by the BOT, with no effect to previously reported net income or equity. (Unit: Million Baht) 31 December 2010
Net investment
Consolidated
Separate
financial statements
financial statements
As
As previously
As
As previously
reclassified
reported
reclassified
reported
140,022
139,933
49,759
49,670
-
391
-
-
3,117
-
928
-
Financial derivatives assets
-
3,117
-
928
Prepaid corporate income tax
7
-
-
-
533
-
-
-
5,129
4,820
2,194
2,194
-
99
-
-
Derivatives liabilities
941
-
435
-
Provisions for liabilities
900
770
113
24
Financial derivatives liabilities
-
941
-
435
Accrued interest payable
-
1,852
-
1,084
Corporate income tax payable
-
2,327
-
999
Accrued expenses
-
3,271
-
1,421
Unearned premium reserve
-
1,882
-
-
Life insurance premium reserve
-
26,348
Insurance contract liabilities
29,774
-
-
-
Other liabilities
13,792
7,370
6,130
2,626
Receivables from clearing house Derivatives assets
Reinsurance assets Other assets - net Payable to clearing house
132
Annual Report 2011 Thanachart Bank Public Company Limited
213
(Unit: Million Baht) For the year ended 31 December 2010
Interest income
Consolidated
Separate
financial statements
financial statements
As
As previously
As
As previously
reclassified
reported
reclassified
reported
34,781
-
21,397
-
-
34,974
-
21,973
11,566
9,651
7,375
6,334
-
1,915
-
1,034
3,369
3,592
2,030
2,030
Fee and service expenses
519
237
45
45
Gains on trading and foreign exchange transactions
570
-
144
-
Gains on investments
314
519
148
160
-
376
3,164
-
1,723
-
-
2,680
-
1,124
-
116
-
48
Premises and equipment expenses
3,148
3,390
1,532
1,606
Other expenses
4,554
4,653
3,143
3,101
Impairment loss of loans and debt securities
2,149
-
1,280
-
Bad debts and doubtful accounts
-
2,072
-
1,157
Loss on debt restructuring
-
77
-
123
Interest and dividend income Interest expenses Contribution fee to the Deposit Protection Agency Fee and service income
Gains on foreign exchange and financial derivatives Other operating income Non-interest income
132
Gains on disposal of property foreclosed and other assets
51.
Events after the reporting period On 23 February 2012, the Board of Directors of the Bank passed a resolution to propose the payment of a dividend of Baht 0.35 per share to the ordinary shareholders in respect of the operating results for the year 2011, or a total of Baht 1,929.7 million, to the Annual General Meeting of Shareholders.
52.
Approval of financial statements These financial statements were authorised for issue by the Bank’s Board of Directors on 23 February 2012.
133
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Annual Report 2011 Thanachart Bank Public Company Limited
REMUNERATION FOR THE AUDITORS
In 2011, TBANK paid Ernst & Young Office Limited for the audit services and other services as details of the
On annual basis, the Audit Committee evaluates
auditor’s fee provided below:
the qualification and performance of the auditors and
1. Audit Fees
recommends to TBANK’s Board of Directors for an
appointment and fees of the auditors, in order to further
obtain an approval from the shareholders meeting.
1.1 Audit fees of THB 9,820,000 was paid for
The proposed candidates shall be the auditors approved
auditing the financial statements of the previous year,
by the BOT, according to the BOT’s letter No. ForKorKor.
signed by Ms. Phuphun Charoensuk, Certified Public
(02) 237/2011 dated February 28, 2011 Lists of
Accountant.
Auditors Approved for the accounting year 2011. The three
auditors as follow were in the lists:
1. Ms. Phuphun Charoensuk
systems, as required by the BOT.
Certified Public Accountant No. 4950: and/or
2. Non–Audit Fees
2. Ms. Rungnapha Lertsuwankul
Certified Public Accountant No. 3516: and/or
3. Mr. Narong
1.2 The fees of THB 780,000 for conducting
special audit and auditing electronic funds transfer
None
Pantawongs
Apart from the fees mentioned in 1 and 2 above
Certified Public Accountant No. 3315
there was no other fee for the past year that TBANK paid
of Ernst & Young Office Limited, the current auditor
to the auditors of the Bank, the audit firm the Certified
team of TBANK.
Public Accountant auditors affiliated with, persons or
businesses related to Certified Public Accountant or related
The Relationship of the Auditors and TBANK The proposed auditors have no relationship in any form with the Bank.
The Auditors of Subsidiaries and Associated Companies in Thanachart Group
to the audit firm the Certified Public Accountant auditors affiliated with.
RELATED PARTY TRANSACTIONS The details are presents in the Note to consolidated financial statements under item 43; Related party transactions.
TBANK, as a company in the group of TCAP, proposed Ernst & Young Office Limited which was an auditor of Thanachart Group, to be its auditor.
Annual Report 2011 Thanachart Bank Public Company Limited
215
CORPORATE GOVERNANCE Report on Corporate Governance Compliance
Corporate Governance Policy, Business Ethics and Codes of Conduct for Directors, Executives, and Staff TBANK’s Board of Directors has put in place written policy guidelines on corporate governance since 2003. The Board also conducts an annual review of corporate governance policies and the reporting process on business compliance with corporate governance principles of TBANK, at least once per annum. The business ethics as well as codes of conduct for directors, executives, and staff have been improved in order to establish a framework for all personnel of the Bank. TBANK has established a corporate governance policy as well as business ethics and codes of conduct for directors, executives, and staff. The policy can be easily accessed via the Bank’s website “www.thanachartbank.co.th” and Thanachart Group’s intranet system which is intended to be a channel for communicating with staff of the Group at every level, shareholders, as well as stakeholders, so that they can observe a firm standpoint and principle in good corporate governance established and practiced by the Board of Directors. In 2011, the Bank evaluated all levels of Thanachart group’s staff in order to assess and evaluate comprehension level of practicing accordingly to good corporate governance twice by the Compliance Unit. The result showed that 90% of staff was at excellent level. Moreover, Thanachart Group has continuously supported good corporate governance and recognition of corporate social responsibility awareness (CG & CSR Project) among staff in the group. This is intended to stimulate staff to acknowledge working principles of various business units in accordance with good corporate governance which begins with designing training courses that focus particularly on encouraging staff to work on the basis of morality, ethics, and business codes of conduct, for example, pure-hearted businessman program, inner power program and morality strengthening program. In 2011, there were 14,115 staffs at all levels across the country attending training courses.
TBANK’s business conducts according to good corporate governance principles in 2011 include; 1. Shareholders’ Rights and Equitable Treatment
1.1 Shareholders’ Basic Rights TBANK has a policy on shareholders’ right protection and encourages them to honor their rights. The policy includes legal basic rights, such as the bank’s profit sharing, share transactions or transfers and participation in shareholder’s meeting in order to honor their voting rights equitably and independently.
1.2 Shareholder’s Meeting In 2011, TBANK held the Annual General Meeting of Shareholders on Thursday April 7, 2011. The meeting was conducted according to related laws, regulations and corporate governance guidelines as follows:
Prior to the Shareholders’ Meeting • The Bank published the Notice of Shareholders’ meeting as well as related documents in both Thai and English, including meeting agendas and complete details of each agenda which were sufficient for shareholders’ decision making before the meeting. The aforementioned information was available via various channels as the followings;
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Annual Report 2011 Thanachart Bank Public Company Limited
Website
The information was published
(www.thanachartbank.co.th) on the website 14 days prior
The day of Annual General Meeting of Shareholders of 2011
to the meeting and was
comprised the Notice of
• TBANK arranged various facilities, such as the
Shareholders’ Meeting and
meeting venue, reception staff as well as printed ballot
related information including;
papers for each meeting agenda item, for shareholders
date, time and meeting
during the registration. In addition, shareholders could also
venue, meeting rules, vote
register in advance up to two hours prior to the meeting
casting procedures, as well
time.
as proxy statements. This
information replicated the
• TBANK established shareholder ’s meeting
documents mailed to each
guidelines to ensure that shareholders’ rights would not be
shareholder.
compromised. At any point of the meeting, shareholders
could register and enter the meeting to exercise their
Delivered by mail
The meeting notice, meeting
voting rights on any votes that has not been cast. TBANK
documents and annual report
has never adjusted or added the agendas or distributed
were
all
additional documents which contain material information
shareholders at least 14 days
during the meeting without prior notice. During the course
prior to the meeting.
of the meeting, all the shareholders were provided
delivered
to
equitable rights to express their opinions and ask
Newspaper advertisement
The meeting notice was
questions.
advertised in both Thai and
English daily newspapers for
• There were 23 shareholders in person, 43
three consecutive days, six
individual shareholders by proxy, and two juristic
days prior to the meeting day.
shareholders by proxy totaling 68 shareholders attended
• TBANK also provided an opportunity to the Bank’s
the meeting.
shareholder to raise issues for consideration as additional
• 10 of 12 Directors including the Chairman, the
items of the meeting agenda. They could nominate
Chairman of the Audit Committee and the Chairman of
candidates for director as well as any other business-
Nomination and Remuneration Committee and the Chief
related issues prior to the meeting day for one month,
Executive Officer and President attended the meeting.
from January 14, 2011 until February 14, 2011. This had
been done in Thai and English in order to accommodate
• The chairman of the meeting explicitly informed
both Thai and foreign shareholders. In addition, rules,
the shareholders on meeting rules, vote casting, and vote
procedures, and channels for raising such issues were
counting procedures.
available on the Bank’s website and the results would be informed at the shareholders’ meeting.
• In casting votes, ballot papers were required for
every agenda item. Also, during the agenda of appointing
• The proxy statements were delivered with the
directors, TBANK opened voting for each director one by
meeting notice and also published on the Bank’s website
one. The ballot papers were collected from shareholders
should shareholders need to request a proxy to attend the
for tabulating votes.
meeting on their behalf. • TBANK proposed the Chief Executive Officer and President and one independent director for shareholders to assign a proxy on their behalf. The curriculum vitae as well as information about interests of the independent director in TBANK were included in the meeting notice to provide the shareholders alternatives for appointment of proxy.
• Video presentations were used in the meeting in order to assure that all information was clearly presented.
Post Annual General Meeting of Shareholders • TBANK took minutes of the meeting whereby all important information was entirely recorded in detail. The drafted minutes of the 2011 Annual General Meeting of Shareholders was submitted to the SEC within 14 days after the meeting day.
Annual Report 2011 Thanachart Bank Public Company Limited
217
1.3 Controlling Measures on the Use of Internal Information
• In case of a conflict-of-interest, connected or related transaction between any related parties, the matter will be reported to the Compliance Department in order to
TBANK has specified the controlling measures
seek their opinion on legal issues and practice guidelines
of the use of internal information which can be
before being forwarded to the authorized party for
summarized as follows:
approval.
• An appropriate oversight on the internal data
• As stated in the notification of various
maintenance system is required for all business units
committees, any transactions from which the directors,
within the Bank.
executives or related parties gain benefit are required to
specify their interest of such transaction. In addition,
• In compliance with the SEC regulations,
related directors or executives are prohibited from
executives in manager position, the next four positions
attending the meeting during the time when such an
below manager position, and the highest ranking position
agenda item is being taken up.
in the Accounting Department are required to report their
holdings of the Bank’s shares on a quarterly basis.
• The execution of transactions from which
Moreover, any trading transactions of aforementioned
TBANK or directors or senior management of the Bank gain
shares have to be reported to the SEC within 3 business
benefit has to obtain unanimous approval from the Board
days once the transaction has been completed, and a copy
of Directors in which neither director nor senior
of the transactions have to be submitted to the Office of
management who is beneficiary can participate in the
the Chairman of Executive Committee and the CEO.
approval process.
• Directors, executives, staff, employees and
• The Board of Directors has to be fully
advisors who have access to the confidential information
informed of transactions that may involve in a conflict of
are prohibited from seeking any benefit from such
interest or related party issues and such matters are
information for their own or other’s interest. This is
always subject to careful consideration and in compliance
indicated in Thanachart Group’s ethics.
with rules and regulations of the SEC and the BOT.
• According to the Bank’s notification on
• Information disclosure on transactions which
securities trading supervision and abusive internal data
may have conflicts of interest or connected transactions or
control, Directors and executives are prohibited from
related transactions must comply with rules and
engaging in any trading of the Bank’s shares 15 days
regulations established by the authorities.
before the end of each quarter until two days after the
disclosure of the financial statements.
• All connected transactions are subject to a
review in accordance with the annual audit plan and will be
• The use of internal data for the individual
reported to the Audit Committee.
interest is considered as a policy misconduct and will be
subject to the penalties according to the judgment of the Disciplinary Committee.
1.4 Controlling Measures on Conflict of Interests
• Information about business connections or business of which the benefit is related to directors and senior management has to be disclosed quarterly for controlling purposes and included in the list of connected transactions which will be disclosed in notes to the financial statements.
TBANK has established documented policies and approval procedures on connected transactions that are fully disclosed to all related parties. The Bank has also
2. Role of Stakeholders
established controlling policies and measures aiming at
Thanachart Group has established written practice
preventing executives and related parties from making use
guidelines on stakeholders; including customers, trading
of internal information for their personal benefit. The
partners/lenders, competitors, public sector, as well as
policies are including;
society and environment, in the Business Code of Conduct
of directors, executives, and staff. All information in the guideline is disseminated through internal communication
218
Annual Report 2011 Thanachart Bank Public Company Limited
channels, so that directors, executives, and staff at all
competencies as well as necessary working skills for each
levels can strictly adhere to. The information has also been
position at every level in order to increase employees’
publicized via the Bank’s website to enhance stakeholders’
capability to respond to Thanachart Group’s visions,
confidence on their rights. The details on the treatment of
missions and objectives. The Group also strengthened
various groups of stakeholders are as follows:
employees’ recognition of relevant rules and regulations as
Shareholders
well as the Business Codes of Conduct. In order to facilitate successful integration and strengthen the
expertise of all staff members who are significant
Thanachart Group aims at having a solid
resources to support business growth and business
performance and achieving a sustainable growth as well as
continuity, the Group has established human resources
being competitive to ensure an appropriate regular return
development plans which are in alignment with its strategic
to shareholders. In conducting business, the Bank has
direction. In 2011, advised by its strategic partner,
been aware of risks and ensures that there is an efficient
Scotiabank, which has expertise in international finance,
internal control system as well as information disclosure in
the Group organized a number of effective training
an accurate, complete, timely and transparent manner.
courses, and provided external training, seminars, and
Moreover, the Bank has made arrangements to provide
staff training visits at reputable domestic and foreign
shareholders with convenience in exercising any of the
institutes.
rights to which they are entitled.
Apart from that, the Chief Executive Officer and
Employees
President have initiated the “Go Together” project, which is
a special project aimed at strengthening the unity of the
Thanachart Group recognizes equal and fair
organization under the Thanachart vision “Synergy”. In
treatments of its employees, it ensures that employees are
2011, 18 “Go Together” conferences were organized in
fairly compensated. As a guideline in determining
every region of the country. Each conference aimed at
employees’ salaries, the Group conducts surveys and takes
communicating policies and the direction of strategies from
into consideration inflation rates, the Consumer Price Index
the central Thanachart Group, in order to ensure that all
and the Key Performance Indicators (KPIs). In 2011, the
staff share the same understanding of the Group’s
Group introduced a performance evaluation form, which is
strategic direction. The Chief Executive Officer and
consistent with Thanachart Group’s key business strategies
President as well as high-level executives of TBANK paid
or the CEO’s Six-point agenda, to assess employees’
visits to all the hubs nationwide to meet with managers
performance for the purpose of fair compensation and
and staff of the network branches in order to exchange
promotion. Moreover, the Group appropriately improved
views on business operations with an emphasis on
fringe benefits for employees to relieve their burdens
adjusting competitive strategies in each region. This is to
based on the economic factors and integration preparation
ensure that the Group truly operates its business to meet
such as medical expense, annual leave, employer and
all the unique financial needs of its customers in each
employee contribution rates of provident fund, saving
region. This project not only stimulates enthusiasm of all
cooperatives for Thanachart Group’s staff, relief funds for
staff and creates a true understanding of the Group’s
unprecedented disasters such as fire and flood, fire drills,
business direction among them, which has become a
upkeep of workplace environment, as well as security for
driving force for the success of Thanachart Group, but
life and belongings. The Group also strengthens working
enhances unity and cooperation among staff across the
relationships among employees by publishing and
organization as well. The project will be continued in 2012
circulating the monthly journal entitled “San Saiyai” that
to capture the ultimate benefits of synergy and
encourages better connections between employees within
collaboration of TBANK, SCIB and the Bank of Nova Scotia.
the Group. In addition, the Group also circulates news and
information through the intranet system and internal
Customers
television Thanachart Channel” such as Thanachart Group’s
products and services, related rules and regulations, as well as activities that Thanachart Group held in 2011.
Thanachart Group is determined to develop financial products and services that could accommodate all
financial needs of customers. Fees are fairly charged and
Thanachart Group has been continually active in
the Group aims to provide customers with complete and
human resource development. In 2011, Thanachart Group
sufficient information of products and services before
focused its efforts on enhancing employees’ knowledge and
customers’ decisions are reached.
Annual Report 2011 Thanachart Bank Public Company Limited
219
Participation Mechanism of Stakeholders Thanachart Group has created a system for
prepared to consistently participate in activities that support and help communities and societies in a long-term manner with mutual understanding and sincerity.
receiving complaints and suggestions from customers,
Public Sector
external parties and stakeholders more effectively for the
purpose of organizational development. This has been
TBANK conducts its business in adherence to laws,
undertaken through various channels such as the Bank’s
rules and regulations of authorities as well as provides
website “www.thanachartbank.co.th”, marketing staff and
effective cooperation according to government policies.
Thanachart Contact Center 1770. The Bank has also
Moreover, the Bank will not become involved or do
explicitly established a business practice for the complaints
business with any illegal organizations or individuals.
reception system in which the responsible unit will follow up customers’ complaints and provide feedback to every customer or party that lodges the complaint, as well as
3. Information Disclosure and Transparency
applying customer’s needs to improve Thanachart Group’s
TBANK’s Board of Directors is responsible for the
services and increasing consumer or stakeholders’
financial statements of the Bank. In this regard, it has
satisfaction.
assigned the Audit Committee to ensure that the financial
reports and internal control system of the Bank are
Trading Partners and Lenders
accurate and valid in accordance with generally accepted
accounting principles. TBANK has also included the report
Thanachart Group has established explicit policies
of the Audit Committee in the annual report.
and practices on purchasing and outsourcing for the
purpose of fairness, transparency and verifiability of all
TBANK ensures sufficient disclosure of important
related parties as well as the rules for approval authority of
information in notes to the Bank’s financial statements.
package purchasing and rental.
The Bank also discloses the financial statements and the
notes to the financial statements on a quarterly and annual
The Bank has provided transparent and verifiable
basis on the Bank’s website. Moreover, the Investor
information to lenders and has committed to the integrity
Relations Unit is responsible for providing an accurate
of fulfilling the obligations made with the lenders under the
information and news on a timely manner to Thai and
conditions that are mutually agreed upon in addition to
foreign shareholders, investors, analysts, and credit rating
legal rules and regulations in order to build confidence for
agencies in order to strengthen the image and credibility of
long-term cooperation.
the Bank as well as provide services to shareholders
effectively. The Investor Relations Unit can be contacted
Competitors
via telephone at +66 (0) 2613 6107 and +66 (0) 2217 8199
Ext. 3027 or at E-mail address: ir.nf@thanachart.co.th.
The Bank operates under rules and competition
TBANK has established policies on information disclosure in
with other parties and organizations as well as under fairly
which the information must be accurate, complete,
established policies and practices. The Bank also does not
equitable, transparent and timely as well as in compliance
accuse, defame, or aggravate its competitors as well as
with related laws and regulations. The information is
seek for confidential information of its competitors
disclosed via the channels as follows:
dishonestly or inappropriately.
Society and Environment
1. Securities and Exchange Commission 2. Department of Business Development, Ministry of Commerce
3. TBANK’s www.thanachartbank.co.th
Thanachart Group holds a responsible attitude
• Annual registration statement form 56-1
towards society. The senior management of the Group has
• Financial statements and annual report
played an important role in promoting the principles of
• Shareholders’ meeting resolutions
social responsibility. These principles fall under the
4. Press, media and other channels
umbrella of the Group’s corporate social responsibility
5. Analyst meetings
(CSR) that places emphasis on “sustainable growth with
6. Company visits / one-on-one meetings
moral righteousness”. Supported by its staff, business
7. Road shows
alliances, local communities and society, the Group is
8. Notifications by mail
220
Annual Report 2011 Thanachart Bank Public Company Limited
In 2011, the Bank’s senior management and
(5) Neither having a relationship with the Bank in
Investor Relations provided information to related parties
the form of its professional service provider such as auditor
on various occasions, including one-on-one meetings,
and financial advisor nor having a business association
conference calls, croup analyst meetings and road shows.
with the Bank under significant cash amount or value as
4. Responsibilities of the Board of Directors
Constituent of the Board of Directors TBANK’s Board of Directors is composed of well qualified persons who have expertise, skills and experience
stipulated (at present or during the past two years before the Bank’s election). (6) Not being a representative of any member of the Bank’s Board of Directors or any major shareholder, nor being a shareholder related to the major shareholders. (7) Not being simultaneously an audit committee member of any listed company of the Group, subsidiary company, or associated company.
in financial, accounting, management and other
(8) Not having any prohibited characteristic that
professional areas which provide TBANK with great
undermines independence in carrying out his or her duties
benefits.
as director.
TBANK’s Board of Directors structure is in
Every Independent Director is free to express
compliance with the notification of the Capital Market
opinion without interest in benefit in terms of assets or
Supervisory Committee No. ThorChor 28/2008 re:
working position from the pressure of any person or any
Application for Offer and Permission for Sale of Newly
group of people as well as from any circumstances that
Issued Securities, dated December 15, 2008 and the BOT’s
could affect their opinion expression.
notification re: Governance of Financial Institutions, dated
July 9, 2009.
Executive Directors are defined as
1) Directors who are involved in the management
Independent Director
of the Bank in accordance with the Notification of the
TBANK specifies a more stringent definition and
Securities and Exchange Commission no. ThorChor 28/
qualification of the independent directors as follows:
2008 Re: Application for Offer and Permission for Sale of
(1) Holding shares not more than 0.5 percent of
Newly Issued Securities, dated December 15, 2008,
paid-up capital of the Bank, member company of the
including any additional amendments or announced
Group, subsidiary company, associated company or related
substitution which means a director who assume the
company, including shares held by persons related to the
directorship in the executive position, a director who act as
independent director.
the executive; and as a director with full signatory
(2) Not taking part in the management or being an
authority except the case when it can be demonstrated
employee, staff or advisor, who receives salary or a
that he or she is the authorized signatory according to the
controlling person of the Bank, a regular salary from the
list that the Board of Director has already approved and is
Bank, member company of the Group, subsidiary
the joint authorized signatory with other committees.
company, associated company, related company or a
person who has authority controlling a juristic person that
2) In accordance with the BOT’s Notification no.
may have a conflict of interest (at present and during the
SorNorSor 13/2009 Re: Governance of Financial
past two years).
Institutions, Executive Director is defined as:
(3) Not having a business relationship with the
(1) Director that discharges responsibility in
Bank, member company of the Group, subsidiary
the position of manager, deputy manager, assistant
company, affiliated company, or juristic person that may
manager or the equivalent.
have a conflict of interest that obstructs independence of opinion. (4) Not being a person related by blood or registration under laws such as father, mother, sibling and
(2) Director that discharges responsibility in
the operations or is involved in business management as executive, including parties in an executive committee.
(3) Director with full signatory authority,
child, including spouse of children, executives, major
except for the case when it can be demonstrated that he or
shareholders, controlling persons, or persons to be
she is the authorized signatory according to the list that
nominated as executive or controlling person of the Bank,
the Board of Director has already approved and is the joint
member company of the Group, subsidiary company,
authorized signatory with other committees.
associated company, or related company.
Annual Report 2011 Thanachart Bank Public Company Limited
221
At present, the number of Independent Directors and Non-Executive Directors of TBANK accounts for 50 percent
of the total number of Board of Directors. The constituent of the Bank’s Board of Directors as of December 31, 2011
is as follows:
Executive
Non-Executive
Independent
Director
Director
Director
Chairman
-
✓
-
Vice Chairman
✓
-
-
Vice Chairperson
-
✓
-
Director
-
-
✓
Director
-
-
✓
Director
-
-
✓
7. Assoc. Prof. Dr. Somjai Phagaphasvivathana Director
-
-
✓
Director
✓
-
-
Director
✓
-
-
Director
✓
-
-
Director
✓
-
-
Director
-
✓
-
Name Position 1. Mr. Banterng Tantivit
2. Mr. Suphadej Poonpipat 3. Mrs. Michele Chiu Kwok 4. Mr. Kiettisak Meecharoen 5. Mr. Narong Chivangkur 6. Mr. Sataporn Jinachitra 8. Ms. Suvarnapha Suvarnaprathip 9. Mr. Somjate Moosirilert 10. Mr. Brendan George John King 11. Mr. Kobsak Duangdee 12. Mr. Alberto Jaramillo
Note: TBANK’s directors who are authorized signatories include Mr. Suphadej Poonpipat, Ms. Suvarnapha Suvarnaprathip, Mr. Brendan George John King,
222
Mr. Kobsak Duangdee and Mr. Somjate Moosirilert. Any two out of the five authorized signatories can jointly sign with TBANK’s seal affixed.
Annual Report 2011 Thanachart Bank Public Company Limited
Tenure of Directorship
9. The Board ensures that both internal and external auditors conduct their duties effectively.
The tenure of directorship of the Board of Directors
10. The Board approves the quarterly and annual
has been covered clearly by TBANK’s Articles of
financial statements and ensures that the financial
Association. At each annual general shareholder’s meeting
statements are prepared in accordance with generally
of TBANK, one third (or nearest number but not exceeding
accepted accounting principles.
one third) of the members of the Board of Directors must
11. The Board ensures that information is
retire. After the date when TBANK’s Articles of Association
disseminated to Bank’s stakeholders and to the general
has become effective, the retirement of directors in year
public.
one and year two is decided by a draw. In subsequent
years, the director who holds the longest time in office will
Segregation of Duties
be retired. Should there be a case when the number of
directors holding the longest office tenure is greater than
The Chairman of the Board of Directors shall not be
the number of directors that have to be retired, a draw will
the same person as the Chief Executive Officer and
be applied. Directors who retire due to this reason can be
President so as to segregate the duties of developing
reelected to re-assume their directorship.
policies from day-to-day business management.
Roles and Responsibilities of TBANK’s Board of Directors 1. The Board is responsible for the overall business
Assumption of Directorship in Other Companies by Directors and Senior Executives
conducts of TBANK to ensure the compliance with
In compliance with the BOT’s Notification on
regulatory requirements, the Bank’s objectives and Articles
Governance of Financial Institutions, directors and senior
of Association, as well as the resolutions adopted at
executives of the Bank can assume the position of
the shareholders’ meetings.
Chairman, Executive Director or director with full signatory
2. The Board appoints the Executive Committee or sub-committees to perform duties as assigned by the
authority in no more than three business groups.
Sub-committees
Board. 3. The Board may assign or authorize one or more directors or other persons to take any action on behalf of the Board. 4. The Board makes approval on visions, missions, and values of the Bank as well as business ethics. 5. The Board considers strategies proposed by the
The Board of Directors of TBANK has appointed the sub-committees to be responsible for performing necessary duties. The roles and responsibilities of each sub-committee are as follows:
management and approves on important issues related to
Executive Committee
the Bank’s direction and policies. The Board also approve
on business plans, budgets, and operational goals proposed by the management. 6. The Board monitors the Bank’s performance and progress achieved in relation to the established objectives
TBANK’s Board of Directors has appointed the Executive Committee which consists of five members. As of December 31, 2011, the names of the member of the Executive Committee were as follows:
as well as compliance with related laws, regulations, and
1. Mr. Suphadej
policies.
7. The Board authorizes the Chief Executive Officer
Poonpipat
Chairman of the Executive Committee
2. Ms. Suvarnapha Suvarnaprathip
and President to conduct business management of TBANK
within the framework of equity expenditure budgets and
3. Mr. Brendan
operating expenditure budgets approved for various
projects. Moreover, the Bank’s Board of Directors shall
4. Mr. Somjate
approve any loan applications which are beyond the
authority on credit approval.
5. Mr. Kobsak
Vice Chairperson of the Executive Committee George John King
Vice Chairman of the Executive Committee Moosirilert
Member of the Executive Committee Duangdee
8. The Board ensures that the Bank has the
Member of the Executive Committee
effective internal control system and appropriate risk
Representative of the Office of the Chairman of
management system.
Executive Committee and the CEO
Secretary of the Executive Committee
Annual Report 2011 Thanachart Bank Public Company Limited
223
Roles and Responsibilities of the Executive Committee 1. Authorized to approve lines of credit for the
experience in accounting or finance. As of December 31, 2011, the names of the members of the Audit Committee were as follows: 1. Mr. Kiettisak
Meecharoen
benefit of TBANK as well as approve debt restructuring in
Chairman of the Audit Committee
compliance with the Financial Institution Business Act as
(Independent Director)
well as the rules and regulations of the BOT.
2. Mr. Sataporn
Jinachitra
2. Authorized to approve investments aimed at
Member of Audit Committee
generating earnings for TBANK in compliance with the
(Independent Director)
Financial Institutions Businesses Act as well as the rules
3. Assoc. Prof. Dr. Somjai Phagaphasvivathana
and regulations of the BOT.
Member of Audit Committee
3. To manage business operations in line with
(Independent Director)
TBANK’s business objectives as well as managing liquidity,
Mrs. Vijitra Thumpothong
risks and the interest rate structures.
Secretary of the Audit Committee
4. Authorized to make purchases, take transfers, and dispose of TBANK’s assets in an amount up to 5 percent of TBANK’s share capital. 5. To consider and screen matters which are
Roles and Responsibilities of the Audit Committee
beyond the authority of the Executive Committee and to
1. To review the process employed in the
present them to those having higher authority for
preparation and information disclosure of TBANK’s financial
consideration.
reports, ensuring that the information is accurate,
6. Authorized to restructure and manage the
complete, and reliable. During the reviewing process, the
organization, to establish rules and regulations related
Audit Committee will cooperate with the external auditor
to work process, to appoint and remove employees,
and the executives responsible for preparing both quarterly
to appoint advisors, as well as directing and governing
and annual financial reports.
the conduct of TBANK’s business affairs.
2. To review the efficiency and appropriateness
7. Authorized to approve salaries or other
of the internal control system, internal audits system with
compensation benefits for employees and advisors to
the adequate and efficient corporate governance. In this
support TBANK’s normal business operations.
regard, the Audit Committee will cooperate with the
8. To consider and approve appointments of independent appraisers. 9. To establish expense budgets for appraising
external auditors, internal auditors, and the respective regulators. 3. To review TBANK’s efficient risk management,
the value of the collateral as well as controlling the related
ensuring that it is adequate and in compliance with
expenses.
the Bank’s policies as well as the BOT’s guidelines
10. Authorized to delegate its authority to other staff of TBANK for the purpose of efficiency.
4. To review TBANK’s business conducts, ensuring that they are in compliance with the Bank’s policies
as well as regulatory requirements.
The Executive Committee is authorized to approve
5. To review evidences from internal investigations
lines of credit, investments and obligations in compliance
when there is an observation or inference that there might
with the requirements imposed by the BOT.
be frauds, irregularities or substantial loopholes in the
Audit Committee
Bank’s internal control system. The committee will then make a prompt report to TBANK’s Board of Directors for further consideration.
TBANK’s Board of Directors approved the
6. To review connected transactions as well as
establishment of the Audit Committee to ensure that
transactions which may lead to conflicts of interest,
TBANK’s business management is efficient and adheres to
ensuring that they are reasonable and carried out for the
the principles of good corporate governance, which would
best benefit of the Bank.
help fostering the Bank’s credibility in the eyes of general
7. To
consider
the
audit
reports
and
public and in compliance with the authorities’ policy. The
recommendations presented by the internal auditor,
Audit Committee consists of three independent directors;
the compliance officer, the external auditor, and the
all of which posses knowledge, understanding and
respective regulators, ensuring that the Bank perform necessary actions according to those recommendations.
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Annual Report 2011 Thanachart Bank Public Company Limited
8. To ensure that the business conducts of
15. To annually review the Audit Committee
subsidiaries are in compliance with Thanachart Group’s
charter and ask for the approval from Board of Directors if
policies by giving the Internal Audit Group the following
there is any additional revision.
assignments:
16. To provide a report of Audit Committee which
8.1 To report TBANK’s Audit Committee the
includes necessary information required by the SET, signed
summary of the overall performance of the Internal Audit
off by the Chairman of the Audit Committee, in the Bank’s
Group which is responsible for auditing the Bank’s
annual report.
subsidiaries. 8.2 To report TCAP’s Board of Directors on the
17. To provide comments in the compliance report submitted to the BOT.
summary of the overall performance of the Internal Audit Group which is responsible for auditing the TBANK and
18. To report the performance of self–evaluation to the Board of Directors on an annual basis.
subsidiaries and further presented to the Board of Directors.
19. To perform any other duties assigned by the Board of Directors.
8.3 In undertaking the auditing duties specified in 8.1 and 8.2, in case that there are key issues such as violation of law, fraud, or matters that have a
Nomination and Remuneration Committee
serious impact on financial statements, status or image of
TBANK and its subsidiaries, the Internal Audit Group is required to report in detail. 9. To specify the scope of Audit Committee and any change in composition, including any significant
TBANK’s Board of Directors approved the establishment of the Nomination and Remuneration Committee. As of December 31, 2011, the members of the Nomination and Remuneration Committee were as follows:
change of the process of the audit committee in a written
1. Mr. Narong
form clearly according to the approval from the Board
of Directors. This shall be revealed to the shareholders in
the annual report of the Bank.
Committee (Independent Director) 2. Mr. Sataporn Jinachitra
10. To report to the Board of Directors in order to improve and solve problems in a timely manner in case
Chivangkur
Chairman of the Nomination and Remuneration
Member of the Nomination and Remuneration
Committee (Independent Director)
there are key issues, transactions or actions that have a
3. Mrs. Michele Chiu Kwok
serious impact on the financial statement and the Bank’s
Member of the Nomination and Remuneration
performance as follows:
Committee (Non-Executive Director)
• Conflict interest transactions
Mr. Thaneit
• Fraud or matters that have a serious impact
Secretary of the Nomination and Remuneration
to the internal audit system • Violation of law related to financial institutions or any regulatory requirements If the Board of Directors or the Executive
do not proceed with the corrections on time, the Audit Committee shall reveal such action in the Bank’s annual report and the report to the BOT. 11. To consider the independence of the internal audit department and the compliance department
Khantikaroon
Committee Roles and Responsibilities of the Nomination
and Remuneration Committee 1. To propose policy relating to nomination and remuneration of directors, sub committee’s directors, Chief Executive Officer and President, and executives to the Bank’s Board of Directors.
12. To appoint, evaluate, remove, transfer,
2. To propose criteria relating to nomination and
or dismiss the head of internal audit department and
remuneration of directors and sub committee’s directors,
the head of compliance department.
Chief Executive Officer and President, and executives to
13. To recruit and nominate candidates for the
the Bank’s Board of Directors.
external auditor of TBANK and to consider the auditing
3. To propose performance appraisal criteria of
fees, taking into account the auditor’s credibility, the
Chief Executive Officer and President and executives for
adequacy of its resources, workload of the auditor as well
annual remuneration package consideration.
as experience of the staff. 14. To hold a meeting with the Audit Committee without other management presence at least once a year.
4. To select and examine the candidates with appropriate qualifications for appointment as director, sub committee directors, or Chief Executive Officer and
Annual Report 2011 Thanachart Bank Public Company Limited
225
Roles and Responsibilities of the Risk
President and to propose qualified candidates to the Bank’s Board of Directors or Annual General Meeting of
Management Committee
Shareholders. (Depending on the situation).
5. To consider annual remunerations of director,
1. To propose policy on overall risk management of
dub committee’s directors, Chief Executive Officer and
TBANK to the Board of Directors for their approval. In this
President, and executives which are in alignment of the
regard, monitoring and auditing standards must be
criteria that have been set.
established to ensure that the risk management policy is
6. To review policy and principles of nomination
strictly adhered to.
and remuneration of directors, Chief Executive Officer and
2. To formulate risk management strategies in
President, and executives to be appropriate with job
accordance with the risk management policy and to ensure
descriptions and the market.
that the Bank’s risks are appropriately measured,
monitored, and maintained at an appropriate level.
policy, including the effectiveness of the risk management
The Board of Director of TBANK has established the
system and the adherence to the established policy.
Risk Management Committee
3. To review the adequacy of risk management
Risk Management Committee to ensure that risks are
4. To establish risk management measures which
effectively and appropriately managed and consistently
aims at preventing possible losses from occurring and at
with the Bank’s organizational structure. As of December
finding resolutions.
31, 2011, the members of the Risk Management Committee were as follows: 1. Mr. Suphadej
5. To assess both internal and external factors
that might have material impact on the Bank’s financial
Poonpipat
positions. The assessment results will be taken into account
Chairman of the Risk Management Committee
in the adjustment of TBANK’s overall risk management
2. Mr. Somjate
policy.
Moosirilert
Vice Chairman
6. To determine and instruct business units under
of the Risk Management Committee
the Risk Management Committee for the development of
3. Mr. Brendan
more efficient risk managing, controlling, and monitoring
George John King
Vice Chairman
mechanisms.
of the Risk Management Committee
7. To monitor and control the risk management
4 Mr. Piyaphong Artmangkorn
conduct of committees and/or business units to ensure
Member of the Risk Management Committee
that they adhere to the established policy.
5. Mr. Ajay
Pratap Mundkur
8. To report the committee’s performance to the
Member of the Risk Management Committee
Audit
6. Mr. Anuwat
improvement, ensuring that the improvements are in line
Luengtaweekul
Member of the Risk Management Committee 7. Mr. Enghug
Nontikarn
Committee
regularly
on
areas
that
need
with the established risk management policy and strategies.
Member of the Risk Management Committee
Corporate Governance Committee
8. Mrs. Angelina Dick
Member of the Risk Management Committee 9. Mr. Ricky
Jon Yakabowich
TBANK has realized the importance of having a good corporate governance system in accordance with the
Member of the Risk Management Committee
good corporate governance principles for listed companies
10. Mrs. Kjitphan
and the SET’s guidelines on the disclosure of information
Chunharit
Member of the Risk Management Committee
on corporate governance practices in the annual report.
11. Mr. Sakda
The Bank’s Board of Directors, therefore, plays the role of
Chantrasuriyarat
Member of the Risk Management Committee
the Corporate Governance Committee by determining
12. Mr. Kamtorn
policy on corporate governance in compliance with the
Tantisiriwat
Member and Secretary
SET, the SEC, and the BOT’s guidelines. The committee has
of the Risk Management Committee
assigned duties for two sub-committees as follows:
1. The Executive Committee undertakes the oversight and control of the Bank’s business conducts to ensure compliance with the policy guidelines on corporate governance, approved by Board of Directors.
226
Annual Report 2011 Thanachart Bank Public Company Limited
2. The Audit Committee is responsible for
13. Mr. Lalit Dodampe Gamage Dharmaseri
monitoring, reviewing, and examining the policy
Member of the Asset
compliance to ensure that the Bank has a good corporate
and Liability Management Committee
governance system.
Representative of the Risk Control Dept.
Asset and Liability Management Committee The Executive Committee has established the Asset and Liability Management Committee to manage the
Secretary of the Asset and Liability Management Committee Roles and Responsibilities of the Asset and Liability Management Committee
Bank’s assets and liabilities effectively and to be consistent
1. To formulate the Bank’s liquidity, interest rate,
with the organization structure. As of December 31, 2011,
and exchange rate risk management plans under the policy
the committee was consisted of:
established by the Executive Committee.
1. Mr. Suphadej
Poonpipat
2. To manage TBANK’s liquidity and exchange rate
Chairman of the Asset
risks in accordance with the trends of the money market
and Liability Management Committee
and capital market conditions.
2. Mr. Somjate
Moosirilert
3. To manage the Bank’s interest rate structure
Vice Chairman of the Asset
and determine the rate of interest both floating and fixed
and Liability Management Committee
interest rates in order to prevent any adverse impacts from
3. Ms. Suvarnapha Suvarnaprathip
interest rate volatility.
Member of the Asset and Liability Management Committee 4. Mr. Brendan
George John King
4. To approve investments in bonds and private debt instruments within budget limits. 5. To authorize a person or a group of persons
Member of the Asset
under the authority of the Asset and Liability Management
and Liability Management Committee
Committee.
5. Mr. Enghug
Nontikarn
6. To report on the performance of liquidity, interest
Member of the Asset
rate and exchange rate management to the Executive
and Liability Management Committee
Committee.
6. Mrs. Noossara Roonsamrarn
Member of the Asset
Investment Portfolio Committee
and Liability Management Committee
7. Mr. Piyaphong Artmangkorn
The Executive Committee has established the
Member of the Asset
Investment Portfolio Committee in order to ensure that the
and Liability Management Committee
investment portfolio of the Bank is efficient and consistent
8. Mr. Nophadon Ruengchinda Member of the Asset and Liability Management Committee 9. Mr. Anuwat
to the organizational structure. The committee, as of December 31, 2011, comprised the followings: 1. Mr. Suphadej
Luengtaweekul
Member of the Asset
2. Mr. Somjate
and Liability Management Committee 10. Mr. Ajay
Pratap Mundkur
11. Mr. Kobsak
3. Ms. Suvarnapha Suvarnaprathip Member of the Investment Portfolio Committee 4. Mr. Brendan
Duangdee
Member of the Asset
5. Mr. Piyaphong
Artmangkorn
Member of the Investment Portfolio Committee
Amyongka
Representative of the Risk Control Dept.
Member of the Asset and Liability Management Committee
George John King
Member of the Investment Portfolio Committee
and Liability Management Committee 12. Mr. Pisuthi
Moosirilert
Vice Chairman of the Investment Portfolio Committee
Member of the Asset and Liability Management Committee
Poonpipat
Chairman of the Investment Portfolio Committee
Secretary of the Investment Portfolio Committee
Annual Report 2011 Thanachart Bank Public Company Limited
227
Roles and Responsibilities of the Investment Portfolio Committee
Roles and Responsibilities of the Credit Committee
1. To determine investment policies as well as to
1. To establish a work plan and oversight credit
consider and approve investment plans. 2. To approve investments within the scope of
approval procedures under the policy approved by TBANK’s Executive Committee or Board of Directors.
authority specified by TBANK, which must be complied
2. To establish covenants and conditions of credit
within established position limits and VaR limits and to
lines and approve new credit lines as well as adjust
examine investment proposals that exceed its approval
conditions on credit lines within the delegated authority,
authority before proposing them to the Executive
taking into account the credit risk assessments within the
Committee which has higher approval authority.
scope specified by TBANK’s Executive Committee or Board
3. To review the investment performance and determine guidelines aimed at improving investment performance
of Directors. 3. To establish the authority on credit approval to a person or a group of persons within delegated authority
4. To manage the market risk arising from changes in prices of investment portfolios.
of the Credit Committee. 4. To approve transactions which exceed the scope
5. To establish and review the ratio of provisioning
of authorization of the Debt Restructuring Committee or
or determine the impairment value of the securities
other subsequently appointed committees of which scope
invested.
of responsibilities are similar to the aforementioned
committee.
scope of authorization of the Credit Committee in order to
Credit Committee
5. To screen credit applications which exceed the
The Executive Committee has established the Credit
propose them to TBANK’s Executive Committee or Board of
Committee to enhance the efficiency of TBANK’s credit
Directors for approval. In case of urgency, the Credit
underwriting process, integration process, and compliance
Committee may propose credit applications to the
with the organizational structure of the Bank. As of
aforementioned committee without screening.
December 31, 2011, the members of the Credit Committee included: 1. Mr. Suphadej
Poonpipat
Chairman of the Credit Committee 2. Mr. Somjate
Moosirilert
Member of the Credit Committee 3. Ms. Suvarnapha Suvarnaprathip Vice Chairperson of the Credit Committee 4. Mr. Brendan
George John King
Member of the Credit Committee 5. Mrs. Noossara Roonsamrarn Member of the Credit Committee 6. Mr. Taweesak
Saksirilap
Member of the Credit Committee 7. Mrs. Angelina Dick Member of the Credit Committee 8. Mr. Noel
Singh
Member of the Credit Committee 9. Mrs. Sasima
Taweeskulchai
Member of the Credit Committee 10. Mr. Wuttichai
Suraratchai
Member of the Credit Committee 11. Mr. Pisuthi
Amyongka
Member of the Credit Committee Representative of the Risk Control Dept. Secretary of the Credit Committee
228
6. To report credit approval results to TBANK’s Executive Committee or Board of Directors.
Annual Report 2011 Thanachart Bank Public Company Limited
The Executive Committee has also established
a number of sub-committees to ensure that TBANK’s business conducts have been managed in a proper, efficient, and effective manner.
Executives As of December 31, 2011, there were executives
in the manager’s position and the first four executives subsequent to the manager, according to the SEC guidelines as follows: 1. Mr. Somjate Moosirilert1 Chief Executive Officer and President 2. Mr. Brendan George John King Deputy Chief Executive Officer 3. Mrs. Noossara Roonsamrarn Executive Vice President 4. Mr. Piyaphong Artmangkorn Executive Vice President 5. Mr. Nophadon Ruengchinda Executive Vice President 6. Mr. Anuwat
Luengtaweekul
Executive Vice President
7. Mr. Ajay
Pratap Mundkur
Executive Vice President 8. Mr. Enghug
Nontikarn2
Executive Vice President 9. Mr. Rathian
Notes:
Srimongkol3
Roles and Responsibilities of the Company Secretary 1. To provide the Board of Directors with preliminary advice on laws, rules and regulations as well as
Executive Vice President
the Articles of Association of Thanachart Bank and ensure
10. Mrs. Phenchan Weerawuth4
that they have been complied properly and regularly.
1 Mr.
First Vice President
Moreover, the secretary is entitled to report to the Board of
Directors on any material changes.
Somjate Moosirilertposition’s name has changed to Chief Executive Officer and President since January 6, 2011. 2 Mr. Enghug Nontikarn has been appointed to be Executive Vice President since June 1, 2011. 3 Mr. Rathian Srimongkol was appointed to be Executive Vice President on June 1, 2011 and resigned since January 1, 2012. 4 Mrs. Phenchan Weerawuth has been appointed to be First Vice President since October 1, 2011.
Chief Executive Officer and President
2. To organize annual shareholders general meetings and the Board of Directors meetings in compliance with legal requirements as well as the Articles of Association of TBANK. 3. To take minutes of annual shareholders general meetings and the Board of Directors meetings, as well as to monitor the implementation of the resolutions adopted
at the shareholders’ meeting and the meetings of the
With reference to the BOT Notification No.
Board of Directors.
TorPorTor. ForKorKor.(21) Lor. 248/2010 dated October 22,
4. To document and keep records of director’s
2010 approving the appointment of Mr. Somjate Moosirilert
reiterative documents, invitations to the Board of Directors
as Chief Executive Officer and President, TBANK’s Board of
meeting, the minutes of the Board of directors meeting,
Directors has determined the duties and authority of the
TBANK’s annual report, invitations to the shareholders’
Chief Executive Officer and President as follows:
meeting and the minutes of the shareholders’ meeting.
1. To formulate directions and strategies which aim at achieving TBANK’s goals, visions, and missions. 2. To formulate business plans and budget for TBANK’s Executive Committee’ and Board of Directors’ approval. 3. To manage and approve business transactions, as well as to oversight business conducts of TBANK’s executives and staff, ensuring that they are in alignment with the business plans and budget approved by the Bank’s Executive Committee and Board of Directors. 4. To manage and approve matters related to TBANK’s organizational structure and human resource management. 5. To report TBANK’s performance to the Executive Committee or the Board of Directors.
5. To ensure the disclosure of information and reports within respective authority to the supervisory agency in accordance with authority’s rules and regulations 6. To contact and communicate with shareholders in general, ensuring that they are well informed about their rights and about news of TBANK. 7. To support activities of TBANK’s Board of Directors.
Board of Directors Meetings TBANK’s Board of Directors convenes its meeting
regularly in the last week of each month. It may also hold additional meetings as deemed appropriate. The meeting agenda will be clearly determined in advance including the
regular agenda such as business performance monitoring,
As regards the level of approval authorization, the
approval of business transactions, and risk management.
Chief Executive Officer and President is authorized to
The Secretary of the Board of Directors is responsible for
approve a credit line, investment or obligation worth no
sending meeting invitations to all members of the Board
more than THB 300 million, provided that they are
along with the agenda as well as supporting documents in
supported by collateral in the form of bonds, deposits or
advance so that the Board has sufficient time to review
debt instruments.
them before attending the meetings. In 2011, the Board of
Company Secretary In accordance with the principles of good corporate
Directors convened 14 general meetings. At the Board of Directors meeting, every director
is encouraged to express their opinions and to adopt
governance, TBANK has assigned the Office of the
resolutions independently. The Chairman of the Board
Chairman of the Executive Committee and the CEO to be
of Directors shall provide opportunities to all directors
a unit that performs the secretariat functions to ensure the
to express their opinions before requesting the adoption
Bank’s effective business management.
of resolutions. The notices and opinions of the directors
Annual Report 2011 Thanachart Bank Public Company Limited
229
at meetings are documented. The minutes of the meetings are approved by the Board of Directors and are available to be examined by the Board and related parties.
Table of Directors’ Attendance at Meeting held in 2011 (Unit: times)
List of TBANK’s Directors
1. Mr. Banterng
Board of Audit Directors Committee (13 Meetings) (13 Meetings)
Nomination and Remuneration Committee (13 Meetings)
Risk Management Committee (9 Meetings)
Executive Committee (28 Meetings)
Tantivit
13/13
-
-
-
-
Poonpipat
13/13
-
-
8/9
28/28
Chiu Kwok
0/13
-
0/13
-
-
Meecharoen
13/13
13/13
-
-
-
Chivangkur
13/13
-
13/13
-
-
Jinachitra
13/13
13/13
13/13
-
-
13/13
13/13
-
-
-
13/13
-
-
-
25/28
George John King
13/13
-
-
5/9
25/28
Moosirilert
13/13
-
-
8/9
28/28
Duangdee
12/13
-
-
-
24/28
Weeks
4/7
-
-
-
-
Jaramillo
3/4
-
-
-
-
2. Mr. Suphadej 3. Mrs. Michele 4. Mr. Kiettisak 5. Mr. Narong 6. Mr. Sataporn 7. Assoc. Prof. Dr. Somjai Phagaphasvivathana 8. Ms. Suvarnapha Suvarnaprathip 9. Mr. Brendan 10. Mr. Somjate 11. Mr. Kobsak 12. Mr. Martin 13. Mr. Alberto
Notes: 1. Mrs. Michele Chiu Kwok had health problems. However, she has been electronically monitoring the Bank’s business conducts and giving
recommendations of benefits to the Bank on a regular basis. 2. Mr. Martin Weeks resigned from his directorship on June 30, 2011. 3. Mr. Alberto Jaramillo has assumed his directorship since September 27, 2011.
Nomination and Appointment of Directors 1. Appointment Procedures of TBAK’s Board of Directors. TBANK does not specify the maximum number of directors. However, in accordance with the Bank’s Articles
of Association, the Bank must have at least five directors. The appointment procedure can be categorized into two cases, including the case of appointing a new director to replace the one who is retired by rotation; and the case is when
the appointment is made during the directorship tenure due to a vacancy. In this regard, TBANK’s Board of Directors has established the Nomination Committee in order to select and nominat qualified candidates for directorships. Under the first circumstance, a resolution of the shareholders’ meeting is required, while, in the latter case, the Board of Directors is able to approve the director’s appointment, given that qualifications are fulfilled. In addition, the appointment of
the independent director has to be conducted in compliance with the regulations imposed by the BOT.
230
Annual Report 2011 Thanachart Bank Public Company Limited
In electing the Bank’s Director at the
1. Mr. Narong
Chivangkur
shareholders’ meeting, every shareholder has equal voting
Independent
rights. The rules and procedures of Director’s election
Nomination and Remuneration Committee
at the shareholders’ meeting are as follows:
Certificate: Role of the Nomination and
(1) Each voter has one vote which equals to
of
the
Governance Committee, Class 1/2011
one share per one vote.
Certificate: Financial Institutions Governance
(2) Vote casting can be conducted individually or in terms of a group of individuals or by any other
Director/Chairman
Program, Class 2/2011 2. Mr. Kobsak
Duangdee
procedure as deemed appropriate by the shareholders.
Director/Executive Committee
However, in each resolution, all shareholders must cast
Certificate: Financial Institutions Governance
their votes according to (1). (3) Resolutions are adopted by a majority vote. In case votes are equal, the ultimate decision belongs to the Chairman of the meeting. 2. Appointment Procedures of the Executive Committee. TBANK’s Board of Directors may appoint
Program, Class 2/2011
Evaluation of the Board of Directors and Senior Management’s Performance TBANK conducts the evaluation of the directors’ performance annually. The evaluation can be categorized
a number of directors to hold a position of the Executive
into: 1) The evaluation of Board of Directors’ performance
Committee as it deems appropriate. Among these, one of
and 2) The evaluation of Chief Executive Officer and
them shall serve as the Chairman of the Executive
President’s performance.
Committee. The Executive Committee will be authorized to
manage and conduct TBANK’s business affairs as assigned
Succession Plan
by TBANK’s Board of Directors. The Chief Executive Officer
and President will be ex-officio members of the Executive
The Nomination and Remuneration Committee is
Committee. 3. Appointment Procedures of the Audit Committee. The Board of Directors will appoint at least three Independent Directors who have met the Bank’s qualifications to assume the directorship in the Audit Committee. The Committee is responsible for undertaking
responsible for ensuring that there is a succession plan for the Chief Executive Officer and President position in order to sustain continuity of the Bank’s management.
The Orientation for Newly Appointed Directors and Executives
responsibilities as specified in the charter of the Audit
Committee which must be complied with the SEC’s
When there is a newly appointed director or
guideline. The Committee is fully independent to perform
executive, the Office of the Chairman of Executive
their duties and has a direct reporting line to the Board of
Committee and the CEO is responsible for preparing
Directors.
necessary documents for the new director or executive, as
4. Appointment Procedures of the Nomination and Remuneration Committee.
the case may be. Such documents comprised the Bank’s annual report, which contains visions, strategies, and goals
The Board of Directors will appoint at least
of the Bank; the director and executive’s manual, which
three Independent Directors to assume the directorship in
includes what prohibited by laws related to financial
the Nomination and Remuneration committee. The
institutions; and the relevant Acts and notifications.
Committee is responsible for undertaking responsibilities
as specified in the charter of the Nomination and
Remuneration Policy
Remuneration Committee in accordance with the SEC’s
guidelines and the BOT’s regulations.
The remuneration of TBANK’s directors has been
Development of Directors and Executives
determined by comparison with the director’s remuneration across the industry. Such comparison has been applied along with consideration of roles, duties, and scope of
responsibilities of each director. The remuneration of
Each Director of TBANK has attended at least one
TBANK’s director has to be under the review and screening
training course organized by the Thai Institute of Directors
of the Nomination and Remuneration Committee which
(IOD). Two Directors that have attended the training
then recommends to the Bank’s Board of Directors for their
course in 2011 are:
consideration before being proposed to the shareholders’
Annual Report 2011 Thanachart Bank Public Company Limited
231
meeting. The remuneration will be paid in terms of meeting stipends, monthly compensation, and performance allowances. Members of sub-committee will receive the remuneration as specified by TBANK’s Board of the Directors based on the recommendation of the Nomination and Remuneration Committee. The recommendation is derived by considering their duties and responsibilities compared to industry peers. The sub-committee’s remuneration will be in terms of meeting stipends and/or position allowance. The remuneration of executives complies with policies and standards which are associated with the Bank as well as individual performance. The performance assessment is conducted via the use of Key Performance Indicators (KPI).
The executives will be remunerated in terms of salaries and allowances of which the average meets the industry’s peers.
Director’s Remuneration
a) Financial Remuneration Director’s and Committee’s Remuneration As of December 31, 2011, TBANK has remunerated three committees, including the Board of Directors, the Audit Committee, and the Nomination and Remuneration Committee totaling THB 26,928,252.69. The remuneration has been paid in terms of meeting stipends, position allowance and performance-based allowance (from the Bank’s performance in 2010) which can be summarized as follow:
Table of the remuneration of the Board of Directors Type of remuneration (Baht per year) List of Directors 1. Mr. Banterng Tantivit 2. Mr. Suphadej Poonpipat 3. Mrs. Michele Chiu Kwok 4. Mr. Kiettisak Meecharoen 5. Mr. Narong Chivangkur 6. Mr. Sataporn Jinachitra 7. Assoc. Prof. Dr. Somjai Phagaphasvivathana 8. Ms. Suvarnapha Suvarnaprathip 9. Mr. Brendan George John King 10. Mr. Somjate Moosirilert 11. Mr. Kobsak Duangdee 12. Mr. Martin Weeks 13. Mr. Alberto Jaramillo Total
Monthly compensation
Meeting stipends
Performance allowance
Total
693,000.00
556,400.00
2,714,419.67
3,963,819.67
346,500.00
278,200.00
1,357,209.82
1,981,909.82
346,500.00
0.00
1,357,209.82
1,703,709.82
346,500.00
278,200.00
1,357,209.82
1,981,909.82
346,500.00
278,200.00
1,357,209.82
1,981,909.82
346,500.00
278,200.00
1,357,209.82
1,981,909.82
346,500.00
278,200.00
1,357,209.82
1,981,909.82
346,500.00
278,200.00
1,357,209.82
1,981,909.82
346,500.00
278,200.00
1,357,209.82
1,981,909.82
346,500.00
278,200.00
1,357,209.82
1,981,909.82
346,500.00
256,800.00
1,357,209.82
1,960,509.82
173,250.00
85,600.00
1,357,209.82
1,616,059.82
90,475.00
64,200.00
0.00
154,675.00
4,421,725.00
3,188,600.00
17,643,727.69
25,254,052.69
Notes: 1. Mr. Martin Weeks resigned from his directorship on June 30, 2011. 2. Mr. Alberto Jaramillo has assumed his directorship since September 27, 2011.
232
Annual Report 2011 Thanachart Bank Public Company Limited
Table of the remuneration of the Audit Committee Type of remuneration (Baht per year) List of Directors
1. Mr. Kiettisak
Monthly compensation
Meeting stipends
Total
Meecharoen
219,600.00
357,500.00
577,100.00
Jinachitra
109,800.00
178,750.00
288,550.00
109,800.00
178,750.00
288,550.00
439,200.00
715,000.00
1,154,200.00
2. Mr. Sataporn 3. Assoc. Prof. Dr. Somjai
Phagaphasvivathana
Total
Table of the remuneration of the Nomination and Remuneration Committee Type of remuneration (Baht per year) List of Directors Meeting stipends 1. Mr. Narong
Chivangkur
325,000.00
Jinachitra
195,000.00
2. Mr. Sataporn 3. Mrs. Michele
Chiu Kwok
0.00
Total
520,000.00
The Remuneration of the Executive Committee TBANK’s Board of Directors has not yet determined the remuneration of the Executive Committee; therefore, no payment to its members was made. The Remuneration of Executives Based on the guidance of the SEC and Section 4 and Section 25 of Financial Institution Business Act B.E. 2551, there were 37 persons in total who were considered executives in the position of manager and the first four executive below the manager. The total payments made to them in 2011 in the form of salaries, allowances, cost-of-living allowances and contribution payments to the provident fund amounted to THB 201,253,695.00. The Remuneration of the Independent Director of the Subsidiaries With regard to the remuneration of the independent director of the subsidiaries, there is one independent director who assumed the directorship in TLIFE and received the compensation amounted to THB 200,000.00 in 2011. b) Remuneration Other Than Cash Payments As of December 31, 2011, there was no remuneration other than cash payments.
Annual Report 2011 Thanachart Bank Public Company Limited
233
Report of the Nomination and Remuneration Committee On March 26, 2002, TBANK’s Board of Directors approved the establishment of the Nomination Committee
and the Remuneration Committee. On March 25, 2009, the Bank Board of Directors’ meeting adopted a resolution to combine the Nomination Committee and the Remuneration Committee together and name the Committee to “the Nomination and Remuneration Committee”. The Committees consisted of two independent directors and one non-executive director whose names as of December 31, 2011 were as follows; 1. Mr. Narong
Chivangkur
Chairman (Independent Director)
2. Mrs. Michele Chiu Kwok Member
(Non-Executive Director)
3. Mr. Sataporn Jinachitra Member
(Independent Director)
Mr. Thaneit
Khantikaroon
Secretary
In 2011, the Nomination and Remuneration Committee convened thirteen meetings to process the following matters;
1. To select and nominate appropriate persons to be appointed as a director replacing the director resigning to the
2. To review and nominate appropriate persons to be appointed as directors replacing the directors retiring by
Bank’s Board of Directors. rotation for the year 2011 to the Bank’s Board of Directors’ meeting and the Annual General Meeting of the Shareholders.
3. To select and nominate the appropriate persons to be appointed as Executives to the Board of Directors.
4. To provide opportunities for shareholders to propose appropriate persons to be appointed as Bank’s directors in
5. To review and consider the remuneration packages for directors and sub-committees, taking into consideration
the 2012 Annual General Meeting of Shareholders of Thanachart Bank Public Company Limited. that such remuneration package commensurate with the assigned duties and responsibilities, the Board of Directors’ and sub-committee performances, and the Bank’s overall performance 2011 remuneration packages were proposed for approval at the Bank’s Board of Directors meeting and the Annual General Meeting of Shareholders for the year 2011.
6. To consider the performance evaluation, adjustment of annual salary and bonus of Chairman of the Executive Committee, Chief Executive Officer and President, and Executives.
7. To consider the remuneration of the Chairman of the Executive Committee and Chief Executive Officer and
8. To recommend the Thanachart Group’s Executives Succession Plan.
9. To recommend related issues of the salary structure and salary survey results of financial institutions.
President.
(Mr. Narong Chivangkur) Chairman of the Nomination and Remuneration Committee
234
Annual Report 2011 Thanachart Bank Public Company Limited
supervision and Management Structures
Board of Directors
Risk Management Committee Compliance Unit
Executive Committee
Asset and Liability Management Committee
Integration and Change
Investment Portfolio Committee
Credit Committee
Office of Executive Committee Chairman and CEO
IT Security Management Committee
Chief Executive Officer and President
Investment Management
As of December 31, 2011
Annual Report 2011 Thanachart Bank Public Company Limited
235
Board of Directors and Management Team
Mr. Banterng Tantivit Chairman (Non-Executive Director) Age
67 years
Education(s)
• Master of Science (Finance) in Management,
Massachusetts Institute of Technology, USA
• Bachelor of Science in Electrical Engineering,
Massachusetts Institute of Technology, USA
Directorship and executive
Thai Institute of Directors Association
training program(s)
• Director Accreditation Program (DAP), Class 25/2004
Experience(s) in the past 5 years 2006 – Present
• Vice Chairman, Thanachart Insurance Company Limited
• Director, Siam Piwat Holding Company Limited
2005 – Present
• Chairman, Thanachart Life Assurance Company Limited
2003 – Present
• Chairman, MBK Resort Public Company Limited
• Director, Siam Piwat Company Limited
• Director, B.V. Holding Company Limited
• Chairman, Plan Estate Company Limited
2001 – Present
• Advisor, Dusit Thani Public Company Limited
• Advisor, Patum Rice Mill and Granary Public Company Limited
1994 – Present
• Chairman, Thanachart Capital Public Company Limited
1989 – Present
• Chairman and Chairman of the Executive Committee,
MBK Public Company Limited
1987 – Present
• Director, Deebuk Company Limited
• Director, Thai Farming Company Limited
2010 – 2011
• Chairman, Siam City Bank Public Company Limited
2006 – 2010
• Director, Arsom Silp Institution of the Arts Council
Family relationship with
None
management No. of TBANK share(s) held
236
None
Annual Report 2011 Thanachart Bank Public Company Limited
Mr. Suphadej Poonpipat Vice Chairman and Chairman of the Executive Committee (Executive Director) Age
61 years
Education(s)
• Master of Science, University of Wisconsin, USA
• Bachelor of Business Administration and Accounting, Chulalongkorn University
Directorship and executive
Thai Institute of Directors Association
training program(s)
• Director Accreditation Program (DAP), Class 8/2004
Capital Market Academy, The Stock Exchange of Thailand
• Leadership Program, Class 8/2009
Experience(s) in the past 5 years 2011 – Present
• Vice Chairman and Chairman of the Executive Committee,
Patum Rice Mill and Granary Public Company Limited 2007 – Present
• Director, Royal Orchid Hotel (Thailand) Public Company Limited
• Director, Thai Royal Orchid Real Estate Company Limited
2006 – Present
• Director, Siam Piwat Holding Company Limited
2005 – Present
• Director and Chairman of the Executive Committee,
Thanachart Insurance Company Limited
• Director, MBK Resort Public Company Limited
2003 – Present
• Director and Chairman of the Executive Committee,
Thanachart Life Assurance Company Limited
• Director, Plan Estate Company Limited
• Director, Siam Piwat Company Limited
• Vice Chairman, Member of the Compensation and Nomination Committee and
Vice Chairman of the Executive Committee, MBK Public Company Limited
1990 – Present
• Vice Chairman, Chairman of the Executive Committee and
President and Chief Executive Officer, Thanachart Capital Public Company Limited
(Holding Vice Chairman position in the Board of Directors and Chairman position
in the Executive Committee in 2007) 2010 – 2011
• Vice Chairman, Siam City Bank Public Company Limited
2000 – 2011
• Advisor, Patum Rice Mill and Granary Public Company Limited
1992 – 2010
• Director, Advanced Info Service Public Company Limited
Family relationship with
None
management No. of TBANK share(s) held
None
Annual Report 2011 Thanachart Bank Public Company Limited
237
Mrs. Michele Chiu Kwok Vice Chairperson and Member of the Nomination and Remuneration Committee (Non-Executive Director) Age
52 years
Education(s)
• Master of Business Administration (Finance & Marketing),
University of British Columbia, Canada
• Bachelor of Science in Mathematics, University of British Columbia, Canada
Directorship and executive
None
training program(s) Experience(s) in the past 5 years 2008 – Present
• Director, Canada China Business Council, Canada
2006 – Present
• Governor, The Canada Chamber of Commerce, Hong Kong
• Senior Vice President/Regional Head, Asia/Pacific and Middle East,
The Bank of Nova Scotia, Hong Kong
• Director, Scotiabank (Hong Kong) Limited, Hong Kong
• Director, Boracay Limited, Hong Kong
• Director, The Bank of Nova Scotia Asia Limited, Singapore
• Director, The Bank of Nova Scotia Berhad, Malaysia
• Director, Scotiatrust (Asia) Limited, Hong Kong
2010 – 2011
• Vice Chairman and Member of the Nomination and Remuneration Committee,
Siam City Bank Public Company Limited Family relationship with
None
management No. of TBANK share(s) held
238
None
Annual Report 2011 Thanachart Bank Public Company Limited
Mr. Kiettisak Meecharoen Chairman of the Audit Committee (Independent Director) Age
65 years
Education(s)
• Master of Theoretical Economics, Keio University, Japan
• Bachelor of Science in Finance, Hitotsubashi University, Japan
Directorship and executive
Thai Institute of Directors Association
training program(s)
• Director Accreditation Program (DAP), Class 40/2005
• Audit Committee Program (ACP), Class 10/2005
Harvard University
• Banking and Monetary Policy in Developing Countries Program
Experience(s) in the past 5 years 2005 – Present
• Independent Director, Tararom Enterprise Public Company Limited
2000 – Present
• Independent Director, Thanachart Life Assurance Company Limited
• Independent Director and Chairman of the Audit Committee,
Safety Insurance Public Company Limited
2010 – 2011
• Independent Director and Chairman of the Audit Committee,
Siam City Bank Public Company Limited Family relationship with
None
management No. of TBANK share(s) held
None
Annual Report 2011 Thanachart Bank Public Company Limited
239
Mr. Narong Chivangkur Chairman of the Nomination and Remuneration Committee (Independent Director) Age
67 years
Education(s)
• Management Development Program, Asian Institute of Management, Philippines
• Financial Management Program, Rochester Institute of Technology, USA
Directorship and executive
Thai Institute of Directors Association
training program(s)
• Role of the Nominations and Governance Committee (RNG), Class 1/2011
• Financial Institutions Governance Program (FGP), Class 2/2011
• Audit Committee Program (ACP), Class 32/2010
• Financial Statement for Directors (FSD), Class 4/2009
• Successful Formulation & Execution the Strategy (SFE), Class 2/2008
• Role of the Compensation Committee (RCC), Class 4/2007
• Corporate Social Responsibility (CSR), Class 1/2007
• Director Certification Program (DCP), Class 34/2003
Experience(s) in the past 5 years 2005 – Present
• Director, Momchailai Development Company Limited
2003 – Present
• Director, Momentum IM Company Limited
2000 – Present
• Director, Momentum BBS Company Limited
2010 – 2011
• Director and Chairman of the Nomination and Remuneration Committee,
Siam City Bank Public Company Limited 2004 – 2011
• Director, Momentum Sale and Distribution Company Limited
Family relationship with
None
management No. of TBANK share(s) held
None
240 Annual Report 2011 Thanachart Bank Public Company Limited
Ms. Suvarnapha Suvarnaprathip Vice Chairperson of the Executive Committee (Executive Director) Age
66 years
Education(s)
• Bachelor of Economics, Monash University, Australia
• Certificate, Executive Commercial Lending Training Program, Banker Trust,
New York, USA
Directorship and executive
Thai Institute of Directors Association
training program(s)
• Director Accreditation Program (DAP), Class 20/2004
Experience(s) in the past 5 years 2005 – Present
• Director and Chairperson of the Executive Committee,
Thanachart Capital Public Company Limited
• Director and Member of the Executive Committee,
Thanachart Life Assurance Company Limited
1991 – Present
• Director, Seacon Development Public Company Limited
2010 – 2011
• Director and Vice Chairperson of the Executive Committee,
Siam City Bank Public Company Limited Family relationship with
None
management No. of TBANK share(s) held
None
Annual Report 2011 Thanachart Bank Public Company Limited 241
Mr. Sataporn Jinachitra Member of the Audit Committee and Member of the Nomination and Remuneration Committee (Independent Director) Age
63 years
Education(s)
• Master of Science (Econometrics),
The London School of Economics and Political Science (University of London),
England
• Bachelor of Science (Economics), University College London
(University of London), England
• Bachelor of Arts (Law), Sukhothai Thammathirat Open University
Directorship and executive
Thai Institute of Directors Association
training program(s)
• Role of the Chairman Program (RCP), Class 24/2010
• Role of the Compensation Committee (RCC), Class 10/2010
• Corporate Social Responsibility (CSR), Class 1/2007
• DCP Refresher Course, Class 2/2006
• Director Certification Program (DCP), Class 0/2000
Experience(s) in the past 5 years 2010 – 2011
• Independent Director, Member of the Audit Committee and
Member of the Nomination and Remuneration Committee,
Siam City Bank Public Company Limited 2006 – 2011
• Dispute Resolution Committee, Interconnection Institution, NTC
1999 – 2011
• Director, Thai Institute of Directors Association
2002 – 2006
• President, Export-Import Bank of Thailand
Family relationship with
None
management No. of TBANK share(s) held
None
242 Annual Report 2011 Thanachart Bank Public Company Limited
Mr. Brendan George John King Vice Chairman of the Executive Committee and Deputy Chief Executive Officer (Executive Director) Age
48 years
Education(s)
• Master of Business Administration (Finance & International Business),
York University, Canada
• Bachelor of Arts (Business & Economics), York University, Canada
Directorship and executive
• Marketing Certificate, Queen’s University Executive Management Program
training program(s)
• Honors Diploma in General Management, the Institute of Canadian Bankers
• The Fundamentals of Coaching Excellence
• Moody’s Risk Analysis
• Commercial Sales Leadership Program, Scotiabank
• International Commercial Banker Development Program, Scotiabank
• Merchant Banking Introductory Course
• Introduction to Investment Banking and Bond Structuring
• Leader-Coach Program, Scotiabank
• Strategic Selling Skills Course, Scotiabank
Experience(s) in the past 5 years 2011 – Present
• Director, Scotia Netherlands Holding B.V.
2004 – Present
• Director, Scotiabank (Hong Kong) Limited, Hong Kong
• Director, Scotia Nominees (Hong Kong) Limited, Hong Kong
2010 – 2011
• Director and Vice Chairman of the Executive Committee,
Siam City Bank Public Company Limited 2002 – 2004
• General Manager, International Corporate Finance,
Scotiabank (Bahamas) Limited, USA
Family relationship with
None
management No. of TBANK share(s) held
None
Annual Report 2011 Thanachart Bank Public Company Limited 243
Assoc. Prof. Dr. Somjai Phagaphasvivathana Member of the Audit Committee (Independent Director) Age
66 years
Education(s)
• Doctorado de Estado, Facultad de Ciencia Politica,
Universidad Complutense de Madrid, Spain
• Diplome d’Etudes Superieures (Economic Integration),
Universite de Nancy, France
• Licenciatura, Facultad de Ciencia Politicay Economica,
Universidad Complutense de Madrid, Spain
• Beachelor of Arts, Chulalongkorn University
Directorship and executive
Thai Institute of Directors Association
training program(s)
• Director Accreditation Program (DAP), Class 34/2005
Experience(s) in the past 5 years 2006 – Present
• Independent Director and Chairman of the Audit Committee,
SEAFCO Public Company Limited 1997 – Present
• Independent Director and Chairman of the Audit Committee,
Lee Feed Mill Public Company Limited
• Director, Krungthep Thanakom Company Limited
• Director, Thai Hua Rubber Public Company Limited
1996 – Present
• Independent Director and Member of the Audit Committee,
Amarin Printing and Publishing Public Company Limited 2010 – 2011
• Independent Director and Member of the Audit Committee,
Siam City Bank Public Company Limited Family relationship with
None
management No. of TBANK share(s) held
None
244 Annual Report 2011 Thanachart Bank Public Company Limited
Mr. Kobsak Duangdee Member of the Executive Committee and Executive Vice President (Executive Director) Age
55 years
Education(s)
• Master of Business Administration (Finance), University of Tennessee,
Knoxville, USA
• Bachelor of Commerce and Accountancy, Chulalongkorn University
Directorship and executive
Thai Institute of Directors Association
training program(s)
• Financial Institutions Governance Program (FGP), Class 2/2011
• Director Accreditation Program (DAP), Class 73/2008
Experience(s) in the past 5 years 2011 – Present
• Liquidator, SCIB Public Company Limited
2008 – Present
• Director and Member of the Executive Committee,
Thanachart Securities Public Company Limited
• Vice President and Country Head,
The Bank of Nova Scotia, Bangkok Representative Office
2010 – 2011
• Director and Member of the Executive Committee,
Siam City Bank Public Company Limited
• Director, Siam City Securities Company Limited
2006 – 2010
• Director, Thai-Canadian Chamber of Commerce
1997 – 2008
• Vice President and Country Head, The Bank of Nova Scotia, Bangkok Branch
2003 – 2005
• President, Thai-Canadian Chamber of Commerce
Family relationship with
None
management No. of TBANK share(s) held
None
Annual Report 2011 Thanachart Bank Public Company Limited 245
Mr. Somjate Moosirilert Member of the Executive Committee and Chief Executive Committee and President (Executive Director) Age
54 years
Education(s)
• Master of Management,
Sasin Graduate Institute of Business Administration of Chulalongkorn University
• Bachelor of Business Admininstration, Thammasat University
Directorship and executive
Thai Institute of Directors Association
training program(s)
• Role of the Chairman Program (RCP), Class 5/2001
Capital Market Academy, The Stock Exchange of Thailand
• Leadership Program, Class 5/2007
Judicial Training Institute
• Certificate in the program for Senior Executives on Justice Administration,
Class 9/2005
Experience(s) in the past 5 years 2011 – Present
• Governor, The Stock Exchange of Thailand
• Executive Director, The Thai Bankers’ Association
• Vice Chairman, Thai Listed Companies Association
• Chairman, TS Asset Management Company Limited
2010 – Present
• Chairman and Chairman of the Executive Committee,
Siam City Life Assurance Company Limited
• Director and Chairman of the Executive Committee,
Thanachart Fund Management Company Limited
• Director and Member of the Executive Committee,
Thanachart Insurance Company Limited
• Advisor, Association of Securities Companies
2009 – Present
• Chairman, Thanachart Securities Public Company Limited
• Director, Member of the Executive Committee
and Senior Executive Vice President, Thanachart Capital Public Company Limited
2010 – 2011
• Chairman, Siam City Asset Management Company Limited
• Chairman, Thanachart Fund Management Company Limited
• Chairman, Siam City Securities Company Limited
• Director, Chairman of the Executive Committee and Chief Executive Officer
and President, Siam City Bank Public Company Limited
2010
• Director, Thanachart Life Assurance Company Limited
2009 – 2011
• Vice Chairman, The Stock Exchange of Thailand
• Director, Thai Capital Market Development Committee
2009 – 2010
• President and Chief Executive Officer, Thanachart Capital Public Company Limited
• Senior Executive Vice President, Thanachart Bank Public Company Limited
• Director, TSFC Securities Public Company Limited
• Executive Director, Association of Securities Companies
2009
• Chairman of the Executive Committee, Thanachart Securities Public Company Limited
2002 – 2008
• President, Thai Asset Management Corporation
Family relationship with
None
management No. of TBANK share(s) held
None
246 Annual Report 2011 Thanachart Bank Public Company Limited
Mr. Alberto Jaramillo Director (Non-Executive Director) Age
40 years
Education(s)
• Master of Business Administration,
Université de Montréal École des Hautes Études Commerciales, Canada
• Administrador de Empresas,
Instituto Colombiano de Estudios Superiores de Incolda, Colombia
Directorship and executive
None
training program(s) Experience(s) in the past 5 years 2011 – Present
• Vice President & Regional Treasurer, The Bank of Nova Scotia, Hong Kong
2005 – 2011
• Treasurer, The Bank of Nova Scotia Inverlat, Mexico
2001 – 2005
• Risk Manager Latin America, The Bank of Nova Scotia, Canada
1998 – 1999
• Trading Group Director, Corfinsura Colombia
1996 – 1998
• Trader, Corfivalle Colombia
Family relationship with
None
management No. of TBANK share(s) held
None
Mrs. Noossara Roonsamrarn Executive Vice President Age
53 years
Education(s)
• Master of Business Administration, National Institute of Development Administration
• Bachelor of Political Science, Chulalongkorn University
Directorship and executive
Harvard Business School
training program(s)
• Certificate in Advanced Management Program (AMP 168)
Thailand National Defence College
• The Joint-State-Private Sectors Course (NDC 22)
Capital Market Academy, The Stock Exchange of Thailand
• Leadership Program, Class 7 (CMA 7)
Thai Institute of Directors Association
• DCP Refresher Course, Class 4/2007
• Director Certification Program (DCP), Class 19/2002
Experience(s) in the past 5 years 1997 – Present
• Director and Member of the Audit Committee,
Thanachart Insurance Company Limited 2005 – 2008
• Director and Member of the Audit Committee,
Thanachart Fund Management Company Limited Family relationship with
None
management No. of TBANK share(s) held
None
Annual Report 2011 Thanachart Bank Public Company Limited 247
Mr. Piyaphong Artmangkorn Executive Vice President Age
54 years
Education(s)
• Master of Public Administration (Taxation), University of Southern California, USA
• Bachelor of Economics, Thammasat University
Directorship and executive
Thai Institute of Directors Association
training program(s)
• Director Accreditation Program (DAP), Class 8/2004
Experience(s) in the past 5 years 1998 – Present
• Director, MBK Public Company Limited
2006 – Present
• Executive Committee, MBK Public Company Limited
2010
• Director, Siam City Bank Public Company Limited
2005 – 2009
• Chairman and Chairman of the Executive Committee,
Thanachart Securities Public Company Limited 2001 – 2008
• Director, Thai Royal Orchid Real Estate Company Limited
2000 – 2008
• Director, Royal Orchid Hotel (Thailand) Public Company Limited
2005 – 2007
• Director and Member of the Executive Committee,
Thanachart Capital Public Company Limited 1998 – 2005
• Executive Vice President, National Finance Public Company Limited
Family relationship with
None
management No. of TBANK share(s) held None
248 Annual Report 2011 Thanachart Bank Public Company Limited
Mr. Nophadon Ruengchinda Executive Vice President Age
54 years
Education(s)
• Master of Management,
Sasin Graduate Institute of Business Administration of Chulalongkorn University
• Master of Business Administration,
National Institute of Development Administration
• Bachelor of Political Science, Chulalongkorn University
Directorship and executive
Thai Institute of Directors Association
training program(s)
• Director Certification Program (DCP), Class 45/2004
• Finance for Non-Finance Directors (FND), Class 11/2004
Experience(s) in the past 5 years 2009 – Present
• Director, Thanachart Training and Development Company Limited
2005 – Present
• Director, Thanachart Life Assurance Company Limited
1998 – Present
• Director, Thanachart Insurance Company Limited
2010
• Director, Siam City Bank Public Company Limited
2009 – 2010
• Director, T Leasing Company Limited
2004 – 2009
• Director and Chairman of the Audit Committee,
Thanachart Fund Management Company Limited 2000 – 2009
• Director, Thai International Rent a Car Company Limited
Family relationship with
None
management No. of TBANK share(s) held
None
Annual Report 2011 Thanachart Bank Public Company Limited 249
Mr. Anuwat Luengtaweekul Executive Vice President Age
48 years
Education(s)
• Master of Business Administration, Rangsit University
• Bachelor of Science (Accounting), Kasetsart University
Directorship and executive
Thai Institute of Directors Association
training program(s)
• Successful Formulation & Execution the Strategy (SFE), Class 3/2009
• Board and Performance Evaluation Program
• Director Certification Program (DCP), Class 24/2002
Association of Finance Companies
• Financers’ Executive Development Program, Class 9/1994
Experience(s) in the past 5 years 2010 – Present
• Director, Ratchthani Leasing Public Company Limited
2010
• Director, Siam City Bank Public Company Limited
2007 – 2009
• Director, Member of the Executive Committee and Executive Vice President,
Thanachart Capital Public Company Limited Family relationship with
None
management No. of TBANK share(s) held
None
Mr. Ajay Pratap Mundkur Executive Vice President Age
47 years
Education(s)
• Master of Business Administration, John M. Onlin School of Business,
Washington University, St. Louis, USA
• Post Graduate Diploma in Financial Management,
Symbiosis Institute of Business Management, Pune, India
• Bachelor of Commerce (Accounting and Auditing), University of Pune, India
Directorship and executive
None
training program(s) Experience(s) in the past 5 years 2005 – 2009
• Vice President, Retail Banking, Asia-Pacific Region, The Bank of Nova Scotia
Family relationship with
None
management No. of TBANK share(s) held
None
250 Annual Report 2011 Thanachart Bank Public Company Limited
Mr. Enghug Nontikarn Executive Vice President Age
55 years
Education(s)
• Master of Business Administration, Thammasat University
• Bachelor of Economics, Thammasat University
Directorship and executive
Thai Institute of Directors Association
training program(s)
• Director Accreditation Program (DAP), Class 25/2004
Experience(s) in the past 5 years 1995 – Present
• Independent Director, Member of the Audit Committee and
Member of the Nomination Committee,
Srithai Superware Public Company Limited
2006 – 2011
• Senior Executive Vice President, Siam City Bank Public Company Limited
Family relationship with
None
management No. of TBANK share(s) held
None
Annual Report 2011 Thanachart Bank Public Company Limited 251
Mr. Rathian Srimongkol Executive Vice President
Age 52 years Education(s) • Master of Business Administration, Thammasat University • Master of Public Administration (General Management), Suan Sunandha Rajabhat University • Bachelor of Medicine (M.D.), Mahidol University • Bachelor of Science (Medical Science), Mahidol University • Diploma, National Defence College, the Joint-State-Private Sectors Course, Class 21 Directorship and executive King Prajadhipok’s Institute training program(s) • Advanced Certificate Course in Politics and Governance in Democratic System for
Executives, Class 9 Capital Market Academy, The Stock Exchange of Thailand • Leadership Program, Class 11 Experience(s) in the past 5 years 2009 – Present • Vice Chairman and Chairman of the Audit Committee, Indorama Ventures Public Company Limited 2010 – 2011 • Director and Chairman of the Audit Committee, Indorama Polyimers Public Company Limited 2008 – 2011 • Executive Vice President, Siam City Bank Public Company Limited 2008 – 2010 • Director, TOT Public Company Limited 2008 • Chairman, Industrial Estate Authority of Thailand 2004 – 2008 • First Executive Vice President, Siam City Bank Public Company Limited • Chairman, The Zoological Park Organization Family relationship with None management No. of TBANK share(s) held None Note: Mr. Rathian Srimongkol resigned from Executive Vice President in TBANK on 1 January 2012
Mrs. Phenchan Weerawuth First Vice President, Accounting Age Education(s) Directorship and executive training program(s) Experience(s) in the past 5 years 2005 – 2011 Family relationship with management No. of TBANK share(s) held
59 years • Master of Accounting, Thammasat University • Bachelor of Accounting, Thammasat University None
• First Vice President, Accounting, Siam City Bank Public Company Limited None
None
252 Annual Report 2011 Thanachart Bank Public Company Limited
The information of the Executives and Authorized persons’ position in subsidiary, associated and related companies
Name List
TBANK
As at 31 December 2011 Parent Company
Associated Company
Subsidiary Companies
1
2
3
XXX
XXX
XX ///
XX /// A
4
5
11
Related Companies
6
7
8
9 10
12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46
XXX ///
X
XXX
X
X
XXX
X
X
X /// X ///
XX //
X
X
X
X
Mr. Banterng
Tantivit
Mr. Suphadej
Poonpipat
Mrs. Michele
Chiu Kwok
Mr. Kiettisak
Meecharoen
X
Mr. Narong
Chivangkur
X
Ms. Suvarnapha Suvarnaprathip Mr. Sataporn
Jinachitra
Mr. Brendan
George John King
Assoc. Prof. Dr. Somjai Phagaphasvivathana
X //
X //
X
X
X G
X
X
X
X
X
X
X /
X
X
X
X
X
X
X
X // B
X
X
X
X
Annual Report 2011 Thanachart Bank Public Company Limited 253
Duangdee
X / D
Mr. Somjate
Moosirilert
X / A
X / C
Mr. Alberto
Jaramillo
X /
XXX X /// X /
XXX/// XXX
X
Mrs. Noossara Roonsamrarn D D
Mr. Nophadon Ruengchinda D Mr. Anuwat
XX /// X
XX
Mr. Kobsak
Mr. Piyaphong Artmangkorn
XX XXX
X
X
X
X
X
G
X
X F
X
X
X
Luengtaweekul D
X /
X
X
Mr. Ajay Pratap Mundkur D Mr. Enghug Nontikarn D
X
Mr. Rathian Srimongkol D
X
Mrs. Phenchan Weerawuth E Note:
XXX = Chairman
A = President and Chief Executive Officer
B = Deputy Chief Executive Officer
F = Vice President
G = Authorized Person Management Power
XX = Vice Chairman
X = Director
/// = Chairman of the Executive Committee
// = Vice Chairman of the Executive Committee
C = Senior Executive Vice President
/ = Member of the Executive Committee
D = Executive Vice President
E = First Vice President
List of Parent Company Subsidiary, Associated and Related Companies
Parent Company 1. Thanachart Capital Public Company Limited
Subsidiary Companies 2. Thanachart Securities Public Company Limited
7. TS Assets Management Company Limited
3. Thanachart Fund Management Company Limited
8. Rachthani Leasing Public Company Limited
4. Thanachart Insurance Company Limited 5. Thanachart Life Assurance Company Limited
9. Thanachart Management and Service Company Limited 10. Thanachart Training and Development Company Limited
6. Siam City Life Assurance Company Limited
Associated Companies 11. MBK Public Company Limited
Related Companies 12. Siam Piwat Holding Company Limited
31. Safety Insurance Public Company Limited
13. MBK Resort Public Company Limited
32. Mom Chailai Development Company Limited
14. Siam Piwat Company Limited
33. Momentum IM Company Limited
15. B.V. Holding Company Limited
34. Momentum BBS Company Limited
16. Plan Estate Company Limited
35. Seacon Development Public Company Limited
17. Deebuk Company Limited
36. Scotia Netherlands Holding B.V.
18. Thai Farming Company Limited
37. Scotia Nominees (Hong Kong) Limited, Hong Kong
19. Patum Rice Mill and Granary Public Company Limited
38. SEAFCO Public Company Limited
20. Royal Orchid Hotel (Thailand) Public Company Limited
39. Lee Feed Mill Public Company Limited
21. Thai Royal Orchid Real Estate Company Limited
40. Krungthep Thanakom Company Limited
22. Canada China Business Council, Canada
41. Thai Hua Rubber Public Company Limited
23. The Canadian Chamber of Commerce, Hong Kong
42. Amarin Printing & Publishing Public Company Limited
24. The Bank of Nova Scotia, Hong Kong
43. SCIB Public Company Limited
25. Scotiabank (Hong Kong) Limited, Hong Kong
44. The Bank of Nova Scotia, Bangkok Representative Office
26. Boracay Limited, Hong Kong
45. The Stock Exchange of Thailand
27. The Bank of Nova Scotia Asia Limited, Singapore
46. Srithai Superware Public Company Limited
28. The Bank of Nova Scotia Berhad, Malaysia
47. Indorama Ventures Public Company Limited
29. Scotiatrust (Asia) Limited, Hong Kong 30. Tararom Enterprise Public Company Limited
254 Annual Report 2011 Thanachart Bank Public Company Limited
General Information
Investment of TBANK in Other Companies Details of TBANK and its Subsidiary Companies, Associated Companies, and Other Companies in which it hold 10 percent of shares and over Type of Type of Total numberv of Total number of No. Company/Locations Business shares paid-up shares shares held
1
Thanachart Securities Plc.
Securities
444 MBK Tower,14th, 18th, and 19th Floor,
Ordinary 1,500,000,000 1,499,999,930
Percent of TBANK’s shareholding1
100.00
Share
Phayathai Road, Wangmai, Pathumwan, Bangkok 10330 Tel. +66 (0) 2217-8888,
+66 (0) 2217-9595
Fax +66 (0) 2217-9642 2
Thanachart Insurance Co., Ltd.
Non-Life
999/1 The Nine Tower 2nd-3rd, 5th Floor,
Insurance
Ordinary
74,000,000
73,999,434
100.00
50,000,000
49,999,400
100.00
1,000,000
999,993
100.00
600,000
599,993
100.00
Share
999/2, 4th Floor, 999/3 4th Floor, Rama 9 Road, Suanluang, Bangkok 10250 Tel. +66 (0) 2308-9300 Fax +66 (0) 2308-9333 3
Thanachart Life Assurance Co., Ltd. 999/1 The Ninth Tower 1st, 4th-5th Floor,
Life
Ordinary
Assurance
Share
Legal
Ordinary
Advisory
Share
999/4, 4th Floor, Rama 9 Road, Suanluang, Bangkok 10250 Tel. +66 (0) 2308-9400 Fax +66 (0) 2308-9444 4
Thanachart Legal and Appraisal Co., Ltd.3 128/20-21 Phayathai Plaza Office,
3rd
Floor,
Phayathai Road, Thung Phaya Thai, Ratchathewi, Bangkok 10400
Services and Appraisal
Tel. +66 (0) 2216-6677 Fax +66 (0) 2216-9022 5
Thanachart Management and Services
Services
Co., Ltd.
Ordinary Share
128/23 Phayathai Plaza Office, 3rd Floor, Phayathai Road, Thung Phaya Thai, Ratchathewi, Bangkok 10400 Tel. +66 (0) 2612-1500 Fax +66 (0) 2612-1400
Annual Report 2011 Thanachart Bank Public Company Limited
255
Type of Type of Total numberv of Total number of No. Company/Locations Business shares paid-up shares shares held
6
Thanachart Training and Development
Percent of TBANK’s shareholding1
Training
Ordinary
500,000
499,993
100.00
Leasing
Ordinary
36,000,000
35,999,994
100.00
600,000
599,994
100.00
70,000,000
69,999,994
100.00
100,000
99,998
100.00
200,000,000
199,999,997
100.00
10,000,000
9,999,000
99.99
Co., Ltd. 207/6 Thanachart Building, 5th Floor, Ratchadaphisek Road, Dindaeng, Bangkok 10400 Tel. +66 (0) 2290-3410 Fax +66 (0) 2290-3419 7
Thanachart Group Leasing Co., Ltd. 444 MBK Tower,
11th
Floor, Phayathai Road,
Share
Wangmai, Pathumwan, Bangkok 10330 Tel. +66 (0) 2217-8000,
+66 (0) 2217-8333
Fax +66 (0) 2611-9488 8
National Leasing Co., Ltd.2
Leasing
444 MBK Tower, 12th Floor,
Ordinary Share
Phayathai Road, Wangmai, Phayathai, Pathumwan, Bangkok 10330 Tel. +66 (0) 2217-8000 9
Siam City Life Assurance Co., Ltd. 231 Thanachart Park Place, 9th-11th Floor,
Life
Ordinary
Assurance
Share
Services
Ordinary
Rachadamri Road, Lumpini, Pathumwan, Bangkok 10330 Tel. +66 (0) 2207-4200 Fax +66 (0) 2253-8484 10
SCIB Services Co., Ltd.
1091/230 New Petchburi Road,
Share
Makkasan, Ratchathewi, Bangkok 10400 Tel. +66 (0) 2208-5061-2 Fax +66 (0) 2651-6611 11
TS Asset Management Co., Ltd.
Non-
Ordinary
1101 Petchburi Building, 9th Floor
performing
Share
New Petchburi Road, Makkasan,
asset
Ratchathewi, Bangkok 10400
management
Tel. +66 (0) 2208-5555 Fax +66 (0) 2208-5892 12
Thanachart Broker Co., Ltd.
Insurance
Ordinary
1 Glas Haus Building, 4th Floor,
Broker
Share
Soi Sukhumvit 25, Klongtoey Nuea, Watthana, Bangkok 10110 Tel. +66 (0) 2685-0200,
+66 (0) 2685-0300
Fax +66 (0) 0685-0322, 2685-0333
256
Annual Report 2011 Thanachart Bank Public Company Limited
Type of Type of Total numberv of Total number of No. Company/Locations Business shares paid-up shares shares held
13 SCIB Public Co., Ltd.3 1091/230 New Petchburi Road, Makkasan, Ratchathewi,
Sale of
Ordinary
company
Share
Percent of TBANK’s shareholding1
2,112,810,676 2,112,375,422
99.98
assets
Bangkok 10400 Tel. +66 (0) 2208-5061-2 Fax +66 (0) 2651-6611 14 Thanachart Fund Management Co., Ltd. 898 Ploenchit Tower, 15th and 18th Floor, Ploenchit Road, Lumpini, Pathumwan,
Mutual
Ordinary
Fund
Shar
10,000,000
7,499,993
75.00
1,342,349,708
874,973,000
65.18
240,000
80,000
33.33
50,000,000
12,500,000
25.00
7,000,000
1,633,800
23.34
29,999,971
4,500,000
15.00
Management
Bangkok 10330 Tel. +66 (0) 2126-8300 Fax +66 (0) 2126-8398 15 Rachthani Leasing Public Co., Ltd.
Leasing
77/35-36 Sinn Sathorn Tower, 11upth Floor,
Ordinary Share
Krung Thonburi Road, Klong Ton Sai, Klong San, Bangkok 10600 Tel. +66 (0) 2440-0844 Fax +66 (0) 2440-0848 16 Thoon Ruam Kan Co., Ltd.3
Others
133/2 Soi Sukumvit 21, Sukumvit Road,
Ordinary Share
Klongtoey, Bangkok 10110 Tel. +66 (0) 2259-0284 Fax +66 (0) 2258-7043 17 Siam Samsung Life Insurance Co., Ltd.
Insurance
2922/222-227, 15th Floor,
Ordinary Share
2922/262, 21st Floor, Charn Issara Tower II, New Petchburi Road, Bangkapi, Huay Klang, Bangkok 10320 Tel. +66 (0) 2308-2261-8 Fax +66 (0) 2308-2269 18 Siam Media and Communication Co., Ltd.3 18 Building 2 West SCB Park Plaza,
Commu-
Ordinary
nication
Share
Leasing
Ordinary
17th-22nd Floor, Ratchadapisek Road, Ladyao, Chatuchak, Bangkok 10900 Tel. +66 (0) 2544-2451 Fax +66 (0) 2544-3317 19 Siam City Leasing and Factoring Plc.
1091/179-181 New Petchburi Road,
Share
Makkasan, Ratchathewi, Bangkok 10400 Tel. +66 (0) 2254-8744
Annual Report 2011 Thanachart Bank Public Company Limited
257
Type of Type of Total numberv of Total number of No. Company/Locations Business shares paid-up shares shares held
20 High Pressure Steal Pipe Industry Co.,
Ltd.3
Industrial
Ordinary
pipe
Share
36/4 Moo 2 Soi Wat Mahawong,
Percent of TBANK’s shareholding1
500,001
70,470
14.09
100,000
9,998
10.00
750,000
75,000
10.00
5,000,000
500,000
10.00
74,000,000
7,400,000
10.00
45,000,000
4,500,000
10.00
20,000
2,000
10.00
13,000
1,300
10.00
Manufacturing
Phuchaosmingprai Road, Samrong, Prapha Daeng, Samut Prakarn 10130 Tel. +66 (0) 2393-4485 21 Puen Pob Paet Co., Ltd.
Medical
Ordinary
Clinic
Share
Construction
Ordinary
444 MBK Tower, 9th Floor, Phayathai Road, Wangmai, Pathumwan, Bangkok 10330 Tel. +66 (0) 2217-9836-7 22 Crystal City Development Co., Ltd.3
419 Sathupradit Road, Chong Nonsi,
Share
Yannawa Bangkok 10120 Tel. +66 (0) 2255-6470 Fax +66 (0) 2255-6495 23 Metropolitan Industrial Leasing Co., Ltd.3
Leasing
81/42 Moo 5, Surasak, Sriracha,
Ordinary Share
Chonburi 20110 Tel. +66 (0) 3804-8052 24 Steel Top Co., Ltd.
Manufacturing Ordinary
551/144 Sathupradit Road, Chong Nonsi,
Share
Yannawa, Bangkok 10120 Tel. +66 (0) 2719-9643 25 Sahakol Chassis Co., Ltd.
Vehicle
1418/6-8 Phaholyotin Road, Lard Yao,
Ordinary Share
Chatuchak, Bangkok 10900 Tel. +66 (0) 2512-0336-41 Fax +66 (0) 2513-2424 26 Siam Tire Cord Co., Ltd. 46/1 Moo 9, Bang Na-Trat Road, K. M. 39,
Textiles
Ordinary
and apparel
Share
Construction
Ordinary
Bangprakong, Chachoengsao, 24180 Tel. +66 (0) 3853-8400-6 Fax +66 (0) 3853-8399 27 Soonvijai Development Co., Ltd.3
1740 New Petchburi Road, Bangkapi, Huai Khwang, Bangkok 10310
258
Annual Report 2011 Thanachart Bank Public Company Limited
Share
Type of Type of Total numberv of Total number of No. Company/Locations Business shares paid-up shares shares held
28 Modular Samko Co., Ltd.3
Household
Ordinary
155 Moo 14, Suhkumvit Sai Kao Road,
Percent of TBANK’s shareholding1
3,500,000
350,000
10.00
13,000,000
1,300,000
10.00
1,000,000
100,000
10.00
Share
Bangpakong, Chachoengsao 24130 Tel. +66 (0) 3853-2050-3 Fax +66 (0) 3853-0053 29 Siam Euro Leasing Co., Ltd.3 20/22 Soi Prommitr, Suhkumvit Road, Klong Tan Nuea, Watthana,
Finance
Ordinary
and
Share
Securities
Bangkok 10110 30 Siam City Real Estate Services Co., Ltd.3
Construction
Ordinary
62 Thaniya Building, 1st Floor,
Share
Silom Road, Suriyawong, Bangrak, Bangkok 10500
Notes:
1 Shareholding
2 TBANK
3 Held
percentage shown included the shareholding of by related companies.
indirectly held shares through TGL which was in line with the definition of subsidiaries company announced by the SET.
by TBANK, which is in the process of liquidation, dissolution, bankruptcy, receivership or abandoned.
TBANK’S REFERENCES
Location of Head office:
900 Tonson Tower, Ploenchit Road, Lumpini, Pathumwan, Bangkok 10330, Thailand
Registration No.:
0107536001401
Registered Capital:
THB 59,346,192,720, consist of common shares of 5,934,619,272 shares with
a value of THB 10 per share.
(As of December 31, 2011)
Paid-up Capital:
THB 55,136,649,030, consist of common shares of 5,513,664,903 shares with
a value of THB 10 per share.
(As of December 31, 2011)
Website:
www.thanachartbank.co.th
Telephone:
+66 (0) 2655-9000
Fax
+66 (0) 2655-9001
Thanachart Contact Center:
1770
Annual Report 2011 Thanachart Bank Public Company Limited
259
Name, Location, Telephone and Fax of Other References
Ordinary shares
Securities Representative/Registrar
Thailand Securities Depository Company Limited
62 The Stock Exchange of Thailand Building,
Ratchadaphisek Road, Khlongtoei, Bangkok 10110, Thailand
Tel. +66 (0) 2229-2800
Call Center +66 (0) 2229-2888
www.tsd.co.th
Debentures
TBANK155A, TBANK194A, TBANK197A and TBANK247A Debenture Representative/Registrar
Thai Military Bank Public Company Limited
393 Silom Road, Silom, Bangrak, Bangkok 10500, Thailand
Tel. +66 (0) 2230-6061 Fax +66 (0) 2230-6093
Website: www.tmbbank.com
TBANK204A Debenture Representative/Registrar
CIMB Thai Public Company Limited
44 Lungsuna Building, 15th Floor, Lungsuan Road,
Lumpini, Pathumwan, Bangkok 10330, Thailand
Tel. +66 (0) 2626-7503 Fax +66 (0) 2633-9026
Website: www.cimbthai.com
TBANK196A Debenture Representative/Registrar
Thanachart Bank Public Company Limited
Securities and Trustee Services
1 Glas Haus Building, Ground Floor, Sukhumvit 25 Road,
Klongtoey Nuea, Watthana, Bangkok 10110, Thailand
Tel. +66 (0) 2207-4900 ext 1300, 1317 Fax +66 (0) 2207-4930-1
Website: www.thanachartbank.com
Hybrid Tier I Debenture Representative/Registrar
Thanachart Bank Public Company Limited
Securities Operation Section
444 MBK Tower, 20th Floor, Payathai Road,
Wangmai Pathumwan Bangkok 10330, Thailand
Tel. +66 (0) 2217-8000 ext 3833 Fax +66 (0) 2611-4839
Website: www.thanachartbank.co.th
Auditor
Miss Phuphun Charoensuk, Certified Public Accountant (Thailand) No. 4950
Ernst & Young Office Limited
193/136-137 Lake Rajada Office Complex, 33rd Floor, Rachadaphisek Road,
Klongtoey, Bangkok 10110, Thailand
Tel. +66 (0) 2264-0777 Fax +66 (0) 2264-0789-90
Financial Advisor
None
Advisor or Manager under
None
Management Contract
260
Annual Report 2011 Thanachart Bank Public Company Limited
STRUCTURE OF MAJOR SHAREHOLDERS
List of top ten major shareholders
Rank
List Of Shareholders
No. Of Shares
Percentage of Shareholding
1.
Thanachart Capital Public Company Limited
2,809,726,575
50.960
2.
Scotia Netherlands Holdings B.V.
2,701,627,557
48.999
3.
Mr. Thung-ngern Pum-ngern
418,462
0.008
4.
Ms. Kittima
Tolieng
157,525
0.003
5.
Mr. Sathit
Majurintangkurg
110,327
0.002
6.
Ms. Piengjai
Hanphanit
96,665
0.002
7.
Mr. Wanchai
Chirathivat
84,809
0.002
8.
Mr. Thanawat
Chareonthassanont
70,000
0.001
9.
Mr. Pinit
Laosoontorn
63,569
0.001
10.
Mr. Somyos
Jittipralungsri
60,000
0.001
By receivership of Legal Execution Department of 1,249,414
0.023
Total Paid-up Capital
5,513,664,903
100.000
Thai Shareholders
2,811,994,046
51.000
Foreign Shareholders
2,701,670,857
49.000
Thai Finance and Securities Plc.
11.
Other Shareholders
Source:
Report of the Bank’s Major shareholders as of December 30, 2011 prepared by Thailand Securities Depository Co., Ltd.
Group of major shareholders who have significant influence over the formulation of management policies There are two major shareholders who have significant influence over management policies, which are TCAP and the Scotia Netherlands Holdings B.V., which holds 50.960 percent and 48.999 percent of the total paid-up shares respectively. TCAP does not have any major shareholder which has significant influence over its management policies or its operation.
Annual Report 2011 Thanachart Bank Public Company Limited
261
Dividend Payment Policy
Dividend Payment Policy of Thanachart Bank
TBANK has a policy to pay dividend out of its net profit after deduction of all reserve funds according to requiremrnt of the relevant laws. Payment of dividends is subject to investment plans and other necessaries as seen appropriate by the Board of Directors. The Board, however, may approve to pay an interim dividend and will report to the Shareholders at the next Shareholders Meeting. At the Annual General Meeting of Shareholders for the year 2011 held on 7 April 2011, the shareholders passed
a resolution approving the dividend payment for the year 2010 performance to the Bank shareholders at a rate of THB 0.40 per share. The dividend payment was made, on 26 April 2011, to 5,513,664,903 shares in the total amount of THB 2,205,465,961.20.
Dividend Payment Policy of the Subsidiary Companies TBANK has not fixed a dividend payout ratio for its subsidiaries. Their dividend payments shall depend on
the operating results of each company.
The subsidiary companies, similar to TBANK, have a policy to paying dividend out of their net profit after deduction
of all reserve funds according to requirments of the relevant laws. Payment of dividends is subject to investment plans and other necessaries as seen appropriate by the Board of Directors. The Board, however, may approve to pay an interim dividend and will report to the shareholders at the next Shareholders Meeting.
262
Annual Report 2011 Thanachart Bank Public Company Limited
COMPANIES IN THANACHART GROUP
THANACHART CAPITAL Public Company Limited
SIAM CITY LIFE ASSURANCE Company Limited
444 MBK Tower, 10th-11
231 Thanachart Park Place, 9th-11th Floor,
and 15th-20th Floor,
th
Phayathai Road,Wangmai, Pathumwan,
Rachadamri Road, Lumpini, Pathumwan,
Bangkok 10330, THAILAND
Bangkok 10330, THAILAND
Tel. +66 (0) 2217-8444, 2217-8000, 2611-9111
Tel. +66 (0) 2207-4200
Fax +66 (0) 2613-6099
Fax +66 (0) 2253-8484
www.thanachart.co.th
www.scilife.co.th
Registration No. 0107536000510
Registration No. 0105540057138
THANACHART BANK Public Company Limited
THANACHART LIFE ASSURANCE Company Limited
900 Tonson Tower, Ploenchit Road,
999/1 The Ninth Tower 1st, 4th-5th Floor, 999/4, 4th Floor,
Lumpini, Pathumwan,
Rama 9 Road, Suanluang,
Bangkok 10330, THAILAND
Bangkok 10250, THAILAND
Tel. +66 (0) 2655-9000
Tel. +66 (0) 2308-9400
Fax +66 (0) 2655-9001
Fax +66 (0) 2308-9444
www.thanachartbank.co.th
www.thanachartlife.co.th
Registration No. 0107536001401
Registration No. 0105540057090
THANACHART SECURITIES Public Company Limited 444 MBK Tower,
14th,
18th
and
19th
Floor,
TS ASSETS MANAGEMENT Company Limited 1101 Petchburi Building, 9th Floor,
Phayathai Road, Wangmai, Pathumwan,
New Petchburi Road, Makkasan, Ratchathewi,
Bangkok 10330, THAILAND
Bangkok 10400, THAILAND
Tel. +66 (0) 2217-8888, 2217-9595, 2611-9222
Tel. +66 (0) 2208-5555
Fax +66 (0) 2217-9642
Fax +66 (0) 2208-5892
www.tnsitrade.com
http://property.scib.co.th/property
Registration No. 0107557000591
Registration No. 0105554031624
THANACHART FUND MANAGEMENT Company Limited
THANACHART GROUP LEASING Company Limited
898 Ploenchit Tower, 15th and 18th Floor,
444 MBK Tower, 11th Floor,
Ploenchit Road, Lumpini, Pathumwan,
Phayathai Road, Wangmai, Pathumwan,
Bangkok 10330, THAILAND
Bangkok 10330, THAILAND
Tel. +66 (0) 2126-8300
Tel. +66 (0) 2217-8000, 2217-8333
Fax +66 (0) 2126-8398
Fax +66 (0) 2611-9488
www.thanachartfund.co.th
Registration No. 0105538045861
Registration No. 0105535049696
THANACHART INSURANCE Company Limited
RATCHTHANI LEASING Public Company Limited
999/1 The Nine Tower, 2nd-3rd, 5th Floor, 999/2, 4th Floor,
77/35-36 Sinn Sathorn Tower, 11upth Floor,
999/3, 4th Floor, Rama 9 Road, Suanluang,
Krung Thonburi Road, Klong Ton Sai, Klong San,
Bangkok 10250, THAILAND
Bangkok 10600, THAILAND
Tel. +66 (0) 2308-9300
Tel. +66 (0) 2440 0844
Fax +66 (0) 2308-9333
Fax +66 (0) 2440 0848
www.thanachartinsurance.co.th
www.ratchthani.com
Registration No. 0105540060091
Registration No. 0107545000209
Annual Report 2011 Thanachart Bank Public Company Limited
263
BRANCHES OF THANACHART BANK PUBLIC COMPANY LIMITED Information as of December 31, 2011
Khlong Tan Branch
Charn Issara Tower II Branch
Tel.
+66 (0) 2314-2642-4,
Tel.
+66 (0) 2308-2955-8,
+66 (0) 2719-8030
+66 (0) 2718-1834
Fax
+66 (0) 2719-8031
Fax
+66 (0) 2308-2950
Khlong Toei Branch
Chok Chai 4 Branch
Tel.
+66 (0) 2240-0161,
Tel.
+66 (0) 2931-0895-7
+66 (0) 2249-2633
Fax
+66 (0) 2931-0798
Fax
+66 (0) 2249-4789
Seacon Square Branch
HEAD OFFICE
Tonson Branch
Khlong Thom Branch
Tel.
+66 (0) 2721-8548-50
Tel.
+66 (0) 2655-9560-4
Tel.
+66 (0) 2221-1677,
Fax
+66 (0) 2721-8551
+66 (0) 2655-9585
+66 (0) 2221-1671
Fax
+66 (0) 2221-1679
Seacon Square Srinagarindra
BANGKOK AND VICINITY
Charan Sanitwong 13 Branch
Tel.
+66 (0) 2721-9955
Tonson Branch
Tel.
+66 (0) 2864-1560-3
Fax
+66 (0) 2721-8321
Tel.
+66 (0) 2655-9560-4
Fax
+66 (0) 2864-1566
Fax
+66 (0) 2655-9585
Century the Movie Plaza Branch
Charan Sanitwong 35 Branch
Tel.
+66 (0) 2245-8500-2
Phetchaburi Office Branch
Tel.
+66 (0) 2411-0511,
Fax
+66 (0) 2245-8504
Tel.
+66 (0) 2208-5000,
+66 (0) 2411-0545
+66 (0) 2253-0200-43
Fax
+66 (0) 2411-0607
+66 (0) 2253-6198
Tel.
+66 (0) 2884-9680-3
Chamchuri Square Branch
Fax
+66 (0) 2884-9684
Suan Mali Office Branch
Tel.
+66 (0) 2160-5254-6,
Tel.
+66 (0) 2225-9999,
+66 (0) 2160-5257
Central Rama II Branch
+66 (0) 2223-0561
Fax
+66 (0) 2160-5258
Tel.
+66 (0) 2872-4770
+66 (0) 2224-3810
Fax
+66 (0) 2872-4769
Cha Ru Mueang Branch
Department of Land Transport
Tel.
+66 (0) 2214-1488,
Central Rama III Branch
Branch
+66 (0) 2214-1739
Tel.
+66 (0) 2211-8260
Tel.
+66 (0) 2272-6073-5,
Fax
+66 (0) 2214-2038
Fax
+66 (0) 2211-8190
+66 (0) 2272-6076
Fax
+66 (0) 2272-6077
Charoen Krung 17 Branch
Central Ram Inthra Branch
Tel.
+66 (0) 2224-1839,
Tel.
+66 (0) 2552-7462,
Green Place (Soi Wat Phai Ngoen)
+66 (0) 2225-7194
+66 (0) 2970-5517
Branch
Fax
+66 (0) 2224-2059
Fax
+66 (0) 2970-5518
Tel.
+66 (0) 2211-3515,
+66 (0) 2211-3519-20
Charoen Nakhon Soi 36 Branch
Central Bang Na Branch
+66 (0) 2674-9704
Tel.
+66 (0) 2862-5010-6
Tel.
+66 (0) 2398-9572-3
Fax
+66 (0) 2862-5017
Fax
+66 (0) 2398-9574
Kluai Nam Thai Branch
Tel.
+66 (0) 2258-6620-1
Charoen Phon Branch
Central Plaza Grand Rama IX
+66 (0) 2258-5505
Tel.
+66 (0) 2215-6628-30
Branch
Fax
+66 (0) 2215-6627
Tel.
Crystal Design Center Branch
+66 (0) 2160-2953
Tel.
+66 (0) 2102-2410-2
Charn Issara Tower (Rama IV)
Fax
+66 (0) 2160-2954
Fax
+66 (0) 2102-2413
Branch
Tel.
+66 (0) 2267-4296-8
Central Lat Phrao Branch
Khlong Chan Branch
Fax
+66 (0) 2267-4299
Tel.
+66 (0) 2937-1279,
Tel.
+66 (0) 2937-1280
+66 (0) 2377-1368-9
Fax
+66 (0) 2937-1283
+66 (0) 2377-3609
Fax
Fax
Fax
Fax
Fax
Fax
264
+66 (0) 2377-1364,
Branch
Central Pin Klao Branch
Annual Report 2011 Thanachart Bank Public Company Limited
+66 (0) 2160-2950-52,
Central World Branch
Trok Chan Branch
Thanon Romklao Housing Branch
Tel.
+66 (0) 2646-1346-9,
Tel.
+66 (0) 2211-1286,
Tel.
+66 (0) 2646-1353
+66 (0) 2211-4511
+66 (0) 2543-9191
Fax
+66 (0) 2646-1350
Fax
+66 (0) 2211-4653
Fax
+66 (0) 2543-9192
+66 (0) 2543-9200-1,
Central World Plaza (3) Branch
Talat Bang Khun Non Branch
Thanon Chak Phet
Tel.
+66 (0) 2255-6163,
Tel.
+66 (0) 2434-6067-8,
(Pak Khlong Talat) Branch
+66 (0) 2255-9658-9
+66 (0) 2434-6078
Tel.
+66 (0) 2225-1555,
Fax
+66 (0) 2255-9657
Fax
+66 (0) 2882-4581
+66 (0) 2225-1628 +66 (0) 2623-6527
Fax
Don Mueang Branch
Talat Bang Khae Branch
Tel.
+66 (0) 2929-7004,
Tel.
+66 (0) 2801-1004-6
Thanon Chan Branch
+66 (0) 2566-1950-1
Fax
+66 (0) 2801-1007
Tel.
+66 (0) 2285-5360,
Fax
+66 (0) 2566-3425
+66 (0) 2285-5368
Talat Phlu Branch
Fax
+66 (0) 2285-5361
The Avenue Chaengwattana
Tel.
+66 (0) 2466-7404,
Branch
+66 (0) 2466-7423
Thanon Charoen Nakhon Branch
Tel.
+66 (0) 2573-0673-5
Fax
+66 (0) 2465-1767
Fax
+66 (0) 2573-0677
Tel.
+66 (0) 2438-6953-5,
+66 (0) 2860-2018 +66 (0) 2860-4355
Talat Ying Charoen Branch
Fax
The Nine (Thanon Rama IX)
Tel.
+66 (0) 2552-8043,
Branch
+66 (0) 2552-8045
Thanon Chalong Krung Branch
Tel.
+66 (0) 2319-1662-4,
Fax
+66 (0) 2972-3161
Tel.
+66 (0) 2327-8111-3
+66 (0) 2716-7868
Fax
+66 (0) 2327-8114
Fax
+66 (0) 2718-7868
Talat Saphan Mai Don Mueang
Branch
Thanon Nang Linchi Branch
The Paseo (Lat Krabang) Branch
Tel.
+66 (0) 2521-1670,
Tel.
Tel.
+66 (0) 2346-4103-4,
+66 (0) 2521-0612-3
+66 (0) 2286-1898
+66 (0) 2346-4109
Fax
+66 (0) 2521-0611
Fax
+66 (0) 2286-1939
Fax
+66 (0) 2346-4111
+66 (0) 2286-1971,
Talat Samrae Branch
Thanon Borom Rat Chonnani
The Mall Bang Kapi (2) Branch
Tel.
+66 (0) 2472-2045-50
Branch
Tel.
+66 (0) 2734-3735-6
Fax
+66 (0) 2472-2052
Tel.
+66 (0) 2446-8061-4
Fax
+66 (0) 2734-3647
Fax
+66 (0) 2446-8065
Talat Mo Chit Branch
The Mall 2 Ramkhamhaeng Branch
Tel.
+66 (0) 2278-5300-1,
Thanon Burapha (Phahurat)
Tel.
+66 (0) 2369-2486,
+66 (0) 2270-0308
Branch
+66 (0) 2369-2482
Fax
+66 (0) 2279-3411
Tel.
+66 (0) 2221-2069,
Fax
+66 (0) 2369-2484
+66 (0) 2221-5239
Taling Chan Branch
Fax
+66 (0) 2221-5128
The Mall Tha Phra Branch
Tel.
+66 (0) 2882-7790-4
+66 (0) 2882-7796
Thanon Prajadhipok
Tel.
+66 (0) 2477-7321-3
Fax
Fax
+66 (0) 2477-7324
(Wongwian Yai) Branch
Tao Pun Branch
Tel.
+66 (0) 2437-0188,
The Mall Bangkapi Branch
Tel.
+66 (0) 2587-7292,
+66 (0) 2437-2596
Tel.
+66 (0) 2375-1575
+66 (0) 2587-7284-5
Fax
+66 (0) 2437-5784
Fax
+66 (0) 2375-1686
Fax
+66 (0) 2587-7379
Thanon Pracha Uthit
The Mall Bang Khae Branch
TOYOTA BUZZ Kaset-Nawamin
(Thung Khru) Branch
Tel.
+66 (0) 2803-8310
Branch
Tel.
+66 (0) 2426-7017-9,
Fax
+66 (0) 2803-8305
Tel.
+66 (0) 2561-0069-71,
+66 (0) 2873-4029
+66 (0) 2561-0072
Fax
+66 (0) 2873-4030
The Mall Bang Khae (2) Branch
Fax
+66 (0) 2561-0073
Tel.
+66 (0) 2803-8373-4
Fax
+66 (0) 2803-8375
Annual Report 2011 Thanachart Bank Public Company Limited
265
Tops RCA Branch
Thanon Rama II
Thanon Witthayu
(Thon Buri Housing 3) Branch
(All Seasons Place) Branch
Tel.
+66 (0) 2203-0267-9,
Tel.
Tel.
+66 (0) 2252-6784-5
+66 (0) 2641-5120
+66 (0) 2252-6786
Fax
+66 (0) 2641-5121
+66 (0) 2451-4402,
+66 (0) 2451-4460
Fax
Fax
+66 (0) 2451-4882
Thanon Sathon Tai
Tha Din Daeng Branch
Thanon Rama II (Soi 3) Branch
(Thai CC Tower) Branch
Tel.
+66 (0) 2863-1283-8
Tel.
+66 (0) 2427-1552-3
Tel.
+66 (0) 2675-5697-9,
Fax
+66 (0) 2863-1289
Fax
+66 (0) 2427-1551
+66 (0) 2675-5700
Fax
+66 (0) 2675-5701
Tha Phra Chan Branch
Thanon Rama IX Branch
Tel.
+66 (0) 2221-6486,
Tel.
Thanon Sathon Nuea Branch
+66 (0) 2225-4466
Fax- +66 (0) 2246-8473
Tel.
+66 (0) 2267-7512-4,
Fax
+66 (0) 2225-8933
+66 (0) 2637-8651
Thanon Phrasumen
Fax
+66 (0) 2637-8975
Thewet Branch
(Bang Lamphu) Branch
Tel.
Tel.
+66 (0) 2281-6821,
Thanon Sirindhorn Branch
+66 (0) 2628-7247
+66 (0) 2281-6332
Tel. +66 (0) 2434-5028-9,
Fax
+66 (0) 2282-8810
Fax
+66 (0) 2281-7457
+66 (0) 2246-7829-30
+66 (0) 2628-7240-4,
+66 (0) 2434-5947-8
Fax
+66 (0) 2434-5661
Tesco Lotus Bang Kapi Branch
Thanon Phatthanakan Branch
Tel.
+66 (0) 2377-8029,
Tel.
+66 (0) 2369-2814-7
Thanon Suea Pa Branch
+66 (0) 2377-8457
Fax
+66 (0) 2369-2818
Tel.
+66 (0) 2221-4327-9,
Fax
+66 (0) 2377-8508
+66 (0) 2623-0578
Thanon Phatthanakan 22 Branch
Fax
+66 (0) 2623-0579
Tel.
+66 (0) 2318-7241-2,
Tel.
+66 (0) 2318-7620
Arun Ammarin Branch
+66 (0) 2415-9133
Fax
+66 (0) 2318-7393
Tel.
+66 (0) 2424-0888,
Fax
+66 (0) 2892-8004
+66 (0) 2424-0999
Thanon Petchaburi Soi 20 Branch
Fax
+66 (0) 2433-7061
Tesco Lotus Rama IV Branch
Tel.
+66 (0) 2251-6018,
Tel.
+66 (0) 2249-7533-5,
+66 (0) 2251-6852
Thanon Ekkachai (Bang Bon 5)
+66 (0) 2249-7536
Fax
+66 (0) 2252-6935
Branch
Fax
+66 (0) 2249-7537
Tel.
+66 (0) 2450-3741-3
Thanon Petchaburi Tat Mai Branch
Fax
+66 (0) 2450-3744
Tesco Lotus Phet Kasem 81 Branch
Tel.
+66 (0) 2254-0252-4
Tel.
Fax
+66 (0) 2254-0255
Thong Lo Branch
+66 (0) 2812-4072
Tel.
+66 (0) 2381-8421-2,
Fax
+66 (0) 2812-4073
Thanon Pho Phanit (Ratchawong)
+66 (0) 2381-8364-5
Branch
Fax
+66 (0) 2381-8423
Tel.
+66 (0) 2622-9050,
Tel.
+66 (0) 2622-4093
Thong Lo Soi 17 Branch
+66 (0) 2512-1963
Fax
+66 (0) 2622-9029
Tel.
+66 (0) 2185-2756,
Fax
+66 (0) 2939-3043
+66 (0) 2185-2758-61
Thanon Mangkon Branch
Fax
+66 (0) 2185-2757
Tesco Lotus Wang Hin Branch
Tel.
+66 (0) 2225-3331,
Tel.
+66 (0) 2578-6194-6
+66 (0) 2225-3863
Thong Lo Soi 3 Branch
Fax
+66 (0) 2578-6197
Fax
+66 (0) 2225-8364
Tel.
+66 (0) 2392-5802-4,
+66 (0) 2712-8245
Thian Kua Thian Branch
Thanon Ramkhamhaeng 2 Branch
Fax
+66 (0) 2712-8168
Tel.
+66 (0) 2397-6173-5,
+66 (0) 2728-4060
Fax
+66 (0) 2728-4061
+66 (0) 2392-0527-8
Fax
+66 (0) 2391-1862
+66 (0) 2415-9130-2,
+66 (0) 2489-2087-9,
Tesco Lotus Lat Phrao Branch +66 (0) 2512-1955,
Tel.
+66 (0) 2221-3575-6,
+66 (0) 2622-9063
Thong Lo Soi 7 Branch
Fax
+66 (0) 2221-3575
Tel.
266
Tesco Lotus Rama II Branch
Annual Report 2011 Thanachart Bank Public Company Limited
Big C Bang Bon Branch
Thai Summit Tower
Bang Na Branch
(Thanon Petchaburi Tat Mai)
Tel.
+66 (0) 2397-3757
Tel.
+66 (0) 2416-9969-71
Branch
Fax
+66 (0) 2398-0185
Fax
+66 (0) 2416-9974
Tel.
+66 (0) 2252-6458,
+66 (0) 2251-1327
Bang Na-Trat km. 4 Branch
Big C Phet Kasem Branch
Fax
+66 (0) 2251-1357
Tel.
+66 (0) 2399-2841-4,
Tel.
+66 (0) 2399-2844
+66 (0) 2444-2904
Thaniya Branch
Fax
+66 (0) 2399-2845
Fax
+66 (0) 2444-2909
Tel.
+66 (0) 2236-3520-1,
+66 (0) 2236-5339
Bang Bon Branch
Big C Sukhaphiban 3
Fax
+66 (0) 22369119
Tel.
+66 (0) 2899-8533-5
(Ramkhamhaeng) Branch
Fax
+66 (0) 2899-8540
Tel.
Nawamin 42 Branch
+66 (0) 2916-3604
Tel.
+66 (0) 2375-1281-2,
Bang Phlat Branch
Fax
+66 (0) 2916-3607
+66 (0) 2375-1284
Tel.
+66 (0) 2435-7205,
Fax
+66 (0) 2375-1285
+66 (0) 2435-6808-10
Big C Sukhaphiban 5 Branch
Fax
+66 (0) 2435-6807
Nawamin 66 Branch
Tel.
+66 (0) 2519-5724,
+66 (0) 2519-4616
Fax
+66 (0) 2519-4627
+66 (0) 2444-2927,
+66 (0) 2916-3584-5,
Tel.
+66 (0) 2153-1513-4,
+66 (0) 2153-1566
Bang Mod Branch
Fax
+66 (0) 2153-1567
Tel.
+66 (0) 2428-7014-5,
+66 (0) 2428-6913-6
Big C Ekkamai Branch
Fax
+66 (0) 2428-6994
Tel.
+66 (0) 2714-8274-7
Nawamin Market Place Branch
Fax
+66 (0) 2714-8268
Tel.
+66 (0) 2519-1142,
Bang Yi Ruea Branch
+66 (0) 2519-1154
Tel.
+66 (0) 2472-2664-7
Bo Bae Branch
Fax
+66 (0) 2946-7432
Fax
+66 (0) 2472-2668
Tel.
+66 (0) 2356-0755-8
Fax
+66 (0) 2356-0759
Nang Loeng Branch
Bang Rak Branch
Tel.
+66 (0) 2281-0842,
Tel.
+66 (0) 2234-4227-9,
Bobae Tower Branch
+66 (0) 2281-2169
+66 (0) 2630-9026
Tel.
+66 (0) 2628-1693-5,
Fax
+66 (0) 2281-2322
Fax
+66 (0) 2630-9027
+66 (0) 2628-1690 +66 (0) 2628-1696
Fax
Na Na Nuea Branch
Bang Lamphu Branch
Tel.
+66 (0) 2252-0709,
Tel.
+66 (0) 2356-0783,
Baiyoke Pratu Nam Branch
+66 (0) 2252-6540
+66 (0) 2356-0782
Tel.
+66 (0) 2208-0824-5
Fax
+66 (0) 2253-5668
Fax
+66 (0) 2356-0787
Fax
+66 (0) 2208-0826
Bang Khun Non Branch
Bamrung Mueang Branch
PTT Thanon Seri Thai Branch
Tel.
+66 (0) 2424-9778-9,
Tel.
+66 (0) 2216-9794-7,
Tel
+66 (0) 2187-2009-11,
+66 (0) 2433-6028-9
+66 (0) 2214-0606-8
+66 (0) 2187-2012
Fax
+66 (0) 2434-9772
Fax
+66 (0) 2216-9798
Fax
+66 (0) 2187-2013
Bang Khae Branch
Big C Chaeng Wattana Branch
Pracha Chuen Branch
Tel.
+66 (0) 2454-6225-7,
Tel.
+66 (0) 2574-3525-7
Tel.
+66 (0) 2585-6811,
+66 (0) 2454-2790-2
Fax
+66 (0) 2574-3528
+66 (0) 2585-9656
Fax
+66 (0) 2413-1329
Fax
+66 (0) 2585-2666
Big C Don Mueang Branch
Bang Khlo Branch
Tel.
+66 (0) 2551-0638-9,
Pracha Uthit Branch
Tel.
+66 (0) 2289-4223,
+66 (0) 2551-0641
Tel.
+66 (0) 2289-4236
Fax
+66 (0) 2551-0642
+66 (0) 2873-5848
Fax
+66 (0) 2289-4159
Fax
+66 (0) 2873-5849
+66 (0) 2873-4721-3,
Big C Bang Na Branch
Bang Sue Branch
Tel.
+66 (0) 2396-0482,
Pracha Uthit (Huai Khwang)
Tel.
+66 (0) 2587-0616,
+66 (0) 2396-0484-5
Branch
+66 (0) 2587-0686
Fax
+66 (0) 2396-0500
Tel.
+66 (0) 2934-4181-3
Fax
+66 (0) 2585-9659
Fax
+66 (0) 2934-4184
Annual Report 2011 Thanachart Bank Public Company Limited
267
Pratu Nam Branch
Phahurat Branch
Union Mall Lat Phrao Branch
Tel.
+66 (0) 2208-0072,
Tel.
+66 (0) 2221-4409,
Tel.
+66 (0) 2511-0236,
+66 (0) 2208-0074-5
+66 (0) 2623-8097
+66 (0) 2511-0246
Fax
+66 (0) 2208-0076
Fax
+66 (0) 2623 8098
Fax
+66 (0) 2511-0268
Prawet Branch
P.B. Tower (Khlong Tan) Branch
Union Mall (2) Branch
Tel.
+66 (0) 2322-2223,
Tel.
+66 (0) 2381-3114-5,
Tel.
+66 (0) 2512-4304,
+66 (0) 2722-1371
+66 (0) 2381-3121-2
+66 (0) 2512-2040
Fax
+66 (0) 2322-8943
Fax
+66 (0) 2381-3124
Fax
+66 (0) 2512-5516
Pak Khlong Talat Branch
Phet Kasem Branch
Yaowarat Branch
Tel.
+66 (0) 2221-7511,
Tel.
+66 (0) 2456-0337-42
Tel.
+66 (0) 2221-1868,
+66 (0) 2222-0686
Fax
+66 (0) 2454-4116
+66 (0) 2221-1845-7
Fax
+66 (0) 2222-4794
Fax
+66 (0) 2221-1869
Phet Kasem 69 Branch
Pin Klao Branch
Tel.
+66 (0) 2809-3034-8
Ratchada Phisek Branch
Tel.
+66 (0) 2435-4273-4,
Fax
+66 (0) 2809-3041
Tel.
+66 (0) 2641-2225-8
+66 (0) 2435-4577-8
Fax
+66 (0) 2641-3233
Fax
+66 (0) 2435-4518
Phloen Chit Center Branch
Tel.
+66 (0) 2656-8403-7
Ratchada Phisek
Rama III Branch
Fax
+66 (0) 2656-8400
(Glas Haus Building) Branch
Tel.
+66 (0) 2682-7322-6,
Tel.
+66 (0) 2693-9811,
+66 (0) 2682-7328-9
Platinum Pratu Nam Branch
+66 (0) 2290-3500
Fax
+66 (0) 2682-7327
Tel.
+66 (0) 2121-9683-5,
Fax
+66 (0) 2693-9820
+66 (0) 2121-9686
Rama IV Branch
Fax
+66 (0) 2121-9687
Ratchada Phisek-Tha Phra Branch
Tel.
+66 (0) 2249-4201-3,
Tel.
+66 (0) 2878-8845-50
+66 (0) 2671-0260
Fashion Island Branch
Fax
+66 (0) 2878-8852
Fax
+66 (0) 2249-4204
Tel.
+66 (0) 2519-5784,
+66 (0) 2519-5753
Ratchada-Huai Khwang Branch
Phran Nok Branch
Fax
+66 (0) 2519-5718
Tel.
+66 (0) 2694-1489-91,
Tel.
+66 (0) 2418-0785,
+66 (0) 2694-1495
+66 (0) 2418-0787
Fashion Island (2) Branch
Fax
+66 (0) 2694-1496
Fax
+66 (0) 2418-0786
Tel.
+66 (0) 2947-6402-5
Fax
+66 (0) 2947-6410
Ratchadamnoen Branch
Phlapphlachai Branch
Tel.
+66 (0) 2221-3391,
Tel.
+66 (0) 2224-6922-3,
Money Park Branch
+66 (0) 2223-6010
+66 (0) 2224-6931
Tel.
+66 (0) 2686-3960-1,
Fax
+66 (0) 2222-9635
Fax
+66 (0) 2224-6947
+66 (0) 2686-3962
Fax
+66 (0) 2686-3959
Ratchadamnoen Klang Branch
Phahon Yothin Soi 6 Branch
Tel.
Tel.
+66 (0) 2279-9874-5
Mah Boon Krong Branch
+66 (0) 2621-2185
Fax
+66 (0) 2279-9895
Tel.
+66 (0) 2611-5710-4
Fax
+66 (0) 2621-2186
Fax
+66 (0) 2611-5717
Phahon Yothin Soi 9 Branch
Tel.
+66 (0) 2270-1371-3,
Min Buri Branch
Tel.
+66 (0) 2251-3113,
+66 (0) 2619-6399
Tel.
+66 (0) 2517-8014-5,
+66 (0) 2251-4314
Fax
+66 (0) 2619-6339
+66 (0) 2517-9321
Fax
+66 (0) 2251-4316
Fax
+66 (0) 2517-8016
+66 (0) 2226-3083-5,
Ratchadamri Branch
Ratcha Prarop Branch
Phatthanakan Branch
Tel.
+66 (0) 2719-4580-3
Major Ratchayothin Branch
Tel.
+66 (0) 2245-4968-9,
Fax
+66 (0) 2719-4591
Tel.
+66 (0) 2512-1082,
+66 (0) 2642-6054-5
+66 (0) 2512-1102
Fax
+66 (0) 2245-0882
Paradise Park Branch
Fax
+66 (0) 2939-5372
Tel.
+66 (0) 2325-9072-4
Fax
+66 (0) 2325-9075
268
Annual Report 2011 Thanachart Bank Public Company Limited
Ratchawong Branch
Paolo Memorial Hospital
Leng Noei Yi Branch
Tel.
+66 (0) 2224-5705,
Chok Chai 4 Branch
Tel.
+66 (0) 2221-1248,
+66 (0) 2224-5870
Tel.
+66 (0) 2514-3277,
+66 (0) 2221-3501
Fax
+66 (0) 2224-5792
+66 (0) 2933-2291
Fax
+66 (0) 2223-3211
Fax
+66 (0) 2933-2292
Wongwian Yai Branch
Ratcha Wat Branch
Tel.
+66 (0) 2241-0868,
Ramkhamhaeng Hospital Branch
Tel.
+66 (0) 2438-2486,
+66 (0) 2243-6183
Tel.
+66 (0) 2374-1523-5,
+66 (0) 2438-2562
Fax
+66 (0) 2241-1483
+66 (0) 2374-1561
Fax
+66 (0) 2438-2568
Fax
+66 (0) 2374-1562
Wong Sawang Branch
Ramkhamhaeng 155 Branch
Tel.
+66 (0) 2373-0005,
Lat Phrao Hospital Branch
Tel.
+66 (0) 2834-9999,
+66 (0) 2373-0007-8
Tel.
+66 (0) 2932-2473-5,
+66 (0) 2834-9900
Fax
+66 (0) 2373-0004
+66 (0) 2932-2529
Fax
+66 (0) 2834-9905
Fax
+66 (0) 2932-2530
Wong Sawang Town Center Branch
Ramkhamhaeng 73 Branch
Tel.
+66 (0) 2375-2126-7,
Vichaiyut Hospital Branch
Tel.
+66 (0) 2586-0420-2
+66 (0) 2374-9644
Tel.
+66 (0) 2278-2194-6
Fax
+66 (0) 2910-7949
Fax
+66 (0) 2375-2452
Fax
+66 (0) 2278-2606
Watcharaphon Branch
Ramkhamhaeng Soi 122 Branch
Samitivej Hospital Sukhumwit 49
Tel.
+66 (0) 2508-2185-7
Tel.
+66 (0) 2372-2377-9
Branch
Fax
+66 (0) 2508-2207
Fax
+66 (0) 2728-2950
Tel.
+66 (0) 2712-7013-4
Fax
+66 (0) 2712-7016
Wat Phra Ya Kai Branch
Ramkhamhaeng Soi 129 Branch
Tel.
+66 (0) 2289-3026-7,
Tel.
+66 (0) 2372-3318-20,
Lat Krabang Branch
+66 (0) 2289-5033
+66 (0) 2729-5625
Tel.
+66 (0) 2327-2754-7
Fax
+66 (0) 2289-5032
Fax
+66 (0) 2729-5832
Fax
+66 (0) 2327-2706
Wutthakat Branch
Ramkhamhaeng Soi 24 Branch
Lat Phrao Branch
Tel.
+66 (0) 2249-4201-3,
Tel.
+66 (0) 2300-4957-8,
Tel.
+66 (0) 2512-2343-4,
+66 (0) 2466-6160
+66 (0) 2300-4956
+66 (0) 2938-2433
Fax
+66 (0) 2472-5838
Fax
+66 (0) 2719-1258
Fax
+66 (0) 2512-2342
Woeng Nakhon Khasem Branch
Ram Inthra Branch
Lat Phrao 118 Branch
Tel.
Tel.
+66 (0) 2943-5630-2,
Tel.
+66 (0) 2539-2925-7
+66 (0) 2221-7201-4
+66 (0) 2519-0824-5
Fax
+66 (0) 2530-4348
Fax
+66 (0) 2222-6475
Fax
+66 (0) 2519-0826
+66 (0) 2222-2430,
Lat Phrao 53 Branch
Si Worachak Branch
Ram Inthra (Km. 7) Branch
Tel.
+66 (0) 2539-1167,
Tel.
+66 (0) 2222-1912,
Tel.
+66 (0) 2510-9610,
+66 (0) 2553-9150-7
+66 (0) 2222-1917
+66 (0) 2510-9882
Fax
+66 (0) 2539-2261
Fax
+66 (0) 2622-9338
Fax
+66 (0) 2510-9197
Lat Phrao 80 Branch
Siwara Branch
Ram Inthra (Km. 8) Branch
Tel.
+66 (0) 2933-9172,
Tel.
+66 (0) 2538-8466,
Tel.
+66 (0) 2510-6900,
+66 (0) 2933-9174-5
+66 (0) 2538-8986
+66 (0) 2510-2342
Fax
+66 (0) 2933-9178
Fax
+66 (0) 2538-9378
Fax
+66 (0) 2510-9875
Lat Phrao Soi 101 Branch
Appeal Court Branch
Navaminthra 9 Hospital Branch
Tel.
+66 (0) 2187-0162-4,
Tel.
+66 (0) 2938-3421-6
Tel.
+66 (0) 2518-1100,
+66 (0) 2187-0165
Fax
+66 (0) 2938-3428
+66 (0) 2518-2360-1
Fax
+66 (0) 2187-0161
Fax
+66 (0) 2518-2363
Sirirat Branch
Lam Sa Li Branch
Tel.
+66 (0) 2412-4515,
Tel.
+66 (0) 2735-2060-3
+66 (0) 2412-4583-4
Fax
+66 (0) 2735-2067
Fax
+66 (0) 2866-3218
Annual Report 2011 Thanachart Bank Public Company Limited
269
Vichaiyut Medical Center Branch
Rama VII Bridge (Bang Phlat)
Si Yaek Chaloem Buri
Tel.
+66 (0) 2357-1916-8
Branch
(Yaowarat) Branch
Fax
+66 (0) 2619-7043
Tel.
+66 (0) 2423-9011-3,
Tel.
+66 (0) 2221-1236,
+66 (0) 2423-9014
+66 (0) 2221-7194
The Government Complex
Fax
+66 (0) 2423-9015
Fax
+66 (0) 2225-0580
Commemorating (Building A)
Branch
Saphan Mai Don Mueang Branch
Si Yaek Ban Khaek Branch
Tel.
+66 (0) 2143-9631-33
Tel.
+66 (0) 2970-4400-3
Tel.
+66 (0) 2465-2115,
Fax
+66 (0) 2143-9634
Fax
+66 (0) 2970-4408
+66 (0) 2466-1950 +66 (0) 2465-5071
Fax
The Government Complex
Sathu Pradit 49 Branch
Commemorating Chaengwattana
Tel.
+66 (0) 2682-0610-8
Si Yaek Prawet Branch
(Building B) Branch
Fax
+66 (0) 2682-0619
Tel.
+66 (0) 2328-8023-5
Tel.
+66 (0) 2143-9393-5,
Fax
+66 (0) 2328-8027
+66 (0) 2143-9396
Sam Yan Branch
Fax
+66 (0) 2143-9397
Tel.
+66 (0) 2215-1549,
Silom Branch
+66 (0) 2215-4199
Tel.
+66 (0) 2266-7414,
Sanam Pao Branch
Fax
+66 (0) 2216-6170
+66 (0) 2266-7417-8
Tel.
+66 (0) 2271-0026-8,
Fax
+66 (0) 2266-7416
+66 (0) 2271-0029
Sam Yaek Branch
Fax
+66 (0) 2271-0030
Tel.
+66 (0) 2223-2706-8
Silom (Thanon Pan) Branch
Fax
+66 (0) 2223-2705
Tel.
+66 (0) 2237-9317-20,
Siam Discovery Branch
+66 (0) 2235-5800-2
Tel.
+66 (0) 2658-0491-3
Sam Yaek Fai Chai Branch
Fax
+66 (0) 2237-9321
Fax
+66 (0) 2658-0494
Tel.
+66 (0) 2411-3446,
+66 (0) 2418-3575-6
Silom Soi 15 Branch
Siam Paragon Branch
Fax
+66 (0) 2411-2321
Tel.
+66 (0) 2129-4374-7
Fax
+66 (0) 2129-4372
Tel.
+66 (0) 2237-4192-4,
+66 (0) 2635-0272
Sam Pheng Branch
Fax
+66 (0) 2635-0270
Tel.
+66 (0) 2222-7396,
Siam Square Branch
+66 (0) 2222-7551
Silom Complex Branch
Tel.
+66 (0) 2252-7363-5,
Fax
+66 (0) 2225-8468
Tel.
+66 (0) 2235-8832
+66 (0) 2252-7366
Fax
+66 (0) 2235-8833
Fax
+66 (0) 2252-7367
Samrae Branch
Tel.
+66 (0) 2468-0609,
Sukhumwit 71 Branch
Song Prapha Branch
+66 (0) 2468-1008-9
Tel.
+66 (0) 2391-6067,
Tel.
+66 (0) 2928-8542-5
Fax
+66 (0) 2476-5423
+66 (0) 2392-5944
Fax
+66 (0) 2928-8546
Fax
+66 (0) 2392-2534
Si Kak Phra Ya Si Branch
Suan Phlu Branch
Tel.
+66 (0) 2222-4477-8,
Sukhumwit Soi 101/1 (Piyarom Place)
Tel.
+66 (0) 2287-3084-5,
+66 (0) 2226-2267
Branch
+66 (0) 2679-3027
Fax
+66 (0) 2225-7036
Fax
+66 (0) 2679-3028
Tel.
+66 (0) 2332-7060-2,
+66 (0) 2741-8016 +66 (0) 2741-8017
Si Phra Ya Branch
Fax
Suan Lumphini (Thanon Sarasin)
Tel.
+66 (2) 2335-3057,
Branch
+66 (0) 2672-1914
Sukhumwit Soi 25 Branch
Tel.
+66 (0) 2252-2677-8,
Fax
+66 (0) 2233-4174
Tel.
+66 (0) 2651-9037
+66 (0) 2259-4726
Fax
+66 (0) 2252-2679
Si Yaek Kaset Branch
Fax
+66 (0) 2259-4730
Tel.
+66 (0) 2579-1340,
Saphan Khwai Branch
+66 (0) 2579-3483
Sukhumwit Soi 47 Branch
Tel.
+66 (0) 2279-3942,
Fax
+66 (0) 2579-6794
+66 (0) 2279-5633
Fax
+66 (0) 2616-6747
270
Tel.
+66 (0) 2204-0307-9,
+66 (0) 2662-7708
Fax
+66 (0) 2662-5632
Annual Report 2011 Thanachart Bank Public Company Limited
+66 (0) 2259-4727-9,
Sukhumwit Soi 66 Branch
On Nuch 52 Branch
Esplanade Ratchada Branch
Tel.
+66 (0) 2393-7123,
Tel.
+66 (0) 2322-1557-9
Tel.
+66 (0) 2354-2052-4
+66 (0) 2395-5959
Fax
+66 (0) 2322-1556
Fax
+66 (0) 2660-9250
Fax
+66 (0) 2399-2399
All Seasons Place Branch
IT Square Branch
Sutthi San Branch
Tel.
+66 (0) 2250-7611-3,
Tel.
+66 (0) 2576-0104-5
Tel.
+66 (0) 2616-3553-8
+66 (0) 2250-7614
Fax
+66 (0) 2576-0106
Fax
+66 (0) 2616-3561
Fax
+66 (0) 2250-7615
VICINITY
Surawong Branch
B.B. Building (Asok) Branch
Tel.
+66 (0) 2234-5964-6,
Tel.
+66 (0) 2204-1695-7,
King Kaeo Branch
+66 (0) 2631-7030
+66 (0) 2204-1698
Tel.
+66 (0) 2316-1990-2,
Fax
+66 (0) 2631-7031
Fax
+66 (0) 2204-1699
+66 (0) 2750-0184-5 +66 (0) 2317-1312
Fax
Seri Thai 32 Branch
Berli Jucker House (Kluai Nam Thai)
Tel.
+66 (0) 2376-1043-46
Branch
Khru Nai Branch
Fax
+66 (0) 2376-1122
Tel.
+66 (0) 2381-5065-7
Tel.
+66 (0) 2462-8020,
Fax
+66 (0) 2381-5068
+66 (0) 2462-8034
Nong Khaem Branch
Fax
+66 (0) 2462-6193
Tel.
+66 (0) 2445-4788,
Vorawat Building Silom Branch
+66 (0) 2445-4790-2
Tel.
+66 (0) 2635-1150-2
Khlong Luang Branch
Fax
+66 (0) 2445-4789
Fax
+66 (0) 2635-1157
Tel.
+66 (0) 2516-1230-3,
+66 (0) 2516-1202 +66 (0) 2516-1203
Huai Khwang Branch
Vibulthani Tower (Rama IV) Branch
Fax
Tel.
+66 (0) 2692-0061,
Tel.
+66 (0) 2661-5534-7
+66 (0) 2692-2098-100
Fax
+66 (0) 2661-5539
Chaeng Wattana Branch
Fax
+66 (0) 2276-1134
Tel.
+66 (0) 2982-9192-5
Siam Kit Building Branch
Fax
+66 (0) 2982-9441
Hua Lam Phong Branch
Tel.
+66 (0) 2251-6763,
Tel.
+66 (0) 2237-9710-4
+66 (0) 2252-5252
Chaeng Wattana (Software Park)
Fax
+66 (0) 2237-9713
Fax
+66 (0) 2253-9429
Branch
Tel.
+66 (0) 2962-0066,
Hua Mak Branch
India Emporium Branch
+66 (0) 2962-0415-6
Tel.
+66 (0) 2314-2627,
Tel.
+66 (0) 2224-0133,
Fax
+66 (0) 2962-0376
+66 (0) 2314-0086-7
+66 (0) 2224-0135
Fax
+66 (0) 2314-7277
Fax
+66 (0) 2623-9434
Central Chaengwattana Branch
Tel.
+66 (0) 2193-8114-6,
Anu Wong Branch
Udom Suk Branch
+66 (0) 2101-0709
Tel.
+66 (0) 2222-0161-3,
Tel.
+66 (0) 2398-4024-7
Fax
+66 (0) 2101-0710
+66 (0) 2222-0169
Fax
+66 (0) 2398-4028
Fax
+66 (0) 2225-8931
Central Rattanathibet Branch
Ekkamai 28 Branch
Tel.
Victory Monument Branch
Tel.
+66 (0) 2392-2831,
+66 (0) 2525-4736-8, +66 (0) 2969-7536
Tel.
+66 (0) 2644-7474-6,
+66 (0) 2392-7278-9
Fax
+66 (0) 2969-7537
+66 (0) 2354-9330-1
Fax
+66 (0) 2392-2832
Fax
+66 (0) 2354-9351
Zeer-Rangsit Branch
MBK Center Branch
Tel.
+66 (0) 2992-6807-9
Asok Branch
Tel.
+66 (0) 2611-4752-4,
Fax
+66 (0) 2992-6810
Tel.
+66 (0) 2260-7831-4
+66 (0) 2611-4843
Fax
+66 (0) 2260-7839
Fax
+66 (0) 2611-4751
The Mall Ngamwongwan Branch
Tel.
Asok-Din Daeng Branch
MBK Tower Branch
+66 (0) 2550-1234
Tel.
+66 (0) 2641-7547-9
Tel.
+66 (0) 2611-9480
Fax
+66 (0) 2550-1235
Fax
+66 (0) 2641-7566
Fax
+66 (0) 2611-9557
+66 (0) 2550-1231-3,
Annual Report 2011 Thanachart Bank Public Company Limited
271
Talat Klang Bang Yai Branch
Tesco Lotus Lam Luk Ka Khlong 6
Big C Bang Phli Branch
Tel.
+66 (0) 2595-0682-4
Branch
Tel.
+66 (0) 2312-2284,
Fax
+66 (0) 2595-0685
Tel.
+66 (0) 2569-1694,
+66 (0) 2312-2300
+66 (0) 2998-8163
Fax
+66 (0) 2312-2321
Talat Thai Branch
Fax
+66 (0) 2998-8164
Tel.
+66 (0) 2529-6171-2,
+66 (0) 2529-6173
Tesco Lotus Srinagarindra Branch
Tel.
+66 (0) 2752-5632-3
Fax
+66 (0) 2529-6175
Tel.
+66 (0) 2175-7844-6,
Fax
+66 (0) 2752-5635
+66 (0) 2759-9053
Talat Bang Bua Thong Branch
Fax
+66 (0) 2759-9054
Big C Samut Prakan Branch
Tel.
+66 (0) 2571-3598-9,
Tel.
+66 (0) 2571-3373-5
Tesco Lotus Samakkhi Branch
+66 (0) 2702-1859
Fax
+66 (0) 2571-7845
Tel.
+66 (0) 2582-8146-8,
Fax
+66 (0) 2702-1982
+66 (0) 2997-6041
Talat Pak Nam Branch
Fax
+66 (0) 2997-6042
Big C Samrong 2 Branch
Tel.
+66 (0) 2702-8380-4
Tel.
+66 (0) 2380-1100-2,
Fax
+66 (0) 2702-8388
Nonthaburi Branch
+66 (0) 2755-0239
Tel.
+66 (0) 2526-3453-6
Fax
+66 (0) 2755-0240
Talat Samrong Branch
Fax
+66 (0) 2526-3457
Tel.
+66 (0) 2756-8411-4
Fax
+66 (0) 2756-8419
Navanakhon Branch
Tel.
+66 (0) 2463-7700,
Tel.
+66 (0) 2909-0620-3,
+66 (0) 2463-1894-6
Thanon Rangsit-Pathum Thani Branch
+66 (0) 2909-0626
Fax
+66 (0) 2463-7144
Tel.
+66 (0) 2567-5808,
Fax
+66 (0) 2909-0625
+66 (0) 2567-2738-9
Fax
+66 (0) 25675809
Bang Pu Industrial Estate Branch
Tel.
+66 (0) 2463-0992-3
Tel.
+66 (0) 2324-0360,
Fax
+66 (0) 2463-0980
Thanon Samakkhi Branch
+66 (0) 2324-0364
Tel.
+66 (0) 2574-2794-5
Fax
+66 (0) 2324-0805
Pathum Thani Branch
Fax
+66 (0) 2574-2793
Tel.
+66 (0) 2581-5766,
Bang Kruai Branch
+66 (0) 2581-6976
Tha Nam Nonthaburi Branch
Tel.
+66 (0) 2447-2897,
Fax
+66 (0) 2581-6925
Tel.
+66 (0) 2527-0255-60
+66 (0) 2447-5095
Fax
+66 (0) 2527-0254
Fax
+66 (0) 2883-8619
Pak Kret Branch
Big C Bang Phli (2) Branch
+66 (0) 2702-1792-3,
Big C Suk Sawat (2) Branch
Big C Suk Sawat Branch
Tel.
+66 (0) 2960-9928-30,
Tha Nam Phra Pradaeng Branch
Bang Khru Branch
+66 (0) 2583-7246
Tel.
+66 (0) 2463-0488,
Tel.
+66 (0) 2817-5417-19
Fax
+66 (0) 2583-7562
+66 (0) 2463-2228
Fax
+66 (0) 2817-5423
Fax
+66 (0) 2464-2156
Pak Nam Branch
Bang Bua Thong Branch
Tel.
+66 (0) 2173-7882-4,
Thepharak Branch
Tel.
+66 (0) 2571-7124,
+66 (0) 2702-8036 +66 (0) 2702-8037
Tel.
+66 (0) 2759-6061-4,
+66 (0) 2920-6621
Fax
+66 (0) 2759-6066
Fax
+66 (0) 2920-9603
Fax
+66 (0) 2759-6067
Pu Chao Saming Prai Branch
Bang Pu Branch
Tel.
+66 (0) 2183-2044,
Tesco Lotus Navanakhon Branch
Tel.
+66 (0) 2323-2960-3
+66 (0) 2183-2046-7
Tel.
+66 (0) 2529-6187-9,
Fax
+66 (0) 2323-2964
Fax
+66 (0) 2183-2043
+66 (0) 2529-6186
Fax
+66 (0) 2909-7097
Bang Yai Branch
Phra Pradaeng Branch
Tel.
+66 (0) 2594-1143,
Tel.
+66 (0) 2463-3940-1,
Tesco Lotus Rattanathibet Branch
+66 (0) 2594-1152
+66 (0) 2463-3841-57
Tel.
+66 (0) 2950-1160,
Fax
+66 (0) 2594-1161
Fax
+66 (0) 2463-6897
+66 (0) 2950-1297
Fax
+66 (0) 2950-1157
272
Annual Report 2011 Thanachart Bank Public Company Limited
Pantip Plaza Ngamwongwan Branch
Sam Yaek Phra Pradaeng Branch
Kamphaeng Saen Branch
Tel.
+66 (0) 2953-5056-7
Tel.
+66 (0) 2463-2156-7,
Tel.
+66 (0) 3435-1100,
Fax
+66 (0) 2953-5058
+66 (0) 2462-6284
+66 (0) 3435-1614
Fax
+66 (0) 2462-5355
Fax
+66 (0) 3435-1094
Future Park Rangsit Branch
Tel.
+66 (0) 2958-5116-8,
Samrong Branch
Kaeng Khoi Branch
+66 (0) 2958-5119
Tel.
+66 (0) 2396-0278-80,
Tel.
+66 (0) 3624-4176,
Fax
+66 (0) 2958-5121
+66 (0) 2745-3482-3
+66 (0) 3624-4179
Fax
+66 (0) 2399-5103
Fax
+66 (0) 3624-4178
Future Park Rangsit (2) Branch
Tel.
+66 (0) 2958-0914-5
Samrong Nuea Branch
304 Industrial Park Branch
Fax
+66 (0) 2958-0917
Tel.
+66 (0) 2384-7141,
Tel.
+66 (0) 3741-4378-80
+66 (0) 2384-7244
Fax
+66 (0) 3741-4381
Huachiew Chalermprakiet University
Fax
+66 (0) 2384-7678
Branch
Tel.
+66 (0) 2312-6600-5
Si Mum Mueang-Rangsit Branch
Tel.
+66 (0) 3242-5350,
Fax
+66 (0) 2312-6603
Tel.
+66 (0) 2531-9774,
+66 (0) 3242-8352
+66 (0) 2531-3445
Fax
+66 (0) 3242-8351
Mueang Mai-Bang Phli Branch
Fax
+66 (0) 2531-9636
Tel.
+66 (0) 2706-0322-6
Fax
+66 (0) 2706-0329
Nam Daeng Branch
Tel.
+66 (0) 3482-7086,
Tel.
+66 (0) 2385-2511-2,
+66 (0) 3482-7093
Rangsit Branch
+66 (0) 2385-2920
Fax
+66 (0) 3482-7094
Tel.
+66 (0) 2567-1117,
Fax
+66 (0) 2385-2921
+66 (0) 2567-5586
Fax
+66 (0) 2567-6694
Ha Yaek Pak Kret Branch
Tel.
+66 (0) 3243-4130-1,
Tel.
+66 (0) 2583-7574,
+66 (0) 3247-1158
Rangsit-Khlong 3 Branch
+66 (0) 2583-9144
Fax
+66 (0) 3247-1185
Tel.
+66 (0) 2990-8806-8
Fax
+66 (0) 2584-3959
Fax
+66 (0) 2533-1659
Khao Wang Branch
Khlong Khru Branch
Cha-am Branch
Dan Chang Branch
Imperial World Samrong Branch
Tel.
+66 (0) 3559-5497
Rattanathibet Branch
Tel.
+66 (0) 2380-2943-5,
Fax
+66 (0) 3559-5499
Tel.
+66 (0) 2969-9040-3,
+66 (0) 2756-9023
+66 (0) 2969-9046
Fax
+66 (0) 2756-9024
Damnoen Saduak Branch
Fax
+66 (0) 2969-9048
Tel.
+66 (0) 3225-3810-2
Homework Ratchaphruek Branch
Fax
+66 (0) 3225-3813
Paolo Memorial Hospital
Tel.
+66 (0) 2447-6690-92
Samut Prakan Branch
Fax
+66 (0) 2447-6693
Talat Chao Prom Branch
Tel.
+66 (0) 2182-7239-41,
Tel.
+66 (0) 3524-4768,
+66 (0) 2182-7242
CENTRAL REGION
+66 (0) 3524-5162-3
Fax
+66 (0) 2182-7243
Fax
+66 (0) 3524-5441
Kabin Buri Branch
Lam Luk Ka Branch
Tel.
+66 (0) 3728-1156,
Talat Tha Na (Nakhon Chai Si) Branch
Tel.
+66 (0) 2994-5747-51
+66 (0) 3728-1333
Tel.
+66 (0) 3433-1107-9
Fax
+66 (0) 2994-5753
Fax
+66 (0) 3728-1155
Fax
+66 (0) 3433-1151
Samut Prakan Branch
Krathum Baen Branch
Talat Mahachai Branch
Tel.
+66 (0) 2388-0099,
Tel.
+66 (0) 3447-2422,
Tel.
+66 (0) 3481-0287-8
+66 (0) 2395-0045
+66 (0) 3447-2651-2
Fax
+66 (0) 3481-0467
Fax
+66 (0) 2395-2021
Fax
+66 (0) 3447-1511
Talat Suphan Buri Branch
Bang Kadi Industrial Park Branch
Kanchanaburi Branch
Tel.
+66 (0) 3551-1330,
Tel.
+66 (0) 2501-1254-6
Tel.
+66 (0) 3451-8763,
+66 (0) 3551-1590
Fax
+66 (0) 2501-1257
+66 (0) 3462-1565-6
Fax
+66 (0) 3552-3881
Fax
+66 (0) 3451-4961
Annual Report 2011 Thanachart Bank Public Company Limited
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Thanon Khun San (Sing Buri) Branch
Thanon Saengchuto (Kanchanaburi)
Tesco Lotus Mahachai Branch
Tel.
+66 (0) 3651-1199,
Branch
Tel.
+66 (0) 3482-6231,
+66 (0) 3652-1200-1
Tel.
+66 (0) 3451-5096-100
+66 (0) 3482-6230
Fax
+66 (0) 3652-1202
Fax
+66 (0) 3451-5102
Fax
+66 (0) 3442-1356
Thanon Sai Phra (Nakhon Pathom)
Thanon Amarin (Ratchaburi) Branch
Nakhon Chai Si Branch
Branch
Tel.
+66 (0) 3233-7142,
Tel.
+66 (0) 3433-1350-1
Tel.
+66 (0) 3425-5317-9
+66 (0) 3233-8280
Fax
+66 (0) 3433-1349
Fax
+66 (0) 3425-4915
Fax
+66 (0) 3232-5801
Nakhon Nayok Branch
Thanon Songphon Branch
Thanon Ekkachai (Samut Sakhon)
Tel.
+66 (0) 3731-1131,
Tel.
+66 (0) 3220-0427,
Branch
+66 (0) 3731-2608-9
+66 (0) 3221-1900
Tel.
+66 (0) 3441-1127,
Fax
+66 (0) 3731-2610
Fax
+66 (0) 3220-0426
+66 (0) 3441-1225-6
Fax
+66 (0) 3442-5204
Nakhon Pathom Branch
Thanon Bowon Branch
Tel.
+66 (0) 3421-9131
Tel.
+66 (0) 3451-1022,
Thavikit Plaza Mae Klong Branch
Fax
+66 (0) 3421-9160
+66 (0) 3451-2387
Tel.
+66 (0) 3472-0744,
Fax
+66 (0) 3451-1597
+66 (0) 3472-0766
Na Di Branch
Fax
+66 (0) 3471-6267
Tel.
+66 (0) 3728-9069,
Thanon Phrapanwasa Branch
+66 (0) 3741-1201-2
Tel.
+66 (0) 3552-1575,
Thong Pha Phum Branch
Fax
+66 (0) 3728-9069
+66 (0) 3552-1963
Tel.
+66 (0) 3459-9073,
Fax
+66 (0) 3552-1964
+66 (0) 3459-9352
Bang Sai Branch
Fax
+66 (0) 3459-9613
Tel.
+66 (0) 3528-2118-20,
Thanon Phahon Yothin (Saraburi)
+66 (0) 3537-5226
Branch
Tha Muang Branch
Fax
+66 (0) 3537-5144
Tel.
+66 (0) 3621-1166,
Tel.
+66 (0) 3461-1119,
+66 (0) 3621-1454
+66 (0) 3461-1403
Bang Pahan Branch
Fax
+66 (0) 3621-2421
Fax
+66 (0) 3461-2419
Tel.
+66 (0) 3538-1023-5
Fax
+66 (0) 3538-1026
Thanon Phet Kasem (Hua Hin) Branch
Tha Yang Branch
Tel.
+66 (0) 3251-6666-45,
Tel.
+66 (0) 3246-1445-6,
Bang Len Branch
+66 (0) 3251-6663
+66 (0) 3246-1823-4
Tel.
+66 (0) 3439-1026-9
Fax
+66 (0) 3253-2919
Fax
+66 (0) 3246-1447
Fax
+66 (0) 3439-1030
Thanon Ratchawithi (Nakhon Pathom)
Tha Ruea-Kanchanaburi Branch
Ban Pong Branch
Branch
Tel.
+66 (0) 3456-1130,
Tel.
+66 (0) 3220-0429-31,
Tel.
+66 (0) 3424-2348,
+66 (0) 3456-1040
+66 (0) 3221-1993
+66 (0) 3425-1080
Fax
+66 (0) 3456-2073
Fax
+66 (0) 3221-1035
Fax
+66 (0) 3425-1081
Tha Ruea-Ayutthaya Branch
Ban Phaeo Branch
Thanon Setthakit 1 (Om Noi) Branch
Tel.
+66 (0) 3534-1019,
Tel.
Tel.
+66 (0) 2810-4596-9
+66 (0) 3534-1029
+66 (0) 3448-0111-12
Fax
+66 (0) 2810-4605
Fax
+66 (0) 3534-1795
Fax
+66 (0) 3448-1606
+66 (0) 3448-1088,
Thanon Sut Banthat (Saraburi) Branch
Thung Khok Branch
Ban Mo Branch
Tel.
+66 (0) 3631-4512
Tel.
+66 (0) 3556-8086-7
Tel.
+66 (0) 3620-1141,
+66 (0) 3631-4256-7
Fax
+66 (0) 3556-8069
+66 (0) 3620-1391-2
Fax
+66 (0) 3631-5404
Fax
+66 (0) 3620-1142
Tesco Lotus Pran Buri Branch
Thanon Sura Songkhram (Lop Buri)
Tel.
+66 (0) 3254-2436-7,
Prachuap Khiri Khan Branch
Branch
+66 (0) 3254-2454
Tel.
+66 (0) 3260-4464-7
Tel.
+66 (0) 3661-8023,
Fax
+66 (0) 3282-5777
Fax
+66 (0) 3260-4468
+66 (0) 3661-8083-4
Fax
+66 (0) 3642-4846
274
Annual Report 2011 Thanachart Bank Public Company Limited
Prachin Buri Branch
Rojana Branch
Sa Kaeo Branch
Tel.
+66 (0) 3721-1300,
Tel.
+66 (0) 3521-3892-4,
Tel.
+66 (0) 3724-1061,
+66 (0) 3721-3855-9
+66 (0) 3524-4381
+66 (0) 3724-1585-6
Fax
+66 (0) 3721-3080
Fax
+66 (0) 3524-2136
Fax
+66 (0) 3724-1062
Pran Buri Branch
Robinson Ratchaburi Branch
Saraburi Branch
Tel.
+66 (0) 3262-1643,
Tel.
+66 (0) 3232-7711-3
Tel.
+66 (0) 3631-8291-4
+66 (0) 3262-2373-4
Fax
+66 (0) 3232-7714
Fax
+66 (0) 3631-6601
Fax
+66 (0) 3262-2055
Lop Buri Branch
Rojana Industrial Park Ayutthaya
Pak Phriao Branch
Tel.
+66 (0) 3622-1163,
Branch
Tel.
+66 (0) 3621-1833-4,
+66 (0) 3641-1595
Tel.
+66 (0) 3571-9710-2,
+66 (0) 3622-1286
Fax
+66 (0) 3642-1023
+66 (0) 3571-9713
Fax
+66 (0) 3622-1884
Fax
+66 (0) 3533-1651
Lat Bua Luang Branch
Phra Nakhon Si Ayutthaya Branch
Tel.
+66 (0) 3537-9290-1
Song Phi Nong Branch
Tel.
+66 (0) 3523-5611
Fax
+66 (0) 3537-9292
Tel.
+66 (0) 3553-2890-3
Fax
+66 (0) 3523-5630
Fax
+66 (0) 3553-2894
Wang Nam Yen Branch
Phra Pathom Chedi Branch
Tel.
+66 (0) 3725-1543-7
Sam Chuk Branch
Tel.
+66 (0) 3425-4203-5,
Fax
+66 (0) 3725-1546
Tel.
+66 (0) 3557-1644,
+66 (0) 3421-3541
+66 (0) 3557-1655
Fax
+66 (0) 3425-9131
Wang Sombun Branch
Fax
+66 (0) 3557-1099
Tel.
+66 (0) 3744-9193-4
Phutthamonthon Sai 4 Branch
Fax
+66 (0) 3744-9195
Sam Phran Branch
Tel.
+66 (0) 2420-0444,
Tel.
+66 (0) 3432-2781,
+66 (0) 2813-1115
Wat Thian Dat Branch
+66 (0) 3432-2783
Fax
+66 (0) 2813-1116
Tel.
+66 (0) 2429-0216,
Fax
+66 (0) 3432-2782
+66 (0) 2429-0813
Phetchaburi Branch
Fax
+66 (0) 2429-0847
Sing Buri Branch
Tel.
+66 (0) 3242-7023-5
Tel.
+66 (0) 3653-0410,
Fax
+66 (0) 3241-5455
Wiset Chai Chan Branch
+66 (0) 3653-0435
Tel.
+66 (0) 3563-2801-4
Fax
+66 (0) 3651-2021
Photharam Branch
Fax
+66 (0) 3563-2805
Tel.
+66 (0) 3223-1089,
+66 (0) 3223-1255
Si Prachan Branch
Tel.
+66 (0) 3552-5742,
Fax
+66 (0) 3223-1090
Tel.
+66 (0) 3558-1150,
+66 (0) 3550-1237
+66 (0) 3558-1160
Fax
+66 (0) 3552-5743
Pho Hak Branch
Fax
+66 (0) 3558-1140
Tel.
+66 (0) 3238-7021-2
Fax
+66 (0) 3238-7023
Salaya Branch
Tel.
+66 (0) 3520-1035,
Tel.
+66 (0) 2441-4557-9
+66 (0) 3520-1291
Mahachai Mueang Mai Branch
Fax
+66 (0) 2441-4560
Fax
+66 (0) 3520-1749
Tel.
+66 (0) 3481-2620-4
Fax
+66 (0) 3442-6989
Suphan Buri Branch
Sena Branch
Samut Songkhram Branch
Nong Khae Branch
Tel.
+66 (0) 3471-1361,
Tel.
+66 (0) 3637-1504,
Ratchaburi Branch
+66 (0) 3471-1444
+66 (0) 3637-1517
Tel.
+66 (0) 3231-1203-5
Fax
+66 (0) 3471-5555
Fax
+66 (0) 3637-1516
Fax
+66 (0) 3231-1207
Samut Sakhon Branch
Hua Hin Branch
Phetcharat Hospital (Phetchaburi)
Tel.
+66 (0) 3482-0359-60,
Tel.
+66 (0) 3251-1098,
Branch
+66 (0) 3482-0365-6
+66 (0) 3251-1203
Tel.
+66 (0) 3241-0505,
Fax
+66 (0) 3482-0445
Fax
+66 (0) 3251-2219
+66 (0) 3241-0506
Fax
+66 (0) 3240-0618
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Ayutthaya Branch
Chong Khae Branch
Thanon Charoen Suk
Tel.
+66 (0) 3525-2431-6,
Tel.
+66 (0) 5626-9163,
(Kamphaeng Phet) Branch
+66 (0) 3525-2359
+66 (0) 5691-2830
Tel.
+66 (0) 5571-3325-6
Fax
+66 (0) 3525-2437
Fax
+66 (0) 5626-9127
Fax
+66 (0) 5571-3368
Ayutthaya Park Branch
Chai Nat Branch
Thanon Chang Chlan (Chiang Mai)
Tel.
+66 (0) 3522-9560-1
Tel.
+66 (0) 5641-6650-3
Branch
Fax
+66 (0) 3522-9554
Fax
+66 (0) 5641-6654
Tel.
+66 (0) 5382-0538-41,
+66 (0) 5382-0542
Aranyapraphet Branch
Chang Chlan Branch
Fax
+66 (0) 5382-0543
Tel.
+66 (0) 3722-3505-7
Tel.
+66 (0) 5327-4634,
Fax
+66 (0) 3722-3511
+66 (0) 5327-4934-5
Thanon Chang Phueak (Chiang Mai)
Fax
+66 (0) 5327-4635
Branch
Om Noi Branch
Tel.
+66 (0) 5323-1060,
Tel.
+66 (0) 2420-1450,
Chiang Rai Branch
+66 (0) 5341-2116-7
+66 (0) 2420-1811
Tel.
+66 (0) 5371-7100-6,
Fax
+66 (0) 5323-1061
Fax
+66 (0) 2420-1132
+66 (0) 5371-7108-9
Fax
+66 (0) 5371-7107
Thanon Thatsana Phanit 2 (Sukhothai)
Om Yai Branch
Tel.
+66 (0) 2420-4920,
Chiang Mai Branch
Tel.
+66 (0) 5561-6201
+66 (0) 2420-4930
Tel.
+66 (0) 5327-3352,
Fax
+66 (0) 5561-6200
Fax
+66 (0) 2811-6538
+66 (0) 5327-5737
Fax
+66 (0) 5327-2733
Thanon Thipyawan (Lampang) Branch
Amphawa Branch
Tel.
+66 (0) 5422-6041-4
Tel.
+66 (0) 3475-1177-8,
Central Airport Chiang Mai Branch
Fax
+66 (0) 5422-6045
+66 (0) 3475-1640-1
Tel.
+66 (0) 5320-1234
Fax
+66 (0) 3475-1642
Fax
+66 (0) 5320-1900
Thanon Nimmanhemin Branch
Branch
Tel.
+66 (0) 5322-5483,
Ang Thong Branch
Central Plaza Chiang Rai Branch
+66 (0) 5340-0672-4
Tel.
+66 (0) 3561-1099,
Tel.
+66 (0) 5317-9928-30,
Fax
+66 (0) 5340-0675
+66 (0) 3561-2301-3
+66 (0) 5317-9931
Fax
+66 (0) 3561-1100
Fax
+66 (0) 5375-4496
Thanon Barom Trai Lokanart 2 (Phitsanulok) Branch
Kabin Buri Industrial (Nongki) Branch
Talat Varorot Branch
Tel.
+66 (0) 5521-8645-9
Tel.
+66 (0) 3745-5428-9,
Tel.
+66 (0) 5387-4018-9,
Fax
+66 (0) 5521-8648
+66 (0) 3745-5420-1
+66 (0) 5387-4020
Fax
+66 (0) 3745-5439
Fax
+66 (0) 5387-4006
Thanon Bunyawat Branch
Tel.
+66 (0) 5421-7444,
U Thong Branch
Tak Branch
+66 (0) 5421-8790
Tel.
+66 (0) 3555-1299,
Tel.
+66 (0) 5551-1275,
Fax
+66 (0) 5422-4667
+66 (0) 3555-1618
+66 (0) 5551-1360
Fax
+66 (0) 3555-1868
Fax
+66 (0) 5551-3486
Thanon Yantrakit Koson (Phrae) Branch
NORTHERN REGION
Takhli Branch
Tel.
+66 (0) 5462-6811,
Tel.
+66 (0) 5626-1093,
+66 (0) 5462-6931
Khuang Sing Branch
+66 (0) 5626-1133
Fax
+66 (0) 5453-2837
Tel.
+66 (0) 5321-0826-8,
Fax
+66 (0) 5626-2383
+66 (0) 5321-6586
Fax
+66 (0) 5322-2718
Thanon Kosi (Nakhon Sawan) Branch
Branch
Tel.
+66 (0) 5631-3929-31
Tel.
+66 (0) 5622-2998,
Bhumibol Dam Branch
Fax
+66 (0) 5631-3932
+66 (0) 5622-7835
Tel.
+66 (0) 5549-5989,
Fax
+66 (0) 5623-1462
+66 (0) 5599-0045
Thanon Chom Phon (Tak) Branch
Fax
+66 (0) 5559-9021
Tel.
+66 (0) 5554-0219,
+66 (0) 5554-1721
Fax
+66 (0) 5551-3988
Thanon Wet Suwan (Nakhon Sawan)
276
Annual Report 2011 Thanachart Bank Public Company Limited
Thanon Sueksa Charoen (Phetchabun)
Big C Phitsanulok Branch
Mae Sai Branch
Branch
Tel.
+66 (0) 5537-8295,
Tel.
+66 (0) 5373-1675,
Tel.
+66 (0) 5674-4076-8,
+66 (0) 5220-7845
+66 (0) 5373-1879
+66 (0) 5672-2414
Fax
+66 (0) 5537-8296
Fax
+66 (0) 5373-1905
Fax
+66 (0) 5672-2415
Mae Hong Son Branch
Big C Kamphaeng Phet Branch
Thanon Samran Ruen (Uttaradit)
Tel.
+66 (0) 5585-3928-30,
Tel.
+66 (0) 5361-4441-2,
Branch
+66 (0) 5585-3931
+66 (0) 5361-4444-5
Tel.
+66 (0) 5540-3103-6
Fax
+66 (0) 5585-3932
Fax
+66 (0) 5361-4443
Fax
+66 (0) 5540-3107
Pak Nam Pho Branch
McCormick Hospital (Chiang Mai)
Thanon Ekathossaros (Phitsanulok)
Tel.
+66 (0) 5621-2082,
Branch
Branch
+66 (0) 5621-2189
Tel.
+66 (0) 5326-1218-9,
Tel.
+66 (0) 5524-3871-2,
Fax
+66 (0) 5621-3516
+66 (0) 5330-0421
+66 (0) 5525-9322
Fax
+66 (0) 5326-1123
Fax
+66 (0) 5524-4268
Pai Branch
Tel.
+66 (0) 5369-9886,
Lampang Branch
Tha Phae Branch
+66 (0) 5369-9505
Tel.
+66 (0) 5431-8927-30
Tel.
+66 (0) 5323-5755
Fax
+66 (0) 5369-9252
Fax
+66 (0) 5431-6960
Fax
+66 (0) 5323-5757
Phran Kratai Branch
Lamphun Branch
Tesco Lotus Chiang Mai Hang Dong
Tel.
+66 (0) 5576-2111-2
Tel.
+66 (0) 5351-0371,
Branch
Fax
+66 (0) 5576-2113
+66 (0) 5312-0601
Tel.
+66 (0) 5380-6266-8,
Fax
+66 (0) 5351-0372
+66 (0) 5380-6269
Phayao Branch
Fax
+66 (0) 5328-1460
Tel.
+66 (0) 5443-1124,
Wang Chao Branch
+66 (0) 5448-2386-8
Tel.
+66 (0) 5555-6059,
Tesco Lotus Phitsanulok Branch
Fax
+66 (0) 5443-1272
+66 (0) 5555-6061
Tel.
+66 (0) 5537-7254,
Fax
+66 (0) 5555-6063
+66 (0) 5537-7326
Phichit Branch
Fax
+66 (0) 5537-7356
Sop Tui Branch
Tel.
+66 (0) 5661-1033,
+66 (0) 5661-1651
Tel.
+66 (0) 5422-8040-3
Nakhon Sawan Branch
Fax
+66 (0) 5661-1127
Fax
+66 (0) 5422-8044
Tel.
+66 (0) 5631-3848,
+66 (0) 5622-5444
Phitsanulok Branch
Sawankhalok Branch
Fax
+66 (0) 5631-3850
Tel.
+66 (0) 5530-4313,
Tel.
+66 (0) 5909-9009
+66 (0) 5564-2512
Nan Branch
Fax
+66 (0) 5530-4279
Fax
+66 (0) 5564-1480
Tel.
+66 (0) 5471-1095-9
Fax
+66 (0) 5471-1098
Phetchabun Branch
San Sai Branch
Tel.
+66 (0) 5672-3103
Tel.
+66 (0) 5349-1457,
Lamphun Industrial Estate Branch
Fax
+66 (0) 5672-3104
+66 (0) 5349-1934
Tel.
+66 (0) 5358-1662-3
Fax
+66 (0) 5349-1728
Fax
+66 (0) 5358-1664
Phrae Branch
Tel.
+66 (0) 5452-2004,
San Pa Khoi Branch
Bo Sang Branch
+66 (0) 5452-2006
Tel.
+66 (0) 5324-4157,
Tel.
+66 (0) 5333-7004-6
Fax
+66 (0) 5452-2005
+66 (0) 5324-9167-8
Fax
+66 (0) 5333-7007
Fax
+66 (0) 5324-1157
Phaisali Branch
Big C Chiang Mai Branch
Tel.
+66 (0) 5625-9721-2
Sukhothai Branch
Tel.
+66 (0) 5324-1248-9,
Fax
+66 (0) 5625-9723
Tel.
+66 (0) 5561-6022,
+66 (0) 5324-1336
+66 (0) 5562-2465-6
Fax
+66 (0) 5324-1337
Mae Sot Branch
Fax
+66 (0) 5562-2469
Tel.
+66 (0) 5533-3113,
+66 (0) 5553-3319
Fax
+66 (0) 5553-3320
+66 (0) 5564-1478-9,
Annual Report 2011 Thanachart Bank Public Company Limited
277
Nong Ben Branch
Khon Kaen Branch
Thanon Pho Si (Udon Thani) Branch
Tel.
+66 (0) 5629-6163-5
Tel.
+66 (0) 4332-4321,
Tel.
+66 (0) 4234-3817-8
Fax
+66 (0) 5629-6166
+66 (0) 4322-6888
Fax
+66 (0) 4234-3727
Fax
+66 (0) 4332-5919
Thanon Mittraphap Branch
Lom Kao Branch
Tel.
+66 (0) 5670-8492-3
Chaiyaphum Branch
Tel.
+66 (0) 4426-8631-6
Fax
+66 (0) 5670-8494
Tel.
+66 (0) 4481-3251-5
Fax
+66 (0) 4426-8634
Fax
+66 (0) 4481-3253
Thanon Mittraphap
Lom Sak Branch
Tel.
+66 (0) 5670-1540,
Chum Phae Branch
(Nakhon Ratchasima) Branch
+66 (0) 5670-1878
Tel.
+66 (0) 4331-1684,
Tel.
Fax
+66 (0) 5670-4513
+66 (0) 4331-2292
+66 (0) 4425-1376
Fax
+66 (0) 4331-2395
Fax
+66 (0) 4425-9002
+66 (0) 4425-9003-4,
Hankha Branch
Tel.
+66 (0) 5645-1040,
Central Plaza Khon Kaen Branch
Thanon Ruam Chai (Loei) Branch
+66 (0) 5645-1042
Tel.
+66 (0) 4328-8361-3,
Tel.
+66 (0) 4286-1451-3
Fax
+66 (0) 5645-1499
+66 (0) 4328-8364
Fax
+66 (0) 4286-1454
Fax
+66 (0) 4328-8365
Hang Dong Branch
Thanon Ratphatthana (Sakon Nakhon)
Tel.
+66 (0) 5343-4035-7
Talat Thetsaban Maha Sarakham
Branch
Fax
+66 (0) 5343-4038
Branch
Tel.
+66 (0) 4271-5767,
Tel.
+66 (0) 4372-5485,
+66 (0) 4273-6146-8
Hang Nam Sakorn Branch
+66 (0) 4372-5661
Fax
+66 (0) 4271-5686
Tel.
+66 (0) 5643-1232-3
Fax
+66 (0) 4372-3692
Fax
+66 (0) 5643-1234
Thanon Warin-Phibun
Talat Pak Chong Branch
(Warin Chamrap) Branch
Ha Yaek Phokhun Mengrai
Tel.
+66 (0) 4431-3798-9,
Tel.
+66 (0) 4532-5075,
(Chiang Rai) Branch
+66 (0) 4431-3855-6
+66 (0) 4528-6171-3
Tel.
+66 (0) 5374-5244,
Fax
+66 (0) 4431-3255
Fax
+66 (0) 4532-5076
+66 (0) 5374-5245
Fax
+66 (0) 5374-5247
Thanon Klang Mueang (Khon Kaen)
Thanon Si Chan Branch
Branch
Tel.
+66 (0) 4322-7275-8
Uttaradit Branch
Tel.
+66 (0) 4322-8266,
Fax
+66 (0) 4322-7279
Tel.
+66 (0) 5544-1777,
+66 (0) 4332-2630
+66 (0) 5544-2240
Fax
+66 (0) 4332-2386
Thanon Sappasit Branch
Fax
+66 (0) 5541-4096
Tel.
+66 (0) 4524-4315,
Thanon Kuang Heng (Si Sa Ket)
+66 (0) 4524-4729
Uthai Thani Branch
Branch
Fax
+66 (0) 4524-3193
Tel.
+66 (0) 5657-1616-9
Tel.
+66 (0) 4561-7861-4
Fax
+66 (0) 5657-1620
Fax
+66 (0) 4561-7860
Thanon Suranari Branch
Tel.
+66 (0) 4424-2560,
Happy Plaza (Phichit) Branch
Thanon Chit Bamrung (Surin) Branch
+66 (0) 4425-6705
Tel.
+66 (0) 5661-6471-3,
Tel.
+66 (0) 4453-8934-5
Fax
+66 (0) 4425-6706
+66 (0) 5661-6474
Fax
+66 (0) 4471-4051
Fax
+66 (0) 5665-0987
Thanon Na Mueang (Khon Kaen)
Thanon Thinanon (Kalasin) Branch
Branch
NORTH EASTERN REGION
Tel.
+66 (0) 4381-2024,
Tel.
+66 (0) 4322-1163,
+66 (0) 4381-2026
+66 (0) 4322-3234
Kalasin Branch
Fax
+66 (0) 4381-2066
Fax
+66 (0) 4322-1822
Tel.
+66 (0) 4382-1080-1,
+66 (0) 4382-1420
Thanon Prachak (Nong Khai) Branch
Thanon Hai Srok (Roi Et) Branch
Fax
+66 (0) 4381-6584
Tel.
+66 (0) 4241-2890-4
Tel.
+66 (0) 4352-3335-7
Fax
+66 (0) 4241-2895
Fax
+66 (0) 4352-3339
278
Annual Report 2011 Thanachart Bank Public Company Limited
Thanon Aphiban Bancha
Pak Chong Branch
Surin Branch
(Nakhon Phanom) Branch
Tel.
+66 (0) 4431-6866-9
Tel.
+66 (0) 4451-4455-8
Tel.
+66 (0) 4251-4500
Fax
+66 (0) 4431-6859
Fax
+66 (0) 4451-4459
Fax
+66 (0) 4251-4501
Surin Plaza Branch
Phlapphla Chai (Buri Ram) Branch
Thanon Udon Dutsadi Branch
Tel.
+66 (0) 4460-8012-5
Tel.
+66 (0) 4453-8517-20
Tel.
+66 (0) 4224-7574,
Fax
+66 (0) 4460-8016
Fax
+66 (0) 4453-8521
+66 (0) 4224-7732
Fax
+66 (0) 4224-7510
Maha Sarakham Branch
Suwannakhuha Branch
Tel.
+66 (0) 4374-0681-3,
Tel.
+66 (0) 4237-2515-6
Tesco Lotus Khorat Branch
+66 (0) 4374-0684
Fax
+66 (0) 4237-2517
Tel.
+66 (0) 4426-3564,
Fax
+66 (0) 4372-2958
+66 (0) 4426-3567
Fax
+66 (0) 4426-3565
Mukdahan Branch
Tel.
+66 (0) 4246-0119-22
Tel.
+66 (0) 4263-1367-70
Fax
+66 (0) 4246-0199
Tesco Lotus Chaiyaphum Branch
Fax
+66 (0) 4263-1374
Tel.
+66 (0) 4483-8324-6,
+66 (0) 4483-8327
Yasothon Branch
Tel.
+66 (0) 4231-1107,
Fax
+66 (0) 4481-3352
Tel.
+66 (0) 4571-4051-6
+66 (0) 4231-1166
Fax
+66 (0) 4571-4054
Fax
+66 (0) 4231-1657
Nakhon Phanom Branch
Tel.
+66 (0) 4251-6125-8
Roi Et Branch
Ha Yaek Nampu (Udon Thani) Branch
Fax
+66 (0) 4251-6129
Tel.
+66 (0) 4351-1521,
Tel.
+66 (0) 4222-1703,
+66 (0) 4351-3520-1
+66 (0) 4222-1381
Nakhon Ratchasima Branch
Fax
+66 (0) 4351-1520
Fax
+66 (0) 4224-7209
Tel.
+66 (0) 4426-9797,
+66 (0) 4426-8336-8
Loei Branch
Thao Suranari Monument Branch
Fax
+66 (0) 4426-9790
Tel.
+66 (0) 4283-0851-3,
Tel.
+66 (0) 4424-1774,
+66 (0) 4283-0854
+66 (0) 4424-1775
Nang Rong Branch
Fax
+66 (0) 4281-4472
Fax
+66 (0) 4424-1776
Tel.
+66 (0) 4463-1049,
+66 (0) 4463-1586-8
Wang Sam Mo Branch
Amnat Charoen Branch
Fax
+66 (0) 4463-1050
Tel.
+66 (0) 4238-7486-7
Tel.
+66 (0) 4551-1721-4
Fax
+66 (0) 4238-7488
Fax
+66 (0) 4551-1726
Ban Phai Branch
Tel.
+66 (0) 4327-4038-40
Warin Chamrap Branch
Udon Thani Branch
Fax
+66 (0) 4327-4043
Tel.
+66 (0) 4532-2788,
Tel.
+66 (0) 4234-2550
+66 (0) 4532-2791-3
Fax
+66 (0) 4234-2398
Big C Udon Thani Branch
Fax
+66 (0) 4532-2790
Tel.
+66 (0) 4212-8551-3
Fax
+66 (0) 4212-8548
Si Sa Ket Branch
Tel.
Tel.
+66 (0) 4562-0500-2,
+66 (0) 4531-9404
Big C Buri Ram Branch
+66 (0) 4562-0503
Fax
+66 (0) 4531-9405
Tel.
+66 (0) 4469-0450,
Fax
+66 (0) 4564-4197
+66 (0) 4469-0468
Fax
+66 (0) 4469-0469
Sakon Nakhon Branch
Tel.
+66 (0) 4271-6446-50
Ko Chang Branch
Big C Yasothon Branch
Fax
+66 (0) 4271-6451
Tel.
+66 (0) 3955-1026-9
Tel.
+66 (0) 4572-4361,
Fax
+66 (0) 3955-1030
+66 (0) 4572-4437
Sang Khom Branch
Fax
+66 (0) 4572-5067
Nong Khai Branch
Nong Bua Lam Phu Branch
Ubon Ratchathani Branch +66 (0) 4531-9401-3,
EASTERN REGION
Tel.
+66 (0) 4227-6222-4
Klaeng Branch
Fax
+66 (0) 4227-6225
Tel.
+66 (0) 3888-7003-9
Buri Ram Branch
Fax
+66 (0) 3867-8002
Tel.
+66 (0) 4460-1555,
Sam Yaek Pak Thong Chai Branch
+66 (0) 4460-2000
Tel.
+66 (0) 4421-3993-5,
Fax
+66 (0) 4460-2123
+66 (0) 4428-1815-6
Fax
+66 (0) 4421-3994
Annual Report 2011 Thanachart Bank Public Company Limited
279
Chanthaburi Branch
Thanon Maha Chakkaphat
Big C Chachoengsao 2 Branch
Tel.
+66 (0) 3934-4323-6
(Chachoengsao) Branch
Tel.
+66 (0) 3851-5188,
Fax
+66 (0) 3934-4327
Tel.
+66 (0) 3881-2856-7,
+66 (0) 3851-5190
+66 (0) 3853-5336
Fax
+66 (0) 3851-5219
Chachoengsao Branch
Fax
+66 (0) 3881-2874
Tel.
+66 (0) 3851-5835-7
Fax
+66 (0) 3851-5838
Thanon Sukhumwit (Chon Buri)
Tel.
+66 (0) 3878-3032-4,
Branch
+66 (0) 3878-3035
Chon Buri Branch
Tel.
+66 (0) 3879-6066,
Fax
+66 (0) 3838-7923
Tel.
+66 (0) 3827-6930-7
+66 (0) 3879-5639
Fax
+66 (0) 3827-6935
Fax
+66 (0) 3827-7841
Big C Chon Buri 2 Branch
Big C Pattaya Tai Branch
Tel.
+66 (0) 3837-4270,
Central Chon Buri Branch
Thanon Sukhumwit (Rayong) Branch
+66 (0) 3837-4273
Tel.
+66 (0) 3805-3531-3,
Tel.
+66 (0) 3861-4913-4
Fax
+66 (0) 3837-4463
+66 (0) 3805-3534
Fax
+66 (0) 3861-2342
Fax
+66 (0) 3805-3535
Big C Rayong Branch
Thanon Sukhumwit (Si Racha) Branch
Tel.
+66 (0) 3887-3094,
Central Center Pattaya Branch
Tel.
+66 (0) 3877-3415-20
+66 (0) 3887-3323
Tel.
+66 (0) 3841-4852-4,
Fax
+66 (0) 3877-3421
Fax
+66 (0) 3862-2659
+66 (0) 3841-4855
Fax
+66 (0) 3841-4846
Thanon Surasak (Si Racha) Branch
Big C Sa Kaeo Branch
Tel.
+66 (0) 3831-1872-3,
Tel.
Central Festival Pattaya Beach Branch
+66 (0) 3831-2206-7
+66 (0) 3742-1764
Tel.
+66 (0) 3300-3571-3,
Fax
+66 (0) 3831-1871
Fax
+66 (0) 3742-1765
+66 (0) 3804-3193
Fax
+66 (0) 3804-3194
Tesco Lotus Pattaya Nuea Branch
Pluak Daeng Branch
Tel.
+66 (0) 3841-1410,
Tel.
+66 (0) 3865-9768-9
Trat Branch
+66 (0) 3841-1316
Fax
+66 (0) 3865-9770
Tel.
+66 (0) 3953-1641-3,
Fax
+66 (0) 3841-1423
+66 (0) 3953-1645
Fax
+66 (0) 3952-2662
Na Kluea (Pattaya) Branch
Tel.
Tel.
+66 (0) 3822-6060-1
+66 (0) 3831-3236
Tukcom Pattaya Branch
Fax
+66 (0) 3822-6117
Fax
+66 (0) 3831-3245
Tel.
+66 (0) 3872-4105-7
Fax
+66 (0) 3872-4108
Nikhom Phatthana Branch
+66 (0) 3742-1761-3,
Pacific Park (Si Racha) Branch +66 (0) 3831-3226,
Pranom Sarakham Branch
Tel.
+66 (0) 3863-6090-1
Tel.
+66 (0) 3855-1005,
Thanon Khwang (Chanthaburi) Branch
Fax
+66 (0) 3863-6092
+66 (0) 3855-1824-6
Tel.
+66 (0) 3932-5925,
Fax
+66 (0) 3855-1659
+66 (0) 3932-2048
Bo Win Industrial Estate Branch
Fax
+66 (0) 3932-5926
Tel.
+66 (0) 3834-5456-7,
Pattaya Branch
+66 (0) 3834-5828
Tel.
+66 (0) 3872-0334,
Thanon Chetchamnong (Chon Buri)
Fax
+66 (0) 3834-5829
+66 (0) 3872-0339
Branch
Fax
+66 (0) 3842-9973
Tel.
+66 (0) 3879-2203-5
Bang Pla Soi Branch
Fax
+66 (0) 3879-2178
Tel.
+66 (0) 3827-1819,
Pattaya Klang Branch
+66 (0) 3827-6651
Tel.
+66 (0) 3842-6312,
Thanon Tat Mai (Trat) Branch
Fax
+66 (0) 3827-6652
+66 (0) 3842-6343
Tel.
+66 (0) 3952-5731-5
Fax
+66 (0) 3842-1325
Fax
+66 (0) 3952-5734
Ban Bueng Branch
Tel.
+66 (0) 3844-3060-1,
Pattaya Nuea Branch
Thanon Phraya Satcha (Chon Buri)
+66 (0) 3844-4015-6
Tel.
+66 (0) 3842-8901-2,
Branch
Fax
+66 (0) 3844-3713
+66 (0) 3842-8962
Tel.
+66 (0) 3879-2214-5,
Fax
+66 (0) 3842-8963
+66 (0) 3879-2217
Ban Phe Branch
Fax
+66 (0) 3879-2216
Tel.
+66 (0) 3865-1995,
+66 (0) 3865-1997
Fax
+66 (0) 3865-1993
280
Annual Report 2011 Thanachart Bank Public Company Limited
Rajamanggala University of
Laem Chabang Branch
Central Festival Phuket Branch
Technology Tawan-ok Branch
Tel.
+66 (0) 3840-0740-3
Tel.
+66 (0) 7620-9290,
Tel.
+66 (0) 3834-1029
Fax
+66 (0) 3840-0745
+66 (0) 7620-9292
Fax
+66 (0) 3834-1159
Fax
+66 (0) 7620-9291
Laem Thong Rayong Branch
Burapha University Branch
Tel.
+66 (0) 3802-3405-7,
Diana Si Phuwanart Branch
Tel.
+66 (0) 3839-4185-6
+66 (0) 3802-3408
Tel.
+66 (0) 7446-5316-8
Fax
+66 (0) 3839-4187
Fax
+66 (0) 3802-3409
Fax
+66 (0) 7446-5319
Map Ta Phut Branch
SOUTHERN REGION
Trang Branch
Tel.
+66 (0) 3868-2531-3
Tel.
+66 (0) 7522-3240-3
Fax
+66 (0) 3868-1995
Krabi Branch
Fax
+66 (0) 7522-3244
Tel.
+66 (0) 7563-2838-41
Rayong Branch
Fax
+66 (0) 7563-2835
Talat Tha Phae
Tel.
+66 (0) 3892-8600,
+66 (0) 3886-4123
Kantang Branch
Tel.
+66 (0) 7538-3271,
Fax
+66 (0) 3886-4115
Tel.
+66 (0) 7525-1250,
+66 (0) 7538-3277
+66 (0) 7525-1640
Fax
+66 (0) 7538-3110
Si Racha Branch
Fax
+66 (0) 7525-1644
Tel.
+66 (0) 3877-1686-9,
+66 (0) 3877-1663
Ko Tao Branch
Tel.
+66 (0) 7561-1320-1,
Fax
+66 (0) 3877-1690
Tel.
+66 (0) 7745-6533-4
+66 (0) 7562-0520
Fax
+66 (0) 7745-6784
Fax
+66 (0) 7562-0549
Saha Pathana Industrial Park
(Si Racha) Branch
Ko Pha-ngan Branch
Takua Pa Branch
Tel.
+66 (0) 3848-1826-8
Tel.
+66 (0) 7737-7051,
Tel.
+66 (0) 7642-5176,
Fax
+66 (0) 3848-1829
+66 (0) 7737-7054
+66 (0) 7643-1503-5
Fax
+66 (0) 7737-7052
Fax
+66 (0) 7642-5177
Sattahip Branch
Tel.
+66 (0) 3843-7321,
Ko Lanta Branch
Thanon Chuti Uthit (Hat Yai) Branch
+66 (0) 3843-7986
Tel.
+66 (0) 7566-8152
Tel.
+66 (0) 7434-6396-8
Fax
+66 (0) 3843-7717
Fax
+66 (0) 7566-8151
Fax
+66 (0) 7434-6393
(Nakhon Si Thammarat) Branch
Talat Maha Rat (Krabi) Branch
Sam Yaek Klaeng Branch
Ko Samui Branch
Thanon Chon Kasem (Surat Thani)
Tel.
+66 (0) 3888-4503-5
Tel.
+66 (0) 7742-1110,
Branch
Fax
+66 (0) 3888-4506
+66 (0) 7742-0363
Tel.
+66 (0) 7728-3627-30
Fax
+66 (0) 7742-1112
Fax
+66 (0) 7728-4080
Nong Mon Branch
Tel.
+66 (0) 3839-2302,
Khao Lak Branch
Thanon Thawi Wong (Hat Patong)
+66 (0) 3839-2125
Tel.
+66 (0) 7648-5493-4
Branch
Fax
+66 (0) 3839-2501
Fax
+66 (0) 7648-5560
Tel.
+66 (0) 7629-2116-8
Fax
+66 (0) 7634-5687
Nong Mon (Chon Buri) Branch
Khian Sa Branch
Tel.
+66 (0) 3874-5233,
Tel.
+66 (0) 7738-7407-8
Thanon Thammanun Withi (Hat Yai)
+66 (0) 3874-5239
Fax
+66 (0) 7738-7409
Branch
Fax
+66 (0) 3874-6349
Tel.
+66 (0) 7423-5549,
Khok Kloi (Phang Nga) Branch
+66 (0) 7423-9907
Huai Sathon Branch
Tel.
+66 (0) 7643-4821-4
Fax
+66 (0) 7424-3648
Tel.
+66 (0) 3939-5381-3
Fax
+66 (0) 7643-4827
Fax
+66 (0) 3939-5384
Thanon Niphat Uthit 1 Branch
Chumphon Branch
Tel.
+66 (0) 7424-4898-9
Hat Pattaya (Nuea) Branch
Tel.
+66 (0) 7757-1935,
Fax
+66 (0) 7423-2485
Tel.
+66 (0) 3841-5772-4,
+66 (0) 7757-1938-9
+66 (0) 3841-5884
Fax
+66 (0) 7757-1940
Fax
+66 (0) 3841-5885
Annual Report 2011 Thanachart Bank Public Company Limited
281
Thanon Montri Branch
Tha Ruea Bang Rak (Ko Samui)
Narathiwat Branch
Tel.
+66 (0) 7621-2993,
Branch
Tel.
+66 (0) 7351-2013,
+66 (0) 7621-2999
Tel.
+66 (0) 7741-7184
+66 (0) 7351-1030
Fax
+66 (0) 7621-3149
Fax
+66 (0) 7741-7185
Fax
+66 (0) 7351-2014
Thanon Ratthakan (Hat Yai) Branch
Tha Wang (Nakhon Si Thammarat)
Ban Don Branch
Tel.
+66 (0) 7434-9070-2,
Branch
Tel.
+66 (0) 7721-0365,
+66 (0) 7426-1751
Tel.
+66 (0) 7531-3144-6,
+66 (0) 7727-2006
Fax
+66 (0) 7426-1752
+66 (0) 7535-7066
Fax
+66 (0) 7721-0366
Fax
+66 (0) 7535-7067
Ban Na Doem Branch
Thanon Ratsada (Phuket) Branch
Tel.
+66 (0) 7621-9664,
Thung Song Branch
Tel.
+66 (0) 7735-9013,
+66 (0) 7625-6873-5
Tel.
+66 (0) 7541-1087,
+66 (0) 7735-9015
Fax
+66 (0) 7621-9731
+66 (0) 7541-1287
Fax
+66 (0) 7735-9014
Fax
+66 (0) 7541-1054
Thanon Ratchadamnoen
(Nakhon Si Thammarat) Branch
Tesco Lotus Krabi Branch
Tel.
+66 (0) 7570-1020-22
Tel.
+66 (0) 7534-2779-80,
Tel.
+66 (0) 7565-0833,
Fax
+66 (0) 7570-1023
+66 (0) 7535-6119
+66 (0) 7565-0836-7
Fax
+66 (0) 7535-6741
Fax
+66 (0) 7565-0834
Big C Pattani Branch
Big C Krabi Branch
Tel.
+66 (0) 7333-8004,
Thanon Ramet (Phatthalung) Branch
Tesco Lotus Chao Fa (Phuket) Branch
+66 (0) 7331-3982-3
Tel.
+66 (0) 7462-6952-4,
Tel.
+66 (0) 7626-8059-61,
Fax
+66 (0) 7333-8005
+66 (0) 7462-6955
+66 (0) 7621-9247
Fax
+66 (0) 7461-5451
Fax
+66 (0) 7621-9248
Big C Hat Yai 2 Branch
Tel.
+66 (0) 7446-9235-7,
Thanon Si Wichai (Surat Thani)
Tesco Lotus Choeng Thale (Phuket)
+66 (0) 7446-9238
Branch
Branch
Fax
+66 (0) 7455-5609
Tel.
+66 (0) 7720-6488,
Tel.
+66 (0) 7632-5919-21,
+66 (0) 7726-4170
+66 (0) 7632-5922
Betong Branch
Fax
+66 (0) 7720-6671
Fax
+66 (0) 7627-0572
Tel.
+66 (0) 7323-1120,
+66 (0) 7323-1416
Thanon Sala Daeng (Chumphon)
Tesco Lotus Thung Song Branch
Fax
+66 (0) 7323-0914
Branch
Tel.
+66 (0) 7541-3003-5,
Tel.
+66 (0) 7750-5051-2
+66 (0) 7541-3006
Pattani Branch
Fax
+66 (0) 7750-5054
Fax
+66 (0) 7541-3007
Tel.
+66 (0) 7333-5950-1,
+66 (0) 7333-1851 +66 (0) 7333-5949
Thanon Sai Buri (Songkhla) Branch
Tesco Lotus Phuket Branch
Fax
Tel.
+66 (0) 7431-1638,
Tel.
+66 (0) 7625-5472-4,
+66 (0) 7432-3735-6
+66 (0) 7625-5475
Pak Phanang Branch
Fax
+66 (0) 7431-3543
Fax
+66 (0) 7652-3400
Tel.
+66 (0) 7551-7132,
+66 (0) 7551-7298
Thalang Branch
Tesco Lotus Ranong Branch
Fax
+66 (0) 7551-8021
Tel.
+66 (0) 7631-1020,
Tel.
+66 (0) 7782-6636-8,
+66 (0) 7631-1040
+66 (0) 7782-6639
Patong Branch
Fax
+66 (0) 7631-1433
Fax
+66 (0) 7782-6640
Tel.
+66 (0) 7629-0585-7
Fax
+66 (0) 7629-0588
Thap Thiang (Trang) Branch
Tesco Lotus Lamai (Ko Samui) Branch
Tel.
+66 (0) 7521-8059,
Tel.
+66 (0) 7741-8464,
Phra Phrom Branch
+66 (0) 7421-8590
+66 (0) 7741-8719
Tel.
+66 (0) 7576-3260-1
Fax
+66 (0) 7521-1320
Fax
+66 (0) 7741-8720
Fax
+66 (0) 7576-3262
Thai Mueang Branch
Nakhon Si Thammarat Branch
Phang-nga Branch
Tel.
+66 (0) 7657-1234-7
Tel.
+66 (0) 7532-2689-90
Tel.
+66 (0) 7641-1295,
Fax
+66 (0) 7657-1215
Fax
+66 (0) 7532-2144
+66 (0) 7641-1527-8
Fax
+66 (0) 7641-1326
282
Annual Report 2011 Thanachart Bank Public Company Limited
Huai Yot Branch
Phatthalung Branch
Lee Gardens Plaza Branch
Tel.
+66 (0) 7461-3082,
Tel.
+66 (0) 7423-9010,
Tel.
+66 (0) 7523-5033-5,
+66 (0) 7461-3951-2
+66 (0) 7423-9349
+66 (0) 7527-1013
Fax
+66 (0) 7461-1918
Fax
+66 (0) 7423-0414
Fax
+66 (0) 7527-1064
Phunphin Branch
Songkhla Branch
Hat Karon Branch
Tel.
+66 (0) 7731-1449,
Tel.
+66 (0) 7444-1198-9,
Tel.
+66 (0) 7639-6981,
+66 (0) 7731-1377
+66 (0) 7444-1232
+66 (0) 7639-6485-6
Fax
+66 (0) 7731-1537
Fax
+66 (0) 7444-1233
Fax
+66 (0) 7639-6980
Phuket Branch
Satun Branch
Hat Chaweng Branch
Tel.
+66 (0) 7626-1570-5
Tel.
+66 (0) 7472-5251-3
Tel.
Fax
+66 (0) 7626-1576
Fax
+66 (0) 7472-5254
+66 (0) 7723-1089-90
Fax
+66 (0) 7742-2051
+66 (0) 7723-0405,
Mae Nam Branch
Sam Kong (Phuket) Branch
Tel.
+66 (0) 7724-8375,
Tel.
+66 (0) 7621-2077,
Hat Rin Branch
+66 (0) 7733-2259
+66 (0) 7622-2838-40
Tel.
+66 (0) 7737-5254,
Fax
+66 (0) 7733-2260
Fax
+66 (0) 7622-2841
+66 (0) 7737-5477 +66 (0) 7737-5476
Fax
Yala Branch
Sai Buri Branch
Tel.
+66 (0) 7321-2592,
Tel.
+66 (0) 7341-1021,
Hat Lamai Branch
+66 (0) 7321-3375
+66 (0) 7341-1314-5
Tel.
+66 (0) 7745-8159-60,
Fax
+66 (0) 7321-1691
Fax
+66 (0) 7341-1138
+66 (0) 7745-8162-4 +66 (0) 7745-8161
Fax
Yan Ta Khao Branch
Surat Thani Branch
Tel.
+66 (0) 7528-1003,
Tel.
+66 (0) 7721-4581-7
Hat Yai Branch
+66 (0) 7528-1101
Fax
+66 (0) 7721-3560
Tel.
+66 (0) 7435-4690
Fax
+66 (0) 7528-1102
Fax
+66 (0) 7435-4696
Su-ngai Kolok Branch
Ranong Branch
Tel.
+66 (0) 7361-1359,
Hat Yai Nai Branch
Tel.
+66 (0) 7781-1198,
+66 (0) 7361-1002
Tel.
+66 (0) 7781-1299
Fax
+66 (0) 7361-3632
+66 (0) 7436-1316
Fax
+66 (0) 7781-1751
Fax
+66 (0) 7425-9704
+66 (0) 7436-1313-5,
Na Thon (Ko Samui) Branch
Robinson Trang Branch
Tel.
+66 (0) 7723-6612-3,
Ha Yaek Chalong (Phuket) Branch
Tel.
+66 (0) 7559-0018-9,
+66 (0) 7723-6661-4
Tel.
+66 (0) 7559-0120
Fax
+66 (0) 7723-6611
+66 (0) 7638-3431
Fax
+66 (0) 7522-6157
Fax
+66 (0) 7638-3348
+66 (0) 7638-3222,
Lang Suan Branch
Robinson Ocean
Tel.
+66 (0) 7754-1965,
Ao Nang Branch
(Nakhon Si Thammarat) Branch
+66 (0) 7754-1975
Tel.
+66 (0) 7566-1434,
Tel.
+66 (0) 7534-1875,
Fax
+66 (0) 7754-1987
+66 (0) 7566-1430-2
+66 (0) 7534-1960-1
Fax
+66 (0) 7566-1433
Fax
+66 (0) 7534-1876
Ao Luek Branch Tel.
+66 (0) 7561-0739,
+66 (0) 7563-4335-7
Fax
+66 (0) 7561-0755
Annual Report 2011 Thanachart Bank Public Company Limited
283
Summary of Specified Items per form 56-2 in 2011 Annual Report Items
Page
1. General Information
1.1 Company
1.2 Juristic companies in which the proportion of shares held is 10% or greater
1.3 Other references
259 255 - 259 260
2. Financial highlights
2 - 3
3. Nature of business operations
3.1 Nature of business operations of the Company and subsidiary
31 - 34
and Policy on division of work among member companies of Thanachart Group
3.2 Income structure
34 - 36
3.3 Key changes of business operations
36 - 50
4. Risk factors
51 - 62
5. Shareholders structure and management
5.1 Shareholders
5.2 Management
261
5.2.1 Management structure
5.2.2 Selection and appointment of members of various committees
230 - 231
5.2.3 Remuneration for the Board of Directors and Management
231 - 233
5.2.4 Corporate governance
216 - 230
5.2.5 Rules of proper use of insider information
5.2.6 Internal control and auditing systems
5.3 Dividend policy
235
218 70 - 71 262
6. Related party transactions
215
7. Management discussion and analysis
20 - 30
8. Financial statements
8.1 Financial statements and Notes to financial statements
8.2 Auditor fee
284
Annual Report 2011 Thanachart Bank Public Company Limited
73 -214 215