cover Tbank (10-03-14) copy - Thanachart Bank

ANNUAL REPORT 2013

THANACHART BANK PUBLIC COMPANY LIMITED

AN

NU

AL REPO

RT 2013 TH

AN

AC

HART BAN

K PU

BLIC

C

OM

PAN

Y LIM

ITED

SM

ART G

RO

WTH

900 Tonson Tower, Ploenchit Road, Lumpini,

Pathumwan, Bangkok 10330, THAILAND

Tel. +66 (0) 2655 9000 Fax +66 (0) 2655 9001

Thanachart Contact Center 1770

Thanachart Smartcar Call Center +66 (0) 2217 5555

www.thanachartbank.co.th

Registration No. 0107536001401

SMART GROWTH

002 FinancialHighlights

010 MessagefromtheBoardofDirectors

014 BoardofDirectorsThanachartBankPublicCompanyLimited

016 ManagementDiscussionandAnalysis

028 NatureofBusinessOperations

046 RiskFactors

058 CorporateSocialResponsibility(CSR)

068 ResponsibilitiesoftheBoardofDirectorsfortheFinancialReport

069 ReportoftheAuditCommittee

071 IndependentAuditor’sReport

073 FinancialStatementsandNotetoFinancialStatements

213 CorporateGovernance

224 InternalControlandRiskManagement

226 ReportoftheNominationandRemunerationCommittee

227 SupervisionandManagementStructure

236 BoardofDirectorsandManagementTeam

256 GeneralInformation

InvestmentofTBANKinOtherCompanies

TBANK’sReferences

OtherReferences

StructureofMajorShareholders

DividendPaymentPolicy

CompaniesinThanachartFinancialGroup

BranchesofTBANK

280 SummaryofSpecifiedItemsperform56-2in2013AnnualReport

“Investorscanlearnmoreontheissuingcompany’sannualstatement(Form56-2)

showninwww.sec.or.thortheBank’swebsite:www.thanachartbank.co.th” ThanachartGroupembracesitsenvironmentalresponsibilities

inthereductionofglobalwarmingandconsumptionofnaturalresources.

The2013AnnualReportusedpaperproducedfromfarmedtrees

andwasprintedwithsoy-basedink.

DesignedbyPlanGrafikCo.,Ltd. Tel.022772222

Four Strategic Intents for the Business Operation in 2014

1. We intend to accelerate growth in commercial and unsecured loans under prudent risk standards through

theprovisionofsuperiorserviceandfinancialadvicewhilemaintainingourdominantposition inauto lending.

2. We intend to improveour riskmanagementand reduceLICacrossallportfolios through focusedorigination,

riskbasedpoliciesanduseofmarketleadingtechnologyacrossthecreditcycle.

3. WeintendtoattractnewcustomersandgrowanddiversifyourfundingbasetomeetLCRrequirementsbyoffering

innovativesavings,insuranceandinvestmentproducts.

4. Weintendtohelpourclientssucceedfinanciallyandgrowourfeerevenuethroughrelationship-basedcrossselling

ofthefullsuiteoffinancialproductsandservicestailoredtomeettheirneeds.

Vision of Thanachart Group

To provide fully integrated financial solutions to our targeted customers’ complete financial needs by offering

thehighestqualityofproducts,servicesandadvice.

002 AnnuAl RepORT 2013

FInAncIAl hIGhlIGhTS

consolidated Separate financial statements

AsatandfortheyearendedDecember31

Operating results

(ThB Million)

Interestincome 53,887 48,736 44,052 34,781 21,470 50,549 46,331 29,386 21,397 20,934

Interestexpenses 27,234 25,556 19,636 11,566 6,736 26,489 25,371 14,797 7,375 6,791

Netinterestincome 26,653 23,180 24,416 23,216 14,734 24,060 20,959 14,589 14,022 14,143

Non-interestincome 25,826 12,098 9,465 8,695 17,571 22,958 10,902 6,454 3,322 2,053

Totalincome(1) 52,478 35,277 33,881 31,911 32,305 47,018 31,861 21,042 17,344 16,196

Non-interestexpenses 21,259 21,660 20,747 16,062 23,346 18,487 19,522 12,953 8,053 8,363

Baddebtanddoubtful 11,587 2,980 2,504 2,149 3,107 11,201 4,680 1,422 1,280 2,830

accounts(2)

Netincome(3) 15,385 8,354 7,671 8,777 4,056 14,113 6,855 6,668 5,719 3,547

Operating performance

Basicearningspershare(THB) 2.79 1.52 1.39 1.92 2.19 2.56 1.24 1.21 1.25 1.91

Returnonaverageassets 1.51 0.90 0.89 1.23 1.06 1.46 0.78 1.13 1.31 0.96

(ROAA)(Percent)

Returnonaverageequity 16.99 10.72 10.61 15.52 17.01 16.91 9.55 9.42 10.70 15.20

(ROAE)(Percent)

Interestspread(4)(Percent) 2.59 2.48 2.92 3.33 3.73 2.59 2.58 2.99 3.63 3.66

Costtoincomerationet 40.51 61.40 61.24 50.33 56.51 39.32 61.27 61.56 46.43 51.64

insurancepremiumincome(5)

(Percent)

Statement of financial position

(ThB Million)

Loans 790,017 754,063 635,220 606,851 285,515 750,494 723,023 616,713 326,549 282,577

Totalassets 1,038,349 1,018,620 886,060 873,203 432,970 990,724 953,209 878,053 482,063 413,878

Depositsandborrowings 811,308 776,521 690,336 707,605 356,496 799,186 769,677 729,121 374,883 357,664

Totalliabilities 941,109 934,435 810,526 800,809 405,098 901,572 875,708 807,169 415,327 387,523

Shareholders’equity(6) 96,218 83,330 74,848 72,183 27,811 89,153 77,501 70,884 66,737 26,355

Remark FinancialStatementAppearanceinaccordancewiththenotificationoftheBOTRe:thePreparationandAnnouncementofFinancialStatementsofFinancialInstitutions

dated28December2010orSorNorSor11/2010resultedinchangevariousitems.However,theBankanditssubsidiarieshaverevisedthefinancialstatementfortheyear2011

(exeptingY2010)foranalysisandcomparison

1. Interestincomeexcludesdividendincome

2. InterestexpenseincludescontributionfeetoDepositProtectionAgency

3. Non-interestincomeincludesfeepaidrelatedtoincomeandinsurance/lifeinsruanceexpenses

4. Non-interestexpenseexcludesfeepaidrelatedtoincome,insurance/lifeinsuranceexpenseandcontributionfeetoDepositProtectionAgency

5. Financialratiosarecalculatedondisclosurefinancialstatement

2013 2012 2011 2010 2009 2013 2012 2011 2010 2009

(Restated) (Restated)

003ThAnAchART BAnk puBlIc cOMpAny lIMITed

consolidated Separate financial statements

AsatandfortheyearendedDecember31

Asset quality

Loanstodepositsand 97.38 97.11 92.02 85.76 80.09 93.91 93.94 84.58 87.11 79.01

borrowingsratio(Percent)

NPL-grosstototalloans 4.23 4.10 5.58 5.60 2.57 3.09 2.63 2.74 2.26 2.49

(Percent)

NPL-nettototalloans(Percent) 2.19 2.05 2.64 2.48 0.58 1.69 1.35 1.45 0.57 0.59

Coverageratio(7)(Percent) 85.19 74.21 69.75 71.22 96.41 88.17 76.92 71.53 97.66 92.33

TotalallowancetoBOT 128.17 122.31 104.27 108.05 111.66 134.37 103.12 103.12 105.32 102.85

regulation(Percent)

Non-performingloans(NPL) 35,313 32,501 37,677 36,859 8,675 24,394 20,036 17,989 7,648 8,359

(THBMillion)

capital measures

TierIcapitalratio(Percent) 9.47 8.49 9.28 11.71 8.65

Totalcapitalratio(Percent) 14.80 13.99 13.72 14.75 14.10

Riskweightedassets(THBMillion) 747,992 724,801 664,103 609,277 273,366

common share information

Commonsharesoutstanding

(Millionshares)

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

-Endofperiod 5,514 5,514 5,514 5,514 1,935 5,514 5,514 5,514 5,514 1,935

Bookvalue(THB) 17.45 15.11 13.58 13.09 14.38 16.17 14.06 12.86 12.10 13.62

Dividendspershare(THB) 0.37 0.35 0.40 0.56

Other information

Employees 15,358 15,193 16,298 16,846 9,368 13,286 13,642 14,152 7,871 7,470

Branches 621 630 676 256 256

Exchangebooth 54 55 79 89 92

DefinitionandFormula(1)Totalincome=Netinterestincome+Non-interestincome

(2)Includinglossondebtrestructuring

(3)Excludingminorityinterest/non-controllinginterest

(4)Interestspread=Yield-Costoffund

Yield=Interestincome/Averageearningassets

Earningassets=Interbankandmoneymarketfrominterestbearing+netinvestment+loans

Costoffund=Interestexpenses/Averagepayingliabilities

Payingliabilities=Totaldeposits+interbankandmoneymarketfrominterestbearing+totalborrowings

(5)Costtoincomeratio=Non-interestexpenses/Totalincome

(6)Excludingminorityinterest/non-controllinginterest

(7)Totalallowance/NPL

2013 2012 2011 2010 2009 2013 2012 2011 2010 2009


The core mission of the Thanachart Group is to help our customers become better off

financially by providing customized solutions to meet their unique needs. With a foundation of

strong capital and liquidity, the full suite of financial products and market leading technology

and efficient processes, we are well positioned to deliver on our promise to customers

and generate sustainable growth and returns to all our stakeholders.

SMARTGROWTH

The key to our long term success is the quality and

service focus of our people. The Thanachart Group

is committed to strengthening our team through

ongoing investment in leadership, staff development,

accountability and empowerment of our teams

throughout the organization. With our staff

fully dedicated to serving our customers,

we look to the future with confidence.

peopleOUR STRenGTH

SMESHOP

INNoVATIoNOUR DRIVe

Customer needs are constantly evolving as is

the way they want to deal with their financial

services provider. In addition to innovative products

and services, clients increasingly look for new

and easier ways to obtain the services they need.

At the Thanachart Group, we are introducing

new services to increase customer convenience

and making substantial investments to improve

and expand our electronic channels and social

media access so that customers can bank with

us when it is best for them.

The financial services industry in Thailand is increasingly competitive with client needs

becoming ever more sophisticated. We are making substantial investments in our people,

processes and technology in order to allow us to efficiently meet customer needs and

control our operating costs and deliver long term sustainable growth to all our stakeholders.

effICIeNCyOUR GOAl

youOUR fOcUS

The Thanachart Group is committed to operating at the highest standards of ethics and good governance.

With our customers at the centre of all our activities, we actively participate in promoting the quality of life of

the Thai people and society. The Group also supports various activities that are beneficial for youth and which

promote our national culture for the sustainable growth of our organization and the society as a whole.


The banking industry in 2013 continued to face

challengesdue toslowinggrowth,higherconsumerdebt

and adjustments required to complywith extensive new

regulations.TheBankofThailandregulateslocalandforeign

commercialbanksoperatinginThailandandrequiresthemto

complywiththeBaselIIIGuidelineseffectiveon1January

2013,which increases capital and liquidity requirements.

This along with the promulgation of the Anti-Money

LaunderingAct(No.4),B.E.2556andtheCounter-Terrorism

FinancingActB.E.2556impactedbanks’activitiesaswell

asincreasesadministrativeandfinancingcostsinorderto

complywiththenewregulations.However,inthelongterm,

suchchangesshould reducesystemic risksandsupport

sustainablegrowthintheoveralleconomy.Despiteallthese

challenges,thebankingindustrystillgeneratedloangrowth,

thoughatalowerlevel,coincidingwiththeslowgrowthof

Thaieconomy.Thereduceddemandforautohirepurchase

loanswas apparent in the secondhalf of the year after

thematurityofthefirst-timecarbuyerincentiveprogram.

Bankdepositscontinuedtoexpandandwithstrongmarket

liquidity,westartedtoseeaneasingofthefiercepricing

competition seen in earlier periods. Of note, the overall

banking industry continued to demonstrate good credit

qualitywithimprovingreservecoverageandcapitalratios.

Dear Shareholders,

Inthepastyear,theglobaleconomybegantoemerge

afterthefinancialcrisiswithadvancedeconomiesstartingto

gainmomentum.TheUSeconomyshowedamodestrecovery

whichledtotheUSFederalReserve’sdecisiontobegin

reducingitsbondpurchasesundertheQuantitativeEasing

Program. Also, the EU economy experienced a fledgling

recovery,albeitatastillmodestpacewithhighunemployment

stillprevalentinmanycountries.Meanwhiletheeconomic

growthofAsiancountrieswasatagradualpaceunderpinned

bythegrowthinChina,andtheresumptionofgrowthin

Japandrivenbytheyen’sdepreciationandthegovernment’s

economicstimulusmeasures.Onthedomesticeconomic

front,theThaieconomicgrowthdeceleratedinthesecond

half of the year impacted by slowing growth in China,

theongoingpoliticalunrestwhichdelayed the launchof

thegovernment’sinfrastructuredevelopmentprogram,and

increasinghouseholddebt,allofwhichcombinedtoreduce

privatesectorconsumptionandinvestment.Moreover,export

growthperformedbelowthetarget,beingimpactedbythe

tepidglobaleconomyandtheBaht’sappreciationduring

thefirsthalfof2013.

(Mr. Banterng Tantivit)

Chairman

oftheBoardofDirectors

MeSSAGe FROM The BOARd OF dIRecTORS


ForThanachartBank,2013wasayearofstrong

accomplishmentaswecontinuedtomoveforwardwithour

strategicoptimizationinitiativeswhileensuringwemeetthe

dailyneedsofourcustomersandgenerategoodresultsfor

ourshareholders.Ourprogresswasrecognizedaswewere

named“theFastestGrowingRetailBankThailand2013”

fromGlobalBanking&FinanceReviewand“theTrusted

Brand2013”fromReader’sDigestforourmarketleading

AutoHirePurchasebusiness.Earlierthisyear,wecompleted

thesaleof100-percentofThanachartLifeAssurancePlc.

to Prudential Life Assurance (Thailand) Plc. The capital

gain from this sale has further strengthenedour capital

base.With thecommencementof theexclusive15-year

bancassurance partnership, we have started distributing

PrudentialThailand’sgloballeadinglifeinsuranceproducts

throughourextensivebranchnetworkacrossthecountry.

Thisrelationshipenablesourwell-trainedstafftoprovide

betterproductsandservicestocustomerstomeettheirsavings

andprotectionneedsandhelpsincreaseourfeeincome.

During theyear,with thesupportofourstrategic

shareholder-the Bank of Nova Scotia, we made good

progressonourstrategicprioritiesandcontinuedtodeliver

keyinfrastructureandsystemimprovements(“Optimization

Initiatives”)throughouttheyear.Forexample,ourbranch

redesigned Sales & Service Program and Customer

RelationshipManagement tool continues to be launched

throughourbranchnetwork,retailCreditScoringhasbeen

launched and we are completing the Loan Origination

SystemwhichistobelaunchedinQ22014.Wecontinue

toreengineerkeybusinesslinesandprocessesincluding

ourCustomerContactCenter,HousingLoans,Commercial

Banking,Collectionsandothersinordertofurtherimprove

servicetocustomers.TheseOptimizationInitiativesimprove

our competitive position in many areas, enabling us to

providesuperiorcustomerexperience,increaseproductivity,

grow high-yielding loans, and increase fee incomewhile

maintainingourmarketdominance inautohirepurchase

business.Wealsodeliveredvariousprocessimprovements

in branches, auto hire purchase, telesales and Shared

Services,byadoptingtheSixSigmaprincipletostreamlineand

improve our processes. Numerous Strategic Sourcing

initiatives also play a key role in optimizing our supply

baseandreducingassociatedcosts.Inlinewithincreased

marketrisks,werealignedourriskmanagementandcredit

policiesforprudentriskmanagementwhilestrengtheningour

collections infrastructure through the launchofpredictive

dialertechnology.Inaddition,welaunchedseveralinnovative

(Mr. Suphadej poonpipat)

Chairman

oftheExecutiveCommittee


productsandservicessuchas‘Paperless’BankingforDeposit,

Withdraw,TransferandBillPaymentAISmPAYMasterCard

(on-lineshoppingwithpre-paidcard),ThanachartPay‘NGo

(newmobilepointofsalesservice),ElectronicJuristicPerson

CertificateIssuance,toenhanceconvenienceforcustomers.

Tofullysupportalloftheseinitiativesandweplacedstrong

effortinimprovingourhumancapitalbyretainingtalentand

developing leadership throughout the organization. As

detailed above,we have fully committed ourselves to be

“theDoingBank”,andtosupportthisthemeandincrease

marketawareness,welaunchedanewbrandinginitiativethis

yearwithstrongadvertisingandpromotionalsupportacross

allchannelswhichhasresultedinanincreaseinfavorable

awarenessofThanachartBank.

Intermsofperformance,wepostedasatisfactory

netprofitofTHB15,385millionin2013,bolsteredbythe

capitalgainfromthesaleofThanachartLifeAssurancePlc.

Excludingthisgainandextraprudentialreservessetasidein

linewithBoTguidelines,underlyingNetIncomeincreasedby

ahealthy21%in2013.Westronglyemphasizedefficiency

acrosstheorganizationwiththeincreaseininterestincome

attributabletogoodloangrowthaswellasimprovedinterest

spreadarisingfromtheefficientcostoffundsmanagement.

Meanwhile,feeincomeandotheroperatingincomewentup

thankstoimprovingcross-sellingandsynergiesgenerated

acrossallsubsidiariesunderthegroupresultingintheirimproved

performances.Finally,throughclosecontrolofdiscretionary

expensesandareduction infixedcosts(despiteongoing

investment in new processes and technology) from our

OptimizationInitiatives,totaloperatingcostsdecreasedby4%in

2013leadingtoastrongimprovementinourcosttoincomeratio.

2014isexpectedtobeachallengingyearfortheThai

bankingsector.Withuncertaintiesfrombothlocalandoverseas

markets,thegrowthofoverallbankingindustryisexpectedto

decelerate.Aprolongedpoliticalturmoilwillnotbeconducive

topublicandprivateinvestment,whilethetaperingofthe

QuantitativeEasingProgrambyUSFederalReservewillcause

arebalancingincapitalflowsandmayimpactmarketliquidity

andlongterminterestrates.Theexistinghighhouseholddebt,

asaresultofthere-buildingeffortsfollowingthedevastating

floodsandtheutilizationofgovernmentstimulusmeasures

includingthefirst-timecarbuyerprograminrecentyears,

has already impacted consumer credit demand and debt

servicingability.Finally,regulatorypressurewillcontinuewith

BaselIIIimplementationandtheimplementationtheForeign

AccountTaxComplianceAct(“FATCA”).

(Mr. Somjate Moosirilert)

ChiefExecutiveOfficer

andPresident


ThanachartBankiswellpositionedtomeetthese

challengeswithstrongcapitalandliquidityandincreasingly

diversified opportunities for growth across the financial

servicesindustry.Inadditiontodetailed,customerfocused

business strategies, we will continue to implement our

OptimizationInitiativeswhichwillimproveourinfrastructure

and end-to-end processes across the Group. Most

importantly, these investments in state-of-art technology

andprocessredesignalongwithenhancedstafftraining

will enableus tosignificantly improvesalesproductivity

acrossallchannelsandallowustobuilddeepercustomer

relationships, better respond to their needs and offer

a differentiated customer experience. Through these

investmentsinourpeopleandinfrastructure,wewillcontinue

to accelerate growth in high-yielding products while

maintainingourdominantpositioninautolending.Moreover,

wehavestrengthenedourriskmanagementandwillreduce

creditcostsacrossallportfoliosthroughfocusedorigination,

riskbasedpoliciesanduseofmarketleadingtechnology

across the credit cycle. Simultaneously, we will attract

newcustomersandgrowanddiversifyourfundingbase,

particularlycurrentandsavingsaccountsatanappropriate

cost level,byoffering innovativesavings, insurance,and

investmentproducts.Wearealsodeterminedtohelpour

clientssucceedfinanciallyandgrowourfeerevenuethrough

relationship-basedcrosssellingofthefullsuiteoffinancial

productsandservicestailoredtomeettheirneeds.Lastbut

notleast,wewillpursueon-goingstrategicsourcingand

costmanagement initiativeswhile furtherdevelopingour

leadershipteamassstrategiccompetitiveadvantage.

Theadvancementsweachievedin2013aretheresult

of the focused commitment by all of staff to fulfill our

strategicintentsandsupportourcustomers.Thisunwavering

supportandloyaltyofourstaff,customers,partners,and

shareholdershasbeenasourceofenduringstrengthfor

ourBank.Wewill continue todrawon this strengthas

wemeetthechallengesaheadandarefullyconfidentof

abrighterfutureinthecomingyears.

(Mr. Brendan king)

ViceChairmanoftheExecutiveCommittee

andDeputyChiefExecutiveOfficer


BOARd OF dIRecTORS

ThAnAchART BAnk puBlIc cOMpAny lIMITed

10. Mr. Rod Michael

Reynolds

Director,

MemberoftheNomination

andRemunerationCommittee

1. Mr. Banterng Tantivit

Chairman

7. Mr. narong

chivangkur

IndependentDirector,

ChairmanoftheNomination


4. Mr. Brendan George

John king

Director,

ViceChairmanoftheExecutive

Committee


2. Mr. Suphadej

poonpipat

ViceChairman,Chairman

oftheExecutiveCommittee

5. Ms. Suvarnapha

Suvarnaprathip

Director,

ViceChairpersonof

theExecutiveCommittee

8. Mr. Sataporn

Jinachitra


MemberoftheAuditCommittee,

MemberoftheNomination


11. Mr. kobsak

duangdee

Director

9. Assoc. prof.

dr. Somjai

phagaphasvivat


MemberoftheAudit

Committee

12. Mr. Alberto Jaramillo

Director

6. Mr. kiettisak

Meecharoen


ChairmanoftheAudit

Committee

3. Mr. Somjate

Moosirilert

Director,

MemberoftheExecutive

Committee

016 AnnuAl RepoRt 2013

MAnAgeMent Discussion AnD AnAlysis

(Based upon operating results recorded in financial statements of 2013 comparing to that of 2012)

Major events in 2013

• As an accounting standard of TAS 12 Income Taxes became effective in 2013, Thanachart Bank Public Company

Limited (the Bank) and its subsidiaries were to ensure compliance with the aforementioned and, as a result, the Bank was

required to adjust the past records as if the standard had been applied throughout in the past including the period when

the acquisition of Siam City Bank Public Company Limited (SCIB) took place. Therefore, all items related to the merging i.e.

deferred tax assets concerning assets and liabilities in SCIB’s accounts, increase in fair value of SCIB’s assets, and intangible

assets, were to be adjusted to determine reallocation of cost of business combination which resulted in an increase in goodwill

of THB 2,202 million.

Furthermore, in adopting this accounting standard, the Bank and its subsidiaries were to adjust financial statements

as of December 31, 2012, which resulted in an increase in deferred tax assets and liabilities of THB 523 million and THB

2,060 million, respectively and consequently affected carry-over retained earnings of THB 1,167 million.

• On May 3, 2013, the Bank and Prudential Life Assurance (Thailand) Public Company Limited (Prudential) had signed

a 15-year Bancassurance Agreement. The Bank had transferred 328,500,000 of Thanachart Life Assurance Public Company

Limited (TLIFE)’s common shares, or 100 percent of total shares to Prudential and received a payment of THB 17,500 million

in return in accordance with the agreed terms. For a post-completion adjustment to be made to reflect the net asset value

as at the completion date and a further payment of THB 500 million were due in 12 months after the completion date.

The transaction would be recognized when the transfer of the shares and related payment are complete.

Gain on disposal of THB 12,216 million recorded in the consolidated financial statements and THB 13,128 million

in the separate financial statements were recognized in statements of comprehensive income for the year 2013. To be in

compliance with the accounting standard, TLIFE’s operating results, included in the consolidated statements, were separately

presented as “profit for the year from discontinued operations” item of 2013 and 2012. However, for Management Discussion

and Analysis, the item was recorded as non-interest income under item of other operating incomes. As for the analysis, the

item was excluded to reflect the true operating results of the Bank and its subsidiaries.

consolidated Financial statements were of tBAnK and its subsidiaries as follows:

Subsidiaries by mean of direct share-holding

SCIB Public Company Limited (formerly known as “Siam City Bank Public Company Limited”)

Thanachart Securities Public Company Limited

Thanachart Insurance Public Company Limited

Thanachart Life Assurance Public Company Limited

Thanachart Fund Management Company Limited

Thanachart Broker Company Limited

Thanachart Group Leasing Company Limited

Thanachart Management and Services Company Limited

Thanachart Legal and Appraisal Company Limited

Thanachart Training and Development Company Limited

017thAnAchARt BAnK puBlic coMpAny liMiteD

statement of comprehensive income 2013

increase/

(Decrease)

percentage

2012

Variance

Interest income 53,887 48,736 5,151 10.57

Interest expenses 27,234 25,556 1,678 6.57

Net interest income 26,653 23,180 3,473 14.99

Net fees and service income 6,903 5,070 1,833 36.15

Other operating income(1)

18,569 5,816 12,753 219.28

Other operating expenses(2)

21,259 21,660 (401) (1.85)

Profit (loss) before impairment loss of

loans and debt securities 30,865 12,406 18,459 148.80

Impairment loss of loans and debt securities 11,587 2,980 8,608 288.91

Profit (loss) before income tax 19,278 9,427 9,851 104.51

Income tax 4,031 2,076 1,955 94.20

Profit for the year from continuing operations 15,247 7,351 7,896 107.42

Profit for the year from discontinued operations 354 1,212 (858) (70.77)

Net profit 15,601 8,563 7,039 82.21

The Bank’s 15,385 8,354 7,031 84.16

Non-controlling interests’ 216 208 8 3.68

Earnings per share (baht) 2.79 1.52

Weighted average number of ordinary shares

(million shares) 5,513.66 5,513.66

TS Asset Management Company Limited

Siam City Life Assurance Public Company Limited

SCIB Service Company Limited

Ratchthani Leasing Public Company Limited

Subsidiary by mean of indirect share-holding

National Leasing Company Limited

overall operating Result

(Analysis comparing performance of 2012 and 2013 based on financial statements)

(Unit: THB Million)

Note: (1)

Operating income deducted by underwriting expenses

(2)

Excluding underwriting expenses


The Bank and its subsidiaries had a net profit for

the year 2013 of THB 15,601 million, of which THB 15,385

million was the Bank’s; increased by THB 7,031 million or

84.16 percent comparing to the previous year as a result of

an extra profit from disposal of investment in a subsidiary

company by setting special provision. If excluded the item,

in 2013, the Bank’s net profit of Bank and its subsidiaries

would total THB 10,101 million; increased from the previous

year by THB 1,747 million or 20.91 percent. Changes in key

drivers of the business were as follows:

• Interest spread increased to 2.59 percent from

2.48 percent in the previous year. Yield on earning asset was

at 5.76 percent, decreased from 5.82 percent as a result of

policy interest adjustments; from 2.75 percent to 2.50 percent

during the 2nd

quarter of 2013 and again to 2.25 percent

during the last quarter of 2013. Yield decreased partially

because of ceasing of revenue recognition from non-

performing loans. Cost of fund was at 3.17 percent, decreased

from 3.34 percent as a result of efficient cost and liquidity

management that enhanced competitiveness by expanding

loan growth. The decrease in cost of fund was also a result

of the policy rate adjustments as aforementioned.

• Increase in non-interest revenue (excluding

special items) of 12.50 percent from banking and securities

fees, net profit from investment, and dividend income. Non-

interest income ratio in 2013 was at 33.80 percent and when

considered non-interest income to average asset to mitigate

impact of interest spread, the ratio was at 1.33 percent.

• Control and management of operating expenses

under the Cost Control policy, cost to income ratio in

2013 was at 52.80 percent, decreased from 61.40 percent

and when considered operating expense to average asset,

the ratio was at 2.08 percent.

• Credit cost in 2013 was at 0.78 percent (excluding

extra provision of the Bank and its subsidiaries), increased

from end of the previous year of 0.40 percent as a result

of loss on sales according to demand and supply condition

in the used-car market. As for non-performing loans as of

December 31, 2013, the amount totaled THB 35,313 million,

increased from the previous year of THB 32,501 million on

account of growth in hire purchase loan volume. The Bank

had formulated policies and management procedures to

ensure efficient debt collection. Furthermore, an increase

in non-performing loan, mainly attributed to major debtors,

was fully covered by the Bank’s reserve so that its financial

statements were not affected. NPL ratio was at 4.23 percent

comparing end of the previous year of 4.10 percent.

• Capital adequacy: the Bank’s total capital counted

following the Basel III requirements as of December 31,

2013 was THB 110,683 million, consisting of Tier I capital

(Common Equity Tier I and Additional Tier I) of THB 70,818

million and Tier II capital of THB 39,865 million. Capital

adequacy ratio was at 14.80 percent comparing to 13.99

percent as of the end of 2012. The Bank’s capital fund

included profit from operating result in the first half of 2013

and was affected by the changes from Basel II to Basel III

and dividend payment in April 2013.

net interest income

In 2013, the Bank and its subsidiaries had a net interest

income of THB 26,653 million, increased by THB 3,473 million

or 14.99 percent comparing to previous year. Total interest

income was of THB 53,887 million, increased by THB 5,151

million or 10.57 percent, while interest expense was of THB

27,234 million, increased by THB 1,678 million or 6.57 percent.

This result in interest spread to increase from the previous

year of 2.48 percent to 2.59 percent in 2013.


non-interest income

Non-interest income comprised net fees and service

income, net underwriting income, and other operating income,

totaling THB 13,610 million; increased from the previous

year by THB 1,512 million or 12.50 percent. Non-interest

income ratio in 2013 was at 33.80 percent and when taking

Non-interest income to average asset into consideration to

mitigate impact from interest spread, the ratio was at 1.33

percent. Details of changes were as follows:

• Net fee and service income

The Bank and its subsidiaries earned from net

fee and service income an amount of THB 6,903 million,

increased by THB 1,833 million or 36.15 percent from growth

in customer base and more diversified financial products of

the Bank and subsidiaries. Total fee and service income was

THB 8,793 million, increased by THB 2,237 million or 34.13

percent, whereas total fee and service expense was of THB

1,890 million, increased by THB 405 million or 27.24 percent.

• Other operating income

Other operating income comprised net gain

(loss) from trading and foreign exchange transactions, net

profit from investments, shares of profit from investments in

associated companies under the equity method, dividend

income, profit from sales of property foreclosed and other

assets, underwriting income, and others. In 2013, total other

operating income was THB 6,707 million, decreased from the

previous year by THB 321 million or 4.56 percent mainly due

to disposal of investment in TLIFE, and was compensated

by fee income. An increase in profit from investment was

partially due to receipt of repayment from closing Vayupak

fund. Underwriting income, dividend receipt, and shares of

profit from investments in associated companies under the

equity method were still on an improving trend.

other operating expense

In 2013, other operating expense was THB 21,259

million, decrease by THB 401 million or 1.85 percent, as a

result of efficient cost control. Cost to Income Ratio was

at 52.80 percent, decreased from 61.40 percent and when

taking operating expense to average asset into consideration,

the ratio was at 2.08 percent.

impairment loss on loans and Debt

securities

In 2013, impairment loss on loans and debt securities

(excluding extra reserves of the Bank and its subsidiaries)

totaled THB 6,207 million. Credit cost was at 0.78 percent,

increased from the previous year of 0.40 percent as a result

of loss on sales due to demand and supply condition in the

used-car market.


Assets

Cash 17,940 15,181 2,759 18.17

Interbank and money market items-net 69,697 71,963 (2,266) (3.15)

Investments-net 138,825 146,106 (7,281) (4.98)

Net loans to customers and accrued interest receivables 760,943 731,010 29,933 4.10

Property foreclosed-net 6,291 6,461 (170) (2.63)

Land, premises and equipment-net 8,037 8,292 (255) (3.08)

Goodwill 17,951 17,951 0 0.00

Other assets 18,665 21,656 (2,991) (13.81)

Total assets 1,038,349 1,018,620 19,729 1.94

Liabilities and equity

Deposits 719,079 698,372 20,707 2.97

Interbank and money market items-net 81,082 87,777 (6,695) (7.63)

Liability payable on demand 3,219 4,989 (1,770) (35.48)

Debt issued and borrowings 92,229 78,149 14,080 18.02

Provisions 3,146 2,976 170 5.71

Insurance contract liabilities 15,019 39,632 (24,613) (62.10)

Other liabilities 27,335 22,540 4,795 21.27

Total liabilities 941,109 934,435 6,674 0.71

Equity attributable to the Bank 96,218 83,330 12,888 15.47

Non-controlling interest of the subsidiaries 1,022 856 166 19.39

Total liabilities and equity 1,038,349 1,018,620 19,729 1.94

Financial position of the Bank and its subsidiaries’

The Bank and its subsidiaries’ total assets, as of December 31, 2013, was THB 1,038,349 million, increased from end

of 2012 by THB 19,729 million or 1.94 percent. The increase was mostly attributed to volume of loan to customers and net

interest receivables of THB 29,933 million or 4.10 percent as a result of growth in hire purchase business of 10.96 percent

from end of the previous year. Proportion of Retail and SMEs business volume was 69 : 31.

consolidated Balance sheet

consolidated Balance sheet

December 31,

2013

December 31,

2013

increase/

(Decrease)

increase/

(Decrease)

percent

percent

December 31,

2012

December 31,

2012

Variance

Variance

(Unit: THB Million)

(Unit: THB Million)


Total liabilities of the Bank and its subsidiaries as of December 31, 2013 was THB 941,109 million, increased from the

previous year by THB 6,674 million or 0.71 percent. The increase was mostly accounted for the followings:

• Deposits of THB 719,079 million, increased by THB 20,707 million or 2.97 percent from end of 2012 as a result of

a deposit mobilization restructuring via financial products; Ultra Saving, short-term fixed deposits, fixed deposits with special

rates. Throughout the year, strategies for launching new product and interest rate were formulated to match the policy rate

and the market condition.

• Net Interbank and money market items of THB 81,082 million, decreased by THB 6,695 million or 7.63 percent as

a result of liquidity management of the Bank.

• Debt issued and borrowings of THB 92,229 million, increased by THB 14,080 million or 18.02 percent on account

of issuance of short-term debentures.

Shareholders’ equity as of December 31, 2013 was of THB 96,218 million, increased by THB 12,888 million or 15.47

percent from end of 2012. The increase was mainly attributed to profit from operations in 2013. Whereas, dividend payment was

made out of the 2012 net profit at a rate of THB 0.37 per share, amounting to a total dividend payment of THB 2,040 million.

Asset Quality

The asset quality was considered based on consolidated financial statements.

1. net loan to customers and accrued interest receivable

As of December 31, 2013, the Bank and its subsidiaries’ net loan to customers and accrued interest receivables

counted following the Bank of Thailand (BOT)’s regulations totaled THB 759,763 million, increased from end of 2012 by THB

27,254 million or 3.72 percent. During the year 2013, the Bank and its subsidiaries had made debt restructuring agreements

with 4,789 debtors in various arrangements; amending terms of repayment, transferring assets and/or shares and/or amending

terms of repayment, of which outstanding before undergoing the debt restructuring program was approximately THB 11,303

million. The Bank and its subsidiaries had a total of 44,471 out of 1,863,776 debtors joined the debt restructuring program by

the end of 2013 of which their principal and accrued interest receivable amounting to THB 30,377 million.

Loan diversification

At the end of 2013, proportion of total loans comprised hire purchase of 55.71 percent, followed by housing loans

of 10.59 percent, manufacturing and commerce of 10.25 percent, public utilities and services of 8.64 percent, real estate and

construction of 6.41 percent, and others of 8.41 percent.

10.25%

Manufacturing

and Commerce

11.78%

Manufacturing

and Commerce

8.41%

Others

9.44%

Others

55.71%

Hire Purchase

52.63%

Hire Purchase

10.59%

Housing Loans 10.96%

Housing Loans

8.64%

Public utilities

and services

8.39%

Public utilities

and services

6.41%

Real Estate and

Construction

6.81%

Real Estate and

Construction

Loans to Customers Classified

by Type of Business in 2013

Loans to Customers Classified

by Type of Business in 2012


2. loans to customers classified in accordance with the Bot’s regulation

As of December 31, 2013, the Bank and its subsidiaries had an outstanding of loan granted and accrued interest

receivable classified in accordance with the BOT’s guidelines of THB 759,763 million, increased from the previous year by

THB 27,254 million or 3.72 percent. Allowance for doubtful accounts, as of December 31, 2013, was set at THB 28,240 million

and total allowance for doubtful accounts to total loans and accrued interest receivable was 3.72 percent.

loans to customers and

accrued interest receivables December 31,

2013

December 31,

2013

December 31,

2012

December 31,

2012

Debt balance(1)

Allowance for doubtful accounts

Normal 689,679 671,590 7,163 4,834

Special mentioned 34,903 28,554 4,217 1,475

Substandard 6,133 5,273 2,705 3,535

Doubtful 9,324 4,529 5,125 2,393

Doubtful of loss 19,724 22,563 9,022 10,109

Total 759,763 732,509 28,232 22,346

Additional allowance for doubtful accounts 8 499

Total allowance for doubtful accounts 28,240 22,845

Ratio of total allowance for doubtful accounts to loans to customers and accrued

interest receivables (percent) 3.72 3.12

(Unit: THB Million)

Borrowers classified by the Bot’s regulations

Note: (1)

Debt balance/book value of normal and special mentioned accounts excluded accrued interest receivables.


3. non-performing loans

As of December 31, 2013, the Bank and its subsidiaries had a total non-performing loan of THB 35,313 million,

increased by THB 2,812 million from 2012 as a result of growth in hire purchase loan volume. The Bank had formulated

policies and management procedures to ensure efficient debt collection. Furthermore, an increase in non-performing loan,

mainly attributed to major debtors, was fully covered by the Bank’s reserve so that its financial statements were not affected.

NPL ratio was at 4.23 percent.

December 31, 2013 December 31, 2012

Total non-performing loans (NPLs) 35,313 32,501

NPLs to total loans (percent) 4.23 4.10

NPL-net under BOT’s regulations 18,289 16,929

NPL-net (percent) 2.19 2.05

(Unit: THB Million)

non-performing loans

56.04%

Doubtful of Loss

26.51%

Doubtful

17.45%

Substandard

NPLs Classified by Type of Business NPLs Classified by Loan Classification

8.35%

Others

18.30%

Services

29.55%

Manufacturing

and Commerce

7.79%

Real Estate and

Construction

12.60%

Housing Loans

23.43%

Hire Purchase

Loans


4. investment in securities

In 2013, the Bank and its subsidiaries had a total investment in securities of THB 138,254 million. A major

portion of approximately 63.32 percent was invested in government and state enterprises securities, followed by 22.49 percent

in private debt securities. After adding (deducting) allowance for change in values and impairment, net investment was

THB 138,825 million, decreased from 2012 of THB 146,106 million, Details were as follows:

type of investmentDecember 31,

2013

December 31,

2012percent percent

Debt securities

Government and state enterprise securities

• Trading 5,150 3.73 5,745 3.97

• Available-for-sale 71,398 51.64 55,220 38.16

• Held-to-maturity 10,986 7.95 21,756 15.03

Private debt securities

• Trading 5,266 3.81 5,683 3.93


• Held-to-maturity 352 0.25 2,731 1.89

Foreign debt securities

• Trading 0 0.00 620 0.43


• Held-to-maturity 0 0.00 0 0.00

Equity securities

Listed securities

• Trading 17 0.01 16 0.01

• Available-for-sale 987 0.71 7,062 4.88

Investment in receivables

• Held-to-maturity 2 0.00 5 0.00

Other investment 3,925 2.84 4,714 3.26

Total debt securities 138,254 100.00 144,706 100.00

Add (less): Allowance for change in value 594 1,456

Allowance for impairment (23) (56)

Total investment-Net 138,825 146,106

(Unit: THB Million)

securities investment classified by types of instruments


Liquidity

At the end of 2013, the Bank and its subsidiaries had a net cash flow used in financing activities of THB 9,526 million,

investing activities of THB 4,495 million, and operating activities of THB 7,790 million, attributed to a net increase in cash of

THB 2,759 million. At the end of the year, the Bank and its subsidiaries had THB 17,940 million in cash and cash equivalents,

mainly consisted of the following:

• Cash flows from operating activities were generated by increase in deposits of THB 20,707 million and decrease

in loans of THB 50,015 million.

• Cash flows from investing activities were generated by interest from investments of THB 4,119 million, dividend

received of THB 666 million, increase in cash flows used in new investment of THB 17,843 million and cash payment for

equipments purchase of THB 559 million.

• Cash flows from operating activities were generated by repayment of borrowings of THB 77,020 million and cash

received from borrowings of THB 91,100 million.

Relations between sources and uses of funds

In 2013, the Bank and its subsidiaries’ sources of fund provided deposits and borrowings of THB 719,079 million and

THB 92,229 million respectively. Uses of fund in loans and investments were THB 790,017 million and THB 138,254 million

respectively.

Breakdown of sources and uses of fund by remaining tenor to maturity dates of the financial instruments as of

December 31, 2013, a major portion of 58.50 percent of total sources of fund was from deposits that would reach maturity

within 1-year period and another 30.71 percent was from deposits at call whereas, uses of fund were mainly in loans with

remaining tenor of over 1 year, equivalent to a proportion of 64.48 percent of total uses of fund and those with remaining

tenor of less than 1 year of 28.25 percent. However, this incongruence between the sources and uses of fund was common

characteristic found in commercial banking and financial institutions industry as most depositors tend to keep the matured

cash deposited after the due date. Furthermore, the Bank had formulated policies and executed accordingly to minimize

such discrepancy between the sources and uses of fund utilizing financial instruments with effective risk management quality.

Employing such method would allow the Bank to receive warning signals in early stages regarding the possible impacts

on the sources and uses of fund. Key items of the sources and uses of fund classified by remaining tenor to maturity date

as of December 31, 2013 were as follows:

Major changes items 2013 2012

Net cash flows from (used in) financing activities (9,526) 181,182

Net cash flows from (used in) investing activities 4,495 3,264

Net cash flows from (used in) operating activities 7,790 (185,271)

Net increase (decrease) in cash 2,759 (824)

Cash at beginning of the year 15,181 16,006

Cash at end of the year 17,940 15,182

(Unit: THB Million)

026 AnnuAl RepoR

t 2013

As of December 31, 2013, the Bank’s total capital funds were THB 110,683 million, of which THB 70,818 million

was counted as Tier I capital and THB 39,865 million as Tier II capital. The capital adequacy ratio was at 14.80 percent,

higher than end of the previous year of 13.99 percent, comprising 9.47 percent of Tier I and 5.33 percent of the Tier II.

An increase in total capital funds was on account of inclusion of profit gained from operating result in the first 6 months of 2013.

The capital funds were also affected by the change of regulations from Basel II to Basel III and dividend payment in April 2013.

However, the capital adequacy ratio was well over the minimum requirement of BOT of not below 8.50 percent. Details

were as follows:

capital Adequacy Ratio

December 31, 2013 December 31, 2012

thB Million Percent

thB

Million

type

At call less than 1 year over 1 year unspecified total

percent thB

Million

percent thB

Million

percent thB

Million

percent thB

Million

percent

thB Million Percent

Tier I 70,818 9.47 61,546 8.49

Total capital funds 110,683 14.80 101,417 13.99

Sources of fund

Deposits 248,085 30.58 443,392 54.65 27,602 3.40 0 0.00 719,079 88.63

Borrowing 1,065 0.13 31,235 3.85 52,799 6.51 7,130 0.88 92,229 11.37

Total sources

of fund 249,150 30.71 474,627 58.50 80,401 9.91 7,130 0.88 811,308 100.00

Uses of fund

Loans(1)

62,562 6.74 224,489 24.18 502,966 54.18 0 0.00 790,017 85.11

Investment 1 0.00 37,792 4.07 95,618 10.30 4,843 0.52 138,254 14.89

Total uses

of fund 62,563 6.74 262,281 28.25 598,584 64.48 4,843 0.52 928,271 100.00

Note: (1)

Loan at call includes stop-accrued loans

apital Adequacy Ratio

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thanachart securities public company

limited

Daily trading volume of TNS in 2013 was THB 4,074

million, a substantially increase from the daily trading volume

in the previous year of THB 2,711 million. The increase was

in line with the capital market condition. Market share in this

year was at 4.63 percent.

Net profit for the year ended December 31, 2013 was

THB 801 million, an increase of THB 338 million or 73.25

percent from the previous year. Total income amounted to

THB 2,403 million, an increase of 46.11 percent. The main

source of income came from brokerage income which totaled

to THB 1,828 million, fees and service income amounting

to THB 152 million, and interest income from margin loans

amounting to THB 205 million. On the other side, financial

costs and operating expenses were THB 1,410 million,

an increase of 33.73 percent from the previous year in line

with a growing business volume and income.

As at December 31, 2013, Net Capital Ratio (NCR)

was at 94.07 percent higher than the minimum requirement

of the SEC of 7.00 percent.

thanachart Fund Management company

limited

At the end of 2013, TFUND has asset under management

amounting to THB 134,410 million, an increase of THB 12,389

million or 10.15 percent from the end of 2012. Asset under

management comprised of 78.35 percent mutual funds, 7.83

percent provident funds, and 13.81 percent private funds.

For operating results of 2013, TFUND had a net profit

of THB 285 million, an increase of 145 million or 103.57

percent from the year 2012. This was mainly due to the

higher sales volume of equity fund and flexible fund than

that of 2012.

thanachart insurance public company

limited

TNI had a net profit for the year 2013 of THB 953

million, an increase of THB 337 million or 54.70 percent

from the year 2012. The key factors were given to a focus

on profitable products, claims management, and effective

cost management.

ts Asset Management company limited

In 2013, TS AMC has restructured debts in accordance

with policy and business plan of Thanachart Group. As at

December 31, 2013, TS AMC had a net profit of THB 404

million, due to the income from debt repayment of THB 850

million. Interest expenses amounted to THB 178 million while

income from selling properties foreclosed and other income

were THB 111 million. Operating expenses were THB 161

million and provision expenses amounted to THB 103 million.

However, TS AMC was able to restructure 257 loan accounts.

Income from debt restructuring was THB 819 million.

Ratchthani leasing public company limited

As at December 31, 2013, THANI had total assets of

THB 27,296 million, an increase of THB 8,081 million or 42.06

percent from the end of 2012. This was due to an expansion

of hire purchase loans, particularly from trucks. At the end of

2013, hire purchase loans of THANI recorded at THB 26,592

million, an increase of THB 7,933 million or 42.52 percent

from the end of 2012, accounted for 97.42 percent of total

assets. Total liabilities and shareholders’ equity were THB

24,072 million and THB 3,223 million respectively.

Net profit for the year 2013 amounted to THB 754

million, an increase of THB 277 million or 57.99 percent

from the previous year. Total income for the year 2013 was

THB 2,397 million, an increase of THB 814 million or 51.37

percent from the previous year. The increase was due to the

domestic automotive industry growth and the continuous hire

purchase loan base expansion of THANI. Interest expenses

were THB 917 million, an increase of THB 245 million

or 36.36 percent. The increase was due to an increase

in additional borrowings to support loan growth. Impairment

loss of loans of THANI was THB 269 million, an increase

of THB 188 million or 231.24 percent, due to the domestic

economic condition in the last quarter of 2013 showing

a clear sign of a slowdown and also the additional provision

provided in accordance with the large expansion of hire

purchase loan growth of THANI.


nAtuRe oF Business opeRAtions

An overview of the Business operation

Thanachart Bank Public Company Limited (TBANK or the Bank) commenced its operation on April 22, 2002 with

Thanachart Capital Public Company Limited (TCAP) as the major shareholder. On December 21, 2006, the Bank of Thailand

(BOT) granted approval for TBANK and TCAP to form financial business group in consolidation and having TCAP as a parent

company.

In 2007, the Bank of Nova Scotia (Scotiabank) became our strategic partner by holding 24.98 percent of TBANK

shares, which later increased to 48.99 percent. The current major shareholders are TCAP and Scotiabank, and in 2011,

the Bank merged with Siam City Bank Public Company Limited (SCIB).

TBANK business structure, TCAP as a parent company, consists of two groups: 1) Financial Group and 2) Supporting

Group, which serves a full range of financial services through TBANK branch network and service outlet. It is strongly

committed to the good corporate governance principles.

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 (SEC) 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 Derivative 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 TBANK (holding 75

percent of the total shares) and the Government Saving 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 Public 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. Siam City Life Assurance Public Company Limited (SCILIFE) operates a life insurance business focusing on

middle and higher income customers who are interested in saving and health products. The Company’s sales channel includes

telelsales and broker.

7. Thanachart Group Leasing Company Limited (TGL) operates a hire purchase business of all automobile types.


8. Ratchthani Leasing Public Company Lim-

ited (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.

9. 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.

10. MAX Asset Management Company Limited

(MAX AMC) operates and asset management business by

buying or receiving transfers of NPLs and NPAs from other

financial institutions.

11. TS Asset Management Company Limited

(TS AMC) operates and asset management business by

buying or receiving transfers of NPLs and NPAs from SCIB

and TBANK.

supporting Business group

1. Thanachart Management and Services Company

Limited (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. 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.

Business policy and strategies of thanachart

group

In 2014, 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 “To provide fully integrated financial

solutions to our targeted customers’ complete fianancial

needs by offering the highest quality products, services

and advice.”

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 our customers’

different needs (Customer Centric); and cooperating with

all departments to provide excellent services to customers

(Collaboration). 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.

Thanachart has adopted the professionalism and

innovation of Scotiabank and continuously develops its work

system such as CRM Tools for Sales and Service. This is

considered to be a significant tool to increase advisory

capacity, introduce products that match with customers

need, and increase the capacity of customer relationship

management that brings about customers satisfaction and

the Bank’s revenue.

Besides, Thanachart Group has communicated its

business strategy with all business units and employees

at all levels in order to have the same intent and vision in

accomplishing the goal. These Four Strategic Intents are

as follows:

1. To accelerate growth in commercial and unsecured

loan under prudent risk standards through the provision of

superior service and financial advice while maintaining our

dominant position in auto lending.

2. To improve our risk management and reduce LIC

across all portfolios through focused origination, risk based

policies and use of market leading technology across the

credit cycle.

3. To attract new customers and grow and diversify

our funding base to meet LCR requirements by offering

innovative savings, insurance and investment products.

4. To help our clients succeed financially and grow

our fee revenue through relationship-based cross selling of

the full suite of financial products and services tailored to

meet their needs

In order to ensure that all strategic intents and

purposes are progress in the same direction, Thanachart

Group came up with the CEO’s Focus Agenda, as a tool to

successfully pursue its goal.


1. Financial Target: Meet or exceed our key financial

target of Net Income, Loan and NIR growth and Cost/Income

Ratio.

2. Customer Growth Initiatives: Complete our core

infrastructure improvements and end-to-end process

reengineering and ensure all sales channels and support

teams fully utilize the enhanced processed and tools to

improve customer service, cross sell and new customer

acquisition.

3. Operational Improvement: Continue with

Centralization and Shared Service initiative using best in

class technology and processes across key business lines

to improve service and reduce risk and cost.

4. Enhancing Human Capital Capabilities: Further

develop out leadership and strengthen our team through

focused leadership development, staff empowerment, and

accountabilities, cross functional transfers and targeted

training initiative.

5. Good Corporate Governance: Meet the highest

standards of good corporate governance that addresses the

need of all stakeholders and ensured full compliance with

all regulatory requirements.

6. Public Relations and Communications: Increase

TBANK’s positive brand perception and recognition with

strong customer service and innovative PR campaigns while

streamlining and improving internal communication

effectiveness.

shareholding structure of thanachart

group

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 fifty percent of issued and paid-up capital), TCAP has

adopted the following policies and approaches in managing

the member companies of the Group as follows:

Business policies

TCAP and TBANK are responsible for establishing

annual key business policies of Thanachart Group. Each

subsidiary is required to formulate business plans and

budgets for 3 - 5 years and submit them to the parent

company for consideration, in order to ensure that they are in

alignment with the established key business policies. The

business plans and budgets are also subject to evaluation

and review regularly. The objective is to ensure that the

business plans and budgets are in line with the changing

business conditions.

supervision of subsidiaries

The directors and high-ranking executives of TCAP

and TBANK are assigned to be the members of the Board

of Directors of the subsidiaries. The arrangement not only

enables TCAP and TBANK to assist the subsidiaries in

establishing their policies and in determining their future

direction, but also ensures the close supervision of the

subsidiaries’ business operations. Importantly, the Chief

Executive Officers of the subsidiaries are required to present

a monthly performance report to the Executive Committee

and the matters in the Executive Committee Meeting are than

reported to the Board of Directors of TBANK.

centralizing of support services

It is a policy of the Thanachart Group to centralize

specific functions of the support services into one company

which, then, is responsible for providing such services to

all other member companies of the Group. The purpose is

to maximize benefits within the existing resources including

expertise of operations staff and various information

technologies, and to reduce staffing costs. The centralized

support services available now within Thanachart Group

included information technology, human resource, systems

and internal regulatory development, internal audit, operation

control, business control, electronic services, administration

and procurement, legal and appraisal services, as well as

retail debt collections and collections brokerage.

internal control, audit, and corporate

governance of parent company and subsidiaries

Thanachart Group places strong emphasis on internal

control. The Group adheres to the principle of adequate and

appropriate internal control by establishing procedures for

business conducts, provision of services, and operations. The

Group also separates the duties and responsibilities of each

unit to allow internal examination of each other, based on


a check and balance system. In addition, it puts in writing

the announcements as well as order mandates, rules and

regulations’ covering key business areas and operations, and

this information was also disclosed to all staff in such a way

that they can always study them to gain a full understanding.

A central unit at TBANK is responsible for preparing and

proposing the announcements, order mandates rules and

regulations of all member companies of the Group.

As regard to the internal audit, the internal audit

group is responsible for auditing the business operations

of all member companies of the Group, ensuring that they

comply with the regulations and the established work

systems. The internal audit group also assesses an adequacy

and effectiveness of an internal control system in operations

to ensure the use of resources and properties and prevention

or reduction of errors, damages in order in propose corrective

measures for improvement. In addition, the Thanachart

Group has established the Compliance Unit responsible for

closely monitoring changes of laws, notifications, and orders

related to the Group’s business affairs and operations and

disseminating the information to the staff. The Compliance

Unit is also responsible for ensuring that the conduct of

business affairs of the member companies of the Group is

in compliance with the legal requirements.

Moreover, the Audit Committee of each member

company of the Group is responsible for governing, controlling,

and auditing their respective business operations. The Audit

Committee is also allowed to carry out its duties and give

its opinions in an independent manner of the management

of each company. The purpose is to ensure that internal

control and audit systems are effective and that the financial

statements are properly reviewed.

As regard to the corporate governance, the Board 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 Board of Directors and the level of various

Committees. Independent directors are appointed to the

Board of Directors and the Committees to provide effective

checks and balances on the powers of executive directors.

The established scope of responsibilities of the Board of

Directors and the Committees are also in line with the

principles of good corporate governance. In addition, the

Board 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 policy of the Thanachart Financial Conglomerate

is in line with the guidelines given by the BOT.

Relationship with business group of major

shareholder

Scotiabank is the leading international banking

institution with branches in 50 countries worldwide. It holds

48.99 percent of TBANK issued shares via Scotia Netherlands

Holding B.V., which is the juristic person in Netherlands.

Scotiabank is a strategic partner that helps to forge the

Bank’s capacity in fund business and management. It

passes on the knowledge of professionalism in banking

sector, risk management, information technology, and

expansion of TBANK services abroad through the network of

Scotiabank. Moreover, it sends representatives to participate

in the management in the director and executive level.


chart of shareholding structure of thanachart group

As of December 31, 2013

thanachart capital public company limited

scotia netherlands holding B.V.

supporting Business

thanachart Broker company limited

thanachart training and Development

company limited

sciB services company limited

thanachart Bank

public company limited

MAX Asset Management

company limited

nFs Asset Management

company limited

commercial Banking Business Asset Management Business

48.99%

thanachart Management and services

company limited

100.00%

100.00%

100.00%

100.00%

50.96% 100.00% 83.44%

securities Business

100.00%

thanachart securities


75.00%

thanachart Fund Management

company limited

Asset Management Business

insurance Business

thanachart insurance


100.00%

siam city life Assurance


100.00%

national leasing company limited

100.00%

ts Asset Management

company limited

100.00%

leasing Business

100.00%

thanachart group leasing

company limited

65.18%

Ratchthani leasing


Financial Business

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

2. On May 9, 2012, the BOT granted approval for Scotiabank to adjust the shares holding structure of Thanachart Group, which holds

48.99 percent of issued shares via Scotia Netherlands Holding B.V., the registered juristic person in Netherlands.


As of December 31

2013

thB Million percent thB Million percent thB Million percent

2012 2011

income structures of tBAnK and its subsidiaries

Income structures of TBANK and its subsidiaries based on the consolidated financial statements as of December 31,

2013, 2012, and 2011 are as follows:

table of income structures of tBAnK and its subsidiaries

Interest Income

Interbank and money market items 1,865 3.58 2,294 6.73 1,899 5.60

Investment for trading 457 0.87 480 1.41 78 0.23

Investment for debts securities 3,867 7.42 3,606 10.58 4,290 12.66

Loans 21,246 40.76 21,200 62.23 20,774 61.32

Hire Purchase and Financial Leases 26,452 50.75 21,156 62.11 17,011 50.21

Total Interest Income 53,887 103.38 48,736 143.06 44,052 130.02

Interest Expenses 27,234 52.25 25,556 75.02 19,636 57.95

Net Interest Income 26,653 51.13 23,180 68.04 24,416 72.07

Non-interest Income

Net Fees and Service Income 6,903 13.24 5,070 14.88 3,711 10.95

Gains on Trading and Foreign Exchange Transactions 531 1.02 664 1.95 891 2.63

Gains on Investments 13,081 25.10 312 0.92 712 2.10

Shares of Profit from Investments in Associated

Companies Accounted for Equity Method 415 0.80 150 0.44 156 0.46

Insurance Premium/Life Insurance Premium Income-Net 2,282 4.38 2,147 6.30 2,128 6.28

Dividend Income 562 1.08 397 1.17 708 2.09

Other Income 1,697 3.25 2,146 6.30 1,159 3.42

Total Non-interest Income 25,471 48.87 10,886 31.96 9,465 27.93

Net Operating Income 52,124 100.00 34,066 100.00 33,881 100.00


Business operations of each Business

group

commercial Banking Business

TBANK operated its businesses in compliance with

the Financial Institutions Business Act and other relevant

notifications issued by the BOT. It acted 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, 2013, TBANK had a total of 620

branches (excluding Tonson branch, the Headquarter), 54

foreign exchange booths (28 in-branches, and 26 stand-alone),

2,057 ATMs (Automatic Teller Machines), 2 Recycling

Machines, 46 CDMs (Cash Deposit Machine), and 127 PUMs

(Passbook Update Machine).

Group of Products and Services

TBANK improves and develops products to better

serve various needs of our customers. Its four main products

and services were as follows:

Group 1 Deposit Products

Characteristics

Deposit products are offered to customer, both

individuals and corporate. There are four major types of

deposit products which are saving deposit, fixed deposit,

current deposit, and foreign currency deposit.

Competitive Strategies

In 2013, TBANK focused on the expansion of small

and medium sized customer base as well as retail and corporate

customers in order to increase the number of customers who

used the Bank service as main bank. The Bank provides

variety of products through various sales channels amidst the

aggressive competition of other banking institutions especially

the Specific Financial Institution: SFIs, commercial banking

institutions, and as well as other product competitions such

as mutual fund and private debenture.

Apart from the success in providing deposit products,

the Bank has launched new financial products and service

to serve customer daily demand under the “Fixed Deposit”

program in July 2013, which customers can choose their

preferred deposit duration or maturity. For customers’

convenience, the Bank also provides “No slip deposit-

withdrawal and transfer” service in all branches across the

country.

Group 2 Lending Products

2.1 Corporate Loan

Characteristics

Corporate Loans are used to meet capital

requirements or enhance financial liquidity of businesses.

Customers can choose a variety of corporate loan services.

1) Corporate Banking Group To meet the

demand of large scale businesses, TBANK has developed

many types of products and services, including, inter alia,

several forms of loans such as flexible loan, Letter of

Guarantee, Project Finance, Trade Finance, Financial Advisory

Services, Debt and Capital Market such as issuance of

debentures for the purposes of funds mobilization and listing

on the Stock Exchange of Thailand as well as risk management

tools, particularly Interest Rate Swap (IRS) such as Forward

Contract and Foreign currency swap TBANK also provides

cash management facility to these customers through a range

of products that meet their individual requirements.

2) SME Commercial Banking SME Group

are products for small and medium-sized enterprises with

flexibility to serve the customers need include, inter alia,

Top Up facilities which are special loan limits to meet

working capital requirements of overdraft customers, letter

of guarantee products for enterprise or individual customers

wishing to obtain a guarantee limit to secure their performance

in favor of public or private entities, etc.

3) SME S Group is product for small and

medium-sized enterprise with the maximum limit of THB 10

million. SME S Group focuses on fast approval process and

sells through branch channel.



To serve SME customers whose credit requirement

does not exceed the maximum limit of THB 10 million, the

Bank has launched the “SME-S loan” product with an

emphasis on speedy approval process. In addition, the Bank

focuses on continual establishment of good relationships with

large scale businesses and offering of a full range of financial

products that answer their individual needs, as well as

expansion of business to SME group to meet their demand

for financial support from the Bank.

2.2 Automobile SMEs

Characteristics

TBANK offers this product to car related

entrepreneurs who have short-term financial needs with

the proceeds of the loans to be used as their working

capital or for enhancing their liquidity position as well as

those who have long-term financial needs with the proceeds

of the loans to be used for business expansion or reducing

funding cost for example fleet and financial lease.


TBANK concentrates on providing loan services

to its long lasting business partners in automobile hire

purchase sector. Database has been used to develop the tools

for considering and screening credit extension and ensuring

appropriate risk control (credit scoring). Emphasis is also

placed on development of products and processes that suit

the respective groups of customers and their credit access

channels, for example, customers via automobile manufacturers,

new and used automobile customers via automobile hire

purchase businesses, or used automobile business operators

via automobile auction companies. For the fleet finance and

financial lease sector, TBANK focuses on providing services

through its long-lasting high potential and financially sound

customers, as well as developing information system to

expand the capabilities of its sale channels countrywide.

2.3 Trade Finance

Characteristics

TBANK provides a full range of trade finance

products and services including Import Letter of Credit (L/C),

Trust Receipt, Collection Agency of D/P and D/A for oversea

buyers, Packing Credit, Export Bills Purchased/Discounted,

Export Bills for Collection, Letter of Guarantee, Stand-by L/C,

and Oversea Money Transfer.


The main factors that promote trade finance

services to customers are accuracy in services, convenience,

competitive interest rate and fees. TBANK took into

consideration the customers’ needs and the promotion of

business transactions as the main concerns. For the corporate

clients, TBANK has the target to expand customer base to

large scale businesses and SMEs. TBANK provides trade

finance credit limit, liquidity supports, and specialist advices

on trade finance documents for customers. TBANK also

develops trade finance products and services to cater to

customer needs. The global business alliance network is

useful for fast and convenience service which provides

customers’ satisfactory on TBANK’s products and services.

2.4 Automobile Hire Purchase Loans

Characteristics

The Bank offers three types of automobile hire

purchase loan namely new car loan, used car loan, and sale

and lease back loan, under the “CYC program”, which serve

customers who need cash with credit line approval higher

than personal loan and longer payment duration than normal

loans. Customer can choose the tenor and installment

payment that comply with their payment capacity. The Bank’s

selling point is to provide convenience to customers through

600 Bank branches.


TBANK’s hire purchase loan services are

provided across the country through car dealers and TBANK’s

branches. In setting the policy to offer a price, TBANK

considers external factors such as a competition in the

market and internal factors such as cost of fund and loan

risk. In addition, TBANK places an emphasis on sales promotion

activities with car dealers in each region, aiming to offer hire

purchase loan conditions that meet the need of regional

dealers and customers the most, as well as establishing

relationships with the automobile hire purchase business and

promote the image of a leading loan provider of automobile


hire purchase. TBANK developed the HiPad (Hire Purchase

by iPad) system in order to serve the customers effectively.

2.5 Secured Personal Loan

Characteristics

Secured Personal Loan consists of: home loans

under the brand of “TBANK Home Loan”, multi-purposed

loans named “Cash Your Home” and “Home Plus”


TBANK places emphasis on efficient service

delivery and fully integrated products that fulfill to all customer

needs. As well, marketing promotion, which is in line with the

situation and competitive condition, is highlighted. The Retail

Banking Department is responsible for developing products,

terms and conditions, as well as interest rates charged. The

target customers consist of: customers who needed home

loans, customers who needed personal loans with houses as

collateral, and hire purchase customers with good repayment

records. The main distribution channel is personal sales and

marketing teams that are responsible for the sales target set

in the business plan. Moreover, branches are channels to

advertised personal loans or new products to the customers.

2.6 Unsecured Personal Loan

Characteristics

TBANK provides many types of unsecured

personal loans. To be accessible and responsive to cover

a wide range of customer needs, therefore, the purpose of

loans may or may not be specified. TBANK’s personal loans

are serves under the product names as follows:

1) T-Loan is a multi-purpose loan providing for

general customers. The repayments are arranged in equal

installment monthly and specified time

2) Wish-List Loan is an additional credit line

of loan provided to TBANK’s hire purchase customers who

have good repayment record.

3) Special for Staffs Loan, TBANK provides

this loan specifically to customers whose companies have a

campaign with TBANK.

4) Scholar Loan is a loan for payment of tuition

or any expenses for obtaining a master’s or doctorate degree.

5) Pension Secured Loan, this is a special

multi-purpose loan for government employees who receive

monthly pension payment from the Comptroller General’s

Department.

6) 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.

7) Unsecured Flash O/D is an overdraft amount

with no collateral. The Bank provides the service to important

customers with the investment purpose.

8) Credit Card, 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:

- Thanachart Drive Card: for customers

who need a credit card with cash back for every payment

made at any gas stations.

- Thanachart MAX Platinum Card: for

customers who are looking for exclusive services and privilege

benefits in a view of luxury and convenience; and receive

cash back for every transaction made via MAX Platinum card.

- Thanachart LIVE Platinum Card: for new

generation customers who are interested in installment

payment with lower interest rate than other credit cards, but

still receiving platinum privilege.


Products under unsecured personal loans

defined competitive strategies on product development,

marketing campaign, distribution channel, and appropriate

services to serve target customers’ needs. Thus TBANK

provides a variety of products for customers to choose

appropriately by life stage and life style. These products have

been designed in such a way that are easily understandable

and practical for every day needs.

1. Personal Loan provides a variety of product

to carter to customer needs in each group that fit their

purposes.

2. Revolving Card provides cardholders with

a credit line to spend for any purposes. Customers can


withdraw cash within a credit line as per their needs at ATM

worldwide.

3. Credit Card emphasizes on everyday needs

of cardholders with simplified and practical use of the card.

Cardholders receive benefits as per their needs for every

purchase.

Group 3 Electronic Products and Services

Characteristics

TBANK offers electronic products and services that

enable customers to make financial transactions at a better

efficient manner. These services include fund transfer,

Automatic Transfer Service (ATS), online settlement for financial

transactions through the Bank of Thailand’s Automatic High-

volume Transaction Network (BAHTNET), automatic money

transfers between banks (Bulk Payment System), Bill payment

service for goods and services and a debit card. To meet the

customer needs, TBANK has also developed the service

system through the internet, which are as follows:

- Thanachart i-Net service

- Thanachart SMS Alert service

- Cash Back Debit Card


The strategy focuses on cross-selling and up-selling

via bank branches to both small and large scale companies.

For individual customers who need convenient transaction

and safety for money transfer, TBANK initiates the promotion

campaign aiming at easy accessibility and services. The

money can be received on the same day of a transfer.

Branches have been available in shopping centers or nearby

office areas for customers’ convenience. TBANK offers

services as follows:

1. Internet Banking Services, this service was for

both individual and juristic person to facilitate customers. For

example, account balance information, internal and interbank

fund transfer, including the bill payment service.

2. Financial Transaction Notification via SMS service,

this 24-hour service notified all transactions i.e. deposit,

withdrawn and money transfer via SMS to the customers’

mobile phone number registered with TBANK.

3. An exclusive cash back debit card, the value of

this service was that customers receive cash back directly

into their accounts for every spending. The EMV technology

provided and ultimate security to protect a card from data

stealing.

Group 4 Other Products

4.1 Foreign Exchange Service

Characteristics

TBANK’s services include foreign exchange

services in forms of: bank notes and 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.


TBANK has expanded its branch network and

currency exchange booths to serve all business sectors and

tourists nationwide. TBANK also adjusts exchange rates by

benchmarking with the movements of the world’s currency

market. As a result, its customers receive real time rates

and fair prices.

4.2 Securities Business Support Services

Characteristics

Securities Business Support Services consist

of; Custodian, Trustee, Fund Supervisor, Bondholder

Representative and Registrar and Paying Agent


To fully offer all range of services to meet

customer needs, TBANK’s custodian and trustee services

offer supplementary products that enhance financial and

investment management flexibilities to investment funds, such

as cash management products. TBANK has made use of

its business network and good relationship with customers

to expand the debenture holder representative, securities

registrar and payment agent services.


Factors influencing opportunities or

constraints to Business operations

In 2013, Thai economy1 grew at a slower rate following

a dampened domestic consumption, a result of large spending

in the previous year. Investment was stalled due to economic and

political uncertainty. Export was slow to recover due to restriction

in some industries, lack of raw materials, and technological

constraints. Consequently, economic competitiveness weakened

and was unable to meet the global demand. In the 4th quarter of

2013, economy grew 0.6 percent, a decrease from 5.4 percent,

2.9 percent, and 2.7 percent in the 1st, 2

nd, and 3

rd quarter

of 2013, respectively. Positive drivers were government

spending, export, and good inventory while domestic consumption

continued to be the impediment. Hospitality industry, real

estate industry, and agricultural industry experienced growth

while construction industry declined. In comparison to the

3rd quarter of 2013, the economy in 2013 grew 2.9 percent.

In terms of economic stability, unemployment rate

remained low and inflation subsided following deceleration

in energy price and current account deficit. This was due

to gold import and transfer of profit and dividend back to

foreign countries. Capital and financial account surplus was

due to foreign borrowings of depository institutions and direct

investment of foreign investors, resulting in a balance of payment

deficit. Overall headline average inflation for the year was low

at 2.18 percent, a decline from previous year in line with the

energy price and core inflation. Energy price declined due to

global fuel price and electricity price that adjusted up less

than the previous year. Core inflation in 2013 slowed down

from 2012 at 1.0 percent, as a result of cost pressure remaining

low. Although cost increased somewhat in the 4th quarter

and Liquefied Petroleum Gas (LPG) price gradually increased,

domestic demand was weak and competition was high.

Consequently, prices of goods and services did not increase.

Outlook for 20142, Thai economy is expected to have

slow growth due to stagnation in domestic consumption

and private investment. Thai Economy also would be slow

recovery and take more time to adjust toward the normal

situation due to weak consumers’ confidence. Investors await

tangible signs of economic and political recovery. Government

spending and investment would also be delayed. Although

export in all industry tends to improve gradually, it could not

compensate for sluggish domestic demand. Tourism which

was the main economic driver in the past begins to have

impact from political circumstance. It is expected to recover

quickly after the unrest subsides.

Political situation and government actions will continue

to be the key indicator of economic direction this year. Aside

from its effect on government expenditure and investment,

political unrest also affected confidence of the people and

investment climate. Monetary Policy Committee (MPC) Meeting

dated January 22, 2014 gave opinion that an on-going political

drift in Thailand has an impact on private and government

spending and tourism. Consequently, MPC issued a resolution

to adjust down Thai economic growth projection in 2014

from 4.0 percent in the previous meeting to 3.0 percent.

On February 17, 2014, NESDB disclosed its projection of

economic growth of 3.0-4.0 percent for the year 2014.

Due to economic uncertainty, TBANK monitors closely

and constantly on the landscape and market condition of

various industries, such as the political development and

economic performance. Also, TBANK closely supervises on

financial liquidity and global market changes, e.g. the Federal

Reserve of USA announcemnet on QE tapering, development

on Euro debt crisis which has no clear solution and Spain

and Italy still face with high leading rate with strict monetary

policy. Easing on the financial sector will gradually impact the

real sectors but will take sometime. The Chinese economy is

vulnerable in the real estate sector and by the shadow banking,

which has high portion to GDP but lack in supervision.

This can affect the economic stability for China. Furthermore,

Japan will adjust up the comsumption base tax starting from

April 2014 which will significantly impact domestic demand.

All these factors will influence the fund movement in the

capital market, liquidity in the commercial banking system,

volatility in exchange rate, and policy rate set by the BOT.

Business opportunity in the emergence of Asean

Economic Community (AEC) has created expansion in the

border cities with the neighboring countries (Burma, Laos,

Cambodia and Malaysia). Thailand has a surplus balance of

trade from border cities nationwide. The neighboring countries

are the emerging market opportunity, especially with increasing

tax benefit as AEC draws closer to be fully impletmented in 2015.

There is an opportunity to offer financial service to consumers

1 According to the Office of the National Economic and Social Development Board

2 Economic outlook from various financial institutions, e.g. the BOT, researches of commercial banks, and research of Scotiabank


and business owners in the border area, whether in liqudity management, financial service and financial advisory. In line

with the Financial Sector Master Plan Phase 2 which would continue in 2014 together with Payment System Roadmap

plan in year 2012-2016, financial service system and electronic channel has to be ready in order to reduce risk in payment

transaction. Furthermore, financial institution is strengthened by effective cost management, solid infrastructure, competent

human resource, and innovation in products and services. These factors will need to focus on a continuous basis.

industry and competition outlook

Operating results of commercial banking industry3 in 2013 showed a net profit of THB 214,853 million, a growth of 23.60

percent from 2012. Commercial banks registered in Thailand and foreign branches had a net profit growth of 25.09 percent

and 10.29 percent, respectively. This substantiated effective management and proficient adaptaion of the commercial bank

industry amid uncertain economic and political uncertainty. In 2013, large commercial banks registered in Thailand utilized 2

key competitive strategies, i.e. universal banking and customer centricity, in order to position themselves as the main bank for

the customers. Expansion to the neighboring countries can be seen in the preparation for AEC implementation and supporting

the business expansion for customer in Asean Countries. Large commercial banks’ net profit grew 24.43 percent in 2013.

Medium banks registered in Thailand continue to focus on specific market and utilized on their expertise. They also strategize

to reach into untapped market and improve on the information technology system in order to provide superior service to

their customers and reduce service cost. Consequently, medium banks’ net profit grew 44.97 percent. Small-size commercial

banks put emphasis on customer centricity, product and service innovation, and branding to create more awareness.

Small banks’ net profit grew 20.89 percent in 2013. A summary of net profit of 10 Thai commercial banks registered in

Thailand is shown in the picture below.

picture: net profit summary of thai commercial Banks registered in thailand classified by each Bank in

2012 - 2013

3 Banking industry means commercial banks registered in Thailand and branches of foreign banks, totaling 30 banks.

BBl KtB scB KBAnK BAy tBAnK tMB tisco ciMB thAi KKB

unit: MB

2012 2013

31,8

47

35,9

06

23,3

66

33,9

28

39,2

35

50,2

33

35,2

60

41,3

25

14,6

25

14,0

19

8,3

54

15,3

85

1,2

61

5,7

37

3,7

05

4,2

49

1,3

06

1,4

90

3,3

91

4,4

18

12.74%45.20%

28.03%

17.20%

-4.15% 84.16%

354.97% 14.68%

14.09%

30.29%

Source: Unaudited financial statements, management discussion & analysis, and company data


As the end of 2013, loan portfolio in Thai commercial

banks registered in Thailand was THB 9,523,070 million, an

increase of 10.78 percent or THB 926,879 million from 2012.

Although loan growth was strong, it grew at a slower rate

compared to 13.27 percent growth in 2012. Loan portfolio

of commercial banks shifted more toward retail loans from

a more cautious corporate loans approval in line with the

effect from the slowdown economy. While SME and retail

loans grew, they grew also at a slower rate. High household

debt resulted in a more cautious credit approval process.

Hire purchase loans decreased the most in growth due to

unusually high demand from the first-car policy in 2012.

Overall, the demand for corporate and retail loans slowed

down this year.

Slow loan growth and high household debt led to

heavy provisioning in commercial banks in order to prepare

for future economic uncertainty. Reserve to required reserve

increased by 168.3 percent, indicating risk protection and

preparation for future unpredictability.

In 2013, deposit and borrowing of 10 Thai commercial

banks were THB 10,616,361 million, an increase of 9.09

percentfrom 2012. Bills of exchange decreased 57.03

percent from 2012 due to Depository Protection Act. In the

first half of the year, banks issued short-term securities to

support loan growth and enhance internal liquidity. However,

in the latter half, deposit growth slowed down and remained

steady till the end of the year, in line with loan growth.

TBANK Accomplishment in 2013

TBANK has succeeded in all its six strategic intents

with superb financial performance. Each of intent can be

described as follows:

1. We intend to provide our customers with a fully

integrated financial product and service by offering the best

service and a total financial solution to their unique needs.

In order to meet various customers’ needs, TBANK

offered a broad range of financial products and services.

There were more than 650,000 new customers in 2013, mainly

in the tax exempt deposit, debit card and hire purchase

for new cars and used cars. Furthermore, TBANK’s non-interest

income, excluding gain from sale of TLIFE, increased by

12.50 percent in 2013, as a result of a strong operating

and successful cross-selling with the existing customers of

TBANK. Cross-selling ratio increased significantly in the new

generation and corporate customer groups with six products

increase per customer as compared to 2012.

2. We intend to increase our productivity and customer

satisfaction through strategic investments in our people,

leadership, systems, and processes.

TBANK, with Scotiabank cooperation, provided

training both domestically and internationally for its personnel

in order to increase knowledge, working skill, and leadership.

Furthermore, TBANK developed “Optimization Strategy”

to increase productivity in working process, e.g. Business

Line Reengineering in order to improve end-to-end process,

Sales and Service System, CRM tools, Customer Satisfaction

Index (CSI), and T-Advisor service, in order to offer superior

products and to meet the customer’s requirement service.

Also, Collection Optimization System was developed to

manage non-performing loans and adequate provisioning.

3. We intend to be the dominant market leader for

Hire Purchase Business with increasing share in Used car

and CYC segments.

In 2013, TBANK continued to be the market leader

in the hire purchase market with a focus on balance hire

purchase loan structure, asset quality, and complete customer

service for all customer groups, i.e. new car, used car and CYC.

New car hire purchase grew more than 200,000 units in 2013

while CYC which achieved for expanding the business and

gave a high return succeeded with a growth of 40,000 units.

To maintain the portfolio balance, TBANK was cautious in

expansion in used car market in order to maintain appropriate

level of non-performing loans. Furthermore, TBANK emphasized

on offering fully integrated financial product and service

through Original Equipment Manufacturer (OEM) project,

in order to continuously create good relationship with the

manufacturers and car dealers.

4. We intend to grow deposit base in order to

maintain and improve liquidity to be sufficient for supporting

growth.

TBANK grew more than 370,000 deposit customers

in 2013 in order to manage liquidity and support loan growth.

Particularly, tax exempt deposit customers grew 15,000

accounts. Furthermore, TBANK succeeded to restructure its

deposit portfolio with more focus on the retail customers


with appropriate CASA to fixed deposit proportion, which in

turn led to significant reduction in the cost of fund.

5. We intend to grow our loan market share in

targeted segments.

In 2013, TBANK put emphasis on a well balance

loan portfolio and diversified loan growth in other products

beside hire purchase, e.g. corporate loans, SME loans and

other retail loans. TBANK had a strategy to focus on high yield

products, e.g. SME-S loans, credit card loans and personal loans.

In 2013, TBANK also succeeded in expanding corporate and

retail loan portfolio with approximately 100,000 new customers.

6. We intend to increase the fee-based income

proportion to be on par with industry average.

To increase fee based income in the long term

and efficient adjust income structure, TBANK put its focus on

cross-selling effort with its subsidiary companies’ products,

e.g. life insurance, non-life insurance, mutual fund, and etc.

Partnership with Prudential has strengthened fee income

generation, a result of product innovation, accurate response

to market need, and system improvement by world-class

company.

Furthermore, TBANK was entrusted from credit rating

agency of the country and the world. TBANK received

the “Trusted Brand 2013” award from Reader Digest,

“Automotive Finance Company of the Year” award from

Fros & Sullivan Thailand Excellence Award 2013, “Morning

start Thailand Fund Award 2013”, “Best Surveyor Award

2012”, excellent insurance company award runner-up 2012,

and “Company of the Year 2012” award. These substantiate

TBANK competency and capability to be a leading bank

which can meet to the customers’ needs with a broad range

of its products and services.

competitive Advantage and competitors

TBANK has the competency and capability to sustain its

growth in the future as compared to other commercial banks.

In 2013, TBANK’s total assets were THB 1,038,349 million,

an increase of THB 19,000 million from 2012, equivalent

to 7.33 percent market share in the commercial banking

industry. Asset growth was mainly driven by loan growth.

In 2013, total loans were THB 790,017 million, an increase

of 4.77 percent from 2012, equivalent to 7.04 percent market

share. The two highest growth came from hire purchase and

unsecured personal loans. In 2013, TBANK’s deposit and

borrowing portfolio ended at THB 811,308 million, an increase

of 4.48 percent from 2012. This was due to the expansion in

the retail deposit clients in order to reduce cost of deposit.

TBANK’s deposit accounted for 6.86 percent market share.

TBANK intended to provide convenience and easy

access to financial products and services for its customers.

In 2013, TBANK had a total of 621 branches, including head

office, ranked number fire of the industry, accounted for 9.38

percent of all commercinal banking branches. Furthermore,

TBANK offerd electronic channels, e.g. 2,057 ATMs, Thanachart

i-Net, Interactive Voice Response (IVR), and etc., in order to

offer the proper channel and cover the customers’ needs in

each segment.

securities Business

Securities Business is provided to customers through

Thanachart Securities Public Company Limited (TNS). The

company was granted a full license to operate a full range

of securities businesses including securities brokerage (inside

and outside Thailand), securities underwriting, investment

advisory service, securities borrowing and lending service,

financial advisory service, mutual fund management, private

fund management, venture capital management, securities

registrar, and derivatives business Sor 1.

Products and Services

TNS operates two key areas of business, brokerage

business and investment banking and advisory business.

As of December 31, 2013, the company had a total of 35

branches and offered the following services:

1. Brokerage Business covers brokerage services

which includes a service of securities dealing, securities

trading, and giving investment advices to investors whether

individual, retail, institutional, local or foreign, to make decision

on their investment.

The Company had operated as a broker in selling

offshore securities. This service had been provided since

2009. In addition, the Company had planned to provide

opportunities to individual and juristic investors, in providing

an alternative investment options as well as efficiently allocating

the risks. The Company provides this brokerage service


through DMA (Direct Market Access), allowing to purchase

securities from all over the world such as of the following:

Asia: Australia, Hong Kong, Singapore, Malaysia,

Japan, Philippines, Indonesia, South Korea, Taiwan, China,

and plan to expand to Vietnam and Laos in 2014.

America: United States of America, Canada.

Europe: Netherlands, Belgium, Portugal, France,

German, England, Italy, Denmark, Finland, Sweden, Norway,

Spain, Switzerland, Poland and Austria.

2. Derivative Business covers trading services for

future contracts and derivatives.

3. Securities Borrowing and Lending (SBL) covers

services of borrowing or lending securities for customers who

has a desire to borrow or lend securities.

4. Derivative warrant (DW) is issued and sold for

customers as an alternative of investment to increase liquidity

and spread of risk investment.

5. Investment Unit Dealer covers services of sale

support and provides fund facts and related information on

mutual funds of various asset management companies that

TNS represents.

6. Financial Advisory and Securities Underwriting

Services cover financial advisory business, underwriting

service of debt and equity securities both as a role of lead

underwriter, co-underwriter, and dealer.

7. Securities Registrar covers three types of services,

namely, a securities issuance registrar, securities holder

registrar and a registrar for the Employee Stock Option

Program (ESOP).

8. Structure Notes are issued and sold for customers

in order to increase an opportunity of investment and spread

of risks.

Competition and Market Outlook

1. In the past decade, 2013 was considered to be

the best year in term of sales volume and price SET index.

Securities business in Thailand was immensely engaged in

the first six months of the year and decelerated in the second

half of the year. The major concern was due to the capital

outflow from the emerging markets especially in Asia to the

United States of America in case U.S. tapered its Quantitative

Easing measure. When economic factors recovered, it

caused the SET index to fluctuate in Quarter 2. The domestic

economy has continuously decelerated after Quarter 1 due to

the first car program and household debt. The export sector

was slowly recovered from baht appreciation and the shrink

of the agricultural and electronic product export volume.

The political unrest was also another factor that caused the

slowdown of economy in Quarter 4. Performance of securities

business in 2013 was at THB 12.33 trillion, in which retail

investors hold 57 percent in market and foreign investors’

seller with net selling of THB 193,911 million. In 2013, in term

of fund raising, there were 28 registered companies, 13 SET

companies, and 15 new securities business (MAI) involved.

SET index as of end of year closed at 1,298.71 points lower

than the previous year, which closed at 1,391.93 points at

93.22 points or decreased by 6.7 percent of average daily

selling at THB 48,070.25 million.

TNS ranked 6 from 33 securities companies and

market share accounted for 4.66 percent. In 2013, there was

an aggressive competition especially in retail investor due to

two new emerging securities business namely AEC Company

and Apple Wealth Company. Foreign securities business also

played a part in the market shares, which led to the business

cooperation between the Bank and securities business in

its conglomerate.

2. There are a total of 42 members in the Thailand

Future Exchange (TFEX). In 2013, total trading volume was

16,664,126 contracts, or a daily average of 68,017 contracts,

an increase of 55.2 percent from a daily average of 43,823

contracts in 2012. The key contributing factor was from

Stock Futures, SET50 Index Futures, Gold Futures, and USD

Futures. Daily market trading value as of 2013 accounted for

THB 26,970 million and total trading account of investors’

87,693 accounts. In term of market share Thanachart ranks

16 or at 2.20 percent.

3. In financial advisory and securities underwriting

services, competition was aggressive, especially in mergers

& acquisitions, IPOs and fund raising. Though competition

focuses on price, the key competitive factor, thus, remains

on service quality, expertise on providing a customer with

relevant advice and solutions to a problem, having a wide

network, as well as product innovation, which can create

value-added and greater benefits to customers of TNS.


Fund Management Business

TFUND operates in a business of fund for investment

including fund management, private fund, provident fund, and

investment advisory business.


TFUND provides various types of fund investment in

order to respond to different types of customers at all levels.

The company utilizes many types of distribution channels

for sales, such as TBANK’s branches and other investment

unit distributors licensed by SEC. TFUND’s staffs are legally

qualified and strictly adhere to related laws and regulations.

For greater convenience, the Bank, acting as investment

unit distributor, has been supporting sale and repurchasing

of investment units offered by TFUND as well as other

investment management companies it represents through

electronic channels.


As of December 30, 2013, there were a total of 22 fund

management companies, with total assets under management

of THB 2,670,044.63 million (excluding Vayupak Fund, Foreign

Funds, Property Fund for Resolving Financial Institution

Problem and Property and Loan Fund), an increase of 17.86

percent from 2012. During 2013, there were 823 newly issued

funds, accounting for THB 1,635,060.98 million of net

assets. Among the newly issued funds, 647 were domestic

and foreign investment funds fixed-income funds investing

in debt securities with maturity not exceeding 1 year, which

accounted for THB 1,389,647.76 million of net assets or 84.99

percent of total net assets of the newly issued funds during

2013. Newly issued funds by the TFUND in 2013, 67.97

percent were debt securities with maturity not exceeding 1

year, in accordance to the industry average.

As of December 30, 2013, TFUND had THB 134,401

million assets under management from which retail mutual

funds accounted for THB 105,308.74 million, private funds

accounted for THB 18,565.15 million, and provident funds

accounted for THB 10,526.70 million.

insurance Business

The Insurance business of Thanachart Group could

be divided into two key areas as follows:

non-life insurance

Non-life insurance business is operated by Thanachart

Insurance Public Company Limited (TNI), which offers all

types of non-life insurance services.

Characteristics

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

automobile, marine, and miscellaneous. In addition, the company

also operates investment businesses.


In 2013, non-life insurance business in Thailand

experienced a growth in direct premium income compared to

2012. For the 9-month period of 2013, the growth rate was

at 15.8 percent which was an increasing rate as compared

to the same period of 2012 which had a growth rate of 27.1

percent; due to the implementation of the government’s first

car program, which led to the increase of insurance premium

in the current year.

As for the non-life insurance market structure in 2013,

automobile insurance received the highest share of the market

with a total share of 57 percent, followed by miscellaneous

insurance with 36 percent, fire and marine & transportation

insurance with 5 and 2 percent, respectively.

TNI focuses on a standard of products, service quality,

productivity, efficiency and honesty, as well as development

of new products in order to offer new policies which are

more coherent with economic and social conditions and

responsive to customer needs, by taking into consideration

a fair premium rate to customers. Furthermore, the company

constantly adjusts its progressive competitive strategy to be

coherent with ever-changing conditions, by ways of increasing

sales channels, expanding the customer base, and maintaining

the existing customer base. As much as 95 percent of all

customers are those with a policy claim limit not exceeding

THB 5 million. The customers mostly select automobile and

fire insurance and these customers mainly are TBANK’s

lending customers as well as customers from the company’s

marketing campaigns.

This service is only offered to domestic customers.

The customer groups with a policy claim limit of THB 5 million

are mostly comprised of institutional customers, private


enterprises that possess branch network, both in commerce

and industrial sectors. A major portion of this customer group

choose miscellaneous and fire insurances. As aforementioned,

it can be concluded that TNI has never relied on any customer

group that accounted for more than 30 percent of TNI’s

total revenue

The non-life insurance industry status according to

the 2014 direct premium forecast by Thai Reinsurance Public

Company Limited, the Thai economy is expected to continue

growing after 2013; therefore, the non-life insurance premium

will grow approximately at 16.7 percent. The total direct

premium will be at THB 252,383 million. The miscellaneous

insurance premium will have the highest growth at 25.0

percent, followed by motor insurance with approximately

12.9 percent growth. The marine insurance and fire insurance

will grow at approximately 9.9 percent and 6.9 percent

respectively.

life insurance Business

SCILIFE operates in the life insurance business for

institutions, corporate, and individuals.

Characteristics

SCILIFE provides both individual and group life

insurance. These life assurance products serve as a mean for

savings and provide life and health protection for individuals,

institutional customers and organizations in general.

• Individual life assurance products The Company

offers a variety of savings products, limited-term

products and lifetime products as described below.

SCI Life 20/10M: This product provides a coverage

period of 20 years, while its premium payment

period is 10 years, with a refund of 3 percent of

the initial insured sum at the end of the 1st to the

19th year, and 150 percent of the initial insured

sum at the end of the 20th year. The total amount

of refund throughout the agreement term is 207

percent of the initial insured sum.

Healthy Max: This product provides a coverage

period of 5 years, while its premium payment

period is 5 years, and covers all kinds of death,

whether due to illness or accident. The maximum

coverage in the case of death is THB 100,000, and

in the case of medical expenses is THB 200,000

per incident.

• Group life assurance products The Company

offers both the life insurance products and life cum

health insurance products. This product provides

protection both during and outside working hours.

No health examination is required, and a single

premium rate is used for all genders and ages.


Target Customers

SCILIFE’s life assurance marketing strategy focuses

on both individual and group customers. Health product

marketing is aimed at middle to upper income customers.

Distribution Channels

SCILIFE operates its businesses under a multiple

sales channel strategy in order to meet all financial needs

and coverage requirements of its target customers. Its sales

channels include telesales and brokers.

Assets Management Business


Assets Management Business operates by TS Asset

Management Company Limited (TS AMC) received the

transfer of non-performing assets from SCIB, including both

non-performing loans and non-performing assets, in order

to conduct debt restructuring with the debtors, hence, allow

them to repay the debts at their real capacity and turning

non-performing assets back to becoming the performing ones.


TS AMC operates its business with a primary objective

to manage and restructure the non-performing assets received

from SCIB. To manage, divest, or sell those non-performing

assets (NPAs) to third parties who are interested in real

estate market, TS AMC hires a professional advisory in assets

sales to determine the selling price and manage the assets

in such a way that creates the highest value. It also appoints

a professional asset selling agent to develop value-added


asset packages as well as collaborates with the related group

of companies to expand sales channels, such as brokers or

auction agents as well as cross selling and through website

of TNS and the other channels to reach the target customers

as much as possible.

leasing Business


Ratchthani Leasing Public Company Limited (THANI)

operates in hire purchase business and financial leasing.

THANI focuses on the market segment of new cars and

used cars for commercial use including pick up cars, taxis,

truck puller, and private cars. Moreover, the Company also

offers credit for both used and new car at 50 percent and 50

percent respectively of the total credit; and credit for truck and

other type of cars at 75 percent and 25 percent respectively.

Operating in the business that providing credit for

used cars is exposed to greater risk than new car. The

Company has to take many factors into consideration prior

giving credits including car condition, used car price in market,

document checking, license plate, etc. Therefore, professionals

in such area are necessarily required.

THANI also provides after sales services such as

the renewal of the motor-vehicle tax and insurance policy

renewal. This also includes taking the vehicle for checkup

for renewing the motor-vehicle tax. Not only would this be

a convenience to the customers, it also generates income

to the Company as well. In addition, this approach benefits

the Company as it would insures the customer’s vehicle and

prevent losses to the Company.


The overview of the leasing business is relatively

aggressive especially those in commercial banking, leasing

and hire purchase business that focus on personal vehicle.

This led many traders to consider used car segment as

a new business with higher interest rate in order to maintain

the margin gap. However, the Company has an adjustment

plan on the giving credit to commercial trucks including

both new and used trucks in 3 - 5 years with the target at

75 percent of the portfolio. In order to increase its competitive

advantage, the Company focuses on this business segment.

The Company expected the business segment to contribute

to a high growth of customer, higher yield, and lower risk

comparing to the personal car segment.

With extensive experience in the business sector,

speedy service, good relationship with customers, and good

deal for used car dealers, the Company remains competitive

and maintains its market share despite the aggressive

competition in market.

products and services Management

sources of fund

The source of TBANK’s and its subsidiaries’ fund

comprises of issued and paid-up capital, whereby in 2013, was

in the amount of THB 55,137 million, in which the statutory

reserve and retained earnings were included. Another two

key sources of fund were:

1. Deposits as at the end of 2013 were in the amount

of THB 719,079 million.

2. Borrowings which were in the amount of THB

92,229 million, of which THB 7,130 million were hybrid

tier 1, THB 40,516 million were subordinated debentures,

THB 14,246 million were debentures, THB 29,226 million

were short-term debentures, THB 1,065 million were bill of

exchange, and THB 46 million were others.

Funding or lending to related parties

TBANK extended loans to TS AMC for non-performing

asset management business, in line with the business policy

of Thanachart Group. In 2013, loan outstanding balance was

THB 4,555 million, decreased from THB 6,060 million at the

end of 2012.

The aforementioned loan outstanding balance

accounted for 0.68 percent of total loans at the end of 2013.

All lending and borrowing activities were transacted under

the permission of the BOT.


RisK FActoRs

An overview of the Risk Management

In 2013, the overall recovery of the world economy was slow as the economic figures of the United States (US),

Japan, China and many countries in ASEAN increased at a slower rate while the economy in EU still contracted even though

it started to show a good trend at year-end. These resulted in the reduction of demand for Thai exports. In addition, Thailand’s

domestic demand for private consumption and investment also declined due to the political and economic uncertainty which

slowed Thailand’s economy in 2013.

The commercial banks’ credits given to private sector and households grew at a slower rate as a result of the

slowdowns in private consumption and investments caused by volatile economic conditions and tighter household credit

approval process of commercial banks due to the high level of household debts. Car hire purchase loans largely slowed

down after all cars purchased under the government’s tax rebate scheme for first-time car buyers in 2012 had been delivered.

However, a number of risk factors should be closely monitored in 2014 such as the economic recovery of industrialized

countries, the quantitative easing tapering of the U.S. which affects fund flows and Thai baht value, the political uncertainty

which affects investments and government spending on infrastructure, and drought problems which seem to be more severe

than last year.

The economic situation of Japan has weakened and the conflict between Japan and China tends to be longer. In

addition, an infrastructure investment of the Government may be delayed and this would be the risk factors for 2013 business

and need to be monitored closely.

The Bank and its subsidiaries realize the importance of continuous risk management. The Bank has an Internal Capital

Adequacy Assessment Process (ICAAP) to support various types of risk in compliance with capital supervisory measures of

Basel III framework, in accordance with the Bank of Thailand (BOT) guidelines, which enables the Bank and its subsidiaries

to efficiently manage fund, have strong funding position, and firmly support business expansion.

Nevertheless, the Board of Directors and executives of the Bank closely oversee, monitor and develop the risk

management system regularly to ensure that the measures are updated and in line with the ever-changing internal and external

risk factors. The Bank strategically establishes an organization structure to support the risk management under the policy

outline via various committees’ supervisions as follows:

the Board and committees at the policy level:

The Bank’s Board of Directors and the Executive Committee have a role in policy making and establish guidelines

for an efficient enterprise-wide risk management by taking into consideration the impact of risks on the Bank’s operational

goal and financial position that have to be in line with its normal operation.

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

procedure as well as considering appropriate risk management policies and guidelines to be proposed to the Executive

Committee and the Bank’s Board of Directors for consideration and approval.


the Bank’s Risk Management structure

As of December 31, 2013

chief executive officer and

president

Deputy chief executive

officer

Audit committeeRisk Management committee

office of executive committee chairman and ceo

chief Audit

Risk policy and capital Markets

credit Risk Management 1 Asset and liability Management committee

credit Risk Management 2 investment portfolio committee

Risk control credit committee

chief Risk officer

compliance

executive committee

Board of Directors

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 sufficiency of the risk management process and internal control

system.

the committees at the operation level:

Asset and Liability Management Committee has 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 has a role in supervising the investment in financial instruments of the Bank to be

in line with the Bank’s market risk management policy.

Credit Committee has a role in supervising the credit lending and other credit-related transactions to be in line with

the Bank’s credit risk management policy.

IT Security Management Committee has 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 to be in line with the proposed plan.

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

disclosure of financial information, the operation, the report and supervisory procedures to ensure practices in accordance with

policies, work plans, rules and regulations of the Bank and its subsidiaries, official rules and regulations of relevant regulators

and good corporate governance principle, and providing consultation with other divisions for further development and proper

internal control of the Bank’s and its subsidiaries’ systems.


• The conduct of business affairs is under the system

of check and balance with the Middle office, comprising

the Risk Control Unit and the Back Office, being separated

from the Front Office.

• The Bank puts in writing all the established policies

and guidelines regarding the risk management that specify

responsibilities of related units as the operational guidelines

for the employees. Moreover, the Bank has established

a four-step guideline for risk management comprising:

1) identification of the characteristics of risks as well as risk

factors, 2) development of appropriate tools and models for

risk measurement, 3) control of risks within acceptable limits

and 4) monitoring of risk status in order to properly manage

any possible risks in a timely manner.

• The determination of size and proportion of

different risk values by the use of risk calculation tools

and models allows the Bank to perceive the degree of severity

from possible risks. These risk variables could also be used

as the ceiling to control risk under the acceptable 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, examinable, and to take into

consideration the interests of shareholders, customers and

employees of the Bank.

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 the Bank 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,

the Bank 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 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, the

Bank 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

The Bank 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 Bank

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.


2013

Business type

2012

Debt balance

(thB Million)percent

Debt balance


Agricultural and mining 11,991 1.52 16,644 2.21

Manufacturing and commerce 80,969 10.25 88,813 11.78

Real estate and construction 50,638 6.41 51,325 6.81

Public utilities and services 68,224 8.64 63,263 8.39

Private consumption

Housing loans 83,673 10.59 82,621 10.96

Margin loans for securities business 3,317 0.42 2,613 0.34

Hire purchase 440,097 55.71 396,873 52.63

Others 28,209 3.57 31,117 4.13

Others 22,899 2.89 20,794 2.76

Total loans and accrued interest receivables 790,017 100.00 754,063 100.00

credit status, as of December 31, 2013 and December 31, 2012 classified by business types was as follows:

2013

loan classification

2012

Debt balance


Debt balance


Substandard 6,133 17.43 5,273 16.29

Doubtful 9,324 26.50 4,529 14.00

Doubtful of loss 19,724 56.07 22,563 69.71

Total 35,181 100.00 32,365 100.00

the npls ratios of the the Bank and subsidiaries that were financial institution

As of December 31, 2013 and December 31, 2012 were as follows:

The overall credit data revealed that the Bank’s lending on hire purchase business grew moderately from 52.63

percent as of December 31, 2012 to 55.71 percent of total loans as of December 31, 2013. Most of these hire purchase loans

were provided to retail customers whose credit lines were 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 the Bank and

subsidiaries. At this juncture, the Bank has put its efforts into controlling credit quality through appropriate policies and

procedures to regularly monitor the quality of the loans.


The non-performing loans of the Bank and subsidiaries that were financial institutions increased from THB 32,365

million as of December 31, 2012 to THB 35,181 million as of December 31, 2013. From the credit overview, the non-performing

loans accounted for 4.63 percent of total loans and accrued interest receivables, increased from 4.42 percent as of December

31, 2012.

2013

Business type

2012

Debt balance


Debt balance


Agricultural and mining 777 2.21 251 0.78

Manufacturing and commerce 10,383 29.55 11,943 36.94

Real estate and construction 2,736 7.79 3,730 11.54

Public utilities and services 6,432 18.30 3,705 11.46

Private consumption

Housing loans 4,426 12.59 4,375 13.53

Margin loans for securities business 0 0.00 0 0.00

Hire purchase 8,232 23.42 5,200 16.09

Others 1,716 4.88 2,567 7.94

Others 440 1.26 557 1.72

Total loans 35,142 100.00 32,328 100.00

the non-performing loans classified by Business types (excluding accrued interest receivables)

troubled Debt Restructuring

The risk on debt restructuring arises from the re-entry of the substandard debtors, i.e. after the debt restructuring,

the debtors again default on their repayments and hence re-enter the non-performing status. The problem poses adverse

effects on debt-restructuring performance of the Bank and its subsidiaries. As of December 31, 2013, the outstanding principal

and the accrued interest receivables of the restructured debt amounted to THB 30,377 million or 3.84 percent of total loans

and accrued interest receivables. The net restructured debt (less collateral) amounted to approximately THB 15,895 million.

(Unit: THB Million)

2013 2012

Number of debtors (persons) 44,471 54,854

Outstanding principal and accrued interest receivables 30,377 33,661

Loans not fully covered by collateral 15,895 19,573

Revaluation allowance for debt restructuring 301 344

Total loans and accrued interest receivables 791,026 755,129

Restructured debts to total loans (percent) 3.84 4.46


1.3 Risks from collaterals

For collateralized loans, the Bank carefully

assesses and classifies 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.

The Bank’s 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. The

Bank 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 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 the Bank 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 of which

ownership belongs to the Bank can be used as collateral.

In 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, the Bank 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 Risks from guarantees and Avals

Providing the current customer service, the Bank

and its subsidiaries are also obligated in forms of avals, letter

of credits and loan guarantees, which the Bank and its

subsidiaries are held responsible for, should the customers

are unable to fulfill their obligations. In managing such

risk, the Bank 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 the Bank.

As of December 31, 2013, the Bank and its

subsidiaries’ obligations in the form of avals and guarantees

for loans amounted to THB 28,688 million or 2.76 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 the Bank 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, the Bank’s policies are to control and manage these

risks to remain at an appropriate level and in line with the

Bank’s policy on risk management.

2.1 price Risk

Price risk arises when the Bank and its subsidiaries’

earnings or capital are adversely affected by changes in the

price of debt and equity instruments, causing the value of

THE BANK and its subsidiaries’ trading and available-for-sales

investment portfolio to decline.

The Bank 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. The Bank also determines

the various limits of transactions in order to control risk to

remain in an 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, the Bank requires

that the tools are subject to back-testing in accordance

with the Bank of International Settlement (BIS) standards.

Moreover, the Bank 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 the Bank’s earnings and required

capital should such events occur.


As of December 31, 2013, the Bank and its subsidiaries’ trading investments and available-for-sale securities classified

by type of investment were as follows:

2013

Fair Value (thB Million)

2012

Trading investments

Government and state-owned enterprise securities 4,975 5,643

Private debt securities 5,214 5,736

Foreign debt securities 0 628

Domestic marketable equity securities 16 16

Total trading investments 10,205 12,023

Available-for-sale investments

Government and state enterprise securities 71,805 55,433

Private debt securities 25,686 30,063

Foreign debt securities 14,543 11,746

Domestic marketable equity securities 1,344 7,691

Total available-for-sale investments 113,378 104,933

Total trading and available-for-sale investments 123,583 116,956

The trading investments value has decreased but the available-for-sale investments value has increased thus the

total investments value of the Bank and its subsidiaries has increased. The major increase has come from additional

investments in government and state-owned enterprise securities which has resulted in the increase of overall Price Risk

value of the Bank and its subsidiaries.

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 the Bank and its subsidiaries.

It is the goal of the Bank 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 the Bank’s shareholders, the Bank 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 the Bank 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 the Bank 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, 2013, classified by the period when the interest rates

would be repriced in accordance with contracts related to financial assets and liabilities of the Bank and its subsidiaries were

as follows:

items

Financial assets

Cash - - - - - 17,940 17,940

Interbank and money market items 973 48,127 11,088 - - 9,673 69,861

Derivatives - - - - - 3,914 3,914

Investments 2 1,755 27,513 85,381 18,673 6,765 140,089

Loans 332,015 17,918 11,604 312,602 115,317 561 790,017

Receivables from purchase

and sale securities and derivatives - - - - - 1,646 1,646

Receivables from clearing house - - - - - 170 170

Total financial assets 332,990 67,800 50,205 397,983 133,990 40,669 1,023,637

Financial liabilities

Deposits 245,203 222,425 221,391 23,207 - 6,853 719,079

Interbank and money market items 11,077 43,400 18,620 6,436 - 1,549 81,082

Liabilities payable on demand - - - - - 3,219 3,219

Derivative liabilities - - - - - 5,701 5,701

Borrowings 1,065 23,265 20,100 35,283 12,516 - 92,229

Payables from purchase and sale

securities and derivatives - - - - - 1,295 1,295

Payables to clearing house - - - - - 509 509

Total financial liabilities 257,345 289,090 260,111 64,926 12,516 19,126 903,114

period of interest rate repricing or due date

interest rate adjusted

in accordance with

market interest rate

0 - 3

months

3 - 12

months

1 - 5

years

over 5

years

no

interesttotal

(Unit: THB Million)

Based on the aforementioned structure of financial assets and liabilities, the Bank’s net interest income next year

would decrease should the market interest rate increase. This was mainly due to the expansion of the Bank’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 the Bank 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. The Bank’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, the Bank has also relied on hedging instruments such as forward contracts.


As of December 31, 2013, the Bank 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 the Bank 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 the Bank and its subsidiaries.

The liquidity risk management mechanism starts with the assessment of the cash flows and liquidity position over particular

time horizons of the Bank when the different levels of funds may be required to accommodate deposit withdrawal, reduce

other types of the Bank’s liabilities or increase the Bank’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 the Bank and the financial institution system.

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

be a revision of the significant occurrences that affect working operations. In this regard, the Bank and its subsidiaries have

assigned ALCO, controlling and managing the liquidity risk with a weekly meeting to monitor and manage risk.

The structure of the Bank’s capital fund could be classified by different types and maturities of sources of funds as

follows:

2013

2013

2012

2012

percent

percent

Deposits 719,079 80.58 698,372 80.80

Interbank and money market items 81,082 9.09 87,777 10.16

Borrowings 92,229 10.33 78,149 9.04

Total 892,390 100.00 864,298 100.00

Less than 1 year 798,311 89.46 789,474 91.34

More than 1 year 94,079 10.54 74,824 8.66

Total 892,390 100.00 864,298 100.00

percent

(Unit: THB Million)

capital Funds classified by sources

capital Fund classified by Maturities

As of December 31, 2013, deposits and borrowings of the Bank and its subsidiaries amounted to THB 892,390 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, the Bank and its subsidiaries also issued other products such as debentures

in order to increase the saving alternatives for their customers.

percent

(Unit: THB Million)


At callless than

1 year

More than

1 year

the maturity date of financial instruments

not specified total

Financial assets

Cash 17,940 - - - 17,940

Interbank and money market items 10,233 59,508 120 - 69,861

Derivatives - 3,914 - - 3,914

Investments 1 37,792 95,618 6,678 140,089

Loans 62,562 224,489 502,966 - 790,017

Receivables from purchase and sale securities

and derivatives - 1,646 - - 1,646

Receivables from clearing house - 170 - - 170

Total financial assets 90,736 327,519 598,704 6,678 1,023,637


Deposits 248,085 443,392 27,602 - 719,079

Interbank and money market items 12,403 62,131 6,548 - 81,082

Liabilities payable on demand 3,219 - - - 3,219

Derivative liabilities - 5,701 - - 5,701

Borrowings 1,065 31,235 52,799 7,130 92,229

Payables from purchase and sale securities and

derivatives - 1,295 - - 1,295

Payables to clearing house - 509 - - 509

Total financial liabilities 264,772 544,263 86,949 7,130 903,114

Off-balance sheet items

Avals to bills and guarantees of loans 15 571 79 - 665

Obligation under unmatured import bills 42 604 - - 646

Letter of credits 326 3,741 - - 4,067

Other commitments 43,886 4,959 2,449 - 51,294

Total off-balance sheets 44,269 9,875 2,528 - 56,672

(Unit: THB Million)

The financial assets and liabilities as of December 31, 2013 classified by maturity date were as follows:

4. operational Risk

The operational risk is the risk that arises from the damage that occurs from lack of good corporate governance within

the organization. Risk may also arise from the inadequate efficiency of the internal audit and internal control systems which

could be relating to internal operation process, personnel, systems or external events. This also includes legal risks such as

litigations, exploitation by the government and also damage from settlements outside the courtroom. Such risks can pose

adverse impact on other risks, especially strategic risk and reputation risk.

items


The Bank has established policies and guidelines to

ensure the prevention and monitoring of this type of risk. As

the internal control system is an important tool in controlling

and preventing potential risk that may occur, the Bank has

implemented an efficient internal control system as follows:

• Regarding the organization of the Bank’s structure,

the Bank has specified the roles, the scope of duties and

responsibilities for each position, based on a system of check

and balance. The front office where all the transactions take

place is separated from the middle office, comprised of the

Risk Control Department and the back office who record all

items in the transactions.

• Establish the transaction-supporting units which are

independent and have expertise in their respective fields of

work such as information technology unit, legal and appraisal

unit in order to prevent any possible errors that may arise.

• Put operational procedures and regulations

related to all types of transaction, staff manuals as well as

the authority ranks for approval in writings as a guideline

to set the same standards for all internal operations within

the organization.

• Establish the Audit Committee and the Risk

Management Committee to control, monitor, and assess the

risks of the Bank. The committees are responsible for examining

and correcting the pitfalls in order to create soundness and

efficiency in the Bank’s operation.

• Improve the management of the information

technology system and information security system in order to

enhance its potential to accommodate business expansion

and gain credibility from the customers in the aspect of data

and technology. A particular focus is given to the prevention of

damages from unauthorized access to the Bank’s information.

• Formulate the Business Continuity Plan which

consists of an emergency plan, a plan for backup systems,

and a business recovery plan to prevent disruption in

business operation. In addition, the drills are essential to test

the readiness and to consistently improve the plans for its

effective implementation.

The Bank also employs the services of the third party

to operate some group activities as per the direction of the

work operations of financial institutions at present and in the

future. The Bank determines policies in order to manage the

risk that may occur from outsourcing. These policies have to

also be subject to regulations of BOT and must be beneficial

to the internal control of the Bank as well.

In the measurement and assessment of operational

risk, the Bank determines a principle, form or condition of

the process used in the measurement and assessment of

risk in the Bank. In the determination of this process, the

Bank considers the circumstantial factors such as supervising

guidelines of the government units associated with the Bank,

state and complexity of the business, the capability of the

Bank in accepting risk, probability, likelihood or frequency

as well as the impact or severity of risk that has happened

or may happen. As per BOT’s specification for commercial

banks to maintain funds in proportion to risk-weighted assets

in terms of credit, market and operation according to Basel

III guidelines, the Bank has employed the Basic Indicator

Approach to calculate operational risks.

In addition, to monitor operational risk, the Bank

determines a policy for executives of each department to

be responsible for monitoring the risk by considering this as

a part of their regular duties. This will help promptly identify

all risks and problems that occur in order to respond to the

changes in an appropriate and timely manner, not damaging

to the Bank. Nevertheless, to be informed of the result of

business operations and problems that occur, as well as

trends and changes in information of risk factors, the Bank

organizes a filing and reporting of the information associated

with operational risk management such as information on

data loss, key risk indicators and important risk points to be

continually and regularly reports to the Board of Directors,

the Risk Management Committee and the executives to use

in the determination of policies, to develop a sufficient risk

management system and to be a tool in aiding the Bank to

evaluate the capability and efficiency of the internal control

system.

5. strategic Risk

This type of risk arises from the inappropriate

formulation of strategies, business planning and

implementation which are not compatible with internal setups

and external environment, resulting in an adverse impact

on earnings, capital or the existence of the Bank and its


subsidiaries. In managing the strategic risk, the Bank

formulates strategies for the next three years which are reviewed

annually or when there is an external event that may impact

the achievement of the Bank’s business goals. The Executive

Committee is responsible for regular monitoring and evaluating

the performance of the work units upon the established

targets stated in the annual operation plan.

6. Regulatory Risk

The regulatory risk arises from amendments or

changes in regulations, laws or requirements of the authorities

especially the BOT. Changes in the authority’s policy may

affect the strategies and business operations of the Bank

and its subsidiaries.

In addition, the assessment of regulatory risk in 2013

took both internal and external factors of the Bank into

consideration which included the direction of authorities’

governance and reports, business policy, and internal systems

supporting specific matters for consideration by assigning

different weights, and the possibility of risks to arise from

complying with the regulations in order to establish the

guideline governing the Bank’s operations to be in line with

related regulations.

Issues of high risk level in 2013 were as follows:

1. The operations related to Anti Money Laundering

Act (AMLO), Ministerial Regulation on Customer Identification,

and Counter Terrorism Financing Act because these are new

laws and regulations which require the duties of knowing

the customers and monitoring the customers’ irregular

transactions especially the high-risk customers. Therefore,

the Bank has organized the training aimed to provide the

knowledge to the operations officers to have certain extent

of understanding, and has developed the system to support

information recording, and products reporting to AMLO in

order to assure the regulatory compliance.

2. The operations of Limited Broker, Dealer, and

Underwriter (LBDU) because of new requirements and

authorities’ expectation of brokers to offer and sell securities

suitable for the acceptable risk level of each customer by

conducting the Suitability Test, and to comply with the BOT’s

regulations on Cross Selling, regular adjustment of work

process is inevitable.

3. The operations related to Foreign Account Tax

Compliance Act (FATCA) because it is the new law and

regulation enforced by the U.S. which complicates the

operation, the Bank is in the process of preparing the work

system to support the regulatory compliance. The Bank will

provide knowledge to the officers to understand prior to the

law enforcement.

4. The operations related to credit information even

though the Bank has the information access control system,

information access verification by responsible unit, the

officers with good knowledge and understanding of relevant

regulations, and IT system development for credit information

access that requires the user verification prior to accessing

the information, the system allows a lot of users to access

the information by themselves so both intentional and

accidental errors can occur; therefore, this issue must be

closely monitored.

7. Risk from capital inadequacy

Since January 1, 2013, the Bank calculates its capital

to cushion any possible risks, in accordance with Basel III

criteria as follows:

• Credit risk by means of the Standardized Approach

• Market risk to explore status of market risk by

means of the Standardized Approach

• Operational risk by means of the Basic Indicator

Approach

In addition, the Bank has assessed its future capital

adequacy based on budget and 3-year business plan. The

calculated risk is capped with risk capital budget in which the

Risk Management Division monthly reports the adequacy of

capital to the Executive Committee and the Board of Directors

to ensure that the Bank has sufficient capital after risk capital

allocation to support sustainable business’ growth as planned.

As of December 31, 2013, the Bank’s total capital

registered was THB 110,683 million of which THB 64,401

million was Tier I capital and THB 39,865 million was for Tier

II. The CET 1, Tier 1 and BIS ratios amounted to 8.61 9.47

and 14.80 percent respectively which exceeded the BOT’s

minimum capital requirement at 4.50, 6.00 and 8.50 percent

respectively.


coRpoRAte sociAl ResponsiBility (csR)

corporate social Responsibility (csR)

Thanachart Group is determined to play a participative role in building and developing society, by continuing

conducting business operations and social responsibility activities at the same time. Although the goal of its operations is

to make profit, Thanachart Group conducts its business affairs within the ethical framework and in line with good corporate

governance principles, ensuring both transparency and accountability. The purpose is to be an organization capable of

developing and operating business in a sustainable manner while maintaining a balance between economic success, social

responsibility and environmental protection. It has always been the Group’s intent to be a socially and environmentally

responsible organization, both in the conduct of business affairs and in the implementation of corporate social responsibility

activities. The purpose is to play a complementary role in supporting social development, environmental protection,

as well as promotion and conservation of the Thai culture which serve as an important foundation for strengthening the

society and communities in a sustainable manner. Importantly, the Group also encourages its employees to participate

in socially responsible activities.

Thanachart Group’s Corporate Social Responsibility (CSR) Committee has been established for the purpose of

developing and promoting efficient work systems capable of ensuring that the Group’s CSR activities and the related

procedures are transparent and accountable. The members of the CSR Committee are selected from qualified experts, both

within and without the Group, who possess knowledge and experience in CSR activities. The Committee is responsible

for reviewing, directing and advising about the Group’s CSR activities.

In this connection, in order to make sure that the Group’s CSR activities cover all key areas as much as possible,

Thanachart Group has selected the following topics as its focus areas:

1. Conduct business affairs fairly,

2. Fight against fraud,

3. Respect human rights,

4. Adopt fair labor practices,

5. Demonstrate responsibility towards consumers,

6. Participate in social and community development, and

7. Protect the environment

In relation to its CSR activities, apart from focusing on the above areas, Thanachart Group also takes into consideration

the interests of all stakeholder groups, regardless of whether they are shareholders, lenders, the Boards of Directors of the

Bank and its subsidiaries, employees, customers, trading partners, competitors or even the society and the environment.

It is the Group’s intent to treat them appropriately and fairly. The following are the practice guidelines for each group:


Shareholders

Lenders

Boards of Directors of the Bank and its

subsidiaries

Employees

Customers

Trading partners

Competitors

Society and Environment

Conduct business affairs in line with Thanachart Group’s good corporate

governance policies.

Fulfill terms and conditions of agreements with lenders, ensuring that

information provided is transparent and accountable.

Direct and govern business affairs, ensuring that they are conducted in line

with Thanachart Group’s good corporate governance policies.

Train employees and enhance their potential on a continuous basis, treat

them fairly based on the principles of human rights, and provide them with

a working environment which is in a sound, safe and sanitary condition.

Develop products and services on a continuous basis, ensuring that they

meet the needs of all customer groups. Also make sure that employees keep

all customer information completely confidential in line with the guidelines

prescribed in the Handbook of the Code of Ethics.

Comply with the policies and practice guidelines pertaining to procurement

and employment, ensuring fairness to all the concerned parties.

Comply with established rules and compete fairly by adhering to the

requirements of the related laws and code and conduct. Also do not accuse,

defame or aggravate to competitors.

Conduct of business affairs in a fair manner. At the same time, pay attention

to social and environmental development as well as encouraging employee

participation.

stakeholders practice guidelines

Although Thanachart Group has not yet included the stakeholder engagement in the implementation of its CSR

activities in order to establish linkages between the stakeholders and its performance, the Group clearly recognizes the

importance of such engagement. To ensure that its CSR activities can meet and be aligned with the needs of all the

stakeholder groups, the Group is committed to developing practice guidelines for implementing stakeholder engagement

activities in the future.

process in preparing thanachart group’s Reports

The standards adopted by Thanachart Group in developing practice guidelines and preparing CSR reports are based

on the Stock Exchange of Thailand (SET)’s Approach to Social Responsibility Implementation for Corporations, which are

widely recognized by organizations and practitioners working in the field of corporate social responsibility. Adopting the SET’s

approach represents a good start for the Group in developing its reports and in preparing itself for sustainability reporting

in the future as the sustainability reports will have to include all the key aspects that need to be reported, both at the national

and international levels.


Establish policies to fight against

fraud

Provide education about ethics

Control and Protection

of Complainants

Join a social alliance network

in fighting against corruption

- Establish good corporate governance policies which will serve as practice framework

for executives and employees.

- Specify key topics about fighting against fraud in the Code of Conduct and regularly

disseminate the information to executives and employees.

- Adopt a key business principle not to support any businesses, groups of people or

individuals who take an unfair advantage of abuse of power or authority.

- Regularly recheck and evaluate the knowledge and understanding of executives and

employees about the observance of the Code of Conduct.

- Run monthly training courses on the good corporate governance policies and the

handbook of the code of ethics for new staff at all levels. After attending the courses,

they will be requested to sign an acknowledgement of the policy and the handbook.

- Develop an e-learning online corporate governance courses and making them accessible

via intranet so that the staff members can study and learn about the corporate governance by

themselves.

- Under a project entitled “Thanachart Tham Dai Dharma Dee….CG initiatives and dharma

practice”, encourage various work units to perform their functions in line with the

principles of good corporate governance through a broad range of corporate media.

The objective is to provide the staff with knowledge and understanding about the

policies and the ethics, using easily accessible presentations such as VTR, short films,

animation movies, and interviews with famous people from various fields as well as

national experts in corporate governance. Coordinate with the Office of the National

Anti-Corruption Commission (NACC) and the Anti-Money Laundering Office (AMLO)

for audio-visual aids related to knowledge and understanding about anti-corruption

and anti-money laundering. In addition, organize activities under the Dharma Practice

Program in Bangkok and its vicinities as well as in the regions. The objective is to

equip the staff with a means to calm one’s mind at work and in daily life.

- Put in place channels accessible by staff or third parties for communicating complaints

or information about fraud or wrongdoing. The available channels include, among others,

letter, telephone, fax, website, facebook and internal communication channels.

- Set clear duties and responsibilities for the work unit responsible for handling

complaints. Also specify available channels for submitting complaints and the detailed

procedures following the receipt of complaints.

- Conduct investigations in a fair manner and inform the complainant of the investigation

results in accordance with the established procedures.

- Issue a declaration of intent to join the Collective Action Coalition against Corruption

(CAC) established by Thailand’s private sector to fight against corruption.

Focus Areas practice guideline

Key Areas in implementation of csR Activities

Having analyzed the impacts on the stakeholders and the business performance, Thanachart Group deemed it appropriate

to prioritize key areas in relation to the corporate social responsibility activities. In this connection, there were altogether five key

areas of CSR activities to be implemented in 2013. The practice guidelines for each key area could be summarized as follows:

1. Fighting against fraud


2. Adopt fair labor practices

3. conduct business affairs fairly

Employment

Welfare and Staff Care

Human Resource Development

and Enhancement of Employee

Potential

Encourage employee

participation

Code of Conduct

- Ensure strict adherence to Labor Protection Act B.E. 2541.

- Draw up recruitment guidelines and rules which are clear, transparent and accountable.

- Put in place systematic recruitment and selection processes.

- Set up a welfare committee for various buildings in the business establishment.

The Committee represents the staff in discussing with and giving comments to the

Company and its subsidiaries on matters pertaining to the staff welfare.

- Developing clear personnel policy manual and employee handbook, with focus given to

prevention of discrimination. Also specify clearly the employee benefits to be received.

- Focus on creating a learning organization by supporting the appropriate development

of employee potential in a continuous manner.

- Develop an employee performance appraisal system which is efficient, transparent,

fair, and accountable.

- Encourage employees to participate in the planning and implementation of CSR

activities.

- Provide all employees with opportunities to give their opinions or suggestions in an

appropriate manner through various channels available.

- Establish a Code of Conduct for the Company’s Directors and employees, specifying

clearly the Bank’s guidelines for ethical business practice.

- Ensure observance of the Code of Conduct which also includes prevention of conflict

of interests as well as prevention of money laundering.

- Establish a Code of Conduct for the Company’s Directors, executives and employees.

The Code will serve as practice guidelines and role models to shape how one should carry

out duties and responsibilities in a fair manner and how one should take responsibility

for oneself, fellow colleagues, supervisors, and subordinates as well as all the stakeholder

groups.

- Prepare a 2013 declaration vowing to refrain from taking unfair advantage, and a form

for self-assessment on the good corporate governance and ethics. The initiatives are an

integral part of the Enhanced CG Awareness Program No. 1/2013. In this connection,

99.7 percent of the employees signed the declaration and filled out the self-assessment

form. Out of the participating employees, 95.7 percent answered the questions in the

form correctly.

- Improved the good corporate governance policy and the Code of Conduct on 28

October 2013, ensuring that they were in line with the updated assessment criteria of

the Thai Institute of Directors Association (IOD) for evaluating corporate governance,

which would be used for evaluation in 2014. In this connection, the Stock Exchange

of Thailand (SET) has revised corporate governance principal for listed companies in

2012. (It was publicized in May 2013.)

Focus Areas

Focus Areas

practice guideline

practice guideline


4. Demonstrate responsibility towards consumers

5. collaborate on protection of the society and the environment

Support trading partners

that are socially responsible

Give clear information about

products and services to

consumers in an appropriate manner

Protect consumer rights

Support and promote social

development in collaboration with

all the organizations concerned,

both in the public and private

sectors, as well as non-profit

organizations.

Promote energy conservation

and environmental protection.

- Summarize and share the updated corporate governance policy and the revised

Handbook of the Code of Conduct with members of Thanachart Group. Provide them

with advice so that they could apply the updated policy and handbook as they deem

appropriate, taking into consideration each company’s nature of business.

Adopt a clear policy not to do business with any trading partners that are not socially

responsible, such as violation of human rights by using child labor or engagement in

illegal or immoral business activities.

Publicize products and services, providing all customers and members of the general

public with detailed product information and the related supporting manuals which are

clear and easy to understand.

- Deliver high quality services that meet professional standards and keep customer

information confidential.

- Require employees to strictly safeguard the confidentiality of customer information

and refrain from disclosing any customer information to any third party.

- Keep customer information confidential and refrain from inappropriate use of the

information for the benefit or advantage of the Company and other related parties,

unless required by law.

- Establish systems or channels through which customers can give opinions or file complaints

about services. Take corrective actions and inform the customers in a timely manner.

- Participate in the planning and implementation of activities related to social and community

development in collaboration with organizations both in the public and private sectors

as well as non-profit organizations. These activities include, among others, education,

promotion and conservation of Thai cultures, environmental protection as well as civil

society strengthening.

- Establish clear policies on energy conservation.

- Support and encourage employees to recognize the importance of energy conservation

and environmental protection in an enthusiastic and sustainable manner.

Focus Areas

Focus Areas

Focus Areas

practice guideline

practice guideline

practice guideline


1 - 3. Presentation of Royal Krathin Robes in 2013

at Wat That Phra Aram Luang, Muang District,

Khon Kaen Province.

1

2 3

csR-after-process

This type of corporate social responsibility covers any

activities other than those undertaken in the ordinary course

of its business. Thanachart Group had been involved in this

type of activities for a long time since the beginning of its

operations. Later, as 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 are supported by

the regional hubs with cooperation from the staff members of

Thanachart Bank and those of its subsidiaries in each region.

Their customers, business counterparts and people living in

communities are also invited to participate in the activities.

In addition, the Thanachart Foundation for Thai Society

has been established to serve as a key mechanism for driving

Thanachart Group’s various CSR activities. Most of the

Foundation’s activities place emphasis on construction of

a creative society as well as social development. It has set a

target to build various prototype models for social and community

development. The objective is to provide the communities and

the society with knowledge to facilitate development, make

improvements and changes on their own. Focus is given to

knowledge, concepts, practical skills, confidence and the ability

to make their own decisions, as well as right attitudes and

appropriate value systems for making a living and improving

their own livelihoods, in accordance with His Majesty the King’s

“self-sufficiency economy” concept. Emphasis is also placed

on development of networks and collaboration for providing

the society with humanitarian assistance when it is faced with

various situations.

The following are details about the Central CSR activities

implemented by Thanachart Group’s central organization and

the network hubs in 2013:

csR Activities of central organization

These are activities which have been continuously

implemented by the Group’s central CSR organization in collaboration

with Thanachart Foundation for Thai Society. The objective is to

develop a creative society on various dimensions including

promotion of Thai cultural identity, preservation of Buddhism,

as well as educational support. In this connection, the following

are the activities implemented by the central CSR organization

in 2013:

projects for preservation of Buddhism

presentation of Royal Krathin Robes in 2013

Thanachart Bank has been hosting the presentation

of Royal Krathin Robes for eight years. The presentation first

took place in 2006 at Wat Keaw Kro Wararam Temple in

Krabi Province. Since then, the Bank has been organizing

the activity on an annual basis, with focus on the dimension


4 - 5. Mr. Brendan George John King humbly presented

proceeds from TBANK’s participation in the Annual

Red Cross Fair to Her Royal Highness Princess

Maha Chakri Sirindhorn.

6 - 7. “Thanachart Initiates and Fulfills Thai Identity”

Project.

4

6

5

7

of preserving Buddhism, royal temples and Buddhist places

of workship so that they continue to exist as long as Thailand

does.

In 2013, Thanachart Bank was graciously bestowed

by His Majesty the King to offer the Royal Robes at Wat That

Phra Aram Luang, Muang District, Khon Kaen Province. In this

connection, member companies of Thanachart Group, their

customers, trading partners, executives, and staff members

as well as members of the general public jointly donated

10,413,028.25 baht in good faith to the temple as part of the

funds to be used for constructing Buddha Phra Lab Viharn

to house the image of Venerable Monk Phra Lap, which is

Khon Kaen’s most important image. In addition, scholarships

were awarded to needy students with good academic records

and good behavior. Donations were also given to schools in

the area to support education.

project to support Red cross

“Annual Red cross Fair” Activity

Thanachart Bank participated in the sale of Red Cross

lottery tickets as well as the Red Cross Fair which has been

organized annually. In 2013, the 37th anniversary fair was held

from 29 March to 6 April 2013 in Suan Amporn Park, under

the theme “Annual Red Cross Fair 2013 in Commemoration

of the 120th Anniversary of the Thai Red Cross Society and

in Jointly Bringing Happiness to People”. The continuing

participation in the Annual Red Cross Fair for 37 years was

an extension of the project implemented earlier by Bangkok

Metropolitan Bank and Siam City Bank respectively. The net

proceeds from its sales of Red Cross lottery tickets and from

its participation in the fair were humbly presented annually

to Her Royal Highness Princess Maha Chakri Sirindhorn,

Executive Vice-President of the Council of the Thai Red Cross

Society, for charity at the discretion of Her Royal Highness

as partial financial support to the Council. In this connection,

Thanachart Bank was among the top five donating organizations.

The participation in the annual fair could be traced

back to the year 1976 when Bangkok Metropolitan Bank was

the only commercial bank which was invited to join the Red

Cross Fair, at which the bank used the name of ‘Bangkok

Metropolitan Bank’s Booth’. Later in 2002 when Bangkok

Metropolitan Bank merged with Siam City Bank, Siam City Bank

participated in the fair, using the name of ‘Siam City Bank’s

Booth’. In 2011 when Siam City Bank merged with TBANK,

the name at the fair was changed to ‘Thanachart Bank’s Booth’.

Today, it is still the only commercial bank with a booth at the

Annual Red Cross Fair in Suan Amporn Park.

project for promoting thai cultural identity

“thanachart initiates and Fulfills thai identity” project

This activity of Thanachart Bank is an extension

of Siam City Bank’s previous project entitled “Siam City


8 - 9. Photographs taken at the Garuda Museum by

Thanachart Bank, which was located at the

Bangpu Training Center.

10 - 11. Activities for supporting construction of roof

structures of young child development center

and awarding of scholarships to children of

soldiers assigned to the three southernmost

provinces, at the 3rd Infantry Battalion of 11

th

Infantry Regiment of King’s Own Guards,

Phetchaburi-Racha Sirindhorn Military Camp,

Phetchaburi Province.

8

10 11

9

Bank Conserves Thai Identity” which has been continuously

implemented for over 40 years. The project was first initiated in

1972 in the form of a contest organized on “Thai Manners” under

the auspices of Bangkok Metropolitan Bank. Later in 1980,

the first “Reading Aloud Contest by Bangkok Metropolitan

Bank” was organized. In 1995, it was humbly requested that Her

Royal Highness Princess Maha Chakri Sirindhorn graciously

give Royal Cups to top winners of the two contests. In 2002,

Bangkok Metropolitan Bank merged with Siam City Bank and

the name of the project was changed to “Siam City Bank

Conserves Thai Identity”. The key purpose of the Project was

to maintain and preserve Thai identity including reading aloud

Thai and using Thai manners in daily life. The project helps

preserve the unique identity and prevent their disintegration

over time as a result of the social situation in which many

people get carried away by fads and fashion. Moreover, the

project helps inculcate in Thai youth the love of Thai culture.

The love makes them cherish the culture and helps keep it

as part of Thai society forever. Both Thai language and Thai

manners are widely recognized as unique characteristics of

Thai identity. Since Siam City Bank merged with TBANK,

the activity has been continuously implemented under the

project entitled “Thanachart Initiates and Fulfills Thai Identity”.

The project consists of two main activities including

reading aloud contests and Thai manners contests. First

rounds of the contests to select qualified candidates are

organized in four regions including North, North East, South,

and Central. Educational institutions are provided with an

opportunity to send students from Prathomsuksa 1 to the

university level as their representatives to participate in the

contests to compete for Her Royal Highness Princess Maha

Chakri Sirindhorn’s Cups, honorable shields and certificates of

honor, as well as scholarships. In 2013, over 1,000 educational

institutions participated in the “Thanachart Initiates and Fulfills

Thai Identity” project.

garuda Museum by thanachart Bank

“The Garuda Museum by Thanachart Bank” is considered

the first and only Garuda museum in ASEAN. Its establishment

could be traced back to the event on 1 October 2011 in

which Thanachart Bank acquired Siam City Bank. Before the

acquisition, Siam City Bank had been operating for over 70

years and the Royal Garuda Emblems had been graciously

bestowed by His Majesty the King upon the Bank for display

at its headquarters and branches since 1941. After the merger

with Thanachart Bank in 2011, it was necessary to dismount

Garuda Emblem (Garuda as the vehicle of Vishnu) in

compliance with the Garuda Emblem Act (No. 2) B.E. 2535 (1992).

Thanachart Bank recognized the value and the importance

of the Royal Garuda Emblem which Thai people had a great

faith in and a strong relationship with. The Emblem was also

a symbol representing His Majesty the King of Thailand.

As a result, the Bank respectfully relocated the Emblems from

the headquarters and branches to its Bangpu Training Center

in the municipal area of Tambon Bangpu, Samut Prakan Province.

This was followed by the founding of the Garuda Museum


12 13

which was designed and created so that visitors could learn

about the origin of Garuda in the history from the viewpoints

of both Buddhism and Brahmanism. Importantly, an area in

the museum had been set aside for exhibiting the Emblems

which were respectfully relocated from Siam City Bank’s

branches. One of the objectives of the exhibition was to

reflect the Royal Garuda Emblem’s relationship with the

country’s three fundamental institutions, namely the Nation,

Religion, and Monarchy. In addition, the museum served as a

resourceful place for children, youth, and interested members

of the general public to learn about the history.

projects to Keep up and Boost Morale of soldiers Assigned

to the three southernmost provinces and their Families

Activities for supporting construction of Roof structures

of young child Development center and Awarding of

scholarships to children of soldiers Assigned to the three

southernmost provinces

Recognizing the sacrifice of the soldiers assigned to the

three Southernmost provinces and understanding the sufferings

of the families of those soldiers who were killed or became

disabled during the assignment, Thanachart Bank in collaboration

with the Thanachart Foundation for Thai Society organized

activities aiming at keeping up and boosting the morale of the

soldiers in the three provinces and their families. The activities

included the support for constructing roof structures of

young child development center at the 3rd Infantry Battalion

of 11th Infantry Regiment of King’s Own Guards, Phetchaburi-

Racha Sirindhorn Military Camp, Phetchaburi Province,

which is the work unit responsible for assigning soldiers to

the border provinces. Four scholarships were awarded in

the past year to children of soldiers who died or became

disabled and twenty-one scholarships were also awarded to

children of those soldiers who had been or were assigned

to the three provinces.

csR Activities of network hubs

These were CSR activities implemented by various

network hubs located in all the different regions of Thailand.

The key objectives were to conserve local cultural heritage;

to promote collaboration among staff members, customers,

members of the general public, and different agencies,

in both the private and public sectors, which were located

in the areas; and to play a complementary role in promoting,

enhancing, and publicizing the regional tourism. The following

are the activities or projects implemented by the 12 network

hubs in 2013:

1. Candle festival for the Buddhist Lent in 2013, which

was implemented by the Network Hub 4 of the northeast

region (Ubon Ratchathani),

2. Project for constructing a temple assembly hall to

house to the image of Phra Lap, which was implemented by

the Network Hub 2 of the northeast region (Khon Kaen),

3. Traditional long-tailed boat racing festival in 2013,

which was implemented by the Network Hub 2 of the northern

region (Phitsanulok),

4. Festival of the tenth lunar month to pay respect to

deceased ancestors, which was implemented by the Network

Hub 3 of the southern region (Nakhon Si Thammarat),

5. Conservation of Phuket vegetarian festival in 2013,

which was implemented by the Network Hub 1 of the southern

region (Phuket),

6. Conservation of Chinese vegetarian festival in

2013, which was implemented by the Network Hub 4 of the

southern region (Hat Yai),

12 - 13. Blood Donation in “Honor of the Royal Father

and Mother” in 2013, which was implemented by

the Network Hub 2 of the northeastern region

(Khon Kaen).


7. Conservation of the annual festival to observe

religious precepts and eat vegetables, which was implemented

by the Network Hub 2 of the southern region (Surat Thani),

8. Annual teacher day in commemoration of 18th quarter

at Wat Laharn Rai and the auspicious ceremony for gold

casting of Luangpu Tim’s images, which was implemented

by the Network Hub 2 of easthern region (Rayong),

9. Thewo alms offering traditional festival in which

the special food named Khao Tom Luk Yon was offered to

monks. The activity was implemented by the Network Hub 2

of the central region (Saraburi),

10. Conservation of buffalo racing festival, which was

implemented by the Network Hub 1 of the eastern region

(Pattaya),

11. Conservation of Yi Peng festival, which was

implemented by the Network Hub 1 of the northern region

(Chiang Mai),

12. Ayutthaya World Heritage Fair 2013, which was

implemented by the Network Hub 1 of the central region

(Ayutthaya).

In addition, there was a blood donation activity

called “Blood Donation in Honor of the Royal Father and

Mother” which has been implemented by the Network Hub 2

of the northeastern region (Khon Kaen) for nine consecutive

years. The activity involved a campaign aiming at encouraging

both members of the public and staff members to donate

blood in honor of His Majesty the King and Her Majesty

Queen Sirikit for charity. Donating blood not only helped save

the lives of victims of emergent accidents but also alleviated

blood shortage during treatment. The activity was well

supported by the Faculty of Medicine, Khon Kaen Unviersity,

who facilitated the blood donation. Moreover, the Bank also

gave financial health check-up to those who participated

in the activity. Tree seedlings were also distributed to the

participants, as part of the fight global warming campaign.

The objective was also to instill into people the cooperation

in preserving the environment. In 2013, 596 people donated

243,100 cc of blood to the Thai Red Cross Society.


ResponsiBilities oF the BoARD oF DiRectoRs

FoR the 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 financial

reporting standards, applying appropriate and consistent accounting policies along with careful judgments and reasonable

estimates. Important information is fully disclosed to shareholders and other investors in the notes to financial statements

reflecting the Bank’s accurate financial status and performance and its commitment to transparency.

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

control systems 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 significant irregular operations or frauds.

TBANK’s Board of Directors has appointed the Audit Committee comprising independent directors who have

knowledge and expertise in finance and accounting. They are responsible for revision of accounting policies and the quality

of the Bank’s financial statements, internal control, and internal audit, 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 and its subsidiaries’ 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 and its subsidiaries’ separated and consolidated financial statements for the year ended December 31,

2012 which is in compliance with financial reporting standards and relevant rules and regulations.

(Mr. Banterng Tantivit)

Chairman of the Board of Director

(Mr. Somjate Moosirilert)

Chief Executive Officer and President


RepoRt oF the AuDit coMMittee

The Audit Committee of Thanachart Bank Public Company Limited “TBANK” consisted of three independent

directors, who are highly qualified and have experience in accounting, finance, financial institutions and large corporations.

The composition was as follows;

1. Mr. Kiettisak Meecharoen Chairman

2. Assoc. Prof. Dr. Somjai Phagaphasvivat Member

3. Mr. Sataporn Jinachitra Member

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 the Bank of Thailand (BOT) as stated in the charter stipulated by the Board of Directors.

In 2013, the Audit Committee convened eleven meetings in total with the management, top level executives of

the related business units and auditors to acknowledge and consider numerous matters as of the following:

• Financial Statement

Reviewed the quarterly, year-end and consolidated financial statements of TBANK and its subsidiaries by consulting

with the external audits and management of Chief Financial Officer (CFO) in order to ensure financial reporting 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

Reviewed the Bank’s internal control system and internal audit is effective. In consultation with the internal auditors

in planning and approving the annual audits plan, consider the adequacy, and appropriateness of personnel in the performance

and independence of internal audit by monitoring and evaluating of performance every month, assess the ability of authorities

in order to improve the knowledge and performance, provide expert review of the audit and consider examination report of

the BOT’s and the auditor in order to assess the adequacy of the internal control system.

• Regulatory Compliance

Reviewed the performance of the Bank to comply with laws and regulations, such as the SEC, SET, IOC and BOT

and acknowledged changes of any rules or regulations that affected operation and ensured the adjustment of operations in

response to those changes.


• Risk Management

The Audit Committee has focused on risk management and is aware that any change in economy, politics and

society will significantly affect the risk management of the Bank. We have meetings with the risk management group in order

to make sure that of the Bank has appropriate, adequate and effective oversight.

• Audit Committee’s Charter

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

evaluation of the performance of the Audit Committee including the results of the evaluation which showed that audit compliance

as set forth in the Charter and performance were in line with the best practices that strengthened good governance effectively.

• Independent Auditor

Nomination of the auditor of the Bank by considering qualifications, capabilities, experiences, independence and

quality of previous works and the remuneration of the auditors in line with responsibility by the Board of Directors to propose

to the shareholders appointing the auditors and approving the remuneration of the auditors.

• Related transactions or conflict of interest

Related transactions or transactions which may have conflict of interest based on the principle of accountability,

transparency and adequate disclosure to the relevant authorities, as reported from business units before proposing to

the Board of Directors.

The Audit Committee performed its duties prudently and independently, and provided straightforward comments based

on transparency and good governance. The Audit Committee considered core operation jointly with senior executive in charge

of concerned groups, and internal and external auditors. The Audit Committee is of the opinion that financial statements have

been prepared accurately with adequate information disclosure. The internal control, internal audit and risk management have

been appropriate, effective, and in compliance with laws and regulations. Independent auditor was independent to perform

duties. Transactions and transactions that may have potential conflicts of interests are reasonable and normal business

activities, including adequate disclosure.

(Mr. Kiettisak Meecharoen)

Chairman of the Audit Committee


inDepenDent AuDitoR’s RepoRt

To the Shareholders of Thanachart Bank Public Company Limited

I have audited the accompanying consolidated financial statements of Thanachart Bank Public Company Limited and

its subsidiaries, which comprise the consolidated statement of financial position as at 31 December 2013, and the related

consolidated statements of comprehensive income, changes in equity and cash flows for the year then ended, and a summary

of significant accounting policies and other explanatory information, and have also audited the separate financial statements

of Thanachart Bank Public Company Limited for the same period.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance

with Thai Financial Reporting Standards, and for such internal control as management determines is necessary to enable

the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in

accordance with Thai Standards on Auditing. Those standards require that I comply with ethical requirements and plan and

perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial

statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material

misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor

considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to

design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on

the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies

used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation

of the financial statements.I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis

for my audit opinion.


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 2013, and their financial performance and cash flows for the year then ended, in accordance with Thai Financial

Reporting Standards.

Emphasis of matter

I draw attention to Note 3 to the financial statements regarding the change in accounting policy due to the adoption

of Thai Accounting Standard 12 Income Taxes. The Bank has restated the consolidated and separate financial statements

for the year ended 31 December 2012, presented herein as comparative information, to reflect the adjustment resulting from

such change. The Bank has also presented the consolidated and separate statements of financial position as at 1 January

2012 as comparative information, using the same accounting policy for income taxes. My opinion is not qualified in respect

of this matter.

(Ratana Jala)

Certified Public Accountant (Thailand) No. 3734

Ernst & Young Office Limited

Bangkok: 20 February 2014


stAteMent oF FinAnciAl position

Thanachart Bank Public Company Limited and its subsidiaries

Statement of financial position

As at 31 December 2013

(Unit: Thousand Baht)

31 December 31 December 1 January

Note 2013 2012 2012

(Restated)

Assets

Cash 17,940,109 15,181,402 16,005,678

Interbank and money market items - net 7 69,697,056 71,963,238 63,201,206

Derivatives assets 8 3,913,805 2,176,536 1,536,490

Investments - net 9 138,825,014 146,106,487 148,344,800

Investments in subsidiary and associated companies - net 10 1,834,705 1,575,798 1,387,014

Loans to customers and accrued interest receivables 11

Loans to customers 852,017,050 812,211,277 675,021,253

Accrued interest receivables 1,009,123 1,065,745 962,799

Total loans to customers and accrued interest receivables 853,026,173 813,277,022 675,984,052

Less: Deferred revenue (61,999,696) (58,148,129) (39,801,128)

Allowance for doubtful accounts 12 (29,782,135) (23,774,973) (25,897,903)

Revaluation allowance for debt restructuring 13 (301,192) (344,196) (381,719)

Net loans to customers and accrued interest receivables 760,943,150 731,009,724 609,903,302

Customers' liability under acceptances 30,330 41,489 90,531

Property foreclosed - net 15 6,291,062 6,460,825 6,761,904

Land, premises and equipment - net 16 8,037,212 8,292,180 8,758,841

Intangible assets - net 17 3,843,023 4,293,963 4,709,082

Goodwill 18 17,951,311 17,951,311 17,951,311

Receivables from purchase and sale of securities 1,645,667 2,102,713 858,326

Prepaid corporate income tax 27,184 1,046,533 1,019,680

VAT refundable 380,508 2,300,943 56,557

Reinsurance assets 401,450 1,155,601 2,573,393

Deferred tax assets 19 641,319 522,735 348,266

Other assets - net 20 5,946,013 6,438,920 5,066,831

Total assets 1,038,348,918 1,018,620,398 888,573,212

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

Consolidated financial statements


Statement of financial position (continued)




Note 2013 2012 2012

(Restated)


Deposits 21 719,079,168 698,372,192 436,039,579

Interbank and money market items 22 81,082,186 87,776,947 60,150,845

Liability payable on demand 3,218,667 4,989,214 2,130,716

Derivatives liabilities 8 5,701,330 1,206,215 2,885,848

Debt issued and borrowings 23 92,228,946 78,148,560 254,296,521

Banks' liability under acceptances 30,330 41,489 90,531

Provisions 24 3,145,644 2,975,614 2,823,534

Payable from purchase and sale of securities 1,294,515 2,873,534 851,388

Accrued interest payable 4,405,614 4,053,383 3,266,851

Accrued expenses 5,312,605 5,047,880 3,855,403

Insurance contracts liabilities 25 15,019,053 39,632,420 36,154,060

Deferred tax liabilities 19 1,719,634 2,060,160 1,604,639

Other liabilities 26 8,871,596 7,257,105 7,650,940

Total liabilities 941,109,288 934,434,713 811,800,855

Equity

Share capital 27

Registered

7,526,664,903 ordinary shares of Baht 10 each

(2012: 5,934,619,272 ordinary shares of Baht 10 each) 75,266,649 59,346,193 59,346,193

Issued and paid-up share capital

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

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

Other components of equity 28 801,131 1,257,796 411,062

Retained earnings

Appropriated - statutory reserve 29 2,035,183 1,329,516 989,326

Unappropriated 36,144,439 23,505,273 17,421,111

Equity attributable to owner of the company 96,218,096 83,329,928 76,058,842

Non-controlling interests of the subsidiaries 1,021,534 855,757 713,515

Total equity 97,239,630 84,185,685 76,772,357

Total liabilities and equity 1,038,348,918 1,018,620,398 888,573,212

- - -




stAteMent oF FinAnciAl position (continueD)








Note 2013 2012 2012

(Restated)

Assets

Cash 17,938,627 15,180,228 16,004,051

Interbank and money market items - net 7 66,094,560 65,963,698 62,963,184

Derivatives assets 8 3,913,805 2,176,540 1,532,331

Investments - net 9 125,874,271 106,923,850 114,540,693

Investments in subsidiary and associated companies - net 10 9,505,400 13,754,213 40,841,867

Loans to customers and accrued interest receivables 11

Loans to customers 808,369,873 778,015,569 654,451,435

Accrued interest receivables 984,900 1,029,616 924,925

Total loans to customers and accrued interest receivables 809,354,773 779,045,185 655,376,360

Less: Deferred revenue (57,875,923) (54,992,223) (37,738,871)

Allowance for doubtful accounts 12 (21,208,072) (15,067,430) (12,485,712)

Revaluation allowance for debt restructuring 13 (301,192) (344,196) (381,719)

Net loans to customers and accrued interest receivables 729,969,586 708,641,336 604,770,058

Customers' liability under acceptances 30,330 41,489 90,531

Property foreclosed - net 15 2,996,742 3,166,001 3,653,106

Land, premises and equipment - net 16 7,787,388 7,927,385 8,365,341

Intangible assets - net 17 3,782,061 4,230,138 4,650,449

Goodwill 18 17,941,195 17,941,195 17,941,195

Receivables from purchase and sale of securities - 3,069 64,929

Prepaid corporate income tax - 1,012,539 1,011,958

VAT refundable 290,759 2,295,101 48,441

Other assets - net 20 4,599,726 3,952,371 3,776,857

Total assets 990,724,450 953,209,153 880,254,991


Separate financial statements






Note 2013 2012 2012

(Restated)


Deposits 21 722,262,165 701,281,731 471,617,573

Interbank and money market items 22 74,449,007 82,083,807 59,282,708

Liability payable on demand 3,218,667 4,989,214 2,130,716

Derivatives liabilities 8 5,697,046 1,202,000 2,876,790

Debt issued and borrowings 23 76,923,346 68,395,560 257,503,221

Banks' liability under acceptances 30,330 41,489 90,531

Provisions 24 2,960,190 2,786,748 2,620,953

Payable from purchase and sale of securities 1,426 11,265 267,638

Accrued interest payable 4,317,213 3,997,033 3,413,511

Accrued expenses 4,645,020 4,366,477 3,077,407

Deferred tax liabilities 19 1,594,806 1,923,874 1,444,113

Other liabilities 26 5,472,579 4,628,999 3,958,095

Total liabilities 901,571,795 875,708,197 808,283,256

Equity

Share capital 27

Registered

7,526,664,903 ordinary shares of Baht 10 each

(2012: 5,934,619,272 ordinary shares of Baht 10 each) 75,266,649 59,346,193 59,346,193

Issued and paid-up share capital

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

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

Other components of equity 28 345,109 766,687 162,220

Retained earnings

Appropriated - statutory reserve 29 2,035,183 1,329,516 989,326

Unappropriated 29,535,020 18,167,410 13,582,846

Total equity 89,152,655 77,500,956 71,971,735

Total liabilities and equity 990,724,450 953,209,153 880,254,991

- - -






Statement of comprehensive income

For the year ended 31 December 2013

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

Note 2013 2012 2013 2012


Profit or loss

Continuing operations

Interest income 32 53,886,402 48,735,570 50,548,597 46,330,705

Interest expenses 33 (27,233,755) (25,555,897) (26,488,525) (25,371,321)

Net interest income 26,652,647 23,179,673 24,060,072 20,959,384

Fees and service income 8,792,593 6,555,512 6,431,696 5,407,517

Fees and service expenses (1,889,849) (1,485,289) (1,672,452) (1,330,010)

Net fees and service income 34 6,902,744 5,070,223 4,759,244 4,077,507

Gains on trading and foreign exchange transactions 35 530,998 664,374 685,131 705,399

Gains on investments 36 13,081,096 312,211 13,884,505 269,896

Share of profit from investments accounted

for under equity method 414,865 149,611 - -

Insurance/Life insurance income 6,723,971 6,125,120 - -

Dividend income 562,493 396,576 1,856,613 3,788,113

Income on supporting service 41,958 99,629 314,217 314,955

Other operating income 1,654,948 2,046,230 1,457,958 1,745,968

Total operating income 56,565,720 38,043,647 47,017,740 31,861,222

Insurance expenses (4,441,553) (3,977,917) - -

Net operating income 52,124,167 34,065,730 47,017,740 31,861,222

Other operating expenses

Employee's expenses 10,465,936 10,464,865 8,767,883 9,085,979

Directors' remuneration 37 37,612 30,863 28,942 24,473

Premises and equipment expenses 3,012,758 3,168,068 2,698,223 2,866,517

Taxes and duties 887,164 887,017 837,849 836,880

Other expenses 6,855,476 7,108,790 6,153,969 6,707,953

Total other operating expenses 21,258,946 21,659,603 18,486,866 19,521,802

Impairment losses of loans and debt securities 38 11,587,478 2,979,503 11,200,832 4,680,020

Profit before income tax 19,277,743 9,426,624 17,330,042 7,659,400

Income tax 19.2 (4,030,938) (2,075,746) (3,216,709) (804,863)

Profit for the year from continuing operations 15,246,805 7,350,878 14,113,333 6,854,537

Discontinued operations

Profit for the year from discontinued operations 48 354,241 1,211,742 - -

Profit for the year 15,601,046 8,562,620 14,113,333 6,854,537


Consolidated Separate

financial statements financial statements


stAteMent oF coMpRehensiVe incoMe


Statement of comprehensive income (continued)



Note 2013 2012 2013 2012


Other comprehensive income

Continuing operations 39

Gains (losses) on changes in value of

available-for-sale investments (394,390) 1,311,940 (528,033) 748,313

Share of other comprehensive income of associates (53,490) 146,055 - -

Income tax relating to components of

other comprehensive income 19.2 110,077 (270,495) 106,455 (143,846)

Total other comprehensive income from

continuing operations (loss) (337,803) 1,187,500 (421,578) 604,467


Other comprehensive income from

discontinued operations (loss) 48 (118,862) (340,766) - -

Total other comprehensive income (loss) (456,665) 846,734 (421,578) 604,467

Total comprehensive income

Total comprehensive income from continuing operations 14,909,002 8,538,378 13,691,755 7,459,004

Total comprehensive income from discontinued operations 235,379 870,976 - -

Total comprehensive income 15,144,381 9,409,354 13,691,755 7,459,004

Total profit attributable to:

The Bank

Profit for the year from continuing operations 15,030,648 7,142,393 14,113,333 6,854,537

Profit for the year from discontinued operations 354,241 1,211,742 - -

Profit for the year attributable to the Bank 15,384,889 8,354,135 14,113,333 6,854,537

Non-controlling interests

Profit for the year from continuing operations 216,157 208,485

Profit for the year from discontinued operations - -

Profit for the year attributable to non-controlling interests 216,157 208,485

15,601,046 8,562,620






(continueD)



(continueD)


Statement of comprehensive income (continued)



Note 2013 2012 2013 2012


Total comprehensive income attributable to:

The Bank

Total comprehensive income from continuing operations 14,692,845 8,329,893 13,691,755 7,459,004

Total comprehensive income from discontinued operations 235,379 870,976 - -

Total comprehensive income attributable to the Bank 14,928,224 9,200,869 13,691,755 7,459,004

Non-controlling interests

Total comprehensive income from continuing operations 216,157 208,485

Total comprehensive income from discontinued operations - -

Total comprehensive income attributable

to non-controlling interests 216,157 208,485

15,144,381 9,409,354

Earnings per share of the Bank 40

Basic earnings per share (Baht per share)

Profit attributable to the Bank

Profit from continuing operations 2.73 1.30 2.56 1.24

Profit from discontinued operations 0.06 0.22 - -

2.79 1.52 2.56 1.24





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Statements of cash flows

For the year ended 31 December 2013 (Unit: Thousand Baht)

2013 2012 2013 2012(Restated) (Restated)

Cash flows from operating activitiesProfit before income tax from continuing operations 19,277,743 9,426,624 17,330,042 7,659,400 Profit before income tax from discontinued operations 443,187 1,624,808 - - Profit before income tax 19,720,930 11,051,432 17,330,042 7,659,400 Adjustments to reconcile profit before income tax to net cash received (paid) from operating activities: Share of profit from investments accounted for under equity method (414,865) (149,611) - - Depreciation and amortisation 1,473,165 1,597,212 1,396,170 1,466,423 Impairment losses of loans and debt securities 11,587,478 2,979,503 11,200,832 4,680,020 Increase in provisions 762,764 152,081 740,650 275,487 Amortisation of discounts on investment in debt securities (23,912) (28,914) (3,517) (62,113) Increase (decrease) in allowance for impairment of investments (32,424) 10,543 (32,467) 56,774 Gain from disposal of investment in a subsidiary company (12,216,258) - (13,127,841) - Decrease (increase) in allowance for change in value of investments 186,482 (595) 5,242 (10,110) Increase in allowance for impairment of property foreclosed 127,294 35,616 111,257 4,063 Increase in allowance for impairment of land, premises and equipment 336 4,616 336 5,100 Increase in allowance for impairment of intangible assets 2,800 35,309 2,800 35,309 Interest income and other income from the assets transferred for debt repayment (19,517) (5,012) (19,517) (5,012) Gain on disposal of equipment (28,054) (41,222) (23,478) (40,221) Loss from disposal of intangible assets 31,105 46,888 31,105 46,888 Unrealised loss (gain) on exchange (316,185) 298,055 (316,185) 298,055 Increase in allowance for impairment of other assets 185,381 20,827 41,015 9,068 Increase in other income receivable (101,431) (266,724) (310,147) (57,479) Decrease in fees and rental received in advance (84,471) (30,302) (84,471) (30,302) Decrease in deferred income (65,943) (61,311) (65,943) (61,311) Increase in accrued expenses 312,380 212,529 126,861 309,123 Amortisation of discounts on borrowings 136 13,972 136 13,972

21,087,191 15,874,892 17,002,880 14,593,134 Net interest income (26,664,934) (24,103,485) (24,056,691) (20,911,243) Dividend income (562,494) (447,183) (1,856,613) (3,788,113) Cash received from interest income 51,488,456 46,009,719 47,067,033 42,644,444 Cash payment for interest expenses (22,539,380) (16,651,972) (22,369,507) (16,808,865) Cash paid for corporate income tax (3,948,945) (3,629,415) (3,001,193) (177,572) Cash received from corporate income tax refundable 1,013,929 - 1,012,539 - Income from operating activities before changes in operating assets and liabilities 19,873,823 17,052,556 13,798,448 15,551,785


financial statements financial statementsConsolidated Separate


stAteMents oF cAsh Flows


Statements of cash flows (continued)



2013 2012 2013 2012


Cash flows from operating activities (continued)

Decrease (increase) in operating assets

Interbank and money market items 103,663 (8,833,905) 136,317 (3,107,251)

Investments in trading securities 1,631,837 3,889,938 642,729 3,184,104

Derivatives assets 231,539 859,366 231,542 855,202

Loans to customers (50,015,317) (130,721,464) (39,041,889) (113,965,363)

Property foreclosed 8,259,441 5,337,743 8,040,643 5,360,987

Receivables from purchase and sale of securities 457,046 (1,244,386) 3,069 61,860

Reinsurance assets 630,429 1,417,791 - -

Other assets 1,885,550 (3,331,386) 1,812,330 (2,384,682)

Increase (decrease) in operating liabilities

Deposits 20,706,976 262,338,807 20,980,434 229,670,353

Interbank and money market items (7,830,778) 27,643,485 (8,284,957) 22,818,482

Liability payable on demand (1,770,547) 2,858,498 (1,770,547) 2,858,498

Derivatives liabilities 668,870 (2,460,410) 668,801 (2,455,567)

Payable from purchase and sale of securities (1,579,019) 2,022,146 (9,839) (256,373)

Insurance contract liabilities (1,976,692) 3,478,360 - -

Other liabilities (802,845) 875,248 (1,786,472) 355,949

Net cash flows from (used in) operating activities (9,526,024) 181,182,387 (4,579,391) 158,547,984

Cash flows from investing activities

Decrease (increase) in investments in securities held

for investment (17,843,236) (1,108,436) (19,019,449) 5,281,470

Cash received from disposal of a subsidiary company 18,366,774 - 18,351,714 -

Cash paid for acquire investment in subsidiaries - - - (2,785,000)

Cash paid for acquire investment in associated - - - (820,858)

Cash received from capital refunded from

a subsidiary company - - 528,094 30,642,266

Cash received from interest on investments 4,118,650 4,827,979 3,555,877 3,374,860

Cash received from dividend 665,984 494,159 1,857,417 3,787,387

Cash paid for purchase of equipment (559,490) (675,262) (512,192) (549,164)

Cash received from disposal of equipment 48,663 72,557 36,952 69,485

Cash paid for purchase of intangible assets (302,407) (346,639) (290,615) (324,194)

Cash received from disposal of intangible assets - 19 - 19

Net cash flows from investing activities 4,494,938 3,264,377 4,507,798 38,676,271





stAteMents oF cAsh Flows (continueD)


stAteMents oF cAsh Flows (continueD)


Statements of cash flows (continued)



2013 2012 2013 2012


Cash flows from financing activities

Cash received from borrowings 91,100,065 555,070,968 84,420,465 546,400,268

Cash paid for borrowings (77,019,814) (731,239,095) (75,892,814) (735,528,095)

Cash paid for interest from borrowings (4,200,033) (7,106,888) (3,657,603) (6,990,468)

Cash paid for dividend (2,040,056) (1,929,783) (2,040,056) (1,929,783)

Cash paid for dividend to non-controlling interests (50,260) (59,931) - -

Cash paid to non-controlling interests for capital refund (109) (6,311) - -

Net cash flows from (used in) financing activities 7,789,793 (185,271,040) 2,829,992 (198,048,078)

Net increase (decrease) in cash 2,758,707 (824,276) 2,758,399 (823,823)

Cash at beginning of the year 15,181,402 16,005,678 15,180,228 16,004,051

Cash at end of the year 17,940,109 15,181,402 17,938,627 15,180,228

- - - -

Supplemental cash flows information

Non-cash transactions

Transfer of properties foreclosed from receivables for

debt settlement 8,113,273 4,833,924 7,875,336 4,639,587

Transfer of investment from receivables

for debt settlement - 432,097 - 432,097

Accounts payable for purchase of fixed assets 287,360 148,859 231,179 140,901

Bad debt written-off/hair-cut loan from debt restructuring 5,370,212 4,957,747 5,032,987 1,909,159




1

Thanachart Bank Public Company Limited and its subsidiaries Notes to consolidated financial statements For the year ended 31 December 2013

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 621 operational branches (2012: 628 operational branches).

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

operate their businesses in Thailand. The subsidiaries businesses include 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. Basis of preparation of the financial statements

2.1 The financial statements have been prepared in accordance with Thai Financial Reporting

Standards enunciated under the Accounting Professions Act B.E. 2547 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.

The financial statements in Thai language are the official statutory 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.


notes to consoliDAteD FinAnciAl stAteMents

2

2.2 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

Nature of business 2013 2012

Subsidiaries directly held by the Bank

SCIB Plc. In liquidation process 99.98 99.98

Thanachart Securities Plc. Securities business 100.00 100.00

Thanachart Insurance Plc. Non-life insurance 100.00 100.00

Thanachart Life Assurance Plc. Life insurance - 100.00

Thanachart Fund Management Co., Ltd. Fund management 75.00 75.00

Thanachart Broker Co., Ltd. Non-life insurance

broker

100.00 100.00

Thanachart Group Leasing Co., Ltd. Hire purchase 100.00 100.00

Thanachart Management and Services Co., Ltd. Services 100.00 100.00

Thanachart Training and Development Co., Ltd. Training services 100.00 100.00

TS Asset Management Co., Ltd. Non-performing

asset management

100.00 100.00

Siam City Life Assurance Plc. Life insurance 100.00 100.00

SCIB Service Co., Ltd. Services 100.00 100.00

Ratchthani Leasing Plc. Hire-purchase and

leasing business

65.18 65.18

Subsidiary indirectly held by the Bank

National Leasing Co., Ltd. Leasing business 100.00 100.00

b) Total assets and net operating income of the subsidiaries that have significant impact

to and are included in the consolidated financial statements as at 31 December 2013

and 2012 and for the years then ended, after eliminating significant intercompany

transactions, are as follows: (Unit: Million Baht)

Net operating income

Total assets for the years *

2013 2012 2013 2012

Ratchthani Leasing Plc. 26,654 18,900 1,468 1,091

Siam City Life Assurance Plc. 10,216 12,465 40 392

TS Asset Management Co., Ltd. 9,054 10,045 631 814

Thanachart Insurance Plc. 8,823 8,565 2,950 2,451

Thanachart Securities Plc. 6,541 6,898 2,130 1,429

Thanachart Life Assurance Plc. - 27,283 - -

* Presented as part of continuing operations


3

c) The consolidated statement of comprehensive income for year ended 31 December

2013 included the operating results of Thanachart Life Assurance Plc. from 1 January

2013 until the date of disposal of the investment. Such subsidiary had total income of

Baht 4,025 million and net income of Baht 354 million.

d) All subsidiaries are fully consolidated, being the date on which the Bank obtains

control, and continue to be consolidated until the date when such control ceases.

e) 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.

f) 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.

g) 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.

2.3 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.

3. Accounting standards that became effective in the current accounting year

Below is a summary of accounting standards that became effective in the current accounting

year.

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

Financial Reporting Standard:

TFRS 8 Operating Segments


4

Accounting Standard Interpretations:

TSIC 10 Government Assistance - No Specific Relation to Operating

Activities

TSIC 21 Income Taxes - Recovery of Revalued Non-Depreciable

Assets

TSIC 25 Income Taxes - Changes in the Tax Status of an Entity or its

Shareholders

Accounting Treatment Guidance for Transfers of Financial Assets

The aforementioned accounting standards do not have any significant impact on the financial

statements for the current year, except for TAS 12 Income Taxes.

TAS 12 Income Taxes

This accounting standard requires an entity to identify temporary differences between the

carrying amount of an asset or liability in the statement of financial position and its tax base

and recognise the tax effects as deferred tax assets or liabilities subjecting to certain

recognition criteria. The Bank and its subsidiaries have changed this accounting policy in this

current year and restated the prior year’s financial statements, presented as comparative

information, as though the Bank and its subsidiaries had initially recognised the tax effects as

deferred tax assets or liabilities. The cumulative effect of this change in the accounting

policies has been separately presented in the statements of changes in equity.

As a result of the Bank and its subsidiaries adopting this accounting standard, the Bank is

required to restate the financial statements as if it had always applied this accounting

standard, including at the acquisition date of Siam City Bank (“SCIB”). The Bank has

therefore adjusted the assets and liabilities relevant to the business combination (consisting

of the deferred tax assets and deferred tax liabilities related to the assets and liabilities in the

accounts of SCIB, the fair value adjustment of SCIB’s assets, and intangible assets) in order

to determine the reallocation of cost of business combination. As a result, goodwill arising

from the business combination increased by Baht 2,202 million.


5

The amounts of adjustments affecting the statements of financial position and the statements

of comprehensive income are summarised below. (Unit: Million Baht)

Consolidated financial statements Separate financial statements

31 December

2013

31 December

2012

1 January

2012

31 December

2013

31 December

2012

1 January

2012


Statements of financial

position

Increase in goodwill 2,202 2,202 2,202 2,202 2,202 2,202

Increase in deferred tax assets 641 523 348 - - -

Increase in deferred tax

liabilities 1,719 2,060 1,605 1,595 1,924 1,444

Increase in non-controlling

interests of the subsidiaries 62 22 28 - - -

Increase in unappropriated

retained earnings 1,888 1,546 1,412 1,410 1,187 1,136

Decrease in other

components of equity (184) (379) (202) (86) (192) (49)

(Unit: Million Baht)

For the years ended 31 December

Consolidated

financial statements

Separate


2013 2012 2013 2012


Statements of comprehensive income


Profit or loss

Increase (decrease) in income tax (352) 246 (223) 336

Increase (decrease) in profit attributable to non-controlling

interest of the subsidiaries 40 (6) - -

Increase in profit attributable to equity holders of the Bank 312 153 223 51

Increase in basic earnings per share (Baht per share) 0.057 0.028 0.041 0.009


Increase (decrease) in deferred tax relating to components

of other comprehensive income (110) 271 (106) 143


Profit or loss

Increase (decrease) in income tax (30) 20 - -

Increase (decrease) in profit attributable to equity holders

of the Bank 30 (20) - -

Increase (decrease) in basic earnings per share

(Baht per share) 0.005 (0.004) - -


Decrease in deferred tax relating to components of

other comprehensive income (28) (109) - -


6

4. Accounting standards that will become effective in the future

Below is a summary of accounting standards that will become effective in the future.

Effective date

Accounting Standards:

TAS 1 (revised 2012) Presentation of Financial Statements 1 January 2014

TAS 7 (revised 2012) Statement of Cash Flows 1 January 2014

TAS 12 (revised 2012) Income taxes 1 January 2014

TAS 17 (revised 2012) Leases 1 January 2014

TAS 18 (revised 2012) Revenue 1 January 2014

TAS 19 (revised 2012) Employee Benefits 1 January 2014

TAS 21 (revised 2012) The Effects of Changes in Foreign Exchange

Rate

1 January 2014

TAS 24 (revised 2012) Related Party Disclosures 1 January 2014

TAS 28 (revised 2012) Investments in Associates 1 January 2014

TAS 31 (revised 2012) Investments in Joint Ventures 1 January 2014

TAS 34 (revised 2012) Interim Financial Reporting 1 January 2014

TAS 36 (revised 2012) Impairment of Assets 1 January 2014

TAS 38 (revised 2012) Intangible Assets 1 January 2014

Financial Reporting Standards:

TFRS 2 (revised 2012) Share-Based Payments 1 January 2014

TFRS 3 (revised 2012) Business Combinations 1 January 2014

TFRS 4 Insurance Contracts 1 January 2016

TFRS 5 (revised 2012) Non-current Assets Held for Sale and

Discontinued Operations

1 January 2014

TFRS 8 (revised 2012) Operating Segments 1 January 2014

Accounting Standard Interpretations:

TSIC 15 Operating Leases - Incentives 1 January 2014

TSIC 27 Evaluating the Substance of Transactions

Involving the Legal Form of a Lease

1 January 2014

TSIC 29 Service Concession Arrangements:

Disclosures

1 January 2014

TSIC 32 Intangible Assets - Web Site Costs 1 January 2014

Financial Reporting Standard Interpretations:

TFRIC 1 Changes in Existing Decommissioning,

Restoration and Similar Liabilities

1 January 2014

TFRIC 4 Determining whether an Arrangement

contains a Lease

1 January 2014


7

Effective date

TFRIC 5 Rights to Interests arising from

Decommissioning, Restoration and

Environmental Rehabilitation Funds

1 January 2014

TFRIC 7 Applying the Restatement Approach under

TAS 29 Financial Reporting in

Hyperinflationary Economies

1 January 2014

TFRIC 10 Interim Financial Reporting and Impairment 1 January 2014

TFRIC 12 Service Concession Arrangements 1 January 2014

TFRIC 13 Customer Loyalty Programmes 1 January 2014

TFRIC 17 Distributions of Non-cash Assets to Owners 1 January 2014

TFRIC 18 Transfers of Assets from Customers 1 January 2014

The management of the Bank and its subsidiaries has assessed the effect of the above

accounting standards and believes that they will not have any significant impact on the

financial statements for the year when they are initially applied, except for TFRS 4, TFRIC 10

and TFRIC 13, of which the management is still evaluating the first-year impact to the

financial statements and has yet to reach a conclusion.

5. Significant accounting policies

5.1 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 based

on the effective interest method.

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.


8

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 multiplied by the new book value

(acquisition cost) of the outstanding balances of receivables, to the extent that this is

not greater than the amount received from such receivables. After the restructuring,

interest income is recognised by the effective interest method for those receivables

from which loan repayment was received during the year.

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

company ceases 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.


9

g) Insurance/life insurance premium income

Non-life insurance contract

Premium income consists of direct premium and reinsurance premium less premium of

cancelled policies and premiums refunded to policy holders, and adjusted with

unearned premium reserve.

Direct premium income is recognised on the date the insurance policy comes into

effect. For long-term insurance policies with coverage periods of longer than 1 year,

related premium are recorded as unearned items, and recognised as income over the

coverage period.

Reinsurance premium income is recognised as income when the reinsurer places the

reinsurance application or the statement of accounts.

Life insurance contract

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.

5.2 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 direct 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.


10

5.3 Investments

Investments in securities held for trading are stated at fair value. Changes in the fair value of

these 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 stated 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 general

investments, are stated at cost net of allowance for impairment (if any).

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, as the case may be. The fair value of unit trusts is determined

from their net asset value.

The fair value of embedded derivatives investments which no active market or no available

market value is determined using an internal model. The gains/losses arising from revaluation

are recognised in profit or loss in the statements of comprehensive income. This method of

measurement is in compliance with the principles stipulated by the BOT.

The Bank and its subsidiaries recognise loss on impairment (if any) of available-for-sale

securities, held-to-maturity debt securities and general investments in profit or loss in the

statements of comprehensive income.

In the event that the Bank and its subsidiaries transfer investments to another category, the

investments are valued at their fair values 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 or other comprehensive income in the statements of comprehensive income,

depending on the type of investment being reclassified.

On disposal of an investment, the difference between net disposal proceeds and the carrying

amount of the investment is recognised in profit or loss in the statements 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.


11

5.4 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 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.

5.5 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.

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.

5.6 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 credit balance receivables (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

receivables which are under legal proceedings, are undergoing restructuring, or are being

settled in installments. The receivable balance of cash accounts is presented as

“Receivables from purchase and sale of securities”.


12

5.7 Allowances for doubtful accounts

a) Allowance for doubtful accounts for loans

The Bank and its subsidiary companies, that operates in 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.

For loans, excluding hire purchase receivable - personal consuming of the Banks, 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. For non-performing loans, provision is set at a rate of 100% of the debt

balance remaining after deducting the present value of expected future cash flows from

debt collection or the present value of expected cash flows from collateral disposal,

based on the use of a discount rate and assumptions as to the time needed to dispose

of the collateral, in accordance with the BOT’s guideline. However, non-performing hire

purchase receivables and financial lease receivables are treated as uncollateralised.

The Bank sets provision for hire purchase receivable - personal consuming of the Bank

using the collective approach, which classifies groups of receivables having similar

credit risk characteristics, and taking into account the historical loss of loans calculated

based on the probability of default and a percentage of the loss given default.

Furthermore, the Bank has set aside an additional provision by taking into

consideration the potential additional loss arising from changes in economic

circumstances that may impact certain borrowers’ ability to pay. This methodology, its

parameters and assumptions have been reviewed in detail and will be monitored on an

ongoing basis for continued applicability.

b) Subsidiary engaged in securities business has 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.


13

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 for other receivables is set up 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 and its subsidiaries write off receivables when they determine that such

receivables may not be collectible. Amounts written off as bad debts or bad debt

recovery are deducted from or added to the allowance for doubtful accounts.

5.8 Troubled debt restructuring

In cases where the debt restructuring involves modifications of the terms of repayment, 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

impairment losses of loans 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 gain on restructuring or interest income in part of profit or loss in the

statements of comprehensive income, as the case may be.

Losses arising from debt restructuring through waivers of part of principal or recorded

accrued interest receivable are recognised as losses in part of profit or loss in the statements

of comprehensive income when incurred.


14

5.9 Recognition and amortisation of customers’ assets

Assets which customers have placed with the subsidiary company 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 company for internal control purpose. As at the reporting date, the subsidiary

company 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 company.

5.10 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 as income 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 statement of comprehensive income.

5.11 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 or disposal. 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 recognised in profit or loss in the

statement of comprehensive income.


15

5.12 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 accumulated amortisation and accumulated impairment losses (if any).

The Bank and its subsidiaries amortised intangible assets with finite lives on a systematic

basis over their 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 statement 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.

5.13 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.

5.14 Business combination and goodwill

Business combination accounted for under purchase method.

Goodwill is initially recorded at cost, which equals to 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 or when

circumstances indicate that the carrying value may be impaired.

5.15 Receivables from/payable to Clearing House

Receivables from/payable to Clearing House comprise the net balance receivable/payable in

respect of securities trades settled and derivatives business. These also include amounts

pledged with Thailand Clearing House as security for derivatives trading.


16

5.16 Securities purchased under resale agreements/ securities sold under repurchased agreements

The Bank enters 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 in the statement of financial position and the

underlying securities are treated as collateral.

5.17 Premium receivable and allowance for doubtful accounts

Premium receivable from both direct and reinsurance is stated at its net realisable value.

Subsidiary companies provide an allowance for doubtful accounts based on the estimated

loss that may be incurred in collection of the premium due, on the basis of collection

experiences and a review of current status of the premium receivables as at the end of

reporting period.

5.18 Reinsurance assets and liabilities

a) Reinsurance assets represent amounts due from reinsurers (consisting of claims

receivable and various other items receivable for reinsurers excluding reinsurance

premium receivable less allowance for doubtful accounts), amounts deposited on

reinsurance and insurance reserve refundable from reinsurers. Insurance reserve

refundable from reinsurers is estimated based on the proportion of premium reserve

and loss reserve made in accordance with the law regarding insurance reserve

calculation that has been reinsured.

b) Amounts due to reinsurers are stated at the outstanding balances payable from

reinsurance and amounts withheld on reinsurance. Amounts due to reinsurers consist

of reinsurance premiums and other items payable to reinsurers.


17

5.19 Assets held for sale and discontinued operations

Assets held for sale are measured at the lower of their carrying value and fair value less

costs to sell. Disposal groups of assets are classified as assets held for sale if their carrying

values are recovered principally through a sales transaction rather than through continuing

use. In such case, the assets must be available for immediate sale in their present condition

subject only to terms that are usual and customary for sales of such assets (or disposal

groups) and their sale must be highly probable. Management of the Bank and its subsidiaries

must be committed to the sale plan, which should be expected to qualify for recognition as a

complete sale within one year from the date the assets are classified as assets held for sale.

In the consolidated statements of comprehensive income of the reporting period and the

prior comparable year, income and expenses from discontinued operations are reported

separately from income and expenses from continuing operations and shown as profit for the

year from discontinued operation in the line item next to profit for the year from continuing

operations.

5.20 Premium reserve/life insurance premium reserve


Premium insurance reserve comprise with unearned premium reserve and unexpired risks

reserve.

a) Unearned premium reserve

Unearned premium reserve is calculated based on direct premium before deducting

premium ceded as follows:

Transportation (cargo), travelling

accident with coverage periods

of not over six-months

- 100% of premium as from the date policy

is effective, throughout the period of

insurance coverage

Others - Monthly average basis (the one-twenty

fourth basis)

b) Unexpired risks reserve

Unexpired risks reserve is the reserve for the future claims that may be incurred in

respect of in-force policies. Unexpired risks reserve is set aside using an actuarial

method, at the best estimate of the claims that are expected be incurred during the

remaining period of coverage, based on historical claims data.


18

At the end of each reporting date, the subsidiary compares the amounts of unexpired risks

reserve with the unearned premium reserve, and if unexpired risks reserve is higher than

unearned premium reserve, the difference is recognised as unexpired risks reserve in the

financial statements.


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 Office

of Insurance Committee (“OIC”)’s notification regarding valuation of assets and liabilities of

life insurance company.

5.21 Loss reserve and outstanding claims/Benefits payment to life policy


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, the subsidiaries set up additional reserve for incurred but not reported (IBNR)

claims using an actuarial method based on a best estimate of claims which are expected to

be paid in the future for losses occurring before or as at the reporting date, including both

reported and unreported claims, and net of recorded claims.


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.


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5.22 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.

Leases of assets which do not transfer substantially all the risks and rewards of ownership

are classified as operating leases. Operating lease payments are recognised expenses on a

straight-line basis over the lease term.

5.23 Financial derivatives

The Bank and its subsidiaries have entered into derivative financial instruments in order to

manage risk of the Bank and its subsidiaries and in response to customer needs.

Financial derivative contracts which were 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. The fair

values of the contracts are based on the quoted market prices. If the fair value of financial

derivatives cannot be determined with reference to market price, it is determined using

valuation techniques and models, in which the variables used are derived from observable

markets factors.

Other financial derivative contracts (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 foreign exchange contracts are presented at the

net amount in the statement of financial position.


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5.24 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.

5.25 Impairment of assets

At the end of each reporting date, the Bank and its subsidiaries assess whether there is an

indication that an asset may be impaired. The Bank and its subsidiaries perform impairment

review whenever events or changes in circumstances indicate that an asset may be

impaired. Loss on impairment is recognised 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.


21

5.26 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 recognised

immediately in profit or loss in the statement of comprehensive income.

5.27 Foreign currencies

The consolidated and separate financial statements are presented in Baht, which are also

the Bank and its subsidiaries’ functional currency. Items of each entity included in the

consolidated financial statements of each entity are measured using the functional currency

of that entity.

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 reporting date.

Exchange gains and losses arising from trading or translation of foreign currencies are

included in determining income.


22

5.28 Income tax

Income tax expense represents the sum of corporate income tax currently payable and

deferred tax.

Current tax

Current 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.

Deferred tax

Deferred income tax is provided on temporary differences between the tax bases of assets

and liabilities and their carrying amounts at the end of each reporting period, using the tax

rates enacted at the end of the reporting period.

The Bank and its subsidiaries recognise deferred tax liabilities for all taxable temporary

differences while they recognise deferred tax assets for all deductible temporary differences

and tax losses carried forward to the extent that it is probable that future taxable profit will be

available against which such deductible temporary differences and tax losses carried forward

can be utilised.

At each reporting date, the Bank and its subsidiaries review and reduce the carrying amount

of deferred tax assets to the extent that it is no longer probable that sufficient taxable profit

will be available to allow all or part of the deferred tax asset to be utilised.

The Bank and its subsidiaries record deferred tax directly to equity if the tax relates to items

that are recorded directly to equity.

5.29 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.

6. Significant accounting judgments and estimates

The preparation of financial statements in conformity with Thai Financial Reporting

Standards 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:


23

6.1 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.

6.2 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.

6.3 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.

6.4 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.

6.5 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.


24

6.6 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 these estimated useful lives and salvage values when there are any changes.

In addition, the management assesses whether there are indicators of the impairment of

land, premises and equipment, and record impairment losses in the period when it is

determined that the recoverable amounts are lower than the carrying amounts. This requires

judgments in terms of forecasting future revenues and expenses relating to the assets

subject to the review.

6.7 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.

6.8 Deferred tax assets

Deferred tax assets are recognised for deductible temporary differences and unused tax

losses to the extent that it is probable that future taxable profit will be available against which

the temporary differences and losses can be utilised. Significant management judgment is

required to determine the amount of deferred tax assets that can be recognised, based upon

the likely timing and level of estimated future taxable profits.

6.9 Finance lease/Operating lease

In determining whether a lease is to be classified as an operating lease or finance lease, the

management is required to use judgment regarding whether significant risk and rewards of

ownership of the leased asset has been transferred, taking into consideration terms and

conditions of the arrangement.


25

6.10 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.

6.11 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.

Life assurance policy reserve is calculated under an actuarial method, based on the best

estimate at that time, which reflects current assumptions or assumption established at

inception of the contract. Such reserve requires the management to exercise judgment in

order to reflect the best estimates at that time.

6.12 Loss reserve and outstanding claims

At the end of 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 calculated 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. Such estimates require

the management to exercise judgment in order to reflect the best estimates available at that

time.

6.13 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, and mortality rate, based on their best knowledge of current

situation.


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6.14 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 not provide provisions and

contingent liabilities.

7. Interbank and money market items (assets)



2013 2012

At call Term Total At call Term Total

Domestic

Bank of Thailand and Financial

Institutions Development Fund 8,251 1,500 9,751 8,282 2,000 10,282

Commercial banks 601 23,047 23,648 1,106 20,414 21,520

Specialised financial institutions 71 99 170 68 29 97

Other financial institutions 369 23,803 24,172 300 23,634 23,934

Total 9,292 48,449 57,741 9,756 46,077 55,833

Add: Accrued interest receivables 1 43 44 10 43 53

Less: Allowance for doubtful accounts - (231) (231) - (217) (217)

Total domestic items 9,293 48,261 57,554 9,766 45,903 55,669

Foreign

US Dollar 719 10,663 11,382 244 15,478 15,722

Euro 34 - 34 50 - 50

Others 165 541 706 317 - 317

Total 918 11,204 12,122 611 15,478 16,089

Add: Accrued interest receivables - 32 32 - 208 208

Less: Deferred revenues - (2) (2) - - -


Total foreign items 918 11,225 12,143 611 15,683 16,294

Total 10,211 59,486 69,697 10,377 61,586 71,963


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2013 2012


Domestic

Bank of Thailand and Financial

Institutions Development Fund 8,251 1,500 9,751 8,282 2,000 10,282

Commercial banks 378 19,250 19,628 395 15,000 15,395

Specialised financial institutions 64 - 64 61 - 61

Other financial institutions 919 23,804 24,723 300 23,834 24,134

Total 9,612 44,554 54,166 9,038 40,834 49,872

Add: Accrued interest receivables 1 22 23 - 17 17

Less: Allowance for doubtful accounts (6) (231) (237) - (219) (219)


Foreign

US Dollar 719 10,663 11,382 244 15,478 15,722

Euro 34 - 34 50 - 50

Others 165 541 706 317 - 317

Total 918 11,204 12,122 611 15,478 16,089

Add: Accrued interest receivables - 32 32 - 208 208

Less: Deferred revenues - (2) (2) - - -



Total 10,525 55,570 66,095 9,649 56,315 65,964

As at 31 December 2013, the Bank had loan to a subsidiary company, which was a financial

institution, of Baht 550 million in the separate financial statements (2012: Baht 200 million).


28

8. Derivatives

As at 31 December 2013 and 2012, the notional amount and the fair value of trading derivatives, and the adjustments made on an accrual basis for hedging derivatives (banking book), were classified by type of risk as follow.



2013 2012

Fair value/Adjustment

on an accrual basis Notional



Assets Liabilities amount* Assets Liabilities amount*

Types of risk

Foreign exchange rate

Derivatives for trading 1,260 1,356 73,700 766 674 77,561

Derivatives for banking book 12 878 23,142 316 19 27,038

Interest rate


Derivatives for banking book - - 26,100 - - 26,100

Foreign exchange rate and

interest rate

Derivatives for trading 24 18 1,640 18 6 1,595


Others Derivatives for trading - 1 281 - 4 54

Total 3,914 5,701 418,347 2,177 1,206 244,252

* Disclosed only in case that the Bank and its subsidiaries have an obligation to pay



2013 2012





Assets Liabilities amount* Assets Liabilities amount*

Types of risk

Foreign exchange rate



Interest rate


Derivatives for banking book - - 26,100 - - 26,100

Foreign exchange rate and

interest rate

Derivatives for trading 24 18 1,640 18 6 1,595


Total 3,914 5,697 418,066 2,177 1,202 244,216

* Disclosed only in case that the Bank has an obligation to pay


29

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/other

liabilities.

Below are the proportions of trading derivatives transactions classified by counterparty,

determined based on the notional amount, as at 31 December 2013 and 2012.


Counterparties 2013 2012 2013 2012

Percent Percent Percent Percent

Financial institutions 95.83 90.99 95.83 90.99

Companies within Thanachart Group - - 0.07 0.03

Third parties 4.17 9.01 4.10 8.98

Total 100.00 100.00 100.00 100.00

9. Investments

9.1 Classified by type of investments (Unit: Million Baht)


2013 2012 2013 2012

Cost/

Amortised

cost Fair value

Cost/

Amortised

cost Fair value

Cost/

Amortised

cost Fair value

Cost/

Amortised

cost Fair value

Trading securities

Government and state enterprises

securities 5,150 4,975 5,745 5,643 1,614 1,618 1,638 1,639

Private debt securities 5,266 5,214 5,683 5,736 36 36 35 35

Foreign debt securities - - 620 628 - - 620 628

Domestic marketable equity

securities 17 16 16 16 - - - -

10,433 10,205 12,064 12,023 1,650 1,654 2,293 2,302

Add (less): Allowance for change

in value (228) (41) 4 9

Net 10,205 12,023 1,654 2,302

Available-for-sale securities


securities 71,398 71,805 55,220 55,433 70,619 71,027 49,044 49,247

Private debt securities 25,480 25,686 29,669 30,063 22,481 22,661 19,091 19,331

Foreign debt securities 14,691 14,543 11,485 11,746 14,691 14,543 11,485 11,746

Domestic marketable equity

securities 987 1,344 7,062 7,691 868 859 5,860 6,119

112,556 113,378 103,436 104,933 108,659 109,090 85,480 86,443

Add: Allowance for change in

value 822 1,497 431 963

Net 113,378 104,933 109,090 86,443


30



2013 2012 2013 2012

Cost/

Amortised

cost Fair value

Cost/

Amortised

cost Fair value

Cost/

Amortised

cost Fair value

Cost/

Amortised

cost Fair value

Held-to-maturity debt securitiesGovernment and state enterprises

securities 10,986 11,286 21,756 22,496 10,944 11,244 12,734 13,108

Private debt securities 352 369 2,731 2,802 300 317 800 829

Investment in receivables

purchased 2 1 5 3 2 1 5 3

11,340 11,656 24,492 25,301 11,246 11,562 13,539 13,940

Less: Allowance for impairment (1) (1) (1) (1)

Net 11,339 24,491 11,245 13,538

General investment Investment in property fund 87 564 87 564

Domestic non-marketable equity

securities 3,799 4,111 3,781 4,093

Foreign non-marketable equity

securities 39 39 39 39

3,925 4,714 3,907 4,696


Net 3,903 4,659 3,885 4,641

Total investment - net 138,825 146,106 125,874 106,924

9.2 Classified by remaining period of debt securities (Unit: Million Baht)


2013 2012

Due within Due within

Less than

1 year 1 - 5 years

Over

5 years Total

Less than

1 year 1 - 5 years

Over

5 years Total



securities 21,384 42,482 7,532 71,398 28,698 26,463 59 55,220

Private debt securities 2,894 19,173 3,413 25,480 955 20,074 8,640 29,669

Foreign debt securities 2,921 11,439 331 14,691 2,647 7,290 1,548 11,485

Total 27,199 73,094 11,276 111,569 32,300 53,827 10,247 96,374


in value 84 401 (20) 465 72 626 170 868

Total 27,283 73,495 11,256 112,034 32,372 54,453 10,417 97,242

Held-to-maturity debt securities Government and state enterprises

securities - 10,944 42 10,986 2,883 13,383 5,490 21,756

Private debt securities 177 25 150 352 1,326 1,227 178 2,731

Investment in receivables purchased 2 - - 2 2 3 - 5

Total 179 10,969 192 11,340 4,211 14,613 5,668 24,492

Less: Allowance for impairment (1) - - (1) (1) - - (1)

Total 178 10,969 192 11,339 4,210 14,613 5,668 24,491

Total debt securities 27,461 84,464 11,448 123,373 36,582 69,066 16,085 121,733


31



2013 2012

Due within Due within

Less than

1 year 1 - 5 years

Over

5 years Total

Less than

1 year 1 - 5 years

Over

5 years Total



securities 20,933 42,368 7,318 70,619 22,945 26,099 - 49,044

Private debt securities 2,370 17,706 2,405 22,481 575 16,966 1,550 19,091

Foreign debt securities 2,921 11,439 331 14,691 2,647 7,290 1,548 11,485

Total 26,224 71,513 10,054 107,791 26,167 50,355 3,098 79,620


in value 80 384 (24) 440 70 585 49 704

Total 26,304 71,897 10,030 108,231 26,237 50,940 3,147 80,324

Held-to-maturity debt securities


securities - 10,944 - 10,944 1,785 10,949 - 12,734

Private debt securities 150 - 150 300 500 150 150 800

Investment in receivables purchased 2 - - 2 2 3 - 5

Total 152 10,944 150 11,246 2,287 11,102 150 13,539

Less: Allowance for impairment (1) - - (1) (1) - - (1)

Total 151 10,944 150 11,245 2,286 11,102 150 13,538

Total debt securities 26,455 82,841 10,180 119,476 28,523 62,042 3,297 93,862

9.3 As at 31 December 2013, the Bank and its subsidiaries recorded no revaluation deficit

arising from transfers of investments in debt securities in either the consolidated or separate

financial statements (2012: Baht 9 million in the consolidated financial statements and Baht 4

million in the separate financial statements).


32

9.4 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 2013 and 2012, 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:



2013 2012 2013 2012

Banking and finance sector 142 1,440 142 549

Hotel - 311 - 311

Investments in banking and finance sector as mentioned above include investments in unit

trusts in which the Bank and its subsidiaries hold not less than 20 percent of the units issued.

The Bank and its subsidiaries do not treat these investments as investments in subsidiaries

or associates because the Bank and its subsidiaries do not have control or influence over the

financial and operating policies of these funds, which are independently managed by fund

managers in accordance with the details of each fund project, and are under the supervision

of the SEC. The Bank and its subsidiaries therefore record them as available-for-sale or

general investments, based on their investment objectives.


2013 2012 2013 2012

Net book Percentage Net book Percentage Net book Percentage Net book Percentage

Securities value of holding value of holding value of holding value of holding

Million

Baht

Percent Million

Baht

Percent Million

Baht

Percent Million

Baht

Percent

Business Strategic Fund - - 278 67.33 - - 278 67.33

Thanachart Long Term Fixed

Income Fund - - 61 27.79 - - - -

SCB Foreign Fix Income

Fund 1Y22 - - 829 23.53 - - - -

Hua Hin Property Fund - - 121 100.00 - - 121 100.00


33

10. Investments in subsidiary and associated companies

10.1 Separate financial statements

As at 31 December 2013 and 2012, investments in subsidiary and associated companies in

the separate financial statements stated under the cost method, consist of investment in

ordinary shares of the following subsidiary and associated companies:



Value of investment

Paid-up share Percentage under the Dividend income

Company’s name capital of holding cost method for the years

2013 2012 2013 2012 2013 2012 2013 2012

Subsidiary companies

SCIB Plc. 21,128 21,128 99.98 99.98 1,385 1,913 - -

TS Asset Management Co., Ltd. 2,000 2,000 100 100 2,000 2,000 - -

Thanachart Securities Plc. 1,500 1,500 100 100 1,858 1,858 431 270

Ratchthani Leasing Plc. 1,611 1,342 65.18 65.18 1,201 1,201 26 70

Thanachart Insurance Plc. 740 740 100 100 867 867 500 -

Siam City Life Assurance Plc. 700 700 100 100 761 761 - -

Thanachart Life Assurance Plc. - 3,285 - 100 - 3,721 - 2,785

Thanachart Group Leasing Co., Ltd. 360 360 100 100 400 400 104 94

Thanachart Broker Co., Ltd. 100 100 100 100 104 104 110 75

Thanachart Fund Management Co., Ltd. 100 100 75 75 97 97 109 67

SCIB Service Co., Ltd. 10 10 100 100 5 5 - 1

Thanachart Management and Services

Co., Ltd.

6 6 100 100 6 6 - -

Thanachart Training and Development

Co., Ltd.

5 5 100 100 5 5 20 15

Total investments in subsidiary

companies 8,689 12,938 1,300 3,377

Less: Allowance for impairment (5) (5)

Total investments in subsidiary

companies - net 8,684 12,933

Associated company

MBK Plc. 1,886 1,886 4.07 4.07 821 821 42 21

Total investments in associated

company 821 821 42 21

Total investments in subsidiary and

associated companies 9,505 13,754 1,342 3,398


34

In February 2013, SCIB Plc. returned capital to its shareholders at a rate of Baht 0.25 per

share, totaling Baht 528 million. The Bank therefore recognised this amount by deducting it

against the value of its investments.

In May 2013, The Bank disposed of investments in common shares of Thanachart Life

Assurance Plc. amounting to Baht 18,440 million, with gain on disposal of Baht 13,128

million.

10.2 Consolidated financial statements

As at 31 December 2013 and 2012, investments in associated companies, which presented

under the equity method, in the consolidated financial statements consist of investments in

ordinary shares of the following companies which operate in Thailand:


Dividend Share of profit

Paid-up share Percentage Value of investment income (loss) for the

Company’s name capital of holding Cost method Equity method for the years for the years

2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012

MBK Plc. (operating in

property rental, hotel

and services business)

1,886 1,886 9.90 9.90 984 984 1,835 1,576 103 98 415 175

Siam Samsung Life

Insurance Co., Ltd.

(operating in life

insurance business)

- - - - - - - - - - - (25)

Total investments in associated companies 984 984 1,835 1,576 103 98 415 150

The Bank and its subsidiaries classified investment in MBK Plc. as investment in an associated company since the Parent company, the Bank and its subsidiaries had significant influence in that company.

In March 2012, Siam Samsung Life Insurance Co., Ltd. issued additional share capital but the Bank did not exercise its right to purchase the new shares. As a result, the Bank’s shareholding decreased from 25 percent to 19.23 percent of the total shares in issue and the investment therefore changed from investment in an associated company to general investment. The value of the investment on the date of the change is treated as the new cost of investment.


35

10.3 Summarised financial information of an associated company

a) Summarised financial information of MBK Plc. as at 30 September 2013 and 2012 and

for the years then ended is as follows: (Unit: Million Baht)

Total income Profit for the

Paid-up share capital Total assets Total liabilities for the years ended years ended

30 September 30 September 30 September 30 September 30 September

2013 2012 2013 2012 2013 2012 2013 2012 2013 2012

1,886 1,886 39,584 30,499 23,617 15,008 12,923 8,953 4,195 1,761

The share of profit from investment in MBK Plc. accounted for under the equity method

was determined based on financial statements of MBK Plc. that were prepared for

periods different from those of the Bank, due to limited information available. However,

they are financial statements prepared for the same length of time and based on the

principle of consistency. Therefore, share of profit of the associate under the equity

method for the year ended 31 December 2013 was determined based on financial

statements that were prepared with reference to financial statements for the year

ended 30 September 2013 that had been audited or reviewed by the associate’s

auditor and adjusted for the effect of differences in accounting policies by the Bank’s

management. In addition, the Bank’s management considered that the income for the

year ended 30 September 2013 is not materially different from the income for the year

ended 31 December 2013.

b) Summarised financial information of Siam Samsung Life Insurance Co., Ltd. as at 31

December 2013 and 2012 and for the years then ended are as follows: (Unit: Million Baht)

Paid-up share Total income Profit (loss)

Company’s name capital Total assets Total liabilities for the years for the years

2013 2012 2013 2012 2013 2012 2013 2012 2013 2012

Siam Samsung Life Insurance

Co., Ltd.

- - - - - - - 270 - (100)

Income, profit or loss and shares of profit (loss) from 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.

c) As at 31 December 2013, the fair value of investment in an associated company (MBK

Plc.), which is listed on the Stock Exchange of Thailand, amounting to Baht 2,606

million in the consolidated financial statements and Baht 1,072 million in the separate

financial statements (2012: Baht 2,036 million in the consolidated financial statements

and Baht 838 million in the separate financial statements).


36

10.4 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 years

ended 31 December 2013 and 2012 is as follows:


2013 2012

Cash flows from operating activities

Profit before income tax 541 2,201

Adjustments to reconcile profit (loss) before income tax

to net cash provided by (paid for) operating activities

Reversal of bad debt and doubtful account (290) (1,811)

Increase in allowance for impairment of property foreclosed and other assets 17 21

Increase in provisions 1 -

Interest income - net (351) (358)

Cash received from interest income 540 619

Cash paid for interest expense (179) (253)

Cash paid for corporate income tax (148) (571)

Income (loss) from operating activities before changes in operating assets and

liabilities 131 (152)

Decrease (increase) in operating assets

Loans 980 2,749

Property foreclosed 284 439

Other assets (13) 38

Increase (decrease) in operating liabilities

Interbank and money market items (1,505) (3,762)

Provision (3) (23)

Other liabilities 69 (42)

Net cash flows used in operating activities (57) (753)

Cash flows from investing activities

Cash paid for purchase of equipment - (1)

Net cash flows used in investing activities - (1)

Net decrease in cash and cash equivalents (57) (754)

Cash and cash equivalents at beginning of the year 118 872

Cash and cash equivalents at end of the year 61 118


37

11. Loans to customers and accrued interest receivables

11.1 Classified by loan type




2013 2012 2013 2012

Loans to customers

Overdrafts 22,104 21,528 22,104 21,528

Loans 273,398 276,482 260,429 261,810

Notes receivable 49,535 54,597 54,090 60,657

Hire purchase receivables 501,914 454,777 470,286 432,067

Financial lease receivables 1,548 2,002 1,260 1,741

Others 201 212 201 212

Less: Deferred revenues (62,000) (58,148) (57,876) (54,992)

Total loans to customers net of deferred

revenues 786,700 751,450 750,494 723,023

Add: Accrued interest receivables 1,009 1,066 985 1,030

Total loans to customers net of deferred

revenues and accrued interest receivables 787,709 752,516 751,479 724,053

Less: Allowance for doubtful accounts

1) BOT’s minimum requirement

provision

- Individual Approach (20,955) (17,572) (12,565) (9,049)

- Collective Approach (8,635) (5,520) (8,635) (5,520)

2) Excess provision (20) (511) (8) (499)

Less: Revaluation allowance for debt

restructuring (301) (344) (301) (344)

Loans to customers and accrued interest

receivables - net 757,798 728,569 729,970 708,641

Securities business receivables

Credit balances receivables 3,144 2,424 - -

Other receivables 173 189 - -

Total securities business receivables 3,317 2,613 - -

Less: Allowance for doubtful accounts (172) (172) - -

Securities business receivables - net 3,145 2,441 - -


receivables - net 760,943 731,010 729,970 708,641


38

11.2 Classified by currency and country



2013 2012

Domestic Foreign Total Domestic Foreign Total

Baht 767,017 - 767,017 729,983 485 730,468

US Dollar 17,384 5,318 22,702 19,472 3,393 22,865

Other currencies 298 - 298 361 369 730

Total* 784,699 5,318 790,017 749,816 4,247 754,063

* Total loans net of deferred revenues



2013 2012


Baht 727,494 - 727,494 698,943 485 699,428

US Dollar 17,384 5,318 22,702 19,472 3,393 22,865

Other currencies 298 - 298 361 369 730

Total* 745,176 5,318 750,494 718,776 4,247 723,023


11.3 Classified by type of business and loan classification



2013

The Bank and a subsidiary company which is a financial institution

Normal

Special

mention

Sub-

standard Doubtful

Doubtful

of loss Total

Subsidiary

companies Consolidated

Agricultural and mining 11,180 32 21 577 179 11,989 2 11,991

Manufacturing and commerce 70,056 410 1,654 2,594 6,135 80,849 120 80,969

Real estate and construction 47,593 293 410 222 2,104 50,622 16 50,638

Public utilities and services 59,812 1,876 357 3,165 2,910 68,120 104 68,224

Personal consuming

Housing loans 77,940 1,299 580 547 3,299 83,665 8 83,673

Securities business - - - - - - 3,317 3,317

Hire purchase 374,455 29,946 2,302 1,968 3,962 412,633 27,464 440,097

Others 25,304 976 699 160 857 27,996 213 28,209

Others 22,414 32 108 83 249 22,886 13 22,899

Total* 688,754 34,864 6,131 9,316 19,695 758,760 31,257 790,017



39



2012


Normal

Special

mention

Sub-

standard Doubtful

Doubtful

of loss Total

Subsidiary


Agricultural and mining 16,376 13 9 38 204 16,640 4 16,644

Manufacturing and commerce 75,514 1,267 2,395 1,603 7,945 88,724 89 88,813

Real estate and construction 46,506 1,080 179 359 3,192 51,316 9 51,325

Public utilities and services 55,949 3,500 355 598 2,752 63,154 109 63,263

Personal consuming

Housing loans 77,192 1,051 438 666 3,271 82,618 3 82,621

Securities business - - - - - - 2,613 2,613

Hire purchase 351,384 20,701 1,143 982 3,075 377,285 19,588 396,873

Others 27,516 855 570 275 1,722 30,938 179 31,117

Others 20,190 30 176 8 373 20,777 17 20,794

Total* 670,627 28,497 5,265 4,529 22,534 731,452 22,611 754,063




2013

Special Doubtful

Normal mention Substandard Doubtful of loss Total

Agricultural and mining 11,148 26 10 538 67 11,789

Manufacturing and commerce 69,778 361 328 614 3,623 74,704

Real estate and construction 47,518 275 391 221 1,130 49,535

Public utilities and services 58,505 1,869 279 2,845 1,566 65,064

Personal consuming

Housing loans 77,784 1,269 557 528 2,230 82,368

Hire purchase 374,389 29,939 2,302 1,968 3,962 412,560

Others 25,274 972 693 133 378 27,450

Others 26,961 32 3 18 10 27,024

Total* 691,357 34,743 4,563 6,865 12,966 750,494



40



2012

Special Doubtful

Normal mention Substandard Doubtful of loss Total

Agricultural and mining 16,312 12 8 38 60 16,430

Manufacturing and commerce 75,048 1,263 393 1,382 3,326 81,412

Real estate and construction 46,383 1,069 162 348 2,114 50,076

Public utilities and services 54,597 3,465 280 336 1,353 60,031

Personal consuming

Housing loans 77,118 1,026 419 658 1,895 81,116

Hire purchase 351,384 20,701 1,143 982 3,075 377,285

Others 27,481 849 564 272 1,178 30,344

Others 26,249 30 5 8 37 26,329

Total* 674,572 28,415 2,974 4,024 13,038 723,023


11.4 Non-performing loans

As at 31 December 2013 and 2012, the Bank and its subsidiaries (securities and asset

management business) 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:




2013 2012 2013 2012

Non-performing loans (excluding

accrued interest receivables)

Banking business 24,393 20,036 24,394 20,036

Securities business 173 173 - -

Asset management business 10,747 12,292 - -

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.


41

Additionally, the Bank and its subsidiaries engaged in the securities business had loans for

which income recognition under an accrual basis has been discontinued, as follows:




2013 2012 2013 2012

Banking business 24,417 19,896 24,418 19,896

Securities business 173 173 - -

The subsidiary company engaged in the asset management business recognises income

from loan on a cash basis.

11.5 Debt restructuring

During the years ended 31 December 2013 and 2012, the Bank and its subsidiaries, asset

management and securities business, have entered into debt restructuring agreements with

their debtors as follows:



Outstanding Outstanding Fair value of

balance balance Type of assets assets to be

Number of before after to be transferred under

Type of restructuring debtors restructuring (1) restructuring (1) transferred agreement

Million Baht Million Baht Million Baht

2013

Transfer of ordinary shares (debt -

equity swap) 1 21 21 Ordinary shares -

Modification of repayment conditions 4,762 10,162 10,130

Transfer of assets and/or ordinary

shares and/or modification of

repayment conditions

26 1,120 886 Land, land and

building and

movable assets

427

Total 4,789 11,303 11,037

2012





34 1,293 1,118 Land, land and

building ,

ordinary shares

and unit trusts

1,129

Total 15,266 17,371 14,269

(1) Presents the outstanding balance per the books of account (principal plus accrued interest receivable)


42



Type of restructuring

Number of

debtors

Outstanding

balance before

restructuring (1)

Outstanding

balance after

restructuring (1)

Type of assets

to be

transferred

Fair value of

assets to be

transferred under

agreement

Million Baht Million Baht Million Baht

2013





19 270 270 Land and

building149

Total 4,518 6,840 6,840

2012





15 670 508 Land, ordinary

shares and

unit trusts

489

Total 15,003 7,887 7,725

(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 2013 and 2012, are summarised

below.


2013 2012

Periods

Number of

debtors

Outstanding

balances after

restructuring

Number of

debtors

Outstanding

balances after

restructuring

Million Baht Million Baht

Past due after restructuring 2,111 4,064 4,996 4,623

Due within the year 454 2,723 2,409 3,966

Less than 5 years 701 1,081 6,805 3,541

5 - 10 years 1,300 2,564 850 1,557

10 - 15 years 77 304 66 237

Over 15 years 146 301 140 345

Total 4,789 11,037 15,266 14,269


43


2013 2012

Periods

Number of

debtors

Outstanding

balances after

restructuring

Number of

debtors

Outstanding

balances after

restructuring


Past due after restructuring 2,076 2,869 4,960 2,985

Due within the year 397 2,043 2,346 1,060

Less than 5 years 660 787 6,749 2,374

5 - 10 years 1,204 768 790 859

10 - 15 years 53 121 49 182

Over 15 years 128 252 109 265

Total 4,518 6,840 15,003 7,725

Supplemental information for the years 2013 and 2012 relating to restructured loan is as

follows:


Consolidated


Separate


2013 2012 2013 2012

Interest income recognised in the statements of

comprehensive income 2,067 2,285 1,651 1,873

Cash repayment from receivables 11,227 12,090 9,661 8,537

Properties foreclosed received for debts

settlement 829 1,684 551 1,043

Loss on debt restructuring (net of allowance for

doubtful accounts as previously recorded) 5 15 5 15

As at 31 December 2013 and 2012, the Bank and its subsidiaries have the following

restructured receivables balances (principal and accrued interest receivable):

Restructured receivables

Total number of

outstanding receivables Number of receivables Outstanding balances

Outstanding balances,

net of collateral

2013 2012 2013 2012 2013 2012 2013 2012

Million Baht Million Baht Million Baht Million Baht

Thanachart Bank Plc. 1,861,434 1,719,657 43,138 53,284 20,222 24,058 10,983 14,604

Thanachart Securities Plc. 538 517 3 4 35 50 35 50

TS Asset Management

Co., Ltd. 1,804 2,257 1,330 1,566 10,120 9,553 4,877 4,919


44

11.6 Hire purchase/Financial lease receivables

As at 31 December 2013 and 2012, hire purchase/financial lease receivables of the Bank

and its subsidiaries, which are engaged in the hire purchase and financial lease business,

mostly comprise hire purchase agreements or financial lease agreements for cars, trucks and

motorcycles. The terms of the agreements are generally between 3 and 7 years and they

carry interest at fixed rates stipulated in the agreements.


Consolidated financial statement as at 31 December 2013

Amounts due under lease agreements

Less than

1 year* 1 - 5 years Over 5 years Total

Gross investment in the lease 141,793 341,001 20,668 503,462

Less: Unearned finance income (22,924) (38,057) (962) (61,943)

Present value of minimum lease payments

receivables 118,869 302,944 19,706 441,519

Allowance for doubtful accounts (10,366)

Hire purchase/Financial lease receivables - net 431,153

* Included non-performing receivables


Consolidated financial statement as at 31 December 2012


Less than



Less: Unearned finance income (21,174) (35,881) (1,020) (58,075)


receivables 104,769 273,085 20,850 398,704





45


Separate financial statement as at 31 December 2013


Less than





receivables 117,418 276,716 19,592 413,726





Separate financial statement as at 31 December 2012


Less than





receivables 103,638 254,672 20,579 378,889





46

11.7 Classified by classification

As at 31 December 2013 and 2012, the Bank and its financial institution subsidiary (asset

management business) classified and made allowances against their loans in accordance

with the BOT’s guidelines as summarised below.


Consolidated financial statements (1)

Loans and accrued interest

receivables

Net balance used in made

allowance for doubtful

accounts

Allowance for doubtful

accounts

2013 2012 2013 2012 2013 2012

Normal 689,679 671,590 492,418 480,914 7,163 4,834

Special mention 34,903 28,554 31,413 22,591 4,217 1,475

Substandard 6,133 5,273 3,888 3,721 2,705 3,535

Doubtful 9,324 4,529 5,566 2,555 5,125 2,393

Doubtful of loss 19,724 22,563 10,300 10,514 9,022 10,109

Total 759,763 732,509 543,585 520,295 28,232 22,346

Additional allowance for possible uncollectability debts 8 499

Total 28,240 22,845

(1) Only the Bank and subsidiary company subject to BOT’s regulations; and after deducting intragroup transactions.



Loans and accrued interest

receivables

Net balance used in made

allowance for doubtful

accounts


accounts

2013 2012 2013 2012 2013 2012

Normal 692,285 675,527 495,610 485,339 5,845 3,260

Special mention 34,782 28,473 31,382 22,581 4,186 1,465

Substandard 4,565 2,975 3,265 1,975 2,082 1,790

Doubtful 6,865 4,024 3,576 2,264 3,135 2,102

Doubtful of loss 12,982 13,054 7,230 6,357 5,952 5,952

Total 751,479 724,053 541,063 518,516 21,200 14,569

Additional allowance for possible uncollectability debts 8 499

Total 21,208 15,068


47

Percentage of allowance for doubtful account

The Banks’ hire purchase receivables-

personal consumer(2) Other loans

2013 2012 2013 2012

Normal 0.58 0.2 1 1

Special mention 8.49 3.5 2 2

Substandard 47.13 83.14 100 100

Doubtful 41.73 83.14 100 100

Doubtful of loss 57.91 83.14 100 100

(2) These percentages are average rates used in setting up allowance for doubtful accounts

11.8 Loan to companies which have settlement problems

As at 31 December 2013 and 2012, loans of the Bank and its subsidiaries (which engaged

in asset management and hire purchase and financial lease business) in the consolidated

financial statements and the separate financial statements included amounts due from

companies with weak financial positions and poor operating results, as follows:



accounts provided

Number of debtors Debt balance Collateral value in the accounts

2013 2012 2013 2012 2013 2012 2013 2012

Million Million Million Million Million Million

Baht Baht Baht Baht Baht Baht

1. Listed companies possible to 6 6 811 835 73 64 768 771

delisting from the SET

2. Non - listed companies with 7 10 554 584 324 329 230 238

similar operating results and

financial positions to listed

companies possible to


3. Companies which have loan 1,214 1,168 18,445 17,523 10,459 9,695 8,779 8,702

settlement problems or have

defaulted on the repayment


48



accounts provided

Number of debtors Debt balance Collateral value in the accounts

2013 2012 2013 2012 2013 2012 2013 2012

Million Million Million Million Million Million

Baht Baht Baht Baht Baht Baht

1. Listed companies possible to 3 3 168 168 28 28 140 140


2. Non - listed companies with 7 10 554 584 324 329 230 238

similar operating results and

financial positions to listed

companies possible to


3. Companies which have loan 891 813 9,554 7,207 5,999 4,323 3,555 2,887

settlement problems or have

defaulted on the repayment

11.9 Classification of securities business receivables in accordance with the Notification of the Securities and Exchange Commission

As at 31 December 2013 and 2012, a subsidiary company operating in the securities

business classified securities business receivables and accrued interest receivables, and

provided related allowance for doubtful accounts, in accordance with the Notification of the

Securities and Exchange Commission (SEC), as follows:


Debt balances net of allowance

Receivable balances Allowance for doubtful accounts for doubtful accounts

2013 2012 2013 2012 2013 2012

Normal 3,144 2,440 - - 3,144 2,440

Substandard 3 5 2 4 1 1

Doubtful 170 168 170 168 - -

Total 3,317 2,613 172 172 3,145 2,441

Allowance for doubtful accounts for substandard loans set aside by the subsidiary 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.


49

11.10 Hire purchase/financial lease receivables of subsidiaries classified by aging

As at 31 December 2013 and 2012, 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:


2013 2012

Current or overdue not over 90 days 26,657 19,269

Overdue 91 - 365 days 712 249

Overdue more than 1 year 62 64

Debtors under legal actions 288 233

Total 27,719 19,815

Allowance for doubtful accounts provided in the accounts 1,370 758

11.11 As at 31 December 2013 and 2012, the Bank has loans to subsidiary companies as

follows:

Contract period as at Interest rate as at Outstanding balances

Company’s name Type of credit 31 December 2013 31 December 2013 2013 2012


TS Asset Management Co., Ltd. Promissory note At call The Bank’s cost of fund plus a

fixed interest rate per annum

4,555 6,060

Total 4,555 6,060

12. Allowance for doubtful accounts





Normal

Special

mention

Sub-

standard Doubtful

Doubtful

of loss

General

provision Total

Subsidiary


Balance - beginning of the year 4,834 1,475 3,535 2,393 10,109 499 22,845 930 23,775

Increase (decrease) during

the year 2,329 2,742 (830) 2,732 4,459 (491) 10,941 664 11,605

Bad debts recovery - - - - 563 - 563 13 576

Bad debts written-off - - - - (5,033) - (5,033) (35) (5,068)

Reversal from hair cut - - - - (378) - (378) - (378)

Reversal from disposal of loans - - - - (698) - (698) (30) (728)

Balance - end of the year 7,163 4,217 2,705 5,125 9,022 8 28,240 1,542 29,782


50





Normal

Special

mention

Sub-

standard Doubtful

Doubtful

of loss

General

provision Total

Subsidiary


Balance - beginning of the year 3,970 722 3,870 7,507 8,348 383 24,800 1,098 25,898


the year 871 753 (333) (2,669) 4,236 116 2,974 (6) 2,968

Bad debts recovery - - - - 451 - 451 10 461

Bad debts written-off - - - - (1,909) - (1,909) (55) (1,964)

Reversal from hair cut (7) - (2) (2,445) (535) - (2,989) (117) (3,106)

Reversal from disposal of loans - - - - (482) - (482) - (482)

Balance - end of the year 4,834 1,475 3,535 2,393 10,109 499 22,845 930 23,775




Normal

Special

mention Substandard Doubtful

Doubtful

of loss

General

provision Total

Balance - beginning

of the year 3,260 1,465 1,790 2,102 5,952 499 15,068


the year 2,585 2,721 292 1,033 5,075 (491) 11,215

Bad debts recovery - - - - 563 - 563

Bad debts written-off - - - - (5,033) - (5,033)

Reversal from hair cut - - - - (64) - (64)

Reversal from disposal of loans - - - - (541) - (541)

Balance - end of the year 5,845 4,186 2,082 3,135 5,952 8 21,208




Normal

Special

mention Substandard Doubtful

Doubtful

of loss

General

provision Total

Balance - beginning

of the year 2,812 721 1,500 1,791 5,278 383 12,485

Increase during the year 448 744 290 311 2,764 116 4,673

Bad debts recovery - - - - 451 - 451

Bad debts written-off - - - - (1,909) - (1,909)

Reversal from hair cut - - - - (150) - (150)

Reversal from disposal of

loans - - - - (482) - (482)

Balance - end of the year 3,260 1,465 1,790 2,102 5,952 499 15,068


51

13. Revaluation allowance for debt restructuring (Unit: Million Baht)


2013 2012 2013 2012

Balance - beginning of the year 344 382 344 382

Decrease during the year - (2) - (2)

Amortised during the year (43) (36) (43) (36)

Balance - end of the year 301 344 301 344

14. Classification of assets

As at 31 December 2013 and 2012, the quality of assets of the Bank and its financial

institution subsidiary (asset management business) classified in accordance with the

announcements of the Bank of Thailand are as follows: (Unit: Million Baht)


2013

Interbank and

money market

items

Loans to

customers and

accrued interest

receivables Investments

Property

foreclosed Other assets Total

Normal 44,361 689,679 - - 277 734,317

Special mention - 34,903 - - 135 35,038

Substandard - 6,133 - - 18 6,151

Doubtful - 9,324 - - 16 9,340

Doubtful of loss - 19,724 293 301 260 20,578

Total 44,361 759,763 293 301 706 805,424



2012

Interbank and

money market

items

Loans to

customers and

accrued interest


Property


Normal 39,224 671,590 - - 199 711,013

Special mention - 28,554 - - 93 28,647

Substandard - 5,273 - - 7 5,280

Doubtful - 4,529 - - 6 4,535

Doubtful of loss - 22,563 56 179 247 23,045

Total 39,224 732,509 56 179 552 772,520


52



2013

Interbank and

money market

items

Loans to

customers and

accrued interest


Property


Normal 44,911 692,285 - - 277 737,473

Special mention - 34,782 - - 135 34,917

Substandard - 4,565 - - 18 4,583

Doubtful - 6,865 - - 16 6,881

Doubtful of loss - 12,982 298 264 246 13,790

Total 44,911 751,479 298 264 692 797,644



2012

Interbank and

money market

items

Loans to

customers and

accrued interest


Property


Normal 39,424 675,527 - - 199 715,150

Special mention - 28,473 - - 93 28,566

Substandard - 2,975 - - 7 2,982

Doubtful - 4,024 - - 6 4,030

Doubtful of loss - 13,054 61 152 241 13,508

Total 39,424 724,053 61 152 546 764,236


53

15. Property foreclosed (Unit: Million Baht)



Balance -

beginning

of the year Additions Disposals

Change

appraiser

Balance -

end

of the year

Assets transferred in settlement of debts

Immovable assets

External appraiser 5,199 293 (970) 30 4,552

Internal appraiser 30 4 (4) (30) -

Movable assets 674 8,058 (7,449) - 1,283

Assets foreclosed from purchase

by bid on the open market

Immovable assets

External appraiser 443 167 (84) 4 530

Internal appraiser 3 1 - (4) -

Non-used branches

External appraiser 300 87 (146) - 241

Total property foreclosed 6,649 8,610 (8,653) - 6,606

Less: Allowance for impairment (188) (851) 724 - (315)

Property foreclosed - net 6,461 7,759 (7,929) - 6,291




Balance -

beginning


Change

appraiser

Balance -

end

of the year


Immovable assets

External appraiser 5,615 737 (1,230) 77 5,199

Internal appraiser 97 14 (4) (77) 30

Movable assets 365 4,777 (4,468) - 674



Immovable assets


Internal appraiser 64 - (3) (58) 3

Non-used branches






54




Balance -

beginning


Change

appraiser

Balance -

end

of the year


Immovable assets


Internal appraiser 7 5 (1) (11) -

Movable assets 641 7,726 (7,224) - 1,143



Immovable assets


Internal appraiser 2 - - (2) -

Non-used branches








Balance -

beginning


Change

appraiser

Balance -

end

of the year


Immovable assets


Internal appraiser 89 1 (4) (79) 7

Movable assets 345 4,583 (4,287) - 641



Immovable assets


Internal appraiser 63 - (3) (58) 2

Non-used branches






55

16. Land, premises and equipment




Land

Buildings

and building

improvement

Furniture,

fixtures and

equipment Vehicles

Assets

under

installation Total

Cost

31 December 2012 4,514 2,444 5,586 184 112 12,840

Additions - - 501 9 189 699

Decrease from disposal of a subsidiary

company - (60) (230) (3) - (293)

Transfers/disposals (59) (25) (86) (62) (138) (370)

31 December 2013 4,455 2,359 5,771 128 163 12,876

Accumulated depreciation

31 December 2012 - 308 3,997 143 - 4,448

Transfer/disposals - (2) (202) (59) - (263)

Decrease from disposal of a subsidiary

company - (27) (156) (3) - (186)

Depreciation for the year - 130 594 16 - 740

31 December 2013 - 409 4,233 97 - 4,739

Allowance for impairment

31 December 2012 68 26 6 - - 100

31 December 2013 68 26 6 - - 100

Net book value

31 December 2013 4,387 1,924 1,532 31 163 8,037

Depreciation charge for the year 740


56




Land

Buildings

and building

improvement

Furniture,

fixtures and

equipment Vehicles

Assets

under

installation Total

Cost

31 December 2011 4,704 2,484 5,117 226 146 12,677

Additions - - 478 9 163 650


31 December 2012 4,514 2,444 5,586 184 112 12,840


31 December 2011 - 165 3,493 165 - 3,823

Transfer/disposals - 3 (178) (49) - (224)


31 December 2012 - 308 3,997 143 - 4,448


31 December 2011 68 26 1 - - 95

Increase during the year - - 5 - - 5

31 December 2012 68 26 6 - - 100

Net book value

31 December 2012 4,446 2,110 1,583 41 112 8,292





Land

Buildings

and buildings

improvement

Furniture,

fixtures and

equipment Vehicles

Assets

under

installation Total

Cost

31 December 2012 4,429 2,267 4,048 79 105 10,928

Additions - - 435 1 183 619


31 December 2013 4,370 2,242 4,449 54 162 11,277


31 December 2012 - 229 2,709 58 - 2,996

Transfer/disposals - (2) (147) (24) - (173)


31 December 2013 - 353 3,089 43 - 3,485


31 December 2012 - - 5 - - 5

31 December 2013 - - 5 - - 5

Net book value

31 December 2013 4,370 1,889 1,355 11 162 7,787



57




Land

Buildings and

buildings

improvement

Furniture,

fixtures and

equipment Vehicles

Assets

under

installation Total

Cost

31 December 2011 4,618 2,314 3,540 110 144 10,726

Additions - - 414 - 148 562

Transfers/disposals (189) (47) 94 (31) (187) (360)

31 December 2012 4,429 2,267 4,048 79 105 10,928


31 December 2011 - 100 2,189 72 - 2,361

Transfers/disposals - (3) (65) (30) - (98)


31 December 2012 - 229 2,709 58 - 2,996


31 December 2011 - - - - - -

Increase during the year - - 5 - - 5

31 December 2012 - - 5 - - 5

Net book value

31 December 2012 4,429 2,038 1,334 21 105 7,927


As at 31 December 2013 and 2012, the Bank and its subsidiaries have vehicles acquired

under financial leases with net book values amounting to approximately Baht 15 million and

Baht 22 million, respectively. 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

amounted to approximately Baht 2,439 million and Baht 1,887 million, respectively (separate

financial statements: the Bank have vehicles acquired under financial leases with net book

values amounting to approximately Baht 12 million and Baht 18 million, respectively and

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 amounted to approximately Baht 2,107 million and Baht 1,617 million,

respectively).


58

17. Intangible assets




Intangible

assets from

business

combination

Computer

software

Membership

fees for

Thailand

Futures

Exchange and

others

Computer

software under

development Total

Cost

31 December 2012 4,100 1,651 7 274 6,032

Additions - 129 - 173 302

Decrease from disposal of a

subsidiary company - (40) - (1) (41)

Transfers/disposals - 175 - (206) (31)

31 December 2013 4,100 1,915 7 240 6,262

Accumulated amortisation

31 December 2012 1,140 531 7 - 1,678


subsidiary company - (22) - - (22)

Amortisation for the year 515 185 - - 700

31 December 2013 1,655 694 7 - 2,356


31 December 2012 - 60 - - 60

Increase during the year - 3 - - 3

31 December 2013 - 63 - - 63

Net book value

31 December 2013 2,445 1,158 - 240 3,843

Amortisation expenses for the year 700

Remaining amortisation period

(years) 6.3 years 0 - 9.9 years - -


59




Intangible

assets from

business

combination

Computer

software

Membership

fees for

Thailand

Futures

Exchange and

others

Computer

software under

development Total

Cost

31 December 2011 4,100 1,466 7 180 5,753

Additions - 131 - 229 360

Transfers/disposals - 54 - (135) (81)

31 December 2012 4,100 1,651 7 274 6,032


31 December 2011 602 411 6 - 1,019

Transfers/disposals - (34) - - (34)

Amortisation for the year 538 154 1 - 693

31 December 2012 1,140 531 7 - 1,678


31 December 2011 - 25 - - 25

Increase during the year - 35 - - 35

31 December 2012 - 60 - - 60

Net book value

31 December 2012 2,960 1,060 - 274 4,294



60




Intangible assets

from business

combination

Computer

software

Computer

software under

development Total

Cost

31 December 2012 3,613 1,374 269 5,256

Additions - 118 157 275

Transfers/disposals - 166 (197) (31)

31 December 2013 3,613 1,658 229 5,500


31 December 2012 653 313 - 966

Amortisation for the year 515 174 - 689

31 December 2013 1,168 487 - 1,655


31 December 2012 - 60 - 60

Increase during the year - 3 - 3

31 December 2013 - 63 - 63

Net book value

31 December 2013 2,445 1,108 229 3,782


Remaining amortisation period (years) 6.3 years 2.4 - 9.7 years -


61




Intangible

assets from

business

combination

Computer

software

Computer

software under

development Total

Cost

31 December 2011 3,613 1,199 164 4,976

Additions - 123 217 340

Transfers/disposals - 52 (112) (60)

31 December 2012 3,613 1,374 269 5,256


31 December 2011 115 186 - 301

Transfers/disposals - (12) - (12)

Amortisation for the year 538 139 - 677

31 December 2012 653 313 - 966


31 December 2011 - 25 - 25

Increase during the year - 35 - 35

31 December 2012 - 60 - 60

Net book value

31 December 2012 2,960 1,001 269 4,230


As at 31 December 2013 and 2012, 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 54 million and Baht 44 million,

respectively (separate financial statements: Baht 7 million and Baht 7 million, respectively).

18. Goodwill

As at 31 December 2013 and 2012, goodwill as stated in the financial statements is as

follows:


Consolidated


Separate


2013 2012 2013 2012


Goodwill - beginning of the year 17,951 17,951 17,941 17,941

Increase during the year - - - -

Goodwill - ending of the year 17,951 17,951 17,941 17,941


62

19. Deferred tax assets/ liabilities and income tax

19.1 Deferred tax assets/ liabilities

As at 31 December 2013 and 2012 and 1 January 2012, deferred tax assets and liabilities are as follows:



31 December

2013

31 December

2012

1 January

2012

31 December

2013

31 December

2012

1 January

2012


Deferred tax assets 641 523 348 - - -

Deferred tax liabilities (1,719) (2,060) (1,605) (1,595) (1,924) (1,444)

Net (1,078) (1,537) (1,257) (1,595) (1,924) (1,444)

The components of deferred tax assets and deferred tax liabilities are as follows: (Unit: Million Baht)



2013 2012 2012

(Restated)

Deferred tax assets

Non-accrued interest income 108 83 94

Allowance for doubtful accounts - general

provision/other assets 312 280 245

Provisions for employee benefits 372 383 387

Provisions 252 210 173

Accrued interest payable/ accrued expenses 149 165 202

Unused tax loss - - 86

Fees income received in advance 384 70 62

Late payment fee income 136 110 96

Insurance contract liabilities 272 286 254

Others 418 260 101

Deferred tax assets 2,403 1,847 1,700

Deferred tax liabilities

Assets transferred as a result of business combination (1,110) (1,148) (1,149)

Deferred commission fee and direct expenses charged on

hire purchase (1,546) (1,239) (803)

Intangible assets (489) (574) (705)

Others (336) (423) (300)

Deferred tax liabilities (3,481) (3,384) (2,957)

Net (1,078) (1,537) (1,257)


63




2013 2012 2012

(Restated)

Deferred tax assets

Non-accrued interest income 105 83 94

Allowance for doubtful accounts - general

provision/other assets 60 151 127

Provisions for employee benefits 338 347 351

Provisions 252 210 173

Accrued interest payable/ accrued expenses 136 141 182

Unused tax loss - - 86

Fees income received in advance 384 70 62

Late payment fee income 136 110 96

Others 154 24 29

Deferred tax assets 1,565 1,136 1,200

Deferred tax liabilities

Assets transferred as a result of business combination (1,110) (1,148) (1,149)

Deferred commission fee and direct expenses charged on

hire purchase (1,471) (1,185) (764)

Intangible assets (489) (574) (705)

Others (90) (153) (26)

Deferred tax liabilities (3,160) (3,060) (2,644)

Net (1,595) (1,924) (1,444)


64

19.2 Income tax

Income tax expenses for the years ended 31 December 2013 and 2012 are as follows:



Consolidated


Separate


2013 2012 2013 2012



Current income tax:

Corporate income tax charge 4,320 2,093 3,371 558

Adjustment in respect of income tax from

previous year 63 (263) 69 (89)

Deferred tax:

Relating to origination and reversal of temporary

differences (352) 246 (223) 336

Income tax expense reported in statements

of comprehensive income 4,031 2,076 3,217 805


Current income tax:

Corporate income tax charge 119 540 - -

Deferred tax:

Relating to origination and reversal of temporary

differences (30) (127) - -

Income tax expense reported in statements

of comprehensive income 89 413 - -


65

The amounts of income tax relating to each component of other comprehensive income for

the years ended 31 December 2013 and 2012 are as follows: (Unit: Million Baht)




2013 2012 2013 2012

(Restated) (Restated) Continuing operations Deferred tax relating to gain on changes in value

of available-for-sale investments (105) 256 (106) 143 Deferred tax relating to share of other

comprehensive income of associates (5) 15 - -

(110) 271 (106) 143

Discontinued operations Deferred tax relating to gain on changes in value

of available-for-sale investments (28) (109) - -

(28) (109) - -

Reconciliations between income tax expenses and the product of accounting profit multiplied

by the applicable tax rates for the years ended 31 December 2013 and 2012 are as follows: (Unit: Million Baht)




2013 2012 2013 2012


Accounting profit before tax - continuing operations 19,278 9,427 17,330 7,659

Accounting profit before tax - discontinued operations 443 1,625 - -

19,721 11,052 17,330 7,659

Applicable tax rate 20% 23%, 30% 20% 23% Accounting profit before tax multiplied by

applicable tax rate 3,945 2,552 3,466 1,762 Adjustment in respect of income tax from

previous year 63 (263) 69 (89) Effects of changes in the applicable tax rates - (58) - (99) Effects of non - taxable revenue and

non-deductible expenses - net 112 258 (318) (769)

Income tax expenses reported in statements of comprehensive income 4,120 2,489 3,217 805

Income tax expenses - continuing operations 4,031 2,076 3,217 805

Income tax expenses - discontinued operations 89 413 - -

4,120 2,489 3,217 805


66

20. Other assets (Unit: Million Baht)

Consolidated


Separate


2013 2012 2013 2012

Accrued premium insurance income 230 496 - -

Other receivables 796 1,408 791 1,402

Accrued interest and dividend income

receivables 1,069 1,162 938 795

Prepaid leasehold rights 276 327 276 323

Other receivables - VAT paid in advance for

customers 306 225 272 209

Deposit 327 313 300 288

Estimated insurance claims recoveries 312 256 - -

Receivable from clearing house 170 944 - -

Prepaid expenses 413 337 110 95

Deposit from derivative contracts 1,034 102 1,034 102

Others 1,526 1,197 1,186 1,004

Total 6,459 6,767 4,907 4,218


Other assets - net 5,946 6,439 4,600 3,952

21. Deposits

21.1 Classified by type of deposits




2013 2012 2013 2012

Current 8,768 8,514 8,806 8,559

Saving 239,231 239,328 239,715 239,931

Certificates of deposit 6,241 2 6,241 2

Fixed deposits

- Less than 6 months 99,551 119,833 100,437 119,981

- 6 months and up to 1 year 167,756 202,761 169,505 204,761

- Over 1 year 197,532 127,934 197,558 128,048

Total deposits 719,079 698,372 722,262 701,282


67

21.2 Classified by currency and countries



2013 2012


Baht 718,629 1 718,630 698,079 1 698,080

US Dollar 361 23 384 122 21 143

Other currencies 20 45 65 130 19 149

Total 719,010 69 719,079 698,331 41 698,372



2013 2012


Baht 721,812 1 721,813 700,989 1 700,990

US Dollar 361 23 384 122 21 143

Other currencies 20 45 65 130 19 149

Total 722,193 69 722,262 701,241 41 701,282

22. Interbank and money market items (liabilities)



2013 2012


Domestic

Bank of Thailand and the FIDF 708 7,500 8,208 708 6,869 7,577

Commercial banks 1,220 16,732 17,952 1,121 23,311 24,432

Specialised financial institutions 598 8,074 8,672 192 13,722 13,914

Other financial institutions 8,931 17,736 26,667 9,828 16,427 26,255


Foreign

US Dollar 104 18,638 18,742 54 14,336 14,390

Euro 4 - 4 - - -

Baht currency 837 - 837 486 723 1,209


Total 12,402 68,680 81,082 12,389 75,388 87,777


68



2013 2012


Domestic

Bank of Thailand and the FIDF 708 7,500 8,208 708 6,869 7,577

Commercial banks 215 9,902 10,117 679 17,213 17,892

Specialised financial institutions 598 8,074 8,672 162 13,722 13,884

Other financial institutions 9,033 18,836 27,869 10,325 16,807 27,132


Foreign

US Dollar 104 18,638 18,742 54 14,336 14,390

Euro 4 - 4 - - -

Baht currency 837 - 837 486 723 1,209


Total 11,499 62,950 74,449 12,414 69,670 82,084

As at 31 December 2013, interbank and money market items in the consolidated financial

statements included loans of a subsidiary company amounting to Baht 2,794 million,

consisting of ((i) a loan of Baht 73 million, repayable in 36 monthly installments from the date

of the loan drawdown, and carrying interest at a fixed rate per annum, payable monthly, (ii) a

loan of Baht 800 million, repayable in full within 3 years from the date of the loan drawdown

and carrying interest at a fixed rate per annum, payable monthly, (iii) a loan of Baht 224

million, repayable in quarterly installments, carrying interest at MLR minus a fixed rate,

payable monthly, (iv) a loan of Baht 500 million, repayable in full within 4 years from the date

of the loan drawdown, carrying interest at a fixed rate per annum, payable monthly, (v) a loan

of Baht 417 million, repayable in quarterly installments, carrying interest at a fixed rate per

annum, payable monthly, and (vi) a loan of Baht 780 million in the form of promissory notes,

repayable at the date as specified in each promissory note, and carrying interest at fixed rates

per annum, payable monthly). In addition, the subsidiary has to comply with the terms and

conditions specified in the loan agreements, such as maintenance of a debt to equity ratio

(2012: included loans of a subsidiary company amounting to Baht 1,754 million).


69

23. Debt issued and borrowings

As at 31 December 2013 and 2012, the balance of debt issued and domestic borrowings,

which stated in Baht, are as follows:


Interest rate Consolidated Separate

per annum (as at financial statements financial statements

Types of borrowings 31 December 2013) Maturity date 2013 2012 2013 2012

Perpetual subordinated hybrid

bonds issued under Tier I (a)

8.25 percent Dissolution 7,130 7,130 7,130 7,130

Subordinated hybrid bonds

issued under Tier II (b)

5.25 percent 2019 and

2024

5,000 5,000 5,000 5,000

Subordinated debentures

issued under Tier II (c - h)

4.70 - 6.00 percent 2015 - 2022 35,516 33,773 35,516 33,773

Subordinated debentures (h) - 1,743 - 1,743

Unsubordinated debentures

(i - n)

4.70 - 5.50 percent 2014 - 2017 14,246 11,072 - 2,072

Short-tem debentures 2.65 - 2.95 percent 2014 29,226 13,235 29,226 13,235

Bills of exchange - 41 - 41

Bills of exchange - 4,889 - 5,299

Promissory note 0.50 - 4.25 percent At call 1,065 1,168 5 5

Borrowings - Department of

Alternative Energy

Development and Efficiency

0.50 percent 2014 - 2017 46 98 46 98

Total debt issued and borrowings 92,229 78,149 76,923 68,396

(a) On 22 April 2010, the Bank issued 7,130,000 name registered of perpetual, non-cumulative,

subordinated, hybrid Tier 1 bonds, with a face value of Baht 1,000 each, and sold them to

two major shareholders of the Bank. The bonds mature upon dissolution or liquidation of the

Bank. The bonds are unsecured and non-convertible and bear interest at a fixed 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 of cumulative 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 a fixed 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

a fixed 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.


70

(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 interest at a fixed 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 a fixed rate 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,


1,000 each. The debenture mature in 2020 and bear interest at a fixed 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 20 June 2011, the Bank issued 10,000,000 unsecured subordinated debentures with a

face value of Baht 1,000 each. The debentures mature in 2019 and bear interest at fixed

rates of 6.00 percent per annum until June 2016, and 6.50 percent per annum for the

remaining years, payable quarterly. The Bank has a call option to early redeem these

debentures at par if the conditions specified are met. This debenture was issued to replace

SCIB’s debentures which were early redeemed in accordance with the BOT stipulations

regarding the transfer of the entire business of SCIB.

(g) On 20 July 2012, the Bank issued 8,497,000 name registered subordinated, unsecured

debentures with debenture holders’ representative, with a face value of Baht 1,000 each.

The debenture mature in 2022 and bear interest at a fixed rate of 4.70 percent per annum,

payable quarterly. The Bank has a call option to early redeem these debentures at par if the

conditions specified are met.

(h) On 19 October 2012, the Bank issued 4,018,500 name registered subordinated, unsecured

debentures with debenture holders’ representative, with a face value of Baht 1,000 each.

The debenture mature in 2022 and bear interest at a fixed rate of 4.70 percent per annum,

payable quarterly. The Bank has a call option to early redeem these debentures at par if the

conditions specified are met. All debentures meet the criteria to be counted as Tier 2 capital

(2012: some of the debentures, amounting to Baht 2,276 million could be counted as Tier 2

Capital).


71

(i) On 27 March 2012, the Bank issued 2,072,100 name registered unsubordinated, unsecured,


1,000 each. The debenture mature in the first quarter of 2013 and bear interest at fixed rate

of 3.45 percent per annum, payable quarterly.

(j) On 27 April 2012, a subsidiary company issued 6,000,000 name registered unsubordinated,

unsecured, unconvertible debentures with debenture holders’ representative, with a face

value of Baht 1,000 each. Of these, 2 million units bear interest at fixed rate of 4.90 percent

per annum and mature in 2014, and 1.5 million units bear interest at fixed rate of 5.20 percent

per annum and mature in 2015, and another 2.5 million units bear interest at fixed rate of 5.50

percent per annum and mature in 2016. All debentures pay interest quarterly. The subsidiary

has to comply with the terms and conditions as specified in the loan agreement, such as

maintenance of a debt to equity ratio.

(k) On 1 November 2012, a subsidiary company issued 3,000,000 name registered

unsubordinated, unsecured, unconvertible debentures with debenture holders’ representative,

with a face value of Baht 1,000 each. The debenture mature in 2016 and bear interest at fixed

rate of 5.00 percent per annum, payable quarterly. In addition, the subsidiary has to comply

with the terms and conditions as specified in the loan agreement, such as maintenance of a

debt to equity ratio.

(l) On 14 June 2013, a subsidiary company issued 2,000,000 name registered unsubordinated,

unsecured, unconvertible debentures with debenture holders’ representative, with a face

value of Baht 1,000 each. The debenture mature in 2017 and bear interest at fixed rate of

4.70 percent per annum, payable quarterly. In addition, the subsidiary has to comply with the

terms and conditions as specified in the loan agreement, such as maintenance of a debt to

equity ratio.

(m) On 30 August 2013, a subsidiary company issued 760,000 units of name registered

unsubordinated, unsecured, unconvertible debentures with no debenture holders’

representative, with a face value of Baht 1,000 each. The debenture mature in 2017 and bear

interest at fixed rate of 4.759 percent per annum, payable semi-annually. In addition, the

subsidiary has to comply with the terms and conditions as specified in the loan agreement,

such as maintenance of a debt to equity ratio.

(n) On 25 October 2013, a subsidiary company issued 3,000,000 units of name registered

unsubordinated, unsecured, unconvertible debentures with debenture holders’ representative,

with a face value of Baht 1,000 each. The debenture mature in 2017 and bear interest at fixed

rate of 4.80 percent per annum, payable quarterly. In addition, the subsidiary has to comply

with the terms and conditions as specified in the loan agreement, such as maintenance of a

debt to equity ratio.


72

24. Provisions




Loss from

litigation

Employee

benefits

Obligations

from

off-balance

items Others Total

Balance as at 1 January 2013 186 1,922 222 646 2,976

Increase during the year 54 73 357 329 813

Utilised (48) (95)

- (431) (574)


subsidiary company - (22) - - (22)

Reversal of provisions (47) - - - (47)

Balance as at 31 December 2013 145 1,878 579 544 3,146




Loss from

litigation

Employee

benefits

Obligations

from

off-balance

items Others Total



Utilised - (111) - (4) (115)

Reversal of provisions - - (80) - (80)





Loss from

litigation

Employee

benefits

Obligations

from

off-balance

items Others Total


Employee benefits for staff

transferred from TS AMC - 2 - - 2


Utilised (48) (92) - (430) (570)

Reversal of provisions (46) - - - (46)



73




Loss from

litigation

Employee

benefits

Obligations

from

off-balance

items Others Total


Employee benefits for staff

transferred from TS AMC - 24 - - 24


Utilised - (109) - - (109)

Reversal of provisions - - (80) - (80)


Long-term employee benefits

Provision for long-term employee benefits, which is compensations on employees’

retirement, was as follows:


Consolidated


Separate


2013 2012 2013 2012

Defined benefit obligation at beginning of the

year 1,902 1,929 1,714 1,732

Employee benefits for staff transferred from

TS AMC - - 2 24

Decrease from disposal of a subsidiary company (22) - - -

Current service cost 147 171 127 144

Interest cost 87 107 79 98

Actuarial gain (213) (236) (210) (216)

Decrease from curtailment (69) (69) (69) (68)

Benefits paid during the year (45) - (41) -

Defined benefit obligation at end of the year 1,787 1,902 1,602 1,714


74

Long-term employee benefits which is recognised in profit or loss for the years ended

31 December 2013 and 2012 can be summarised as follows:


Consolidated


Separate


2013 2012 2013 2012

Current service cost 147 171 127 144

Interest cost 87 107 79 98

Actuarial (gain) loss recognised during the year

- Assumptions changing adjustments (221) (213) (204) (191)

- Experience adjustments 8 (23) (6) (25)

Decrease from curtailment (69) (69) (69) (68)

Total expense recognised in profit or loss (48) (27) (73) (42)

Amounts of defined benefit obligation for the current and previous three years are as follows:


Defined benefit obligation

Experience adjustments arising

on the plan liabilities

Consolidated


Separate


Consolidated


Separate


Year 2013 1,787 1,602 8 (6)

Year 2012 1,902 1,714 (23) (25)

Year 2011 1,929 1,732 - -

Year 2010 2,272 356 - -

The principal actuarial assumptions used to calculate the defined benefit obligations are as

follows: (Percent per annum)

Consolidated


Separate


2013 2012 2013 2012

Discount rate 4.40 - 4.78 4.07 - 4.38 4.62 4.38

Future salary increase rate 5.11 - 7.84 5.50 - 7.35 5.11 5.50

Average staff turnover rate

(depending on age) 0.00 - 59.57 0.00 - 47.76 0.17 - 14.00 0.00 - 19.02


75

25. Insurance contract liabilities (Unit: Million Baht)

Consolidated


Separate


2013 2012 2013 2012

Life policy reserve 10,297 34,291 - -

Loss reserve and outstanding claims 1,766 1,975 - -

Unearned premium reserve 2,889 3,116 - -

Other liabilities under insurance policies 67 250 - -

Total insurance contract liabilities 15,019 39,632 - -

26. Other liabilities (Unit: Million Baht)

Consolidated


Separate


2013 2012 2013 2012

Other payables 1,510 1,341 1,136 1,106

Suspense cash received from account

receivables

302 444 245 399

Insurance premium payable 359 393 298 603

Income received in advance 1,980 434 1,977 432

Corporate income tax payable 1,264 1,193 717 288

Payable to clearing house 509 126 - -

Others 2,948 3,326 1,100 1,801

Total other liabilities 8,872 7,257 5,473 4,629

27. Share capital

On 4 April 2013, the Annual General Meeting of Shareholders of the Bank approved the decrease and increase in the Bank’s registered share capital as follows:

- Approved a reduction of share capital from Baht 59,346,192,720 (5,934,619,272 shares with a par value of Baht 10 each) to Baht 55,136,649,030 (5,513,664,903 shares with a par value of Baht 10 each) by reduction of 420,954,369 unissued ordinary shares with a par value of Baht 10 each. The Bank registered the decrease with the Ministry of Commerce on 17 April 2013.

- Approved an increase of share capital from Baht 55,136,649,030 (5,513,664,903 shares with a par value of Baht 10 each) to Baht 75,266,649,030 (7,526,664,903 shares with a par value of Baht 10 each) by issuing 2,013,000,000 ordinary shares with a par value of Baht 10 each. The Bank registered the increase in share capital with the Ministry of Commerce on 17 April 2013.


76

28. Other components of equity


Consolidated


Separate


2013 2012 2013 2012

Surplus from business combination under

common control (123) - -

Revaluation surplus on investments

Revaluation surplus on investments


Debt instruments 719 901 676 705

Equity instruments 484 607 25 259

Total 1,203 1,508 701 964

Revaluation deficit on investments


Debt instruments (252) (43) (236) (1)

Equity instruments (36) - (34) -

Held-to-maturity investments (transfer from

available-for-sale investments) - (9) - (4)

Total (288) (52) (270) (5)

Total revaluation surplus on investments 915 1,456 431 959

Less: The effect of deferred tax liabilities (165) (297) (86) (192)

Net revaluation surplus on investments 750 1,159 345 767

Share of other comprehensive income of

associates 193 247 - -

Less: The effect of deferred tax liabilities (19) (25) - -

Net share of other comprehensive income

of associates 174 222 - -

Total 801 1,258 345 767


77

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.

In September 2013, the Bank’s Board of Director passed a resolution to allocate Baht 508

million of net income to statutory reserve, and on 31 December 2013, the Bank additional

allocated Baht 198 million of net income for the year 2013 to the statutory reserve (2012:

Baht 340 million).

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 2013, capital funds of the Bank calculated in accordance with the BOT’s

regulation regarding “Elements of Capital Funds’ for Commercial Bank Incorporate in

Thailand” dated 8 November 2012, consist of the following:


31 December 2013

Tier I capital

Common Equity Tier I capital

Issued and fully paid up share capital 55,137

Share premium 2,101

Statutory reserve 1,837

Retained earnings - unappropriated 23,274

Other components of equity - Revaluation surplus on investment in equity securities - net (7)

82,342

Less: goodwill (17,941)

Total Common Equity Tier I capital 64,401

Additional Tier I capital

Perpetual subordinated hybrid bonds (Hybrid Tier I) 6,417

Total Tier I capital 70,818

Tier II capital

Reserve for assets classified as normal 6,101

Subordinated debentures 33,764

Total Tier II capital 39,865

Total capital funds 110,683


78

On 26 September 2013, the Board of Directors’ meeting of the Bank passed a resolution to

allocate amounting Baht 508 million of net income for the six-month period ended 30 June

2013 to statutory reserve. The remaining net income of Baht 7,147 million and the increase

in retained earnings as the result of the change in accounting policy following the adoption of

TAS 12 Income Tax, amounting to Baht 1,187 million, were allocated as capital funds of the

Bank.

As at 31 December 2013, the capital adequacy ratio of the Bank calculated in accordance

with the BOT’s regulation regarding the calculation of capital fund, dated 8 November 2012,

is as follows:

31 December 2013

Minimum

Capital ratio requirement

of the Bank by BOT

Total capital to risk-weighted assets (percent) 14.80 8.50

Total Common Equity Tier I to risk-weighted assets (percent) 8.61 4.50

Total Tier I to risk-weighted assets (percent) 9.47 6.00

As at 31 December 2012, capital funds of the Bank calculated in accordance with the BOT’s

regulation regarding “Elements of Capital Funds for Commercial Bank Incorporated in

Thailand”, dated 27 November 2008 was as follows: (Unit: Million Baht)

31 December 2012

Tier I capital

Issued and fully paid up share capital 55,137

Share premium 2,101

Perpetual subordinated hybrid bonds (Hybrid Tier I) 7,130

Statutory reserve 1,060

Retained earnings - unappropriated 11,858

Total 77,286

Less: goodwill (15,740)

Total Tier I capital 61,546

Tier II capital

Reserve for assets classified as normal 3,982

Subordinated debentures 35,773

Revaluation surplus on investment in equity securities - net 116

Total Tier II capital 39,871

Total capital funds 101,417


79

As at 31 December 2012, the capital adequacy ratio of the Bank calculated in accordance

with the BOT’s regulation regarding the calculation of capital fund, dated 27 November 2008.

31 December 2012

Minimum

Capital ratio requirement

of the Bank by BOT

Total capital to risk-weighted assets (percent) 13.99 8.50

Total Tier I to risk-weighted assets (percent) 8.49 4.25

The Bank will disclose qualitative and quantitative information regarding capital maintenance

as at 31 December 2013 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 2014.

31. Dividends

Dividends Approved by Total dividends Dividend per share

Million Baht Baht

Dividends on net income for the

year 2012

Annual General Meeting of the

Shareholders on 4 April 2013 2,040 0.37

Dividends on net income for the

year 2011

Annual General Meeting of the

Shareholders on 5 April 2012 1,930 0.35

32. Interest income

Interest income for the years ended 31 December 2013 and 2012 consisted of the following:




2013 2012 2013 2012

Interbank and money market items 1,865 2,294 1,738 2,229

Investments and trading transactions 457 480 69 68

Investments in debt securities 3,867 3,606 3,722 3,418

Loans to customers 21,246 21,200 20,697 20,914

Hire purchase and financial lease 26,452 21,156 24,323 19,702

Total interest income 53,887 48,736 50,549 46,331


80

33. Interest expenses

Interest expenses for the years ended 31 December 2013 and 2012 consisted of the

following:




2013 2012 2013 2012

Deposits 17,862 14,549 17,915 14,713


Contribution fee to FIDF and the Deposit

Protection Agency 3,598 2,994 3,598 2,994

Issues debt instruments

- Subordinated debentures 2,784 2,435 2,784 2,435

- Unsubordinated debentures 1,418 318 869 79

- Others 100 3,682 61 3,650

Fees and services expense on borrowing 9 14 1 28

Total interest expenses 27,234 25,556 26,489 25,371

34. Fees and service income

Fees and service income for the years ended 31 December 2013 and 2012 consisted of the

following:




2013 2012 2013 2012

Fees and service income

Acceptance, aval and guarantees 317 331 317 331

Brokerage fee from securities/ derivatives 1,823 1,216 - -

ATM and electronic banking services 733 710 733 710

Hire purchase fee income 1,340 1,081 1,260 1,049

Insurance brokerage fee income 1,513 1,105 1,815 1,767

Management fees 676 438 - -

Credit card fee 1,027 763 1,032 770

Others 1,364 911 1,275 781

Total fees and service income 8,793 6,555 6,432 5,408

Fees and service expenses (1,890) (1,485) (1,673) (1,330)

Net fees and service income 6,903 5,070 4,759 4,078


81

35. Gains on trading and foreign exchange transactions

Gains (loss) on trading and foreign exchange transactions for the years ended 31 December

2013 and 2012 consisted of the following:(Unit: Million Baht)



2013 2012 2013 2012

Foreign exchange and derivatives relating to

foreign exchange 609 585 628 591

Derivatives relating to interest 20 2 20 2

Debt securities (139) 65 35 112

Equity securities (9) (1) - -

Others 50 13 2 -

Total 531 664 685 705

36. Gains on investments

Gains (losses) on investments for the years ended 31 December 2013 and 2012 consisted

of the following:(Unit: Million Baht)

Consolidated


Separate


2013 2012 2013 2012

Gains (losses) on disposal

Available-for-sale securities 350 321 242 320

Other investments (2) 5 (2) 5

Investments in subsidiary company (Note 48) 12,216 - 13,128 2

Reversal of impairment (losses)

Available-for-sale investments - 1 - -

General investments 33 (15) 33 (52)

Investments in associated and subsidiary

companies - - - (5)

Gain on capital refunded from investments 484 - 484 -

Total 13,081 312 13,885 270


82

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 18 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 2013 and

2012 consisted of the following:




2013 2012 2013 2012

Bad debts and doubtful accounts


Interbank and money market items 20 27 24 27

Amortisation of revaluation allowance for debts

restructured during the year (43) (36) (43) (36)

Loss from debt restructuring 5 15 5 15

Impairment loss of debt securities - 1 - 1

Haircut loss from the court ruling - 5 - -

Total 11,587 2,980 11,201 4,680


83

39. Components of other comprehensive income

Components of other comprehensive income for the years ended 31 December 2013 and

2012 of the following:


Consolidated


Separate


2013 2012 2013 2012



Continuing operations:

Available-for-sale investments:

Unrealised gains (losses) during the year (44) 1,633 (286) 1,068

Less: Reclassification of adjustment for the realised

gains that included in profit or loss (350) (321) (242) (320)

(394) 1,312 (528) 748

Share of other comprehensive income in associated

companies (loss) (54) 146 - -

Other comprehensive income for the year (loss) (448) 1,458 (528) 748

Impact from related income tax:

Income tax - gains (losses) on changes in value of

available-for-sale investments 105 (256) 106 (143)

Income tax - share of other comprehensive income of

associated companies 5 (15) - -

Impact from related income tax 110 (271) 106 (143)

Other comprehensive income for the year - net (loss) (338) 1,187 (422) 605


84

40. 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 years.

Consolidated


Separate


2013 2012 2013 2012


Profit for the year from continuing operations (Million Baht) 15,031 7,142 14,113 6,855

Earnings per share from continuing operations

(Baht/share) 2.73 1.30 2.56 1.24

Profit for the year from discontinued operations

(Million Baht) 354 1,212 - -

Earnings per share from discontinued operations

(Baht/share) 0.06 0.22 - -

Weighted average number of ordinary shares

(Million shares) 5,514 5,514 5,514 5,514

41. 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 2013, the Bank

and its subsidiaries contributed Baht 422 million to the fund (separate financial statements:

Baht 374 million) (2012: Baht 413 million in the consolidated financial statements and Baht

367 million in the separate financial statements).


85

42. Related party transactions

During the years, the Bank and its subsidiaries had significant business transactions with its

related parties. These transactions have been concluded on commercial terms and based

agreed upon in the ordinary course of businesses between the Bank and those companies.

Below is a summary of those significant transactions.



Consolidated


Separate

financial statements Transfer pricing policy

2013 2012 2013 2012 (For the year 2013)

Transactions occurred

during the years

Parent company

Purchase of debt securities 3,603 50 3,603 50 At market price

Sales of debt securities 29,189 33,393 29,189 33,393 At market price

(Related gain) 1 2 1 2

Interest income 1 1 - - At interest rate of 7.52 - 7.85 percent

per annum

Fee and service income 5 1 2 - At the rate agreed under the service

contract

Income on supporting service 11 13 11 13 At the rate agreed under the service

contract

Other income 8 - - -

Interest expenses 336 327 336 327 At interest rate of 0.60 - 3.20, 5.00,

5.25, 8.25 and 8.50 percent

per annum

Rental expenses 7 76 6 62 At the rate agreed under the rental

contracts

Other expenses 49 50 49 50

Dividend payment 1,040 983 1,040 983 As declared


86



Consolidated


Separate


2013 2012 2013 2012 (For the year 2013)

Transactions occurred during

the years (continued)


Purchase of debt securities - - 8,781 17,150 At market price

Sales of debt securities - - 10,899 24,646 At market price

(Related gain) - - 2 13

Purchase of investments in

equity instruments

- - - 983

Purchase/sales of forward

exchange contracts

- - 1,108 1,789 At market price

Interest income - - 259 485 At interest rate of 3.15 - 4.10 and

7.78 percent per annum

Dividend income - - 1,300 3,377 As declared

Fee and service income - - 1,233 1,820 At the rate agreed under the service

contract

Income on supporting service - - 294 292 At the rate agreed under the service

contract

Other income - - 17 5

Interest expenses - - 156 307 At interest rate of 0.50 - 4.00 percent

per annum

Fee and service expenses - - - 4

Rental expenses - - 6 22 At the rate agreed under the rental

contracts

Other expenses - - 193 281

Associated companies

Sales of debt securities - 270 - 270

Interest income - 1 - 1

Dividend income - - 42 21 As declared

Other income 11 - - -

Interest expenses 88 78 88 78 At interest rate of 0.60 - 3.15 and 5.25

percent per annum


contracts



87



Consolidated


Separate


2013 2012 2013 2012 (For the year 2013)

Transactions occurred during

the years (continued)

Related parties (presented

as part of continuing

operations)

Purchase of debt securities 229 75 229 75 At market price

Sales of debt securities 10,358 19,115 10,358 19,115 At market price

(Related gain) - 1 - 1

Purchase/sales of forward

exchange contracts

459,061 523,737 457,204 520,808 At market price

Sales of property foreclosed - 34 - 34

(Related gain) - 7 - 7

Interest income 307 315 303 315 At interest rate 0.10 - 8.00 percent

per annum

Dividend income 44 23 26 7 As declared

Fee and service income 1 - - - At the rate agreed under the service

contract

Insurance/Life insurance

income

27 40 - - At the rate agreed under the service

contract

Income on supporting service 9 10 9 10 At the rate agreed under the service

contract

Other income 11 18 - 4

Interest expenses 390 415 390 415 At interest rate of 0.33 - 3.60, 5.22,

5.25, 6.00 and 8.25 percent per

annum


contracts


Dividend payment 900 851 900 851 As declared

Related companies

(presented as part of

discontinued operations)

Dividend income

Life insurance income

-

2

4

2

-

-

-

- At the rate agreed under the

service contract

Rental expenses 5 17 - - At the rate agreed under the rental

contracts


88

Moreover, in September 2012, Thanachart Bank purchased investments in equity securities

from a subsidiary at a price of Baht 983 million, with reference to market price. Since this

transaction was an intercompany transaction, a gain on disposal of Baht 630 million was

recognised in the financial statements of the subsidiary company and eliminated in the

consolidated financial statements.

The outstanding balances of the above transactions during the years ended 31 December

2013 and 2012 have been shown at the average balance at the end of each month as

follows:




2013 2012 2013 2012

Parent company

Loans to customers 14 17 - -

Deposits 1,334 817 1,334 817

Debt issued and borrowings 3,637 3,638 3,637 3,638


Interbank and money market items (assets) - - 1,346 392

Loans to customers - - 5,901 11,207

Deposits - - 2,538 10,791

Interbank and money market items (liabilities) - - 572 536

Debt issued and borrowings - - 221 1,303

Associated companies

Deposits 991 259 991 259


Related companies

Interbank and money market items (assets) 246 395 246 395


Deposits 2,571 1,348 2,571 1,348

Interbank and money market items (liabilities) 12,582 10,788 12,582 10,788



89

As at 31 December 2013 and 2012, the significant outstanding balances of the above

transactions are as follows:



2013

Assets Liabilities

Interbank

and money

market

items

Investments -

debt securities

Loans to

customers

and interest

receivables

Other

assets Deposits

Interbank

and money

market

items

Debt issued

and

borrowings

Other

liabilities Commitments

Parent company

Thanachart Capital Plc. - - 12 25 3,030 - 3,638 84 -

Associated company

MBK Plc. - - - 34 963 - 1,200 11 -

Related companies

The Bank of Nova Scotia 258 - - - - 14,409 3,494 82 2,680

GMM Grammy Plc. - - 232 - 550 - - 2 -

Thai Reinsurance Plc. - - - 2 680 - - 13 -

Thai Hua Rubber Plc. - - 213 - 313 - - 1 407

Krungthai Card Plc. - - 4,970 - 7 - - - -

Srithai Superware Plc. - - 594 - 50 - - - 19

Synphaet Co., Ltd. - - 443 - 7 - - - 5

Other related companies - - 1,135 173 1,673 119 400 80 469

258 - 7,599 234 7,273 14,528 8,732 273 3,580



2012

Assets Liabilities

Interbank

and money

market

items

Investments -

debt securities

Loans to

customers

and interest

receivables

Other

assets Deposits

Interbank

and money

market

items

Debt issued

and

borrowings

Other


Parent company

Thanachart Capital Plc. - 5 16 25 4,833 - 3,637 93 -

Associated company

MBK Plc. - - - 30 1,042 - 1,200 17 -

Related companies

The Bank of Nova Scotia 57 - - 39 - 11,615 3,494 100 1,971

GMM Grammy Plc. - - 36 - - - - - -

Thai Reinsurance Plc. - - - 51 102 - - - -

Thai Hua Rubber Plc. - - 2,744 - 349 - - 2 487


Srithai Superware Plc. - - 711 - 69 - - - -

Synphaet Co., Ltd. - - 829 - 36 - - - 5

Other related companies - - 1,468 178 958 165 400 78 320

57 5 9,942 323 7,400 11,780 8,731 290 2,783


90



2013

Assets Liabilities

Interbank

and money

market

items

Investments

- debt

securities

Loans to

customers

and interest

receivables

Other

assets Deposits

Interbank

and money

market

items

Debt

issued and

borrowings

Other


Parent company

Thanachart Capital Plc. - - - 20 3,030 - 3,638 84 -


SCIB Plc. - - - - 1,516 - - 4 -

Thanachart Group Leasing Co., Ltd. - - - - 203 - - 2 -

Thanachart Securities Plc. 550 - - 24 - 14 - 26 764

Thanachart Insurance Plc. - - - 67 938 - - 192 10

Thanachart Broker Co., Ltd. - - - 6 297 - - 1 -

TS Asset Management Co., Ltd. - - 4,557 - 62 - - - -

Siam City Life Assurance Plc. - - - 1 - 1,181 - 1 -

Ratchthani Leasing Plc. - 514 - 16 114 - - - 30

Other subsidiary companies - - - 24 84 8 - 28 -

Associated company

MBK Plc. - - - 28 963 - 1,200 11 -

Related companies

The Bank of Nova Scotia 258 - - - - 14,409 3,494 82 2,680

GMM Grammy Plc. - - 232 - 550 - - 2 -

Thai Reinsurance Plc. - - - - 680 - - 13 -

Thai Hua Rubber Plc. - - 213 - 313 - - 1 407


Srithai Superware Plc. - - 594 - 50 - - - 19

Synphaet Co., Ltd. - - 443 - 7 - - - 5

Other related companies - - 619 161 1,677 118 400 74 205

808 514 11,628 347 10,491 15,730 8,732 521 4,120


91



2012

Assets Liabilities

Interbank

and money

market

items

Investments

- debt

securities

Loans to

customers

and interest

receivables

Other

assets Deposits

Interbank

and money

market

items

Debt

issued and

borrowings

Other


Parent company

Thanachart Capital Plc. - 5 - 20 4,833 - 3,637 93 -


SCIB Plc. - - - - 2,016 - - 5 -

Thanachart Group Leasing Co., Ltd. - - - - 25 - - - -

Thanachart Securities Plc. 200 - - 64 - 20 - 12 158

Thanachart Insurance Plc. - - - 116 359 - - 417 10

Thanachart Life Assurance Plc. - - - 187 - 530 - 117 1

Thanachart Broker Co., Ltd. - - - 2 237 - - - -

TS Asset Management Co., Ltd. - - 6,062 2 118 - - - -

Siam City Life Assurance Plc. - - - 2 - 333 410 11 -

Ratchthani Leasing Plc. - - - - 133 - - - 30

Other subsidiary companies - - - 26 51 7 - 47 -

Associated company

MBK Plc. - - - 24 1,042 - 1,200 17 -

Related companies

The Bank of Nova Scotia 57 - - 39 - 11,615 3,494 100 1,971

GMM Grammy Plc. - - 36 - - - - - -

Thai Reinsurance Plc. - - - - 102 - - - -

Thai Hua Rubber Plc. - - 2,744 - 349 - - 2 487


Srithai Superware Plc. - - 711 - 69 - - - -

Synphaet Co., Ltd. - - 829 - 36 - - - 5

Other related companies - - 999 160 960 165 400 113 320

257 5 15,519 642 10,341 12,670 9,141 934 2,982

As at 31 December 2013 and 2012, the Bank has loans to subsidiary companies as

mentioned in Note 11.11 to the financial statements.

As at 31 December 2013, the Bank and its subsidiaries have investments amounting to

approximately Baht 809 million (Baht 435 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 (2012: Baht 737 million in the

consolidated financial statements and Baht 413 million in the separate financial statements).


92

As at 31 December 2013 and 2012, the Bank and its subsidiaries have the following related

parties transactions with executive employees of the Bank and companies within Thanachart

Group, including related persons who together with these employees:




2013 2012 2013 2012

Loans to customers 82 68 75 65

Deposits 906 696 906 696

Directors and management’s remuneration

During the years 2013 and 2012, the Bank and its subsidiaries paid the following benefits to

their key management personnel, including directors, totaled 121 persons and 130 persons,

respectively (the separate financial statements: 47 persons and 46 persons, respectively):


Consolidated


Separate


2013 2012 2013 2012

Short-term employee benefits 539 542 267 281

Post-employment benefits 13 14 6 6

552 556 273 287


93

43. Financial information classified by operating segment

43.1 Financial position and results of operations classified by business activity

The financial position as at 31 December 2013 and 2012, and the operating results for the

years then ended, classified by domestic and foreign operations, are as follows:



2013

Domestic Foreign

operations operations Eliminations Total

Total assets 1,038,460 24,511 (24,622) 1,038,349

Interbank and money market items (assets) 77,273 17,046 (24,622) 69,697

Investments 131,414 7,411 - 138,825

Investments in associated companies 1,835 - - 1,835


receivables 760,943 - - 760,943

Deposits 719,079 - - 719,079

Interbank and money market items (liabilities) 81,094 24,610 (24,622) 81,082

Debt issued and borrowings 92,229 - - 92,229



2012

Domestic Foreign


Total assets 1,018,539 13,991 (13,910) 1,018,620


Investments 145,320 786 - 146,106

Investments in associated companies 1,576 - - 1,576


receivables 731,010 - - 731,010

Deposits 698,372 - - 698,372




94



2013

Domestic Foreign


Interest income 53,813 168 (94) 53,887

Interest expenses (27,234) (94) 94 (27,234)

Net interest income 26,579 74 - 26,653

Net fee and service income 6,903 - - 6,903

Net insurance/Life insurance income 2,282 - - 2,282

Other operating income 16,308 (22) - 16,286

Other operating expenses (21,259) - - (21,259)

Impairment loss of loans and debt securities (11,587) - - (11,587)

Profit before income tax 19,226 52 - 19,278

Income tax (4,031) - - (4,031)

Profit from continuing operations before non-

controlling interests 15,195 52 - 15,247

Profit from discontinued operations before income

tax 443 - - 443

Income tax (89) - - (89)

Profit before non-controlling interests 15,549 52 - 15,601



2012

Domestic Foreign


Interest income 48,677 147 (88) 48,736




Net insurance/Life insurance income 2,147 - - 2,147

Other operating income 3,657 12 - 3,669



Profit before income tax 9,356 71 - 9,427

Income tax (2,076) - - (2,076)

Profit from continuing operations before non-

controlling interests 7,280 71 - 7,351

Profit from discontinued operations before income

tax 1,625 - - 1,625

Income tax (413) - - (413)

Profit before non-controlling interests 8,492 71 - 8,563


95



2013

Domestic Foreign


Total assets 990,835 24,511 (24,622) 990,724


Investments 118,463 7,411 - 125,874

Investments in subsidiary and associated companies 9,505 - - 9,505

Loans to customers and accrued interest receivables 729,970 - - 729,970

Deposits 722,262 - - 722,262





2012

Domestic Foreign


Total assets 953,128 13,991 (13,910) 953,209


Investments 106,138 786 - 106,924

Investments in subsidiary and associated companies 13,754 - - 13,754

Loans to customers and accrued interest receivables 708,641 - - 708,641

Deposits 701,282 - - 701,282





2013

Domestic Foreign


Interest income 50,475 168 (94) 50,549




Other operating income 18,221 (22) - 18,199



Income tax (3,217) - - (3,217)

Profit for the year 14,061 52 - 14,113


96



2012

Domestic Foreign


Interest income 46,272 147 (88) 46,331




Other operating income 6,812 12 - 6,824



Income tax (805) - - (805)

Profit for the year 6,784 71 - 6,855

43.2 Financial positions and results of operations classified by business type

Identification of the Bank’s operating segments

The Bank’s operating segments are identified in accordance with the Bank’s organisation

structure, which is determined based on the Bank’s management policies. The three

operating segments identified are as follows:

1. Retail banking segment: This serves individual customers, with related products

offering such as deposits, housing loans, hire purchase loans, and credit card services.

2. Corporate and SME segment: This serves business customers, with related products

offering such as short-term and long-term loans, and import and export trade financing.

3. Treasury, investment and other business segment: These deal with money market and

investment transactions, transactions with related companies, staff welfare loans and

others.

The accounting policies for segment reporting are the same as those applied by the Bank.

The Bank allocates only revenue-generating assets based on the type of business. Assets

that do not generate revenue are allocated to other business segment.


97

The chief operating decision maker reviews the operating results of each segment separately

in order to make decisions on the allocation of resources to each operating segment and to

assess performance. The Bank measures segment performance based on net interest

income generated by each segment with net interest income being interest income and

interest expenses from external customers, net of interest income and interest expenses

from inter-segment lending and borrowing that is presented in the other business segment.

For inter-segment borrowing, market interest rates are charged. Operating expenses are

allocated in proportion to the operations of each segment. Expenses arising in respect of the

assets that do not generate income, such as depreciation and leasehold amortization, are

presented in other business segment.

Operating Segments: Thanachart Bank and Subsidiaries

The Bank and its subsidiaries have five operating segments, which are 1) the banking

segment, consisting of the three segments described above 2) the securities business

segment 3) the life insurance segment 4) the non-life insurance segment and 5) the asset

management segment. Financial information of the Bank and its subsidiaries presented by

segment is as follow:


98

(Uni

t: M

illio

n B

aht)

For t

he y

ear e

nded

31

Dec

embe

r 201

3

Ban

king

bus

ines

s

Ret

ail

Cor

pora

te

and

SM

E

Trea

sury

&

Inve

stm

ent

and

othe

rs

Sec

uriti

es

busi

ness

Life

insu

ranc

e

busi

ness

Non

-life

insu

ranc

e

busi

ness

Ass

et

man

agem

ent

busi

ness

Oth

er

busi

ness

Elim

inat

ions

C

onso

lidat

ed

Net

inte

rest

inco

me

18,8

84

4,45

8 71

8 25

2 50

2 25

2 35

2 1,

278

(43)

26

,653

Net

insu

ranc

e in

com

e -

- -

- (2

72)

1,74

4 -

- 81

0 2,

282

Oth

er o

pera

ting

inco

me

5,05

8 77

7 17

,123

2,

555

(166

) 12

9 10

0 79

6 (3

,183

) 23

,189

Oth

er o

pera

ting

expe

nses

(1

4,49

6)

(2,0

22)

(1,9

69)

(1,4

57)

(95)

(9

33)

(202

) (5

91)

506

(21,

259)

Impa

irmen

t los

s of

loan

s an

d de

bt s

ecur

ities

(5

,697

) (3

10)

(5,1

94)

--

-29

1(2

48)

(429

) (1

1,58

7)

Pro

fit (l

oss)

bef

ore

inco

me

tax

3,74

9 2,

903

10,6

78

1,35

0 (3

1)

1,19

2 54

1 1,

235

(2,3

39)

19,2

78

Inco

me

tax

(750

) (5

81)

(1,8

86)

(264

) 6

(238

) (1

19)

(254

) 55

(4,0

31)

Pro

fit (l

oss)

from

con

tinui

ng o

pera

tions

bef

ore

non-

cont

rolli

ng in

tere

sts

2,99

9 2,

322

8,79

2 1,

086

(25)

95

4 42

2 98

1 (2

,284

) 15

,247

Pro

fit fr

om d

isco

ntin

ued

oper

atio

ns b

efor

e in

com

e ta

x -

- -

- 44

3 -

- -

- 44

3

Inco

me

tax

--

--

(89)

-

--

-(8

9)

Pro

fit b

efor

e no

n-co

ntro

lling

inte

rest

2,

999

2,32

2 8,

792

1,08

6 32

995

442

298

1(2

,284

) 15

,601


99

(Uni

t: M

illio

n B

aht)

For t

he y

ear e

nded

31

Dec

embe

r 201

2

Ban

king

bus

ines

s

Ret

ail

Cor

pora

te

and

SM

E

Trea

sury

&

Inve

stm

ent

and

othe

rs

Sec

uriti

es

busi

ness

Life

insu

ranc

e

busi

ness

Non

-life

insu

ranc

e

busi

ness

Ass

et

man

agem

ent

busi

ness

Oth

er

busi

ness

Elim

inat

ions

Con

solid

ated

Net

inte

rest

inco

me

17,3

45

3,65

8 (4

3)

190

496

187

359

941

47

23,1

80

Net

insu

ranc

e in

com

e -

- -

- (4

1)

1,25

1 -

- 93

7 2,

147

Oth

er o

pera

ting

inco

me

4,90

6 91

9 5,

077

1,74

0 (4

6)

88

214

654

(4,8

13)

8,73

9

Oth

er o

pera

ting

expe

nses

(1

5,61

2)

(2,0

10)

(1,9

00)

(1,1

77)

(95)

(6

76)

(182

) (5

07)

500

(21,

659)

Impa

irmen

t los

s of

loan

s an

d de

bt s

ecur

ities

(2

,940

) (1

,746

) 6

21-

-1,

810

(42)

(8

9)

(2,9

80)

Pro

fit b

efor

e in

com

e ta

x 3,

699

821

3,14

0 77

4 31

4 85

0 2,

201

1,04

6 (3

,418

) 9,

427

Inco

me

tax

(851

) (1

89)

235

(171

) (1

00)

(234

) (5

31)

(245

) 10

(2,0

76)

Pro

fit fr

om c

ontin

uing

ope

ratio

ns b

efor

e no

n-co

ntro

lling

inte

rest

s 2,

848

632

3,37

5 60

3 21

4 61

6 1,

670

801

(3,4

08)

7,35

1

Pro

fit fr

om d

isco

ntin

ued

oper

atio

ns b

efor

e in

com

e ta

x

- -

- -

1,62

5 -

- -

- 1,

625

Inco

me

tax

--

--

(413

) -

--

-(4

13)

Pro

fit b

efor

e no

n-co

ntro

lling

inte

rest

2,

848

632

3,37

5 60

31,

426

616

1,67

0 80

1(3

,408

) 8,

563

Ass

ets

for s

egm

ent o

f the

Ban

k an

d its

sub

sidi

arie

s as

at 3

1 D

ecem

ber 2

013

and

2012

are

as

follo

ws:

(U

nit:

Mill

ion

Bah

t)

Ban

king

bus

ines

s

Ret

ail

Cor

pora

te

and

SM

E

Trea

sury

&

Inve

stm

ent

and

othe

rs

Sec

uriti

es

busi

ness

Life

insu

ranc

e

busi

ness

Non

-life

insu

ranc

e

busi

ness

Ass

et

man

agem

ent

busi

ness

Oth

er

busi

ness

Elim

inat

ions

Con

solid

ated

Ass

et fo

r seg

men

t

As

at 3

1 D

ecem

ber 2

013

521,

044

249,

730

219,

950

7,12

1 11

,399

9,

896

9,11

6 30

,021

(1

9,92

8)

1,03

8,34

9

As

at 3

1 D

ecem

ber 2

012

484,

345

255,

028

213,

836

7,29

3 41

,015

9,

228

10,1

63

22,4

81

(24,

769)

1,

018,

620


100

43.3 Major customers

For the year 2013 and 2012, the Bank and its subsidiaries have no major customer with

revenue of 10 percent or more of an entity’s revenues.

44. Encumbrance of assets

As at 31 December 2013 and 2012, the Bank and its subsidiaries have the assets, which

are subject to restriction, presented at book value as follows:


Consolidated


Separate


2013 2012 2013 2012

Interbank and money market items (assets)

Guarantee placed with the registrar 1,950 1,950 - -

Placed with court for stay of execution 8 7 - -

Investment in securities

Guarantee placed with commercial banks - 5,985 - 5,985

Guarantee placed with the registrar 1,783 6,379 - -

Placed with court for stay of execution 384 22 297 22

Property foreclosed

Immovable assets subject to buyback

options or first refusal rights 352 640 259 535

Immovable assets subject to purchase or sell

agreements with clients but currently being

settled in installments or through transfer of

ownership 629 487 147 440

5,106 15,470 703 6,982


101

45. Commitments and contingent liabilities

As at 31 December 2013 and 2012, significant commitments and contingent liabilities

consisted of:

45.1 Commitments


Consolidated


Separate


2013 2012 2013 2012

Aval to bills 665 554 665 554

Liability under unmatured import bills 646 885 646 885

Letter of credits 4,067 3,183 4,067 3,183

Other obligations

Committed (but not draw) overdraft 27,984 28,249 27,984 28,249

Others 23,310 25,957 23,256 25,925

Total 56,672 58,828 56,618 58,796

In addition, the Bank and its subsidiaries have commitments in respect of foreign exchange

contracts, cross currency and interest rate swap contracts, interest rate swap contracts, and

gold futures contracts, as mentioned in Note 8 to the financial statements.

45.2 As at 31 December 2013, 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

contracts, as follow:




Other Parent Other Parent

Year parties company parties company

2014 1,890 19 1,800 18

2015 1,322 1 1,232 1

2016 onward 2,249 - 2,206 -

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.


102

45.3 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 the Financial Institutions

Development Fund (“FIDF”). As at 31 December 2013, 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. This 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 qualification of the assets transferred 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 2013, 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. Thanachart Bank’s management believes that no significant further

losses will arise.

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.


103

As at 31 December 2013, the transferred assets which SAM is re-examining totaling

Baht 136 million consist of (i) Baht 7 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 129 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 68 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 Baht 11,617 million, as disclosed under contingent liabilities in Note 46 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 2013, the

deposit account of the FIDF with Thanachart Bank to fund the payment of compensation for

losses has an outstanding balance of approximately Baht 707 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.

45.4 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.


104

46. Litigation

As at 31 December 2013, the Bank and its subsidiaries have contingent liabilities amounting to approximately Baht 14,806 million (separate financial statements: Baht 14,435 million) in respect of litigation. However, the Bank and its subsidiaries’ management have already made certain provisions for contingent 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 for litigation mentioned above, amounting to Baht 11,617 million, relates to lawsuits involving the Bank as a result of the transfer of business from BMB to SCIB, and the Bank 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 to a single case brought by a debtor that BMB had already transferred to SAM before SCIB received the transfer of business from BMB, and the Bank believes that the lawsuit has been brought against the wrong party, and is not SCIB’s or the Bank’s responsibility).

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 the counterfeit documents so as to proceed with a legal action. The court has already ordered the transfer of all cases to the Bank. The Bank’s management believes that no liability will arise from such restitution claim.

47. Letter of guarantees

As at 31 December 2013, the Bank and its subsidiaries had letter of guarantees issued by banks on behalf of the Bank and its subsidiaries, amounting approximately Baht 33 million, placed for electricity usage of the branches (separate financial statements: Baht 33 million).

48. Disposal of investment in a subsidiary company / Discontinued operations - Investment in Thanachart Life Assurance Plc.

On 5 November 2012, the Bank signed a Share Purchase Agreement with Prudential Life Insurance (Thailand) Plc. (“the Buyer”) to sell the common shares of Thanachart Life Assurance Public Company Limited (“Thanachart Life Assurance”) held by the Bank, which represented 100% of the total issued and paid-up capital. The value of the transaction was Baht 17,500 million, with a post-completion adjustment to be made based on agreed terms to reflect the net asset value as at the completion date. A further payment of Baht 500 million is also due in 12 months after the completion date. Under this agreement, the share payment and transfer will occur after the Buyer receives an approval from the Office of Insurance Commission (“OIC”) and both parties sign the Exclusive Bancassurance Agreement. The transaction will be recognised when the transfer of the shares and related payment are complete.


105

On 29 March 2013, the Buyer received an approval from the Office of Insurance

Commission (“OIC”) to acquire more than 10% of the issued and paid up shares of

Thanachart Life Assurance for the purpose of the business combination, which was an

important condition in the agreement. On 3 May 2013, the Share Purchase Agreement

became legally effective as both parties fulfilled the conditions stated in the agreement,

including the conclusion of an Exclusive Bancassurance Agreement between Thanachart

Bank and Prudential Life Insurance, which will be effective for a period of 15 years. The

Bank transferred 328,500,000 shares of Thanachart Life Assurance Plc., representing 100%

of shares, and received payment for the shares in the amount of Baht 17,500 million in

accordance with the agreement. A post-completion adjustment on the net asset value of

Thanachart Life Assurance as at the completion date amounting to Baht 940 million was

recognised as a part of this transaction and payment of this amount was received in July

2013. During the year, the Bank therefore recognised the transaction and allocated the full

selling price of investment between the value of the shares and the service to be provided

by the Bank under the Exclusive Bancassurance Agreement, based on the estimated fair

value of shares as determined by the Bank’s management and other factors. Gain on

disposal of Baht 12,216 million in the consolidated financial statements and Baht 13,128

million in the separate financial statements were recognised in the statement of

comprehensive income for the year 2013.

In addition, the Bank is to receive a further payment amounting to Baht 500 million for

granting the right to use Thanachart logo. The further payment is due in 12 months after the

date the payment was made for the shares. The Bank amortises the amount to income over

the period.

According to the Bancassurance agreement, the Bank is to recognise such allocated

income throughout the period as specified in the agreement and to present such allocated

service fee as a part of “Other liabilities - income received in advance”. In addition, the Bank

has to comply with the terms and conditions as specified in such agreement.


106

Therefore, to comply with the requirements of accounting standards, the operating results of

Thanachart Life Assurance Plc. were separately presented under “Profit for the year from

discontinued operations” and “Other comprehensive income from discontinued operations”

in the consolidated statement of comprehensive income for the year 2013, and that of 2012

for comparative purposes. The details are as follows.


For the years ended

31 December

2013(1) 2012

Consolidated statements of comprehensive income

Profit or loss

Interest income 358 939

Fees and service expenses (1) (3)

Gains on investments 17 136

Life insurance income 3,644 9,936

Dividend income 4 51

Other operating income 3 1

Total operating income 4,025 11,060

Insurance expenses (3,452) (9,061)

Net operating income 573 1,999

Other operating expenses

Employee's expenses 49 116

Premises and equipment expenses 21 67

Taxes and duties 11 28

Other expenses 49 163

Total other operating expenses 130 374

Profit before income tax 443 1,625

Income tax (89) (413)

Profit for the year from discontinued operations 354 1,212


Gains (losses) on changes in value of available-for-sale investments (147) (450)

Income tax relating to components of other comprehensive income 28 109

Other comprehensive income from discontinued operations (loss) (119) (341)

Total comprehensive income 235 871

(1) The operating results of Thanachart Life Assurance Plc. since 1 January 2013 to the date of disposal of the investment


107

Changes of operating assets and operating liabilities of Thanachart Life Assurance Plc.

which included in consolidated cash flows statements for the years ended 31 December

2013 and 2012 are as follows. (Unit: Million Baht)

2013(1) 2012

Operating assets (increase) decrease

- Interbank and money market items 538 (2,717)

- Investment - net (2,862) (3,020)

- Other assets 16 (64)

- Others 44 688

(2,264) (5,113)

Operating liabilities increase (decrease)

- Insurance contract liabilities 706 3,625

- Income tax payable 115 147

- Payable from purchase and sale of securities 959 -

- Other liabilities 115 63

- Others (17) 21

1,878 3,856

(1) Cash flows information of Thanachart Life Assurance since 1 January 2013 to the date of disposal of the investment

Cash flow information of Thanachart Life Assurance Plc. for the years ended 31 December

2013 and 2012 is as follows:

(Unit: Million Baht) 2013(1) 2012

Cash flows from (used in) operating activities 2,819 2,895

Cash flows from (used in) investing activities (2,819) (2,895)

(1) Cash flows information of Thanachart Life Assurance Plc. since 1 January 2013 to the date of disposal of the investment


108

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/commodity position risk.

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.



109

As at 31 December 2013 and 2012, financial assets and liabilities classified by types of

interest rate are as follows:



2013

Floating Fixed Non-

interest interest interest

Transactions rate rate bearing Total

Financial assets

Cash - - 17,940 17,940

Interbank and money market items 951 59,237 9,673 69,861

Derivatives assets - - 3,914 3,914

Investments 2 133,322 4,930 138,254

Investments in associated companies - - 1,835 1,835

Loans to customers(1) 325,621 463,835 561 790,017

Receivable from purchase and sale of securities - - 1,646 1,646

Other assets - receivable from clearing house - - 170 170


Deposits 245,172 467,054 6,853 719,079


Liabilities payable on demand - - 3,219 3,219

Derivatives liabilities - - 5,701 5,701

Debt issued and borrowings 4 92,225 - 92,229

Payable from purchase and sale of securities - - 1,295 1,295

Other liabilities - payable to clearing house - - 509 509

(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

110



2012

Floating Fixed Non-



Financial assets

Cash - - 15,181 15,181



Investments 5 132,909 11,792 144,706

Investments in associated companies - - 1,576 1,576


Receivable from purchase and sale of securities - - 2,103 2,103

Other assets - receivable from clearing house - - 944 944


Deposits 244,810 446,617 6,945 698,372




Debt issued and borrowings 4 78,104 41 78,149

Payable from purchase and sale of securities - - 2,874 2,874

Other liabilities - payable to clearing house - - 126 126




111



2013

Floating Fixed Non-



Financial assets

Cash - - 17,939 17,939

Interbank and money market items 782 55,892 9,612 66,286


Investments 2 120,685 4,775 125,462

Investments in subsidiary and associated companies - - 9,510 9,510



Deposits 245,656 469,715 6,891 722,262




Debt issued and borrowings 4 76,919 - 76,923

Payable from purchase and sale of securities - - 1 1




112



2012

Floating Fixed Non-



Financial assets

Cash - - 15,180 15,180



Investments 5 95,447 10,556 106,008

Investments in subsidiary and associated companies - - 13,759 13,759


Receivable from purchase and sale of securities - - 3 3


Deposits 245,414 448,878 6,990 701,282




Debt issued and borrowings 4 68,351 41 68,396

Payable from purchase and sale of securities - - 11 11



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)


2013

Repricing or maturity date Weighted

0 - 3 3 - 12 1 - 5 Over 5 average

Transactions At call months months years years Total interest rates

Percent

Financial assets

Interbank and money market items 22 48,127 11,088 - - 59,237 3.21 - 3.58

Investments - 1,755 27,513 85,381 18,673 133,322 3.32 - 4.93

Loans to customers 6,394 17,918 11,604 312,602 115,317 463,835 7.70 - 8.95


Deposits 31 222,425 221,391 23,207 - 467,054 3.02

Interbank and money market items 1,275 43,400 18,620 6,436 - 69,731 1.73 - 3.62

Debt issued and borrowings 1,061 23,265 20,100 35,283 12,516 92,225 4.65 - 4.96


113



2012


0 - 3 3 - 12 1 - 5 Over 5 average


Percent

Financial assets

Interbank and money market items - 52,667 3,045 4,460 - 60,172 3.14 - 3.92

Investments - 7,561 33,576 67,930 23,842 132,909 3.50 - 3.57

Loans to customers 5,807 21,258 11,171 264,373 122,233 424,842 7.81 - 8.92


Deposits 71 268,497 170,514 7,535 - 446,617 3.23

Interbank and money market items 3,145 61,062 5,117 8,429 - 77,753 2.23 - 3.77

Debt issued and borrowings 1 15,855 12,140 37,592 12,516 78,104 4.67 - 4.99



2013


0 - 3 3 - 12 1 - 5 Over 5 average


Percent

Financial assets

Interbank and money market items 572 46,863 8,457 - - 55,892 3.21

Investments - 1,470 26,509 82,502 10,204 120,685 3.32

Loans to customers 6,140 17,854 10,625 286,166 115,142 435,927 7.70


Deposits 31 223,424 223,053 23,207 - 469,715 3.02

Interbank and money market items 495 44,433 13,632 4,885 - 63,445 1.81

Debt issued and borrowings 1 23,265 18,100 23,037 12,516 76,919 4.65



2012


0 - 3 3 - 12 1 - 5 Over 5 average


Percent

Financial assets

Interbank and money market items 200 52,036 2,693 - - 54,929 3.14

Investments - 4,800 27,866 59,533 3,248 95,447 3.50

Loans to customers 5,638 21,151 10,544 245,657 121,962 404,952 7.81


Deposits 71 268,567 172,705 7,535 - 448,878 3.23

Interbank and money market items 2,645 56,847 5,268 7,556 - 72,316 2.26

Debt issued and borrowings 1 15,855 11,387 28,592 12,516 68,351 5.01


114

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 year, and the average interest rate for the years ended

31 December 2013 and 2012 can be summarised as follows:




2013 2012

Average Average Average Average

balances Interest rate (%) balances Interest rate (%)

Interest bearings financial assets

Interbank and money market items 50,316 1,865 3.71 58,855 2,294 3.90

Investments and trading operations 13,126 457 3.48 15,028 480 3.19

Investment in debt securities 107,971 3,867 3.58 95,676 3,606 3.77

Loans to customers/hire purchase

and finance leases 756,613 47,698 6.30 660,148 42,356 6.42

Interest bearings financial liabilities

Deposits 695,558 21,460 3.09 556,234 17,543 3.15


Debt issued and borrowings 90,814 4,311 4.75 149,190 6,449 4.32




2013 2012

Average Average Average Average

balances Interest rate (%) balances Interest rate (%)

Interest bearings financial assets


Investments and trading operations 3,858 69 1.79 5,227 68 1.30

Investment in debt securities 104,006 3,722 3.58 91,726 3,418 3.73

Loans to customers/hire purchase

and finance leases 720,855 45,020 6.25 635,886 40,616 6.39

Interest bearings financial liabilities

Deposits 698,073 21,513 3.08 566,986 17,707 3.12


Debt issued and borrowings 78,938 3,715 4.71 144,495 6,192 4.29


115

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

2013 and 2012 can be summarised as follows:



2013

US Dollar Euro Yen Yuan Others

Foreign currency in the statement of

financial position

Cash 1,303 586 62 3 475

Interbank and money market items 11,409 34 63 545 101

Investments 10,638 1 - 2,921 1,170

Loans to customers 22,824 137 112 - 50

Other assets 1,123 - - 13 1

Total assets 47,297 758 237 3,482 1,797

Deposits 384 45 - - 20

Interbank and money market items 22,319 4 - - -

Other liabilities 10 - - - -

Total liabilities 22,713 49 - - 20

Net 24,584 709 237 3,482 1,777

Foreign currency commitments

Liability under unmatured import bills 466 29 102 - 7

Letter of credits 3,605 39 292 - 53

Others 901 52 1 - 47


116



2012


Foreign currency in the statement of

financial position

Cash 520 350 62 2 228


Investments 10,187 607 1,312 - 38


Other assets 205 - 6 - -

Total assets 49,794 1,174 1,951 6 576

Deposits 143 36 - - 113

Interbank and money market items 15,340 - - - -


Net 34,311 1,138 1,951 6 463




Others 814 47 5 - 16



2013


Foreign currency in the statement

of financial position

Cash 1,303 586 62 3 475


Investments 10,638 1 - 2,921 1,170


Other assets 1,121 - - 13 1

Total assets 47,295 758 237 3,482 1,797

Deposits 384 45 - - 20

Interbank and money market items 22,319 4 - - -


Net 24,592 709 237 3,482 1,777




Others 901 52 1 - 47


117



2012


Foreign currency in the statement

of financial position

Cash 520 350 62 2 228


Investments 10,187 607 1,312 - 38


Other assets 205 - 6 - -

Total assets 49,794 1,174 1,951 6 576

Deposits 143 36 - - 113

Interbank and money market items 15,340 - - - -


Net 34,311 1,138 1,951 6 463




Others 814 47 5 - 16

In addition, the Bank and its subsidiaries have commitments from foreign currency

exchange contracts, cross currency and interest rate swap contracts, interest rate swap

contracts and other derivative contracts which have to pay or receive repayment in foreign

currency that the Bank and its subsidiaries made for trading transactions or hedging

transactions (banking book) as follow: (Unit: Million Baht)


2013


Foreign exchange contracts

- Bought 41,331 144 133 - 334

- Sold 53,266 889 375 3,546 970

Cross currency and interest rate swap contracts

- Bought 1,885 - - - -

- Sold 12,451 - - - 1,140

Interest rate swap contracts

- Bought 40,990 - - - -

- Sold 40,990 - - - -


118

(Unit: Million Baht) Consolidated financial statements

2012



- Bought 39,587 245 375 - 222

- Sold 63,801 817 978 8 678


- Bought 487 - - - -

- Sold 9,830 608 1,312 - -


- Bought 6,818 - - - -

- Sold 6,818 - - - -

(Unit: Million Baht) Separate financial statements

2013



- Bought 41,067 144 133 - 334

- Sold 53,531 889 375 3,546 970


- Bought 1,885 - - - -

- Sold 12,451 - - - 1,140


- Bought 40,990 - - - -

- Sold 40,990 - - - -

(Unit: Million Baht) Separate financial statements

2012



- Bought 39,565 245 375 - 222

- Sold 63,841 817 978 8 678


- Bought 487 - - - -

- Sold 9,830 608 1,312 - -


- Bought 6,818 - - - -

- Sold 6,818 - - - -


119

c) Equity position risk/commodity risk

Equity position risk/commodity risk is the risk that changes in the market prices of equity

securities/commodity 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.


120

Counting from the financial position date, the periods to maturity of financial instruments

held as at 31 December 2013 and 2012 are as follows:



2013

Transactions At call

Less than

1 year

Over

1 year Unspecified Total

Financial assets

Cash 17,940 - - - 17,940


Derivatives assets - 3,914 - - 3,914

Investments 1 37,792 95,618 4,843 138,254

Investments in associated companies - - - 1,835 1,835

Loans to customers(1) 62,562 224,489 502,966 - 790,017

Receivable from purchase and sale of securities - 1,646 - - 1,646

Other assets - receivable from clearing house - 170 - - 170


Deposits 248,085 443,392 27,602 - 719,079


Liability payable on demand 3,219 - - - 3,219

Derivatives liabilities - 5,701 - - 5,701

Debt issued and borrowings 1,065 31,235 52,799 7,130 92,229

Payable from purchase and sale of securities - 1,295 - - 1,295

Other liabilities - payable to clearing house - 509 - - 509

Commitments

Aval to bill 15 571 79 - 665

Liability under unmatured import bills 42 604 - - 646



(1) The outstanding balances of loans to customers at call included loans for which revenue recognition has been discontinued.


121



2012


Less than

1 year

Over


Financial assets

Cash 15,181 - - - 15,181



Investments - 48,072 86,067 10,567 144,706

Investments in associated companies - - - 1,576 1,576


Receivable from purchase and sale of securities - 2,103 - - 2,103

Other assets - receivable from clearing house - 944 - - 944


Deposits 248,014 441,579 8,779 - 698,372




Debt issued and borrowings 46 20,865 50,108 7,130 78,149

Payable from purchase and sale of securities - 2,874 - - 2,874

Other liabilities - payable to clearing house - 126 - - 126

Commitments

Aval to bill 11 429 114 - 554



Other commitments 43,578 8,179 2,448 2 54,207



122



2013


Less than

1 year

Over


Financial assets

Cash 17,939 - - - 17,939



Investments 1 28,024 92,748 4,689 125,462

Investments in subsidiary and associated

companies - - - 9,510 9,510



Deposits 248,608 446,052 27,602 - 722,262





Payable from purchase and sale of securities - 1 - - 1

Commitments

Aval to bill 15 571 79 - 665






123



2012


Less than

1 year

Over


Financial assets

Cash 15,180 - - - 15,180

Interbank and money market items 10,049 55,912 - - 65,961


Investments - 29,910 66,416 9,682 106,008


companies - - - 13,759 13,759


Receivable from purchase and sale of securities - 3 - - 3


Deposits 248,663 443,840 8,779 - 701,282





Payable from purchase and sale of securities - 11 - - 11

Commitments

Aval to bill 11 429 114 - 554



Other commitments 43,578 8,179 2,415 2 54,174



124

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 of securities, 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. Investment in subsidiary and associated companies

are stated at the book value.

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 of securities, and payable to clearing house, are considered to

approximate their respective carrying values for the same reasons as described above.


125

As at 31 December 2013 and 2012, the book value and fair value of financial instruments of

the Bank and its subsidiaries are as follow.



2013 2012

Book value Fair value Book value Fair value

Financial assets

Cash 17,940 17,940 15,181 15,181

Interbank and money market items - net 69,697 69,697 71,963 71,963


Investments - net 138,825 139,142 146,106 146,916

Investments in associated companies 1,835 1,835 1,576 1,576

Loans to customers - net 760,943 760,943 731,010 731,010

Receivables from purchase and sale of securities 1,646 1,646 2,103 2,103

Other assets - receivable from clearing house 170 170 944 944


Deposits 719,079 719,079 698,372 698,372


Liabilities payable on demand 3,219 3,219 4,989 4,989

Derivatives liabilities 5,701 5,701 1,206 1,206


Payable from purchase and sale of securities 1,295 1,295 2,874 2,874

Other liabilities - payable to clearing house 509 509 126 126


126



2013 2012

Book value Fair value Book value Fair value

Financial assets

Cash 17,939 17,939 15,180 15,180

Interbank and money market items - net 66,095 66,095 65,964 65,964


Investments - net 125,874 126,191 106,924 107,326


companies - net 9,505 9,505 13,754 13,754


Receivables from purchase and sale of securities - - 3 3


Deposits 722,262 722,262 701,282 701,282


Liabilities payable on demand 3,219 3,219 4,989 4,989

Derivatives liabilities 5,697 5,697 1,202 1,202


Payable from purchase and sale of securities 1 1 11 11

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 commodity 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 as 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.


127

As at 31 December 2013 and 2012, the Bank and its subsidiaries have financial derivatives

for trading and hedging (banking book) as classified by their maturities as follows:



2013 2012

Less than Over Less than Over

1 year 1 year Total 1 year 1 year Total

Foreign exchange contracts - Bought 41,942 - 41,942 40,429 - 40,429

- Sold 59,046 - 59,046 66,282 - 66,282

Cross currency and interest rate

swap contracts

- Bought 217 1,668 1,885 - 487 487

- Sold 217 13,374 13,591 2,533 9,217 11,750


- Paid fixed interest rate 26,434 140,977 167,411 1,000 75,947 76,947

- Paid floating interest rate 14,229 125,190 139,419 1,000 49,407 50,407

- Received fixed interest rate 14,229 125,190 139,419 1,000 49,407 50,407

- Received floating interest rate 26,434 140,977 167,411 1,000 75,947 76,947

Future contracts

- Sold 272 - 272 40 - 40

Derivative Warrants

- Bought 9 - 9 - - -

- Sold - - - 14 - 14



2013 2012

Less than Over Less than Over

1 year 1 year Total 1 year 1 year Total

Foreign exchange contracts - Bought 41,678 - 41,678 40,407 - 40,407

- Sold 59,311 - 59,311 66,322 - 66,322

Cross currency and interest rate

swap contracts

- Bought 217 1,668 1,885 - 487 487

- Sold 217 13,374 13,591 2,533 9,217 11,750


- Paid fixed interest rate 26,434 140,977 167,411 1,000 75,947 76,947

- Paid floating interest rate 14,229 125,190 139,419 1,000 49,407 50,407

- Received fixed interest rate 14,229 125,190 139,419 1,000 49,407 50,407

- Received floating interest rate 26,434 140,977 167,411 1,000 75,947 76,947


128

50. Events after the reporting period

On 20 February 2014, the Board of Directors of the Bank passed a resolution to propose the

payment of a dividend of Baht 0.45 per share to the ordinary shareholders in respect of the

operating results for the year 2013, or a total of Baht 2,481 million, to be considered by the

Annual General Meeting of Shareholders.

51. Approval of financial statements

These financial statements were authorised for issue by the Bank’s Board of Directors on

20 February 2014.


213ThanacharT Bank PuBlic comPany limiTed

corPoraTe Governance

report on corporate Governance

The Bank’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 to conform with the principle of corporate governance

assessment issued by the Thai Institute of Directors Association (IOD: CGR) and the principle of good corporate governance

for listed companies 2012 issued by the Stock Exchange of Thailand (SET). The Bank has also established the reporting

process on business compliance with corporate governance principles of the Bank, and has improved the business ethics

as well as codes of conduct for directors, executives, and staff in order to establish a framework for all personnel of the Bank.

The Bank has established a corporate governance policy (the Policy) as well as business codes of conduct and codes

of conduct for directors, executives, and staffs. 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 and every stakeholder about governance established and practiced by the Board of Directors.

In 2013, the developments in the area of corporate governance include:

• Revision of the good corporate governance policy and codes of conduct to be consistent with the revised principle

of corporate governance assessment issued by the IOD, the principle of good corporate governance for listed companies

2012 issued by the SET in order to establish the same practice for Thanachart Group;

• Provision of a summary of the revised policies, and advice to companies of Thanachart Group for their implementation

of consistent policies and codes of conduct as appropriate for their respective businesses;

• Training on the Policy and codes of conduct for newly recruited employees of all levels, and the requirement for

executives and staff of all levels to sign and acknowledge the corporate governance policies and codes of conduct on a

monthly basis;

• Requirement for executives and staff of all levels to sign a written confirmation on non-exploitation of benefits;

• Evaluation of all levels of Thanachart Group’s employees in order to assess and evaluate their knowledge and

comprehension of good corporate governance practices. Two evaluations were conducted, of which 99.7 percent of employees

participated, and 95.7 percent of questions were answered correctly; and

• Development of CG E-learning on Intranet enabling the employees to conduct self-learning.

Moreover, Thanachart Group has continually supported good corporate governance and recognition of corporate

social responsibility awareness (CG & CSR Project) among staff in the Group, both through its policies and in various forms

of activities, with the intent to increase their awareness of the working principles of various business units in accordance with

good corporate governance. Various internal channels which allow easy access, such as VTRs, short movies, cartoons and

interviews of famous people in various industries and national experts in corporate governance through the cooperation with

the Office of the National Anti-Corruption Commission (NACC) and the Anti-Money Laundering Office (AMLO) on instructional

media enhancing the knowledge and understanding of anti-corruption and money laundering are used under the “Thanachart

Tam-Dai, Tam-Dee..CG Ri-Rerm Term-Tham” program. Morals activities are also arranged in Bangkok and its vicinities, and

other regions of the country in order to provide employees with guidelines of mental management for their work and daily life.

214 annual rePorT 2013

Board of directors and Sub-committees

Board of Directors

The Board of Directors’ composition, duties and

responsibilities are as follows:

Composition of the Board of Directors

The Bank has specified the number of the Board

of Directors to be in accordance with the rule of law and

harmonize with the type and size of the business so that

the Board of Directors shall be effective. Moreover, of the

total number of the Board members, not more than a half

shall be executive directors and at least one-third shall be

directors who are independent of the management and do

not have any vested interest in or any connection with the

Bank’s business and in fair proportion of the investment of

each shareholders group. The name list of the Bank’s Board

of Directors as of December 31, 2013 is as per the table of

the Bank’s Board of Directors structure in page 227

Roles and Responsibilities of the Board of Directors

1. Discharge duties with responsibility and to the best

of their abilities and fairness to the organization, shareholders,

executives, and employees of the Bank.

2. Set out key policies, strategic plans, financial goals

and budgets and make a review as deemed fit and the

business can be sustainable.

3. Specify a clear policy and guideline for the Bank’s

CEO & President, and high executives in assuming a director

position at other companies including the type of director

position and number of companies that can assume the

position, for example, a prior approval from the Board of

Directors shall be obtained, etc.

4. Oversee and control its affiliated companies in

order to protect the interest of the Bank’s investment. The

Board of Directors has considered the appropriateness of

the person to be sent to assume a director position at an

affiliated company to control business management to be

in accordance with the Bank’s policy and to ensure that

all transactions shall be executed in accordance with the

law and criteria of the securities and stock exchange laws,

declarations of the stock exchange, and other related laws.

5. Oversee, monitor and ensure the Bank’s business

conduct is in compliance with the objectives, goals, Articles

of Association, resolutions of the shareholders’ meeting

and principles of good corporate governance on the basis

of integrity and honesty, while exercising due care in the

protection of the interests of the Bank.

6. Ensure that the Bank has in place the audit

process, internal control, risk management, and monitoring

and compliance systems that are adequate and fit with the

prevailing business environment.

7. The Board of Directors shall provide a system to

control work execution, financial reporting, and compliance

to the rules, regulations, and policies. The Board of Directors

shall provide independent person or institute to audit such

monitoring system and must be exhibited in the annual report.

8. The Board of Directors or the Audit Committee

shall comment on the sufficiency of the internal control system

and risk management in the annual report.

9. Ensure fair treatment to all groups of stakeholders

and assume responsibility for financial reporting and information

disclosure on an accurate, transparent and timely basis.

10. Prepare a report on responsibilities of the

Board of Directors for financial report for publishing, together

with report of an auditor, in the Bank’s annual report, covering

therein all crucial matters specified in the ‘code of best

practices for listed company directors,’ to assure that the

Bank’s financial reports are accurate, complete and reliable.

The Bank has duly complied with the accounting standards

by adopting, and adhering consistently to, appropriate

accounting policies.

11. Appoint members of all Board committees

as deemed appropriate.

12. Determine scope of power and duties of

the CEO & President.

13. Conduct a performance evaluation and

determine compensation and employment terms and

conditions for the CEO & President based on recommendation

by the Nomination and Remuneration Committee.

14. Evaluate the whole Board performance.

15. Ensure one’s continuous knowledge and

competence development.


Sub-committees

Executive Committee

The Board of Directors appoints the Executive

Committee which consists of executive directors or directors

representing major shareholders or directors who are external

parties. The Executive Committee reports directly to the Board

of Directors. As of December 31, 20013, the name list of the

Executive Committee was as follows:

1. Mr. Suphadej Poonpipat

Chairman

2. Ms. Suvarnapha Suvarnaprathip

Vice Chairperson

3. Mr. Brendan George John King

Vice Chairman

4. Mr. Somjate Moosirilert

Member

Ms. Angkana Swasdipoon

Secretary

Roles and Responsibilities of the Executive Committee

1. Authorized to approve lines of credit for the benefit

of the Bank as well as approve debt restructuring in compli-

ance with the Financial Institution Business Act as well as

the rules and regulations of the Bank of Thailand (BOT);

2. Authorized to approve investments aimed at

generating earnings for TBANK in compliance with the

Financial Institutions Businesses Act as well as the rules and

regulations of the BOT;

3. To manage business operations in line with the

Bank’s business objectives as well as managing liquidity,

risks and the interest rate structures;

4. Authorized to make purchases, take transfers, and

dispose of TBANK’s assets in an amount up to 5 percent of

the Bank’s share capital;

5. To consider and screen matters which are beyond

the authority of the Executive Committee and to present them

to those having higher authority for consideration;

6. Authorized to restructure and manage the

organization, to establish rules and regulations related to

work process, to appoint and remove employees, to appoint

advisors, as well as directing and governing the conduct of

the Bank’s business affairs;

7. Authorized to approve salaries or other

compensation benefits for employees and advisors to support

TBANK’s normal business operations;

8. To consider and approve appointments of

independent appraisers;

9. To establish expense budgets for appraising

the value of the collateral as well as controlling the related

expenses;

10. Authorized to delegate its authority to other

staff of the Bank for the purpose of efficiency.

The Executive Committee is authorized to approve

lines of credit, investments and obligations in compliance

with the requirements imposed by the BOT. Chairman of the

Executive Committee considers agenda for approval proposed

by CEO & President. The Executive Committee has also

established a number of Sub-Committees to consider and

manage the Bank’s business conducts in a correct, proper,

efficient, and effective manner.

The Audit Committee

The Board of Directors appoints the Audit Committee

consisting of three independent directors, all of which posses

knowledge, understanding and experience in accounting

or finance, as its important tool for monitoring the Bank’s

management of business affairs to ensure that it upholds

appropriate standards and transparency and complies with

the rules and regulations of concerned authorities and those

of the Bank. The Audit Committee is responsible for ensuring

that the Bank puts in place sound internal control systems

and reporting systems that are reliable and useful to all

concerned parties including the shareholders. As of December

31, 2013, the members of the Audit Committee were as

follows:

1. Mr. Kiettisak Meecharoen

Chairman (Independent Director)

2. Mr. Sataporn Jinachitra

Member (Independent Director)

3. Assoc. Prof. Dr.Somjai Phagaphasvivat


Mrs. Vijitra Thumpothong

Secretary


Roles and Responsibilities of the Audit Committee

1. Financial Reporting

• To review the Bank’s financial reports and

the disclosure of information therein, and to evaluate the

appropriateness of significant accounting policies;

• To review the accountability of material

transactions in financial reports, including complex or irregular

transactions and transactions requiring an exercise of

discretion.

2. Internal Control and Risk Management

• To review the Bank’s internal control, including

the internal control of its information technology system, as

well as the guidelines for communicating the significance of

internal control and risk management throughout the Bank;

• To ensure that the internal auditors’ and the

auditors’ recommendations on internal control are

implemented by the management;

• To review the supervision of the policies and

duties relating to risk management of the Bank, so as to

ensure its adequacy.

3. Internal Audit

• To review and approve the internal audit charter,

annual plan as well as necessary personnel and resources

for the performance of duties;

• To review the audit reports and recommendations

of the auditors, as well as to follow up the results of the

implementation of such recommendations;

• To ensure that the Internal Audit Group complies

with the internal audit standards;

• To evaluate the independence of the Internal

Audit Group.

4. Compliance with the Rules and Regulations

• To review and approve the charter of the

Compliance Group, its annual plan as well personnel and

resources necessary for the performance of duties;

• To review the process of monitoring the business

conducts of the Bank to ensure compliance with the related

laws, rules, codes of conducts, policy guidelines and

regulations;

• To review any amendments to the laws and

regulations which affect the Bank’s operations;

• To review any findings by the Compliance

Group and the authorities, as well as to follow up on the

implementation of their recommendations.

5. Auditors

• To consider the qualifications, independence,

performance and remuneration of the auditors, and to

provide recommendations on the appointment of auditors

and determination of auditors’ fee to the Board of Directors;

• To hold a meeting with the auditors without

other management present at least once a year.

6. Connected Transactions or Transactions which

May Lead to Conflicts of Interest

• To review connected transactions as well as

transactions which may lead to conflicts of interest in

accordance with the law and regulations of the authorities,

to ensure that they are reasonable and for the best interests

of the Bank.

7. Report of the Audit Committee

• To prepare and disclose in the Bank’s annual

report a report of the Audit Committee which is signed by

the chairman of the Audit Committee and consists of at least

the information stipulated under the regulations of the Stock

Exchange of Thailand;

• To provide opinions in an annual compliance

report submitted to the Bank of Thailand;

• To review the accountability of the charter of

the Audit Committee at least once a year, and to submit it

to the Board of Directors for its approval in the case of any

amendments thereto.

8. Other Responsibilities

• To ensure that the business conducts of the

Bank and its subsidiaries are in compliance with the Bank’s

policies, by giving the Internal Audit Group the following

assignments:

1) To report to the Bank’s Audit Committee

a summary of the overall performance of the Internal Audit

Group which is responsible for auditing the subsidiaries;

2) To report to the Audit Committee of

Thanachart Capital Public Company Limited (TCAP) a summary

of the overall performance of the Internal Audit Group which

is responsible for auditing the Bank and its subsidiaries, for

further submission to the Bank’s Board of Directors;

3) For the reporting under 1) and 2), if there are

material issues, i.e. conflicts of interest, fraud and violation

of law, the Internal Audit Group must report them in detail.

• To report to the Bank’s Board of Directors

in order to make improvement and rectification in a timely


manner as deemed appropriate by the Audit Committee

if it finds or is doubtful that there are transactions or acts

which may materially affect the Bank’s financial position and

operating results, viz.

1) Conflict of interest transactions;

2) Any fraud, irregularity or material deficiency

in the internal control system;

3) Any violation of the law relating to financial

institution businesses, or regulations of the authorities or other

related laws. If the Bank’s Board of Directors or management

fails to make improvement and rectification within a

reasonable time, the Audit Committee shall disclose such

failure in the annual report and report it to the Bank of

Thailand.

• To conduct a self-evaluation of the entire Audit

Committee and submit it to the Board of Directors on an

annual basis;

• To perform any other duties assigned by the

Board of Directors with the approval of the Audit Committee.

The Nomination and Remuneration Committee

Recognizing the importance of good corporate

governance, the Board of Directors has therefore appointed

the Nomination and Remuneration Committee to propose

policy, forms, and criteria relating to nomination and

remuneration of directors and Sub-Committee’s directors,

Chief Executive Officer and President, and executives to

ensure that the nomination and payments of remuneration

are in line with the related law, the organization’s visions

and missions. As of December 31, 2013, the members of the

Nomination and Remuneration Committee were as follows:

1. Mr. Narong Chivangkur

Chairman (Independent Director)

2. Mr. Sataporn Jinachitra


3. Mr. Rod Michael Reynolds

Member (Non-Executive Director)

Mr. Thaneit Khantikaroon

Secretary

Roles and Responsibilities of the Nomination and

Remuneration Committee

1. To propose policy relating to nomination and

remuneration of directors, Sub-Committee’s directors, Chief

Executive Officer and President, and executives to the Bank’s

Board of Directors;

2. To propose criteria relating to nomination and

remuneration of directors and Sub-Committee’s directors,

Chief Executive Officer and President, and executives to the

Bank’s Board of Directors;

3. To propose performance appraisal criteria of Chief

Executive Officer and President and Executives for annual

consideration of remuneration package;

4. To select and examine the candidates with

appropriate qualifications for appointment as director,

Sub-Committee’s directors, or Chief Executive Officer and

President and to propose qualified candidates to the Bank’s

Board of Directors or Annual General Meeting of Shareholders

(depending on the situation);

5. To consider annual remunerations of director,

Sub-Committee’s directors, Chief Executive Officer and President,

and executives which are in alignment of the criteria that

have been set;

6. To review policy and principles of nomination and

remuneration of directors, Chief Executive Officer and President,

and executives to be appropriate with job descriptions and

the market.

The Corporate Governance Committee

The Board of Directors places a strong emphasis on

upholding good corporate governance in conformity with

the code of best practices for listed companies, as well as

disclosure of information on corporate governance practices

in the Bank’s annual report. To this end, the Bank therefore

deems it proper to appoint the Board of Directors as a

whole to act as the Corporate Governance Committee whom

determines policy on corporate governance in compliance

with the Securities and Exchange Commission (SEC), the

SET, and the BOT’s guidelines, and international standards.


The Risk Management Committee

The Board of Directors appoints the Risk Management

Committee with a duty in specifying risk management

policy to cover the entire organization. Such policy must be

presented to be approved and oversee by the Board of

Directors and the management shall follow the policy and

report back to the Board of Directors on a regular basis.

A revision or assessment of risk management shall be done

at least once a year, must be disclosed in the annual report,

and in each interval that risk has changed. Advance warnings

and report of unusual incidents shall be given importance.

As of December 31, 2013, the members of the Risk Management

Committee were as follows:


Chairman


Vice Chairman

3. Mr. Ziad El-Hoss

Member

4. Mr. Piyaphong Artmangkorn

Member

5. Mr. Anuwat Luengtaweekul

Member

6. Mr. Enghug Nontikarn

Member

7. Mr. Ricky Jon Yakabowich

Member

8. Mr. Kalyanaraman Sivaramakrishnan

Member

9. Mrs. Kjitphan Chunharit

Member

10. Mr. Sakda Chantrasuriyarat

Member

Head of Risk & Capital Markets

Member and Secretary

Roles and Responsibilities of the Risk Management

Committee

1. To propose policy on overall risk management of

the Bank to the Board of Directors for approval. In this regard,

monitoring and auditing standards must be established to

ensure that the risk management policy is strictly adhered

to;

2. To formulate risk management strategies in

accordance with the risk management policy and to ensure

that the Bank’s risks are appropriately measured, monitored,

and maintained at an appropriate level;

3. To review the adequacy of risk management policy,

including the effectiveness of the risk management system

and the adherence to the established policy;

4. To establish risk management measures which

aims at preventing possible losses from occurring and at

finding resolutions;

5. To assess both internal and external factors that

might have material impact on the Bank’s financial positions.

The assessment results will be taken into account in the

adjustment of the Bank’s overall risk management policy;

6. To determine and instruct business units under

the Risk Management Committee for the development of

more efficient risk managing, controlling, and monitoring

mechanisms;

7. To consider and appoint a committee or an officer,

and delegating the authority to the appointed committee

or officer under roles and responsibilities of the Risk

Management Committee;

8. To monitor and control the risk management

conduct of committees and/or business units to ensure that

they adhere to the established policy;

9. To report the committee’s performance to the Audit

Committee regularly on areas that need improvement, ensuring

that the improvements are in line with the established risk

management policy and strategies.

The Asset and Liability Management Committee

The Executive Committee has established the Asset

and Liability Management Committee to manage the Bank’s

liquidity, interest rates and exchange rates effectively. As of

December 31, 2013, the members of the Asset and Liability

Management Committee were as follows:


Chairman


Vice Chairman


Member


Member


5. Mr. Enghug Nontikarn

Member


Member

7. Mrs. Noossara Roonsamrarn

Member

8. Mr. Anuwat Luengtaweekul

Member

9. Mr. Ajay Pratap Mundkur

Member

10. Mr. Sanong Kumnuch

Member

11. Mr. Ziad El-Hoss

Member

12. Ms. Wisarnsri Nilodom

Member

13. Mr. Lalit Dodampe Gamage Dharmaseri

Member

Representative of the Risk Control Department

Secretary

Roles and Responsibilities of the Asset and Liability

Management Committee

1. To formulate the Bank’s liquidity, interest rate,

and exchange rate risk management plans under the policy

established by the Executive Committee;

2. To manage the Bank’s liquidity and exchange rate

risks in accordance with the trends of the money market and

capital market conditions;

3. To manage the Bank’s interest rate structure and

determine the rate of interest both floating and fixed interest

rates in order to prevent any adverse impacts from interest

rate volatility;

4. To approve investments in bonds and private debt

instruments within budget limits;

5. To authorize a person or a group of persons

under the authority of the Asset and Liability Management

Committee;

6. To report on the performance of liquidity, interest

rate and exchange rate management to the Executive

Committee.

The Investment Portfolio Committee

The Executive Committee has established the

Investment Portfolio Committee in order to ensure efficient

investments of the Bank. As of December 31, 2013, the

members of the Investment Portfolio Committee were as

follows:


Chairman


Vice Chairman


Member


Member


Member


Secretary

Roles and Responsibilities of the Investment Portfolio

Committee

1. To determine investment policies as well as to

consider and approve investment plans;

2. To approve investments within the scope of authority

specified by the Bank, which must be complied within

established position limits and VaR limits and to examine

investment proposals that exceed its approval authority

before proposing them to the Executive Committee which

has higher approval authority;

3. To review the investment performance and determine

guidelines aimed at improving investment performance;

4. To acknowledge and delegate the approving

authority to the respected committee or individuals under

the roles and responsibilities of the Investment Portfolio

Committee;

5. To manage the market risk arising from changes

in prices of investment portfolios;

6. To establish and review the ratio of provisioning

or determine the impairment value of the securities invested.

The Credit Committee

The Executive Committee has established the Credit

Committee to enhance the efficiency of the Bank’s credit

approval process. As of December 31, 2013, the members

of the Credit Committee were as follows:


Chairman



Vice Chairperson


Vice Chairman

4. Mr. Ziad El-Hoss

Member

5. Mrs. Noossara Roonsamrarn/

Ms. Wisarnsri Nilodom/

Mr. Sutut Chitmonkongsuk

Member*

6. Mrs. Sasima Taweeskulchai

Member

7. Mr. Wuttichai Suraratchai

Member

8. Mr. Noel Singh

Member


Secretary

Note: * Attends only when his/her agendas are

presented

Roles and Responsibilities of the Credit Committee

1. To regulate operating plan and credit approval

procedures, management and corporate governance under

the policy of the Executive Committee and the Board of

Directors;

2. To establish covenants and conditions of credit

lines and approve new credit lines as well as adjust conditions

on credit lines within the delegated authority, taking into

account the credit risk assessments within the scope specified

by the Bank’s Executive Committee or Board of Directors;

3. To establish the authority on credit approval to a

person or a group of persons within delegated authority of

the Credit Committee;

4. To consider the approval of the retail credit

policies, which include credit risk, market risk, legal risk and

operational risk;

5. To manage the level of credit risk and qualities

of loans under the Bank’s acceptable risk level, in terms of

business prioritization by clearly monitoring the end to end

process;

6. To screen credit applications which exceed the

scope of authorization of the Credit Committee in order to

propose them to the Bank’s Executive Committee or Board of

Directors for approval. In case of urgency, the Credit Committee

may propose credit applications to the aforementioned

committee without screening;

7. To report credit approval results, credit risk

management and loan qualities to the Bank’s Executive

Committee or Board of Directors.

The nomination and appointment of executives of

the highest level

Qualifications of Directors

The Bank has specified the qualifications of directors

including the additional qualifications required for executive

directors and independent directors of which have been

clearly written in the good corporate governance policy of

the Bank as follows:

1. Have knowledge, skill and experience in diverse

fields that are useful and contribute to the Bank’s business

and must be an expertise in the area that should benefit the

Bank with at least one non-executive director with experience

in the Bank’s business, whereby gender is disregarded;

2. Not possess any of the prohibited characteristics

prescribed by applicable laws and regulations;

3. Not hold board positions in any other entity that

operates a business of the same nature as and competing

with the Bank, whether for personal benefit or for the benefit

of other parties, unless it is notified in the shareholders’

meeting before any appointment. The Nomination and

Remuneration Committee, which has the duty to nominate

director candidates for shareholders’ consideration and election,

shall examine and ensure that those candidates do not hold

board positions in or operate a business of the same nature

as and competing with the Bank;

4. Directors, executives or related persons are allowed

to enter into a transaction that is in the usual course of

business with the Bank and members of its group, provided

that the transaction is under the same commercial terms as

those an ordinary person would agree with any unrelated

counterparty under the similar circumstances, on the basis

of commercial negotiation and without any dependent interest,

except for the transactions prohibited by laws or the authority’s

directives;

5. Additional qualifications required for each of the

following positions:


Executive Directors

• Being involved with day-to-day management of the Bank and overseeing and ensuring that the management

implements the policies established by the Board of Directors.

• Numbering not more than a half of the total Board members.

Independent Directors (applicable to public limited companies or as required by the authority)

• Not holding more than 0.5 percent of the Bank’s paid-up registered capital.

• Qualifications are in accordance with the criteria set by the BOT, SET, or SEC, or other governing bodies.

• Not exhibiting any characteristics that violate the criteria for independent directors set out by the Capital Market

Supervisory Board.

• Numbering not less than one-third of the total Board members.

• At least 1 independent director that has banking experience.

6. The Chairman of the Board of Directors and Chief Executive Officer and President shall not be the same person

and must be exhibited in the annual report and on the Bank’s website;

7. Each director should assume a director position in not more than 5 listed companies. If over, the director should be

confident that he/she can allocate sufficient time in taking a director role of the Bank. Anyhow, the director position of other

companies shall not conflict with the rules and regulations of other governing bodies.

Director Nomination Procedures

The Nomination and Remuneration Committee selects and examines the candidates with appropriate qualifications for

appointment as directors, and to propose qualified candidates to the Bank’s Board of Directors or the Annual General Meeting

of Shareholders (depending on the situation) for approval to fill in any vacancies due to the completion of directorship

tenure and for other cases as specified in the Nomination and Remuneration policy and the charter of the Nomination and

Remuneration Committee. The directorship must conform with the Articles of Association of the Bank and other related laws,

and receive the approval from the BOT as per the Financial Institution Business Act B.E. 2551.

In addition, to enhance the good corporate governance relating to the Annual General Meeting of Shareholders

specifically in regards to the protection of shareholders’ right to propose agenda, and nominate qualified candidate(s) to be

appointed as director(s). The shareholders can nominate qualified candidate(s) whom have been approved by the Nomination

and Remuneration Committee not less than 3 months prior to the Annual General Meeting day, and submit the documents

with the details of qualifications, and the consent letter from the nominee(s).

Currently, the directors are from 2 groups of major shareholders as follows:

company number of director (person)

1. Thanachart Capital Public Company Limited 4

2. Scotia Netherlands Holding B.V. 4


Director Appointment Criteria and Methods

According to the Bank’s Articles of Association

and the good corporate governance policy, the director

appointment criteria and methods are as follows:

1. In case of the appointment of a new director to

replace the one who is retired by rotation, the approval from

the shareholders’ meeting is required.

According to Article 18 of the Bank’s Articles of

Association which specifies the criteria and methods as

follows:

(1) A shareholder shall have one vote per share;

(2) At the election of the directors, the shareholders’

meeting may vote for the directors, either one candidate at

a time or candidates consisting in a group or by any other

method as it deems expedient. However, at each voting

time, a shareholder must exercise his right according to the

number of votes specified under (1) and his votes may not

be distributed howsoever to elect any other person;

(3) At the election of the directors, the votes shall

be decided by majority. In case of an equality of vote, the

Chairman of the meeting shall have a casting vote.

2. In case of the appointment made during the

directorship tenure due to a vacancy, the Board of Directors

is able to approve the director’s appointment as selected and

proposed by the Nomination and Remuneration Committee.

According to Articles 21 and 23 of the Bank’s

Articles of Association which states that if the office of director

is vacant otherwise than by completion of a vacating director’s

term of office, the Board of Directors, by votes of not less

than three-fourths (3/4) of the remaining directors, may

appoint a person who is qualified and is not of a forbidden

nature under the laws, as a director in his or her place at

the following meeting of the Board of Directors, except for

the event that the vacating director’s term of office is less

than the period stipulated by the law. Any person appointed

or elected as a replacement director shall retain his or her

office during such time only for the remaining tenure of his

or her predecessor.

Nomination of Executives of the Highest Level

The Nomination and Remuneration Committee conducts

preliminary consideration and proposes for the Board of

Directors’ approval of the qualified candidate(s) possessing

the knowledge, competency, skills and experience of use

to the Bank’s operations to be nominated for the position

of the Chief Executive Officer and President. This position

requires thorough understanding of the Bank’s business, and

the ability to manage the business in a way that achieves

objectives and goals set by the Bank’s Board of Directors.

Governance of the Business conducts of Subsidiaries

and associated companies

(1) Governance of the business conducts of subsidiaries


In accordance with the good corporate governance

policy of the Bank, and the roles and responsibilities of the

Board of Directors as shown on page 214

(2) Agreements between the Bank and other

shareholder(s) in regards to the management of subsidiaries


- None -

The controls of the use of internal information

The Bank has specified the controls of the use of

internal information in the ethics and code of conduct which

can be summarized as follows:

• An appropriate oversight on the internal data

maintenance system is required for all business units within

the Bank;

• In compliance with the SEC regulations, executives

in manager position, the next four positions below manager

position and the highest ranking position in the Accounting

and Finance Department are required to report their holdings

of the Bank’s shares on a quarterly basis;

• Directors, executives, staffs, employees and advisors

who have access to the confidential information are prohibited

from seeking any benefit from such information for their own

or other’s interest. This is indicated in Thanachart Group’s

ethics and code of conduct;

• According to the Bank’s notification on securities

trading supervision and abusive internal data control, the

Bank’s directors and executives are prohibited from engaging

in any trading of the TCAP’s shares fifteen days before the

end of each quarter until two days after the disclosure of

the financial statements;

• The use of internal data for the individual interest

is considered as policy misconduct and will be subject to

the penalties according to the judgment of the Disciplinary

Committee.


auditors’ Fee

The Audit Committee considers the appointment of

auditors to propose for the Board of Directors’ approval,

and determines of auditors’ fee to propose to the Board of

Directors and the shareholders for approval during the Annual

General Meeting of Shareholders. According to the 20th

Annual General Meeting of Shareholders held on April 4, 2013,

the shareholders considered and approved the appointment

of Ernst & Young Office Limited as the auditor of the Bank.

The BOT approved the 3 auditors as follows:

1. Miss Ratana Jala

Certified Auditor No. 3734 and/or

2. Miss Phuphun Charoensuk

Certified Auditor No. 4950 and/or

3. Miss Rungnapa Lertsuwankul

Certified Auditor No. 3516

from Ernst & Young Office Limited.

The 2013 auditors’ fee charged by Ernst & Young

Office Limited, the office which audited the accounting of the

Bank and its subsidiaries, for the Bank’s accounting audit

conducted by Miss Ratana Jala, Certified Auditor No. 3734;

details were as follows:

(1) Audit Fee

1.1 Audit Fee of the Bank of THB 10,440,000

1.2 Audit Fee of 14 Subsidiaries of THB

7,420,000

(2) Non-Audit Fee

The Bank and its subsidiaries paid the non-audit

fee for the special audit and the audit of electronic money

transfer system as required by the BOT, the review and

audit of the report on the risk-based capital requirement

as required by the Office of Insurance Commission, the

audit of specific objective(s), and the consultation for the

non-accounting audit matters for the fiscal year 2013 in an

amount of THB 4,700,000.

other Practices in accordance With Good corporate

Governance

In accordance with the good corporate governance

policy of the Bank.

related Transactions

Details of related transactions are shown in the

footnotes to the financial statements No. 42: Transactions

with Related Parties.


inTernal conTrol and riSk manaGemenT

The Bank recognizes the importance of internal control by constantly emphasizing that a good internal control

procedure will enable the bank to conduct business effectively, achieve goals and help prevent damage that may derive

from the operation and exploitation of their executives and employees. In addition to the focus on internal control procedure,

the Bank recognizes that recommendations from external auditors and inspectors from the Bank of Thailand (BOT) will help

the development of the internal control system to be effective. The internal control system is summarized as follows:

1. organization and environment

The Bank determines its organizational structure and authority of staff and executives in a clear written form, dividing

duties of the worker, approver, controller and evaluator apart. In order to prevent conflicts of interests and to balance the

influence of each other as well as to ensure the Bank’s in appropriate business operations and good governance, and to

issue policies, procedures and operation manuals in writing, as well as the appointment of the Audit Committee to consider

the adequacy of internal control system and subcommittees to consider and make decisions on banking matters effectively.

The Board of Directors determines the target of business operations that are measurable and tracking performance

to meet defined goal. In addition, the Bank has provided corporate governance policies and codes of conduct to guide the

directors, executives, employees, including self-evaluation concerning good governance to raise an awareness every year.

Regarding personnel, the Bank organizes staff training to increase employees’ capability and knowledge. Remuneration

and benefits are given at sufficient level in order to attract and retain quality employees. Succession plan is set in order for

the work to progress effectively.

2. risk management

The Board of Directors assigned the Risk Management Committee and the Risk Management Group to consider

and ensure that risk management in various areas is effective and consistent with the purposes of the business operations

by setting written policies and guidelines for risk management and publishes in Intranet for all directors, executives, and

employees adhere to the guidelines. Assessing changes in external factors that may impact business operations,

internal controls, and financial report, as well as setting measures to cope with changes. A report of the Risk Management

Committee and significant issues that may contribute to other risks must be presented to the Audit Committee and the Board

of Directors on a quarterly and monthly basis respectively.

3. The operational control of the management

The Bank has appropriate authority and level of approval by separating duties of worker, the approver, accounting

and information recording officer, and custodian, who act as check and balance protection against fraud. The Bank has

established guidelines to prevent conflicts of interests in good governance policy, which the approval must not be done

by stakeholders. Providing a loan or investment, which is the Bank’s core business in lending to major shareholders or

related parties or invest in businesses that have related interest, specifically by the BOT. Regarding controlling standard of

IT system, IT regulation, IT security standard policy, and as well as IT maintenance policy are set as a standard to control

the performance and safeguard the IT system of the Bank.


4. information and communication System

The Bank provides quality and relevant information

to support the performance of internal control. Necessary

information enables directors to perform their task and

contribute to the sufficient decision making. The Bank

continuously develops the information system of the Bank

and as well as its financial business group to effectively

support the business growth. Communication channel

(Whistle-blower hotline) is provided for people inside and

outside the organization to report information regarding fraud

or corruption through the Bank channel.

5. monitoring and tracking System

The Bank provides the performance monitoring and

reporting process to report on business units’ performance

target to the Board of Directors on a monthly basis and

review goals every six months.

Audit Division reporting directly to the Audit

Committee is responsible for monitoring and reviewing

agencies and processes to evaluate the effectiveness and

efficiency of internal control systems and risk management

system of the banking and financial business of the Bank

as well as to report problems and solutions of each business

sector to the Audit Committee on the monthly basis.

End-to-End monitoring process and integrated audit

enable the auditing process to operate effectively. Moreover,

the Audit Committee has encouraged a continuous of

work improvement. In 2013, the Bank arranged the Quality

Assurance Review of the internal audit for external consulting

firm to evaluate. The result supports that the Bank Internal

Audit is in accordance with International Standards for

the Professional Practice Audit.

The Bank has set up Compliance Department

to monitor the code of conduct and prohibition that

would lead to the conflict of interest; and report to the Audit

Committee, Executive Committee, and Board of Directors

every six months.

The Board of Directors Meeting No. 2/2014 on

February 20, 2014, the Board of Directors agreed that

the Bank’s internal control system is adequate and appropriate

in 5 areas, including organization and environment, risk

management, operational control of the management,

information and communication system, and monitoring

system.

head of internal audit and head of

compliance of the Bank

head of internal audit

The Bank assigned Mrs. Vijitra Thumpothong as Head

of Internal Audit and responsible for Bank internal audit.

As she has been working in internal audit area for commercial

banking for over 10 years, she possesses the knowledge and

professionalism in banking operations. Thus, she is suitable

to perform the task. When considering the appointment,

evaluation, demotion, transfer, and layoff, the Head of Internal

Audit must obtain the approval from the Audit Committee.

head of compliance

The Bank assigned Mr. Sakda Chantrasuriyarat as

Head of Compliance to be in charge of rules and regulations,

which align with the operating business.


rePorT oF The nominaTion

and remuneraTion commiTTee

On March 26, 2002, the Bank’s Board of Directors approved the establishment of the Nomination Committee and

the Remuneration Committee. On March 25, 2009, the Bank’s Board of Directors’ meeting adopted a resolution to combine

the Nomination Committee and the Remuneration Committee together and name the Committee “the Nomination and

Remuneration Committee”, which was responsible for directors and senior management. The Committee consisted of two

independent directors and one non-executive director whose names as of December 31, 2013 were as follows:

1. Mr. Narong Chivangkur Chairman (Independent Director)

2. Mr. Rod Michael Reynolds Member (Non-Executive Director)

3. Mr. Sataporn Jinachitra Member (Independent Director)

Mr. Thaneit Khantikaroon Secretary

In 2013, the Nomination and Remuneration Committee convened seven meetings to process the following matters;

1. To select and nominate appropriate persons to be appointed as directors replacing the directors resigning to

the Bank’s Board of Directors.

2. To review and nominate appropriate persons to be appointed as directors replacing the directors retiring by rotation

for the year 2013 to the Bank’s Board of Directors’ meeting and the Annual General Meeting of the Shareholders.

3. To select and nominate the appropriate persons to be appointed as Executives to the Board of Directors.

4. To provide opportunities for shareholders to propose appropriate persons to be appointed as Bank’s directors in

the 2014 Annual General Meeting of the Shareholders of TBANK.

5. To review and consider the annual remuneration packages for directors and members of sub-committees, taking

into consideration that such remuneration package commensurate with the assigned duties and responsibilities, the Board of

Directors’ and sub-committee performances, and the Bank’s policy and performance. The 2013 remuneration packages were

proposed for approval at the Bank’s Board of Directors’ meeting and the Annual General Meeting of the Shareholders for

the year 2013.

6. To consider the performance evaluation, adjustment of annual salary and bonus of Chief Executive Officer and

President, and Executives.

7. To consider the remuneration of the Chairman of the Executive Committee and Chief Executive Officer and President.

8. To recommend the Thanachart Group’s Executives Succession Plan.

9. To recommend related issues of the salary structure and salary survey results of financial institutions.

(Mr. Narong Chivangkur)

Chairman of the Nomination and Remuneration Committee


SuPerviSion and manaGemenT STrucTure

The Board of directors

The Bank’s Board of Directors is composed of well qualified persons who have expertise, skills and experience in

finance, accounting, management and other professional areas which provide the Bank with great benefits.

The Bank has determined the number of the Board of Directors to be in accordance with the rule of law and the type

and size of business so that the Board of Directors’ performance shall be effective. Moreover, of the total number of the Board

members, not more than a half shall be executive directors and at least one-third shall be directors who are independent of

the management and do not have any vested interest in or any connection with the Bank’s business and in fair proportion

of the investment of each shareholders group.

Name

1. Mr. Banterng Tantivit Chairman - ✓ -

2. Mr. Suphadej Poonpipat Vice Chairman ✓ - -

3. Mr. Kiettisak Meecharoen Director - - ✓

4. Mr. Narong Chivangkur Director - - ✓

5. Mr. Sataporn Jinachitra Director - - ✓

6. Assoc. Prof. Dr. Somjai Phagaphasvivat Director - - ✓

7. Mr. Alberto Jaramillo Director - ✓ -

8. Mr. Rod Michael Reynolds Director - ✓ -

9. Mr. Kobsak Duangdee Director - ✓ -

10. Ms. Suvarnapha Suvarnaprathip Director ✓ - -

11. Mr. Brendan George John King Director ✓ - -

12. Mr. Somjate Moosirilert Director ✓ - -

Directors resigned in 2013

1. Mr. Claude David Morin Director - ✓ -

details of the Bank’s Board of directors structure as of december 31, 2013 were as follows:

PositionIndependent

DirectorExecutive Director

Non-Executive

Director

Notes: 1) Mr. Claude David Morin resigned from his directorship on January 15, 2013.

2) Mr. Rod Michael Reynolds has assumed his directorship since January 15, 2013.

3) The Bank’s directors who are authorized signatories include Mr. Suphadej Poonpipat, Ms. Suvarnapha Suvarnaprathip,

Mr. Brendan George John King, and Mr. Somjate Moosirilert. Any two out of the four authorized signatories can jointly

sign with the Bank’s seal affixed.


Board of Directors Meetings

The Bank determines frequency and agenda of Board

and Committee Meetings in each year in advance and notifies

each director of the schedule so that he/she can arrange

time for the meeting, as follow:

1. The Board of Directors meeting is held

approximately once a month.

2. The Executive Committee meeting is held at least

once a month.

3. The Audit Committee meeting is held at least once

every quarter.

4. The Nomination and Remuneration Committee

meeting is held at least twice a year.

5. For all other committees, the decision on their

meeting frequency rests with the Chairman of each committee.

TBANK’s Board of Directors convenes its meeting

regularly in the last week of each month. It may also hold

additional meetings as deemed appropriate. The meeting

agenda will be clearly determined in advance including the

regular agenda such as business performance monitoring,

approval of business transactions, and risk management.

The Secretary of the Board of Directors is responsible for

sending meeting invitations to all members of the Board

along with the agenda as well as supporting documents

in advance so that the Board has sufficient time to review

them before attending the meetings. In 2013, the Board of

Directors convened twelve general meetings.

In the Board of Directors’ meeting, every director is

encouraged to express their opinions and to adopt resolutions

independently. The Chairman of the Board of Directors shall

provide opportunities to all directors to express their opinions

before requesting the adoption of resolutions. The notices

and opinions of the directors at meetings are documented.

The minutes of the meetings are approved by the Board of

Directors and are available to be examined by the Board

and related parties.


List of TBANK’s Directors

1. Mr. Banterng Tantivit 11 - - - -

2. Mr. Suphadej Poonpipat 12 65 - - -

3. Mr. Kiettisak Meecharoen 12 - 11 - -

4. Mr. Narong Chivangkur 12 - - 7 -

5. Mr. Sataporn Jinachitra 12 - 10 7 -

6. Assoc. Prof. Dr.Somjai Phagaphasvivat 12 - 10 - -

7. Mr. Alberto Jaramillo 10 - - - -

8. Mr. Rod Michael Reynolds2) 9 - - 5 -

9. Mr. Kobsak Duangdee3) 12 2 - - -

10. Ms. Suvarnapha Suvarnaprathip 11 60 - - -

11. Mr. Brendan George John King 11 58 - - 8

12. Mr. Somjate Moosirilert 11 62 - - 10


1. Mr. Claude David Morin1) - - - - -

Board of

Directors

(12 Meetings)

Executive

Committee

(67 Meetings)

Audit

Committee

(11 Meetings)

Nomination and

Remuneration Committee

(7 Meetings)

Risk Management

Committee

(11 Meetings)

Notes: 1)

Mr. Claude David Morin resigned from his directorship on January 15, 2013.

2)

Mr. Rod Michael Reynolds has assumed his directorship since January 15, 2013.

3)

Mr. Kobsak Duangdee resigned from Member of the Executive Committee on February 1, 2013.

Table of directors’ attendance at meetings held in 2013


executives

As of December 31, 2013, there were executives in the manager’s position and the first four executives subsequent

to the manager, according to the Securities and Exchange Commission (SEC) and Section 4 and Section 25 of Financial

Institution Business Act B.E. 2551 guidelines as follows:

1. Mr. Suphadej Poonpipat Chairman of the Executive Committee

2. Ms. Suvarnapha Suvarnaprathip Vice Chairperson of the Executive Committee

3. Mr. Somjate Moosirilert Chief Executive Officer and President

4. Mr. Brendan George John King Deputy Chief Executive Officer

5. Mrs. Noossara Roonsamrarn Executive Vice President – Corporate Banking Team 1

6. Mr. Piyaphong Artmangkorn Executive Vice President – Investment Management

7. Mr. Anuwat Luengtaweekul Executive Vice President – Chief Financial Officer

8. Mr. Ajay Pratap Mundkur Executive Vice President – Retail Banking

9. Mr. Enghug Nontikarn Executive Vice President – Treasury & Debt Capital Markets

10. Mr. Amorn Kittinartintranee Executive Vice President – Business Support

11. Mr. Praphan Anupongongarch Executive Vice President – Secured Lending and Deposits

12. Mr. Sanong Kumnuch Executive Vice President – Retail Sales

13. Mrs. Sasima Taweeskulchai Executive Vice President – Credit Risk Management 1

14. Mr. Kalyanaraman Sivaramakrishnan Executive Vice President – Retail Risk Management &

Business Infrastructure

15. Mrs. Kjitphan Chunharit Executive Vice President – Information Technology

16. Mr. Ricky Jon Yakabowich Executive Vice President – Shared Services

17. Ms. Angkana Swasdipoon Executive Vice President – Office of Executive Committee Chairman and

CEO

18. Ms. Abhiradee Sukhajoti Executive Vice President – Human Resources

19. Ms. Kanoksri Rojmeta Executive Vice President – Sales & Branch Network Team 3

20. Mr. Chaiyanandh Lapitananuvat Executive Vice President – SME Province Team 3

21. Mr. Cherd Suppana Executive Vice President – Appraisal


22. Mr. Wutthichai Suraratchai Executive Vice President – Credit Risk Management 2

23. Mrs. Vijitra Thumpothong Executive Vice President – Chief Audit

24. Mr. Kriangkrai Phurivitvattana Executive Vice President – Banking Operations

25. Mr. Wichak Praditavanij Executive Vice President – Strategy & Retail Customer

26. Mr. Vivek Chandra Executive Vice President – Business Transformation

27. Mr. Ziad El-Hoss Executive Vice President – Chief Risk Officer

28. Mr. Sutut Chitmongkongsuk Executive Vice President – SME Banking

29. Ms. Wisarnsri Nilodom Executive Vice President – Corporate Banking Team 2

30. Mr. Chatchai Kaivalkul Senior Vice President – Processing Support Centre

31. Mr. Songwut Chaowalit Senior Vice President – Sales & Branch Network Team 1

32. Mr. Chatchawal Jantararuangtong Senior Vice President – General Audit

33. Mr. Lalit Dodampe Gamage Dharmaseri Senior Vice President – Treasury

34. Mr. Noel Singh Senior Vice President – Corporate & SME Products

35. Mr. Watchara Permphithak Senior Vice President – Asset Development

36. Mr. Albert John Dimauro Senior Vice President – Customer Contact Centre

37. Mrs. Phenchan Weerawuth Senior Vice President – Accounting

38. Mrs. Teranuj Koomsap Senior Vice President – Finance

Notes: 1. Executive number 3 - 9 and 37 - 38 as executive managers and the first four of the criteria of the SEC.

2. Executive number 1 - 36 is an authority to deal under Section 4 and Section 25 of the Financial Institution Business Act B.E. 2551.

3. The changes during 2013 follow:

3.1 Mr. Kobsak Duangdee resigned from Executive Vice President – FI & Correspondent Banking on February 1, 2013.

3.2 Mrs. Angelina Dick retired from Executive Vice President – Chief Risk Officer on March 1, 2013.

3.3 Mr. Vivek Chandra has been appointed as Executive Vice President – Business Transformation since April 26, 2013.

3.4 Mr. Ziad El-Hoss has been appointed as Executive Vice President – Chief Risk Officer since May 9, 2013.

3.5 Mr. Albert John Dimauro has been appointed as Senior Vice President – Customer Contract Center since August 22, 2013.

3.6 Mr. Pornchai Padmindra resigned from Executive Vice President – Corporate Banking Team 2 on September 1, 2013.

3.7 Mr. Jiratchyuth Amyongka resigned from Executive Vice President – SME Banking on September 27, 2013.

3.8 Mr. Sutut Chitmonkongsuk has been appointed as Executive Vice President – SME Banking since October 18, 2013.

3.9 Ms. Wisarnsri Nilodom has been appointed as Executive Vice President – Corporate Banking Team 2 since October 18, 2013.

On January 1, 2014, the Bank had a change of manager and executive position according to the criteria of the SEC,

including the authority to deal under Section 4 and Section 25 of the Financial Institution Business Act B.E. 2551 as follows:

1. Mr. Amorn Kittinartintranee retired from Executive Vice President – Business Support.

2. Mr. Chaiyanandh Lapitananuvat retired from Executive Vice President – SME Province Team 3.

3. Mr. Cherd Suppana retired from Executive Vice President – Appraisal.

4. Mrs. Phenchan Weerawuth retired from Senior Vice President – Accounting.

5. Mrs. Pittimart Sanguansook has been appointed as Senior Vice President – Accounting


management structure of the Bank as at december 31, 2013

chief executive officer

and President

deputy chief executive

officer

audit committee

nomination and remuneration

committee

risk management committee

investment Portfolio committee

asset and liability

management committee

credit committee

executive vice President,

chief risk officer


retail Banking


retail Sales

Senior vice President,

asset development


communication &

Brand management


investment management


Business Support


human resources

First vice President,

compensation &

Payroll management


corporate Banking

Team 1


corporate Banking

Team 2


Sme Banking


corporate & Sme

Products


Treasury & debt capital

markets


Share Services


information Technology


investment Banking


chief Financial officer


accounting


Finance


Business Transformation


office of

executive committee

chairman and ceo


chief audit

First vice President,

compliance

executive committee

Board of directors

Remark: - means executives according to SEC’s definition.

1

2

3 4 5 6 7

8

9

1 9


company Secretary

The Bank’s Board of Directors does not appoint a company secretary. In accordance with the principles of good

corporate governance, the Board of Directors has assigned Office of Executive Committee Chairman and CEO to perform as

a company secretary in order to ensure the Bank’s good corporate governance and effective business management.

The remuneration of directors and executives

(1) Financial remuneration

(a) Remuneration of the Board of Directors each year

As of December 31, 2013, TBANK has remunerated three committees, i.e. the Board of Directors, the Audit

Committee, and the Nomination and Remuneration Committee totaling THB 28,941,520.61. The remuneration has been paid

in forms of meeting stipends, position allowance and performance-based allowance (from the Bank’s performance in 2012)

which can be summarized as follows:

list of directors

1. Mr. Banterng Tantivit 1,069,025.00 528,400.00 2,533,736.63 4,131,161.63

2. Mr. Suphadej Poonpipat 534,512.50 289,200.00 1,266,868.29 2,090,580.79

3. Mr. Kiettisak Meecharoen 534,512.50 289,200.00 1,266,868.29 2,090,580.79

4. Mr. Narong Chivangkur 534,512.50 289,200.00 1,266,868.29 2,090,580.79

5. Mr. Sataporn Jinachitra 534,512.50 289,200.00 1,266,868.29 2,090,580.79

6. Assoc. Prof. Dr. Somjai Phagaphasvivat 534,512.50 289,200.00 1,266,868.29 2,090,580.79

7. Mr. Alberto Jaramillo 534,512.50 239,200.00 1,266,868.29 2,040,580.79

8. Mr. Rod Michael Reynolds 521,472.18 217,800.00 0.00 739,272.18

9. Mr. Kobsak Duangdee 534,512.50 289,200.00 1,266,868.29 2,090,580.79

10. Ms. Suvarnapha Suvarnaprathip 534,512.50 264,200.00 1,266,868.29 2,065,580.79

11. Mr. Brendan George John King 534,512.50 264,200.00 1,266,868.29 2,065,580.79

12. Mr. Somjate Moosirilert 534,512.50 264,200.00 1,266,868.29 2,065,580.79


1. Mrs. Michele Chiu Kwok 0.00 0.00 512,285.54 512,285.54

2. Mr. Claude David Morin 13,040.32 0.00 605,743.04 618,783.36

Total 6,948,662.50 3,513,200.00 16,320,448.11 26,782,310.61

Table of the remuneration of the Board of directors

monthly

compensationTotal

meeting

stipends

Type of remuneration (Baht per year)

Performance

allowance

Notes: 1) Mrs. Michele Chiu Kwok resigned from her directorship on May 28, 2012.

2) Mr. Claude David Morin resigned from his directorship on January 15, 2013.



list of directors

1. Mr. Kiettisak Meecharoen 457,230.00 322,500.00 779,730.00

2. Mr. Sataporn Jinachitra 295,365.00 146,250.00 441,615.00

3. Assoc. Prof. Dr. Somjai Phagaphasvivat 295,365.00 147,500.00 442,865.00

Total 1,047,960.00 616,250.00 1,664,210.00

Table of the remuneration of the audit committee

Table of the remuneration of the nomination and remuneration committee

monthly compensation meeting stipends Total


Notes: 1) Mr. Claude David Morin resigned from his directorship on January 15, 2013.


list of directors

meeting stipends

1. Mr. Narong Chivangkur 235,000.00

2. Mr. Sataporn Jinachitra 145,000.00

3. Mr. Rod Michael Reynolds 115,000.00

4. Mr. Claude David Morin 0.00

Total 495,000.00


The remuneration of the Independent Director of the Subsidiaries

Mr. Kiettisak Meecharoen, Independent Director of the Bank, has received compensation for services

as directors of TLIFE between January to April 2013, totaling THB 100,000.


(b) The amount of the total compensation of Executive Committee and Executive of the Bank in the past year

and type of compensation

In 2013, the Bank’s paid compensation includes compensation in the form of salary, allowances, provident

fund, etc. to managers and executives according to the SEC and Section 4 and Section 25 of Financial Institution Business

Act B.E. 2551, regarding “Executives”, totaling forty persons, amounting to THB 240,549,258.

(2) other remuneration (if any)

Other remuneration of Directors

The Bank has no other compensation paid to the directors.

Remuneration of Executive Committee and Executives of the Bank

The Bank provides the provident fund to Executive, with the rate of 3 or 5 or 7 or 10 of the salary, depending on

the working period of each executive. In total, the Bank has paid THB 8,086,686.


Board oF direcTorS and manaGemenT Team

mr. Banterng Tantivit

chairman

(non-executive director)

Date of Appointment 22 April 2002

Age 69 years

Education(s) • Master of Science (Finance) in Management,

Massachusetts Institute of Technology, U.S.A.

• Bachelor of Science in Electrical Engineering,


Training Program Related to Roles, Thai Institute of Directors Association

Duties, and Skills of Directorship • Director Accreditation Program (DAP), Class 25/2004

Percentage of Shareholding in TBANK None

Family Relationship with Director None

and Management

Experience(s) in the Past 5 Years

2012 - Present • Chairman, Thanachart Insurance Public Company Limited

2006 - Present • Director, Siam Piwat Holding Company Limited

• Chairman and Chairman of the Executive Committee,

MBK Public 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

1987 - Present • Director, Deebuk Company Limited

• Director, Thai Farming Company Limited

2006 - 2012 • Vice Chairman, Thanachart Insurance Public Company Limited

2005 - 2012 • Chairman, Thanachart Life Assurance Public Company Limited

2010 - 2011 • Chairman, Siam City Bank Public Company Limited

2006 - 2010 • Director, Arsom Silp Institution of the Arts Council


mr. Suphadej Poonpipat

vice chairman and chairman of the executive committee

(executive director)

Date of Appointment 1 September 2005

Age 63 years

Education(s) • Master of Science (Finance) in Management,


• Bachelor of Science in Electrical Engineering,



Duties, and Skills of Directorship • Role of the Chairman Program (RCP), Class 28/2012

• Role of the Compensation Committee (RCC), Class 15/2012

• Financial Institutions Governance Program (FGP), Class 4/2012

• Director Accreditation Program (DAP), Class 8/2004

Capital Market Academy, The Stock Exchange of Thailand

• Leadership Program, Class 8/2009



and Management


2011 - Present • Vice Chairman and Chairman of the Executive Committee,

Patum Rice Mill and Granary Public Company Limited

• Director, DMS Property Investment Private Limited

2010 - Present • Chief Executive Officer, Thanachart Capital Public Company Limited

2007 - Present • Vice Chairman and Chairman of the Executive Committee,

Thanachart Capital Public Company Limited

• 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,


• Director, MBK Resort Public Company Limited

2003 - Present • Director, Plan Estate Company Limited

• Director, Siam Piwat Company Limited

• Vice Chairman and Vice Chairman of the Executive Committee,

MBK Public Company Limited

2003 - 2013 • Director and Chairman of the Executive Committee,


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

2006 - 2009 • Chief Executive Officer, Thanachart Capital Public Company Limited


mr. kiettisak meecharoen

chairman of the audit committee

(independent director)


Age 67 years

Education(s) • Master of Arts in Theoretical Economics, Keio University, Tokyo, Japan

• Bachelor of Science in Finance, Hitotsubashi University,

Kunitachi, Tokyo, Japan



• Audit Committee Program (ACP), Class 10/2005

World Bank

• Futures Exchange (1995)

Merrill Lynch, New York

• Portfolio Investment (1994)

JP Morgan, New York

• Reserve Management (1993)

Harvard Institute for International Development, Harvard University

• Banking and Monetary Policy in Developing Countries (1988)



and Management


2005 - Present • Independent Director, Tararom Enterprise Public Company Limited

2000 - Present • Independent Director and Chairman of the Audit Committee,

Safety Insurance Public Company Limited

2000 - 2013 • Independent Director, Thanachart Life Assurance Public Company Limited

2010 - 2011 • Independent Director and Chairman of the Audit Committee,

Siam City Bank Public Company Limited


mr. narong chivangkur

chairman of the nomination and remuneration committee



Age 69 years

Education(s) • Higher Diploma in Business and Marketing, Assumption Commercial College


Duties, and Skills of Directorship • Anti-Corruption Executive Program (ACEP), Class 3/2011

• Role of the Nominations and Governance Committee (RNG), Class 1/2011


• Audit Committee Program (ACP), Class 32/2010

• Financial Statement for Directors (FSD), Class 4/2009

• Successful Formulation & Execution the Strategy (SFE), Class 2/2008


• Chartered Director Class (CDC), Class 1/2007

• Corporate Social Responsibility (CSR), Class 1/2007

• Director Certification Program (DCP), Class 34/2003

• Director Examination, Class 11/2003

Asian Institute of Management, Philippines

• Management Development Program

Rochester Institute of Technology, U.S.A.

• Financial Management Program



and Management


2005 - Present • Director, The Antique Boat Hotel Company Limited

(the former name was Momchailai Development Company Limited)

2003 - Present • Director, Momentum IM Company Limited

2000 - Present • Director, Momentum BBS Company Limited

2010 - 2011 • Independent Director and Chairman of the Nomination and

Remuneration Committee, Siam City Bank Public Company Limited

2004 - 2011 • Director, Momentum Sale and Distribution Company Limited


mr. Sataporn Jinachitra

member of the audit committee and member of the nomination and remuneration committee


Date of Appointment 19 July 2007

Age 65 years

Education(s) • Master of Science in Econometrics, The London School of Economics and

Political Science (University of London), England

• Bachelor of Science in Economics (Upper Second Class Honours),

University College London, England

• Bachelor of Arts (Law), Sukhothai Thammathirat Open University


Duties, and Skills of Directorship • Anti-Corruption Executive Program (ACEP), Class 4/2012

• The Executive Director Course (EDC), Class 1/2012

• Role of the Chairman Program (RCP), Class 24/2010


• Successful Formulation & Execution of Strategy (SFE), Class 4/2009

• Corporate Social Responsibility (CSR), Class 1/2007

• DCP Refresher Course, Class 2/2006




and Management


2010 - 2011 • Independent Director, Member of the Audit Committee and

Member of the Nomination and Remuneration Committee,


2006 - 2011 • Dispute Resolution Committee, Interconnection Institution, NTC

1999 - 2011 • Director, Thai Institute of Directors Association

2002 - 2006 • President, Export-Import Bank of Thailand


assoc. Prof. dr. Somjai Phagaphasvivat

member of the audit committee


Date of Appointment 26 March 2009

Age 67 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 Politica y Economica,

Universidad Complutense de Madrid, Spain

• Bachelor of Arts, Chulalongkorn University





and Management


2013 - Present • Director and Chairman, SEAFCO Public Company Limited

• Independent Director and Chairman of the Audit Committee,

Amarin Printing and Publishing Public Company Limited

1997 - Present • Independent Director and Chairman of the Audit Committee,

Lee Feed Mill Public Company Limited

• Director and Chairman of the Audit Committee,

Krungthep Thanakom Company Limited

• Director Chairman of the Audit Committee,

Thai Hua Rubber Public Company Limited

2006 - 2013 • Independent Director and Chairman of the Audit Committee,

SEAFCO Public Company Limited

1993 - 2013 • 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,



mr. alberto Jaramillo

director



Age 42 years

Education(s) • Master of Business Administration,

Universite de Montreal Ecole des Hautes Etudes Commerciales, Canada

• Diploma of Business Administrator,

Instituto Colombiano de Estudios Superiores de Incolda, Colombia

Training Program Related to Roles, CFA Institute

Duties, and Skills of Directorship • Chartered Financial Analyst (CFA)



and Management


2013 - Present • Manager, CGA Arkad Investment Public Company Limited

2011 - Present • Director, The Bank of Nova Scotia Asia Limited, Singapore

• Director, Scotiabank (Hong Kong) Limited, Hong Kong

• Vice President & Regional Treasurer, The Bank of Nova Scotia, Hong Kong

2011 • Director, Siam City Bank Public Company Limited

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


mr. rod michael reynolds

director and member of the nomination and remuneration committee


Date of Appointment 15 January 2013

Age 56 years

Education(s) • Master of Business Administration, York University, Toronto, Canada

• Bachelor of Science in Engineering, Queen’s University, Ontario, Canada

Training Program Related to Roles, Euromoney Training

Duties, and Skills of Directorship • Euromoney Asia Corporate Governance Program (2012)



and Management


2012 - Present • Director, C.H. Bailey Public Company Limited

2009 - Present • Director, Logarithmics Company Limited

1983 - Present • President, Asia Pacific, The Bank of Nova Scotia

2009 - 2013 • Director, Tulsa Inspection Resources


mr. kobsak duangdee

director



Age 57 years

Education(s) • Master of Business Administration (Finance),

University of Tennessee, Knoxville, U.S.A.

• Bachelor of Commerce and Accountancy, Chulalongkorn University


Duties, and Skills of Directorship • Chartered Director Class (CDC), Class 7/2013

• Successful Formulation & Execution of Strategy (SFE), Class 19/2013






and Management


2011 - Present • Liquidator, SCIB Public Company Limited

2012 - 2013 • Member of the Audit Committee,


2008 - 2013 • Director and Member of the Executive Committee,


• Vice President and Country Head, The Bank of Nova Scotia,

Bangkok Representative Office



• 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


ms. Suvarnapha Suvarnaprathip

vice chairperson of the executive committee



Age 68 years

Education(s) • Bachelor of Economics, Monash University, Australia



Banker Trust, New York, U.S.A.

• Certificate, Executive Commercial Lending Training Program



and Management


2005 - Present • Director and Chairperson of the Executive Committee,


1991 - Present • Director, Seacon Development Public Company Limited



2010 - 2011 • Director and Vice Chairperson of the Executive Committee,



mr. Brendan George John king

vice chairman of the executive committee and deputy chief executive officer


Date of Appointment 19 July 2007

Age 50 years

Education(s) • Master of Business Administration in Finance & International Business,

York University, Toronto, Canada

• Bachelor of Arts in Business & Economics, York University, Toronto, Canada

Training Program Related to Roles, • Marketing Certificate, Queen’s University Executive Management Program

Duties, and Skills of Directorship • 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



and Management


2013 - Present • Director, Thanachart Securities Public Company Limited

• Director, Thanachart Insurance Public Company Limited

2012 - Present • Director, The Bank of Nova Scotia Asia Limited, Singapore

2012 - 2013 • Director, Thanachart Life Assurance Public Company Limited

2011 - 2013 • Director, Scotia Netherlands Holding B.V.

2010 - 2011 • Director and Vice Chairman of the Executive Committee,


2004 - 2011 • Director, Scotiabank (Hong Kong) Limited, Hong Kong

• Director, Scotia Nominees (Hong Kong) Limited, Hong Kong

2006 - 2010 • Vice President, Corporate Development Asia/Pacific,

the Bank of Nova Scotia, Hong Kong

2004 - 2010 • Vice President, Greater China, the Bank of Nova Scotia, Hong Kong


mr. Somjate moosirilert

member of the executive committee and chief executive officer and President


Date of Appointment 29 October 2009

Age 57 years

Education(s) • Master of Management, Sasin Graduate Institute of Business Administration of

Chulalongkorn University

• Bachelor of Business Administration, Thammasat University

Training Program Related to Roles, Thai Institution of Directors Association

Duties, and Skills of Directorship • Certificate, Role of the Chairman Program (RCP), Class 5/2001

Thai Listed Companies Association, The Stock Exchange of Thailand

• Certificate, TLCA Leadership Development Program (LDP)/2012


• Certificate, Leadership Program, Class 5/2007

Judicial Training Institute

• Certificate in the program for Senior Executives on Justice Administration,

Class 9/2005



and Management


2013 - Present • Chairman of the Executive Committee,


• Chairman, Thanachart Fund Management Company Limited

2011 - Present • Executive Director, The Thai Bankers’ Association

• Director and Vice Chairman, Thai Listed Companies Association

• Chairman, TS Asset Management Company Limited

• Chairman of the Executive Committee,


2010 - Present • Chairman and Chairman of the Executive Committee,

Siam City Life Assurance Public Company Limited

• Director and Member of the Executive Committee,


• Director, Thanachart Fund Management 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,


2011 - 2012 • Governor, The Stock Exchange of Thailand

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

2009 - 2011 • Vice Chairman, The Stock Exchange of Thailand

• Director, Thai Capital Market Development Committee

2010 • Director, Thanachart Life Assurance Company Limited

2009 - 2010 • 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,


2002 - 2008 • President, Thai Asset Management Corporation


mrs. noossara roonsamrarn

executive vice President, corporate Banking Team 1


Age 55 years

Education(s) • Master of Business Administration,

National Institute of Development Administration

• Bachelor of Political Science, Chulalongkorn University

Training Program Harvard Business School

• Certificate in Advanced Management Program (AMP 168)

Thailand National Defence College

• The Joint-State-Private Sectors Course (NDC22)


• Leadership Program, Class 7 (CMA 7)

Thai Institute of Directors Association

• DCP Refresher Course, Class 4/2007




and Management


1997 - Present • Director and Member of the Audit Committee,


2005 - 2008 • Director and Member of the Audit Committee,



mr. Piyaphong artmangkorn

executive vice President, investment management


Age 56 years

Education(s) • Master of Public Administration (Taxation),

University of Southern California, U.S.A.

• Bachelor of Economics, Thammasat University

Training Program Thai Institute of Directors Association




and Management


2006 - Present • Executive Committee, MBK Public Company Limited

1998 - Present • Director, MBK Public Company Limited


2005 - 2009 • Chairman and Chairman of the Executive Committee,


2001 - 2008 • Director, Thai Royal Orchid Real Estate Company Limited

2000 - 2008 • Director, Royal Orchid Hotel (Thailand) Public Company Limited


mr. anuwat luengtaweekul

executive vice President, chief Financial officer

Date of Appointment 1 June 2009

Age 50 years

Education(s) • Master of Business Administration, Rangsit University

• Bachelor of Science (Accounting), Kasetsart University


• Successful Formulation & Execution the Strategy (SFE), Class 3/2009


• Board and Performance Evaluation Program

Association of Finance Companies

• Financers’ Executive Development Program, Class 9/1994



and Management


2012 - Present • Member of the Nomination and Remuneration Committee,

Ratchthani Leasing Public Company Limited

2010 - Present • Director, Ratchthani Leasing Public Company Limited


2007 - 2009 • Director, Member of the Executive Committee and Executive Vice President,



mr. ajay Pratap mundkur

executive vice President, retail Banking


Age 49 years

Education(s) • Master of Business Administration, John M. Olin School of Business,

Washington University, St. Louis, U.S.A.

• Post Graduate Diploma in Financial Management,

Symbiosis Institute of Business Management, Pune, India

• Bachelor of Commerce (Accounting and Auditing),

University of Pune, India

Training Program None



and Management


2012 - Present • Senior Vice President, International Banking, The Bank of Nova Scotia

2005 - 2012 • Vice President, Retail Banking, Asia-Pacific Region,

The Bank of Nova Scotia


mr. enghug nontikarn

executive vice President, Treasury and debt capital markets

mrs. Phenchan Weerawuth

Senior vice President, accounting


Age 57 years

Education(s) • Master of Business Administration, Thammasat University

• Bachelor of Economics, Thammasat University





and Management


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

Date of Appointment 1 October 2012

Age 60 years

Education(s) • Master of Accounting, Thammasat University

• Bachelor of Accounting, Thammasat University

Training Program None



and Management


2005 - 2011 • First Vice President, Accounting, Siam City Bank Public Company Limited

Note: Mrs. Phenchan Weerawuth retired from Senior Vice President, Accounting on January 1, 2014.


mrs. Pittimart Sanguansook

Senior vice President, accounting

mrs. Teranuj koomsap

Senior vice President, Finance

Date of Appointment 1 January 2014

Age 49 years

Education(s) • Bachelor of Accounting, Thammasat University

• High Diploma in Auditing, Thammasat University

Training Program Seminar IFRS, Toronto, Canada



and Management


2008 - 2013 • Vice President, Citibank

Note: Mrs. Pittimart Sanguansook has been appointed as Senior Vice President, Accounting since January 1, 2014.

Date of Appointment 14 November 2012

Age 40 years

Education(s) • Master of Business Administration, Smeal College of Business,

Pennsylvania State University, University Park, U.S.A.

• Bachelor of Science (Accounting), Thammasat University

Training Program Thai Institution of Directors Association




and Management


2010 - 2012 • Senior Vice President, Siam Commercial Bank Public Company Limited

2003 - 2010 • Vice President, Consumer Finance Business, Citi Thailand

254 annual rePorT 2013 255ThanacharT Bank PuBlic comPany limiTed

The in

form

ation of th

e executives and auth

oriz

ed persons’ positio

n in

subsid

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ted and rela

ted com

panie

s

As of Decem

ber 31, 2013

nam

e

TBank

Note

XXX = Chairm

an

XX = Vice Chairm

an

X = Directo

r /// = Chairm

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e Executive Com

mitte

e

// = Vice Chairm

an/C

hairpers

on of th

e Executive Com

mitte

e

/ = M

em

ber of th

e Executive Com

mitte

e

A = Chief Exeutive Officer

B = Chief Executive Officer and Pre

sid

ent

C = Deputy

Chief Executive Officer

D = Senior Executive Vice Pre

sid

ent

E = Executive Vice Pre

sid

ent

F = Auth

orized Pers

on M

anangem

ent Power

G = Senior Vice Pre

sid

ent

H = Liq

uid

ato

r

Mr. Bante

rng

Tantivit

XXX

Mr. Suphadej

Poonpip

at

XX ///

Mr. Kiettisak

Meecharo

en

X

Mr. Naro

ng

Chivangkur

X

Mr. Sata

porn

Jinachitra

X

Assoc. Pro

f. Dr. Som

jai Phagaphasvivat

X

Mr. Alb

erto

Jara

millo

X

Mr. Rod

Michael Reynold

s

X

Mr. Kobsak

Duangdee

X

Ms. Suvarn

apha Suvarn

apra

thip

X //

Mr. Bre

ndan

Georg

e John King

X // c

Mr. Som

jate

Moosirilert

X / B

Mrs

. Noossara

Roonsam

rarn

e

Mr. Piyaphong

Artm

angkorn

e

Mr. Anuwat

Luengta

weekul

e

Mr. Ajay

Pra

tap M

undkur

e

Mr. Enghug

Nontikarn

e

Mrs

. Phenchan

Weera

wuth

G

Mrs

. Pittim

art

Sanguansook

G

Mrs

. Tera

nuj

Koom

sap

G

Subsid

iary c

om

panie

sassociate

d

com

pany

Pare

nt

com

pany

rela

ted c

om

panie

s

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

36

37

38

39

40

41

42

X

XXX

X

X

XXX

X

X

X

X

X

X

XX ///

X

X

X

X

X

X

X

X

XXX

X

X

X

X

X

X

F

F

X

X

X

h

X

X

F

X

1

2

3

4

5

6

7

8

9

10

XXX

XXX

XXX ///

XX /// a

X ///

XX //

X //

X /

X

X

X / d

XXX ///

XXX ///

X /

XXX ///

XXX

X

X /

X

254 annual rePorT 2013 255ThanacharT Bank PuBlic comPany limiTed

list of Parent company, Subsidiary, associated and related companies

Parent company

1. Thanachart Capital Public Company Limited


2. Thanachart Securities Public Company Limited 6. TS Assets Management Company Limited

3. Thanachart Fund Management Company Limited 7. Rachthani Leasing Public Company Limited

4. Thanachart Insurance Public Company Limited 8. Thanachart Management and Service Company Limited

5. Siam City Life Assurance Public Company Limited 9. Thanachart Training and Development Company Limited

associated companies

10. MBK Public Company Limited

related companies

11. Siam Piwat Holding Company Limited 26. Momentum BBS Company Limited

12. MBK Resort Public Company Limited 27. SEAFCO Public Company Limited

13. Siam Piwat Company Limited 28. Lee Feed Mill Public Company Limited

14. B.V. Holding Company Limited 29. Krungthep Thanakom Company Limited

15. Plan Estate Company Limited 30. Thai Hua Rubber Public Company Limited

16. Deebuk Company Limited 31. Amarin Printing & Publishing Public Company Limited

17. Thai Farming Company Limited 32. The Bank of Nova Scotia Asia Limited, Singapore

18. Patum Rice Mill and Granary Public Company Limited 33. Scotiabank (Hong Kong) Limited, Hong Kong

19. DMS Property Investment Private Limited 34. The Bank of Nova Scotia, Hong Kong

20. Royal Orchid Hotel (Thailand) Public Company Limited 35. CGA Arkad Investments Public Company Limited

21. Thai Royal Orchid Real Estate Company Limited 36. Asia Pacific, The Bank of Nova Scotia

22. Tararom Enterprise Public Company Limited 37. C.H. Bailey Public Company Limited

23. Safety Insurance Public Company Limited 38. Logarithmics Company Limited

24. The Antique Boat Hotel Company Limited 39. Seacon Development Public Company Limited

(The former name was Mom Chailai 40. SCIB Public Company Limited

Development Company Limited) 41. The Bank of Nova Scotia

25. Momentum IM Company Limited 42. Srithai Superware Public Company Limited


1. Thanachart Securities PCL. Securities Ordinary 1,500,000,000 1,499,999,930 100.00

444 MBK Tower, 14th, 18

th and 19

th Floor, Share

Phayathai Road, Wangmai, Pathumwan,

Bangkok 10330

Tel. +66 (0) 2217-8888, 2217-9595

Fax +66 (0) 2217-9642

2. Thanachart Insurance PCL. Non-life Ordinary 74,000,000 73,999,434 100.00

999/1 the Nine Tower, Insurance share

Rama 9 Road, Suanluang,

Bangkok 10250

Tel. +66 (0) 2308-9300

Fax +66 (0) 2308-9333

3. Thanachart Management and Services Co., Ltd. Services Ordinary 600,000 599,993 100.00

2 Suan Mali Building, 2nd

Floor, share

Chalerm Khet 4 Road, Wat Thep Sirin,

Pom Prap Sattru Phai, Bangkok 10110

Tel. +66 (0) 2220-2222

Fax +66 (0) 2220-2520

4. Thanachart Training and Development Co., Ltd. Training Ordinary 500,000 499,993 100.00

2 Suan Mali Building, M Floor, share

Chalerm Khet 4 Road, Wat Thep Sirin,

Pom Prap Sattru Phai, Bangkok 10110

Tel. +66 (0) 2220-2222

Fax +66 (0) 2220-2300

5. Thanachart Group Leasing Co., Ltd. Leasing Ordinary 36,000,000 35,999,994 100.00

444 MBK Tower, 9th Floor, share


Bangkok 10330

Tel. +66 (0) 2217-8000, 2613-6000

Fax +66 (0) 2217-8098

6. National Leasing Co., Ltd.2 Leasing Ordinary 600,000 599,994 100.00

444 MBK Tower, 9th Floor, share


Bangkok 10330

Tel. +66 (0) 2217-8000

investment of TBank in other companies

Juristic persons in which the Bank holds 10 percent or above of the total issued shares.

General inFormaTion

no. company/location

Type of

Business

Type of

shares

Total number

of share held

Total number of

paid-up shares

Percent of

TBank’s

shareholding1


7. Siam City Life Assurance PCL. Life Ordinary 70,000,000 69,999,994 100.00

231 Thanachart Park Place, 10th Floor, assurance Share

Rachadamri Road, Lumpini, Pathumwan,

Bangkok 10330

Tel. +66 (0) 2252-5070

Fax +66 (0) 2252-7155

8. SCIB Services Co., Ltd. Services Ordinary 100,000 99,998 100.00

1091/230 New Petchburi Road, Share

Makkasan, Ratchathewi,

Bangkok 10400

Tel. +66 (0) 2208-5061-2

Fax +66 (0) 2651-6611

9. TS Asset Management Co., Ltd. Non- Ordinary 200,000,000 199,999,997 100.00

1101 Petchburi Building, 9th Floor, performing Share

New Petchburi Road, Makkasan, asset

Ratchathewi, Bangkok 10400 management

Tel. +66 (0) 2208-5000

Fax +66 (0) 2253-6130

10. Thanachart Broker Co., Ltd. Life and Ordinary 10,000,000 9,999,000 99.99

333 Thanachart Wongsawang Building, 3rd Floor, Non-life Share

Ratchadaphisek Road, Wongsawang, Insurance

Bang Sue, Bangkok 10800 Broker

Tel. +66 (0) 2685-0200

Fax +66 (0) 2685-0333

11. SCIB PCL.3 Sale of Ordinary 2,112,810,676 2,112,375,422 99.98

1091/230 New Petchburi Road, company Share

Makkasan, Ratchathewi, assets

Bangkok 10400

12. Thanachart Fund Management Co., Ltd. Mutual Ordinary 10,000,000 7,499,993 75.00

231 Thanachart Park Place, 5th-7

th Floor, fund Share

Ratchadamri Road, Lumpini, Pathumwan, management

Bangkok 10330

Tel. +66 (0) 2126-8300

Fax +66 (0) 2126-8398

13. Ratchthani Leasing PCL. Leasing Ordinary 1,610,819,597 1,049,967,600 65.18

77/35-36 Sinn Sathorn Tower, 11th Up Floor, Share

Krung Thonburi Road, Klong Ton Sai, Klong San,

Bangkok 10600

Tel. +66 (0) 2440-0844

Fax +66 (0) 2440-0848


Type of

Business

Type of

shares

Total number

of share held

Total number of

paid-up shares

Percent of

TBank’s

shareholding1


14. Thoon Ruam Kan Co., Ltd.3 Others Ordinary 240,000 80,000 33.33

133/2 Soi Sukhumvit 21, Share

Sukhumvit Road, Klongtoey,

Bangkok 10110

15. Siam Media and Communication Co., Ltd.3 Communication Ordinary 7,000,000 1,633,800 23.34

18 Building 2 West SCB Park Plaza, 17th-22

nd Floor, Share

Ratchadapisek Road, Ladyao, Chatuchak,

Bangkok 10990

16. Siam City Leasing and Factoring PCL. Leasing Ordinary 29,999,971 4,500,000 15.00

1091/179-181 New Petchburi Road, Share

Makkasan, Ratchathewi,

Bangkok 10400

Tel. +66 (0) 2254-8743-7

Fax +66 (0) 2253-5371

17. High Pressure Steal Pipe Industry Co., Ltd.3 Industrial Ordinary 500,001 70,470 14.09

36/4 Moo 2, Soi Wat Mahawong, pipe Share

Phuchaosmingprai Road, Samrong, Manufacturing

Prapha Daeng, Samut Prakarn 10130

18. Puen Pob Paet Co., Ltd. Medical Ordinary 100,000 9,998 10.00

444 MBK Tower, 9th Floor, Clinic Share


Bangkok 10330

19. Crystal City Development Co., Ltd.3 Construction Ordinary 750,000 75,000 10.00

419 Sathupradit Road, Share

Chong Nonsi, Yannawa,

Bangkok 10120

20. Metropolitan Industrial Leasing Co., Ltd.3 Leasing Ordinary 5,000,000 500,000 10.00

81/42 Moo 5, Surasak, Share

Sriracha, Chonburi 20110

Tel. +66 (0) 3804-8052

Fax +66 (0) 3804-8053

21. Sahakol Chassis Co., Ltd. Vehicle Ordinary 45,000,000 4,500,000 10.00

1418/6-8 Phaholyotin Road, Share

Lad Yao, Chatuchak,

Bangkok 10900

22. Siam Tire Cord Co., Ltd. Textiles Ordinary 20,000 2,000 10.00

46/1 Moo 9, Bangna – Trad Road, and Share

K.M. 39, Bangprakong, apparel

Chachoengsao 24180

Tel. +66 (0) 3853-8403-5

Fax +66 (0) 3853-8399


Type of

Business

Type of

shares

Total number

of share held

Total number of

paid-up shares

Percent of

TBank’s

shareholding1


23. Soonvijai Development Co., Ltd.3 Construction Ordinary 13,000 1,300 10.00

1740 New Petchburi Road, Share

Bangkapi, Huay Klang,

Bangkok 10310

24. Modular Samko Co., Ltd.3 Household Ordinary 3,500,000 350,000 10.00

155 Moo 14, Sukhumvit Sai Kao Road, Share

Bangpakong, Chachoengsao 24130

25. Siam Euro Leasing Co., Ltd.3 Finances Ordinary 13,000,000 1,300,000 10.00

20/22 Soi Prommitr, Sukhumvit Road, and Share

Klong Tan Nuea, Watthana, Securities

Bangkok 10110

26. Siam City Real Estate Services Co., Ltd.3 Construction Ordinary 1,000,000 100,000 10.00

62 Thaniya Building, 1st Floor, Share

Silom Road, Suriyawong, Bangrak,

Bangkok 10500

Notes: 1. Shareholding percentage has shown included the shareholding of related companies.

2. TBANK indirectly held shares through TGL which was in line with the definition of subsidiary company announced by the SET.

3. Held by TBANK, which is in the process of liquidation, dissolution, bankruptcy, receivership or abandoned.

TBank’S reFerenceS

location of head office : 900 Tonson Tower, Ploenchit Road, Lumpini, Pathumwan, Bangkok 10330, Thailand

registration no. : 0107536001401

Type of Business : Commercial Banking

registered capital : THB 75,266,649,030, consist of common shares of 7,526,664,903 shares with a value of

THB 10 per share.

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.

Website : www.thanachartbank.co.th

Telephone : +66 (0) 2655-9000

Fax : +66 (0) 2655-9001

Thanachart contact center : 1770


Type of

Business

Type of

shares

Total number

of share held

Total number of

paid-up shares

Percent of

TBank’s

shareholding1


other references

registrar:

ordinary shares Thailand Securities Depository Company Limited

62 The Stock Exchange of Thailand Building,

Ratchadaphisek Road, Klongtoey, Bangkok 10110, Thailand

Tel. +66 (0) 2229-2800 Call Center +66 (0) 2229-2888

Fax +66 (0) 2359-1259

Website: www.tsd.co.th

debenture TBank155a, TBank194a, Thai Military Bank Public Company Limited

TBank197a, and TBank247a 3000 Phahonyothin Road,

Chom Phon, Chatuchak, Bangkok 10900, Thailand

Tel. +66 (0) 2299-1111

Fax +66 (0) 2273-7806

Website: www.tmbbank.co.th

debenture TBank204a CIMB Thai Public Company Limited

44 Langsuan Building, 15th Floor, Langsuan Road,

Lumpini, Pathumwan, Bangkok 10330, Thailand

Tel. +66 (0) 2626-7503

Fax +66 (0) 2633-9026

Website : www.cimbthai.com

debenture TBank196a, TBank227a, Thanachart Bank Public Company Limited

and TBank22oa Registrar and Paying Agent Department

1101 Petchburi Building, 2nd

Floor, New Petchburi Road,

Makkasan, Ratchathewi, Bangkok 10400, Thailand

Tel. +66 (0) 2208-5000 Ext. 5017, 4519

Fax +66 (0) 2651-7899, 2651-7915

Website: www.thanachartbank.co.th

debenture hybrid Tier i Thanachart Bank Public Company Limited

Securities Operation Section

444 MBK Tower, 20th Floor, Phayathai Road,

Wangmai, Pathumwan, Bangkok 10330, Thailand

Tel. +66 (0) 2217-8000 Ext. 3833

Fax +66 (0) 2611-4839

Website: www.thanachartbank.co.th


Bondholders’ representative:

debenture TBank155a, Thai Military Bank Public Company Limited

TBank194a, TBank196a, 3000 Phahonyothin Road,

TBank197a, TBank227a, Chom Phon, Chatuchak, Bangkok 10900, Thailand

TBank247a, and TBank22oa Tel. +66 (0) 2299-1111

Fax +66 (0) 2273-7806

Website: www.tmbbank.co.th

debenture TBank204a CIMB Thai Public Company Limited

44 Langsuan Building, 15th Floor, Langsuan Road,

Lumpini, Pathumwan, Bangkok 10330, Thailand

Tel. +66 (0) 2626-7503

Fax +66 (0) 2633-9026

Website: www.cimbthai.com

debenture hybrid Tier i - None -

auditor: Miss Ratana Jala

Certified Public Accountant (Thailand) No. 3734

Ernst & Young Office Limited

193/136-137, Lake Rajada Office Complex, 33rd Floor,

New Ratchadaphisek Road, Klongtoey, Bangkok 10110, Thailand

Tel. +66 (0) 2264-0777

Fax +66 (0) 2264-0789-90

Website: www.ey.com

legal advisor: - None -

advisor or management under

the management agreement: - None -


(b) Group of major shareholders who have significant influence over the formulation of management policies include

Thanachart Capital Public Company Limited (TCAP) and the Scotia Netherlands Holding B.V., which holds 50.959 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.

(2) Shareholders’ agreement

TCAP and Scotiabank hold an agreement between the shareholders namely Shareholders’ Agreement, which required

to send representatives to participate in the management in the director and executive level as well as directors in major

subsidiaries. Moreover, any resolution made by the Board of Directors and the shareholders on the significant issues shall

comply with the Articles of Association. Such agreement is put in place for the Bank’s management to achieve the goals of

shareholders from both parties.

Structure of major Shareholders

(1) list of major shareholders

(a) Top ten major shareholders are as follows:

1. Thanachart Capital Public Company Limited 2,809,726,575 50.959

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 Mujarintangkur 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 Jittipralangsri 60,000 0.001

By redeivership of Legal Execution Department of

Thai Finance and Securities PCL.

11. Other Shareholders 1,249,414 0.023

Total Paid-up Capital 5,513,664,903 100.000

Thai Shareholders 2,811,994,046 51.000

Foreign Shareholders 2,701,670,857 49.000

rank list of Shareholders number of SharesPercentage of

Shareholding

Notes: 1) Report of the Bank’s major shareholders as of March 15, 2013 (As of closing date of shareholders) prepared by Thailand Securities

Depository Co., Ltd.

2) On May 9, 2011, the Bank of Thailand (BOT) allows Scotiabank changed its shareholding in TBANK holds 48.99 percent of the total

paid-up shares of TBANK, through Scotia Netherlands Holding B.V., a legal entity incorporated in the Netherlands.


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 requirements

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.

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 pay dividend out of their net profit after deduction of all

reserve funds according to requirements 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.

Previous dividend Payment

TBank’s dividend payment in the previous year was approved by the Annual General Meeting of Shareholders

No. 20/2013 on April 4, 2013, which approved the payment of dividends from retained earnings subject to corporate income

tax at the rate of 30 percent to all shareholders at the rate of THB 0.37 per share, totaling THB 2,040,056,014.11 or 29.98

percent of the net profit of the separate financial statements.

Dividend payment for year 2008-2012 was paid according to the performance of previous years. The table below shows

the information of previous dividend payment.

Earnings per share (THB) 0.63 0.75 1.91 1.25 1.21

Dividend per share (THB) 0.43 0.56 0.56 0.40 0.35

Dividend Payout Ratio (Percent) 68.76 74.47 30.54 38.57 28.94

Performance of the year

Paid in

2012

2013

2008

2009

2009

2010

2010

2011

2011

2012


Thanachart capital Public company limited

444 MBK Tower, 16th-17

th Floor,


Bangkok 10330, Thailand

Tel. +66 (0) 2217-8444, 2217-8000, 2611-9111

Fax +66 (0) 2217-8312

www.thanachart.co.th


Thanachart Bank Public company limited

900 Tonson Tower, Ploenchit Road,

Lumpini, Pathumwan,


Tel. +66 (0) 2655-9000

Fax +66 (0) 2655-9001



Thanachart Securities Public company limited

444 MBK Tower, 14th, 18

th and 19

th Floor,



Tel. +66 (0) 2217-8888, 2217-9595

Fax +66 (0) 2217-9642

www.tnsitrade.com


Thanachart Fund management company limited

231 Thanachart Park Place, 5th-7

th Floor,



Tel. +66 (0) 2126-8300

Fax +66 (0) 2126-8398

www.thanachartfund.co.th


Thanachart insurance Public company limited

999/1 The Nine Tower,

Rama 9 Road, Suanluang,


Tel. +66 (0) 2308-9300

Fax +66 (0) 2308-9333

www.thanachartinsurance.co.th


companies in Thanachart Financial Group

Siam city life assurance Public company limited

231 Thanachart Park Place, 9th, 11

th Floor,



Tel. +66 (0) 2252-5070

Fax +66 (0) 2252-7155

www.scilife.co.th


TS asset management company limited

1101 Petchburi Building, 9th Floor,

New Petchburi Road, Makkasan,

Ratchathewi, Bangkok 10400, Thailand

Tel. +66 (0) 2208-5000

Fax +66 (0) 2253-6130

http://property.scib.co.th/property


Thanachart Group leasing company limited

444 MBK Tower, 9th Floor, Phayathai Road,

Wangmai, Pathumwan,


Tel. +66 (0) 2217-8000, 2613-6000

Fax +66 (0) 2217-8098


ratchthani leasing Public company limited

77/35-36 Sinn Sathorn Tower, 11th

up Floor,

Krung Thonburi Road, Klong Ton Sai, Klong San,


Tel. +66 (0) 2440-0844

Fax +66 (0) 2440-0848

www.ratchthani.com



BrancheS oF

ThanacharT Bank

PuBlic comPany limiTed

information as of

31 december 2013

head oFFice

Tonson Branch

Tel. +66 (0) 2655-9065-76

Fax +66 (0) 2655-9079

BanGkok and vicniTieS

BanGkok

Tonson Branch

Tel. +66 (0) 2655-9065-76

Fax +66 (0) 2655-9079

Phetchaburi Office Branch

Tel. +66 (0) 2208-5000, 2253-0200-43

Fax +66 (0) 2253-6198

Suan Mali Office Branch

Tel. +66 (0) 2220-2222 # 2106-7, 2112

Fax +66 (0) 2224-3810

Department of Land Transport Branch

Tel. +66 (0) 2272-6073-6

Fax +66 (0) 2272-6077

Green Place (Soi Wat Phai Ngoen)

Branch

Tel. +66 (0) 2211-3515, 2211-3519-20

Fax +66 (0) 2674-9704

Kluai Nam Thai Branch

Tel. +66 (0) 2258-6620-1

Fax +66 (0) 2258-5505

Crystal Design Center Branch

Tel. +66 (0) 2102-2410-2

Fax +66 (0) 2102-2413

Khlong Chan Branch

Tel. +66 (0) 2377-1364, 2377-1368-9

Fax +66 (0) 2377-3609

Khlong Tan Branch

Tel. +66 (0) 2314-2642-4, 2719-8030

Fax +66 (0) 2719-8031

Khlong Toei Branch

Tel. +66 (0) 2240-0161, 2249-2633

Fax +66 (0) 2249-4789

Khlong Thom Branch

Tel. +66 (0) 2221-1677, 2221-1671

Fax +66 (0) 2221-1679

Charan Sanitwong 13 Branch

Tel. +66 (0) 2864-1560-3

Fax +66 (0) 2864-1566

Charan Sanitwong 35 Branch

Tel. +66 (0) 2411-0511, 2411-0605

Fax +66 (0) 2411-0607

Chamchuri Square Branch

Tel. +66 (0) 2160-5254-7

Fax +66 (0) 2160-5258

Cha Ru Mueang Branch

Tel. +66 (0) 2214-1488, 2214-1739

Fax +66 (0) 2214-2038

Charoen Krung 17 Branch

Tel. +66 (0) 2224-1839, 2225-7194

Fax +66 (0) 2224-2059

Charoen Nakhon Soi 36 Branch

Tel. +66 (0) 2862-5010-6

Fax +66 (0) 2862-5017

Charoen Phon Branch

Tel. +66 (0) 2215-6628-30

Fax +66 (0) 2215-6627

Charn Issara Tower (Rama IV) Branch

Tel. +66 (0) 2267-4296-8

Fax +66 (0) 2267-4299

Charn Issara Tower II Branch

Tel. +66 (0) 2308-2955-8, 2718-1834

Fax +66 (0) 2308-2950

Chok Chai 4 Branch

Tel. +66 (0) 2931-0895-7

Fax +66 (0) 2931-0798

Seacon Square Branch

Tel. +66 (0) 2721-8548-50

Fax +66 (0) 2721-8551

Seacon Square Srinagarindra Branch

Tel. +66 (0) 2721-9955

Fax +66 (0) 2721-8321

Century The Movie Plaza Branch

Tel. +66 (0) 2245-8500-2

Fax +66 (0) 2245-8504

Central Pin Klao Branch

Tel. +66 (0) 2884-9680-3

Fax +66 (0) 2884-9684

Central Rama II Branch

Tel. +66 (0) 2872-4770

Fax +66 (0) 2872-4769

Central Rama III Branch

Tel. +66 (0) 2211-8260

Fax +66 (0) 2211-8190

Central Ram Inthra Branch

Tel. +66 (0) 2552-7462, 2552-7467-8

Fax +66 (0) 2970 5518

Central Bang Na Branch

Tel. +66 (0) 2398-9572-3

Fax +66 (0) 2398-9574

Central Plaza Grand Rama IX Branch

Tel. +66 (0) 2160-2950-3

Fax +66 (0) 2160-2954

Central Lat Phrao Branch

Tel. +66 (0) 2937-1279-80

Fax +66 (0) 2937-1283

Central World Branch

Tel. +66 (0) 2646-1346-9, 2646-1353

Fax +66 (0) 2646-1350

Don Mueang Branch

Tel. +66 (0) 2929-7004, 2566-1950-1

Fax +66 (0) 2566-3425

The Avenue Chaengwattana Branch

Tel. +66 (0) 2573-0673-5

Fax +66 (0) 2573-0677

The Nine (Thanon Rama IX) Branch

Tel. +66 (0) 2319-1662-4, 2716-7868

Fax +66 (0) 2718-7869

The Paseo (Lat Krabang) Branch

Tel. +66 (0) 2346-4103-4, 2346-4109

Fax +66 (0) 2346-4111

The Mall Bangkapi Branch

Tel. +66 (0) 2375-1575

Fax +66 (0) 2375-1686

The Mall 2 Ramkhamhaeng Branch

Tel. +66 (0) 2369-2486, 2369-2482

Fax +66 (0) 2369-2484

The Mall Tha Phra Branch

Tel. +66 (0) 2477-7321-3

Fax +66 (0) 2477-7324

The Mall Bang Khae Branch

Tel. +66 (0) 2803-8310

Fax +66 (0) 2803-8305

Trok Chan Branch

Tel. +66 (0) 2211-1286, 2211-4511

Fax +66 (0) 2211-4653


Talat Bang Khae Branch

Tel. +66 (0) 2801-1004-6

Fax +66 (0) 2801-1007

Talat Phlu Branch

Tel. +66 (0) 2466-7404, 2466-7423

Fax +66 (0) 2465-1767

Talat Ying Charoen Branch

Tel. +66 (0) 2552-8043, 2552-8045

Fax +66 (0) 2972-3161

Talat Saphan Mai Don Mueang Branch

Tel. +66 (0) 2521-1670, 2521-0612-3

Fax +66 (0) 2521-0611

Talat Samrae Branch

Tel. +66 (0) 2472-2045-50

Fax +66 (0) 2472-2052

Talat Mo Chit Branch

Tel. +66 (0) 2278-5300-1, 2270-0308

Fax +66 (0) 2279-3411

Taling Chan Branch

Tel. +66 (0) 2882-7790-4

Fax +66 (0) 2882-7796

Tao Pun Branch

Tel. +66 (0) 2587-7292, 2587-7284-5

Fax +66 (0) 2587-7379

TOYOTA BUZZ Kaset-Nawamin Branch

Tel. +66 (0) 2561-0069-72

Fax +66 (0) 2561-0073

Thanon Romklao Housing Branch

Tel. +66 (0) 2543-9200-1, 2543-9191

Fax +66 (0) 2543-9192

Thanon Chan Branch

Tel. +66 (0) 2285-5360, 2285-5368

Fax +66 (0) 2285-5361

Thanon Charoen Nakhon Branch

Tel. +66 (0) 2438-6953-5, 2860-2018

Fax +66 (0) 2860-4355

Thanon Chalong Krung Branch

Tel. +66 (0) 2327-8111-3

Fax +66 (0) 2327-8114

Thanon Nang Linchi Branch

Tel. +66 (0) 2286-1971, 2286-1898

Fax +66 (0) 2286-1939

Thanon Borom Rat Chonnani Branch

Tel. +66 (0) 2446-8061-4

Fax +66 (0) 2446-8065

Thanon Burapha (Phahurat) Branch

Tel. +66 (0) 2221-2069, 2221-5239

Fax +66 (0) 2221-5128

Thanon Prajadhipok (Wongwian Yai)

Branch

Tel. +66 (0) 2437-0188, 2437-2596

Fax +66 (0) 2437-5784

Thanon Rama II

(Thon Buri Housing 3) Branch

Tel. +66 (0) 2451-4402, 2451-4409

Fax +66 (0) 2451-4882

Thanon Rama II (Soi 3) Branch

Tel. +66 (0) 2427-1552-3

Fax +66 (0) 2427-1551

Thanon Rama IX Branch

Tel. +66 (0) 2246-7829-30

Fax +66 (0) 2246-8473

Thanon Phrasumen (Bang Lamphu)

Branch

Tel. +66 (0) 2281-6821, 2281-6332

Fax +66 (0) 2281-7457

Thanon Phatthanakan Branch

Tel. +66 (0) 2369-2814-7

Fax +66 (0) 2369-2818

Thanon Phatthanakan 22 Branch

Tel. +66 (0) 2318-7241-2, 2318-7620

Fax +66 (0) 2318-7393

Thanon Petchaburi Soi 20 Branch

Tel. +66 (0) 2251-6018, 2251-6852

Fax +66 (0) 2252-6935

Thanon Petchaburi Tat Mai Branch

Tel. +66 (0) 2254-0252-4

Fax +66 (0) 2254-0255

Thanon Pho Phanit (Ratchawong)

Branch

Tel. +66 (0) 2622-9050, 2622-4093

Fax +66 (0) 2622-9029

Thanon Mangkon Branch

Tel. +66 (0) 2225-3331, 2225-3863

Fax +66 (0) 2225-8364

Thanon Ramkhamhaeng 2 Branch

Tel. +66 (0) 2397-6173-5, 2728-4060

Fax +66 (0) 2728-4061

Thanon Sathon Tai (Thai CC Tower)

Branch

Tel. +66 (0) 2675-5697-700

Fax +66 (0) 2675-5701

Thanon Sathon Nuea Branch

Tel. +66 (0) 2267-7512-4, 2637-8651

Fax +66 (0) 2637-8975

Thanon Sirindhorn Branch

Tel. +66 (0) 2434-5028-9, 2434-5947-8

Fax +66 (0) 2434-5661

Thanon Suea Pa Branch

Tel. +66 (0) 2221-4327-9, 2623-0578

Fax +66 (0) 2623-0579

Thanon Ekkachai (Bang Bon 5) Branch

Tel. +66 (0) 2450-3741-3

Fax +66 (0) 2450-3744

Thong Lo Branch

Tel. +66 (0) 2381-8421-2, 2381-8364-5

Fax +66 (0) 2381-8423

Thong Lo Soi 3 Branch

Tel. +66 (0) 2392-5802-4, 2712-8245

Fax +66 (0) 2712-8168

Thong Lo Soi 17 Branch

Tel. +66 (0) 2185-2756, 2185-2758-61

Fax +66 (0) 2185-2757

Tops RCA Branch

Tel. +66 (0) 2203-0267-9, 2641-5120

Fax +66 (0) 2641-5121

Tha Din Daeng Branch

Tel. +66 (0) 2863-1283-8

Fax +66 (0) 2863-1289

Tha Phra Chan Branch

Tel. +66 (0) 2221-7511, 2222-0686

Fax +66 (0) 2222-4794

Thewet Branch

Tel. +66 (0) 2628-7240-4, 2628-7247

Fax +66 (0) 2282-8810

Tesco Lotus Bang Kapi Branch

Tel. +66 (0) 2377-8029, 2377-8092

Fax +66 (0) 2377-8508


Tesco Lotus Rama II Branch

Tel. +66 (0) 2415-9130-3

Fax +66 (0) 2892-8004

Tesco Lotus Rama IV Branch

Tel. +66 (0) 2249-7533-6

Fax +66 (0) 2249-7537

Tesco Lotus Phet Kasem 81 Branch

Tel. +66 (0) 2489-2087-9, 2812-4072

Fax +66 (0) 2812-4073

Tesco Lotus Lat Phrao Branch

Tel. +66 (0) 2512-1955, 2512-1963

Fax +66 (0) 2939-3043

Tesco Lotus Wang Hin Branch

Tel. +66 (0) 2578-6194-6

Fax +66 (0) 2578-6197

Thian Kua Thian Branch

Tel. +66 (0) 2221-3575-6, 2622-9063

Fax +66 (0) 2221-3575

Thai Summit Tower

(Thanon Petchaburi Tat Mai) Branch

Tel. +66 (0) 2252-6458, 2251-1327

Fax +66 (0) 2251-1357

Thaniya Branch

Tel. +66 (0) 2236-3520-1, 2236-9129

Fax +66 (0) 2236-9119

Nawamin 42 Branch

Tel. +66 (0) 2375-1281-2, 2375-1284

Fax +66 (0) 2375-1285

Nawamin 66 Branch

Tel. +66 (0) 2519-5724, 2519-4616

Fax +66 (0) 2519-4627

Nawamin Market Place Branch

Tel. +66 (0) 2519-1142, 2519-1154

Fax +66 (0) 2946-7432

Nang Loeng Branch

Tel. +66 (0) 2281-0842, 2281-2169

Fax +66 (0) 2281-2322

Na Na Nuea Branch

Tel. +66 (0) 2252-0709, 2252-6540

Fax +66 (0) 2253-5668

Bang Khun Non Branch

Tel. +66 (0) 2424-9778-9, 2433-6028-9

Fax +66 (0) 2434-9772

Bang Khae Branch

Tel. +66 (0) 2454-6225-7, 2454-2790-2

Fax +66 (0) 2413-1329

Bang Khlo Branch

Tel. +66 (0) 2289-4223, 2289-4236

Fax +66 (0) 2289-4159

Bang Sue Branch

Tel. +66 (0) 2587-0616, 2587-0686

Fax +66 (0) 2585-9659

Bang Na Branch

Tel. +66 (0) 2398-0182-4

Fax +66 (0) 2398-0185

Bang Na-Trat Km. 4 Branch

Tel. +66 (0) 2399-2841-4

Fax +66 (0) 2399-2845

Bang Bon Branch

Tel. +66 (0) 2899-8533-5

Fax +66 (0) 2899-8540

Bang Phlat Branch

Tel. +66 (0) 2435-7205, 2435-6808-10

Fax +66 (0) 2435-6807

Bang Mod Branch

Tel. +66 (0) 2428-6913-5

Fax +66 (0) 2428-6994

Bang Rak Branch

Tel. +66 (0) 2234-4227-9, 2630-9026

Fax +66 (0) 2630-9027

Bang Lamphu Branch

Tel. +66 (0) 2356-0783, 2356-0785-6

Fax +66 (0) 2356-0787

Bamrung Mueang Branch

Tel. +66 (0) 2216-9794-7, 2214-0606-8

Fax +66 (0) 2216-9798

BigC Don Mueang Branch

Tel. +66 (0) 2551-0638-9, 2551-0641

Fax +66 (0) 2551-0642

BigC Bang Na Branch

Tel. +66 (0) 2396-0482, 2396-0484-5

Fax +66 (0) 2396-0500

BigC Bang Bon Branch

Tel. +66 (0) 2416-9969-71

Fax +66 (0) 2416-9974

BigC Phet Kasem Branch

Tel. +66 (0) 2444-2927, 2444-2904

Fax +66 (0) 2444-2909

BigC Sukhaphiban 3 (Ramkhamhaeng)

Branch

Tel. +66 (0) 2916-3584-5, 2916-3603

Fax +66 (0) 2916-3607

BigC Sukhaphiban 5 Branch

Tel. +66 (0) 2153-1513-4, 2153-1566

Fax +66 (0) 2153-1567

BigC Ekkamai Branch

Tel. +66 (0) 2714-8274-7, 2551-0641

Fax +66 (0) 2714-8268

Bo Bae Branch

Tel. +66 (0) 2356-0755-8

Fax +66 (0) 2356-0759

Bobae Tower Branch

Tel. +66 (0) 2628-1693-5, 2628-1690

Fax +66 (0) 2628-1696

PTT Thanon Seri Thai Branch

Tel. +66 (0) 2187-2009-12

Fax +66 (0) 2187-2013

Pracha Chuen Branch

Tel. +66 (0) 2585-6811, 2585-9656-7

Fax +66 (0) 2585-2666

Pracha Uthit Branch

Tel. +66 (0) 2873-4721-3, 2873-5848

Fax +66 (0) 2873-5849

Pracha Uthit (Huai Khwang) Branch

Tel. +66 (0) 2934-4181-3

Fax +66 (0) 2934-4184

Pratu Nam Branch

Tel. +66 (0) 2208-0072, 2208-0074-5

Fax +66 (0) 2208-0076

Prawet Branch

Tel. +66 (0) 2322-2223, 2722-1371-2

Fax +66 (0) 2322-8943

Pak Khlong Talat Branch

Tel. +66 (0) 2221-7511, 2222-0686

Fax +66 (0) 2222-4794

Pin Klao Branch

Tel. +66 (0) 2435-4273-4, 2435-7374

Fax +66 (0) 2435-4518


Rama III Branch

Tel. +66 (0) 2682-7322-6, 2682-7328-9

Fax +66 (0) 2682-7327

Rama IV Branch

Tel. +66 (0) 2249-4201-3, 2671-0260

Fax +66 (0) 2249-4204

Phran Nok Branch

Tel. +66 (0) 2418-0785, 2418-0787

Fax +66 (0) 2418-0786

Phlapphlachai Branch

Tel. +66 (0) 2224-6922-3, 2224-6930

Fax +66 (0) 2224-6947

Phahon Yothin Soi 6 Branch

Tel. +66 (0) 2279-9874-5

Fax +66 (0) 2279-9895

Phahon Yothin Soi 9 Branch

Tel. +66 (0) 2270-1371-3, 2619-6399

Fax +66 (0) 2619-6339

Phatthanakan Branch

Tel. +66 (0) 2719-4580-3

Fax +66 (0) 2719-4591

Paradise Park Branch

Tel. +66 (0) 2325-9072-4

Fax +66 (0) 2325-9075

Phahurat Branch

Tel. +66 (0) 2221-4409, 2221-4419-20

Fax +66 (0) 2623-8098

P.B. Tower (Khlong Tan) Branch

Tel. +66 (0) 2381-3114-5, 2381-3121-2

Fax +66 (0) 2381-3124

Phet Kasem Branch

Tel. +66 (0) 2456-0337-42

Fax +66 (0) 2454-4116

Phet Kasem 69 Branch

Tel. +66 (0) 2809-3034-8

Fax +66 (0) 2809-3041

Phloen Chit Center Branch

Tel. +66 (0) 2656-8403-7

Fax +66 (0) 2656-8400

Platinum Pratu Nam Branch

Tel. +66 (0) 2121-9683-6

Fax +66 (0) 2121-9687

Fashion Island Branch

Tel. +66 (0) 2947-6402-5

Fax +66 (0) 2947-6410

Money Park Branch

Tel. +66 (0) 2686-3960-2

Fax +66 (0) 2686-3959

Mah Boon Krong Branch

Tel. +66 (0) 2611-5710-4

Fax +66 (0) 2611-5717

Min Buri Branch

Tel. +66 (0) 2517-8014-5, 2517-9321

Fax +66 (0) 2517-8016

Major Ratchayothin Branch

Tel. +66 (0) 2512-1082, 2512-1102

Fax +66 (0) 2939-5372

Union Mall Lat Phrao Branch

Tel. +66 (0) 2511-0236, 2511-0246

Fax +66 (0) 2511-0268

Yaowarat Branch

Tel. +66 (0) 2221-1868, 2221-1845-7

Fax +66 (0) 2221-1869

Ratchada Phisek Branch

Tel. +66 (0) 2641-2225-8

Fax +66 (0) 2641-3233

Ratchada Phisek

(Glas Haus Building) Branch

Tel. +66 (0) 2693-9811, 2290-3500

Fax +66 (0) 2693-9820

Ratchada Phisek-Tha Phra Branch

Tel. +66 (0) 2878-8845-50

Fax +66 (0) 2878-8852

Ratchada-Huai Khwang Branch

Tel. +66 (0) 2694-1489-91, 2694-1495

Fax +66 (0) 2694-1496

Ratchadamnoen Branch

Tel. +66 (0) 2221-3391, 2226-0178-9

Fax +66 (0) 2222-9635

Ratchadamnoen Klang Branch

Tel. +66 (0) 2226-3083-5, 2621-2185

Fax +66 (0) 2621-2186

Ratchadamri Branch

Tel. +66 (0) 2251-3113, 2251-4314

Fax +66 (0) 2251-4316

Ratchawong Branch

Tel. +66 (0) 2224-5705, 2224-5870

Fax +66 (0) 2224-5792

Ratcha Wat Branch

Tel. +66 (0) 2241-0868, 2243 6183

Fax +66 (0) 2241-1483

Ramkhamhaeng 73 Branch

Tel. +66 (0) 2375-2126-7, 2374-9644

Fax +66 (0) 2375-2452

Ramkhamhaeng 155 Branch

Tel. +66 (0) 2373-0005, 2373-0007-8

Fax +66 (0) 2373-0004

Ramkhamhaeng Soi 24 Branch

Tel. +66 (0) 2300-4956-8

Fax +66 (0) 2719-1258


Tel. +66 (0) 2372-2377-9

Fax +66 (0) 2728-2950


Tel. +66 (0) 2372-3318-20, 2729-5625

Fax +66 (0) 2729-5832

Ram Inthra Branch

Tel. +66 (0) 2943-5630-2, 2519-0824-5

Fax +66 (0) 2519-0826

Ram Inthra (Km. 7) Branch

Tel. +66 (0) 2510-9610, 2510-9882

Fax +66 (0) 2510-9197

Ram Inthra (Km. 8) Branch

Tel. +66 (0) 2510-6900, 2510-2342

Fax +66 (0) 2510-9875

Navaminthra 9 Hospital Branch

Tel. +66 (0) 2518-1100, 2518-2360-1

Fax +66 (0) 2518-2363

Paolo Memorial Hospital Chok Chai 4

Branch

Tel. +66 (0) 2514-3277, 2514-3293-4

Fax +66 (0) 2933-2292

Ramkhamhaeng Hospital Branch

Tel. +66 (0) 2374-1523-5, 2374-1561

Fax +66 (0) 2374-1562

Phyathai 1 Hospital Branch

Tel. +66 (0) 2246-7713-5

Fax +66 (0) 2246-7716


Vichaiyut Hospital Branch

Tel. +66 (0) 2278-2194-6

Fax +66 (0) 2278-2606

Vibhavadi Hospital Branch

Tel. +66 (0) 2561-5320-2

Fax +66 (0) 2941-3006

Samitivej Hospital Sukhumwit 49 Branch

Tel. +66 (0) 2712-7013-4

Fax +66 (0) 2712-7016

Lat Krabang Branch

Tel. +66 (0) 2327-2754-7

Fax +66 (0) 2327-2706

Lat Phrao Branch

Tel. +66 (0) 2512-2343-4, 2938-2433

Fax +66 (0) 2512-2342

Lat Phrao 53 Branch

Tel. +66 (0) 2539-1167, 2539-1507

Fax +66 (0) 2539-2261

Lat Phrao 80 Branch

Tel. +66 (0) 2933-9172, 2933-9174-5

Fax +66 (0) 2933-9178

Lat Phrao 118 Branch

Tel. +66 (0) 2539-2925-7

Fax +66 (0) 2530-4348

Lat Phrao Soi 101 Branch

Tel. +66 (0) 2187-0162-5

Fax +66 (0) 2187-0161

Lam Sa Li Branch

Tel. +66 (0) 2735-2060-3

Fax +66 (0) 2735-2067

Leng Noei Yi Branch

Tel. +66 (0) 2221-1248, 2221-3501

Fax +66 (0) 2223-3211

Wongwian Yai Branch

Tel. +66 (0) 2438-2486, 2438-2562

Fax +66 (0) 2438-2568

Wong Sawang Branch

Tel. +66 (0) 2834-9999, 2834-9900

Fax +66 (0) 2834-9905

Wong Sawang Town Center Branch

Tel. +66 (0) 2586-0420-2

Fax +66 (0) 2910-7949

Watcharaphon Branch

Tel. +66 (0) 2508-2185-7

Fax +66 (0) 2508-2207

Wat Phra Ya Kai Branch

Tel. +66 (0) 2289-3026-7, 2289-5033

Fax +66 (0) 2289-5032

Wutthakat Branch

Tel. +66 (0) 2466-9981-2, 2466-6160

Fax +66 (0) 2472-5838

Woeng Nakhon Khasem Branch

Tel. +66 (0) 2222-2430, 2221-7201-4

Fax +66 (0) 2222-6475

Si Worachak Branch

Tel. +66 (0) 2222-1912, 2222-1917

Fax +66 (0) 2622-9338

Siwara Branch

Tel. +66 (0) 2538-8466, 2538-8986

Fax +66 (0) 2538-9378

Appeal Court Branch

Tel. +66 (0) 2938-3421-6

Fax +66 (0) 2938-3428

Sirirat Branch

Tel. +66 (0) 2412-4515, 2412-4583-4

Fax +66 (0) 2866-3218

Vichaiyut Medical Center Branch

Tel. +66 (0) 2357-1916-8, 2619-7042

Fax +66 (0) 2619-7043

The Government Complex

Commemorating Chaengwattana

(Building B) Branch

Tel. +66 (0) 2143-9393-6

Fax +66 (0) 2143-9397

Sanam Pao Branch

Tel. +66 (0) 2271-0026-9

Fax +66 (0) 2271-0030

Siam Discovery Branch

Tel. +66 (0) 2658-0491-3

Fax +66 (0) 2658-0494

Siam Paragon Branch

Tel. +66 (0) 2129-4374-7

Fax +66 (0) 2129-4372

Siam Square Branch

Tel. +66 (0) 2252-7363-6

Fax +66 (0) 2252-7367

Song Prapha Branch

Tel. +66 (0) 2928-8542-5

Fax +66 (0) 2928-8546

Suan Phlu Branch

Tel. +66 (0) 2287-3084-5, 2287-3074

Fax +66 (0) 2679-3028

Suan Lumphini (Thanon Sarasin) Branch

Tel. +66 (0) 2252-2677-8, 2651-9037

Fax +66 (0) 2252-2679

Saphan Khwai Branch

Tel. +66 (0) 2279-6060-1

Fax +66 (0) 2616-6747

Rama VII Bridge (Bang Phlat) Branch

Tel. +66 (0) 2423-9011-4

Fax +66 (0) 2423-9015

Sathu Pradit 49 Branch

Tel. +66 (0) 2682-0610-8

Fax +66 (0) 2682-0619

Sam Yan Branch

Tel. +66 (0) 2215-1549, 2215-4199

Fax +66 (0) 2216-6170

Sam Yaek Branch

Tel. +66 (0) 2223-2706-8

Fax +66 (0) 2223-2705

Sam Yaek Fai Chai Branch

Tel. +66 (0) 2411-3446, 2418-3575-6

Fax +66 (0) 2411-2321

Sam Pheng Branch

Tel. +66 (0) 2222-7396, 2222-7551

Fax +66 (0) 2225-8468

Samrae Branch

Tel. +66 (0) 2468-0609, 2468-1008-9

Fax +66 (0) 2476-5423

Si Kak Phra Ya Si Branch

Tel. +66 (0) 2222-4477-8, 2226-2267

Fax +66 (0) 2225-7036

Si Phra Ya Branch

Tel. +66 (0) 2233-5305-7, 2267-2191-4

Fax +66 (0) 2233-4174

Si Yaek Kaset Branch

Tel. +66 (0) 2579-1340, 2579-3483

Fax +66 (0) 2579-6794


Si Yaek Chaloem Buri

(Yaowarat) Branch

Tel. +66 (0) 2221-1236, 2221-7194

Fax +66 (0) 2225-0580

Si Yaek Ban Khaek Branch

Tel. +66 (0) 2465-2115, 2466-1950

Fax +66 (0) 2465-5071

Si Yaek Prawet Branch

Tel. +66 (0) 2328-8023-5

Fax +66 (0) 2328-8027

Silom Branch

Tel. +66 (0) 2266-7414, 2266-7417-8

Fax +66 (0) 2266-7416

Silom (Thanon Pan) Branch

Tel. +66 (0) 2237-9317-20, 2235-5800-2

Fax +66 (0) 2237-9321

Silom Soi 15 Branch

Tel. +66 (0) 2237-4192-4, 2635-0272

Fax +66 (0) 2635-0270

Silom Complex Branch

Tel. +66 (0) 2231-3237, 2231-3663-5

Fax +66 (0) 2235-8833

Sukhumwit 71 Branch

Tel. +66 (0) 2391-6067, 2392-5944

Fax +66 (0) 2392-2534

Sukhumwit Soi 25 Branch

Tel. +66 (0) 2259-4726-9

Fax +66 (0) 2259-4730


Tel. +66 (0) 2204-0307-9, 2662-7708

Fax +66 (0) 2662-5632


Tel. +66 (0) 2393-5782

Fax +66 (0) 2399-2399

Sukhumwit Soi 101/1 (Piyarom Place)

Branch

Tel. +66 (0) 2332-7060-2, 2741-8016

Fax +66 (0) 2741-8017

Sutthi San Branch

Tel. +66 (0) 2616-3553-8

Fax +66 (0) 2616-3561

Surawong Branch

Tel. +66 (0) 2234-5964-6, 2631-7030

Fax +66 (0) 2631-7031

Seri Thai 32 Branch

Tel. +66 (0) 2376-1043-6

Fax +66 (0) 2376-1122

Nong Khaem Branch

Tel. +66 (0) 2445-4788, 2445-4790-2

Fax +66 (0) 2445-4789

Huai Khwang Branch

Tel. +66 (0) 2692-0061, 2692-2098-100

Fax +66 (0) 2276-1134

Hua Lam Phong Branch

Tel. +66 (0) 2237-9710-4

Fax +66 (0) 2237-9713

Hua Mak Branch

Tel. +66 (0) 2314-2627, 2314-0086-7

Fax +66 (0) 2314-7277

Anu Wong Branch

Tel. +66 (0) 2222-0161-3, 2222-0169

Fax +66 (0) 2225-8931

Victory Monument Branch

Tel. +66 (0) 2644-7474-6

Fax +66 (0) 2354-9351

Asok Branch

Tel. +66 (0) 2260-7831-4

Fax +66 (0) 2260-7839

Asok-Din Daeng Branch

Tel. +66 (0) 2641-7547-9

Fax +66 (0) 2641-7566

On Nuch 52 Branch

Tel. +66 (0) 2322-1557-9

Fax +66 (0) 2322-1556

All Seasons Place Branch

Tel. +66 (0) 2250-7611-4

Fax +66 (0) 2250-7615

Berli Jucker House (Kluai Nam Thai)

Branch

Tel. +66 (0) 2381-5065-7

Fax +66 (0) 2381-5068

Vorawat Building Silom Branch

Tel. +66 (0) 2635-1150-2

Fax +66 (0) 2635-1157

Vibulthani Tower (Rama IV) Branch

Tel. +66 (0) 2661-5534-7

Fax +66 (0) 2661-5539

Siam Kit Building Branch

Tel. +66 (0) 2251-6763, 2252-5252

Fax +66 (0) 2253-9429

India Emporium Branch

Tel. +66 (0) 2224-0133, 2224-0135-6

Fax +66 (0) 2623-9434

Udom Suk Branch

Tel. +66 (0) 2398-4024-7

Fax +66 (0) 2398-4028

Ekkamai 28 Branch

Tel. +66 (0) 2392-2831, 2392-7278-9

Fax +66 (0) 2392-2832

MBK Center Branch

Tel. +66 (0) 2611-4752-4, 2611-4843

Fax +66 (0) 2611-4751

Esplanade Ratchada Branch

Tel. +66 (0) 2354-2052-4

Fax +66 (0) 2660-9250

IT Square Branch

Tel. +66 (0) 2576-0104-5

Fax +66 (0) 2576-0106

Ocean Tower II Branch

Tel. +66 (0) 2204-1695-6

Fax +66 (0) 2204-1698-9

Thanon Kanchanaphisek

(Thawi Watthana) Branch

Tel. +66 (0) 2447-9206-8

Fax +66 (0) 2447-9209

vicniTieS

King Kaeo Branch

Tel. +66 (0) 2316-1990-2

Fax +66 (0) 2317-1312

Khru Nai Branch

Tel. +66 (0) 2462-8020, 2462-8034

Fax +66 (0) 2462-6193

Khlong Luang Branch

Tel. +66 (0) 2516-1230-33, 2516-1202

Fax +66 (0) 2516-1203

Chaeng Wattana Branch

Tel. +66 (0) 2982-9192-5

Fax +66 (0) 2982-9441


Chaeng Wattana

(Software Park Building) Branch

Tel. +66 (0) 2962-0066, 2962-0415-6

Fax +66 (0) 2962-0376

Central Chaeng Wattana Branch

Tel. +66 (0) 2193-8114-6

Fax +66 (0) 2101-0710

Central Rattanathibet Branch

Tel. +66 (0) 2525-4736-8, 2969-7536

Fax +66 (0) 2969-7537

Zeer-Rangsit Branch

Tel. +66 (0) 2992-6807-9

Fax +66 (0) 2992-6810

The Mall Ngamwongwan Branch

Tel. +66 (0) 2550-1231-4

Fax +66 (0) 2550-1235

Talat Klang Bang Yai Branch

Tel. +66 (0) 2595-0682-4

Fax +66 (0) 2595-0685

Talat Thai Branch

Tel. +66 (0) 2529-6171-2

Fax +66 (0) 2529-6175

Talat Bang Bua Thong Branch

Tel. +66 (0) 2571-3598-9, 2571-3373-5

Fax +66 (0) 2571-7845

Talat Samrong Branch

Tel. +66 (0) 2756-8411-4

Fax +66 (0) 2756-8419

Thanon Rangsit-Pathum Thani Branch

Tel. +66 (0) 2567-2738-9

Fax +66 (0) 2567-5809

Thanon Samakkhi Branch

Tel. +66 (0) 2574-2794-5

Fax +66 (0) 2574-2793

Tha Nam Nonthaburi Branch

Tel. +66 (0) 2527-0255-60

Fax +66 (0) 2527-0254

Tha Nam Phra Pradaeng Branch

Tel. +66 (0) 2463-0488, 2463-2228

Fax +66 (0) 2464-2156

Thepharak Branch

Tel. +66 (0) 2759-6061-4, 2759-6066

Fax +66 (0) 2759-6067

Tesco Lotus Navanakhon Branch

Tel. +66 (0) 2529-6187-9

Fax +66 (0) 2909-7097

Tesco Lotus Rattana Thibet Branch

Tel. +66 (0) 2950-1160, 2950-1297

Fax +66 (0) 2950-1157

Tesco Lotus Lam Luk Ka Khlong 6

Branch

Tel. +66 (0) 2569-1694, 2569-1655

Fax +66 (0) 2998-8164

Tesco Lotus Srinagarindra Branch

Tel. +66 (0) 2175-7844-6

Fax +66 (0) 2759-9054

Nonthaburi Branch

Tel. +66 (0) 2526-3453-6

Fax +66 (0) 2526-3457

Navanakhon Branch

Tel. +66 (0) 2909-0620-3

Fax +66 (0) 2909-0625

Bang Pu Industrial Estate Branch

Tel. +66 (0) 2324-0360, 2324-0364

Fax +66 (0) 2324-0805

Bang Kruai Branch

Tel. +66 (0) 2447-2897, 2447-5095

Fax +66 (0) 2883-8619

Bang Khru Branch

Tel. +66 (0) 2817-5417-9

Fax +66 (0) 2817-5423

Bang Bua Thong Branch

Tel. +66 (0) 2571-7124, 2571-7142-3

Fax +66 (0) 2920-9603

Bang Pu Branch

Tel. +66 (0) 2323-2960-3

Fax +66 (0) 2323-2964

Bang Yai Branch

Tel. +66 (0) 2594-1143, 2594-1152

Fax +66 (0) 2594-1161

BigC Bang Phli Branch

Tel. +66 (0) 2312-2284, 2312-2300

Fax +66 (0) 2312-2321

BigC Samut Prakan Branch

Tel. +66 (0) 2702-1792-3, 2702-1859

Fax +66 (0) 2702-1982

BigC Samrong 2 Branch

Tel. +66 (0) 2380-1100-2

Fax +66 (0) 2755-0240

BigC Suk Sawat Branch

Tel. +66 (0) 2463-0992-3

Fax +66 (0) 2463-0980

Pathum Thani Branch

Tel. +66 (0) 2581-5766, 2581-6976

Fax +66 (0) 2581-6925

Pak Kret Branch

Tel. +66 (0) 2960-9928-30, 2583-7246

Fax +66 (0) 2583-7562

Pu Chao Saming Prai Branch

Tel. +66 (0) 2183-2044, 2183-2046-7

Fax +66 (0) 2183-2043

Phra Pradaeng Branch

Tel. +66 (0) 2463-3940-1, 2463-8415-7

Fax +66 (0) 2463-6897

Future Park Rangsit Branch

Tel. +66 (0) 2958-5116-9

Fax +66 (0) 2958-5121

Huachiew Chalermprakiet University

Branch

Tel. +66 (0) 2312-6600-5

Fax +66 (0) 2312-6603

Mueang Mai-Bang Phli Branch

Tel. +66 (0) 2706-0322-6

Fax +66 (0) 2706-0329

Megabangna Branch

Tel. +66 (0) 2105-1681-3

Fax +66 (0) 2105-1684

Rangsit Branch

Tel. +66 (0) 2567-1117, 2567-5586

Fax +66 (0) 2567-6694

Rangsit-Khlong 3 Branch

Tel. +66 (0) 2990-8806-8

Fax +66 (0) 2533-1659

Rattanathibet Branch

Tel. +66 (0) 2969-9040-3, 2969-9046

Fax +66 (0) 2969-9048

Paolo Memorial Hospital Samut Prakan

Branch

Tel. +66 (0) 2182-7239-41

Fax +66 (0) 2182-7243


Lam Luk Ka Branch

Tel. +66 (0) 2994-5747-51

Fax +66 (0) 2994-5753

Samut Prakan Branch

Tel. +66 (0) 2388-0099, 2395-0045

Fax +66 (0) 2395-2021

Bang Kadi Industrial Park Branch

Tel. +66 (0) 2501-1254-6

Fax +66 (0) 2501-1257

Sam Yaek Phra Pradaeng Branch

Tel. +66 (0) 2463-2156-7

Fax +66 (0) 2462-5355

Samrong Branch

Tel. +66 (0) 2396-0278-80, 2745-3482-3

Fax +66 (0) 2399-5103

Samrong Nuea Branch

Tel. +66 (0) 2384-7141, 2384-7244

Fax +66 (0) 2384-7678

Si Mum Mueang-Rangsit Branch

Tel. +66 (0) 2531-9774, 2531-3445

Fax +66 (0) 2531-9636

Nam Daeng Branch

Tel. +66 (0) 2385-2511-2, 2385-2920

Fax +66 (0) 2385-2921

Ha Yaek Pak Kret Branch

Tel. +66 (0) 2583-7574, 2583-9144

Fax +66 (0) 2584-3959

Imperial World Samrong Branch

Tel. +66 (0) 2380-2943-5, 2756-9023

Fax +66 (0) 2756-9024

Homework Ratchaphruek Branch

Tel. +66 (0) 2447-6690-2

Fax +66 (0) 2447-6693

Talat Pak Nam Branch

Tel. +66 (0) 2702-8380-4

Fax +66 (0) 2702-8388

cenTral reGion

Kabin Buri Branch

Tel. +66 (0) 3728-0796, 3728-0798

Fax +66 (0) 3728-0799

Krathum Baen Branch

Tel. +66 (0) 3447-2422, 3447-2651-2

Fax +66 (0) 3447-1511

Kanchanaburi Branch

Tel. +66 (0) 3451-5096-100

Fax +66 (0) 3451-5102

Kamphaeng Saen Branch

Tel. +66 (0) 3435-1100, 3435-1614

Fax +66 (0) 3435-1094

Kaeng Khoi Branch

Tel. +66 (0) 3624-4176, 3624-4179

Fax +66 (0) 3624-4178

304 Industrial Park Branch

Tel. +66 (0) 3741-4378-80

Fax +66 (0) 3741-4381

Khao Wang Branch

Tel. +66 (0) 3242-5350, 3242-8352

Fax +66 (0) 324-8351

Khlong Khru Branch

Tel. +66 (0) 3482-7086, 3482-7093

Fax +66 (0) 3482-7094

Cha-am Branch

Tel. +66 (0) 3243-4130-1, 3247-1158

Fax +66 (0) 3247-1185

Dan Chang Branch

Tel. +66 (0) 3559-5497-8

Fax +66 (0) 3559-5499

Damnoen Saduak Branch

Tel. +66 (0) 3225-3810-2

Fax +66 (0) 3225-3813

Talat Chao Prom Branch

Tel. +66 (0) 3524-4768, 3524-5162-3

Fax +66 (0) 3524-5441

Talat Tha Na (Nakhon Chai Si) Branch

Tel. +66 (0) 3433-1107-9

Fax +66 (0) 3433-1151

Talat Mahachai Branch

Tel. +66 (0) 3481-0287-8

Fax +66 (0) 3481-0467

Talat Suphan Buri Branch

Tel. +66 (0) 3551-1330, 3552-3882-3

Fax +66 (0) 3552-3881

Thanon Khun San (Sing Buri) Branch

Tel. +66 (0) 3651-1199, 3652-1200-1

Fax +66 (0) 3652-1202

Thanon Sai Phra (Nakhon Pathom)

Branch

Tel. +66 (0) 3425-5317-9

Fax +66 (0) 3425-4915

Thanon Songphon Branch

Tel. +66 (0) 3220-0427, 3221-1899

Fax +66 (0) 3220-0426

Thanon Bowon Branch

Tel. +66 (0) 3451-1022, 3451-2387

Fax +66 (0) 3451-1597

Suphun Buri Branch

Tel. +66 (0) 3552-1575, 3552-1963

Fax +66 (0) 3552-1964

Thanon Phahon Yothin

(Saraburi) Branch

Tel. +66 (0) 3621-1166, 3621-2420-1

Fax +66 (0) 3621-2421

Thanon Ratchawithi

(Nakhon Pathom) Branch

Tel. +66 (0) 3424-2348, 3425-1080

Fax +66 (0) 3425-1081

Thanon Setthakit 1 (Om Noi) Branch

Tel. +66 (0) 2810-4596-9

Fax +66 (0) 2810-4605

Thanon Sut Banthat (Saraburi) Branch

Tel. +66 (0) 3631-4512

Fax +66 (0) 3631-5404

Thanon Amarin (Ratchaburi) Branch

Tel. +66 (0) 3233-7142, 3232-5802-5

Fax +66 (0) 3232-5801

Thanon Ekkachai (Samut Sakhon)

Branch

Tel. +66 (0) 3441-1127, 3441-1225-6

Fax +66 (0) 3442-5204

Thong Pha Phum Branch

Tel. +66 (0) 3459-9073, 3459-9352

Fax +66 (0) 3459-9613

Tha Muang Branch

Tel. +66 (0) 3461-1119, 3461-1403

Fax +66 (0) 3461-2419

Tha Yang Branch

Tel. +66 (0) 3246-1445-6, 3246-1823-4

Fax +66 (0) 3246-1447


Tha Ruea-Kanchanaburi Branch

Tel. +66 (0) 3456-1130, 3456-1040

Fax +66 (0) 3456-2073

Tha Ruea-Ayutthaya Branch

Tel. +66 (0) 3534-1019, 3534-1029

Fax +66 (0) 3534-1795

Thung Khok Branch

Tel. +66 (0) 3556-8086-7

Fax +66 (0) 3556-8069

Tesco Lotus Mahachai Branch

Tel. +66 (0) 3482-6231, 3482-6060

Fax +66 (0) 3442-1356

Nakhon Chai Si Branch

Tel. +66 (0) 3433-1350-1

Fax +66 (0) 3433-1349

Nakhon Nayok Branch

Tel. +66 (0) 3731-1131, 3731-2608-9

Fax +66 (0) 3731-2610

Nakhon Pathom Branch

Tel. +66 (0) 3421-9131

Fax +66 (0) 3421-9160

Bang Sai Branch

Tel. +66 (0) 3528-2118-20, 3537-5226

Fax +66 (0) 3537-5144

Bang Pahan Branch

Tel. +66 (0) 3538-1023-5

Fax +66 (0) 3538-1026

Bang Len Branch

Tel. +66 (0) 3439-1026-9

Fax +66 (0) 3439-1030

Ban Pong Branch

Tel. +66 (0) 3220-0429-31, 3221-1993

Fax +66 (0) 3221-1035

Ban Phaeo Branch

Tel. +66 (0) 3448-1088, 3448-1099

Fax +66 (0) 3448-1606

Ban Mo Branch

Tel. +66 (0) 3620-1141, 3620-1391-2

Fax +66 (0) 3620-1142

BigC Lop Buri 2 Branch

Tel. +66 (0) 3678-0731-4

Fax +66 (0) 3678-0736

Prachuap Khiri Khan Branch

Tel. +66 (0) 3260-4464-7

Fax +66 (0) 3260-4468

Prachin Buri Branch

Tel. +66 (0) 3721-1300, 3721-3855-9

Fax +66 (0) 3721-3080

Pran Buri Branch

Tel. +66 (0) 3262-1643, 3262-2373-4

Fax +66 (0) 3262-2055

Pak Phriao Branch

Tel. +66 (0) 3621-1833-4, 3622-1286

Fax +66 (0) 3622-1884

Phra Pathom Chedi Branch

Tel. +66 (0) 3425-4203-5, 3421-3541

Fax +66 (0) 3425-9131

Phutthamonthon Sai 4 Branch

Tel. +66 (0) 2420-0444, 2420-5964

Fax +66 (0) 2813-1116

Phetchaburi Branch

Tel. +66 (0) 3242-7023-5

Fax +66 (0) 3241-5455

Photharam Branch

Tel. +66 (0) 3223-1089, 3223-1255

Fax +66 (0) 3223-1090

Pho Hak Branch

Tel. +66 (0) 3238-7021-2

Fax +66 (0) 3238-7023

Mahachai Mueang Mai Branch

Tel. +66 (0) 3481-2620-4

Fax +66 (0) 3442-6989

Ratchaburi Branch

Tel. +66 (0) 3231-1203-5

Fax +66 (0) 3231-1207

Phetcharat Hospital (Phetchaburi)

Branch

Tel. +66 (0) 3241-0505-6, 3241-0514

Fax +66 (0) 3240-0618

Rojana Branch

Tel. +66 (0) 3521-3892-4, 3524-4381

Fax +66 (0) 3524-2136

Robinson Ratchaburi Branch

Tel. +66 (0) 3232-7711-3

Fax +66 (0) 3232-7714

Robinson Suphan Buri Branch

Tel. +66 (0) 3545-4360-2

Fax +66 (0) 3545-4364

Lop Buri Branch

Tel. +66 (0) 3641-1233, 3641-1595

Fax +66 (0) 3642-1023

Lat Bua Luang Branch

Tel. +66 (0) 3537-9290-1

Fax +66 (0) 3537-9292

Wang Nam Yen Branch

Tel. +66 (0) 3725-1543-7

Fax +66 (0) 3725-1546

Wang Sombun Branch

Tel. +66 (0) 3744-9193-4

Fax +66 (0) 3744-9195

Wat Thian Dat Branch

Tel. +66 (0) 2429-0216, 2429-0813

Fax +66 (0) 2429-0847

Wiset Chai Chan Branch

Tel. +66 (0) 3563-2801-4

Fax +66 (0) 3563-2805

Si Prachan Branch

Tel. +66 (0) 3558-1150, 3558-1160

Fax +66 (0) 3558-1140

Salaya Branch

Tel. +66 (0) 2441-4557-9

Fax +66 (0) 2441-4560

Samut Songkhram Branch

Tel. +66 (0) 3471-1361, 3471-1444

Fax +66 (0) 3471-5555

Samut Sakhon Branch

Tel. +66 (0) 3482-0359-60

Fax +66 (0) 3482-0445

Sa Kaeo Branch

Tel. +66 (0) 3724-1061, 3724-1585-6

Fax +66 (0) 3724-1062

Saraburi Branch

Tel. +66 (0) 3621-8500

Fax +66 (0) 3631-6601

Rojana Industrial Park Ayutthaya Branch

Tel. +66 (0) 3571-9710-2

Fax +66 (0) 3533-1651


Song Phi Nong Branch

Tel. +66 (0) 3553-2890-3

Fax +66 (0) 3553-2894

Sam Chuk Branch

Tel. +66 (0) 3557-1644, 3557-1655

Fax +66 (0) 3557-1099

Sam Phran Branch

Tel. +66 (0) 3432-2781, 3432-2783

Fax +66 (0) 3432-2782

Sing Buri Branch

Tel. +66 (0) 3653-0410, 3653-0413

Fax +66 (0) 3651-2021

Sena Branch

Tel. +66 (0) 3520-1035, 3520-1291

Fax +66 (0) 3520-1749

Nong Khae Branch

Tel. +66 (0) 3637-1504, 3637-1517

Fax +66 (0) 3637-1516

Hua Hin Branch

Tel. +66 (0) 3251-1098, 3251-2218

Fax +66 (0) 3251-2219

Ayutthaya Branch

Tel. +66 (0) 3525-2431-6, 3525-2359

Fax +66 (0) 3525-2437

Ayutthaya Park Branch

Tel. +66 (0) 3522-9560-1

Fax +66 (0) 3522-9554

Aranyapraphet Branch

Tel. +66 (0) 3722-3505-7

Fax +66 (0) 3722-3511

Om Noi Branch

Tel. +66 (0) 2420-1450, 2420-1811

Fax +66 (0) 2420-1132

Om Yai Branch

Tel. +66 (0) 2420-4920, 2420-4930

Fax +66 (0) 2811-6538

Amphawa Branch

Tel. +66 (0) 3475-1177-8, 3475-1640-1

Fax +66 (0) 3475-1642

Ang Thong Branch

Tel. +66 (0) 3561-1099, 3561-2301-3

Fax +66 (0) 3561-1100

Kabin Buri Industrial (Nongki) Branch

Tel. +66 (0) 3745-5428-9

Fax +66 (0) 3745-5439

U Thong Branch

Tel. +66 (0) 3555-1299, 3555-1618

Fax +66 (0) 3555-1868

norThern reGion

Kamphaeng Phet Branch

Tel. +66 (0) 5571-3325-6

Fax +66 (0) 5571-3368

Khuang Sing Branch

Tel. +66 (0) 5321-0826-8, 5321-6586

Fax +66 (0) 5322-2718

Bhumibol Dam Branch

Tel. +66 (0) 5554-9598-9, 5559-9004-5

Fax +66 (0) 5559-9021

Chong Khae Branch

Tel. +66 (0) 5626-9163, 5626-9128-30

Fax +66 (0) 5626-9127

Chai Nat Branch

Tel. +66 (0) 5641-6650-3

Fax +66 (0) 5641-6654

Central Plaza Phitsanulok Branch

Tel. +66 (0) 5533-8412-4

Fax +66 (0) 5521-6612

Central Airport Chiang Mai Branch

Tel. +66 (0) 5320-1234

Fax +66 (0) 5320-1900

Central Plaza Chiang Rai Branch

Tel. +66 (0) 5317-9928-30

Fax +66 (0) 5375-4496

Talat Varorot Branch

Tel. +66 (0) 5387-4018-9, 5387-4002

Fax +66 (0) 5387-4006

Tak Branch

Tel. +66 (0) 5551-1275, 5551-1360

Fax +66 (0) 5551-3486

Takhli Branch

Tel. +66 (0) 5626-1093, 5626-1133

Fax +66 (0) 5626-2383

Thanon Chang Chlan (Chiang Mai)

Branch

Tel. +66 (0) 5382-0538-41

Fax +66 (0) 5382-0543

Thanon Nimmanhemin Branch

Tel. +66 (0) 5322-5483, 5340-0672-4

Fax +66 (0) 5340-0675

Thanon Barom Trai Lokanart 2

(Phitsanulok) Branch

Tel. +66 (0) 5521-8645-9

Fax +66 (0) 5521-8648

Thanon Bunyawat Branch

Tel. +66 (0) 5421-7444, 5421-7666

Fax +66 (0) 5422-4667

Thanon Wet Suwan (Nakhon Sawan)

Branch

Tel. +66 (0) 5622-2998, 5622-7835

Fax +66 (0) 5623-1462

Thanon Sueksa Charoen

(Phetchabun) Branch

Tel. +66 (0) 5674-4076-8

Fax +66 (0) 5672-2415

Thanon Ekathossaros (Phitsanulok)

Branch

Tel. +66 (0) 5524-3871-2, 5525-9322

Fax +66 (0) 5524-4268

Tha Phae Branch

Tel. +66 (0) 5323-5755

Fax +66 (0) 5323-5757

Tesco Lotus Phitsanulok Branch

Tel. +66 (0) 5525-3701-3

Fax +66 (0) 5525-3705

Nakhon Sawan Branch

Tel. +66 (0) 5631-3848

Fax +66 (0) 5631-3850

Nan Branch

Tel. +66 (0) 5471-1095-9

Fax +66 (0) 5471-1098

Lamphun Industrial Estate Branch

Tel. +66 (0) 5358-1662-3

Fax +66 (0) 5358-1664

Bo Sang Branch

Tel. +66 (0) 5333-7004-6

Fax +66 (0) 5333-7007


BigC Kamphaeng Phet Branch

Tel. +66 (0) 5585-3928-30

Fax +66 (0) 5585-3932

BigC Chiang Mai Branch

Tel. +66 (0) 5324-1248-9, 5324-1336

Fax +66 (0) 5324-1337

BigC Hang Dong Branch

Tel. +66 (0) 5380-4094, 5380-4092

Fax +66 (0) 5380-4086

Pak Nam Pho Branch

Tel. +66 (0) 5621-2082, 5621-3388

Fax +66 (0) 5621-3516

Phran Kratai Branch

Tel. +66 (0) 5576-2111-2

Fax +66 (0) 5576-2113

Phayao Branch

Tel. +66 (0) 5443-1124, 5448-2386-8

Fax +66 (0) 5443-1272

Phichit Branch

Tel. +66 (0) 5661-1033, 5661-1651

Fax +66 (0) 5661-1127

Phitsanulok Branch

Tel. +66 (0) 5530-4313

Fax +66 (0) 5530-4279

Phetchabun Branch

Tel. +66 (0) 5672-3103

Fax +66 (0) 5672-3104

Phrae Branch

Tel. +66 (0) 5452-2004, 5452-2006

Fax +66 (0) 5452-2005

Phaisali Branch

Tel. +66 (0) 5625-9721-2

Fax +66 (0) 5625-9723

Mae Sot Branch

Tel. +66 (0) 5553-3311-3, 5553-3319

Fax +66 (0) 5553-3320

Mae Sai Branch

Tel. +66 (0) 5373-1675, 5373-1879

Fax +66 (0) 5373-1905

Mae Hong Son Branch

Tel. +66 (0) 5361-4441-2, 5361-4444-5

Fax +66 (0) 5361-4443

McCormick Hospital (Chiang Mai)

Branch

Tel. +66 (0) 5326-1218-9, 5330-0421

Fax +66 (0) 5326-1123

Lampang Branch

Tel. +66 (0) 5431-8927-9, 5431-8930

Fax +66 (0) 5431-8960

Lamphun Branch

Tel. +66 (0) 5351-0371, 5351-2060-1

Fax +66 (0) 5351-0372

Wang Chao Branch

Tel. +66 (0) 5555-6059, 5555-6061

Fax +66 (0) 5555-6063

Sawankhalok Branch

Tel. +66 (0) 5564-1478-9, 5564-2512

Fax +66 (0) 5564-1480

San Sai Branch

Tel. +66 (0) 5349-1457, 5349-1928

Fax +66 (0) 5349-1728

San Pa Khoi Branch

Tel. +66 (0) 5324-4157, 5324-9167-8

Fax +66 (0) 5324-1157

Sukhothai Branch

Tel. +66 (0) 5561-6022, 5562-2465-6

Fax +66 (0) 5562-2469

Nong Ben Branch

Tel. +66 (0) 5629-6163-5

Fax +66 (0) 5629-6166

Lom Kao Branch

Tel. +66 (0) 5670-8492-3

Fax +66 (0) 5670-8494

Lom Sak Branch

Tel. +66 (0) 5670-1540, 5670-1878

Fax +66 (0) 5670-4513

Hankha Branch

Tel. +66 (0) 5645-1040, 5645-1042

Fax +66 (0) 5645-1499

Hang Dong Branch

Tel. +66 (0) 5343-4035-7

Fax +66 (0) 5343-4038

Hang Nam Sakorn Branch

Tel. +66 (0) 5643-1232-3

Fax +66 (0) 5643-1234

Ha Yaek Phokhun Mengrai

(Chiang Rai) Branch

Tel. +66 (0) 5374-5244-5

Fax +66 (0) 5374-5247

Uttaradit Branch

Tel. +66 (0) 5544-1777, 5544-2240

Fax +66 (0) 5541-4096

Uthai Thani Branch

Tel. +66 (0) 5657-1616-9

Fax +66 (0) 5657-1620

Happy Plaza (Phichit) Branch

Tel. +66 (0) 5661-6471-4

Fax +66 (0) 5665-0987

norTh eaSTern reGion

Kalasin Branch

Tel. +66 (0) 4382-1080-1

Fax +66 (0) 4381-6584

Khon Kaen Branch

Tel. +66 (0) 4332-4321, 4322-6888

Fax +66 (0) 4332-5919

Chaiyaphum Branch

Tel. +66 (0) 4481-3251-5

Fax +66 (0) 4481-3253

Chum Phae Branch

Tel. +66 (0) 4331-1684, 4331-2292

Fax +66 (0) 4331-2395

Central Plaza Khon Kaen Branch

Tel. +66 (0) 4328-8361-3

Fax +66 (0) 4328-8365

Central Plaza Udon Thani Branch

Tel. +66 (0) 4292-1346-7

Fax +66 (0) 4292-1369

The Mall Nakhon Ratchasima Branch

Tel. +66 (0) 4439-3931-3

Fax +66 (0) 4439-3934

Talat Thetsaban Maha Sarakham

Branch

Tel. +66 (0) 4372-5485, 4372-5661

Fax +66 (0) 4372-3692

Talat Pak Chong Branch

Tel. +66 (0) 4431-3798-9, 4431-3855-6

Fax +66 (0) 4431-3255


Thanon Klang Mueang (Khon Kaen)

Branch

Tel. +66 (0) 4322-8266, 4332-2630

Fax +66 (0) 4332-2386

Thanon Kuang Heng (Si Sa Ket) Branch

Tel. +66 (0) 4561-7861-4

Fax +66 (0) 4561-7860

Thanon Prachak (Nong Khai) Branch

Tel. +66 (0) 4241-2890-4

Fax +66 (0) 4241-2895

Thanon Mittraphap

(Nakhon Ratchasima) Branch

Tel. +66 (0) 4425-9003-4, 4425-1376

Fax +66 (0) 4425-9002

Thanon Si Chan Branch

Tel. +66 (0) 4322-7275-8

Fax +66 (0) 4322-7279

Thanon Sappasit Branch

Tel. +66 (0) 4524-4315, 4524-4729

Fax +66 (0) 4524-3193

Thanon Suranari Branch

Tel. +66 (0) 4424-2560, 4424-2904

Fax +66 (0) 4425-6706

Thanon Na Mueang (Khon Kaen) Branch

Tel. +66 (0) 4322-1163, 4322-3234

Fax +66 (0) 4322-1822

Thanon Hai Srok (Roi Et) Branch

Tel. +66 (0) 4352-3335-7

Fax +66 (0) 4352-3339

Thanon Udon Dutsadi Branch

Tel. +66 (0) 4224-7574, 4224-7732

Fax +66 (0) 4224-7510

Tesco Lotus Khorat Branch

Tel. +66 (0) 4426-3564, 4426-3567

Fax +66 (0) 4426-3565

Tesco Lotus Chaiyaphum Branch

Tel. +66 (0) 4483-8324-6

Fax +66 (0) 4481-3352

Nakhon Phanom Branch

Tel. +66 (0) 4251-6125-8

Fax +66 (0) 4251-6129

Nakhon Ratchasima Branch

Tel. +66 (0) 4426-9797

Fax +66 (0) 4426-9790

Nang Rong Branch

Tel. +66 (0) 4463-1049, 4463-1586-8

Fax +66 (0) 4463-1050

Ban Phai Branch

Tel. +66 (0) 4327-4038-40

Fax +66 (0) 4327-4043

BigC Buri Ram Branch

Tel. +66 (0) 4469-0450, 4469-0458

Fax +66 (0) 4469-0469

BigC Yasothon Branch

Tel. +66 (0) 4572-4361, 4572-4376

Fax +66 (0) 4572-5067

BigC Udon Thani Branch

Tel. +66 (0) 4212-8551-3

Fax +66 (0) 4212-8548

Buri Ram Branch

Tel. +66 (0) 4460-1555, 4460-2000

Fax +66 (0) 4460-2123

Pak Chong Branch

Tel. +66 (0) 4431-6866-9

Fax +66 (0) 4431-6859

Maha Sarakham Branch

Tel. +66 (0) 4374-0681-3

Fax +66 (0) 4372-2958

Mukdahan Branch

Tel. +66 (0) 4263-1367-70

Fax +66 (0) 4263-1374

Yasothon Branch

Tel. +66 (0) 4571-4051-6

Fax +66 (0) 4571-4054

Loei Branch

Tel. +66 (0) 4283-0851-3

Fax +66 (0) 4281-4472

Wang Sam Mo Branch

Tel. +66 (0) 4238-7486-7

Fax +66 (0) 4238-7488

Warin Chamrap Branch

Tel. +66 (0) 4532-2788, 4532-2791-3

Fax +66 (0) 4532-2790

Si Sa Ket Branch

Tel. +66 (0) 4562-0500-2

Fax +66 (0) 4564-4197

Sakon Nakhon Branch

Tel. +66 (0) 4271-6446-50

Fax +66 (0) 4271-6451

Sang Khom Branch

Tel. +66 (0) 4227-6222-4

Fax +66 (0) 4227-6225

Sam Yaek Pak Thong Chai Branch

Tel. +66 (0) 4421-3993-5, 4428-1815-6

Fax +66 (0) 4421-3994

Surin Branch

Tel. +66 (0) 4451-4455-8

Fax +66 (0) 4451-4459

Surin Plaza Branch

Tel. +66 (0) 4453-8517-20

Fax +66 (0) 4453-8521

Suwannakhuha Branch

Tel. +66 (0) 4237-2515-6

Fax +66 (0) 4237-2517

Nong Khai Branch

Tel. +66 (0) 4246-0119-22

Fax +66 (0) 4246-0199

Nong Bua Lam Phu Branch

Tel. +66 (0) 4231-1107, 4231-1166

Fax +66 (0) 4231-1657

Ha Yaek Nampu (Udon Thani) Branch

Tel. +66 (0) 4222-1703, 4224-7211-2

Fax +66 (0) 4224-7209

Thao Suranari Monument Branch

Tel. +66 (0) 4424-1774-5

Fax +66 (0) 4424-1776

Amnat Charoen Branch

Tel. +66 (0) 4551-1721-4

Fax +66 (0) 4551-1726

Udon Thani Branch

Tel. +66 (0) 4234-2550

Fax +66 (0) 4234-2398

Ubon Ratchathani Branch

Tel. +66 (0) 4531-9401-3

Fax +66 (0) 4531-9405


eaSTern reGion

Ko Chang Branch

Tel. +66 (0) 3955-1026-9

Fax +66 (0) 3955-1030

Klaeng Branch

Tel. +66 (0) 3888-7003-9

Fax +66 (0) 3867-8002

Chanthaburi Branch

Tel. +66 (0) 3934-4323-6

Fax +66 (0) 3934-4327

Chachoengsao Branch

Tel. +66 (0) 3851-5835-7

Fax +66 (0) 3851-5838

Chon Buri Branch

Tel. +66 (0) 3827-6930-7

Fax +66 (0) 3827-6935

Central Chon Buri Branch

Tel. +66 (0) 3805-3531-3

Fax +66 (0) 3805-3535

Central Center Pattaya Branch

Tel. +66 (0) 3841-4852-5

Fax +66 (0) 3841-4846

Central Festival Pattaya Beach Branch

Tel. +66 (0) 3800-3571-3

Fax +66 (0) 3804-3194

Trat Branch

Tel. +66 (0) 3953-1641-3

Fax +66 (0) 3952-2662

Thanon Khwang (Chanthaburi) Branch

Tel. +66 (0) 3932-5925, 3932-2048

Fax +66 (0) 3932-5926

Thanon Chetchamnong (Chon Buri)

Branch

Tel. +66 (0) 3879-2203-5

Fax +66 (0) 3879-2178

Thanon Phraya Satcha (Chon Buri)

Branch

Tel. +66 (0) 3879-2214-5

Fax +66 (0) 3879-2216

Thanon Sukhumwit (Chon Buri) Branch

Tel. +66 (0) 3879-6066, 3879-5639

Fax +66 (0) 3827-7841

Thanon Sukhumwit (Rayong) Branch

Tel. +66 (0) 3861-4913-4

Fax +66 (0) 3861-2342

Thanon Sukhumwit (Si Racha) Branch

Tel. +66 (0) 3877-3415-20

Fax +66 (0) 3877-3421

Thanon Surasak 1 (Si Racha) Branch

Tel. +66 (0) 3831-1872-3, 3831-2206-7

Fax +66 (0) 3831-1871

Tesco Lotus Bo Win Branch

Tel. +66 (0) 3811-7133-5

Fax +66 (0) 3811-7136

Tesco Lotus Pattaya Nuea Branch

Tel. +66 (0) 3841-1410, 3841-1316

Fax +66 (0) 3841-1423

Na Kluea (Pattaya) Branch

Tel. +66 (0) 3822-6060-61

Fax +66 (0) 3822-6117

Nikhom Phatthana Branch

Tel. +66 (0) 3863-6090-1

Fax +66 (0) 3863-6092

Bang Pla Soi Branch

Tel. +66 (0) 3827-1819, 3827-6651

Fax +66 (0) 3827-6652

Ban Bueng Branch

Tel. +66 (0) 3844-3060-1, 3844-4015-6

Fax +66 (0) 3844-3713

Ban Phe Branch

Tel. +66 (0) 3865-1995, 3865-1997

Fax +66 (0) 3865-1993

BigC Chachoengsao 2 Branch

Tel. +66 (0) 3851-5188, 3851-5190

Fax +66 (0) 3851-5219

BigC Chon Buri 2 Branch

Tel. +66 (0) 3878-3032-4

Fax +66 (0) 3838-7923

BigC Pattaya Tai Branch

Tel. +66 (0) 3837-4270, 3837-4273

Fax +66 (0) 3837-4463

BigC Rayong Branch

Tel. +66 (0) 3887-3094, 3887-3301

Fax +66 (0) 3862-2659

BigC Sa Kaeo Branch

Tel. +66 (0) 3742-1761-3

Fax +66 (0) 3742-1765

Pluak Daeng Branch

Tel. +66 (0) 3865-9768-9

Fax +66 (0) 3865-9770

Pacific Park (Si Racha) Branch

Tel. +66 (0) 3831-3226, 3831-3236

Fax +66 (0) 3831-3245

Pranom Sarakham Branch

Tel. +66 (0) 3855-1005, 3855-1824-6

Fax +66 (0) 3855-1659

Pattaya Branch

Tel. +66 (0) 3872-0334, 3872-0339

Fax +66 (0) 3842-9973

Pattaya Nuea Branch

Tel. +66 (0) 3842-8901-2, 3842-8905

Fax +66 (0) 3842-8963

Map Ta Phut Branch

Tel. +66 (0) 3868-2531-3

Fax +66 (0) 3868-1995

Rayong Branch

Tel. +66 (0) 3886-4123, 3886-4114

Fax +66 (0) 3886-4115

Si Racha Branch

Tel. +66 (0) 3877-1686-9

Fax +66 (0) 3877-1690

Saha Pathana Industrial Park

(Si Racha) Branch

Tel. +66 (0) 3848-1826-8

Fax +66 (0) 3848-1829

Sattahip Branch

Tel. +66 (0) 3843-7321, 3843-7986

Fax +66 (0) 3843-7717

Sam Yaek Klaeng Branch

Tel. +66 (0) 3888-4503-5

Fax +66 (0) 3888-4506

Nong Mon Branch

Tel. +66 (0) 3839-2302, 3839-2125

Fax +66 (0) 3839-2501

Nong Mon (Chon Buri) Branch

Tel. +66 (0) 3874-5233, 3874-5239

Fax +66 (0) 3874-6349


Huai Sathon Branch

Tel. +66 (0) 3939-5381-3

Fax +66 (0) 3939-5384

Hat Pattaya (Nuea) Branch

Tel. +66 (0) 3841-5772-4, 3841-5884

Fax +66 (0) 3841-5885

Laem Chabang Branch

Tel. +66 (0) 3840-0740-3

Fax +66 (0) 3840-0745

Laem Thong Rayong Branch

Tel. +66 (0) 3802-3405-7

Fax +66 (0) 3802-3409

Laem Thong Bang Saen Branch

Tel. +66 (0) 3815-3930-1

Fax +66 (0) 3815-3994

SouThern reGion

Krabi Branch

Tel. +66 (0) 7563-2838-41

Fax +66 (0) 7563-2835

Kantang Branch

Tel. +66 (0) 7525-1250, 7525-1640

Fax +66 (0) 7525-1644

Ko Tao Branch

Tel. +66 (0) 7745-6533-4

Fax +66 (0) 7745-6784

Ko Pha-ngan Branch

Tel. +66 (0) 7737-7051, 7723-8186-7

Fax +66 (0) 7737-7052

Ko Lanta Branch

Tel. +66 (0) 7566-8152

Fax +66 (0) 7566-8151

Ko Samui Branch

Tel. +66 (0) 7742-1110-1, 7742-0363

Fax +66 (0) 7742-1112

Khao Lak Branch

Tel. +66 (0) 7648-5493-4

Fax +66 (0) 7648-5560

Khian Sa Branch

Tel. +66 (0) 7738-7407-8

Fax +66 (0) 7738-7409

Central Festival Phuket Branch

Tel. +66 (0) 7620-9290, 7620-9292

Fax +66 (0) 7620-9291

Central Hat Yai Branch

Tel. +66 (0) 7423-9010

Fax +66 (0) 7423-0414

Diana Si Phuwanart Branch

Tel. +66 (0) 7446-5316-8

Fax +66 (0) 7446-5319

Trang Branch

Tel. +66 (0) 7522-3240-3

Fax +66 (0) 7522-3244

Talat Tha Phae

(Nakhon Si Thammarat) Branch

Tel. +66 (0) 7538-3271, 7538-3316

Fax +66 (0) 7538-3110

Takua Pa Branch

Tel. +66 (0) 7642-5176, 7643-1503-5

Fax +66 (0) 7642-5177

Thanon Chuti Uthit (Hat Yai) Branch

Tel. +66 (0) 7434-6396-8

Fax +66 (0) 7434-6393

Thanon Chon Kasem (Surat Thani)

Branch

Tel. +66 (0) 7728-3627-30

Fax +66 (0) 7728-4080

Thanon Thawi Wong (Hat Patong)

Branch

Tel. +66 (0) 7629-2116-8

Fax +66 (0) 7634-5687

Thanon Thammanun Withi (Hat Yai)

Branch

Tel. +66 (0) 7423-5549, 7435-5396-7

Fax +66 (0) 7424-3648

Thanon Niphat Uthit 1 Branch

Tel. +66 (0) 7424-4898-9

Fax +66 (0) 7423-2485

Thanon Montri Branch

Tel. +66 (0) 7621-2993, 7621-2999

Fax +66 (0) 7621-3149

Thanon Ratthakan (Hat Yai) Branch

Tel. +66 (0) 7434-9070-2, 7426-1751

Fax +66 (0) 7426-1752

Thanon Ratsada (Phuket) Branch

Tel. +66 (0) 7621-9664, 7625-6873-5

Fax +66 (0) 7621-9731

Thanon Ratchadamnoen


Tel. +66 (0) 7534-2779-80

Fax +66 (0) 7535-6741

Thanon Ramet (Phatthalung) Branch

Tel. +66 (0) 7462-6952-4

Fax +66 (0) 7461-5451

Thanon Si Wichai (Surat Thani) Branch

Tel. +66 (0) 7720-6488, 7726-4170-1

Fax +66 (0) 7720-6671

Thanon Sala Daeng (Chumphon) Branch

Tel. +66 (0) 7750-5051-2

Fax +66 (0) 7750-5054

Thanon Sai Buri (Songkhla) Branch

Tel. +66 (0) 7431-1638, 7432-3735-6

Fax +66 (0) 7431-3543

Thalang Branch

Tel. +66 (0) 7631-1020, 7631-1040

Fax +66 (0) 7631-1433

Thap Thiang (Trang) Branch

Tel. +66 (0) 7521-8059, 7521-1321

Fax +66 (0) 7521-1320

Thai Mueang Branch

Tel. +66 (0) 7657-1234-7

Fax +66 (0) 7657-1215

Tha Ruea Bang Rak (Ko Samui) Branch

Tel. +66 (0) 7741-7184

Fax +66 (0) 7741-7185

Tha Wang (Nakhon Si Thammarat)

Branch

Tel. +66 (0) 7531-3144-6

Fax +66 (0) 7535-7067

Thung Song Branch

Tel. +66 (0) 7541-1087, 7541-1287

Fax +66 (0) 7541-1054

Tesco Lotus Krabi Branch

Tel. +66 (0) 7565-0833, 7565-0836-7

Fax +66 (0) 7565-0834

Tesco Lotus Chao Fa (Phuket) Branch

Tel. +66 (0) 7626-8059-61

Fax +66 (0) 7621-9248

Tesco Lotus Choeng Thale (Phuket)

Branch

Tel. +66 (0) 7632-5919-21

Fax +66 (0) 7627-0572

Tesco Lotus Chumphon Branch

Tel. +66 (0) 7765-9930-2

Fax +66 (0) 7765-9933


Tesco Lotus Thung Song Branch

Tel. +66 (0) 7541-3003-5

Fax +66 (0) 7541-3007

Tesco Lotus Phuket Branch

Tel. +66 (0) 7625-5472-4

Fax +66 (0) 7652-3400

Tesco Lotus Ranong Branch

Tel. +66 (0) 7782-6636-8

Fax +66 (0) 7782-6640

Nakhon Si Thammarat Branch

Tel. +66 (0) 7532-2689-90

Fax +66 (0) 7532-2144

Narathiwat Branch

Tel. +66 (0) 7351-2013, 7351-1030

Fax +66 (0) 7351-2014

Ban Don Branch

Tel. +66 (0) 7721-0365, 7727-2006

Fax +66 (0) 7721-0366

Ban Na Doem Branch

Tel. +66 (0) 7735-9013, 7735-9067

Fax +66 (0) 7735-9014

BigC Pattani Branch

Tel. +66 (0) 7333-8004, 7331-3982-3

Fax +66 (0) 7333-8005

BigC Satun Branch

Tel. +66 (0) 7472-5251-3

Fax +66 (0) 7472-5254

BigC Hat Yai 2 Branch

Tel. +66 (0) 7446-9235-7

Fax +66 (0) 7455-5609

Betong Branch

Tel. +66 (0) 7323-1120, 7323-1416

Fax +66 (0) 7323-0914

Pattani Branch

Tel. +66 (0) 7333-5950-1, 7333-1851

Fax +66 (0) 7333-5949

Pak Phanang Branch

Tel. +66 (0) 7551-7132, 7551-7298

Fax +66 (0) 7551-8021

Patong Branch

Tel. +66 (0) 7629-0585-7

Fax +66 (0) 7629-0588

Phang-nga Branch

Tel. +66 (0) 7641-1295, 7641-1527-8

Fax +66 (0) 7641-1326

Phatthalung Branch

Tel. +66 (0) 7461-3082, 7461-3951-2

Fax +66 (0) 7461-1918

Phunphin Branch

Tel. +66 (0) 7731-1449, 7731-2368-70

Fax +66 (0) 7731-1537

Phuket Branch

Tel. +66 (0) 7626-1570-5

Fax +66 (0) 7626-1576

Mae Nam Branch

Tel. +66 (0) 7724-8375, 7733-2259

Fax +66 (0) 7733-2260

Yala Branch

Tel. +66 (0) 7321-2592, 7321-3375

Fax +66 (0) 7321-1691

Yan Ta Khao Branch

Tel. +66 (0) 7528-1003, 7528-1101

Fax +66 (0) 7528-1102

Ranong Branch

Tel. +66 (0) 7781-1198, 7781-1299

Fax +66 (0) 7781-1751

Robinson Trang Branch

Tel. +66 (0) 7559-0018-9, 7559-0120

Fax +66 (0) 7522-6157

Robinson Ocean


Tel. +66 (0) 7534-1875, 7534-1960-1

Fax +66 (0) 7534-1876

Songkhla Branch

Tel. +66 (0) 7444-1198-9, 7444-1232

Fax +66 (0) 7444-1233

Sam Kong (Phuket) Branch

Tel. +66 (0) 7621-2077, 7622-2838-40

Fax +66 (0) 7622-2841

Sai Buri Branch

Tel. +66 (0) 7341-1021, 7341-1314-5

Fax +66 (0) 7341-1138

Surat Thani Branch

Tel. +66 (0) 7721-4581-7

Fax +66 (0) 7721-3560

Su-ngai Kolok Branch

Tel. +66 (0) 7361-1359, 7361-1002

Fax +66 (0) 7361-3632

Lang Suan Branch

Tel. +66 (0) 7754-1965, 7758-1417-8

Fax +66 (0) 7754-1987

Huai Yot Branch

Tel. +66 (0) 7523-5033-5, 7527-1013

Fax +66 (0) 7527-1064

Hat Karon Branch

Tel. +66 (0) 7639-6981, 7639-6485-6

Fax +66 (0) 7639-6980

Hat Chaweng Branch

Tel. +66 (0) 7723-0405, 7723-1089-90

Fax +66 (0) 7742-2051

Hat Rin Branch

Tel. +66 (0) 7737-5254, 7737-5477

Fax +66 (0) 7737-5476

Hat Lamai Branch

Tel. +66 (0) 7745-8159-60, 7745-8162-4

Fax +66 (0) 7745-8161

Hat Yai Branch

Tel. +66 (0) 7435-4690

Fax +66 (0) 7435-4696

Hat Yai Nai Branch

Tel. +66 (0) 7436-1313-5

Fax +66 (0) 7425-9704

Ha Yaek Chalong (Phuket) Branch

Tel. +66 (0) 7638-3222, 7638-3431

Fax +66 (0) 7638-3348

Ao Nang Branch

Tel. +66 (0) 7566-1434, 7566-1430-2

Fax +66 (0) 7566-1433

Ao Luek Branch

Tel. +66 (0) 7561-0739, 7563-4335-7

Fax +66 (0) 7561-0755

Wiang Sa Branch

Tel. +66 (0) 7736-1461-2, 7736-3550

Fax +66 (0) 7725-7268

Tesco Lotus Songkhla Branch

Tel. +66 (0) 7430-7937-9

Fax +66 (0) 7435-2735


Summary oF SPeciFied iTemS Per Form 56-2

in 2013 annual rePorT

Pageitems

1. Policy and Overall Business Operation 028

2. Nature of Business Operations 033

3. Risk Factors 046

4. General and Other Key Information 256

5. Shareholders 262

6. Dividend Payment Policy 263

7. Management Structures 227

8. Corporate Governance 213

9. Corporate Social Responsibility 058

10. Internal Control and Risk Management 224

11. Related Transactions 223

12. Financial Highlight 002

13. Management Discussion and Analysis 016

002 FinancialHighlights

010 MessagefromtheBoardofDirectors

014 BoardofDirectorsThanachartBankPublicCompanyLimited

016 ManagementDiscussionandAnalysis

028 NatureofBusinessOperations

046 RiskFactors

058 CorporateSocialResponsibility(CSR)

068 ResponsibilitiesoftheBoardofDirectorsfortheFinancialReport

069 ReportoftheAuditCommittee

071 IndependentAuditor’sReport

073 FinancialStatementsandNotetoFinancialStatements

213 CorporateGovernance

224 InternalControlandRiskManagement

226 ReportoftheNominationandRemunerationCommittee

227 SupervisionandManagementStructure

236 BoardofDirectorsandManagementTeam

256 GeneralInformation

InvestmentofTBANKinOtherCompanies

TBANK’sReferences

OtherReferences

StructureofMajorShareholders

DividendPaymentPolicy

CompaniesinThanachartFinancialGroup

BranchesofTBANK

280 SummaryofSpecifiedItemsperform56-2in2013AnnualReport

“Investorscanlearnmoreontheissuingcompany’sannualstatement(Form56-2)

showninwww.sec.or.thortheBank’swebsite:www.thanachartbank.co.th” ThanachartGroupembracesitsenvironmentalresponsibilities

inthereductionofglobalwarmingandconsumptionofnaturalresources.

The2013AnnualReportusedpaperproducedfromfarmedtrees

andwasprintedwithsoy-basedink.

DesignedbyPlanGrafikCo.,Ltd. Tel.022772222

ANNUAL REPORT 2013

THANACHART BANK PUBLIC COMPANY LIMITED

AN

NU

AL REPO

RT 2013 TH

AN

AC

HART BAN

K PU

BLIC

C

OM

PAN

Y LIM

ITED

SM

ART G

RO

WTH

900 Tonson Tower, Ploenchit Road, Lumpini,

Pathumwan, Bangkok 10330, THAILAND

Tel. +66 (0) 2655 9000 Fax +66 (0) 2655 9001

Thanachart Contact Center 1770

Thanachart Smartcar Call Center +66 (0) 2217 5555



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