TBANK: Annual Report 2011
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Transcript of TBANK: Annual Report 2011
Six Strategic Intents for the Business Operation in 2012
1. We intend to provide our customers with a superior experience by offering the best service and a total financial
solution to their unique needs.
2. We intend to increase our productivity and customer satisfaction through strategic investments in our people,
leadership, systems and processes.
3. We intend to be the dominant market leader for Hire Purchase Business with increasing share in higher yielding
Used and CYC segments.
4. We intend to aggressively grow the housing loan portfolio to be the top-five in market share of the Commercial
Banking Industry.
5. We intend to grow the Corporate and SME loan portfolios higher than industry average and gain market share.
6. We intend to increase the fee-based income proportion to be on par with industry average.
Vision of Thanachart Group
To provide fully integrated financial services targeted at meeting customers’ unique financial needs by creating
the highest quality products and services which strengthen our image as a trustworthy financial services group.
2 Annual Report 2011 Thanachart Bank Public Company Limited Annual Report 2011 Thanachart Bank Public Company Limited 3
Consolidated Consolidated Separate financial statements Separate financial statements As at and for the year ended December 31 As at and for the year ended December 31
2011 2010 2009 2008 2007 2011 2010 2009 2008 2007 2011 2010 2009 2008 2007 2011 2010 2009 2008 2007
Operating results (Million Baht)
Interest income 44,214 34,781 21,470 20,688 17,488 29,547 21,397 20,934 19,897 17,123
Interest expenses 19,797 11,566 6,736 9,398 9,396 14,959 7,375 6,791 9,429 9,386
Net interest income 24,416 23,216 14,734 11,290 8,092 14,589 14,022 14,143 10,467 7,737
Non-interest income 10,595 9,457 18,403 10,700 6,111 7,172 4,000 2,815 2,286 2,005
Total income(1) 35,011 32,673 33,137 21,990 14,203 21,760 18,022 16,958 12,753 9,742
Non-interest expenses 21,877 16,824 24,177 15,535 9,905 13,671 8,730 9,125 7,788 6,105
Bad debt and doubtful accounts(2) 2,504 2,149 3,107 3,968 2,692 1,422 1,280 2,830 3,548 2,606
Net income(3) 7,671 8,777 4,056 1,870 1,327 6,668 5,719 3,547 1,304 991
Operating performance
Basic earnings per share (Baht) 1.39 1.92 2.19 1.08 0.84 1.21 1.25 1.91 0.75 0.63
Return on average assets (ROAA) (percent) 0.89 1.23 1.06 0.56 0.47 1.13 1.31 0.96 0.41 0.36
Return on average equity (ROAE) (percent) 10.61 15.52 17.01 8.79 7.47 9.42 10.70 15.20 6.22 5.52
Interest spread(4) (Percent) 2.92 3.33 3.73 3.17 2.64 2.99 3.63 3.66 3.14 2.73
Cost to income ratio net insurance 62.49 51.49 56.51 60.09 62.11 62.83 48.44 53.81 61.06 62.67
premium income(5) (Percent)
Statement of financial position
(Million Baht)
Loans 635,220 606,851 285,515 276,142 228,776 616,713 326,549 282,577 272,925 224,940
Total assets 886,060 873,203 432,970 378,347 300,787 878,053 482,063 413,878 368,272 291,098
Deposits and bill of exchange 655,206 672,475 341,496 317,243 248,193 693,991 349,753 342,664 318,760 248,084
Total liabilities 810,526 800,809 405,098 357,006 279,807 807,169 415,327 387,523 347,002 270,402
Shareholders’ equity(6) 74,848 72,183 27,811 21,278 20,923 70,884 66,737 26,355 21,270 20,695
FINANCIAL hIghLIghTS
Remark: Financial Statement Appearance in accordance with the notification of the BOT Re: the Preparation and Announcement of Financial Statements of Financial Institutions dated 28 December 2010 or Sor Nor Sor 11/2010 resulted in change various items. however, the Bank and its subsidiaries have revised the financial statement for the year 2011 (exepting Y2010) for analysis and comparison
Definitions and (1) Total income = Net interest income + Non-interest income Formulas (2) Including loss on debt restructuring (3) Excluding minority interest/non-controlling interest (4) Interest spread = Yield-Cost of fund Yield = Interest income/Average earning assets Earning assets = Interbank and money market from interest bearing + net investment + loans
1. Interest income excludes dividend income 2. Interest expense excludes contribution fee to Deposit Protection Agency 3. Non-interest income includes fee paid related to income and insurance/life insruance expenses 4. Non-interest expense excludes fee paid related to income, insurance/life insurance expense and contribution fee to Deposit Protection Agency 5. Financial ratios are calculated on disclosure financial statement
Cost of fund = Interest expenses/Average paying liabilities Paying liabilities = Total deposits + interbank and money market from interest bearing + total borrowings (5) Cost to income ratio = Non-interest expenses/Total income (6) Excluding minority interest/non-controlling interest (7) Total allowance/NPL (8) Stand alone exchange booth
Asset quality
Loans to deposits and short-term 96.95 90.24 83.61 87.04 92.18 88.86 93.37 82.46 85.62 90.67
borrowings ratio (Percent)
NPL-gross to total loans (Percent) 5.58 5.60 2.57 2.37 2.41 2.74 2.26 2.49 2.30 2.31
NPL-net to total loans (Percent) 2.64 2.48 0.58 0.58 0.78 1.45 0.57 0.59 0.60 0.81
Coverage ratio(7) (Percent) 69.75 71.22 96.41 94.99 92.07 71.53 97.66 92.33 88.81 86.80
Total allowance to BOT regulation 104.27 108.05 111.66 112.75 121.72 103.12 105.32 102.85 101.55 108.38
(Percent)
Non-performing loans (NPL) 37,677 36,859 8,675 7,466 5,520 17,989 7,648 8,359 7,167 5,213
(Million Baht)
Capital measures
Tier I capital ratio (Percent) 9.28 11.71 8.65 8.02 10.15
Total capital ratio (Percent) 13.72 14.75 14.10 11.18 12.00
Risk weighted assets (Million Baht) 664,103 609,277 273,366 252,634 197,128
Common share information
Common shares outstanding (Million shares)
- Average-basic 5,514 4,563 1,854 1,735 1,584 5,514 4,563 1,854 1,735 1,584
- End of period 5,514 5,514 1,935 1,735 1,735 5,514 5,514 1,935 1,735 1,735
Book value (Baht) 13.58 13.09 14.38 12.26 12.06 12.86 12.10 13.62 12.26 11.93
Dividends per share (Baht) 0.40 0.56 0.56 0.43
Other information
Employees 16,298 16,846 9,368 9,630 6,210 14,152 7,871 7,470 7,534 4,603
Branches 676 256 256 213 166
Exchange booth 79 89 92 76 64(8)
14 Annual Report 2011 Thanachart Bank Public Company Limited Annual Report 2011 Thanachart Bank Public Company Limited 15
Dear shareholders,
2011 was a year of great change and challenge for
Thailand and Thanachart Bank. First and foremost was the
devastating flooding which impacted the central part of
Thailand, including sections of Bangkok. This unprecedented
disaster caused substantial damage to agriculture,
infrastructure and productive capacity and most sadly led to
substantial loss of life. 2011 was also a year of political change
which saw the election of a new government led by Thailand’s
first female Prime Minister.
On the economic front, the global economy continued
to be impacted by a weak recovery in the USA and the
European Debt Crisis, which affected tourism, exports and
investments in Asian countries, including Thailand. As for
Thailand, inflation concerns prompted the Bank of Thailand to
move into a tightening phase and substantially increase
interest rates in the first half of the year before starting to
ease rates in light of the weak global economy and the effects
of the flood. Due to these issues, the Thai economy contracted
in the fourth quarter, reducing overall GDP growth from 7.8%
in 2010 to only 0.1% in 2011.
The banking industry was also affected. Despite
unfavorable factors and fierce competition, the overall banking
industry remained strong with high growth in loans and
deposits and well-controlled non-performing loans.
In the past year, we focused on the integration project
with Siam City Bank (SCIB) and serving our existing
customers amid the high impact from the floods. This was the
largest and most complex merger in the history of Thailand’s
financial services industry and required additional one-time
costs in such areas as branches, training, systems and human
resources among others. With the strong dedication and
tremendous efforts of all of our staff and key vendors and with
the support of our strategic partner, The Bank of Nova Scotia
(Scotiabank), we completed the Entire Business Transfer of
all the assets of SCIB as scheduled on October 1, 2011 with
minimal disruption to our clients. All SCIB branches have now
been re-branded to Thanachart and all key systems and
processes have been unified. We greatly appreciate the
support of our over 4 million customers throughout this
process and now with over 670 branches, 2,100 ATMs and a
full range of financial services; the Thanachart Bank group is
well positioned to meet all the unique financial needs of our
customers.
We continue to maintain our strong position as the
market leader in auto Hire Purchase and to show strong
growth in our credit card and revolving cash card portfolios
with an overall loan growth of 4.7%. The increase in the Bank
of Thailand’s interest rates in the first half of the year along
with heightened competition for deposits, especially from the
government-owned Special Financial Institutions, resulted in
a rapid increase in deposit rates and funding costs throughout
the year. This combined with our market leading fixed rate Hire
Purchase portfolio led to a decline in Net Interest Margin over
the year from 3.33 to 2.92%. Along with the one-time
integration costs and impact from the floods, these factors
impacted our results such that net income declined by 12.59%
from THB 8,777 to THB7,672 million in 2011.
With the systems and branch conversion phase of
integration now complete, we move into the next phase of our
development with our efforts firmly focused on growth and
further increasing our productivity, sales capacity and
customer satisfaction through strategic investments in our
people, leadership, technology and processes. Working with
Scotiabank to implement global best practices, we will
complete the process of upgrading our sales and support
infrastructure which will centralize back office processes,
allowing our branches and call centers to focus on sales and
customer service activities, significantly accelerating our loan
approval, fulfillment and collection processes while further
improving our loan quality. We have recruited new leadership
in several key business lines and support functions to support
these initiatives and are confident these investments will
position the bank as a leader in customer service in the Thai
financial services sector.
While we are excited about the future, we expect the
environment for commercial banks in 2012 in Thailand to
continue to be challenging. The global economic recovery
remains uncertain with slow recovery in the USA and the debt
crisis continuing to impact major European economies. Here in
Thailand, flood recovery efforts are now commencing with
subdued economic conditions expected until at least the
second half of the year. In addition, competition remains fierce
not only among the commercial banks but also from the
growing presence of the government owned Special Financial
Institutions. The royal decree to restructure Financial
Institution Development Fund (FIDF)’s debt owed to the
Finance Ministry B.E. 2555, allows the Bank of Thailand to
impose a 0.47% fee on the deposit bases of commercial banks,
will be another challenge facing commercial banks. Thus, it is
important that economic policy continue to support a strong
private sector financial system and a level playing field for all
participants so that the sector can continue to foster long
term, sustainable economic development and be competitive in
the increasingly integrated Asean Economic Community.
2011 has truly been a year of transformation for our
bank with the successful completion of the merger with Siam
City Bank. This was carried out in a difficult local and global
environment which was closely followed by devastating
flooding in many parts of Thailand. Through these many
challenges, our management and staff showed their enduring
dedication to helping our customers and one another overcome
any obstacle and reach their goals. It is this spirit and
commitment which we take this opportunity to recognize and
the Board of Directors expresses our sincere appreciate to all
our staff for their great efforts this year and we would also like
to thank all the customers, stakeholders, and shareholders as
well for their strong support. While challenges abound, the
Board is committed to strong corporate governance and is
confident that our strategy under the guiding principal of
Transforming to Strength and realizing Synergies and with the
trust of our customers and support of our strategic partner,
Scotiabank, Thanachart Bank is well positioned for further
growth and prosperity.
MESSAGE FROM THE BOARD OF DIRECTORS
(Mr. Banterng Tantivit)Chairman of the Board of Director
Thanachart Bank Public Company Limited
Mr. Suphadej Poonpipat Vice Chairman
and Chairman of the Executive Committee
Mr. Somjate Moosirilert Member of
the Executive Committee and Chief Executive Officer and President
16 Annual Report 2011 Thanachart Bank Public Company Limited Annual Report 2011 Thanachart Bank Public Company Limited 17
18 Annual Report 2011 Thanachart Bank Public Company Limited Annual Report 2011 Thanachart Bank Public Company Limited 19
20 Annual Report 2011 Thanachart Bank Public Company Limited
MANAGEMENT DISCUSSION AND ANALYSIS
Management Discussion and Analysis of Financial Position and Performance (A comparative analysis of 2011 and 2010 consolidated Consolidated Financial Statements)
On April 9, 2010, TBANK successfully acquired 1,005,330,950 SCIB common shares, equivalent to 47.58 percent of SCIB’s total issued and paid up shares, from Financial Institution Development Fund (FIDF). Thereafter, it conducted tender offers to purchase the remaining shares from public shareholders in June and November 2010 at a price of THB 32.50 per share (the same price that TBANK paid to FIDF). Consequently, TBANK’s held 99.95 percent of SCIB’s total issued and paid up shares.
Upon the successful share acquisition as mentioned above, therefore, the balance sheets as well as consolidated
income statements of SCIB and its subsidiaries have been consolidated into TBANK’s consolidated financial statements since the date that TBANK assumed a control over SCIB.
TBANK, in the first quarter of 2011, established a wholly-owned subsidiary named TS Asset Management Company
Limited (TS AMC) to facilitate an efficient management of the entire non-performing assets transferred from SCIB as part of the acquisition. All of SCIB Non-Performing Loans (NPLs), Non-Performing Asset (NPA), liabilities, and obligations whether existing ones or that may arise in the future were transferred to TS AMC on October 1, 2011 at a fair price recommended by the Independent Financial Advisor at THB 50,134 million, comprising assets of THB 381,077 million and liabilities of THB 330,943 million. Since the same date, SCIB had ceased its entire business operation. Thereafter on December 6, 2011, the Extraordinary General Meeting of Shareholders of SCIB approved a change its name to “SCIB Public Company Limited.” It returned a commercial banking license to the Ministry of Finance on December 8, 2011 and had gone under the process of liquidation since December 9, 2011.
To allow the minority shareholders of SCIB to sell their shares before the liquidation, in November 2011 TBANK
performed a tender offer to SCIB shareholders and acquired 696,865 SCIB shares at THB 16 million, resulting in 2,112,375,422 shares held in total, equivalent to 99.98 percent stake.
Meanwhile, as part of the acquisition, 437.25 million ordinary shares or 48.35 percent stake of Ratchathani Leasing
Public Company Limited’s (THANI) were transferred from the SCIB to TBANK on October 1, 2011. On October 21, 2011 TBANK subscribed to THANI shares from the THANI’s right offering proportionately to its original shareholding, resulting in 874.97 million shares held. However, the remaining of THANI shareholders did not exercise all of their rights; TBANK’s shareholding, therefore, rose from 48.35 percent to 65.18 percent of the total issued and paid up shares.
TBANK consolidated financial statements included performances of the following
subsidiaries. Direct subsidiaries SCIB Public Company Limited (formerly Siam City Bank Public Company Limited) Thanachart Securities Public Company Limited Thanachart Insurance Company Limited Thanachart Life Assurance Company Limited Thanachart Fund Management Company Limited Thanachart Broker Company Limited Thanachart Group Leasing Company Limited Thanachart Management and Services Company Limited
Annual Report 2011 Thanachart Bank Public Company Limited 21
Thanachart Legal and Appraisal Company Limited Thanachart Training and Development Company Limited TS Asset Management Company Limited Ratchathani Leasing Public Company Limited Indirect Subsidiaries National Leasing Company Limited Siam City Securities Company Limited (Disposed investment in August 2011) Siam City Life Assurance Company Limited Siam City Asset Management Company Limited (Disposed investment in May 2011) SCIB Service Company Limited
OVERVIEW OF OPERATING RESULTS (A comparative analysis of 2011 and 2010 Consolidated Financial Statements)
In 2011, net income of TBANK and its subsidiaries recorded THB 7,671 million, fell by THB 1,105 million or 12.60 percent year-on-year. The key factors contributing to its performance were the following:
• Loans grew by 4.7 percent year-on-year. In particular, the hire purchase Loans grew by 19.5 percent. Despite
negative impact from the flood crisis in the 4Q2011, TBANK maintained its leading position in the automobile hire purchase loans. The outstanding hire purchase loans stood at THB 286,361 million where it achieved a penetration rate of new car hire purchase loans of 19.1 percent. Owing to the successful merger with SCIB, the bank loan portfolio was well diversified. The ratio of retail loans and SME loans was at 62 percent to 38 percent.
• Deposit and B/E fell by 2.6 percent year-on-year. In 2011, TBANK altered it products and interest rates offer
to be in line with the policy interest rate as well as the market trends. The ratio of current account deposits and savings deposits (CASA) to total deposits including B/E was 26.9.
Change from 20102011
Increase/(Decrease) Percent
2010
Interest income 44,214 34,781 9,432 27.12 Interest expenses 19,797 11,566 8,232 71.18 Net interest income 24,416 23,216 1,201 5.18 Net fee and service income 3,358 2,850 508 17.82 Other operating incomes(1) 7,237 6,607 630 9.54 Other operating expenses(2) 21,877 16,824 5,054 30.04 Income (loss) before impairment loss of loans and debt securities 13,134 15,849 (2,715) (17.14) Impairment loss of loans and debt securities 2,504 2,149 355 16.55 Income before corporate income tax 10,630 13,701 (3,071) (22.42) Corporate income tax 2,948 4,548 (1,600) (35.19) Net income 7,682 9,152 (1,471) (16.07) Attributable to controlling interests 7,671 8,777 (1,105) (12.60) Attributable to minority interests 10 376 (365) (97.23) Earnings per share (Baht) 1.39 1.92 Weighted average number of ordinary shares (shares) 5,513.66 4,562.52
Consolidated Income Statements
(Unit: THB Million)
Notes: (1) Income net of insurance/life assurance expenses (2) Exclusive of insurance/life assurance expenses
22 Annual Report 2011 Thanachart Bank Public Company Limited
• Interest spread stood at 2.9 percent, decreased from 3.3 percent from 2010, with the yield on earning assets rose to 5.5 percent along with the rise of market interest rate, compared to 5.1 percent of the 4Q2010 despite lower interests recognized as flood relief programs given to customers who were affected by the flood crisis in 4Q2011. Yet, the gain is expected in 1Q2012. Meanwhile, yield on loan rose slightly in 4Q2011 as a result of combining Ratchthani Leasing’s performance. Cost of fund increased to 2.6 percent compared to 1.8 percent of 2010 as a result of the higher market interest rates as well as intensifying competition.
• Non-performing loan management. Impairment
loss of loans and debt expense to total loan ratio was 0.4 percent, slightly increased from 0.3 of 2010 despite an impact from the flood crisis. Meanwhile, a result of TS AMC’s good performance helped improve quality of NPL, thus, lowering its provision for NPL. As of December 31, 2011, TBANK and its subsidiaries incurred NPL of THB 37,677 million with the ratio of gross NPL to total loans of 5.6 percent.
• Growth on non-interest income which was
contributed by fees and service income, brokerage fees, gains on proprietary trading and foreign trading transactions, gain on investment, profit sharing from investments in associated companies recognized under equity method, dividend income, net insurance/life insurance premium income. Net-interest income to net operating income was 30.2 percent.
• The effectiveness of operating expense
management: The ratio of operating expense to total income was 62.5 percent, increased from 51.1 percent of 2010. This was due primarily to thinner interest spread and integration costs which included IT system improvement, branch decoration cost, employee benefits and trainings, as well as cost from early retirement program.
• Corporate income tax: TBANK and its subsidiaries
corporate income tax for 2011 totaled THB 2,948 million baht, or 27.7 percent, compared to 33.2 percent of 2010. This was because of NPA transfer to TS AMC and sales of investment in Siam City Securities Co., Ltd. And the provision could be recognized as tax deductible expenses.
• Capital Adequacy: TBANK’s total capital amounted to THB 91,093 million, of which THB 61,638 million was Tier 1 and THB 29,455 million was Tier 2. BIS ratio was 13.7 percent. The capital consideration has deducted THB 15,740 million of goodwill from acquiring SCIB shares and included THB 10,000 million subordinated debentures transferred from SCIB. This was carried out in accordance with a waiver granted by the Bank of Thailand which stipulated such consideration for capital after the completion of the entire business transfer (October 1, 2011).
Net Interest income
In 2011, net interest income of TBANK and its
subsidiaries recorded at THB 24,416 million, reflecting an increase of THB 1,201 million or 5.18 percent year-on-year. This was due primarily to increasing volumes of TBANK and SCIB transactions. Total interest income amounted to THB 44,214 million, an increase of THB 9,432 million or 27.12 percent while interest expenses amounted to THB 19,797 million, an increase of THB 8,232 million or 71.18 percent year-on-year. As a result, interest spread of 2011 stood at 2.92, a decrease from 3.32 percent of 2010.
Non-interest Income
Non-interest income consisted of net fee and
service income, net insurance/life insurance premium income, and other operating income recorded THB 10,595 million, an increase of THB 1,137 million or 12.03 percent year-on-year.
• Net Fees and Service Income TBANK and its subsidiaries recorded net fees and
service income of THB 3,358 million, representing an increase of THB 508 million or 17.82 percent year-on-year. Fees and service income amounted to THB 3,858 million, an increase of THB 489 million or 14.52 percent while fees and service expenses amounted to THB 500 million, a decrease of THB 19 million or 3.60 percent due to financial product variety offered to customers both from TBANK and SCIB.
• Other Operating Income Other operating income consisted of gain on trading
and foreign exchange transaction, gain on investments, profit sharing from investments in associated companies recognized under equity method, dividend income, brokerage fees, net insurance/life assurance premium
Annual Report 2011 Thanachart Bank Public Company Limited 23
income, and other income. In 2011, other operating income (net of insurance/life assurance operating expenses) of TBANK and its subsidiaries recorded THB 7,237 million, reflecting an increase of THB 630 million or 9.54 percent year-on-year. The increase was attributable to an increase of gain on investments of THB 398 million, gain on trading and foreign exchange transaction of THB 321 million, and dividend income SCIB received from Vayupak Fund of THB 246 million while net insurance/life assurance premium income fell by THB 225 million.
Other Operating Expenses TBANK and its subsidiaries recorded other operating expenses (exclusives of insurance/life assurance expenses)
of THB 21,877 million, rose by THB 5,054 million or 30.04 percent year-on-year due primarily to personnel expenses and integration costs. Consequently, other operating expenses to net operating income ratio (cost to income ratio) was at 62.5 percent.
Bad Debts, Doubtful Accounts, and Allowance for Impairment In 2011, TBANK and its subsidiaries incurred expenses of bad debt, doubtful accounts, and impairment
of securities investments of THB 2,504 million, an increase of THB 355 million. Provision to total loan ratio rose to 0.53 percent from 0.47 percent of 2010 while coverage ratio was 69.75 percent and actual/required LLR required by the Bank of Thailand was 104.27 percent.
CONSOLIDATED FINANCIAL POSITION
Change from 2010December 31, 2011 Increase/
(Decrease) Percent
December 31, 2010
AssetsCash 16,006 15,298 708 4.63Interbank and money market items (with interest) 63,201 85,060 (21,859) (25.70)Investment-net 148,345 140,022 8,323 5.95Loans and accrued interest receivables-net 609,903 581,525 28,378 4.88Property foreclosed-net 6,762 7,851 (1,089) (13.87)Land, premises and equipment-net 8,759 8,986 (227) (2.53)Goodwill 15,750 15,750 0 0.00Other assets 17,334 18,711 (1,377) (7.36)
Total assets 886,060 873,203 12,857 1.47
Consolidated Balance Sheet
(Unit: THB Million)
24 Annual Report 2011 Thanachart Bank Public Company Limited
As of December 31, 2010, TBANK and its subsidiaries recorded net asset of THB 886,060 million, an increase of THB 12,857 million or 1.47 percent year-on-year, due primarily to an increase of loans and accrued interest receivables of THB 28,378 million. Ratio of retail loan to corporate loan and SME loan was 62 to 38.
Liabilities and shareholders’ equityDeposits 436,040 532,656 (96,617) (18.14)Interbank and money market items (with interest) 60,151 40,545 19,606 48.36Liability payable on demand 2,131 3,127 (996) (31.86)Debt issued and borrowings 254,297 174,949 79,348 45.36Provisions 2,824 900 1,924 213.84Insurance and contract liabilities 36,154 29,774 6,380 21.43Other liabilities 18,931 18,859 71 0.38Total liabilities 810,526 800,809 9,717 1.22Equity attributable to the Bank’s shareholders 74,848 72,183 2,665 3.70Minority interest 685 211 475 225.49
Total liabilities and shareholders’ equity 886,060 873,203 12,857 1.47
Change from 2010December 31, 2011 Increase/
(Decrease) Percent
December 31, 2010Consolidated Balance Sheet
(Unit: THB Million)
As of December 31, 2011, TBANK and its subsidiaries posted total liabilities of THB 810,526 million, an increase of THB 9,717 million or 1.22 percent compared to the end of 2010. An increase was attributed to the following:
• Debt instruments and borrowings of THB 254,297 million, an increase of THB 79,348 million or 45.36 percent from
last year. Most of debt instruments issued by TBANK were B/E as a mean to diversify customers’ investment portfolio and provide them an investment alternative with a better yield in light of Deposit Protection Agency Act which took effect since August 2011. The products were well accepted by TBANK customers. Meanwhile, deposits dropped by THB 96,617 million or 18.14 percent compared to the end of 2010.
• Interbank and money market was THB 60,151 million, an increase of THB 19,606 million. Shareholders’ equity of TBANK and its subsidiaries as of December 31, 2011 amounted to THB 74,848 million,
an increase of THB 2,665 million or 3.70 percent from the end of 2010, most of which came from 2011 net profit. ASSETS QUALITY Assets as reflected in the consolidated financial statements. 1. Loans, receivables and accrued interest receivables As of December 31, 2011, TBANK and its subsidiaries’ net loans and accrued interest receivables in accordance
with the Notifications of the BOT amounted to THB 620,328 million, an increase of THB 17,079 million or 2.83 percent from the end of last year. During 2011, the Bank and its subsidiaries entered into various debt restructuring agreements in the form of reconditioning of the debt repayment, transferring assets and/or equity and/or reconditioning the terms and conditions of repayment. The total of THB 38,685 million of debts was restructured compared to THB 17,180 million outstanding balances before the restructuring. At the end of 2011, the Bank and its subsidiaries had entered into debt restructuring agreements with 53,922 debtors out of 1,382,206 total bank’s debtors. The total outstanding balance of loans and accrued interest from restructuring was of THB 38,816 million.
Annual Report 2011 Thanachart Bank Public Company Limited 25
LOAN CONCENTRATION At the end of 2011, 45.08 percent of loan portfolio was nominated by hire purchase loans, followed by 12.90 percent
of manufacturing and commerce loans, 11.59 percent of housing loans, 9.20 percent of infrastructure and service loans, 7.55 percent of real estate and construction loans, and 13.68 percent of other loans respectively.
LOANS CLASSIFIED BY BUSINESS TYPE IN 2010 LOANS CLASSIFIED BY BUSINESS TYPE IN 2011
16.05%Manufacturing and Commerce
12.16% Others
39.48%Hire Purchase
12.79%Housing
10.88%Infrastructure and Service
8.64%Real Estate and Construction
12.90%Manufacturing and Commerce
13.68%Others
45.08% Hire Purchase
9.20%Infrastructure and Service
11.59%Housing
7.55%Real Estate and Construction
2. Loan classification according to the BOT’s notification As of December 31, 2011, TBANK and its subsidiaries’ loans and accrued interest receivables classified under the
BOT’s notification registered at THB 620,328 million, an increase of THB 17,079 million or 2.83 percent from the previous year. As of December 31, 2011, it set aside allowance for doubtful accounts of THB 24,417 million and additional allowances for doubtful accounts of THB 383 million. As a result, the total allowance for doubtful accounts amounted to THB 24,800 million. The ratio of total allowance for doubtful account to loans and accrued interest receivables, therefore, stood at 4.00 percent.
LOANS CLASSIFICATION ACCORDING TO THE BOT’S NOTIFICATION
Normal 542,456 531,104 3,970 2,082Special mention 40,447 36,539 722 2,249substandard 7,031 6,663 3,870 2,898doubtful 11,763 12,620 7,507 8,277doubtful of loss 18,631 16,323 8,348 8,199
Total 620,328 603,249 24,417 23,705
Additional allowance for doubtful accounts 383 534
Total allowance for doubtful accounts 24,800 24,239
Ratio of total allowance for doubtful accounts to total loans 4.00 4.02and interest receivables (percent)
Note: (1) The debt balance/book value of the normal and special mention accounts did not include the accrued interest receivables.
December 31, 2011 December 31, 2011 December 31, 2010December 31, 2010Loans and Interest Receivables
Debt Balance/Book Value(1) Allowance for Doubtful Accounts
(Unit: THB Million)
26 Annual Report 2011 Thanachart Bank Public Company Limited
3. Non-Performing Loans (NPLs) As of December 31, 2011, TBANK and its subsidiaries recorded an NPL in the amount of THB 37,677 million, an
increase of THB 818 million from the end of 2010, due primarily to changes of policies, strategies, and process of debt management and collections. Meanwhile, good performance of TS AMC helped improve quality of NPL transferred from SCIB. As a result, it achieved total NPL ratio of 5.58 percent.
NON-PERFORMING LOANS
CLASSIFIED NPLs
18.79%Substandard
31.46% Doubtful
49.75% Doubtful of Loss
9.37%Housing Loans
NPLs CLASSIFIED BY BUSINESS TYPE
10.08%Real Estate and Construction
9.51% Hire Purchase Loans
14.74%Service
11.91% Others
44.39%Manufacturing and Commerce
4. INVESTMENT IN SECURITIES In 2011, TBANK and its subsidiaries’ total investments in securities stood at THB 148,345 million. Investments in
government and state enterprise securities accounted for 52.97 percent, followed by foreign debt securities, most of which were forward contracts to cover the foreign exchange risks for both foreign investments and accrued interests which accounted for 18.72 percent. After taking into consideration net revaluation surplus on investments in securities, TBANK recorded net investments in securities of THB 148,345 million in 2010, an increase from THB 139,933 million in 2010. The details of 2011 investment in securities are provided as follows:
Non-performing loans (NPLs) 37,677 36,859NPLs to total loans (percent) 5.58 5.60NPL-net (Under the BOT’s regulation) 17,787 16,336NPL-net (percent) 2.64 2.48
December 31, 2011
(Unit: THB Million)
December 31, 2010
Annual Report 2011 Thanachart Bank Public Company Limited 27
INVESTMENT IN SECURITIES CLASSIFIED BY TYPE OF INSTRUMENTS
December 31, 2011
December 31, 2010 PercentPercent
Debt securitiesGovernment and state enterprise securities• Tradingsecurities 10,508 7.11 44 0.03• Available-for-salesecurities 40,877 27.67 52,685 37.92• Held-to-maturitysecurities 26,876 18.19 36,138 26.01Private debt securities• Tradingsecurities 4,770 3.23 21 0.02• Available-for-salesecurities 18,389 12.45 9,898 7.12• Held-to-maturitysecurities 6,592 4.46 5,874 4.23Foreign debt securities • Tradingsecurities 642 0.43 3,015 2.17• Available-for-salesecurities 25,516 17.27 12,704 9.14• Held-to-maturitysecurities 1,500 1.02 5,705 4.11Equity securities Listed securities • Tradingsecurities 34 0.02 74 0.05• Available-for-salesecurities 7,483 5.06 7,752 5.58Unit trusts• Available-for-salesecurities 12 0.01 29 0.02General investments 4,549 3.08 4,993 3.59Total investment in securities 147,748 100.00 138,932 100.00 Add (Less) Allowance for revaluation 641 1,098Allowance for impairment (44) (97)
Total investments-net 148,345 139,933
INVESTMENT CLASSIFIED BY TYPE
LIQUIDITY At the end of 2011, TBANK and its subsidiaries’ cash flows received from financing activities amounted to THB
69,490 million while that of the investment activities was THB 10,216 million and cash flows used in operating activities stood at THB 78,998 million. The Bank’s cash and cash equivalents, therefore, increased by THB 708 million. At the end of 2011, the Bank’s outstanding cash and cash equivalent increased by THB 16,006 million with major items listed as follows:
•Cashflowsfromfinancingactivities includedcashreceivedfromborrowingsofTHB1,181,760millionwhilecash
paid for borrowings was THB 1,103,304 million, cash paid for interest from borrowings was THB 6,759 million, cash paid for dividend was THB 2,205 million, and dividend paid to non-controlling interests of its subsidiaries was THB 2 million.
•Cash flows fromthe investingactivities included increase in investment insecuritiesofTHB5,798million, cash
received from interests on investment of THB 4,534 million, cash received from dividend was of THB 824 million, and cash paid for purchase of equipment of THB 852 million.
•Cash flows from operating activities included decrease of deposits in the amount of THB 96,617million, cash
received from increase of loans by THB 22,028 million, cash received from interbank and money market items of THB 23,211 million and profit from operation of THB 18,627 million respectively.
(Unit: THB Million)
28 Annual Report 2011 Thanachart Bank Public Company Limited
Relationship between sources and utilization of funds
In 2011, TBANK’s major sources of funds were from deposits and borrowings of THB 436,040 million and THB 254,297 million respectively. For the utilization of funds, THB 635,220 million was used for loans and THB 147,748 million was for investments respectively.
The comparison between sources and utilization of funds based on maturity of financial instruments dated in balance
sheet as of December 31, 2011 illustrated that the primary sources of funds were deposits with remaining maturity of less than one year which accounted for 36.19 percent of total sources of funds; followed by 31.50 percent of borrowings with remaining maturity of less than one year. On fund utilizing side, funds were used for loans with remaining maturity of more than one year which was accounted for 50.37 percent and loans with remaining maturity of less than one year accounted for 24.68 percent of total uses of funds. However, the maturity mismatch between sources and uses of funds was considered normal in commercial bank and financial institution business. This was due to the behavior of most depositors to extend their deposits after the maturity. Furthermore, the Bank had conducted risk management program that aimed at seeking for sources of funds that were most compatible with their uses through various financial instruments. This therefore enabled the TBANK to recognize in advance the signal of any adverse impacts that would occur to the sources and uses of funds. Details of key sources and uses of funds classified by maturity date of each item since the balance sheet date as of December 31, 2011 were as follows:
Cashflowsfromfinancingactivities 69,490 91,746Cashflowsfrominvestingactivities 10,216 (35,165)Cashflowsfromtheoperatingactivities (78,998) (45,003)Net increase (decrease) in cash 708 11,578Cash at beginning of the year 15,298 3,720
Cash at end of the year 16,006 15,298
2011Major Changes Iems 2010
(Unit: THB Million)
Sources of fundsDeposits 176,616 25.58 249,835 36.19 9,589 1.39 0 0.00 436,040 63.16 Borrowings 999 0.14 217,447 31.50 28,721 4.16 7,130 1.03 254,297 36.84
Total Sources of funds 177,615 25.73 467,282 67.69 38,310 5.55 7,130 1.03 690,337 100.00 Uses of Funds
Loans(1) 47,672 6.09 193,205 24.68 394,343 50.37 0 0.00 635,220 81.13 Investments 1 0.00 67,445 8.61 68,908 8.80 11,394 1.46 147,748 18.87
Total Uses of funds 47,673 6.09 260,650 33.29 463,251 59.17 11,394 1.46 782,968 100.00
TypeLess Than 1 YR More Than 1 YR Not Specified TotalAt Call
THB Million Percent THB Million Percent THB Million Percent THB Million Percent THB Million Percent
Note: (1) The outstanding balance of loans and debtors at call also included loans and debtors whose income recognition was put on hold
Annual Report 2011 Thanachart Bank Public Company Limited 29
MAINTENANCE OF CAPITAL ADEQUACY RATIO As of December 31, 2011, TBANK’s total capital registered at THB 91,093 million of which THB 61,638 million was
Tier 1 capital and THB 29,455 million was Tier 2. The ratio of capital to risk weighted assets calculated under Basel II standards dropped from 14.75 percent at the end of 2010 to 13.72 percent, comprising 9.28 percent of Tier 1 capital, compared to 11.71 percent of 2010 due to goodwill expense from acquiring SCIB in the amount of THB 15,740 million and 4.44 percent of Tier 2 capital, compared to 3.04 percent of 2011 from subordinated debentures transferred from SCIB. This was carried out in accordance with a waiver granted by the Bank of Thailand which stipulated such consideration for capital after the completion of the entire business transfer (October 1, 2011).
The capital ratio, however, remained well above the BOT’s minimum requirement at 8.50 percent. Details of ratio
of capital to risk weighted assets could be listed as follows: CAPITAL ADEQUACY RATIO
THB Million THB Million PercentPercent
Tier 1 capital 61,638 9.28 71,335 11.71Total capital 91,093 13.72 89,898 14.75
December 31, 2011 December 31, 2010
Thanachart Securities Public Company Limited A daily average trading value of Thanachart Securities Public Company Limited (TNS) in 2011 was THB 2,266 million,
dropped from THB 2,305 million of 2010. The market share was 4.43 percent, ranked number 10 in the industry. 77.4 percent of its trading volume was dominated by retail customers, followed by 21.0 percent of financial institutions and 1.6 percent of foreign customers respectively.
For 2011, TNS recorded a net profit of THB 293 million, a decrease of THB 98 million or 25.0 percent year-on-year.
Total income rose slightly by 3.7 percent year-on-year due to higher brokerage fees from derivative business which increased by THB 52 million, equivalent to 115.5 percent; interest income from margin loans increased by THB 51 million or 75.1 percent; and interest and dividend income rose by THB 35.7 million. Meanwhile, fees and service income dropped by 27.1 percent while total expense increased by 20.6 percent.
TNS net liquid capital ratio stood at 149.1 percent which was substantially higher than the minimum requirement of
the Securities and Exchange Commission (SEC) regulated level of 7.0 percent.
30 Annual Report 2011 Thanachart Bank Public Company Limited
Thanachart Fund Management Company Limited
At the end of 2011, Thanachart Fund Management Company Limited (TFUND)’s asset under management recorded THB 96,351 million, an increase of THB 2,795 million or 3.0 percent year-on-year. Mutual fund asset dropped by 1.8 percent year-on-year, yet, this was offset by an increase of provident fund and private fund asset of 76.7 and 4.6 percent respectively. Asset under management was divided into 81.3 percent of mutual fund, 9.2 percent of provident fund, and the balance 9.4 percent of private fund.
For 2011, TFND recorded a net profit of THB 89
million, a drop of THB 42 million or 32.2 percent year-on-year. This was due primarily to a drop of fee income in the amount of THB 35.97 million or 8.49 percent. However, TFUND put in place a plan to launch variety of new products to serve its clients’ needs in light of changing interest rate trend and market environment.
Thanachart Insurance Company
Limited For the year ended December 31, 2011, Thanachart
Insurance Company Limited (TNI) recognized a net income of THB 435.88 million, achieving an increase of THB 83.74 million or 23.8 percent year-on-year. The key factors contributing to its success included an increase of premium received through bancassurance channel and efficiency in claim management. The capital ratio at the end of 2011 was 505 percent, substantially higher than the minimum requirement of the Office of Insurance Commission (OIC) of 125 percent.
Thanachart Life Assurance Company Limited
For 2011, Thanachart Life Assurance Company
Limited (TLIFE) recorded a net profit of THB 770 million, an increase of THB 82 million or 11.9 percent year-on-year. An increase was attributable to a growing customer base. Investment income grew by THB 202 million or 30 percent year-on-year. Income from underwriting remained the same as 2011. The capital ratio was 278 percent which was well higher than the minimum requirement of the OIC of 125 percent.
TS Asset Management Company
Limited TS AMC Company Limited (TS AMC) was found on
March 3, 2011, as part of the entire business transfer project of SCIB to TBANK. NPLs and NPA were transferred to TS AMC in order to efficiently manage and restructure the debts. For the year ended December 31, 2011, TS AMC recorded its total assets of THB 12,267 million and net profit of THB 180 million. THB 259 million of its income was generated from loans, THB 282 million reversals of provision for doubtful accounts, and THB 33 million non-interest income. Allowance for impairment of property foreclosed was THB 12 million. Meanwhile, THB 85 million of its expense was interest expense and THB 95 million was operating expense.
Annual Report 2011 Thanachart Bank Public Company Limited 31
NATURE OF BUSINESS OPERATIONS
An Overview of the Business Operation Upon a successful integration with the SCIB and the entire business transfer of all of the SCIB’s assets on October
1, 2011, TBANK’s business structure, having TCAP as a parent company, consists of two groups: 1) financial group and 2) Supporting group. It was presently a fully integrated financial conglomerate serving customers with a full range of financial services primarily available through TBANK branch network and TBANK service outlets, and it is strongly committed to good corporate governance principles. The details of the business operations of each subsidiary company are as follows:
Financial Group
1. Thanachart Capital Public Company Limited (TCAP) operates as the holding company being a parent company of
Thanachart Financial Conglomerate. 2. Thanachart Bank Public Company Limited (TBANK) operates commercial banking business and other businesses
permitted by the BOT, such as life and non-life insurance broker, a provider of services relating to unit trust and securities such as securities brokerage, proprietary trading, unit trust underwriting, mutual fund trustee service, provident fund custodian service, debt instrument underwriting and trading, securities registrar, and gold derivative trading.
3. Thanachart Securities Public Company Limited (TNS) was permitted by the Ministry of Finance and the Office of the Securities and Exchange Commission of Thailand to operate the following activities:
3.1 TNS was granted a Full-Service License to operate securities businesses and related businesses such as securities brokerage (domestically and internationally), securities underwriting, investment advisory service, securities borrowing and lending, financial advisory service, unit trust underwriting and repurchasing, and securities registrar.
3.2 TNS was granted a Derivatives Business Sor 1 License to engage in a full range of derivative businesses and related businesses such as derivative brokerage and proprietary trading.
4. Thanachart Fund Management Company Limited (TFUND), which is a joint venture between Thanachart Bank (holding 75 percent of the total shares) and The Government Savings Bank (holding 25 percent shares), operates a full range of investment management services in mutual fund management business, private fund and provident fund management business, and investment advisory business.
5. Thanachart Insurance Company Limited (TNI) operates a non-life insurance business and a disaster insurance business such as fire insurances, automobile insurances, marine and transportation insurances, miscellaneous insurance, and investment business.
6. Thanachart Life Assurance Company Limited (TLIFE) operates a life insurance business and a health insurance business individual life insurances, such as individual endowment and annuity, group life insurance, such as group life insurances for corporation and organization, and credit life insurances including hire purchase loan, mortgage, SME loan, and credit card.
7. Siam City Life Assurance Company Limited (SCILIFE) operates life insurance business by offering products through TBANK’s branch network. Its customer segment is mainly TBANK’s lending customers and deposit customers.
8. Thanachart Group Leasing Company Limited (TGL) operates a hire purchase business of all automobile types. 9. Ratchthani Leasing Public Company Limited (THANI) operates a hire purchase business and financial lease
business focusing on the segment of private used cars and commercial cars such as pick-ups, taxis, tractors, and trucks. 10. NFS Asset Management Company Limited (NFS AMC) operates an asset management business by buying or
receiving transfers of NPLs and NPAs from financial institutions in the Thanachart Group. 11. MAX Asset Management Company Limited (MAX AMC) operates an asset management business by buying or
receiving transfers of NPLs and NPAs from other financial institutions. 12. TS Asset Management Company Limited (TS AMC) operates an asset management business by receiving
transfer of NPLs and NPAs from SCIB and TBANK.
32 Annual Report 2011 Thanachart Bank Public Company Limited
Scotia Netherlands Holding B.V.
Chart of Shareholding Structure of Thanachart Group As of December 31, 2011
Supporting Business Financial Business
Securities Business
Insurance Business
Asset Management Business
Leasing Business
Thanachart Securities Plc.
Thanachart Insurance Co., Ltd.
Thanachart Group Leasing Co., Ltd.
TS Asset Management Co., Ltd.
Thanachart Fund Management Co., Ltd.
Thanachart Life Assurance Co., Ltd.
Siam City Life Assurance Co., Ltd.
Ratchthani Leasing Plc.
Thanachart Management and Services Co., Ltd.
Thanachart Broker Co., Ltd.
National Leasing Co., Ltd.
Thanachart Legal and Appraisal Co., Ltd.
Thanachart Training and Development Co., Ltd.
SCIB Services Co., Ltd.
Asset Management Business
Commercial Banking Business
Thanachart Bank Public Company Limited
Thanachart Capital Public Company Limited
50.96% 83.44%
NFS Asset Management Company Limited
100.00%
48.99%
100.00%
100.00%
100.00% 100.00%
100.00%
100.00%
100.00%
65.18%
75.00%
100.00%
100.00%
100.00%
100.00%
100.00%
Note: 1. The above shareholdings include shares held by the related parties.
2. TLA is in the process of entering into the dissolution and liquidation.
MAX Asset Management Company Limited
Supporting Business Group 1. Thanachart Management and Services Company Limite (TMS) provides services to the Group’s service staff. 2. Thanachart Broker Company Limited (TBROKE) pursues Thanachart Group’s hire purchase customers to insure
their automobiles. TBROKE is also an automobile insurance broker of TNI. 3. Thanachart Training and Development Company Limited (TTD) organizes training activities for employees of
member companies of Thanachart Group. 4. Thanachart Legal and Appraisal Company Limited (TLA) provides legal advisory services, contracts, litigation,
legal enforcement, and appraisal of collateral. Presently, all of its assets and employees have already been transferred to TBANK and TLA under the process of liquidation.
5. SCIB Services Company Limited (SCIB Services) provides general services to TBANK and companies in the Group, such as janitor, security, delivery, car rental, car drivers, and outsourcing service.
Annual Report 2011 Thanachart Bank Public Company Limited 33
Policy on Division of Operational Functions among Member Companies of Thanachart Group
Being a parent company of Thanachart Financial
Conglomerate with a controlling interest (i.e. owning more than 50 percent of issued and paid-up capital), TCAP has adopted the following policies and approaches in managing the member companies of the Group as follows:
Business policies TCAP and TBANK are responsible for establishing
annual key business policies of Thanachart Group. Each subsidiary is required to formulate business plans and budgets for 3 - 5 years and submit them to the parent company for consideration, in order to ensure that they are in alignment with the established key business policies. The business plans and budgets are also subject to evaluation and review regularly. The objective is to ensure that the business plans and budgets are in line with the changing business conditions.
Supervision of subsidiaries The directors and high-ranking executives of TCAP
and TBANK are assigned to be the members of the Board of Directors of the subsidiaries. The arrangement not only enables TCAP and TBANK to assist the subsidiaries in establishing their policies and in determining their future direction, but also ensures the close supervision of the subsidiaries’ business operations. Importantly, the Chief Executive Officers of the subsidiaries are required to present a monthly performance report to the Executive Committee and the matters in the Executive Committee Meeting are then reported to the Board of Directors of TBANK.
Centralizing of support services It is a policy of the Thanachart Group to centralize
specific functions of the support services into one company which, then, is responsible for providing such services to all other member companies of the Group. The purpose is to maximize benefits within the existing resources including expertise of operations staff and various information technologies, and to reduce staffing costs. The centralized support services available now within Thanachart Group included information technology, human resource, systems and internal regulatory development, internal audit, operation control, business control,
electronic services, administration and procurement, legal and appraisal services, as well as retail debt collections and collections brokerage.
Internal Control, Audit, and Corporate Governance of Parent Company and Subsidiaries
Thanachart Group places strong emphasis on
internal control. The Group adheres to the principle of adequate and appropriate internal control by establishing procedures for business conducts, provision of services, and operations. The Group also separates the duties and responsibilities of each unit to allow internal examination of each other, based on a check and balance system. In addition, it puts in writing the announcements as well as order mandates, rules and regulations covering key business areas and operations, and this information was also disclosed to all staff in such a way that they can always study them to gain a full understanding. A central unit at TBANK is responsible for preparing and proposing the announcements, order mandates rules and regulations of all member companies of the Group.
As regard to the internal audit, the internal audit
group is responsible for auditing the business operations of all member companies of the Group, ensuring that they comply with the regulations and the established work systems. The internal audit group also assesses an adequacy and effectiveness of an internal control system in operations to ensure the use of resources and properties and prevention or reduction of errors, damages in order to propose corrective measures for improvement. In addition, the Thanachart Group has established a Compliance Unit responsible for closely monitoring changes of laws, notifications, and orders related to the Group’s business affairs and operations and disseminating the information to the staff. The Compliance Unit is also responsible for ensuring that the conduct of business affairs of the member companies of the Group is in compliance with the legal requirements.
Moreover, the Audit Committee of each member
company of the Group is responsible for governing, controll ing, and auditing their respective business operations. The Audit Committee is also allowed to carry out its duties and give its opinions in an independent manner of the management of each company. The purpose is to ensure that internal control and audit systems are effective and that the financial statements are properly reviewed.
34 Annual Report 2011 Thanachart Bank Public Company Limited
Interest and dividend income Thanachart Bank Plc.
Siam City Bank Plc.
Thanachart Securities Plc.
Thanachart Fund Management Co., Ltd.
Thanachart Insurance Co., Ltd.
Thanachart Life Assurance Co., Ltd.
Thanachart Group Leasing Co., Ltd.
Ratchthani Leasing Plc.
TS Asset Management Co., Ltd.
Thanachart Broker Co., Ltd.
Thanachart Management and Services Co., Ltd.
Thanachart Law and Appraisal Co., Ltd.
Thanachart Training and Development Co., Ltd.
T Leasing Co., Ltd.
National Leasing Co., Ltd.
Siam City Securities Co., Ltd.
Siam City Life Assurance Co., Ltd.
Siam City Asset Management Co., Ltd.
SCIB Services Co., Ltd.
Total interest and dividend income
Percentage of share held
(inclusive of related parties)
THB Million Percent THB Million Percent THB Million Percent
2009 2010 2011
Consolidated financial statements
99.98
100.00
75.00
100.00
100.00
100.00
65.18
100.00
100.00
100.00
100.00
100.00
-
100.00
-
100.00
-
100.00
29,351
12,996
121
5
93
710
112
175
264
1
-
-
-
-
2
-
382
2
-
44,214
63.48
28.11
0.26
0.01
0.20
1.54
0.24
0.38
0.57
-
-
-
-
-
-
-
0.83
-
-
95.62
21,318
12,186
76
2
56
589
206
-
-
1
-
-
-
86
3
25
228
5
-
34,781
50.73
29.00
0.18
0.01
0.13
1.40
0.49
-
-
-
-
-
-
0.20
0.01
0.06
0.54
0.01
-
82.76
20,282
-
104
2
68
384
356
-
-
-
-
-
-
271
3
-
-
-
-
21,470
61.21
-
0.31
-
0.21
1.16
1.07
-
-
-
-
-
-
0.82
0.01
-
-
-
-
64.79
As regard to the corporate governance, the Boards of Directors of TCAP and the companies in the Group place a strong emphasis on the good corporate governance both at the level of the Boards of Directors and the level of various Committees. Independent directors are appointed to the Boards of Directors and the Committees to provide effective checks and balances on the powers of executive directors. The established scope of responsibilities of the Boards of Directors and the Committees are also in line with the principles of good corporate governance. In addition, the Boards of Directors of the TCAP and the subsidiaries have established the corporate governance policy and the code of conduct which the directors, executives, and staff of the member companies of Thanachart Group are required to adhere to. Focus is given to integrity, transparency, and avoidance of any conflict of interest.
Risk management TCAP ensured that the member companies of the Group analyze and assess various risks of their business
operations and that the risks are properly managed in line with the guidelines given by the authorities. In addition, TCAP conducts an analysis of the key risks faced by the member companies of the Group which may need direct financial or management support from TCAP. The established risk management policy of the Thanachart Financial Conglomerate is in line with the guidelines given by the BOT.
Income structures of TBANK and its subsidiaries Income structures of TBANK and its subsidiaries based on the consolidated financial statements as of December
31, 2011, 2010 and 2009 are as follows;
A table of income structures of TBANK and its subsidiaries (the consolidated financial statements)
Annual Report 2011 Thanachart Bank Public Company Limited 35
Percentage of share held
(inclusive of related parties)
THB Million Percent THB Million Percent THB Million Percent
2009 2010 2011
Consolidated financial statements
Interest Expense Thanachart Bank Plc. Siam City Bank Plc. Thanachart Securities Plc. Thanachart Fund Management Co., Ltd. Thanachart Insurance Co., Ltd. Thanachart Life Assurance Co., Ltd. Thanachart Group Leasing Co., Ltd. Ratchthani Leasing Plc. TS Asset Management Co., Ltd. Thanachart Broker Co., Ltd. Thanachart Management and Services Co., Ltd. Thanachart Law and Appraisal Co., Ltd. Thanachart Training and Development Co., Ltd. T Leasing Co., Ltd. National Leasing Co., Ltd. Siam City Securities Co., Ltd. Siam City Life Assurance Co., Ltd. Siam City Asset Management Co., Ltd. SCIB Services Co., Ltd.
Total interest expense Net interest and dividend income Non-interest income
Thanachart Bank Plc. Siam City Bank Plc. Thanachart Securities Plc. Thanachart Fund Management Co., Ltd. Thanachart Insurance Co., Ltd. Thanachart Life Assurance Co., Ltd. Thanachart Group Leasing Co., Ltd. Ratchthani Leasing Plc. TS Asset Management Co., Ltd. Thanachart Broker Co., Ltd. Thanachart Management and Services Co., Ltd. Thanachart Law and Appraisal Co., Ltd. Thanachart Training and Development Co., Ltd. T Leasing Co., Ltd. National Leasing Co., Ltd. Siam City Securities Co., Ltd. Siam City Life Assurance Co., Ltd. Siam City Asset Management Co., Ltd. SCIB Services Co., Ltd.
Total non-interest income Total interest and dividend income
and non-interest income
99.98 100.00 75.00
100.00 100.00 100.00 65.18
100.00 100.00 100.00 100.00 100.00
- 100.00
- 100.00
- 100.00
99.98 100.00 75.00
100.00 100.00 100.00 65.18
100.00 100.00 100.00 100.00 100.00
- 100.00
- 100.00
- 100.00
14,298 5,475
5 - - - -
20 - - - - - - - - - - -
19,798
24,416
4,703 1,681 1,267
444 3,938 7,205
65 22 32 60 1 - - - -
110 2,255
32 5
21,820
46,236
30.92 11.84 0.01
- - - -
0.04 - - - - - - - - - - -
42.81
52.81
10.17 3.63 2.74 0.96 8.52
15.58 0.14 0.05 0.07 0.13
- - - - -
0.24 4.88 0.07 0.01
47.19
100.0
7,329 4,233
2 - - - - - - - - - - - - 2 - - -
11,566
23,215
2,715 2,296 1,302
479 3,085 5,828
83 - -
56 1
14 -
11 1
235 2,637
65 2
18,810
42,025
17.44 10.08
- - - - - - - - - - - - - - - - -
27.52
55.24
6.46 5.46 3.10 1.14 7.34
13.87 0.20
- -
0.13 -
0.03 -
0.03 -
0.56 6.28 0.15 0.01
44.76
100.0
6,734
- 1 - - - - - - - - - - - 1 - - - -
6,736
14,734
2,393 -
1,027 437
2,672 11,637
96 - -
57 1
43 -
37 3 - - - -
18,403
33,137
20.33
- - - - - - - - - - - - - - - - - -
20.33
44.46
7.22 -
3.10 1.32 8.07
35.12 0.29
- -
0.17 -
0.13 -
0.11 0.01
- - - -
55.54
100.0
A table of income structures of TBANK and its subsidiaries (the consolidated financial statements) (Cont’)
36 Annual Report 2011 Thanachart Bank Public Company Limited
Interest and dividend income
Interest expenses
Net interest and dividend income
Non-interest income
Total interest and dividend income and non-interest income
THB Million Percent THB Million Percent THB Million Percent
2009 2010 2011
The separated financial statement
29,548
14,959
14,589
7,304
21,893
134.97
68.33
66.64
33.36
100.0
21,397
7,375
14,022
4,070
18,092
118.27
40.77
77.50
22.50
100.0
20,421
7,863
12,558
3,328
15,886
128.55
49.50
79.05
20.95
100.0
Income structures of TBANK based on separated financial statements for the year ended December 31, 2011, 2010 and 2009 were as follows;
A table of income structures of TBANK (the separated financial statements)
Nature of Business Operation of Each Business Group Business Policy and Strategies of Thanachart Group
In 2011, Thanachart Group has determined its strategic direction to become a fully integrated financial services
group capable of offering a full range of quality products and services that cater to the financial needs of the customers in an efficient manner. To achieve this goal, Thanachart Group has set up its vision “Becoming a fully integrated financial services group; aiming at creating an excellence in our services and product development, so as to satisfy our customers’ financial needs, with the cooperation and unity of all the members of the Group.”
Such vision was developed from three major fundamentals which are providing fully integrated financial services
(Universal Banking) with TBANK being the main services offering; focusing on satisfying of our customers’ different needs (Customer Centric); and cooperating from all departments wholeheartedly to provide excellent service to customers (Synergy).
The endeavor and accomplishment from the three major fundamentals not only allowed Thanachart Group to be
a fully integrated financial services group with highly successful in competition, but also is a key to drive Thanachart Group to become one of Thailand’s leading banks over the next three to five years.
From our goal to become a fully integrated financial services group, Thanachart Group aims to become one of
Thailand’s top five leading banks in the commercial banking industry. A result from merging with SCIB allows Thanachart Group to possess an asset size appropriate for business competition and gain an ability to diversify risks by expanding corporate loans to small-sized and medium-sized enterprises so as to provide varieties of alternatives to customers. Moreover, synergy of Customer Experience Management and Sale and Service Model system from Scotiabank enables Thanachart Group to offer a superior experience by providing the best services to fully satisfy financial needs of our customers as well as creating financial performance at the level equivalent to that of Commercial Bank industry’s average. Besides that, Thanachart Group also puts an emphasis on diversification of income sources in order to balancing interest income and fee-based income, by focusing more on fee-based transactions and cross-selling transactions. These aims have been communicated to all of our staff. In 2011, the Thanachart Group has set six Strategic Intents as follows:
Annual Report 2011 Thanachart Bank Public Company Limited 37
1. We intended to provide our customers with a superior experience by offering the best service and a total financial solution to their unique needs.
2. We intended to be the dominant market leader for Hire Purchase Business. 3. We intended to aggressively grow the housing loan portfolio to be the top-three in market share of the
Commercial Banking Industry. 4. We intended to grow the loan portfolio (corporate and SME) higher than industry average. 5. We intended to increase the fee-based income proportion to be on par with industrial average. 6. We intended to enhance our services and support productivity with cost effectiveness. The above six Strategic Intents were communicated to all staffs at all levels so that they all shared a mutual
objectives consistent with visions and strategic objectives of the Thanachart Group. In order that the strategies were in alignment, efficiently evaluated and able to manage the organization systematically, Thanachart Group has developed a plan namely “CEO’s Six-Point Agenda” which served as a tool to enhance the set target to be efficient and systematic success. Business Operations of Each Business Group Commercial Banking Business
Characteristics of Products and Services TBANK operated its businesses in compliance with the Financial Institutions Business Act and other relevant
notifications issued by the Bank of Thailand (BOT). It acts as a non-life and life insurance brokerage agent, an advisor and investment unit distributor for mutual funds, trustee services for mutual funds, custodian services for private funds, securities brokerage, securities trading, debt instrument trading, securities registrar, and a selling agent for gold derivatives.
As of December 31, 2011, TBANK had a total of 676 branches (excluding the headquarters or Tonson branch), 2,151
ATMs (Automatic Teller Machines), 57 CDMs (Cash Deposit Machines), 135 Passbook Update Machines, and 79 foreign exchange booths (35 in-branches, 43 stand-alone and 1 mobile car).
Group of Products and Services TBANK improves and developes products to better serve various needs of our customers. Its four main products and
services were as follows:
Group 1 Deposit Products
Deposit products are offered to customers, both individuals and corporates. There are 4 major types of deposit products which are saving deposit, fixed deposit, current deposit and foreign currency deposit.
In 2011, the merger of TBANK and SCIB had been scheduled to complete by October 1, 2011. Therefore databases of the customers and deposits of both TBANK and SCIB must be combined into one to serve customer’s need perfectly after the merger. To do so, all resources were used to develop information systems and other necessary systems to be able to complete the merger within the timeline. Because of that, TBANK did not focus its effort on launching any new product to the market. Moreover with the rising trend of interest rate, TBANK changed strategy by:
1. Emphasizing on expanding customer base to both small-sized and medium-sized.
2. Expanding customer base especially on saving deposit and current deposit by launching new saving deposit product “Corporate Saving Plus” to broaden customer base.
Owing to the success of the merger, TBANK can successfully serve more than three million customers of both TBANK and SCIB through our 676 branches nationwide without any interruption.
Competitive Strategies Characteristics Products and Services
38 Annual Report 2011 Thanachart Bank Public Company Limited
Group 2 Lending Products
1. Personal Loans, consist of:
Home loans under the brand of “TBANK Home Loan”, Multi-purposed loans named “Home Cash” and “Mortgage Cash”, Education Loans called “Scholar Loan”, Wish-list loans which are credit lines given to the hire purchase customers with good repayment records, new products of Credit Card under the name of Thanachart “Drive Visa/Master Card” given to the hire purchase customers with good repayment records and the depositors.
2. Automobile SMEs
TBANK offeres this product to car related entrepreneurs who have short-term financial needs with the proceeds of the loans to be used as their working capital or for enhancing their liquidity position as well as those who have long-term financial needs with the proceeds of the loans to be used for business expansion or reducing funding cost. These included guarantee/avals and trade finance.
TBANK placed emphasis on efficient service delivery and fully integrated products that fulfill to all customer needs. As well, marketing promotion, which is in line with the situation and competitive condition, is highlighted. The Retail Banking Department is responsible for developing products, terms and conditions, as well as interest rates charged. The target customers are divided into four groups, i.e. customers who needed home loans, customers who needed personal loans with houses as collateral, hire purchase customers with good repayment records and customers who need to study further in a higher level of education. The main distribution channel is personal sales and marketing teams that are responsible for the sales target set in the business plan. Moreover, branches are channels to advertise personal loans or new products to the customers.
TBANK places emphasis on lending to car related entrepreneurs.
The plan is set together between the Product Development team and Marketing team. Focus is given to a selection of the target customers, with whom TBANK has their database and good relationships. Also, TBANK continues placing an emphasis on promoting good relationships with its customers by providing the customers with advices on financial and business planning. This is for maintaining the TBANK’s existing customers. TBANK continues developing loan products that in corporate other financial services, ensuring that the customers have the credit line and products that matched their financial needs as well as the financial structure that were appropriate to their business operations. Loan approval authority was delegated by making use of the credit scoring techniques as a main tool for screening and approving applications for standard loan products. The main distribution channels were in Bangkok and its vicinity and in the upcountry.
Competitive Strategies Characteristics Products and Services
Annual Report 2011 Thanachart Bank Public Company Limited 39
3. Corporate Loans In 2011, TBANK
classifies its corporate finance customers into two major groups as follows; 1.)Large scale businesses which are those of annual sales revenue of over THB 600 million; and 2.) Small-sized and Medium-sized enterprises (SMEs) which include the group of customers with annual sales revenue of less than THB 600 million.
4. Automobile Hire Purchase Loans
TBANK give hire purchase loans for new and used cars. The Bank also offeres sale and lease back services under the product named “Cash Your Car”. This product is in response to hire purchase customers who need cash, with a sell ing point of higher credit line than a personal loan, lower interest rate and longer period of installment payment than a personal loan. Customers are able to choose the period of payment and installment plan at the most suitable for them.
In 2011, TBANK concentrates on maintaining its existing customer base for SME customers by launching products for those with good repayment records and also allowing loosen schemes for customers who are affected by flooding crisis. For corporate loan customers, TBANK places an emphasis on lending programs that match their financial needs. Apart from the products, TBANK places an emphasis on improving work processes in order to be more efficient, yet flexible while having a proper Internal control and a proper risk management system.
TBANK’s hire purchase loan services are provided across the
country through car dealers and TBANK’s branches. In setting the policy to offer a price, the Bank considers external factors such as a competition in the market and internal factors such as cost of fund and loan risk. In addition, TBANK places an emphasis on sales promotion activities with car dealers in each region, aiming to offer high purchase loan conditions that meet the need of regional dealers and customers the most, as well as establishing relationships with the automobile manufacturers in order to gain a larger market share of the automobile hire purchase business and promote the image of a leading loan provider of automobile hire purchase. TBANK increases distribution channels, providing customer’s convenience by offering the “Cash Your Car” product through TBANK branches.
Competitive Strategies Characteristics Products and Services
40 Annual Report 2011 Thanachart Bank Public Company Limited
5. Trade Finance TBANK provides a
full range of trade finance products and services including Import Letter of Credit (L/C), Trust Receipt, Collection Agency of D/P and D/A for oversea buyers, Packing Credit, Export Bills Purchased/ Discounted, Export Bills for Collection, Letter of Guarantee, Stand-by L/C, and Oversea Money Transfer.
6. Personal Loans
TBANK provides many types of unsecured personal loans. To be accessible and responsive to cover a wide range of customer needs, therefore the purpose of loans may or may not be specified. TBANK’s personal loans are serves under the product names as follows:
- T-Loan T-Loan is a
multi-purpose loan providing for general customers. The repayments are arranged in equal installment monthly and specified time.
- Wish-List loan Wish-List loan
is an additional credit l ine of loan provided to TBANK’s hire purchase customers who have good repayment record.
- Special for Corporate Staff
TBANK provides this loan specifically to customers whose companies have a campaign with TBANK
The main factors that promote trade finance services to customers are accuracy in services, convenience, competitive interest rate and fees. The Bank took into consideration the customers’ needs and the promotion of business transactions as the main concerns. For the corporate clients, the Bank has the target to expand customer base to large scale businesses and SMEs. The Bank provides trade finance credit limit, liquidity supports, and specialist advices on trade finance documents for customers. TBANK also developes trade finance products and services to cater to customer needs. The global business alliance network is useful for fast and convenience service which provides customers’ satisfactory on the Bank’s products and services.
Products under unsecured personal loans defined competitive
strategies on product development, marketing campaign, distribution channel, and appropriate services to serve target customers’ needs. Thus TBANK provides a variety of products for customers to choose appropriately by life stage and life style, These products have been designed in such a way that are easily understandable and practical for every day needs.
Main competitive strategies of each product 1. Personal Loan Providing a variety of product to carter to customer needs in
each group that fit their purposes. 2. Revolving Credit Card
Providing cardholders with a credit line to spend for any purposes. Customers can withdraw cash within a credit line as per their needs at ATM worldwide.
3. Credit Card Emphasizing on everyday needs of cardholders with simplified
and practical use of he card. Cardholders received benefits as per their needs for every purchase.
Competitive Strategies Characteristics Products and Services
Annual Report 2011 Thanachart Bank Public Company Limited 41
- Scholar Loan Scholar loan is
a loan for payment of tuition or any expenses for obtaining a master’s or doctorate degree.
- P e n s i o n Secured Loan
This is a special multi-purpose loan for government employees w h o r e c e i v e m o n t h l y pension payment from the Comptro l le r Genera l ’s Department.
7. FLASH Card is a
product that provides cardholders with enhanced flexibility as it serves as a source of a revolving credit. FLASH Card places an emphasis on fast and convenience service which enables the cardholders to withdraw cash from ATMs worldwide. FLASH Card also allows the cardholders to pay the minimum amount in each collection period.
8. Credit Card Services
This product provides the line of credit to purchase products/services as cash or allows cardholders to withdraw cash. TBANK, collaborates with VISA and MASTERCARD to provide credit card in multiple types suitable to customers’ qualifications and needs under the following names:
Competitive Strategies Characteristics Products and Services
42 Annual Report 2011 Thanachart Bank Public Company Limited
- T h a n a c h a t “Drive” Credit Card :
For customers who needed a credit card with cash back for every payment made at any gas stations.
- T h a n a c h a t Platinum Credit Card :
For customers who are looking for exclusive services and privilege benefits in a view of luxury and convenience.
TBANK offers electronic
products and services that enabled customers to make financial transactions at a better efficient manner. These services included fund transfer, Automatic Transfer Service (ATS), online settlement for financial transactions through the Bank of Thailand’s Automatic High-Volume Tr a n s a c t i o n N e t w o r k (BAHTNET), automatic money transfers between banks (Bulk Payment System), Bil l Payment service for goods and services and a debit card. To meet the customer needs, the Bank has also developed the service system through the Internet, which are as follows:
- Thanachart i-Net service
- Thanachart SMS Alert service
- Cash Back Debit Card
The strategy focuses on cross-selling and up-selling via bank
branches to both small and large scale companies. For individual customers who needed convenient transaction and safety for money transfer, TBANK initiates the promotion campaign aiming at easy accessibility and services. The money can be received on the same day of a transfer. Branches have been available in shopping centers or nearby office areas for customers’ convenience.
In 2011, TBANK offered services as follows: 1. Internet Banking Service. This service was for both individual
and corporate customers in order to broaden channels for customers to facilitate their financial transactions.
2. Financial Transaction Notification via SMS service. This 24-hour service notified all transactions i.e. deposit, withdrawal and money transfer via SMS to the customers’ mobile phone number registered with the Bank.
3. An exclusive Cash Back Debit Card. The value of this service was that customers receive cash back directly into their accounts for every spending. The EMV technology provided an ultimate security to protect a card from data stealing.
Competitive Strategies Characteristics Products and Services
Group 3 Electronic Products and Services
Annual Report 2011 Thanachart Bank Public Company Limited 43
1. Foreign Exchange Services
TBANK’s services include foreign exchange services in forms of; bank no t e s and t rave l e r ’s cheques, money changers, forward foreign exchange for international business transaction, inward and outward foreign currency transfers for goods and serv ices , t rans fer for personal accounts, account opening for Foreign Currency Deposit (FCD), etc.
2. Bill of Exchange
(B/E) TBANK has expanded
its bill of exchange services to every branch nationwide resulting in more convenient accessibility to customers. The product is well accepted by the customers.
3. Securities Business Support Services
TBANK’s securities business support services are, for example, Custodian, Trustee, Fund Supervisor and Bondholder Representative.
TBANK has expanded its branch network and currency exchange booths to serve all business sectors and tourists nationwide. TBANK also adjusts exchange rates by benchmarking with the movements of the world’s currency market. As a result, its customers receives real time rates and fair prices.
TBANK has developed B/E service to be safer and more
convenient to enhance customers’ confidence by using a B/E passbook that allow customers to review transaction lists and outstanding of investments in each bills of exchange.
TBANK also facilitates its customers by transferring payments of
principal and interest when the B/E reaches its maturity or transferring a payment of interest of each period automatically to the customers’ saving accounts or current accounts as stated in each purchase order. Target customers are those depositors both individuals and corporates who have financial literacy and experience in investing in debt instruments and are able to accept a certain level of the Bank’s credit risk.
Besides acquiring Foreign Sub Custodian license from the SEC
in order to serve Thai Funds which invest overseas, in 2011, TBANK applied and was granted a Registrar license from the SEC to support customers transferred from SCIB and to fully offer all range of services to meet customer needs. TBANK continues to develop business by utilizing the Bank’s network along with providing securities business support services to support the financial management of investment funds.
Competitive Strategies Characteristics Products and Services
Group 4 Other Products
44 Annual Report 2011 Thanachart Bank Public Company Limited
Influential Factors of Constraints on Business Operation
The economic outlook for the first nine months of
2011 was likely to expand moderately, although it was slow down in the second quarter as the production sector faced supply disruption problems following Tsunami disaster in Japan. In addition, exports of goods and services in Asian Region was decelerated due to uncertainty growth of the global economy in the last quarter of the year, resulting from real estate problems, unemployment problem in the U.S., and the European sovereign debt crisis. Besides, Thailand faced the widespread floods’ impact across the country, especially in the central region such as Ayutthaya and Patum Thani provinces, in which seven industrial estates were located. The total damages were amounted to THB 1,300,000 million approximately. These circumstances affected all sectors, especially productions and exports of hard disk drive, automobile, electronic bulbs and parts, and electric appliances.
Consequently, the economic growth in the fourth
quarter was dramatically contracted compared to the previous year, and was forecasted to grow at an annualized rate of 1.8 to 2.0 percent approximately. The expenditure of the government’s investment budget was reduced as the capital expenditure disbursement under the Thai Khem Khang: TKK 2012 program was declined. However, private sector investment remained sound.
Apart from economic factors, the commercial banks
needed to divert to ensure that they are properly prepared for entering the ASEAN Economic Community (AEC)’s 2015 Financial Sector Master Plan Phase II, implementing process between 2010 – 2014. This circumstance had drawn plenty of attention and awareness from commercial banks during the past years. The Financial Sector Master Plan phase II’s main policies could be categorized into three key pillars:
1) Reduce system-wide operating costs, including regulatory costs and costs of legacy non-performing assets, in order to enhance the efficiency of financial institutions system.
2) Promote competition and financial access by increasing of new service providers, as well as expanding business scope of existing service providers. This will help induce competition in price and service quality, as well as the opportunity for boarder financial access. Accordingly the efficiency of overall economy will increase.
3) Strengthen financial infrastructure, by enhancing the capability and tools for risk management, improving the information system for risk management, reviewing the financial laws that support risk management, strengthen the information technology (IT) infrastructure and capacity, and enhancing the capacity of human resources.
After the Bank of Thailand (BOT) has launched new
policies encouraging Thai commercial banks to gain strength from 2010 to 2011, the year of 2012 would be the phase of promoting competition. Accordingly, BOT has granted permission for foreign bank branches to open two additional branches and allowed any existing foreign bank branches in Thailand to step up as a subsidiary that could have a maximum of 20 branches and 20 off-premise ATMs. Thai commercial banks, therefore, need to improve their capability to withstand their market share and compete in the system.
Industry Condition and Competition
At the end of 2011, the total number of commercial
banks in industry registered at 31, of which 16 were domestically registered banks, and 15 were foreign bank’s branches.
The outstanding amount of deposits in the
commercial banking industry at the end of 2011 stood at THB 7,990,823 million, of which THB 7,367,485 million or 92.2 percent of total deposits were at the domestically registered banks, and THB 623,338 million or 7.8 percent of total deposits were at foreign bank’s branches. The total deposits of domestic banks increased 6.69 percent from the same period of the last year.
In terms of net loans of the commercial banking
industry, the total amount was THB 9,782,193 million. From the total net loans of industry, of which THB 8,732,797 or 89.27 percent of total net loans came from domestic banks and THB 1,049,396 or 10.73 of total net loans came from foreign bank’s branches. Comparing to the previous year, the total net loans increased 11.63 percent due to a real growth of an economic sector of the country.
Besides the competition within the commercial
banking industry, commercial banks also faced with other competitions from non-bank institutions such as non-banks, financial and capital market, as well as the
Annual Report 2011 Thanachart Bank Public Company Limited 45
government’s specialized banks, resulted from changes in the regulators’ rules and regulations. The changes allowed for more flexibility and prepared the industry for the financial liberalization in the future. The increase of competitions has caused the commercial banks to increase competitive advantages by developing differentiations, called non-price strategies. The strategies are as follow: developing a more diverse range of financial products to meet the needs of specified customers (Customer Segmentation), increasing more distribution channels to cover potential customers across the nation such as increasing of branches in department stores, ATM booths, Electronic corner (ATM + CDM + UDP), etc., improving quality of service by using Customer Experience Management, making a good impression on customers by using Customer Data Analysis in order to offer suitable products and services that meet the customers’ needs, and establishing business alliances and merger in the financial industry. The objectives are to provide customers with greater convenience and to cater to customers’ all financial needs. Moreover, the commercial banks placed a strong emphasis on creating a corporate image through advertising media, public relations, and an establishment of a greater corporate social responsibility. In addition to a competition in interest rate, non-price strategy would help commercial banks substantially to differentiate their competitive positioning leading to competitive advantages in the future.
Regarding the interest rate trend, the most recent
meeting of the Monetary Policy Committee (MPC) on November 30, 2011 presented a resolution to decrease policy interest rate by 0.25 percent (from 3.50 percent to 3.25 percent), which was the first reduction of policy interest rate of the year (since the beginning of the year 2011, interest rate policy has been continuously risen, by 1.50 percent). The causes were an increasing risk of the global economy downturn and the remaining weak confidence of private sector from the floods’ impact of 2011.
The Company’s Size Compared to Competitors
In 2011, TBANK had accomplished in merger with
Siam City Bank on October 1, 2011, allowing TBANK to enhance its potential and competitive edge. Presently, TBANK have 676 branches in total. It had THB 886,060 million in its total assets, increased by THB 12,857 million from the previous year or 1.47 percent. The Bank’s ROAA was at 0.89 percent, ROAE was at 10.61 percent, total loans were THB 635,220 million, increased by THB 28,367 million or 4.67 percent from 2010. In addition, the Bank had 2,151 ATM booths. Moreover, to maintain market
leadership of hire purchase industry, TBANK purchased and held 65.81 percent of Ratchathani Leasing’s shares. Ratchthani Leasing has a strong emphasis on commercial cars (trucks and taxi), second-hand cars, and large-sized motorcycles (Big Bikes).
Trends in Competition
According to economic forecasts from domestic and
international research houses and financial institutions, economic indicators signaled an improvement. In 2012, the Thai economy is expected to grow at 4.5 to 5.5 percent from the previous year, driven mostly by economic restoration after the flood in 2011 which is expected to begin in the first quarter of 2012, as well as government stimulus policies employing various measures such as a rice pledging scheme, increase in the minimum wage and corporate income tax reductions, and a low base of 2011 economic figures. Yet, the weak of global economy continues to be a major factor that could undermine Thai economy and must be closely watched. As for the economy of the United States, although the unemployment rate declined in the fourth quarter of 2011 yet it remained high, the real estate sector has not yet recovered, while public debts stood at high level. Meanwhile, the debts crisis in Europe, especially in Greece was ongoing and began to spread into the financial sector of the Eurozone while no solid solution has been reached. These may be the key factors to cause Thailand’s exports in 2012 to slow down. Nonetheless, the inflation rate in 2012 is estimated to be similar to the previous year. The 2012 headline inflation is expected to be at 3.2 percent, caused by rising fuel prices and lower demand for commodities as a result of the global market downturn while domestic production costs grow higher than minimum wage, higher transportation costs from levy to oil fund, and higher rice price from rice pledging scheme. Due to the continuous increase of the policy interest rate to 1.50 percent in 2011, it is therefore estimated that in 2012 BOT will adjust the policy interest rate slightly.
As BOT has promoted competition under the 2nd
Phase of development plan which prepared for entering the AEC, it prompted Thai commercial banks to be more enthusiastic and more competitive. The competition trend in the Thai commercial banking industry in 2012 will be a service development under the Customer Centricity especially on Universal Banking and also the restructuring of branches to serve customers more effectively which enhances the Fee Based Income and increase efficiency of the services such as Internet Banking and Mobile Banking. Moreover, the quality improvement and business service in
46 Annual Report 2011 Thanachart Bank Public Company Limited
Trade Finance and Cash Management will also build the banks’ interest this year. Building the Strategic Alliances with other businesses to expand the network and extending business potentials will also allow the commercial banks to better serve their target customer versatile. The strategy should also be complemented by the Bundling Product and Cross-selling within the bank’s own business group such as the Bancassurance in the life assurance and insurance businesses.
For risk factors in 2012, the global economic
recovery is a critical issue that must be monitored closely, especially the economic recovery in the U.S. where its labor market got a better signal at the end of 2011 and the public debt issue in Europe is intensifying and extending to other countries’ economies. France, Italy and Spain will therefore need to exercise strict Fiscal Consolidation while they are still lack of solid measures to solve this problem. Not only economic problems in the U.S. and Europe, the Asian economies that are tied to the global economy, especially on the export sector, started to slow down at the end of the year. Furthermore, political uncertainty in Thailand and performance of government in the fourth quarter of 2011, along with unclear guidelines for sustainable water management to prevent the flood in the long run may affect the confidence of consumers and investors in both inside and outside the country.
Products of Securities Business and Fund Management Business
Securities Business is provided to customers
through TNS. The company was granted a full license to operate a full range of securities businesses including securities brokerage (inside and outside Thailand), securities underwriting, investment advisory service, securities borrowing and lending service, financial advisory service, mutual fund management, private fund management, venture capital management, securities registrar, and derivatives business Sor 1. Also, the company is engaged in other related businesses that supported the securities business. As for Fund Management Business, this service is provided through TFUND who operates mutual funds, private funds, provident fund management businesses and investment advisory businesses.
Securities Business Products and Services TNS operates two key areas of business, brokerage
business and investment banking and advisory business. As of December 31, 2011, the company had a total of 36 branches and offered the following services:
1. Brokerage Business covers brokerage services
which included a service of securities dealing, securities trading, and giving investment advices to investors whether individual, retail, institutional, local or foreign, to make decision on their investment.
2. Derivative Business covers trading services for future contracts and derivatives.
3. Securities Borrowing and Lending (SBL) covers services of borrowing or lending securities for customers who has a desire to borrow or lend securities.
4. Investment Advisory covers services of seeking or issuing new financial products, whether local or foreign, in order to satisfy the customers’ needs. This also includes providing customers with investment planning and investment diversification by prioritizing customer’s suitability and investment objectives for each customer. Such investment covers various types of instruments.
5. Investment Unit Dealer covers services of sale support and provided fund facts and related information on mutual funds of various asset management companies that TNS represents.
6. Financial Advisory and Securities Underwriting Services covered financial advisory business, underwriting service of debt and equity securities both as a role of lead underwriter, co-underwriter, and dealer.
7. Securities Registrar covers three types of services, namely, a securities issuance registrar, securities holder registrar and a registrar for the Employee Stock Option Program (ESOP).
Competition and Market Outlook 1. Brokerage business in 2011 was relatively
volatile, especially in the second half of the year. The stock market in August 2011 reached its peak level in 15 years at 1,148 points and later in September 2011 dropped sharply due to a number of negative factors, both domestic and international such as economic disruption due to the flood and the debts crisis in euro-zone economies, especially in the PIIGS. In 2011, trading volume reached THB 7.19 trillion, the highest volume since 1975. Retail client transactions captured the highest volume at 55
Annual Report 2011 Thanachart Bank Public Company Limited 47
percent of the market while foreign clients’ transactions returned to a net sales value of THB 5,290.42 million. In terms of mobilization of the number of initial public offering (IPO) in 2011, there were a total of 12 new IPOs (5 companies in SET and 7 companies in MAI). In 2011, the SET index closed at 1,025.32 points, 7.44 points lower than 2010 while the average daily trading volume was at THB 29,473.29 million, the highest volume for SET and the second highest behind Singapore Securities. TNS developed new financial products such as the SBL products for trading of foreign securities (offshore securities), so that investors can diversify the risks of investing in a full range of securities. TNS’s total trading value in 2011 was THB 553,069.59 million, accounted for 4.43 percent market share, ranked number 10 out of 35 companies in the industry.
2. Currently, there are a total of 41 members in the Thailand Future Exchange (TFEX), of which 36 are general securities companies and 6 are gold-trading members. In 2011, total trading volume was 10,027,116 contracts, or a daily average of 41,145 contracts, an increase of 120 percent from a daily average of 18,676 contracts in 2010. As of December 30, 2011, there were 56,452 outright contracts, a decrease of 28 percent from 77,955 outright contracts in 2010. The key contributing factor was the popularity of Gold Futures trading which almost tripled in trading volume from 971,423 contracts in 2010 to 3,989,278 contracts in 2011, with a daily average of 16,350 contracts, valued at THB 11,037 million as the gold price has continued to rise to a peak of over USD 1,900 per ounce in the third quarter, as a consequence of volatility of gold prices in conjunction with the extension of TFEX’s trading hours to 10.30 pm. since June 2010 onwards. TNS trading volume accounted for 2.52 percent market share, ranking number 18 out of all members in TFEX.
In 2011 there were 62,883 TFEX trading accounts,
an increase of 50 percent from 41,880 accounts in 2010. The proportions of the most active investors were domestic individual investors which accounted for 60 percent of the market while foreign investors accounted for 33.6 percent and domestic institutional investors accounted for 6.4 percent respectively.
3. Currently, an investment advisory service is being offered only by the top-rank securities companies and the large commercial banks which try to offer customers with complete and more integrated financial services. The current major customers focus their priority on the allocation of investment and diversification of financial products to get a better return on investment and to be more efficient in financial management. This
business sector, therefore, become more popular among financial institutions who try to enhance their service potential in the future. Beside domestic competitors, there is competition from foreign private banks, which focus on offering investment alternatives in various types of instruments in order to create a satisfactory return to major customers in Thailand.
4. In financial advisory and securities underwriting services, competition was aggressive, especially in mergers & acquisitions, IPOs and fund raising. Though competition focuses on price, the key competitive factor, thus, remains on service quality, expertise on providing a customer with relevant advice and solutions to a problem, having a wide network, as well as product innovation, which can create value-added and greater benefits to customers of TNS.
Fund Management Business
Products and Service TFUND put importance and emphasis on a great
range of retail mutual funds marketing strategies, in order to fully cover all needs of investors in every group and level. The company utilized many types of distribution channels for sales, such as TBANK’s branches and other investment unit distributors licensed by SEC. The TFUND’s staffs are qualified by law and are strictly required to adhere to related laws and regulations. For greater convenience, TBANK, acting as investment unit distributor, has been supporting sale and redemption of investment units offered by TFUND as well as other investment management companies it represents through electronic channels.
Competition and Market Outlook As of December 30, 2011, there were a total of
23 fund management companies, with total assets under management of THB 1,750,824.95 million (excluding Vayupak Fund, Foreign Funds, Property Fund for Resolving Financial Institution Problem and Property and Loan Fund), an increase of 2.75 percent from 2010. During 2011, there were 692 newly issued funds, accounting for THB 1,086,169.61 million of net assets. Among the newly issued funds, 228 were domestic and foreign investment funds fixed-income funds investing in debt securities with maturity not exceeding 1 year, which accounted for THB 536,033.50 million of net assets or 49.35 percent of total net assets of the newly issued funds during 2011.
48 Annual Report 2011 Thanachart Bank Public Company Limited
As of December 30, 2011, TFUND had THB 96,350.78 million assets under management from which retail mutual funds accounted for THB 78,372.94 million, private funds accounted for THB 9,087.86 million, and provident funds accounted for THB 8,889.98 million.
Insurance Business
The Insurance business of Thanachart Group can
be divided into two key areas, namely non-life insurance operated by TNI, which offers all types of non-life insurance services, and life insurance operated by TLIFE, which offers life insurance services to institutional, corporate and individual customers.
Non-Life Insurance Business
Products and Services TNI offers all types of insurance services e.g. fire,
automobile, marine, and miscellaneous. In addition, the company also operates investment businesses.
Competition and Market Outlook In 2011, non-life insurance business in Thailand
experienced a growth in direct premium income compared to 2010, and was expected to grow by 10.6 percent but at a decreasing rate as compared to 2010 which had a growth rate of 13.7 percent, primarily due to the effect of the Tsunami in Japan in April 2011, resulting in a slowdown of domestic automobile manufacturing. Moreover, the flood crisis in Thailand in October 2011 also affected the entire economy as well as domestic automobile manufacturing which, in turn, directly affected the non-life insurance business.
As for the non-life insurance market structure in
2011, automobile insurance received the highest share of the market with a total share of 59 percent, followed by miscellaneous insurance with 32 percent, fire and marine & transportation insurance with 6 and 3 percent, respectively.
In 2011, The Office of Insurance Commission (OIC)
issued stricter rules and regulations, especially on Risk-Based Capital Requirement, minimum standards of risk management in non-life insurance businesses. To comply with these rules, domestic non-life insurance companies opted to emphasize on risk management and become more careful on insurance policy underwriting to avoid high risks.
TNI focuses on a standard of products, service
quality, productivity, efficiency and honesty, as well as development of new products in order to offer new policies which are more coherent with economic and social conditions and responsive to customer needs, by taking
into consideration a fair premium rate to customers. Furthermore, the company constantly adjusted its progressive competitive strategy to be coherent with ever-changing conditions, by ways of increasing sales channels, expanding the customer base, and maintaining the existing customer base. As much as 95 percent of all customers are those with a policy claim limit not exceeding THB 5 million. The customers mostly selected automobile and fire insurance and these customers mainly are the Bank’s lending customers as well as customers from the company’s marketing campaigns.
This service is only offered to domestic customers.
The customer group with a policy claim limit of THB 5 million are mostly comprised of institutional customers, private enterprises that possess branch network, both in commerce and industrial sectors. A major portion of this customer group choose miscellaneous and fire insurances. As aforementioned, it can be concluded that TNI has never relied on any customer group that accounted for more than 30 percent of TNI’s total revenue.
According to Thai Reinsurance Public Company
Limited, the Thai economy is expected to continue growing after 2011, but less than the growth in 2011 due to the impact of the flood crisis in Thailand and also the complexity and uncertainty of climate, economic, social, and political conditions. These are key variable factors determining the direction of the non-life insurance industry in Thailand. If economic growth is in line with assumptions, the insurance industry would likely to experience a moderate expansion of 10 percent in premium received or a total of THB 151,819 million. Miscellaneous insurance received the highest growth rate 17 percent, followed by automobile insurance with 10 percent, marine & transportation and fire insurance with 6 and 3 percent, respectively.
Life Insurance Business
Products and Services TLIFE offers life insurance and saving, which can
be divided into two key categories, individual and group insurance. The license to operate the life insurance business was granted by the Office of Insurance Commission (OIC) on 22 October 1997.
Competition and Market Outlook TLIFE operates its business with a multi-distribution
channel strategy, in order to satisfy various needs of the customers by offering products and services suitable for each customer group. The company has utilized various channels, such as, the bancassurance channel, corporate
Annual Report 2011 Thanachart Bank Public Company Limited 49
network channels, insurance brokers, cooperatives, and other agents. TLIFE is customer centric, developing new products and offering services suited to the needs of customers and appropriate marketing channels. As TLIFE is a part of the Thanachart Group, the company’s customers included savings deposit customers, automobile hire purchase customers, mortgage loan customers, SME loan customers, as well as customers from other corporates, co-operatives and companies through other distribution channels.
In the 10-month period of 2011, the life insurance
industry captured a total market share of THB 263,317 million representing an increase of 12.12 percent. The main market sector went to individual and group insurance as follows:
Individual insurance received a total premium of
THB 221,246 million which accounted for 84.02 percent of the market and a 15.38 percent increase, due to new product innovations which are more coherent with the economic trends, interest rates, target customers’ need as well as sales promotions and marketing staff skills.
Group insurance received a total premium of THB
30,587 million which accounted for 11.62 percent of the market, yet, this represented a 3.20 percent decline. The main source of premiums, 53.59 percent, came from Group Mortgage. In the 10-month period of 2011, mortgage insurance experienced a declining growth at 15.02 percent due to a lack of tax incentives on property transfer fees and mortgage registration fees to encourage consumers to complete housing transfers as in 2010. Moreover, the flood occurring in many areas during the fourth quarter of 2011 has slowed consumer buying decisions due primarily to the cost of flood evacuation and provision for the cost of home repairs after the flood. Meanwhile, consumers postponed their decisions to buy a new housing in order to determine the locations safe from the flood. The cumulative 10-month of automobile market reported sales volume of 713,842 units, 13.6 percent increase compared to the same period of the previous year. The passenger vehicle market saw a growth of 17.5 percent and the commercial vehicle market of 10.6 percent due to strong purchasing power of consumers as well as growth in investment and consumption and the continuing popularity of new vehicles for the first three quarters of 2011. However, the premium from auto hire purchase loans may be subdued due to the impacts of the great flood on the domestic automobile industry.
Currently, the life insurance industry consists of 24
insurance companies. In 2011, the company occupied a total premium of THB 5,791 million, or a 2.20 percent of the market share and ranked 10th in the industry.
The Individual Life Insurance Product has a variety of products such as saving products and annuity products. The products with the highest sales figures are as follow:
Speedy Saving 10/2, it is a short-term savings
product with premiums due for only 2 years, yet providing 10 years of life insurance coverage and a cash back policy at the end of the first year at the rate of 3 percent, and the second year to-10 that the rate of 6 percent, and on maturity date at the end of the 10th year at a lump sum rate of 200 percent, equivalent to a total cash return benefit of 257 percent.
Big Bonus 12/6, it is 12 years life insurance with
premiums due for only 6 years with cash back policy for the first to -fourth year at the rate of 8 percent, the fifth to -eighth year at 10 percent, the ninth to -twelfth year at the rate of 12 percent, and on maturity at the end of the 12th year at a lump sum of 660 percent, equivalent to total cash return benefit of 780 percent.
Thanachart Annuity 85/60 (Tax Deductible
Benefit) has premium payments until 59 years of age and coverage period until 85 years of age. While providing benefit of 12 percent annuity between 60-85 years of age, totaling 312 percent cash benefits with guaranteed annuity over 20 years. For this plan, insurance premiums can be used for an income tax shield up to a maximum of THB 300,000 per year.
Thanachart Annuity 90/5 (Tax Deductible
Benefit) is a new life insurance products with a coverage period until 90 years of age and a short period of premium payments of only 5 years with an annuity benefit of 12 percent between 60 to 90 years of age, totaling 372 percent cash benefits. For this plan, insurance premiums can be used for an income tax shield up to a maximum of THB 300,000 per year.
Group Insurance provided appropriate products
to each distribution channel, comprising of Thanachart Smile Car Plus+ and Thanachart Smile Car Extra which cover all liabilities of car loans through car hire purchase, Thanachart Smile Home and Thanachart Smile Home Plus which cover all liabilities of home loans through mortgage loan, Thanachart Smile SME which covers liabilities of SME loans for enterprises through SME loans. Moreover, the Company also provides group insurance for cooperatives, other companies and organizations.
There are many factors to support life insurance
business trend in 2012; to name a few are government’s rehabilitation plan for the flood disaster in early 2012, Thai people’s concern over uncertainty of natural disaster that
50 Annual Report 2011 Thanachart Bank Public Company Limited
motivated them to be aware of and give importance to life insurance in order to mitigate risk for themselves and their families. As a result, customers purchased more life insurances while insurance companies have developed new policies of various life insurance products that are more consistent with the economic conditions and that expand distribution channels to meet customers’ needs. To provide accessibil ity, a services provider system has been developed, prior to and after sale service, training for insurance brokers and banks that are life insurance agents. In addition, the OIC has announced a policy to promote savings and awareness about savings through life insurance by giving an additional benefits of THB 200,000 income tax shield from life insurance annuities. A number of life insurance companies, therefore, have developed a variety of life annuity policies to support the diverse structure of the aging population targeting at those over 60 year old, in order to get a regular income after retirement. For the aforementioned, it is estimated that the life insurance business will continue its growth at increasing rate in 2012.
Assets Management Business
Products and Services Assets Management Business operates by TS AMC
Company Limited (TS AMC) which was established on March 3, 2011. The license to operate the assets management business was granted by the BOT and under the Emergency Decree on the Asset Management Corporation BE 2543 (1998), the asset management company Registration No. 001/2554 dated April 12, 2011. It received the transfer of non-performing assets from SCIB and TBANK, including both non-performing loans and non-performing assets, in order to conduct debt restructuring with the debtors, hence, allow them to repay the debts at their real debt-service capacity and turning non-performing assets back to becoming the performing ones.
Competition and Market Outlook TS AMC operates its business with a primary
objective to manage and restructure the non-performing assets received from SCIB and TBANK. To divest or sell those non-performing assets (NPA) to third parties who are interested in real estate market, TS AMC hires a professional advisory in assets sales to determine the selling price and manage the assets in such a way that creates the highest value. It also appoints a professional asset selling agent as well as collaborates with the related group of companies to expand sales channels, such as brokers or auction agents as well as cross-selling and
through website of TNS and the other channels to reach the target customers as much as possible.
Products and Services Management
Sources of fund One source of TBANK’s fund was the its capital,
comprising of issued and paid-up capital in the amount of THB 55,137 million in 2011, including legal reserve and retained earnings. Another two key sources of fund which were;
1. Deposits which by the end of 2011 were in the amount of THB 436,040 million.
2. Borrowings which were in the amount of THB 254,296 million, of which THB 218,492 million were short-term B/E since TBANK provided B/E as another saving alternative for its customers and THB 35,804 million were long-term borrowings.
Funding or lending to related
parties At the end of 2011, TBANK extended loans to
subsidiaries and related companies in Thanachart Group as follows;
1. TGL (subsidiary of TBANK) TBANK extended loans to TGL for hire purchase
business for all types of automobile, in line with the business direction of Thanachart Group. In 2011, loan outstanding balance was THB 353 million, a decrease from THB 934 million at the end of 2010.
2. National Leasing (subsidiary of TGL) TBANK extended loans to National Leasing for
property hire purchase business as well as property leasing. In 2011, loan outstanding balance was THB 22 million, a decrease from THB 52 million at the end of 2010.
3. Ratchthani Leasing (subsidiary of TBANK) TBANK extended loans to Ratchthani Leasing for
hire purchase business for all types of automobile, in line with the business direction of Thanachart Group. In 2011, loan outstanding balance was THB 7,867 million.
4. TS AMC (subsidiary of TBANK) TBANK extended loans to TS AMC for asset
management business by receiving transfer and managing of NPLs and NPAs, in line with the business direction of Thanachart Group. In 2011, loan outstanding balance was THB 9,822 million.
Loan outstanding balance of Thanachart Group, as
aforementioned, totaled to THB 18,064 million, accounted for 2.84 percent of total loans at the end of 2011. All lending and borrowing activities were transacted under the permission of the BOT.
Annual Report 2011 Thanachart Bank Public Company Limited 51
RISK MANAGEMENT AND RISK FACTORS
An Overview of the Risk Management Thai economy grew marginally by only 0.1 percent in 2011 compared to 7.8 percent of 2010, attributed to a
combined effect of several risk factors including world economy slowdown, European sovereign debt crisis, Japan’s Tsunami disaster in the second quarter as well as the devastating floods in Thailand in the last quarter of the year which posed substantial impact on agricultural and industrial sectors in a large area. Consequently, export, private consumption, and private investment became contracted in the last quarter of the year. It is, however, forecasted that Thai economy will start to rebound by mid 2012. GDP will grow within a range of 5.5 to 6.5 percent, driven primarily by government’s flood-damage restoration measures and policies that stimulate domestic spending. Yet, there remain a number of risk factors such as uncertainty over the world economic crisis, fluctuation of capital flows, pressure from inflation, and the government’s minimum wage policy, which may adversly affect business operations. Caution must be given in business management in order to cope with uncertainties and to be ready to compete in the global arena, in particular in the year 2015 when Thailand will step into the ASEAN Economic Community (AEC).
TBANK and Thanachart Group have realized the importance of risk management. In the year 2011, TBANK
continually developed an Internal Capital Adequacy Assessment Process (ICCAP) to support risk other than credit risk, market risk and risk in compliance with Pillar 2 of Basel II framework, in accordance with the Bank of Thailand (BOT) guidelines, which will make TBANK manage funds more efficiently.
The Board of Directors and executives of TBANK closely govern, monitor and develop the risk management system
regularly to be sure that the measures are appropriate to and prompt on the ever-changing internal and external risk factors. To support the risk management system, TBANK strategically establishes a structure of the organization to support the operation under the direction and supervision of the various committees, as follow:
The Board and Committees at the Policy Level;
TBANK’s Board of Directors and the Executive Committee has a role in policy determination and establishes
guidelines for an efficient enterprise-wide risk management by taking into consideration the impact of risks on TBANK’s operational goal and financial position that has to be in line with its normal operation.
Risk Management Committee plays a role in establishing strategic plans and developing the risk management
procedure, as well as considering appropriate risk management policies and guidelines which will be proposed to the Executive Committee and the Bank’s Board of Directors for consideration and approval.
Audit Committee has a role in determining the supervisory guidelines for the operation to comply with measures of
related authorities as well as assessing the effectiveness and competency of the risk management process and internal control system.
The Committees at the Operation Level;
Asset and Liability Management Committee plays a role in supervising the structure of the Bank’s assets and
liabilities to be appropriate for characteristics of the business and in line with the Bank’s risk management policy. Investment Portfolio Committee plays a role in supervising investment in financial instruments of TBANK to be in
line with the Bank’s market risk management policy. Credit Committee plays a role in supervising the credit lending and other credit-related transactions to be in line
with the Bank’s credit risk management policy.
52 Annual Report 2011 Thanachart Bank Public Company Limited
Chief Executive Officer and President
Deputy Chief Executive Officer
Audit CommitteeRisk Management Committee
Office of Executive Committee and CEO
Asset and Liability Management Committee
Investment Portfolio Committee
Credit Committee
IT Security Management Committee
Internal Audit
Risk Management Policy and Capital Market
Credit Analysis I & II
Risk Control
Risk Management
Compliance
Executive Committee
Board of Directors
•The conduct of business affairs is under a system of check and balancewith theMiddle office, comprising of the Risk Control Department and the Back Office, being separated from the Front Office.
•TBANK would put in writing all the established policies and guidelines regarding the riskmanagement that
specifies responsibilities of related unit as the operational guidelines for the employees. Moreover, the Bank has established a four-step guideline for risk management comprising of; 1) identification of the characteristics of risk as well as risk factors, 2) development of appropriate tools and models for risk measurement, 3) the control of risks within acceptable limits and 4) the close monitoring of risk status in order to properly manage any possible risks in a timely manner.
•The difference in size and risk ratios determined for each exposure allowed TBANK to be able to perceive the
degree of severity from the possible risks. These risk variables could also be used as a ceiling or the acceptable risk level as well as to provide warning signals before severe losses occur.
The aforementioned risk management systems are developed based on prudent principles and will be reviewed
regularly to suit prevailing situations. The systems are designed to be transparent, explicit examinable and to take into consideration the interests of shareholders, customers and staff of the Bank.
IT Security Management Committee plays a role in establishing policies regarding the IT Security System, proposing preventive measures against risks arising from information and technology system, as well as monitoring, supervising and controlling the operation of the IT Security System in accordance with the proposed plan.
Audit Division has a key role in (i) reviewing internal control system, risk management system, the conduct and
disclosure of financial information, the operation, the report and supervisory procedures to govern practices in accordance with policies, work plans, rules and regulations of TBANK and its subsidiaries, official rules and regulations of relevant regulators and good corporate governance principle, and (ii) providing consult with other divisions for the sake of development and proper internal control of TBANK’s and subsidiaries’ system.
TBANK’s Risk Management Structure
As of December 31, 2011
Annual Report 2011 Thanachart Bank Public Company Limited 53
Key Risk Categories 1. Credit Risk
Credit risk arises from a situation in which the debtors or counterparties fail to repay or fulfill their agreed obligations. This might be contributed by the fact that the debtor’s financial position is under distress due to volatilities of economic conditions that pose adverse impact on businesses or the debtors’ mismanagement, which as a result, may adversely affect TBANK and the subsidiaries’ earnings and capital. The credit risk may arise from ordinary financial transactions such as credit lending, financial obligations in the form of avals or guarantees, other transactions related to credit lending, as well as investment in debt instruments issued by state agencies or state enterprises with neither guarantee from government nor the BOT and private debt instruments such as debentures.
Under its credit risk management policies and guidelines, TBANK has successfully established a credit culture.
To start with, the credit risk of the borrowers, counterparties or issuers of debt instruments will be independently assessed by the model developed specifically to each type of borrowers or counterparties by the Credit Analysis Unit. At this juncture, authorized Credit Committee would then consider and determine the level of credit risk of borrowers or counterparties, appropriate credit lines and investment budget, as well as terms and conditions on loans or other obligations. The Committee also controls the overall risk status by appropriately diversifying credit risk into various business sectors and groups of customers within the established risk ceilings. In addition, the Committee closely monitors the quality of loans to ensure proper and vigilant management by emphasizing on business capability and repayment ability under the supervision of an independent risk control unit. Apart from the aforementioned units, there is also an Internal Audit Division to verify that the credit transactions are in compliance with the BOT’s guidelines.
To ensure optimal returns under acceptable risk, TBANK has employed measuring tool called RAROC (Risk
Adjusted Return on Capital) to reflect the appropriate level of capital. Moreover, the Bank also performed stress tests to estimate any damage that may occur during the crisis. Under this condition, the borrower’s ability to repay could erode or they could fail to make a repayment under terms and conditions stated in the hypothesized contract. The risk factors in the tests were assumed to affect the industry that the debtors’ business belonged to.
Important credit risk factors 1.1 Credit concentration risk
TBANK aims to appropriately diversify its loans to various groups of customers, focusing on high potential customers and attempt to prevent concentration of loans to a particular group of customers. Under such goal, the TBANK pursues proper risk management on overall credit portfolios with close monitoring and comprehensive assessment to report to the assigned committees on a regular basis. The purpose is to mitigate exogenous risks that may adversely affect any particular group of business excessively financed by the Bank.
54 Annual Report 2011 Thanachart Bank Public Company Limited
Table of credit status As of December 31, 2011 compared to December 31, 2010 classified by business types was as follow:
2011 2010 Debt balance (THB Million)
Debt balance (THB Million) Percent Percent
Agricultural and mining 10,830 1.71 10,957 1.81Manufacturing and commerce 81,967 12.90 97,384 16.05Real estate and construction 47,972 7.55 52,406 8.64Public utilities and service 58,441 9.20 66,047 10.88Housing loans 73,636 11.59 77,636 12.79Margin loans for securities business 2,236 0.35 2,683 0.44Hire purchase 286,361 45.08 239,611 39.48Others 73,777 11.62 60,127 9.91
Total loans and accrued interest receivables 635,220 100.00 606,851 100.00
Business type
2011 2010 Debt balance (THB Million)
Debt balance (THB Million) Percent Percent
Substandard 7,026 18.65 6,649 18.04Doubtful 12,059 32.01 13,948 37.84Doubtful of loss 18,592 49.34 16,262 44.12
Total 37,677 100.00 36,859 100.00
Loan classification
The overall credit data revealed that TBANK’s lending on hire purchase business grew moderately from 39.48 percent as of December 31, 2010 to 45.08 percent of total loans and accrued interest receivables as of December 31, 2011. Most of these hire purchase loans were provided to retail customers whose credit line was relatively small and with a large number of customers, such risk therefore was well diversified.
1.2 Risks from non-performing loans
The non-performing loans are loans classified as substandard, doubtful and doubtful of loss. They have been the major concerns across financial institutions due to their adverse effect on earnings and capital of TBANK and subsidiaries. At this juncture, TBANK has focused major efforts on controlling credit quality through appropriate policies and procedures to regularly monitor the quality of the loans.
Table of the NPLs Ratios As of December 31, 2011 compared with those of December 31, 2010 were as follow:
Annual Report 2011 Thanachart Bank Public Company Limited 55
TBANK and subsidiaries’ non-performing loans increased from THB 36,859 million as of December 31, 2010 to THB 37,677 million as of December 31, 2010. From the credit overview, the non-performing loans were accountable for 5.93 percent of total loans and interest receivables, dropped from 6.07 percent as of December 31, 2010. The non-performing loans could be classified by types of business as follow:
Table of Non-Performing Loans Classified by Type of Business
2011 2010 Debt balance (THB Million)
Debt balance (THB Million)
Percent Percent Type of Business
Agricultural and mining 347 0.92 401 1.09 Manufacturing and commerce 16,588 44.03 14,924 40.49Real estate and construction 3,767 10.00 4,745 12.87Public utilities and service 5,510 14.62 5,981 16.23Housing loans 3,501 9.29 2,807 7.62Margin loans for securities business 306 0.81 1,339 3.63Hire purchase 3,553 9.43 3,977 10.79Others 4,105 10.90 2,685 7.28
Total loans and accrued interest receivables 37,677 100.00 36,859 100.00
As of December 31, 2011, TBANK and its subsidiaries, under the BOT’s supervision, had no credit risk from non-performing loans that collateral did not fully cover the remaining loan amounts after deducting provision for loan loss. This was due to the fact that 100 percent provision was allocated on such loans by the Bank in compliance with the International Accounting Standards No. 39 (IAS39).
Table of Non-Performing Loans
Change 2010 2011
Non-performing loans (NPLs) 37,425 35,606 1,819 Loans not fully covered by collateral 19,585 19,184 401 Provision for loan loss 19,725 19,374 351
Loans not fully covered by collateral after loan loss provision - - -
General provision for loan loss 383 534 (151)
(Unit: THB Million)
56 Annual Report 2011 Thanachart Bank Public Company Limited
Table of Troubled Debt Restructuring
The risk on debt restructuring arises from the re-entry of the substandard debtors, i.e. after the debt restructuring, the debtors again default on their repayments and hence re-enter the non-performing status. The problem poses adverse effects on debt-restructuring performance of TBANK and its subsidiaries. As of December 31, 2011, the outstanding principal and the accrued interest receivables of the restructured debt amounted to THB 38,816 million or 6.10 percent of total loans and accrued interest receivables. The net restructured debt (less collateral) amounted to approximately THB 14,558 million.
1.3 Risks from Collaterals
For collateralized loans, TBANK carefully assess and classify quality of each type of collateral by taking into
account the liquidity and overall risk from that collateral. The assessment result is one of the important factors applied in the classification of each credit exposure. In this regard, the collateral, both in the form of immovable and movable whose value could be appraised, is subject to appraisal or valuation complying with the BOT’s regulation. TBANK significant types of collateral are deposits and bills of exchange, marketable equity securities, non-listed equity securities, commercial immoveable property, immovable property from housing, vehicles, machinery, etc. TBANK has determined guidelines, standards and frequency of appraisal and valuation of each type of collateral. Furthermore, a report of the appraisal and valuation is made which includes clear and sufficient data and analysis to determine the price. In the case that it cannot be specified whether the collateral price has decreased or declined over time, the impairment of the asset must be considered by an official.
In the past years, automobile hire purchase loans of TBANK and its subsidiaries have continued to expand.
According to the BOT notification regarding the valueless and non-callable assets dated December 2006, the regulations on provisioning based on IAS39 whereby cars whose ownership belongs to the Bank can be used as collateral. In the case of default, the Bank is eligible to immediately repossess to collateral for the purpose of reselling in the used car market. As a result, TBANK and its subsidiaries might be exposed to risk from the inability to repossess the cars or from recovering the incurred loss by reselling the assets. Such conditions depend on various risk factors, for instance, the conditions of the used car market and the repossessed car itself.
1.4 Risk from Guarantees and Avals
Under the current customer service, TBANK and its subsidiaries are also obligated in forms of avals, letter of
credits and loan guarantees, which TBANK and its subsidiaries are held responsible for, should the customers are unable to fulfill their obligations. In managing such risk, TBANK carefully scrutinizes supporting information and applies strict approval procedures to these obligations. The close monitoring on these transactions is undertaken based on the same guideline used for its regular lending procedure of TBANK.
2010 2011
Number of debtors (persons) 53,922 20,194Outstanding principal and accrued interest receivables 38,816 28,230Loans not fully covered by collateral 14,558 12,009Revaluation allowance for debt restructuring 382 460
Total loans and accrued interest receivables 636,183 607,775
Restructured debts to total loans (percent) 6.10% 4.64%
(Unit: THB Million)
Annual Report 2011 Thanachart Bank Public Company Limited 57
As of December 31, 2011, TBANK and its subsidiaries’ obligations in the form of avals and guarantees for loans amounted to THB 26,752 million or 3.02 percent of the total assets.
2. Market Risk
The market risk arises from movements in interest rates, exchange rates and prices of instruments in money
market and capital market, which may adversely affect earnings and capital of TBANK and its subsidiaries. The market risk can be segmented into three categories including price risk, interest rate risk and exchange rate risk. At this juncture, TBANK’s policies are to control and manage these risks to remain at an appropriate level and inline with TBANK’s policy on risk management.
2.1 Price Risk
Price risk arises when TBANK and its subsidiaries’ earnings or capital are adversely affected by changes in the
price of debt and equity instruments, causing the value of TBANK and its subsidiaries’ trading and available-for-sales investment portfolio to decline.
TBANK has developed risk measurement tools based on the Value-at-Risk (VaR) model to estimate the
maximum loss amount at a certain confidence level and over a given asset holding period. TBANK also determine the various limits of transactions in order to control risk to remain in as acceptable level, for example; Position Limit, Loss Limit and VaR Limit. The Risk Control Unit, separated from the front office and the back office, has the duty of risk control and reporting on the status of the limits to the Board of Directors, departments and executives associated to the risk management. In order to ensure the efficiency and accuracy of its tools for risk measurement, TBANK requires that the tools are subject to back-testing in accordance with the Bank of International Settlement (BIS) standards. Moreover, TBANK has conducted stress testing by formulating stress scenarios which can create extraordinary reduction in stock prices. The test result could therefore shed light on the impact on TBANK earnings and required capital should such events occur.
As of December 31, 2011, TBANK and its subsidiaries’ trading investments and available-for-sale securities
classified by type of investment were as follow:
Table of trading investments and available-for-sale securities classified by type of investment
Trading investments Government and state enterprise securities 10,479 45Private debt securities 4,758 21Foreign debt securities 637 3,023Domestic marketable equity securities 38 80
Total trading investments 15,912 3,169
Available-for-sale investments Government and state enterprise securities 41,003 52,604Private debt securities 18,533 10,064Foreign debt securities 25,425 12,920Domestic marketable equity securities 7,983 8,530
Total available-for-sale investments 92,944 84,118
Total trading and available-for-sale investments 108,856 87,287
2010 2011
Fair Value (THB Million)
58 Annual Report 2011 Thanachart Bank Public Company Limited
TBANK and its subsidiaries have invested more in debt securities, thus, the value of trading and available-for-sale investments have increased. As a result, the price risk of TBANK and its subsidiaries are higher than the previous year.
2.2 Interest Rate Risk
The interest rate risk is the risk that earnings or capital are adversely affected by changes in interest rates that pose impact on its rate-sensitive items including assets and off-balance sheet items whose repricing periods are mismatched. These changes may have a negative impact on net interest income of TBANK and its subsidiaries.
It is the goal of TBANK to run their business operations under a long-term effective interest rate risk
management system. In other words, to maintain an appropriate structure of assets and liabilities which are rate-sensitive at different time intervals. To ensure maximum benefits of TBANK’s shareholders, TBANK has developed the Repricing Gap Analysis Model as a tool for measuring interest rate risk by assessing the impact that may arise from the mismatch of the repricing periods of assets, liabilities and obligations at different time intervals, which is used for risk measurement every month. In order to ensure that the risk of TBANK business operations is within an acceptable limit, they have also established an acceptable risk ceiling and an early warning risk level, taking into account the structure of assets, liabilities and obligations as well as interest rate repricing which are expected to take pace in each period of TBANK business plan. The Asset and Liability Management Committee (ALCO) is responsible for monitoring and controlling such risk very closely. To effectively design appropriate measures to accommodate the risks, the committee has to monitor economic conditions, development in the money market and capital market and the interest rate trend which could become important risk factors to the Bank’s rate-sensitive items.
Details of financial assets and liabilities as of December 31, 2011, classified by the period when the interest rates
would be repriced in accordance with contracts related to financial assets and liabilities of TBANK and its subsidiaries were as follow:
Table of Financial Assets and Liabilities
Items
Financial assets Cash - - - - - 16,006 16,006Interbank and money market items 23,000 29,523 2,655 - - 8,137 63,315Derivatives - - - - - 1,536 1,536Investments 12 14,772 46,447 57,851 16,781 13,308 149,171Loans 316,891 22,243 15,445 212,320 68,113 208 635,220Receivables from clearing house - - - - - 25 25Receivables from purchase
and sale securities and derivatives - - - - - 858 858
Total financial assets 339,903 66,538 64,547 270,171 84,894 40,078 866,131
Financial liabilities Cash 174,608 169,399 77,929 8,404 - 5,700 436,040Interbank and money market items 20,877 32,220 5,379 217 - 1,458 60,151Liabilities payable on demand - - - - - 2,131 2,131Derivative liabilities - - - - - 2,886 2,886Borrowings 999 133,517 103,060 16,700 21 - 254,297Payables to clearing house - - - - - 306 306Payables from purchase
and sale securities and derivatives - - - - - 851 851
Total financial liabilities 196,484 335,136 186,368 25,321 21 13,332 756,662
Period of interest rate repricing or due date
At call 0 - 3 months
3 - 12 months 1 - 5 years Over 5
years No interest Total
(Unit: THB Million)
Annual Report 2011 Thanachart Bank Public Company Limited 59
Based on the aforementioned structure of financial assets and liabilities, TBANK’s net interest income in the next year would decrease should the market interest rate increase. This was mainly due to the expansion of TBANK’s hire purchase business with fixed-interest-rate feature.
2.3 Exchange Rate Risk
The exchange rate risk is a risk that the earnings or capital of TBANK and its subsidiaries can be adversely affected by exchange rate fluctuations from transactions in foreign currencies, exchange rate exposures in their possession of assets or liabilities in foreign currencies. There are two types of exchange rate risk-risk from transactions in foreign currencies (Transaction Risk) and risk from exchanging foreign currency to local currency (Translation Risk).
The ALCO is responsible for monitoring and controlling this type of risk through the consideration
in the proper matching between the structure and the maturity of assets and liabilities in foreign currencies. TBANK’s policy is to also rely on the VaR ceiling in order to control the impact of exchange rate movements on earnings and capital. Nevertheless, in order to avoid the exchange rate risk, TBANK has also relied on hedging instruments such as forward contracts.
As of December 31, 2011, TBANK and its subsidiaries faced with relatively low exchange rate risk as most
of the assets in foreign currencies have been hedged by forward contracts. 3. Liquidity Risk
Liquidity risk arises from the inability of TBANK and its subsidiaries to repay their debts or obligations upon the delivery date due to the lack of ability to convert assets into cash or to mobilize adequate funds or to mobilize funds at an acceptable cost. This could adversely affect the current and future earnings and capital of TBANK and its subsidiaries. The liquidity risk management mechanism starts with the assessment of the cash flows and liquidity position over particular time horizons of TBANK when the different levels of funds may be required to accommodate deposit withdrawal, reduce other types of the Bank’s liabilities or increase the Banks’s assets by using the Liquidity Gap Analysis. Various liquidity ratios and “What if” scenarios to evaluate the sufficiency of the cash flow liquidity depending on customer behavior in extending contracts upon maturity and estimate the need of liquidity in various “What if” scenarios depending on the economic climate and extraordinary situations that may happen to TBANK and the financial institution system.
Meanwhile, TBANK and its subsidiaries developed an emergency plan in the case of a liquidity problem and
there will be a revision of the significant occurrences that affect working operations. In this regard, TBANK and its subsidiaries have assigned ALCO, controlling and managing the liquidity risk with a weekly meeting to monitor and manage risk.
The structure of TBANK’s capital fund could be classified by different type and maturity of source of funds
as follow:
Table of Capital Funds Classified by Source (Unit: THB Million)
Percent Percent 2010 2011
Deposits 436,040 58.10 532,656 70.27Domestic interbank and money market items 50,851 6.78 33,251 4.39Foreign interbank and money market items 9,300 1.24 7,294 0.96Borrowings 254,297 33.88 174,949 23.38
Total 750,488 100.00 748,150 100.00
60 Annual Report 2011 Thanachart Bank Public Company Limited
Table of Capital Fund Classified by Maturity (Unit: THB Million)
Percent Percent 2010 2011
Less than 1 year 701,284 93.44 680,818 91.00More than 1 year 49,204 6.56 67,332 9.00
Total 750,488 100.00 748,150 100.00
As of December 31, 2011, deposits and borrowings of TBANK and its subsidiaries amounted to THB 750,488 million, where sources of funds were mostly from public deposits with the maturity less than one year. This is considered a common structure of the commercial banks. Nevertheless, TBANK and its subsidiaries also issued bills of exchange and debentures in order to increase the saving alternatives for their customers.
The financial assets and liabilities as of December 31, 2011 classified by maturity date were as follow:
Table of the Financial Assets and Liabilities
Items
Financial assets Cash 16,006 - - - 16,006 Interbank and money market items 8,368 54,827 120 - 63,315 Derivatives - 1,536 - - 1,536 Investments 1 67,445 68,908 12,817 149,171 Loans 47,672 193,205 394,343 - 635,220 Receivables from clearing house - 25 - - 25 Receivables from purchase and sale securities and derivatives - 858 - - 858
Total financial assets 72,047 317,896 463,371 12,817 866,131
Financial liabilities Cash 176,616 249,835 9,589 - 436,040 Interbank and money market items 21,081 35,306 3,764 - 60,151 Liabilities payable on demand 2,131 - - - 2,131 Derivative liabilities - 2,886 - - 2,886 Borrowings 999 217,447 28,721 7,130 254,297 Payables to clearing house - 306 - - 306 Payables from purchase and sale securities and derivatives - 851 - - 851
Total financial liabilities 200,827 506,613 42,074 7,130 756,662
Off-balance sheet items Avals to bills and guarantees of loans 1 1,572 43 - 1,616 Obligation under unmatured import bills 624 481 - - 1,105 Letter of credits 86 2,540 - - 2,626 Other commitments 41,732 6,138 2,061 2 49,933
Total off-balance sheets 42,443 10,731 2,104 2 55,280
The maturity date of financial instruments
At call More than 1 year
Less than 1 year
Not specified Total
(Unit: THB Million)
Liabilities payable on demand Borrowings Payables to clearing house Payables from purchase and sale securities and derivatives
Annual Report 2011 Thanachart Bank Public Company Limited 61
4. Operational Risk The operational risk is the risk that arises
from the damage that occurs from lack of good corporate governance within the organization. Risk may also arise from the inadequate efficiency of the internal audit and internal control systems which could be relating to internal operation process, personnel, systems or external events. This also includes legal risks such as litigations, exploitation by the government and also damage from settlements outside the courtroom. Such risks can pose adverse impact on other risks, especially strategic risk and reputation risk.
TBANK has established policies and
guidelines to ensure the prevention and monitoring of this type of risk. As the internal control system is an important tool in controlling and preventing potential risk that may occur, TBANK has implemented an efficient internal control system as follow:
• Regarding the organization of the Bank’s
structure, TBANK has specified the roles, the scope of duties and responsibilities for each position, based on a system of check and balance. The front office where all the transaction takes place is separated from the middle office, comprised of the Risk Control Department and the back office who record all items in the transactions.
• Establish the transaction-supporting units
which are independent and have expertise in their respective fields of work such as information technology unit, legal and appraisal unit in order to prevent any possible errors that may arise
• Putoperationalproceduresandregulations
related to all types of transaction, staff manuals as well as the authority ranks for approval in writings as a guideline to set the same standards for all internal operations within the organization
• EstablishtheAuditCommitteeandtheRisk
Management Committee to control, monitor and assess the risks of TBANK. The committees are responsible for examining and correcting the pitfalls in order to create soundness and efficiency in the Bank’s operation.
• Improve the management of the information
technology system and information security system in order to enhance its potential to accommodate business expansion and gain credibility from the customers in the
aspect of data and technology. A particular focus is given to the prevention of damages from unauthorized access to the Bank’s information.
• Formulate the Business Continuity Plan
which consists of an emergency plan, a plan for backup systems and a business recovery plan to prevent disruption in business operation. In addition, the drills are essential to test for the readiness and to consistently improve the plans for its effective implementation.
TBANK also employs the services of the third
party to operate some group activities as per the direction of the work operations of financial institutions at present and in the future. TBANK determines policies in order to manage the risk that may occur from outsourcing. These policies have to also be subject to regulations of BOT and must be beneficial to the internal control of the Bank as well.
In the measurement and assessment
of operational risk, TBANK determines a principle, form or condition of the process used in the measurement and assessment of risk in TBANK. In the determination of this process, TBANK considers the circumstantial factors such as supervising guidelines of the government units associated with the Bank, state and complexity of the business, the capability of the Bank in accepting risk, probability, likelihood or frequency as well as the impact or severity of risk that has happened or may happen. As per BOT specification for commercial bank to maintain the funds to risk-weighted assets in credit, market and operation according to Basel II guidelines, TBANK has employed the Basic Indicator Approach to calculate operational risks.
In addition, to monitor operational risk,
TBANK determined a policy for executives of each department to have the responsibility of monitoring the risk and consider a part of their regular duties. This will help promptly inform all of the risk and problems that occur and to respond to the changes in each time period in an appropriate and timely manner, not damaging to the Bank. Nevertheless, to inform of the result of business operations and problems that occur, as well as trends and chages in information of risk factors, TBANK organized a filing and reporting of the information associated with operational risk management such as information on data loss, key risk indicatiors and important risk points to be continually and regularly reported to the Board of Directors, the Risk Management Committee and the
62 Annual Report 2011 Thanachart Bank Public Company Limited
executives to use in the determination of policies, to develop a sufficient risk management system and to be a tool in aiding TBANK to evaluate the capability and efficiency of the internal control system.
5. Strategic Risk
This type of risk arises from the inappropriate formulation of strategies, business planning and implementation which are not compatible with internal setups and external environment, resulting in an adverse impact on earnings, capital or the existence of TBANK and its subsidiaries. In managing the strategic risk, the formulation of strategies of TBANK will be considered over the three years ahead, with the review required annually or in the case of an external event that may impact the achievement of the Bank’s business goals. The Executive Committee is responsible for regular monitoring and evaluating the performance of the work units upon the established targets stated in the annual operation plan.
6. Regulatory Risk
The regulatory risk arises from amendments or changes in regulations, laws or requirements of the authorities especially the BOT. Changes in the authority’s policy may affect the strategies and business operations of TBANK and its subsidiaries.
In 2011, most changes in regulations and
requirements from the related authorities have concentrated on the improvement of measures to promote corporate governance of financial institutions, more efficient risk management and improved consumer protection. These measures therefore posed no significant impact on the strategies and business operation of the Bank. And throughout, TBANK has constantly improved and developed the internal operation system as well as customer service standard. This has also been an important mission for the Bank that the business operation has to also comply with authorities’ rules and regulations.
7. Risk from Capital Inadequacy
TBANK calculates its capital to cushion any possible risks, in accordance with Basel II criteria as follow:
• Credit risk bymeans of the Standardized
Approach • Marketrisktoexplorestatusofmarketrisk
by means of the Standardized Approach • Operational Risk by means of the Basic
Indicator Approach
In addition, TBANK has assessed its future capital adequacy based on budget and 3-year business plan. The risk calculated is capped with risk limit in which the Risk Management Division monthly reports the adequacy of capital to the Executive Committee and the Board of Directors to ensure that TBANK has sufficient capital after risk capital allocation to support sustainable business’ growth as planned.
As of December 31, 2011, TBANK’s total
capital registered at THB 91,093 million of which THB 61,638 million was Tier I capital and THB 29,455 million was for Tier II. The BIS ratio amounted to 13.72 percent which exceeded the BOT’s minimum requirement at 8.50 percent. This level of capital should be sufficient in accommodating any potential risks as well as the Bank’s future business expansion.
Annual Report 2011 Thanachart Bank Public Company Limited 63
CORPORATE SOCIAL RESPONSIBILITY (CSR) ACTIVITIES
Corporate social responsibility
Thanachart Group is an organization that adheres to the principles of corporate social responsibility both in its conduct of business affairs and its participation in other social activities. The objectives are to create sustainability and the well-being of society and people living in communities as well as to protect the environment. In addition, our employees are encouraged to participate in CSR-related activities.
CSR-in-Process
This type of corporate social responsibility (CSR) focuses on conducting business affairs with responsibility towards society. In this connection, Thanachart Group has been embracing the principles of corporate social responsibility for a long time. We treat all our groups of stakeholders including shareholders, customers, consumers, and business counterparts in a fair and equitable manner. Recognizing the importance of good corporate governance, we also place strong emphasis on transparency in information disclosure. With the support of Chulalongkorn University’s Continuing Education Center, we regularly and continuously organize training activities for our staff on good corporate governance. In regard to our employees, we have promoted and fostered good relations with our staff by offering competitive remuneration, excellent welfare benefits, and a stimulating work environment. In addition, as part of our energy conservation policy, Thanachart Group encourages staff to participate in activities aimed at conserving electricity and other energy sources and using less paper, thus preserving the environment.
In 2011, many provinces of Thailand were severely hit by the floods. In response, Thanachart Group introduced
a number of measures aimed at helping both corporate and individual customers who were flood victims. These included a grace period of up to 90 days for hire purchase loans as well as extension of the repayment period for up to 12 months. As for home loans, borrowers could suspend repayment of principal amounts for up to 12 months. As well, a total of THB 5 billion was set aside for loans to small-and-medium-sized enterprises (SMEs) with the principal repayment period extended by up to one year. In regard to ATM and debit cards, fees for all cash withdrawals and transfers thru TBANK’s ATMs, including all inter-region withdrawals and transfers were waived. Moreover, the fees for inter-bank cash withdrawals as well as cash transfers between bank accounts with TBANK which were tied to the same card were also waived. As well, annual fees and fees for issuing replacement cards lost or damaged during the flood were waived for customers who were flood victims. Holders of Thanachart Drive Credit Cards and FLASH Cards could request a grace period, lower monthly repayments, or extension of their repayment period until the situation returned to normalcy.
CSR-after-Process
This type of corporate social responsibility (CSR) covers any activities other than those undertaken in the ordinary course of business. Thanachart Group has been involved in these types of activities for a long time. However, since the commercial banking services became one of Thanachart Group’s main businesses with an extensive branch network nationwide, the corporate social responsibility activities have been implemented in line with the policy established by the central organization. The activities have also been supported by the regional hubs concerned. In this connection, the CSR Committee is responsible for approving the programs and financial support for all activities. After the approval is granted, the Bank’s staff and members of Thanachart Group in each regional hub will start implementing the CSR activities together. Their customers and trading partners, as well as people living in communities, will also be encouraged to participate in the activities. As a guideline for the implementation of the activities, the organization has established a framework of social issues to be addressed. They can be divided into four main groups as follows:
64 Annual Report 2011 Thanachart Bank Public Company Limited
1. Development activities for disadvantaged children and youth
2. Community health and hygiene 3. Conservation of culture and national identity 4. Assistance to people who are adversely affected
by natural disasters
Thanachart’s public concern– motorcycle helmets for kids
This project was initiated in 2007 by the regional hub based in Hat Yai. The main objective was to give motorcycle helmets to young students who rode motorcycles to their schools in Hat Yai District and Muang District in Songkhla Province. During the period from 2008 - 2010, the project’s coverage areas were extended to include Nakhon Sawan, Phitsanulok, Nakhon Pathom and Udon Thani Provinces. TBANK recognizes the importance of reducing the number of casualties caused by accidents in which small children are involved, principally when they sit at the rear of motorcycles without wearing helmets. But this will only happen when parents become more concerned with children safety and the standard helmets for young children become less expensive. There are far fewer manufacturers of motorcycle helmets for children than those producing helmets for adults. The project also helps inculcate into parents and children the importance of wearing safety helmets every time they ride motorcycles from home to school and vice versa. The project has been continuously implemented and has received very good responses from the parents and their children participating in the project. It is also in line with the Bank’s CSR policy aimed at creating a motorcycle safety culture which encourages children who sit at the rear of motorcycles to wear safety helmets. As well, it is in line with the Bank’s campaign aimed at promoting safe driving habits. The related activities help mitigate casualties caused by accidents in which the victims do not wear safety helmets.
On the occasion of His Majesty the King’s 84th
Birthday Anniversary in 2011, the Bank organized activities under the project entitled “Thanachart’s concern–motorcycle helmets for kids to wear, 84th birthday and 84 schools” in honor of His Majesty the King. As well, it launched a campaign aimed at promoting traffic knowledge and discipline as well as the culture of ensuring that both parents and children wear safety helmets every time they sit at the rear of motorcycles. As part of the activities, 20,000 helmets whose standards were certified by the Thai Industry Standards Institute (TISI) were given to students studying at 84 government and private schools nationwide
from the kindergarten level to Prathomsuka 3, which participated in the project. The activities have been implemented over the past five years, during which time, 28,800 safety helmets for children were given to various schools. The Bank will continue implementing its activities which include the delivery of safety helmets to children as well as the campaigns aimed at inculcating in adults the importance of the safety helmets.
Thanachart initiates and fulfils Thai identity project
The activities of the project place emphasis on promoting the country’s unique identity and beautiful culture by encouraging young people to read Thai out loud with correct pronunciation and to learn about good manners in Thai culture, which they can adopt in daily life. This is an extension of SCIB’s previous project entitled “Siam City Bank conserves Thai identity” which was continuously implemented for over 39 years. The project consists of two main activities including reading aloud contests and Thai manners contests. First rounds of the contests to select qualified candidates are organized in four regions including North, North East, South and Central (including Bangkok). Educational institutions are provided with an opportunity to send students from Prathomsuksa 1 to the university level as their representatives to participate in the contests to compete for H.R.H. Princess Maha Chakri Sirindhorn’s Cups, honourable shields and certificates of honour, as well as scholarships. In 2011, the Bank organized a contest to decorate a traditional Thai pedestalled tray (or Phan in Thai) which contained candles and joss sticks. The objective was for the young people to come up with creative ideas to decorate beautifully a set of Thai style altar tables. The project was supported by qualified experts from the Office of the Permanent Secretary of the Ministry of Culture, the Department of Cultural Promotion of the Ministry of Culture, the Office of the National Broadcasting and Telecommunication Commission (NBTC), the Royal Institute, the National Identity Office, and Phra Tumnuk Suankularb School, as well as experts on each region’s culture, who served as panel judges for the contests.
The project was first initiated in 1972 in the form of
a contest organized on “Thai Manners” under the auspices of Bangkok Metropolitan Bank. Later in 1980, the first “Reading Aloud Contest by Bangkok Metropolitan Bank” was organized. In 1995, it humbly requested that H.R.H. Princess Maha Chakri Sirindhorn graciously give royal cups to top winners of the two contests. In 2002, Bangkok Metropolitan Bank merged with SCIB and the name of the
Annual Report 2011 Thanachart Bank Public Company Limited 65
1 2
3 4
project was changed to “Siam City Bank conserves Thai identity”. Recently in 2011, SCIB merged with TBANK, the project then has been sustained with the name changed to “Thanachart initiates and fulfils Thai identity project”.
The intention to preserve Thai identity is the
inspiration behind the project. The activities of the project include reading Thai aloud and adopting Thai manners in daily life. The objective is for Thai people to preserve the unique values and prevent their disintegration over time as a result of western values which are influencing young people to move away from their culture. Moreover, the project also helps inculcate in Thai youths the love of Thai culture. This will make them cherish the culture and help sustain it for Thai society. Both the Thai language and Thai manners are internationally recognised as unique characteristics of Thai identity.
In 2011, over 3,000 students from 980 educational
institutions nationwide participated in the ‘Thanachart initiates and fulfills Thai Identity’ project. The students were divided into five groups according to their educational levels, including the first level of primary education (Pathomsuksa 1 - 3), second level of primary education (Pathomsuksa 4 - 6), lower secondary education (Mathayomsuksa 1 - 3), upper secondary education (Mathayomsuksa 4 - 6), and the university level. The contests were held during the period from July to September 2011.
Sapan Boon Project (Bridge-to-good deeds Project)
The Bank provides holders of TBANK ATM cards with the convenience of making merit via its ATMs. Customers can donate money to several charitable organizations via the TBANK’s ATMs free of charge. The Bank serves as a bridge for its customers to make donations to many organizations that dedicate themselves to solving problems in Thai society. In doing so, the Bank serves as a channel for raising funds to support charitable foundations and organizations. Moreover, the Bank supports the Foundation for Slum Child Care (FSCC) under the Royal Patronage of H.R.H. Princess Galyani Vadhana Krom Luang Naradhiwas Rajanagarindra. In 2011, it gave the Foundation THB 1,170,000 which was sourced from charity collection boxes placed in 680 branches of the Bank nationwide. The donations were made by customers and staff of Thanachart Group for paying living expenses, education and enhancing the quality of life of children so that in the future they will grow up to become responsible youths and good citizens of the country. The activities have been continuously supported by TBANK for over 10 years.
Pictures 1 - 2: Royal Kathin Robes Thanachart Group offered Royal Kathin robes to Wat Pa Pradu, Muang District, Rayong Province, and with member companies of Thanachart Group, their customers, trading partners, executives, and staff as well as members of the general public all jointly donated THB 7,977,422.27 in good faith to the temple as part of the funds to be used for constructing a new sermon hall. Picture 3: Financial Support to Slum Children TBANK gave THB 1,170,000 to the Foundation for Slum Child Care (FSCC) under the Royal Patronage of H.R.H. Princess Galyani Vadhana Krom Luang Naradhiwas Rajanagarindra. The money was sourced from charity collection boxes placed in 680 branches of the Bank nationwide. The donations were made by customers and staff of Thanachart Group. Picture 4: Thanachart joined hands to help flood victims in 2011 Member companies of Thanachart Group jointly gave 5,000 survival bags to the Royal Thai Navy based in Bangkok, for distribution to flood-hit people living in Wat Tuk Community, Wat Bote and Phra Nangklao Community, Nonthaburi Province, which were difficult to access. The money for buying the survival bags were donated by TBANK and member companies of Thanachart Group as well as their executives and staff.
66 Annual Report 2011 Thanachart Bank Public Company Limited
5 6
7 8
Project supporting Thai Red Cross Society
•Participation in the Annual Red Cross
Fair Both TBANK and SCIB always participated in the
Annual Red Cross Fair. In 2011, the 35th anniversary fair was held from 30 March to 7 April 2011 at Suan Amporn Park, under the theme entitled “On 84th Birthday Anniversary of Great King, follow His footsteps with Red Cross helping Thai people in honor of His Majesty the King”. The event was organized in celebration of the 84th Birthday Anniversary of His Majesty the King, the patron of the Thai Red Cross Society. On this occasion, the Bank humbly presented a donation of THB 5.2 million to benefit the Thai Red Cross Society as part of its participation in the Fair 2011 with Her Majesty Queen Sirikit as president of the Society.
The participation in the annual fair could be traced
back to the year 1976 when Bangkok Metropolitan Bank was invited to join the Red Cross Fair. It was the only participating commercial bank at the fair, using the name of ‘Bangkok Metropolitan Bank’s Booth’. Later in 2002 when Bangkok Metropolitan Bank merged with SCIB, SCIB participated in the fair, using the name of ‘SCIB’s Booth’. In 2011 when SCIB merged with TBANK, their name at the fair was changed to ‘Booth of TBANK and SCIB’. Today, it is
still the only commercial bank with a booth in the Annual Red Cross Fair at Suan Amporn Park. The net income gained from selling Red Cross lotteries as well as proceeds from the Bank’s participation in the fair were humbly presented to H.R.H. Princess Maha Chakri Sirindhorn, Executive Vice-President of the Thai Red Cross Society, annually for the benefit of the Thai Red Cross Society.
•Blood donation in honor of the Royal
Father This activity has been implemented by the
TBANK’s Khon Kaen Hub for seven consecutive years. The activity involves a campaign aimed at encouraging both members of the public and staff to donate blood in honor of His Majesty the King. Donating blood not only helps save the lives of victims of emergent accidents but also alleviate blood shortage during treatment. The activity has been well supported by the Faculty of Medicine, Khon Kaen Unviersity, who facilitates the blood donations. Moreover, the Bank also gives financial health check-up to those who participate in the activity. Tree seedlings are also distributed to the participants, as part of the fight global warming campaign. The objective is also to instill into people cooperation in preserving the environment. In 2011, 1,164 people donated 480,050 cc of blood to the Thai Red Cross Society.
The first blood donation event took place in 2004
Pictures 5 - 6: Thanachart’s concern – motorcycle helmets for kids, 84th birthday anniversary and 84 schools TBANK gave 20,000 helmets to student representatives from 84 schools that participated in the project named “Thanachart’s concern – motorcycle helmets for kids, 84th birthday anniversary and 84 schools”. The activity was part of the campaign aimed at promoting safe driving habits. Pictures 7 - 8: Thanachart initiated and fulfilled Thai identity project TBANK granted scholarships to the youths who won the reading aloud contests and Thai manners contests. Top winners were awarded H.R.H. Princess Maha Chakri Sirindhorn’s Cups under the “Thanachart initiates and fulfills Thai identity” project. First rounds of the contests to select qualified candidates were organized in four regions of the country. The objective was to encourage Thai youths to preserve their culture through the language and to learn about correct ways of behaving in line with Thai manners.
Annual Report 2011 Thanachart Bank Public Company Limited 67
with Khon Kaen Hub serving as a prototype for the blood donation activity nationwide. This CSR activity has been organized twice annually on the occasions of the birthday anniversaries of His Majesty the King and Her Majesty Queen Sirikit respectively. Later, the coverage areas for the event were extended to include those covered by Ayutthaya Hub, Nakhon Si Thammarat Hub, Saraburi Hub, Udon Thani Hub, Thon Buri Hub and Rajchadapisek Hub. The intention to do good deeds in honor of His Majesty the King and Her Majesty Queen Sirikit is the inspiration behind the project. The objective is also to encourage executives, staff, customers as well as members of the general public to make merit together to help alleviate the plight of fellow human beings in the case of emergencies or blood shortages.
Groups of schools receiving con-tinuous support from TBANK
•Reuse Project entitled ‘Pi Chai Ngan Nong Chai Rien’ (Senior use them for work, junior use them for learning)
The activity is based on the idea that materials can be reused. The TBANK reused structural materials and all decorative materials (such as desks, tables, bookshelves, educational materials and light bulbs) at its booths at Money Expo 2011 to build a multipurpose facility and a library for Pak Dan Temple School in Sichon District, Nakhon Si Thammarat Province, which was adversely affected by southern floods. The Bank also provided the school with sports equipment and school supplies to give moral support for the children education and shape the better future for them.
Projects to support disaster victims
These CSR activities are continuously implemented every year and place emphasis on rehabilitating victims affected by natural disasters. In 2011, TBANK gave assistance to victims of natural disasters through its various activities as follows:
•Thanachart Group members joined
hands to help Tsunami victims in Japan The natural disasters that hit Japan hard in 2011
represented a great tragedy that inflicted the heaviest casualties and damage in the country for more than a century. Both TBANK and SCIB joined hands to help
victims of the earthquake and Tsunami in Japan by opening a bank account for customers nationwide to contribute to and making available collection boxes to accept donations from customers, staff and branches of the Bank. In this connection, a total of THB 2,840,913.38 was donated and delivered to the Ministry of Foreign Affairs to help Japanese disaster victims.
•Thanachart joined hands to help
disaster victims in the South The activities organized by Nakhon Si Thammarat
Hub were aimed at helping victims who were adversely affected by floods. Survival bags were given to the victims in Tambon Tonhong and the disaster evacuation centers in Amphur Nop Pi Tum, Soi Pratu Kao Community, Tambon Thepraj and Tambon Chalong, Amphur Sichon, Tambon Bang Rakam, Amphur Pakpanang, and the District Office of Amphur Pi Poon, Nakhon Si Thammarat Province. Surat Thanai Hub also gave survival bags and drinking water to flood victims in Surat Thanai Province. As well, Phuket Hub gave assistance to flood victims in Tambon Khao Pranom, Amphur Khao Pranom, Krabi Province.
•Thanachart joined hands to help flood
victims in 2011 Many provinces of Thailand including Bangkok
were severely hit by recent devastating floods. The disasters inflicted serious damage and caused a lot of people to suffer. As a result, the Bank and Thanachart Group organized activities aimed at helping the flood victims through a project named “Thanachart joins hands to help flood victims in 2011”. The activities included the following:
1. TBANK opened a bank account using the
name of “Thanachart joins hands to help flood victims in 2011”, to accept donations for flood victims. It used the donated money to pay for 5,000 survival bags containing consumer goods worth THB 1,020,410.25 in total. The Bank teamed up with the Royal Thai Navy in distributing the survival bags to flood victims in Wat Tuk Community, Wat Bote and Phra Nangklao Community, Nonthaburi Province. It also paid THB 973,905.83 for 5,000 medicine sets together with boxes of cooked food. It also paid THB 267,773.03 for 1,000 survival bags together with 1,000 dozen bottles of drinking water. The Bank teamed up with the Royal Thai Army in distributing them to flood victims in the areas of Bang Plat, Taling Chan, Bang Yai, Bangbuathong, Don Muang, and Rangsit.
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2. Drinking water was distributed to flood
victims at the temporary evacuation center inside Thammasat University Rangsit Campus, Maha Chulalongkorn Ratchawithayalai evacuation center in Wang Noi District in Ayutthaya Province and the evacuation center at Valaya Alongkorn Rajabhat University under the Royal Patronage. Each center received 9,000 bottles of drinking water.
3. The Bank provided the Security Forces
Regiment (King’s Guards), the Security Forces Command, with financial assistance, an amount of THB 50,000 to buy cleaning supplies for flood victims.
4. The Bank provided Wat-Sing Kindergarten in
Chainat Province with 120 pairs of student desks and chairs. In an effort to rehabilitate the kindergarten, the Bank also helped repaint school fences and buildings to make them look beautiful again. The objective was to enhance the quality of educational life. Moreover, in collaboration with Thanachart Foundation for Thai Society, the Bank plans to give additional pairs of student desks and chairs in the first quarter of 2012 to about 20 schools which were hit by floods. A budget of about THB 6 - 7 million is being allocated for this purpose.
5. Thanachart Securities Public Company
Limited made a financial contribution worth THB 100,000 to buy survival bags for flood victims, through the project named “Thanachart joins hands to help flood victims in 2011”. The company also provided TBANK’s CSR working group with 999 medicine sets worth THB 49,950. The money was donated by executives, staff and customers of Thanachart Securities Public Company Limited. The medicine sets were distributed later to the flood victims.
6. Thanachart Life Assurance Company Limited
made a financial contribution worth THB 700,000 to buy survival bags for flood victims. The survival bags were distributed to the victims through the Royal Thai Navy and the Royal Thai Army. As well, some of the company’s executives and staff volunteered to visit the flood-hit areas to distribute the bags themselves. The purpose was to alleviate the plight of flood victims under the project named “Thanachart joins hands to help flood victims in 2011”.
7. Thanachart Insurance Company Limited
made a financial contribution worth THB 100,000 to buy survival bags for flood victims through the project named ‘Thanachart joins hands to help flood victims in 2011’.
Project for Buddhism
•Activity to maintain and support
Buddhism through the offering of ‘royal Kathin robes’
TBANK organizes annually the offering ceremony of Royal Kathin robes. In 2011, the Bank offered the Royal Kathin robes, graciously bestowed by His Majesty the King, to Wat Pa Pradu, Muang District, Rayong Province. In this connection, the Bank together with member companies of Thanachart Group, their customers, trading partners, executives, and staff as well as members of the general public jointly donated THB 7,977,422.27 in good faith to the temple as part of the funds to be used for constructing a new sermon hall.
The offering ceremony of Royal Kathin robes,
graciously bestowed by His Majesty the King, was first organized in 2006. The Royal Kathin robes were offered to Wat Keaw Gro Wa Ram Temple in Krabi Province. Since then, TBANK has been organizing the offering ceremony of Royal Kathin robes every year. The purpose of this CSR activity is to maintain and support Buddhism, royal temples, and sanctuaries so that they remain intact as long as the nation exists. In addition, the Bank grants scholarships to financially needy students with good grades and good behavior.
Annual Report 2011 Thanachart Bank Public Company Limited 69
RESPONSIBILITIES OF THE BOARD OF DIRECTORS FOR FINANCIAL REPORT
TBANK’s Board of Directors is responsible for the separated and consolidated financial statements and for financial information presented in this annual report. The aforementioned financial statements were prepared in accordance with the generally accepted accounting principles, applying appropriate and consistent accounting policies and with careful judgments and best estimates. Important information is adequately and transparently disclosed to TBANK’s shareholders and other investors in the notes to financial statements.
TBANK’s Board of Directors has established and maintained appropriate and effective risk management and internal
control system in order to rationally assure that the accounting information is correctly and completely recorded and adequate to sustain TBANK’s assets, as well as to prevent any material irregular operations or frauds.
TBANK’s Board of Directors has appointed the Audit Committee comprising independent directors responsible for
revision of accounting policies and the quality of financial statements, internal control, internal audit and risk management system, as well as the disclosure of related party transactions. The committee’s comments on these issues were included in the Audit Committee Report in this annual report.
TBANK’s separated and consolidated financial statements were audited by the certified public accountant of Ernst &
Young Office Limited. TBANK’s Board of Directors had provided the auditing team all information and document supports in order that the auditor would be able to audit and address his/her opinion to the auditing standards. The auditor’s opinion was included in the Report of independent Auditor in this annual report.
TBANK’s Board of Directors is of the opinion that TBANK’s overall internal control is at a satisfying level and provides
reliability on TBANK’s separated and consolidated financial statements for the year ended December 31, 2011 which is in compliance with the generally accepted accounting principles and relevant rules and regulations.
(Mr. Somjate Moosirilert)Chief Executive Officer and President
(Mr. Banterng Tantivit)Chairman
70 Annual Report 2011 Thanachart Bank Public Company Limited
REPORT OF THE AuDIT COmmITTEE
The Audit Committee of Thanachart Bank Public Company Limited consisted of three qualified and experienced independent directors. The composition was as follows;
1. mr. Kiettisak meecharoen Chairman of the Audit Committee 2. Assoc. Prof. Dr. Somjai Phagaphasvivathana member of the Audit Committee 3. mr. Sataporn Jinachitra member of the Audit Committee mrs. Vijitra Thumpothong, Executive Vice President, Audit, served as the secretary of the Audit Committee The Audit Committee was responsible for carrying out the duties as assigned by TBANK’s Board of Directors in line
with the regulations imposed by the Securities and Exchange Commission (SEC), notifications of the Stock Exchange of Thailand (SET) and Bank of Thailand (BOT) as stated in the charter stipulated by the Board of Directors.
In 2011, the Audit Committee convened 13 meetings in total with the management, top level executives of the
related business units and auditors; whereas 11 meetings were regular meetings and 2 meetings were extraordinary meetings to acknowledge and consider numerous matters as of the following:
• Financial Statements The Audit Committee reviewed the quarterly and year-end and consolidated financial statements of TBANK by
consulting with the external auditors and TBANK management in order to ensure the accounting standards, the accuracy of its significant matters, and the appropriate disclosure of information. In addition, the Audit Committee convened the meetings without the presence of TBANK management in order to ensure the independence of the auditors’ duties and comments.
• Internal Control and Internal Audit The Audit Committee reviewed the TBANK’s business to ensure an effective internal control and internal audit.
It provided consultation for the internal auditors in formulating the annual audit plan to ensure its sufficiency and appropriateness of the auditors’ independence, The audit plan was monitored and evaluated quarterly. The professionals were engaged to assess and analyze an appropriateness of the organization structure, work force and capability of the internal auditors in order to further develop the effectiveness and efficiency of audit system.
Annual Report 2011 Thanachart Bank Public Company Limited 71
• Regulatory Compliance The Audit Committee reviewed the performance
of Compliance unit’s to as certain that the Bank’s businesses were conducted in compliance with related rules and regulations imposed by authorities such as the Bank of Thailand (BOT), Office of the Securities and Exchange Commission of Thailand (SEC), Stock Exchange of Thailand (SET), the Office of Insurance Commission (OIC) and Anti-money Laundering Office (AmLO). The Audit Committee also acknowledged changes of any rules or regulations that affected operation and ensured the adjustment of operation in response to those changes.
• Risk management The Audit Committee monitored and ensured
the adequacy of the Risk management framework, The Committee met with executives in order to acknowledge the Risk management report in various aspects to ensure an adequacy and effectiveness of TBANK’s risk management system.
• Audit Committee’s charter The Audit Committee considered and approved
the amendment in the Audit Committee’s Charter to make it up-to-date and more appropriate.
• Independent Auditor The Audit Committee considered and approved
the qualification, the independence, performance and remuneration of the auditor. In addition, it also advised on the appointment and suitable remuneration of auditors to the TANK’s Board of Directors.
• Connected Transactions or Conflict of Interests The Audit Committee reviewed connected
transactions and transactions where there might be conflict of interests based on rationale, transparency and appropriate disclosure of information before giving an opinion to the Board of Directors.
The Audit Committee views that the Bank has
disclosed financial reports and financial statements properly and in accordance with the accounting standards. The internal control, internal audit and risk management have been appropriate, effective, and in compliance with laws and regulations. Independent auditor was independent to perform duties. Connected transactions and conflict of interests have been disclosed appropriately.
(Mr. Kiettisak Meecharoen)Chairman of the Audit Committee
72 Annual Report 2011 Thanachart Bank Public Company Limited
REPORT OF INDEPENDENT AuDITOR
To the Shareholders of Thanachart Bank Public Company Limited I have audited the accompanying consolidated statement of financial position of Thanachart Bank Public Company
Limited and its subsidiaries as at 31 December 2011, and the related consolidated statements of comprehensive income, changes in equity and cash flows for the year then ended, and have also audited the separate financial statements of Thanachart Bank Public Company Limited for the same period. These financial statements are the responsibility of the management of the Bank and its subsidiaries as to their correctness and the completeness of the presentation. my responsibility is to express an opinion on these financial statements based on my audit.
I conducted my audit in accordance with generally accepted auditing standards. Those standards require that I plan
and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audit provides a reasonable basis for my opinion.
In my opinion, the financial statements referred to above present fairly, in all material respects, the financial
position of Thanachart Bank Public Company Limited and its subsidiaries and of Thanachart Bank Public Company Limited as at 31 December 2011, and the results of their operations and cash flows for the year then ended in accordance with generally accepted accounting principles.
Without qualifying my opinion on the aforementioned financial statements, I draw attention to Note 4 to
the financial statements. During the current year, the Bank and its subsidiaries adopted a number of revised and new accounting standards as issued by the Federation of Accounting Professions, and applied them in the preparation and presentation of the financial statements.
The consolidated financial statements of Thanachart Bank Public Company Limited and its subsidiaries and the
separate financial statements of Thanachart Bank Public Company Limited as at 31 December 2010 and for the year then ended were audited in accordance with generally accepted auditing standards by another auditor of our firm who expressed an unqualified opinion on those statements, under her report dated 24 February 2011. However, the Bank has restated the consolidated financial statements regarding the allocation cost of business combination from the purchase of investment in a subsidiary company within the period for measurement allowed by the related accounting standard as described in Note 2.3 to the financial statements. I have audited the adjustment and believed that it is correctly and appropriately recorded.
Phuphun Charoensuk Certified Public Accountant (Thailand) No. 4950 Ernst & Young Office Limited Bangkok: 23 February 2012
Annual Report 2011 Thanachart Bank Public Company Limited 73
STATemenTS of fInAnCIAL PoSITIon
Thanachart Bank Public Company Limited and its subsidiaries
Statements of financial position
As at 31 December 2011 and 2010
(Unit: Thousand Baht)
Note 2011 2010 2011 2010
(Restated)
Assets
Cash 16,005,678 15,298,105 16,004,051 3,733,489
Interbank and money market items - net 8 63,201,206 85,060,091 62,963,184 28,427,950
Derivatives assets 9 1,536,490 3,117,370 1,532,331 927,751
Investments - net 10 148,344,800 140,021,676 114,540,693 49,758,732
Investments in subsidiary
and associated companies - net 11 1,423,339 2,177,314 40,841,867 73,121,367
Loans to customers and accrued interest
receivables 12
Loans to customers 675,021,253 639,320,239 654,451,435 358,727,116
Accrued interest receivables 962,799 923,792 924,925 272,080
Total loans to customers and
accrued interest receivables 675,984,052 640,244,031 655,376,360 358,999,196
Less: Deferred revenue (39,801,128) (32,469,290) (37,738,871) (32,178,121)
Allowance for doubtful accounts 13 (25,897,903) (25,789,301) (12,485,712) (7,431,429)
Revaluation allowance for debt
restructuring 14 (381,719) (459,963) (381,719) (37,741)
Net loans to customers and
accrued interest receivables 609,903,302 581,525,477 604,770,058 319,351,905
Customers' liability under acceptances 90,531 72,156 90,531 -
Property foreclosed - net 16 6,761,904 7,850,667 3,653,106 639,782
Land, premises and equipment - net 17 8,758,841 8,986,185 8,365,341 1,690,163
Intangible assets - net 18 4,709,082 4,804,990 4,650,449 485,475
Goodwill 19 15,749,643 15,749,643 15,739,527 -
Receivables from purchase and sale of securities
and derivatives 858,326 2,870,279 64,929 1,732,965
Prepaid corporate income tax 1,019,680 6,730 1,011,958 -
Reinsurance assets 2,573,393 532,773 - -
Other assets - net 20 5,123,388 5,129,331 3,825,298 2,193,641
Total assets 886,059,603 873,202,787 878,053,323 482,063,220
The accompanying notes are an integral part of the financial statements.
Consolidated Separate
financial statements financial statements
74 Annual Report 2011 Thanachart Bank Public Company Limited
STATemenTS of fInAnCIAL PoSITIon (ConTInUeD)
Thanachart Bank Public Company Limited and its subsidiaries
Statements of financial position (continued)
As at 31 December 2011 and 2010
(Unit: Thousand Baht)
Note 2011 2010 2011 2010
(Restated)
Liabilities and equity
Deposits 21 436,039,579 532,656,130 471,617,573 242,791,035
Interbank and money market items 22 60,150,845 40,544,594 59,282,708 29,705,720
Liability payable on demand 2,130,716 3,126,945 2,130,716 2,326,457
Derivatives liabilities 9 2,885,848 941,073 2,876,790 434,206
Debt issued and borrowings 23 254,296,521 174,948,957 257,503,221 132,092,201
Banks' liability under acceptances 90,531 72,156 90,531 -
Provisions 24 2,823,534 899,690 2,620,953 113,284
Payable from purchase and sale of securities
and derivatives 851,388 4,053,940 267,638 1,733,060
Insurance contract liabilities 25 36,154,060 29,773,671 - -
Other liabilities 26 15,103,017 13,792,197 10,778,836 6,130,602
Total liabilities 810,526,039 800,809,353 807,168,966 415,326,565
Equity
Share capital 27
Registered
5,934,619,272 ordinary shares of Baht 10 each 59,346,193 59,346,193 59,346,193 59,346,193
Issued and paid-up share capital
5,513,664,903 ordinary shares of Baht 10 each 55,136,649 55,136,649 55,136,649 55,136,649
Share premium 2,100,694 2,100,694 2,100,694 2,100,694
Other components of equity 28 612,902 1,147,783 211,106 169,512
Retained earnings
Appropriated - statutory reserve 29 989,326 655,945 989,326 655,945
Unappropriated 16,008,739 13,141,827 12,446,582 8,673,855
Equity attributable to owner of the company 74,848,310 72,182,898 70,884,357 66,736,655
Non-controlling interests of the subsidiaries 685,254 210,536 - -
Total equity 75,533,564 72,393,434 70,884,357 66,736,655
Total liabilities and equity 886,059,603 873,202,787 878,053,323 482,063,220
- - - -
The accompanying notes are an integral part of the financial statements.
Directors
Consolidated Separate
financial statements financial statements
Annual Report 2011 Thanachart Bank Public Company Limited 75
STATemenTS of ComPReHenSIVe InCome
Thanachart Bank Public Company Limited and its subsidiaries
Statements of comprehensive income
For the years ended 31 December 2011 and 2010
(Unit: Thousand Baht except earnings per share expressed in Baht)
Note 2011 2010 2011 2010
Profit or loss
Interest income 32 44,213,744 34,781,263 29,547,478 21,397,458
Interest expenses 33 (19,797,303) (11,565,745) (14,958,709) (7,375,390)
Net interest income 24,416,441 23,215,518 14,588,769 14,022,068
Fees and service income 3,857,939 3,368,918 2,904,042 2,030,464
Fees and service expenses (499,958) (518,588) (144,272) (45,055)
Net fees and service income 34 3,357,981 2,850,330 2,759,770 1,985,409
Gains on trading and foreign
exchange transactions 35 890,895 569,670 563,565 144,001
Gains (loss) on investments 36 712,193 313,838 59,843 147,524
Share of profit from investments accounted
for under equity method 156,064 206,711 - -
Insurance/Life insurance income 12,853,319 11,186,879 - -
Dividend income 707,542 461,284 1,590,458 575,941
Brokerage fee from securities/derivatives 1,167,668 1,407,762 - -
Income on supporting service 44,708 55,984 1,062,319 278,092
Other operating income 1,430,155 1,239,248 1,135,592 868,822
Total operating income 45,736,966 41,507,224 21,760,316 18,021,857
Insurance expenses (10,725,745) (8,834,326) -
Net operating income 35,011,221 32,672,898 21,760,316 18,021,857
Other operating expenses
Employee's expenses 10,735,944 8,458,418 6,626,964 3,855,982
Directors’ remuneration 37 43,223 44,866 26,888 17,891
Premises and equipment expenses 3,474,246 3,148,053 1,833,460 1,531,862
Taxes and duties 898,439 618,432 406,770 181,826
Other expenses 6,725,454 4,553,979 4,776,988 3,142,638
Total other operating expenses 21,877,306 16,823,748 13,671,070 8,730,199
Impairment losses of loans
and debt securities 38 2,504,008 2,148,604 1,421,636 1,279,692
Profit before income tax 10,629,907 13,700,546 6,667,610 8,011,966
Income tax 39 (2,948,049) (4,548,121) - (2,293,437)
Profit for the year 7,681,858 9,152,425 6,667,610 5,718,529
Other comprehensive income 40
Gains (losses) on changes in value of
available-for-sale investments
Share of other comprehensive income (loss) (355,528) 688,370 41,594 (44,182)
of associates (180,370) 204,123 - -
Total other comprehensive income (loss) (535,898) 892,493 41,594 (44,182)
Total comprehensive income 7,145,960 10,044,918 6,709,204 5,674,347
The accompanying notes are an integral part of the financial statements.
Consolidated Separate
financial statements financial statements
76 Annual Report 2011 Thanachart Bank Public Company Limited
STATemenTS of ComPReHenSIVe InCome (ConTInUeD)
Thanachart Bank Public Company Limited and its subsidiaries
Statements of comprehensive income (continued)
For the years ended 31 December 2011 and 2010
(Unit: Thousand Baht except earnings per share expressed in Baht)
Note 2011 2010 2011 2010
Profit attributable to:
The Bank 7,671,425 8,776,543 6,667,610 5,718,529
Non-controlling interests 10,433 375,882
7,681,858 9,152,425
Total comprehensive income attributable to:
The Bank 7,136,544 9,664,436 6,709,204 5,674,347
Non-controlling interests 9,416 380,482
7,145,960 10,044,918
Earnings per share of the Bank 41
Basic earnings per share
Profit attributable to the Bank (Baht per share) 1.39 1.92 1.21 1.25
Number of ordinary shares (shares) 5,513,664,903 4,562,521,270 5,513,664,903 4,562,521,270
The accompanying notes are an integral part of the financial statements.
financial statements financial statements
Consolidated Separate
Annual Report 2011 Thanachart Bank Public Company Limited 77
STATemenTS of CASH fLoWS
Thanachart Bank Public Company Limited and its subsidiaries
Statements of cash flows
For the years ended 31 December 2011 and 2010
(Unit: Thousand Baht)
2011 2010 2011 2010
Cash flows from operating activities
Profit before income tax 10,629,907 13,700,546 6,667,610 8,011,966
Adjustments to reconcile profit before income tax
to net cash received (paid) from operating activities:
Share of profit from investments accounted
for under equity method (156,064) (206,711) - -
Depreciation and amortisation 1,715,216 1,309,796 768,191 573,110
Impairment losses of loans and debt securities 2,504,008 2,148,604 1,421,636 1,279,692
Increase (decrease) in provisions (346,472) 102,912 1,195,615 2,569
Amortisation of premiums (discounts) on investment in
debt securities 364,504 561,197 (69,123) 94,827
Gain from disposal of investments in
subsidiary companies (65,751) (24,224) - (21,625)
Gain from disposal of investment in an (22,276) - - -
associated company
Increase (decrease) in allowance for impairment
of investments (40,978) (20,549) 4,463 (18,037)
Increase in allowance for change in value
of investments 49,226 6,065 1,825 3,428
Increase (decrease) in allowance for impairment of
property foreclosed 443,562 (40,387) 29,079 13,762
Increase (decrease) in allowance for impairment of land,
premises and equipment 93,470 60 - (1,190)
Increase in allowance for impairment of
intangible asset 26,843 - 24,816 -
Interest income and other income from the assets
transferred for debt repayment (1,967) (16,618) (1,967) (16,618)
Loss (gain) on disposal of equipment (7,923) 4,033 (2,632) 4,353
Loss from written-off of other assets - 5,469 - -
Gain from written-off of other liabilities - (9,315) - -
Unrealised (gain) loss on exchange (1,536,625) 647,046 (1,536,625) (153,991)
Decrease in allowance for impairment
of other assets (270,482) (32,059) (2,011) (57,982)
Increase in other income receivable (156,200) (108,922) (75,977) (9,002)
Decrease in fees and rental received in advance (46,437) (42,592) (46,437) (42,592)
Decrease in deferred income (4,708) (5,703) (4,708) (5,699)
Increase (decrease) in accrued expenses 1,077,288 (142,045) 1,453,301 132,628
Amortisation of discounts on long-term borrowings 810 6,288 - 767
14,248,951 17,842,891 9,827,056 9,790,366
Net interest income (24,781,755) (23,783,003) (14,519,646) (14,117,662)
Dividend income (707,542) (461,284) (1,590,458) (575,941)
Cash received from interest income 40,114,752 31,108,643 27,553,999 19,673,174
Cash payment for interest expenses (11,936,018) (7,944,427) (8,303,265) (4,492,833)
Cash paid for corporate income tax (3,555,117) (4,331,947) (1,970,980) (2,432,349)
Income from operating activities before changes
in operating assets and liabilities 13,383,271 12,430,873 10,996,706 7,844,755
The accompanying notes are an integral part of the financial statements.
Consolidated Separate
financial statements financial statements
78 Annual Report 2011 Thanachart Bank Public Company Limited
STATemenTS of CASH fLoWS (ConTInUeD)
Thanachart Bank Public Company Limited and its subsidiaries
Statements of cash flows (continued)
For the years ended 31 December 2011 and 2010
(Unit: Thousand Baht)
2011 2010 2011 2010
Decrease (increase) in operating assets
Interbank and money market items 23,183,890 42,647,210 33,785,015 35,579,111
Investments in trading securities (12,792,593) 3,010,869 (4,780,207) 688,682
Derivatives assets 2,094,487 (680,785) 300,643 869,688
Loans and receivables (22,441,973) (50,543,824) (52,904,541) (49,502,317)
Property foreclosed 3,963,047 4,493,962 3,403,850 4,064,796
Receivables from purchase and sale of securities
and derivatives 2,011,953 (1,602,244) 1,677,045 (1,423,075)
Reinsurance assets (2,040,620) (101,158) - -
Other assets (220,462) 1,686,656 2,693,151 (431,483)
Increase (decrease) in operating liabilities
Deposits (96,616,551) (41,943,638) (27,141,638) (23,936,288)
Interbank and money market items 9,892,160 (22,028,919) 18,330,999 7,526,302
Liability payable on demand (996,229) 120,125 (973,984) 214,645
Derivatives liabilities 652,276 245,789 661,248 (24,228)
Payable from purchase and sale of securities
and derivatives (3,202,552) 2,298,262 (1,465,422) 1,423,172
Liabilities under insurance/ life insurance 6,380,389 4,217,902 - -
Other liabilities (1,963,750) 745,696 (2,982,791) 456,684
Net cash flows used in operating activities (78,713,257) (45,003,224) (18,399,926) (16,649,556)
Cash flows from investing activities
Cash payment for the entire business transfer - - (39,253,886) -
Decrease (increase) in investments in securities held
for investment 4,964,042 19,603,730 (10,547,385) 9,631,746
Cash paid for acquire investment in subsidiaries (16,446) (59,291,064) (2,681,425) (68,835,299)
Cash received from disposal of investments
in subsidiary companies 366,304 212,756 - 212,766
Cash received from disposal of investment in an
associated company 113,750 - - -
Capital returned from a subsidiary - - 16,922,510 4,671
Cash received from interest on investments 4,533,638 4,301,842 1,984,309 1,803,609
Cash received from dividend 824,488 602,433 1,590,487 576,466
Cash paid for purchase of equipment (852,070) (579,042) 674,382 (262,296)
Cash received from disposal of equipment 39,767 17,713 4,106 7,940
Cash paid for dividend to non-controlling interests (42,588) (33,516) - -
Net cash flows from (used in) investing activities 9,930,885 (35,165,148) (31,306,902) (56,860,397)
The accompanying notes are an integral part of the financial statements.
Consolidated Separate
financial statements financial statements
Annual Report 2011 Thanachart Bank Public Company Limited 79
STATemenTS of CASH fLoWS (ConTInUeD)
Thanachart Bank Public Company Limited and its subsidiaries
Statements of cash flows (continued)
For the years ended 31 December 2011 and 2010
(Unit: Thousand Baht)
2011 2010 2011 2010
Cash flows from financing activities
Cash received from issued additional share capital - 35,790,456 - 35,790,456
Cash received from borrowings 1,181,760,489 525,897,163 990,764,061 460,836,327
Cash paid for borrowings (1,103,304,035) (465,956,560) (920,720,557) (419,681,093)
Cash paid for interest from borrowings (6,758,720) (2,901,428) (5,860,648) (2,338,590)
Cash paid for dividend (2,205,466) (1,083,387) (2,205,466) (1,083,387)
Cash paid to non-controlling interests for capital refund (2,323) - - -
Net cash flows from financing activities 69,489,945 91,746,244 61,977,390 73,523,713
Net increase in cash 707,573 11,577,872 12,270,562 13,760
Cash at beginning of the year 15,298,105 3,720,233 3,733,489 3,719,729
Cash at end of the year 16,005,678 15,298,105 16,004,051 3,733,489
Supplemental cash flows information
Non-cash transactions
Transfer of properties foreclosed from receivables for
debt settlement 3,307,890 3,941,135 3,137,524 3,812,704
Accounts payable for purchase of fixed assets 159,024 139,067 112,184 33,884
Bad debt written-off 1,479,108 1,181,569 618,108 593,531
The accompanying notes are an integral part of the financial statements.
Consolidated Separate
financial statements financial statements
80 Annual R
eport 2011 Thanachart Bank Public C
ompany Lim
ited
STATemenTS of CHAnGeS In eQUITY
Thanachart Bank Public Company Limited and its subsidiaries
Statements of changes in equity
For the years ended 31 December 2011 and 2010
(Unit: Thousand Baht)
Consolidated financial statements
Other components of equity
Surplus from Share of
Issued and business Surplus on other comprehensive Retained earnings
fully paid-up combination under changes in value income (loss) Appropriated - Non-controlling
share capital Share premium common control of investments of associates statutory reserve Unappropriated interests Total
Balance as at 1 January 2010 19,346,193 2,100,694 (123,379) 264,125 119,144 370,019 5,734,597 60,691 27,872,084
Increase in share capital (Note 27) 35,790,456 - - - - - - - 35,790,456
Dividend paid (Note 31) - - - - - - (1,083,387) - (1,083,387)
Decrease in non - controlling interests -
of the subsidiaries - - - - - - - (230,637) (230,637)
Transfer of retained earnings to
statutory reserve (Note 29) - - - - - 285,926 (285,926) - -
Total comprehensive income for the year - - - 683,770 204,123 - 8,776,543 380,482 10,044,918
Balance as at 31 December 2010 55,136,649 2,100,694 (123,379) 947,895 323,267 655,945 13,141,827 210,536 72,393,434
Balance as at 1 January 2011 - 55,136,649 2,100,694 (123,379) 947,895 323,267 655,945 13,141,827 208,955 72,391,853
as previously reported
The allocation of cost of business combination
adjustment (Note 2.3) - - - - - - - 1,581 1,581
Balance as at 1 January 2011 - as restated 55,136,649 2,100,694 (123,379) 947,895 323,267 655,945 13,141,827 210,536 72,393,434
Cumulative effect of change in accounting policy
for employee benefits (Note 4) - - - - - - (2,265,666) (6,472) (2,272,138)
Dividend paid (Note 31) - - - - - - (2,205,466) - (2,205,466)
Increase in non - controlling interests
of the subsidiaries - - - - - - - 471,774 471,774
Transfer of retained earnings to
statutory reserve (Note 29) - - - - - 333,381 (333,381) - -
Total comprehensive income for the year - - - (354,511) (180,370) - 7,671,425 9,416 7,145,960
Balance as at 31 December 2011 55,136,649 2,100,694 (123,379) 593,384 142,897 989,326 16,008,739 685,254 75,533,564
The accompanying notes are an integral part of the financial statements.
Annual R
eport 2011 Thanachart Bank Public C
ompany Lim
ited 81
STATemenTS of CHAnGeS In eQUITY (ConTInUeD)
Thanachart Bank Public Company Limited and its subsidiaries
Statements of changes in equity (continued)
For the years ended 31 December 2011 and 2010
(Unit: Thousand Baht)
Separate financial statements
Other components
of equity
Issued and Surplus on changes Retained earnings
fully paid-up in value of Appropriated -
share capital Share premium investments statutory reserve Unappropriated Total
Balance as at 1 January 2010 19,346,193 2,100,694 213,694 370,019 4,324,639 26,355,239
Increase in share capital (Note 27) 35,790,456 - - - - 35,790,456
Dividend paid (Note 31) - - - - (1,083,387) (1,083,387)
Transfer of retained earnings to statutory reserve (Note 29) - - - 285,926 (285,926) -
Total comprehensive income for the year - - (44,182) - 5,718,529 5,674,347
Balance as at 31 December 2010 55,136,649 2,100,694 169,512 655,945 8,673,855 66,736,655
Balance as at 1 January 2011 55,136,649 2,100,694 169,512 655,945 8,673,855 66,736,655
Cumulative effect of change in accounting policy for
employee benefits (Note 4) - - - - (356,036) (356,036)
Dividend paid (Note 31) - - - - (2,205,466) (2,205,466)
Transfer of retained earnings to statutory reserve (Note 29) - - - 333,381 (333,381) -
Total comprehensive income for the year - - 41,594 - 6,667,610 6,709,204
Balance as at 31 December 2011 55,136,649 2,100,694 211,106 989,326 12,446,582 70,884,357
The accompanying notes are an integral part of the financial statements.
82 Annual Report 2011 Thanachart Bank Public Company Limited
noTeS To ConSoLIDATeD fInAnCIAL STATemenTS
1
Thanachart Bank Public Company Limited and its subsidiaries Notes to consolidated financial statements For the years ended 31 December 2011 and 2010
1. General information
Thanachart Bank Public Company Limited (“Thanachart Bank” or “the Bank”) was
incorporated as a public limited company under Thai laws and its parent company is
Thanachart Capital Public Company Limited (herein after referred to as “the Parent
company”), a public limited company also existing under Thai laws. The Parent company
holds 50.96 percent of the Bank issued shares and Scotia Netherlands Holding BV, a
company registered in Netherland, holds 49.00 percent of the Bank issued shares. The
Bank’s registered address is 900, Tonson Tower, Ploenchit Road, Lumpini, Pathumwan,
Bangkok. The Bank has 676 operational branches (2010: 256 operational branches).
All subsidiaries are registered limited or public limited companies under Thai laws and
operate their businesses in Thailand. The subsidiaries businesses include commercial
bank, non-performing assets management business, securities business, leasing and hire
purchase business, non-life insurance business, life insurance business, fund
management business and others.
2. Thanachart Bank’s project to purchase Siam City Bank Plc.’s ordinary shares with the purpose of transferring Siam City Bank’s entire business to the Bank
2.1 The purchase of the ordinary shares of Siam City Bank Plc. from the Financial Institutions Development Fund
On 11 March 2010, Thanachart Bank entered into a share purchase agreement with the
Financial Institutions Development Fund (“FIDF”) to purchase 1,005,330,950 shares of
Siam City Bank Plc. (“SCIB”), or 47.58 percent of the total issued and paid-up share
capital, at a price of Baht 32.50 per share, or for total of Baht 32,673 million. On 9 April
2010, Thanachart Bank paid FIDF for SCIB’s shares, with the approval of the 2010 Annual
General Meeting of the Bank’s shareholders, and the Bank of Thailand (“BOT”). The BOT
also approved the Bank to hold the shares of SCIB in accordance with certain specified
conditions, i.e. SCIB is to continue operating as commercial bank but has to return its
banking license within 31 December 2011, the requirements on capital funds calculation,
the structure of the financial business group, and holdings in companies in the financial
business group.
Annual Report 2011 Thanachart Bank Public Company Limited 83
2
The Share Purchase Agreement between Thanachart Bank as “the Purchaser” and the
FIDF as “the Seller”, dated 11 March 2010, states that the obligations, guarantees,
liabilities or indemnities of the Seller to SCIB under any arrangements, agreements or
documents in connection with the merger between SCIB and Bangkok Metropolitan Bank
Public Company Limited (“BMB”) (the “Seller’s Obligations”) including funds deposited in
accounts opened and maintained with SCIB to compensate for any losses or damages
suffered or incurred by SCIB arising out of or in connection with the merger between SCIB
and BMB will continue in full force and effect after completion of the sale and purchase of
SCIB’s shares. Rights and obligations of SCIB related to the Seller’s Obligation, including
funds deposited in the accounts opened and maintained with SCIB, will be transferred to
and/or assumed by Thanachart Bank, with effect from the completion date of the entire
business transfer from SCIB to Thanachart Bank. In addition, in case of the liquidation of
the Seller, the Seller’s Obligations will be transferred and/or assumed by another
government agency.
2.2 Additional tender offer for common shares of SCIB in 2010
During June 2010, Thanachart Bank made an additional tender offer to the minority
shareholders of SCIB, at the same price as it paid to purchase shares of SCIB at auction
from FIDF. Other shareholders sold 1,091,439,949 shares, or for a total of Baht 35,472
million, or 51.66 percent of the issued and paid-up shares of SCIB as a result of the tender
offer, and combined with its existing holding, Thanachart Bank shareholding in SCIB
reached 99.24 percent.
During November 2010, Thanachart Bank acquired 14,907,658 additional shares of SCIB
for a total of Baht 484 million, increasing its shareholding to 99.95 percent of the issued
and paid-up shares of SCIB. The Stock Exchange of Thailand announced the voluntary
delisting of SCIB’s shares on 13 December 2010.
84 Annual Report 2011 Thanachart Bank Public Company Limited
3
2.3 Allocating the cost of business combination
Thanachart Bank acquired 47.58 percent of SCIB’s shares in April 2010 and on the same
day, management of Thanachart Bank were assigned as directors of SCIB in a number
that gave Thanachart Bank voting control over SCIB. Because Thanachart Bank had
control over SCIB through shareholding and management, it has treated SCIB’s shares as
investment in a subsidiary company since then. As a result of purchasing of additional
shares to increase its shareholding in SCIB to 99.24 percent in June 2010 and 99.95
percent in November 2010, the total cost of investment in SCIB was Baht 68,801 million in
the consolidated financial statements (including expenses in business combination and
after deducting intercompany transactions). On 9 April 2010, Thanachart Bank’s
management preliminarily estimated the fair value of each asset and liability of SCIB for
the purpose of allocating the cost of business combination and recognised the difference
between the cost of business combination and the fair value of assets, liabilities,
contingent liabilities and intangible assets in proportion to its shareholding as goodwill
from business combination in the consolidated financial statements.
However, after the purchase, Thanachart Bank adjusted the estimated fair value of the
assets and liabilities because of additional information that was received. This is in line
with the related financial reporting standard that allows the purchaser to adjust the fair
value for up to one year from the purchase date. The revised fair values of assets and
liabilities are as follows:
1. Assets and liabilities in SCIB and its subsidiaries’ accounts were valued and noted
that the fair value of assets and liabilities as at investment payment date were totaled
of Baht 48,635 million, which was Baht 4,264 million higher than book value.
2. Intangible assets are assets that will generate future economic benefits. Thanachart
Bank estimated the fair value of the intangible assets of SCIB at Baht 4,100 million,
comprised of (a) Core Deposit Intangibles which are evaluated using the incremental
cash-flows from low cost deposit, and considering the cost saving from current and
saving deposits; and (b) Customer Relationships which are valued on the base of
future revenues that will be earned from SCIB’s existing customers.
3. For liabilities specify at acquisition date and contingent liabilities, Thanachart Bank
estimated these and concluded that no additional contingent liabilities need to be
recognised.
Annual Report 2011 Thanachart Bank Public Company Limited 85
4
Differences between the cost of business combination and the fair value of assets,
liabilities, contingent liabilities and intangible assets in proportion to the shareholding,
amounting to Baht 15,740 million, are recognised as goodwill from business combination
in the consolidated financial statements. The Bank has retrospectively adjusted the
comparative financial information in the previous year’s financial statements as if the
accounting records for business combination had completed since the acquisition date.
The fair value of the assets and liabilities of SCIB and its subsidiaries and the carrying value
of each significant account as at the date Thanachart Bank assumed control over SCIB are
as follow:
(Unit: Million Baht)
Fair value
Book value Previous balance Revised
Intangible assets 293 4,393 4,393
Other assets 435,702 437,016 439,966
Total liabilities 391,495 391,495 391,495
Non-controlling interests of the subsidiaries 129 129 129
Net assets value 44,371 49,785 52,735
Cost of business combination 68,801 68,801
Goodwill 18,688 15,740
In allocating the purchase price, Thanachart Bank did not recognise deferred tax liabilities of
Baht 2,466 million arising from the adjustment of assets to fair value (If the Bank
recognised deferred tax liabilities on the date of business combination, the balance of
such liabilities as at 31 December 2011 would be decreased to Baht 1,644 million,
calculated using the tax rates enacted at the year-end date), and did not recognise the
employee benefits of SCIB and its subsidiaries payable under labour law, amounting to
Baht 1,804 million, since the two relevant accounting standards are not yet effective for
the year of business combination.
Since the fair value adjustment of assets and liabilities mentioned above and the
recalculation of goodwill, Thanachart Bank has retrospectively adjusted the comparative
financial information in the previous year’s financial statements as if the Bank has
completely accounted for the business combination on the acquisition date, resulted in the
following revisions to the consolidated comparative financial statements as of 31
December 2010:
86 Annual Report 2011 Thanachart Bank Public Company Limited
5
(Unit: Million Baht)
31 December 2010 31 December 2010
Before adjustment After adjustment
Net investment 137,959 140,022
Properties foreclosed 6,964 7,850
Intangible assets 4,805 4,805
Goodwill 18,698 15,750
Non - controlling interests of the subsidiaries 209 210
2.4 Key operation after the tender offer for SCIB’s shares in 2011
On 10 March 2011, BOT approved Thanachart Bank’s proposed plan for an entire
business transfer of SCIB’s business to the Bank. The significant conditions of such
approval are that SCIB must complete the entire business transfer and return the banking
licenses and banking authorisations to the Ministry of Finance within 31 December 2011,
and promptly proceed with the liquidation process, and that obligations between the Bank
and FIDF are to comply with the Share Purchase Agreement dated 11 March 2010.
On 7 April 2011, the 2011 Annual General Meeting of the Shareholders of SCIB and
Thanachart Bank passed resolutions approving the transfer of SCIB’s entire business to
Thanachart Bank, and the BOT has already approved this transaction. The Meetings also
delegated the related authorities to SCIB’s Board of Directors and Thanachart Bank’s
Board of Directors for further arrangement. On 30 June 2011, a meeting of the Bank’s
Board of Directors passed a resolution to perform the entire business transfer from SCIB
to the Bank on 1 October 2011 (EBT date).
On 30 September 2011, Thanachart Bank entered into the Entire Business Transfer
Agreement, legally effective on 1 October 2011, to transfer SCIB’s business to Thanachart
Bank. The transferred business consisted of the assets, liabilities and commitment of
SCIB as of 1 October 2011 and/or contingent liabilities that may arise in the future, with
the parties agreeing a transfer price of Baht 50,134 million. The transfer price was set in
accordance with the guidelines for setting transfer prices of financial assets among
companies in the Thanachart group, and an independent financial advisor opined that it
was fair value. SCIB recognised gain on the entire business transfer of Baht 5,299 million
which has been eliminated in the consolidated financial statements.
Annual Report 2011 Thanachart Bank Public Company Limited 87
6
Significant guidelines of the transfer price of assets and liabilities are as follows:
- Loans: The transfer values were based on the outstanding loan balances net of
related allowance for doubtful accounts.
- Investments: The fair values of marketable securities were based on the latest bid
price, the fair value of debt securities were determined using the yield rate quoted by
the Thai Bond Market Association, and the fair values of other investments were
determined from expected future cash flows, expected dividend to be received or net
book value.
- Property foreclosed: The fair values were based on the values appraised by
independent appraisers in accordance with BOT guidelines, after deduction of a
discount determined on the basis of past selling experience.
- Deposit/debt issued and borrowings: Almost of deposits and short-term borrowings
have floating interest rate and therefore the fair value is deemed to be closed to the
book value. Long-term deposits and borrowings have interest yields that approximate
market interest rate, and therefore fair value is deem to be closed to the book value.
- Other assets/liabilities: The fair value approximates the book value.
- Off-balance items and commitments under various exchange contracts are
transferred at book value.
Significant assets and liabilities at the transfer date are as follow:
(Unit: Million Baht)
Interbank and money market items - net 67,649
Net investment 47,852
Loans to customer and accrued interest receivables - net 236,689
Property foreclosed 3,303
Land, premises and equipment 7,830
Other assets 17,754
Deposits 255,968
Debt issued and borrowings 58,366
Other liabilities 16,609
Entire business transfer price - net 50,134
88 Annual Report 2011 Thanachart Bank Public Company Limited
7
Effective 1 October 2011, SCIB discontinued its operations. On 1 November 2011, the
Board of Directors of SCIB passed a resolution to pay an interim dividend at Baht 7.50 per
shares to its shareholders, totaling Baht 15,846 million. In November 2011, Thanachart
Bank purchased additional shares of SCIB from the minority shareholders, to give those
minority shareholders a chance to sell their shares before SCIB’ dissolution. Minority
shareholders sold a total of 696,865 shares, at Baht 16 million, Thanachart Bank therefore
holds 2,112,375,422 shares, or 99.98% of the total shares in issue.
On 6 December 2011, the Extraordinary Meeting of SCIB’s shareholders approved the
change of Siam City Bank’s name to “SCIB Plc.”. On 8 December 2011, SCIB returned its
banking license and banking authorisations to the Ministry of Finance, and registered the
change in its company’s name as “SCIB Plc.”. SCIB registered the company’s dissolution
on 9 December 2011.
2.5 Transfer business of subsidiaries in the group
Siam City Securities Co., Ltd.
On 28 October 2010, the Boards of Directors of Thanachart Bank and SCIB passed
resolutions to approve a plan for a business combination between Thanachart Securities
Plc. (“Thanachart Securities”) and Siam City Securities Co., Ltd. (“SCIB Securities”), which
is a subsidiary in the Group, by means of a partial business transfer of the assets of SCIB
Securities to Thanachart Securities. The price of the transfer was to be not less than the
book value, with reference to the latest adjusted book value before the transaction date. In
November 2010, an extraordinary meeting of SCIB Securities’ shareholders approved the
partial business transfer. On 30 December 2010, SCIB Securities entered into agreements
to transfer assets relating to the securities business and obligations relating to the
investment banking business, amounting to Baht 11 million, effective from 31 December
2010, while transfers of claims under agreements appointing an agent and/or broker for
securities trading, including securities business receivables and payables with a net
balance of Baht 206 million, and cash collateral for settlements amounting to Baht 216
million, were effective on 1 January 2011. SCIB Securities also transferred certain
employees to Thanachart Securities on the same day.
SCIB Securities temporary discontinue of its operations since 1 January 2011. The Annual
General Meeting of the shareholders of SCIB Securities, held on 27 April 2011, approved
the reduction of the registered and paid-up share capital of SCIB Securities from Baht
2,000 million to Baht 900 million. SCIB Securities registered the shares reduction on 7
June 2011.
Annual Report 2011 Thanachart Bank Public Company Limited 89 8
In August 2011, SCIB disposed investment in common shares of SCIB Securities at a
price of Baht 168 million and recognised gains on the disposal of Baht 40 million in the
consolidated financial statements of Thanachart Bank. This disposal was in accord with
the approval by the Board of Directors of SCIB on 23 June 2011.
Siam City Asset Management Co., Ltd.
On 27 January 2011, the Board of Directors of SCIB passed a resolution to approve an
offer to purchase and/or to sell shares of Siam City Asset Management Co., Ltd. to
Government Pension Fund, a former shareholder. During May 2011, SCIB disposed all of
its shares to the purchaser at a price of Baht 198 million and recognised gain on the
disposal of Baht 26 million in the consolidated financial statements of Thanachart Bank.
Siam City Bank Plc./ TS Asset Management Co., Ltd.
During the year 2011, SCIB and TS Asset Management Co., Ltd. (“TS”) (The new
company, which was licensed by the Bank of Thailand, set up to receive the transfer of
SCIB’s non-performing assets including non-performing loans and property foreclosed, for
further management) entered into an agreement to transfer rights in loan receivables and
property foreclosed from SCIB to TS as follows:
Fair value
(Million Baht)
- Non-performing loans 9,062
- Property foreclosed 3,083
The transfer of such financial assets was treated as a true sale in both financial
statements of the transferee and the transferor since the transferor surrendered control
over the assets. The selling prices were mutually agreed among companies in Thanachart
Group with reference to what in the opinions of a financial advisor were fair values.
Compensation for this transfer will be considered the fair value when recognising the
selling price and the values of the transferred assets, which are as follows:
- For non-performing loans, the fair values are referred to the outstanding loan balance
net of related allowance for doubtful accounts.
- For property foreclosed, the fair values are referred to the value appraised by
independent appraisers in accordance with the BOT guidelines, after deduction by an
amount determined on the basis of past selling experience.
90 Annual Report 2011 Thanachart Bank Public Company Limited 9
Under the conditions of the agreement, the transferee is entitled to claim compensation if
conditions specified in the agreement are breached within the specified period. However,
gains (losses) from transfers of assets and the intercompany balances are eliminated
when preparing the consolidated financial statements of Thanachart Bank because the
transfers are intercompany transactions.
Siam City Insurance Co., Ltd.
On 27 July 2011, the Board of Directors of SCIB passed a resolution approving the
disposal of investment in common shares of Siam City Insurance Co., Ltd. to other party.
SCIB subsequently sold all the shares to purchasers on 19 August 2011 at a total price of
Baht 113.75 million.
3. Basis of preparation of the financial statements
3.1 Basis of preparation of the financial statements
The financial statements have been prepared in accordance with accounting standard
enunciated under the Accounting Professions Act B.E. 2547 with reference to accounting
practice of “Transferring/Transferred of financial assets” and the principles stipulated by
the Bank of Thailand (“BOT”). The presentation of the financial statements has been made
in compliance with the BOT’s Notification relating to the preparation and format of the
financial statements of commercial banks and holding company of financial business
groups, dated 3 December 2010. Hence, the Bank reclassified certain items of the
comparative financial statements.
The financial statements in Thai language are the official financial statements of the Bank.
The financial statements in English language have been translated from the Thai language
financial statements.
The financial statements have been prepared on a historical cost basis except where
otherwise disclosed in the accounting policies.
Annual Report 2011 Thanachart Bank Public Company Limited 91
10
3.2 Basis of preparation of the consolidated financial statements
a) The consolidated financial statements included the financial statements of the Bank
and the following subsidiary companies (“the subsidiaries”).
Percentage of holding Percentage of holding
by the Bank by the subsidiaries
2011 2010 2011 2010
Subsidiaries directly held by the Bank
SCIB Plc.
(Formerly known as “Siam City Bank Plc.”)
99.98 99.95 - -
Thanachart Securities Plc. 100.00 100.00 - -
Thanachart Insurance Co., Ltd. 100.00 100.00 - -
Thanachart Life Assurance Co., Ltd. 100.00 100.00 - -
Thanachart Fund Management Co., Ltd. 75.00 75.00 - -
Thanachart Broker Co., Ltd. 100.00 100.00 - -
Thanachart Group Leasing Co., Ltd. 100.00 100.00 - -
Thanachart Management and Services Co., Ltd. 100.00 100.00 - -
Thanachart Legal and Appraisal Co., Ltd. 100.00 100.00 - -
Thanachart Training and Development Co., Ltd. 100.00 100.00 - -
TS Asset Management Co., Ltd. 100.00 - - -
Ratchthani Leasing Plc. 65.18 - - -
Subsidiaries indirectly held by the Bank
National Leasing Co., Ltd. 100.00 - 100.00 100.00
Siam City Securities Co., Ltd. - - - 99.79
Siam City Life Assurance Co., Ltd. 100.00 - 100.00 100.00
Siam City Asset Management Co., Ltd. - - - 60.00
SCIB Service Co., Ltd. 100.00 - 100.00 100.00
92 Annual Report 2011 Thanachart Bank Public Company Limited
11
b) Total assets and total income of the subsidiaries that have significant impact to and
are included in the consolidated financial statements as at 31 December 2011 and
2010 and for the years then ended, after eliminating significant intercompany
transactions, are as follows:
(Unit: Million Baht)
Total income
Total assets for the year
2011 2010 2011 2010
SCIB Plc. - 406,974 9,044 9,945
Thanachart Life Assurance Co., Ltd. 20,402 19,917 1,964 1,471
Siam City Life Assurance Co., Ltd. 11,195 11,008 (89) 482
Thanachart Insurance Co., Ltd. 7,176 5,189 1,975 1,523
Thanachart Securities Plc. 3,877 3,958 1,377 1,357
TS Asset Management Co., Ltd. 11,361 - 296 -
Ratchthani Leasing Plc. 12,033 - 175 -
c) The Bank has additionally invested in TS Asset Management Co., Ltd. which was
newly set up during March 2011, and holds 100 percent.
d) In October 2011, the Bank received the investments in 437,250,000 ordinary shares
of Ratchthani Leasing Plc. from SCIB for Baht 536 million, in accordance with the
terms of the entire business transfer agreement. As a result, the Bank’s interest in
Ratchthani was 48.35 percent. On 1 November 2011, the Bank also purchased
437,486,500 additional shares at Baht 1.52 per share, or for a total of Baht 665
million, resulting in the Bank’s shareholding increasing to 65.18 percent of the total
shares in issued. The investment was therefore treated as investment in subsidiary.
Such purchase of additional ordinary shares is deemed to be a step acquisition.
Under the Financial Reporting Standard, the Bank had to assess the value of the
investment at equity held on the date before the business combination, using the fair
value at the purchase date, and the Bank realised the gain of Baht 33 million in profit
or loss in the statements of comprehensive income.
Annual Report 2011 Thanachart Bank Public Company Limited 93
12
Amount
(Million Baht)
Fair value of investment at equity as at the purchase date before business
combination 556
Less: Investment value at equity before business combination (523)
Gain on revaluation of investment recognised in profit or loss 33
In addition, under the business combination, the Bank has to estimate the fair value
of each asset and liability for the purpose of allocating the cost of business
combination. The fair value of the assets and liabilities of Ratchthani Plc. (“THANI”)
and the carrying value of each significant account as at the date the Bank obtained
control over THANI is as follow:
(Unit: Million Baht)
Book value Fair value
Loans 11,842 11,576
Land, premises and equipment 45 62
Other assets 1,502 1,512
Total liabilities 11,278 11,278
Net assets value 2,111 1,872
Cost of business combination 1,221
In allocating the purchase price, the cost of business combination does not differ
from the net adjusted book value of the assets and liabilities at the purchase date, at
the purchase portion, and thus no goodwill arose from this business combination. In
addition, the Bank did not recognise deferred tax assets of Baht 72 million arising
from the adjustment of assets to fair value since this accounting standard is not yet
effective in the year of business combination. However, if the Bank had applied such
standard on that date, deferred tax assets as at 31 December 2011 would be
decreased to Baht 48 million (effect from the tax rates enacted at the year-end date).
Therefore, the consolidated financial statements of the Bank included the statement
of financial position of Ratchthani Leasing Plc. as at 31 December 2011, and the
consolidated statements of comprehensive income included income and expenses
from such company from 1 November 2011 (the date that Thanachart Bank assumed
control) to 31 December 2011. The Bank recognised net loss from THANI totaling
Baht 27 million from the date that the Bank assumed control based on its
shareholding interest.
94 Annual Report 2011 Thanachart Bank Public Company Limited
13
For additional information to facilitate evaluation of the financial impact of the business combination, proforma consolidated total income and profit of the Bank and its subsidiaries for the year are presented below, inclusive of income and profit of Ratchthani Leasing Plc. as if business combination had occurred since the beginning of the year.
(Unit: Million Baht)
For the year ended
31 December 2011
Total income as if business combination occurred on 1 January 2011 66,947
Profit attributable to the Bank as if business combination occurred on
1 January 2011 (exclude elimination transactions before the purchase date) 7,700
e) The consolidated statements of comprehensive income for the year ended 31 December 2010 include the operating results of SCIB and the subsidiaries held by SCIB from 9 April 2010 to 31 December 2010 because the Bank purchased the ordinary shares of SCIB and assumed control over SCIB in April 2010.
f) In May 2011, SCIB disposed of investments in common shares of Siam City Asset Management Co., Ltd. to former shareholders for Baht 198 million. The gain on disposal of Baht 26 million was recognised in the consolidated financial statements. In addition in August 2011, SCIB disposed of investments in common shares of SCIB Securities Co., Ltd. for Baht 168 million, with gain on disposal of Baht 40 million recognised in the consolidated financial statements.
g) The consolidated statements of comprehensive income for the year ended 31 December 2010 included the operating results of T Leasing Co., Ltd. from 1 January 2010 until 30 April 2010, the date of disposal of the investment, and the gain on such disposal of Baht 24 million was recognsied in the consolidated financial statements.
h) All subsidiaries are fully consolidated as from the acquisition, being the date on which the Bank obtains control, and continue to be consolidated until the date when such control ceases. However, the consolidated statement of financial position as at 31 December 2010 and the consolidated statements of comprehensive income for the years ended 31 December 2011 and 2010 did not include the financial position and operating results of a subsidiary company, Chada Thong Properties Co., Ltd., in which the Bank has indirectly held by SCIB at 70 percent, because that subsidiary has ceased its operations and is in the process of being liquidated. SCIB has already made a full allowance for impairment in the value of its investment in that subsidiary. However, during the third quarter of 2011, SCIB sold out all of its investment.
Annual Report 2011 Thanachart Bank Public Company Limited 95
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i) The financial statements of the subsidiaries are prepared for the same reporting
period as the Bank, using the same significant accounting policies. In case where
there are different accounting policies the Bank has adjusted the effect of these in
the consolidated financial statements.
j) The outstanding balances and significant intercompany transactions between the
Bank and its subsidiaries have been eliminated from the consolidated financial
statements. The investments in subsidiaries as recorded in the Bank’s and
subsidiaries’ books of accounts have been eliminated against equity of the
subsidiaries.
k) Non-controlling interests represent the portion of profit or loss and net assets of the
subsidiaries that are not held by the Bank and are presented separately in the
consolidated statement of comprehensive income and within equity in the
consolidated statement of financial position.
3.3 The separate financial statements, which present investments in subsidiary and associated
companies under the cost method, have been prepared solely for the benefit of the public.
4. Adoption of new accounting standards during the year
During the current year, the Bank and its subsidiaries adopted a number of revised and
new accounting standards, issued by the Federation of Accounting Professions, as listed
below.
Accounting standards:
TAS 1 (revised 2009) Presentation of Financial Statements
TAS 2 (revised 2009) Inventories
TAS 7 (revised 2009) Statement of Cash Flows
TAS 8 (revised 2009) Accounting Policies, Changes in Accounting Estimates and
Errors
TAS 10 (revised 2009) Events after the Reporting Period
TAS 11 (revised 2009) Construction Contracts
TAS 16 (revised 2009) Property, Plant and Equipment
TAS 17 (revised 2009) Leases
TAS 18 (revised 2009) Revenue
TAS 19 Employee Benefits
TAS 23 (revised 2009) Borrowing Costs
TAS 24 (revised 2009) Related Party Disclosures
TAS 26 Accounting and Reporting by Retirement Benefit Plans
96 Annual Report 2011 Thanachart Bank Public Company Limited
15
TAS 27 (revised 2009) Consolidated and Separate Financial Statements
TAS 28 (revised 2009) Investments in Associates
TAS 29 Financial Reporting in Hyperinflationary Economies
TAS 31 (revised 2009) Interests in Joint Ventures
TAS 33 (revised 2009) Earnings per Share
TAS 34 (revised 2009) Interim Financial Reporting
TAS 36 (revised 2009) Impairment of Assets
TAS 37 (revised 2009) Provisions, Contingent Liabilities and Contingent Assets
TAS 38 (revised 2009) Intangible Assets
TAS 40 (revised 2009) Investment Property
Financial reporting standards:
TFRS 2 Share-Based Payment
TFRS 3 (revised 2009) Business Combinations
TFRS 5 (revised 2009) Non-current Assets Held for Sale and Discontinued Operations
TFRS 6 Exploration for and Evaluation of Mineral Resources
Financial Reporting Standard Interpretations:
TFRIC 15 Agreements for the Construction of Real Estate
Accounting Standard Interpretations:
SIC 31 Revenue-Barter Transactions Involving Advertising Services
These accounting standards do not have any significant impact on the financial
statements for the current year, except for TAS 19 “Employee Benefits”.
TAS 19 Employee Benefits
This accounting standard requires employee benefits to be recognised as expense in the
period in which the service is performed by the employee. In particular, an entity has to
evaluate and make a provision for post-employment benefits using actuarial techniques.
The Bank and its subsidiaries previously accounted for such employee benefits when they
were incurred.
Annual Report 2011 Thanachart Bank Public Company Limited 97
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The Bank and its subsidiaries have changed this accounting policy in the current year and
recognise the liability in the transition period through an adjustment to the beginning
balance of retained earnings in the current year. The change has the effect of decreasing
the beginning balance of retained earnings of the Bank and its subsidiaries by Baht 2,266
million (Separate financial statements: decreasing retained earnings by Baht 356 million).
The cumulative effect of the changes in accounting policy has been presented in
“Cumulative effect of change in accounting policy for employee benefits” in the statements
of changes in equity.
In addition, the change has the effect of decreasing the profit of the Bank and its
subsidiaries for the year ended 31 December 2011 by Baht 184 million, or Baht 0.033 per
share (Separate financial statements: decreasing profit by Baht 50 million or Baht 0.009
per share).
5. New accounting standards issued during the year not yet effective
The Federation of Accounting Professions issued the following new/revised accounting
standards that are effective for fiscal years beginning on or after 1 January 2013.
Accounting standards:
TAS 12 Income Taxes
TAS 20 (revised 2009) Accounting for Government Grants and Disclosure of
Government Assistance
TAS 21 (revised 2009) The Effects of Changes in Foreign Exchange Rates
Accounting Standard Interpretations:
SIC 10 Government Assistance - No Specific Relation to Operating
Activities
SIC 21 Income Taxes - Recovery of Revalued Non-Depreciable Assets
SIC 25 Income Taxes - Changes in the Tax Status of an Entity or its
Shareholders
The Bank and its subsidiaries’ management believe that these accounting standards will
not have any significant impact on the financial statements for the year when they are
initially applied, except for TAS 12 “Income Taxes”.
98 Annual Report 2011 Thanachart Bank Public Company Limited
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TAS 12 Income Taxes
This accounting standard requires an entity to identify temporary differences, which are
differences between the carrying amount of an asset and liability in the accounting records
and its tax base, and to recognise deferred tax assets and liabilities under the stipulated
guidelines.
At present, the management of the Bank and its subsidiaries is evaluating the impact on
the financial statements in the year when this standard is adopted.
6. Significant accounting policies
6.1 Revenue recognition
a) Interest and discounts on loans
Interest on loan is recognised as income on an accrual basis, based on the amount
of principal outstanding. Interest on hire purchase and financial lease is recognised
on the effective interest rate.
For loans on which principal or interest payments have been defaulted for more than
three months past the due date, the Bank and its subsidiaries cease accrual of
interest income, and accrued interest already recorded is reversed from the Bank
and its subsidiaries’ accounts. Interest is then recognised as income on a cash basis
until settlement of such overdue balance has been received from the debtors.
Interest income on restructured loans is recognised as income on an accrual basis,
with reference to the interest rate stipulated in the agreements, with the exception of
interest on loans that are subject to monitoring for compliance with restructuring
conditions, which the Bank and its subsidiaries recognise as income on a cash basis
until the receivable is able to comply with the restructuring conditions for a period of
no less than three months or three installments, whichever is longer.
The Bank and its subsidiaries recognise interest income on investments in
purchased/transferred loans for which loan repayment is received during the year
based on the effective yield rate of the portfolio by the new book value (acquisition
cost) of the outstanding balances of receivables. After the restructuring, interest
income is recognised by the effective interest rate method for those receivables from
which loan repayment was received during the year.
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Interest or discounts already included in the face value of notes receivable or loans
are recorded as deferred interest and taken up as income evenly throughout the
term of the notes or loans or in proportion of debt repayment.
Interest income received in advance on hire purchase represents discounted on
interest given to debtors by dealers, is recognised based on the effective interest
method, in the same manner as interest income on hire purchase receivables.
b) Interest and dividends on investments
Interest on investments is recognised as income on an accrual basis based on the
effective interest rate. Dividends are recognised as income when the right to receive
the dividends is established.
c) Brokerage fee income
Brokerage fees on trading of securities and derivatives are recognised as income on
the transaction date.
d) Interest on margin loans for purchase of securities
Interest on margin loans for purchases of securities is recognised as income over the
term of the loans based on the amount of principal outstanding. The subsidiary
companies cease accruing interest for certain loans that fall under the conditions set
by the Securities and Exchange Commission (“SEC”).
e) Gains (losses) on investments and derivatives
Gains (losses) on investments and derivatives are recognised as income/ expenses
on the transaction date.
f) Fees and service income
Fees and service income are recognised as income on an accrual basis.
100 Annual Report 2011 Thanachart Bank Public Company Limited
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g) Insurance/life insurance premium income
Non-life insurance business
Insurance premium income on insurance policies is recognised on the date the insurance policy comes into effect, after deducting premium ceded and refunded for insurance policies with coverage periods of up to 1 year. For long-term insurance policies with coverage periods of longer than 1 year, related revenues and expenses are recorded as unearned and prepaid items, and amortised to income and expenses over the coverage period.
Insurance premium income is recognised after deducting unearned premium reserve.
Reinsurance premium income is recognised when the reinsurer places the reinsurance application or statement of accounts.
Life insurance business
Premium income is recognised as income on the date the insurance policy comes into effect, after deducting premium ceded and refunded. For renewal policy, premium income is recognised as income when the premium is dued, only if the policy is still in force at the year-end date.
6.2 Expenses recognition
a) Interest expenses
Interest expenses are charged to expenses on an accrual basis. Interest on notes payable included in the face value is recorded as deferred interest and amortised to expenses evenly throughout the term of the notes.
b) Commission and expenses charged on hire purchase/financial leases
For hire purchase/financial lease contracts originating on or after 1 January 2007, initial direct expenses at the inception of a hire purchase/financial lease contract (i.e. commission expenses and stamp duty expenses) are to be deferred and amortised using the effective interest method, with amortisation deducted from interest income throughout the contract period, in order to reflect the effective rate of return on the contracts.
Unearned income on hire purchase/financial leases is presented net of commission expenses and initial direct cost on the inception of the contracts.
c) Fees and service expenses
Fees and service expenses are recognised as expenses on an accrual basis.
Annual Report 2011 Thanachart Bank Public Company Limited 101
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6.3 Investments
Investments in securities held for trading are stated at fair value. Changes in the fair value
of the securities are recorded in profit or loss in the statements of comprehensive income.
Investments in available-for-sale securities are stated at fair value. Changes in the fair
value of these securities are recorded in other comprehensive income in the statements of
comprehensive income, and will be recognised in profit or loss when the securities are
sold.
Investments in held-to-maturity debt securities are recorded at amortised cost.
Premiums/discounts on debt securities are amortised/accreted by the effective rate
method with the amortised/accreted amount presented as an adjustment to the interest
income.
Investments in non-marketable equity securities, which are classified as other
investments, are stated at cost net of allowance for impairment (if any).
The Bank and its subsidiaries do not treat investments in mutual funds, in which they hold
not less than 20 percent of the units issued, as investments in subsidiary or associated
companies because the Bank and its subsidiaries do not have control or influence over the
financial and operating policies of these funds, which are independently managed by the
fund manager in accordance with the details of each fund project and are under the
supervision of the Securities and Exchange Commission.
The fair value of marketable securities is based on the latest bid price of the last working
day of the year. The fair value of debt securities is determined using the yield rates quoted
by the Thai Bond Market Association, other markets, or yield rate of government bond
adjusted by an appropriate risk factor. The fair value of unit trusts is determined from their
net asset value.
The fair value of investments which have embedded derivatives was determined using an
internal model because there is no active market. (2011: the fair value was determined
using the fair value as estimated by the seller). The gains/losses arising from revaluation
are recognised in profit or loss. This method of measurement is in compliance with the
principles stipulated by the BOT.
The Bank and its subsidiaries recognised loss on impairment (if any) of available-for-sale
securities, held-to-maturity debt securities and other investments in part of profit or loss in
the statements of comprehensive income.
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In the event of the Bank and its subsidiaries’ transfer investments to another category, the
investments are valued at their fair valued prevailing on the transfer date. Differences
between the carrying amount of the investments and their fair value on that date are
recorded as profit or loss in the statements of comprehensive income or surplus (deficit)
from revaluation of investments, which is presented as a separate item in equity and
amortised over the remaining period to maturity of the debt securities, depending on the
type of investment which is reclassified.
On disposal of an investment, the difference between net disposal proceeds and the
carrying amount of the investment is recognised as income or expenses in part of profit or
loss in the statement of comprehensive income. In case of disposal partial of the
investment, the carrying value per share used to calculate the cost of the portion sold is
determined using the weighted average method.
6.4 Investments in receivables purchased and allowance for impairment
Investments in receivables purchased are presented at their acquisition cost net of
allowance for impairment (if any). Loss on impairment is recognised as an expense in part
of profit or loss in the statements of comprehensive income.
In case that the receivables purchased enter into troubled debt restructuring agreements,
they are transferred to loans and presented at fair value. The fair value is determined
based on the outstanding balance of investments as at the transfer date or as at the date
of restructuring.
Allowance for impairment of investments in receivables purchased is determined based on
the fair value, with reference to the collateral value.
6.5 Investments in subsidiary and associated companies
Investments in subsidiary and associated companies in the separate financial statements
are accounted for under the cost method net of allowance for impairment (if any). Loss
on impairment is recognised as expenses in part of profit or loss in the statements of
comprehensive income.
Annual Report 2011 Thanachart Bank Public Company Limited 103
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Investments in associated companies in the consolidated financial statements are
accounted for under the equity method. Under this method, investments are initially
recorded at acquisition cost and are adjusted to reflect the attributable shares of the net
income from the operations of the associated companies, in proportion to the investment.
6.6 Loans
Loans are stated at the principal balances, excluding accrued interest receivable, except
for overdrafts which are presented at the principal balances plus accrued interest
receivable. Unrecognised deferred income and discounts on loans are deducted from the
loan balances.
Hire purchase receivables and financial lease receivables are stated at the contract value
of the hire purchase receivables and financial lease receivables net of unearned income,
which is presented after netting commission expenses and initial direct cost on the
inception of the contracts.
Securities and derivatives business receivables comprise the net balances of securities
business receivable and derivatives business receivables. Securities business receivable
comprises receivable balances of credit balance accounts (for which the securities
purchased are used as collateral), securities borrowing and lending receivables and
guarantee deposit receivables (which comprise cash placed as guarantee for borrowers of
securities or Thailand Securities Depository) as well as other receivables, such as overdue
amounts in cash accounts and securities receivables which are under legal proceedings,
are undergoing restructuring, or are being settled in installments. The receivable balance
of cash accounts is presented as “Receivable from purchase and sale of securities and
derivatives”.
6.7 Allowances for doubtful accounts
a) The Bank and its subsidiary companies that operate in banking and asset
management business provide allowance for doubtful accounts in accordance with
the Notifications of the BOT and adjust these by the additional amount which is
expected not to be collectible based on an evaluation of the current status of the
debtors, taking into consideration the recovery risk and the value of collateral.
Increase (decrease) in an allowance for doubtful accounts is recognised as an
expense during the year.
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The Bank and its subsidiary companies set provision for normal loans (including
restructured receivables) and special mention loans at minimum rates of 1% and 2%,
respectively, of the loan balances (excluding accrued interest receivable) net of
collateral value, as required by the BOT’s guidelines. Collateral values include
values of vehicles under hire purchase and finance lease contracts. For non-
performing loans, provision is set at a rate of 100% of the debt balance remaining
after deducting the present value of expected future cash flows from debt collection
or the present value of expected cash flows from collateral disposal, based on the
use of a discount rate and assumptions as to the time needed to dispose of the
collateral, in accordance with the BOT’s guideline. However, non-performing hire
purchase receivables and financial lease receivables are treated as uncollateralised.
b) Subsidiaries engaged in securities business have provided an allowance for doubtful
accounts based on a review of debtors’ repayment capability, taking into
consideration the risk of recovery and the value of collateral. An allowance is set
aside for doubtful debts not fully covered by collateral and/or those which may not be
fully recovered. Such debt classifications and provisions are made in accordance
with the Notifications of the SEC.
c) Subsidiaries engaged in hire purchase and leasing businesses have provided
allowance for doubtful accounts at percentages of the amount of principal
outstanding net of unearned income, based on the number of months overdue (with
reference to the classification of loans under BOT’s guidelines). Allowance for
doubtful accounts is provided based on the loan balances after net of collateral value
for receivables overdue no more than 3 months, while provided based on the loans
balance without deducting collateral value for receivables overdue more than 3
months.
d) Allowance for doubtful accounts of other receivables is based on the amount of debt
that may not be collectible, determined from a review of the current status of the
receivables as at the financial reporting date.
e) The Bank writes off hire purchase receivables when full allowance for doubtful
accounts has been made for such receivables. For other loans, the Bank and its
subsidiaries will be written off when the relevant criteria under tax law are met.
Amounts written off as bad debts or bad debt recovery are deducted from or added
to the allowance for doubtful accounts.
Annual Report 2011 Thanachart Bank Public Company Limited 105
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6.8 Troubled debt restructuring
In cases where the debt restructuring involves modifications of the terms, the fair value of
the receivables after restructuring is based on the net present value of expected future
cash flows, discounted by the market’s minimum interest rate for credit to large customers
as at the date of the debt restructuring. The differences between the fair values of
receivables as of the restructuring date and their previous book values is recorded in
“Revaluation allowance for debt restructuring”, and recognised as an expense in part of
profit or loss in the statements of comprehensive income in the restructuring period. The
Bank and its subsidiaries review such revaluation allowance based on the net present
value of future cash flows over the remaining period to maturity, recognising adjustments
against bad debt and doubtful accounts.
In cases where the troubled debt restructuring involves the transfer of assets or equity, the
Bank and its subsidiaries record the assets or equity interest received as a result of debt
restructuring at their fair value (based on the value appraised by internal appraisers or
external independent appraisers) providing this does not exceed the amount of principal
legally claimable from the debtor (including interest of which recognition has ceased until
the restructuring date). Any excess of the fair value of the assets over the book value is
recognised as interest income in part of profit or loss in the statement of comprehensive
income.
Losses arising from debt restructuring through waivers of part of principal or recorded
accrued interest receivable are recognised in part of profit or loss in the statement of
comprehensive income when incurred.
6.9 Recognition and amortisation of customers’ assets
Assets which customers have placed with the subsidiary companies for securities trading,
in term of cash accounts and credit balance accounts, including amounts which customers
have placed as security for derivative trading, are recorded as assets and liabilities of the
subsidiary companies for internal control purpose. As at the reporting date, the subsidiary
companies write off those amounts which there are no guarantee obligations from both
assets and liabilities and present only those assets which belong to the subsidiary
companies.
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6.10 Property foreclosed
Property foreclosed is stated at the lower of cost (fair value with reference to appraisal
value, providing this does not exceed the legally claimable amount of debt) or net
realisable value, which is determined with reference to the latest appraisal value less
estimated selling expenses, adjusts these in accordance with the BOT’s guideline and
taking into consideration the type and the nature of the assets.
Gains on disposal of property foreclosed are recognised in part of profit or loss in the
statements of comprehensive income on the disposal date, unless the purchase is made
with a loan from the Bank. In such cases, gains are recognised in accordance with the
BOT’s guideline. Losses on disposal and impairment losses are recognised as expenses
in part of profit or loss in the statements of comprehensive income.
6.11 Land, premises and equipment and depreciation
a) Land and assets under installation are stated at cost, and depreciation is not
provided.
b) Premises and equipment are stated at cost less accumulated depreciation and
allowance for impairment (if any). Depreciation is calculated by reference to their
cost on a straight-line basis over the following estimated useful lives:
Buildings - 20 - 30 years
Buildings improvement - 5 - 10 years
Furniture, fixtures and equipment - 3 - 10 years
Motor vehicles - 5 years
Depreciation is included in determining income.
c) Land, premises and equipment are derecognised upon disposal or when no future economic benefits are expected from their use. Any gain or loss arising on disposal of these assets (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in profit or loss in the statements of comprehensive income.
6.12 Intangible assets and amortisation
Intangible assets acquired through business combination are initially recognised at their fair value on the date of business acquisition while intangible assets acquired in other cases are recognised at cost. Following the initial recognition, the intangible assets are carried at cost less any accumulated amortisation and any accumulated impairment losses (if any).
Annual Report 2011 Thanachart Bank Public Company Limited 107
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The Bank and its subsidiaries amortised intangible assets with finite lives on a systematic
basis over the economic useful life and tested for impairment whenever there is an
indication that the intangible asset may be impaired. The amortisation period and the
amortisation method of such intangible assets are reviewed at least at each financial year
end. The amortisation expense and loss on impairment are recognised as expenses in
part of profit or loss in the statements of comprehensive income.
The intangible assets with finite useful lives have useful lives of approximately 3 - 10 years.
No amortisation for computer software under development.
6.13 Leasehold rights
Leasehold rights are stated at cost less accumulated amortisation. Leasehold rights are
amortised on a straight-line basis over the lease periods and the amortisation amounts are
recognised as expenses in part of profit or loss in the statements of comprehensive
income.
6.14 Business combination and goodwill
Business combination accounted for under purchase method.
Goodwill is initially recorded at cost, which equals the excess of the cost of business
combination over the fair value of the net assets acquired. Goodwill is carried at cost less
any accumulated impairment losses. Goodwill is tested for impairment annually and when
circumstances indicate that the carrying value may be impaired.
6.15 Receivables from/payable to Clearing House
Receivables from/payable to Clearing House comprises the net balance receivable/
payable in respect of securities and derivatives trades. These include amounts pledged
with the Derivatives Clearing House as security for derivatives trading.
108 Annual Report 2011 Thanachart Bank Public Company Limited
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6.16 Securities purchased under resale agreements/securities sold under repurchasedagreements
The Bank and its subsidiaries enter into agreements with private entities to purchase/sell
securities whereby there is an agreement to resell/repurchase the securities at certain
dates and at fixed price. Amounts paid for the securities purchased are presented as
assets under the caption of interbank and money market items or loans, depending on the
counter party, and the underlying securities are treated as collateral to such receivables.
The securities sold under repurchase agreement at the amounts received are presented
as liabilities under the caption of interbank and money market items and the underlying
securities are treated as collateral.
6.17 Premium due and uncollected and allowance for doubtful accounts
Premium due and uncollected is carried at its net realisable value. Subsidiary companies
provide an allowance for doubtful accounts based on the estimated loss that may be
incurred in the collection of the premium due, on the basis of collection experience and a
review of current status of the premium due as at the financial reporting date.
6.18 Reinsurance assets and liabilities
Reinsurance assets represent balances due from reinsurance companies, deposits placed
for reinsurance and insurance reserve to recover from reinsurers. Insurance reserve to
recover from reinsurers are estimated in a manner consistent with the outstanding claims
provision or settled claims associated with the reinsurer’s policies, and are in accordance
with the related reinsurance contracts.
Reinsurance liabilities represent balances due to reinsurance companies and deposits for
reinsurance held by the subsidiaries. The amounts payable on reinsurance are estimated
in a manner consistent with the related reinsurance contracts.
Annual Report 2011 Thanachart Bank Public Company Limited 109
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6.19 Unearned premium/life insurance premium reserve
Non-life insurance contract
The subsidiaries set up gross unearned premium reserve in accordance with the
followings:
Marine and transportation (cargo) - Net premium written for the last
ninety days
Traveling accident with coverage of not more
than 6 months
- Net premium written for the last
thirty days
Others - Monthly average basis
(the one-twenty fourth basis)
In 2011, the Office of the Insurance Commission (“OIC”) has required that insurers
allocate an additional gross unexpired risk reserve in an amount not less than the
difference between gross unexpired risk reserve and unearned premium reserve, in cases
where gross unexpired risk reserve is higher than unearned premium reserve. Gross
unexpired risk reserve is calculated based on an actuarial method using a best estimate of
expected claims over the remainder of the insured period, based on historical data.
Life insurance contract
Life assurance policy reserve represents the accumulated total liabilities for estimated
future claims under all policies in force as at the financial statement date.
Subsidiaries determine life assurance policy reserve under long-term policies by using the
higher of the net level premium valuation method (NPV) and the gross premium valuation
method (GPV).
Life assurance policy reserve under NPV method is a type of actuarial method with the
main assumptions used relating to mortality rate, morbidity rate, longevity and discount
rates.
Calculation of life assurance policy reserve under GPV method is another type of actuarial
method with main assumptions used relating to lapse rate or surrender rate, selling and
administrative expenses, mortality and morbidity rate, discount rates and non-guaranteed
dividend rate. This calculation method is in compliance with the bases stipulated in the
OIC’s notification regarding valuation of assets and liabilities of life insurance company
(2011).
110 Annual Report 2011 Thanachart Bank Public Company Limited
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6.20 Loss reserve and outstanding claims/Benefits payment to life policy
Non-life insurance contract
Outstanding claims are recorded at the actual amount to be paid. Loss reserve is recorded
upon the receipt of the claims advice from the insured based on the number of claims
notified by the insured and estimates made by a subsidiary’s management. The estimated
value of losses is limited to not more than the sum insured of the related insurance
policies.
In addition, in 2011, the OIC changed the method to be used for setting additional reserve
for incurred but not reported (IBNR) claims. The reserve is calculated using an
international standard actuarial method, based on the best estimated of claims expected
to be paid in the future for losses occurring before or as at the financial statement date,
including both reported and unreported claims, net of loss reserve already recorded
(Formerly, the subsidiary set up additional provision for IBNR at the higher of the reserve
calculated using actuarial method minus the recorded amount or outstanding claims, and
2.5 percent of total net premiums written in the previous twelve months).
Life insurance contract
Benefits paid under life policies are provided for upon receipt of the claims advices from
the insured or in accordance with the conditions of the policy.
6.21 Long-term leases
Leases that transfer substantially all the risks and rewards of ownership to the Bank and
its subsidiaries are classified as financial leases. Financial leases are capitalised at the
lower of the fair value of the leased assets and the present value of the minimum lease
payments. The outstanding rental obligations, net of finance charges, are included in other
payables, while the interest element is charged to profit or loss in the statement of
comprehensive income over the lease period. Assets acquired under finance leases are
depreciated over their estimated useful lives.
Lease not transferring a significant portion of the risks and rewards of ownership to the
lessee are classified as operating leases. Advance payments made under operating
leases is recorded as leasehold rights, and then amortise as expenses over the term of
the leases on the straight - line basis. Moreover, payments made under operating leases
are recognised as expenses over the term of the leases on the straight-line basis.
Annual Report 2011 Thanachart Bank Public Company Limited 111
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6.22 Sales of commercial paper
The Bank and its subsidiary company which operates in banking business recorded
commercial paper with an aval by the Bank, or without an aval or acceptance which is sold
with recourse, as a liability under the caption of “Liabilities under commercial paper sold”.
Commercial paper sold at a discount with recourse, which is avaled by or has acceptance
from a commercial bank or other finance company, is recorded by crediting the notes
receivable account, and the obligations disclosed as part of “Contingent liabilities”.
6.23 Financial derivatives
The Bank and its subsidiaries have entered into off-balance transactions involving
derivative financial instruments in order to manage risk of the Bank and its subsidiaries
and in response to customer needs.
Forward foreign currency contracts which originated for trading purposes are recorded as
off-balance items. Gains or losses arising from changes in the fair value of the contracts
are recognised as part of profit or loss in the statement of comprehensive income.
Forward foreign currency contracts, interest rate swap contracts and cross currency and
interest rate swap contracts which were not originated for trading purposes are recorded
as off-balance items, and presented on an accrual basis. Foreign currency components
are translated at the year-end exchange rate, in the same manner as the hedged items,
with unrealised gains or losses on translation recognised as part of profit or loss in the
statement of comprehensive income. Interest rate components are presented on an
accrual basis, in the same manner as the hedged assets or liabilities, with gains or losses
recorded to interest income and interest expense over the terms of the contracts.
Receivables and payables under exchange contracts are presented at the net amount in
the statement of financial position.
The subsidiaries record obligations in respect of futures contracts made for trading
purposes as off-balance items. Gains or losses from changes in the fair value of financial
derivatives contracts are recorded in profit of loss. Fair value is determined based on the
daily settlement price quoted by Thailand Futures Exchanges Public Company Limited. If
the fair value of financial derivatives cannot be determined with reference to market price,
it is determined by a technical and valuation model, in which the variables used, will be
derived from the observable markets.
112 Annual Report 2011 Thanachart Bank Public Company Limited
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6.24 Related party transactions
Related parties comprise enterprises and individuals that control, or are controlled by, the
Bank and its subsidiaries, whether directly or indirectly, or which are under common
control with the Bank and its subsidiaries.
They also include associated companies and individuals which directly or indirectly own a
voting interest in the Bank and its subsidiaries that give them significant influence over the
Bank and its subsidiaries, key management personnel, directors and officers with authority
in the planning and direction of the Bank’s and its subsidiaries’ operations.
6.25 Impairment of assets
The Bank and its subsidiaries assess at each financial reporting date whether there is an
indication that an asset may be impaired. If any indication exists, or when annual
impairment testing for an asset is required, the Bank and its subsidiaries realise loss on
impairment when the asset’s recoverable amount is less than the book value. An asset’s
recoverable amount is the higher of an asset’s fair value less costs to sell and its value in
use. Fair value less costs to sell reflects the amount that the Bank and its subsidiaries
could obtain at the financial reporting date from the disposal of the asset in an arm’s
length transaction between knowledgeable, willing parties, after deducting the costs of
disposal. In assessing value in use, the estimated future cash flows are discounted to their
present value using a pre-tax discount rate that reflects current market assessments of the
time value of money and the risks specific to the asset.
The Bank and its subsidiaries recognise impairment losses as expenses in part of profit or
loss in the statement of comprehensive income.
In assessing impairment of asset other than goodwill, if there is any indication that
previously recognised impairment losses may no longer exist or may have decreased, the
Bank and its subsidiaries estimate the asset’s recoverable amount. A previously
recognised impairment loss for assets other than goodwill is reversed only if there has
been a change in the assumptions used to determine the asset’s recoverable amount
since the last impairment loss was recognised. The increased carrying amount of the
asset attributable to a reversal of an impairment loss shall not exceed the carrying amount
that would have been determined had no impairment loss been recognised for the asset in
prior years. Such reversal is recognised in part of profit or loss in the statement of
comprehensive income.
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6.26 Employee benefits
a) Short-term employee benefits
The Bank and its subsidiaries recognised short-term employee benefits, such as
salary, wages, bonuses, contributions to the social security fund, and vacation, as
expenses when incurred.
b) Post-employment benefits (Defined contribution plans)
The Bank, its subsidiaries and its employees have jointly established a provident fund.
The fund is monthly contributed by employees and by the Bank and its subsidiaries.
The fund’s assets are held in a separate trust fund, and the Bank and its subsidiaries
contributions are recognised as expenses when incurred.
c) Post-employment benefits (Defined benefit plans)
The Bank and its subsidiaries have obligations in respect of the severance payments
it must make to employees upon retirement under labor law. The Bank and its
subsidiaries treat these severance payment obligations as a defined benefit plan.
The obligation under the defined benefit plan is determined by a professionally
qualified independent actuary, using the projected unit credit method.
Actuarial gains and losses arising from post employment benefits are recognized
immediately in profit or loss.
For the first-time adoption of TAS 19 Employee Benefits, the Bank and its subsidiaries
elected to recognise the transitional liability, which exceeds the liability that would
have been recognised at the same date under the previous accounting policy,
through an adjustment to the beginning balance of retained earnings in the current
year.
6.27 Foreign currencies
Foreign currency transactions are translated into Baht at the exchange rates ruling at the
transaction dates. Monetary assets and liabilities denominated in foreign currencies and
commitment outstanding on the financial reporting date have been translated into Baht at
the rates ruling at the financial reporting date.
Exchange gains and losses arising from trading or translation of foreign currencies are
included in determining income.
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6.28 Income tax
Income tax is provided in the accounts at the amount expected to be paid to the taxation
authorities, based on taxable profits determined in accordance with tax legislation.
6.29 Provisions
Provisions are recognised when the Bank and its subsidiaries have a present obligation as
a result of a past event, it is probable that an outflow of resources embodying economic
benefits will be required to settle the obligation, and a reliable estimate can be made of the
amount of the obligation.
7. Significant accounting judgments and estimates
The preparation of financial statements in conformity with generally accepted accounting
principles at times requires management to make subjective judgments and estimates
regarding matters that are inherently uncertain. These judgments and estimates affect
reported amounts and disclosures; and actual results could differ from these estimates.
Significant judgments and estimates are as follows:
7.1 Recognition and derecognition of assets and liabilities
In considering whether to recognise or to derecognise assets or liabilities, the
management is required to make judgment on whether significant risk and rewards of
those assets or liabilities have been transferred, based on their best knowledge of the
current events and arrangements.
7.2 Allowance for doubtful accounts for loans and allowance for impairment of investment in receivables
Allowance for doubtful accounts for loans and allowance for impairment of investment in
receivables are intended to adjust the value of loans for probable credit losses. The
management uses the BOT’s and SEC’s regulations regarding the provision of allowance
for doubtful accounts and judgments to estimate losses on outstanding loans when there
is any doubt about the borrower’s capability to repay the principal and/or the interest. The
allowances for loan losses are determined through a combination of specific reviews,
probability of default, value of collateral and current economic conditions.
Annual Report 2011 Thanachart Bank Public Company Limited 115
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7.3 Allowance for impairment of investments in securities
The Bank and its subsidiaries review an impairment of investments in securities when
indication of impairment exists. The determination of what is indication of impairment
requires the management’s judgment.
7.4 Fair value of financial instruments
In determining the fair value of financial instruments that are not actively traded and for
which quoted market prices are not readily available, the management exercised
judgment, using a variety of valuation techniques and models. The input to these models
is taken from observable markets, and includes consideration of liquidity, correlation and
longer-term volatility of financial instruments.
7.5 Allowance for impairment of property foreclosed
The Bank and its subsidiaries assess allowance for impairment of property foreclosed
when net realisable value falls below the book value. The management uses the BOT’s
regulation and judgment to estimate impairment losses, taking into consideration the latest
appraisal value, the type and the nature of the assets.
7.6 Land, premises and equipment/Depreciation
In determining depreciation of premises and equipment, the management is required to
make estimates of the useful lives and salvage values of the premises and equipment,
and to review estimate useful lives and salvage values when there are any changes.
In addition, the management is required to review impairment of land, premises and
equipment on a periodical basis and record impairment losses in the period when it is
determined that their recoverable amounts are lower than the carrying amounts. This
requires judgments regarding forecast of future revenues and expenses relating to the
assets subject to the review.
116 Annual Report 2011 Thanachart Bank Public Company Limited
35
7.7 Goodwill and intangible assets
The initial recognition and measurement of goodwill and intangible assets, and
subsequent impairment testing, require management to exercise judgment as to the
recoverable amount to be generated by the asset, using the discounted cash flows
method, and including the selection of a suitable discount rate in order to determine the
present value of that cash flow. The estimated cash flows may differ as a result of
competitive forces, or changes in revenue trends, cost structures, and the discount rate,
industry circumstances or related market conditions. In addition, the management
estimates the useful life of those assets which have finite useful lives and revises such
useful lives if there are any changes.
7.8 Finance lease/Operating lease
When entering into lease agreement, the management is required to access and consider
the scope of significant risk and rewards of ownership of the leased assets. Leases that
transfer substantially all the risks and rewards of ownership to the leasee are classified as
financial leases. In the other hand, leases not transferring a significant portion of the risks
and rewards of ownership to the leasee are classified as operating leases.
7.9 Loss sharing from transfer of non-performing loans to TAMC
In estimating losses arising from the transfer of non-performing loans to the Thai Asset
Management Corporation (“TAMC”), the Bank uses the latest information received from
TAMC and projections of the amounts expected to be received from the debtors or from
debtors’ collateral value. The management uses judgment in determining the assumptions
as to the percentage on the amount expected to be recovered from the debt restructuring
agreement, or as to collateral value. The management considers these assumptions to be
appropriate given the current available information and current situation
7.10 Unearned premium/Life insurance premium reserve
Unexpired risk reserve is calculated under an actuarial method, which reflects the best
estimate of losses expected to be incurred over the remaining period of the insurance.
Estimating these reserves requires management to exercise judgment, with reference
made to historical data and current best estimates at that time.
Annual Report 2011 Thanachart Bank Public Company Limited 117
36
Life assurance policy reserve is calculated under an actuarial method, and adjusted
upwards to reflect risk factors and deviations. The main assumptions used relate to policy
termination or surrender rates, selling and administrative expenses, mortality rate,
morbidity rate, longevity, expenses and discount rates. Estimating these reserves requires
management to exercise judgments with reference made to historical data and current
best estimates at that time.
7.11 Loss reserve and outstanding claims
At each reporting date, subsidiaries estimate loss reserves and outstanding claims in two
parts; loss incurred for which the claims advice has been received from the insured, and
loss incurred but not yet reported (IBNR). The IBNR reserve is calculating by using an
international standard actuarial method. The main assumptions underlying these
techniques relate to historical claims experience, including development of estimates of
paid and incurred losses, average costs per claim, and claim numbers. Estimating these
reserves requires management to exercise judgment reflecting the best estimates
available at that time.
7.12 Post-employment benefits under defined benefit plans
Obligations under the defined benefit plan are determined by using actuarial technique.
Such determination is made based on various assumptions, including discount rate, future
salary increase rate, staff turnover rate, mortality rate, and inflation rates, based on their
best knowledge of current situation.
7.13 Litigation and contingent liabilities
The Bank and its subsidiaries have contingent liabilities as a result of litigation and
contingent liabilities as a result of transfer of business and transfer of non-performing
assets. The management has used judgment to assess of the results of the litigation, and
in case where they believe that there will be no losses, they will provide no provisions and
contingent liabilities as at the end of reporting period.
118 Annual Report 2011 Thanachart Bank Public Company Limited
37
8. Interbank and money market items (assets)
(Unit: Million Baht)
Consolidated financial statements
2011 2010
At call Term Total At call Term Total
Domestic
Bank of Thailand and Financial
Institutions Development Fund 5,492 2,000 7,492 4,821 26,000 30,821
Commercial banks 549 8,518 9,067 854 21,022 21,876
Specialised financial institutions 39 8,238 8,277 42 14,545 14,587
Other financial institutions 197 22,618 22,815 150 16,079 16,229
Total 6,277 41,374 47,651 5,867 77,646 83,513
Add: Accrued interest receivables - 11 11 - 34 34
Less: Allowance for doubtful accounts - (193) (193) - (162) (162)
Total domestic items 6,277 41,192 47,469 5,867 77,518 83,385
Foreign
US Dollar 1,449 13,470 14,919 776 169 945
Euro 119 - 119 119 - 119
Others 523 103 626 496 114 610
Total 2,091 13,573 15,664 1,391 283 1,674
Add: Accrued interest receivables - 68 68 - 1 1
Total foreign items 2,091 13,641 15,732 1,391 284 1,675
Total 8,368 54,833 63,201 7,258 77,802 85,060
Annual Report 2011 Thanachart Bank Public Company Limited 119
38
(Unit: Million Baht)
Separate financial statements
2011 2010
At call Term Total At call Term Total
Domestic
Bank of Thailand and Financial
Institutions Development Fund 5,492 2,000 7,492 3,178 12,000 15,178
Commercial banks 393 8,340 8,733 109 10,820 10,929
Specialised financial institutions 27 8,200 8,227 30 - 30
Other financial institutions 196 22,769 22,965 115 1,570 1,685
Total 6,108 41,309 47,417 3,432 24,390 27,822
Add: Accrued interest receivables - 9 9 - 6 6
Less: Allowance for doubtful accounts - (195) (195) - - -
Total domestic items 6,108 41,123 47,231 3,432 24,396 27,828
Foreign
US Dollar 1,449 13,470 14,919 347 70 417
Euro 119 - 119 7 - 7
Others 523 103 626 61 114 175
Total 2,091 13,573 15,664 415 184 599
Add: Accrued interest receivables - 68 68 - 1 1
Total foreign items 2,091 13,641 15,732 415 185 600
Total 8,199 54,764 62,963 3,847 24,581 28,428
As at 31 December 2011, the Bank had loan to a subsidiary company of Baht 150 million
in the separate financial statements.
120 Annual Report 2011 Thanachart Bank Public Company Limited
39
9. Derivatives
As at 31 December 2011 and 2010, the notional amount and the fair value of trading
derivatives, and the adjustments made on an accrual basis for banking book derivatives
were classified by type of risk as follow.
(Unit: Million Baht)
Consolidated financial statements
2011 2010
Fair value/Adjustment on
an accrual basis Notional
Fair value/Adjustment on
an accrual basis Notional
Assets Liabilities amount* Assets Liabilities amount*
Type of risk
Foreign exchange rate
Derivatives for trading 858 820 63,491 509 295 53,139
Derivatives for banking book - 1,706 31,788 3 5 3,488
Interest rate
Derivatives for trading 64 60 5,957 72 67 5,657
Derivatives for banking book - - 3,967 - - 13,681
Foreign exchange rate and
interest rate
Derivatives for trading 29 9 2,212 959 235 8,533
Derivatives for banking book 585 291 15,445 1,574 339 21,529
Others
Derivatives for trading - - 641 - - -
Total 1,536 2,886 123,501 3,117 941 106,027
* Disclosed only in case that the Bank and its subsidiaries have an obligation to pay
Annual Report 2011 Thanachart Bank Public Company Limited 121
40
(Unit: Million Baht)
Separate financial statements
2011 2010
Fair value/Adjustment
on an accrual basis
Notional Fair value/Adjustment
on an accrual basis
Notional
Assets Liabilities amount* Assets Liabilities amount*
Type of risk
Foreign exchange rate
Derivatives for trading 854 811 63,491 109 90 20,853
Derivatives for banking book - 1,706 31,788 3 5 3,488
Interest rate
Derivatives for trading 64 60 5,957 - - -
Derivatives for banking book - - 3,667 - - 12,532
Foreign exchange rate and
interest rate
Derivatives for trading 29 9 2,212 - - -
Derivatives for banking book 585 291 15,445 816 339 13,479
Total 1,532 2,877 122,560 928 434 50,352
* Disclosed only in case that the Bank and its subsidiaries have an obligation to pay
Derivatives for banking book are obligations under contracts which are not held for trading,
and are measured on an accrual basis. Gain (loss) on exchange at the end of the year is
presented under derivatives assets/derivatives liabilities. Accrued interest receivables
(payables) per the contracts are recorded as receivables and payables in other
assets/liabilities.
Below are the proportions of trading derivatives transactions classified by counterparty,
determined based on the notional amount, as at 31 December 2011 and 2010.
Consolidated financial statements Separate financial statements
Counterparties 2011 2010 2011 2010
Percent Percent Percent Percent
Financial institutions 80.01 73.91 79.83 86.29
Companies within Thanachart Group - - 0.89 -
Third parties 19.99 26.09 19.28 13.71
Total 100.00 100.00 100.00 100.00
122 Annual Report 2011 Thanachart Bank Public Company Limited
41
10. Investments
10.1 Classified by type of investment
(Unit: Million Baht)
Consolidated financial statements Separate financial statements
2011 2010 2011 2010
Cost/
Amortised
cost Fair value
Cost/
Amortised
cost Fair value
Cost/
Amortised
cost Fair value
Cost/
Amortised
cost Fair value
Trading securities
Government and state enterprises
securities 10,508 10,479 44 45 3,174 3,179 44 45
Private debt securities 4,770 4,758 21 21 1,661 1,660 21 21
Foreign debt securities 642 637 3,015 3,023 642 637 - -
Domestic marketable equity
securities 34 38 74 80 - - - -
15,954 15,912 3,154 3,169 5,477 5,476 65 66
Add: Allowance for change in value (42) 15 (1) 1
Net 15,912 3,169 5,476 66
Available-for-sale securities
Government and state enterprises
securities 40,877 41,003 52,685 52,604 38,431 38,554 15,764 15,708
Private debt securities 18,389 18,533 9,898 10,064 13,529 13,600 2,945 2,981
Foreign debt securities 25,516 25,425 12,704 12,920 25,516 25,425 6,128 6,342
Domestic marketable equity
securities 7,483 7,983 7,752 8,530 6,099 6,241 476 546
92,265 92,944 83,039 84,118 83,575 83,820 25,313 25,577
Add: Allowance for change in value 683 1,083 245 264
Less: Allowance for impairment (4) (4) - -
Net 92,944 84,118 83,820 25,577
Held-to-maturity debt securities
Government and state enterprises
securities 26,876 27,771 36,138 36,849 17,642 18,096 18,986 19,426
Private debt securities 6,592 6,689 5,874 6,070 1,600 1,647 - -
Foreign debt securities 1,500 1,488 5,705 5,720 1,500 1,488 4,800 4,819
Investment in receivables purchased 12 12 29 29 12 12 - -
34,980 35,960 47,746 48,668 20,754 21,243 23,786 24,245
Other investment
Investment in property fund 671 845 671 234
Domestic non-marketable
equity securities 3,794 4,064 3,776 97
Foreign non-marketable equity
securities 84 84 84 3
4,549 4,993 4,531 334
Less: Allowance for impairment (40) (4) (40) (4)
Net 4,509 4,989 4,491 330
Total investment - net 148,345 140,022 114,541 49,759
Annual Report 2011 Thanachart Bank Public Company Limited 123
42
10.2 Classified by due date of debt securities
(Unit: Million Baht)
Consolidated financial statements
2011 2010
Due within Due within
Less than
1 year 1 - 5 years
Over
5 years Total
Less than
1 year 1 - 5 years
Over
5 years Total
Available-for-sale securities
Government and state enterprises
securities 20,031 20,828 18 40,877 31,162 21,492 31 52,685
Private debt securities 1,557 14,836 1,996 18,389 4,175 5,600 123 9,898
Foreign debt securities 19,021 6,495 - 25,516 904 11,800 - 12,704
Total 40,609 42,159 2,014 84,782 36,241 38,892 154 75,287
Add: Allowance for change in value 35 103 41 179 15 278 8 301
Net 40,644 42,262 2,055 84,961 36,256 39,170 162 75,588
Held-to-maturity debt securities
Government and state enterprises
securities 5,157 15,659 6,060 26,876 3,650 11,032 21,456 36,138
Private debt securities 3,990 2,288 314 6,592 1,346 3,063 1,465 5,874
Foreign debt securities 1,500 - - 1,500 4,800 905 - 5,705
Investment in receivables 8 4 - 12 18 11 - 29
Total 10,655 17,951 6,374 34,980 9,814 15,011 22,921 47,746
Total debt securities 51,299 60,213 8,429 119,941 46,070 54,181 23,083 123,334
(Unit: Million Baht)
Separate financial statements
2011 2010
Due within Due within
Less than
1 year 1 - 5 years
Over
5 years Total
Less than
1 year 1 - 5 years
Over
5 years Total
Available-for-sale securities
Government and state enterprises
securities 18,399 20,014 18 38,431 10,302 5,462 - 15,764
Private debt securities 975 12,554 - 13,529 2,076 781 88 2,945
Foreign debt securities 19,021 6,495 - 25,516 602 5,526 - 6,128
Total 38,395 39,063 18 77,476 12,980 11,769 88 24,837
Add: Allowance for change in value 32 71 - 103 10 179 5 194
Net 38,427 39,134 18 77,579 12,990 11,948 93 25,031
Held-to-maturity debt securities
Government and state enterprises
securities
4,938 12,704 - 17,642 3,201 7,316 8,469 18,986
Private debt securities 800 650 150 1,600 - - - -
Foreign debt securities 1,500 - - 1,500 4,800 - - 4,800
Investment in receivables 8 4 - 12 - - - -
Total 7,246 13,358 150 20,754 8,001 7,316 8,469 23,786
Total debt securities 45,673 52,492 168 98,333 20,991 19,264 8,562 48,817
124 Annual Report 2011 Thanachart Bank Public Company Limited
43
10.3 As at 31 December 2011, the Bank and its subsidiaries have a revaluation deficit arising
from transfers of investments in debt securities, of which the current balances of Baht 3
million in the consolidated financial statements and Baht 34 million in the separate
financial statements. These are presented in equity caption. (2010: Revaluation deficit of
Baht 71 million in the consolidated financial statements, and revaluation deficit of Baht 94
million in the separate financial statements).
10.4 As at 31 December 2011, investments in held-to-maturity debt securities included non-
transferable promissory notes amounting to Baht 4 million, which were received as a result
of the transfer of non-performing loans to Thai Asset Management Corporation (“TAMC”)
(2010: Baht 296 million). However, the agreed transfer price received in the form of
promissory notes could be revised up or down after TAMC reviews the price, assesses the
collateral or adjusts the price.
As at 31 December 2011, the Bank is still unable to assess the exact amount of such
losses since TAMC has been dissolved and is in the process of liquidation. However, the
Bank estimated the contingent losses arising from the management of non-performing
assets at approximately Baht 89 million (2010: Baht 89 million). Such amount has been
shown as a part of provisions for liabilities.
In addition, the Bank also shares joint responsibility with TAMC for future profits or losses
arising from TAMC’s management of the non-performing assets as mentioned in Note
46.2 to the financial statements.
10.5 Investments in securities in which the Bank and its subsidiaries hold not less than 10 percent of the equity of the investee
As at 31 December 2011 and 2010, investments in companies which the Bank and its
subsidiaries hold not less than 10 percent of the equity of the investee, but which are not
treated as subsidiaries or associated companies, separated by industry as follow:
(Unit: Million Baht)
Consolidated financial statements Separate financial statements
2011 2010 2011 2010
Banking and finance sector 761 1,307 600 234
Annual Report 2011 Thanachart Bank Public Company Limited 125
44
The investments mentioned above include investments in unit trusts in which the Bank
and its subsidiaries hold not less than 20 percent of the units issued. The Bank and its
subsidiaries do not treat these investments as investments in subsidiaries or associates
because the Bank and its subsidiaries do not have control or influence over the financial
and operating policies of these funds, which are independently managed by fund
managers in accordance with the details of each fund project, and are under the
supervision of the SEC. The Bank and its subsidiaries therefore record them as available-
for-sale or other investments, based on their investment objectives.
Consolidated financial statements Separate financial statements
2011 2010 2011 2010
Net book Percentage Net book Percentage Net book Percentage Net book Percentage
Securities value of holding value of holding value of holding value of holding
Million
Baht
Percent Million
Baht
Percent Million
Baht
Percent Million
Baht
Percent
The Thai Business Fund 3 144 60.00 355 60.00 144 60.00 158 26.67
Sub Thawee Property Fund 36 56.00 76 56.00 36 56.00 76 56.00
Business Strategic Fund 278 67.33 278 67.33 278 67.33 - -
Thanachart Long Term Fixed
Income Fund 62 27.79 60 27.79 - - - -
Thanachart Fixed Income FIF 51 50 22.63 50 22.63 - - - -
11. Investments in subsidiary and associated companies
11.1 Separate financial statements
As at 31 December 2011 and 2010, investments in subsidiary companies and an
associated company in the separate financial statements stated under the cost method,
consist of investment in ordinary shares of the following companies:
126 Annual Report 2011 Thanachart Bank Public Company Limited
45
(Unit: Million Baht)
Separate financial statements
Value of investment
Paid-up Percentage under the Dividend income
Company’s name Nature of business share capital of holding (Percent) cost method for the years
2011 2010 2011 2010 2011 2010 2011 2010
Subsidiary companies
SCIB Plc. (Formerly known as “Siam
City Bank Plc.”) Dissolution 21,128 21,128 99.98 99.95 32,542 68,835 260 -
TS Asset Management Co., Ltd. Asset management 2,000 - 100 - 2,000 - - -
Thanachart Securities Plc. Securities business 1,500 1,500 100 100 1,858 1,858 345 210
Thanachart Life Assurance Co., Ltd. Life - insurance 500 500 100 100 936 936 250 -
Thanachart Insurance Co., Ltd. Non-life insurance 740 740 100 100 867 867 300 -
Thanachart Group Leasing Co., Ltd. Hire purchase 360 360 100 100 400 400 203 148
Ratchthani Leasing Plc. Hire-purchase and
leasing business 1,342 - 65.18 - 1,201 - - -
Thanachart Broker Co., Ltd. Non-life insurance
broker 100 100 100 100 104 104 65 65
Thanachart Fund Management Co., Ltd. Fund management 100 100 75 75 97 97 97 83
Thanachart Legal and Appraisal
Co., Ltd. Dissolution 10 10 100 100 13 13 - -
Thanachart Management and Services
Co., Ltd. Services 6 6 100 100 6 6 - 12
Thanachart Training and Development
Co., Ltd. Training services 5 5 100 100 5 5 12 12
SCIB Service Co., Ltd. Services 10 - 100 - 5 - - -
Siam City Life Assurance Co., Ltd. Life - insurance 700 - 100 - 761 - - -
Total investments in subsidiary
companies 40,795 73,121 1,532 530
Associated company
Siam Samsung Life Insurance Co., Ltd. Life - insurance 500 - 25 - 47 - - -
Total investments in an associated
company 47 - - -
Total investments in subsidiary and
associated companies - net 40,842 73,121 1,532 530
After the entire business transfer from SCIB to Thanachart Bank, the Bank recognised
intangible assets arising from the business combination of Baht 3,613 million and goodwill
arising from the business combination of Baht 15,740 million in the separate financial
statements by deducting them from the cost of investment in SCIB. This presentation is to
reflect the business combination transactions in the separate financial statements. In
addition, the Bank received a partial of capital return on investment in the form of dividend
income.
The Bank additional invested in TS Asset Management Co., Ltd., which was established in
March 2011, with a shareholding of 100 percent.
Annual Report 2011 Thanachart Bank Public Company Limited 127
46
In October 2011, the Bank received the transfer of 437,250,000 shares in Ratchthani
Leasing Plc. from SCIB, for a total of Baht 536 million. The Bank also purchased
437,486,500 additional shares from THANI at Baht 1.52 per share or for a total of Baht 665
million. As a result, the Bank’s shareholding increased from 48.35 percent to 65.18 percent
and the status of Ratchthani Leasing Plc. was changed from an associated company to a
subsidiary company.
11.2 Consolidated financial statements
As at 31 December 2011 and 2010, investments in associated companies in the
consolidated financial statements consist of investments in ordinary shares of the following
companies which operate in Thailand:
(Unit: Million Baht)
Share of income
(loss) for the
Paid-up share Percentage Value of investment Dividend income periods ended
capital of holding Cost method Equity method for the years 31 December
Company’s name 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010
MBK Plc. (operating in
property rental, hotel and
services business)
1,886 1,886 9.90 9.90 984 984 1,389 1,530 93 89 132 160
Siam Samsung Life
Insurance Co., Ltd.
(operating in life
insurance business)
500 500 25.00 25.00 104 104 34 81 - - (46) (24)
Siam City Insurance Co.,
Ltd. (operating in non-life
insurance business)
- 40 - 45.50 - 92 - 109 10 - (8) 17
Ratchthani Leasing Plc.
(operating in hire-
purchase and leasing
business)
- 823 - 48.35 - 403 - 457 12 - 78 54
Total investments in associated companies 1,088 1,583 1,423 2,177 115 89 156 207
The Bank and its subsidiaries classified investment in MBK Plc. as investments in an
associated company, since the Parent company, the Bank and its subsidiaries had
significant influence in that company.
In August 2011, SCIB disposed of all of investments in ordinary shares of Siam City
Insurance Co., Ltd.
128 Annual Report 2011 Thanachart Bank Public Company Limited
47
11.3 Cash flow information of an asset management company that is a subsidiary
Cash flow information of TS Asset Management Company Limited, a subsidiary, for the
year ended 31 December 2011 is as follows:
(Unit: Million Baht)
Cash flows from operating activities
Profit before income tax 321
Adjustments to reconcile profit before income tax
to net cash provided by (paid for) operating activities
Reversal of bad debt and doubtful account (221)
Increase in allowance for impairment of property foreclosed 12
Interest income - net (188)
Cash received from interest income 232
Cash paid for interest expense (83)
Income from operating activities before changes in operating assets and liabilities 73
Increase in operating assets
Loans (8,010)
Property foreclosed (3,093)
Other assets (47)
Increase in operating liabilities
Interbank and money market items 9,822
Other liabilities 123
Net cash flows used in operating activities (1,132)
Cash flows from investing activities
Cash received from interest income from investments 4
Net cash flows from investing activities 4
Cash flows from financing activities
Paid-up share capital 2,000
Net cash flows from financing activities 2,000
Net increase in cash and cash equivalents 872
Cash and cash equivalents at beginning of the year -
Cash and cash equivalents at end of the year 872
Annual Report 2011 Thanachart Bank Public Company Limited 129
48
11.4 Summarised financial information of associated companies
a) Summarised financial information of MBK Plc. as at 30 September 2011 and 2010
and for the years then ended are as follows:
(Unit: Million Baht)
Total income Net income
Paid-up share capital Total assets Total liabilities for the periods ended for the periods ended
30 September 30 September 30 September 30 September 30 September
2011 2010 2011 2010 2011 2010 2011 2010 2011 2010
1,886 1,886 27,409 28,752 13,916 14,006 8,582 8,548 1,338 2,477
The share of income of MBK Plc. recognised in the current year is determined based
on financial statements of MBK Plc. prepared for a different period, as a result of
limitations on the availability of information. The financial information used was
based on the statements of financial position as at 30 September 2011 and 2010
and the statements of profit or loss for the years then ended as prepared by the
Bank’s management, with reference to the financial statements as reviewed by its
auditor and adjusted for the effect of the differences in accounting policies. The
Bank’s management believes that the net income for the year ended 30 September
2011 is not material different from that income for the year ended 31 December
2011.
b) Summarised financial information of Siam Samsung Life Insurance Co., Ltd., Siam
City Insurance Co., Ltd. and Ratchthani Leasing Plc. as at 31 December 2011 and
2010 and for the periods then ended are as follows:
(Unit: Million Baht)
Paid-up share Total income Net income (loss)
Company’s name capital Total assets Total liabilities for the years for the years
2011 2010 2011 2010 2011 2010 2011 2010 2011 2010
Siam Samsung Life Insurance
Co., Ltd.
500 500 1,989 2,073 1,854 1,766 1,170 911 (184) (98)
Siam City Insurance Co., Ltd. - 40 - 932 - 689 414 632 (17) 37
Ratchthani Leasing Plc. - 823 - 9,549 - 8,270 913 695 160 112
Income, profit or loss and shares of profit (loss) of investments in associated
companies were determined based on the financial statements of those companies
for the period starting from the date that the Bank and/or the subsidiaries invested in
such companies, in proportion to the shareholding interest, and until the Bank
disposed of such investment or its status was changed to a subsidiary company.
130 Annual Report 2011 Thanachart Bank Public Company Limited
49
11.5 As at 31 December 2011 and 2010, the fair value of investments in associated companies
which are listed in the Stock Exchange of Thailand is as follows
(Unit: Million Baht)
Company’s name 2011 2010
MBK Plc. 1,649 1,887
Ratchthani Leasing Plc. - 616
12. Loans to customers and accrued interest receivables
12.1 Classified by loan type
(Unit: Million Baht)
Consolidated Separate
financial statements financial statements
2011 2010 2011 2010
Loans to customers
Overdrafts 23,358 24,562 23,358 3,243
Loans 271,129 275,232 250,290 58,324
Notes receivable 49,984 62,171 68,048 24,985
Hire purchase receivables 325,976 271,851 310,595 269,834
Financial lease receivables 2,104 2,392 1,926 2,341
Others 234 429 234 -
Less: Deferred revenues (39,801) (32,469) (37,739) (32,178)
Total loans to customers net of deferred
revenues 632,984 604,168 616,712 326,549
Add: Accrued interest receivables 963 924 925 272
Total loans to customers net of deferred
revenues and accrued interest
receivables 633,947 605,092 617,637 326,821
Less: Allowance for doubtful accounts
- BOT’s minimum requirement
provision (25,197) (23,917) (12,102) (7,056)
- Excess provision (396) (534) (383) (375)
Less: Revaluation allowance for debt
restructuring (382) (460) (382) (38)
Loans to customer and accrued interest
receivables - net 607,972 580,181 604,770 319,352
Securities business receivables
Credit balances receivables 1,926 1,341 - -
Other receivables 310 1,342 - -
Total securities business receivables 2,236 2,683 - -
Less: Allowance for doubtful accounts (305) (1,338) - -
Securities business receivables - net 1,931 1,345 - -
Loans to customer and accrued interest
receivables - net 609,903 581,526 604,770 319,352
Annual Report 2011 Thanachart Bank Public Company Limited 131
50
12.2 Classified by currency and country
(Unit: Million Baht)
Consolidated financial statements
2011 2010
Domestic Foreign Total Domestic Foreign Total
Baht 624,935 450 625,385 590,382 4,794 595,176
US Dollar 5,740 3,386 9,126 7,468 3,835 11,303
Other currencies 284 425 709 372 - 372
Total* 630,959 4,261 635,220 598,222 8,629 606,851
* Total loans net of deferred revenues
(Unit: Million Baht)
Separate financial statements
2011 2010
Domestic Foreign Total Domestic Foreign Total
Baht 602,308 450 602,758 322,533 380 322,913
US Dollar 7,282 5,853 13,135 2,803 800 3,603
Other currencies 395 424 819 33 - 33
Total* 609,985 6,727 616,712 325,369 1,180 326,549
* Total loans net of deferred revenues
132 Annual Report 2011 Thanachart Bank Public Company Limited
51
12.3 Classified by type of business and loan classification
(Unit: Million Baht)
Consolidated financial statements
2011
The Bank and a subsidiary company which are financial institutions
Normal
Special
mention
Sub-
standard Doubtful
Doubtful
of loss Total
Subsidiary
companies Consolidated
Agricultural and mining 10,452 27 95 104 148 10,826 4 10,830
Manufacturing and commerce 60,956 4,364 3,363 6,741 6,484 81,908 59 81,967
Real estate and construction 42,730 1,463 577 736 2,454 47,960 12 47,972
Public utilities and services 49,553 3,317 921 1,529 3,060 58,380 61 58,441
Personal consuming
Housing loans 68,632 1,503 552 1,221 1,728 73,636 - 73,636
Securities business - - - - - - 2,236 2,236
Hire purchase 242,023 27,443 664 648 2,241 273,019 13,342 286,361
Others 48,357 2,076 673 763 2,095 53,964 116 54,080
Others 18,927 177 178 14 382 19,678 19 19,697
Total* 541,630 40,370 7,023 11,756 18,592 619,371 15,849 635,220
* Total loans net of deferred revenues
(Unit: Million Baht)
Consolidated financial statements
2010
The Bank and a subsidiary company which are financial institutions
Normal
Special
mention
Sub-
standard Doubtful
Doubtful
of loss Total
Subsidiary
companies Consolidated
Agricultural and mining 8,124 2,432 194 71 136 10,957 - 10,957
Manufacturing and commerce 73,796 8,663 1,697 8,459 4,768 97,383 1 97,384
Real estate and construction 45,690 1,958 1,549 644 2,552 52,393 13 52,406
Public utilities and services 55,570 4,490 1,210 1,659 3,112 66,041 6 66,047
Personal consuming
Housing loans 72,939 1,890 581 813 1,413 77,636 - 77,636
Securities business - - - - - - 2,683 2,683
Hire purchase 218,478 15,416 782 606 2,589 237,871 1,740 239,611
Others 15,474 842 428 169 909 17,822 54 17,876
Others 40,270 778 204 192 783 42,227 24 42,251
Total* 530,341 36,469 6,645 12,613 16,262 602,330 4,521 606,851
* Total loans net of deferred revenues
Annual Report 2011 Thanachart Bank Public Company Limited 133
52
(Unit: Million Baht)
Separate financial statements
2011
Special Doubtful
Normal mention Substandard Doubtful of loss Total
Agricultural and mining 10,452 27 69 15 25 10,588
Manufacturing and commerce 60,956 4,364 583 672 2,725 69,300
Real estate and construction 42,730 1,463 295 333 1,323 46,144
Public utilities and services 48,218 3,317 545 1,255 1,773 55,108
Personal consuming
Housing loans 68,627 1,503 493 738 692 72,053
Hire purchase 242,023 27,443 664 648 2,241 273,019
Others 48,356 2,076 654 616 1,596 53,298
Others 36,991 177 5 2 27 37,202
Total* 558,353 40,370 3,308 4,279 10,402 616,712
* Total loans net of deferred revenues
(Unit: Million Baht)
Separate financial statements
2010
Special Doubtful
Normal mention Substandard Doubtful of loss Total
Agricultural and mining 3,639 1 1 - 8 3,649
Manufacturing and commerce 20,751 193 65 130 450 21,589
Real estate and construction 18,434 104 254 163 439 19,394
Public utilities and services 18,110 17 8 197 77 18,409
Personal consuming
Housing loans 4,998 466 162 107 285 6,018
Hire purchase 218,478 15,416 782 606 2,589 237,871
Others 7,554 651 248 169 908 9,530
Others 10,064 25 - - - 10,089
Total* 302,028 16,873 1,520 1,372 4,756 326,549
* Total loans net of deferred revenues
134 Annual Report 2011 Thanachart Bank Public Company Limited
53
12.4 Non-performing loans
As at 31 December 2011 and 2010, the Bank and its subsidiaries (banking, securities and
asset management) had non-performing loans classified in accordance with the
Notification of the BOT and SEC (debtors classified as substandard, doubtful and doubtful
of loss) as follows:
(Unit: Million Baht)
Consolidated Separate
financial statements financial statements
2011 2010 2011 2010
Non-performing loans (excluding
accrued interest receivables)
Banking business 17,989 35,520 17,989 7,648
Securities business 306 1,339 - -
Asset management 19,382 - - -
The above definition of non-performing loans does not include overdue loans which have
been already restructured and are now qualified for classification as Normal or Special
mention debt.
Additionally, the Bank and its subsidiaries (banking and securities business) had loans for
which income recognition under an accrual basis has been discontinued, as follows:
(Unit: Million Baht)
Consolidated Separate
financial statements financial statements
2011 2010 2011 2010
Banking business 16,558 44,046 16,558 7,538
Securities business 306 1,339 - -
The subsidiary company engaged in the asset management business recognises income
from loan on a cash basis.
Annual Report 2011 Thanachart Bank Public Company Limited 135
54
12.5 Debt restructuring
During the years 2011 and 2010, the Bank and its subsidiaries have entered into debt
restructuring agreements as follows:
consolidated financial statements
For the years ended 31 December
Outstanding Outstanding Fair value of
loans balance loans balance Type of assets assets to be
Number of before after to be transferred under
Type of restructuring debtors restructuring (1) restructuring (1) transferred agreement
Million Baht Million Baht Million Baht
2011
Modification of repayment
conditions 38,676 16,553 16,553
Transfer of assets and/or
ordinary shares and/or
modification of repayment
conditions 9 627 627 Land 190
Total 38,685 17,180 17,180
2010
Transfer of assets 1 6 6 Land and premise 6
Modification of repayment
conditions 5,908 10,616 10,616
Transfer of assets and/or ordinary
shares and/or modification of
repayment conditions 4 154 154 Land 127
Total 5,913 10,776 10,776
(1) Presents the outstanding balance per the books of account (principal plus accrued interest receivable).
136 Annual Report 2011 Thanachart Bank Public Company Limited
55
Separate financial statements
For the years ended 31 December
Type of restructuring
Number of
debtors
Outstanding
loans balance
before
restructuring (1)
Outstanding
loans balance
after
restructuring (1)
Type of assets
to be
transferred
Fair value of
assets to be
transferred under
agreement
Million Baht Million Baht Million Baht
2011
Modification of repayment
conditions 38,353 13,163 13,163
Transfer of assets and/or ordinary
shares and/or modification of
repayment conditions 6 14 14 Land 15
Total 38,359 13,177 13,177
2010
Modification of repayment
conditions 4,978 1,949 1,949
Transfer of assets and/or ordinary
shares and/or modification of
repayment conditions 4 154 154 Land 127
Total 4,982 2,103 2,103
(1) Presents the outstanding balance per the books of account (principal plus accrued interest receivable).
Counting from the end of the year, the remaining periods to maturity of receivables which
entered into debt restructuring agreements during the years 2011 and 2010, are
summarised below.
Consolidated financial statements
For the years ended 31 December
2011 2010
Periods
Number of
debtors
Outstanding
balances after
restructuring
Number of
debtors
Outstanding
balances after
restructuring
Million Baht Million Baht
Past due after restructuring 1,261 1,734 1,299 582
Due within the year 908 1,504 670 618
Less than 5 years 27,984 8,645 2,096 1,563
5 - 10 years 8,498 5,213 1,609 7,295
10 - 15 years 13 45 112 458
Over 15 years 21 39 127 260
Total 38,685 17,180 5,913 10,776
Annual Report 2011 Thanachart Bank Public Company Limited 137
56
Separate financial statements
For the years ended 31 December
2011 2010
Periods
Number of
debtors
Outstanding
balances after
restructuring
Number of
debtors
Outstanding
balances after
restructuring
Million Baht Million Baht
Past due after restructuring 1,169 841 1,247 438
Due within the year 812 168 663 130
Less than 5 years 27,947 8,098 1,947 505
5 - 10 years 8,422 4,029 1,102 977
10 - 15 years 5 31 9 13
Over 15 years 4 10 14 40
Total 38,359 13,177 4,982 2,103
Supplemental information for the years 2011 and 2010 relating to restructured loan is as
follows:
(Unit: Million Baht)
Consolidated
financial statements
Separate
financial statements
2011 2010 2011 2010
Interest incomes recognised in the statements
of comprehensive income 1,292 1,080 543 487
Cash repayment from receivables 4,985 4,331 2,288 1,594
Properties foreclosed received for debts
settlement 58 309 58 303
Loss on debt restructuring 40 77 15 123
As at 31 December 2011 and 2010, the Bank and its subsidiaries have the following
restructured receivables balances (principal and accrued interest receivable):
Restructured receivables
Total number of
outstanding receivables Number of receivables Outstanding balances
Outstanding balances,
net of collateral
2011 2010 2011 2010 2011 2010 2011 2010
Million Baht Million Baht Million Baht Million Baht
Thanachart Bank Plc. 1,378,861 944,313 52,289 13,944 25,803 5,324 9,350 2,414
Siam City Bank Plc. - 358,647 - 6,247 - 22,871 - 9,560
Thanachart Securities Plc. 886 395 3 3 35 35 35 35
TS Asset Management Co., Ltd. 2,459 - 1,630 - 12,978 - 5,173 -
138 Annual Report 2011 Thanachart Bank Public Company Limited
57
12.6 Hire purchase/Financial lease receivables
As at 31 December 2011, net hire purchase/financial lease receivables of the Bank and its
subsidiaries amounting to Baht 283,038 million were recorded in the consolidated financial
statements, with Baht 270,015 million recorded in the separate financial statements. These
mostly comprise hire purchase agreements or financial lease agreements for cars and
motorcycles. The terms of the agreements are generally between 3 and 7 years and they
carry interest at fixed rates.
(Unit: Million Baht)
Consolidated financial statement as at 31 December 2011
Amounts due under lease agreements
Less than
1 year* 1 - 5 years Over 5 years Total
Gross investment in the lease 98,530 218,233 11,317 328,080
Less: Unearned finance income (15,589) (23,687) (515) (39,791)
Present value of minimum lease payments
receivable 82,941 194,546 10,802 288,289
Allowance for doubtful accounts (5,251)
Hire purchase/Financial lease receivables -
net 283,038
* Included non-performing receivables
(Unit: Million Baht)
Consolidated financial statement as at 31 December 2010
Amounts due under lease agreements
Less than
1 year* 1 - 5 years Over 5 years Total
Gross investment in the lease 89,288 177,763 7,192 274,243
Less: Unearned finance income (13,967) (18,248) (242) (32,457)
Present value of minimum lease payments
receivable 75,321 159,515 6,950 241,786
Allowance for doubtful accounts (5,137)
Hire purchase/Financial lease receivables -
net 236,649
* Included non-performing receivables
Annual Report 2011 Thanachart Bank Public Company Limited 139
58
(Unit: Million Baht)
Separate financial statement as at 31 December 2011
Amounts due under lease agreements
Less than
1 year* 1 - 5 years Over 5 years Total
Gross investment in the lease 96,982 204,671 10,868 312,521
Less: Unearned finance income (15,423) (21,881) (425) (37,729)
Present value of minimum lease payments
receivable 81,559 182,790 10,443 274,792
Allowance for doubtful accounts (4,777)
Hire purchase/Financial lease receivables -
net 270,015
* Included non-performing receivables
(Unit: Million Baht)
Separate financial statement as at 31 December 2010
Amounts due under lease agreements
Less than
1 year* 1 - 5 years Over 5 years Total
Gross investment in the lease 88,359 176,636 7,180 272,175
Less: Unearned finance income (13,827) (18,105) (242) (32,174)
Present value of minimum lease payments
receivable 74,532 158,531 6,938 240,001
Allowance for doubtful accounts (4,925)
Hire purchase/Financial lease receivables -
net 235,076
* Included non-performing receivables
140 Annual Report 2011 Thanachart Bank Public Company Limited
59
12.7 Classified by classification
As at 31 December 2011 and 2010, the Bank and its financial institution subsidiaries
(banking and asset management business) classified and made allowances against their
loans in accordance with the BOT’s guidelines as summarised below.
(Unit: Million Baht)
Consolidated financial statements (1)
Loans and accrued
interest receivables
Net balance used in
made allowance for
doubtful accounts (2)
Minimum
percentage
Allowance for doubtful
accounts
2011 2010 2011 2010 (Percent) 2011 2010
Normal 542,456 531,104 201,301 189,131 1 3,970 2,082
Special mention 40,447 36,539 18,289 16,944 2 722 2,249
Substandard 7,031 6,663 3,870 2,805 100 3,870 2,898
Doubtful 11,763 12,620 7,507 8,199 100 7,507 8,277
Doubtful of loss 18,631 16,323 8,208 8,180 100 8,348 8,199
Total 620,328 603,249 239,175 225,259 24,417 23,705
Additional allowance for possible uncollectability debts 383 534
Total 24,800 24,239
(1) Only the Bank and subsidiary companies subject to BOT’s regulations; and after deducting intragroup transactions.
(2) The net balance used in setting allowance for doubtful accounts for loans classified as Normal and Special mention is the principal
balance net of deferred revenues, excluding accrued interest receivables, and after deducting collaterals values, while for loans
classified as Substandard, Doubtful and Doubtful of loss, it is the principal balance net of deferred revenues plus accrued interest
receivables, and after deducting the present value of expected future cash flows from debt collection or from disposal of collaterals.
(Unit: Million Baht)
Separate financial statements
Loans and accrued
interest receivables
Net balance used in
made allowance for
doubtful accounts (1)
Minimum
percentage
Allowance for doubtful
accounts
2011 2010 2011 2010 (Percent) 2011 2010
Normal 559,184 302,266 218,024 103,855 1 2,812 1,155
Special mention 40,447 16,887 18,289 8,414 2 721 168
Substandard 3,309 1,523 1,500 1,070 100 1,500 1,070
Doubtful 4,279 1,372 1,791 775 100 1,791 775
Doubtful of loss 10,418 4,773 5,138 3,888 100 5,278 3,888
Total 617,637 326,821 244,742 118,002 12,102 7,056
Additional allowance for possible uncollectability debts 383 375
Total 12,485 7,431
(1) The net balance used in setting allowance for doubtful accounts for loans classified as Normal and Special mention is the principal
balance net of deferred revenues, excluding accrued interest receivables, and after deducting collaterals values, while for loans
classified as Substandard, Doubtful and Doubtful of loss, it is the principal balance net of deferred revenues plus accrued interest
receivables, and after deducting the present value of expected future cash flows from debt collection or from disposal of collaterals.
Annual Report 2011 Thanachart Bank Public Company Limited 141
60
From July to December 2011, there was widespread flooding in Thailand. The floods may affect the business of certain debtors. The Bank has provided support to its customers in accordance with the policy of the BOT by relaxing principal and/or interest payments, extending the repayment schedule, maintaining the status of each debtor as it was before such floods occurred, and not treating the related receivables as non-performing loans. As at 31 December 2011 a total of 27,783 debtors with total balances of Baht 22,096 million had received relaxations of terms due to the flooding. However, the Bank’s management believes that no further significant damage will be incurred as a result of this situation.
12.8 Loan to companies which have settlement problems
As at 31 December 2011 and 2010, loans of the Bank and its subsidiaries in the consolidated financial statements and the separate financial statements included debts due from companies with weak financial positions and poor operating results, as follows:
Consolidated financial statements
Allowance for doubtful
accounts provided
Number of debtors Debt balance Collateral value in the accounts
2011 2010 2011 2010 2011 2010 2011 2010
Million Million Million Million Million Million
Baht Baht Baht Baht Baht Baht
1. Listed companies possible to 6 6 857 425 67 67 790 359
delisting from the SET
2. Non - listed companies with 9 11 585 750 334 753 236 275
similar operating results and
financial positions to listed
companies possible to
delisting from the SET
3. Companies which have loan 1,130 1,102 24,337 30,827 11,760 13,545 13,213 13,708
settlement problems or have
defaulted on the repayment
Separate financial statements
Allowance for doubtful
accounts provided
Number of debtors Debt balance Collateral value in the accounts
2011 2010 2011 2010 2011 2010 2011 2010
Million Million Million Million Million Million
Baht Baht Baht Baht Baht Baht
1. Listed companies possible to 3 2 169 122 31 - 138 122
delisting from the SET
2. Non - listed companies with 9 11 585 750 334 753 236 275
similar operating results and
financial positions to listed
companies possible to
delisting from the SET
3. Companies which have loan 737 432 8,042 931 5,323 580 2,726 392
settlement problems or have
defaulted on the repayment
142 Annual Report 2011 Thanachart Bank Public Company Limited
61
12.9 Classification of securities business receivables in accordance with the Notification of the Securities and Exchange Commission
As at 31 December 2011 and 2010, subsidiary companies operating in the securities
business classified securities business receivables and accrued interest receivables, and
provided related allowance for doubtful accounts, in accordance with the Notification of the
Securities and Exchange Commission (SEC), as follows:
(Unit: Million Baht)
Debt balance net of allowance
Receivable balances Allowance for doubtful accounts for doubtful accounts
2011 2010 2011 2010 2011 2010
Normal 1,930 1,344 - - 1,930 1,344
Substandard 3 4 2 3 1 1
Doubtful 303 1,335 303 1,335 - -
Total 2,236 2,683 305 1,338 1,931 1,345
Allowance for doubtful accounts for substandard loans set aside by subsidiaries is higher
than the minimum amount required by the SEC, and takes into account uncertainties as to
collateral value and the risk from collection of such receivables.
12.10 Hire purchase receivables/financial lease receivables of subsidiaries classified by aging
As at 31 December 2011 and 2010, hire purchase and financial lease receivables
balances of subsidiary companies engaged in hire purchase and financial lease
businesses are classified by the due date of the contracts (after elimination) as follows:
(Unit: Million Baht)
2011 2010
Current or overdue not over 90 days 12,863 1,590
Overdue 91 - 365 days 363 40
Overdue more than 1 year 66 48
Debtors under legal actions 205 107
Total 13,497 1,785
Allowance for doubtful accounts provided in the accounts 792 212
Annual Report 2011 Thanachart Bank Public Company Limited 143
62
12.11 As at 31 December 2011 and 2010, the Bank has loans to subsidiary companies as
follows:
Contract period as at Interest rate as at Outstanding balances
Company’s name Type of credit 31 December 2011 31 December 2011 2011 2010
Million Baht Million Baht
Subsidiary companies
Thanachart Group Leasing Co.,
Ltd.
Promissory note At call The Bank’s cost of fund plus a
fixed interest rate per annum
353 932
National Leasing Co., Ltd. Promissory note At call The Bank’s cost of fund plus a
fixed interest rate per annum
22 52
Ratchthani Leasing Plc. Promissory note At call The Bank’s cost of fund plus a
fixed interest rate per annum
7,867 -
TS Asset Management Co., Ltd. Promissory note At call The Bank’s cost of fund plus a
fixed interest rate per annum
9,822 -
Total 18,064 984
13. Allowance for doubtful accounts
(Unit: Million Baht)
Consolidated financial statements
2011
The Bank and a subsidiary company which are financial institutions
Normal
Special
mention
Sub-
standard Doubtful
Doubtful of
loss
General
provision Total
Subsidiary
companies Consolidated
Balance - beginning of the year 2,082 2,249 2,898 8,277 8,199 534 24,239 1,550 25,789
Beginning balance of the subsidiaries
acquired during the year - - - - - - - 542 542
Balance of a subsidiary company
disposed during the year - - - - - - - (1,023) (1,023)
Increase (decrease) during the year 1,888 (1,527) 992 (571) 1,826 (151) 2,457 91 2,548
Bad debts recovery - - - 253 156 - 409 11 420
Bad debts written-off - - (20) (452) (933) - (1,405) (73) (1,478)
Reversal from disposal of loans - - - - (900) - (900) - (900)
Balance - end of the year 3,970 722 3,870 7,507 8,348 383 24,800 1,098 25,898
144 Annual Report 2011 Thanachart Bank Public Company Limited
63
(Unit: Million Baht)
Consolidated financial statements
2010
The Bank and a subsidiary company which are financial institutions
Normal
Special
mention
Sub-
standard Doubtful
Doubtful
of loss
General
provision Total
Subsidiary
companies Consolidated
Balance - beginning of the year 895 188 968 1,181 4,258 214 7,704 659 8,363
Beginning balance of the subsidiaries
acquired during the year 971 2,854 1,346 4,745 6,244 - 16,160 1,074 17,234
Balance of a subsidiary company
disposed during the year - - - - - - - (64) (64)
Increase (decrease) during the year 216 (793) 584 2,595 (858) 320 2,064 (29) 2,035
Bad debts recovery - - - 223 56 - 279 16 295
Bad debts written-off - - - (467) (594) - (1,061) (106) (1,167)
Reversal from disposal of loans - - - - (907) - (907) - (907)
Balance - end of the year 2,082 2,249 2,898 8,277 8,199 534 24,239 1,550 25,789
(Unit: Million Baht)
Separate financial statements
2011
Normal
Special
mention Substandard Doubtful
Doubtful
of loss
General
provision Total
Balance - beginning of the year 1,155 168 1,070 775 3,888 375 7,431
Increase (decrease) during the year 10 138 (775) 729 1,278 8 1,388
Increase for receivables which were
transferred from SCIB during the
year 1,647 415 1,205 287 1,474 - 5,028
Bad debts recovery - - - - 156 - 156
Bad debts written-off - - - - (618) - (618)
Reversal from disposal of loans - - - - (900) - (900)
Balance - end of the year 2,812 721 1,500 1,791 5,278 383 12,485
(Unit: Million Baht)
Separate financial statements
2010
Normal
Special
mention Substandard Doubtful
Doubtful
of loss
General
provision Total
Balance - beginning of the year 909 188 968 1,181 4,258 214 7,718
Increase (decrease) during the year 246 (20) 102 (406) 1,076 161 1,159
Bad debts recovery - - - - 55 - 55
Bad debts written-off - - - - (594) - (594)
Reversal from disposal of loans - - - - (907) - (907)
Balance - end of the year 1,155 168 1,070 775 3,888 375 7,431
Annual Report 2011 Thanachart Bank Public Company Limited 145
64
14. Revaluation allowance for debt restructuring
(Unit: Million Baht)
Consolidated financial statements Separate financial statements
2011 2010 2011 2010
Balance - beginning of the year 460 33 38 33
Beginning balance of the subsidiaries
acquired during the year - 472 - -
Additional allowance for receivables received
during the year - - 369 -
Increase (decrease) during the year (35) (40) 15 7
Amortised during the year (43) (5) (40) (2)
Balance - end of the year 382 460 382 38
15. Classification of assets
As at 31 December 2011 and 2010, the quality of assets of the Bank and its subsidiaries
classified in accordance with the announcements of the Bank of Thailand are as follows:
(Unit: Million Baht)
Consolidated financial statements
2011
Interbank and
money market
items
Loans to
customer and
accrued
interest
receivables Investments
Property
foreclosed Other assets Total
Normal 39,364 542,456 - - 162 581,982
Special mention - 40,447 - - 108 40,555
Substandard - 7,031 - - 4 7,035
Doubtful - 11,763 - - 4 11,767
Doubtful of loss - 18,631 238 197 237 19,303
Total 39,364 620,328 238 197 515 660,642
146 Annual Report 2011 Thanachart Bank Public Company Limited
65
(Unit: Million Baht)
Consolidated financial statements
2010
Interbank and
money market
items
Loans to
customer and
accrued
interest
receivables Investments
Property
foreclosed Other assets Total
Normal 51,777 531,104 - - 192 583,073
Special mention - 36,539 - - 84 36,623
Substandard - 6,663 - - 8 6,671
Doubtful - 12,620 - - 14 12,634
Doubtful of loss - 16,323 89 56 503 16,971
Total 51,777 603,249 89 56 801 655,972
(Unit: Million Baht)
Separate financial statements
2011
Interbank and
money market
items
Loans to
customer and
accrued
interest
receivables Investments
Property
foreclosed Other assets Total
Normal 39,514 559,184 - - 162 598,860
Special mention - 40,447 - - 108 40,555
Substandard - 3,309 - - 4 3,313
Doubtful - 4,279 - - 4 4,283
Doubtful of loss - 10,418 238 148 237 11,041
Total 39,514 617,637 238 148 515 658,052
(Unit: Million Baht)
Separate financial statements
2010
Interbank and
money market
items
Loans to
customer and
accrued
interest
receivables Investments
Property
foreclosed Other assets Total
Normal 12,510 302,266 - - 179 314,955
Special mention - 16,887 - - 82 16,969
Substandard - 1,523 - - 5 1,528
Doubtful - 1,372 - - 4 1,376
Doubtful of loss - 4,773 89 56 16 4,934
Total 12,510 326,821 89 56 286 339,762
Annual Report 2011 Thanachart Bank Public Company Limited 147
66
16. Property foreclosed (Unit: Million Baht)
Consolidated financial statements
For the year ended 31 December 2011
Balance -
beginning
of the year
Increased
from
purchase of
subsidiary
company Additions Disposals
Change
appraiser
Balance - end
of the year
Assets transferred in settlement of debts
Immovable assets
External appraiser 6,472 - 108 (1,079) 114 5,615
Internal appraiser 233 - 16 (38) (114) 97
Movable assets 289 4 3,184 (3,112) - 365
Assets foreclosed from purchase
by bid on the open market
Immovable assets
External appraiser 673 - 93 (63) 4 707
Internal appraiser 72 - 7 (11) (4) 64
Assets awaiting disposal
External appraiser 168 - (52) - 116
Total property foreclosed 7,907 4 3,356 (4,303) - 6,964
Less: Allowance for impairment (56) - (528) 382 - (202)
Property foreclosed - Net 7,851 4 2,828 (3,921) - 6,762
(Unit: Million Baht)
Consolidated financial statements
For the year ended 31 December 2010
Balance -
beginning
of the year
Increased
from
purchase of
subsidiary
company Additions Disposals
Change
appraiser
Balance - end
of the year
Assets transferred in settlement of debts
Immovable assets
External appraiser 353 6,657 205 (639) (104) 6,472
Internal appraiser 110 16 17 (14) 104 233
Movable assets 428 - 3,733 (3,872) - 289
Assets foreclosed from purchase
by bid on the open market
Immovable assets
External appraiser - 577 119 (24) 1 673
Internal appraiser 65 7 13 (12) (1) 72
Assets awaiting disposal
External appraiser - 168 - - - 168
Total property foreclosed 956 7,425 4,087 (4,561) - 7,907
Less: Allowance for impairment (44) - (186) 174 - (56)
Property foreclosed - Net 912 7,425 3,901 (4,387) - 7,851
148 Annual Report 2011 Thanachart Bank Public Company Limited
67
(Unit: Million Baht)
Separate financial statements
For the year ended 31 December 2011
Balance -
beginning
of the year
Increased
from
purchase of
subsidiary
company Additions Disposals
Change
appraiser
Balance - end
of the year
Assets transferred in settlement of debts
Immovable assets
External appraiser 111 2,367 - (33) 119 2,564
Internal appraiser 230 - 16 (38) (119) 89
Movable assets 283 4 3,122 (3,064) - 345
Assets foreclosed from purchase
by bid on the open market
Immovable assets
External appraiser 1 636 - (17) 4 624
Internal appraiser 71 - 7 (11) (4) 63
Assets awaiting disposal
External appraiser - 116 - - - 116
Total property foreclosed 696 3,123 3,145 (3,163) - 3,801
Less: Allowance for impairment (56) (63) (165) 136 - (148)
Property foreclosed - Net 640 3,060 2,980 (3,027) - 3,653
(Unit: Million Baht)
Separate financial statements
For the year ended 31 December 2010
Balance -
beginning
of the year Additions Disposals
Change
appraiser
Balance - end
of the year
Assets transferred in settlement of debts
Immovable assets
External appraiser 353 186 (324) (104) 111
Internal appraiser 110 17 (1) 104 230
Movable assets 410 3,610 (3,737) - 283
Assets foreclosed from purchase
by bid on the open market
Immovable assets
External appraiser - - - 1 1
Internal appraiser 65 12 (5) (1) 71
Total property foreclosed 938 3,825 (4,067) - 696
Less: Allowance for impairment (43) (167) 154 - (56)
Property foreclosed - Net 895 3,658 (3,913) - 640
Annual Report 2011 Thanachart Bank Public Company Limited 149
68
16.1 As at 31 December 2011 and 2010, property foreclosed received in settlement of
receivables that are subject to restrictions can be summarised as follows: (Unit: Million Baht)
Consolidated financial statements Separate financial statements
2011 2010 2011 2010
Immovable assets subject to buyback
options or first refusal rights 739 522 739 221
16.2 As at 31 December 2011, the Bank and its subsidiaries have agreements with clients to purchase or sell property foreclosed amounting to approximately Baht 966 million (at cost) in the consolidated financial statements and Baht 926 million in the separate financial statements that are currently being settled in installments or through transfer of ownership. The Bank and its subsidiaries have therefore not recognised gains on the sales, and the assets continue to be recorded as property foreclosed of the Bank and its subsidiaries.
17. Land, premises and equipment (Unit: Million Baht)
Consolidated financial statements
For the year ended 31 December 2011
Land
Buildings and buildings
improvement
Furniture,fixtures and equipment Vehicles
Assetsunder
installation Total
Cost 31 December 2010 4,649 2,652 3,916 155 134 11,506 Increase from purchase of subsidiary
company 12 37 6 7 - 62 Decrease from disposal of a subsidiary
company - - (107) (13) - (120) Additions 43 54 428 11 327 863
Transfers/disposals - (277) (10) (84) (315) (686)
31 December 2011 4,704 2,466 4,233 76 146 11,625
Accumulated depreciation 31 December 2010 - 201 2,258 60 - 2,519 Decrease from disposal of a subsidiary
company - - (95) (13) - (108) Transfer/disposals (270) (310) (74) - (654)
Depreciation for the years - 216 756 42 - 1,014
31 December 2011 - 147 2,609 15 - 2,771
Allowance for impairment 31 December 2010 - - 1 - - 1 Increase (decrease) during the period 68 26 1 - - 95 Decrease from disposal of a subsidiary
company - - (1) - - (1)
31 December 2011 68 26 1 - - 95
Net book value
31 December 2011 4,636 2,293 1,623 61 146 8,759
Depreciation charge for the year 1,014
150 Annual Report 2011 Thanachart Bank Public Company Limited
69
(Unit: Million Baht)
Consolidated financial statements
For the year ended 31 December 2010
Land
Buildings and
building
improvement
Furniture,
fixtures and
equipment Vehicles
Assets under
installation Total
Cost
31 December 2009 426 390 3,057 168 18 4,059
Increase from purchase of subsidiary
companies 4,173 2,142 704 62 134 7,215
Decrease from disposal of a subsidiary
company - - (6) (1) - (7)
Additions 54 56 380 20 90 600
Transfers/disposals (4) 64 (219) (94) (108) (361)
31 December 2010 4,649 2,652 3,916 155 134 11,506
Accumulated depreciation
31 December 2009 - 42 1,710 95 - 1,847
Decrease from disposal of a subsidiary
company - - (2) (1) - (3)
Transfer/disposals - (3) (244) (94) - (341)
Depreciation for the year - 162 794 60 - 1,016
31 December 2010 - 201 2,258 60 - 2,519
Allowance for impairment
31 December 2009 1 - - - - 1
Increase from purchase of subsidiary
companies - - - - - -
Increase (decrease) during the year (1) - 1 - - -
31 December 2010 - - 1 - - 1
Net book value
31 December 2010 4,649 2,451 1,657 95 134 8,986
Depreciation charge for the year 1,016
Annual Report 2011 Thanachart Bank Public Company Limited 151
70
(Unit: Million Baht)
Separate financial statements
For the year ended 31 December 2011
Land
Buildings
and buildings
improvement
Furniture,
fixtures and
equipment Vehicles
Assets
under
installation Total
Cost
31 December 2010 475 371 2,572 105 13 3,536
Received from Entire Business Transfer 4,100 1,921 756 8 114 6,899
Additions 43 22 197 5 50 317
Transfers/disposals - - 15 (8) (33) (26)
31 December 2011 4,618 2,314 3,540 110 144 10,726
Accumulated depreciation
31 December 2010 - 48 1,736 62 - 1,846
Transfers/disposals - - (17) (8) - (25)
Depreciation for the year - 52 470 18 - 540
31 December 2011 - 100 2,189 72 - 2,361
Net book value
31 December 2011 4,618 2,214 1,351 38 144 8,365
Depreciation charge for the year 540
(Unit: Million Baht) Separate financial statements
For the year ended 31 December 2010
Land
Buildings
and
buildings
improvement
Furniture,
fixtures and
equipment Vehicles
Assets under
installation Total
Cost
31 December 2009 426 331 2,456 101 17 3,331
Additions 54 40 127 15 13 249
Transfers/disposals (5) - (11) (11) (17) (44)
31 December 2010 475 371 2,572 105 13 3,536
Accumulated depreciation
31 December 2009 - 31 1,295 54 - 1,380
Transfers/disposals - - (20) (11) - (31)
Depreciation for the year - 17 461 19 - 497
31 December 2010 - 48 1,736 62 - 1,846
Allowance for impairment
31 December 2009 1 - - - - 1
Decrease during the year (1) - - - - (1)
31 December 2010 - - - - - -
Net book value
31 December 2010 475 323 836 43 13 1,690
Depreciation charge for the year 497
152 Annual Report 2011 Thanachart Bank Public Company Limited
71
As at 31 December 2011, the Bank and its subsidiaries have vehicles acquired under
financial leases with net book values amounting to approximately Baht 39 million. In
addition, the Bank and its subsidiaries have office equipment and vehicles which have
been fully depreciated but are still in use. The gross carrying amount before deducting
accumulated depreciation and allowance for impairment loss, amounting to approximately
Baht 1,330 million (separate financial statements: Baht 31 million and Baht 1,016 million,
respectively).
18. Intangible assets
(Unit: Million Baht)
Consolidated financial statements
For the year ended 31 December 2011
Intangible
assets from
business
combination
Computer
software
Membership
fees for
Thailand
Futures
Exchange and
others
Computer
software under
development Total
Cost
31 December 2010 4,100 905 4 163 5,172
Increase from purchase of a
subsidiary company - 2 - 6 8
Decrease from disposal of a
subsidiary company - (22) - - (22)
Additions - 341 - 233 574
Transfers/disposals - (36) 3 (222) (255)
31 December 2011 4,100 1,190 7 180 5,477
Accumulated amortisation
31 December 2010 137 227 3 - 367
Decrease from disposal of a
subsidiary company - (4) - - (4)
Disposals - (258) 3 - (255)
Amortisation for the year 465 169 1 - 635
31 December 2011 602 134 7 - 743
Allowance for impairment
31 December 2010 - - - - -
Increase during the period - 27 - - 27
Decrease from disposal of a
subsidiary company - (2) - - (2)
31 December 2011 - 25 - - 25
Net book value
31 December 2011 3,498 1,031 - 180 4,709
Amortisation expenses for the year 635
Remaining amortisation period
(years) 8.3 years 0-10 years 0-1 years -
Annual Report 2011 Thanachart Bank Public Company Limited 153
72
(Unit: Million Baht)
Consolidated financial statements
For the year ended 31 December 2010
Intangible
assets from
business
combination
Computer
software
Membership
fees for
Thailand
Futures
Exchange and
others
Computer
software under
development Total
Cost
31 December 2009 - 492 7 116 615
Increase from purchase of
subsidiary companies - 253 1 39 293
Additions/increase due to
business combination 4,100 65 - 109 4,274
Transfer - 101 - (101) -
Disposals - (6) (4) - (10)
31 December 2010 4,100 905 4 163 5,172
Accumulated amortisation
31 December 2009 - 134 5 - 139
Increase from purchase of
subsidiary companies - - - - -
Disposals - (5) (4) - (9)
Amortisation for the year 137 98 2 - 237
31 December 2010 137 227 3 - 367
Net book value
31 December 2010 3,963 678 1 163 4,805
Amortisation expenses for the year 237
154 Annual Report 2011 Thanachart Bank Public Company Limited
73
(Unit: Million Baht)
Separate financial statements
For the year ended 31 December 2011
Intangible assets
from business
combination
Computer
software
Computer
software under
development Total
Cost
31 December 2010 - 501 99 600
Increase from Entire Business Transfer 3,613 238 - 3,851
Additions - 300 225 525
Transfer - 160 (160) -
31 December 2011 3,613 1,199 164 4,976
Accumulated amortisation
31 December 2010 - 115 - 115
Amortisation for the year 115 71 - 186
31 December 2011 115 186 - 301
Allowance for impairment
31 December 2010 - - - -
Increase during the year - 25 - 25
31 December 2011 - 25 - 25
Net book value
31 December 2011 3,498 988 164 4,650
Amortisation expenses for the year 186
Remaining amortisation period (years) 8.3 years 0 – 9.9 years -
(Unit: Million Baht)
Separate financial statements
For the year ended 31 December 2010
Computer
software
Computer software
under development Total
Cost
31 December 2009 390 113 503
Additions 27 70 97
Transfer 84 (84) -
31 December 2010 501 99 600
Accumulated amortisation
31 December 2009 72 - 72
Amortisation for the year 43 - 43
31 December 2010 115 - 115
Net book value
31 December 2010 386 99 485
Amortisation expenses for the year 43
Annual Report 2011 Thanachart Bank Public Company Limited 155
74
As at 31 December 2011, the Bank and its subsidiaries have computer software which
have been fully amortised but are still in use with original costs, before deducting
accumulated amortisation, amounting to approximately Baht 40 million (separate financial
statement: Baht 7 million).
19. Goodwill
As at 31 December 2011 and 2010, goodwill stated in the consolidated financial
statements are as follows.
(Unit: Million Baht)
Consolidated financial statements Separate financial statements
2011 2010 2011 2010
Goodwill - beginning of the year 15,750 10 - -
Increase during the year 2010 - 15,740 15,740 -
Goodwill - ending of the year 15,750 15,750 15,740 -
20. Other assets (Unit: Million Baht)
Consolidated
financial statements
Separate
financial statements
2011 2010 2011 2010
Accrued premium insurance income 440 444 - -
Other receivables 1,553 949 1,547 281
Accrued interest and dividend income
receivables 1,052 1,024 725 311
VAT refundable 57 676 48 670
Prepaid leasehold rights 392 411 388 208
Other receivables - VAT paid in advance for
customers 197 172 184 172
Suspense accounts between head office and
branches - 326 - 183
Deposit 276 331 255 173
Estimated insurance claims recoveries 264 187 - -
Receivable from clearing house 25 391 - -
Deposit from derivative contracts 357 148 357 100
Others 817 645 578 125
Total 5,430 5,704 4,082 2,223
Less: Allowance for impairment (307) (575) (257) (29)
Other assets - Net 5,123 5,129 3,825 2,194
156 Annual Report 2011 Thanachart Bank Public Company Limited
75
21. Deposits
21.1 Classified by type of deposits
(Unit: Million Baht)
Consolidated Separate
financial statements financial statements
2011 2010 2011 2010
Current 7,129 7,222 7,227 2,487
Saving 169,196 181,350 170,386 87,765
Promissory notes 61 61 61 61
Certificates of deposit 2 5,297 2 -
Fixed deposits
- Less than 6 months 52,172 154,231 86,450 68,894
- 6 months and up to 1 year 133,560 39,394 133,560 16,737
- Over 1 year 73,920 145,101 73,932 66,847
Total deposits 436,040 532,656 471,618 242,791
21.2 Classified by currency and countries
(Unit: Million Baht)
Consolidated financial statements
2011 2010
Domestic Foreign Total Domestic Foreign Total
Baht 435,796 1 435,797 532,253 1 532,254
US Dollar 84 20 104 160 25 185
Other currencies 22 117 139 90 127 217
Total 435,902 138 436,040 532,503 153 532,656
(Unit: Million Baht)
Separate financial statements
2011 2010
Domestic Foreign Total Domestic Foreign Total
Baht 471,374 1 471,375 242,614 - 242,614
US Dollar 84 20 104 24 13 37
Other currencies 22 117 139 35 105 140
Total 471,480 138 471,618 242,673 118 242,791
Annual Report 2011 Thanachart Bank Public Company Limited 157
76
22. Interbank and money market items (liabilities)
(Unit: Million Baht)
Consolidated financial statements
2011 2010
At call Term Total At call Term Total
Domestic
Bank of Thailand and the FIDF - 3,065 3,065 1,427 2,601 4,028
Commercial banks 700 10,032 10,732 174 4,823 4,997
Specialised financial institutions 3,100 7,234 10,334 24 3,206 3,230
Other financial institutions 17,015 9,705 26,720 14,361 6,635 20,996
Total domestic items 20,815 30,036 50,851 15,986 17,265 33,251
Foreign
US Dollar 3 8,599 8,602 81 6,832 6,913
Euro - - - - 24 24
Baht currency 241 457 698 95 262 357
Total foreign items 244 9,056 9,300 176 7,118 7,294
Total 21,059 39,092 60,151 16,162 24,383 40,545
(Unit: Million Baht)
Separate financial statements
2011 2010
At call Term Total At call Term Total
Domestic
Bank of Thailand and the FIDF - 3,064 3,064 - 2,600 2,600
Commercial banks 681 8,779 9,460 19 2,450 2,469
Specialised financial institutions 3,100 7,234 10,334 - 3,206 3,206
Other financial institutions 17,420 9,705 27,125 11,176 3,885 15,061
Total domestic items 21,201 28,782 49,983 11,195 12,141 23,336
Foreign
US Dollar 3 8,599 8,602 61 5,928 5,989
Euro - - - - 24 24
Baht currency 241 457 698 95 262 357
Total foreign items 244 9,056 9,300 156 6,214 6,370
Total 21,445 37,838 59,283 11,351 18,355 29,706
158 Annual Report 2011 Thanachart Bank Public Company Limited
77
As at 31 December 2011, a subsidiary company has loans from financial institutions that
require it to comply with certain conditions, as summarised follows.
(a) A long-term loans amounting to Baht 773 million, repayable in 48 monthly installments
from the date of loan drawdown, with interest charged at the average MLR less a
fixed percentage per annum, payable monthly. The loans are secured by the
assignment of collection rights over hire purchase receivables of the subsidiary
company with a value of not less than 125 percent of the loan balances, and the
transfer of ownership of the vehicles for which collection rights are assigned, as well
as the assignment of collection rights over deposit accounts and related interest of the
subsidiary company. In addition, the subsidiary has to maintain the terms and
conditions as specified in the loan agreement i.e. to maintain a debt to equity ratio of
not more than 8:1 and to maintain non-performing receivables at not more than 10
percent of total hire purchase receivables.
(b) A long-term loans amounting to Baht 275 million, repayable in 36 monthly installments
from the date of loan drawdown, with interest charged at fixed interest rate per
annum, payable monthly. The loan is secured by the assignment of collection rights
over hire purchase/financial lease receivables of the subsidiary company, and the
transfer of ownership of vehicles, with a value of not less than 110 percent of the loan
balances that were drawn down. In addition, the subsidiary has to maintain the terms
and conditions as specified in the loan agreement i.e. to maintain a debt to equity ratio
of not more than 8:1.
(c) A long-term loans amounting to Baht 6 million, repayable in 42 monthly installments
from the date of loan drawdown, with interest charged at the average MLR less a
fixed percentage per annum, payable monthly. The loans are secured by the
assignment of collection rights over hire purchase receivables of the subsidiary
company with a value of not less than 125 percent of the loan balances, and the
transfer of ownership of the vehicles for which collection rights are assigned, as well
as the assignment of collection rights over deposit accounts and related interest of the
subsidiary company. In addition, the subsidiary has to maintain the terms and
conditions as specified in the loan agreement i.e. to maintain a debt to equity ratio of
not more than 8:1 and to maintain non-performing receivables at not more than 10
percent of total hire purchase receivables.
Annual Report 2011 Thanachart Bank Public Company Limited 159
78
23. Debt issued and borrowings
As at 31 December 2011 and 2010, the balance of debt issued and domestic borrowings,
which stated in Baht, are as follows:
(Unit: Million Baht)
Interest rate Consolidated Separate
per annum (as at financial statements financial statements
Type of borrowings 31 December 2011) Maturity date 2011 2010 2011 2010
Perpetual subordinated hybrid bonds
issued under Tier I (a)
8.60 percent Dissolution 7,130 7,130 7,130 7,130
Subordinated hybrid bonds issued
under Tier II (b)
5.25 percent 2019 and 2024 5,000 5,000 5,000 5,000
Subordinated debentures issued
under Tier II (c - f)
5.00 - 5.50 and 6.00
percent
2015 - 2020 23,000 23,000 23,000 13,000
Bills of exchange 0 - 3.25 percent At call 57 11 56 1
Bills of exchange 0.50 - 4.65 percent 2012 - 2013 217,999 139,574 222,148 106,961
Promissory note 4.75 percent At call 942 - - -
Borrowings - Department of
Alternative Energy Development
and Efficiency
0 - 0.50 percent 2012 - 2017 169 234 169 -
Total debt issued and borrowings 254,297 174,949 257,503 132,092
(a) On 22 April 2010, the Bank issued 7,130,000 name registered of perpetual, non-
cumulative, subordinated, hybrid Tier 1 bonds, with a face value of Baht 1,000 each, and
sold them to two major shareholders of the Bank. The bonds mature upon dissolution or
liquidation of the Bank. The bonds are unsecured and non-convertible and bear interest at
a rate equal to the highest interest rate for a six-month fixed deposit plus 6 percent per
annum, payable semi-annually. The Bank has a call option to early redeem the bonds at
par if the condition specified are met.
(b) On 24 July 2009, the Bank issued 5,000,000 name registered subordinated hybrid bonds,
unsecured, unconvertible debentures with debenture holders’ representative, with a face
value of Baht 1,000 each. Of these, 3.5 million units mature in 2019 and bear interest at
rate of 5.25 percent per annum for the first five years, and 5.5 percent per annum for the
sixth to tenth years, while 1.5 million units mature in 2024 and bear interest at rate of 5.25
percent per annum for the first five years, 6.0 percent per annum for the sixth to tenth
years and 6.5 percent per annum for the eleventh to fifteenth years, payable quarterly.
The Bank has a call option to early redeem these debentures at par and has option to
postpone principal and/or interest payment date if the conditions as specified are met.
160 Annual Report 2011 Thanachart Bank Public Company Limited
79
(c) On 9 May 2008, the Bank issued 5,000,000 name registered subordinated, unsecured,
unconvertible debentures with no debenture holders’ representative, with a face value of
Baht 1,000 each. The debentures mature in 2015 and bear interests at rate of 5.1 percent
per annum for the first three years, and 6 percent per annum for the fourth to seventh
years, payable quarterly.
(d) On 3 April 2009, the Bank issued 2,000,000 name registered subordinated, unsecured,
unconvertible debentures with debenture holders’ representative, with a face value of Baht
1,000 each. The debentures mature in 2019 and bear interest at fixed interest rates of
5.25 percent per annum for the first three years, 5.75 percent per annum for the fourth to
seventh years, and 6.5 percent per annum for the eighth to tenth years, payable quarterly.
The Bank has a call option to early redeem these debentures at par if the conditions
specified are met.
(e) On 2 April 2010, the Bank issued 6,000,000 name registered subordinated, unsecured,
unconvertible debentures with debenture holders’ representative, with a face value of Baht
1,000 each. The debenture mature in 2020 and bear interests at fixed interest rate of 5
percent per annum for the first five years and 5.5 percent per annum for the sixth to tenth
years, payable quarterly. The Bank has a call option to early redeem these debentures at
par if the conditions specified are met.
(f) On 19 June 2009, SCIB issued 10,000,000 unsecured subordinated debentures with a
face value of Baht 1,000 each. The debentures mature in 2019 and bear interests at fixed
interest rates of 5.50 percent per annum for the first three years, 6.00 percent per annum
for the fourth to seventh years, and 6.50 percent per annum for the eighth to tenth years.
Interest is payable quarterly. SCIB has a call option to early redeem these debentures at
par if the conditions specified are met. On 20 June 2011, SCIB early redeemed all
debentures at par value with no gain (loss) on the transaction. Thanachart Bank has issue
debentures to replace these SCIB’s debentures with the same interest rates, terms, and
conditions. The BOT has given approval in principle to counting such subordinated
debentures as Tire II of Thanachart Bank when the entire business transfer between
Thanachart Bank and SCIB is completed. This is in accordance with the BOT’s letter for
the entire business of SCIB.
Annual Report 2011 Thanachart Bank Public Company Limited 161
80
24. Provisions
(Unit: Million Baht)
Consolidated financial statement
For the year ended 31 December 2011
Loss from
litigation
Employee
benefits
Obligations of
off-balance Others Total
Balance as at 1 January 2011 89 43 285 483 900
The cumulative effect of the changes
in the accounting policy for
employee benefits - 2,272 - - 2,272
Increase from purchase of subsidiary
company - 3 - - 3
Increase during the year 2 360 39 90 491
Decrease from disposal of a
subsidiary company (1) (3) - - (4)
Utilised (1) (387) - (57) (445)
Reversal of provisions (4) (335) (54) - (393)
Balance as at 31 December 2011 85 1,953 270 516 2,824
(Unit: Million Baht)
Consolidated financial statement
For the year ended 31 December 2010
Loss from
litigation
Obligations of off-
balance Others Total
Balance as at 1 January 2010 18 - 9 27
Increase from purchase of subsidiary
company 60 420 290 770
Increase during the year 11 - 297 308
Utilised - - (10) (10)
Reversal of provisions - (135) (60) (195)
Balance as at 31 December 2010 89 285 526 900
162 Annual Report 2011 Thanachart Bank Public Company Limited
81
(Unit: Million Baht)
Separate financial statement
For the year ended 31 December 2011
Loss from
litigation
Employee
benefits
Obligations
of off-
balance Others Total
Balance as at 1 January 2011 19 2 - 92 113
The cumulative effect of the changes
in the accounting policy for
employee benefits - 356 - - 356
Employee benefits for staff transferred
from SCIB - 1,395 - - 1,395
Increase from entire business transfer 64 259 231 402 956
Increase during the year 1 50 39 18 108
Utilised - (54) - - (54)
Reversal of provisions - (253) - - (253)
Balance as at 31 December 2011 84 1,755 270 512 2,621
(Unit: Million Baht)
Separate financial statement
For the year ended 31 December 2010
Loss from
litigation Others Total
Balance as at 1 January 2010 18 4 22
Increase during the year 1 94 95
Utilised - (4) (4)
Balance as at 31 December 2010 19 94 113
Employee Benefits
Employee benefits under defined benefit plans recognised in part of profit or loss in the
statements of comprehensive income for the year ended 31 December 2011 consist of the
followings:
(Unit: Million Baht)
Consolidated financial
statement
Separate financial
statement
2011 2011
Current service cost 149 82
Interest cost 81 41
Loss on curtailment (160) -
Termination benefits 337 -
Actuarial gain (47) (73)
Total employee benefits 360 50
Annual Report 2011 Thanachart Bank Public Company Limited 163
82
The principal actuarial assumptions used to calculate the defined benefit obligations are as
follows:
(Percent per annum)
Consolidated financial
statement
Separate financial
statement
2011 2011
Discount rate 4.07 - 4.70 4.09
Future salary increase rate 6.00 - 6.50 6.00
Average staff turnover rate (depending on age) 0.00 - 42.11 0.85 - 21.51
Inflation rate 3.00 -
During the year 2011, Thanachart Bank received the transfer of 6,368 employees from
SCIB, this accorded with a resolution passed by a Board of Directors’ meeting of
Thanachart Bank and is approved by the BOT. SCIB also transferred employee benefits
liabilities related to the transferred employees amounting to Baht 1,395 million to
Thanachart Bank, together with another Baht 337 million of accrued employee expenses.
Under the employee transfer agreement, rights and benefits of employees will be
determined counting consecutively from their existing length of service.
25. Insurance contract liabilities
(Unit: Million Baht)
Consolidated financial
statement
Separate financial
statement
2011 2010 2011 2010
Life policy reserve 29,831 25,961 - -
Loss reserve and outstanding claims 3,441 1,141 - -
Unearned premium reserve 2,659 2,461 - -
Other liabilities under insurance policies 223 211 - -
Total 36,154 29,774 - -
Subsidiaries presented life policy reserve under long-term insurance contracts at the
higher amount of the net level premium reserve method (NPV) and the gross level
premium method (GPV). As a result of this change, life insurance policy reserve liabilities
of a subsidiary company as at 31 December 2011 was increased by Baht 649 million,
which was recognised in profit or loss.
164 Annual Report 2011 Thanachart Bank Public Company Limited
83
From July to December 2011, there was widespread flooding in Thailand. The floods have
an effect to the parties insured by the subsidiary companies. However, the subsidiary
companies have assessed and recorded the impact of this situation in their financial
statements. They believe that no further significant loses will be incurred.
26. Other liabilities
(Unit: Million Baht)
Consolidated financial statements Separate financial statements
2011 2010 2011 2010
Other payables 1,253 912 1,038 249
Suspense cash received from account
receivables 435 731 435 731
Insurance premium payable 69 83 208 196
Unearned income from hire purchase 300 163 300 163
Deposit from derivative contracts - 1,762 - 348
Provision for income tax 330 568 330 568
Accrued interest payable 3,267 1,852 3,413 1,084
Corporate income tax payable 2,431 2,327 - 999
Accrued expense 3,855 3,137 3,078 1,421
Payable from clearing house 306 98 - -
Others 2,857 2,159 1,977 372
Total other liabilities 15,103 13,792 10,779 6,131
27. Share capital
During 8 - 19 April 2010, the Bank called up additional paid-up share capital of
3,579,045,631 shares with a par value of Baht 10 totaling Baht 35,790,456,310 and
registered an additional share capital on 30 April 2010, and as a result the Bank had
issued and paid-up share capital equals to Baht 55,136,649,030. The parent company
exercised both its own entitlement and the unexercised entitlement of the minority
shareholders, and as a result the parent company increased its shareholding from 50.92
percent to 50.96 percent.
Annual Report 2011 Thanachart Bank Public Company Limited 165
84
28. Other components of equity
(Unit: Million Baht)
Consolidated financial statements Separate financial statements
2011 2010 2011 2010
Surplus from business combination under
common control (123) (123) - -
Revaluation surplus (deficit) on
investments
Revaluation surplus on investments
Available-for-sale investments
Debt instruments 364 399 287 254
Equity instruments 488 742 143 70
Total 852 1,141 430 324
Revaluation deficit on investments
Available-for-sale investments
Debt instruments (252) (119) (184) (60)
Equity instruments (4) (3) (1) -
Held-to-maturity investments (transfer from
available-for-sale investments) (3) (71) (34) (94)
Total (259) (193) (219) (154)
Total revaluation surplus (deficit) on
investments 593 948 211 170
Share of other comprehensive income of
associates 143 323 - -
Total 613 1,148 211 170
29. Statutory reserve
Pursuant to Section 116 of the Public Limited Companies Act B.E. 2535, the Bank is required to set aside to a statutory reserve at least 5 percent of its net profit after deducting accumulated deficit brought forward (if any), until the reserve reaches 10 percent of the registered capital. The statutory reserve is not available for dividend distribution.
As at 31 December 2011, the Bank allocated Baht 333.4 million of net income for the year 2011 to the statutory reserve (2010: Baht 285.9 million).
166 Annual Report 2011 Thanachart Bank Public Company Limited
85
30. Capital funds
The primary objectives of the Bank’s capital management are to maintain the Bank’s ability to continue as a going concern and to maintain a capital adequacy ratio in accordance with the Act on Undertaking of Banking business B.E. 2551.
As at 31 December 2011 and 2010, capital funds of the Bank consist of the following:
(Unit: Million Baht)
2011 2010
Tier I
Issued and fully paid up share capital 55,137 55,137
Share premium 2,101 2,101
Perpetual subordinated hybrid bonds (Hybrid Tier I) 7,130 7,130
Statutory reserve 968 537
Retained earnings - unappropriated 12,042 6,430
Total 77,378 71,335
Less: goodwill (15,740) -
Total 61,638 71,335
Tier II
Subordinated debentures 26,000 17,000
Reserve for assets classified as normal 3,391 1,532
Total 29,391 18,532
Total Tier I and Tier II 91,029 89,867
Add: Net revaluation surplus on investment in equity securities 64 31
Total capital funds 91,093 89,898
On 25 August 2011, the Board of Directors’ meeting of Thanachart Bank passed a
resolution to allocate Baht 312 million of net income for the six-month period ended 30
June 2011 amounting to statutory reserve. The remaining net income of such period,
amounting Baht 5,930 million, was allocated as capital funds of the Bank.
In addition, the BOT granted a waiver for Thanachart Bank to hold more SCIB’s shares
than permitted by law, for the purposes of the business transfer. The BOT also permitted
the Bank not to include SCIB in the financial business group until the date of completion of
liquidation, while the computation of the ratio of the capital to risk assets and contingent
liabilities includes the assets and contingent liabilities of SCIB until the date of SCIB return
its banking license.
Annual Report 2011 Thanachart Bank Public Company Limited 167
86
As at 31 December 2011 and 2010, the Bank’s capital ratios, calculated based on the
BOT’s regulation relating to the calculation of capital funds announced by the BOT, and
including additional permission from the BOT, are as follows:
2011 2010
Minimum Minimum
Capital ratio requirement Capital ratio requirement
of the Bank by BOT of the Bank by BOT
Total capital to risk assets (percent) 13.72 8.50 14.75 8.50
Total Tier I to risk assets (percent) 9.28 4.25 11.71 4.25
The Bank will disclose qualitative and quantitative information regarding capital
maintenance as at 31 December 2011 in accordance with the Notification of the Bank of
Thailand Re: Public Disclosure of Capital Maintenance Information for Commercial Banks
on its website at www.thanachartbank.co.th, within April 2012. In addition, the Bank had
disclosed the latest capital maintenance information as at 30 June 2011 on its website
since October 2011.
31. Dividends
Dividends Approved by Total dividends Dividend per share
Million Baht Baht
Dividends on net income for
the year 2010
Annual General Meeting of the
Shareholders on 7 April 2011 2,205 0.40
Dividends on net income for
the year 2009
Annual General Meeting of the
Shareholders on 7 April 2010 1,083 0.56
32. Interest income
Interest income for the years ended 31 December 2011 and 2010 consisted of the
following:
(Unit: Million Baht)
Consolidated Separate
financial statements financial statements
2011 2010 2011 2010
Interbank and money market items 2,237 1,054 1,365 403
Investments and trading transactions 78 82 24 13
Investments in debt securities 4,114 3,653 2,023 1,708
Loans 20,774 14,760 9,413 4,336
Hire purchase and financial lease 17,011 15,232 16,722 14,937
Total interest income 44,214 34,781 29,547 21,397
168 Annual Report 2011 Thanachart Bank Public Company Limited
87
33. Interest expenses
Interest expenses for the years ended 31 December 2011 and 2010 consisted of the
following:
(Unit: Million Baht)
Consolidated Separate
financial statements financial statements
2011 2010 2011 2010
Deposits 8,973 5,960 5,766 3,512
Interbank and money market items 1,289 506 1,555 293
Contribution fee to the Deposit Protection
Agency 1,955 1,914 1,132 1,034
Issues debt instruments
- Subordinated debentures 2,145 1,727 1,889 1,312
- Others 5,432 1,455 4,606 1,217
Borrowings 1 3 - -
Fees and services expense on borrowing 3 1 11 7
Total interest expenses 19,798 11,566 14,959 7,375
34. Fees and service income
Fees and service income for the years ended 31 December 2011 and 2010 consisted of
the following:
(Unit: Million Baht)
Consolidated Separate
financial statements financial statements
2011 2010 2011 2010
Fees and service income
Acceptance, aval and guarantees 271 228 102 46
ATM and electronic banking services 669 575 161 104
Hire purchase fee income 901 857 875 830
Insurance brokerage fee income 222 226 982 733
Management fees 479 533 6 5
Credit card fee 698 395 366 96
Others 618 555 412 216
Total fees and service income 3,858 3,369 2,904 2,030
Fees and service expenses (500) (519) (144) (45)
Net fees and service income 3,358 2,850 2,760 1,985
Annual Report 2011 Thanachart Bank Public Company Limited 169
88
35. Gains on trading and foreign exchange transactions
Gains on trading and foreign exchange transactions for the years ended 31 December
2011 and 2010 consisted of the following:
(Unit: Million Baht)
Consolidated Separate
financial statements financial statements
2011 2010 2011 2010
Foreign exchange and derivatives relating to
foreign exchange 871 360 518 132
Foreign exchange and derivatives relating to
interest rate 1 1 - -
Debt securities 21 (6) 46 12
Equity securities (5) 211 - -
Others 3 4 - -
Total 891 570 564 144
36. Gains (losses) on investments
Gains (losses) on investments for the years ended 31 December 2011 and 2010 consisted
of the following:
(Unit: Million Baht)
Consolidated
financial statements
Separate
financial statements
2011 2010 2011 2010
Gains (losses) on disposal
Available-for-sale securities 182 267 81 108
Held-to-maturity securities (1) 2 - -
Other investments 80 - (17) -
Investments in associated and subsidiary
companies 87 24 - 22
Gain on revaluation of investment at equity
from business combination 33 - - -
Reversal of impairment on general investments
(losses) (41) 21 (4) 18
Gain on transfer of investments 372 - - -
Total 712 314 60 148
170 Annual Report 2011 Thanachart Bank Public Company Limited
89
During the year, a subsidiary company has transferred investment which classified as held-to-maturity debt securities amounting to Baht 8,439 million to be trading in order to comply with the measurement of liabilities reserve for long-term insurance contracts of which the value of the liabilities reserve is depend on the changes in discounted market interest rate. As a result of this transfer, a gain of Baht 329 million was recognised in profit or loss. The subsidiary company also transferred investments classified as available-for-sale securities amounting to Baht 2,000 million to be trading with a gain on transfer of Baht 43 million.
37. Directors’ remuneration
Directors’ remuneration represents the benefits paid to the directors of the Bank and
public subsidiary companies in accordance with Section 90 of the Public Limited
Companies Act, exclusive of salaries and related benefits payable to directors who hold
executive positions but including the payment of remuneration amounting to Baht 19
million to the Bank’s and its subsidiaries’ directors, which was approved by the Annual
General Meeting of Shareholders of the Bank and its subsidiaries.
38. Impairment loss of loans and debt securities
Impairment loss of loans and debt securities for the years ended 31 December 2011 and
2010 consisted of the following:
(Unit: Million Baht)
Consolidated Separate
financial statements financial statements
2011 2010 2011 2010
Bad debts and doubtful accounts
Loans to customers 2,548 2,035 1,388 (1) 1,159
Interbank and money market items 31 38 59 (1) -
Amortisation of revaluation allowance for
debts restructured during the year (40) (2) (40) (2)
Loss from debt restructuring (reversal) (35) (2) 78 15 123
Total 2,504 2,149 1,422 1,280
(1) Net of gain on revaluation adjustment on the receivables which were transferred from SCIB after deduction of additional allowance for
doubtful accounts for those receivables. (2) Net of gain on revaluation adjustment on the receivables which were transferred from SCIB after deduction of additional loss on debt
restructuring for those receivables.
Annual Report 2011 Thanachart Bank Public Company Limited 171
90
39. Income tax expense
Corporate income tax was calculated on profit for the year, after adding back and
deducting with expenses and provisions which are disallowable for tax computation
purposes and deducting income which is exempted for tax computation purposes.
The Bank has no corporate income tax liability for the year 2011 since after adding back
and deducting expenses and/or income which are disallowed for tax computation
purposes, there is a net loss. Therefore, corporate income tax that was paid during the
year 2011 will be presented as “Prepaid corporate income tax” in the statement of financial
position.
40. Components of other comprehensive income
Components of other comprehensive income for the years ended 31 December 2011 and
2010 of the following:
(Unit: Million Baht)
Consolidated
financial statements
Separate
financial statements
2011 2010 2011 2010
Other comprehensive income
Available-for-sale investments:
Unrealised gains (losses) during the year (495) 421 (40) (152)
Less: Reclassification of adjustment for the realised
losses that included in profit or loss 182 267 81 108
Gain from reclassified type of investments (43) - - -
(356) 688 41 (44)
Share of other comprehensive income in associated
companies (loss) (180) 204 - -
Other comprehensive income (loss) for the year (536) 892 41 (44)
172 Annual Report 2011 Thanachart Bank Public Company Limited
91
41. Earnings per share
Basic earnings per share is calculated by dividing profit for the years attributable to equity
holders of the Bank (excluding other comprehensive income) by the weighted average
number of ordinary shares in issue during the year.
For the years ended 31 December
Consolidated financial statements Separate financial statements
2011 2010 2011 2010
Profit for the period (Million Baht) 7,671 8,777 6,668 5,719
Weighted average number of shares (Million shares) 5,514 4,563 5,514 4,563
Earnings per share (Baht/share) 1.39 1.92 1.21 1.25
42. Provident fund
The Bank, its subsidiaries and its employees have jointly established a provident fund in
accordance with the Provident Fund Act B.E. 2530. Employees contributed to the fund
monthly, at rates of 3 -10 percent of their basic salaries, and the Bank and its subsidiaries
contributed to the fund at stipulated rates. The fund will be paid to the employees upon
termination of employment in accordance with the fund rules. During the year 2011, the
Bank and its subsidiaries contributed Baht 443 million to the fund (separate financial
statements: Baht 253 million).
Annual Report 2011 Thanachart Bank Public Company Limited 173
92
43. Related party transactions
During the years, the Bank and its subsidiaries had significant business transactions with
related parties. These transactions have been concluded on commercial terms and bases
agreed upon in the ordinary course of businesses between the Bank and those
companies. Below is a summary of those transactions.
(Unit: Million Baht)
For the years ended 31 December
Consolidated
financial statements
Separate
financial statements Transfer pricing policy
2011 2010 2011 2010 (For the year 2011)
Transactions occurred during
the years
Parent company
Purchase of investment in
subsidiary company
- 3,411 - 3,411
Purchase of debt securities 158 15,463 158 15,417 At market price
Sales of debt securities 13,792 38,856 13,792 38,856 At market price
(Related gain) 1 3 1 3
Purchase of subordinated
debentures
- 3,057 - 3,057
Sales of subordinated debentures - 3,636 - 3,636
Purchase of fixed assets and other
assets
100 109 100 109 At the rate agreed under the contract
which based on appraisal value
Interest income 4 6 - - At interest rate of 4.7 - 9.15 percent per
annum
Fee and service income 1 14 - 2
Insurance/Life insurance income - 1 - -
Income on supporting service 26 39 26 39 At the rate agreed under the service
contract
Other income 2 10 - -
Interest expenses 300 262 300 262 At interest rate of 0.75 - 2.90 and 8.00
percent per annum
Rental expenses 115 152 93 127 At the rate agreed under the rental
contracts
Other expenses 48 43 44 41
Dividend payment 1,124 552 1,124 552 As declared
174 Annual Report 2011 Thanachart Bank Public Company Limited
93
(Unit: Million Baht)
For the years ended 31 December
Consolidated
financial statements
Separate
financial statements Transfer pricing policy
2011 2010 2011 2010 (For the year 2011)
Transactions occurred during the
years (continued)
Subsidiary companies
Purchase of debt securities 35,358 58,436 7,057 4,953 At market price
Sales of debt securities 35,736 58,234 28,188 51,688 At market price
(Related gain (loss)) (9) 18 41 4
Purchase of investments in equity
instruments
143 - 143 - At market price
Purchase/sales of forward
exchange contracts
6,147 1,227 6,147 1,227 At market price
(Related gain) 21 - 21 -
Purchase of fixed assets and other
assets
- 14 - 3
Sales of fixed assets - 14 - -
Consulting fee on purchase of
investment in subsidiary
- - - 34
Interest income - - 196 80 At interest rate of 2.45 – 4.10 and 6.13
– 7.90 percent per annum
Dividend income - - 1,532 525 As declared
Fee and service income - - 153 53 At the rate agreed under the service
contract
Discount income on insurance
premium
- - 888 658
Income on supporting service - - 1,018 222 At the rate agreed under the service
contract
Other income - - - 8
Interest expenses - - 661 40 At interest rate of 0.25 – 4.40 percent
per annum
Fee and service expenses - - 10 3 At the rate agreed under the service
contracts
Rental expenses - - 7 6 At the rate agreed under the rental
contracts
Other expenses - - 167 164
Annual Report 2011 Thanachart Bank Public Company Limited 175
94
(Unit: Million Baht)
For the years ended 31 December
Consolidated
financial statements
Separate
financial statements Transfer pricing policy
2011 2010 2011 2010 (For the year 2011)
Transactions occurred during the
years (continued)
Associated companies
Purchase of investment in
subsidiary company
- 161 - 161
Purchase of debt securities 80 350 - 350 At market price
Sales of debt securities 360 17,046 300 16,492 At market price
Sales of investment in a subsidiary
company
- 213 - 213
(Related gain) - 24 - 22
Interest income 369 199 59 - At interest rate of 2.25 - 3.25 and 3.75 -
7.25 percent per annum
Fee and service income 7 14 - - At the rate agreed under the service
contract
Non-life insurance/Life insurance
income
- 1 - -
Other income - 2 - -
Interest expenses 82 70 81 69 At interest rate of 0.25 - 2.80 and 5.25
percent per annum
Rental expenses 13 11 12 11 At the rate agreed under the rental
contracts
Insurance premium/life insurance
premium expenses
1 4 - - At the rate agreed under the contract
Other expenses 12 12 8 9
Related companies
Purchase of investment in
subsidiary company
- 6,228 - 6,228
Purchase of debt securities 1,139 3,229 1,139 3,229
Sales of debt securities 18,447 3,937 18,447 3,937 At market price
(Related gain) 2 1 2 1
Purchase/sales of forward
exchange contracts
443,693 179,266 437,552 179,266 At market price
(Related loss) (114) (9) (59) (9)
Sales of fixed assets and other
assets
- 58 - 58
(Related gain) - 12 - 12
Sales of property foreclosed - 373 - 373
(Related gain) - 37 - 37
176 Annual Report 2011 Thanachart Bank Public Company Limited
95
(Unit: Million Baht)
For the years ended 31 December
Consolidated
financial statements
Separate
financial statements Transfer pricing policy
2011 2010 2011 2010 (For the year 2011)
Transactions occurred during the
years (continued)
Related companies (continued)
Interest income 658 286 241 113 At interest rate of 2.00 - 7.90 percent
per annum
Dividend income 33 47 2 3 As declared
Fee and service income 7 19 - - At the rate agreed under the service
contract
Insurance/Life insurance income 4 - - -
Income on supporting service 17 17 17 17 At the rate agreed under the service
contract
Other income 24 33 2 2
Interest expenses 431 297 355 262 At interest rate of 0.125 – 6.10, 7.40 ,
8.00 and 8.60 percent per annum
Rental expenses 125 96 88 58 At the rate agreed under the rental
contracts
Insurance premium/life insurance
premium expenses
- 125 - -
Fee and service expenses 1 91 - - At the rate agreed under the contract
Other expenses 17 46 8 31
Dividend payment 1,113 558 1,081 531 As declared
In addition to the transactions mentioned above, during the year ended 31 December
2011, SCIB transferred non-performing loans amounting to Baht 9,062 million and
properties foreclosed amounting to Baht 3,083 million to TS Asset Management Co., Ltd.,
a subsidiary company. The transfer prices are mutually agreed with reference to financial
advisors have opinion that they are fair values.
Annual Report 2011 Thanachart Bank Public Company Limited 177
96
The outstanding balances of the above transactions during the years ended 31 December
2011 and 2010 have been shown at the average balance at the end of each month as
follows:
(Unit: Million Baht)
Consolidated Separate
financial statements financial statements
2011 2010 2011 2010
Parent company
Loans to customers 19 22 - -
Deposits 161 442 161 441
Debt issued and borrowings 3,896 5,901 3,896 5,901
Subsidiary companies
Interbank and money market items (assets) - - 397 3,931
Loans to customers - - 4,470 1,760
Deposits - - 3,646 466
Interbank and money market items (liabilities) - - 18,045 626
Debt issued and borrowings - - 2,179 1,010
Associated companies
Loans to customers 7,512 5,757 2,434 -
Deposits 297 386 166 253
Debt issued and borrowings 2,265 1,723 2,019 1,477
Related companies
Interbank and money market items (assets) 1,626 2,874 435 287
Loans to customers 17,481 9,131 6,745 3,538
Deposits 1,266 4,536 1,087 4,269
Interbank and money market items (liabilities) 7,581 6,598 6,922 6,478
Debt issued and borrowings 6,936 3,846 6,586 3,340
178 Annual Report 2011 Thanachart Bank Public Company Limited
97
As at 31 December 2011 and 2010, the significant outstanding balances of the above
transactions are as follows:
(Unit: Million Baht)
Consolidated financial statements
2011
Assets Liabilities
Interbank
and money
market
items
Investments
- debt
securities
Loans to
customers
and interest
receivables
Other
assets Deposits
Interbank
and money
market
items
Debt
issued and
borrowings
Other
liabilities Commitments
Parent company
Thanachart Capital Plc. - - 17 24 71 - 3,644 87 -
Associated companies
MBK Plc. - - - 8 93 - 1,500 - -
Siam Samsung Life
Insurance Co., Ltd. - - - - 26 - 100 - -
Related companies
Seacon Development Plc. - - 591 1 - - - - -
Thai Hua Rubber Plc. - - 1,993 - 195 - 150 1 10
Synphaet Co., Ltd. - - 796 - 9 - - - -
The Bank of Nova Scotia 1,122 - - 26 - 7,933 3,494 102 2,580
Srithai Superware Plc. - - 577 - 15 - - - 76
Krungthai Card Plc. - 582 3,533 - 7 - - - -
Chaimongkol Refinery
Co., Ltd. - - 2,471 - - - - - 3
Other related companies - - 1,324 194 851 35 932 317 305
1,122 582 11,302 253 1,267 7,968 9,820 507 2,974
Annual Report 2011 Thanachart Bank Public Company Limited 179
98
(Unit: Million Baht)
Consolidated financial statements
2010
Assets Liabilities
Interbank
and money
market
items
Investments
- debt
securities
Loans to
customers
and interest
receivables
Other
assets Deposits
Interbank
and money
market
items
Debt
issued and
borrowings
Other
liabilities Commitments
Parent company
Thanachart Capital Plc. - 45 21 24 61 - 3,636 71 -
Associated companies
MBK Plc. - - - 9 144 - 1,800 10 30
Ratchthani Leasing Plc. - - 6,503 - 37 - - - -
Siam Samsung Life
Insurance Co., Ltd. - - - - 98 - - - -
Siam City Insurance
Co., Ltd. - - - - 98 - - - -
Related companies
Seacon Development Plc. - - 736 1 1 - - - 58
Thai Hua Rubber Plc. - - 1,777 - 191 - 150 1 1,359
Krung Thai IBJ Leasing
Co., Ltd. - - 593 - - - - - -
Advanced Info Service Plc. - 244 24 6 2,041 - 200 39 19
Synphaet Co., Ltd. - - 654 - 9 - - - 28
Government Savings Bank 4,056 - - 1 - 30 500 224 -
The Bank of Nova Scotia 435 - - 3 - 6,853 3,494 76 1,458
Krungthai Card Plc. - 964 9,344 9 4 - - - -
Wangkanai Sugar Co., Ltd. - - 1,658 - 15 - - - 48
Chaimongkol Refinery
Co., Ltd. - - 2,840 - 95 - - - 3
Other related companies 320 175 1,575 302 1,076 37 780 18 227
4,811 1,428 25,725 355 3,870 6,920 10,560 439 3,230
180 Annual Report 2011 Thanachart Bank Public Company Limited
99
(Unit: Million Baht)
Separate financial statements
2011
Assets Liabilities
Interbank
and money
market
items
Investments
- debt
securities
Loans to
customers
and interest
receivables
Other
assets Deposits
Interbank
and money
market
items
Debt
issued and
borrowings
Other
liabilities Commitments
Parent company
Thanachart Capital Plc. - - - 19 71 - 3,643 86 -
Subsidiary companies
Siam City Bank Plc. - - - - 34,298 - - 85 -
Thanachart Group Leasing
Co., Ltd. - - 353 - 6 - - - -
Thanachart Securities Plc. 150 - - 3 - 55 - 7 737
Thanachart Insurance
Co., Ltd. - - - 95 241 - 1,124 170 10
Thanachart Life Assurance
Co., Ltd. - - - 57 - 215 2,000 62 -
Thanachart Broker
Co., Ltd. - - - - 114 - 140 - -
TS Asset Management
Co., Ltd. - - 9,824 12 872 - - 46 -
Siam City Life Assurance
Co., Ltd. - - - 2 - 131 885 20 -
Ratchthani Leasing Plc. - - 7,870 - 24 - - - 17
Other subsidiary
companies - - 22 22 56 5 - 67 -
Associated company
MBK Plc. - - - 8 93 - 1,500 11 -
Siam Samsung Life
Insurance Co., Ltd. - - - - 26 - 100 - -
Related companies
Seacon Development Plc. - - 591 1 - - - - -
Thai Hua Rubber Plc. - - 1,993 - 195 - 150 1 10
Synphaet Co., Ltd. - - 796 - 9 - - - -
Krungthai Card Plc. - 582 3,533 - 7 - - - -
Srithai Superware Plc. - - 577 - 15 - - - 76
The Bank of Nova Scotia 1,122 - - 21 - 7,933 3,494 89 2,580
Other related companies - - 751 157 851 34 932 115 84
1,272 582 26,310 397 36,878 8,373 13,968 759 3,514
Annual Report 2011 Thanachart Bank Public Company Limited 181
100
(Unit: Million Baht)
Separate financial statements
2010
Assets Liabilities
Interbank
and money
market
items
Investments
- debt
securities
Loans to
customers
and interest
receivables
Other
assets Deposits
Interbank
and money
market
items
Debt
issued and
borrowings
Other
liabilities Commitments
Parent company
Thanachart Capital Plc. - - - 622 60 - 3,636 70 -
Subsidiary companies
Siam City Bank Plc. 25 - - - - 9 - - -
Thanachart Group Leasing
Co., Ltd. - - 934 - 9 - - - -
Thanachart Securities Plc. - - - 2 - 624 - 13 30
Thanachart Insurance
Co., Ltd. - - - 46 173 - 166 116 10
Thanachart Life Assurance
Co., Ltd. - - - 218 - 443 - 51 -
Thanachart Broker
Co., Ltd. - - - 100 127 - - - -
Other subsidiary companies - - 52 2 45 19 - 61 -
Associated company
MBK Plc. - - - 8 139 - 1,800 10 30
Related companies
Seacon Development Plc. - - 736 1 1 - - - 58
Thai Hua Rubber Plc. - - 1,677 - 153 - 150 - 1,358
Advanced Info Service Plc. - 4 23 - 2,039 - 200 3 19
Synphaet Co., Ltd. - - 654 - 9 - - - 28
Krungthai Card Plc. - - 2,013 - 4 - - - -
The Bank of Nova Scotia 430 - - 3 - 5,948 3,494 76 1,458
Other related companies 11 - 810 274 900 38 780 223 11
466 4 6,899 1,276 3,659 7,081 10,226 623 3,002
As at 31 December 2011 and 2010, the Bank has loans to subsidiary companies as
mentioned in Note 12.11 to the financial statements.
As at 31 December 2011, the Bank and its subsidiaries have investments amounting to
Baht 672 million (Baht 252 million in the separate financial statements) in related
companies in which they are related by means of members of their management being
shareholders and/or directors of those companies (2010: Baht 596 million in the
consolidated financial statements and Baht 62 million in the separate financial
statements).
182 Annual Report 2011 Thanachart Bank Public Company Limited
101
As at 31 December 2011 and 2010, the Bank and its subsidiaries have the following
related parties transactions with executive employees of the Bank and companies within
Thanachart Group from management level up, including related persons who together with
these employees:
(Unit: Million Baht)
Consolidated Separate
financial statements financial statements
2011 2010 2011 2010
Loans 49 59 45 24
Deposits 535 487 535 386
Directors and management’s remuneration
During the years 2011 and 2010 the Bank and its subsidiaries paid the following benefits to
their key management personnel, including directors, totaled 147 persons and 177 persons
respectively (the separate financial statements: 50 persons and 34 persons respectively):
(Unit: Million Baht)
Consolidated
financial statements
Separate
financial statements
2011 2010 2011 2010
Short-term employee benefits 597 495 254 162
Post-employment benefits 10 - 3 -
Termination benefits 26 - - -
633 495 257 162
Annual Report 2011 Thanachart Bank Public Company Limited 183
102
44. Financial information by segment
44.1 Financial position and results of operations classified by business activity
The financial position as at 31 December 2011 and 2010, and the results of operations for
the years ended 31 December 2011 and 2010, classified by domestic and foreign
operations, are as follow:
(Unit: Million Baht)
Consolidated financial statements
2011
Domestic Foreign
operations operations Eliminations Total
Total assets 986,181 15,245 (115,366) 886,060
Interbank and money market items (assets) 106,642 8,066 (51,507) 63,201
Investments 145,222 7,132 (4,009) 148,345
Investments in subsidiary and associated
companies 42,552 - (41,129) 1,423
Loans to customers and accrued interest
receivables 628,174 - (18,271) 609,903
Deposits 471,618 - (35,578) 436,040
Interbank and money market items (liabilities) 78,910 15,010 (33,769) 60,151
Debt issued and borrowings 258,446 - (4,149) 254,297
(Unit: Million Baht)
Consolidated financial statements
2010
Domestic Foreign
operations operations Eliminations Total
Total assets 928,250 10,758 (66,005) 873,003
Interbank and money market items (assets) 98,005 196 (13,141) 85,060
Investments 126,284 10,505 3,233 140,022
Investments in subsidiary and associated
companies 77,219 - (75,042) 2,177
Loans to customers and accrued interest
receivables 582,595 - (1,069) 581,526
Deposits 532,974 - (318) 532,656
Interbank and money market items (liabilities) 43,894 10,291 (13,640) 40,545
Debt issued and borrowings 175,115 - (166) 174,949
184 Annual Report 2011 Thanachart Bank Public Company Limited
103
(Unit: Million Baht)
Consolidated financial statements
2011
Domestic Foreign
operations operations Eliminations Total
Interest income 45,076 218 (1,080) 44,214
Interest expenses (20,661) (37) 900 (19,798)
Net interest income 24,415 181 (180) 24,416
Net fee and service income (losses) 4,727 (4) (1,365) 3,358
Net insurance/Life insurance income 897 - 1,231 2,128
Other operating income 12,824 39 (7,754) 5,109
Other operating expenses (21,909) - 32 (21,877)
Impairment loss of loans and debt securities (2,525) - 21 (2,504)
Corporate income tax (2,948) - - (2,948)
Income before non-controlling interests 15,481 216 (8,015) 7,682
(Unit: Million Baht) Consolidated financial statements
2010
Domestic Foreign
operations operations Eliminations Total
Interest income 35,056 274 (549) 34,781
Interest expenses (11,695) (47) 176 (11,566)
Net interest income 23,361 227 (373) 23,215
Net fee and service income (losses) 3,992 - (1,142) 2,850
Net insurance/Life insurance income 1,447 - 905 2,352
Other operating income 5,774 15 (1,534) 4,255
Other operating expenses (17,272) (3) 452 (16,823)
Impairment loss of loans and debt securities (2,130) - (19) (2,149)
Corporate income tax (4,548) - - (4,548)
Income before non-controlling interests 10,624 239 (1,711) 9,152
Annual Report 2011 Thanachart Bank Public Company Limited 185
104
(Unit: Million Baht)
Separate financial statements
2011
Domestic Foreign
operations operations Eliminations Total
Total assets 877,959 15,245 (15,151) 878,053
Interbank and money market items (assets) 70,048 8,066 (15,151) 62,963
Investments 107,409 7,132 - 114,541
Investments in subsidiary and associated
companies 40,842 - - 40,842
Loans to customers and accrued interest
receivables 604,770 - - 604,770
Deposits 471,618 - - 471,618
Interbank and money market items (liabilities) 59,424 15,010 (15,151) 59,283
Debt issued and borrowings 257,503 - - 257,503
(Unit: Million Baht) Separate financial statements
2011
Domestic Foreign
operations operations Eliminations Total
Interest income 29,519 40 (11) 29,548
Interest expenses (14,959) (11) 11 (14,959)
Net interest income 14,560 29 - 14,589
Net fee and service income 2,760 - - 2,760
Other operating income 4,412 - - 4,412
Other operating expenses (13,671) - - (13,671)
Impairment loss of loans and debt securities (1,422) - - (1,422)
Income before non-controlling interests 6,639 29 - 6,668
The financial position as at 31 December 2010 and the results of operations for the year
then ended, per separate financial statements are the result of domestic operations only.
186 Annual Report 2011 Thanachart Bank Public Company Limited
105
44.2 Financial positions and results of operations classified by business type
The Bank and its subsidiaries’ business operations involve 6 principal segments:
(1) Banking business; (2) Securities business; (3) Life insurance business; (4) Non-life
insurance business; (5) Asset management business; and (6) Hire purchase and finance
lease business. Below is the consolidated financial information of the Bank and its
subsidiaries by segment.
(Unit: Million Baht)
For the year ended 31 December 2011
Banking
business
Securities
business
Life
insurance
business
Non-life
insurance
business
Asset
managemen
t business
Hire
purchase/
finance
lease
business
Other
busines
s Eliminations Consolidated
Interest income 43,225 194 1,143 122 273 175 125 (1,043) 44,214
Interest expenses (20,440) (17) - - (85) (98) (21) 863 (19,798)
Net interest income 22,785 177 1,143 122 188 77 104 (180) 24,416
Net fee and service income
(losses) 3,946 504 (16) (5) - 9 285 (1,365) 3,358
Net insurance income - - (317) 1,214 - - - 1,231 2,128
Other operating income 10,682 1,359 501 43 32 12 234 (7,754) 5,109
Other operating expenses (18,897) (1,397) (467) (636) (119) (28) (365) 32 (21,877)
Impairment loss of loans
and debt securities (2,706) - - - 220 (37) (2) 21 (2,504)
Corporate income tax (1,873) (170) (426) (255) (141) (21) (62) - (2,948)
Income before
non-controlling interest 13,937 473 418 483 180 12 194 (8,015) 7,682
(Unit: Million Baht)
For the year ended 31 December 2010
Banking
business
Securities
business
Life
insurance
business
Non-life
insurance
business
Other
business Eliminations Consolidated
Interest income 33,961 129 829 60 304 (502) 34,781
Interest expenses (11,652) (5) - - (38) 129 (11,566)
Net interest income 22,309 124 829 60 266 (373) 23,215
Net fee and service income
(losses) 3,242 547 (120) (4) 327 (1,142) 2,850
Net insurance income - - 579 868 - 905 2,352
Other operating income 3,703 1,504 312 52 218 (1,534) 4,255
Other operating expenses (14,579) (1,438) (379) (474) (405) 452 (16,823)
Impairment loss of loans and
debt securities (2,159) - - - 29 (19) (2,149)
Corporate income tax (3,576) (216) (442) (208) (106) - (4,548)
Income before
non-controlling interests 8,940 521 779 294 329 (1,711) 9,152
Annual Report 2011 Thanachart Bank Public Company Limited 187
106
(Unit: Million Baht)
As at 31 December 2011
Banking
business
Securities
business
Life
insurance
business
Non-life
insurance
business
Asset
management
business
Hire
purchase/
finance
lease
business
Other
business Eliminations Consolidated
Interbank and money
market items 97,346 376 359 233 872 50 321 (36,356) 63,201
Investments 114,541 223 32,814 4,776 - - - (4,009) 148,345
Investments in subsidiary
and associated
companies 40,842 667 678 303 - - 62 (41,129) 1,423
Loans to customers and
accrued interest
receivable - net 604,770 1,953 99 - 8,267 12,176 909 (18,271) 609,903
Land, premises and
equipment - net 8,365 54 155 106 - 45 17 17 8,759
Other assets 46,572 966 798 3,290 3,128 77 65 (467) 54,429
Total assets 912,436 4,239 34,903 8,708 12,267 12,348 1,374 (100,215) 886,060
(Unit: Million Baht)
As at 31 December 2010
Banking
business
Securities
business
Life
insurance
business
Non-life
insurance
business
Other
business Eliminations Consolidated
Interbank and money market items 84,277 1,684 1,263 296 197 (2,657) 85,060
Investments 103,227 767 28,794 3,801 200 3,233 140,022
Investments in subsidiary and
associated companies 75,271 763 776 347 62 (75,042) 2,177
Loans to customers and accrued
interest receivable - net 579,541 1,345 58 - 1,651 (1,069) 581,526
Land, premises and equipment -
net 8,731 79 128 19 29 - 8,986
Other assets 31,498 2,033 703 926 58 20,014 55,232
Total assets 882,545 6,671 31,722 5,389 2,197 (55,521) 873,003
188 Annual Report 2011 Thanachart Bank Public Company Limited
107
45. Encumbrance of assets
As at 31 December 2011 and 2010, the Bank and its subsidiaries have the following
assets, presented at book value, which are subject to restriction.
(Unit: Million Baht)
Consolidated
financial statements
Separate
financial statements
2011 2010 2011 2010
Investment in securities
Guarantee placed with the registrar 7,448 6,214 - -
Placed with court for stay of execution 20 283 20 20
Collateral for derivatives agreements - 190 - 190
Security for electricity usage - 13 - -
Property foreclosed
Immovable assets subject to buyback options
or first refusal rights 739 522 739 221
Immovable assets subject to purchase or sell
agreements with clients but currently being
settled in installments or through transfer of
ownership 963 1,554 923 31
9,170 8,776 1,682 462
46. Commitments and contingent liabilities
As at 31 December 2011 and 2010, significant commitments and contingent liabilities
consisted of:
46.1 Commitments (Unit: Million Baht)
Consolidated financial statements Separate financial statements
2011 2010 2011 2010
Aval to bills 386 654 386 238
Guarantees of loans 1,230 422 1,230 2
Liability under unmatured import bills 1,105 571 1,105 120
Letter of credits 2,626 2,456 2,626 672
Other obligations
Committed (but not draw) overdraft 28,548 45,740 28,548 5,757
Others 21,405 24,234 21,385 5,266
Total 55,300 74,077 55,280 12,055
In addition, the Bank and its subsidiaries have commitments in respect of foreign
exchange contracts, interest rate swap contracts, cross currency and interest rate swap
contracts and gold futures, as mentioned in Note 9 to the financial statements.
Annual Report 2011 Thanachart Bank Public Company Limited 189
108
46.2 During the years 2001 and 2002, the Bank entered into agreements to transfer non-
performing loans and receivables of approximately Baht 296 million to TAMC. The Bank is
still jointly liable for a share of the gains and losses arising from TAMC’s management of
these non-performing assets to be calculated at the end of the fifth year and tenth year,
counting from 1 July 2001. If there are losses, the Bank is liable for all initial losses up to
20 percent of the transfer price, while further losses of up to another 20 percent of the
transfer price are to be shared equally between the Bank and TAMC, and TAMC is liable
for all remaining losses. Such gains and losses will be determined based on the
accumulated value of collections made on the assets at the date of determination, minus
transfer costs and all operating expenses of TAMC, including interest on the debt
instruments issued to purchase the loans and receivables. The gain or loss cannot be
estimated at this stage, but as at 31 December 2011, the Bank has estimated its share of
the losses which may arise from the management of the non-performing assets at
approximately Baht 89 million. This amount has been presented as a part of provisions in
the statements of financial position.
46.3 The Bank has entered into agreements to sell housing loans/transfer rights to the
Secondary Mortgage Corporation, under which it is committed to compensate the
Corporation for losses from uncollected housing loans up to a maximum of 20 percent of
the valuation of the said receivables. As at 31 December 2011, its maximum obligation is
Baht 2 million.
46.4 As at 31 December 2011, the Bank and its subsidiaries have commitments to pay the
service fees in relation to property foreclosed, computer system services and other
services, including commitments in respect of office rental and related service fees under
long-term rental contracts, as follow:
(Unit: Million Baht)
Consolidated Separate
financial statements financial statements
Other Parent Other Parent Subsidiary
Year parties company parties company companies
2012 1,675 69 1,613 52 47
2013 1,253 9 1,196 2 -
2014 onward 4,043 1 3,609 1 -
In addition, the Bank has obligations to pay an administrative fee to a subsidiary company,
determined at actual cost plus a margin, for the period stipulated in the agreement.
190 Annual Report 2011 Thanachart Bank Public Company Limited
109
46.5 Commitments of SCIB from transfer of business from Bangkok Metropolitan Bank Public Company Limited and transfer of non-performing assets to Sukhumvit Asset Management Company Limited
SCIB entered into a business transfer agreement with Bangkok Metropolitan Bank Plc.
(“BMB”), effective from 1 April 2002, and transferred its assets and those of BMB to
Petchburi Asset Management Co., Ltd. (“PAM”), before they were transferred to Sukhumvit
Asset Management Co., Ltd. (“SAM”). Subsequently, SCIB transferred its entire business,
including commitments and agreements with PAM and SAM, to Thanachart Bank, effective
from 1 October 2011. Thanachart Bank thus has commitments as a result of such transfer.
However, the commitments of FIDF to SCIB have been transferred to/assumed by
Thanachart Bank as the purchaser of SCIB’s shares from FIDF. As at 31 December 2011,
outstanding obligations are summarised below.
a) There was an outstanding difference of Baht 93 million, as a result of the transfer of
assets to SAM. These comprised receivables awaiting collection and the difference is
presented under the caption of “Differences as a result of assets transferred to SAM”
in the statements of financial position. Such amounts mainly relate to transfers of
guarantee claims, for which there are pending issues with regard to proof the rights of
claim or the assets transferred being qualified in accordance with the conditions set
out in the transfer agreements. Such differences are now being examined and/or
negotiated among Thanachart Bank, SAM and the FIDF for final resolution.
As at 31 December 2011, such differences consist of (i) Baht 10 million of
transactions incurred directly by SCIB, for which full allowance for doubtful debts has
been set aside, and (ii) Baht 83 million of transactions incurred by BMB. If losses
arise on the latter and collection cannot be made from SAM, the FIDF will consider
compensating for all losses from (ii). Thanachart Bank’s management believes that
no significant further losses will arise since the transfers of those assets
corresponded to the principles of the agreements made among SCIB, BMB and SAM
and the agreement given by FIDF.
Annual Report 2011 Thanachart Bank Public Company Limited 191
110
b) SAM is re-examining certain previously transferred assets (both of SCIB and BMB) in
order to determine whether to transfer the assets back, to request price adjustments
or to request settlement together with interest. The major pending issue relates to the
proof of rights of claim over these assets.
As at 31 December 2011, the transferred assets which SAM is re-examining totaling
Baht 370 million consist of (i) Baht 28 million of transactions incurred directly by
SCIB, for which full allowance for doubtful loss has set aside under the caption of
“Provision for liabilities” in the statements of financial position, and (ii) Baht 342
million of transactions incurred by BMB. If losses arise from (ii), Thanachart Bank will
receive compensation for loss from FIDF and any adjusting transactions will be within
the limit of the funds set aside by FIDF to compensate losses in such cases,
amounting to approximately Baht 258 million. In addition, SAM is now negotiating
with Thanachart Bank to request interest payment on the assets transferred back, or
a price adjustment.
c) Lawsuits in which SCIB is involved as a result of the transfer of business from BMB
amounting to approximately Baht 11,280 million, as disclosed under contingent
liabilities in Note 47 to the financial statements.
d) Outstanding letters of guarantee.
The FIDF deposited an amount equal to the loss compensation limit with Thanachart Bank
in the FIDF’s account. Such deposit account is to compensate for losses incurred as a
result of the transfer of business from BMB, if such losses are actually incurred due to the
outstanding issues described in a), b), c) and d) above. As at 31 December 2011, the
deposit account of the FIDF with Thanachart Bank to fund the payment of compensation
for losses has an outstanding balance of approximately Baht 791 million. In addition, there
is a memorandum of agreement concerning conditions for additional loss compensation if
Thanachart Bank incurs losses in relation to the two lawsuits discussed in c), with claims
totaling Baht 9,965 million.
However, Thanachart Bank and SAM had a meeting and mutually agreed a resolution to
such pending issues. Thanachart Bank believes that no significant further losses will be
incurred, other than losses for which it has already set aside full allowance for doubtful
debts and/or amount that will compensate by FIDF.
192 Annual Report 2011 Thanachart Bank Public Company Limited
111
46.6 Commitments arising from sale of ordinary shares of Siam City Securities
As a result of the sale of all ordinary shares of Siam City Securities in August 2011, SCIB is obligated to pay compensation to indemnify the buyer from pending lawsuits including litigation in which Siam City Securities is pursuing collection of debt amounts and/or future litigation which made claims against its debtor that arose before the disposal date of such shares. Moreover, SCIB undertakes to compensate the buyer for any expenses incurred whenever the buyer or Siam City Securities provide SCIB with written notification of reasons for such compensation, together with evidence, for up to 3 years from the share transfer date. Such commitment of SCIB has transferred to Thanachart Bank at the date of the entire business transfer. However, Thanachart Bank’s management believes that no further losses will be incurred.
47. Litigation
As at 31 December 2011, the Bank and its subsidiaries have contingent liabilities amounting to approximately Baht 24,026 million (separate financial statements: Baht 22,940 million) in respect of litigation. However, the Bank and its subsidiaries’ management have already made certain provision for contingency losses, and for the remaining portion the management believes that no losses will result and therefore no liabilities are currently recorded.
Part of the contingent liabilities of the litigation mentioned above amounting to Baht 22,446 million represents claims filed against SCIB as defendant or co-defendant in lawsuits. These comprise both lawsuits directly involving SCIB and obligations arising as a result of the transfer of business from BMB; (i) Baht 11,166 million relates to SCIB’s own lawsuits, with Baht 8,594 million of this amount relating to a tort case in which the actual loss is only Baht 202 million. The Court of First Instance has already ordered the case be dismissed and it is in the process of being reviewed by the Supreme Court. The total sum of claims in cases relating directly to SCIB’s business, after deducting this tort case, is thus Baht 2,572 million; and (ii) The remaining portion of Baht 11,280 million represents cases in which SCIB is involved as a result of the transfer of business from BMB, and for which SCIB is entitled to compensation for actual losses incurred if such losses are in accordance with the conditions agreed with the FIDF (Baht 9,586 million of this amount relates a single case brought by a debtor that BMB had already transferred to SAM before SCIB received the transfer of business from BMB, and SCIB believes that the lawsuit has been brought against the wrong party, and not SCIB’s responsibility, SCIB’s management believes that SCIB has no liability in respect of such case.). As at 31 December 2011, SCIB had already made provisions for contingent liabilities totaling Baht 62 million for those lawsuits under (i) above where the Court of First Instance has already judged in favor of the plaintiff. SCIB’s management believes that there will be no significant future losses as a result of the remaining cases. However, all contingent liabilities and provisions for contingent liabilities were transferred from SCIB to Thanachart Bank on the date of the entire business transfer.
Annual Report 2011 Thanachart Bank Public Company Limited 193
112
In addition, SCIB was requested to make restitution as a result of a person forging SCIB’s
documents and using such counterfeit documents. However, SCIB has already filed a
complaint against the person who produced and used counterfeit documents so as to
proceed with a legal action. SCIB believes that no liability will arise from such restitution
claim.
48. Letter of guarantees
As at 31 December 2011, the Bank and its subsidiaries had letter of guarantees issued by
the Bank and its subsidiaries, amounting approximately Baht 24 million, placed for
electricity usage of the branches (separate financial statements: Baht 23 million).
49. Financial instruments
Financial instruments are any contracts which give rise to both a financial assets of one
enterprise and a financial liability or equity instruments of another enterprise.
49.1 Credit risk
Credit risk is the risk that the party to a financial instrument will fail to fulfill an obligation,
causing the Bank and its subsidiaries to incur a financial loss. The amount of maximum
credit risk exposure is the carrying amount of the financial assets less provision for losses
as stated in the statements of financial position and the risk of commitments from avals,
guarantees of loans, other guarantees and derivative contracts.
In addition, the Bank and its subsidiaries manage credit risk by the means of careful
consideration of credit approval process, analysis of risk factors and, the ability to service
debt of customers, and a credit review process, which examines and reviews the quality of
the loan portfolio so as to prevent and provide a remedy for problem loans in the future.
49.2 Market risk
Market risk is the risk that changes in interest rates, foreign exchange rates and securities
prices may have an effect on the Bank and its subsidiaries’ foreign currency position and
investment status. As such, market risk consists of interest rate risk, foreign exchange risk
and equity position risk.
194 Annual Report 2011 Thanachart Bank Public Company Limited
113
a) Interest rate risk
Interest rate risk is the risk that the value of financial instrument will fluctuate as a result of
changes in market interest rates.
The Bank and its subsidiaries manage the changes in interest rate risk by means of an
appropriate structuring of holdings in assets and liabilities with different repricing dates,
taking into account the direction of market interest rates, in order to generate a suitable
yield while maintaining risk at acceptable levels. Such management is under the
supervision of the Asset and Liabilities Management Committee.
As at 31 December 2011 and 2010, financial assets and liabilities classified by types of
interest rate are as follows:
(Unit: Million Baht)
Consolidated financial statements
2011
Floating Fixed Non-
interest interest interest
Transactions rate rate bearing Total
Financial assets
Cash - - 16,006 16,006
Interbank and money market items 23,000 32,178 8,137 63,315
Derivatives assets - - 1,536 1,536
Investments 12 135,851 11,885 147,748
Investments in associated companies - - 1,423 1,423
Loans to customers(1) 313,265 321,747 208 635,220
Receivable from purchase and sale securities and
derivatives - - 858 858
Other assets - receivable from clearing house - - 25 25
Financial liabilities
Deposits 174,519 255,821 5,700 436,040
Interbank and money market items 7,419 51,274 1,458 60,151
Liabilities payable on demand - - 2,131 2,131
Derivatives liabilities - - 2,886 2,886
Debt issued and borrowings - 254,297 - 254,297
Payable from purchase and sale securities and
derivatives - - 851 851
Other liabilities - payable from clearing house - - 306 306
(1) The outstanding balances of loans to customers which have floating interest rates or fixed interest rates include loans on which interest
recognition is discontinued
Annual Report 2011 Thanachart Bank Public Company Limited 195 114
(Unit: Million Baht)
Consolidated financial statements
2010
Floating Fixed Non-
interest interest interest
Transactions rate rate bearing Total
Financial assets
Cash - - 15,298 15,298
Interbank and money market items 1,166 77,559 6,462 85,187
Derivatives assets - - 3,117 3,117
Investments 5,840 121,092 12,000 138,932
Investments in associated companies - - 2,177 2,177
Loans to customers(1) 253,297 353,273 281 606,851
Receivable from purchase and sale securities and
derivatives - - 2,870 2,870
Other assets - receivable from clearing house - - 391 391
Financial liabilities
Deposits 185,346 341,372 5,938 532,656
Interbank and money market items 7,175 31,398 1,972 40,545
Liabilities payable on demand - - 3,127 3,127
Derivatives liabilities - - 941 941
Debt issued and borrowings 3,996 170,930 23 174,949
Payable from purchase and sale securities and
derivatives - - 4,054 4,054
Other liabilities - payable from clearing house - - 98 98
(1) The outstanding balances of loans to customers which have floating interest rates or fixed interest rates include loans on which interest
recognition is discontinued
196 Annual Report 2011 Thanachart Bank Public Company Limited 115
(Unit: Million Baht)
(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
Separate financial statements
2011
Floating Fixed Non-
interest interest interest
Transactions rate rate bearing Total
Financial assets
Cash - - 16,004 16,004
Interbank and money market items 22,966 32,113 8,002 63,081
Derivatives assets - - 1,532 1,532
Investments 12 103,875 10,450 114,337
Investments in subsidiary and associated
companies - - 40,842 40,842
Loans to customers(1) 308,348 308,229 135 616,712
Receivable from purchase and sale securities and
derivatives - - 65 65
Financial liabilities
Deposits 175,709 290,112 5,797 471,618
Interbank and money market items 6,496 51,274 1,513 59,283
Liabilities payable on demand - - 2,131 2,131
Derivatives liabilities - - 2,877 2,877
Debt issued and borrowings - 257,503 - 257,503
Payable from purchase and sale securities and
derivatives - - 268 268
Annual Report 2011 Thanachart Bank Public Company Limited 197
116
Separate financial statements
2010
Floating Fixed Non-
interest interest interest
Transactions rate rate bearing Total
Financial assets
Cash - - 3,733 3,733
Interbank and money market items 115 24,574 3,732 28,421
Derivatives assets - - 928 928
Investments - 48,897 601 49,498
Investments in subsidiary and associated
companies - - 73,121 73,121
Loans to customers(1) 42,707 283,667 175 326,549
Receivable from purchase and sale securities and
derivatives - - 1,733 1,733
Financial liabilities
Deposits 91,918 149,844 1,029 242,791
Interbank and money market items 3,809 25,190 707 29,706
Liabilities payable on demand - - 2,326 2,326
Derivatives liabilities - - 434 434
Debt issued and borrowings - 132,092 - 132,092
Payable from purchase and sale securities and
derivatives - - 1,733 1,733
(1) The outstanding balances of loans to customers which have floating interest rates or fixed interest rates include loans on which interest
recognition is discontinued
With respect to financial instruments that carry fixed interest rates, the periods from the
financial position date to the repricing or maturity date (whichever is the earlier) are
presented below: (Unit: Million Baht)
Consolidated financial statements
2011
Repricing or maturity date Weighted
0 - 3 3 - 12 1 - 5 Over 5 average
Transactions At call months months years years Total interest rates
Percent
Financial assets
Interbank and money market items - 29,523 2,655 - - 32,178 1.27-2.49
Investments - 14,772 46,447 57,851 16,781 135,851 3.19-4.47
Loans to customers 3,626 22,243 15,445 212,320 68,113 321,747 8.10-9.82
Financial liabilities
Deposits 89 169,399 77,929 8,404 - 255,821 3.12
Interbank and money market items 13,458 32,220 5,379 217 - 51,274 2.29
Debt issued and borrowings 999 133,517 103,060 16,700 21 254,297 4.06-4.75
198 Annual Report 2011 Thanachart Bank Public Company Limited
117
(Unit: Million Baht)
Consolidated financial statement
2010
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 147 76,912 500 - - 77,559 1.75 – 2.21
Investments - 23,980 26,872 47,241 22,999 121,092 3.18 – 3.33
Loans to customers 6,968 48,134 40,693 198,372 59,106 353,273 5.48 – 7.60
Financial liabilities
Deposits 53 193,904 125,726 21,689 - 341,372 1.65 – 1.98
Interbank and money market items 7,015 19,901 3,076 1,406 - 31,398 1.52 – 1.55
Debt issued and borrowings 1 109,296 38,415 23,185 33 170,930 2.63 – 2.83
(Unit: Million Baht)
Separate financial statements
2011
Repricing or maturity date Weighted
0 - 3 3 - 12 1 - 5 Over 5 average
Transactions At call months months years years Total interest rates
Percent
Financial assets
Interbank and money market items - 29,546 2,567 - - 32,113 3.24
Investments - 13,136 42,218 47,283 1,238 103,875 3.19
Loans to customers 3,473 22,197 14,921 199,900 67,738 308,229 8.10
Financial liabilities
Deposits 89 203,677 77,942 8,404 - 290,112 3.01
Interbank and money market items 13,458 32,220 5,379 217 - 51,274 0.25
Debt issued and borrowings 56 135,642 105,084 16,700 21 257,503 4.05
(Unit: Million Baht)
Separate financial statement
2010
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 - 24,574 - - - 24,574 1.75
Investments - 7,477 18,319 14,542 8,559 48,897 3.33
Loans to customers 3,595 11,225 17,886 193,959 57,002 283,667 7.58
Financial liabilities
Deposits 1 82,136 61,182 6,525 - 149,844 1.98
Interbank and money market items 6,835 16,365 602 1,388 - 25,190 1.53
Debt issued and borrowings 1 87,700 31,391 13,000 - 132,092 2.63
Annual Report 2011 Thanachart Bank Public Company Limited 199 118
In addition, the average balances of the financial assets and liabilities of the Bank and its
subsidiaries generating revenues and expenses, calculated based on the average
balances outstanding during the years, and the average interest rate for the years 2011
and 2010 can be summarised as follows:
(Unit: Million Baht)
Consolidated financial statements
For the years ended 31 December
2011 2010
Average Average Average Average
balances Interest rate (%) balances Interest rate (%)
Interest bearings financial assets
Interbank and money market items 65,402 2,237 3.42 76,969 1,054 1.67
Investments and trading operations 4,950 78 1.58 5,164 82 2.04
Investment in debt securities 133,575 4,114 3.08 132,140 3,653 3.18
Loans/hire purchase and finance leases 667,896 37,785 5.66 537,667 29,992 6.22
Interest bearings financial liabilities
Deposits 447,955 10,928 2.44 538,925 7,874 1.67
Interbank and money market items 56,551 1,289 2.28 47,226 506 1.27
Debt issued and borrowings 215,485 7,581 3.52 132,292 3,186 2.58
(Unit: Million Baht)
Separate financial statements
For the years ended 31 December
2011 2010
Average Average Average Average
balances Interest rate (%) balances Interest rate (%)
Interest bearings financial assets
Interbank and money market items 29,786 1,365 4.58 30,968 403 1.30
Investments and trading operations 1,755 24 1.35 565 13 2.36
Investment in debt securities 61,702 2,023 3.28 54,488 1,708 3.13
Loans/hire purchase and finance leases 400,397 26,135 6.53 289,939 19,273 6.65
Interest bearings financial liabilities
Deposits 266,850 6,898 2.16 248,617 4,546 1.83
Interbank and money market items 56,340 1,555 2.76 26,629 293 1.10
Debt issued and borrowings 176,696 6,506 3.68 98,284 2,536 2.58
200 Annual Report 2011 Thanachart Bank Public Company Limited 119
b) Foreign exchange risk
Foreign exchange risk is the risk that changes in foreign exchange rates may result in
changes in the value of financial instruments, and fluctuations in revenues or the values of
financial assets and liabilities.
Since the Bank and its subsidiaries have foreign exchange transactions, it may be
exposed to foreign exchange risk. However, the Bank and its subsidiaries have a policy to
mitigate this foreign exchange exposure through management of its net exchange position
and operation in accordance with a risk management policy which has been approved by
their Board of Directors and is in strict accordance with BOT guidelines.
The status of the Bank and its subsidiaries’ foreign currency balances as at 31 December
2011 and 2010 can be summarised as follows:
(Unit: Million Baht)
Consolidated financial statements
2011
US Dollar Euro Yen Won Yuan Others
Foreign currency in the statements of financial positionCash 618 395 292 - 1 381
Interbank and money market items 14,987 119 128 - 6 492
Investments 11,192 599 3,035 549 12,327 38
Loans to customers 13,186 234 486 - - 101
Other assets 463 1 17 - 49 -
Total assets 40,446 1,348 3,958 549 12,383 1,012
Deposits 104 21 1 - - 117
Interbank and money market items 8,602 - - - - -
Other liabilities 14 - - - - -
Total liabilities 8,720 21 1 - - 117
Net 31,726 1,327 3,957 549 12,383 895
Foreign currency commitmentsGuarantees of loans 920 - 310 - - -
Liability under unmatured import bills 368 34 118 - - 5
Letter of credits 2,376 100 92 - - 22
Others 984 48 1 - - 27
Annual Report 2011 Thanachart Bank Public Company Limited 201
120
(Unit: Million Baht) Consolidated financial statements
2010
US Dollar Euro Yen Won Yuan Others
Foreign currency in the statements of financial positionCash 234 213 119 1 - 191 Interbank and money market items 3,312 119 151 33 - 427 Investments 14,724 571 1,376 4,800 - 37 Loans to customers 11,350 289 30 - - 54 Other assets 306 8 9 22 - 9
Total assets 29,926 1,200 1,685 4,856 - 718
Deposits 185 72 2 - - 143 Interbank and money market items 8,119 24 - - - - Liability payable on demand - - 1 - - -
Other liabilities 1,803 - 9 - - -
Total liabilities 10,107 96 12 - - 143
Net 19,819 1,104 1,673 4,856 - 575
Foreign currency commitmentsGuarantees of loans 36 22 - - - - Liability under unmatured import bills 305 29 56 - - 32 Letter of credits 2,134 112 103 - - 28 Others 4,505 25 - - - 19
(Unit: Million Baht) Separate financial statements
2011
US Dollar Euro Yen Won Yuan Others
Foreign currency in the statements of financial position
Cash 619 395 292 - 1 381 Interbank and money market items 14,987 119 128 - 6 492 Investments 11,192 599 3,035 549 12,327 38 Loans to customers 13,183 234 486 - 101
Other assets 458 1 17 - 49 -
Total assets 40,439 1,348 3,958 549 12,383 1,012
Deposits 104 21 1 - - 117 Interbank and money market items 8,602 - - - - -
Total liabilities 8,706 21 1 - - 117
Net 31,733 1,327 3,957 549 12,383 895
Foreign currency commitmentsGuarantees of loans 920 - 310 - - - Liability under unmatured import bills 368 34 118 - - 5 Letter of credits 2,376 100 92 - - 22 Others 984 48 1 - - 27
202 Annual Report 2011 Thanachart Bank Public Company Limited
121
(Unit: Million Baht) Separate financial statements
2010
US Dollar Euro Yen Won Yuan Others
Foreign currency in the statements of financial position
Cash 134 36 88 - - 55
Interbank and money market items 417 7 28 33 - 115
Investments 5,383 570 178 4,800 - -
Loans to customers 3,609 30 - - - 3
Other assets 160 1 - 22 - -
Total assets 9,703 644 294 4,855 - 173
Deposits 37 7 - - - 133
Interbank and money market items 7,195 24 - - - -
Other liabilities 348 - - - - -
Total liabilities 7,580 31 - - - 133
Net 2,123 613 294 4,855 - 40
Foreign currency commitments
Guarantees of loans - 2 - - - -
Liability under unmatured import bills 111 7 - - - -
Letter of credits 625 44 - - - -
Others 665 - - - - 2
In addition, the Bank and its subsidiaries have commitments from foreign currency
exchange contracts, cross currency and interest rate swap contracts and interest rate
swap contracts which have to pay or received repayment in foreign currency that the Bank
and its subsidiaries made for trading transactions or hedging transactions (banking book)
as follow:
(Unit: Million Baht) Consolidated financial statements
2011
US Dollar Euro Yen Won Yuan Others
Foreign exchange contracts
- Bought 32,441 1,002 386 - - 552
- Sold 52,246 1,757 1,509 - 10,828 1,467
Cross currency and interest rate swap
contracts
- Bought 1,347 - - - - -
- Sold 11,235 615 2,834 548 1,611 -
Interest rate swap contracts
- Bought 1,453 - - - - -
- Sold 1,453 - - - - -
Annual Report 2011 Thanachart Bank Public Company Limited 203
122
(Unit: Million Baht) Consolidated financial statements
2010
US Dollar Euro Yen Won Yuan Others
Foreign exchange contracts
- Bought 23,624 145 194 - - 404
- Sold 30,779 754 721 - - 1,090
Cross currency and interest rate swap
contracts
- Bought 6,874 - - - - -
- Sold 21,091 599 1,187 4,786 - -
Interest rate swap contracts
- Bought 916 - - - - -
- Sold 916 - - - - -
(Unit: Million Baht) Separate financial statements
2011
US Dollar Euro Yen Won Yuan Others
Foreign exchange contracts
- Bought 31,805 1,002 386 - - 552
- Sold 52,883 1,757 1,509 - 10,828 1,467
Cross currency and interest rate swap
contracts
- Bought 1,347 - - - - -
- Sold 11,235 615 2,834 548 1,611 -
Interest rate swap contracts
- Bought 1,453 - - - - -
- Sold 1,453 - - - - -
(Unit: Million Baht) Separate financial statements
2010
US Dollar Euro Yen Won Yuan Others
Foreign exchange contracts
- Bought 12,770 30 105 - - 249
- Sold 11,292 124 448 - - 407
Cross currency and interest rate swap
contracts
- Bought 4,476 - - - - -
- Sold 8,094 599 - 4,786 - -
Interest rate swap contracts
- Bought 302 - - - - -
- Sold 302 - - - - -
204 Annual Report 2011 Thanachart Bank Public Company Limited
123
c) Equity position risk
Equity position risk is the risk that changes in the market prices of equity securities which
will result in fluctuations in revenue and the value of financial assets.
The Bank and its subsidiaries have a policy to manage market risk by setting manageable
limits on transactions, such as position limit and loss limits. The Risk Control Unit, which is
separated from front office and back office functions, is responsible for control of risk and
reporting on compliance with the various limits to the Board of Directors, related business
unit and related management, in order to facilitate responsive risk management, under the
supervision of the Investment Portfolio Committee.
49.3 Liquidity risk
Liquidity risk is the risk that the Bank and its subsidiaries will be unable to liquidate their
financial assets and/or procure sufficient funds to discharge their obligations in a timely
manner, resulting in the Bank and its subsidiaries incurring a financial loss.
The Bank and its subsidiaries manage liquidity risk by means of appropriate structuring of
short-term and long-term sources of capital. In addition, the Bank and its subsidiaries have
a policy to maintain liquidity to ensure that it has sufficient liquidity to meet both present
and future requirements, under the supervision of the Asset and Liability Management
Committee.
Annual Report 2011 Thanachart Bank Public Company Limited 205
124
Counting from the financial position date, the periods to maturity of financial instruments held
as at 31 December 2011 and 2010 are as follows:
(Unit: Million Baht)
Consolidated financial statements
2011
Transactions At call
Less than
1 year
Over
1 year Unspecified Total
Financial assets
Cash 16,006 - - - 16,006
Interbank and money market items (1) 8,368 54,827 120 - 63,315
Derivatives assets - 1,536 - - 1,536
Investments 1 67,445 68,908 11,394 147,748
Investments in associated companies - - - 1,423 1,423
Loans to customers(2) 47,672 193,205 394,343 - 635,220
Receivable from purchase and sale securities and
derivatives - 858 - - 858
Other assets - receivable from clearing house - 25 - - 25
Financial liabilities
Deposits 176,616 249,835 9,589 - 436,040
Interbank and money market items 21,081 35,306 3,764 - 60,151
Liability payable on demand 2,131 - - - 2,131
Derivatives liabilities - 2,886 - - 2,886
Debt issued and borrowings 999 217,447 28,721 7,130 254,297
Payable from purchase and sale securities and
derivatives - 851 - - 851
Other liabilities - payable from clearing house - 306 - - 306
Commitments
Aval to bill 1 342 43 - 386
Guarantees of loans - 1,230 - - 1,230
Liability under unmatured import bills 624 481 - - 1,105
Letter of credits 86 2,540 - - 2,626
Other commitments 41,732 6,138 2,061 2 49,933
(1) The outstanding balances of interbank and money market items at call included the item for which have defaulted on the repayment.
(2) The outstanding balances of loans to customers at call included loans for which revenue recognition has been discontinued.
206 Annual Report 2011 Thanachart Bank Public Company Limited
125
(Unit: Million Baht)
Consolidated financial statements
2010
Transactions At call
Less than
1 year
Over
1 year Unspecified Total
Financial assets
Cash 15,298 - - - 15,298
Interbank and money market items (1) 7,405 77,662 120 - 85,187
Derivatives assets - 3,117 - - 3,117
Investments - 48,826 83,891 6,215 138,932
Investments in associated companies - - - 2,177 2,177
Loans to customers(2) 62,566 183,319 360,966 - 606,851
Receivable from purchase and sale securities and
derivatives - 2,870 - - 2,870
Other assets - receivable from clearing house - 391 - - 391
Financial liabilities
Deposits 188,806 318,019 25,831 - 532,656
Interbank and money market items 16,162 22,917 1,466 - 40,545
Liability payable on demand 3,127 - - - 3,127
Derivatives liabilities - 941 - - 941
Debt issued and borrowings 11 134,903 32,905 7,130 174,949
Payable from purchase and sale securities and
derivatives - 4,054 - - 4,054
Other liabilities - payable from clearing house - 98 - - 98
Commitments
Aval to bill 13 585 56 - 654
Guarantees of loans 354 57 11 - 422
Liability under unmatured import bills 156 415 - - 571
Letter of credits 156 2,280 20 - 2,456
Other commitments 56,107 9,407 2,513 1,947 69,974
(1) The outstanding balances of interbank and money market items at call included the item for which have defaulted on the repayment.
(2) The outstanding balances of loans to customers at call included loans for which revenue recognition has been discontinued.
Annual Report 2011 Thanachart Bank Public Company Limited 207
126
(Unit: Million Baht)
Separate financial statements
2011
Transactions At call
Less than
1 year
Over
1 year Unspecified Total
Financial assets
Cash 16,004 - - - 16,004
Interbank and money market items 8,199 54,762 120 - 63,081
Derivatives assets - 1,532 - - 1,532
Investments 1 51,378 52,999 9,959 114,337
Investments in subsidiary and associated
companies - - - 40,842 40,842
Loans to customers(1) 43,701 192,374 380,637 - 616,712
Receivable from purchase and sale securities and
derivatives - 65 - - 65
Financial liabilities
Deposits 177,903 284,126 9,589 - 471,618
Interbank and money market items 21,466 34,600 3,217 - 59,283
Liability payable on demand 2,131 - - - 2,131
Derivatives liabilities - 2,877 - - 2,877
Debt issued and borrowings 57 221,595 28,721 7,130 257,503
Payable from purchase and sale securities and
derivatives - 268 - - 268
Commitments
Aval to bill 1 342 43 - 386
Guarantees of loans - 1,230 - - 1,230
Liability under unmatured import bills 624 481 - - 1,105
Letter of credits 86 2,540 - - 2,626
Other commitments 41,732 6,138 2,061 2 49,933
(1) The outstanding balances of loans to customers at call included loans for which revenue recognition has been discontinued.
208 Annual Report 2011 Thanachart Bank Public Company Limited
127
(Unit: Million Baht)
Separate financial statements
2010
Transactions At call
Less than
1 year
Over
1 year Unspecified Total
Financial assets
Cash 3,733 - - - 3,733
Interbank and money market items 3,847 24,574 - - 28,421
Derivatives assets - 928 - - 928
Investments - 21,046 27,892 560 49,498
Investments in subsidiary and associated
companies - - - 73,121 73,121
Loans to customers(1) 9,847 106,319 210,383 - 326,549
Receivable from purchase and sale securities and
derivatives - 1,733 - - 1,733
Financial liabilities
Deposits 90,432 141,692 10,667 - 242,791
Interbank and money market items 11,351 16,907 1,448 - 29,706
Liability payable on demand 2,326 - - - 2,326
Derivatives liabilities - 434 - - 434
Debt issued and borrowings 1 105,469 19,492 7,130 132,092
Payable from purchase and sale securities and
derivatives - 1,733 - - 1,733
Commitments
Aval to bill 3 179 56 - 238
Guarantees of loans - 2 - - 2
Liability under unmatured import bills 2 118 - - 120
Letter of credits 76 576 20 - 672
Other commitments 6,140 2,751 185 1,947 11,023
(1) The outstanding balances of loans to customers at call included loans for which revenue recognition has been discontinued.
Annual Report 2011 Thanachart Bank Public Company Limited 209
128
49.4 Fair value
Fair value represents the amount for which an asset could be exchanged or a liability
settled between knowledgeable, willing parties in an arm’s length transaction. The Bank
and its subsidiaries have estimated the fair value of financial instruments as follows:
a) Financial assets
The method used for determining the fair value depends upon the characteristics of the
financial instruments. The fair values of most financial assets are presented at the amount
stated in the statement of financial position, including cash, interbank and money market
items, derivatives assets, receivable from purchase and sale securities and derivatives,
receivables from clearing house and loans. These financial assets have their fair value
approximate to their respective carrying value since the values of these financial
instruments are predominantly subject to market interest rates. Financial instruments with
standard terms and conditions which are traded on an active and liquid market, such as
investments, have their fair values determined by the quoted market price.
b) Financial liabilities
The fair values of financial liabilities, including deposits, interbank and money market
items, liabilities payable on demand, derivatives liabilities, debt issued and borrowings,
payable from purchase and sale securities and derivatives, and payable to clearing house
are considered to approximate their respective carrying values for the same reasons as
described above.
210 Annual Report 2011 Thanachart Bank Public Company Limited
129
As at 31 December 2011 and 2010, the book value and fair value of financial instruments of the Bank and its subsidiaries are as follow.
(Unit: Million Baht)
Consolidated financial statements
2011 2010
Book value Fair value Book value Fair value
Financial assets
Cash 16,006 16,006 15,298 15,298
Interbank and money market items 63,201 63,201 85,060 85,060
Derivatives assets 1,536 1,536 3,117 3,117
Investments 148,345 149,325 140,022 140,944
Investments in associated companies 1,423 1,423 2,177 2,177
Loans to customers 609,903 609,903 581,526 581,526
Receivables from purchase and sale securities and
derivatives 858 858 2,870 2,870
Other assets - receivable from clearing house 25 25 391 391
Financial liabilities
Deposits 436,040 436,040 532,656 532,656
Interbank and money market items 60,151 60,151 40,545 40,545
Liabilities payable on demand 2,131 2,131 3,127 3,127
Derivatives liabilities 2,886 2,886 941 941
Debt issued and borrowings 254,297 254,297 174,949 174,949
Payable from purchase and sale securities and
derivatives 851 851 4,054 4,054
Other liabilities - payable from clearing house 306 306 98 98
Annual Report 2011 Thanachart Bank Public Company Limited 211
130
(Unit: Million Baht)
Separate financial statements
2011 2010
Book value Fair value Book value Fair value
Financial assets
Cash 16,004 16,004 3,733 3,733
Interbank and money market items 62,963 62,963 28,428 28,428
Derivatives assets 1,532 1,532 928 928
Investments 114,541 115,030 49,759 50,218
Investments in subsidiary and associated companies 40,842 40,842 73,121 73,121
Loans to customers 604,770 604,770 319,352 319,352
Receivables from purchase and sale securities and
derivatives 65 65 1,733 1,733
Financial liabilities
Deposits 471,618 471,618 242,791 242,791
Interbank and money market items 59,283 59,283 29,706 29,706
Liabilities payable on demand 2,131 2,131 2,326 2,326
Derivatives liabilities 2,877 2,877 434 434
Debt issued and borrowings 257,503 257,503 132,092 132,092
Payable from purchase and sale securities and
derivatives 268 268 1,733 1,733
49.5 Financial derivatives
The Bank and its subsidiaries engage in financial derivatives activities as required in the
normal course of their business to manage risk and to meet their clients’ needs. These
financial derivatives include foreign exchange contracts, cross currency and interest rate
swap contracts, interest rate swap contracts, and gold futures contracts.
The Bank and its subsidiaries have set a policy and limit to mitigate related risk, and
require risk reporting for the various types of risk, as a control over financial derivative
activities. The Bank and its subsidiaries manage the credit risk associated with financial
derivatives on the basis of the credit limits granted to customers in general. The same
credit approval process that is used when granting loans to a customer is adopted for
financial derivative customers, and so the Bank and its subsidiaries are able to maintain
risk at acceptable levels.
212 Annual Report 2011 Thanachart Bank Public Company Limited
131
As at 31 December 2011 and 2010, the Bank and its subsidiaries have financial
derivatives for trading and hedging (banking book) as classified by their maturities as
follows:
(Unit: Million Baht)
Consolidated financial statements
2011 2010
Less than Over Less than Over
1 year 1 year Total 1 year 1 year Total
Foreign exchange contracts
- Bought 34,381 - 34,381 24,367 - 24,367
- Sold 67,807 - 67,807 33,344 - 33,344
Cross currency and interest rate
swap contracts
- Bought 824 523 1,347 6,393 481 6,874
- Sold 9,598 7,245 16,843 14,574 13,089 27,663
Interest rate swap contracts
- Paid fixed interest rate 2,692 3,954 6,646 500 15,480 15,980
- Paid floating interest rate 325 2,954 3,279 - 3,359 3,359
- Received fixed interest rate 325 2,954 3,279 - 3,359 3,359
- Received floating interest rate 2,692 3,954 6,646 500 15,480 15,980
Gold future contracts
- Sold 641 - 641 - - -
(Unit: Million Baht)
Separate financial statements
2011 2010
Less than Over Less than Over
1 year 1 year Total 1 year 1 year Total
Foreign exchange contracts
- Bought 33,745 - 33,745 13,154 - 13,154
- Sold 68,444 - 68,444 12,271 - 12,271
Cross currency and interest rate
swap contracts
- Bought 824 523 1,347 4,476 - 4,476
- Sold 9,598 7,245 16,843 9,262 4,217 13,479
Interest rate swap contracts
- Paid fixed interest rate 2,692 3,954 6,646 - 12,302 12,302
- Paid floating interest rate 25 2,954 2,979 - 230 230
- Received fixed interest rate 25 2,954 2,979 - 230 230
- Received floating interest rate 2,692 3,954 6,646 - 12,302 12,302
Annual Report 2011 Thanachart Bank Public Company Limited 213
132
50. Reclassification
The Bank and its subsidiaries have reclassified certain amounts in the financial
statements as at 31 December 2010 and for year then ended to conform to the current
year’s classifications, in accordance with the revised format stipulated by the BOT, with no
effect to previously reported net income or equity.
(Unit: Million Baht)
31 December 2010
Consolidated
financial statements
Separate
financial statements
As
reclassified
As previously
reported
As
reclassified
As previously
reported
Net investment 140,022 139,933 49,759 49,670
Receivables from clearing house - 391 - -
Derivatives assets 3,117 - 928 -
Financial derivatives assets - 3,117 - 928
Prepaid corporate income tax 7 - - -
Reinsurance assets 533 - - -
Other assets - net 5,129 4,820 2,194 2,194
Payable to clearing house - 99 - -
Derivatives liabilities 941 - 435 -
Provisions for liabilities 900 770 113 24
Financial derivatives liabilities - 941 - 435
Accrued interest payable - 1,852 - 1,084
Corporate income tax payable - 2,327 - 999
Accrued expenses - 3,271 - 1,421
Unearned premium reserve - 1,882 - -
Life insurance premium reserve - 26,348
Insurance contract liabilities 29,774 - - -
Other liabilities 13,792 7,370 6,130 2,626
214 Annual Report 2011 Thanachart Bank Public Company Limited
133
(Unit: Million Baht)
For the year ended 31 December 2010
Consolidated
financial statements
Separate
financial statements
As
reclassified
As previously
reported
As
reclassified
As previously
reported
Interest income 34,781 - 21,397 -
Interest and dividend income - 34,974 - 21,973
Interest expenses 11,566 9,651 7,375 6,334
Contribution fee to the Deposit Protection Agency - 1,915 - 1,034
Fee and service income 3,369 3,592 2,030 2,030
Fee and service expenses 519 237 45 45
Gains on trading and foreign exchange transactions 570 - 144 -
Gains on investments 314 519 148 160
Gains on foreign exchange and financial derivatives - 376 132
Other operating income 3,164 - 1,723 -
Non-interest income - 2,680 - 1,124
Gains on disposal of property foreclosed and other
assets - 116 - 48
Premises and equipment expenses 3,148 3,390 1,532 1,606
Other expenses 4,554 4,653 3,143 3,101
Impairment loss of loans and debt securities 2,149 - 1,280 -
Bad debts and doubtful accounts - 2,072 - 1,157
Loss on debt restructuring - 77 - 123
51. Events after the reporting period
On 23 February 2012, the Board of Directors of the Bank passed a resolution to propose
the payment of a dividend of Baht 0.35 per share to the ordinary shareholders in respect
of the operating results for the year 2011, or a total of Baht 1,929.7 million, to the Annual
General Meeting of Shareholders.
52. Approval of financial statements
These financial statements were authorised for issue by the Bank’s Board of Directors on
23 February 2012.
Annual Report 2011 Thanachart Bank Public Company Limited 215
RemUneRATIon foR THe AUDIToRS
on annual basis, the Audit Committee evaluates the qualification and performance of the auditors and recommends to TBAnK’s Board of Directors for an appointment and fees of the auditors, in order to further obtain an approval from the shareholders meeting. The proposed candidates shall be the auditors approved by the BoT, according to the BoT’s letter no. forKorKor. (02) 237/2011 dated february 28, 2011 Lists of Auditors Approved for the accounting year 2011. The three auditors as follow were in the lists:
1. ms. Phuphun Charoensuk Certified Public Accountant no. 4950: and/or 2. ms. Rungnapha Lertsuwankul Certified Public Accountant no. 3516: and/or 3. mr. narong Pantawongs Certified Public Accountant no. 3315 of ernst & Young office Limited, the current auditor
team of TBAnK. The Relationship of the Auditors
and TBANK The proposed auditors have no relationship in any
form with the Bank. The Auditors of Subsidiaries and
Associated Companies in Thanachart Group
TBAnK, as a company in the group of TCAP,
proposed ernst & Young office Limited which was an auditor of Thanachart Group, to be its auditor.
In 2011, TBAnK paid ernst & Young office Limited for the audit services and other services as details of the auditor’s fee provided below:
1. Audit Fees 1.1 Audit fees of THB 9,820,000 was paid for
auditing the financial statements of the previous year, signed by ms. Phuphun Charoensuk, Certified Public Accountant.
1.2 The fees of THB 780,000 for conducting
special audit and auditing electronic funds transfer systems, as required by the BoT.
2. Non–Audit Fees none Apart from the fees mentioned in 1 and 2 above
there was no other fee for the past year that TBAnK paid to the auditors of the Bank, the audit firm the Certified Public Accountant auditors affiliated with, persons or businesses related to Certified Public Accountant or related to the audit firm the Certified Public Accountant auditors affiliated with.
ReLATeD PARTY TRAnSACTIonS
The details are presents in the note to consolidated financial statements under item 43; Related party transactions.
216 Annual Report 2011 Thanachart Bank Public Company Limited
CORPORATE GOVERNANCE
Report on Corporate Governance Compliance Corporate Governance Policy, Business Ethics and Codes of Conduct for Directors, Executives, and Staff
TBANK’s Board of Directors has put in place written policy guidelines on corporate governance since 2003. The Board
also conducts an annual review of corporate governance policies and the reporting process on business compliance with corporate governance principles of TBANK, at least once per annum. The business ethics as well as codes of conduct for directors, executives, and staff have been improved in order to establish a framework for all personnel of the Bank.
TBANK has established a corporate governance policy as well as business ethics and codes of conduct for directors,
executives, and staff. The policy can be easily accessed via the Bank’s website “www.thanachartbank.co.th” and Thanachart Group’s intranet system which is intended to be a channel for communicating with staff of the Group at every level, shareholders, as well as stakeholders, so that they can observe a firm standpoint and principle in good corporate governance established and practiced by the Board of Directors.
In 2011, the Bank evaluated all levels of Thanachart group’s staff in order to assess and evaluate comprehension
level of practicing accordingly to good corporate governance twice by the Compliance Unit. The result showed that 90% of staff was at excellent level.
Moreover, Thanachart Group has continuously supported good corporate governance and recognition of corporate
social responsibility awareness (CG & CSR Project) among staff in the group. This is intended to stimulate staff to acknowledge working principles of various business units in accordance with good corporate governance which begins with designing training courses that focus particularly on encouraging staff to work on the basis of morality, ethics, and business codes of conduct, for example, pure-hearted businessman program, inner power program and morality strengthening program. In 2011, there were 14,115 staffs at all levels across the country attending training courses.
TBANK’s business conducts according to good corporate governance principles in 2011 include; 1. Shareholders’ Rights and Equitable Treatment
1.1 Shareholders’ Basic Rights
TBANK has a policy on shareholders’ right protection and encourages them to honor their rights. The policy includes legal basic rights, such as the bank’s profit sharing, share transactions or transfers and participation in shareholder’s meeting in order to honor their voting rights equitably and independently.
1.2 Shareholder’s Meeting
In 2011, TBANK held the Annual General Meeting of Shareholders on Thursday April 7, 2011. The meeting was conducted according to related laws, regulations and corporate governance guidelines as follows:
Prior to the Shareholders’ Meeting
•TheBankpublishedtheNoticeofShareholders’meetingaswellasrelateddocuments inbothThaiandEnglish,
including meeting agendas and complete details of each agenda which were sufficient for shareholders’ decision making before the meeting. The aforementioned information was available via various channels as the followings;
Annual Report 2011 Thanachart Bank Public Company Limited 217
Website The information was published (www.thanachartbank.co.th) on the website 14 days prior
to the meeting and was comprised the Notice of Shareholders’ Meeting and related information including; date, time and meeting venue, meeting rules, vote casting procedures, as well as proxy statements. This information replicated the documents mailed to each shareholder.
Delivered by mail The meeting notice, meeting
documents and annual report we re de l i ve r ed t o a l l shareholders at least 14 days prior to the meeting.
Newspaper advertisement The meeting notice was
advertised in both Thai and English daily newspapers for three consecutive days, six days prior to the meeting day.
•TBANKalsoprovidedanopportunitytotheBank’s
shareholder to raise issues for consideration as additional items of the meeting agenda. They could nominate candidates for director as well as any other business-related issues prior to the meeting day for one month, from January 14, 2011 until February 14, 2011. This had been done in Thai and English in order to accommodate both Thai and foreign shareholders. In addition, rules, procedures, and channels for raising such issues were available on the Bank’s website and the results would be informed at the shareholders’ meeting.
•The proxy statements were delivered with the
meeting notice and also published on the Bank’s website should shareholders need to request a proxy to attend the meeting on their behalf.
•TBANK proposed the Chief ExecutiveOfficer and
President and one independent director for shareholders to assign a proxy on their behalf. The curriculum vitae as well as information about interests of the independent director in TBANK were included in the meeting notice to provide the shareholders alternatives for appointment of proxy.
The day of Annual General Meeting of Shareholders of 2011
•TBANK arranged various facilities, such as the
meeting venue, reception staff as well as printed ballot papers for each meeting agenda item, for shareholders during the registration. In addition, shareholders could also register in advance up to two hours prior to the meeting time.
•TBANK established shareholder’s meeting
guidelines to ensure that shareholders’ rights would not be compromised. At any point of the meeting, shareholders could register and enter the meeting to exercise their voting rights on any votes that has not been cast. TBANK has never adjusted or added the agendas or distributed additional documents which contain material information during the meeting without prior notice. During the course of the meeting, all the shareholders were provided equitable rights to express their opinions and ask questions.
•There were 23 shareholders in person, 43
individual shareholders by proxy, and two juristic shareholders by proxy totaling 68 shareholders attended the meeting.
•10 of 12 Directors including the Chairman, the
Chairman of the Audit Committee and the Chairman of Nomination and Remuneration Committee and the Chief Executive Officer and President attended the meeting.
•The chairman of themeeting explicitly informed
the shareholders on meeting rules, vote casting, and vote counting procedures.
•In castingvotes,ballotpaperswere required for
every agenda item. Also, during the agenda of appointing directors, TBANK opened voting for each director one by one. The ballot papers were collected from shareholders for tabulating votes.
•Videopresentationswereused in themeeting in
order to assure that all information was clearly presented.
Post Annual General Meeting of Shareholders •TBANK tookminutes of themeetingwhereby all
important information was entirely recorded in detail. The drafted minutes of the 2011 Annual General Meeting of Shareholders was submitted to the SEC within 14 days after the meeting day.
218 Annual Report 2011 Thanachart Bank Public Company Limited
1.3 Controlling Measures on the Use of Internal Information
TBANK has specified the controlling measures
of the use of internal information which can be summarized as follows:
• Anappropriateoversightontheinternaldata
maintenance system is required for all business units within the Bank.
• In compliance with the SEC regulations,
executives in manager position, the next four positions below manager position, and the highest ranking position in the Accounting Department are required to report their holdings of the Bank’s shares on a quarterly basis. Moreover, any trading transactions of aforementioned shares have to be reported to the SEC within 3 business days once the transaction has been completed, and a copy of the transactions have to be submitted to the Office of the Chairman of Executive Committee and the CEO.
• Directors, executives, staff, employees and
advisors who have access to the confidential information are prohibited from seeking any benefit from such information for their own or other’s interest. This is indicated in Thanachart Group’s ethics.
• According to the Bank’s notification on
securities trading supervision and abusive internal data control, Directors and executives are prohibited from engaging in any trading of the Bank’s shares 15 days before the end of each quarter until two days after the disclosure of the financial statements.
• The use of internal data for the individual
interest is considered as a policy misconduct and will be subject to the penalties according to the judgment of the Disciplinary Committee.
1.4 Controlling Measures on Conflict
of Interests
TBANK has established documented policies and approval procedures on connected transactions that are fully disclosed to all related parties. The Bank has also established controlling policies and measures aiming at preventing executives and related parties from making use of internal information for their personal benefit. The policies are including;
• Incaseofaconflict-of-interest,connectedorrelated transaction between any related parties, the matter will be reported to the Compliance Department in order to seek their opinion on legal issues and practice guidelines before being forwarded to the authorized party for approval.
• As stated in the notification of various
committees, any transactions from which the directors, executives or related parties gain benefit are required to specify their interest of such transaction. In addition, related directors or executives are prohibited from attending the meeting during the time when such an agenda item is being taken up.
• The execution of transactions from which
TBANK or directors or senior management of the Bank gain benefit has to obtain unanimous approval from the Board of Directors in which neither director nor senior management who is beneficiary can participate in the approval process.
• The Board of Directors has to be fully
informed of transactions that may involve in a conflict of interest or related party issues and such matters are always subject to careful consideration and in compliance with rules and regulations of the SEC and the BOT.
• Informationdisclosureontransactionswhich
may have conflicts of interest or connected transactions or related transactions must comply with rules and regulations established by the authorities.
• All connected transactions are subject to a
review in accordance with the annual audit plan and will be reported to the Audit Committee.
• Information about business connections or
business of which the benefit is related to directors and senior management has to be disclosed quarterly for controlling purposes and included in the list of connected transactions which will be disclosed in notes to the financial statements.
2. Role of Stakeholders
Thanachart Group has established written practice
guidelines on stakeholders; including customers, trading partners/lenders, competitors, public sector, as well as society and environment, in the Business Code of Conduct of directors, executives, and staff. All information in the guideline is disseminated through internal communication
Annual Report 2011 Thanachart Bank Public Company Limited 219
channels, so that directors, executives, and staff at all levels can strictly adhere to. The information has also been publicized via the Bank’s website to enhance stakeholders’ confidence on their rights. The details on the treatment of various groups of stakeholders are as follows:
Shareholders Thanachart Group aims at having a solid
performance and achieving a sustainable growth as well as being competitive to ensure an appropriate regular return to shareholders. In conducting business, the Bank has been aware of risks and ensures that there is an efficient internal control system as well as information disclosure in an accurate, complete, timely and transparent manner. Moreover, the Bank has made arrangements to provide shareholders with convenience in exercising any of the rights to which they are entitled.
Employees Thanachart Group recognizes equal and fair
treatments of its employees, it ensures that employees are fairly compensated. As a guideline in determining employees’ salaries, the Group conducts surveys and takes into consideration inflation rates, the Consumer Price Index and the Key Performance Indicators (KPIs). In 2011, the Group introduced a performance evaluation form, which is consistent with Thanachart Group’s key business strategies or the CEO’s Six-point agenda, to assess employees’ performance for the purpose of fair compensation and promotion. Moreover, the Group appropriately improved fringe benefits for employees to relieve their burdens based on the economic factors and integration preparation such as medical expense, annual leave, employer and employee contribution rates of provident fund, saving cooperatives for Thanachart Group’s staff, relief funds for unprecedented disasters such as fire and flood, fire drills, upkeep of workplace environment, as well as security for life and belongings. The Group also strengthens working relationships among employees by publishing and circulating the monthly journal entitled “San Saiyai” that encourages better connections between employees within the Group. In addition, the Group also circulates news and information through the intranet system and internal television Thanachart Channel” such as Thanachart Group’s products and services, related rules and regulations, as well as activities that Thanachart Group held in 2011.
Thanachart Group has been continually active in
human resource development. In 2011, Thanachart Group focused its efforts on enhancing employees’ knowledge and
competencies as well as necessary working skills for each position at every level in order to increase employees’ capability to respond to Thanachart Group’s visions, missions and objectives. The Group also strengthened employees’ recognition of relevant rules and regulations as well as the Business Codes of Conduct. In order to facilitate successful integration and strengthen the expertise of all staff members who are significant resources to support business growth and business continuity, the Group has established human resources development plans which are in alignment with its strategic direction. In 2011, advised by its strategic partner, Scotiabank, which has expertise in international finance, the Group organized a number of effective training courses, and provided external training, seminars, and staff training visits at reputable domestic and foreign institutes.
Apart from that, the Chief Executive Officer and
President have initiated the “Go Together” project, which is a special project aimed at strengthening the unity of the organization under the Thanachart vision “Synergy”. In 2011, 18 “Go Together” conferences were organized in every region of the country. Each conference aimed at communicating policies and the direction of strategies from the central Thanachart Group, in order to ensure that all staff share the same understanding of the Group’s strategic direction. The Chief Executive Officer and President as well as high-level executives of TBANK paid visits to all the hubs nationwide to meet with managers and staff of the network branches in order to exchange views on business operations with an emphasis on adjusting competitive strategies in each region. This is to ensure that the Group truly operates its business to meet all the unique financial needs of its customers in each region. This project not only stimulates enthusiasm of all staff and creates a true understanding of the Group’s business direction among them, which has become a driving force for the success of Thanachart Group, but enhances unity and cooperation among staff across the organization as well. The project will be continued in 2012 to capture the ultimate benefits of synergy and collaboration of TBANK, SCIB and the Bank of Nova Scotia.
Customers Thanachart Group is determined to develop
financial products and services that could accommodate all financial needs of customers. Fees are fairly charged and the Group aims to provide customers with complete and sufficient information of products and services before customers’ decisions are reached.
220 Annual Report 2011 Thanachart Bank Public Company Limited
P a r t i c i p a t i o n M e c h a n i s m o f Stakeholders
Thanachart Group has created a system for
receiving complaints and suggestions from customers, external parties and stakeholders more effectively for the purpose of organizational development. This has been undertaken through various channels such as the Bank’s website “www.thanachartbank.co.th”, marketing staff and Thanachart Contact Center 1770. The Bank has also explicitly established a business practice for the complaints reception system in which the responsible unit will follow up customers’ complaints and provide feedback to every customer or party that lodges the complaint, as well as applying customer’s needs to improve Thanachart Group’s services and increasing consumer or stakeholders’ satisfaction.
Trading Partners and Lenders Thanachart Group has established explicit policies
and practices on purchasing and outsourcing for the purpose of fairness, transparency and verifiability of all related parties as well as the rules for approval authority of package purchasing and rental.
The Bank has provided transparent and verifiable
information to lenders and has committed to the integrity of fulfilling the obligations made with the lenders under the conditions that are mutually agreed upon in addition to legal rules and regulations in order to build confidence for long-term cooperation.
Competitors The Bank operates under rules and competition
with other parties and organizations as well as under fairly established policies and practices. The Bank also does not accuse, defame, or aggravate its competitors as well as seek for confidential information of its competitors dishonestly or inappropriately.
Society and Environment Thanachart Group holds a responsible attitude
towards society. The senior management of the Group has played an important role in promoting the principles of social responsibility. These principles fall under the umbrella of the Group’s corporate social responsibility (CSR) that places emphasis on “sustainable growth with moral righteousness”. Supported by its staff, business alliances, local communities and society, the Group is
prepared to consistently participate in activities that support and help communities and societies in a long-term manner with mutual understanding and sincerity.
Public Sector TBANK conducts its business in adherence to laws,
rules and regulations of authorities as well as provides effective cooperation according to government policies. Moreover, the Bank will not become involved or do business with any illegal organizations or individuals.
3. Information Disclosure and Transparency
TBANK’s Board of Directors is responsible for the
financial statements of the Bank. In this regard, it has assigned the Audit Committee to ensure that the financial reports and internal control system of the Bank are accurate and valid in accordance with generally accepted accounting principles. TBANK has also included the report of the Audit Committee in the annual report.
TBANK ensures sufficient disclosure of important
information in notes to the Bank’s financial statements. The Bank also discloses the financial statements and the notes to the financial statements on a quarterly and annual basis on the Bank’s website. Moreover, the Investor Relations Unit is responsible for providing an accurate information and news on a timely manner to Thai and foreign shareholders, investors, analysts, and credit rating agencies in order to strengthen the image and credibility of the Bank as well as provide services to shareholders effectively. The Investor Relations Unit can be contacted via telephone at +66 (0) 2613 6107 and +66 (0) 2217 8199 Ext. 3027 or at E-mail address: [email protected]. TBANK has established policies on information disclosure in which the information must be accurate, complete, equitable, transparent and timely as well as in compliance with related laws and regulations. The information is disclosed via the channels as follows:
1. Securities and Exchange Commission 2. Department of Business Development, Ministry
of Commerce 3. TBANK’s www.thanachartbank.co.th • Annualregistrationstatementform56-1 • Financialstatementsandannualreport • Shareholders’meetingresolutions4. Press, media and other channels 5. Analyst meetings 6. Company visits / one-on-one meetings 7. Road shows 8. Notifications by mail
Annual Report 2011 Thanachart Bank Public Company Limited 221
In 2011, the Bank’s senior management and Investor Relations provided information to related parties on various occasions, including one-on-one meetings, conference calls, croup analyst meetings and road shows.
4. Responsibil ities of the Board of Directors
Constituent of the Board of Directors TBANK’s Board of Directors is composed of well
qualified persons who have expertise, skills and experience in financial, accounting, management and other professional areas which provide TBANK with great benefits.
TBANK’s Board of Directors structure is in
compliance with the notification of the Capital Market Supervisory Committee No. ThorChor 28/2008 re: Application for Offer and Permission for Sale of Newly Issued Securities, dated December 15, 2008 and the BOT’s notification re: Governance of Financial Institutions, dated July 9, 2009.
Independent Director TBANK specifies a more stringent definition and
qualification of the independent directors as follows: (1) Holding shares not more than 0.5 percent of
paid-up capital of the Bank, member company of the Group, subsidiary company, associated company or related company, including shares held by persons related to the independent director.
(2) Not taking part in the management or being an employee, staff or advisor, who receives salary or a controlling person of the Bank, a regular salary from the Bank, member company of the Group, subsidiary company, associated company, related company or a person who has authority controlling a juristic person that may have a conflict of interest (at present and during the past two years).
(3) Not having a business relationship with the Bank, member company of the Group, subsidiary company, affiliated company, or juristic person that may have a conflict of interest that obstructs independence of opinion.
(4) Not being a person related by blood or registration under laws such as father, mother, sibling and child, including spouse of children, executives, major shareholders, controlling persons, or persons to be nominated as executive or controlling person of the Bank, member company of the Group, subsidiary company, associated company, or related company.
(5) Neither having a relationship with the Bank in the form of its professional service provider such as auditor and financial advisor nor having a business association with the Bank under significant cash amount or value as stipulated (at present or during the past two years before the Bank’s election).
(6) Not being a representative of any member of the Bank’s Board of Directors or any major shareholder, nor being a shareholder related to the major shareholders.
(7) Not being simultaneously an audit committee member of any listed company of the Group, subsidiary company, or associated company.
(8) Not having any prohibited characteristic that undermines independence in carrying out his or her duties as director.
Every Independent Director is free to express
opinion without interest in benefit in terms of assets or working position from the pressure of any person or any group of people as well as from any circumstances that could affect their opinion expression.
Executive Directors are defined as 1) Directors who are involved in the management
of the Bank in accordance with the Notification of the Securities and Exchange Commission no. ThorChor 28/2008 Re: Application for Offer and Permission for Sale of Newly Issued Securities, dated December 15, 2008, including any additional amendments or announced substitution which means a director who assume the directorship in the executive position, a director who act as the executive; and as a director with full signatory authority except the case when it can be demonstrated that he or she is the authorized signatory according to the list that the Board of Director has already approved and is the joint authorized signatory with other committees.
2) In accordance with the BOT’s Notification no.
SorNorSor 13/2009 Re: Governance of Financial Institutions, Executive Director is defined as:
(1) Director that discharges responsibility in the position of manager, deputy manager, assistant manager or the equivalent.
(2) Director that discharges responsibility in the operations or is involved in business management as executive, including parties in an executive committee.
(3) Director with full signatory authority, except for the case when it can be demonstrated that he or she is the authorized signatory according to the list that the Board of Director has already approved and is the joint authorized signatory with other committees.
222 Annual Report 2011 Thanachart Bank Public Company Limited
At present, the number of Independent Directors and Non-Executive Directors of TBANK accounts for 50 percent of the total number of Board of Directors. The constituent of the Bank’s Board of Directors as of December 31, 2011 is as follows:
1. Mr. Banterng Tantivit Chairman - ✓ - 2. Mr. Suphadej Poonpipat Vice Chairman ✓ - - 3. Mrs. Michele Chiu Kwok Vice Chairperson - ✓ - 4. Mr. Kiettisak Meecharoen Director - - ✓ 5. Mr. Narong Chivangkur Director - - ✓ 6. Mr. Sataporn Jinachitra Director - - ✓ 7. Assoc. Prof. Dr. Somjai Phagaphasvivathana Director - - ✓ 8. Ms. Suvarnapha Suvarnaprathip Director ✓ - - 9. Mr. Somjate Moosirilert Director ✓ - - 10. Mr. Brendan George John King Director ✓ - - 11. Mr. Kobsak Duangdee Director ✓ - - 12. Mr. Alberto Jaramillo Director - ✓ -
Name Position
Executive Non-Executive Independent Director Director Director
Note: TBANK’s directors who are authorized signatories include Mr. Suphadej Poonpipat, Ms. Suvarnapha Suvarnaprathip, Mr. Brendan George John King,
Mr. Kobsak Duangdee and Mr. Somjate Moosirilert. Any two out of the five authorized signatories can jointly sign with TBANK’s seal affixed.
Annual Report 2011 Thanachart Bank Public Company Limited 223
Tenure of Directorship The tenure of directorship of the Board of Directors
has been covered clearly by TBANK’s Articles of Association. At each annual general shareholder’s meeting of TBANK, one third (or nearest number but not exceeding one third) of the members of the Board of Directors must retire. After the date when TBANK’s Articles of Association has become effective, the retirement of directors in year one and year two is decided by a draw. In subsequent years, the director who holds the longest time in office will be retired. Should there be a case when the number of directors holding the longest office tenure is greater than the number of directors that have to be retired, a draw will be applied. Directors who retire due to this reason can be reelected to re-assume their directorship.
Roles and Responsibilities of
TBANK’s Board of Directors 1. The Board is responsible for the overall business
conducts of TBANK to ensure the compliance with regulatory requirements, the Bank’s objectives and Articles of Association, as well as the resolutions adopted at the shareholders’ meetings.
2. The Board appoints the Executive Committee or sub-committees to perform duties as assigned by the Board.
3. The Board may assign or authorize one or more directors or other persons to take any action on behalf of the Board.
4. The Board makes approval on visions, missions, and values of the Bank as well as business ethics.
5. The Board considers strategies proposed by the management and approves on important issues related to the Bank’s direction and policies. The Board also approve on business plans, budgets, and operational goals proposed by the management.
6. The Board monitors the Bank’s performance and progress achieved in relation to the established objectives as well as compliance with related laws, regulations, and policies.
7. The Board authorizes the Chief Executive Officer and President to conduct business management of TBANK within the framework of equity expenditure budgets and operating expenditure budgets approved for various projects. Moreover, the Bank’s Board of Directors shall approve any loan applications which are beyond the authority on credit approval.
8. The Board ensures that the Bank has the effective internal control system and appropriate risk management system.
9. The Board ensures that both internal and external auditors conduct their duties effectively.
10. The Board approves the quarterly and annual financial statements and ensures that the financial statements are prepared in accordance with generally accepted accounting principles.
11. The Board ensures that information is disseminated to Bank’s stakeholders and to the general public.
Segregation of Duties The Chairman of the Board of Directors shall not be
the same person as the Chief Executive Officer and President so as to segregate the duties of developing policies from day-to-day business management.
Assumption of Directorship in Other
Companies by Directors and Senior Executives
In compliance with the BOT’s Notification on
Governance of Financial Institutions, directors and senior executives of the Bank can assume the position of Chairman, Executive Director or director with full signatory authority in no more than three business groups.
Sub-committees The Board of Directors of TBANK has appointed the
sub-committees to be responsible for performing necessary duties. The roles and responsibilities of each sub-committee are as follows:
Executive Committee TBANK’s Board of Directors has appointed the
Executive Committee which consists of five members. As of December 31, 2011, the names of the member of the Executive Committee were as follows:
1. Mr. Suphadej Poonpipat Chairman of the Executive Committee 2. Ms. Suvarnapha Suvarnaprathip Vice Chairperson of the Executive Committee 3. Mr. Brendan George John King Vice Chairman of the Executive Committee 4. Mr. Somjate Moosirilert Member of the Executive Committee 5. Mr. Kobsak Duangdee Member of the Executive Committee Representative of the Office of the Chairman of Executive Committee and the CEO Secretary of the Executive Committee
224 Annual Report 2011 Thanachart Bank Public Company Limited
Roles and Responsibilities of the Executive Committee
1. Authorized to approve lines of credit for the
benefit of TBANK as well as approve debt restructuring in compliance with the Financial Institution Business Act as well as the rules and regulations of the BOT.
2. Authorized to approve investments aimed at generating earnings for TBANK in compliance with the Financial Institutions Businesses Act as well as the rules and regulations of the BOT.
3. To manage business operations in line with TBANK’s business objectives as well as managing liquidity, risks and the interest rate structures.
4. Authorized to make purchases, take transfers, and dispose of TBANK’s assets in an amount up to 5 percent of TBANK’s share capital.
5. To consider and screen matters which are beyond the authority of the Executive Committee and to present them to those having higher authority for consideration.
6. Authorized to restructure and manage the organization, to establish rules and regulations related to work process, to appoint and remove employees, to appoint advisors, as well as directing and governing the conduct of TBANK’s business affairs.
7. Authorized to approve salaries or other compensation benefits for employees and advisors to support TBANK’s normal business operations.
8. To consider and approve appointments of independent appraisers.
9. To establish expense budgets for appraising the value of the collateral as well as controlling the related expenses.
10. Authorized to delegate its authority to other staff of TBANK for the purpose of efficiency.
The Executive Committee is authorized to approve
lines of credit, investments and obligations in compliance with the requirements imposed by the BOT.
Audit Committee TBANK’s Board of Directors approved the
establishment of the Audit Committee to ensure that TBANK’s business management is efficient and adheres to the principles of good corporate governance, which would help fostering the Bank’s credibility in the eyes of general public and in compliance with the authorities’ policy. The Audit Committee consists of three independent directors; all of which posses knowledge, understanding and
experience in accounting or finance. As of December 31, 2011, the names of the members of the Audit Committee were as follows:
1. Mr. Kiettisak Meecharoen Chairman of the Audit Committee (Independent Director) 2. Mr. Sataporn Jinachitra Member of Audit Committee (Independent Director) 3. Assoc. Prof. Dr. Somjai Phagaphasvivathana Member of Audit Committee (Independent Director) Mrs. Vijitra Thumpothong Secretary of the Audit Committee Roles and Responsibilities of the Audit
Committee 1. To review the process employed in the
preparation and information disclosure of TBANK’s financial reports, ensuring that the information is accurate, complete, and reliable. During the reviewing process, the Audit Committee will cooperate with the external auditor and the executives responsible for preparing both quarterly and annual financial reports.
2. To review the efficiency and appropriateness of the internal control system, internal audits system with the adequate and efficient corporate governance. In this regard, the Audit Committee will cooperate with the external auditors, internal auditors, and the respective regulators.
3. To review TBANK’s efficient risk management, ensuring that it is adequate and in compliance with the Bank’s policies as well as the BOT’s guidelines
4. To review TBANK’s business conducts, ensuring that they are in compliance with the Bank’s policies as well as regulatory requirements.
5. To review evidences from internal investigations when there is an observation or inference that there might be frauds, irregularities or substantial loopholes in the Bank’s internal control system. The committee will then make a prompt report to TBANK’s Board of Directors for further consideration.
6. To review connected transactions as well as transactions which may lead to conflicts of interest, ensuring that they are reasonable and carried out for the best benefit of the Bank.
7. To c o n s i d e r t h e a u d i t r e p o r t s a n d recommendations presented by the internal auditor, the compliance officer, the external auditor, and the respective regulators, ensuring that the Bank perform necessary actions according to those recommendations.
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8. To ensure that the business conducts of subsidiaries are in compliance with Thanachart Group’s policies by giving the Internal Audit Group the following assignments:
8.1 To report TBANK’s Audit Committee the summary of the overall performance of the Internal Audit Group which is responsible for auditing the Bank’s subsidiaries.
8.2 To report TCAP’s Board of Directors on the summary of the overall performance of the Internal Audit Group which is responsible for auditing the TBANK and subsidiaries and further presented to the Board of Directors.
8.3 In undertaking the auditing duties specified in 8.1 and 8.2, in case that there are key issues such as violation of law, fraud, or matters that have a serious impact on financial statements, status or image of TBANK and its subsidiaries, the Internal Audit Group is required to report in detail.
9. To specify the scope of Audit Committee and any change in composition, including any significant change of the process of the audit committee in a written form clearly according to the approval from the Board of Directors. This shall be revealed to the shareholders in the annual report of the Bank.
10. To report to the Board of Directors in order to improve and solve problems in a timely manner in case there are key issues, transactions or actions that have a serious impact on the financial statement and the Bank’s performance as follows:
• Conflictinteresttransactions• Fraudormattersthathaveaseriousimpact
to the internal audit system • Violation of law related to financial
institutions or any regulatory requirements If the Board of Directors or the Executive
do not proceed with the corrections on time, the Audit Committee shall reveal such action in the Bank’s annual report and the report to the BOT.
11. To consider the independence of the internal audit department and the compliance department
12. To appoint, evaluate, remove, transfer, or dismiss the head of internal audit department and the head of compliance department.
13. To recruit and nominate candidates for the external auditor of TBANK and to consider the auditing fees, taking into account the auditor’s credibility, the adequacy of its resources, workload of the auditor as well as experience of the staff.
14. To hold a meeting with the Audit Committee without other management presence at least once a year.
15. To annually review the Audit Committee charter and ask for the approval from Board of Directors if there is any additional revision.
16. To provide a report of Audit Committee which includes necessary information required by the SET, signed off by the Chairman of the Audit Committee, in the Bank’s annual report.
17. To provide comments in the compliance report submitted to the BOT.
18. To report the performance of self–evaluation to the Board of Directors on an annual basis.
19. To perform any other duties assigned by the Board of Directors.
Nomination and Remuneration
Committee TBANK’s Board of Directors approved the
establishment of the Nomination and Remuneration Committee. As of December 31, 2011, the members of the Nomination and Remuneration Committee were as follows:
1. Mr. Narong Chivangkur Chairman of the Nomination and Remuneration
Committee (Independent Director) 2. Mr. Sataporn Jinachitra Member of the Nomination and Remuneration
Committee (Independent Director) 3. Mrs. Michele Chiu Kwok Member of the Nomination and Remuneration Committee (Non-Executive Director) Mr. Thaneit Khantikaroon Secretary of the Nomination and Remuneration
Committee Roles and Responsibilities of the Nomination
and Remuneration Committee 1. To propose policy relating to nomination and
remuneration of directors, sub committee’s directors, Chief Executive Officer and President, and executives to the Bank’s Board of Directors.
2. To propose criteria relating to nomination and remuneration of directors and sub committee’s directors, Chief Executive Officer and President, and executives to the Bank’s Board of Directors.
3. To propose performance appraisal criteria of Chief Executive Officer and President and executives for annual remuneration package consideration.
4. To select and examine the candidates with appropriate qualifications for appointment as director, sub committee directors, or Chief Executive Officer and
226 Annual Report 2011 Thanachart Bank Public Company Limited
President and to propose qualified candidates to the Bank’s Board of Directors or Annual General Meeting of Shareholders. (Depending on the situation).
5. To consider annual remunerations of director, dub committee’s directors, Chief Executive Officer and President, and executives which are in alignment of the criteria that have been set.
6. To review policy and principles of nomination and remuneration of directors, Chief Executive Officer and President, and executives to be appropriate with job descriptions and the market.
Risk Management Committee The Board of Director of TBANK has established the
Risk Management Committee to ensure that risks are effectively and appropriately managed and consistently with the Bank’s organizational structure. As of December 31, 2011, the members of the Risk Management Committee were as follows:
1. Mr. Suphadej Poonpipat Chairman of the Risk Management Committee 2. Mr. Somjate Moosirilert Vice Chairman of the Risk Management Committee 3. Mr. Brendan George John King Vice Chairman of the Risk Management Committee 4 Mr. Piyaphong Artmangkorn Member of the Risk Management Committee 5. Mr. Ajay Pratap Mundkur Member of the Risk Management Committee 6. Mr. Anuwat Luengtaweekul Member of the Risk Management Committee 7. Mr. Enghug Nontikarn Member of the Risk Management Committee 8. Mrs. Angelina Dick Member of the Risk Management Committee 9. Mr. Ricky Jon Yakabowich Member of the Risk Management Committee 10. Mrs. Kjitphan Chunharit Member of the Risk Management Committee 11. Mr. Sakda Chantrasuriyarat Member of the Risk Management Committee 12. Mr. Kamtorn Tantisiriwat Member and Secretary of the Risk Management Committee
Roles and Responsibilities of the Risk Management Committee
1. To propose policy on overall risk management of
TBANK to the Board of Directors for their approval. In this regard, monitoring and auditing standards must be established to ensure that the risk management policy is strictly adhered to.
2. To formulate risk management strategies in accordance with the risk management policy and to ensure that the Bank’s risks are appropriately measured, monitored, and maintained at an appropriate level.
3. To review the adequacy of risk management policy, including the effectiveness of the risk management system and the adherence to the established policy.
4. To establish risk management measures which aims at preventing possible losses from occurring and at finding resolutions.
5. To assess both internal and external factors that might have material impact on the Bank’s financial positions. The assessment results will be taken into account in the adjustment of TBANK’s overall risk management policy.
6. To determine and instruct business units under the Risk Management Committee for the development of more efficient risk managing, controlling, and monitoring mechanisms.
7. To monitor and control the risk management conduct of committees and/or business units to ensure that they adhere to the established policy.
8. To report the committee’s performance to the Audit Committee regularly on areas that need improvement, ensuring that the improvements are in line with the established risk management policy and strategies.
Corporate Governance Committee TBANK has realized the importance of having a
good corporate governance system in accordance with the good corporate governance principles for listed companies and the SET’s guidelines on the disclosure of information on corporate governance practices in the annual report. The Bank’s Board of Directors, therefore, plays the role of the Corporate Governance Committee by determining policy on corporate governance in compliance with the SET, the SEC, and the BOT’s guidelines. The committee has assigned duties for two sub-committees as follows:
1. The Executive Committee undertakes the oversight and control of the Bank’s business conducts to ensure compliance with the policy guidelines on corporate governance, approved by Board of Directors.
Annual Report 2011 Thanachart Bank Public Company Limited 227
2. The Audit Committee is responsible for monitoring, reviewing, and examining the policy compliance to ensure that the Bank has a good corporate governance system.
Asset and Liability Management
Committee The Executive Committee has established the Asset
and Liability Management Committee to manage the Bank’s assets and liabilities effectively and to be consistent with the organization structure. As of December 31, 2011, the committee was consisted of:
1. Mr. Suphadej Poonpipat Chairman of the Asset and Liability Management Committee 2. Mr. Somjate Moosirilert Vice Chairman of the Asset and Liability Management Committee 3. Ms. Suvarnapha Suvarnaprathip
Member of the Asset and Liability Management Committee
4. Mr. Brendan George John King Member of the Asset and Liability Management Committee
5. Mr. Enghug Nontikarn Member of the Asset and Liability Management Committee
6. Mrs. Noossara Roonsamrarn Member of the Asset and Liability Management Committee
7. Mr. Piyaphong Artmangkorn Member of the Asset and Liability Management Committee
8. Mr. Nophadon Ruengchinda Member of the Asset and Liability Management Committee
9. Mr. Anuwat Luengtaweekul Member of the Asset and Liability Management Committee
10. Mr. Ajay Pratap Mundkur Member of the Asset and Liability Management Committee
11. Mr. Kobsak Duangdee Member of the Asset and Liability Management Committee
12. Mr. Pisuthi Amyongka Member of the Asset and Liability Management Committee
13. Mr. Lalit Dodampe Gamage Dharmaseri Member of the Asset and Liability Management Committee Representative of the Risk Control Dept. Secretary of the Asset and Liability Management Committee
Roles and Responsibilities of the Asset and
Liability Management Committee 1. To formulate the Bank’s liquidity, interest rate,
and exchange rate risk management plans under the policy established by the Executive Committee.
2. To manage TBANK’s liquidity and exchange rate risks in accordance with the trends of the money market and capital market conditions.
3. To manage the Bank’s interest rate structure and determine the rate of interest both floating and fixed interest rates in order to prevent any adverse impacts from interest rate volatility.
4. To approve investments in bonds and private debt instruments within budget limits.
5. To authorize a person or a group of persons under the authority of the Asset and Liability Management Committee.
6. To report on the performance of liquidity, interest rate and exchange rate management to the Executive Committee.
Investment Portfolio Committee The Executive Committee has established the
Investment Portfolio Committee in order to ensure that the investment portfolio of the Bank is efficient and consistent to the organizational structure. The committee, as of December 31, 2011, comprised the followings:
1. Mr. Suphadej Poonpipat Chairman of the Investment Portfolio Committee
2. Mr. Somjate Moosirilert Vice Chairman of the Investment Portfolio Committee
3. Ms. Suvarnapha Suvarnaprathip Member of the Investment Portfolio Committee
4. Mr. Brendan George John King Member of the Investment Portfolio Committee
5. Mr. Piyaphong Artmangkorn Member of the Investment Portfolio Committee Representative of the Risk Control Dept. Secretary of the Investment Portfolio Committee
228 Annual Report 2011 Thanachart Bank Public Company Limited
Roles and Responsibilities of the Investment Portfolio Committee
1. To determine investment policies as well as to
consider and approve investment plans. 2. To approve investments within the scope of
authority specified by TBANK, which must be complied within established position limits and VaR limits and to examine investment proposals that exceed its approval authority before proposing them to the Executive Committee which has higher approval authority.
3. To review the investment performance and determine guidelines aimed at improving investment performance
4. To manage the market risk arising from changes in prices of investment portfolios.
5. To establish and review the ratio of provisioning or determine the impairment value of the securities invested.
Credit Committee The Executive Committee has established the Credit
Committee to enhance the efficiency of TBANK’s credit underwriting process, integration process, and compliance with the organizational structure of the Bank. As of December 31, 2011, the members of the Credit Committee included:
1. Mr. Suphadej Poonpipat Chairman of the Credit Committee
2. Mr. Somjate Moosirilert Member of the Credit Committee
3. Ms. Suvarnapha Suvarnaprathip Vice Chairperson of the Credit Committee
4. Mr. Brendan George John King Member of the Credit Committee
5. Mrs. Noossara Roonsamrarn Member of the Credit Committee
6. Mr. Taweesak Saksirilap Member of the Credit Committee
7. Mrs. Angelina Dick Member of the Credit Committee
8. Mr. Noel Singh Member of the Credit Committee
9. Mrs. Sasima Taweeskulchai Member of the Credit Committee
10. Mr. Wuttichai Suraratchai Member of the Credit Committee
11. Mr. Pisuthi Amyongka Member of the Credit Committee Representative of the Risk Control Dept. Secretary of the Credit Committee
Roles and Responsibilities of the Credit Committee
1. To establish a work plan and oversight credit
approval procedures under the policy approved by TBANK’s Executive Committee or Board of Directors.
2. To establish covenants and conditions of credit lines and approve new credit lines as well as adjust conditions on credit lines within the delegated authority, taking into account the credit risk assessments within the scope specified by TBANK’s Executive Committee or Board of Directors.
3. To establish the authority on credit approval to a person or a group of persons within delegated authority of the Credit Committee.
4. To approve transactions which exceed the scope of authorization of the Debt Restructuring Committee or other subsequently appointed committees of which scope of responsibilities are similar to the aforementioned committee.
5. To screen credit applications which exceed the scope of authorization of the Credit Committee in order to propose them to TBANK’s Executive Committee or Board of Directors for approval. In case of urgency, the Credit Committee may propose credit applications to the aforementioned committee without screening.
6. To report credit approval results to TBANK’s Executive Committee or Board of Directors.
The Executive Committee has also established
a number of sub-committees to ensure that TBANK’s business conducts have been managed in a proper, efficient, and effective manner.
Executives As of December 31, 2011, there were executives
in the manager’s position and the first four executives subsequent to the manager, according to the SEC guidelines as follows:
1. Mr. Somjate Moosirilert1
Chief Executive Officer and President 2. Mr. Brendan George John King
Deputy Chief Executive Officer 3. Mrs. Noossara Roonsamrarn
Executive Vice President 4. Mr. Piyaphong Artmangkorn
Executive Vice President 5. Mr. Nophadon Ruengchinda
Executive Vice President 6. Mr. Anuwat Luengtaweekul
Executive Vice President
Annual Report 2011 Thanachart Bank Public Company Limited 229
7. Mr. Ajay Pratap Mundkur Executive Vice President 8. Mr. Enghug Nontikarn2
Executive Vice President 9. Mr. Rathian Srimongkol3
Executive Vice President 10. Mrs. Phenchan Weerawuth4
First Vice President
Notes: 1 Mr. Somjate Moosirilertposition’s name has changed to Chief Executive Officer and President since January 6, 2011.
2 Mr. Enghug Nontikarn has been appointed to be Executive Vice President since June 1, 2011.
3 Mr. Rathian Srimongkol was appointed to be Executive Vice President on June 1, 2011 and resigned since January 1, 2012.
4 Mrs. Phenchan Weerawuth has been appointed to be First Vice President since October 1, 2011.
Chief Executive Officer and President With reference to the BOT Notification No.
TorPorTor. ForKorKor.(21) Lor. 248/2010 dated October 22, 2010 approving the appointment of Mr. Somjate Moosirilert as Chief Executive Officer and President, TBANK’s Board of Directors has determined the duties and authority of the Chief Executive Officer and President as follows:
1. To formulate directions and strategies which aim at achieving TBANK’s goals, visions, and missions.
2. To formulate business plans and budget for TBANK’s Executive Committee’ and Board of Directors’ approval.
3. To manage and approve business transactions, as well as to oversight business conducts of TBANK’s executives and staff, ensuring that they are in alignment with the business plans and budget approved by the Bank’s Executive Committee and Board of Directors.
4. To manage and approve matters related to TBANK’s organizational structure and human resource management.
5. To report TBANK’s performance to the Executive Committee or the Board of Directors.
As regards the level of approval authorization, the
Chief Executive Officer and President is authorized to approve a credit line, investment or obligation worth no more than THB 300 million, provided that they are supported by collateral in the form of bonds, deposits or debt instruments.
Company Secretary In accordance with the principles of good corporate
governance, TBANK has assigned the Office of the Chairman of the Executive Committee and the CEO to be a unit that performs the secretariat functions to ensure the Bank’s effective business management.
Roles and Responsibilities of the Company Secretary
1. To provide the Board of Directors with
preliminary advice on laws, rules and regulations as well as the Articles of Association of Thanachart Bank and ensure that they have been complied properly and regularly. Moreover, the secretary is entitled to report to the Board of Directors on any material changes.
2. To organize annual shareholders general meetings and the Board of Directors meetings in compliance with legal requirements as well as the Articles of Association of TBANK.
3. To take minutes of annual shareholders general meetings and the Board of Directors meetings, as well as to monitor the implementation of the resolutions adopted at the shareholders’ meeting and the meetings of the Board of Directors.
4. To document and keep records of director’s reiterative documents, invitations to the Board of Directors meeting, the minutes of the Board of directors meeting, TBANK’s annual report, invitations to the shareholders’ meeting and the minutes of the shareholders’ meeting.
5. To ensure the disclosure of information and reports within respective authority to the supervisory agency in accordance with authority’s rules and regulations
6. To contact and communicate with shareholders in general, ensuring that they are well informed about their rights and about news of TBANK.
7. To support activities of TBANK’s Board of Directors.
Board of Directors Meetings TBANK’s Board of Directors convenes its meeting
regularly in the last week of each month. It may also hold additional meetings as deemed appropriate. The meeting agenda will be clearly determined in advance including the regular agenda such as business performance monitoring, approval of business transactions, and risk management. The Secretary of the Board of Directors is responsible for sending meeting invitations to all members of the Board along with the agenda as well as supporting documents in advance so that the Board has sufficient time to review them before attending the meetings. In 2011, the Board of Directors convened 14 general meetings.
At the Board of Directors meeting, every director
is encouraged to express their opinions and to adopt resolutions independently. The Chairman of the Board of Directors shall provide opportunities to all directors to express their opinions before requesting the adoption of resolutions. The notices and opinions of the directors
230 Annual Report 2011 Thanachart Bank Public Company Limited
at meetings are documented. The minutes of the meetings are approved by the Board of Directors and are available to be examined by the Board and related parties.
Table of Directors’ Attendance at Meeting held in 2011
(Unit: times)
1. Mr. Banterng Tantivit 13/13 - - - - 2. Mr. Suphadej Poonpipat 13/13 - - 8/9 28/28 3. Mrs. Michele Chiu Kwok 0/13 - 0/13 - - 4. Mr. Kiettisak Meecharoen 13/13 13/13 - - - 5. Mr. Narong Chivangkur 13/13 - 13/13 - - 6. Mr. Sataporn Jinachitra 13/13 13/13 13/13 - - 7. Assoc. Prof. Dr. Somjai 13/13 13/13 - - - Phagaphasvivathana 8. Ms. Suvarnapha Suvarnaprathip 13/13 - - - 25/28 9. Mr. Brendan George John King 13/13 - - 5/9 25/28 10. Mr. Somjate Moosirilert 13/13 - - 8/9 28/28 11. Mr. Kobsak Duangdee 12/13 - - - 24/28 12. Mr. Martin Weeks 4/7 - - - - 13. Mr. Alberto Jaramillo 3/4 - - - -
List of TBANK’s Directors
Risk Management Committee
(9 Meetings)
Executive Committee
(28 Meetings)
Board of Directors
(13 Meetings)
Audit Committee
(13 Meetings)
Nomination and Remuneration
Committee (13 Meetings)
Nomination and Appointment of Directors 1. Appointment Procedures of TBAK’s Board of Directors.
TBANK does not specify the maximum number of directors. However, in accordance with the Bank’s Articles of Association, the Bank must have at least five directors. The appointment procedure can be categorized into two cases, including the case of appointing a new director to replace the one who is retired by rotation; and the case is when the appointment is made during the directorship tenure due to a vacancy. In this regard, TBANK’s Board of Directors has established the Nomination Committee in order to select and nominat qualified candidates for directorships. Under the first circumstance, a resolution of the shareholders’ meeting is required, while, in the latter case, the Board of Directors is able to approve the director’s appointment, given that qualifications are fulfilled. In addition, the appointment of the independent director has to be conducted in compliance with the regulations imposed by the BOT.
Notes: 1. Mrs. Michele Chiu Kwok had health problems. However, she has been electronically monitoring the Bank’s business conducts and giving recommendations of benefits to the Bank on a regular basis. 2. Mr. Martin Weeks resigned from his directorship on June 30, 2011. 3. Mr. Alberto Jaramillo has assumed his directorship since September 27, 2011.
Annual Report 2011 Thanachart Bank Public Company Limited 231
In electing the Bank’s Director at the shareholders’ meeting, every shareholder has equal voting rights. The rules and procedures of Director’s election at the shareholders’ meeting are as follows:
(1) Each voter has one vote which equals to one share per one vote.
(2) Vote casting can be conducted individually or in terms of a group of individuals or by any other procedure as deemed appropriate by the shareholders. However, in each resolution, all shareholders must cast their votes according to (1).
(3) Resolutions are adopted by a majority vote. In case votes are equal, the ultimate decision belongs to the Chairman of the meeting.
2. Appointment Procedures of the Executive Committee.
TBANK’s Board of Directors may appoint a number of directors to hold a position of the Executive Committee as it deems appropriate. Among these, one of them shall serve as the Chairman of the Executive Committee. The Executive Committee will be authorized to manage and conduct TBANK’s business affairs as assigned by TBANK’s Board of Directors. The Chief Executive Officer and President will be ex-officio members of the Executive Committee.
3. Appointment Procedures of the Audit Committee. The Board of Directors will appoint at least
three Independent Directors who have met the Bank’s qualifications to assume the directorship in the Audit Committee. The Committee is responsible for undertaking responsibilities as specified in the charter of the Audit Committee which must be complied with the SEC’s guideline. The Committee is fully independent to perform their duties and has a direct reporting line to the Board of Directors.
4. Appointment Procedures of the Nomination and Remuneration Committee.
The Board of Directors will appoint at least three Independent Directors to assume the directorship in the Nomination and Remuneration committee. The Committee is responsible for undertaking responsibilities as specified in the charter of the Nomination and Remuneration Committee in accordance with the SEC’s guidelines and the BOT’s regulations.
Development of Directors and
Executives Each Director of TBANK has attended at least one
training course organized by the Thai Institute of Directors (IOD). Two Directors that have attended the training course in 2011 are:
1. Mr. Narong Chivangkur Independent Director/Chairman of the Nomination and Remuneration Committee Certificate: Role of the Nomination and Governance Committee, Class 1/2011 Certificate: Financial Institutions Governance Program, Class 2/2011
2. Mr. Kobsak Duangdee Director/Executive Committee Certificate: Financial Institutions Governance Program, Class 2/2011
Evaluation of the Board of Directors
and Senior Management’s Performance TBANK conducts the evaluation of the directors’
performance annually. The evaluation can be categorized into: 1) The evaluation of Board of Directors’ performance and 2) The evaluation of Chief Executive Officer and President’s performance.
Succession Plan The Nomination and Remuneration Committee is
responsible for ensuring that there is a succession plan for the Chief Executive Officer and President position in order to sustain continuity of the Bank’s management.
The Orientation for Newly Appointed
Directors and Executives When there is a newly appointed director or
executive, the Office of the Chairman of Executive Committee and the CEO is responsible for preparing necessary documents for the new director or executive, as the case may be. Such documents comprised the Bank’s annual report, which contains visions, strategies, and goals of the Bank; the director and executive’s manual, which includes what prohibited by laws related to financial institutions; and the relevant Acts and notifications.
Remuneration Policy The remuneration of TBANK’s directors has been
determined by comparison with the director’s remuneration across the industry. Such comparison has been applied along with consideration of roles, duties, and scope of responsibilities of each director. The remuneration of TBANK’s director has to be under the review and screening of the Nomination and Remuneration Committee which then recommends to the Bank’s Board of Directors for their consideration before being proposed to the shareholders’
232 Annual Report 2011 Thanachart Bank Public Company Limited
meeting. The remuneration will be paid in terms of meeting stipends, monthly compensation, and performance allowances. Members of sub-committee will receive the remuneration as specified by TBANK’s Board of the Directors based on
the recommendation of the Nomination and Remuneration Committee. The recommendation is derived by considering their duties and responsibilities compared to industry peers. The sub-committee’s remuneration will be in terms of meeting stipends and/or position allowance.
The remuneration of executives complies with policies and standards which are associated with the Bank as well as
individual performance. The performance assessment is conducted via the use of Key Performance Indicators (KPI). The executives will be remunerated in terms of salaries and allowances of which the average meets the industry’s peers.
Director’s Remuneration a) Financial Remuneration
Director’s and Committee’s Remuneration As of December 31, 2011, TBANK has remunerated three committees, including the Board of Directors, the Audit
Committee, and the Nomination and Remuneration Committee totaling THB 26,928,252.69. The remuneration has been paid in terms of meeting stipends, position allowance and performance-based allowance (from the Bank’s performance in 2010) which can be summarized as follow:
Table of the remuneration of the Board of Directors
1. Mr. Banterng Tantivit 693,000.00 556,400.00 2,714,419.67 3,963,819.67 2. Mr. Suphadej Poonpipat 346,500.00 278,200.00 1,357,209.82 1,981,909.82 3. Mrs. Michele Chiu Kwok 346,500.00 0.00 1,357,209.82 1,703,709.82 4. Mr. Kiettisak Meecharoen 346,500.00 278,200.00 1,357,209.82 1,981,909.82 5. Mr. Narong Chivangkur 346,500.00 278,200.00 1,357,209.82 1,981,909.82 6. Mr. Sataporn Jinachitra 346,500.00 278,200.00 1,357,209.82 1,981,909.82 7. Assoc. Prof. Dr. Somjai Phagaphasvivathana 346,500.00 278,200.00 1,357,209.82 1,981,909.82 8. Ms. Suvarnapha Suvarnaprathip 346,500.00 278,200.00 1,357,209.82 1,981,909.82 9. Mr. Brendan George John King 346,500.00 278,200.00 1,357,209.82 1,981,909.82 10. Mr. Somjate Moosirilert 346,500.00 278,200.00 1,357,209.82 1,981,909.82 11. Mr. Kobsak Duangdee 346,500.00 256,800.00 1,357,209.82 1,960,509.82 12. Mr. Martin Weeks 173,250.00 85,600.00 1,357,209.82 1,616,059.82 13. Mr. Alberto Jaramillo 90,475.00 64,200.00 0.00 154,675.00 Total 4,421,725.00 3,188,600.00 17,643,727.69 25,254,052.69 Notes: 1. Mr. Martin Weeks resigned from his directorship on June 30, 2011. 2. Mr. Alberto Jaramillo has assumed his directorship since September 27, 2011.
List of Directors
Type of remuneration (Baht per year)
Monthly compensation
Meeting stipends
Performance allowance Total
Annual Report 2011 Thanachart Bank Public Company Limited 233
The Remuneration of the Executive Committee TBANK’s Board of Directors has not yet determined the remuneration of the Executive Committee; therefore,
no payment to its members was made. The Remuneration of Executives Based on the guidance of the SEC and Section 4 and Section 25 of Financial Institution Business Act B.E.
2551, there were 37 persons in total who were considered executives in the position of manager and the first four executive below the manager. The total payments made to them in 2011 in the form of salaries, allowances, cost-of-living allowances and contribution payments to the provident fund amounted to THB 201,253,695.00.
The Remuneration of the Independent Director of the Subsidiaries With regard to the remuneration of the independent director of the subsidiaries, there is one independent
director who assumed the directorship in TLIFE and received the compensation amounted to THB 200,000.00 in 2011.
b) Remuneration Other Than Cash Payments As of December 31, 2011, there was no remuneration other than cash payments.
1. Mr. Narong Chivangkur 325,000.00 2. Mr. Sataporn Jinachitra 195,000.00 3. Mrs. Michele Chiu Kwok 0.00 Total 520,000.00
List of Directors
Table of the remuneration of the Nomination and Remuneration Committee
Type of remuneration (Baht per year)
Meeting stipends
1. Mr. Kiettisak Meecharoen 219,600.00 357,500.00 577,100.00 2. Mr. Sataporn Jinachitra 109,800.00 178,750.00 288,550.00 3. Assoc. Prof. Dr. Somjai Phagaphasvivathana 109,800.00 178,750.00 288,550.00 Total 439,200.00 715,000.00 1,154,200.00
Table of the remuneration of the Audit Committee
List of Directors Type of remuneration (Baht per year)
Monthly compensation Meeting stipends Total
234 Annual Report 2011 Thanachart Bank Public Company Limited
RePoRT of The NomiNATioN ANd RemuNeRATioN CommiTTee
on march 26, 2002, TBANK’s Board of directors approved the establishment of the Nomination Committee and the Remuneration Committee. on march 25, 2009, the Bank Board of directors’ meeting adopted a resolution to combine the Nomination Committee and the Remuneration Committee together and name the Committee to “the Nomination and Remuneration Committee”. The Committees consisted of two independent directors and one non-executive director whose names as of december 31, 2011 were as follows;
1. mr. Narong Chivangkur Chairman (independent director) 2. mrs. michele Chiu Kwok member (Non-executive director) 3. mr. Sataporn Jinachitra member (independent director) mr. Thaneit Khantikaroon Secretary in 2011, the Nomination and Remuneration Committee convened thirteen meetings to process the following matters;
1. To select and nominate appropriate persons to be appointed as a director replacing the director resigning to the Bank’s Board of directors.
2. To review and nominate appropriate persons to be appointed as directors replacing the directors retiring by rotation for the year 2011 to the Bank’s Board of directors’ meeting and the Annual General meeting of the Shareholders.
3. To select and nominate the appropriate persons to be appointed as executives to the Board of directors. 4. To provide opportunities for shareholders to propose appropriate persons to be appointed as Bank’s directors in
the 2012 Annual General meeting of Shareholders of Thanachart Bank Public Company Limited. 5. To review and consider the remuneration packages for directors and sub-committees, taking into consideration
that such remuneration package commensurate with the assigned duties and responsibilities, the Board of directors’ and sub-committee performances, and the Bank’s overall performance 2011 remuneration packages were proposed for approval at the Bank’s Board of directors meeting and the Annual General meeting of Shareholders for the year 2011.
6. To consider the performance evaluation, adjustment of annual salary and bonus of Chairman of the executive Committee, Chief executive officer and President, and executives.
7. To consider the remuneration of the Chairman of the executive Committee and Chief executive officer and President.
8. To recommend the Thanachart Group’s executives Succession Plan. 9. To recommend related issues of the salary structure and salary survey results of financial institutions.
(Mr. Narong Chivangkur) Chairman of the Nomination and Remuneration Committee
Annual Report 2011 Thanachart Bank Public Company Limited 235
suPeRvision And MAnAgeMenT sTRuCTuRes
Investment Portfolio
Committee
Asset and Liability Management
Committee Credit Committee
IT Security Management Committee
office of executive Committee Chairman and Ceo
Chief Executive Officer and Presidentintegration and Change
Risk Management Committee
Compliance unit
investment Management
As of december 31, 2011
Executive Committee
Board of Directors
236 Annual Report 2011 Thanachart Bank Public Company Limited
BoARd of diReCToRs And MAnAgeMenT TeAM
Mr. Banterng Tantivit Chairman (non-executive director) Age 67 years Education(s) • MasterofScience(Finance)inManagement, MassachusettsInstituteofTechnology,USA • BachelorofScienceinElectricalEngineering, MassachusettsInstituteofTechnology,USA Directorship and executive ThaiInstituteofDirectorsAssociationtraining program(s) • DirectorAccreditationProgram(DAP),Class25/2004 Experience(s) in the past 5 years 2006–Present • ViceChairman,ThanachartInsuranceCompanyLimited • Director,SiamPiwatHoldingCompanyLimited2005–Present • Chairman,ThanachartLifeAssuranceCompanyLimited2003–Present • Chairman,MBKResortPublicCompanyLimited • Director,SiamPiwatCompanyLimited • Director,B.V.HoldingCompanyLimited • Chairman,PlanEstateCompanyLimited2001–Present • Advisor,DusitThaniPublicCompanyLimited • Advisor,PatumRiceMillandGranaryPublicCompanyLimited1994–Present • Chairman,ThanachartCapitalPublicCompanyLimited1989–Present • ChairmanandChairmanoftheExecutiveCommittee, MBKPublicCompanyLimited1987–Present • Director,DeebukCompanyLimited • Director,ThaiFarmingCompanyLimited2010–2011 • Chairman,SiamCityBankPublicCompanyLimited2006–2010 • Director,ArsomSilpInstitutionoftheArtsCouncil Family relationship with none management No. of TBANK share(s) held none
Annual Report 2011 Thanachart Bank Public Company Limited 237
Mr. suphadej Poonpipat ViceChairmanandChairmanoftheExecutiveCommittee(executive director) Age 61 years Education(s) •MasterofScience,UniversityofWisconsin,USA •BachelorofBusinessAdministrationandAccounting,ChulalongkornUniversity Directorship and executive ThaiInstituteofDirectorsAssociation training program(s) •DirectorAccreditationProgram(DAP),Class8/2004 CapitalMarketAcademy,TheStockExchangeofThailand •LeadershipProgram,Class8/2009 Experience(s) in the past 5 years 2011–Present •ViceChairmanandChairmanoftheExecutiveCommittee, Patum Rice Mill and granary Public Company Limited 2007–Present •Director,RoyalOrchidHotel(Thailand)PublicCompanyLimited •Director,ThaiRoyalOrchidRealEstateCompanyLimited2006–Present •Director,SiamPiwatHoldingCompanyLimited2005–Present •DirectorandChairmanoftheExecutiveCommittee, Thanachart insurance Company Limited •Director,MBKResortPublicCompanyLimited2003–Present •DirectorandChairmanoftheExecutiveCommittee, ThanachartLifeAssuranceCompanyLimited •Director,PlanEstateCompanyLimited •Director,SiamPiwatCompanyLimited •ViceChairman,MemberoftheCompensationandNominationCommitteeand ViceChairmanoftheExecutiveCommittee,MBKPublicCompanyLimited1990–Present •ViceChairman,ChairmanoftheExecutiveCommitteeand PresidentandChiefExecutiveOfficer,ThanachartCapitalPublicCompanyLimited (HoldingViceChairmanpositionintheBoardofDirectorsandChairmanposition in the executive Committee in 2007) 2010–2011 •ViceChairman,SiamCityBankPublicCompanyLimited2000–2011 •Advisor,PatumRiceMillandGranaryPublicCompanyLimited1992–2010 •Director,AdvancedInfoServicePublicCompanyLimited Family relationship with none management No. of TBANK share(s) held none
238 Annual Report 2011 Thanachart Bank Public Company Limited
Mrs.MicheleChiuKwokViceChairpersonandMemberoftheNominationand Remuneration Committee (non-executive director) Age 52years Education(s) • MasterofBusinessAdministration(Finance&Marketing), UniversityofBritishColumbia,Canada • BachelorofScienceinMathematics,UniversityofBritishColumbia,Canada Directorship and executive none training program(s) Experience(s) in the past 5 years 2008–Present • Director,CanadaChinaBusinessCouncil,Canada2006–Present • Governor,TheCanadaChamberofCommerce,HongKong • SeniorVicePresident/RegionalHead,Asia/PacificandMiddleEast, TheBankofNovaScotia,HongKong • Director,Scotiabank(HongKong)Limited,HongKong • Director,BoracayLimited,HongKong • Director,TheBankofNovaScotiaAsiaLimited,Singapore • Director,TheBankofNovaScotiaBerhad,Malaysia • Director,Scotiatrust(Asia)Limited,HongKong2010–2011 • ViceChairmanandMemberoftheNominationandRemunerationCommittee, siam City Bank Public Company Limited Family relationship with none management No. of TBANK share(s) held none
Annual Report 2011 Thanachart Bank Public Company Limited 239
Mr.KiettisakMeecharoenChairmanoftheAuditCommittee(independent director) Age 65years Education(s) • MasterofTheoreticalEconomics,KeioUniversity,Japan • BachelorofScienceinFinance,HitotsubashiUniversity,Japan Directorship and executive ThaiInstituteofDirectorsAssociation training program(s) • DirectorAccreditationProgram(DAP),Class40/2005 • AuditCommitteeProgram(ACP),Class10/2005 HarvardUniversity • BankingandMonetaryPolicyinDevelopingCountriesProgram Experience(s) in the past 5 years 2005–Present • IndependentDirector,TararomEnterprisePublicCompanyLimited2000–Present • IndependentDirector,ThanachartLifeAssuranceCompanyLimited • IndependentDirectorandChairmanoftheAuditCommittee, SafetyInsurancePublicCompanyLimited2010–2011 • IndependentDirectorandChairmanoftheAuditCommittee, siam City Bank Public Company Limited Family relationship with none management No. of TBANK share(s) held none
240Annual Report 2011 Thanachart Bank Public Company Limited
Mr. narong Chivangkur ChairmanoftheNominationandRemunerationCommittee(independent director) Age 67 years Education(s) • ManagementDevelopmentProgram,AsianInstituteofManagement,Philippines • FinancialManagementProgram,RochesterInstituteofTechnology,USA Directorship and executive ThaiInstituteofDirectorsAssociation training program(s) • RoleoftheNominationsandGovernanceCommittee(RNG),Class1/2011 • FinancialInstitutionsGovernanceProgram(FGP),Class2/2011 • AuditCommitteeProgram(ACP),Class32/2010 • FinancialStatementforDirectors(FSD),Class4/2009 • SuccessfulFormulation&ExecutiontheStrategy(SFE),Class2/2008 • RoleoftheCompensationCommittee(RCC),Class4/2007 • CorporateSocialResponsibility(CSR),Class1/2007 • DirectorCertificationProgram(DCP),Class34/2003 Experience(s) in the past 5 years 2005–Present • Director,MomchailaiDevelopmentCompanyLimited2003–Present • Director,MomentumIMCompanyLimited2000–Present • Director,MomentumBBSCompanyLimited2010–2011 • DirectorandChairmanoftheNominationandRemunerationCommittee, siam City Bank Public Company Limited 2004–2011 • Director,MomentumSaleandDistributionCompanyLimited Family relationship with none management No. of TBANK share(s) held none
Annual Report 2011 Thanachart Bank Public Company Limited241
Ms. suvarnapha suvarnaprathip ViceChairpersonoftheExecutiveCommittee(ExecutiveDirector) Age 66 years Education(s) • BachelorofEconomics,MonashUniversity,Australia • Certificate,ExecutiveCommercialLendingTrainingProgram,BankerTrust, NewYork,USA Directorship and executive ThaiInstituteofDirectorsAssociation training program(s) • DirectorAccreditationProgram(DAP),Class20/2004 Experience(s) in the past 5 years 2005–Present • DirectorandChairpersonoftheExecutiveCommittee, Thanachart Capital Public Company Limited • DirectorandMemberoftheExecutiveCommittee, ThanachartLifeAssuranceCompanyLimited1991 – Present • Director,SeaconDevelopmentPublicCompanyLimited2010 – 2011 • DirectorandViceChairpersonoftheExecutiveCommittee, siam City Bank Public Company Limited Family relationship with none management No. of TBANK share(s) held none
242Annual Report 2011 Thanachart Bank Public Company Limited
Mr.Sataporn JinachitraMemberoftheAuditCommitteeandMemberoftheNominationand Remuneration Committee (independent director) Age 63 years Education(s) • MasterofScience(Econometrics), TheLondonSchoolofEconomicsandPoliticalScience(UniversityofLondon), england • BachelorofScience(Economics),UniversityCollegeLondon (UniversityofLondon),England • BachelorofArts(Law),SukhothaiThammathiratOpenUniversity Directorship and executive ThaiInstituteofDirectorsAssociation training program(s) • RoleoftheChairmanProgram(RCP),Class24/2010 • RoleoftheCompensationCommittee(RCC),Class10/2010 • CorporateSocialResponsibility(CSR),Class1/2007 • DCPRefresherCourse,Class2/2006 • DirectorCertificationProgram(DCP),Class0/2000 Experience(s) in the past 5 years 2010 – 2011 • IndependentDirector,MemberoftheAuditCommitteeand MemberoftheNominationandRemunerationCommittee, siam City Bank Public Company Limited 2006 – 2011 • DisputeResolutionCommittee,InterconnectionInstitution,NTC1999 – 2011 • Director,ThaiInstituteofDirectorsAssociation2002 – 2006 • President,Export-ImportBankofThailand Family relationship with none management No. of TBANK share(s) held none
Annual Report 2011 Thanachart Bank Public Company Limited243
Mr.BrendanGeorgeJohnKingViceChairmanoftheExecutiveCommitteeandDeputyChiefExecutiveOfficer(ExecutiveDirector) Age 48years Education(s) • MasterofBusinessAdministration(Finance&InternationalBusiness), YorkUniversity,Canada • BachelorofArts(Business&Economics),YorkUniversity,Canada Directorship and executive • MarketingCertificate,Queen’sUniversityExecutiveManagementProgramtraining program(s) • HonorsDiplomainGeneralManagement,theInstituteofCanadianBankers • TheFundamentalsofCoachingExcellence • Moody’sRiskAnalysis • CommercialSalesLeadershipProgram,Scotiabank • InternationalCommercialBankerDevelopmentProgram,Scotiabank • MerchantBankingIntroductoryCourse • IntroductiontoInvestmentBankingandBondStructuring • Leader-CoachProgram,Scotiabank • StrategicSellingSkillsCourse,Scotiabank Experience(s) in the past 5 years 2011–Present • Director,ScotiaNetherlandsHoldingB.V.2004–Present • Director,Scotiabank(HongKong)Limited,HongKong • Director,ScotiaNominees(HongKong)Limited,HongKong2010–2011 • DirectorandViceChairmanoftheExecutiveCommittee, siam City Bank Public Company Limited 2002–2004 • GeneralManager,InternationalCorporateFinance, Scotiabank(Bahamas)Limited,USA Family relationship with none management No. of TBANK share(s) held none
244Annual Report 2011 Thanachart Bank Public Company Limited
Assoc.Prof.Dr.Somjai PhagaphasvivathanaMemberoftheAuditCommittee(IndependentDirector) Age 66 years Education(s) • DoctoradodeEstado,FacultaddeCienciaPolitica, UniversidadComplutensedeMadrid,Spain • Diplomed’EtudesSuperieures(EconomicIntegration), UniversitedeNancy,France • Licenciatura,FacultaddeCienciaPoliticayEconomica, UniversidadComplutensedeMadrid,Spain • BeachelorofArts,ChulalongkornUniversity Directorship and executive ThaiInstituteofDirectorsAssociation training program(s) • DirectorAccreditationProgram(DAP),Class34/2005 Experience(s) in the past 5 years 2006–Present • IndependentDirectorandChairmanoftheAuditCommittee, seAfCo Public Company Limited 1997–Present • IndependentDirectorandChairmanoftheAuditCommittee, Lee feed Mill Public Company Limited • Director,KrungthepThanakomCompanyLimited • Director,ThaiHuaRubberPublicCompanyLimited1996–Present • IndependentDirectorandMemberoftheAuditCommittee, Amarin Printing and Publishing Public Company Limited 2010–2011 • IndependentDirectorandMemberoftheAuditCommittee, siam City Bank Public Company Limited Family relationship with none management No. of TBANK share(s) held none
Annual Report 2011 Thanachart Bank Public Company Limited245
Mr.KobsakDuangdeeMemberoftheExecutiveCommitteeandExecutiveVicePresident(executive director) Age 55years Education(s) • MasterofBusinessAdministration(Finance),UniversityofTennessee, Knoxville,USA • BachelorofCommerceandAccountancy,ChulalongkornUniversity Directorship and executive ThaiInstituteofDirectorsAssociation training program(s) • FinancialInstitutionsGovernanceProgram(FGP),Class2/2011 • DirectorAccreditationProgram(DAP),Class73/2008Experience(s) in the past 5 years 2011–Present • Liquidator,SCIBPublicCompanyLimited2008–Present • DirectorandMemberoftheExecutiveCommittee, Thanachart securities Public Company Limited • VicePresidentandCountryHead, TheBankofNovaScotia,BangkokRepresentativeOffice2010–2011 • DirectorandMemberoftheExecutiveCommittee, siam City Bank Public Company Limited • Director,SiamCitySecuritiesCompanyLimited2006–2010 • Director,Thai-CanadianChamberofCommerce1997–2008 • VicePresidentandCountryHead,TheBankofNovaScotia,BangkokBranch2003–2005 • President,Thai-CanadianChamberofCommerce Family relationship with none management No. of TBANK share(s) held none
246Annual Report 2011 Thanachart Bank Public Company Limited
Mr. somjate Moosirilert MemberoftheExecutiveCommitteeandChiefExecutiveCommitteeand President (executive director) Age 54years Education(s) • MasterofManagement, SasinGraduateInstituteofBusinessAdministrationofChulalongkornUniversity • BachelorofBusinessAdmininstration,ThammasatUniversity Directorship and executive ThaiInstituteofDirectorsAssociation training program(s) • RoleoftheChairmanProgram(RCP),Class5/2001 CapitalMarketAcademy,TheStockExchangeofThailand • LeadershipProgram,Class5/2007 JudicialTrainingInstitute • CertificateintheprogramforSeniorExecutivesonJusticeAdministration, Class9/2005 Experience(s) in the past 5 years 2011–Present • Governor,TheStockExchangeofThailand • ExecutiveDirector,TheThaiBankers’Association • ViceChairman,ThaiListedCompaniesAssociation • Chairman,TSAssetManagementCompanyLimited2010–Present • ChairmanandChairmanoftheExecutiveCommittee, SiamCityLifeAssuranceCompanyLimited • DirectorandChairmanoftheExecutiveCommittee, Thanachart fund Management Company Limited • DirectorandMemberoftheExecutiveCommittee, Thanachart insurance Company Limited • Advisor,AssociationofSecuritiesCompanies2009–Present • Chairman,ThanachartSecuritiesPublicCompanyLimited • Director,MemberoftheExecutiveCommittee andSeniorExecutiveVicePresident,ThanachartCapitalPublicCompanyLimited2010–2011 • Chairman,SiamCityAssetManagementCompanyLimited • Chairman,ThanachartFundManagementCompanyLimited • Chairman,SiamCitySecuritiesCompanyLimited • Director,ChairmanoftheExecutiveCommitteeandChiefExecutiveOfficer andPresident,SiamCityBankPublicCompanyLimited2010 • Director,ThanachartLifeAssuranceCompanyLimited2009–2011 • ViceChairman,TheStockExchangeofThailand • Director,ThaiCapitalMarketDevelopmentCommittee2009–2010 • PresidentandChiefExecutiveOfficer,ThanachartCapitalPublicCompanyLimited • SeniorExecutiveVicePresident,ThanachartBankPublicCompanyLimited • Director,TSFCSecuritiesPublicCompanyLimited • ExecutiveDirector,AssociationofSecuritiesCompanies2009 • ChairmanoftheExecutiveCommittee,ThanachartSecuritiesPublicCompanyLimited2002–2008 • President,ThaiAssetManagementCorporation Family relationship with none management No. of TBANK share(s) held none
Annual Report 2011 Thanachart Bank Public Company Limited247
Mr.Alberto Jaramillodirector (non-executive director) Age 40years Education(s) • MasterofBusinessAdministration, UniversitédeMontréalÉcoledesHautesÉtudesCommerciales,Canada • AdministradordeEmpresas, InstitutoColombianodeEstudiosSuperioresdeIncolda,Colombia Directorship and executive none training program(s) Experience(s) in the past 5 years 2011–Present • VicePresident&RegionalTreasurer,TheBankofNovaScotia,HongKong2005–2011 • Treasurer,TheBankofNovaScotiaInverlat,Mexico2001–2005 • RiskManagerLatinAmerica,TheBankofNovaScotia,Canada1998–1999 • TradingGroupDirector,CorfinsuraColombia1996–1998 • Trader,CorfivalleColombia Family relationship with none management No. of TBANK share(s) held none
Mrs. noossara Roonsamrarn ExecutiveVicePresident Age 53years Education(s) • MasterofBusinessAdministration,National InstituteofDevelopmentAdministration • BachelorofPoliticalScience,ChulalongkornUniversity Directorship and executive HarvardBusinessSchool training program(s) • CertificateinAdvancedManagementProgram(AMP168) ThailandNationalDefenceCollege • TheJoint-State-PrivateSectorsCourse(NDC22) CapitalMarketAcademy,TheStockExchangeofThailand • LeadershipProgram,Class7(CMA7) ThaiInstituteofDirectorsAssociation • DCPRefresherCourse,Class4/2007 • DirectorCertificationProgram(DCP),Class19/2002 Experience(s) in the past 5 years 1997–Present • DirectorandMemberoftheAuditCommittee, Thanachart insurance Company Limited 2005–2008 • DirectorandMemberoftheAuditCommittee, Thanachart fund Management Company Limited Family relationship with none management No. of TBANK share(s) held none
248Annual Report 2011 Thanachart Bank Public Company Limited
Mr. Piyaphong Artmangkorn ExecutiveVicePresident Age 54years Education(s) • MasterofPublicAdministration(Taxation),UniversityofSouthernCalifornia,USA • BachelorofEconomics,ThammasatUniversity Directorship and executive ThaiInstituteofDirectorsAssociation training program(s) • DirectorAccreditationProgram(DAP),Class8/2004 Experience(s) in the past 5 years 1998–Present • Director,MBKPublicCompanyLimited2006–Present • ExecutiveCommittee,MBKPublicCompanyLimited2010 • Director,SiamCityBankPublicCompanyLimited2005–2009 • ChairmanandChairmanoftheExecutiveCommittee, Thanachart securities Public Company Limited 2001–2008 • Director,ThaiRoyalOrchidRealEstateCompanyLimited2000–2008 • Director,RoyalOrchidHotel(Thailand)PublicCompanyLimited2005–2007 • DirectorandMemberoftheExecutiveCommittee, Thanachart Capital Public Company Limited 1998–2005 • ExecutiveVicePresident,NationalFinancePublicCompanyLimited Family relationship with none management No. of TBANK share(s) held none
Annual Report 2011 Thanachart Bank Public Company Limited249
Mr. nophadon Ruengchinda ExecutiveVicePresident Age 54years Education(s) • MasterofManagement, SasinGraduateInstituteofBusinessAdministrationofChulalongkornUniversity • MasterofBusinessAdministration, NationalInstituteofDevelopmentAdministration • BachelorofPoliticalScience,ChulalongkornUniversity Directorship and executive ThaiInstituteofDirectorsAssociation training program(s) • DirectorCertificationProgram(DCP),Class45/2004 • FinanceforNon-FinanceDirectors(FND),Class11/2004 Experience(s) in the past 5 years 2009–Present • Director,ThanachartTrainingandDevelopmentCompanyLimited2005–Present • Director,ThanachartLifeAssuranceCompanyLimited1998–Present • Director,ThanachartInsuranceCompanyLimited2010 • Director,SiamCityBankPublicCompanyLimited2009–2010 • Director,TLeasingCompanyLimited2004–2009 • DirectorandChairmanoftheAuditCommittee, Thanachart fund Management Company Limited 2000–2009 • Director,ThaiInternationalRentaCarCompanyLimited Family relationship with none management No. of TBANK share(s) held none
250Annual Report 2011 Thanachart Bank Public Company Limited
Mr.Anuwat LuengtaweekulExecutiveVicePresident Age 48years Education(s) • MasterofBusinessAdministration,RangsitUniversity • BachelorofScience(Accounting),KasetsartUniversity Directorship and executive ThaiInstituteofDirectorsAssociation training program(s) • SuccessfulFormulation&ExecutiontheStrategy(SFE),Class3/2009 • BoardandPerformanceEvaluationProgram • DirectorCertificationProgram(DCP),Class24/2002 AssociationofFinanceCompanies • Financers’ExecutiveDevelopmentProgram,Class9/1994 Experience(s) in the past 5 years 2010–Present • Director,RatchthaniLeasingPublicCompanyLimited2010 • Director,SiamCityBankPublicCompanyLimited2007–2009 • Director,MemberoftheExecutiveCommitteeandExecutiveVicePresident, Thanachart Capital Public Company Limited Family relationship with none management No. of TBANK share(s) held none
Mr. Ajay Pratap Mundkur ExecutiveVicePresident Age 47years Education(s) • MasterofBusinessAdministration,JohnM.OnlinSchoolofBusiness, WashingtonUniversity,St.Louis,USA • PostGraduateDiplomainFinancialManagement, SymbiosisInstituteofBusinessManagement,Pune,India • BachelorofCommerce(AccountingandAuditing),UniversityofPune,India Directorship and executive none training program(s) Experience(s) in the past 5 years 2005–2009 • VicePresident,RetailBanking,Asia-PacificRegion,TheBankofNovaScotia Family relationship with none management No. of TBANK share(s) held none
Annual Report 2011 Thanachart Bank Public Company Limited251
Mr. enghug nontikarn ExecutiveVicePresident Age 55years Education(s) • MasterofBusinessAdministration,ThammasatUniversity • BachelorofEconomics,ThammasatUniversity Directorship and executive ThaiInstituteofDirectorsAssociation training program(s) • DirectorAccreditationProgram(DAP),Class25/2004 Experience(s) in the past 5 years 1995–Present • IndependentDirector,MemberoftheAuditCommitteeand MemberoftheNominationCommittee, SrithaiSuperwarePublicCompanyLimited2006–2011 • SeniorExecutiveVicePresident,SiamCityBankPublicCompanyLimited Family relationship with none management No. of TBANK share(s) held none
252Annual Report 2011 Thanachart Bank Public Company Limited
Mr. Rathian srimongkol ExecutiveVicePresident Age 52years Education(s) • MasterofBusinessAdministration,ThammasatUniversity • MasterofPublicAdministration(GeneralManagement), SuanSunandhaRajabhatUniversity • BachelorofMedicine(M.D.),MahidolUniversity • BachelorofScience(MedicalScience),MahidolUniversity • Diploma,NationalDefenceCollege,theJoint-State-PrivateSectorsCourse,Class21 Directorship and executive KingPrajadhipok’sInstitute training program(s) • AdvancedCertificateCourseinPoliticsandGovernanceinDemocraticSystemfor Executives,Class9 CapitalMarketAcademy,TheStockExchangeofThailand • LeadershipProgram,Class11 Experience(s) in the past 5 years 2009–Present • ViceChairmanandChairmanoftheAuditCommittee, IndoramaVenturesPublicCompanyLimited2010–2011 • DirectorandChairmanoftheAuditCommittee, indorama Polyimers Public Company Limited 2008–2011 • ExecutiveVicePresident,SiamCityBankPublicCompanyLimited2008–2010 • Director,TOTPublicCompanyLimited2008 • Chairman,IndustrialEstateAuthorityofThailand2004–2008 • FirstExecutiveVicePresident,SiamCityBankPublicCompanyLimited • Chairman,TheZoologicalParkOrganization Family relationship with none management No. of TBANK share(s) held none Note: Mr.RathianSrimongkolresignedfromExecutiveVicePresidentinTBANKon1January2012
Mrs.PhenchanWeerawuthFirstVicePresident,Accounting Age 59years Education(s) • MasterofAccounting,ThammasatUniversity • BachelorofAccounting,ThammasatUniversity Directorship and executive none training program(s) Experience(s) in the past 5 years 2005–2011 • FirstVicePresident,Accounting,SiamCityBankPublicCompanyLimited Family relationship with none management No. of TBANK share(s) held none
Annual R
eport 2011 Thanachart Bank Public C
ompany Lim
ited253
TheinformationoftheExecutivesandAuthorizedpersons’positioninsubsidiary,associatedandrelatedcompanies As at 31 December 2011
Name List
Mr. Banterng Tantivit XXX XXX XX XXX XXX/// X XXX X X XXX X X
Mr. suphadej Poonpipat XX/// XX///A X///X/// XX// X X X X XX/// X X
Mrs.Michele ChiuKwok XX X X g X X X X X
Mr.Kiettisak Meecharoen X X X X
Mr. narong Chivangkur X X X X
Ms. suvarnapha suvarnaprathip X// X// X/ X
Mr.Sataporn Jinachitra X
Mr.Brendan GeorgeJohnKing X//B X X X
Assoc.Prof.Dr.Somjai X X X X X X
Phagaphasvivathana
Mr.Kobsak Duangdee X/D X/ G
Mr. somjate Moosirilert X/A X/C XXX X/// X/ XXX/// XXX X
Mr.Alberto Jaramillo X X f
Mrs. noossara Roonsamrarn d X
Mr. Piyaphong Artmangkorn D X/
Mr. nophadon Ruengchinda d X X X
Mr.Anuwat Luengtaweekul d X
Mr. Ajay Pratap Mundkur d
Mr. enghug nontikarn d X
Mr. Rathian srimongkol d X
Mrs.Phenchan Weerawuth e
TB
AN
K Subsidiary CompaniesAssoci-
ated Company
ParentCompany Related Companies
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46
Note: XXX=Chairman XX=ViceChairman X=Director ///=ChairmanoftheExecutiveCommittee //=ViceChairmanoftheExecutiveCommittee /=MemberoftheExecutiveCommittee
A=PresidentandChiefExecutiveOfficer B=DeputyChiefExecutiveOfficer C=SeniorExecutiveVicePresident D=ExecutiveVicePresident E=FirstVicePresident
F=VicePresident G=AuthorizedPersonManagementPower
254Annual Report 2011 Thanachart Bank Public Company Limited
ListofParentCompanySubsidiary,AssociatedandRelatedCompanies Parent Company 1. Thanachart Capital Public Company Limited Subsidiary Companies 2. Thanachart securities Public Company Limited 7. Ts Assets Management Company Limited 3. Thanachart fund Management Company Limited 8. Rachthani Leasing Public Company Limited 4. ThanachartInsuranceCompanyLimited 9. ThanachartManagementandServiceCompanyLimited 5. ThanachartLifeAssuranceCompanyLimited 10. ThanachartTrainingandDevelopmentCompanyLimited 6. SiamCityLifeAssuranceCompanyLimited Associated Companies 11. MBKPublicCompanyLimited Related Companies 12. SiamPiwatHoldingCompanyLimited 31. SafetyInsurancePublicCompanyLimited13. MBKResortPublicCompanyLimited 32. MomChailaiDevelopmentCompanyLimited14. SiamPiwatCompanyLimited 33. MomentumIMCompanyLimited15. B.V.HoldingCompanyLimited 34. MomentumBBSCompanyLimited16. PlanEstateCompanyLimited 35. SeaconDevelopmentPublicCompanyLimited17. DeebukCompanyLimited 36. ScotiaNetherlandsHoldingB.V.18. ThaiFarmingCompanyLimited 37. ScotiaNominees(HongKong)Limited,HongKong 19. Patum Rice Mill and granary Public Company Limited 38. seAfCo Public Company Limited 20. RoyalOrchidHotel(Thailand)PublicCompanyLimited 39. LeeFeedMillPublicCompanyLimited21. ThaiRoyalOrchidRealEstateCompanyLimited 40. KrungthepThanakomCompanyLimited22. CanadaChinaBusinessCouncil,Canada 41. ThaiHuaRubberPublicCompanyLimited23. TheCanadianChamberofCommerce,HongKong 42. AmarinPrinting&PublishingPublicCompanyLimited24. TheBankofNovaScotia,HongKong 43. SCIBPublicCompanyLimited25. Scotiabank(HongKong)Limited,HongKong 44. TheBankofNovaScotia,BangkokRepresentativeOffice26. BoracayLimited,HongKong 45. TheStockExchangeofThailand27. TheBankofNovaScotiaAsiaLimited,Singapore 46. SrithaiSuperwarePublicCompanyLimited28. TheBankofNovaScotiaBerhad,Malaysia 47. IndoramaVenturesPublicCompanyLimited29. Scotiatrust(Asia)Limited,HongKong 30. Tararom enterprise Public Company Limited
Annual Report 2011 Thanachart Bank Public Company Limited 255
1 Thanachart Securities Plc. Securities Ordinary 1,500,000,000 1,499,999,930 100.00
444 MBK Tower,14th, 18th, and 19th Floor, Share
Phayathai Road, Wangmai, Pathumwan,
Bangkok 10330
Tel. +66 (0) 2217-8888,
+66 (0) 2217-9595
Fax +66 (0) 2217-9642
2 Thanachart Insurance Co., Ltd. Non-Life Ordinary 74,000,000 73,999,434 100.00
999/1 The Nine Tower 2nd-3rd, 5th Floor, Insurance Share
999/2, 4th Floor, 999/3 4th Floor,
Rama 9 Road, Suanluang, Bangkok 10250
Tel. +66 (0) 2308-9300
Fax +66 (0) 2308-9333
3 Thanachart Life Assurance Co., Ltd. Life Ordinary 50,000,000 49,999,400 100.00
999/1 The Ninth Tower 1st, 4th-5th Floor, Assurance Share
999/4, 4th Floor, Rama 9 Road, Suanluang,
Bangkok 10250
Tel. +66 (0) 2308-9400
Fax +66 (0) 2308-9444
4 Thanachart Legal and Appraisal Co., Ltd.3 Legal Ordinary 1,000,000 999,993 100.00
128/20-21 Phayathai Plaza Office, 3rd Floor, Advisory Share
Phayathai Road, Thung Phaya Thai, Services
Ratchathewi, Bangkok 10400 and Appraisal
Tel. +66 (0) 2216-6677
Fax +66 (0) 2216-9022
5 Thanachart Management and Services Services Ordinary 600,000 599,993 100.00
Co., Ltd. Share
128/23 Phayathai Plaza Office, 3rd Floor,
Phayathai Road, Thung Phaya Thai,
Ratchathewi, Bangkok 10400
Tel. +66 (0) 2612-1500
Fax +66 (0) 2612-1400
Investment of TBANK in Other Companies
Details of TBANK and its Subsidiary Companies, Associated Companies, and Other Companies in which it hold 10 percent of shares and over
Type of Type of Total numberv of Total number of
Percent of No. Company/Locations
Business shares paid-up shares shares held TBANK’s
shareholding1
GeNeRAL INFORMATION
256 Annual Report 2011 Thanachart Bank Public Company Limited
6 Thanachart Training and Development Training Ordinary 500,000 499,993 100.00
Co., Ltd.
207/6 Thanachart Building, 5th Floor,
Ratchadaphisek Road, Dindaeng,
Bangkok 10400
Tel. +66 (0) 2290-3410
Fax +66 (0) 2290-3419
7 Thanachart Group Leasing Co., Ltd. Leasing Ordinary 36,000,000 35,999,994 100.00
444 MBK Tower, 11th Floor, Phayathai Road, Share
Wangmai, Pathumwan, Bangkok 10330
Tel. +66 (0) 2217-8000,
+66 (0) 2217-8333
Fax +66 (0) 2611-9488
8 National Leasing Co., Ltd.2 Leasing Ordinary 600,000 599,994 100.00
444 MBK Tower, 12th Floor, Share
Phayathai Road, Wangmai, Phayathai,
Pathumwan, Bangkok 10330
Tel. +66 (0) 2217-8000
9 Siam City Life Assurance Co., Ltd. Life Ordinary 70,000,000 69,999,994 100.00
231 Thanachart Park Place, 9th-11th Floor, Assurance Share
Rachadamri Road, Lumpini, Pathumwan,
Bangkok 10330
Tel. +66 (0) 2207-4200
Fax +66 (0) 2253-8484
10 SCIB Services Co., Ltd. Services Ordinary 100,000 99,998 100.00
1091/230 New Petchburi Road, Share
Makkasan, Ratchathewi, Bangkok 10400
Tel. +66 (0) 2208-5061-2
Fax +66 (0) 2651-6611
11 TS Asset Management Co., Ltd. Non- Ordinary 200,000,000 199,999,997 100.00
1101 Petchburi Building, 9th Floor performing Share
New Petchburi Road, Makkasan, asset
Ratchathewi, Bangkok 10400 management
Tel. +66 (0) 2208-5555
Fax +66 (0) 2208-5892
12 Thanachart Broker Co., Ltd. Insurance Ordinary 10,000,000 9,999,000 99.99
1 Glas Haus Building, 4th Floor, Broker Share
Soi Sukhumvit 25, Klongtoey Nuea,
Watthana, Bangkok 10110
Tel. +66 (0) 2685-0200,
+66 (0) 2685-0300
Fax +66 (0) 0685-0322, 2685-0333
Type of Type of Total numberv of Total number of
Percent of No. Company/Locations
Business shares paid-up shares shares held TBANK’s
shareholding1
Annual Report 2011 Thanachart Bank Public Company Limited 257
13 SCIB Public Co., Ltd.3 Sale of Ordinary 2,112,810,676 2,112,375,422 99.98
1091/230 New Petchburi Road, company Share
Makkasan, Ratchathewi, assets
Bangkok 10400
Tel. +66 (0) 2208-5061-2
Fax +66 (0) 2651-6611
14 Thanachart Fund Management Co., Ltd. Mutual Ordinary 10,000,000 7,499,993 75.00
898 Ploenchit Tower, 15th and 18th Floor, Fund Shar
Ploenchit Road, Lumpini, Pathumwan, Management
Bangkok 10330
Tel. +66 (0) 2126-8300
Fax +66 (0) 2126-8398
15 Rachthani Leasing Public Co., Ltd. Leasing Ordinary 1,342,349,708 874,973,000 65.18
77/35-36 Sinn Sathorn Tower, 11upth Floor, Share
Krung Thonburi Road, Klong Ton Sai,
Klong San, Bangkok 10600
Tel. +66 (0) 2440-0844
Fax +66 (0) 2440-0848
16 Thoon Ruam Kan Co., Ltd.3 Others Ordinary 240,000 80,000 33.33
133/2 Soi Sukumvit 21, Sukumvit Road, Share
Klongtoey, Bangkok 10110
Tel. +66 (0) 2259-0284
Fax +66 (0) 2258-7043
17 Siam Samsung Life Insurance Co., Ltd. Insurance Ordinary 50,000,000 12,500,000 25.00
2922/222-227, 15th Floor, Share
2922/262, 21st Floor,
Charn Issara Tower II, New Petchburi Road,
Bangkapi, Huay Klang, Bangkok 10320
Tel. +66 (0) 2308-2261-8
Fax +66 (0) 2308-2269
18 Siam Media and Communication Co., Ltd.3 Commu- Ordinary 7,000,000 1,633,800 23.34
18 Building 2 West SCB Park Plaza, nication Share
17th-22nd Floor, Ratchadapisek Road,
Ladyao, Chatuchak, Bangkok 10900
Tel. +66 (0) 2544-2451
Fax +66 (0) 2544-3317
19 Siam City Leasing and Factoring Plc. Leasing Ordinary 29,999,971 4,500,000 15.00
1091/179-181 New Petchburi Road, Share
Makkasan, Ratchathewi, Bangkok 10400
Tel. +66 (0) 2254-8744
Type of Type of Total numberv of Total number of
Percent of No. Company/Locations
Business shares paid-up shares shares held TBANK’s
shareholding1
258 Annual Report 2011 Thanachart Bank Public Company Limited
20 High Pressure Steal Pipe Industry Industrial Ordinary 500,001 70,470 14.09
Co., Ltd.3 pipe Share
36/4 Moo 2 Soi Wat Mahawong, Manufacturing
Phuchaosmingprai Road, Samrong,
Prapha Daeng, Samut Prakarn 10130
Tel. +66 (0) 2393-4485
21 Puen Pob Paet Co., Ltd. Medical Ordinary 100,000 9,998 10.00
444 MBK Tower, 9th Floor, Phayathai Road, Clinic Share
Wangmai, Pathumwan, Bangkok 10330
Tel. +66 (0) 2217-9836-7
22 Crystal City Development Co., Ltd.3 Construction Ordinary 750,000 75,000 10.00
419 Sathupradit Road, Chong Nonsi, Share
Yannawa Bangkok 10120
Tel. +66 (0) 2255-6470
Fax +66 (0) 2255-6495
23 Metropolitan Industrial Leasing Co., Ltd.3 Leasing Ordinary 5,000,000 500,000 10.00
81/42 Moo 5, Surasak, Sriracha, Share
Chonburi 20110
Tel. +66 (0) 3804-8052
24 Steel Top Co., Ltd. Manufacturing Ordinary 74,000,000 7,400,000 10.00
551/144 Sathupradit Road, Chong Nonsi, Share
Yannawa, Bangkok 10120
Tel. +66 (0) 2719-9643
25 Sahakol Chassis Co., Ltd. Vehicle Ordinary 45,000,000 4,500,000 10.00
1418/6-8 Phaholyotin Road, Lard Yao, Share
Chatuchak, Bangkok 10900
Tel. +66 (0) 2512-0336-41
Fax +66 (0) 2513-2424
26 Siam Tire Cord Co., Ltd. Textiles Ordinary 20,000 2,000 10.00
46/1 Moo 9, Bang Na-Trat Road, K. M. 39, and apparel Share
Bangprakong, Chachoengsao, 24180
Tel. +66 (0) 3853-8400-6
Fax +66 (0) 3853-8399
27 Soonvijai Development Co., Ltd.3 Construction Ordinary 13,000 1,300 10.00
1740 New Petchburi Road, Bangkapi, Share
Huai Khwang, Bangkok 10310
Type of Type of Total numberv of Total number of
Percent of No. Company/Locations
Business shares paid-up shares shares held TBANK’s
shareholding1
Annual Report 2011 Thanachart Bank Public Company Limited 259
28 Modular Samko Co., Ltd.3 Household Ordinary 3,500,000 350,000 10.00
155 Moo 14, Suhkumvit Sai Kao Road, Share
Bangpakong, Chachoengsao 24130
Tel. +66 (0) 3853-2050-3
Fax +66 (0) 3853-0053
29 Siam Euro Leasing Co., Ltd.3 Finance Ordinary 13,000,000 1,300,000 10.00
20/22 Soi Prommitr, Suhkumvit Road, and Share
Klong Tan Nuea, Watthana, Securities
Bangkok 10110
30 Siam City Real Estate Services Co., Ltd.3 Construction Ordinary 1,000,000 100,000 10.00
62 Thaniya Building, 1st Floor, Share
Silom Road, Suriyawong,
Bangrak, Bangkok 10500
Notes: 1 Shareholding percentage shown included the shareholding of by related companies.
2 TBANK indirectly held shares through TGL which was in line with the definition of subsidiaries company announced by the SeT.
3 Held by TBANK, which is in the process of liquidation, dissolution, bankruptcy, receivership or abandoned.
TBANK’S ReFeReNCeS Location of Head office: 900 Tonson Tower, Ploenchit Road, Lumpini, Pathumwan, Bangkok 10330, Thailand Registration No.: 0107536001401 Registered Capital: THB 59,346,192,720, consist of common shares of 5,934,619,272 shares with a value of THB 10 per share. (As of December 31, 2011) Paid-up Capital: THB 55,136,649,030, consist of common shares of 5,513,664,903 shares with a value of THB 10 per share. (As of December 31, 2011) Website: www.thanachartbank.co.th Telephone: +66 (0) 2655-9000 Fax +66 (0) 2655-9001 Thanachart Contact Center: 1770
Type of Type of Total numberv of Total number of
Percent of No. Company/Locations
Business shares paid-up shares shares held TBANK’s
shareholding1
260 Annual Report 2011 Thanachart Bank Public Company Limited
Name, Location, Telephone and Fax of Other References Ordinary shares Securities Representative/Registrar Thailand Securities Depository Company Limited 62 The Stock exchange of Thailand Building, Ratchadaphisek Road, Khlongtoei, Bangkok 10110, Thailand Tel. +66 (0) 2229-2800 Call Center +66 (0) 2229-2888 www.tsd.co.th Debentures TBANK155A, TBANK194A, TBANK197A and TBANK247A Debenture Representative/Registrar Thai Military Bank Public Company Limited 393 Silom Road, Silom, Bangrak, Bangkok 10500, Thailand Tel. +66 (0) 2230-6061 Fax +66 (0) 2230-6093 Website: www.tmbbank.com TBANK204A Debenture Representative/Registrar CIMB Thai Public Company Limited 44 Lungsuna Building, 15th Floor, Lungsuan Road, Lumpini, Pathumwan, Bangkok 10330, Thailand Tel. +66 (0) 2626-7503 Fax +66 (0) 2633-9026 Website: www.cimbthai.com TBANK196A Debenture Representative/Registrar Thanachart Bank Public Company Limited Securities and Trustee Services 1 Glas Haus Building, Ground Floor, Sukhumvit 25 Road, Klongtoey Nuea, Watthana, Bangkok 10110, Thailand Tel. +66 (0) 2207-4900 ext 1300, 1317 Fax +66 (0) 2207-4930-1 Website: www.thanachartbank.com Hybrid Tier I Debenture Representative/Registrar Thanachart Bank Public Company Limited Securities Operation Section 444 MBK Tower, 20th Floor, Payathai Road, Wangmai Pathumwan Bangkok 10330, Thailand Tel. +66 (0) 2217-8000 ext 3833 Fax +66 (0) 2611-4839 Website: www.thanachartbank.co.th Auditor Miss Phuphun Charoensuk, Certified Public Accountant (Thailand) No. 4950 Ernst & Young Office Limited 193/136-137 Lake Rajada Office Complex, 33rd Floor, Rachadaphisek Road, Klongtoey, Bangkok 10110, Thailand Tel. +66 (0) 2264-0777 Fax +66 (0) 2264-0789-90 Financial Advisor None Advisor or Manager under None Management Contract
Annual Report 2011 Thanachart Bank Public Company Limited 261
Rank List Of Shareholders No. Of Shares Percentage of Shareholding
1. Thanachart Capital Public Company Limited 2,809,726,575 50.960 2. Scotia Netherlands Holdings B.V. 2,701,627,557 48.999 3. Mr. Thung-ngern Pum-ngern 418,462 0.008 4. Ms. Kittima Tolieng 157,525 0.003 5. Mr. Sathit Majurintangkurg 110,327 0.002 6. Ms. Piengjai Hanphanit 96,665 0.002 7. Mr. Wanchai Chirathivat 84,809 0.002 8. Mr. Thanawat Chareonthassanont 70,000 0.001 9. Mr. Pinit Laosoontorn 63,569 0.001 10. Mr. Somyos Jittipralungsri 60,000 0.001 By receivership of Legal execution Department of Thai Finance and Securities Plc. 11. Other Shareholders 1,249,414 0.023 Total Paid-up Capital 5,513,664,903 100.000 Thai Shareholders 2,811,994,046 51.000 Foreign Shareholders 2,701,670,857 49.000
Group of major shareholders who have significant influence over the formulation of management policies
There are two major shareholders who have significant influence over management policies, which are TCAP and the Scotia Netherlands Holdings B.V., which holds 50.960 percent and 48.999 percent of the total paid-up shares respectively.
TCAP does not have any major shareholder which has significant influence over its management policies or its
operation.
Source: Report of the Bank’s Major shareholders as of December 30, 2011 prepared by Thailand Securities Depository Co., Ltd.
STRUCTURe OF MAJOR SHAReHOLDeRS List of top ten major shareholders
262 Annual Report 2011 Thanachart Bank Public Company Limited
Dividend Payment Policy Dividend Payment Policy of Thanachart Bank
TBANK has a policy to pay dividend out of its net profit after deduction of all reserve funds according to requiremrnt of the relevant laws. Payment of dividends is subject to investment plans and other necessaries as seen appropriate by the Board of Directors. The Board, however, may approve to pay an interim dividend and will report to the Shareholders at the next Shareholders Meeting.
At the Annual General Meeting of Shareholders for the year 2011 held on 7 April 2011, the shareholders passed
a resolution approving the dividend payment for the year 2010 performance to the Bank shareholders at a rate of THB 0.40 per share. The dividend payment was made, on 26 April 2011, to 5,513,664,903 shares in the total amount of THB 2,205,465,961.20. Dividend Payment Policy of the Subsidiary Companies
TBANK has not fixed a dividend payout ratio for its subsidiaries. Their dividend payments shall depend on
the operating results of each company.
The subsidiary companies, similar to TBANK, have a policy to paying dividend out of their net profit after deduction of all reserve funds according to requirments of the relevant laws. Payment of dividends is subject to investment plans and other necessaries as seen appropriate by the Board of Directors. The Board, however, may approve to pay an interim dividend and will report to the shareholders at the next Shareholders Meeting.
Annual Report 2011 Thanachart Bank Public Company Limited 263
COMPANIeS IN THANACHART GROUP THANACHART CAPITAL Public Company Limited 444 MBK Tower, 10th-11 th and 15th-20th Floor, Phayathai Road,Wangmai, Pathumwan, Bangkok 10330, THAILAND Tel. +66 (0) 2217-8444, 2217-8000, 2611-9111 Fax +66 (0) 2613-6099 www.thanachart.co.th Registration No. 0107536000510 THANACHART BANK Public Company Limited 900 Tonson Tower, Ploenchit Road, Lumpini, Pathumwan, Bangkok 10330, THAILAND Tel. +66 (0) 2655-9000 Fax +66 (0) 2655-9001 www.thanachartbank.co.th Registration No. 0107536001401 THANACHART SECURITIES Public Company Limited 444 MBK Tower, 14th, 18th and 19th Floor, Phayathai Road, Wangmai, Pathumwan, Bangkok 10330, THAILAND Tel. +66 (0) 2217-8888, 2217-9595, 2611-9222 Fax +66 (0) 2217-9642 www.tnsitrade.com Registration No. 0107557000591 THANACHART FUND MANAGEMENT Company Limited 898 Ploenchit Tower, 15th and 18th Floor, Ploenchit Road, Lumpini, Pathumwan, Bangkok 10330, THAILAND Tel. +66 (0) 2126-8300 Fax +66 (0) 2126-8398 www.thanachartfund.co.th Registration No. 0105535049696 THANACHART INSURANCE Company Limited 999/1 The Nine Tower, 2nd-3rd, 5th Floor, 999/2, 4th Floor, 999/3, 4th Floor, Rama 9 Road, Suanluang, Bangkok 10250, THAILAND Tel. +66 (0) 2308-9300 Fax +66 (0) 2308-9333 www.thanachartinsurance.co.th Registration No. 0105540060091
SIAM CITY LIFE ASSURANCE Company Limited 231 Thanachart Park Place, 9th-11th Floor, Rachadamri Road, Lumpini, Pathumwan, Bangkok 10330, THAILAND Tel. +66 (0) 2207-4200 Fax +66 (0) 2253-8484 www.scilife.co.th Registration No. 0105540057138 THANACHART LIFE ASSURANCE Company Limited 999/1 The Ninth Tower 1st, 4th-5th Floor, 999/4, 4th Floor, Rama 9 Road, Suanluang, Bangkok 10250, THAILAND Tel. +66 (0) 2308-9400 Fax +66 (0) 2308-9444 www.thanachartlife.co.th Registration No. 0105540057090 TS ASSETS MANAGEMENT Company Limited 1101 Petchburi Building, 9th Floor, New Petchburi Road, Makkasan, Ratchathewi, Bangkok 10400, THAILAND Tel. +66 (0) 2208-5555 Fax +66 (0) 2208-5892 http://property.scib.co.th/property Registration No. 0105554031624 THANACHART GROUP LEASING Company Limited 444 MBK Tower, 11th Floor, Phayathai Road, Wangmai, Pathumwan, Bangkok 10330, THAILAND Tel. +66 (0) 2217-8000, 2217-8333 Fax +66 (0) 2611-9488 Registration No. 0105538045861 RATCHTHANI LEASING Public Company Limited 77/35-36 Sinn Sathorn Tower, 11upth Floor, Krung Thonburi Road, Klong Ton Sai, Klong San, Bangkok 10600, THAILAND Tel. +66 (0) 2440 0844 Fax +66 (0) 2440 0848 www.ratchthani.com Registration No. 0107545000209
264 Annual Report 2011 Thanachart Bank Public Company Limited
Information as of December 31, 2011 HEAD OFFICE
Tonson Branch
Tel. +66 (0) 2655-9560-4
Fax +66 (0) 2655-9585
BANGKOK AND VICINITY
Tonson Branch
Tel. +66 (0) 2655-9560-4
Fax +66 (0) 2655-9585
Phetchaburi Office Branch
Tel. +66 (0) 2208-5000,
+66 (0) 2253-0200-43
Fax +66 (0) 2253-6198
Suan Mali Office Branch
Tel. +66 (0) 2225-9999,
+66 (0) 2223-0561
Fax +66 (0) 2224-3810
Department of Land Transport
Branch
Tel. +66 (0) 2272-6073-5,
+66 (0) 2272-6076
Fax +66 (0) 2272-6077
Green Place (Soi Wat Phai Ngoen)
Branch
Tel. +66 (0) 2211-3515,
+66 (0) 2211-3519-20
Fax +66 (0) 2674-9704
Kluai Nam Thai Branch
Tel. +66 (0) 2258-6620-1
Fax +66 (0) 2258-5505
Crystal Design Center Branch
Tel. +66 (0) 2102-2410-2
Fax +66 (0) 2102-2413
Khlong Chan Branch
Tel. +66 (0) 2377-1364,
+66 (0) 2377-1368-9
Fax +66 (0) 2377-3609
BRANCHeS OF THANACHART BANK PUBLIC COMPANY LIMITeD
Khlong Tan Branch
Tel. +66 (0) 2314-2642-4,
+66 (0) 2719-8030
Fax +66 (0) 2719-8031
Khlong Toei Branch
Tel. +66 (0) 2240-0161,
+66 (0) 2249-2633
Fax +66 (0) 2249-4789
Khlong Thom Branch
Tel. +66 (0) 2221-1677,
+66 (0) 2221-1671
Fax +66 (0) 2221-1679
Charan Sanitwong 13 Branch
Tel. +66 (0) 2864-1560-3
Fax +66 (0) 2864-1566
Charan Sanitwong 35 Branch
Tel. +66 (0) 2411-0511,
+66 (0) 2411-0545
Fax +66 (0) 2411-0607
Chamchuri Square Branch
Tel. +66 (0) 2160-5254-6,
+66 (0) 2160-5257
Fax +66 (0) 2160-5258
Cha Ru Mueang Branch
Tel. +66 (0) 2214-1488,
+66 (0) 2214-1739
Fax +66 (0) 2214-2038
Charoen Krung 17 Branch
Tel. +66 (0) 2224-1839,
+66 (0) 2225-7194
Fax +66 (0) 2224-2059
Charoen Nakhon Soi 36 Branch
Tel. +66 (0) 2862-5010-6
Fax +66 (0) 2862-5017
Charoen Phon Branch
Tel. +66 (0) 2215-6628-30
Fax +66 (0) 2215-6627
Charn Issara Tower (Rama IV)
Branch
Tel. +66 (0) 2267-4296-8
Fax +66 (0) 2267-4299
Charn Issara Tower II Branch
Tel. +66 (0) 2308-2955-8,
+66 (0) 2718-1834
Fax +66 (0) 2308-2950
Chok Chai 4 Branch
Tel. +66 (0) 2931-0895-7
Fax +66 (0) 2931-0798
Seacon Square Branch
Tel. +66 (0) 2721-8548-50
Fax +66 (0) 2721-8551
Seacon Square Srinagarindra
Branch
Tel. +66 (0) 2721-9955
Fax +66 (0) 2721-8321
Century the Movie Plaza Branch
Tel. +66 (0) 2245-8500-2
Fax +66 (0) 2245-8504
Central Pin Klao Branch
Tel. +66 (0) 2884-9680-3
Fax +66 (0) 2884-9684
Central Rama II Branch
Tel. +66 (0) 2872-4770
Fax +66 (0) 2872-4769
Central Rama III Branch
Tel. +66 (0) 2211-8260
Fax +66 (0) 2211-8190
Central Ram Inthra Branch
Tel. +66 (0) 2552-7462,
+66 (0) 2970-5517
Fax +66 (0) 2970-5518
Central Bang Na Branch
Tel. +66 (0) 2398-9572-3
Fax +66 (0) 2398-9574
Central Plaza Grand Rama IX
Branch
Tel. +66 (0) 2160-2950-52,
+66 (0) 2160-2953
Fax +66 (0) 2160-2954
Central Lat Phrao Branch
Tel. +66 (0) 2937-1279,
+66 (0) 2937-1280
Fax +66 (0) 2937-1283
Annual Report 2011 Thanachart Bank Public Company Limited 265
Central World Branch
Tel. +66 (0) 2646-1346-9,
+66 (0) 2646-1353
Fax +66 (0) 2646-1350
Central World Plaza (3) Branch
Tel. +66 (0) 2255-6163,
+66 (0) 2255-9658-9
Fax +66 (0) 2255-9657
Don Mueang Branch
Tel. +66 (0) 2929-7004,
+66 (0) 2566-1950-1
Fax +66 (0) 2566-3425
The Avenue Chaengwattana
Branch
Tel. +66 (0) 2573-0673-5
Fax +66 (0) 2573-0677
The Nine (Thanon Rama IX)
Branch
Tel. +66 (0) 2319-1662-4,
+66 (0) 2716-7868
Fax +66 (0) 2718-7868
The Paseo (Lat Krabang) Branch
Tel. +66 (0) 2346-4103-4,
+66 (0) 2346-4109
Fax +66 (0) 2346-4111
The Mall Bang Kapi (2) Branch
Tel. +66 (0) 2734-3735-6
Fax +66 (0) 2734-3647
The Mall 2 Ramkhamhaeng Branch
Tel. +66 (0) 2369-2486,
+66 (0) 2369-2482
Fax +66 (0) 2369-2484
The Mall Tha Phra Branch
Tel. +66 (0) 2477-7321-3
Fax +66 (0) 2477-7324
The Mall Bangkapi Branch
Tel. +66 (0) 2375-1575
Fax +66 (0) 2375-1686
The Mall Bang Khae Branch
Tel. +66 (0) 2803-8310
Fax +66 (0) 2803-8305
The Mall Bang Khae (2) Branch
Tel. +66 (0) 2803-8373-4
Fax +66 (0) 2803-8375
Trok Chan Branch
Tel. +66 (0) 2211-1286,
+66 (0) 2211-4511
Fax +66 (0) 2211-4653
Talat Bang Khun Non Branch
Tel. +66 (0) 2434-6067-8,
+66 (0) 2434-6078
Fax +66 (0) 2882-4581
Talat Bang Khae Branch
Tel. +66 (0) 2801-1004-6
Fax +66 (0) 2801-1007
Talat Phlu Branch
Tel. +66 (0) 2466-7404,
+66 (0) 2466-7423
Fax +66 (0) 2465-1767
Talat Ying Charoen Branch
Tel. +66 (0) 2552-8043,
+66 (0) 2552-8045
Fax +66 (0) 2972-3161
Talat Saphan Mai Don Mueang
Branch
Tel. +66 (0) 2521-1670,
+66 (0) 2521-0612-3
Fax +66 (0) 2521-0611
Talat Samrae Branch
Tel. +66 (0) 2472-2045-50
Fax +66 (0) 2472-2052
Talat Mo Chit Branch
Tel. +66 (0) 2278-5300-1,
+66 (0) 2270-0308
Fax +66 (0) 2279-3411
Taling Chan Branch
Tel. +66 (0) 2882-7790-4
Fax +66 (0) 2882-7796
Tao Pun Branch
Tel. +66 (0) 2587-7292,
+66 (0) 2587-7284-5
Fax +66 (0) 2587-7379
TOYOTA BUZZ Kaset-Nawamin
Branch
Tel. +66 (0) 2561-0069-71,
+66 (0) 2561-0072
Fax +66 (0) 2561-0073
Thanon Romklao Housing Branch
Tel. +66 (0) 2543-9200-1,
+66 (0) 2543-9191
Fax +66 (0) 2543-9192
Thanon Chak Phet
(Pak Khlong Talat) Branch
Tel. +66 (0) 2225-1555,
+66 (0) 2225-1628
Fax +66 (0) 2623-6527
Thanon Chan Branch
Tel. +66 (0) 2285-5360,
+66 (0) 2285-5368
Fax +66 (0) 2285-5361
Thanon Charoen Nakhon Branch
Tel. +66 (0) 2438-6953-5,
+66 (0) 2860-2018
Fax +66 (0) 2860-4355
Thanon Chalong Krung Branch
Tel. +66 (0) 2327-8111-3
Fax +66 (0) 2327-8114
Thanon Nang Linchi Branch
Tel. +66 (0) 2286-1971,
+66 (0) 2286-1898
Fax +66 (0) 2286-1939
Thanon Borom Rat Chonnani
Branch
Tel. +66 (0) 2446-8061-4
Fax +66 (0) 2446-8065
Thanon Burapha (Phahurat)
Branch
Tel. +66 (0) 2221-2069,
+66 (0) 2221-5239
Fax +66 (0) 2221-5128
Thanon Prajadhipok
(Wongwian Yai) Branch
Tel. +66 (0) 2437-0188,
+66 (0) 2437-2596
Fax +66 (0) 2437-5784
Thanon Pracha Uthit
(Thung Khru) Branch
Tel. +66 (0) 2426-7017-9,
+66 (0) 2873-4029
Fax +66 (0) 2873-4030
266 Annual Report 2011 Thanachart Bank Public Company Limited
Thanon Rama II
(Thon Buri Housing 3) Branch
Tel. +66 (0) 2451-4402,
+66 (0) 2451-4460
Fax +66 (0) 2451-4882
Thanon Rama II (Soi 3) Branch
Tel. +66 (0) 2427-1552-3
Fax +66 (0) 2427-1551
Thanon Rama IX Branch
Tel. +66 (0) 2246-7829-30
Fax- +66 (0) 2246-8473
Thanon Phrasumen
(Bang Lamphu) Branch
Tel. +66 (0) 2281-6821,
+66 (0) 2281-6332
Fax +66 (0) 2281-7457
Thanon Phatthanakan Branch
Tel. +66 (0) 2369-2814-7
Fax +66 (0) 2369-2818
Thanon Phatthanakan 22 Branch
Tel. +66 (0) 2318-7241-2,
+66 (0) 2318-7620
Fax +66 (0) 2318-7393
Thanon Petchaburi Soi 20 Branch
Tel. +66 (0) 2251-6018,
+66 (0) 2251-6852
Fax +66 (0) 2252-6935
Thanon Petchaburi Tat Mai Branch
Tel. +66 (0) 2254-0252-4
Fax +66 (0) 2254-0255
Thanon Pho Phanit (Ratchawong)
Branch
Tel. +66 (0) 2622-9050,
+66 (0) 2622-4093
Fax +66 (0) 2622-9029
Thanon Mangkon Branch
Tel. +66 (0) 2225-3331,
+66 (0) 2225-3863
Fax +66 (0) 2225-8364
Thanon Ramkhamhaeng 2 Branch
Tel. +66 (0) 2397-6173-5,
+66 (0) 2728-4060
Fax +66 (0) 2728-4061
Thanon Witthayu
(All Seasons Place) Branch
Tel. +66 (0) 2252-6784-5
Fax +66 (0) 2252-6786
Thanon Sathon Tai
(Thai CC Tower) Branch
Tel. +66 (0) 2675-5697-9,
+66 (0) 2675-5700
Fax +66 (0) 2675-5701
Thanon Sathon Nuea Branch
Tel. +66 (0) 2267-7512-4,
+66 (0) 2637-8651
Fax +66 (0) 2637-8975
Thanon Sirindhorn Branch
Tel. +66 (0) 2434-5028-9,
+66 (0) 2434-5947-8
Fax +66 (0) 2434-5661
Thanon Suea Pa Branch
Tel. +66 (0) 2221-4327-9,
+66 (0) 2623-0578
Fax +66 (0) 2623-0579
Arun Ammarin Branch
Tel. +66 (0) 2424-0888,
+66 (0) 2424-0999
Fax +66 (0) 2433-7061
Thanon Ekkachai (Bang Bon 5)
Branch
Tel. +66 (0) 2450-3741-3
Fax +66 (0) 2450-3744
Thong Lo Branch
Tel. +66 (0) 2381-8421-2,
+66 (0) 2381-8364-5
Fax +66 (0) 2381-8423
Thong Lo Soi 17 Branch
Tel. +66 (0) 2185-2756,
+66 (0) 2185-2758-61
Fax +66 (0) 2185-2757
Thong Lo Soi 3 Branch
Tel. +66 (0) 2392-5802-4,
+66 (0) 2712-8245
Fax +66 (0) 2712-8168
Thong Lo Soi 7 Branch
Tel. +66 (0) 2392-0527-8
Fax +66 (0) 2391-1862
Tops RCA Branch
Tel. +66 (0) 2203-0267-9,
+66 (0) 2641-5120
Fax +66 (0) 2641-5121
Tha Din Daeng Branch
Tel. +66 (0) 2863-1283-8
Fax +66 (0) 2863-1289
Tha Phra Chan Branch
Tel. +66 (0) 2221-6486,
+66 (0) 2225-4466
Fax +66 (0) 2225-8933
Thewet Branch
Tel. +66 (0) 2628-7240-4,
+66 (0) 2628-7247
Fax +66 (0) 2282-8810
Tesco Lotus Bang Kapi Branch
Tel. +66 (0) 2377-8029,
+66 (0) 2377-8457
Fax +66 (0) 2377-8508
Tesco Lotus Rama II Branch
Tel. +66 (0) 2415-9130-2,
+66 (0) 2415-9133
Fax +66 (0) 2892-8004
Tesco Lotus Rama IV Branch
Tel. +66 (0) 2249-7533-5,
+66 (0) 2249-7536
Fax +66 (0) 2249-7537
Tesco Lotus Phet Kasem 81 Branch
Tel. +66 (0) 2489-2087-9,
+66 (0) 2812-4072
Fax +66 (0) 2812-4073
Tesco Lotus Lat Phrao Branch
Tel. +66 (0) 2512-1955,
+66 (0) 2512-1963
Fax +66 (0) 2939-3043
Tesco Lotus Wang Hin Branch
Tel. +66 (0) 2578-6194-6
Fax +66 (0) 2578-6197
Thian Kua Thian Branch
Tel. +66 (0) 2221-3575-6,
+66 (0) 2622-9063
Fax +66 (0) 2221-3575
Annual Report 2011 Thanachart Bank Public Company Limited 267
Thai Summit Tower
(Thanon Petchaburi Tat Mai)
Branch
Tel. +66 (0) 2252-6458,
+66 (0) 2251-1327
Fax +66 (0) 2251-1357
Thaniya Branch
Tel. +66 (0) 2236-3520-1,
+66 (0) 2236-5339
Fax +66 (0) 22369119
Nawamin 42 Branch
Tel. +66 (0) 2375-1281-2,
+66 (0) 2375-1284
Fax +66 (0) 2375-1285
Nawamin 66 Branch
Tel. +66 (0) 2519-5724,
+66 (0) 2519-4616
Fax +66 (0) 2519-4627
Nawamin Market Place Branch
Tel. +66 (0) 2519-1142,
+66 (0) 2519-1154
Fax +66 (0) 2946-7432
Nang Loeng Branch
Tel. +66 (0) 2281-0842,
+66 (0) 2281-2169
Fax +66 (0) 2281-2322
Na Na Nuea Branch
Tel. +66 (0) 2252-0709,
+66 (0) 2252-6540
Fax +66 (0) 2253-5668
Bang Khun Non Branch
Tel. +66 (0) 2424-9778-9,
+66 (0) 2433-6028-9
Fax +66 (0) 2434-9772
Bang Khae Branch
Tel. +66 (0) 2454-6225-7,
+66 (0) 2454-2790-2
Fax +66 (0) 2413-1329
Bang Khlo Branch
Tel. +66 (0) 2289-4223,
+66 (0) 2289-4236
Fax +66 (0) 2289-4159
Bang Sue Branch
Tel. +66 (0) 2587-0616,
+66 (0) 2587-0686
Fax +66 (0) 2585-9659
Bang Na Branch
Tel. +66 (0) 2397-3757
Fax +66 (0) 2398-0185
Bang Na-Trat km. 4 Branch
Tel. +66 (0) 2399-2841-4,
+66 (0) 2399-2844
Fax +66 (0) 2399-2845
Bang Bon Branch
Tel. +66 (0) 2899-8533-5
Fax +66 (0) 2899-8540
Bang Phlat Branch
Tel. +66 (0) 2435-7205,
+66 (0) 2435-6808-10
Fax +66 (0) 2435-6807
Bang Mod Branch
Tel. +66 (0) 2428-7014-5,
+66 (0) 2428-6913-6
Fax +66 (0) 2428-6994
Bang Yi Ruea Branch
Tel. +66 (0) 2472-2664-7
Fax +66 (0) 2472-2668
Bang Rak Branch
Tel. +66 (0) 2234-4227-9,
+66 (0) 2630-9026
Fax +66 (0) 2630-9027
Bang Lamphu Branch
Tel. +66 (0) 2356-0783,
+66 (0) 2356-0782
Fax +66 (0) 2356-0787
Bamrung Mueang Branch
Tel. +66 (0) 2216-9794-7,
+66 (0) 2214-0606-8
Fax +66 (0) 2216-9798
Big C Chaeng Wattana Branch
Tel. +66 (0) 2574-3525-7
Fax +66 (0) 2574-3528
Big C Don Mueang Branch
Tel. +66 (0) 2551-0638-9,
+66 (0) 2551-0641
Fax +66 (0) 2551-0642
Big C Bang Na Branch
Tel. +66 (0) 2396-0482,
+66 (0) 2396-0484-5
Fax +66 (0) 2396-0500
Big C Bang Bon Branch
Tel. +66 (0) 2416-9969-71
Fax +66 (0) 2416-9974
Big C Phet Kasem Branch
Tel. +66 (0) 2444-2927,
+66 (0) 2444-2904
Fax +66 (0) 2444-2909
Big C Sukhaphiban 3
(Ramkhamhaeng) Branch
Tel. +66 (0) 2916-3584-5,
+66 (0) 2916-3604
Fax +66 (0) 2916-3607
Big C Sukhaphiban 5 Branch
Tel. +66 (0) 2153-1513-4,
+66 (0) 2153-1566
Fax +66 (0) 2153-1567
Big C Ekkamai Branch
Tel. +66 (0) 2714-8274-7
Fax +66 (0) 2714-8268
Bo Bae Branch
Tel. +66 (0) 2356-0755-8
Fax +66 (0) 2356-0759
Bobae Tower Branch
Tel. +66 (0) 2628-1693-5,
+66 (0) 2628-1690
Fax +66 (0) 2628-1696
Baiyoke Pratu Nam Branch
Tel. +66 (0) 2208-0824-5
Fax +66 (0) 2208-0826
PTT Thanon Seri Thai Branch
Tel +66 (0) 2187-2009-11,
+66 (0) 2187-2012
Fax +66 (0) 2187-2013
Pracha Chuen Branch
Tel. +66 (0) 2585-6811,
+66 (0) 2585-9656
Fax +66 (0) 2585-2666
Pracha Uthit Branch
Tel. +66 (0) 2873-4721-3,
+66 (0) 2873-5848
Fax +66 (0) 2873-5849
Pracha Uthit (Huai Khwang)
Branch
Tel. +66 (0) 2934-4181-3
Fax +66 (0) 2934-4184
268 Annual Report 2011 Thanachart Bank Public Company Limited
Pratu Nam Branch
Tel. +66 (0) 2208-0072,
+66 (0) 2208-0074-5
Fax +66 (0) 2208-0076
Prawet Branch
Tel. +66 (0) 2322-2223,
+66 (0) 2722-1371
Fax +66 (0) 2322-8943
Pak Khlong Talat Branch
Tel. +66 (0) 2221-7511,
+66 (0) 2222-0686
Fax +66 (0) 2222-4794
Pin Klao Branch
Tel. +66 (0) 2435-4273-4,
+66 (0) 2435-4577-8
Fax +66 (0) 2435-4518
Rama III Branch
Tel. +66 (0) 2682-7322-6,
+66 (0) 2682-7328-9
Fax +66 (0) 2682-7327
Rama IV Branch
Tel. +66 (0) 2249-4201-3,
+66 (0) 2671-0260
Fax +66 (0) 2249-4204
Phran Nok Branch
Tel. +66 (0) 2418-0785,
+66 (0) 2418-0787
Fax +66 (0) 2418-0786
Phlapphlachai Branch
Tel. +66 (0) 2224-6922-3,
+66 (0) 2224-6931
Fax +66 (0) 2224-6947
Phahon Yothin Soi 6 Branch
Tel. +66 (0) 2279-9874-5
Fax +66 (0) 2279-9895
Phahon Yothin Soi 9 Branch
Tel. +66 (0) 2270-1371-3,
+66 (0) 2619-6399
Fax +66 (0) 2619-6339
Phatthanakan Branch
Tel. +66 (0) 2719-4580-3
Fax +66 (0) 2719-4591
Paradise Park Branch
Tel. +66 (0) 2325-9072-4
Fax +66 (0) 2325-9075
Phahurat Branch
Tel. +66 (0) 2221-4409,
+66 (0) 2623-8097
Fax +66 (0) 2623 8098
P.B. Tower (Khlong Tan) Branch
Tel. +66 (0) 2381-3114-5,
+66 (0) 2381-3121-2
Fax +66 (0) 2381-3124
Phet Kasem Branch
Tel. +66 (0) 2456-0337-42
Fax +66 (0) 2454-4116
Phet Kasem 69 Branch
Tel. +66 (0) 2809-3034-8
Fax +66 (0) 2809-3041
Phloen Chit Center Branch
Tel. +66 (0) 2656-8403-7
Fax +66 (0) 2656-8400
Platinum Pratu Nam Branch
Tel. +66 (0) 2121-9683-5,
+66 (0) 2121-9686
Fax +66 (0) 2121-9687
Fashion Island Branch
Tel. +66 (0) 2519-5784,
+66 (0) 2519-5753
Fax +66 (0) 2519-5718
Fashion Island (2) Branch
Tel. +66 (0) 2947-6402-5
Fax +66 (0) 2947-6410
Money Park Branch
Tel. +66 (0) 2686-3960-1,
+66 (0) 2686-3962
Fax +66 (0) 2686-3959
Mah Boon Krong Branch
Tel. +66 (0) 2611-5710-4
Fax +66 (0) 2611-5717
Min Buri Branch
Tel. +66 (0) 2517-8014-5,
+66 (0) 2517-9321
Fax +66 (0) 2517-8016
Major Ratchayothin Branch
Tel. +66 (0) 2512-1082,
+66 (0) 2512-1102
Fax +66 (0) 2939-5372
Union Mall Lat Phrao Branch
Tel. +66 (0) 2511-0236,
+66 (0) 2511-0246
Fax +66 (0) 2511-0268
Union Mall (2) Branch
Tel. +66 (0) 2512-4304,
+66 (0) 2512-2040
Fax +66 (0) 2512-5516
Yaowarat Branch
Tel. +66 (0) 2221-1868,
+66 (0) 2221-1845-7
Fax +66 (0) 2221-1869
Ratchada Phisek Branch
Tel. +66 (0) 2641-2225-8
Fax +66 (0) 2641-3233
Ratchada Phisek
(Glas Haus Building) Branch
Tel. +66 (0) 2693-9811,
+66 (0) 2290-3500
Fax +66 (0) 2693-9820
Ratchada Phisek-Tha Phra Branch
Tel. +66 (0) 2878-8845-50
Fax +66 (0) 2878-8852
Ratchada-Huai Khwang Branch
Tel. +66 (0) 2694-1489-91,
+66 (0) 2694-1495
Fax +66 (0) 2694-1496
Ratchadamnoen Branch
Tel. +66 (0) 2221-3391,
+66 (0) 2223-6010
Fax +66 (0) 2222-9635
Ratchadamnoen Klang Branch
Tel. +66 (0) 2226-3083-5,
+66 (0) 2621-2185
Fax +66 (0) 2621-2186
Ratchadamri Branch
Tel. +66 (0) 2251-3113,
+66 (0) 2251-4314
Fax +66 (0) 2251-4316
Ratcha Prarop Branch
Tel. +66 (0) 2245-4968-9,
+66 (0) 2642-6054-5
Fax +66 (0) 2245-0882
Annual Report 2011 Thanachart Bank Public Company Limited 269
Ratchawong Branch
Tel. +66 (0) 2224-5705,
+66 (0) 2224-5870
Fax +66 (0) 2224-5792
Ratcha Wat Branch
Tel. +66 (0) 2241-0868,
+66 (0) 2243-6183
Fax +66 (0) 2241-1483
Ramkhamhaeng 155 Branch
Tel. +66 (0) 2373-0005,
+66 (0) 2373-0007-8
Fax +66 (0) 2373-0004
Ramkhamhaeng 73 Branch
Tel. +66 (0) 2375-2126-7,
+66 (0) 2374-9644
Fax +66 (0) 2375-2452
Ramkhamhaeng Soi 122 Branch
Tel. +66 (0) 2372-2377-9
Fax +66 (0) 2728-2950
Ramkhamhaeng Soi 129 Branch
Tel. +66 (0) 2372-3318-20,
+66 (0) 2729-5625
Fax +66 (0) 2729-5832
Ramkhamhaeng Soi 24 Branch
Tel. +66 (0) 2300-4957-8,
+66 (0) 2300-4956
Fax +66 (0) 2719-1258
Ram Inthra Branch
Tel. +66 (0) 2943-5630-2,
+66 (0) 2519-0824-5
Fax +66 (0) 2519-0826
Ram Inthra (Km. 7) Branch
Tel. +66 (0) 2510-9610,
+66 (0) 2510-9882
Fax +66 (0) 2510-9197
Ram Inthra (Km. 8) Branch
Tel. +66 (0) 2510-6900,
+66 (0) 2510-2342
Fax +66 (0) 2510-9875
Navaminthra 9 Hospital Branch
Tel. +66 (0) 2518-1100,
+66 (0) 2518-2360-1
Fax +66 (0) 2518-2363
Paolo Memorial Hospital
Chok Chai 4 Branch
Tel. +66 (0) 2514-3277,
+66 (0) 2933-2291
Fax +66 (0) 2933-2292
Ramkhamhaeng Hospital Branch
Tel. +66 (0) 2374-1523-5,
+66 (0) 2374-1561
Fax +66 (0) 2374-1562
Lat Phrao Hospital Branch
Tel. +66 (0) 2932-2473-5,
+66 (0) 2932-2529
Fax +66 (0) 2932-2530
Vichaiyut Hospital Branch
Tel. +66 (0) 2278-2194-6
Fax +66 (0) 2278-2606
Samitivej Hospital Sukhumwit 49
Branch
Tel. +66 (0) 2712-7013-4
Fax +66 (0) 2712-7016
Lat Krabang Branch
Tel. +66 (0) 2327-2754-7
Fax +66 (0) 2327-2706
Lat Phrao Branch
Tel. +66 (0) 2512-2343-4,
+66 (0) 2938-2433
Fax +66 (0) 2512-2342
Lat Phrao 118 Branch
Tel. +66 (0) 2539-2925-7
Fax +66 (0) 2530-4348
Lat Phrao 53 Branch
Tel. +66 (0) 2539-1167,
+66 (0) 2553-9150-7
Fax +66 (0) 2539-2261
Lat Phrao 80 Branch
Tel. +66 (0) 2933-9172,
+66 (0) 2933-9174-5
Fax +66 (0) 2933-9178
Lat Phrao Soi 101 Branch
Tel. +66 (0) 2187-0162-4,
+66 (0) 2187-0165
Fax +66 (0) 2187-0161
Lam Sa Li Branch
Tel. +66 (0) 2735-2060-3
Fax +66 (0) 2735-2067
Leng Noei Yi Branch
Tel. +66 (0) 2221-1248,
+66 (0) 2221-3501
Fax +66 (0) 2223-3211
Wongwian Yai Branch
Tel. +66 (0) 2438-2486,
+66 (0) 2438-2562
Fax +66 (0) 2438-2568
Wong Sawang Branch
Tel. +66 (0) 2834-9999,
+66 (0) 2834-9900
Fax +66 (0) 2834-9905
Wong Sawang Town Center Branch
Tel. +66 (0) 2586-0420-2
Fax +66 (0) 2910-7949
Watcharaphon Branch
Tel. +66 (0) 2508-2185-7
Fax +66 (0) 2508-2207
Wat Phra Ya Kai Branch
Tel. +66 (0) 2289-3026-7,
+66 (0) 2289-5033
Fax +66 (0) 2289-5032
Wutthakat Branch
Tel. +66 (0) 2249-4201-3,
+66 (0) 2466-6160
Fax +66 (0) 2472-5838
Woeng Nakhon Khasem Branch
Tel. +66 (0) 2222-2430,
+66 (0) 2221-7201-4
Fax +66 (0) 2222-6475
Si Worachak Branch
Tel. +66 (0) 2222-1912,
+66 (0) 2222-1917
Fax +66 (0) 2622-9338
Siwara Branch
Tel. +66 (0) 2538-8466,
+66 (0) 2538-8986
Fax +66 (0) 2538-9378
Appeal Court Branch
Tel. +66 (0) 2938-3421-6
Fax +66 (0) 2938-3428
Sirirat Branch
Tel. +66 (0) 2412-4515,
+66 (0) 2412-4583-4
Fax +66 (0) 2866-3218
270 Annual Report 2011 Thanachart Bank Public Company Limited
Vichaiyut Medical Center Branch
Tel. +66 (0) 2357-1916-8
Fax +66 (0) 2619-7043
The Government Complex
Commemorating (Building A)
Branch
Tel. +66 (0) 2143-9631-33
Fax +66 (0) 2143-9634
The Government Complex
Commemorating Chaengwattana
(Building B) Branch
Tel. +66 (0) 2143-9393-5,
+66 (0) 2143-9396
Fax +66 (0) 2143-9397
Sanam Pao Branch
Tel. +66 (0) 2271-0026-8,
+66 (0) 2271-0029
Fax +66 (0) 2271-0030
Siam Discovery Branch
Tel. +66 (0) 2658-0491-3
Fax +66 (0) 2658-0494
Siam Paragon Branch
Tel. +66 (0) 2129-4374-7
Fax +66 (0) 2129-4372
Siam Square Branch
Tel. +66 (0) 2252-7363-5,
+66 (0) 2252-7366
Fax +66 (0) 2252-7367
Song Prapha Branch
Tel. +66 (0) 2928-8542-5
Fax +66 (0) 2928-8546
Suan Phlu Branch
Tel. +66 (0) 2287-3084-5,
+66 (0) 2679-3027
Fax +66 (0) 2679-3028
Suan Lumphini (Thanon Sarasin)
Branch
Tel. +66 (0) 2252-2677-8,
+66 (0) 2651-9037
Fax +66 (0) 2252-2679
Saphan Khwai Branch
Tel. +66 (0) 2279-3942,
+66 (0) 2279-5633
Fax +66 (0) 2616-6747
Rama VII Bridge (Bang Phlat)
Branch
Tel. +66 (0) 2423-9011-3,
+66 (0) 2423-9014
Fax +66 (0) 2423-9015
Saphan Mai Don Mueang Branch
Tel. +66 (0) 2970-4400-3
Fax +66 (0) 2970-4408
Sathu Pradit 49 Branch
Tel. +66 (0) 2682-0610-8
Fax +66 (0) 2682-0619
Sam Yan Branch
Tel. +66 (0) 2215-1549,
+66 (0) 2215-4199
Fax +66 (0) 2216-6170
Sam Yaek Branch
Tel. +66 (0) 2223-2706-8
Fax +66 (0) 2223-2705
Sam Yaek Fai Chai Branch
Tel. +66 (0) 2411-3446,
+66 (0) 2418-3575-6
Fax +66 (0) 2411-2321
Sam Pheng Branch
Tel. +66 (0) 2222-7396,
+66 (0) 2222-7551
Fax +66 (0) 2225-8468
Samrae Branch
Tel. +66 (0) 2468-0609,
+66 (0) 2468-1008-9
Fax +66 (0) 2476-5423
Si Kak Phra Ya Si Branch
Tel. +66 (0) 2222-4477-8,
+66 (0) 2226-2267
Fax +66 (0) 2225-7036
Si Phra Ya Branch
Tel. +66 (2) 2335-3057,
+66 (0) 2672-1914
Fax +66 (0) 2233-4174
Si Yaek Kaset Branch
Tel. +66 (0) 2579-1340,
+66 (0) 2579-3483
Fax +66 (0) 2579-6794
Si Yaek Chaloem Buri
(Yaowarat) Branch
Tel. +66 (0) 2221-1236,
+66 (0) 2221-7194
Fax +66 (0) 2225-0580
Si Yaek Ban Khaek Branch
Tel. +66 (0) 2465-2115,
+66 (0) 2466-1950
Fax +66 (0) 2465-5071
Si Yaek Prawet Branch
Tel. +66 (0) 2328-8023-5
Fax +66 (0) 2328-8027
Silom Branch
Tel. +66 (0) 2266-7414,
+66 (0) 2266-7417-8
Fax +66 (0) 2266-7416
Silom (Thanon Pan) Branch
Tel. +66 (0) 2237-9317-20,
+66 (0) 2235-5800-2
Fax +66 (0) 2237-9321
Silom Soi 15 Branch
Tel. +66 (0) 2237-4192-4,
+66 (0) 2635-0272
Fax +66 (0) 2635-0270
Silom Complex Branch
Tel. +66 (0) 2235-8832
Fax +66 (0) 2235-8833
Sukhumwit 71 Branch
Tel. +66 (0) 2391-6067,
+66 (0) 2392-5944
Fax +66 (0) 2392-2534
Sukhumwit Soi 101/1 (Piyarom Place)
Branch
Tel. +66 (0) 2332-7060-2,
+66 (0) 2741-8016
Fax +66 (0) 2741-8017
Sukhumwit Soi 25 Branch
Tel. +66 (0) 2259-4727-9,
+66 (0) 2259-4726
Fax +66 (0) 2259-4730
Sukhumwit Soi 47 Branch
Tel. +66 (0) 2204-0307-9,
+66 (0) 2662-7708
Fax +66 (0) 2662-5632
Annual Report 2011 Thanachart Bank Public Company Limited 271
Sukhumwit Soi 66 Branch
Tel. +66 (0) 2393-7123,
+66 (0) 2395-5959
Fax +66 (0) 2399-2399
Sutthi San Branch
Tel. +66 (0) 2616-3553-8
Fax +66 (0) 2616-3561
Surawong Branch
Tel. +66 (0) 2234-5964-6,
+66 (0) 2631-7030
Fax +66 (0) 2631-7031
Seri Thai 32 Branch
Tel. +66 (0) 2376-1043-46
Fax +66 (0) 2376-1122
Nong Khaem Branch
Tel. +66 (0) 2445-4788,
+66 (0) 2445-4790-2
Fax +66 (0) 2445-4789
Huai Khwang Branch
Tel. +66 (0) 2692-0061,
+66 (0) 2692-2098-100
Fax +66 (0) 2276-1134
Hua Lam Phong Branch
Tel. +66 (0) 2237-9710-4
Fax +66 (0) 2237-9713
Hua Mak Branch
Tel. +66 (0) 2314-2627,
+66 (0) 2314-0086-7
Fax +66 (0) 2314-7277
Anu Wong Branch
Tel. +66 (0) 2222-0161-3,
+66 (0) 2222-0169
Fax +66 (0) 2225-8931
Victory Monument Branch
Tel. +66 (0) 2644-7474-6,
+66 (0) 2354-9330-1
Fax +66 (0) 2354-9351
Asok Branch
Tel. +66 (0) 2260-7831-4
Fax +66 (0) 2260-7839
Asok-Din Daeng Branch
Tel. +66 (0) 2641-7547-9
Fax +66 (0) 2641-7566
On Nuch 52 Branch
Tel. +66 (0) 2322-1557-9
Fax +66 (0) 2322-1556
All Seasons Place Branch
Tel. +66 (0) 2250-7611-3,
+66 (0) 2250-7614
Fax +66 (0) 2250-7615
B.B. Building (Asok) Branch
Tel. +66 (0) 2204-1695-7,
+66 (0) 2204-1698
Fax +66 (0) 2204-1699
Berli Jucker House (Kluai Nam Thai)
Branch
Tel. +66 (0) 2381-5065-7
Fax +66 (0) 2381-5068
Vorawat Building Silom Branch
Tel. +66 (0) 2635-1150-2
Fax +66 (0) 2635-1157
Vibulthani Tower (Rama IV) Branch
Tel. +66 (0) 2661-5534-7
Fax +66 (0) 2661-5539
Siam Kit Building Branch
Tel. +66 (0) 2251-6763,
+66 (0) 2252-5252
Fax +66 (0) 2253-9429
India Emporium Branch
Tel. +66 (0) 2224-0133,
+66 (0) 2224-0135
Fax +66 (0) 2623-9434
Udom Suk Branch
Tel. +66 (0) 2398-4024-7
Fax +66 (0) 2398-4028
Ekkamai 28 Branch
Tel. +66 (0) 2392-2831,
+66 (0) 2392-7278-9
Fax +66 (0) 2392-2832
MBK Center Branch
Tel. +66 (0) 2611-4752-4,
+66 (0) 2611-4843
Fax +66 (0) 2611-4751
MBK Tower Branch
Tel. +66 (0) 2611-9480
Fax +66 (0) 2611-9557
Esplanade Ratchada Branch
Tel. +66 (0) 2354-2052-4
Fax +66 (0) 2660-9250
IT Square Branch
Tel. +66 (0) 2576-0104-5
Fax +66 (0) 2576-0106
VICINITY
King Kaeo Branch
Tel. +66 (0) 2316-1990-2,
+66 (0) 2750-0184-5
Fax +66 (0) 2317-1312
Khru Nai Branch
Tel. +66 (0) 2462-8020,
+66 (0) 2462-8034
Fax +66 (0) 2462-6193
Khlong Luang Branch
Tel. +66 (0) 2516-1230-3,
+66 (0) 2516-1202
Fax +66 (0) 2516-1203
Chaeng Wattana Branch
Tel. +66 (0) 2982-9192-5
Fax +66 (0) 2982-9441
Chaeng Wattana (Software Park)
Branch
Tel. +66 (0) 2962-0066,
+66 (0) 2962-0415-6
Fax +66 (0) 2962-0376
Central Chaengwattana Branch
Tel. +66 (0) 2193-8114-6,
+66 (0) 2101-0709
Fax +66 (0) 2101-0710
Central Rattanathibet Branch
Tel. +66 (0) 2525-4736-8,
+66 (0) 2969-7536
Fax +66 (0) 2969-7537
Zeer-Rangsit Branch
Tel. +66 (0) 2992-6807-9
Fax +66 (0) 2992-6810
The Mall Ngamwongwan Branch
Tel. +66 (0) 2550-1231-3,
+66 (0) 2550-1234
Fax +66 (0) 2550-1235
272 Annual Report 2011 Thanachart Bank Public Company Limited
Talat Klang Bang Yai Branch
Tel. +66 (0) 2595-0682-4
Fax +66 (0) 2595-0685
Talat Thai Branch
Tel. +66 (0) 2529-6171-2,
+66 (0) 2529-6173
Fax +66 (0) 2529-6175
Talat Bang Bua Thong Branch
Tel. +66 (0) 2571-3598-9,
+66 (0) 2571-3373-5
Fax +66 (0) 2571-7845
Talat Pak Nam Branch
Tel. +66 (0) 2702-8380-4
Fax +66 (0) 2702-8388
Talat Samrong Branch
Tel. +66 (0) 2756-8411-4
Fax +66 (0) 2756-8419
Thanon Rangsit-Pathum Thani Branch
Tel. +66 (0) 2567-5808,
+66 (0) 2567-2738-9
Fax +66 (0) 25675809
Thanon Samakkhi Branch
Tel. +66 (0) 2574-2794-5
Fax +66 (0) 2574-2793
Tha Nam Nonthaburi Branch
Tel. +66 (0) 2527-0255-60
Fax +66 (0) 2527-0254
Tha Nam Phra Pradaeng Branch
Tel. +66 (0) 2463-0488,
+66 (0) 2463-2228
Fax +66 (0) 2464-2156
Thepharak Branch
Tel. +66 (0) 2759-6061-4,
+66 (0) 2759-6066
Fax +66 (0) 2759-6067
Tesco Lotus Navanakhon Branch
Tel. +66 (0) 2529-6187-9,
+66 (0) 2529-6186
Fax +66 (0) 2909-7097
Tesco Lotus Rattanathibet Branch
Tel. +66 (0) 2950-1160,
+66 (0) 2950-1297
Fax +66 (0) 2950-1157
Tesco Lotus Lam Luk Ka Khlong 6
Branch
Tel. +66 (0) 2569-1694,
+66 (0) 2998-8163
Fax +66 (0) 2998-8164
Tesco Lotus Srinagarindra Branch
Tel. +66 (0) 2175-7844-6,
+66 (0) 2759-9053
Fax +66 (0) 2759-9054
Tesco Lotus Samakkhi Branch
Tel. +66 (0) 2582-8146-8,
+66 (0) 2997-6041
Fax +66 (0) 2997-6042
Nonthaburi Branch
Tel. +66 (0) 2526-3453-6
Fax +66 (0) 2526-3457
Navanakhon Branch
Tel. +66 (0) 2909-0620-3,
+66 (0) 2909-0626
Fax +66 (0) 2909-0625
Bang Pu Industrial Estate Branch
Tel. +66 (0) 2324-0360,
+66 (0) 2324-0364
Fax +66 (0) 2324-0805
Bang Kruai Branch
Tel. +66 (0) 2447-2897,
+66 (0) 2447-5095
Fax +66 (0) 2883-8619
Bang Khru Branch
Tel. +66 (0) 2817-5417-19
Fax +66 (0) 2817-5423
Bang Bua Thong Branch
Tel. +66 (0) 2571-7124,
+66 (0) 2920-6621
Fax +66 (0) 2920-9603
Bang Pu Branch
Tel. +66 (0) 2323-2960-3
Fax +66 (0) 2323-2964
Bang Yai Branch
Tel. +66 (0) 2594-1143,
+66 (0) 2594-1152
Fax +66 (0) 2594-1161
Big C Bang Phli Branch
Tel. +66 (0) 2312-2284,
+66 (0) 2312-2300
Fax +66 (0) 2312-2321
Big C Bang Phli (2) Branch
Tel. +66 (0) 2752-5632-3
Fax +66 (0) 2752-5635
Big C Samut Prakan Branch
Tel. +66 (0) 2702-1792-3,
+66 (0) 2702-1859
Fax +66 (0) 2702-1982
Big C Samrong 2 Branch
Tel. +66 (0) 2380-1100-2,
+66 (0) 2755-0239
Fax +66 (0) 2755-0240
Big C Suk Sawat (2) Branch
Tel. +66 (0) 2463-7700,
+66 (0) 2463-1894-6
Fax +66 (0) 2463-7144
Big C Suk Sawat Branch
Tel. +66 (0) 2463-0992-3
Fax +66 (0) 2463-0980
Pathum Thani Branch
Tel. +66 (0) 2581-5766,
+66 (0) 2581-6976
Fax +66 (0) 2581-6925
Pak Kret Branch
Tel. +66 (0) 2960-9928-30,
+66 (0) 2583-7246
Fax +66 (0) 2583-7562
Pak Nam Branch
Tel. +66 (0) 2173-7882-4,
+66 (0) 2702-8036
Fax +66 (0) 2702-8037
Pu Chao Saming Prai Branch
Tel. +66 (0) 2183-2044,
+66 (0) 2183-2046-7
Fax +66 (0) 2183-2043
Phra Pradaeng Branch
Tel. +66 (0) 2463-3940-1,
+66 (0) 2463-3841-57
Fax +66 (0) 2463-6897
Annual Report 2011 Thanachart Bank Public Company Limited 273
Pantip Plaza Ngamwongwan Branch
Tel. +66 (0) 2953-5056-7
Fax +66 (0) 2953-5058
Future Park Rangsit Branch
Tel. +66 (0) 2958-5116-8,
+66 (0) 2958-5119
Fax +66 (0) 2958-5121
Future Park Rangsit (2) Branch
Tel. +66 (0) 2958-0914-5
Fax +66 (0) 2958-0917
Huachiew Chalermprakiet University
Branch
Tel. +66 (0) 2312-6600-5
Fax +66 (0) 2312-6603
Mueang Mai-Bang Phli Branch
Tel. +66 (0) 2706-0322-6
Fax +66 (0) 2706-0329
Rangsit Branch
Tel. +66 (0) 2567-1117,
+66 (0) 2567-5586
Fax +66 (0) 2567-6694
Rangsit-Khlong 3 Branch
Tel. +66 (0) 2990-8806-8
Fax +66 (0) 2533-1659
Rattanathibet Branch
Tel. +66 (0) 2969-9040-3,
+66 (0) 2969-9046
Fax +66 (0) 2969-9048
Paolo Memorial Hospital
Samut Prakan Branch
Tel. +66 (0) 2182-7239-41,
+66 (0) 2182-7242
Fax +66 (0) 2182-7243
Lam Luk Ka Branch
Tel. +66 (0) 2994-5747-51
Fax +66 (0) 2994-5753
Samut Prakan Branch
Tel. +66 (0) 2388-0099,
+66 (0) 2395-0045
Fax +66 (0) 2395-2021
Bang Kadi Industrial Park Branch
Tel. +66 (0) 2501-1254-6
Fax +66 (0) 2501-1257
Sam Yaek Phra Pradaeng Branch
Tel. +66 (0) 2463-2156-7,
+66 (0) 2462-6284
Fax +66 (0) 2462-5355
Samrong Branch
Tel. +66 (0) 2396-0278-80,
+66 (0) 2745-3482-3
Fax +66 (0) 2399-5103
Samrong Nuea Branch
Tel. +66 (0) 2384-7141,
+66 (0) 2384-7244
Fax +66 (0) 2384-7678
Si Mum Mueang-Rangsit Branch
Tel. +66 (0) 2531-9774,
+66 (0) 2531-3445
Fax +66 (0) 2531-9636
Nam Daeng Branch
Tel. +66 (0) 2385-2511-2,
+66 (0) 2385-2920
Fax +66 (0) 2385-2921
Ha Yaek Pak Kret Branch
Tel. +66 (0) 2583-7574,
+66 (0) 2583-9144
Fax +66 (0) 2584-3959
Imperial World Samrong Branch
Tel. +66 (0) 2380-2943-5,
+66 (0) 2756-9023
Fax +66 (0) 2756-9024
Homework Ratchaphruek Branch
Tel. +66 (0) 2447-6690-92
Fax +66 (0) 2447-6693
CENTRAL REGION
Kabin Buri Branch
Tel. +66 (0) 3728-1156,
+66 (0) 3728-1333
Fax +66 (0) 3728-1155
Krathum Baen Branch
Tel. +66 (0) 3447-2422,
+66 (0) 3447-2651-2
Fax +66 (0) 3447-1511
Kanchanaburi Branch
Tel. +66 (0) 3451-8763,
+66 (0) 3462-1565-6
Fax +66 (0) 3451-4961
Kamphaeng Saen Branch
Tel. +66 (0) 3435-1100,
+66 (0) 3435-1614
Fax +66 (0) 3435-1094
Kaeng Khoi Branch
Tel. +66 (0) 3624-4176,
+66 (0) 3624-4179
Fax +66 (0) 3624-4178
304 Industrial Park Branch
Tel. +66 (0) 3741-4378-80
Fax +66 (0) 3741-4381
Khao Wang Branch
Tel. +66 (0) 3242-5350,
+66 (0) 3242-8352
Fax +66 (0) 3242-8351
Khlong Khru Branch
Tel. +66 (0) 3482-7086,
+66 (0) 3482-7093
Fax +66 (0) 3482-7094
Cha-am Branch
Tel. +66 (0) 3243-4130-1,
+66 (0) 3247-1158
Fax +66 (0) 3247-1185
Dan Chang Branch
Tel. +66 (0) 3559-5497
Fax +66 (0) 3559-5499
Damnoen Saduak Branch
Tel. +66 (0) 3225-3810-2
Fax +66 (0) 3225-3813
Talat Chao Prom Branch
Tel. +66 (0) 3524-4768,
+66 (0) 3524-5162-3
Fax +66 (0) 3524-5441
Talat Tha Na (Nakhon Chai Si) Branch
Tel. +66 (0) 3433-1107-9
Fax +66 (0) 3433-1151
Talat Mahachai Branch
Tel. +66 (0) 3481-0287-8
Fax +66 (0) 3481-0467
Talat Suphan Buri Branch
Tel. +66 (0) 3551-1330,
+66 (0) 3551-1590
Fax +66 (0) 3552-3881
274 Annual Report 2011 Thanachart Bank Public Company Limited
Thanon Khun San (Sing Buri) Branch
Tel. +66 (0) 3651-1199,
+66 (0) 3652-1200-1
Fax +66 (0) 3652-1202
Thanon Sai Phra (Nakhon Pathom)
Branch
Tel. +66 (0) 3425-5317-9
Fax +66 (0) 3425-4915
Thanon Songphon Branch
Tel. +66 (0) 3220-0427,
+66 (0) 3221-1900
Fax +66 (0) 3220-0426
Thanon Bowon Branch
Tel. +66 (0) 3451-1022,
+66 (0) 3451-2387
Fax +66 (0) 3451-1597
Thanon Phrapanwasa Branch
Tel. +66 (0) 3552-1575,
+66 (0) 3552-1963
Fax +66 (0) 3552-1964
Thanon Phahon Yothin (Saraburi)
Branch
Tel. +66 (0) 3621-1166,
+66 (0) 3621-1454
Fax +66 (0) 3621-2421
Thanon Phet Kasem (Hua Hin) Branch
Tel. +66 (0) 3251-6666-45,
+66 (0) 3251-6663
Fax +66 (0) 3253-2919
Thanon Ratchawithi (Nakhon Pathom)
Branch
Tel. +66 (0) 3424-2348,
+66 (0) 3425-1080
Fax +66 (0) 3425-1081
Thanon Setthakit 1 (Om Noi) Branch
Tel. +66 (0) 2810-4596-9
Fax +66 (0) 2810-4605
Thanon Sut Banthat (Saraburi) Branch
Tel. +66 (0) 3631-4512
+66 (0) 3631-4256-7
Fax +66 (0) 3631-5404
Thanon Sura Songkhram (Lop Buri)
Branch
Tel. +66 (0) 3661-8023,
+66 (0) 3661-8083-4
Fax +66 (0) 3642-4846
Thanon Saengchuto (Kanchanaburi)
Branch
Tel. +66 (0) 3451-5096-100
Fax +66 (0) 3451-5102
Thanon Amarin (Ratchaburi) Branch
Tel. +66 (0) 3233-7142,
+66 (0) 3233-8280
Fax +66 (0) 3232-5801
Thanon Ekkachai (Samut Sakhon)
Branch
Tel. +66 (0) 3441-1127,
+66 (0) 3441-1225-6
Fax +66 (0) 3442-5204
Thavikit Plaza Mae Klong Branch
Tel. +66 (0) 3472-0744,
+66 (0) 3472-0766
Fax +66 (0) 3471-6267
Thong Pha Phum Branch
Tel. +66 (0) 3459-9073,
+66 (0) 3459-9352
Fax +66 (0) 3459-9613
Tha Muang Branch
Tel. +66 (0) 3461-1119,
+66 (0) 3461-1403
Fax +66 (0) 3461-2419
Tha Yang Branch
Tel. +66 (0) 3246-1445-6,
+66 (0) 3246-1823-4
Fax +66 (0) 3246-1447
Tha Ruea-Kanchanaburi Branch
Tel. +66 (0) 3456-1130,
+66 (0) 3456-1040
Fax +66 (0) 3456-2073
Tha Ruea-Ayutthaya Branch
Tel. +66 (0) 3534-1019,
+66 (0) 3534-1029
Fax +66 (0) 3534-1795
Thung Khok Branch
Tel. +66 (0) 3556-8086-7
Fax +66 (0) 3556-8069
Tesco Lotus Pran Buri Branch
Tel. +66 (0) 3254-2436-7,
+66 (0) 3254-2454
Fax +66 (0) 3282-5777
Tesco Lotus Mahachai Branch
Tel. +66 (0) 3482-6231,
+66 (0) 3482-6230
Fax +66 (0) 3442-1356
Nakhon Chai Si Branch
Tel. +66 (0) 3433-1350-1
Fax +66 (0) 3433-1349
Nakhon Nayok Branch
Tel. +66 (0) 3731-1131,
+66 (0) 3731-2608-9
Fax +66 (0) 3731-2610
Nakhon Pathom Branch
Tel. +66 (0) 3421-9131
Fax +66 (0) 3421-9160
Na Di Branch
Tel. +66 (0) 3728-9069,
+66 (0) 3741-1201-2
Fax +66 (0) 3728-9069
Bang Sai Branch
Tel. +66 (0) 3528-2118-20,
+66 (0) 3537-5226
Fax +66 (0) 3537-5144
Bang Pahan Branch
Tel. +66 (0) 3538-1023-5
Fax +66 (0) 3538-1026
Bang Len Branch
Tel. +66 (0) 3439-1026-9
Fax +66 (0) 3439-1030
Ban Pong Branch
Tel. +66 (0) 3220-0429-31,
+66 (0) 3221-1993
Fax +66 (0) 3221-1035
Ban Phaeo Branch
Tel. +66 (0) 3448-1088,
+66 (0) 3448-0111-12
Fax +66 (0) 3448-1606
Ban Mo Branch
Tel. +66 (0) 3620-1141,
+66 (0) 3620-1391-2
Fax +66 (0) 3620-1142
Prachuap Khiri Khan Branch
Tel. +66 (0) 3260-4464-7
Fax +66 (0) 3260-4468
Annual Report 2011 Thanachart Bank Public Company Limited 275
Prachin Buri Branch
Tel. +66 (0) 3721-1300,
+66 (0) 3721-3855-9
Fax +66 (0) 3721-3080
Pran Buri Branch
Tel. +66 (0) 3262-1643,
+66 (0) 3262-2373-4
Fax +66 (0) 3262-2055
Pak Phriao Branch
Tel. +66 (0) 3621-1833-4,
+66 (0) 3622-1286
Fax +66 (0) 3622-1884
Phra Nakhon Si Ayutthaya Branch
Tel. +66 (0) 3523-5611
Fax +66 (0) 3523-5630
Phra Pathom Chedi Branch
Tel. +66 (0) 3425-4203-5,
+66 (0) 3421-3541
Fax +66 (0) 3425-9131
Phutthamonthon Sai 4 Branch
Tel. +66 (0) 2420-0444,
+66 (0) 2813-1115
Fax +66 (0) 2813-1116
Phetchaburi Branch
Tel. +66 (0) 3242-7023-5
Fax +66 (0) 3241-5455
Photharam Branch
Tel. +66 (0) 3223-1089,
+66 (0) 3223-1255
Fax +66 (0) 3223-1090
Pho Hak Branch
Tel. +66 (0) 3238-7021-2
Fax +66 (0) 3238-7023
Mahachai Mueang Mai Branch
Tel. +66 (0) 3481-2620-4
Fax +66 (0) 3442-6989
Ratchaburi Branch
Tel. +66 (0) 3231-1203-5
Fax +66 (0) 3231-1207
Phetcharat Hospital (Phetchaburi)
Branch
Tel. +66 (0) 3241-0505,
+66 (0) 3241-0506
Fax +66 (0) 3240-0618
Rojana Branch
Tel. +66 (0) 3521-3892-4,
+66 (0) 3524-4381
Fax +66 (0) 3524-2136
Robinson Ratchaburi Branch
Tel. +66 (0) 3232-7711-3
Fax +66 (0) 3232-7714
Lop Buri Branch
Tel. +66 (0) 3622-1163,
+66 (0) 3641-1595
Fax +66 (0) 3642-1023
Lat Bua Luang Branch
Tel. +66 (0) 3537-9290-1
Fax +66 (0) 3537-9292
Wang Nam Yen Branch
Tel. +66 (0) 3725-1543-7
Fax +66 (0) 3725-1546
Wang Sombun Branch
Tel. +66 (0) 3744-9193-4
Fax +66 (0) 3744-9195
Wat Thian Dat Branch
Tel. +66 (0) 2429-0216,
+66 (0) 2429-0813
Fax +66 (0) 2429-0847
Wiset Chai Chan Branch
Tel. +66 (0) 3563-2801-4
Fax +66 (0) 3563-2805
Si Prachan Branch
Tel. +66 (0) 3558-1150,
+66 (0) 3558-1160
Fax +66 (0) 3558-1140
Salaya Branch
Tel. +66 (0) 2441-4557-9
Fax +66 (0) 2441-4560
Samut Songkhram Branch
Tel. +66 (0) 3471-1361,
+66 (0) 3471-1444
Fax +66 (0) 3471-5555
Samut Sakhon Branch
Tel. +66 (0) 3482-0359-60,
+66 (0) 3482-0365-6
Fax +66 (0) 3482-0445
Sa Kaeo Branch
Tel. +66 (0) 3724-1061,
+66 (0) 3724-1585-6
Fax +66 (0) 3724-1062
Saraburi Branch
Tel. +66 (0) 3631-8291-4
Fax +66 (0) 3631-6601
Rojana Industrial Park Ayutthaya
Branch
Tel. +66 (0) 3571-9710-2,
+66 (0) 3571-9713
Fax +66 (0) 3533-1651
Song Phi Nong Branch
Tel. +66 (0) 3553-2890-3
Fax +66 (0) 3553-2894
Sam Chuk Branch
Tel. +66 (0) 3557-1644,
+66 (0) 3557-1655
Fax +66 (0) 3557-1099
Sam Phran Branch
Tel. +66 (0) 3432-2781,
+66 (0) 3432-2783
Fax +66 (0) 3432-2782
Sing Buri Branch
Tel. +66 (0) 3653-0410,
+66 (0) 3653-0435
Fax +66 (0) 3651-2021
Suphan Buri Branch
Tel. +66 (0) 3552-5742,
+66 (0) 3550-1237
Fax +66 (0) 3552-5743
Sena Branch
Tel. +66 (0) 3520-1035,
+66 (0) 3520-1291
Fax +66 (0) 3520-1749
Nong Khae Branch
Tel. +66 (0) 3637-1504,
+66 (0) 3637-1517
Fax +66 (0) 3637-1516
Hua Hin Branch
Tel. +66 (0) 3251-1098,
+66 (0) 3251-1203
Fax +66 (0) 3251-2219
276 Annual Report 2011 Thanachart Bank Public Company Limited
Ayutthaya Branch
Tel. +66 (0) 3525-2431-6,
+66 (0) 3525-2359
Fax +66 (0) 3525-2437
Ayutthaya Park Branch
Tel. +66 (0) 3522-9560-1
Fax +66 (0) 3522-9554
Aranyapraphet Branch
Tel. +66 (0) 3722-3505-7
Fax +66 (0) 3722-3511
Om Noi Branch
Tel. +66 (0) 2420-1450,
+66 (0) 2420-1811
Fax +66 (0) 2420-1132
Om Yai Branch
Tel. +66 (0) 2420-4920,
+66 (0) 2420-4930
Fax +66 (0) 2811-6538
Amphawa Branch
Tel. +66 (0) 3475-1177-8,
+66 (0) 3475-1640-1
Fax +66 (0) 3475-1642
Ang Thong Branch
Tel. +66 (0) 3561-1099,
+66 (0) 3561-2301-3
Fax +66 (0) 3561-1100
Kabin Buri Industrial (Nongki) Branch
Tel. +66 (0) 3745-5428-9,
+66 (0) 3745-5420-1
Fax +66 (0) 3745-5439
U Thong Branch
Tel. +66 (0) 3555-1299,
+66 (0) 3555-1618
Fax +66 (0) 3555-1868
NORTHERN REGION
Khuang Sing Branch
Tel. +66 (0) 5321-0826-8,
+66 (0) 5321-6586
Fax +66 (0) 5322-2718
Bhumibol Dam Branch
Tel. +66 (0) 5549-5989,
+66 (0) 5599-0045
Fax +66 (0) 5559-9021
Chong Khae Branch
Tel. +66 (0) 5626-9163,
+66 (0) 5691-2830
Fax +66 (0) 5626-9127
Chai Nat Branch
Tel. +66 (0) 5641-6650-3
Fax +66 (0) 5641-6654
Chang Chlan Branch
Tel. +66 (0) 5327-4634,
+66 (0) 5327-4934-5
Fax +66 (0) 5327-4635
Chiang Rai Branch
Tel. +66 (0) 5371-7100-6,
+66 (0) 5371-7108-9
Fax +66 (0) 5371-7107
Chiang Mai Branch
Tel. +66 (0) 5327-3352,
+66 (0) 5327-5737
Fax +66 (0) 5327-2733
Central Airport Chiang Mai Branch
Tel. +66 (0) 5320-1234
Fax +66 (0) 5320-1900
Central Plaza Chiang Rai Branch
Tel. +66 (0) 5317-9928-30,
+66 (0) 5317-9931
Fax +66 (0) 5375-4496
Talat Varorot Branch
Tel. +66 (0) 5387-4018-9,
+66 (0) 5387-4020
Fax +66 (0) 5387-4006
Tak Branch
Tel. +66 (0) 5551-1275,
+66 (0) 5551-1360
Fax +66 (0) 5551-3486
Takhli Branch
Tel. +66 (0) 5626-1093,
+66 (0) 5626-1133
Fax +66 (0) 5626-2383
Thanon Kosi (Nakhon Sawan) Branch
Tel. +66 (0) 5631-3929-31
Fax +66 (0) 5631-3932
Thanon Chom Phon (Tak) Branch
Tel. +66 (0) 5554-0219,
+66 (0) 5554-1721
Fax +66 (0) 5551-3988
Thanon Charoen Suk
(Kamphaeng Phet) Branch
Tel. +66 (0) 5571-3325-6
Fax +66 (0) 5571-3368
Thanon Chang Chlan (Chiang Mai)
Branch
Tel. +66 (0) 5382-0538-41,
+66 (0) 5382-0542
Fax +66 (0) 5382-0543
Thanon Chang Phueak (Chiang Mai)
Branch
Tel. +66 (0) 5323-1060,
+66 (0) 5341-2116-7
Fax +66 (0) 5323-1061
Thanon Thatsana Phanit 2 (Sukhothai)
Branch
Tel. +66 (0) 5561-6201
Fax +66 (0) 5561-6200
Thanon Thipyawan (Lampang) Branch
Tel. +66 (0) 5422-6041-4
Fax +66 (0) 5422-6045
Thanon Nimmanhemin Branch
Tel. +66 (0) 5322-5483,
+66 (0) 5340-0672-4
Fax +66 (0) 5340-0675
Thanon Barom Trai Lokanart 2
(Phitsanulok) Branch
Tel. +66 (0) 5521-8645-9
Fax +66 (0) 5521-8648
Thanon Bunyawat Branch
Tel. +66 (0) 5421-7444,
+66 (0) 5421-8790
Fax +66 (0) 5422-4667
Thanon Yantrakit Koson (Phrae)
Branch
Tel. +66 (0) 5462-6811,
+66 (0) 5462-6931
Fax +66 (0) 5453-2837
Thanon Wet Suwan (Nakhon Sawan)
Branch
Tel. +66 (0) 5622-2998,
+66 (0) 5622-7835
Fax +66 (0) 5623-1462
Annual Report 2011 Thanachart Bank Public Company Limited 277
Thanon Sueksa Charoen (Phetchabun)
Branch
Tel. +66 (0) 5674-4076-8,
+66 (0) 5672-2414
Fax +66 (0) 5672-2415
Thanon Samran Ruen (Uttaradit)
Branch
Tel. +66 (0) 5540-3103-6
Fax +66 (0) 5540-3107
Thanon Ekathossaros (Phitsanulok)
Branch
Tel. +66 (0) 5524-3871-2,
+66 (0) 5525-9322
Fax +66 (0) 5524-4268
Tha Phae Branch
Tel. +66 (0) 5323-5755
Fax +66 (0) 5323-5757
Tesco Lotus Chiang Mai Hang Dong
Branch
Tel. +66 (0) 5380-6266-8,
+66 (0) 5380-6269
Fax +66 (0) 5328-1460
Tesco Lotus Phitsanulok Branch
Tel. +66 (0) 5537-7254,
+66 (0) 5537-7326
Fax +66 (0) 5537-7356
Nakhon Sawan Branch
Tel. +66 (0) 5631-3848,
+66 (0) 5622-5444
Fax +66 (0) 5631-3850
Nan Branch
Tel. +66 (0) 5471-1095-9
Fax +66 (0) 5471-1098
Lamphun Industrial Estate Branch
Tel. +66 (0) 5358-1662-3
Fax +66 (0) 5358-1664
Bo Sang Branch
Tel. +66 (0) 5333-7004-6
Fax +66 (0) 5333-7007
Big C Chiang Mai Branch
Tel. +66 (0) 5324-1248-9,
+66 (0) 5324-1336
Fax +66 (0) 5324-1337
Big C Phitsanulok Branch
Tel. +66 (0) 5537-8295,
+66 (0) 5220-7845
Fax +66 (0) 5537-8296
Big C Kamphaeng Phet Branch
Tel. +66 (0) 5585-3928-30,
+66 (0) 5585-3931
Fax +66 (0) 5585-3932
Pak Nam Pho Branch
Tel. +66 (0) 5621-2082,
+66 (0) 5621-2189
Fax +66 (0) 5621-3516
Pai Branch
Tel. +66 (0) 5369-9886,
+66 (0) 5369-9505
Fax +66 (0) 5369-9252
Phran Kratai Branch
Tel. +66 (0) 5576-2111-2
Fax +66 (0) 5576-2113
Phayao Branch
Tel. +66 (0) 5443-1124,
+66 (0) 5448-2386-8
Fax +66 (0) 5443-1272
Phichit Branch
Tel. +66 (0) 5661-1033,
+66 (0) 5661-1651
Fax +66 (0) 5661-1127
Phitsanulok Branch
Tel. +66 (0) 5530-4313,
+66 (0) 5909-9009
Fax +66 (0) 5530-4279
Phetchabun Branch
Tel. +66 (0) 5672-3103
Fax +66 (0) 5672-3104
Phrae Branch
Tel. +66 (0) 5452-2004,
+66 (0) 5452-2006
Fax +66 (0) 5452-2005
Phaisali Branch
Tel. +66 (0) 5625-9721-2
Fax +66 (0) 5625-9723
Mae Sot Branch
Tel. +66 (0) 5533-3113,
+66 (0) 5553-3319
Fax +66 (0) 5553-3320
Mae Sai Branch
Tel. +66 (0) 5373-1675,
+66 (0) 5373-1879
Fax +66 (0) 5373-1905
Mae Hong Son Branch
Tel. +66 (0) 5361-4441-2,
+66 (0) 5361-4444-5
Fax +66 (0) 5361-4443
McCormick Hospital (Chiang Mai)
Branch
Tel. +66 (0) 5326-1218-9,
+66 (0) 5330-0421
Fax +66 (0) 5326-1123
Lampang Branch
Tel. +66 (0) 5431-8927-30
Fax +66 (0) 5431-6960
Lamphun Branch
Tel. +66 (0) 5351-0371,
+66 (0) 5312-0601
Fax +66 (0) 5351-0372
Wang Chao Branch
Tel. +66 (0) 5555-6059,
+66 (0) 5555-6061
Fax +66 (0) 5555-6063
Sop Tui Branch
Tel. +66 (0) 5422-8040-3
Fax +66 (0) 5422-8044
Sawankhalok Branch
Tel. +66 (0) 5564-1478-9,
+66 (0) 5564-2512
Fax +66 (0) 5564-1480
San Sai Branch
Tel. +66 (0) 5349-1457,
+66 (0) 5349-1934
Fax +66 (0) 5349-1728
San Pa Khoi Branch
Tel. +66 (0) 5324-4157,
+66 (0) 5324-9167-8
Fax +66 (0) 5324-1157
Sukhothai Branch
Tel. +66 (0) 5561-6022,
+66 (0) 5562-2465-6
Fax +66 (0) 5562-2469
278 Annual Report 2011 Thanachart Bank Public Company Limited
Nong Ben Branch
Tel. +66 (0) 5629-6163-5
Fax +66 (0) 5629-6166
Lom Kao Branch
Tel. +66 (0) 5670-8492-3
Fax +66 (0) 5670-8494
Lom Sak Branch
Tel. +66 (0) 5670-1540,
+66 (0) 5670-1878
Fax +66 (0) 5670-4513
Hankha Branch
Tel. +66 (0) 5645-1040,
+66 (0) 5645-1042
Fax +66 (0) 5645-1499
Hang Dong Branch
Tel. +66 (0) 5343-4035-7
Fax +66 (0) 5343-4038
Hang Nam Sakorn Branch
Tel. +66 (0) 5643-1232-3
Fax +66 (0) 5643-1234
Ha Yaek Phokhun Mengrai
(Chiang Rai) Branch
Tel. +66 (0) 5374-5244,
+66 (0) 5374-5245
Fax +66 (0) 5374-5247
Uttaradit Branch
Tel. +66 (0) 5544-1777,
+66 (0) 5544-2240
Fax +66 (0) 5541-4096
Uthai Thani Branch
Tel. +66 (0) 5657-1616-9
Fax +66 (0) 5657-1620
Happy Plaza (Phichit) Branch
Tel. +66 (0) 5661-6471-3,
+66 (0) 5661-6474
Fax +66 (0) 5665-0987
NORTH EASTERN REGION
Kalasin Branch
Tel. +66 (0) 4382-1080-1,
+66 (0) 4382-1420
Fax +66 (0) 4381-6584
Khon Kaen Branch
Tel. +66 (0) 4332-4321,
+66 (0) 4322-6888
Fax +66 (0) 4332-5919
Chaiyaphum Branch
Tel. +66 (0) 4481-3251-5
Fax +66 (0) 4481-3253
Chum Phae Branch
Tel. +66 (0) 4331-1684,
+66 (0) 4331-2292
Fax +66 (0) 4331-2395
Central Plaza Khon Kaen Branch
Tel. +66 (0) 4328-8361-3,
+66 (0) 4328-8364
Fax +66 (0) 4328-8365
Talat Thetsaban Maha Sarakham
Branch
Tel. +66 (0) 4372-5485,
+66 (0) 4372-5661
Fax +66 (0) 4372-3692
Talat Pak Chong Branch
Tel. +66 (0) 4431-3798-9,
+66 (0) 4431-3855-6
Fax +66 (0) 4431-3255
Thanon Klang Mueang (Khon Kaen)
Branch
Tel. +66 (0) 4322-8266,
+66 (0) 4332-2630
Fax +66 (0) 4332-2386
Thanon Kuang Heng (Si Sa Ket)
Branch
Tel. +66 (0) 4561-7861-4
Fax +66 (0) 4561-7860
Thanon Chit Bamrung (Surin) Branch
Tel. +66 (0) 4453-8934-5
Fax +66 (0) 4471-4051
Thanon Thinanon (Kalasin) Branch
Tel. +66 (0) 4381-2024,
+66 (0) 4381-2026
Fax +66 (0) 4381-2066
Thanon Prachak (Nong Khai) Branch
Tel. +66 (0) 4241-2890-4
Fax +66 (0) 4241-2895
Thanon Pho Si (Udon Thani) Branch
Tel. +66 (0) 4234-3817-8
Fax +66 (0) 4234-3727
Thanon Mittraphap Branch
Tel. +66 (0) 4426-8631-6
Fax +66 (0) 4426-8634
Thanon Mittraphap
(Nakhon Ratchasima) Branch
Tel. +66 (0) 4425-9003-4,
+66 (0) 4425-1376
Fax +66 (0) 4425-9002
Thanon Ruam Chai (Loei) Branch
Tel. +66 (0) 4286-1451-3
Fax +66 (0) 4286-1454
Thanon Ratphatthana (Sakon Nakhon)
Branch
Tel. +66 (0) 4271-5767,
+66 (0) 4273-6146-8
Fax +66 (0) 4271-5686
Thanon Warin-Phibun
(Warin Chamrap) Branch
Tel. +66 (0) 4532-5075,
+66 (0) 4528-6171-3
Fax +66 (0) 4532-5076
Thanon Si Chan Branch
Tel. +66 (0) 4322-7275-8
Fax +66 (0) 4322-7279
Thanon Sappasit Branch
Tel. +66 (0) 4524-4315,
+66 (0) 4524-4729
Fax +66 (0) 4524-3193
Thanon Suranari Branch
Tel. +66 (0) 4424-2560,
+66 (0) 4425-6705
Fax +66 (0) 4425-6706
Thanon Na Mueang (Khon Kaen)
Branch
Tel. +66 (0) 4322-1163,
+66 (0) 4322-3234
Fax +66 (0) 4322-1822
Thanon Hai Srok (Roi Et) Branch
Tel. +66 (0) 4352-3335-7
Fax +66 (0) 4352-3339
Annual Report 2011 Thanachart Bank Public Company Limited 279
Thanon Aphiban Bancha
(Nakhon Phanom) Branch
Tel. +66 (0) 4251-4500
Fax +66 (0) 4251-4501
Thanon Udon Dutsadi Branch
Tel. +66 (0) 4224-7574,
+66 (0) 4224-7732
Fax +66 (0) 4224-7510
Tesco Lotus Khorat Branch
Tel. +66 (0) 4426-3564,
+66 (0) 4426-3567
Fax +66 (0) 4426-3565
Tesco Lotus Chaiyaphum Branch
Tel. +66 (0) 4483-8324-6,
+66 (0) 4483-8327
Fax +66 (0) 4481-3352
Nakhon Phanom Branch
Tel. +66 (0) 4251-6125-8
Fax +66 (0) 4251-6129
Nakhon Ratchasima Branch
Tel. +66 (0) 4426-9797,
+66 (0) 4426-8336-8
Fax +66 (0) 4426-9790
Nang Rong Branch
Tel. +66 (0) 4463-1049,
+66 (0) 4463-1586-8
Fax +66 (0) 4463-1050
Ban Phai Branch
Tel. +66 (0) 4327-4038-40
Fax +66 (0) 4327-4043
Big C Udon Thani Branch
Tel. +66 (0) 4212-8551-3
Fax +66 (0) 4212-8548
Big C Buri Ram Branch
Tel. +66 (0) 4469-0450,
+66 (0) 4469-0468
Fax +66 (0) 4469-0469
Big C Yasothon Branch
Tel. +66 (0) 4572-4361,
+66 (0) 4572-4437
Fax +66 (0) 4572-5067
Buri Ram Branch
Tel. +66 (0) 4460-1555,
+66 (0) 4460-2000
Fax +66 (0) 4460-2123
Pak Chong Branch
Tel. +66 (0) 4431-6866-9
Fax +66 (0) 4431-6859
Phlapphla Chai (Buri Ram) Branch
Tel. +66 (0) 4460-8012-5
Fax +66 (0) 4460-8016
Maha Sarakham Branch
Tel. +66 (0) 4374-0681-3,
+66 (0) 4374-0684
Fax +66 (0) 4372-2958
Mukdahan Branch
Tel. +66 (0) 4263-1367-70
Fax +66 (0) 4263-1374
Yasothon Branch
Tel. +66 (0) 4571-4051-6
Fax +66 (0) 4571-4054
Roi Et Branch
Tel. +66 (0) 4351-1521,
+66 (0) 4351-3520-1
Fax +66 (0) 4351-1520
Loei Branch
Tel. +66 (0) 4283-0851-3,
+66 (0) 4283-0854
Fax +66 (0) 4281-4472
Wang Sam Mo Branch
Tel. +66 (0) 4238-7486-7
Fax +66 (0) 4238-7488
Warin Chamrap Branch
Tel. +66 (0) 4532-2788,
+66 (0) 4532-2791-3
Fax +66 (0) 4532-2790
Si Sa Ket Branch
Tel. +66 (0) 4562-0500-2,
+66 (0) 4562-0503
Fax +66 (0) 4564-4197
Sakon Nakhon Branch
Tel. +66 (0) 4271-6446-50
Fax +66 (0) 4271-6451
Sang Khom Branch
Tel. +66 (0) 4227-6222-4
Fax +66 (0) 4227-6225
Sam Yaek Pak Thong Chai Branch
Tel. +66 (0) 4421-3993-5,
+66 (0) 4428-1815-6
Fax +66 (0) 4421-3994
Surin Branch
Tel. +66 (0) 4451-4455-8
Fax +66 (0) 4451-4459
Surin Plaza Branch
Tel. +66 (0) 4453-8517-20
Fax +66 (0) 4453-8521
Suwannakhuha Branch
Tel. +66 (0) 4237-2515-6
Fax +66 (0) 4237-2517
Nong Khai Branch
Tel. +66 (0) 4246-0119-22
Fax +66 (0) 4246-0199
Nong Bua Lam Phu Branch
Tel. +66 (0) 4231-1107,
+66 (0) 4231-1166
Fax +66 (0) 4231-1657
Ha Yaek Nampu (Udon Thani) Branch
Tel. +66 (0) 4222-1703,
+66 (0) 4222-1381
Fax +66 (0) 4224-7209
Thao Suranari Monument Branch
Tel. +66 (0) 4424-1774,
+66 (0) 4424-1775
Fax +66 (0) 4424-1776
Amnat Charoen Branch
Tel. +66 (0) 4551-1721-4
Fax +66 (0) 4551-1726
Udon Thani Branch
Tel. +66 (0) 4234-2550
Fax +66 (0) 4234-2398
Ubon Ratchathani Branch
Tel. +66 (0) 4531-9401-3,
+66 (0) 4531-9404
Fax +66 (0) 4531-9405
EASTERN REGION
Ko Chang Branch
Tel. +66 (0) 3955-1026-9
Fax +66 (0) 3955-1030
Klaeng Branch
Tel. +66 (0) 3888-7003-9
Fax +66 (0) 3867-8002
280 Annual Report 2011 Thanachart Bank Public Company Limited
Chanthaburi Branch
Tel. +66 (0) 3934-4323-6
Fax +66 (0) 3934-4327
Chachoengsao Branch
Tel. +66 (0) 3851-5835-7
Fax +66 (0) 3851-5838
Chon Buri Branch
Tel. +66 (0) 3827-6930-7
Fax +66 (0) 3827-6935
Central Chon Buri Branch
Tel. +66 (0) 3805-3531-3,
+66 (0) 3805-3534
Fax +66 (0) 3805-3535
Central Center Pattaya Branch
Tel. +66 (0) 3841-4852-4,
+66 (0) 3841-4855
Fax +66 (0) 3841-4846
Central Festival Pattaya Beach Branch
Tel. +66 (0) 3300-3571-3,
+66 (0) 3804-3193
Fax +66 (0) 3804-3194
Trat Branch
Tel. +66 (0) 3953-1641-3,
+66 (0) 3953-1645
Fax +66 (0) 3952-2662
Tukcom Pattaya Branch
Tel. +66 (0) 3872-4105-7
Fax +66 (0) 3872-4108
Thanon Khwang (Chanthaburi) Branch
Tel. +66 (0) 3932-5925,
+66 (0) 3932-2048
Fax +66 (0) 3932-5926
Thanon Chetchamnong (Chon Buri)
Branch
Tel. +66 (0) 3879-2203-5
Fax +66 (0) 3879-2178
Thanon Tat Mai (Trat) Branch
Tel. +66 (0) 3952-5731-5
Fax +66 (0) 3952-5734
Thanon Phraya Satcha (Chon Buri)
Branch
Tel. +66 (0) 3879-2214-5,
+66 (0) 3879-2217
Fax +66 (0) 3879-2216
Thanon Maha Chakkaphat
(Chachoengsao) Branch
Tel. +66 (0) 3881-2856-7,
+66 (0) 3853-5336
Fax +66 (0) 3881-2874
Thanon Sukhumwit (Chon Buri)
Branch
Tel. +66 (0) 3879-6066,
+66 (0) 3879-5639
Fax +66 (0) 3827-7841
Thanon Sukhumwit (Rayong) Branch
Tel. +66 (0) 3861-4913-4
Fax +66 (0) 3861-2342
Thanon Sukhumwit (Si Racha) Branch
Tel. +66 (0) 3877-3415-20
Fax +66 (0) 3877-3421
Thanon Surasak (Si Racha) Branch
Tel. +66 (0) 3831-1872-3,
+66 (0) 3831-2206-7
Fax +66 (0) 3831-1871
Tesco Lotus Pattaya Nuea Branch
Tel. +66 (0) 3841-1410,
+66 (0) 3841-1316
Fax +66 (0) 3841-1423
Na Kluea (Pattaya) Branch
Tel. +66 (0) 3822-6060-1
Fax +66 (0) 3822-6117
Nikhom Phatthana Branch
Tel. +66 (0) 3863-6090-1
Fax +66 (0) 3863-6092
Bo Win Industrial Estate Branch
Tel. +66 (0) 3834-5456-7,
+66 (0) 3834-5828
Fax +66 (0) 3834-5829
Bang Pla Soi Branch
Tel. +66 (0) 3827-1819,
+66 (0) 3827-6651
Fax +66 (0) 3827-6652
Ban Bueng Branch
Tel. +66 (0) 3844-3060-1,
+66 (0) 3844-4015-6
Fax +66 (0) 3844-3713
Ban Phe Branch
Tel. +66 (0) 3865-1995,
+66 (0) 3865-1997
Fax +66 (0) 3865-1993
Big C Chachoengsao 2 Branch
Tel. +66 (0) 3851-5188,
+66 (0) 3851-5190
Fax +66 (0) 3851-5219
Big C Chon Buri 2 Branch
Tel. +66 (0) 3878-3032-4,
+66 (0) 3878-3035
Fax +66 (0) 3838-7923
Big C Pattaya Tai Branch
Tel. +66 (0) 3837-4270,
+66 (0) 3837-4273
Fax +66 (0) 3837-4463
Big C Rayong Branch
Tel. +66 (0) 3887-3094,
+66 (0) 3887-3323
Fax +66 (0) 3862-2659
Big C Sa Kaeo Branch
Tel. +66 (0) 3742-1761-3,
+66 (0) 3742-1764
Fax +66 (0) 3742-1765
Pluak Daeng Branch
Tel. +66 (0) 3865-9768-9
Fax +66 (0) 3865-9770
Pacific Park (Si Racha) Branch
Tel. +66 (0) 3831-3226,
+66 (0) 3831-3236
Fax +66 (0) 3831-3245
Pranom Sarakham Branch
Tel. +66 (0) 3855-1005,
+66 (0) 3855-1824-6
Fax +66 (0) 3855-1659
Pattaya Branch
Tel. +66 (0) 3872-0334,
+66 (0) 3872-0339
Fax +66 (0) 3842-9973
Pattaya Klang Branch
Tel. +66 (0) 3842-6312,
+66 (0) 3842-6343
Fax +66 (0) 3842-1325
Pattaya Nuea Branch
Tel. +66 (0) 3842-8901-2,
+66 (0) 3842-8962
Fax +66 (0) 3842-8963
Annual Report 2011 Thanachart Bank Public Company Limited 281
Rajamanggala University of
Technology Tawan-ok Branch
Tel. +66 (0) 3834-1029
Fax +66 (0) 3834-1159
Burapha University Branch
Tel. +66 (0) 3839-4185-6
Fax +66 (0) 3839-4187
Map Ta Phut Branch
Tel. +66 (0) 3868-2531-3
Fax +66 (0) 3868-1995
Rayong Branch
Tel. +66 (0) 3892-8600,
+66 (0) 3886-4123
Fax +66 (0) 3886-4115
Si Racha Branch
Tel. +66 (0) 3877-1686-9,
+66 (0) 3877-1663
Fax +66 (0) 3877-1690
Saha Pathana Industrial Park
(Si Racha) Branch
Tel. +66 (0) 3848-1826-8
Fax +66 (0) 3848-1829
Sattahip Branch
Tel. +66 (0) 3843-7321,
+66 (0) 3843-7986
Fax +66 (0) 3843-7717
Sam Yaek Klaeng Branch
Tel. +66 (0) 3888-4503-5
Fax +66 (0) 3888-4506
Nong Mon Branch
Tel. +66 (0) 3839-2302,
+66 (0) 3839-2125
Fax +66 (0) 3839-2501
Nong Mon (Chon Buri) Branch
Tel. +66 (0) 3874-5233,
+66 (0) 3874-5239
Fax +66 (0) 3874-6349
Huai Sathon Branch
Tel. +66 (0) 3939-5381-3
Fax +66 (0) 3939-5384
Hat Pattaya (Nuea) Branch
Tel. +66 (0) 3841-5772-4,
+66 (0) 3841-5884
Fax +66 (0) 3841-5885
Laem Chabang Branch
Tel. +66 (0) 3840-0740-3
Fax +66 (0) 3840-0745
Laem Thong Rayong Branch
Tel. +66 (0) 3802-3405-7,
+66 (0) 3802-3408
Fax +66 (0) 3802-3409
SOUTHERN REGION
Krabi Branch
Tel. +66 (0) 7563-2838-41
Fax +66 (0) 7563-2835
Kantang Branch
Tel. +66 (0) 7525-1250,
+66 (0) 7525-1640
Fax +66 (0) 7525-1644
Ko Tao Branch
Tel. +66 (0) 7745-6533-4
Fax +66 (0) 7745-6784
Ko Pha-ngan Branch
Tel. +66 (0) 7737-7051,
+66 (0) 7737-7054
Fax +66 (0) 7737-7052
Ko Lanta Branch
Tel. +66 (0) 7566-8152
Fax +66 (0) 7566-8151
Ko Samui Branch
Tel. +66 (0) 7742-1110,
+66 (0) 7742-0363
Fax +66 (0) 7742-1112
Khao Lak Branch
Tel. +66 (0) 7648-5493-4
Fax +66 (0) 7648-5560
Khian Sa Branch
Tel. +66 (0) 7738-7407-8
Fax +66 (0) 7738-7409
Khok Kloi (Phang Nga) Branch
Tel. +66 (0) 7643-4821-4
Fax +66 (0) 7643-4827
Chumphon Branch
Tel. +66 (0) 7757-1935,
+66 (0) 7757-1938-9
Fax +66 (0) 7757-1940
Central Festival Phuket Branch
Tel. +66 (0) 7620-9290,
+66 (0) 7620-9292
Fax +66 (0) 7620-9291
Diana Si Phuwanart Branch
Tel. +66 (0) 7446-5316-8
Fax +66 (0) 7446-5319
Trang Branch
Tel. +66 (0) 7522-3240-3
Fax +66 (0) 7522-3244
Talat Tha Phae
(Nakhon Si Thammarat) Branch
Tel. +66 (0) 7538-3271,
+66 (0) 7538-3277
Fax +66 (0) 7538-3110
Talat Maha Rat (Krabi) Branch
Tel. +66 (0) 7561-1320-1,
+66 (0) 7562-0520
Fax +66 (0) 7562-0549
Takua Pa Branch
Tel. +66 (0) 7642-5176,
+66 (0) 7643-1503-5
Fax +66 (0) 7642-5177
Thanon Chuti Uthit (Hat Yai) Branch
Tel. +66 (0) 7434-6396-8
Fax +66 (0) 7434-6393
Thanon Chon Kasem (Surat Thani)
Branch
Tel. +66 (0) 7728-3627-30
Fax +66 (0) 7728-4080
Thanon Thawi Wong (Hat Patong)
Branch
Tel. +66 (0) 7629-2116-8
Fax +66 (0) 7634-5687
Thanon Thammanun Withi (Hat Yai)
Branch
Tel. +66 (0) 7423-5549,
+66 (0) 7423-9907
Fax +66 (0) 7424-3648
Thanon Niphat Uthit 1 Branch
Tel. +66 (0) 7424-4898-9
Fax +66 (0) 7423-2485
282 Annual Report 2011 Thanachart Bank Public Company Limited
Thanon Montri Branch
Tel. +66 (0) 7621-2993,
+66 (0) 7621-2999
Fax +66 (0) 7621-3149
Thanon Ratthakan (Hat Yai) Branch
Tel. +66 (0) 7434-9070-2,
+66 (0) 7426-1751
Fax +66 (0) 7426-1752
Thanon Ratsada (Phuket) Branch
Tel. +66 (0) 7621-9664,
+66 (0) 7625-6873-5
Fax +66 (0) 7621-9731
Thanon Ratchadamnoen
(Nakhon Si Thammarat) Branch
Tel. +66 (0) 7534-2779-80,
+66 (0) 7535-6119
Fax +66 (0) 7535-6741
Thanon Ramet (Phatthalung) Branch
Tel. +66 (0) 7462-6952-4,
+66 (0) 7462-6955
Fax +66 (0) 7461-5451
Thanon Si Wichai (Surat Thani)
Branch
Tel. +66 (0) 7720-6488,
+66 (0) 7726-4170
Fax +66 (0) 7720-6671
Thanon Sala Daeng (Chumphon)
Branch
Tel. +66 (0) 7750-5051-2
Fax +66 (0) 7750-5054
Thanon Sai Buri (Songkhla) Branch
Tel. +66 (0) 7431-1638,
+66 (0) 7432-3735-6
Fax +66 (0) 7431-3543
Thalang Branch
Tel. +66 (0) 7631-1020,
+66 (0) 7631-1040
Fax +66 (0) 7631-1433
Thap Thiang (Trang) Branch
Tel. +66 (0) 7521-8059,
+66 (0) 7421-8590
Fax +66 (0) 7521-1320
Thai Mueang Branch
Tel. +66 (0) 7657-1234-7
Fax +66 (0) 7657-1215
Tha Ruea Bang Rak (Ko Samui)
Branch
Tel. +66 (0) 7741-7184
Fax +66 (0) 7741-7185
Tha Wang (Nakhon Si Thammarat)
Branch
Tel. +66 (0) 7531-3144-6,
+66 (0) 7535-7066
Fax +66 (0) 7535-7067
Thung Song Branch
Tel. +66 (0) 7541-1087,
+66 (0) 7541-1287
Fax +66 (0) 7541-1054
Tesco Lotus Krabi Branch
Tel. +66 (0) 7565-0833,
+66 (0) 7565-0836-7
Fax +66 (0) 7565-0834
Tesco Lotus Chao Fa (Phuket) Branch
Tel. +66 (0) 7626-8059-61,
+66 (0) 7621-9247
Fax +66 (0) 7621-9248
Tesco Lotus Choeng Thale (Phuket)
Branch
Tel. +66 (0) 7632-5919-21,
+66 (0) 7632-5922
Fax +66 (0) 7627-0572
Tesco Lotus Thung Song Branch
Tel. +66 (0) 7541-3003-5,
+66 (0) 7541-3006
Fax +66 (0) 7541-3007
Tesco Lotus Phuket Branch
Tel. +66 (0) 7625-5472-4,
+66 (0) 7625-5475
Fax +66 (0) 7652-3400
Tesco Lotus Ranong Branch
Tel. +66 (0) 7782-6636-8,
+66 (0) 7782-6639
Fax +66 (0) 7782-6640
Tesco Lotus Lamai (Ko Samui) Branch
Tel. +66 (0) 7741-8464,
+66 (0) 7741-8719
Fax +66 (0) 7741-8720
Nakhon Si Thammarat Branch
Tel. +66 (0) 7532-2689-90
Fax +66 (0) 7532-2144
Narathiwat Branch
Tel. +66 (0) 7351-2013,
+66 (0) 7351-1030
Fax +66 (0) 7351-2014
Ban Don Branch
Tel. +66 (0) 7721-0365,
+66 (0) 7727-2006
Fax +66 (0) 7721-0366
Ban Na Doem Branch
Tel. +66 (0) 7735-9013,
+66 (0) 7735-9015
Fax +66 (0) 7735-9014
Big C Krabi Branch
Tel. +66 (0) 7570-1020-22
Fax +66 (0) 7570-1023
Big C Pattani Branch
Tel. +66 (0) 7333-8004,
+66 (0) 7331-3982-3
Fax +66 (0) 7333-8005
Big C Hat Yai 2 Branch
Tel. +66 (0) 7446-9235-7,
+66 (0) 7446-9238
Fax +66 (0) 7455-5609
Betong Branch
Tel. +66 (0) 7323-1120,
+66 (0) 7323-1416
Fax +66 (0) 7323-0914
Pattani Branch
Tel. +66 (0) 7333-5950-1,
+66 (0) 7333-1851
Fax +66 (0) 7333-5949
Pak Phanang Branch
Tel. +66 (0) 7551-7132,
+66 (0) 7551-7298
Fax +66 (0) 7551-8021
Patong Branch
Tel. +66 (0) 7629-0585-7
Fax +66 (0) 7629-0588
Phra Phrom Branch
Tel. +66 (0) 7576-3260-1
Fax +66 (0) 7576-3262
Phang-nga Branch
Tel. +66 (0) 7641-1295,
+66 (0) 7641-1527-8
Fax +66 (0) 7641-1326
Annual Report 2011 Thanachart Bank Public Company Limited 283
Phatthalung Branch
Tel. +66 (0) 7461-3082,
+66 (0) 7461-3951-2
Fax +66 (0) 7461-1918
Phunphin Branch
Tel. +66 (0) 7731-1449,
+66 (0) 7731-1377
Fax +66 (0) 7731-1537
Phuket Branch
Tel. +66 (0) 7626-1570-5
Fax +66 (0) 7626-1576
Mae Nam Branch
Tel. +66 (0) 7724-8375,
+66 (0) 7733-2259
Fax +66 (0) 7733-2260
Yala Branch
Tel. +66 (0) 7321-2592,
+66 (0) 7321-3375
Fax +66 (0) 7321-1691
Yan Ta Khao Branch
Tel. +66 (0) 7528-1003,
+66 (0) 7528-1101
Fax +66 (0) 7528-1102
Ranong Branch
Tel. +66 (0) 7781-1198,
+66 (0) 7781-1299
Fax +66 (0) 7781-1751
Robinson Trang Branch
Tel. +66 (0) 7559-0018-9,
+66 (0) 7559-0120
Fax +66 (0) 7522-6157
Robinson Ocean
(Nakhon Si Thammarat) Branch
Tel. +66 (0) 7534-1875,
+66 (0) 7534-1960-1
Fax +66 (0) 7534-1876
Lee Gardens Plaza Branch
Tel. +66 (0) 7423-9010,
+66 (0) 7423-9349
Fax +66 (0) 7423-0414
Songkhla Branch
Tel. +66 (0) 7444-1198-9,
+66 (0) 7444-1232
Fax +66 (0) 7444-1233
Satun Branch
Tel. +66 (0) 7472-5251-3
Fax +66 (0) 7472-5254
Sam Kong (Phuket) Branch
Tel. +66 (0) 7621-2077,
+66 (0) 7622-2838-40
Fax +66 (0) 7622-2841
Sai Buri Branch
Tel. +66 (0) 7341-1021,
+66 (0) 7341-1314-5
Fax +66 (0) 7341-1138
Surat Thani Branch
Tel. +66 (0) 7721-4581-7
Fax +66 (0) 7721-3560
Su-ngai Kolok Branch
Tel. +66 (0) 7361-1359,
+66 (0) 7361-1002
Fax +66 (0) 7361-3632
Na Thon (Ko Samui) Branch
Tel. +66 (0) 7723-6612-3,
+66 (0) 7723-6661-4
Fax +66 (0) 7723-6611
Lang Suan Branch
Tel. +66 (0) 7754-1965,
+66 (0) 7754-1975
Fax +66 (0) 7754-1987
Huai Yot Branch
Tel. +66 (0) 7523-5033-5,
+66 (0) 7527-1013
Fax +66 (0) 7527-1064
Hat Karon Branch
Tel. +66 (0) 7639-6981,
+66 (0) 7639-6485-6
Fax +66 (0) 7639-6980
Hat Chaweng Branch
Tel. +66 (0) 7723-0405,
+66 (0) 7723-1089-90
Fax +66 (0) 7742-2051
Hat Rin Branch
Tel. +66 (0) 7737-5254,
+66 (0) 7737-5477
Fax +66 (0) 7737-5476
Hat Lamai Branch
Tel. +66 (0) 7745-8159-60,
+66 (0) 7745-8162-4
Fax +66 (0) 7745-8161
Hat Yai Branch
Tel. +66 (0) 7435-4690
Fax +66 (0) 7435-4696
Hat Yai Nai Branch
Tel. +66 (0) 7436-1313-5,
+66 (0) 7436-1316
Fax +66 (0) 7425-9704
Ha Yaek Chalong (Phuket) Branch
Tel. +66 (0) 7638-3222,
+66 (0) 7638-3431
Fax +66 (0) 7638-3348
Ao Nang Branch
Tel. +66 (0) 7566-1434,
+66 (0) 7566-1430-2
Fax +66 (0) 7566-1433
Ao Luek Branch
Tel. +66 (0) 7561-0739,
+66 (0) 7563-4335-7
Fax +66 (0) 7561-0755
284 Annual Report 2011 Thanachart Bank Public Company Limited
SummARy of SPeCified iTemS PeR foRm 56-2 in 2011 AnnuAL RePoRT
1. General information 1.1 Company 259 1.2 Juristic companies in which the proportion of shares held is 10% or greater 255 - 259 1.3 other references 260 2. financial highlights 2 - 3 3. nature of business operations 3.1 nature of business operations of the Company and subsidiary 31 - 34 and Policy on division of work among member companies of Thanachart Group 3.2 income structure 34 - 36 3.3 Key changes of business operations 36 - 50 4. Risk factors 51 - 62 5. Shareholders structure and management 5.1 Shareholders 261 5.2 management 5.2.1 management structure 235 5.2.2 Selection and appointment of members of various committees 230 - 231 5.2.3 Remuneration for the Board of directors and management 231 - 233 5.2.4 Corporate governance 216 - 230 5.2.5 Rules of proper use of insider information 218 5.2.6 internal control and auditing systems 70 - 71 5.3 dividend policy 262 6. Related party transactions 215 7. management discussion and analysis 20 - 30 8. financial statements 8.1 financial statements and notes to financial statements 73 -214 8.2 Auditor fee 215
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