01 annual report 2011 kasikornbankgroup · 002 annual report 2011 management report note: •...

รายงานประจำาปี 2554รายงานของฝ่ายจัดการ 01

ANNUAL REPORT 2011 KASIKORNBANKGROUP

CustomerCentricity

• Multi-Corporate Business • Large Corporate Business • Medium Business • Small and Micro Business

• High Net Worth Individual • Affluent • Middle Income • Mass

KASIKORNBANKGROUP aims to be the strongest, the most innovative and the most proactive Thai financial group in serving customers.

• Customer Centricity• Group-Wide Teamwork• Professionalism• Innovation

KASIKORNBANKGROUP aims to be a strong Thai financial group that provides a variety of financial services of world-class quality responsive to serve customers’ needs by harmoniously combining technology and human resources so as to achieve optimal benefits to customers, shareholders, employees and the country.

Mission

Vision

Core Values

002 Annual Report 2011Management Report

Note: • Financial statements as at 31 December 2010 and 2009 have been reclassified to be presented in order to comply with Thai Financial Reporting Standards and the Bank of Thailand (BOT) notification number Sor Nor Sor 11/2553, directive dated 3 December 2010, regarding “The preparation and announcement of the financial statements of commercial banks and holding companies which are parent company of group of companies offering financial services”. • The 31 December 2009 consolidated financial position statement included all items of assets and liabilities of MTGH Group. The consolidated statement of comprehensive income included 1 month operating result of MTGH Group for the period ended 31 December 2009. 1) Local board / High-low share prices during the year 4) Excluding non-controlling interests 2) Bank only 5) Loans = Loans to customers less Deferred revenue 3) Provision expense = Impairment loss on loans and debt securities 6) Non-performing loans net refer to the non-performing loan value, net of total allowances for doubtful accounts

COMMON SHARE INFORMATION Per share (Baht) • basic earnings 10.12 8.38 6.16 • book value 64.68 56.38 50.14 • dividends 2.50 2.50 2.50 Share price (Baht)1) • high 144.00 130.00 91.00 • low 99.75 77.25 40.25 • closing 122.00 125.50 85.00 Common shares outstanding • average basic (million share) 2,393.26 2,393.26 2,393.26 • end of year (million share) 2,393.26 2,393.26 2,393.26 Market capitalization (Million Baht) 291,978 300,354 203,427 VALUE MEASURES Price to earnings ratio (PER) 12.06 14.98 13.80 Price to book value ratio (PBV) 1.89 2.23 1.70 Dividend yield (based on closing share price) 2.05% 1.99% 2.94% Dividend payout ratio 27.00% 32.14% 42.49% Number of employees2) 16,580 15,677 15,464 Number of branches2) 816 805 782 OPERATING RESULTS (Million Baht) Interest income - net 56,491 46,744 39,857 Non-interest income 34,017 28,400 21,683 Fees and service income - net 20,637 18,227 15,937 Other income 45,087 35,394 7,686 Underwriting expenses 31,707 25,221 1,940 Total operating income - net 90,508 75,144 61,540 Total other operating expenses 43,019 38,003 31,338 Impairment loss on loans and debt securities 7,345 6,701 9,376 Operating profit before provision expense and income tax expense3) 47,489 37,141 30,202 Net profit4) 24,226 20,047 14,733 FINANCIAL POSITION STATEMENT INFORMATION (Million Baht) Loans5) 1,210,834 1,076,981 941,145 Allowance for doubtful accounts and revaluation allowance for debt restructuring 40,343 36,832 34,045 Non-performing loans net (NPL net)6) 14,698 16,022 18,473 Non-performing loans gross (NPL gross) 31,736 33,175 37,152 Total assets 1,722,940 1,546,664 1,362,838 Deposits 1,242,229 1,100,036 975,492 Total liabilities 1,555,974 1,401,177 1,234,692 Equity4) 154,799 134,943 119,997 Risk weighted assets 1,269,282 1,131,218 1,004,092

As of or for the years ended December 31, 2011 2010 2009

FINANCIAL HIGHLIGHTS (CONSOLIDATED FINANCIAL STATEMENTS)

003Annual Report 2011Management Report

FINANCIAL HIGHLIGHTS (CONSOLIDATED FINANCIAL STATEMENTS)

2009 2010 2011

NPL Gross to Total LoansTrillion Baht

Loans NPL Gross to Total Loans

20200909 20201010 20201111

0.941.08

1.21

2.91%2.45%

3.76%

Net ProfitMillion Baht

Net Profit

2009 2010 2011

14,733

20,04724,226

Total Assets

Loans Total Assets

Trillion Baht

2009 2010 2011

1.361.55

1.72 2.001.801.601.401.201.000.800.600.400.200.00

0.941.211.08

Total LiabilitiesTrillion Baht

Deposits Total Liabilities

2009 2010 2011

1.801.601.401.201.000.800.600.400.200.00

1.231.40

1.100.981.24

1.56

Note: • Financial statements as at 31 December 2010 and 2009 have been reclassified to be presented in order to comply with Thai Financial Reporting Standards and the Bank of Thailand (BOT) notification number Sor Nor Sor 11/2553, directive dated 3 December 2010, regarding “The preparation and announcement of the financial statements of commercial banks and holding companies which are parent company of group of companies offering financial services”. • The 31 December 2009 consolidated financial position statement included all items of assets and liabilities of MTGH Group. The consolidated statement of comprehensive income included 1 month operating result of MTGH Group for the period ended 31 December 2009. 7) Loans used in calculation are loans to general customers and loans to financial institutions after allowance for doubtful account of non-performing loan 8) Loans used in calculation are loans to general customers and loans to financial institutions 9) Provision expense = Impairment loss on loans and debt securities 10) Allowance = Allowance for doubtful accounts and revaluation allowance for debt restructuring

As of or for the years ended December 31, 2011 2010 2009

PERFORMANCE INDICATORS Net interest margin (NIM) 3.75% 3.48% 3.23% Non-interest income to average assets 2.08% 1.95% 1.62% Non-interest income ratio 37.58% 37.79% 35.23% Efficiency ratio 47.53% 50.57% 50.92% Return on average assets (ROAA) 1.48% 1.38% 1.10% Return on average equity (ROAE) 16.72% 15.73% 12.79% ASSET QUALITY RATIOS Loans to deposits ratio 97.47% 97.90% 96.48% Loans to deposits and B/E ratio 94.72% 93.51% 92.80% Tier 1 capital ratio 9.63% 9.37% 10.25% Total capital ratio 13.81% 13.96% 15.19% NPL net to total loans7) 1.15% 1.43% 1.91% NPL gross to total loans8) 2.45% 2.91% 3.76% Provision expense to average loans (Credit cost)9) 0.64% 0.66% 1.02% Total allowance to loans10) 3.33% 3.42% 3.62% Total allowance to NPL gross (Coverage ratio)10) 127.12% 111.02% 91.64%

30,000

25,000

20,000

15,000

10,000

5,000

0

4.00%3.50%3.00%2.50%2.00%1.50%1.00%0.50%0.00%

1.401.201.000.800.600.400.200.00

CONTENTS

BOARD OF DIRECTORS’ REPORT MANAGEMENT REPORTManagement ReportManagement Discussion and Analysis 1. Overview 2. Operating Performance and Financial Position Analysis 3. Operations of Core Businesses 4. Operations of Support Groups 5. KASIKORNBANK’s Investments in Subsidiaries and Associated CompaniesRisk Management and Risk Factors 1. Overall Risk Management 2. Risk Management 3. Capital Management FINANCIAL REPORTS Report of the Board of Directors’ Responsibilities for Financial ReportsReport of the Audit CommitteeAudit Report of Certified Public AccountantFinancial StatementsNotes to the Financial Statements CORPORATE GOVERNANCEReport of the Corporate Governance CommitteeReport of the Human Resources and Remuneration CommitteeCorporate Governance 1. Rights of Shareholders 2. Equitable Treatment of Shareholders 3. Roles of Stakeholders 4. Disclosure and Transparency 5. Responsibilities of the Board of DirectorsDividend PolicyFactors Affecting Investment Decisions CORPORATE SOCIAL RESPONSIBILITY (CSR) ACTIVITIESBusiness Activities Environment and SafetyEmployees Social ActivitiesPlans for CSR Activities in the Future STRUCTUREOrganization ChartBoard of DirectorsBoard of Directors and Executives Directorship of Directors and Executives in Subsidiaries, Associated, and Related CompaniesChanges in KASIKORNBANK Shares Held by Directors and Executives in 2011Management TeamInvestment of KASIKORNBANK in Other Companies OTHER INFORMATION Reference InformationMajor ShareholdersAwards and Commendations KASIKORNBANKGROUPKASIKORNBANK 1. Domestic Branch 2. Foreign Exchange Booth 3. K-Safe Deposit Box Center 4. THE WISDOM Exclusive Center 5. THE WISDOM Corner 6. THE WISDOM K-Safe Deposit Box Center 7. K-WePlan Branch 8. Corporate Business Center 9. Corporate & SME Service Center 10. SME Business Center 11. Overseas OfficeK Companies SUMMARY OF SPECIFIED ITEMS PER FORM 56-2

5

79

55

7172747684

219220221

254255

257266269274281

284286288300302303308

311312313

321

347

349


KASIKORNBANKGROUP experienced another successful year in 2011, as one of Thailand’s leading financial conglomerates. Net profits were up 20.85 percent, to Baht 24,226 million, and total financial solutions continued to be developed and extended to cover all customer segments, both at home and abroad. In addition to the 816 KASIKORNBANK branches and 7,366 ATMs in Thailand, there are now four branches and four representative offices abroad. As part of our aim to provide valuable financial services, business alliances have been forged with financial institutions in China, Japan, South Korea, and Vietnam.

Within the financial arena, KASIKORNBANKGROUP held the lead position in many areas. As the leading provider of business services to SMEs, KGroup maintained the largest share of that market. We led in digital and mobile phone banking services with 2.8 million users. Non-interest income increased by 19.78 percent; home loans increased by 15.74 percent. Of note was our K-Value Chain Solutions, the first of its kind in Thailand, providing full-cycle financial services along the entire value chain, upstream to downstream. With the products and services offered by KGroup, our customers in the corporate, SME, and retail segments are able to achieve lower costs and more efficient and effective operations.

The K-Transformation Program continued to move forward in 2011, with the development of the Multi-channel Sales and Services (MSS) Project. New branch infrastructure platform rollout was fully completed. Having been deployed to all Bangkok branches already during 2011, the new sales & service solution will be gradually applicable to more than 800 branches nationwide by Q1/2012. To date, the new sales & service system has created faster customer responsiveness and consistent customer experience across channels. Moreover, the newly finished MSS integrated with Know Our Customer (KOC) capabilities has increased effectiveness

of campaign execution through branch platform, thus leading to creation of cross-selling, up-selling, better campaign response rate, as well as higher product holding and sales amount/transaction volume per customer. For Small SME & Micro Segment, the benefit has been realized in lead/referral across channels, sales planning & sales management activities.

Beyond implementing our Customer-Centric strategy and ensuring the highest quality under our unique K-Excellence concept, KASIKORNBANKGROUP has adhered to our Statement of Corporate Governance and Corporate Social Responsibility (CSR) Principles. Activities and projects have been carried out for the benefit of youth, education, and the environment. During the catastrophic flooding last October, in addition to well thought out assistance measures, KGroup set up two flood relief centers. Administered by the Chaipattana Foundation, one center was located at the First Army Air Defense Operation, Wang Noi, Phra Nakhon Si Ayutthaya, and the other at Wat Yansangwararam, Chon Buri. KGroup believes that these efforts alleviated material hardship while providing needed hope and encouragement to flood victims.

On behalf of the Board of Directors and the entire KGroup staff, I would like to take this opportunity to express our sincere appreciation to each and every one of you.

BOARD OF DIRECTORS’ REPORT

(Mr. Banyong Lamsam)Chairman

MANAGEMENT REPORT 007 Management Report

009 Management Discussion and Analysis

055 Risk Management and Risk Factors


Amid global economic woes and domestic economic risks in 2011, KASIKORNBANKGROUP (KGroup) strove to provide support to all customer segments, based on our organization-wide teamwork and the “Customer-Centricity” strategy, with the aim of offering the total solutions to our customers. In addition, having recognized business opportunities abroad - particularly in China - KGroup has been successful in forming business alliances with several large banks there, wherein KASIKORNBANK also became the first Thai bank to open a Chinese-Thai Business Center (CTBC) in our country to provide comprehensive information and advisory services to both Thai and Chinese investors. Aside from our business expansion into China by opening of a new branch, KGroup has sought to establish a business network with partner banks in various countries that will allow us to meet not only the needs of foreign investors wishing to invest in Thailand, but also Thai companies seeking to invest in other countries in Asia, including Japan, South Korea and Vietnam. In light of the most extensive flooding in recent Thai history, KGroup has placed emphasis on customer contacts and visits to assess the damage, so that we could render them the most timely and appropriate assistance; we have also devised a number of complete assistance measures to help both business and retail customers. To achieve marked success in strategies that differentiate us from rivals, we have placed an emphasis on our development of support functions to work more harmoniously via improvements in human resources and IT management, as well as technological innovations via the K-Transformation program. As a result of these efforts, KBank’s consolidated net income for 2011 totaled Baht 24,226 million, increasing by Baht 4,179 million, or 20.85 percent, over 2010, mainly attributable to increases in net interest income and non-interest income. Regarding our financial position as of December 31, 2011, the Bank’s consolidated assets totaled Baht 1,722,940 million, increasing by Baht 176,276 million - an 11.40 percent

increase - over the end of 2010. This was primarily due to over-year loan growth of Baht 133,853 million - equivalent to 12.43 percent - to Baht 1,210,834 million, which drew support from impressive growth in Corporate, SME and Retail Business loans. Our non-performing loans continued to diminish over-year, amid increased loan extension and improved asset quality. The Bank’s consolidated deposits equaled Baht 1,242,229 million, growing by Baht 142,193 million, or 12.93 percent, over the end of 2010, as we continued to offer attractive deposit products at various times. As for capital status, the Bank’s capital adequacy ratio was 13.81 percent, with Tier-1 and Tier-2 capital ratios equaling 9.63 percent and 4.18 percent, respectively, which mirrors our capital strength. K Companies engaged in financial business all showed satisfactory quantitative and qualitative performance in 2011, attributable to close-knit internal cooperation within KGroup. KSecurities had an excellent performance, wherein their income and profit continued to grow over 2010. KAsset maintained superior growth in their assets under management (AUM), comparing to the market average. Also, the company’s AUM represented the largest market share in the business. KLeasing had impressive loan growth in 2011, while the company continued to focus on their asset quality improvement. KF&E reported significant loan growth over-year. Meanwhile, MTL achieved outstanding earned premium growth, and was able to maintain the national first-place rank in bancassurance’s new business premiums. We have adhered to recognized best practices in risk management strategies. Emphasis has been placed on engagement within our consolidated risk management framework, as well as complete and accurate disclosures of risk management and capital adequacy information on a regular basis. Striving to be the best in all dimensions of our business development, we nevertheless strictly adhere to good corporate governance principles. To this end, we achieved our higher business goals in 2011, and were applauded widely at home and abroad, thus having been the recipient of many awards of recognition extended to us in 2011.

Executive Summary Management Discussion and AnalysisFor the Year Ending December 31, 2011

MANAGEMENT REPORT

009

Thailand Economic Growth Forecast

Source: National Economic and Social Development Board, Ministry of Commerce and KASIKORN RESEARCH CENTER CO., LTD.Note: * Forecasted Figure (As of February 21, 2012)

Year-on-Year Change (Units: Percent)10

8

6

4

2

0

GDP Headline CPI

2010 2011 2012*

3.8

4.5 - 6.0

0.1

3.33.5 - 4.5

7.8

Annual Report 2011Management Report

1. Overview 1.1 Overview of Economy, Banking Industry and Regulatory ChangesThailand’s Economy in 2011 and Outlook for 2012 The Thai economy in 2011 expanded at only 0.1 percent over-year, dramatically decreasing from the 7.8-percent growth of 2010, due to a number of negative factors at home and abroad, including the devastating earthquake and tsunami in Japan that caused supply chain disruption of industrial manufacturing, an economic slowdown in major economies as a result of the public debt problems of the U.S. and Europe, as well as massive flooding in Thailand affecting a wide range of economic activities and sectors. As risks to the Thai economy became more evident, the Bank of Thailand’s Monetary Policy Committee (MPC) resolved to cut their policy rate during the final meeting of 2011, following interest rate hikes during the first three quarters, as part of their efforts to maintain economic stability. Meanwhile, the prolonged and widespread European debt crisis has raised

investor concern towards heightened economic risks and affected global financial market movements. Regarding the economic outlook for 2012, it is estimated that the Thai economy will grow by 4.5 to 6.0 percent over 2011, boosted by private and government spending for post-flood rehabilitation activities, and building of flood-mitigation facilities, as well as investment in megaprojects. Although the Thai economy is expected to maintain its growth momentum, international trade, particularly for exports, may be affected by the deceleration of major economies globally. Meanwhile, the government’s policy implementation to increase income and stimulate the economy, including increases in the minimum wage and civil servant income, and energy-related policies, as well as potentially rising commodity prices, may pressure domestic inflation and bring additional challenges to the Bank of Thailand’s monetary policy maneuvers throughout 2012, particularly if the sovereign debt crisis in Europe grows worse than initially expected.

MANAGEMENT DISCUSSION AND ANALYSIS


Banking Industry and Competition In 2011, operations of Thai commercial banks were affected by multiple downsides, with the worst being the catastrophic flooding in the final quarter of 2011 that made banking services inaccessible within some areas, resulting in a temporary decline in banking transaction volume. Looking over the entire year, however, core banking business maintained a fair level of operating performance. This was largely driven by sound growth during the first three quarters. Loans within the Thai banking sector achieved double-digit growth in continuation from 2010, amid higher loan demand along with expanding international trade and other economic activity, despite upward interest rate trend during the first three quarters. Supply-side push also contributed to impressive loan growth, particularly after most commercial banks looked forward to meeting their loan targets that year. Continued growth in fee and service income helped banks to sustain higher net profits and net interest margins (NIM), despite the widespread flooding in the fourth quarter of 2011. Asset quality remained healthy with a continued decline in the ratio of non-performing loans (NPLs) to total loans. As for 2012, Thai commercial banks are expected to see more challenges in maintaining their earnings and profitability, despite the potential for double-digit loan growth achieved on the back of continued domestic spending and the tamed interest rate direction. In addition to loans, competition in deposit and savings products will remain intense, in light of the stronger need of Thai commercial banks to accumulate liquidity to brace for intensified competition in the deposit market, especially with other savings and investment alternatives and a reduction in the deposit guarantee to not more than Baht 1 million/customer/financial institution by the Deposit Protection Agency, effective August 11, 2012. In addition, changes in relevant laws and regulations - including the implementation of a financial sector liberalization policy, accounting standards and effects from the Emergency Decree regarding the management of the Financial Institutions Development Fund (FIDF) debt service - may inevitably affect Thai banking business operations, going forward.

Regulatory Changes1

Some important regulatory changes in 2011 that may affect KASIKORNBANK business operations can be summarized, as below: • Criteria for Establishment and Supervision of Overseas Branches of Thai Commercial Banks Pursuant to the Bank of Thailand (BOT) notification No. SorNorSor. 8/2554, on the criteria of establishment and supervision of overseas branches of Thai commercial banks (which was published in the Government Gazette on October 17, 2011, and came into force on the following date), BOT approval is required for overseas branch opening of Thai commercial banks (in the form of overseas offices holding branch status, for operating the commercial bank business within the permitted scope of each country). In addition, a comparative analysis must be conducted in relation to expected benefits, costs and risks for such branch opening. Within three years after the BOT approval in principle, completion of the branch opening request must be achieved. Bank officers must be assigned for an audit of branch business operations and assets at least biennially, while reporting and document submittal must comply with the established regulations and conditions. In cases where commercial banks wish to terminate or discontinue their branches overseas, they have to submit the request form for the BOT’s permission. Upon approval of business termination, the business operation license must be returned to the Ministry of Finance or the BOT (as the case may be). Guidelines for overseas branch establishment have been better clarified by this regulation, thus encouraging commercial banks with high potential to attain greater coverage of business operations and customers. Moving forward, banks’ business operations will be enhanced with improved efficiency and competitiveness, specifically

1 Other details relating to regulatory changes during 2011 can be viewed in the report of Management Discussion and Analysis (MD&A) for the quarters ending March 31, 2011, June 30, 2011 and September 30, 2011.


important to the upcoming financial sector liberalization. As KBank has been studying and analyzing all relevant issues circumspectly for our overseas business expansion, our operations have not been significantly affected by this regulation. • Permission for Thai Commercial Banks to Operate Trustee Business The BOT notification No. SorNorSor. 9/2554, concerning the permission for Thai commercial banks to operate trustee business (which was published in the Government Gazette on November 16, 2011, and came into force on the following date) stipulates that permission is required from the Office of the Securities and Exchange Commission (SEC) for trustee business to be operated by commercial banks, in compliance with the Trust for Transactions in Capital Market Act, B.E. 2550, and other relevant BOT regulations. Commercial banks can apply for any trustee business types, if their qualifications meet the established standard and their practices comply with the specified conditions. (Nevertheless, retail banks are not allowed to be a trustee functioning as investment manager.) In addition, those commercial banks have to formulate policies, strategies, operational procedures, as well as arranging written plans to support their trustee business operation, with the approval of their Board of Directors. Moreover, assets of trust funds - in which commercial banks are entitled as their trustee - shall not be consolidated with bank assets, in order to comply with the BOT supervision. Meanwhile, the BOT is authorized to suspend or revoke the trustee business license in cases of breach or non-compliance with the regulations or conditions, or any action that may affect the safety or well-being of the general public. With this notification, commercial banks will have more opportunities to offer a wider range of financial services as per the objectives of the Financial Sector Master Plan II (FSMP II), aiming to encourage leading banks to widen their financial business to meet all needs of customers, from mutual funds to venture capital funds and private funds. As for the trustee business which is new in Thailand,

KGroup has already undertaken a study, wherein its initial results indicate our potential and readiness in incorporating this business. Although this study also suggests a variety of service models suitable to different groups of customers, practical implementation remains pending clarity of relevant regulations, including tax-related issues. • The Financial Sector Master Plan II (FSMP II) The BOT’s Financial Sector Master Plan II (to be implemented during 2010 - 2014) consists of three key policies: reducing system-wide operating costs, promoting competition and access to financial services, and strengthening financial infrastructure, which includes market liberalization, increased access for foreign financial institutions via grants of licenses for some business areas, and permission for an increased number of branches and ATMs. By 2014, a business license for establishment of new full-service commercial banks is planned. Furthermore, the authorities plan to encourage large-sized commercial banks of ASEAN+3 (including China, Japan and South Korea) to operate their business in Thailand more freely, as well as expediting the schedule of financial sector liberalization. In order to brace for such guidelines to liberalize the financial institution sector, KGroup has conducted extensive analyses on this issue. So doing - plus our decade-long efforts to pursue strategies that have strengthened our business fundamentals - has led us to believe that we will be able to maintain our competitiveness over both existing and new players that may enter the market in the future. These notable efforts included our thorough understanding towards the needs of our customers under our “Customer-Centricity” strategy that has been continually improved, along with developed products, services, and sales and services channels, suitable for each customer segment, their life stages and lifestyles, as well as the nature of business operations in Thailand and the changing economic environment. • ASEAN Economic Community (AEC) A single market and production base among member countries is aimed to be achieved by 2015 as per the ASEAN Economic Community (AEC) establishment. Major progress


of liberalization has been evident in terms of international trade, whereas the service liberalization will be gradually implemented later on. Regarding the financial service sector, the securities business - which Thailand has been committed to liberalize - has reported significant movements. Under the securities business liberalization, 100 percent foreign-equity ownership is permitted in existing firms, while foreign shareholding of over 49 percent in commercial banks and insurance firms remains unbounded. Due to the fact that the full-service commercial banks may be affected by the development of financial sector liberalization, particularly for securities business, along with a plan to expedite the liberalization schedule, commercial banks should brace for any changing circumstances that may affect their business operation, as well as their customers. Realizing the significance of the AEC establishment that will bring greater opportunities, albeit with heightened competition, KGroup has been closely monitoring the development of related negotiations, as well as studying the opportunities and challenges that may affect the Bank and our customers’ business operations. In 2011, KGroup expanded our cooperation with our business allies who are leading commercial banks in ASEAN countries. Focus has been placed upon equipping our customers with relevant knowledge, along with complete products and services to every customer segment, in order to ensure that their business expansion within ASEAN will be supported by our finest financial services. This effort also helps maintain their competitiveness, amid more intensified competition in the future. • Basel III Drafted by the Basel Committee on Banking Supervision (BCBS), the new regulations of Basel III will take effect on January 1, 2013, and may result in changes in commercial banks’ capital and liquidity risk management. As the BOT will likely comply with these guidelines, the KASIKORNBANK Financial Conglomerate has been studying in preparation for the changes, assessing impacts of compliance, and continuously monitoring the progress

of Basel III implementation at home and internationally, in order to ensure that compliance will not have any impact on the capital level of the KASIKORNBANK Financial Conglomerate. • Implementation of International Accounting Standards (IASs and IFRSs) KASIKORNBANKGROUP has complied with the International Accounting Standards (IASs) and International Financial Reporting Standards (IFRSs) under the time frame specified by the Federation of Accounting Professions. Also, the Bank has early-adopted some IASs and IFRSs, before the regulations take effect officially, while we continue to prepare for the full implementation of these new regulations, initially scheduled to be effective in Thailand during 2013 - 2015. So doing has been undergone by assessing the possible impacts on management decisions, policy improvements, as well as revision of relevant operational procedures and systems, on grounds of benefit maximization for KGroup. • Reduced Corporate Income Tax According to the Royal Decree issued under the Revenue Code regarding Reduction and Exemption from the Revenue Taxes (No. 530) which was published in the Government Gazette on December 21, 2011, and came into force on the following date, the corporate income tax was reduced from 30 percent to 23 percent for fiscal year 2012, and to 20 percent for fiscal years 2013 and 2014, in order to promote competitiveness and stimulate the overall economy. The reduced corporate income tax will benefit KGroup in 2012 onwards. Due to our adoption of the deferred income tax policy, this revised regulation thus had impact on only our Statement of Financial Position for the fourth quarter of 2011 (related details can be viewed in No. 43 concerning Income Tax in the Notes to Financial Statements). As this consequence is regarded as an accounting adjustment and bears no realized expenses for the Revenue Department, such adjustment has not affected our business operation, profitability and capital.


1.2 Business Directions of KASIKORNBANKGROUPKASIKORNBANKGROUP in 2011 and Outlook for 2012 Against the backdrop of global economic woes in 2011, especially the European public debt crisis and slow U.S. economic recovery, plus the widespread flooding in Thailand that dealt a severe setback to the Thai economy - particularly through the industrial sector - late last year, KASIKORNBANKGROUP has strived to provide support to all customer segments, based on our organization-wide teamwork and the “Customer-Centricity” strategy, with an aim of offering total solutions - comprising products and services from all six companies in KGroup - to our clients. To this end, we introduced K-Value Chain Solutions to offer fully-integrated value-chain services to our large business customers, with credit products and financial services that meet the specific needs of each business, from upstream to downstream. Industry Solutions have been launched to respond to the demands of our SME customers in eight major industries, in addition to enhancement of products and services to promote international trade through the K-Trade Premier and SME Super Trade Credit programs. With the coordinated effort between the Bank and KLeasing, K-SME Leasing Plus was launched to meet the needs of our business clients. We also offered financial and non-financial support - including knowledge and business network - through the K SME Care program that has been continually pursued over the past five years. For retail business customers, KGroup, in cooperation with six leading property developers, launched a pilot project of an escrow agent service, acting as a neutral third party with fiduciary responsibilities on behalf of home buyers and sellers. Also, based on our understanding of the restrictions facing self-employed persons and freelancers in accessing credit facilities, we initiated the “Savings for Future Benefit” program that allows this group of customers to use their savings records as part of their loan application. Having recognized business opportunities overseas - particularly in China, where the ample loan demand of local SME proprietors has yet to be met - KBank, as a leading

Thai financial institution with SME lending expertise, has embarked on business expansion to increase our market share in the Chinese banking sector in sync with the economic development plans of China and Thailand. In 2011, KGroup declared success in forming a business alliance with several large banks in China, and KBank was the first Thai bank to open the Chinese-Thai Business Center (CTBC) in our country to provide information and comprehensive advisory services for doing business in both countries. Additionally, the Bank has continued to offer financial services to support Thai-Chinese businesses, namely “China Direct”, which guarantees USD-denominated funds transfer to China within the same day, and other RMB-related services. Aside from our business expansion into China by opening of a new branch, KGroup has sought to establish a business network with partner banks in various countries that will allow us to meet not only the needs of foreign investors wishing to invest in Thailand, but also Thai companies seeking to invest in other countries in Asia, including Japan, South Korea and Vietnam. In light of the most extensive flooding in recent Thai history, KGroup has placed our emphasis on customer contacts and visits for accurate assessment of damages, so that we could render them the most timely and appropriate assistance. We have offered a complete range of post-flood assistance measures, in the periods of damage assessment, business restoration and recovery to full production capacity throughout the business cycle, including suppliers, producers and consumers. For retail business clients, our aid measures involved reduction of monthly repayments, provision of grace period, and reduced minimum repayment of all types of consumer loans. KGroup has placed an emphasis on harmonious work relationships among support functions. With regard to our human resources, we have recruited employees in a manner consistent with our organizational and business strategies, developed leadership potential, and enhanced our organizational culture based on our behavioral guidelines. On the IT front, the focus has been on system development,


Awards for KBank Business Divisions and Other Important Awards

• Best SME Bank in Thailand award in The Asset Triple A Transaction Banking Awards 2010 & 2011 from The Asset magazine• Adman Award in the Silver category for the “Cookie Boy” TV commercial, which was the highest prize in the Finance & Insurance category of the Adman Awards & Symposium 2011• Best Deal of the Year award from Alpha Southeast Asia magazine and Solar Best Deal of the Year award from Project Finance magazine, for our efforts in offering advisory services and financial support for the construction of solar power plant projects • Best Project Finance Deal of the Year in Southeast Asia award as a financial advisor, and Best Project Finance Deal of the Year in Southeast Asia award as a syndicate loan provider, for 2010/2011, from Project Finance magazine • Best Retail Bank in Thailand award for the second consecutive year, and Best Retail Banking Brand award from The Asian Banker journal (KBank is the only Thai bank to receive this award in 2011.)• Best Retail Bank of the Year 2011 award for the fourth consecutive year, and the Most Attractive Booth award for the fifth consecutive year, at the Money Expo 2011, from Money and Banking magazine• VISA Debit Innovation Award 2010 from Visa International (Asia Pacific) Ltd.

• Best Debt House 2011 award for the fourth consecutive year and Best Domestic Bond House 2011 award in The Asset Triple A Country Awards 2011, from The Asset magazine • Best Local Currency Bond and Best Thailand Deal awards in the FinanceAsia Achievement Awards 2011 project, for our distribution of inflation-linked bonds, organized by FinanceAsia magazine• Best Trade Finance Bank award from Global Review magazine • Best Foreign Exchange Bank 2011 award from FinanceAsia magazine• Asia Risk Awards 2011, House of the Year of Thailand, by Asia Risk magazine• Thailand’s Most Innovative Companies Award 2011 in the Service category, from the Faculty of Commerce and Accountancy, Chulalongkorn University• Top Company for Leaders Award (TCFL), with KBank being ranked in the Top 20 of the Asia-Pacific region, from Fortune magazine in coordination with Aon Hewitt of Aon Corporation

security and system stability management, as well as business continuity management (BCM), all of which aims at enhancing the success and effectiveness of business strategy implementation, and responding to the needs of each business unit.

All of these aforementioned efforts not only supported KGroup in achieving higher business goals in 20112, but also rewarded us with many marks of recognition from both domestic and foreign agencies, including:

2 Complete details of marks of recognitions and rewards can be viewed in the “Awards and Commendations” section of the 2011 Annual Report.


In 2012, KGroup will adhere to our “Customer-Centricity” strategy by striving to satisfy the needs of customers with the unsurpassed quality of financial products and services from all six companies in KGroup, under K Excellence, as well as our K Now project that encompasses a broad array of supports over and beyond financial services. Under the K Now project, customers’ quality of life will be enhanced through our innovative and value-added products and services that better meet all needs at each customer’s life stage. To achieve this end, we have tailored our main strategies into three main areas: Product via creation of innovative products to meet the customers’ needs in a timely manner; Branding and Marketing through clarity and consistency of the brand at all levels; and Service Quality by the delivery of the finest service experience for all customers through our various service channels. In addition, KGroup has outlined our strategy to support the diverse needs of each customer segment, as follows: • Corporate Customers: Aiming to become the trusted partner of our customers, KGroup will continue to emphasize enhancing value creation of our customers and their trade partners’ businesses, from upstream to downstream, for their sustainable business success. In achieving this objective, complete financial service solutions and advisory services will be offered to meet the financial and non-financial needs of these customers. • SME Customers: Determined to maintain our leadership in the overall SME market and in all areas with potential, we will continually focus on effective and ongoing marketing communications, together with increases in

the number of customers with high potential, and in holding of products generating high fee income. In addition to our efforts to improve operational procedures, plus management of loan portfolio and asset quality, cordial relationships with customers will be further strengthened, through our customer relationship management - in both business and personal perspectives - by fostering more effective collaboration with our sales and service channel units. • Retail Customers: We continue to place an emphasis upon being the main bank for customers and customers generating high income for KGroup. In achieving this goal, brand communications and marketing capabilities will be further strengthened, in addition to more effective management of the sales and service network, plus their service quality and efficiency. Aside from those aforementioned plans, KGroup has also paid attention to other infrastructure enhancements, including efficient cost management, risk management that aligns with external circumstances, human resource development and IT improvement, all of which will help ensure that our strategic and business goals will be achieved as planned.

Corporate Governance KASIKORNBANK believes that good corporate governance is a key factor to sustain our business undertakings and enabling the Bank to attain our ultimate goals for the maximum benefit of shareholders. It will not only lead to sound and transparent management under a clear standard, which will enhance the Bank’s competitiveness, but also result in greater confidence among local and foreign shareholders, and all involved stakeholders. The Bank has,


therefore, continued to place significant emphasis on corporate governance practices. Aside from the review of related principles, and arrangement of transparent and efficient Annual General Meetings in accordance with the regulatory requirements and the Statement of Corporate Governance Principles, the Bank’s notable actions in 2011 included the implementation of corporate governance activities based on efforts to maintain our standards, and to develop corporate governance on a continuous and sustainable basis. To promote corporate governance as our organizational culture, internal communications were regularly made with directors, executives and employees on the topics of corporate governance principles and compliance with the Code of Conduct. A notification system was set up for directors and executives, in order to minimize risks from omission of duty or non-compliance. Moreover, the KGroup CG Index was initiated during the year for monitoring and assessing the corporate governance performance of KGroup and companies providing service support for KGroup. In 2011, with our dedication and effort to continually promote corporate governance, KASIKORNBANK was awarded many marks of recognition for outstanding corporate governance, including the NACC Integrity Award for two consecutive years, from the National Anti-Corruption Commission; and the SET Award of Honor for Continuous Excellence in Corporate Governance Report 2008 - 2011, from the Stock Exchange of Thailand (SET) and Money & Banking magazine at the SET Awards 2011 ceremony. In addition, the Bank has achieved “Excellence” in rating scores for corporate governance and quality assessment results of the Annual General Meetings of Shareholders of listed companies for many years running.3

KBank also continued to place importance on corporate social responsibility (CSR) activities. The Board of Directors formulated a relevant policy to welcome participation of employees, customers, society and the community towards sustainable development. During 2011, many CSR projects and activities were carried out continuously, including K SME Care; the “Green Building” project to enhance energy savings with fluorescent tubes and energy-efficient air conditioners; the project of ATM, CDM and PUM slip size reduction; the project of “KASIKORN staff joined to Clean Chao Phraya River” (arranged for the second consecutive year); the recognition program for employees, as well as the Sino-Thai Forum project. These activities have emphasized our commitment to undertake business based on good corporate governance principles, together with responsibility towards the environment and society.

2. Operating Performance and Financial Position Analysis 2.1 Operating Performance The Bank’s consolidated net income for 2011 totaled Baht 24,226 million, increasing by Baht 4,179 million, equivalent to a 20.85 percent over-year growth. This increase was mainly attributable to an increase in net interest income, as a result of loan growth and a consequence of asset and liability management to align with interest rate trend. Consequently, our net interest margin equaled 3.75 percent in 2011. In the meantime, our non-interest income grew by 19.78 percent over-year, led by continued growth of net fees and service income, in alignment with our “Customer-Centricity” strategy. Meanwhile, our efficiency ratio stood at 47.53 percent for 2011, better than the previous year.

3 Details of marks of recognition and awards related to corporate governance can be viewed in the “Awards and Commendations” section of the 2011 Annual Report.


Interest income 83,693 62,271 21,422 34.40 Interest expenses 27,202 15,527 11,675 75.19 Interest income - net 56,491 46,744 9,747 20.85 Fees and service income - net 20,637 18,227 2,410 13.22 Other income 45,087 35,394 9,693 27.39 Total operating income 122,215 100,365 21,850 21.77 Underwriting expenses 31,707 25,221 6,486 25.72 Total operating income - net 90,508 75,144 15,364 20.45 Total other operating expenses 43,019 38,003 5,016 13.20 Operating profit (Before impairment loss on loans and debt securities, and income tax expense) 47,489 37,141 10,348 27.86 Impairment loss on loans and debt securities 7,345 6,701 644 9.61 Income tax expense 13,962 9,094 4,868 53.53 Net profit 26,182 21,346 4,836 22.66 Net profit attributable to: Equity holders of the Bank 24,226 20,047 4,179 20.85 Non-controlling interests 1,956 1,299 657 50.58 Net profit 26,182 21,346 4,836 22.66

PercentMillion Baht

Operating Performance for 2011(Units: Million Baht)

2011Change

2010

In the report for the quarter ending September 30, 2011, according to the Cabinet’s resolution, the Bank and subsidiaries disclosed the impact of a reduction in corporate income tax rate from 30 percent of taxable profit to 23 percent in 2012 and 20 percent in 2013 to 2014. On December 21, 2011, the Royal Decree was published announcing the adoption of the reduction in corporate income tax rate. The Bank and subsidiaries recognized the item of deferred tax in the income statement

in the fourth quarter of 2011, in accordance with International Accounting Standards. However, this is a one-time impact. Since this is an accounting item adjustment, it does not involve the actual tax payment to the Revenue Department. Apparently, the Bank and subsidiaries’ business undertakings, profitability and capital fund have not been affected. The Bank and subsidiaries will thus benefit from this corporate income tax rate reduction from 2012 onwards.


Interest income Interbank and money market items 7,178 2,363 4,815 203.77 Deposits 288 80 208 260.00 Loans without repurchase agreements 75 16 59 368.75 Repurchase agreements 6,815 2,267 4,548 200.62 Investments 8,414 6,929 1,485 21.43 Trading investments 285 279 6 2.15 Available-for-sale investments 4,259 3,602 657 18.24 Held-to-maturity investments 3,870 3,048 822 26.97Loans 64,801 49,895 14,906 29.87Finance leases 3,327 2,892 435 15.04Others (27) 192 (219) (114.06)Total interest income 83,693 62,271 21,422 34.40 Total interest expenses 27,202 15,527 11,675 75.19 Total interest income - net 56,491 46,744 9,747 20.85 Non-interest income Fees and service income 26,072 22,821 3,251 14.25 Fees and service expenses 5,435 4,594 841 18.31Fees and service income - net 20,637 18,227 2,410 13.22 Gain on trading and foreign exchange transactions 5,214 4,465 749 16.77 Gain (loss) on financial liabilities designated at fair value through profit or loss (54) (94) 40 (42.55) Gain (loss) on investments 806 610 196 32.13 Share of profit from investments using equity method 13 6 7 116.67 Dividend income 784 661 123 18.61 Earned premium 37,118 29,090 8,028 27.60 Other operating income 1,206 656 550 83.84Less Underwriting expenses 31,707 25,221 6,486 25.72Total non-interest income 34,017 28,400 5,617 19.78Total operating income - net 90,508 75,144 15,364 20.45

PercentMillion Baht

Income Structure (Units: Million Baht)

2011Change

2010


Net Interest Income The Bank’s consolidated net interest income for 2011 rose over the previous year, due mainly to increased interest income - as a result of an increase in interest income from loans, following larger average loan volume and higher lending rates during the period. Meanwhile, our interest expense increased over-year, in light of increased interest expense on deposits that largely came from higher interest expenses from our offering of special fixed-term deposit products, rising benchmark interest rates, as well as an increase in average deposits. In addition, the Bank continued to maintain sound asset and liability structure, ensuring its alignment with interest rate trends. As a result, our net interest margin equaled 3.75 percent, higher than the 3.48 percent in 2010.

Non-Interest Income For 2011, the Bank’s consolidated non-interest income increased over the previous year. Of note was an increase in net fees and service income, a Baht 1,542 million increase in earned premium net of underwriting expenses from Muang Thai Life Assurance Company Limited (MTL), equivalent to a 39.86 percent growth over-year. Additionally, the increase was attributable to gains on trading and foreign exchange transactions, as well as other operating income

that partly came from gains on sales of non-performing assets in 2011. The over-year increase in our net fees and service income was due primarily to the increase in fees from sales of products and financial services, such as card businesses and transfer payments, fees from securities underwriting representatives, as well as fees from loan-related business that drew support from larger loan volume. All of which was a result of our “Customer-Centricity” strategy, leading to continual growth in the number of new customers.

Other Operating Expenses The Bank’s consolidated other operating expenses for 2011 rose over the previous year. This was mainly the result of an increase in personnel expenses, in tandem with increased salary and number of staff, as well as special benefits to employees. Consequently, the efficiency ratio in 2011 equaled 47.53 percent, better than the 50.57 percent in the previous year.

Impairment Loss on Loans and Debt Securities For 2011, the Bank and our subsidiaries set aside higher allowances for impairment loss of loans and debt securities than the previous year. This was mainly in response to the changing economic environment.


2.2 Financial Position Analysis

Assets As of December 31, 2011, the Bank’s consolidated assets totaled Baht 1,722,940 million, increasing by Baht 176,276 million, or 11.40 percent, over the end of 2010. The increase was mainly attributable to increases in loans, net interbank and money market items (asset), as well as net investments, as follows: • The Bank’s consolidated loans, at the end of 2011, totaled Baht 1,210,834 million, growing by Baht 133,853 million over-year, or 12.43 percent, due primarily to increases in commercial, housing, and working capital loans that aimed at providing liquidity support to our business customers. Our consolidated loans were the fourth-largest among the group of large commercial banks.

Meanwhile, our net non-performing loans4 (Net NPLs) ratio to total loans, at the end of 2011, equaled 1.15 percent, down from 1.43 percent at the end of 2010. Similarly, the gross NPL ratio to total loans was at 2.45 percent at the end of 2011, dropping from 2.91 percent at the end of 2010. Such NPL ratio decreases were due to growth in total loans and a decrease in bad debts. • Net interbank and money market items (asset), at the end of 2011, amounted to Baht 111,969 million, up by Baht 14,409 million, or 14.77 percent, over the end of 2010. This was as a result of the Bank’s liquidity management. • Net investments, at the end of 2011, equaled Baht 264,143 million, increasing by Baht 13,063 million, or 5.20 percent, over the end of 2010, mainly due to investments from MTL.

4 Details of non-performing loans are shown in the “Non-Performing Loans and Debt Restructuring” of the “Credit Risk Management” section.

Assets and Liabilities Structure

DepositsDebts issued and borrowingsInterbank and money market items (liability)Life policy reserveOther liabilities

Loans to customers and accrued interest receivablesInvestments - netInterbank and money market items - net (asset)CashOther assets

Units: Million Baht

Dec. 31, 2011Dec. 31, 2010

80%5%3%6%6%

79%6%2%6%7%

2,000,000

1,600,000

1,200,000

800,000

400,000

0

5%7%

70%

3%

15%

6%6%

70%

2%

16%


Liabilities and Equity The consolidated liabilities of the Bank, at the end of 2011, totaled Baht 1,555,974 million, increasing by Baht 154,797 million, or 11.05 percent, over the end of 2010. The increase was mainly the result of deposits, as well as interbank and money market items (liability). Meanwhile, debts issued and borrowings dropped. Consolidated liabilities that had changed significantly relative to the previous year included: • Deposits, at the end of 2011, amounted to Baht 1,242,229 million, increasing by Baht 142,193 million, or 12.93 percent, over the end of 2010. This was due mainly to increased special fixed-term deposits offering more alternatives for customers. Our consolidated deposits were the third-largest among the group of large commercial banks. • Interbank and money market items (liability), at the end of 2011, equaled Baht 53,340 million, increasing by Baht 20,276 million, or 61.32 percent, over the end of 2010. This was mainly the consequence of our asset and liabilities management, part of which was from an increase in private repurchase transactions.

• Debts issued and borrowings, at the end of 2011, totaled Baht 70,303 million, down by Baht 18,629 million, or 20.95 percent, from the end of 2010, largely as a result of bills of exchange that came to maturity. At the end of 2011, total equity attributable to equity holders of the Bank equaled Baht 154,799 million, increasing by Baht 19,856 million, or 14.71 percent, over the end of 2010. This increase was the result of higher net operating income for 2011.

Relationship Between Sources and Uses of Funds At the end of 2011, the funding structure as shown in the consolidated financial statement comprised Baht 1,555,974 million in liabilities and Baht 166,965 million in total equity, resulting in a debt-to-equity ratio of 9.32. The major source of funds on the liabilities side was deposits, which equaled Baht 1,242,229 million, or 72.10 percent of the total. Other sources of funds included interbank and money market items as well as debts issued and borrowings, which accounted for 3.10 percent and 4.08 percent of the total, respectively.

Investments

300,000

250,000

200,000

150,000

100,000

50,000

0

Units: Million Baht

Dec. 31, 2010

13,7708,201

19,325209,600

Dec. 31, 2011

Equity SecuritiesPrivate Enterprise Debt Instruments Foreign Debt InstrumentsGovernment and State Enterprise Securities

14,2559,496

32,991

207,387


The Bank and subsidiaries’ major use of funds was loans. At the end of 2011, loans amounted to Baht 1,210,834 million, resulting in a loan-to-deposit ratio of 97.47 percent. Meanwhile, the loan-to-deposit plus bills of exchange ratio was 94.72 percent. As for the remaining liquidity, the Bank invested

it in various selections of liquid assets, such as interbank and money market items, and investments in securities. The major sources and uses of funds, as of the end of 2011, are categorized by contractual maturity periods shown in the following table:

The Bank and Subsidiaries’ Major Sources and Uses of Funds(Units: Million Baht)

≤ 1 Year 1,195,278 96.22 998,405 90.76 587,763 48.54 545,588 50.66> 1 Year to 5 Years 46,951 3.78 101,631 9.24 292,340 24.14 272,145 25.27> 5 Years - - - - 330,731 27.32 259,248 24.07

Total 1,242,229 100.00 1,100,036 100.00 1,210,834 100.00 1,076,981 100.00

PeriodPercentDec. 31, 2011 Percent Dec. 31, 2010PercentDec. 31, 2011 Percent Dec. 31, 2010

The Bank and subsidiaries’ deposits with remaining maturities of less than or equal to 1 year at the end of 2011 totaled Baht 1,195,278 million, increasing by Baht 196,873 million, or 19.72 percent, over the Baht 998,405 million at the end of 2010. Deposits with remaining maturities of over 1 year at the end of 2011 were Baht 46,951 million, dropping by Baht 54,680 million, or 53.80 percent, from the Baht 101,631 million at the end of 2010. At the end of 2011, the Bank and subsidiaries had loans with remaining maturities of less than or equal to 1 year totaling Baht 587,763 million, increasing by Baht 42,175 million, or 7.73 percent, over the Baht 545,588 million at the end of 2010. Loans with remaining maturities of over 1 year up to 5 years amounted to Baht 292,340 million, increasing by Baht 20,195 million, or 7.42 percent, over the Baht 272,145 million at the end of 2010. In addition, loans with remaining maturities of over 5 years equaled Baht 330,731 million, increasing by Baht 71,483

million, or 27.57 percent, over the Baht 259,248 million at the end of 2010. From the above table, it can be seen that, as of December 31, 2011, deposits with remaining maturities of less than or equal to 1 year were larger than loans with remaining maturities of less than or equal to 1 year. This is considered normal for commercial banks in Thailand, as they normally fund their lending or investments in long-term assets from short-term liabilities. However, since most deposits are renewed upon maturity, it is considered likely that they will remain with the Bank longer than their stated contractual term, thereby helping to support funding for the Bank’s lending. In order to enhance flexibility and variety in the Bank’s funding structure, as well as provide more alternatives in investments for the public and the Bank’s depositors, the Bank has offered “K-B/E Investment” products to both retail and corporate customers, with their outstanding value totaling Baht 36,072 million as of December 31, 2011.

Deposits Loans


2.3 KASIKORNBANK’s Loans and Deposits Loans Classified by Business and Product Groups

Regarding the Bank’s loans classified by business and product groups, Corporate Business loans increased by Baht 30,207 million, or 9.40 percent, over the end of 2010, as a result of loan growth in all products, mainly from domestic credit loans, mostly seen in long-term credits of utility, real estate, hotel and restaurant businesses. In the same direction, SME Business loans increased by Baht 45,343 million, or 11.52 percent, over the end of 2010, due to increases in all products led by higher domestic credit loans, seen in long-term loans of agriculture, trading, and processed agricultural businesses. Our Retail Business loans, at the end of 2011, also reported healthy growth

of Baht 40,827 million, or 19.15 percent, over the end of 2010, in light of increases in all products, with housing loans recording the highest growth rate in terms of loan volume, boosted by our efforts to maintain good relationships with leading property developer allies, and our unique marketing campaigns that meet the needs of all customer segments. Additionally, the increase in housing loans was supported by our measures to relief flood-affected customers. Meanwhile, consumer loans recorded the highest growth rate over the previous year, due to our continued efforts to offer sales promotional campaigns that effectively meet the needs of target customers.

Note: * Excluding non-performing loans and other loans, such as those of subsidiary companies and others. ** Revised to reflect regrouped customers.

KASIKORNBANK’s Loans Classified by Business and Product Groups*(Units: Million Baht)

Loans 351,694 439,076 253,991 321,487 393,733 213,164 Domestic credit loans 251,964 399,819 227,282 365,145 Trade finance loans 88,348 39,257 84,518 28,588 BIBF loans 11,382 9,687 Housing loans 184,900 159,751 Credit card loans 42,179 36,719 Consumer loans 26,912 16,694

SME Business

Retail Business

Dec. 31, 2011

Corporate Business

SME Business

Retail Business

Corporate Business

Dec. 31, 2010**


Deposits Classified by Type of Deposit Accounts

after the continual hike during the first-nine months of 2011. The Bank continued to pursue our strategy of increasing transaction volume with other financial institutions to enlarge our borrowing and lending sources for regular adjustment of liquidity position with the money market situations. This has also helped sustain our status of the BOT-appointed primary dealer. Meanwhile, the Bank continued to support the BOT’s effort to jointly develop the “Bangkok Interbank Offered Rate” (BIBOR) with all primary dealers, by means of tackling the prevailing problems and obstacles, increasing transaction volume in the money market, particularly for 3-month tenors, as well as extending BIBOR-linked loans and derivatives, all of which has helped promote BIBOR as another reliable reference rate in the money market.

At the end of 2011, total deposits - comprising deposits of our Corporate, SME and Retail Business customers - had increased by Baht 141,631 million, or 12.85 percent, over the end of 2010. This was mainly attributable to increases in fixed-term deposits, as the Bank has offered special deposit products carrying attractive returns in different periods that meet the varied needs of customers.

2.4 Treasury Operations In 2011, the Bank maintained our focus on proper liquidity management, in response to changing economic circumstances at home and abroad, as well as interest rate direction in the money market as per the BOT’s monetary policy. As of the end of November 2011, the BOT resolved to cut the policy rate by 0.25 percent to 3.25 percent

KASIKORNBANK’s Deposits*(Units: Million Baht)

Total Deposits 100.00 1,243,860 1,102,229 141,631 12.85 Current accounts 5.37 66,833 61,698 5,135 8.32 Savings accounts 55.32 688,037 688,650 (613) (0.09) Fixed-term deposit accounts 39.31 488,990 351,881 137,109 38.96

Percentof Total Deposits Percent

Change

Million BahtDec. 31, 2011 Dec. 31, 2010

Note: * Bank only

Deposits


In 2011, total interest income, contributed from our treasury operations (banking book), was Baht 11,297 million, rising by Baht 4,933 million, or 77.51 percent, from 2010.

This was the consequence of an over-year increase in liquidity of around Baht 60,000 million, coupled with an upward interest rate trend during the first three quarters of 2011.

Treasury Operations Income(Units: Million Baht)

Interest income* Interbank and money market items** 61.95 6,998 2,289 4,709 205.72 Investments 38.05 4,299 4,075 224 5.50 Total 100.00 11,297 6,364 4,933 77.51

Percent2011

Change2010

Million BahtIncome Structure of Treasury Operations

(Banking Book)

Note: * Managerial figures ** Including loans

Note: * KResearch is not included, as the company does not engage in financial business.

Operating Performance of K Companies* and Muang Thai Life Assurance Co., Ltd.(Units: Million Baht)

KASIKORN FACTORY AND EQUIPMENT Co., Ltd. (KF&E) Outstanding Loans 8,013 3,912

KASIKORN LEASING Co., Ltd. (KLeasing) Outstanding Loans 63,832 53,908

KASIKORN ASSET MANAGEMENT Co., Ltd. (KAsset) Assets under Management (AUM) 741,827 634,834

Market Share (Percent) 24.61 22.02

KASIKORN SECURITIES PCL. (KSecurities) Trading Volume 411,392 429,985


Muang Thai Life Assurance Co., Ltd. (MTL) Earned Premium 37,886 29,649


20102011Performance Measurement

2.5 Operating Performance of K Companies and Muang Thai Life Assurance Co., Ltd.

Percentof Total Income


During 2011, K Companies showed satisfactory quantitative and qualitative operating performance, attributable to the earnest cooperation of all departments in KGroup. Sound performance of KSecurities was witnessed through continued growth in their revenue and profits by 18.42 percent and 24.19 percent, respectively, over 2010. For investment banking business, the company focused on joining hands with the Bank in regularly introducing financial solutions to satisfy our customers. Moreover, the company continued to make progress on opening up new branches, located in KBank branch areas, for greater service efficiency. Other securities products have been developed continuously, in order to meet all customer needs and to prepare us for the securities business liberalization in 2012, as well as striving towards our goal in becoming the market leader within three years. During 2011, assets under management (AUM) of KAsset grew by 16.85 percent over-year, significantly above the market average growth rate of 4.56 percent. The company also reported their AUM market share of 24.61 percent, which was the largest market share in mutual, private and provident funds business, under the synergy with the Bank for development of products that efficiently meet the needs of customers, expansion of electronic channels and delivery of excellent service quality. KLeasing also reported satisfactory loan growth, although the automotive manufacturing industry in Thailand was severely affected by Japan’s disasters and massive flooding in Thailand during 2011. Meanwhile, the company has continued to improve their asset quality, with a lower-than-expected ratio of NPLs to total loans of only 1.04 percent. Upon coordination with the Bank, the company opened up two new branches to serve the wider group of customers, and offered various sales promotional campaigns for both retail and SME customers, such as K-SME Leasing Plus. With such dedication and efforts, the company’s business achievement was applauded

and awarded many marks of recognition, such as the Best Car Leasing of the Year award for the third consecutive year, granted by Grand Prix International Co., Ltd., at the Bangkok International Motor Show. KF&E reported significant loan growth over-year, in alignment with the company’s loan growth target for overall 2011. In addition, the company has been working together with KBank through relationship managers (RM), with an aspiration to become a market leader in the near future. For MTL, their notable development included efficiency enhancement for bancassurance services, and coordinated efforts with the Bank to jointly improve insurance policies to better match customer needs, all of which resulted in outstanding growth in MTL’s earned premium from bancassurance channel, and their ability to maintain the first-place rank in bancassurance’s new business premium. In response to continued dedication in developing products and services, the company was also awarded many commendations, including the First Winner of the Life Insurance Company with Outstanding Management award for five consecutive years (2006 - 2010) from the Office of Insurance Commission; the Superbrands Award for the fifth consecutive year (2006 - 2010) from Superbrands Thailand; and the Trusted Brand Awards 2011 (Gold) for the second consecutive year (2010 - 2011) by Reader’s Digest magazine.

2.6 Capital Requirements and Credit Ratings Capital Funds As of December 31, 2011, the Bank had capital funds of Baht 175,246 million, consisting of Baht 122,228 million in Tier-1 capital, and Baht 53,018 million in Tier-2 capital. The capital adequacy ratio of the Bank was 13.81 percent, significantly above the Bank of Thailand’s minimum requirement of 8.50 percent. Details of the capital adequacy ratio of the Bank are shown in the following table:


Capital Adequacy Ratio* (Units: Percent)

Maintenance of Ratios The Bank maintains liquid assets, on average, of at least 6.00 percent of deposits and some kinds of borrowing, in compliance with the Bank of Thailand’s regulations. As of December 31, 2011, the Bank had cash in hand, cash at central cash centers, deposits with the Bank of Thailand and eligible securities, totaling Baht 265,697 million.

Credit Ratings In 2011, Standard & Poor’s upgraded the Bank’s long-term counterparty credit rating and the Bank’s long-term ASEAN regional scale rating to “BBB+” and “axA+” from “BBB” and “axA”, respectively. Meanwhile, the Bank’s credit ratings given by Moody’s Investors Service and Fitch Ratings remained unchanged from year-end 2010. Details are shown in the following table:

Tier-1 Capital Ratio 9.63 9.72 9.18 9.43 9.37Tier-2 Capital Ratio 4.18 4.18 4.39 4.61 4.59

Capital Adequacy Ratio 13.81 13.90 13.57 14.04 13.96

Dec. 31, 2011Capital Adequacy Ratio Sep. 30, 2011 Jun. 30, 2011 Mar. 31, 2011 Dec. 31, 2010

Note: * Excluding the net profits of each period, which under Bank of Thailand’s regulations, net profit in the first period is to be counted as capital after approval by the Board of Directors as per Bank’s regulations. Net profit in the second period is also counted as capital after approval of the General Meeting of Shareholders. However, whenever a net loss occurs, the capital must be immediately reduced accordingly.

Capital Adequacy Ratio (Including the net profit of each accounting period)

(Units: Percent)

Tier-1 Capital Ratio 10.56 10.27 10.23 10.80 10.24Tier-2 Capital Ratio 4.17 4.18 4.39 4.62 4.59

Capital Adequacy Ratio 14.73 14.45 14.62 15.42 14.83

Dec. 31, 2011Capital Adequacy Ratio Sep. 30, 2011 Jun. 30, 2011 Mar. 31, 2011 Dec. 31, 2010


KASIKORNBANK Credit Ratings

Moody’s Investors Service** Foreign Currency Outlook Stable Stable Long-term - Debt n.a.* n.a.* - Deposit Baa1 Baa1 Short-term - Debt/Deposit P-2 P-2 Subordinated Debt Baa1 Baa1 Bank Financial Strength Rating (BFSR) D+ D+ Outlook for BFSR Stable Stable Baseline Credit Assessment Baa3 n.a. Domestic Currency Outlook Stable Stable Long-term - Deposit A3 A3 Short-term - Debt/Deposit P-1 P-1Standard & Poor’s** Global Scale Ratings Outlook Stable Stable Long-term Counterparty Credit Rating BBB+ BBB Long-term Certificate of Deposit BBB+ BBB Short-term Counterparty Credit Rating A-2 A-2 Short-term Certificate of Deposit A-2 A-2 Subordinated Debt (Foreign Currency) BBB BBB- ASEAN Regional Scale Ratings Long-term axA+ axA Short-term axA-1 axA-1

Note: * Moody’s Investors Service does not assign ratings to the Bank’s long-term debt. ** The base levels for investment grade on long-term credit ratings for Moody’s Investors Service, Standard & Poor’s, and Fitch Ratings are Baa3, BBB- and BBB-, respectively. For short-term credit ratings, the base levels for investment grade as viewed by these three agencies are P-3, A-3, and F3, respectively.

Dec. 31, 2010Dec. 31, 2011Credit Ratings Agency


KASIKORNBANK Credit Ratings

Fitch Ratings** International Credit Ratings (Foreign Currency) Outlook Stable Stable Long-term Issuer Default Rating BBB+ BBB+ Short-term Issuer Default Rating F2 F2 Subordinated Debt BBB BBB Viability bbb+ n.a. Individual C C Support 2 2 Support Rating Floor BBB- BBB- National Credit Ratings Outlook Stable Stable Long-term AA (tha) AA (tha) Short-term F1+ (tha) F1+ (tha) Subordinated Debt AA- (tha) AA- (tha)

Note: ** The base levels for investment grade on long-term credit ratings for Moody’s Investors Service, Standard & Poor’s, and Fitch Ratings are Baa3, BBB- and BBB-, respectively. For short-term credit ratings, the base levels for investment grade as viewed by these three agencies are P-3, A-3, and F3, respectively.

Dec. 31, 2010Dec. 31, 2011Credit Ratings Agency

3. Operations of Core Businesses3.1 Business Overview KASIKORNBANKGROUP continued to pursue our “Customer-Centricity” strategy. This strategic goal

has been achieved through our harmonious efforts in effective business development among all customer segments, product domains, as well as major sales and service channels. In essence:


3.2 Customer Segments Multi-Corporate Business The Bank strived to satisfy the needs of customers and their trade partners, from upstream to downstream, with Value Chain Solution and Integrated Cash Management Solution featuring innovations beyond financial products under the synergy within KASIKORNBANKGROUP. During 2011, our service solutions were provided to our target customers in infrastructure, real estate, transportation, commerce, automotive and auto parts, petrochemical and food processing businesses. Aiming at becoming the main bank for Multi-Corporate Business customers in many industries and achieving quality growth, with sustainable customer relationships for future business opportunities, we have strengthened relationships

with our business allies at the personal and organizational levels. In addition, the Bank continued to focus on becoming a knowledge-based organization, while staff development was further implemented for their greater capability in offering client-responsive products and services, specialized advice, as well as appropriate financial solutions suitable to each customer and the nature of their business. As alternative or renewable energies were among our main focus during the year, we were involved in providing advisory services and financial supports to more than 20 solar and at least three wind power plant projects. Moreover, relevant measures were launched to assist flood-affected customers, including those located in industrial parks, as well as other involved companies, staff and industries.

KASIKORNBANKGROUP

Eight CustomerSegments

Four ProductDomains

Sales & ServiceChannels

Corporate Business

• Domestic Branch• Foreign Exchange Booth• K-Safe Deposit Box Center

• SME Business Center• Cheque Point• Overseas Office

• THE WISDOM Exclusive Center• THE WISDOM Corner• THE WISDOM K-Safe Deposit Box Center

LargeCorporateBusiness

Multi-CorporateBusiness

Operation &Transaction

Protection &Information

Saving & Investing Funding & Borrowing

MediumBusiness

High NetWorth

IndividualAffluent Middle

Income

Small andMicro

Business

SME Business Retail Business

Mass

• K-WePlan Branch• Corporate Business Center• Corporate & SME Service Center


Large Corporate Business Amid a number of negative factors, particularly the 2011 flood crisis, affecting our customer businesses directly and indirectly, KBank offered relief measures including an unlimited credit line via loans for business recovery, K-Equipment Leasing and K-Supplier Financing, by considering the damages and needs of each business. So doing allowed the Bank to take part in rehabilitating customers’ businesses and provided them with complete assistance, including advisory services for reorganization and business expansion, acting as a facilitator for acquiring new markets and alternative material sources, offering of cash and risk management, as well as expanding our assistance to cover the staff of our customers. Also, KBank continuously focused on and provided support for sustained growth of family businesses by setting up the “KFam Club”, a project to provide business management courses and other beneficial activities to enhance family business connections in Thailand and establish healthy business networks in the future.

Medium Business Realizing that SME businesses have faced a number of challenges, KBank has implemented the strategy of Industry Solutions to meet the needs of customers in eight

key industries, including hotel, apartment, auto parts, processed agricultural products, logistics, international trade, contractor, as well as electronics and electrical appliance parts. Our operating procedures and services at branches and Corporate & SME Service Centers have been upgraded for faster service delivery, in addition to the launch of our “24/7 Business Assistant” teams for entrepreneur customers. Meanwhile, the Bank introduced two newly developed products and services, including K-Trade Premier and “SME Super Trade Credit” programs that cover pre- and post-financing support for all international trade customers in a more timely manner. Under the “ME Academy” project, the Bank has equipped our entrepreneur customers with useful knowledge, while enhancing their business expansion opportunities through business matching with important partners, such as TV Direct and 7-Catalog.

Small and Micro Business Determined to be the Bank for SMEs and to maintain our largest market share, development has been undertaken for our more diverse, flexible and integrated financial products and services to better meet all customer needs, throughout their business stages. Our notable efforts included elimination of collateral limits, ensured adequacy of credit limits and extension of repayment terms, as well as

KFam Club: The club for family business networks in ThailandK-Value Chain Solutions: Comprehensive products for customers along entire value chains, from upstream to downstream


delivery of the finest service experience. In 2011, many sales promotional campaigns were launched for K-SME Credit customers, such as the “SME Win All” and “SME Get Ready” campaigns. In addition, the Bank has offered assistance measures to increase liquidity for flood-affected customers. These measures included extended grace period for principal payment, P/N renewal without required documents, as well as loans for business recovery, covering K-SME Flood Relief, K-Equipment Finance and other credit facilities that were introduced jointly by the Bank and specialized financial institutions (SFIs). Our focus was also on promoting business sustainability for potential Thai SMEs by equipping them with knowledge via “Training Series” for the business owner and successors. Over the past four years, 15 classes have been organized for SME customers under these series. In addition, the Bank joined hands with the Department of Industrial Promotion to arrange a project to support new entrepreneurs, while marketing campaigns were arranged with our business allies. We took part in launching TV shows - “SME Tee Tak” and “SMEs Flying High with K SME Care” - to offer business know-how and experience to SME entrepreneurs in all segments.

High Net Worth Individual Understanding and realizing the diverse and distinct needs of each customer in this segment, KBank has adhered to the “When Your Wish is More than Wealth” concept in offering our “KGroup Private Banking” services. In 2011, KGroup launched the “SET 50 Digital Bullish Note”, featuring structured notes to satisfy customers who prefer to invest in stocks, but need full coverage against potential losses, with choices of different return rates, maturity terms and risk appetite levels. KGroup also offered the K SMART CLN 1 YEAR A fund, investing in credit-linked notes, with dividend payments depending on credit rating or incidents that may affect repayment ability of assets. Additionally, as part of our attempt to facilitate High Net Worth customers, wishing to diversify their bank deposits amid the reduced deposit protection limit by the Deposit Protection Agency, the “K Principal Protected Thai Fixed Income fund” was introduced. Apart from these offerings, the Bank has organized a number of activities in connection with customer needs in their everyday life, including Dhamma activities with the aim of soothing natural disaster victims, and seminar arrangements on the overall economic environment and investment knowledge, amid volatile market conditions.

“SME Tee Tak” TV show that has earned high audience rating, especially among SME proprietors

KGroup held the KGroup Private Banking event for high net worth individual customer


the Bank for this customer segment included opening of THE WISDOM corners in Bangkok and other large provinces, in order to deliver superior financial services to all Affluent customers.

Middle Income The Bank has adhered to our strategy of customer-base expansion for the Middle Income segment, targeting depositors, investors and credit cardholders, by tailoring products and services to suit the prevailing market conditions and the needs of the targeted customers. Our efforts in accessing those customers included arranging activities at their population centers and participating in activities matching their lifestyles. In 2011, the launch of the “Savings for Future Benefit” campaign enabled freelancer and business owner customers - having limitations in presenting income evidence - to gain better access to our lending products through the use of their savings records as an input for loan applications. Thus, the number of new customers is reported to have risen continuously. Meanwhile, customers with potential in the Mass segment were upgraded, through our branch officers’ introduction of appropriate products and services under the database marketing strategy. Sales promotional campaigns were made via regular mail, email and SMS,

Affluent Committed to our strategy of increasing the number of Affluent customers, we have strived to expand our customer base and upgrade Middle Income customers, business owners and high-ranking executives of SMEs into the Affluent segment, through cross-selling and increasing their holdings of KGroup investment products. In 2011, promotional campaigns were regularly organized for loan and insurance products, while the “Member Get Members” program served as a tool for KBank branches to attract new customers through existing customers’ referrals. With the cooperation of the Corporate and SME Business Divisions, KGroup’s investment advisory managers have been delegated to make customers’ acquaintance, as well as participate in initiating new services and sales promotions. Some of these notable projects included “Money Inflow Boost Up”, “K-VIP OD” and “Exclusive SME Credit”, which uniquely catered to customers’ business and personal needs, and helped differentiate us from peers. In addition, “THE WISDOM” brand was continually strengthened for this customer segment, through various advertising media in leading business newspapers and magazines, as well as “THE WISDOM of Wealth and Lifestyle” magazine, which was widely distributed for increased awareness of customers and their acknowledgement of our list of privileges. Another effort by

THE WISDOM Wealth and Lifestyle Magazine - exclusively for Affluent customer segment

CUSTOM

ER

CENTRICITY

The Story of Smart Success ISSUE 020 JULY - SEPTEMBER 2011

K-Personal Loan for Pensioner


for an increase in product holdings and more frequent use of our services. For holders of deposits and/or investments with KBank of more than Baht 2 million, the Bank has offered them our “KBank THE PREMIER” services, with exclusive privileges. Tailor-made marketing campaigns have been designed specifically to match this customer segment’s lifestyles.

Mass The strategy of acquiring new customers with potential in the Middle Income segment has remained a priority for the Bank. Focus has been on university students and those starting their careers, as well as the development of responsive products and services for this customer segment. In 2011, the privileges of K-Debit Card were improved to better meet the customers’ lifestyles. In addition, the Bank launched K-Bank to Post, allowing money transfer from KBank branches, so their recipients can collect at post offices across the country. This service helps enhance convenience for customers, who are fund recipients in remote areas where there is no bank branch or ATM nearby. The Bank also developed personal loan products, in terms of a cash card under the K-Express Cash service, aimed at helping customers in need of emergency cash. Special features of

this product include a service to credit the initial loan amount to a KBank deposit account within one business day after the credit line approval, plus preferential interest rates. Also, the Bank joined hands with VISA International Co., Ltd. to provide “Mobile Verify by VISA”, the world’s first payment system via mobile phone, allowing customers to shop online via their mobile phones. Payments for such transactions can be made by K-Credit Cards, or K-Debit Cards, under the Verified by VISA service. The aforementioned development highlighted our leadership in technology and ensured customers of payment transaction security.

3.3 Product Domains and Sales Channels 3.3.1 Product Domains To brace for heightened risk of global and domestic economic uncertainty, the Bank, in 2011, engaged in introducing and upgrading our responsive products and services and delivering the finest service experiences to customers. Along with this effort, sales promotional activities and knowledge-based support were launched to assist clients in their decision-making. To this end, our notable efforts can be classified into four domains, namely Operation & Transaction, Saving & Investing, Funding & Borrowing, and Protection & Information. In essence:

K-Express CashK-Bank to Post - offering money transfers from K-ATMs to any local post office in Thailand


Operation & Transaction

Details

New Products • Introduction of Smart Package: Aiming to enhance customer convenience in conducting daily and Services transactions, this service solution was initiated in the form of a transaction package, consisting of four main features - cash, mobile alert, cheque, and internet services - to respond to the transaction needs of SME customers, both payers and payees, more completely. Also, this has helped spur their transactions via the Bank’s main sales and service channels. • Introduction of Customer Solution Card: This card has been specifically personalized for medium-sized SME operators, with special privileges provided, thus increasing transaction volume of this target customer segment. • Introduction of Cash Package 799 service: This package encompasses multiple services to better facilitate customers’ financial transactions, allowing cost management effectiveness, as well as strengthen service loyalty. • Development of K-Bank to Post service: With our effort to expand channels for receiving funds transfer at all areas across the country, particularly some remote areas out of the reach of our services, this service enables money transfer from K-ATMs, 24 hours/7 days, and the recipients can collect money at post offices across the country during office hours. Also, KBank became the first bank in Thailand to introduce this service, in January 2011. • K-Auto Top Up: Firstly introduced to One-2-Call customers, the service automatically tops up customers’ mobile phones, when their airtime value is lower than Baht 50, or on a monthly basis.

K-Auto Top Up - One-2-Call Automatic refills of prepaid mobile network service“Mobile Verified by VISA” service, the world’s first payment system via mobile phones


Details

• Introduction of K-Direct Debit: Without the needs to fill in an application form at KBank branches, customers can apply for the direct debit service via K-ATM (KBank was the first bank to offer this service), by entering their member code and pressing the ‘OK’ button for this service offering after their bill payment transaction at K-ATM is completed. The supplementary service under this development includes SMS to notify the customers of insufficient funds, if any, in their account, allowing customers to make bill payment via other channels in a timely manner.Product and Service • Enhancement of time guarantee service for global funds transfer: The Bank guarantees one-day Enhancement funds transfer to China, India and Australia. With this service, Thai entrepreneurs will feel more confident that their recipients abroad will receive funds transfer within same day, thus enhancing flexibility in their liquidity management, without the need to prepare money for funds transfer a few days in advance as before. • Enhancement of K-Corporate Mobile Payment service (in the form of push bill service): Under this service, bill payment statements will be pushed into customers’ mobile phones, which not only increases retail customers’ convenience, but also helps facilitate our entrepreneur clients by means of increased business potential and flexibility. • Development of K-My Debit Cards: Based on our focus on value proposition in offering unique designs of debit cards for our target Gen Y and first-job customers, the Bank introduced a K-Debit Card in the Paul Frank collection, and the Valentine’s collection (rose-scented debit cards, with a special design). Also, the Bank launched a new design of ‘GTH is me’ card, aiming at satisfying teenagers who love actors/actresses and cartoon characters in the popular movies. • Development of K-Max Family Debit Cards: This card features personal accident coverage for customers and their loved ones, targeted specifically at our upper Mass to Middle Income customers, wishing to provide for the health and security of their family members.

K-My Debit Card, with special designs by Paul Frank Limited Edition, which has been very popular among teen customers

Guaranteed one-day money transfers to China, India and Australia


Details

• Enhancement of card accepting merchant services: The Bank offered a multi-currency card accepting service to new merchant customers, along with the Certified Dynamic Currency Conversion (DCC) service that supports the highest number of currencies (up to 31 currencies). In addition, the Bank has introduced the new EDCs, with GPRS Desktop to meet merchants’ diverse needs and conditions, such as merchants having no telephone line or those wishing to save on their telephone costs. Meanwhile, dual SIM-card EDCs, with a system of comparable stability with the single SIM-card EDCs, were installed to reduce relevant costs and the Bank’s expenses. For flood-affected merchants, the Bank replaced damaged machines with new ones, free of charge. • Adjustment of withdrawal and funds transfer fees across other clearing districts via our electronic channels, K-MOBILE BANKING and K-Cyber Banking: To comply with the BOT’s policy, fees for these transactions conducted through both electronic channels were reduced to Baht 15 per transaction, starting June 18, 2011, which is in alignment with the earlier-adjusted fees charged from similar transactions made via ATMs.Enhancement of • Enhancement of custodial and mutual fund supervisory services: The Bank is the second service Business Operation provider in the market to expand the custodial service to investment in gold bullion (with the purity Efficiency of 96.5 percent). Meanwhile, our mutual fund supervisor service was slightly affected by the flooding, as some mutual fund customers has been invested in property, factories and warehouses that were damaged by the flood, with estimated accounting losses in these assets’ value reaching approximately Baht 2 billion. • Fund Accounting: This complete service solution includes investment fund management, as well as facilitating back office work, such as preparation of Statements of Financial Position and updated investment status reports, for customers particularly two insurance companies that merged with each other with a combined asset value of more than Baht 7 billion.

K-Cyber Banking: Our convenient online banking service…banking at your fingertip

K-Max Family Debit Card cares for you and your beloved ones


Details

• Improvement of registrar services for unit trusts, debentures and bonds: The Bank has placed emphasis on improvement of the system and operational procedures for increased efficiency in registrar services. So doing enabled us to better cope with investment volume of KAsset’s fixed income funds with specific terms, which was affected only slightly during the flooding, as well as high investment volume in LTFs and RMFs at year-end. • Participation in project finance and related services: The Bank acts as a facility and security agent for customers’ syndicated loan projects in energy, transportation and telecommunication sectors. As a trusted service provider, it is expected that we will be entrusted by a number of new customers in 2012. • Enhancement of Phone-Based Relationship Managers (RMs): To increase customer satisfaction, the Bank added a 24-hour/7-day phone-based RM service, enabling customers to contact our officers at any time, while we also introduced financial service solutions to encourage customers to use KBank as their main bank.Sales and Marketing • Marketing activities for holders of K-Max Debit Cards, K-My Debit Cards and ‘GTH is me’ Promotional Programs Debit Cards: These activities were jointly organized by the Bank and our business allies to provide these cardholders with numerous benefits, plus online payment channels. This effort helped encourage customers to apply for our cards and spur their spending through these cards. • Introduction of EDCs together with KBank Smart Pay: This integration offers our customers privileges of installment payment at a zero-percent interest rate. In order to strengthen brand awareness for our large-sized merchant customers, their advertisement messages were placed on the back of sales slips, which consequently helped broaden our large-sized customer base, particularly petrol stations, automotive dealers, and mobile phone sales agent businesses in 2011. • Coordination with Anti-Money Laundering Office (AMLO): As an e-payment service provider, the Bank is working together with AMLO to develop the system, allowing us to conduct e-transfer or e-payment reports in compliance with the established regulations.

K-My Debit - Our popular and trendy debit card

K Principal Protected Fund for principal protection and high return


Saving & Investing

Details

New Products • Continuous launch of new deposit products: The Bank introduced various types of saving products, and Services with suitable returns amid the upward interest rate trend and intensified competition, prior to the gradual decrease in deposit protection limit in August 2011. The new products and campaigns include the “Deposit for Children’s Day”, “Fixed Deposit Campaigns with Attractive Interest Rates”, “Step-up Fixed Deposit”, special fixed deposit products, with different deposit periods, “Flexible Fixed Deposit plus Family Protection” and “Paul Frank K-My Debit Card and Passbook (limited edition)” that effectively attracted a number of Gen Y and Middle Income customers who are of working age. In addition, the Bank offered “5-month B/E”, as an alternative investment product, with high returns catering for upper Affluent customers. Obviously, the aforementioned products received a warm welcome from our customers. • New mutual funds: During 2011, the Bank joined hands with KAsset to establish and offer 104 mutual funds, investing in domestic and foreign debt instruments. Our notable mutual fund offerings included K Principal Protected Thai Fixed Income, an investment alternative for depositors wanting higher returns under a comparable level of risk appetite; K GOLD ETF, an exchange-traded fund investing in domestic gold bars and incorporated in Thailand, allowing investors to know the price in real time, making it different from other gold mutual funds; K-INDIA, a mutual fund investing in equities and equity-linked securities of foreign countries; and K Gold Linked Complex Return 1 Year A Fund (KGL1YA), a complex gold fund investing in structured notes. • FX Linked Note: This B/E product, with special conditions linked with foreign exchange rates, is suitable for corporate customers with some knowledge and understanding of benchmark foreign exchange currencies and wanting higher returns than deposit rates at a limited risk appetite. Moreover, the returns that the customers will gain are tied up with their selected foreign currencies.

K Gold ETF (KG659) K India Equity Fund: K-INDIA


Details

• Introduction of K-Smart Note Linked MLR, featuring bills with returns linked with MLR lending rates. • Launch of Dual Currencies Note: This bills product offers returns that are tied up with foreign exchange rates, which is provided for those who would like to make a short-term investment and expect foreign currency to depreciate against the Thai Baht, or would like to exchange the Baht into foreign currencies at reference rates for higher returns than a fixed deposit rate or B/Es. The investor must have a foreign currency as underlying assets. • Introduction of K-Smart Equity Linked Note: Bills with special conditions linked with the SET50 index (SET 50 Digital Bullish Note) are suitable for investors with a limited risk appetite, but wishing to invest in equity instruments.Enhancement of • Enhancement of online investment system: The Bank developed an online system of transactions Business Operation (purchasing, redemption or switching of unit trusts), investment planning services, related-registration Efficiency services, setting up investment target and alert service (when the returns on investment meet the target) and opening new funds, in order to enhance convenience for customers’ investments. Other new service systems were also launched, such as an online purchase system of LTFs and RMFs for tax benefits via K-Credit Cards, and the reporting system showing gains/losses and mutual fund costs in customers’ portfolios. Sales and Marketing • Launch of PR media on Deposit Protection Agency (DPA) Act: As the blanket guarantee wasPromotional Programs reduced to not more than Baht 50 million/depositor/financial institution, starting from August 11, 2011, this program is aimed at providing knowledge on DPA among our customers and the general public, as well as assuring them of the Bank’s financial stability and performance.

Long-term equity fund (LTF), Retirement Mutual Fund (RMF) - Attractive returns

K SME Fixed Rate Loans


Funding & Borrowing

Details

New Products • Introduction of a number of new products for SME entrepreneurs: Our notable products included and Services K-SME Retail Credit for retailers that have financial limitations and limited access to loan facility; K-SME Fixed Rate Loan, offering loans with a fixed interest rate for entrepreneurs, thus reducing risks from higher interest rates during the first half of 2011; and K-SME Combo Credit catering to those in need of liquidity for their business operations through an O/D line of up to full value of collateral. • Launch of K-SME Tourism Solution: The project is to support small-sized tourism businesses related to accommodations, restaurants, tour guides/spas, car and boat rental, and souvenirs. • Introduction of K-SME Leasing Plus: Providing for entrepreneurs buying new cars, this loan facility consists of a credit line from KLeasing and a business credit line from KBank. • K-SME Commercial Real Estate: This loan facility, with the longest installment term of 30 years, was provided for SME customers in need of a workplace which can be used as their housing as well. • Development of K-Energy Saving Guarantee Program: KBank offers equipment leasing/hire purchase financing, in response to the government’s energy-saving policies. • Development of K-Exclusive SME Credit: Under this developed product, a credit line of up to 150 percent of collaterals (fixed-term deposits) is provided, in order to support short-term working capital for business proprietors, or directors of juristic entities. • Introduction of K-SME Flood Relief Loan for 2011: KBank offered a relief loan for qualified SME customers who operated their business in specified flood-hit areas. Credit lines carrying a four-percent interest rate for the first three years and normal rates on the following years were provided in accordance with individual customer needs. The loan maturity is seven years (the total maturity including existing loan after rescheduling must not exceed 10 years).

K-Energy Saving Guarantee Program, offering equipment leasing/financing for energy efficiency projects

K-SME Leasing Plus - a credit line from KLeasing and a business credit line from KBank


Details

• Arrangement of many special projects: To meet the needs of all customer segments more effectively, the Bank introduced the “K-Home Loan + Free Auto Loan”, and “Savings for Future Benefit” campaigns targeting freelancers - having limitations in presenting income evidence - to gain better access to our personal loans. Meanwhile, KBank is the first bank in Thailand to launch the “escrow agent” project, in which the Bank acts as a neutral third party with fiduciary responsibilities on behalf of home sellers and buyers. • Introduction of new personal loans: During 2011, the Bank launched K-Personal Loan for Pensioners, featuring a new consumer loan facility provided for government retirees. K-Express Cash for Payroll was also introduced, featuring working capital facility, with favorable interest rates for enhanced convenience of loan applicants (as only national ID card is required for the application). • Development of Cash One Hour: This service aims at rapidly responding to the needs of K-Express Cash customers by allowing them to receive cash within an hour after approval in Money Expos. • Launch of Bangkok Hospital Group-KBank Credit Cards: In addition to the launch of THE WISDOM, THE PREMIER and Platinum cards which have been well received among customers, KBank and Bangkok Hospital Group jointly offered multiple privileges of high-quality medical and financial services that completely meet the needs of health-conscious customers through these co-branded credit cards. Moreover, other credit cards were launched to match all customer lifestyles, such as the AirAsia-KBank Credit Cards, suitable for customers who are frequent travelers.Product and Service • Improvement of K-Trade Premier: This product offers unsecured import and export financing, Enhancement with a three-year credit term, allowing the Bank to promote our position of main credit account, expand our customer base, as well as maintain the existing customer base, especially for customers with good credit record, aiming to expand their businesses.

K SME Flood Relief Loan


Details

• Enhancement of Step-Up Program: This equipment leasing program helped lessen our customers’ installment payment burden during the first three months. There are also more types of machines available in this program, to better respond to customer needs and increase our competitiveness. • Funding arrangement: The Bank provided customers with funds in terms of syndicated loans, bonds, short-term B/Es, as well as financial advisory service. We were also selected to be the underwriter and guarantor of bonds and the syndicated loan provider for customers engaging in some major businesses in the sectors of energy and infrastructure, food and beverage, real estate and construction, construction material and banking businesses to support their operations, business expansion and loan repayment. Enhancement of • Adjustment of internal process for loan application: The relevant processes were improved for Business Operation offering faster service, with enhanced efficiency meeting the customer needs, as well as supporting Efficiency business expansion of customers. In addition, the Bank joined hands with customers to arrange a financial support plan for one year ahead, allowing both customers and our loan supervisors to have time for preparation of integrated and excellent service solutions. • Expanded service areas of K-Global Factoring: The relevant processes were improved for faster service delivery, with expanded service coverage to all target areas. • Expanded service areas for factoring service: This service was expanded to cover all potential business areas across the country. • Expansion of retail home loan customer base to our business allies: To improve the loan portfolio quality and increase new loan volume meeting the established goals, KBank, in coordination with leading property developers, arranged many sales promotional activities, such as “Easy Home Loan”, “D3 for D-Condo” and “Home Loan with Free Shopping Spree and Air Tickets”, “K-Home Loan Best for You”, as well as “Miracle Ground-Breaking Zero-Percent Home Loan” campaign with a zero-percent interest rate for up to 30 years.

SME Super Trade - Export-import credit facilities that meet all needs of proprietorsTHE WISDOM cards offer a myriad of benefits for KBank customers


Details

• Opening of new K Home Smiles Club: The club is located in the Crystal Design Center on Praditmanutham Road, (near Ekamai-Ramintra Expressway Road). In addition, KBank is the only bank in Thailand, to offer comprehensive advisory services related to home building, with innovations and modern technology. • Customer assistance measures for flood victims: Financial assistance measures included reductions in lending rates, monthly installment payment, and minimum installment payment, along with suspension of principal and interest payments. Other assistance measures included a zero-percent rate for K-Home Loan for Multi Purpose and K-Home Equity for house rehabilitation. The Bank set up an assistance center and provided discounts and privileges from business allies. A Big Cleaning Day activity was organized for clean-up of K-Home Loan customers’ houses.Sales and Marketing • Arrangement of marketing campaigns to spur application for and spending through K-Credit Cards: Promotional Programs The Bank - in cooperation with our allies in major businesses, engaged in shopping, dining, traveling, healthcare services and house renovation - offered our K-Credit Cardholders exclusive privileges and promotional activities to spur application for and spending through cards. Festival-related marketing activities were provided for the entire year. • Arrangement of marketing campaigns for personal loans: The relevant programs included “K-Express Cash” and “Apply for Home Loan, Get Free K-Express Cash Card”. Other promotional activities were also staged, via various media to increase awareness and the use of K-Express Cash among our customers.

K Home Smiles Club: Comprehensive home-related advisory services Post-flood home renovation with K-Credit card


Protection & Information

Details

New Products • Introduction of new products: Focusing on insurance coverage and returns in response to the diverseand Services needs of customers, the Bank launched various types of insurance products, such as “Salary Man Life Insurance Package (Pro Saving 1525)”, a savings plan for fixed income earners plus life and critical illness coverage with a monthly premium payment starting at a low rate; “Pro Saving 1/10”, a life insurance scheme with a single premium payment catering to Affluent customers and those with higher income in need of life insurance with low risk and assured return; and the “Private Pet Care” insurance product, which offers medical expense coverage for customers’ pets in case of accidents and illnesses including third party coverage, plus check-ups for insured pets, free of charge. • Introduction of “Perfect Business Smart Plus”: This business loan protection product provides additional benefits - including maturity benefits of 15 percent of premium, with greater coverage in case of death from accident. We also launched an insurance product with an endowment policy feature, including Perfect Business Plus (an insurance scheme with seven-year premium payment for 15-year coverage) at the end of the year, when customers normally seek tax benefits. Product and Service • Extension of insurable age for Pro Saving 614 and Pro Life 90/5, to one month - 70 years old Enhancement and for critical illness protection (Multiple CI) to 18 - 65 years old. So doing helped broaden savings alternatives for senior customers in need of low-risk savings with constant returns, while alleviating their medical expense burdens, amid the trend of an aging society in Thailand. • Launch of Total Solutions, aiming to provide our customers with funding sources plus risk protection. In cooperation with KAsset, we also introduced a mutual fund investing in RMB-denominated deposits which received an overwhelming response from investors. • Enhancement of LI products: We have extended the sum-assured coverage for Letter of Indemnity (LI) up to 75 percent of LI limit, from 50 previously, to better meet the customer demand for business risk protection.

Pro Saving 1525: Salary Man Life Insurance PackageEnjoy every trip with K-Credit Card


Details

Enhancement of • Raising awareness of hedging transaction benefits, via monthly seminars to keep our customers Business Operation abreast of beneficial information, especially that related to domestic and international economies, Efficiency movement in financial markets, as well as customer businesses, to ensure more efficient decision-making for hedging transactions. Seminars were also staged in provincial areas, including Chiang Mai and Songkhla, which were well received by participating customers. • Public relations media for insurance products catering to corporate customers: This media included TV and print media to develop public awareness of benefits of our insurance products as a tool for business risk protection. • Development of life insurance premium payment system, via VEDC for endowment and pension policy. Under this system, the Smart Pay service was also offered to customers, which features installment payment of premium at zero-percent interest rate for three months. • Arrangement of training courses for relationship and team managers: These training courses focused on understanding of customer attitude towards our products, enhanced efficiency in sales techniques, as well as effective sales force management. A ‘Products Box’ - a portable tool containing key details of insurance products - has been arranged and distributed to these managers for their enhanced convenience and effectiveness in product offering to customers.

3.3.2 Sales and Service Channels Realizing that sales and service channels are one of the crucial elements connecting the products and services of KGroup with each target customer segment, as well as delivering a satisfactory experience in the use of services to all customers, KGroup has strived to enhance our service

potential and efficiency. Moreover, customer accessibility to our main sales and service channels has been promoted, in order to respond to the needs of customers more effectively and conveniently both at present and in the future. Our notable services offered through each main channel in 2011 are summarized as follows:

KBank branches - Everywhere nationwide to ensure customer convenience


Branches and Financial Service Offices/Centers

Major Sales and Service Channels 2011 2010

Branch Network 816 805 • New branch opening at all target areas: This will provide greater convenience

to our customers located at our main potential areas and our business allies

who are located near our customers. We have also expanded space for

branches with high transaction volumes or relocated branches to areas with

impressive business expansion to respond to the diverse needs of target

customers. Focus has also been on branch designs to create unique looks for

different locations, such as airport WISDOM Lounge window display employed

at the Central Lat Phrao branch, or the local-themed design used at

the Cheom Panya Trang branch in Trang province.

• Launch of new services: In cooperation with True Corporation Plc., we introduced

the “Ultra Wi-Fi Experience@KBank” project which allows customers to use

wireless Internet service for communications and information search while

conducting transactions at branches.

Foreign Exchange 99 100 • Convenience enhancement for the use of our services, via arrangements of

Booths foreign exchange booths and mobile exchange booths at major tourist spots

in provincial areas.

Corporate & SME 62 61 • Service enhancement at Corporate & SME Service Centers: After International

Service Centers Trade Service offices were renamed as Corporate & SME Service Center,

Cheque Points 24 23 the Bank has expanded the scope of services to cover both domestic

Corporate Business 8 6 and international trade transactions. These services include Domestic Business

Centers Services offering K-Cash Management Solutions for the highest efficiency in cash

SME Business Centers* 95 95 management of our customers; International Trade Services for greater

convenience, confidence, and business flexibility of our customers with a more

timely service delivery and for the highest benefits of our clients; and BIZ Clinic

to provide advisory and consulting services with regard to business planning,

plus domestic and international trade transactions, free of charge.

Key Implementations in 2011Number of Locations

Note: * Excluding Corporate & SME Service Centers


Electronic Banking Services 2011 2010

Electronic Banking Services

K-ATM 7,366 7,471 • K-ATM service enhancement: To improve our service efficiency and differentiate ourselves from peers, KBank installed more ATMs with the innovative “Personalize Your Financial Experience with K-My ATM” in our potential areas, putting the total number to 3,500 at the end of 2011, from 2,200 at the end of 2010. We also replaced conventional ATMs and relocated the machines to more appropriate areas for enhanced customer convenience. Thus, the number of our K-ATMs decreased from the previous year. • Public relations to prevent ATM crime/fraud: A warning via pop-up message on ATM screens and advisory sticker have been provided on ATM terminals to raise awareness of such fraudulent acts targeting our customers, especially when conducting money transfer transactions at ATMs. • Facilitating financial transactions during the widespread flood: The Bank arranged K-Mobile ATMs and installed ATMs on elevated platforms to provide 24-hour/7-day services at 22 submerged spots, as part of our efforts to alleviate hardship for our flood-affected customers.K-CDM 1,067 1,014 • New K-CDM installation: To differentiate the Bank from peers, new K-CDMs (Cash Deposit have been installed to offer one-stop services, wherein both deposit Machines) and withdrawal can be conducted within the same machine, to better cope with the trend of increased service used by customers. • Development of K-CDM for interbank Online Retail Funds Transfer (ORFT): This service enhancement enables customers to use our CDM ORFT services 24 hour/7 days, for their greater convenience. • Enhancement of cost management efficiency: Activities to minimize global warming were arranged under the CDM Short Slip project, including reduction in the size of CDM receipts.

Key Implementations in 2011Number of Units

K Electronic Banking for customer convenience K-MOBILE BANKING: Banking service on mobile phone


Internet Banking Key Implementations in 2011

K-Cyber Banking • Introduction of new service: K-Cyber Service - combining three KGroup online services, including K-Cyber Banking, K-Cyber Trade and K-Cyber Invest - was introduced to help enhance customer convenience by means of a single User ID and Password when logging in to the service. • System development: The K-Cyber Banking webpage has been modernized and upgraded to meet the KBank website standard. For instance, displayed information and service explanations have been simplified to be more concise and easy to use, whereas new public relations media have been introduced, so that customers can learn about the use of K-Cyber Banking by themselves. Also, the Bank delivered E-Newsletters for recommending customers to conduct financial transactions via K-Cyber Banking during the flood situation. • Arrangement of sales promotions: This activity aimed at stimulating application and payment, or mobile top-up transactions during the Money Expos, or other E-Commerce events nationwide. K-MOBILE BANKING • Development and public relations program arrangements for new mobile top-up services:SMS A new service under the “Speed Top-Up” system was introduced to customers for facilitating self-service instant airtime refill, through the mobile networks of KBank business allies. • Launch of sales promotional activities: The program “K-MOBILE BANKING SMS - Term Mee Hey (Good News for Mobile Top-up)” has been launched to spur application volume and the use of the service, whereas the K-Salary Benefit 2011 campaign has been introduced to offer a refund credited to the accounts of customers making transactions via K-MOBILE BANKING as per the established conditions. K-MOBILE BANKING • Continued service enhancement: An alternative channel to apply for our “Due Alert” service ATM SIM has been added via K-Contact Center, while the interbank funds transfer system has been updated after the merger of some commercial banks. • System efficiency enhancement: In addition to a replacement of database server, the Bank has added a new participating merchant, including the Expressway Authority of Thailand (EXAT), the operator of the Easy Pass service. K-MOBILE BANKING • Continued service enhancement, for compatibility with Android and Blackberry OS6-based mobile phones PLUS and iPads, thus enabling customers to make financial transactions 24 hours/7 days. Moreover, menus have been added for self-operation and setting-up of email addresses for receiving transaction results. • Service improvements: A new application channel via mobile phones has been added. Also, the database server for this service has been replaced with a new one, while new merchants, such as the Expressway Authority of Thailand (EXAT), the operator of the Easy Pass service, were added to the system of K-MOBILE BANKING PLUS. In addition, the K-MOBILE BANKING PLUS screen for smartphones was developed for friendlier use, with a screen personalization feature. • Arrangement of sales promotion campaigns: KBank joined hands with our business allies to offer an e-coupon, a privilege for customers using services of participating merchants, as well as organizing other sales promotional projects to spur customer applications and financial transactions in each area.

Electronic Banking Services 2011 2010

K-PUM 917 906 • Increase and relocation of K-PUM: The Bank added to the number of K-PUMs (Passbook Update and relocated some of them to a more suitable area, in order to better facilitate Machines) the use of the service.

Key Implementations in 2011Number of Units


K-Payment Gateway Key Implementations in 2011

K-Payment Gateway • Development of payment system via mobile phones: KBank and VISA International Co., Ltd.,

jointly launched the “Mobile Verified by VISA” service for enhanced customer convenience

and security for online shopping via mobile phones. With this service, customers can make payments

with K-Credit Cards, or K-Debit Cards, based on VISA service with One-Time Password (OTP).

This service is also the first of its kind in the world.

• Service system improvements: To be in line with additional requirements of VISA and/or MasterCard,

the template of DCC (Dynamic Currency Conversion) has been changed to show fee rates

more clearly.

• Arrangement of marketing campaigns: The Bank joined hands with our airline business

allies to offer a zero-percent installment payment for the purchase of air tickets via the website.

• Continued provision of K-Payment Gateway Clinic: This is to provide online merchants with monthly

advisory services about the online credit card payment system. In addition, information on

e-commerce and e-banking has also been presented in seminars arranged for executives

and business proprietors, for a broadened customer base.

K-Payment Gateway - Enabling online credit card payments K-Direct Debit - Bill payment via K-ATM


K-Contact Center Key Implementations in 2011

K-Contact Center • Introduction of new services under “Personal Banking, 24 hours, daily by K-Contact Center”:

Without having to visit the Bank, customers can use our 11 services that can be divided into

two groups, i.e., 1) services that can be completed by K-Contact Center, including K-Econ Analysis

application by our Affluent customers or above, and our direct debit services for making funds

transfer and bill payments; and 2) services that are performed through K-Contact Center,

including opening of mutual funds accounts, the purchase of KAsset LTF and RMF investment units,

opening of deposit account and purchase of foreign currencies and travel insurance.

• Introduction of KGroup Private Banking Contact Center, specially catering for High Net Worth

Individual customers. Through this channel, many special services have been made available,

including limousine, Meet & Assist service at airports, as well as medical and personal concierge

assistance services.

• Expanded Service Scope for KAsset customers: Our customers can now request tax-related

certificates and process password resetting for the K-Cyber Invest service, as well as receive

information of highly popular funds, such as K-Oil or K-Gold.

K-Contact Center

KAsset Gold Limited Edition - Gold coin symbolizing never-ending wealth from KGroup

K-Contact Center - Assisting you 24/7


4. Operations of Support Groups To efficiently pursue our “Customer-Centricity” strategy, the Bank continued to upgrade all necessary support functions in the dimensions of organizational culture enhancement and clarification of desirable behaviors as per KGroup Core Values through human resource management. IT management and implementation of the K-Transformation project also helped facilitate this strategy. In 2011, notable developments included:

Human Resource Management for the Highest Business Efficiency of KASIKORNBANKGROUP During 2011, the Bank continued to strengthen K-Culture, promote desirable behaviors as per KGroup Core Values, develop human resources and arrange programs to build positive emotional attachment to the organization. These efforts aimed to promote advancement for employees and business sustainability for the Bank. For human resource management, the number of employees has been increased in response to our business expansion, particularly in China. Employee potential has been enhanced as follows: • Recruitment and Allocation of Staff: To support business expansion in Thailand and China, the Bank organized “K-Career Day” activities, the “Staff Referral” program, as well as the “China Project Career Day” program, in a bid to meet the Bank’s staff recruitment and allocation plans. With a large number of candidates, the Bank was able to recruit qualified staff, as planned. • Staff Potential Development: Employees with consistently high performance and potential, plus satisfactory

behaviors in line with K-Culture and KGroup Core Values, have been selected to participate in the Leadership Development program. Under this process, the Bank has provided individual development plans and monitored the performances of such employees. As a result, a number of these employees have been appointed as KBank leaders and executives. In addition, a succession plan was formulated to develop personnel with potential to fill vacancies, for which required knowledge and skills for each job position were specified. Meanwhile, assessment and learning programs in the form of class training and E-Learning courses were organized for employees, in addition to training programs on some specific knowledge and skills needed for the examination for a salesperson license issued by government agencies. • Staff Retention: Realizing the significance of employee feedback, the Bank arranged for an employee survey. The survey results will be used to improve employee satisfaction and to create engagement with the organization. The needs and potential of staff in each generation have been managed to promote higher efficiency, happiness and a sense of pride in being a part of the KGroup team. KBank also provided welfare benefits as per the Labor Protection Law and the current situation. Our notable efforts included the provision of temporary accommodations, home renovation loans, as well as high-pressure water washers and cleaning tools, for flood-affected employees. Meanwhile, the Bank joined hands with other organizations to support many CSR activities, allowing employees to help and strengthen relationships among those within the Bank and in society


at large. Such activities included those organized by the KASIKORN Foundation, the eyeglasses donation project, environmental projects in coordination with Kuiburi National Park, and projects to provide natural food sources for elephants and artificial coral reefs for fish, with overwhelming participation by our employees. • Efforts to Support Business Expansion in China: The China Business Division and China Strategy Development Unit - Special Project were established to map out business expansion strategies that suit each customer segment, current competition, as well as an operational system and procedures that are in strict compliance with related laws and regulations issued by Thai and Chinese officials. Meanwhile, the organizational structure and positions/functional titles of the China Business and Overseas Office Management Department and Shenzhen Branch were reorganized, in order to enhance the efficiency of strategic formulation and human resource management for business operations in China. The structure of relevant departments has been improved to better facilitate customer base expansion in China and promote income for the Bank, part of which was achieved through closer relationships with Chinese firms investing in Thailand.

IT Management • IT Security Policy and Infrastructure Aside from the development of data security and service systems of relevant units during 2011, the Bank implemented various measures to cope with the impacts of the massive flooding, ensuring uninterrupted business operations

and IT system continuity to support customers’ service use. Our efforts included data center protection and enhancement of the remote working system as per the Bank’s standards on security control, thus enabling employees responsible for some key transactions to continue their operations during adverse circumstances. • IT Outsourcing In 2011, revisions were made to the IT outsourcing contracts, concerning the areas of application maintenance, plus application development and enhancement, to ensure clearer working scopes for better service quality and flexibility, at a more reasonable price. During the flooding situation, the Bank closely coordinated with IT outsourcing vendors to brace for any disruptive event as per our established plans. These plans involved preparation of Critical Skeleton staff to ensure uninterrupted operations of our critical services, as well as businesscontinuity management, in order to meet all customer needs with smooth operations, thus allowing us to effectively deliver high-quality products and excellent service to our customers.

K-Transformation The K-Transformation program has been progressing as per KGroup’s long-term strategy of Customer Centricity, particularly in the areas of business management and other important process development. Meanwhile, the new sales and service system has created faster customer responsiveness and a consistent customer experience across channels.


Throughout 2011, major progress was seen in the Multi-Channels Sales & Service (MSS) project. The new branch infrastructure platform rollout was completed. Having been deployed to all Bangkok branches during 2011, the new sales and service solution will be gradually put in place at all branches nationwideby early 2012. Moreover, the newly finished MSS integrated with Know Our Customer (KOC) capabilities has increased the effectiveness of campaign execution through the branch platform, thus leading to creation and development of new products, cross-selling and up-selling, better campaign response rates, as well as higher product holding and sales amount/transaction volume per customer. Regarding the IT Capital (ITC) program, the new core banking system development has reported ongoing progress. The Bank is now in the process of system testing to ensure quality and higher security of business operations. As per the Bank’s plan, the new core banking system will be launched in 2013, with full functionalities to be completed by 2014. With all of these efforts, the Bank’s business goals will be reached more efficiently and effectively, through our expanded ability to respond to the needs of customers and differentiate our products and services, thus resulting in higher income than that of our rivals.

5. KASIKORNBANK’s Investments in Subsidiary and Associated CompaniesSubsidiary and Associated Companies Definitions of subsidiary and associated companies are in alignment with those specified in accounting standards, wherein the Bank discloses such details in the Notes to the Financial Statements.

Investment Policy The Bank’s investment policy can be summarized as follows: • Strategic Investments The Bank invests in companies for strategic benefit. The Bank and these companies collaborate on the review of business strategies and synergies, through the sharing of various resources, equipment, tools and channels, in order to efficiently meet the needs of customers, with minimal operational redundancies. • Outsourcing Investments The Bank invests in companies that support the Bank’s operations. These are companies providing services that are not the core business of the Bank, and that would face inflexibility if they were to remain a part of the Bank. Bank executives are appointed as directors of these companies to oversee their management and operating policies, with one director having control over the firms’ operations. This helps ensure standardized service quality, as well as maximum efficiency and benefits for the Bank.


1. Overall Risk Management KASIKORNBANK’s risk management has been carried out with an aim of supporting our business growth and sustainable profitability, as well as maximizing shareholders’ and investors’ returns. To ensure risk management effectiveness, the Bank adheres to risk management strategies that are in line with best practices. The Bank has engaged in a consolidated risk management framework which emphasizes not only the management of major risk types, including credit, market, liquidity, operational, strategic and other risk management, but also the accuracy and completeness of risk management and capital adequacy disclosure.

Key Developments to Strengthen Risk Management Having realized the importance of effective and timely risk management in response to a changing business environment, KASIKORNBANK has continuously enhanced policies, tools and processes to manage various types of risk. Notable developments in 2011 can be summarized as follows: • Assessment of possible loss and capital adequacy under stressed situations: This assessment was carried out by integrating various types of risks. The assessment results are used for effective and timely portfolio management and business decisions, while contingency plans have been developed to ensure viable capability in the event of stress. For instance, a liquidity contingency plan was developed for sudden deposit outflow. • Efficiency enhancement for credit processes: Our notable improvements were seen in the credit underwriting process, of which criteria was designated and improved to better suit customers’ risks and returns through statistical testing. An improved credit risk management tool that prioritizes debt-collection to achieve greater efficiency in the debt

* Details of various risk management and other related information, in accordance with Pillar 3 requirements of the Bank of Thailand and disclosure principles, are shown in the “Information Disclosure under the Basel II Pillar 3 Principle” report posted on the Bank’s website.

collection and recovery process is another example of the Bank’s enhanced credit process. • Emphasis on management of liquidity risk at an acceptable level: So doing helped ensure sufficient liquidity under normal and stressed situations. Along with this, the Bank has enhanced the balance of our liquidity management cost, by fostering close communication between liquidity managers and business units, conducting an in-depth analysis of cash flow transactions through the use of models and statistical tools, as well as developing a system for risk monitoring and an effective early warning system. In addition, the Bank has arranged a managerial plan to ensure that our liquidity management suits each problem at different degrees of severity. • Enhancement of market risk management efficiency: In order to achieve a higher level of efficiency, we have undertaken the development of advanced tools and measurements, which consider market behavior during extreme event, to be used as an early warning system. In addition, close attention has been paid to foreign exchange rate movements, due to concerns over the European sovereign debt crisis, which may increase volatility in movements of the U.S. Dollar and other major currencies. • Enhancement of operational risk management structure:To achieve higher efficiency and effectiveness in our operational risk management, the Bank established the Operational Risk Sub-Committee comprising high-ranking executives from various divisions to be responsible for supervising relevant parties. So doing helped ensure that they perform their duties, in accordance with the established operational risk management guidelines under close monitoring. • Enhancement of risk model governance: This endeavor is to ensure risk models’ completeness, transparency, and credibility, while helping to ascertain that the existing risk models or those to be adopted in the future will be accurate and function in accordance with the set objectives. Risk model governance policy and process have been comprehensively established to include risk model development, validation, approval, application and maintenance.

RISK MANAGEMENT AND RISK FACTORS*


KASIKORNBANK Risk Management amid Great Flooding during 2011 The massive flooding in 2011 affected the Bank’s and our customers’ business operations. In order to prepare for and mitigate any adverse impacts, the Bank has continued to implement Business Continuity Management (BCM) to ensure uninterrupted business operation and services provided to customers during the flooding. Moreover, the Business Continuity Plans (BCP) was also continually developed through a working team that was responsible for outlining necessary strategies and operational directions, as well as setting aside appropriate resources and budgets for related units. For customers directly and indirectly affected by flooding situation, the Bank has managed our credit risks, through stress tests and the survey of flooding impacts on each customers, as well as launches of post-flooding assistance measures, particularly in terms of grace period, repayment period extension and interest rate reduction. In addition, the Bank has offered financial support - both commercial and retail loans - to affected customers for their business and asset rehabilitation, while we have continued to monitor and assess risk levels of these participated customers closely, so as to ensure the sound credit quality of our overall portfolio.

2. Risk Management Although credit risk is deemed as the key risk, the Bank’s risk management aims to develop all types ofrisk management, including credit, market, liquidity, operational, strategic, and other risks, as follows:

Credit Risk Management “Credit risk” refers to the risk that a counterparty or borrower may default on contractual obligations or agreements. Such a default may be caused by the counterparty’s inability to pay because of financial difficulties, or intention not to abide by the agreements, resulting in a loss to the Bank. The Bank places emphasis on organizing a proper credit risk management structure, covering policies that are in line with our strategies and acceptable risk appetites, check-and-balance organizational structure, and effective and efficient credit procedures and system, under the supervision of the Risk Management Committee, and the Credit Policy and Risk Management Subcommittee.

Credit Risk Management Process The Bank has established the whole credit risk management process and procedure, from beginning to end. The process and procedure has been developed to appropriately reflect the prevailing risk for enhanced efficiency in customer responsiveness in a prudent manner. Steps under credit risk management process and procedure are as follows:

PortfolioManagement

Underwriting &Approval Monitoring Collection &

Recovery

• To continually monitor and oversee credit quality of customers on a case-by-case basis and at the portfolio level

• To collect and recover debts in a swift and efficient manner to minimize potential losses

• To design portfolio target setting and diversification in various dimensions to meet the Bank’s desired risk appetite and concentration

• To develop credit underwriting process and supporting tools, appropriate for associated risks of each specific customer group


• Portfolio Management Process Focusing on active portfolio management, the Bank has defined loan targets consistent with the Bank’s business goals. To this end, audit and monitoring have been conducted regularly to meet the Bank’s desired risk appetite and concentration. Portfolio quality and return have also been monitored on a regular basis. In addition, the Bank has conducted stress tests for setting appropriate risk management guidelines to cope with expected impacts on the Bank’s portfolio, to ensure sustainable growth of the portfolio. • Credit Underwriting and Approval Process The Bank’s credit management is based on up-to-date transparent and standardized information. The credit underwriting process and system has been designed to fit customers’ unique needs in different segments. For example, for large-scale corporate customers with complex financial needs and medium business clients, relationship managers with a solid understanding of corporate financial needs and risks are assigned to conduct analyses and to propose loan facility structure, credit products and services appropriate for customers, as well as setting prices according to their risk ratings determined by our quantitative and qualitative tools. Relationship managers are also responsible for preparing credit risk reports submitted for approval to underwriters under relevant delegated authorization based on their total credit exposure. These relationship managers are required to monitor the status of their supervised customers on a regular basis. A similar approval process and structure has been employed for institutional clients with transactions in financial markets. In the underwriting and approval processes of retail lending, which includes housing loans, credit card services, plus other personal loans, the Bank utilizes a credit scoring system based on the Bank’s customer credit history. Emphasis has been placed on verification of personal data and assessment of income-liability consistency for each case. A customer credit history-based model has also been utilized for effective customer risk assessment which results in concise and swift

underwriting and approval processes, thus meeting customer needs and achieving their satisfaction. The Bank continuously places emphasis on efficiency enhancement of credit underwriting process with our strict adherence to risk control within the specified risk appetite. • Post-Credit Approval Operations In achieving standardized and efficient credit operations, the Bank has centralized all necessary functions for post-credit approval operations, including contract documents, legal contract-related operations, collateral agreement preparation, credit-line establishment, credit-related document storage, and credit data support. Meanwhile, the credit quality monitoring process has been upgraded, focusing on customer credit use behavior, their business performance, compliance with credit contracts, as well as monitoring of debt servicing ability. • Debt Quality Monitoring Process The debt collection process for large business customers will begin immediately after the detection of any negative signals in their respective businesses, which may affect their debt servicing ability or lead to defaults on debt payments. The Bank’s Corporate Portfolio Monitoring Unit (CPMU) has been assigned to assess debt quality to ensure close and regular portfolio monitoring. For medium business and retail customers, collection scoring has been adopted to achieve the fastest and most efficient debt monitoring process. Debt quality monitoring of all customer segments has been regularly conducted before being reported to the Management on a monthly basis. • Debt Recovery Process The debt recovery process will start as soon as defaults on debt payments, both of corporate and individual accounts, have occurred. Relevant guidelines, methods or tools adopted - aimed at helping customers to resume their debt servicing ability in order to minimize the impact on the Bank’s lending portfolio, while also maximizing benefits for both the borrowers and the Bank - must be in compliance with the Bank of Thailand’s regulations. Upon the completion of debt restructuring, debt quality monitoring will be regularly conducted for further reporting to the Management every month.


• Asset Quality Review The Bank considers the review and evaluation of asset quality a necessary process for improvement in credit management standards to achieve the business goals of the KASIKORNBANK FINANCIAL CONGLOMERATE. This is the responsibility of the Risk Asset Review Department, having been assigned to review the quality of the Bank’s credit policy and processes, from credit write-up, to underwriting, contract preparation, and monitoring of credit quality, which will then be contributed as information for credit risk management.

Credit Risk Position • Outstanding loans As of December 31, 2011, the Bank’s consolidated outstanding loans stood at Baht 1,210,834 million,

increasing by Baht 133,853 million, or 12.43 percent, compared to Baht 1,076,981 million at the end of 2010. As of December 31, 2011, 56.91 percent of the Bank’s outstanding loans to customers were loans exceeding Baht 20 million. Credit extended to the 20 largest borrowers, excluding Phethai Asset Management Company Limited and the K Companies, accounted for Baht 57,901 million, or 4.82 percent of the Bank’s total loan portfolio, which is a small ratio. Classified by customers and terms, juristic persons accounted for Baht 706,098 million, or 58.78 percent, of outstanding loans; while sole proprietorship and individual customer credit accounted for the remaining 41.22 percent. In terms of maturity, credit with maturities of less than or equal to 1 year accounted for 48.35 percent of the Bank’s total loans.

The Bank’s Consolidated Lending Portfolio - Profile

43.09%

43.03%

58.78%

48.35%

59.11%

50.54%

Business entities

Less than Baht 20 million

Less than or equal to 1 year

56.91%

56.97%

41.22%

51.65%

40.89%

49.46%

Individual

Over Baht 20 million

Over 1 year

As of Dec. 31, 2011

As of Dec. 31, 2010

As of Dec. 31, 2011

As of Dec. 31, 2010

As of Dec. 31, 2011

As of Dec. 31, 2010

Credit Amount

Type of Customer

Credit Maturity

0% 20% 40% 60% 80% 100%


As of Dec. 31, 2011

Agricultural & MiningUtilities & Services

Manufacturing & CommerceHousing Loans

Real Estate & ConstructionOthers

The Bank’s Consolidated Lending Portfolio

As of Dec. 31, 2011 As of Dec. 31, 2010

54.26%

2.51%11.42%

15.48%

10.69%

5.65%

2.46%11.63%

16.03%

6.21%

51.23%

12.44%

Consolidated Loans Classified by Type of Business

and Loan Classification

Percent of Consolidated Loans Classified by Type of Business

and Loan Classification

Manufacturing & Commerce

Agricultural & Mining

Utilities & Services

OthersHousing Loans

Real Estate & Construction

Real Estate & Construction

Manufacturing & Commerce

Housing Loans Others Agricultural & Mining

Utilities & Services

Unit: Million Baht

11.63%

6 21%%

4%

11.42%

9%

5 65%%

OthOthersersHouHousinsinggMananufaufactucturinringg

Sub-StandardSpecial MentionDoubtful and Loss

NormalDoubtful

700,000

600,000

500,000

400,000

300,000

200,000

100,000

0

100%

80%

60%

40%

20%

0ReaReal El EstastateteManManufaufactucturinringg HouHousinsing Lg Loanoans OthOthersersAgAgricricultulturaurall UtiUtilitlitiesies


Of the Bank’s consolidated lending portfolio, 95.80 percent was classified as ‘Normal’ loans. Classified by type of business, Manufacturing & Commerce accounted for 51.23 percent of total consolidated lending, which was the highest ratio. Of this figure, 92.25 percent was classified as ‘Normal’ loans.

• Non-Performing Loans and Debt Restructuring Non-Performing Loans

As of December 31, 2011, the Bank’s consolidated NPLs stood at Baht 31,736 million, equal to 2.45 percent of total outstanding credit, including that of financial institutions. For Bank-only NPLs, the amount totaled Baht 29,868 million, accounting for 2.31 percent of total outstanding credit, including that of financial institutions, which decreased from the end of 2010. These NPL figures are shown in the table below:

The Bank’s consolidated NPLs 31,736 33,175 Percent of total outstanding credit, including that of financial institutions 2.45 2.91 The Bank-only NPLs 29,868 31,053 Percent of total outstanding credit, including that of financial institutions 2.31 2.73

Dec. 31, 2010Dec. 31, 2011Year Ending

Non-Performing Loans (Units: Million Baht)

Net Non-Performing Loans

As of December 31, 2011, the Bank’s consolidated net NPLs stood at Baht 14,698 million, equal to 1.15 percent of total outstanding credit, including that of financial institutions.

For the Bank-only net NPLs, the amount totaled Baht 13,675 million, accounting for 1.07 percent of total outstanding credit, including that of financial institutions, which decreased from the end of 2010. The net NPL figures are shown in the table below:

The Bank’s consolidated net NPLs 14,698 16,022Percent of total outstanding credit, including that of financial institutions 1.15 1.43The Bank-only net NPLs 13,675 14,806 Percent of total outstanding credit, including that of financial institutions 1.07 1.32

Dec. 31, 2010Dec. 31, 2011Year Ending

Net Non-Performing Loans(Units: Million Baht)

Debt Restructuring

In 2011, the Bank’s consolidated pre-written off, restructured debts totaled Baht 49,151 million, increasing by Baht 2,162 million when compared to 2010. Losses from debt

restructuring stood at Baht 3,574 million, or 7.27 percent of total restructured debts, which was equivalent to an increase of Baht 984 million compared to Baht 2,590 million in 2010, or 2.09 percent of total restructured debts.


Non-Performing Loans of Asset Management Company,

and Foreclosed Properties

Non-Performing Loans of Phethai Asset Management Company Limited • Phethai Asset Management Company Limited As of December 31, 2011, Phethai AMC had

resolved and/or restructured NPLs amounting to Baht 72,968 million, or 98.59 percent of the total initial unpaid principal balance, with an expected recovery rate of 48.00 percent. The details of NPL resolution and/or restructuring over the past four quarters are shown in the table below:

Loans Resolved/Restructured at Phethai Asset Management Company Limited(Units: Million Baht)

• Thai Asset Management Corporation The Bank has transferred the sub-quality debts of borrowers, who all had characteristics matching those in the Emergency Decree on the Thai Asset Management Corporation (B.E. 2544) and the Asset Transfer Agreement, to Thai Asset Management Corporation (TAMC). In exchange for the transferred assets, TAMC issued the Bank a ten-year, non-transferable, callable note, guaranteed by the Financial Institutions Development Fund (FIDF). The notes’ yields include an annual coupon, reset quarterly, at the weighted average of deposit rates of five major Thai commercial banks, paid for by a one-year, extendable, non-transferable, FIDF-guaranteed note. Despite the asset transfer to TAMC, the Bank remains exposed to a proportion of risk in our share of TAMC’s potential losses. According to the Emergency Decree on the Thai Asset Management Corporation (B.E. 2544) and the Asset Transfer Agreement, at the end of the fifth and tenth years dating from July 1, 2001, TAMC and the Bank would share gains and losses arising from the resolution of the Bank’s transferred assets.

Apparently, June 30, 2011, was marked as the tenth-year completion. A gross book value of the total transferred assets, calculated until the end of December 2011, equaled Baht 14,882 million. These transferred assets were priced at Baht 9,747 million, and the Bank has already received the same amount of notes paid by FIDF. At present, liquidation processes has been undertaken by the Liquidation Committee, which must be completed within the twelfth year since the effective date of the Emergency Decree on the Thai Asset Management Corporation (B.E. 2544). As of December 31, 2011, according to primary information as suggested by TAMC, the Bank had approximately Baht 107 million in gains arising from these sub-quality debt account management at the end of the tenth year. However, final revision of this figure shall be made by TAMC, after the remaining assets are completely managed.

Foreclosed Properties As of December 31, 2011, the Bank’s consolidated foreclosed properties had a book value of Baht 15,103 million, accounting for 0.88 percent of total assets.

Phethai Asset Management Company Limited Cumulative loans resolved/restructured 72,968 72,931 72,807 72,790 72,750 Percent of the total initial unpaid principal balance 98.59 98.54 98.37 98.35 98.29

Dec. 31, 2011Year Ending Sep. 30, 2011 Jun. 30, 2011 Mar. 31, 2011 Dec. 31, 2010


As of December 31, 2011, consolidated allowances for impairment of foreclosed properties stood at Baht 1,679 million, equivalent to 11.12 percent of the cost value of those foreclosed properties, which is believed to be sufficient to cover holding, maintenance and disposal expenses, as well as losses on the liquidation of foreclosed properties.

Allowance for Doubtful Accounts and Allowance forImpairment of Assets As of December 31, 2011, the Bank’s consolidated allowance for doubtful accounts and revaluation allowance for debt restructuring totaled Baht 40,343 million. This amount was equivalent to 149.92 percent of the level required by the Bank of Thailand.

Market Risk Management “Market risk” is risk incurred from changes in interest rates, exchange rates, securities prices, commodity prices, and credit derivatives. These changes affect the Bank’s present and future income or financial assets and liabilities values. KASIKORNBANK has consistently developed fundamental and necessary processes with an aim of proper and timely management of market risks from transactions related to derivative products and new financial instruments. The Bank has set product management processes for both existing and new financial products, covering the objectives and procedures in transaction executions, as well as related market risk factors. Analyses and impact assessment of potential risks have been conducted, while risk evaluation and controls have also been put in place. In 2011, the financial market encountered high volatility amid numerous risk factors both domestically and abroad, resulting in the Baht’s movements being dictated by the sovereign debt crisis in Europe and economic and political problems in the U.S., leading to its credit rating downgrade. In addition, Thailand’s worst-ever flooding in the second half of 2011 was responsible for a slowdown in the domestic economy, prompting the BOT to cut their policy rates.

These factors significantly affected movements and directions of money and capital markets. The Bank has continued to develop market risk management tools for enhanced efficiency of our risk assessments and analyses in a more complete array of perspectives, in order to cope with market volatility. In 2011, the Bank utilized the Value-at-Risk tool to measure and monitor market risk for loan syndication. Amid high volatility in the money and capital markets that may significantly affect business operations of counterparties, especially financial institutions in Europe, the Bank decided to place greater importance on monitoring the risk position of those financial institutions closely. The Bank also established a new decision-making and management process to cope with any negative signals about the financial position of those counterparties to ensure the effectiveness and timely implementation of our risk management. The Bank has realized the importance of performance measurement and compensation schemes of business units. We have, thus, set a policy for fair-value appraisal of financial instruments and derivative contracts for trading-book activities. The policy has been implemented as a key mechanism to maintain the balance of risk management, performance measurement, and compensation schemes for business units involved with trading book activities. With the new policy, the fair-value assessment of financial instruments and derivative products has been conducted completely, precisely, and trustworthily. This includes gradual revenue recognition for illiquid products, and valuation adjustment of financial instruments and derivative products based on various types of risk (such as counterparty risk and risk from large position holding). The Bank adopted the fair value option in structured notes valuation. So doing has not only allowed booking of structured notes to better reflect their current prices, but has also fortified the Bank’s statement of income against volatility, with improved appropriateness of the Bank’s value.


Developmentsofnoteformarketriskmanagementduring2011,aswellasrelatedinformationcategorizedbytradingandbankingbookactivities,areshownasfollows: • MarketRiskinTradingBookActivities KASIKORNBANKiscurrentlyexposedtothreemaintypesofriskintradingbookactivities,includinginterestraterisk,foreignexchangerisk,andequityrisk.AstheBankhaschosennottoretainanypositiondealingwithcommoditypricesandcreditderivatives,theyhavebeenmanagedunderaback-to-backpolicy.Inaddition,theBankexposes

ourselvestoequityrisksonlyinordertoservetheequityunderwritingbusiness.TheBankmeasures,controls,andmaintainsrelatedmarketrisksatacceptablelevels,underthesupervisionandcontroloftheEnterpriseRiskManagementDivision,aswellastheRiskManagementCommittee. In2011,theVaRforone-dayholdingperiod,99-percentconfidenceleveloftradingbook,wasBaht50.84milliononaverage,meaningthatthedailypotentiallossoftradingbusinessislessthanBaht50.84millionon99daysoutof100businessdays.

• MarketRiskinBankingBookActivities KASIKORNBANKisexposedtorisksfrominterestratesandcapitalmarketsecuritiesoftransactionsinbankingbookactivities,asfollows: Interest Rate Risk in Banking Book Activities

In2011,domesticandinternationalfactors,particularlytheEuropeanpublicdebtcrisisandeconomicimpactsofthefloodingsituationathome,hadasignificantimpactondomesticinterestratemovements.However,theeffectontheBank’sinterestrateriskprofilewasminimal,astheBankhasadjustedourStatementofFinancialPositionstructureto

beconsistentwithinterestraterisk,andalsowithinaspecifiedriskappetite,asapreemptivemeasureagainstpotentiallossfromsignificantchangesininterestrates.Amidapossibledownwardinterestratetrendtoassisteconomicgrowthandpost-floodrecoveryin2012,theBankwillre-adjustourStatementofFinancialPositionstructuretobetteraccommodatefutureinterestratetrends,withconsiderationplacedonapossiblechangeinnetincomeandunderlyingeconomicvalue,underaspecifiedriskappetite. Inaddition,theBankhascloselymonitoredinterestratemovementsandbehaviorofourcustomers,ensuring

P&LDistribution-TradingPortfolioBacktestingResult-TradingPortfolioFrequency

Loss Profit


maximum accuracy of information used as input for modeling of our interest rate risk management. The Bank has monitored interest rate risk in banking book activities regularly (on a monthly basis), including raising the frequency of risk position monitoring if there is any significant change in the structure of assets and liabilities.

In addition, the Bank has prepared a report on interest rate risk gap to monitor interest rate risk and assess net interest income sensitivity over the next 12 months, based on an assumption of a 1.00-percent change in interest rate of all types of assets and liabilities at their different re-pricing periods. The results of interest rate risk assessment are as follows:

THB (372) Foreign Currencies 277 Total Effect of Interest Rate Change (95)

+100 bps

The Effect of Changing Interest Rate on Net Interest Income (Units: Million Baht)

For the Period EndingDec. 31, 2011

Equity Risk in the Banking Book

The Bank currently has no policy of extending our equity investments, and continues to reduce the size of these investments that are not directly related to our core businesses. In this endeavor, data analysis and assessment of the prevailing situation have been conducted to ensure maximum benefit to the Bank.

Liquidity Risk Management “Liquidity risk” is defined as the risk caused by the Bank’s inability to meet obligations when they come due - because of an inability to convert assets into cash, or to obtain sufficient funds to meet cash needs at appropriate costs within a limited time period - which may then result in a loss to the Bank. The main objective of liquidity risk management is to ensure that our liquidity level sufficiently facilitates business undertakings under appropriate operating costs. The Bank has established a liquidity risk management

system that is efficient, flexible and adaptable to the current market conditions, with a proactive and proper asset and liability structure, as well as liquidity risk control consistent with the Bank’s risk appetite and appropriate operating costs. In the first half of 2011, manufacturing activities at home showed a gradual recovery, following subsiding impacts of the devastating earthquake and tsunami in Japan, whereas the Thai export sector and domestic spending continued to maintain growth momentum, thus supporting the BOT’s policy rate hikes to keep price stability in checkand curb inflationary pressure. Nevertheless, global economic uncertainty - caused by the European public debt crisis and the U.S. - has resulted in increased volatility in the money and capital markets. In the latter half of 2011, volatile money and capital markets remained prevalent globally, following the lingering global economic risks, as well as cooling economic momentum at home that was dampened significantly


by the massive flooding in Thailand during the final quarter of 2011. This flooding not only largely impacted the manufacturing sector, but also impeded the country’s exports, which consequently led the BOT to cut their policy rate. As downside risks to growth seem to outweigh inflationary risks, it is believed that a policy rate hike is unlikely to occur, at least in the near term. The aforementioned situation indirectly heightened consequential risk in line with growing operational risk. However, the Bank adopted a Business Continuity Plan (BCP) to alleviate the corresponding effects, or other factors that could disrupt the Bank’s key operations and systems, thus allowing the Bank to fulfill its obligations. The BCP contains key operational procedures, including a contingency plan to cope with a liquidity crisis caused by substantial deposit outflows (bank run) and other factors. Under the BCP, the Bank arranged facilities, necessary documents, technologies, personnel, communication channels/processes and services needed for operations to ensure the continuity of our liquidity management system should any unexpected and severe incident occurs. The Bank has strictly followed the BCP procedures during the period of heightened risk. The Bank has assessed and analyzed liquidity risk continuously to ensure adequate liquidity for business operations during normal and crisis situations. In 2011, the Bank conducted additional stress tests for the events of both market-wide liquidity crisis and combination liquidity crisis, aside from our regular stress tests for a Bank-specific liquidity crisis. In addition, in light of the phasing out of deposit protection during 2011 - 2012 that may have a wider impact on liquidity in the commercial banking system, the Bank has made analyses and assessments of possible impacts in various scenarios, ranging from base to worst cases, wherein the obtained results have been used for mapping out necessary operational plans and strategies.

In addition, the Bank has continued to focus on reviewing and further refining our liquidity risk management procedures, so as to be in alignment with world-class standard practices, as well as our business growth directions. In 2011, the Bank developed a new tool to measure and monitor foreign-currency liquidity risk, aside from our existing tool to measure and monitor overall liquidity risk. In terms of liquidity risk management, the Bank has regularly reviewed and improved our management process in line with changing economic conditions and our business performance. We have also reviewed the structure of our funding sources to suit the changing market conditions and liquidity directions in the commercial banking system, so as to brace for global economic conditions and rapid change in asset prices. In addition, the Bank has continued to monitor, analyze and manage foreign-currency liquidity risk, along with procuring short- and medium-term funds regularly, to ensure that our liquidity is adequate for both current and future requirements. We have considered strategies to maintain a proper minimum level of foreign-currency liquid assets. One of those strategies is to bolster the volume of foreign-currency liquidity via deposits, which are considered a high quality liquidity source, to brace for heightened liquidity risk stemming from volatility in the global economy. The Bank has closely monitored major factors that may impact liquidity and interest rate risks in the future, as follows: • The global and Thai economies in the short- and long-term periods. • Timeframe and directions of the BOT’s policy rate adjustments. • Direct and indirect foreign capital inflows, influenced by the overall confidence towards domestic consumption and investment.


• Intensified competition in savings and investment products of financial institutions, which could impact the liquidity of the Thai commercial banking system. • Potentially rising trend of credit demand, in accordance with the Thai economic recovery, which may put additional pressure on the liquidity of the Thai commercial banking system.

Operational Risk Management “Operational risk” refers to the risk of direct or indirect losses in bank earnings and capital funds, resulting from failure or inadequate processes, personnel, operating and IT systems, or external events. Having realized the importance of operational risk management, the Bank has always placed a great emphasis on effective operational risk management, and has continually improved our risk management framework. The objective of this framework is to implement systematic operational risk management practices with a single standard across the entire KASIKORNBANK FINANCIAL CONGLOMERATE, with proper risk assessment and prevention. The Bank’s operational risk management has been implemented, through systematic and effective risk identification, assessment, management, and monitoring processes. All units of the Bank are required to continuously report their operational risk exposures, designed controls, and risk prevention initiatives. Meanwhile, many modern risk management tools - such as key risk indicators, risk event database and other IT systems - have been employed, in order to enhance the effectiveness for risk monitoring and prevention, as well as managing risks in a timely manner before damage occurs to the Bank and customers. Meanwhile, the Bank has strengthened cooperation between the operational risk management team and Internal Audit Department, in order to increase the efficiency and effectiveness of risk management and internal control process for relevant units through sharing important information and arranging workshops between those relevant

parties. This project has contributed to enhanced efficiency of risk management and internal audit procedures, while being accountable as a key component in risk management evaluation procedures - which not only leads to continuous improvements in operational risk management, but also enables the Bank to cope with rapid changes more effectively, under the foundation of our desired corporate culture. The Bank has continued to put an emphasis on enhanced efficiency and operating cost reduction. To this end, guidelines for operational risk management have been applied with the Lean and Six Sigma concepts to create balance between the control of risks within the acceptable risk appetite, rising costs and effectiveness of operational procedures. These efforts help ensure that work procedures have been continually developed in alignment with enhanced business competitiveness and effective operational risk management. Business and support units within various business divisions of the Bank have jointly implemented this project. In 2011, the Bank focused on enhancement of directions and organizational structure for operational risk management. An Operational Risk Sub-Committee was set up to supervise the operational risk management of the KASIKORNBANK FINANCIAL CONGLOMERATE to ensure that it is in alignment with the established framework, and to monitor closely the progress of key risk management. Additionally, the Sub-Committee manages and controls key operational risks of the Bank through the Corporate Level Initiative project, emphasizing on major operational risk factors, such as business continuity management (BCM). This BCM includes management of risk from IT system interruption, preparation for external events, e.g., natural disasters, and management of risk from fraud that is a key risk within key products of financial institutions, such as credit cards, ATM cards, cheques and internet services. Factors to be considered consist of appropriate management structure, adequate resources and processes, and suitable management tools, for the purpose of attaining customer satisfaction towards the Bank’s products and services.


The Bank also enhanced operational risk tracking process via the use of the Operational Risk Management Dashboard, which indicates an effectiveness of operational risk management of each product, as concerns effectiveness of risk identification and self-assessment, implementation of the established risk prevention initiatives, and risk level monitoring via risk indicators and operational loss events. Such a report has been aimed at presenting to senior executives the overview and directions of risk management as crucial information for efficient decision-making and maintaining compliance with the Bank of Thailand’s regulations, as well as other relevant laws and international standards.

Strategic Risk Management “Strategic risk” is incurred from formulation of strategies and business plans, as well as inappropriate implementation of such strategies and work plans, or actions inconsistent with internal factors and external environments, which will affect earnings, capital funds, or sustainable business undertakings of the KASIKORNBANK FINANCIAL CONGLOMERATE. Strategic risk management of KGroup is under the supervision of the Board of Directors and Management Committee. Meanwhile, the Corporate Strategy Department is responsible for strategic plan formulation and revision, as well as monitoring of KGroup’s performance. Also, the department has to present KGroup strategic directions to the Management Committee, consisting of executives of related divisions who will oversee and determine appropriateness and feasibility of each strategic issue. Finally, the approved strategic plan and budget arranged by the Financial Planning Department will be presented to the Board of Directors for approval. Throughout 2011, KGroup has tracked and evaluated actual performance as compared with business and budget plans by means of monthly segment monitoring meetings, Balanced Scorecard and multi-level performance assessments. Evaluation results were analyzed vis-a-vis the business goals, in order to identify relevant causes and, thus, seek possible resolutions, prior to close monitoring of corrective actions.

3. Capital Management As equity capital is of significant value to business operation of financial institutions, effective capital management must therefore be ascribed the highest priority to achieve financial strength and sustainable credibility. Placing great emphasis on capital management, the Bank’s capital management framework is consistent with international practices, as well as being in accordance with Basel II requirements which have been implemented since December 31, 2008. Three applicable pillars under Basel II comprise minimum capital requirements (Pillar 1), supervisory review (Pillar 2) and market discipline (Pillar 3). The Risk Management Committee supervises overall risk management to ensure that the Bank’s risk level is maintained within the acceptable risk appetite. Additionally, in 2011, the Bank established the Capital Management Sub-Committee to oversee capital adequacy, as well as the Bank’s capital planning. Following the announcement made by the Basel Committee on Banking Supervision (BCBS) on the Basel III framework, which will be implemented in Thailand in the near future, the Bank’s taskforce for Basel preparation has prepared for our compliance through discussion with the BOT. Additionally, future capital adequacy under the Basel III framework has been assessed to ensure that there is no impact on the Bank’s capital and business undertakings once the BOT revises the capital requirement criteria. The taskforce for Basel preparation has regularly monitored and reported progress on Basel III implementation, both domestically and internationally, to senior executives for timely planning and management.

Capital Management As of December 31, 2011, total capital amounted to Baht 175,246 million, consisting of Tier-1 capital of Baht 122,228 million, and Tier-2 capital of Baht 53,018 million.


The difference between the Bank’s minimum capital requirement under the Basel II Accord, totaling Baht 107,889 million, and the current available capital of Baht 175,246 million, indicates Baht 67,357 million of capital above

the minimum requirement. This level of capital beyond regulatory requirements is adequate for future business growth, under both normal and stressed conditions, and reflects our capability to maximize returns to shareholders.

Tier-1 Capital Baht 122,228 million

Capital StructureAs of Dec. 31, 2011

Baht 175,246million

Basel II Minimum Capital RequirementAs of Dec. 31, 2011

Baht 107,889million

Market RiskBaht 2,060 million (1.91%)

Operational RiskBaht 8,938 million (8.28%)

The minimum capital required for all risk types under Basel II amounted to Baht 107,889 million, equivalent to the risk-weighted assets value of

Baht 1,269,282 million. Credit risk constitutes the principal risk of the Bank, or 89.81 percent of total minimum capital requirement.

Tier-2 Capital Baht 53,018 million

Credit RiskBaht 96,891 million (89.81%)


At 13.81 percent Capital Adequacy Ratio (CAR) and 9.63 percent Tier-1 Capital Ratio, exceeding the Bank of Thailand’s minimum requirement of 8.50 percent, the Bank’s capital is considered to be within the Bank’s effective capital management framework. Should the net profits for the second period of the year be counted as capital, wherein the Bank of Thailand allows such inclusion after the approval of the Bank’s General Meeting of Shareholders, the Bank’s capital adequacy ratio would be 14.73 percent, with the Tier-1 capital ratio reaching 10.56 percent.

Performance Measurement using Risk-Adjusted Return on Capital (RAROC) and Economic Profit (EP) In 2011, KASIKORNBANK FINANCIAL CONGLOMERATE has continued to implement the Value-Based Management (VBM) framework, which is a management practice aiming for the highest value creation for our shareholders, in accordance with our business strategies and goals. In achieving this endeavor, the Risk-Adjusted Return on

Capital (RAROC) and Economic Profit (EP) - showing net profit after adjusting for both the risk charge and the cost of capital - have been adopted as key measurements. Moreover, we have developed guidelines of performance measurements, consistent with various management aspects, including business targeting, and strategic and business planning that takes into consideration complete risk-adjusted returns, risk-based pricing and efficient resource management. In addition, the Bank has measured our business performance and analyzed value-based profits, based on the “Customer-Centricity” concept, in order to strengthen our competitive advantage in the dimensions of customer segments, product domains, as well as linkage between customer segments and product domains. Meanwhile, related business units have adopted the value-based analyses for their business viability assessment of investment projects, allowing them to effectively adjust their business strategies in alignment with the fast-changing market environment.

Capital AdequacyAs of Dec. 31, 2011

Units: Billion Baht

Minimum Capital Requirement

Total Capital Base

Credit Risk Operational RiskMarket Risk

Minimum BOT

Capital above

108

175

0 20 40 60 80 100 120 140 160 180 200

11

FINANCIAL REPORTS 071 Report of the Board of Directors’ Responsibilities for Financial Reports

072 Report of the Audit Committee

074 Audit Report of Certifi ed Public Accountant

076 Financial Statements

084 Notes to Financial Statements

The Board of Directors of KASIKORNBANK PCL places significance on roles and responsibilities in supervising corporate governance activities in compliance with the Statement of Corporate Governance Principles. The Board is held accountable for the Consolidated and Bank-only Financial Statements, including financial data as shown in the Annual Report. The financial statements for the accounting year ended December 31, 2011 has been prepared in accordance with the accounting standards and the generally accepted accounting principles in Thailand. The Bank has chosen proper accounting policies and strictly adhered to them on the consistency basis. The financial statements have also been prepared with careful consideration to detail, using best estimations only where necessary. All material information has been sufficiently disclosed in the Notes to Financial Statements, and thus reflecting the actual financial position, operating results of the Bank and subsidiaries over the past year, which is transparent and useful to all shareholders and investors. The financial statements have been audited by qualified, independent authorized auditors whose unqualified opinions are stated therein.

The Board has also adopted and maintained an appropriate and effective risk management, internal control and compliance, so that the Bank can be reasonably assured that the financial

records are accurate, complete and adequate to protect the Bank’s assets. These controls also serve as preventive measures against any significant operational risk of the Bank. The Board of Directors has appointed an Audit Committee entirely comprising independent directors responsible for the quality of Bank’s financial reporting, the internal control systems as well as complete and appropriate disclosure of connected transactions and other processes. The opinion of the Audit Committee with regard to these matters appears in the Report of the Audit Committee in this Annual Report.

The Board is of the view that the Bank has maintained an effective internal control system at an adequate and appropriate level of protection, which can assure the credibility of Consolidated and Bank-only Financial Statements as of December 31, 2011.

REPORT OF THE BOARD OF DIRECTORS’ RESPONSIBILITIES FOR FINANCIAL REPORTS

(Mr. Banthoon Lamsam)Chief Executive Officer

& President

(Mr. Banyong Lamsam)Chairman

071Annual Report 2011Financial Report

072 Annual Report 2011Financial Report

On September 29, 2011, the Board of Directors resolved to appoint Audit Committee Chairperson and a new member of the Audit Committee due to the passing of M.R. Sarisdiguna Kitiyakara, an independent director and the Chairman of the Audit Committee. As a result, the Audit Committee of KASIKORNBANK comprises of Professor Khunying Suchada Kiranandana as Chairperson, Mr. Somchai Bulsook, Professor Dr. Yongyuth Yuthavong and Ms. Elizabeth Sam as members. All four are independent directors. During 2011, twelve meetings were held and proceedings from all meetings were reported to the Board of Directors. The Audit Committee performed activities according to its duties and responsibilities, which can be summarized as follows: • On a quarterly basis, reviewed the accuracy and reliability of the Bank’s and the Bank’s consolidated financial statements in relation to the accounting information given and in terms of the compliance with accounting standards, regulatory requirements and internal controls in the preparation of the said statements. In addition, the Audit Committee held regular meetings with the external auditors, without the presence of KBank’s responsible management, to discuss any points of concern arising from their reviews or audits. No notification of fraud or violation of law was reported to the Audit Committee during the reviews or audits by the external auditors. • Reviews of the risk management practice were performed with the Enterprise Risk Management Division executives on a quarterly basis, covering all aspects of known risks, in particular credit, market and liquidity risks. Due attention was paid to risk factors arising from changes

in the operating environment, globally and domestically; and how the Bank manages these risk to prevent significant impact on the operations of KASIKORNBANKGROUP. • Reviews of the effectiveness and adequacy of the internal controls were conducted by considering audit results and significant audit findings presented by internal auditors and regularly followed up on results of corrective actions taken. The Audit Committee also acknowledged material operational loss events, their causes and preventive guidelines against future recurrence. For internal audit activities, the Audit Committee approved annual audit plan which are performed on risk based approach. The Audit Committee places significance on independence and staff sufficiency of internal auditors. Key deliverables from internal auditors were tracked and monitored against the audit plan with additional recommendations from the Audit Committee made when necessary to ensure compliance with the required standards and to enhance greater efficiency. • Considerations of the results of compliance supervision and reviews undertaken by the Compliance Department, according to the annual compliance program approved by the Audit Committee, to ascertain that KASIKORNBANKGROUP’s operations were in compliance with relevant laws and regulations such as Financial Institutions Business Law, Securities and Exchange Law, Anti-Money Laundering Law, as well as regulations of the Bank of Thailand and Stock Exchange of Thailand, etc. In addition, the Audit Committee acknowledged reports on regulatory changes and emphasized actions be promptly and appropriately taken, where required.

REPORT OF THE AUDIT COMMITTEE


• Overseeing loan reviews performed by the Risk Asset Review Department to ensure efficiency and compliance with Bank of Thailand requirements. The Audit Committee considered the annual review plan prior to the Board of Directors approval. Loan quality from the review results and findings accompanied with corresponding actions to ensure effectiveness of the bank credit processes were discussed during meeting with executives of Risk Asset Review Department. • Acknowledged complaints toward staffs, operating procedures and/or practices that were deemed to involve impropriety or unfairness and reviewed the handling of complaints to ensure fairness and transparency. • For the matter of potential conflict of interest transactions, the Audit Committee placed importance on following the Bank’s approval procedures that are in compliance with regulatory requirements and Good Corporate Governance principles. However, the Bank had no such transactions during the past year that would have been subject to the Audit Committee’s consideration. • Evaluated the performance of KPMG Phoomchai Audit Ltd. over the past year and considered their service and independence to be of value suited to the Bank’s current operations. For the appointment of the Bank external auditors for the year 2012, the Audit Committee took into account the knowledge, capabilities, experience, resources and independence of the auditors in accordance with Securities and Exchange Commission criteria, thereby recommending the reappointment of KPMG Phoomchai Audit Ltd. as the external

auditors, along with their proposed annual audit fees for 2012, to the Board of Directors for consideration and concurrence for submission to the Annual General Meeting of Shareholders for approval.

In performing duties according to roles and responsibilities specified in the Charter, the Audit Committee performed their duties carefully, independently and transparently for the benefit of KASIKORNBANKGROUP. The Audit Committee is of confidence that the financial statements of the Bank and the consolidated financial statements of the Bank and its subsidiaries are accurate, reliable and in compliance with the generally accepted accounting standards and financial reporting standards and that KASIKORNBANKGROUP has operated under an environment of appropriate risk management, effective and adequate internal controls, and compliance with relevant laws and regulatory requirements.

(Professor Khunying Suchada Kiranandana)Chairperson, Audit Committee


To the Shareholders of KASIKORNBANK PUBLIC COMPANY LIMITED

I have audited the accompanying consolidated and the Bank-only statements of financial position as at 31 December 2011 and 2010, and the related statements of comprehensive income, changes in equity and cash flows for the years then ended of KASIKORNBANK PUBLIC COMPANY LIMITED and its subsidiaries, and of KASIKORNBANK PUBLIC COMPANY LIMITED, respectively. The Bank’s management is responsible for the correctness and completeness of information presented in these financial statements. My responsibility is to express an opinion on these financial statements based on my audits.

I conducted my audits 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 audits provide a reasonable basis for my opinion.

In my opinion, the consolidated and the Bank-only financial statements referred to above present fairly, in all material respects, the financial position as at 31 December 2011 and 2010 and the results of operations and cash flows for the years then ended of KASIKORNBANK

PUBLIC COMPANY LIMITED and its subsidiaries, and of KASIKORNBANK PUBLIC COMPANY LIMITED, respectively, in accordance with Financial Reporting Standards.

As explained in Notes 2, 4 and 46 to the financial statements, with effect from 1 January 2011, the Bank and its subsidiaries have adopted certain new and revised financial reporting standards and relevant Bank of Thailand notifications with regard to the presentation of the financial statements. The consolidated and the Bank-only financial statements for the year ended 31 December 2010, which are included in the accompanying financial statements for comparative purposes, have been restated accordingly.

(Ms. Somboon Supasiripinyo)Certified Public Accountant

Registration No. 3731

KPMG Phoomchai Audit Ltd.Bangkok16 February 2012

AUDIT REPORT OF CERTIFIED PUBLIC ACCOUNTANT


ASSETS

Cash 53,210,590 32,457,482 53,209,128 32,456,187

Interbank and money market items - net 8 111,968,713 97,560,143 110,205,130 96,768,486

Derivative assets 9 26,726,209 29,060,408 26,730,310 29,060,408

Investments - net 10 264,143,123 251,079,721 159,907,169 168,114,988

Investments in subsidiaries and associates - net 11 151,643 137,595 14,126,630 15,582,889

Loans to customers and accrued interest receivables - net 12, 13

Loans to customers 1,217,397,103 1,082,580,962 1,201,714,013 1,067,998,583

Accrued interest receivables 2,104,977 1,416,482 1,896,336 1,224,484

Total Loans to customers and accrued interest receivables 1,219,502,080 1,083,997,444 1,203,610,349 1,069,223,067

Less Deferred revenue (6,562,721) (5,599,718) (394,553) (290,630)

Less Allowance for doubtful accounts 14 (35,202,069) (32,444,855) (34,159,891) (31,199,086)

Less Revaluation allowance for debt restructuring 15 (5,140,975) (4,386,765) (5,140,472) (4,386,660)

Total Loans to customers and accrued interest receivables - net 1,172,596,315 1,041,566,106 1,163,915,433 1,033,346,691

Customers’ liability under acceptances 580,231 521,190 580,231 521,190

Properties foreclosed - net 16 13,423,855 14,380,983 12,220,549 12,393,288

Premises and equipment - net 18 38,660,218 39,008,556 32,927,196 33,371,270

Goodwill and other intangible assets - net 19 18,804,645 16,614,260 14,851,374 12,805,098

Deferred tax assets 20 2,464,150 3,581,654 2,310,378 3,524,427

Other assets - net 20,210,187 20,696,211 13,583,443 12,786,792

Total Assets 1,722,939,879 1,546,664,309 1,604,566,971 1,450,731,714

KASIKORNBANK PUBLIC COMPANY LIMITED AND SUBSIDIARIESAs of 31 December 2011 and 2010

Note Consolidated31 December 2011 31 December 2010

The Bank

Thousand Baht

31 December 2011 31 December 2010

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

STATEMENTS OF FINANCIAL POSITION


KASIKORNBANK PUBLIC COMPANY LIMITED AND SUBSIDIARIESAs of 31 December 2011 and 2010

Note Consolidated31 December 2011 31 December 2010

The Bank

Thousand Baht



LIABILITIES AND EQUITY

Deposits 21 1,242,229,335 1,100,036,472 1,243,860,346 1,102,229,159

Interbank and money market items 22 53,340,485 33,063,634 56,775,838 34,996,959

Liabilities payable on demand 11,598,165 21,621,928 11,598,165 21,615,512

Financial liabilities designated at fair value through profit or loss 23 2,112,573 6,156,385 2,112,573 6,156,385

Derivative liabilities 9 27,436,187 28,398,944 27,436,423 28,397,687

Debts issued and borrowings 24 70,303,494 88,932,321 70,927,494 89,542,321

Bank’s liability under acceptances 580,231 521,190 580,231 521,190

Provisions 12,789,069 11,804,616 12,452,927 11,534,844

Deferred tax liabilities 20 1,062,656 1,776,958 - -

Life policy reserve 97,596,505 76,404,247 - -

Other liabilities 36,925,742 32,460,145 29,522,922 24,305,603

Total Liabilities 1,555,974,442 1,401,176,840 1,455,266,919 1,319,299,660

Equity

Share capital 26

Authorized share capital

3,048,614,697 common shares, Baht 10 par value 30,486,147 30,486,147 30,486,147 30,486,147

Issued and paid-up share capital

2,393,260,193 common shares, Baht 10 par value 23,932,602 23,932,602 23,932,602 23,932,602

Premium on common shares 18,103,110 18,103,110 18,103,110 18,103,110

Other reserves 10,934,372 9,198,714 10,209,040 8,414,470

Retained earnings

Appropriated

Legal reserve 27 3,050,000 3,050,000 3,050,000 3,050,000

Unappropriated 98,778,668 80,658,270 94,005,300 77,931,872

Total Equity attributable to equity holders of the Bank 154,798,752 134,942,696 149,300,052 131,432,054

Non-controlling interests 12,166,685 10,544,773 - -

Total Equity 166,965,437 145,487,469 149,300,052 131,432,054

Total Liabilities and Equity 1,722,939,879 1,546,664,309 1,604,566,971 1,450,731,714

STATEMENTS OF FINANCIAL POSITION

(Banthoon Lamsam) Chief Executive Officer and President

(Pow Sarasin)Vice Chairman

Pol.Gen.


Interest income 36 83,692,656 62,271,245 78,027,918 57,440,019 Interest expenses 37 27,201,600 15,526,800 27,341,939 15,591,929 Interest income - net 56,491,056 46,744,445 50,685,979 41,848,090 Fees and service income 26,071,888 22,820,865 25,104,803 21,867,242 Fees and service expenses 5,435,065 4,594,355 5,469,613 4,543,680 Fees and service income - net 38 20,636,823 18,226,510 19,635,190 17,323,562 Gain on trading and foreign exchange transactions 39 5,213,669 4,465,366 5,213,788 4,456,160 Loss on financial liabilities designated at fair value through profit or loss 40 (53,936) (94,545) (53,936) (94,545) Gain on investments 41 805,855 610,034 319,658 243,387Share of profit from investments using equity method 13,337 5,944 - -Dividend income 784,394 660,739 1,731,831 1,459,757Earned premium 37,118,340 29,090,104 - -Other operating income 1,206,087 656,056 1,925,912 1,203,749 Total operating income 122,215,625 100,364,653 79,458,422 66,440,160Underwriting expenses 31,707,255 25,220,602 - - Total operating income - net 90,508,370 75,144,051 79,458,422 66,440,160 Other operating expenses Employee’s expenses 19,544,222 16,402,361 15,044,749 12,621,103 Directors’ remuneration 100,531 114,561 76,717 96,339 Premises and equipment expenses 9,383,379 8,799,524 9,331,544 8,659,087 Taxes and duties 3,129,620 2,437,291 2,929,278 2,271,801 Others 10,861,219 10,249,139 10,460,626 10,196,609 Total other operating expenses 43,018,971 38,002,876 37,842,914 33,844,939 Impairment loss on loans and debt securities 42 7,345,533 6,700,908 7,380,372 6,491,425 Operating profit before income tax expense 40,143,866 30,440,267 34,235,136 26,103,796 Income tax expense 43 13,961,623 9,094,141 12,075,879 7,489,004 Net profit 26,182,243 21,346,126 22,159,257 18,614,792 Other comprehensive income Gain on remeasurement of available-for-sale investments 436,223 2,774,755 1,036,627 83,269 Actuarial losses on defined benefit plans (303,219) - (300,397) - Income taxes relating to components of other comprehensive income 1,390,762 (823,574) 955,661 (24,981) Total other comprehensive income 1,523,766 1,951,181 1,691,891 58,288 Total comprehensive income 27,706,009 23,297,307 23,851,148 18,673,080 Net profit attributable to: Equity holders of the Bank 24,225,567 20,046,690 22,159,257 18,614,792 Non-controlling interests 1,956,676 1,299,436 - -Total comprehensive income attributable to: Equity holders of the Bank 25,856,019 20,903,050 23,851,148 18,673,080 Non-controlling interests 1,849,990 2,394,257 - -Earnings per share of equity holders of the Bank Basic earnings per share (Baht) 10.12 8.38 9.26 7.78 Weighted average number of common shares (Thousand shares) 2,393,260 2,393,260 2,393,260 2,393,260

KASIKORNBANK PUBLIC COMPANY LIMITED AND SUBSIDIARIESFor the years ended 31 December 2011 and 2010

Note Consolidated2011 2010

The BankThousand Baht

2011 2010




Pol.Gen.

STATEMENTS OF COMPREHENSIVE INCOME


The ac

compa

nying

notes

are

an int

egra

l par

t of t

hese

finan

cial s

tatemen

ts.

Issue

d an

d Pa

id-up

Sh

are Ca

pital

Appr

aisal

Surp

lus o

n As

set

Reva

luatio

n

Reva

luatio

n Su

rplus

on

Avail

able-

for-s

ale

Inves

tmen

ts

Appr

opria

ted

Lega

l Res

erve

Unap

prop

riated

Total e

quity

attribu

table

to

equit

y ho

lders

of th

e Ba

nk

Non-

contro

lling

Inter

ests

Total

Prem

ium o

n Sh

are Ca

pital

KASI

KORN

BANK

PUB

LIC C

OMPA

NY LIM

ITED

AND

SUB

SIDI

ARIE

SFo

r the

yea

rs en

ded 31

Dec

embe

r 201

1 an

d 20

10

STAT

EMEN

TS O

F CH

AN

GES

IN E

QU

ITY

Balan

ce at 1

Janu

ary 20

10

2

3,93

2,60

2 1

8,10

3,11

0

7,515

,909

9

43,651

3

,050

,000

6

6,45

2,01

1

119

,997

,283

8

,148

,781

1

28,146

,064

Divid

end pa

id 28

-

-

-

-

-

(5

,983

,150

) (5

,983

,150

) (5

00,012

) (6

,483

,162

)

Shar

e ca

pital

-

-

-

-

-

-

-

5

01,748

5

01,748

Total c

ompr

ehen

sive inc

ome for t

he yea

r

-

-

-

856

,360

-

2

0,04

6,69

0

20,903

,050

2

,394

,257

2

3,29

7,30

7

Tran

sferre

d to re

taine

d ea

rning

s

-

-

(117

,206

) -

-

1

17,206

-

-

-

Othe

rs

-

-

-

-

-

25,513

2

5,51

3

(1)

25,51

2

Endin

g ba

lance

as o

f 31

Dece

mbe

r 201

0

23,93

2,60

2

18,10

3,11

0

7,39

8,70

3

1,800

,011

3

,050

,000

8

0,65

8,27

0 13

4,94

2,69

6

10,544

,773

14

5,48

7,46

9

Balan

ce at 1

Janu

ary 20

11

2

3,93

2,60

2

18,10

3,11

0

7,398

,703

1

,800

,011

3

,050

,000

8

0,65

8,27

0

134

,942

,696

1

0,54

4,77

3

145

,487

,469

Divid

end pa

id 28

-

-

-

-

-

(5,983

,150

) (5

,983

,150

) (2

28,078

) (6

,211

,228

)

Total c

ompr

ehen

sive inc

ome for t

he yea

r

-

-

1,032

,428

8

40,868

-

23,98

2,72

3

25,85

6,01

9

1,849

,990

2

7,70

6,00

9

Tran

sferre

d to re

taine

d ea

rning

s

-

-

(137

,638

) -

-

1

37,638

-

-

-

Othe

rs

-

-

-

-

-

(16,81

3)

(16,81

3)

-

(16,81

3)

Endin

g ba

lance

as o

f 31

Dece

mbe

r 201

1

23,93

2,60

2

18,10

3,11

0

8,293

,493

2

,640

,879

3

,050

,000

9

8,77

8,66

8

154

,798

,752

1

2,16

6,68

5 16

6,96

5,43

7

Othe

r res

erve

sRe

taine

d Ea

rning

s

Cons

olida

ted

Thou

sand

Bah

t

Note

Equit

y ho

lders

of th

e Ba

nk

Non-

contro

lling

Inter

ests


The

acco

mpa

nying

notes

are

an

integ

ral p

art o

f the

se fin

ancia

l statemen

ts.

Issue

d an

d Pa

id-up

Sh

are Ca

pital

Appr

aisal

Surp

lus o

n As

set

Reva

luatio

n

Reva

luatio

n Su

rplus

on

Avail

able-

for-s

ale

Inves

tmen

ts

Appr

opria

ted

Lega

l Res

erve

Unap

prop

riated

Total

Prem

ium o

n Sh

are Ca

pital

KASI

KORN

BANK

PUB

LIC C

OMPA

NY LIM

ITED

AND

SUB

SIDI

ARIE

SFo

r the

yea

rs en

ded 31

Dec

embe

r 201

1 an

d 20

10

STAT

EMEN

TS O

F CH

AN

GES

IN E

QU

ITY

Othe

r res

erve

sRe

taine

d Ea

rning

s

The

Bank

Note

Thou

sand

Bah

t

Equit

y ho

lders

of th

e Ba

nk

Balan

ce a

t 1 Ja

nuar

y 20

10

2

3,93

2,60

2

18,10

3,11

0

7,515

,909

9

57,479

3

,050

,000

6

5,13

7,74

0 11

8,69

6,84

0

Divid

end

paid

28

-

-

-

-

-

(5,983

,150

) (5

,983

,150

)

Total c

ompr

ehen

sive

incom

e for t

he yea

r

-

-

- 5

8,28

8

-

18,61

4,79

2

18,67

3,08

0

Tran

sferre

d to re

taine

d ea

rning

s

-

-

(117

,206

) -

-

11

7,20

6

-

Othe

rs

-

-

-

-

-

45,28

4 45

,284

Endin

g ba

lance

as o

f 31

Dece

mbe

r 201

0

23,93

2,60

2

18,10

3,11

0

7,398

,703

1

,015

,767

3

,050

,000

7

7,93

1,87

2 13

1,43

2,05

4

Balan

ce a

t 1 Ja

nuar

y 20

11

23

,932

,602

18

,103

,110

7

,398

,703

1

,015

,767

3

,050

,000

7

7,93

1,87

2

131

,432

,054

Divid

end

paid

28

-

-

-

-

-

(5,983

,150

) (5

,983

,150

)

Total c

ompr

ehen

sive

incom

e for t

he yea

r

-

-

1,032

,428

8

99,780

-

2

1,91

8,94

0

23,85

1,14

8

Tran

sferre

d to re

taine

d ea

rning

s

-

-

(137

,638

) -

-

137

,638

-

Endin

g ba

lance

as o

f 31

Dece

mbe

r 201

1

23,932

,602

1

8,10

3,11

0

8,29

3,49

3

1,915

,547

3,05

0,00

0

94,00

5,30

0

149,30

0,05

2

(Ban

thoon

Lam

sam)

Chief

Exe

cutiv

e Of

ficer

and

Pre

siden

t(P

ow S

aras

in)Vi

ce C

hairm

an

Pol.G

en.


CASH FLOWS FROM OPERATING ACTIVITIES

Operating profit before income tax expense 40,143,866 30,440,267 34,235,136 26,103,796

Add (Less) Adjustments to reconcile profit from operating before

income tax expense to net cash from operating activities

Depreciation and amortization 4,648,809 4,238,050 4,050,181 3,617,448

Bad debt and doubtful accounts 4,629,599 4,726,012 4,589,823 4,438,872

Loss on debt restructuring 3,571,520 2,596,529 3,570,768 2,596,048

Interest income from amortization of revaluation allowance

for debt restructuring (239,423) (326,010) (239,098) (325,566)

Loss (gain) on foreign exchange translation of long-term

borrowings 281,561 (622,757) 281,561 (622,757)

(Gain) loss on revaluation of investments (68,473) 59,729 (68,473) 62,224

(Reversal of loss) loss on impairment of investments (504,375) 6,210 (504,375) 9,451

Reversal of loss on impairment of investments in associated (1,077) - (1,077) -

Gain on disposal of securities for investments (548,154) (617,940) (69,592) (253,387)

(Gain) loss on disposal of investments in associated (7,056) - 1,841 -

Loss on investments write off and capital decrease of subsidiary - - - 10,000

Amortization of discount on debt instruments (1,096,060) (602,735) (1,055,783) (827,706)

Loss on impairment of properties foreclosed 596,639 474,546 482,433 453,779

(Reversal of loss) loss on impairment of other assets (52,770) 128,426 (52,770) 128,426

(Gain) loss on disposal of premises and equipment (7,236) (11,448) 3,694 (628)

Loss on write off of premises and equipment 236,395 37,495 235,940 27,033

Reversal of loss on impairment of premises and equipment - (2,604) - (2,604)

Loss on write off of intangible assets 104,028 - 104,672 -

Loss on impairment of intangible assets 255,438 - 255,438 -

Share of profit from investments using equity method (13,337) (5,944) - -

Dividend income from associated companies 4,650 4,200 - -

Amortization of discount on debentures 2,981 3,083 2,981 3,083

Increase (decrease) in other reserves 984,453 (1,161,258) 918,083 177,541

52,921,978 39,363,851 46,741,383 35,595,053



The Bank

Thousand Baht

2011 2010


STATEMENTS OF CASH FLOWS




The Bank

Thousand Baht

2011 2010

Net income from interest (56,491,056) (46,744,445) (50,685,979) (41,848,089)

Dividend income (784,394) (660,739) (1,731,831) (1,459,757)

Proceeds from interest 83,136,173 62,767,596 76,863,242 57,553,280

Interest paid (24,527,249) (13,823,805) (24,666,186) (13,887,666)

Proceeds from dividends 744,608 689,272 1,731,624 1,469,499

Income tax paid (11,039,023) (8,003,348) (8,968,231) (6,288,806)

Income from operations before changes in operating assets

and liabilities 43,961,037 33,588,382 39,284,022 31,133,514

(Increase) decrease in operating assets

Interbank and money market items (assets) (14,201,995) (34,171,635) (13,233,668) (34,108,715)

Investments held for trading 10,184,755 (7,301,588) 10,179,431 (7,293,471)

Loans to customers (140,522,593) (145,137,970) (138,972,123) (142,119,972)

Properties foreclosed 4,384,810 4,755,759 3,511,708 3,288,356

Other assets 3,264,864 (11,216,098) 1,396,029 (9,010,064)

Increase (decrease) in operating liabilities

Deposits 142,192,863 124,544,549 141,631,187 124,164,823

Interbank and money market items (liabilities) 20,276,851 (13,781,927) 21,778,879 (13,009,658)

Liabilities payable on demand (10,023,763) 8,866,303 (10,017,347) 8,867,611

Financial liabilities designated at fair value through profit or loss (4,043,812) 6,156,386 (4,043,812) 6,156,386

Short-term debts issued and borrowings (18,635,546) 21,368,886 (18,621,546) 19,763,597

Other accrued expenses 2,128,719 1,466,780 1,973,326 1,249,475

Other liabilities 17,976,344 25,598,233 (2,155,084) 7,469,271

Net cash provided by (used in) operating activities 56,942,534 14,736,060 32,711,002 (3,448,847)






The Bank

Thousand Baht

2011 2010

CASH FLOWS FROM INVESTING ACTIVITIES

Proceeds from disposal of available-for-sale investments 153,486,644 259,202,592 131,327,933 235,064,433

Proceeds from redemption of held to maturity debt instruments 8,352,772 17,678,612 415,533 544,964

Proceeds from disposal of general investments 209,317 213,217 209,292 212,217

Proceeds from capital decrease/disposal of investments

in subsidiary company - - 1,976,145 1,467,420

Proceeds from disposal of investments in associated company 48,188 - 495 -

Purchase of available-for-sale investments (157,928,458) (230,420,841) (133,085,002) (205,107,513)

Purchase of held to maturity debt instruments (26,671,366) (32,028,929) (63,375) (373,876)

Purchase of general investments (260,455) (191) (252,155) (191)

Cash paid for capital increases of subsidiary company - - (202,000) (5,000)

Purchase of investments in associated company (28,700) - - -

Proceeds from disposal of premises and equipment 13,751 16,129 1,975 6,447

Purchase of premises and equipment (3,141,366) (5,405,849) (2,342,671) (4,296,724)

Purchase of leasehold (195,511) (111,318) (195,178) (110,988)

Purchase of intangible assets (3,585,191) (3,618,876) (3,488,080) (3,690,137)

Net cash (used in) provided by investing activities (29,700,375) 5,524,546 (5,697,088) 23,711,052

CASH FLOWS FROM FINANCING ACTIVITIES

Decrease in long-term debts issued and borrowings (277,823) (8,496,061) (277,823) (8,496,061)

Increase in non-controlling interests’ share capital - 501,748 - -

Dividend payments to shareholder 28 (5,983,150) (5,983,150) (5,983,150) (5,983,150)

Dividend paid to non-controlling interests (228,078) (500,012) - -

Net cash used in financing activities (6,489,051) (14,477,475) (6,260,973) (14,479,211)

Net increase in cash 20,753,108 5,783,131 20,752,941 5,782,994

Cash at the beginning of the period 7 32,457,482 26,674,351 32,456,187 26,673,193

Cash at the end of the period 7 53,210,590 32,457,482 53,209,128 32,456,187





Pol.Gen.


Note Contents Page

1 General information 85 2 Basis of preparation of the financial statements 90 3 Impact of severe flooding in Thailand 92 4 New and revised Thai Financial Reporting Standards 92 5 Significant accounting policies 93 6 Capital requirements 112 7 Supplementary information of cash flows 113 8 Interbank and money market items - net (assets) 114 9 Derivatives 116 10 Investments - net 118 11 Investments in subsidiaries and associated companies - net 124 12 Loans to customers and accrued interest receivables - net 130 13 Troubled debt restructuring 141 14 Allowance for doubtful accounts 146 15 Revaluation allowance for debt restructuring 147 16 Properties foreclosed - net 148 17 Classified assets 150 18 Premises and equipment - net 152 19 Goodwill and other intangible assets - net 156 20 Deferred tax assets and deferred tax liabilities 159 21 Deposits 163 22 Interbank and money market items (liabilities) 164 23 Financial liabilities designated at fair value through profit or loss 166 24 Debts issued and borrowings 166 25 Employee retirement benefits 171 26 Share capital and earnings per share 172 27 Reserves 172 28 Dividend payments 172 29 Assets pledged as collateral 173 30 Contingent liabilities and commitments 173 31 Related party transactions and balances 175 32 Benefits of directors and executives 185 33 Capital commitments and long-term agreements 186 34 Thai Financial Reporting Standards (TFRS) not yet adopted 187 35 The financial positions and results of operations differentiated by domestic and foreign business 187 36 Interest income 192 37 Interest expenses 192 38 Fees and service income - net 193 39 Gain on trading and foreign exchange transactions 193 40 Loss on financial liabilities designated at fair value through profit or loss 194 41 Gain on investments 194 42 Impairment loss on loans and debt securities 195 43 Income tax expense 195 44 Financial risk management 198 45 Fair value of financial instruments 215 46 Reclassification of accounts 217

NOTES TO THE FINANCIAL STATEMENTS

KASIKORNBANK PUBLIC COMPANY LIMITED AND SUBSIDIARIES

For the years ended 31 December 2011 and 2010


NOTES TO THE FINANCIAL STATEMENTS

The financial statements issued for Thai statutory and regulary reporting purposes are prepared in the Thai language.

These English language financial statements have been prepared from the Thai language statutory financial

statements, and were approved and authorized for issue by the Audit Committee on 16 February 2012.

1 GENERAL INFORMATION

KASIKORNBANK PUBLIC COMPANY LIMITED, (“the Bank”), is a registered public company located in the

Kingdom of Thailand and listed on the Stock Exchange of Thailand on 9 February 1976. The registered office of

the Bank is at 1 Soi Rat Burana 27/1, Rat Burana Road, Rat Burana Sub-District, Rat Burana District, Bangkok.

The principal activity of the Bank is commercial banking and the Bank conducts its businesses through a network

of branches covering all parts of Thailand and certain majors cities overseas.

The consolidated financial statements of the Bank consist of the Bank and its subsidiaries. Details of the Bank’s

subsidiaries are as follows:

% Shareholding of the Bank

Direct and Indirect


KASIKORN ASSET MANAGEMENT CO., LTD. (“KAsset”) 100.00 100.00

KASIKORN RESEARCH CENTER CO., LTD. (“KResearch”) 100.00 100.00

KASIKORN SECURITIES PCL (“KSecurities”) 99.99 99.99

KASIKORN LEASING CO., LTD. (“KLeasing”) 100.00 100.00

KASIKORN FACTORY & EQUIPMENT CO., LTD. (“KF&E”) 100.00 100.00

Phethai Asset Management Co., Ltd. 100.00 100.00

KHAO KLA Venture Capital Management Co., Ltd. 100.00 100.00

K-SME Venture Capital Co., Ltd. 100.00 100.00

Progress Software Co., Ltd. 100.00 100.00

Progress Plus Co., Ltd. 100.00 100.00

Progress Appraisal Co., Ltd. 100.00 100.00

Progress Gunpai Co., Ltd. 100.00 100.00

KASIKORNBANK PUBLIC COMPANY LIMITED AND SUBSIDIARIES

For the years ended 31 December 2011 and 2010

These notes form an integral part of the financial statements.


Progress Management Co., Ltd. 100.00 100.00

Progress Facilities Management Co., Ltd. 100.00 100.00

Progress Service Co., Ltd. 100.00 100.00

Progress Land and Buildings Co., Ltd. 100.00 100.00

Progress Storage Co., Ltd. 100.00 100.00

Progress HR Co., Ltd. 100.00 100.00

Progress Service Support Co., Ltd. 100.00 100.00

Progress Collection Co., Ltd. 100.00 100.00

Progress Training Co., Ltd. 100.00 100.00

Progress Multi Insurance Broker Co., Ltd. 100.00 100.00

Thanyathanathavee Co., Ltd. 100.00 100.00

Thanyathamrongkij Co., Ltd. 100.00 100.00

Thanyanithiwattana Co., Ltd. 100.00 100.00

Ruang Khao Phuean Thai Joint Investment Agreement 100.00 100.00

Muangthai Group Holding Co., Ltd. (“MTGH”) 51.00 51.00

Muang Thai Life Assurance Co., Ltd. (“MTL”) 38.25 38.25

Muangthai Broker Co., Ltd. (“MTB”) 49.98 49.98

% Shareholding of the Bank

Direct and Indirect


KASIKORN ASSET MANAGEMENT COMPANY LIMITED is a company which is registered in the Kingdom of

Thailand and is located at 400/22 Kasikornbank Building, Floor 6, Phaholyothin Road, Samsennai, Phayathai,

Bangkok. The company's main business is assets and funds management.

KASIKORN RESEARCH CENTER COMPANY LIMITED is a company which is registered in the Kingdom of

Thailand and is located at 400/22 Kasikornbank Building, Floor 2 and 7, Phaholyothin Road, Samsennai,

Phayathai, Bangkok. The company’s main business is to support the Bank with research work and public

relations.

KASIKORN SECURITIES PUBLIC COMPANY LIMITED is a company which is registered in the Kingdom of

Thailand and is located at 400/22 Kasikornbank Building, Floor 19, Phaholyothin Road, Samsennai, Phayathai,

Bangkok. The company’s main businesses are securities and investment banking.


KASIKORN LEASING COMPANY LIMITED is a company which is registered in the Kingdom of Thailand and is

located at 400/22 Kasikornbank Building, Floor 17, Phaholyothin Road, Samsennai, Phayathai, Bangkok. The

company’s main businesses are leasing and hire purchase.

KASIKORN FACTORY AND EQUIPMENT COMPANY LIMITED (changed its name from KASIKORN FACTORING

COMPANY LIMITED on 25 December 2009) is a company which is registered in the Kingdom of Thailand and is


company was established to furnish commercial financial services to businesses, including factoring, finance

leases, operating leases and hire purchase.

Phethai Asset Management Company Limited is a company registered in the Kingdom of Thailand and was

approved by the Bank of Thailand (BoT) on 13 October 1999 to register as an asset management company under

the Ministerial Regulation (B.E. 2541) issued with regard to the provisions of the Asset Management Company Act

(B.E. 2541). The company is located at 400/22 Kasikornbank Building, Floor 4, Phaholyothin Road, Samsennai,

Phayathai, Bangkok and was established with the objective of managing substandard assets transferred from the

Bank.

KHAO KLA Venture Capital Management Company Limited, 100% held by KASIKORN ASSET MANAGEMENT

COMPANY LIMITED, is a company which is registered in the Kingdom of Thailand and is located at 400/22

Kasikornbank Building, Floor 14, Phaholyothin Road, Samsennai, Phayathai, Bangkok. The company’s main

business is securities investment management.

K-SME Venture Capital Company Limited is a company which is registered in the Kingdom of Thailand and is


company’s main business is venture capital.

Progress Software Company Limited is a company which is registered in the Kingdom of Thailand and is located

at 306 Suapa Road, Pomprab, Pomprab-satrupai, Bangkok. The company’s main business is to render the

service of designing computer program, and training in the use of hardware and software.

Progress Plus Company Limited is a company which is registered in the Kingdom of Thailand and is located at

306 Suapa Road, Pomprab, Pomprab-satrupai, Bangkok. The company’s main businesses are to deal in the

business of agency/brokerage sales of inventories and/or service, contractor, particularly office stationery,

printing matters and other goods.


Progress Appraisal Company Limited is a company which is registered in the Kingdom of Thailand and is located

at 252, Phaholyothin Road, Samsennai, Phayathai, Bangkok. The company’s main business is to appraise

assets.

Progress Gunpai Company Limited is a company which is registered in the Kingdom of Thailand and is located at

47/7, Kasikornbank Building, Floor 3, Mu 3, Tambon Ban Mai, Pak Kret District, Nontaburi. The company’s main

businesses are to provide transportation service of cash and valuable assets to the Bank, including cash count

service, packing and change of cash to Automatic Teller Machines.

Progress Management Company Limited is a company which is registered in the Kingdom of Thailand and is

located at 252/9 Muang Thai-Phatra Tower 1, Floor 5, Ratchadapisek Road, Huaykwang, Huaykwang, Bangkok.

The company’s main business is engaged as the custodian and management of assets, received from debt

settlement of the Bank including related parties’ assets which have been transferred in, in order to keep these

assets in good condition for sale or rent.

Progress Facilities Management Company Limited is a company which is registered in the Kingdom of Thailand

and is located at 400/22 Kasikornbank Building, Floor 9, Phaholyothin Road, Samsennai, Phayathai, Bangkok.

The company’s main business is to provide building management services to the Bank and related parties.

Progress Service Company Limited is a company which is registered in the Kingdom of Thailand and is located at

400/22 Kasikornbank Building, Floor 9, Phaholyothin Road, Samsennai, Phayathai, Bangkok. The company’s main

business is to provide drivers, security guards, cleaners and other related services for the Bank and related parties.

Progress Land and Buildings Company Limited is a company which is registered in the Kingdom of Thailand and

is located at 252/9 Muang Thai-Phatra Tower 1, Floor 5, Ratchadapisek Road, Huaykwang, Huaykwang,

Bangkok. The company was established to receive, manage and sell properties that have been foreclosed as

well as the premises of Phatra Thanakit Public Company Limited.

Progress Storage Company Limited is a company which is registered in the Kingdom of Thailand and is located

at 400/22 Kasikornbank Building, Floor 9, Phaholyothin Road, Samsennai, Phayathai, Bangkok. The company’s

main business is to provide inventory management services, used as collateral for bank loans.

Progress HR Company Limited is a company which is registered in the Kingdom of Thailand and is located at

1019/15 Kasikornbank Building, Sanampao Branch, Floor 2-3, Phaholyothin Road, Samsennai, Phayathai,

Bangkok. The company main business is to provide outsourced employee services to the Bank and related

parties.


Progress Service Support Company Limited is a company which is registered in the Kingdom of Thailand and is

located at 47/7, Kasikornbank Building, Floor 9, Mu 3, Tambon Ban Mai, Pak Kret District, Nontaburi. The

company’s main business is to provide information relating the Bank’s products and services through customer

relationship channels, including selling and marketing via telephone banking.

Progress Collection Company Limited is a company which is registered in the Kingdom of Thailand and is

located at 1 Kasikornbank Building, Rat Burana Main Branch, Floor 2-3, Soi Rat Burana 27/1, Rat Burana Road,

Rat Burana Sub-District, Rat Burana District, Bangkok. The company’s main businesses are collection and debt

restructuring for consumer and corporate loans of the Bank and its subsidiaries.

Progress Training Company Limited is a company which is registered in the Kingdom of Thailand on 9 April 2009,

and is located at 1 Kasikornbank Building, Floor 12, Soi Rat Burana 27/1, Rat Burana Road, Rat Burana Sub-

District, Rat Burana District, Bangkok. The company’s main business is offering of training services to develop

the skills of its employees of the Bank and its subsidiaries.

Progress Multi Insurance Broker Company Limited is a company which is registered in the Kingdom of Thailand

on 16 September 2010, and is located at 400/22 Kasikornbank Building, Floor 17, Phaholyothin Road,

Samsennai, Phayathai, Bangkok. The company’s main business is commission from casualty insurance.

Thanyathanathavee Company Limited is a company which was registered in the Kingdom of Thailand on

11 November 2009, and is located at 1 Parking Building Floor 5, Soi Rat Burana 27/1, Rat Burana Road,

Rat Burana Sub-District, Rat Burana District, Bangkok. The company’s main business is investment in other

companies.

Thanyathamrongkij Company Limited is a company which was registered in the Kingdom of Thailand on

11 November 2009, and is located 1 Parking Building Floor 5, Soi Rat Burana 27/1, Rat Burana Road, Rat Burana

Sub-District, Rat Burana District, Bangkok. The company's main business is investment in other companies.

Thanyanithiwattana Company Limited is a company which was registered in the Kingdom of Thailand on

12 November 2009, and is located at 1 Parking Building Floor 5, Soi Rat Burana 27/1, Rat Burana Road,

Rat Burana Sub-District, Rat Burana District, Bangkok. The company's main business is investment in other

companies.

Ruang Khao Phuean Thai Joint Investment Agreement was agreed between Thanyathanathavee Company

Limited and Thanyathamrongkij Company Limited on 12 November 2009, pursuant to the regulations under the

Life Insurance Act B.E. 2535 as amended. The objective of this agreement is investment in other companies.


Muangthai Group Holding Company Limited (changed its name from Muangthai Fortis Holding Company Limited

on 31 July 2009) is a company which was registered in the Kingdom of Thailand on 11 August 1999 and is

located at Muang Thai-Phatra Complex, Tower A, Floor 5, 252/9, Ratchadapisek Road, Huaykwang, Huaykwang,

Bangkok. The company’s main business is investment in other companies.

Muang Thai Life Assurance Company Limited is a company which was registered in the Kingdom of Thailand on

1 February 1951 and is located at 250 Ratchadapisek Road, Huaykwang, Huaykwang, Bangkok. The company’s

main business is providing life insurance.

Muangthai Broker Company Limited is a company which was registered in the Kingdom of Thailand on 12 March

2008, and is located at Muang Thai-Phatra Complex, Tower A, Floor 5, 252/9, Ratchadapisek Road, Huaykwang,

Huaykwang, Bangkok. The company’s main business is commission from life insurance.

2 BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS

a) Statement of compliance

The financial statements are prepared in accordance with Thai Financial Reporting Standards (“TFRS”);

guidelines promulgated by the Federation of Accounting Professions (“FAP”), applicable rules and regulations

of the Thai Securities and Exchange Commission (“SEC”) and prescribed by the Bank of Thailand (“BoT”)

notification number SOR NOR SOR 11/2553, directive dated 3 December 2010, regarding the “Preparation

and announcement of the financial statements of commercial banks and holding companies which are parent

company of group of companies offering financial services”. See Note 46 for reclassification of accounts for

financial statements for the year ended 31 December 2010, for comparative purpose.

b) Basis of measurement

The financial statements have been prepared on the historical cost basis except the following material items

in the statements of financial position:

- derivative financial instruments are measured at fair value;

- financial instruments at fair value through profit or loss are measured at fair value;

- available-for-sale financial assets are measured at fair value;

- premises and equipment are measured at revalued amounts;

- investment properties are measured at fair value.


c) Presentation currencies

The financial statements are prepared and presented in Thai-Baht. All financial information presented in

thousand Baht has been rounded in the notes to the financial statements to the nearest million unless

otherwise stated.

d) Use of estimates and judgements

The preparation of financial statements in conformity with TFRS requires management to make judgements,

estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities,

income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates

are recognised in the period in which estimates are revised and in any future period affected.

Information about significant of estimation uncertainty and critical judgements in applying accounting policies

that have the most significant effect on the amount recognised in the financial statements are described in

note 4 significant accounting policies and in the following notes:

Note 3 Impact of severe flooding in Thailand

9 Derivatives

10 Investments - net

13 Troubled debt restructuring

14 Allowance for doubtful accounts

15 Revaluation allowance for debt restructuring

16 Properties foreclosed - net

18 Premises and equipment - net

19 Goodwill and other intangible assets - net

20 Deferred tax assets and deferred tax liabilities

23 Financial liabilities designated at fair value

25 Employee retirement benefits

30 Contingent liabilities and commitments

43 Income tax expense

44 Financial risk management

45 Fair value of financial instruments


3 IMPACT OF SEVERE FLOODING IN THAILAND

Due to the recent flooding the Bank of Thailand has implemented measures requesting banks to provide support

to their impacted customers, where the customer’s account status is Pass or Special Mention. Such measures

are set out in Notification For Nor Sor. (23) Wor. 1564/2554 issued on 19 October 2011.

Customers have been granted relief under the measures referred to above has loans outstanding balances as of

31 December 2011 amounting to Baht 86,542 million. The Bank has performed an assessment and already

provided allowance for doubtful accounts to serve for any impact incurred which is not material to the financial

statements.

4 NEW AND REVISED THAI FINANCIAL REPORTING STANDARDS

During 2010 and 2011, the FAP issued the following new and revised Thai Financial Reporting Standards (TFRS)

relevant to the Bank and its subsidiaries’ operations and effective for accounting periods beginning on or after

1 January 2011. The Bank and its subsidiaries have early adopted some TFRS for the preparation of financial

statements in 2010 and have applied the following TFRS from 1 January 2011 :

TFRS Topic

TAS 1 (Revised 2009) Presentation of Financial Statements

TAS 24 (Revised 2009) Related Party Disclosures

TAS 34 (Revised 2009) Interim Financial Reporting

FAP’s announcement 17/2554 Transitional Procedures for other Long-term Employee Benefits

FAP’s announcement 18/2554 Accounting Guidance on Revaluation of Assets

From 1 January 2011, the Bank and its subsidiaries have adopted TAS 1 (Revised 2009) Presentation of Financial

Statements. Under the revised standard, a set of financial statements comprises:

Statement of financial position;

Statement of comprehensive income;

Statement of changes in equity;

Statement of cash flows; and

Notes to the financial statements.


As a result, the Bank and its subsidiaries present all owner changes in equity in the statement of changes in

equity and all non-owner changes in equity in the statement of comprehensive income. Previously, all such

changes were included in the statement of changes in equity.

Comparative information has been re-presented so that it also is in conformity with the revised standard, see Note

46. Since the change in accounting policy only impacts presentation aspects, there is no impact on reported

profit or earnings per share.

In addition to the above new and revised TFRS, during 2010 the FAP has issued a number of other TFRS which

are expected to be effective for financial period beginning on or after 1 January 2013 and have not been adopted

in the preparation of these financial statements. These new and revised TFRS are disclosed in Note 34.

5 SIGNIFICANT ACCOUNTING POLICIES

5.1 Basis of consolidation

The consolidated financial statements relate to the Bank and its subsidiaries and the Bank’s interests in

associates.

Business combinations

The Bank and subsidiaries apply the acquisition method for all business combinations other than those with

entities under common control.

Business combinations are accounted for under the purchase method. The cost of an acquisition is

measured at the fair value of the assets transferred, equity securities issued and identifiable liabilities

assumed at the date of exchange.

Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from

its activities. In assessing control, the Bank and subsidiaries takes into consideration potential voting rights

that currently are exercisable.


Goodwill in a business combination

Goodwill in a business combination represents the excess of the cost of acquisition over the fair value of the

Bank’s share of the identifiable net assets acquired. Negative goodwill in a business combination

represents the excess of the fair value of the Bank’s share of the identifiable net assets acquired over the

cost of acquisition.

- goodwill and negative goodwill, carried in the financial statements that arose from a business

combination for which the agreement date was before 1 January 2008, are stated at cost less

accumulated amortisation as of 31 December 2007 and accumulated allowance for impairment.

- goodwill arising from a business combination for which the agreement date begins on or after

1 January 2008 to 31 December 2009, are stated at cost less accumulated allowance for impairment.

Negative goodwill is recognised as income in the statement of comprehensive income in the year of

the business combination.

Subsidiaries

Subsidiaries are entities controlled by the Bank and its subsidiaries. Control exists when the Bank and

subsidiaries has the power, directly or indirectly, to govern the financial and operating policies of an entity so

as to obtain benefits from its activities. The financial statements of subsidiaries are included in the

consolidated financial statements from the date that control commences until the date that control ceases.

The accounting policies of subsidiaries have been changed where necessary to align them with the policies

adopted by the Bank.

Losses applicable to non-controlling interests in a subsidiary are allocated to non-controlling interests even

if doing so causes the non-controlling interests to have a deficit balance.

Associates

Associates are those entities in which the Bank and subsidiaries has significant influence, but not control,

over the financial and operating policies. Significant influence is presumed to exist when the Bank and

subsidiaries holds between 20% and 50% of the voting power of another entity.

Investments in associates are accounted for in the consolidated financial statements using the equity

method and are recognised initially at cost. The cost of the investment includes transaction costs.


The consolidated financial statements include the Bank and subsidiaries’ share of profit or loss and other

comprehensive income from the date that significant influence commences until the date that significant

influence ceases. When the Bank and subsidiaries’ share of losses exceeds its interest in an associate, the

Bank and subsidiaries’ carrying amount is reduced to nil and recognition of further losses is discontinued

except to the extent that the Bank and subsidiaries has incurred legal or constructive obligations or made

payments on behalf of the associate.

Transactions eliminated on consolidation

Intra-group balances and transactions, and any unrealised income or expenses arising from intra-group

transactions, are eliminated in preparing the consolidated financial statements. Unrealised gains arising from

transactions with associates are eliminated against the investment to the extent of the Bank and subsidiaries’

interest in the investee. Unrealised losses are eliminated in the same way as unrealised gains, but only to

the extent that there is no evidence of impairment.

The consolidated and the Bank only financial statements include the accounts of all branches; domestic and

outside Thailand. Interbranch transactions have been eliminated.

5.2 Cash

Cash represent cash in hand and cash items in the process of collection.

The Bank recognised such items on this financial statements by Settlement Date method.

5.3 Investments

Investments in debt and equity securities

Debt securities and marketable equity securities held for trading are classified as trading investments and

are stated at fair value, with any resultant gain or loss being recognised in the statements of comprehensive

income.

Debt securities for which the Bank and its subsidiaries have the positive intent and ability to hold to maturity

are classified as held-to-maturity investments. Held-to-maturity investments are stated at amortised cost,

less any impairment losses. The difference between the acquisition cost and redemption value of such debt

securities is amortised using the effective interest rate method over the period to maturity.


Debt securities and marketable equity securities, other than those securities held for trading or intended to

be held to maturity, are classified as available-for-sale investments. Available-for-sale investments are,

subsequent to initial recognition, stated at fair value, and changes on available-for-sale monetary items, are

recognised directly in equity and other comprehensive income. Where these investments are interest-

bearing, interest calculated using the effective interest method is recognised in profit or loss.

Equity securities which are not marketable classified as general investment are stated at cost less any

impairment losses.

Investments in marketable equity securities classified as trading investments and available-for-sale

investments are stated at fair value based on the last Stock Exchange of Thailand (SET) bid prices as of the

reporting date.

Investments in marketable unit trusts classified as trading investments and available-for-sale investments are

stated at fair value based on the net asset value as of the reporting date.

Investments in government securities and state enterprises securities guaranteed by the government,

classified as trading investments and available-for-sale investments, are stated at fair value based on the

Thai Bond Market Association Government Bond Yield Curve as of the reporting date. State enterprises

securities not guaranteed by the government and private debt instruments are stated at fair value based on

bid prices from the Thai Bond Market Association as of reporting date. If not available, the Government

Bond Yield for the same period, adjusted by an appropriate risk premium, is used.

Investments in receivables

Investments in receivables are stated at acquisition cost after deducting the allowance for impairment.

When debt restructuring is required, the balance is recorded as a loan at fair value, in accordance with the

transfer of financial asset accounting procedure. The difference between the book value and the fair value

is recognised as a gain or loss on transfer of financial assets in the statements of comprehensive income.

Investments recognition

The Bank recognised and eliminated such items on this financial statements by Settlement Date method.


Revenue recognition

Interest income is recognised on an accrual basis. Dividend income from investment is recognised on

an accrual basis at the date which the Bank earns the rights to receive the dividend. Gains or losses on

sales of securities are recognised in profit or loss upon disposal. Interest income from investments in

receivables is recognised by using the effective yield method.

Disposal of investments

On disposal of an investment, the difference between net disposal proceeds and the carrying amount together

with the associated gain or loss that was reported in equity is recognised in the statements of comprehensive

income.

On disposal of part of its holding of a particular investment, the deemed cost of the part sold is determined

using the weighted average method applied to the carrying value of the total holding of the investment.

5.4 Investments in subsidiaries and associates

Investments in subsidiaries and associates in the separate financial statements of the Bank are accounted

for using the cost method less allowance for impairment. Investments in associates in the consolidated

financial statements are accounted for using the equity method.

5.5 Loans

Except in the case of loans effected through overdraft agreements, loans represent only principal amounts.

Unearned discounts received in advance are presented as a reduction in loans.


Impairment

An impairment review of investments is carried out when there is a factor indicating that an investment might

be impaired. Losses on impairment for all classifications of investments are charged to the statements of

comprehensive income.


5.6 Allowance for doubtful accounts

The Bank and certain subsidiaries which are credit institutions or asset management company make

allowances for doubtful accounts that are determined through methods based on the Bank of Thailand’s

regulations and the Bank’s estimated loan loss. The allowance for non-performing loans has been

specifically determined by the nature of loans and the relevant factors such as payment ability, collateral,

historical loss and estimated loss, etc. The allowance for performing loans has been assessed based upon

general relevant factors such as historical loss, credit risk, economic conditions and management

experience, etc. For corporate loans, the allowance is determined on a case by case basis while the

allowance for retail loans is determined on a portfolio basis for portfolios with similar risk characteristics.

Based on BoT’s regulations, the Bank and certain subsidiaries which are credit institutions or asset

management company have classified their loan portfolios into six categories, primarily based on the non-

accrual period. For loans classified as pass and special-mention, the calculation of allowances for doubtful

accounts is based on the regulatory minimum percentage requirement, taking into consideration the

collateral value, where the collateral type and date of the latest appraisal are qualifying factors. For loans

classified as sub-standard, doubtful and doubtful of loss, the allowances on these accounts will be set at

100 percent for the difference between the outstanding book value of the debt and the present value of

future cashflows expected to be received or the expected proceeds from the disposal of collateral in

accordance with the BoT’s regulations.

Allowance for doubtful accounts of the factoring subsidiary which has credit risk guarantee with other

insurance companies is established in accordance with the Bank of Thailand’s notification.

Allowance for doubtful accounts established during the year are recognised as bad debt and doubtful

accounts expense in the statements of comprehensive income. Bad debt recovery is recognised as income

and is presented net of bad debt and doubtful accounts expense in the statements of comprehensive

income.

The life insurance subsidiary has allowance for doubtful accounts based on the estimated loss that may

incurred in collection of the premium due, determined by collection experience, review of premium due

aging and value of collateral held against each receivable.


5.7 Troubled debt restructuring

The Bank and the asset management subsidiary record foreclosed assets acquired from troubled debt

restructuring at fair value up to the legal claim for the debt, including interest receivable. Where

restructuring a loan involves modification of its terms, the present value of the expected future cash

collections is calculated by using discount rates equivalent to the market rates of interest at the time of

restructuring. The difference between the present value of the future cash flows expected to be received

and the outstanding balances of investment in loans is recorded in the revaluation allowance for debt

restructuring. This revaluation allowance for debt restructuring is amortised to the statement of

comprehensive income according to the amounts received over the remaining period of the

debt-restructuring contracts except for restructured loans with a high probability of default on their

contractual obligations and agreement. In this latter case, the Bank will stop recognising to the statements

of comprehensive income. The recognition in the statements of comprehensive income occurs when such

risk is eliminated.

5.8 Properties foreclosed

Properties foreclosed are recorded at the lower of market value or the amount of the legal claim on the

related debt, including interest receivable. The market value is estimated by using the latest appraisal value

after deduction of estimated disposal expenses and holding cost.

Losses on impairment are charged to the statements of comprehensive income. Gains or losses on disposal

of properties foreclosed are recorded as other operating income or other expenses upon disposal.

5.9 Premises and equipment and depreciation

Recognition and measurement

Owned assets

Land and buildings are stated at their revalued amounts. The revalued amount is the fair value determined

on the basis of the property’s existing use at the date of revaluation less any subsequent accumulated

depreciation and impairment losses. Equipment are stated at cost less accumulated depreciation and

impairment losses.


Cost includes expenditure that is directly attributable to the acquisition of the asset, any other costs directly

attributable to bringing the assets to a working condition for their intended use, the costs of dismantling and

removing the items and restoring the site on which they are located, and capitalised borrowing costs.

Purchased software that is integral to the functionality of the related equipment is capitalised as part of that

equipment.

When parts of an item of premises and equipment have different useful lives, they are accounted for as

separate items of premises and equipment.

Gains and losses on disposal of an item of premises and equipment are determined by comparing the

proceeds from disposal with the carrying amount of premises and equipment, and are recognised net within

other income and other expense in the statements of comprehensive income. When revalued assets are

sold, the amounts included in the revaluation reserve are transferred to retained earnings.

Revalued assets

Revaluation of land and buildings is performed by independent professional valuers according to the Bank

of Thailand’s criteria with sufficient regularity to ensure that the carrying amount of these assets does not

differ materially from that which would be determined using fair values at the reporting date.

Any increase in value, on revaluation, is recognised in other comprehensive income and presented in the

appraisal surplus on asset revaluation in equity unless it offsets a previous decrease in value recognised

loss in the statements of comprehensive income in respect of the same asset.

A decrease in value is recognised in the statements of comprehensive income to the extent it exceeds an

increase previously recognised in other comprehensive income in respect of the same asset.

The appraisal surplus on asset revaluation is utilised by reference to the difference between depreciation

based on the revalued carrying amount of the asset and depreciation based on the asset’s original cost and

transferred directly to retained earnings.

Upon disposal of a revalued asset, any remaining related appraisal surplus on asset revaluation is

transferred directly to retained earnings and is not taken into account in calculating the gain or loss on

disposal.


Leased assets

Leases in terms of which the Bank and its subsidiaries substantially assumes all the risk and rewards of

ownership are classified as finance leases. Equipment acquired by way of finance leases is capitalised at

the lower of its fair value and the present value of the minimum lease payments at the inception of the lease,

less accumulated depreciation and impairment losses. Lease payments are apportioned between the

finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the

remaining balance of the liability. Finance charges are charged directly to the statements of comprehensive

income.

Subsequent expenditure

Subsequent expenditure relating to an item of premises and equipment is added to the carrying amount of

the asset when it is probable that the future economic benefits embodied within the part will flow to the Bank

and its subsidiaries. The other subsequent expenditure is recognised in expenses as incurred.

Depreciation

Depreciation is calculated based on the depreciable amount, whish is the cost of and asset, or other amount

substituted for cost, less its residual value.

Depreciation is charged to the statements of comprehensive income on a straight-line basis over the

estimated useful lives of each item of premises and equipment.

Depreciation on buildings acquired before July 1996 is computed using the declining balance method.

Depreciation on buildings acquired after July 1996 and on equipment is computed using the straight-line

method. The estimated useful lives are as follows:

Buildings 20-50 years

Buildings on rented land over rental contract

Equipment 5-15 years

Depreciation methods, useful lives and residual values are reviewed at each financial year-end and adjusted

if appropriate. No depreciation is provided on freehold land or assets under construction


5.10 Goodwill and intangible assets

Goodwill

Goodwill that arises upon the acquisition of subsidiaries is included in goodwill and intangible assets. The

measurement of goodwill at initial recognition is described in note 5.1. Subsequent to initial recognition,

goodwill is measured at cost less accumulated impairment losses.

Other intangible assets

Other intangible assets and have finite useful lives are measured at cost less accumulated amortisation and

accumulated impairment losses.

Subsequent expenditure

Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the

specific asset to which it relates. The other subsequent expenditure is recognised in expenses as incurred.

Amortisation

Amortisation is charged to the statements of comprehensive income on a straight-line basis over the

estimated useful lives of intangible assets, other than goodwill, from the date that they are available for use,

since this most closely reflects the expected pattern of consumption of the future economic benefits

embodied in the asset, unless such lives are indefinite. Intangible assets with an indefinite useful life are

systematically tested for impairment at each reporting date. Other intangible assets are amortised from the

date they are available for use. The estimated useful lives are as follows

Software licenses 5-15 years

Deferred underwriting license fee and deferred stock exchange membership fee 5 years

Amortisation methods, useful lives and residual values are reviewed at each financial year-end and adjusted

if appropriate.

5.11 Leasehold

Leasehold is presented at cost net accumulated amortisation. The amortisation is calculated using the

straight-line method over the lease periods.

5.12 Investment Property

Investment property consists of buildings and areas for rent of the Bank and subsidiaries. Investment

property is measured at cost on initial recognition and subsequently at fair value and is presented as part of

other assets. Changes in fair value are recognised in the statements of comprehensive income.


5.13 Impairment

The carrying amounts of the Bank and subsidiaries’ assets are reviewed at each reporting date to determine

whether there is any indication of impairment. If any such indication exists, the assets’ recoverable amounts

are estimated. For goodwill and intangible assets that have indefinite useful lives or are not yet available for

use, the recoverable amount is estimated each year at the same time.

An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit exceeds its

recoverable amount. The impairment loss is recognised in the statements of comprehensive income unless it

reverses a previous revaluation credited to equity, in which case it is charged to equity and other


When a decline in the fair value of an available-for-sale financial asset has been recognised directly in equity

and other comprehensive income and there is objective evidence that the value of the asset is impaired, the

cumulative loss that had been recognised directly in equity and other comprehensive income is recognised

in the statements of comprehensive income even though the financial asset has not been derecognised.

The amount of the cumulative loss that is recognised in the statements of comprehensive income is the

difference between the carrying amount and current fair value, less any impairment loss on that financial

asset previously recognised in the statements of comprehensive income.

Calculation of recoverable amount

The recoverable amount of held-to-maturity securities and receivables carried at amortised cost is

calculated as the present value of the estimated future cash flows discounted at the original effective interest

rate. Receivables with a short duration are not discounted.

The recoverable amount of available-for-sale financial assets is calculated by reference to the fair value.

The recoverable amount of a non-financial asset is the greater of the asset’s value in use and fair value less

costs to sell. 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. For an asset that does not generate cash inflows largely independent of those

from other assets, the recoverable amount is determined for the cash-generating unit to which the asset

belongs.


An impairment loss in respect of goodwill is not reversed. Impairment losses recognised in prior periods in

respect of other non-financial assets are assessed at each reporting date for any indications that the loss

has decreased or no longer exists. An impairment loss is reversed if there has been a change in the

estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that

the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of

depreciation or amortisation, if no impairment loss had been recognised.

5.14 Interest-bearing liabilities

Interest-bearing liabilities are recognised initially at fair value less attributable transaction charges.

Subsequent to initial recognition, interest-bearing liabilities are stated at amortised cost with any difference

between cost and redemption value being recognised in the statements of comprehensive income over the

period of the borrowings on an effective interest basis.


5.15 Provisions

A provision is recognised in the statement of financial position when the Bank has a present legal or

constructive obligation as a result of a past event that can be estimated reliably, and it is probable that an

outflow of economic benefits will be required to settle the obligation. Provisions are determined by

discounting the expected future cash flows at a pre-tax rate the reflects current market assessments of the

time value of money and the risks specific to the liability. The unwinding of the discount is recognised as

finance cost.

Provisions for commitments not recognised in the statements of financial position relate to credit risk

transactions ie., Avals on bills, Acceptances, Letters of Indemnity - Borrowing, Other Guarantees and Letters

of Credit, etc. A provision is recognised when the transactions relate to loans that are classified as sub-

standard, doubtful, doubtful of loss and loss assets. The provisions have been specifically determined by

using the same rate as the allowance for doubtful accounts on each of those loans.

Reversals of impairment

An impairment loss in respect of a financial asset is reversed if the subsequent increase in recoverable

amount can be related objectively to an event occurring after the impairment loss was recognised in the

statements of comprehensive income. For financial assets carried at amortised cost, the reversal is

recognised in the statements of comprehensive income. For available-for-sale financial assets, the reversal

is recognised in other comprehensive income.


5.16 Life policy reserve

a) The life policy reserve represents the accumulated total liability for policies in force on the reporting date.

The life policy reserve is calculated according to the procedures prescribed by the Regulation on Life

Assurance Policy Reserve as promulgated by the Ministry of Commerce on 23 November 2001, and is

based on current assumptions.

The main assumptions used relate to mortality and interest rate. The life insurance subsidiary uses mortality

tables and interest rates as announced by the Office of Insurance Commission, increased with a margin for

risk.

b) For accident and group insurance, unearned premium reserve is set aside at the full amount of unearned

premium.

5.17 Benefit payments to life policies

Benefit payments to life policies are recorded when notices of the claims are received or when policies reach

maturity.

5.18 Derivatives

Trading Derivatives: Trading derivatives are carried at fair value which is determined based upon liquid

(observable) market prices, reference to exchange traded prices, broker/dealer quotations, prices of other

similar transactions or prices derived by using a valuation technique incorporating observable market data

which is adjusted with counterparty credit risk and other risks to reflect liquidity and future operational cost.

The changes in fair value of both realized and unrealized gains or losses are recognised in the statements of

comprehensive income as part of gain on trading and foreign exchange transactions against assets or

liabilities in the statements of financial position so that the derivative assets/liabilities represent their fair

value at the reporting date.

Hedging Derivatives: The Bank manages its banking exposures to market rate movements through the use

of derivatives, including interest rate swaps, interest rate future and forward exchange contracts. Gains or

losses resulting from the changes in fair values of contracts are recognised in accordance with the standard

accounting treatment for income or expenses on hedged items as follows:


1. Where hedged items are carried at fair value, hedging instruments are carried at fair value

consistently.

2. Where hedged items are carried on an accrual basis, then hedging instruments carry the accrual

consistently.

The Bank recognised and eliminated such items on this financial statements by Trade Date method.

5.19 Hybrid Instrument

Hybrid Instruments: include a non-derivative host contract and an embedded derivative. The host contract

shall be accounted for under the classification of the host contract. An embedded derivative shall be

separated from the host contract and accounted for as a derivative which is carried at fair value, if and only

if:

1. The economic characteristics and risks of the host contract and the embedded derivative are not

closely related;

2. A separate instrument with the same terms as the embedded derivative would meet the definition

of a stand-alone derivative; and

3. The hybrid instrument is not recognised at fair value through the statements of comprehensive

income.

If an embedded derivative is not separated, the hybrid instrument shall be accounted for under the

classification of the host contract.

Changes in the fair value of separated embedded derivatives are recognised in the statements of


Structured Note: is a hybrid instrument, which includes deposit or borrowing transaction and embedded

derivative. The Bank’s management approach with regard to the accounting and assessment of fair value of

deposit and borrowing transactions with embedded derivatives (structured note) are consistent with those of

International Accounting Standard No. 39 (IAS 39) and the BoT notification number SOR NOR SOR 2/2554,

dated 24 June 2011, titled “Permission for Commercial Banks to Undertake Deposit or Borrowing

Transactions with Embedded Derivatives”, which requires commercial banks to apply IAS 39 to structured

note products. The Bank has an option to classify the structured note as financial liabilities designated at

fair value through profit or loss when


1. It eliminates or significantly reduces a measurement or recognition inconsistency that would

otherwise arise from measuring assets or liabilities or recognising the gains and losses on them

on a different basis; or

2. It is a management tool for risk management and investment, in accordance with

- Documented risk management or investment strategy

- Group of financial assets or financial liabilities managed and their performance evaluated on

a fair value basis; and

3. It relates to financial instruments containing one or more embedded derivatives that significantly

modify the cash flows resulting from those financial instruments and meets the above criteria for

separation of the embedded derivative from the host contract.

Changes in the fair value of financial liabilities designated at fair value through profit or loss are recognised

in the statements of comprehensive income as gain or loss on financial liabilities designated at fair value

through profit or loss with the corresponding entry to liabilities in the statements of financial position. The fair

value designation, once made, is irrevocable.

The Bank will comply with requirements of hybrid instrument if the Bank does not choose on criteria for fair

value through profit or loss upon designation are not met.

Day One Profit or Loss: Gains or losses from trading derivatives are recognised at inception in the

statements of comprehensive income when the fair value of those derivatives are determined based upon

observable market data or supported by comparison to other observable market transactions, or based

upon a valuation technique incorporating observable market data. The Bank amortizes initial gains or losses

on trading transactions on a straight-line basis or on an effective interest rate basis over the life of the

contract when the fair value of those trading derivatives are based upon unobservable market data or when

they gains or losses on hybrid instruments. The unamortised gains or losses are recognised in the

statements comprehensive of income when the market data becomes observable.



5.20 Employee benefits

Provident fund

The Bank established a provident fund under the Provident Fund Act (B.E. 2530), and registered this Fund

with the Ministry of Finance on 16 August 1994. According to the Fund’s Articles, every employee is entitled

to apply for membership, and each member must contribute to the Fund at the rate of 3% of their basic

salary, while the Bank contributes an additional 3.0% - 4.5%. Upon termination of employment, employees

are entitled to receive this benefit except when terminated “without compensation”.

Provision for retirement benefits

Under the labor laws and the Bank and its subsidiaries’ employment policy, all employees are entitled to

severance pay upon retirement.

The Bank and its subsidiaries determines the net obligation in respect of defined retirement by using

historical data in estimating the amount of future benefits that employees have earned in return for their

service in the current and prior periods. The discount rate is determined by reference to market yields on

high quality government bonds. The provision for retirement benefit is calculated by professional actuary

using The Projected Unit Credit Method and presented as part of provision.

The Bank and its subsidiaries recognise all acturial gains and losses in other comprehensive income and all

expenses related to provision for retirement benefits are recognized as personnel expenses in the statement

of comprehensive income.

Short-term employee benefits

Short-term employee benefits are expensed as the related service is provided.

A liability is recognised for the amount expected to be paid under short-term cash bonus or profit-sharing

plans if the Bank and subsidiaries have a present legal or constructive obligation to pay this amount as a

result of past service provided by the employee, and the obligation can be estimated reliably.


5.21 Recognition of income

Interest and discount income on loans are recognised on an accrual basis, except when interest payments

are in arrears for more than three months when, regardless of collateral, the cash basis is adopted.

In compliance with the BoT’s regulation, the Bank reverses accrued interest receivable on loans for which

repayments are more than three months in arrears.

The asset management subsidiary recognises interest income on investments in receivables and loans on a

cash basis.

Income from factoring business is recognised on an accrual basis.

The lease income of subsidiaries is recognised as follows:

- Income under finance lease agreements is recognised on the basis of installment payments due by

using the effective interest rate method, calculated from the balance of the net investment in each

installment. When installment payments are in arrears for more than three months, the cash basis is

adopted.

- Income under operating lease agreements is recognised on the basis of installment payments due.

When installment payments are in arrears for more than three months, the cash basis is adopted.

Premium income is recognised as income when underwriting of the insurance is approved. Premium due

and uncollected at the reporting date is recognised as income only if the policy is still in force, and is

calculated based on the persistency rate.

5.22 Recognition of interest expense

Interest expense is recognised on an accrual basis.


5.23 Income tax

Income tax expenses for the year comprises current and deferred tax. Current and deferred tax are

recognised in profit or loss except to the extent that it relates to items recognised directly in equity, in which

case it is recognised in equity or in other comprehensive income.

Current tax

Current tax is the expected tax payable on the taxable income or loss for the year, using tax rates enacted

or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous

years.

Deferred tax

Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and

liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is

measured at the tax rates that are expected to be applied to the temporary differences when they reverse,

using tax rates enacted or substantively enacted at the reporting date.

The Bank and its subsidiaries takes into account the impact of uncertain tax positions in determining the

amount of income tax. The Bank and its subsidiaries believes that its accruals for tax liabilities are adequate

for all open tax years based on its assessment of many factors, including interpretations of tax law, prior

experience and a series of judgements about future events; such changes to tax liabilities will impact tax

expense in the period that such a determination is made.

Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities

and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity.

A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available

against which the temporary differences can be utilised. Deferred tax assets are reviewed at each reporting

date and reduced to the extent that it is no longer probable that the related tax benefit will be realized.


5.24 Earnings per share

Basic earnings per share is calculated by dividing the profit or loss attributable to equity holders of the Bank

on ordinary shareholders of the Bank by the weighted average number of ordinary shares in issue during the

period.

5.25 Translation of foreign currencies

Assets and liabilities denominated in foreign currencies are translated into Thai Baht at the rates of

exchange prevailing on the dates of the transactions. Assets and liabilities including the statement of

financial position of the Bank’s foreign branches that are denominated in foreign currencies at the reporting

date are translated into Thai Baht at the reference rates announced by the BoT on that date. The statements

of comprehensive income of the Bank’s foreign branches are translated into Thai Baht at the reference rates

announced by the BoT at the transaction date rate.

Exchange gains or losses on translation is recognised in the statements of comprehensive income or

directly in equity and other comprehensive income, according to the gains or losses on change in fair value

of the related assets and liabilities.

Exchange gains or losses on transactions in foreign currencies and foreign exchange differences arising on

the translation of financial statements of the Bank’s foreign branches are recognised in the statements of


5.26 Trade Date – Settlement Date policy

Trade Date policy means the Bank recognises and presents such items on Financial Statements on the date

both counterparties decide to mutually commit on sale agreement, eliminates those items on Financial

Statements when the sale agreement is matured or cancelled as well as recognises Gain or Loss from such

agreement.

Settlement Date policy means the Bank recognises and presents such items on Financial Statements on the

date cash settlement or asset delivery and recognises gain or loss from such agreement.


6 CAPITAL REQUIREMENTS

The ratios of capital to assets (Capital Adequacy Ratio) as of 31 December 2011 and 2010 were calculated from

the financial statements of the Bank. The Bank has chosen to adopt the Standardized Approach in compliance

with the Basel II Accord, which is consistent with BoT requirements.

(Million Baht)

2011 2010

Tier 1 Capital

Issued and fully paid up share capital, premiums on share capital 42,036 42,036

Legal reserves 3,050 3,050

Net profit after appropriation 83,833 67,397

Less Deferred tax assets (6,690) (6,547)

Investments in subordinated debt of other financial

institutions (Already included in their capital requirements)

(1)

-

Total Tier 1 Capital Base 122,228 105,936

Tier 2 Capital

Surplus on land revaluation 4,544 4,585

Surplus on premises revaluation 1,938 2,023

Surplus on marketable equity securities-available-for-sale

investments revaluation

973

616

Provision for normal assets 15,866 14,140

Subordinated debentures 29,698 30,569

Less Investments in subordinated debt of other financial

institutions (Already included in their capital requirements)

(1)

-

Total Tier 2 Capital Base 53,018 51,933

Total Capital Base 175,246 157,869

Total Risk-Weighted Assets 1,269,282 1,131,218


Capital adequacy ratio

Tier-1 Capital ratio

The BoT’s regulations require that banks registered in Thailand maintain a capital adequacy ratio of not less than 8.5%

and that tier-1 capital ratio must not be less than 4.25% of such assets and contingencies. Capital adequacy ratios

maintained by the Bank were as follows:

In accordance with the BoT’s directive number SOR NOR SOR 25/2552, dated 14 December 2009, titled “The disclosure

of capital requirements of commercial banks” requires the Bank to disclose the capital requirements as of 31 December

2011 through the website “http://www.kasikornbank.com/EN/Investors/FinanInfoReports/Pages/FinancialReports.aspx”

under the investor relations section within 4 months after 31 December 2011.

In accordance with the BoT’s directive number SOR NOR SOR 6/2553, dated 18 June 2010, titled “Prudential regulation on

consolidated supervision”, requires KASIKORNBANK FINANCIAL CONGLOMERATE to disclose the capital requirements as

of 31 December 2011 through the website “http://www.kasikornbank.com/EN/Investors/FinanInfoReports/Pages/Financial

Reports.aspx” under the investor relations section within 4 months after 31 December 2011.

7 SUPPLEMENTARY INFORMATION OF CASH FLOWS

7.1 Significant non-cash items

Significant non-cash items for the years ended 31 December 2011 and 2010 are as follows:

Percentage

2011 2010

13.81 13.96

9.63 9.37

(Million Baht)

Revaluation surplus on available-for-sale investments 841 856 900 58

The realized portion of the appraised surplus on asset revaluation (138) (117) (138) (117)

Foreclosed properties arising from auction and debt settlement 3,996 4,653 3,793 4,253

Consolidated The Bank

2011 2010 2011 2010


Consolidated

2011 2010

At call Term Total At call Term Total

1. Domestic

The BoT and FIDF 827 78,200 79,027 7,034 74,480 81,514

Commercial banks 500 14,627 15,127 308 2,120 2,428

Specialized financial institutions 53 60 113 2 200 202

Other financial institutions 309 465 774 250 1,360 1,610

Total 1,689 93,352 95,041 7,594 78,160 85,754

Add Accrued interest receivable 5 100 105 3 20 23

Less Allowance for doubtful accounts (3) (41) (44) (5) (51) (56)

Total Domestic 1,691 93,411 95,102 7,592 78,129 85,721

2. Foreign

US Dollars 5,975 1,598 7,573 6,213 1,509 7,722

Japanese Yen 113 - 113 92 - 92

Euro 752 - 752 433 - 433

Other currencies 838 7,559 8,397 694 2,888 3,582

Total 7,678 9,157 16,835 7,432 4,397 11,829

Add Accrued interest receivable - 48 48 - 13 13

Less Allowance for doubtful accounts - (16) (16) (3) - (3)

Total Foreign 7,678 9,189 16,867 7,429 4,410 11,839

Total Domestic and Foreign 9,369 102,600 111,969 15,021 82,539 97,560

8 INTERBANK AND MONEY MARKET ITEMS - NET (ASSETS)

Interbank and money market items - net (assets) as of 31 December 2011 and 2010 consisted of:

(Million Baht)


The Bank

2011 2010


1. Domestic

The BoT and FIDF 827 78,000 78,827 7,034 74,480 81,514

Commercial banks 50 14,051 14,101 95 1,450 1,545

Other financial institutions 309 20 329 516 1,360 1,876

Total 1,186 92,071 93,257 7,645 77,290 84,935


Less Allowance for doubtful accounts (3) (11) (14) (5) (20) (25)

Total Domestic 1,183 92,155 93,338 7,640 77,289 84,929

2. Foreign

US Dollars 5,975 1,598 7,573 6,213 1,509 7,722

Japanese Yen 113 - 113 92 - 92

Euro 752 - 752 433 - 433

Other currencies 838 7,559 8,397 694 2,888 3,582

Total 7,678 9,157 16,835 7,432 4,397 11,829


Less Allowance for doubtful accounts - (16) (16) (3) - (3)

Total Foreign 7,678 9,189 16,867 7,429 4,410 11,839


(Million Baht)


Consolidated

2011

Fair Value Notional amount classified by maturity

Type of risk Assets Liabilities Up to 1 year Over 1 year Total

Exchange rate 17,317 16,880 940,181 104,610 1,044,791

Interest rate 9,586 10,444 232,153 700,119 932,272

Others

- Commodities 119 112 4,832 53 4,885

- Equities 15 - - 46 46

- Others (311) - - - -

Total 26,726 27,436 1,177,166 804,828 1,981,994

Consolidated

2010



Exchange rate 17,394 16,398 730,030 72,283 802,313

Interest rate 11,075 11,193 197,032 575,265 772,297

Others

- Commodities 811 808 4,532 - 4,532

- Credit - - 100 - 100

- Equities 12 - - 53 53

- Others (232) - - - -

Total 29,060 28,399 931,694 647,601 1,579,295

(Million Baht)

9 DERIVATIVES

9.1 Derivatives held for trading

Fair value and notional amount classified by type of risks as of 31 December 2011 and 2010 consisted of:

(Million Baht)


The Bank

2011



Exchange rate 17,321 16,880 940,391 104,610 1,045,001

Interest rate 9,586 10,444 232,153 700,119 932,272

Others

- Commodities 119 112 4,832 53 4,885

- Equities 15 - - 46 46

- Others (311) - - - -

Total 26,730 27,436 1,177,376 804,828 1,982,204

(Million Baht)

(Million Baht)

The Bank

2010



Exchange rate 17,394 16,397 729,911 72,283 802,194

Interest rate 11,075 11,193 197,032 575,265 772,297

Others

- Commodities 811 808 4,532 - 4,532

- Credit - - 100 - 100

- Equities 12 - - 53 53

- Others (232) - - - -

Total 29,060 28,398 931,575 647,601 1,579,176


Proportion of the notional of derivative transactions classified by counter parties as of 31 December 2011 and 2010

consisted of:


2011 2010 2011 2010

COUNTERPARTY Proportion (%) Proportion (%)

Financial institution 81 79 81 79

Company - other 19 21 19 21

Total 100 100 100 100

10 INVESTMENTS - NET

10.1 Type of investments

Investments as of 31 December 2011 and 2010 consisted of:

(Million Baht)


2011 2010 2011 2010 Fair Value Fair Value Fair Value Fair Value

1. Trading investments 1.1 Government and state enterprise securities 3,846 14,540 3,846 14,540 1.2 Private enterprise debt instruments 1,433 784 1,433 784 1.3 Marketable equity securities - domestic 313 316 276 274

Total 5,592 15,640 5,555 15,598

2.1 Government and state enterprise securities 148,446 143,586 143,046 139,662 2.2 Private enterprise debt instruments 81 1,234 - 839 2.3 Foreign debt instruments 8,464 6,141 6,058 5,509 2.4 Marketable equity securities - domestic 10,809 11,601 1,359 1,316 2.5 Marketable equity securities - overseas 1,358 345 1,048 345 2.6 Other 200 - - -

Total 169,358 162,907 151,511 147,671

2. Available-for-sale investments



(Million Baht)

2011 2010 2011 2010 Cost Value/

Amortised CostValue

Cost Value/ Amortised Cost

Value


Value


Value

3. Held-to-maturity debt instruments 3.1 Government and state enterprise securities 54,895 51,477 1,237 3,261 3.2 Private enterprise debt instruments 31,107 17,905 583 583 3.3 Foreign debt instruments 2,001 2,059 - 93 3.4 Investments in receivables 63 485 50 466 Total 88,066 71,926 1,870 4,403 Less Allowance for impairment (647) (902) (627) (881) Total 87,419 71,024 1,243 3,522 4. General investments 4.1 Non-marketable equity securities - domestic 1,554 1,917 1,261 1,616 4.2 Non-marketable equity securities - overseas 437 307 437 307 Total 1,991 2,224 1,698 1,923 Less Allowance for impairment (217) (715) (100) (599) Total 1,774 1,509 1,598 1,324 Total Investments - net 264,143 251,080 159,907 168,115

As of 31 December 2011 and 2010, investments in held-to-maturity debt instruments, which are government and state

enterprise securities, included promissory notes from Thai Asset Management Corporation of Baht 173 million and

Baht 2,261 million, respectively.

10.2 Revaluation surplus on available-for-sale investments

Revaluation surplus on available-for-sale investments as of 31 December 2011 and 2010 consisted of:

2011 2010 2011 2010

Revaluation surplus on

available-for-sale investments

Debt instruments 263 40 251 57

Equity securities 2,378 1,760 1,664 959

Total 2,641 1,800 1,915 1,016

(Million Baht)



Consolidated

(Million Baht)

2011 2010 Maturity Maturity

10.3 Maturity for debt instruments

As of 31 December 2011 and 2010 a maturity analysis for debt instruments resulted in the following:


1.1 Government and state

enterprise securities

53,155

92,317

2,469

147,941

44,596

94,237

4,585

143,418

1.2 Private enterprise debt

instruments

4

18

102

124

561

625

96

1,282

1.3 Foreign debt instruments 638 6,774 1,007 8,419 452 4,985 654 6,091

Total 53,797 99,109 3,578 156,484 45,609 99,847 5,335 150,791

(Less) Add Allowance for

revaluation

(93)

491

155

553

(63)

(24)

303

216

Less Allowance for impairment - - (46) (46) - - (46) (46)

Total 53,704 99,600 3,687 156,991 45,546 99,823 5,592 150,961

2. Held-to-maturity debt

instruments



617

2,471

51,807

54,895

410

5,171

45,896

51,477


instruments

1,941

7,722

21,444

31,107

755

3,678

13,472

17,905

2.3 Foreign debt instruments - 793 1,208 2,001 93 476 1,490 2,059

2.4 Investments in receivables 58 5 - 63 472 13 - 485

Total 2,616 10,991 74,459 88,066 1,730 9,338 60,858 71,926

Less Allowance for impairment (48) - (599) (647) (303) - (599) (902)

Total 2,568 10,991 73,860 87,419 1,427 9,338 60,259 71,024

Total Debt Instruments 56,272 110,591 77,547 244,410 46,973 109,161 65,851 221,985

1 year

Over

1 year to

5 years

Over

5 years

Total

1 year

Over

1 year to

5 years

Over

5 years

Total


(Million Baht)




50,215

91,499

1,029

142,743

42,952

93,512

3,184

139,648


instruments

-

-

46

46

240

603

46

889

1.3 Foreign debt instruments 638 5,233 159 6,030 452 4,985 - 5,437

Total 50,853 96,732 1,234 148,819 43,644 99,100 3,230 145,974

(Less) Add Allowance for

revaluation

(93)

385

39

331

(66)

(120)

268

82

Less Allowance for impairment - - (46) (46) - - (46) (46)

Total 50,760 97,117 1,227 149,104 43,578 98,980 3,452 146,010

2. Held-to-maturity debt

instruments



63

1,081

93

1,237

-

3,261

-

3,261


instruments

-

-

583

583

-

-

583

583

2.3 Foreign debt instruments - - - - 93 - - 93

2.4 Investments in receivables 45 5 - 50 459 7 - 466

Total 108 1,086 676 1,870 552 3,268 583 4,403

Less Allowance for impairment (44) - (583) (627) (298) - (583) (881)

Total 64 1,086 93 1,243 254 3,268 - 3,522

Total Debt Instruments 50,824 98,203 1,320 150,347 43,832 102,248 3,452 149,532

The Bank

2011 2010

Maturity Maturity

1 year

Over

1 year to

5 years

Over

5 years

Total

1 year

Over

1 year to

5 years

Over

5 years

Total


10.4 Investments in other companies having a going concern

As of 31 December 2011 and 2010, investments held by the Bank and its subsidiaries in financial institutions

that were closed on 8 December 1997, or investments in listed companies which meet SET’s criteria for

delisting, and are in default on debt instruments, or companies whose ability to continue as a going concern is

uncertain, or unlisted companies whose financial position and operating results are the same as companies

which meet SET’s criteria for delisting or investments in receivables with uncertainty in settlement or in default,

were as follows:

(Million Baht) 2011


Cost Value/

Book Value

Fair Value

Allowance for

Impairment

Cost Value/

Book Value

Fair Value

Allowance for

Impairment

1. Closed financial institutions

- Debt Instrument 130 - (130) 130 - (130)

2. Listed companies which meet SET’s

criteria for delisting, and are in

default on debt instruments

- Debt Instrument 46 - (46) 46 - (46)

3. Companies whose ability to continue

as a going concern is uncertain, or

unlisted companies whose financial

position and operating results are

the same as companies which meet

SET’s criteria for delisting

- Equity Securities 423 381 (42) 423 381 (42)

- Debt Instrument 453 - (453) 453 - (453)

4. Investments in receivables with

uncertainty in settlement or in default

63

15

(48)

50

6

(44)

Total 1,115 396 (719) 1,102 387 (715)


(Million Baht)

2010 Consolidated The Bank

Cost Value/

Book Value

Fair Value

Allowance for

Impairment

Cost Value/

Book Value

Fair Value

Allowance for

Impairment

1. Closed financial institutions

- Debt Instrument 130 - (130) 130 - (130)

2. Listed companies which meet SET’s

criteria for delisting, and are in

default on debt instruments

- Debt Instrument 46 - (46) 46 - (46)

3. Companies whose ability to continue

as a going concern is uncertain, or

unlisted companies whose financial

position and operating results are

the same as companies which meet

SET’s criteria for delisting

- Equity Securities 293 - (293) 293 - (293)

- Debt Instrument 453 - (453) 453 - (453)

4. Investments in receivables with

uncertainty in settlement or in default

485

183

(302)

466

168

(298)

Total 1,407 183 (1,224) 1,388 168 (1,220)

Consolidated The Bank 2011 2010 2011 2010 Manufacturing and commerce 60 80 - - Property development and construction 592 496 592 496 Infrastructure and services 1 1 1 1 Others 895 1,155 138 285 Total 1,548 1,732 731 782

(Million Baht)

10.5 Investments over 10% held by the Bank and its subsidiaries

As of 31 December 2011 and 2010, investments held by the Bank and its subsidiaries, that were more than

10% of those companies’ shares and were not investments in subsidiaries and associated companies,

classified by industry were as follows:


Consolidated

% Shareholding

Direct and indirect Cost method Equity method

Type of

Business

Type of

Share

2011

2010

2011

2010

2011

2010

Associated companies

Goco Co., Ltd.1) Information and

communication

System

Development

Ordinary

22.65%

30.74%

4

5

4

5

Processing Center Co., Ltd. Service Ordinary 30.00% 30.00% 15 15 117 109

Rural Capital Partners Co., Ltd. 2) Venture Capital Ordinary - 27.50% - 2 - 2

Lawson-Marsh Events Co., Ltd. 1) Professional

Conference

Organizer

Ordinary

35.71%

35.71%

5

5

5

5

Humanica Co., Ltd. 1) Software design

and development

Ordinary

47.60%

21.60%

26

13

26

13

2Spot Communications Co., Ltd. 1) Character

design and

Development

Ordinary

6.63%

20.17%

-

5

-

5

Total 50 45 152 139

Less Allowance for impairment - (1) - (1)

Investments in Associated Companies - Net 50 44 152 138

1) The Bank holds shares indirectly through K-SME Venture Capital Co., Ltd. 2) The Bank sold all investments in Rural Capital Partnurs Co., Ltd. On 22 September 2011.

On 23 March 2011, 2Spot Communications Co., Ltd. repurchased their stocks from K-SME Venture Capital

Co., Ltd., thus the percent of indirect shareholding via K-SME decreased from 20.17% to 6.63%. As the result,

K-SME transferred such investment from investments in associates to general investments.

11 INVESTMENTS IN SUBSIDIARIES AND ASSOCIATED COMPANIES - NET

11.1 Type of investments in subsidiaries and associated companies

As of 31 December 2011 and 2010, investments in ordinary shares of subsidiaries and associated

companies were as follows:

(Million Baht)


Subsidiaries

KASIKORN ASSET MANAGEMENT CO., LTD. Mutual Fund

Management

Ordinary

100.00%

100.00%

2,003

2,003

882

826

KASIKORN RESEARCH CENTER CO., LTD. Service Ordinary 100.00% 100.00% 6 6 - -

KASIKORN SECURITIES PCL Securities

Business

Ordinary

99.99%

99.99%

1,512

1,312

201

-

KASIKORN LEASING CO., LTD. Lending Ordinary 100.00% 100.00% 900 900 - -

KASIKORN FACTORY & EQUIPMENT CO., LTD. Lending Ordinary 100.00% 100.00% 237 237 - -

Phethai Asset Management Co., Ltd. Asset

Management

Ordinary

100.00%

100.00%

3,350

5,000

-

-

KHAO KLA Venture Capital Management

Co., Ltd.

Venture Capital

Management

Ordinary

100.00%

100.00%

-

-

-

-

K-SME Venture Capital Co., Ltd. Venture Capital Ordinary 100.00% 100.00% 200 200 - -

Progress Software Co., Ltd. Service Ordinary 100.00% 100.00% 19 19 7 25

Progress Plus Co., Ltd. Service Ordinary 100.00% 100.00% 4 4 - 3

Progress Appraisal Co., Ltd. Service Ordinary 100.00% 100.00% 5 5 33 20

Progress Gunpai Co., Ltd. Service Ordinary 100.00% 100.00% 21 21 50 50

Progress Management Co., Ltd. Service Ordinary 100.00% 100.00% 6 6 1 1

Progress Facilities Management Co., Ltd. Service Ordinary 100.00% 100.00% 5 5 11 7

Progress Service Co., Ltd. Service Ordinary 100.00% 100.00% 2 2 21 16

Progress Land and Buildings Co., Ltd. Property

Development

Ordinary

100.00%

100.00%

160

160

-

-

Progress Storage Co., Ltd. Service Ordinary 100.00% 100.00% 3 3 9 8

Progress HR Co., Ltd. Service Ordinary 100.00% 100.00% 1 1 20 19

Progress Service Support Co., Ltd. Service Ordinary 100.00% 100.00% 4 4 7 3

Progress Collection Co., Ltd. Service Ordinary 100.00% 100.00% 5 5 2 -

Progress Training Co., Ltd. Service Ordinary 100.00% 100.00% 2 2 1 1

Progress Multi Insurance Broker Co., Ltd. Insurance

Broker

Ordinary

100.00%

100.00%

-

5

-

-

Thanyathanathavee Co., Ltd. Investment in

other

companies

Ordinary

100.00%

100.00%

1,149

1,149

-

-

Thanyathamrongkij Co., Ltd. Investment in

other

companies

Ordinary

100.00%

100.00%

1,149

1,149

-

-

Thanyanithiwattana Co., Ltd. Investment in

other

companies

Ordinary

100.00%

100.00%

2,204

2,204

67

-

Ruang Khao Phuean Thai Joint Investment

Agreement

Investment in

other

companies

Ordinary

100.00%

100.00%

-

-

-

-

Muangthai Group Holding Co., Ltd. Holding Ordinary 51.00% 51.00% 3,077 3,077 75 141

Muang Thai Life Assurance Co., Ltd. Life Insurance Ordinary 38.25% 38.25% - - - -

Muangthai Broker Co., Ltd. Insurance

Broker

Ordinary

49.98%

49.98%

-

-

-

-

(Million Baht)

The Bank

% Shareholding

Direct and indirect Cost method Dividend income

Type of

Business

Type of

Share

2011

2010

2011

2010

2011

2010

Mutual Fund

Management

Service

Securities

Business

Lending

Lending

Asset

Management

Venture Capital

Management

Venture Capital

Service

Service

Service

Service

Service

Service

Service

Property

Development

Service

Service

Service

Service

Service

Ordinary

Ordinary

Ordinary

Ordinary

Ordinary

Ordinary

Ordinary

Ordinary

Ordinary

Ordinary

Ordinary

Ordinary

Ordinary

Ordinary

Ordinary

Ordinary

Ordinary

Ordinary

Ordinary

Ordinary

Ordinary

100.00%

100.00%

99.99%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

99.99%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

2,003

6

1,512

900

237

3,350

-

200

19

4

5

21

6

5

2

160

3

1

4

5

2

2,003

6

1,312

900

237

5,000

-

200

19

4

5

21

6

5

2

160

3

1

4

5

2

882

-

201

-

-

-

-

-

7

-

33

50

1

11

21

-

9

20

7

2

1

826

-

-

-

-

-

-

-

25

3

20

50

1

7

16

-

8

19

3

-

1

Insurance

Broker

Ordinary

100.00%

100.00%

-

- 5

-

Investment in

other

companies

Investment in

other

companies

Investment in

other

companies

Investment in

other

companies

Holding

Life Insurance

Insurance

Broker

Ordinary

Ordinary

Ordinary

Ordinary

Ordinary

Ordinary

Ordinary

100.00%

100.00%

100.00%

100.00%

51.00%

38.25%

49.98%

100.00%

100.00%

100.00%

100.00%

51.00%

38.25%

49.98%

1,149

1,149

2,204

-

3,077

-

-

1,149

1,149

2,204

-

3,077

-

-

-

-

67

-

75

-

-

-

-

-

-

141

-

-


The recording of investments in associated companies using the equity method in the consolidated financial

statements is based on financial information obtained from audited or reviewed financial statements and from

management information that has not been audited or reviewed by the auditors.

11.2 Financial positions and results of operations of the Bank’s subsidiaries and associated companies

The summary of financial positions and results of operations of the Bank’s subsidiaries and associated

companies are set out below:

(Million Baht) Statements of Financial Position 31 December 2011 31 December 2010

Total

Assets Total

LiabilitiesTotal

Equity Total

Assets Total

LiabilitiesTotal

Equity Subsidiaries K Companies 79,212 74,146 5,066 65,790 61,678 4,112 Companies in MTGH Group 119,397 101,644 17,753 96,883 81,366 15,517 Phethai – AMC 1,871 44 1,827 3,502 52 3,450 Support Service Providers to KASIKORNBANKGROUP (P Companies) and others

10,958

772

10,186

11,053

1,078

9,975

Total 211,438 176,606 34,832 177,228 144,174 33,054 Associated Companies 502 108 394 413 42 371

(Million Baht)

The Bank

% Shareholding

Direct and indirect Cost method Dividend income

Type of

Business

Type of

Share

2011

2010

2011

2010

2011

2010

Associated companies

Processing Center Co., Ltd. Service Ordinary 30.00% 30.00% 15 15 4 4

Rural Capital Partners Co., Ltd. Venture Capital Ordinary - 27.50% - 2 - -

Total 16,039 17,496 1,391 1,124

Less Allowance for impairment (1,913) (1,913)

Investments in Subsidiaries and Associated Companies - Net 14,126 15,583 1,391 1,124


(Million Baht) Statements of Comprehensive Income For the Years Ended 31 December 2011 2010

Operating

Income Operating Expenses Net Profit

Operating Income

Operating Expenses Net Profit

Subsidiaries K Companies 4,940 3,102 1,838 4,303 2,871 1,432 Companies in MTGH Group 6,967* 4,086 2,881 5,426* 3,079 2,347 Phethai – AMC 62 35 27 72 40 32 Support Service Providers to KASIKORNBANKGROUP (P Companies) and others

4,226

3,873

353

3,603

3,368

235

Total 16,195 11,096 5,099 13,404 9,358 4,046 Associated Companies 252 206 46 202 180 22

* Excluding inter-group transactions being dividend from subsidiaries for the years ended 31 December 2011 and 2010 in the amount of Baht 267 million and Baht

1,500 million, respectively.


11.3 Disclosure of Statements of Cash Flows of Asset Management Company (“AMC”)

Phethai Asset Management Company Limited

Statements of Cash Flows

For the Years Ended 31 December 2011 and 2010

Million Baht

2011 2010

CASH FLOWS FROM OPERATING ACTIVITIES

Income before income tax 27 32Add (Less) Adjustments to reconcile income before income tax to net

from operating activities

Interest income from amortisation of revaluation allowance

for debt restructuring

-

(1)

Loss on impairment of properties foreclosed 90 40Reversal of loss on impairment of other assets - (2) Reversal of bad debt and doubtful accounts (45) (1) Loss on debt restructuring 1 1 Gain on transfer of changing account (15) (6) Amortisation of discount on promissory note receivbles (4) (16)Decrease in accrued expenses (1) (1) 53 46Net income from interest (45) (53)Proceeds from interest 45 53Income tax received 4 10 Income from operations before changes in operating assets

and liabilities

57

56


Phethai Asset Management Company Limited

Statements of Cash Flows (Continued)

For the Years Ended 31 December 2011 and 2010

Million Baht

2011 2010

Decrease in operating assets

Investments in receivables 4 51 Loans 122 160 Properties foreclosed 359 962 Other assets 366 6

(Decrease) increase in operating liabilities

Other liabilities (8) 6 Net cash provided by operating activities 900 1,241

CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from disposal of investments in securities 1 1

Net cash provided by investing activities 1 1CASH FLOWS FROM FINANCING ACTIVITIES

Cash paid for share capital decrease (1,650) (998)Net cash used in financing activities (1,650) (998)

Net (decrease) increase in cash (749) 244Cash at the beginning of the year 804 560Cash at the end of the year 55 804



2011 2010 2011 2010

Overdrafts 197,077 183,904 196,678 183,367

Loans 562,656 478,921 625,626 528,760

Bills 328,613 311,741 330,533 313,324

Hire purchase receivables 63,663 53,776 - -

Finance lease receivables 10,956 7,006 - -

Others 54,432 47,233 48,877 42,548

Less Deferred revenue (6,563) (5,600) (395) (291)

Total loans to customers net from

deferred revenue

1,210,834

1,076,981

1,201,319

1,067,708

Add Accrued interest receivables 2,105 1,417 1,896 1,225

Total loans to customers net from

deferred revenue plus accrued

interest receivables

1,212,939

1,078,398

1,203,215

1,068,933

Less Allowance for doubtful accounts

1. Minimum reserve of BoT’s

Regulations - Individual approach

(21,769)

(20,982)

(21,607)

(20,599)

2. Excess allowance (13,385) (11,346) (12,553) (10,600)

3. Credit balance transaction (5) - - -

4. Loan from life insurance business (43) (117) - -

Less Revaluation allowance for

debt restructuring

(5,141)

(4,387)

(5,140)

(4,387)

Total Loans to customers and accrued

interest receivables - net

1,172,596

1,041,566

1,163,915

1,033,347

(Million Baht)

12 LOANS TO CUSTOMERS AND ACCRUED INTEREST RECEIVABLES - NET

Loans to customers and accrued interest receivables - net as of 31 December 2011 and 2010 consisted of:

12.1 Classified by Type of Loans


12.2 Classified by Currencies and Residency of Borrowers

Consolidated

2011 2010

Domestic Foreign Total Domestic Foreign Total

Baht 1,115,815 10,199 1,126,014 1,005,079 6,530 1,011,609

US Dollars 74,713 555 75,268 60,965 528 61,493

Other currencies 6,251 3,301 9,552 3,005 874 3,879

Total 1,196,779 14,055 1,210,834 1,069,049 7,932 1,076,981

(Million Baht)

The Bank

2011 2010


Baht 1,106,300 10,199 1,116,499 995,806 6,530 1,002,336

US Dollars 74,713 555 75,268 60,965 528 61,493


Total 1,187,264 14,055 1,201,319 1,059,776 7,932 1,067,708

(Million Baht)


12.3 Classified by Type of Business and Account Status

Consolidated

2011

Pass

Special

Mention

Sub-

Standard

Doubtful

Doubtful

of Loss

Total

Agriculture and mining 28,035 1,107 71 112 491 29,816

Manufacturing and commerce 590,864 10,988 2,991 3,059 12,440 620,342

Property development and

Construction

71,215

1,411

256

357

1,967

75,206

Infrastructure and services 144,055 2,402 608 1,057 2,471 150,593

Housing loans 190,076 1,105 435 504 1,917 194,037

Others 129,079 1,798 600 591 1,808 133,876

Total 1,153,324 18,811 4,961 5,680 21,094 1,203,870

Credit balance transaction 958

Loan from life insurance business 6,006

Total 1,210,834

(Million Baht)

(Million Baht) Consolidated

2010

Pass

Special

Mention

Sub-

Standard

Doubtful

Doubtful

of Loss

Total




Construction

56,482

1,119

204

319

2,681

60,805


Housing loans 162,266 1,512 621 628 1,694 166,721

Others 111,468 1,853 607 531 1,549 116,008

Total 1,013,625 23,234 3,792 7,099 22,284 1,070,034

Credit balance transaction 1,517

Loan from life insurance business 5,430

Total 1,076,981


(Million Baht)

The Bank

2011

Pass

Special

Mention

Sub-

Standard

Doubtful

Doubtful

of Loss

Total

Agriculture and mining 22,671 743 58 96 480 24,048



Construction

67,233

1,101

245

343

1,735

70,657


Housing loans 190,064 1,102 436 503 1,852 193,957

Others 178,467 917 556 566 1,489 181,995

Total 1,156,789 14,662 4,762 5,437 19,669 1,201,319

(Million Baht) The Bank

2010

Pass

Special

Mention

Sub-

Standard

Doubtful

Doubtful

of Loss

Total




Construction

53,579

977

193

307

2,274

57,330


Housing loans 162,245 1,508 621 628 1,597 166,599

Others 151,012 1,119 561 476 1,290 154,458

Total 1,015,771 20,885 3,628 6,821 20,603 1,067,708


12.4 Classified by Account Status

(Million Baht) Consolidated 2011 Loans and

Accrued Interest Receivables

Net amount used for set the Allowance for Doubtful Accounts

% Used for settingthe Allowance for Doubtful Accounts

Allowance for

Doubtful Accounts1. Minimum reserve of BoT’s Regulations Pass 1,154,958 433,653 1 4,337 Special Mention 18,902 2,848 2 324 Sub-Standard 5,004 3,093 100 3,093 Doubtful 5,684 3,007 100 3,007 Doubtful of Loss 21,234 11,008 100 11,008 Total 1,205,782 453,609 21,769 2. Excess allowance 13,385 3. Credit balance transaction 960 5 4. Loan from life insurance business 6,197 43 Total 1,212,939 35,202

(Million Baht) Consolidated 2010 Loans and

Accrued Interest Receivables

Net amount used for set the Allowance for Doubtful Accounts

% Used for setting the Allowance for Doubtful Accounts

Allowance for

Doubtful Accounts1. Minimum reserve of BoT’s Regulations Pass 1,014,571 373,298 1 3,733 Special Mention 23,366 5,395 2 108 Sub-Standard 3,821 1,448 100 1,447 Doubtful 7,104 3,089 100 3,089 Doubtful of Loss 22,420 12,605 100 12,605 Total 1,071,282 395,835 20,982 2. Excess allowance 11,346 3. Credit balance transaction 1,517 - 4. Loan from life insurance business 5,599 117 Total 1,078,398 32,445


The Bank

2011

Loans and

Accrued Interest

Receivables

Net amount used for

set the Allowance for

Doubtful Accounts

% Used for setting

the Allowance for

Doubtful Accounts

Allowance for

Doubtful Accounts

1. Minimum reserve of BoT’s Regulations

Pass 1,158,427 502,195 1 5,022

Special Mention 14,754 2,735 2 322

Sub-Standard 4,805 3,077 100 3,077

Doubtful 5,440 2,958 100 2,958

Doubtful of Loss 19,789 10,228 100 10,228

Total 1,203,215 521,193 21,607

2. Excess allowance 12,553

Total 34,160

(Million Baht)

The Bank

2010

Loans and

Accrued Interest

Receivables

Net amount used for

set the Allowance for

Doubtful Accounts

% Used for setting

the Allowance for

Doubtful Accounts

Allowance for

Doubtful Accounts

1. Minimum reserve of BoT’s Regulations

Pass 1,016,720 425,942 1 4,259

Special Mention 21,017 5,271 2 106

Sub-Standard 3,656 1,441 100 1,441

Doubtful 6,826 2,957 100 2,957

Doubtful of Loss 20,714 11,836 100 11,836

Total 1,068,933 447,447 20,599

2. Excess allowance 10,600

Total 31,199

(Million Baht)


12.5 Non-performing loans (NPL)

According to the BoT’s directive number SOR NOR SOR 13/2553, dated 3 December 2010, titled “Preparation

and announcement of condensed report of assets and liabilities of commercial banks”.

Non-performing loans (NPL gross) are defined as sub-standard quality loans, being outstanding loans of sub-

standard, doubtful, doubtful of loss and loss loan accounts in accordance with the BoT’s directive number SOR

NOR SOR 31/2551, dated 3 August 2008, titled “Classification and provision criteria of financial institution”.

Non-performing loans, net (NPL net) refers to the non-performing loan value, net of total allowances for doubtful

accounts.

In accordance with the BoT’s regulations, commercial banks are required to report the following information:

- Non-performing loans (NPL gross).

- The ratio of NPL to total loans.

- Non-performing loans, net (NPL net).

- The ratio of total loans, net of allowances for doubtful accounts, which is referred to the ratio of NPL

net, to total loans after deduction of allowances for doubtful accounts.


As of 31 December 2011 and 2010, the Bank and subsidiaries showed non-performing loans (including

financial institutions) to comply with BoT’s regulations, summarized as follows:

(Million Baht)

2011

KASIKORNBANK

Phethai Asset

Management

Other

Consolidated

Non-performing loans, gross

Non-performing loans 29,868 879 989 31,736

Total loans used for NPL gross ratio

calculation(1)

1,295,337

913

71,844

1,297,887(2)

Ratio of total loans 2.31 96.28 1.38 2.45

Non-performing loans, net


Total loans used for NPL net ratio

calculation(1)

1,279,144

680

71,233

1,280,850(2)


(Million Baht)

2010

KASIKORNBANK

Phethai Asset

Management

Other

Consolidated

Non-performing loans, gross

Non-performing loans 31,053 1,208 914 33,175

Total loans used for NPL gross ratio

calculation(1)

1,138,880

1,245

57,874

1,141,206(2)


Non-performing loans, net


Total loans used for NPL net ratio

calculation(1)

1,122,633

948

57,265

1,124,053(2)

Ratio of total loans 1.32 96.11 0.53 1.43 (1) Excluding loans from KSecurities and MTL. (2) Excluding loans to and from subsidiary companies.


12.6 Non-accrual loans based on the accrual basis

As of 31 December 2011 and 2010, the Bank and subsidiaries showed non-accrual loans, gross, (including

financial institutions) based on the accrual basis to comply with BoT’s regulations can be summarized as

follows:


2011 2010 2011 2010

Non-accrual loans 66,394 65,593 64,643 63,467

Total loans used for ratio Calculation(1) 1,297,887(2) 1,141,206(2) 1,295,337 1,138,880

Percentage of total loans 5.12 5.75 4.99 5.57

(1) Excluding loans from KSecurities and MTL. (2) Excluding loans to and from subsidiary companies.

12.7 Listed companies that meet SET’s criteria for delisting

As of 31 December 2011 and 2010, loans to listed companies that meet SET’s criteria for delisting were as

follows:

(Million Baht)

(Million Baht) Consolidated and The Bank

2011 2010

Loans and

Accrued

Interest

Receivables

Collateral

Value

Allowance for

Doubtful

Accounts

Loans and

Accrued

Interest

Receivables

Collateral

Value

Allowance for

Doubtful

Accounts

Listed companies which meet SET’s

criteria for delisting

2,841

576

124

477

24

449


12.8 Transferring of Sub-Standard Quality Assets to Thai Asset Management Corporation (“TAMC”)

In accordance with the Emergency Decree on the Thai Asset Management Corporation B.E. 2544, on 12

October 2001, the Bank signed an Asset Transfer Agreement with TAMC to transfer eligible sub-standard

quality assets outstanding as of 31 December 2000 to TAMC. All rights and duties associated with each

transferred sub-standard quality asset were transferred to TAMC at a price determined by the appraised value

of the underlying collateral assets, provided that the price did not exceed the book value of credits extended,

less existing provisions outstanding, as required by law on the transfer date. TAMC has 180 days from the date

of each transfer to examine any transferred assets. TAMC will then quote the transfer price within 7 days after

the end of the examination period. After confirming the price, TAMC will issue non-transferable 10-year callable

promissory notes guaranteed by FIDF. The notes bear interest equal to the weighted average of the deposit

rates of five major banks, and are paid at the end of each year by cheque. The rights to these notes and the

received notes are included in investments in held-to-maturity debt instruments.

In accordance with the Emergency Decree B.E. 2544 and the Asset Transfer Agreement, TAMC and the Bank

will share jointly the profits and responsibility for any losses on transferred assets, which are payable on the fifth

and the tenth anniversaries of the transfers, starting from 1 July 2001. In the case of losses, the Bank will first

be responsible for any loss, not exceeding 20% of the transfer price. The second portion of losses, again not

exceeding 20% of the transfer price, will be equally shared by TAMC and the Bank. Any remaining loss would

then be absorbed by TAMC. In addition, expenses of TAMC are included in the calculation of the gain or loss

sharing. In the case of profit, the first portion of profits up to 20% of the transfer price is to be shared equally by

TAMC and the Bank. Should there be any profit over and above this, the Bank is entitled to the remainder up to

the gross book value of the assets, less the transfer price and the Bank’s share in the first portion of the profits.

As of 31 December 2011 and 2010, the Bank has set up an estimate for loss sharing amounting to

Baht 1,400 million and Baht 1,300 million, respectively.

As of 30 June 2011 which is the tenth anniversary of the transfer, the gross book value of the assets transferred

before deducting allowance for doubtful accounts was Baht 14,557 million and the estimated total transfer price

was Baht 10,072 million, for which the Bank received promissory notes from TAMC. The liquidation process has

been in process to complete within the twelfth year since the Emergency Decree on Thai Asset Management

Corporation B.E. 2544 was put into effect by the Liquidation Committee.

The Bank was informed that profit sharing at the end of the tenth year amounting to Baht 107 million was

allocated to the Bank from TAMC. TAMC also informed that they will adjust the result of tenth anniversary upon

completion of the remaining asset management process.


Consolidated

2011

Portion due

Up to 1 year

Over 1 Year

to 5 Years

Over 5 Years

Total

Gross receivables from finance leases 26,745 47,211 663 74,619

Less Unearned interest income (6,159)

Present value of minimum lease payments 68,460

Allowance for doubtful accounts (516)

Total Finance Lease Receivables - net 67,944

12.9 Finance Lease Receivables

(Million Baht)

Consolidated

2010

Portion due

Up to 1 year

Over 1 Year

to 5 Years

Over 5 Years

Total

Gross receivables from finance leases 21,311 39,060 411 60,782

Less Unearned interest income (5,555)

Present value of minimum lease payments 55,227

Allowance for doubtful accounts (456)

Total Finance Lease Receivables - net 54,771

(Million Baht)


13 TROUBLED DEBT RESTRUCTURING

During the years ended 31 December 2011 and 2010, the Bank and its subsidiaries engaged in debt

restructuring contracts as follows:

(Million Baht)


2011 2010 2011 2010

Total Total Total Total

Outstanding

Debt Before

Outstanding

Debt Before

Outstanding

Debt Before

Outstanding

Debt Before

Cases Restructuring Cases Restructuring Cases Restructuring Cases Restructuring

Debt restructuring

contracts that incurred

losses 391 14,887

401

14,443 385 14,868

397

14,424

Debt restructuring

contracts that incurred

no losses 40,700

34,264

35,849

32,546 40,667 34,189

35,817

32,053

Total 41,091 49,151 36,250 46,989 41,052 49,057 36,214 46,477

Losses on debt restructuring for the years ended 31 December 2011 and 2010 were as follows:


2011

Outstanding Debt Transferred Assets Loss on

Before After Debt

Types of Restructuring Cases Restructuring Restructuring Types Fair Value Restructuring

Transfers of assets 12 556 - Cash, land, 216 340

premises

and investments

Changes of repayment conditions 350 11,725 11,458 - - 2,160

Debt restructuring in various forms 29 2,606 1,813 Cash, land, 792 1,074

Premises

and investments

Total 391 14,887 13,271 1,008 3,574


Consolidated

2010


Before After Debt



premises

and investments


Debt restructuring in various forms 38 4,295 3,545 Cash, land, 750 702

premises

and investments

Total 401 14,443 13,526 852 2,590

The Bank

2011


Before After Debt



premises

and investments


Debt restructuring in various forms 29 2,606 1,813 Cash, land, 792 1,074

premises

and investments

Total 385 14,868 13,254 1,005 3,573

(Million Baht)

(Million Baht)


The Bank

2010


Before After Debt



premises

and investments


Debt restructuring in various forms 38 4,295 3,545 Cash, land, 750 702

premises

and investments

Total 397 14,424 13,507 852 2,589

(Million Baht)


The Bank and its subsidiaries measure the expected recoverable amounts of loans restructured by changing

repayment conditions by using the present value of future cash flows discounted by the market rate.

The terms of debt restructuring agreements with debts which were restructured by changing the repayment

conditions and restructured in various other ways and which resulted in losses on debt restructuring during the

years ended 31 December 2011 and 2010 are as follows:


2011 2010

Outstanding Debt Outstanding Debt

Terms of debt

restructuring

agreements

Cases

Before

Restructuring

After

Restructuring

End of

Year

Cases

Before

Restructuring

After

Restructuring

End of

Year

Less than 5 years 268 3,955 3,597 3,268 336 8,688 8,016 7,462

5 to 10 years 57 6,966 6,489 6,277 23 2,060 1,974 1,967

Over 10 years 54 3,410 3,185 3,091 36 3,579 3,536 3,455

Total 379 14,331 13,271 12,636 395 14,327 13,526 12,884

The Bank

2011 2010

Outstanding Debt Outstanding Debt

Terms of debt

restructuring

agreements

Cases

Before

Restructuring

After

Restructuring

End of

Year

Cases

Before

Restructuring

After

Restructuring

End of

Year

Less than 5 years 267 3,939 3,580 3,252 332 8,669 7,997 7,455

5 to 10 years 57 6,966 6,489 6,277 23 2,060 1,974 1,967

Over 10 years 54 3,410 3,185 3,091 36 3,579 3,536 3,455

Total 378 14,315 13,254 12,620 391 14,308 13,507 12,877

(Million Baht)


(Million Baht)

The Bank and its subsidiaries recognised interest income from debt restructuring for the years ended

31 December 2011 and 2010 as follows:


2011 2010 2011 2010

Debt restructuring contracts that incurred losses 708 824 708 824

As of 31 December 2011 and 2010, the Bank had commitments to extend additional loans to these borrowers as

follows:

(Million Baht)

Consolidated and The Bank

2011 2010

Debt restructuring contracts that incurred losses 407 479

The Bank and its subsidiaries had outstanding balances on debtors which were restructured during 2011 and

2010 as follows:

(Million Baht)


2011 2010 2011 2010

Debt restructuring contracts that incurred losses 12,636 12,884 12,620 12,877

Debt restructuring contracts that incurred no losses 26,137 24,956 26,125 24,955

Total 38,773 37,840 38,745 37,832

As of 31 December 2011 and 2010, the Bank and its subsidiaries had outstanding balances relating to all

restructured debtors which had been performing in accordance with debt restructuring agreements as follows:

(Million Baht)


2011 2010 2011 2010

Debt restructuring contracts that incurred losses 22,861 22,597 22,839 22,585

Debt restructuring contracts that incurred no losses 40,147 36,738 40,041 36,676

Total 63,008 59,335 62,880 59,261


(Million Baht)

14 ALLOWANCE FOR DOUBTFUL ACCOUNTS

The movements in the allowance for doubtful accounts during the years were as follows:

Consolidated

2011

Pass

Special

Mention

Sub-

Standard

Doubtful

Doubtful

of Loss

Excess

Allowance

Allowances

from

Securities

Business

Allowances

from

Insurance

Business

Total

Balance at the beginning

of the year

3,733

108

1,447

3,089

12,605

11,346

-

117

32,445

Transferred from investments

in receivables

-

-

-

-

1

-

-

-

1

Doubtful accounts (reversal) 605 216 1,646 (82) 251 2,039 5 (52) 4,628

Bad debt written off (1) - - - (3,911) - - - (3,912)

Others - - - - 2,062 - - (22) 2,040

Balance at the end of the year 4,337 324 3,093 3,007 11,008 13,385 5 43 35,202

Consolidated

2010

Pass

Special

Mention

Sub-

Standard

Doubtful

Doubtful

of Loss

Excess

Allowance

Allowances

from Insurance

Business

Total

Balance at the beginning of the year 2,829 79 3,061 3,020 11,261 9,141 135 29,526

Transferred from investments in

receivables

-

-

-

-

7

-

-

7

Doubtful accounts (reversal) 905 58 (1,614) 69 3,083 2,237 (26) 4,712

Bad debt written off (1) (29) - - (4,303) - - (4,333)

Others - - - - 2,557 (32) 8 2,533

Balance at the end of the year 3,733 108 1,447 3,089 12,605 11,346 117 32,445

(Million Baht)


The Bank

2011

Pass

Special

Mention

Sub-

Standard

Doubtful

Doubtful

of Loss

Excess

Allowance

Total

Balance at the beginning of the year 4,259 106 1,441 2,957 11,836 10,600 31,199

Doubtful accounts (reversal) 763 216 1,636 1 20 1,953 4,589

Bad debt written off - - - - (3,788) - (3,788)

Others - - - - 2,160 - 2,160

Balance at the end of the year 5,022 322 3,077 2,958 10,228 12,553 34,160

(Million Baht)

The Bank

2010

Pass

Special

Mention

Sub-

Standard

Doubtful

Doubtful

of Loss

Excess

Allowance

Total

Balance at the beginning of the year 3,260 74 3,057 3,001 10,531 8,424 28,347

Doubtful accounts (reversal) 999 32 (1,616) (44) 2,877 2,176 4,424

Bad debt written off - - - - (4,137) - (4,137)

Others - - - - 2,565 - 2,565

Balance at the end of the year 4,259 106 1,441 2,957 11,836 10,600 31,199

15 REVALUATION ALLOWANCE FOR DEBT RESTRUCTURING

The movements in the revaluation allowance for debt restructuring during the years were as follows:

(Million Baht)

(Million Baht)


2011 2010 2011 2010

Balance at the beginning of the year 4,387 4,519 4,386 4,493

Increase 3,232 2,583 3,231 2,582

Amortisation to interest income (239) (326) (239) (326)

Others (2,239) (2,389) (2,238) (2,363)

Balance at the end of the year 5,141 4,387 5,140 4,386


16 PROPERTIES FORECLOSED - NET

Properties foreclosed as of 31 December 2011 and 2010 consisted of:

Consolidated

2011

Type of Properties Foreclosed

Beginning

Balance

Addition

Disposal

Ending

Balance

1. Assets acquired from debt repayment

1.1 Immovable assets 15,488 4,041 (4,487) 15,042*

1.2 Movable assets 38 84 (91) 31

Total 15,526 4,125 (4,578) 15,073

2. Others 405 28 (403) 30

Total Properties Foreclosed 15,931 4,153 (4,981) 15,103

Less Allowances for impairment (1,550) (596) 467 (1,679)

Total Properties Foreclosed - net 14,381 3,557 (4,514) 13,424

* As of 31 December 2011, the value of immovable assets acquired from debt repayment was appraised by external

appraisers and internal appraisers in the amount of Baht 10,471 million and Baht 4,571 million, respectively.

(Million Baht)

Consolidated

2010

Type of Properties Foreclosed

Beginning

Balance

Addition

Disposal

Ending

Balance


1.1 Immovable assets 16,106 4,538 (5,156) 15,488**

1.2 Movable assets 48 287 (297) 38

Total 16,154 4,825 (5,453) 15,526

2. Others 500 4 (99) 405




** As of 31 December 2010, the value of immovable assets acquired from debt repayment was appraised by external


(Million Baht)


(Million Baht)

The Bank

2011

Beginning Ending

Type of Properties Foreclosed Balance Addition Disposal Balance


1.1 Immovable assets 13,644 3,925 (3,988) 13,581*

1.2 Movable assets 27 - - 27

Total 13,671 3,925 (3,988) 13,608

2. Others 7 28 (7) 28




* As of 31 December 2011, the value of immovable assets acquired from debt repayment was appraised by external


(Million Baht)

The Bank

2010

Beginning Ending

Type of Properties Foreclosed Balance Addition Disposal Balance


1.1 Immovable assets 13,074 4,409 (3,839) 13,644**

1.2 Movable assets 28 - (1) 27

Total 13,102 4,409 (3,840) 13,671

2. Others 3 4 - 7




** As of 31 December 2010, the value of immovable assets acquired from debt repayment was appraised by

external appraisers and internal appraisers in the amount of Baht 9,410 million and Baht 4,234 million,

respectively.


17 CLASSIFIED ASSETS

As of 31 December 2011 and 2010, assets of the Bank and its subsidiaries, classified as investments, loans and

accrued interest receivables (including financial institutions), properties foreclosed and other assets, were

categorized by quality in compliance with the BoT’s regulations, taking into account analyses of each loan and

appraisal of the financial standing of each borrower, as follows:

(Million Baht)

Consolidated

2011

Investments

Loans and Accrued

Interest Receivables

Properties

Foreclosed

Other Assets

Total

Pass - 1,247,334 - - 1,247,334

Special Mention - 18,810 - - 18,810

Sub-Standard - 5,004 - - 5,004

Doubtful - 5,684 - - 5,684

Doubtful of Loss 3,204 21,234 625 1,328 26,391

Total 3,204 1,298,066 625 1,328 1,303,223

Consolidated

2010

Investments

Loans and Accrued


Properties

Foreclosed

Other Assets

Total

Pass - 1,084,795 - - 1,084,795


Sub-Standard - 3,821 - - 3,821

Doubtful - 7,104 - - 7,104

Doubtful of Loss 4,207 22,420 559 1,314 28,500

Total 4,207 1,141,373 559 1,314 1,147,453

(Million Baht)


(Million Baht)

The Bank

2011

Investments

Loans and Accrued


Properties

Foreclosed

Other Assets

Total

Pass - 1,250,807 - - 1,250,807


Sub-Standard - 4,805 - - 4,805

Doubtful - 5,440 - - 5,440

Doubtful of Loss 3,198 19,789 403 1,324 24,714

Total 3,198 1,295,503 403 1,324 1,300,428

(Million Baht)

The Bank

2010

Investments

Loans and Accrued


Properties

Foreclosed

Other Assets

Total

Pass - 1,086,943 - - 1,086,943


Sub-Standard - 3,656 - - 3,656

Doubtful - 6,826 - - 6,826

Doubtful of Loss 4,201 20,714 356 1,314 26,585

Total 4,201 1,139,024 356 1,314 1,144,895


18

PREM

ISES

AND

EQ

UIPM

ENT

- NET

Chan

ges

in p

rem

ises

and

equi

pmen

t for

the

year

s en

ded

31 D

ecem

ber 2

011

and

2010

are

sum

mar

ized

as fo

llows

:

Co

nsol

idat

ed

20

11

Chan

ge o

f Cos

t

Chan

ge o

f Acc

umul

ated

Dep

reci

atio

n

Impa

irmen

t

Al

lowa

nce

Book

Val

ue

Be

ginn

ing

Bala

nce

Incr

ease

Disp

osal

Tran

sfer

out

Endi

ng

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nce

Begi

nnin

g

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nce

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ecia

tion

Disp

osal

Tran

sfer

out

Endi

ng

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nce

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nnin

g

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nce

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ng

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nce

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nnin

g

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nce

Endi

ng

Bala

nce

Land

Co

st

3,

542

1

-

(1

7)

3,

526

-

-

-

-

-

-

-

3,54

2

3,52

6

Ap

prai

sal in

crea

se

8,52

1

-

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(58)

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3

- -

-

-

-

-

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8,

521

8,

463

Ap

prai

sal d

ecre

ase

(3

85)

-

-

-

(3

85)

-

-

-

-

-

-

-

(385

)

(385

)

Build

ing

Co

st

15

,571

366

-

(1

04)

15

,833

5,78

6

377

-

(5

9)

6,

104

-

-

9,

785

9,

729

Ap

prai

sal in

crea

se

9,84

5

-

-

(37)

9,80

8

4,56

5

295

-

(2

4)

4,

836

-

-

5,

280

4,

972

Ap

prai

sal d

ecre

ase

(1

22)

-

-

-

(1

22)

(7

3)

(4

)

-

-

(77)

-

-

(49)

(4

5)

Equi

pmen

t

26,5

34

2,

711

(1

33)

(3,

501)

2

5,61

1

14,9

27

2,

677

(1

27)

(3,4

35)

14

,042

6

6

11,6

01 1

1,56

3

Oth

ers

918

379

(1)

(1

93)

1

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20

4

62

-

-

266

-

-

714

837

To

tal

64

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3,45

7

(134

) (

3,91

0)

63

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09

3,

407

(1

27)

(3,5

18)

25

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6

6

39,0

09 3

8,66

0

(M

illion

Bah

t)


Co

nsol

idat

ed

20

10

Chan

ge o

f Cos

t

Ch

ange

of A

ccum

ulat

ed D

epre

ciat

ion

Impa

irmen

t Allo

wanc

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Bo

ok V

alue

Be

ginn

ing

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nce

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ease

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sfer

out

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ng

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nnin

g

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tion

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sfer

in (o

ut)

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ease

Endi

ng

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nce

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nnin

g

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nce

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ng

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nce

Land

Co

st

3,

536

11

-

(5)

3,

542

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(3

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Build

ing

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st

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(11)

(40)

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5,28

0

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prai

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(49)

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pmen

t

23,0

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(8

02)

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(114

)

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tal

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(805

)

130

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9,00

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(M

illion

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t)

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ecia

tion

pres

ente

d in

pre

mise

s an

d eq

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atem

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me

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e Ba

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nd it

s su

bsid

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s fo

r the

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rs e

nded

31

Dece

mbe

r 20

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010

amou

nted

to B

aht 3

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milli

on a

nd B

aht 3

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on, r

espe

ctive

ly. A

s of

31

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mbe

r 201

1 an

d 20

10, p

rem

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and

equi

pmen

t with

orig

inal

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ts o

f Bah

t 6,

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milli

on a

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aht 8

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ly, w

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still

in u

se.


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st

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illion

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Th

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nce

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ease

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nce

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nce

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ng

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nce

Land

Co

st

3,

050

-

-

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3,

050

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-

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3,

050

3,

050

Ap

prai

sal in

crea

se

6,

550

-

-

-

6,

550

-

-

-

-

-

-

-

-

6,

550

6,

550

Ap

prai

sal d

ecre

ase

(3

85)

-

-

-

(3

85)

-

-

-

-

-

-

-

-

(3

85)

(3

85)

Build

ing

Co

st

12,

172

1,

428

-

(2

7) 1

3,57

3

4,12

2

297

-

34

5

4,76

4

-

-

-

8,05

0

8,80

9

Ap

prai

sal in

crea

se

8,

474

-

-

(7

) 8,

467

4,

257

16

2

-

(4)

4,

415

-

-

-

4,

217

4,

052

Ap

prai

sal d

ecre

ase

(1

22)

-

-

-

(1

22)

(7

0)

(3

)

-

-

(73)

-

-

-

(5

2)

(4

9)

Equi

pmen

t 2

0,47

1

4,77

4 (

738)

(705

) 23

,802

1

1,62

5

2,08

9

(732

)

(81)

1

2,90

1

8

(2)

6

8,

838

10

,895

Oth

ers

2,

174

2,

156

-

(3,

881)

44

9

-

-

-

-

-

-

-

-

2,1

74

449

To

tal

52,

384

8,

358

(73

8)

(4,

620)

55,

384

19,

934

2,

545

(7

32)

26

0 2

2,00

7

8

(

2)

6

32,4

42

33

,371

(M

illion

Bah

t)

Depr

ecia

tion

pres

ente

d in

pre

mise

s an

d eq

uipm

ent e

xpen

ses

in th

e st

atem

ents

of c

ompr

ehen

sive

inco

me

of th

e Ba

nk fo

r the

yea

rs e

nded

31

Dece

mbe

r 201

1 an

d 20

10

amou

nted

to B

aht 2

,844

milli

on a

nd B

aht 2

,545

milli

on, r

espe

ctive

ly. A

s of

31

Dece

mbe

r 201

1 an

d 20

10 p

rem

ises

and

equi

pmen

t with

orig

inal

cos

ts o

f Bah

t 6,1

82 m

illion

and

Baht

7,5

36 m

illion

, res

pect

ively,

wer

e fu

lly d

epre

ciat

ed b

ut s

till in

use

.


Co

nsol

idat

ed

20

11

Ch

ange

of C

ost

Chan

ge o

f Acc

umul

ated

Dep

reci

atio

n

Impa

irmen

t

Al

lowa

nce

Bo

ok V

alue

Begi

nnin

g

Bala

nce

Incr

ease

Tran

sfer

out

Endi

ng

Bala

nce

Begi

nnin

g

Bala

nce

Amor

tisat

ion

Tran

sfer

out

Endi

ng

Bala

nce

Begi

nnin

g

Bala

nce

Endi

ng

Bala

nce

Begi

nnin

g

Bala

nce

Endi

ng

Bala

nce

Appl

icat

ion

softw

are

18

,389

3,59

3

(1,8

52)

20,

130

5,

583

1,

116

(1,

815)

4,88

4

-

256

12

,806

14

,990

Busin

ess

purc

hase

d

270

-

-

27

0

270

-

-

27

0

-

-

-

-

Goo

dwill

3,

789

-

-

3,

789

-

-

-

-

-

-

3,

789

3,

789

Oth

ers

19

8

-

27

-

1

-

1

-

-

19

26

To

tal

22,

467

3,

601

(1

,852

) 2

4,21

6

5,85

3

1,11

7 (

1,81

5)

5,

155

-

256

16

,614

18

,805

19

GO

ODW

ILL

AND

OTH

ER IN

TANG

IBLE

ASS

ETS

- NET

Chan

ges

in g

oodw

ill an

d ot

her i

ntan

gibl

e as

sets

for t

he y

ears

end

ed 3

1 De

cem

ber 2

011

and

2010

are

sum

mar

ized

as fo

llows

:

(M

illion

Bah

t)


Amor

tisat

ion

pres

ente

d in

oth

ers

- oth

er o

pera

ting

expe

nses

in th

e st

atem

ents

of c

ompr

ehen

sive

inco

me

of th

e Ba

nk a

nd it

s su

bsid

iarie

s fo

r the

yea

rs e

nded

31 D

ecem

ber 2

011

and

2010

am

ount

ed to

Bah

t 1,1

17 m

illion

and

Bah

t 1,0

01 m

illion

, res

pect

ively.

As

of 3

1 De

cem

ber 2

011

and

2010

, int

angi

ble

asse

ts w

ith

orig

inal

cos

ts o

f Ba

ht 9

73 m

illion

and

Bah

t 2,3

82 m

illion

, res

pect

ively,

wer

e fu

lly a

mor

tised

but

still

in u

se.

(M

illion

Bah

t)

Co

nsol

idat

ed

20

10

Ch

ange

of C

ost

Chan

ge o

f Acc

umul

ated

Am

ortis

atio

n

Bo

ok V

alue

Be

ginn

ing

Bala

nce

Incr

ease

Tran

sfer

out

Endi

ng

Bala

nce

Begi

nnin

g

Bala

nce

Amor

tisat

ion

Tran

sfer

out

Endi

ng

Bala

nce

Begi

nnin

g

Bala

nce

Endi

ng

Bala

nce

Appl

icat

ion

softw

are

14

,945

3

,762

(318

) 1

8,38

9

4,73

4

974

(12

5)

5,

583

10,

211

12

,806

Busin

ess

purc

hase

d

270

-

-

27

0

243

27

-

270

27

-

Goo

dwill

3,

789

-

-

3,

789

-

-

-

-

3,

789

3,

789

Oth

ers

16

3

-

19

-

-

-

-

16

19

To

tal

19

,020

3

,765

(318

) 2

2,46

7

4,97

7

1,00

1 (

125)

5,85

3 1

4,04

3

16,6

14


Amor

tisat

ion

pres

ente

d in

oth

ers

- oth

er o

pera

ting

expe

nses

in th

e st

atem

ents

of c

ompr

ehen

sive

inco

me

of th

e Ba

nk fo

r the

yea

rs e

nded

31

Dece

mbe

r 201

1

and

2010

am

ount

ed to

Bah

t 1,0

82 m

illion

and

Bah

t 931

milli

on, r

espe

ctive

ly. A

s of

31

Dece

mbe

r 201

1 an

d 20

10, i

ntan

gibl

e as

sets

with

orig

inal

cos

ts o

f Bah

t

791

milli

on a

nd B

aht 2

,208

milli

on, r

espe

ctive

ly, w

ere

fully

am

ortis

ed b

ut s

till in

use

.

Th

e Ba

nk

20

11

Ch

ange

of C

ost

Chan

ge o

f Acc

umul

ated

Dep

reci

atio

n Im

pairm

ent A

llowa

nce

Bo

ok V

alue

Be

ginn

ing

Bala

nce

Incr

ease

Tr

ansf

er

out

Endi

ng

Bala

nce

Begi

nnin

g Ba

lanc

e Am

ortis

atio

nTr

ansf

er

out

Endi

ng

Bala

nce

Begi

nnin

g Ba

lanc

e En

ding

Ba

lanc

e Be

ginn

ing

Bala

nce

Endi

ng

Bala

nce

Appl

icat

ion

softw

are

18,

130

3,

483

(1,

924)

19,6

89

5,

325

1,

081

(1,

820)

4,58

6

-

25

6

12,8

05

14

,847

O

ther

s

-

5

-

5

-

1

-

1

-

-

-

4

Tota

l 1

8,13

0

3,48

8 (

1,92

4)

19

,694

5,32

5

1,08

2 (

1,82

0)

4,

587

-

256

12

,805

14,8

51

(M

illion

Bah

t)

Th

e Ba

nk

20

10

Chan

ge o

f Cos

t

Ch

ange

of A

ccum

ulat

ed A

mor

tisat

ion

Book

Val

ue

Begi

nnin

g Ba

lanc

e In

crea

se

Tran

sfer

ou

t En

ding

Ba

lanc

e Be

ginn

ing

Bala

nce

Amor

tisat

ion

Tran

sfer

ou

t En

ding

Ba

lanc

e Be

ginn

ing

Bala

nce

Endi

ng

Bala

nce

Appl

icat

ion

softw

are

14,7

41

3,70

7 (3

18)

18,1

30

4,61

8 93

1 (2

24)

5,32

5 10

,123

12

,805

Tota

l 14

,741

3,

707

(318

) 18

,130

4,

618

931

(224

) 5,

325

10,1

23

12,8

05

(M

illion

Bah

t)


20 DEFERRED TAX ASSETS AND DEFERRED TAX LIABILITIES

Deferred tax assets and liabilities as of 31 December 2011 and 2010 as follows:


2011 2010 2011 2010

Deferred tax assets 2,464 3,582 2,310 3,524

Deferred tax liabilities (1,063) (1,777) - -

Net 1,401 1,805 2,310 3,524

Movements in total deferred tax assets and liabilities during the year were as follows:

(Million Baht)

(Million Baht)

Consolidated

Charged / credited to:

As of

1 January

2011

Profit or loss

Other

comprehensive

income

Others

As of

31 December

2011

Deferred tax assets

Investments 544 (337) - - 207

Investments in subsidiaries and

associated companies

577

(193)

-

-

384

Loans and accrued interest

receivables

994

(445)

-

(2)

547

Properties foreclosed 402 (88) - 1 315

Premises and equipment 6 3 - (1) 8

Provisions 4,202 (1,123) 60 (1) 3,138

Life policy reserve 660 (74) - (11) 575

Others 541 (80) - 8 469

Total 7,926 (2,337) 60 (6) 5,643

Deferred tax liabilities

Investments 1,882 (117) (298) - 1,467

Premises and equipment 4,050 (460) (1,032) - 2,558

Others 189 28 - - 217

Total 6,121 (549) (1,330) - 4,242

Net 1,805 (1,788) 1,390 (6) 1,401


(Million Baht)

Consolidated


As of

1 January

2010

Profit or loss

Other

comprehensive

income

Charged

directly to

equity

As of

31 December

2010

Deferred tax assets

Investments 524 20 - - 544



577

-

-

-

577


receivables

1,074

(80)

-

-

994

Properties foreclosed 386 16 - - 402

Premises and equipment 5 1 - - 6

Provisions 3,991 211 - - 4,202

Life policy reserve 468 192 - - 660

Others 454 87 - - 541

Total 7,479 447 - - 7,926


Investments 1,106 (48) 824 - 1,882

Premises and equipment 4,098 1 - (49) 4,050

Others 94 95 - - 189

Total 5,298 48 824 (49) 6,121

Net 2,181 399 (824) 49 1,805


(Million Baht)

The Bank


As of

1 January

2011

Profit or loss

Other

comprehensive

income

As of

31 December

2011

Deferred tax assets

Investments 506 (324) - 182



574

(192)

-

382


receivables

915

(408)

-

507

Properties foreclosed 385 (89) - 296

Provisions 4,130 (1,121) 60 3,069

Others 304 (41) - 263

Total 6,814 (2,175) 60 4,699


Investments 242 69 137 448

Premises and equipment 3,048 (75) (1,032) 1,941

Total 3,290 (6) (895) 2,389

Net 3,524 (2,169) 955 2,310


The Bank


As of

1 January

2010

Profit or loss

Other

comprehensive

income

Charged

directly to

equity

As of

31 December

2010

Deferred tax assets

Investments 486 20 - - 506



574

-

-

-

574


receivables

987

(72)

-

-

915

Properties foreclosed 368 17 - - 385

Provisions 3,928 202 - - 4,130

Others 262 42 - - 304

Total 6,605 209 - - 6,814


Investments 222 (5) 25 - 242

Premises and equipment 3,096 1 - (49) 3,048

Total 3,318 (4) 25 (49) 3,290

Net 3,287 213 (25) 49 3,524

See Note 43 for the amounts recognised in the statements of comprehensive income.

(Million Baht)


21 DEPOSITS

Deposits were classified as of 31 December 2011 and 2010 as follows:

21.1 Classified by Type of Deposits


2011 2010 2011 2010

Current 66,618 60,776 66,833 61,698

Savings 686,716 687,502 688,037 688,650

Term

- Less than 6 months 146,434 156,870 146,529 156,993

- 6 months and less than 1 year 116,571 38,235 116,571 38,235

- 1 year and over 1 year 225,890 156,653 225,890 156,653

Total 1,242,229 1,100,036 1,243,860 1,102,229

(Million Baht)

21.2 Classified by Currencies and Residency of Depositors


2011 2010


Baht 1,180,730 42,922 1,223,652 1,052,512 32,437 1,084,949

US Dollars 13,891 617 14,508 10,704 1,159 11,863


Total 1,197,341 44,888 1,242,229 1,065,800 34,236 1,100,036

(Million Baht)

The Bank

2011 2010


Baht 1,182,361 42,922 1,225,283 1,054,705 32,437 1,087,142

US Dollars 13,891 617 14,508 10,704 1,159 11,863


Total 1,198,972 44,888 1,243,860 1,067,993 34,236 1,102,229


22 INTERBANK AND MONEY MARKET ITEMS (LIABILITIES)

Interbank and money market items (liabilities) as of 31 December 2011 and 2010 consisted of:

(Million Baht)

Consolidated

2011 2010


1. Domestic

The BoT and FIDF - 1,900 1,900 - 839 839

Commercial banks 4,834 34,847 39,681 1,619 21,150 22,769

Specialized financial

institutions 192 100 292 178 - 178

Other financial institutions 2,162 147 2,309 2,685 1,195 3,880

Total Domestic 7,188 36,994 44,182 4,482 23,184 27,666

2. Foreign

US Dollars 16 30 46 19 3 22

Japanese Yen 206 7,477 7,683 18 5,065 5,083

Other currencies 542 887 1,429 293 - 293

Total Foreign 764 8,394 9,158 330 5,068 5,398



(Million Baht)

The Bank

2011 2010


1. Domestic

The BoT and FIDF - 1,900 1,900 - 839 839

Commercial banks 4,834 34,847 39,681 1,619 21,150 22,769

Specialized financial

institutions 206 100 306 192 - 192

Other financial institutions 5,584 147 5,731 4,604 1,195 5,799

Total Domestic 10,624 36,994 47,618 6,415 23,184 29,599

2. Foreign

US Dollars 16 30 46 19 3 22

Japanese Yen 206 7,477 7,683 18 5,065 5,083

Other currencies 542 887 1,429 293 - 293

Total Foreign 764 8,394 9,158 330 5,068 5,398



Contract parties

Financial institutions

Outsiders

Total

2011 2010

Borrowing 2,113 6,156


2011 2010

23 FINANCIAL LIABILITIES DESIGNATED AT FAIR VALUE THROUGH PROFIT OR LOSS

Financial liabilities designated at fair value through profit or loss as of 31 December 2011 and 2010

consisted of: (Million Baht)


2011 2010

2,113 6,156

Proportion of transactions classified by the contract parties based on the amount of the contract: as of

31 December 2011 and 2010 consisted of:


2011 2010

Proportion (%)

- 11

100 89

100 100

Consolidated

2011 2010


Debentures 3,000 - 3,000 6,135 - 6,135

Subordinated Debentures - 5,796 5,796 - 5,511 5,511

Subordinated Debentures

KASIKORNBANK PCL No.1/2008 17,000 - 17,000 17,000

- 17,000


KASIKORNBANK PCL No.1/2009

600 -

600

600

-

600



-

7,500

Bills of Exchange 36,072 - 36,072 51,648 - 51,648

Others 335 - 335 538 - 538

Total 64,507 5,796 70,303 83,421 5,511 88,932

24 DEBTS ISSUED AND BORROWINGS

Debts issued and borrowings as of 31 December 2011 and 2010 consisted of:

(Million Baht)


(Million Baht)

Consolidated

2011

Currency Maturity Date Interest rate Amount

Debentures Baht 2012 3.20% - 3.40% 3,000

Subordinated Debentures US Dollar 2016 8.25% 5,796



Baht

2018

5.25% - 6.50%

17,000



Baht

2019

4.85% - 5.75%

600



Baht

2020

4.50%

7,500

Bills of Exchange Baht 2024 1.75% - 6.00% 36,072

Others Baht 2018 0.00% - 0.50% 335

Total 70,303

Consolidated

2010


Debentures Baht 2011 1.77% - 1.91% 6,135




Baht

2018

5.25% - 6.50%

17,000



Baht

2019

4.85% - 5.75%

600



Baht

2020

4.50%

7,500


Others Baht 2017 0.00% - 0.50% 538

Total 88,932

(Million Baht)


(Million Baht)

The Bank

2011 2010


Debentures 3,000 - 3,000 6,135 - 6,135

Subordinated Debentures - 5,796 5,796 - 5,511 5,511



- 17,000



600 -

600

600

-

600


KASIKORNBANK PCL No.1/2010 7,500 - 7,500

7,500

-

7,500

Bills of Exchange 36,072 - 36,072 51,648 - 51,648

Others 959 - 959 1,148 - 1,148

Total 65,131 5,796 70,927 84,031 5,511 89,542

(Million Baht)

The Bank

2011


Debentures Baht 2012 3.20% - 3.40% 3,000




Baht

2018

5.25% - 6.50%

17,000



Baht

2019

4.85% - 5.75%

600



Baht

2020

4.50%

7,500


Others Baht 2018 0.00% - 3.25% 959

Total 70,927


(Million Baht)

The Bank

2010


Debentures Baht 2011 1.77% - 1.91% 6,135




Baht

2018

5.25% - 6.50%

17,000



Baht

2019

4.85% - 5.75%

600



Baht

2020

4.50%

7,500


Others Baht 2017 0.00% - 2.00% 1,148

Total 89,542

As of 31 December 2011 and 2010, the Bank has debts issued and borrowings with embedded derivative that

are not designated at fair value through profit or loss amounted to Baht 1,418 million and Baht 5,764 million,

respectively.

SUBORDINATED DEBENTURES

The Board of Directors in its meeting on 25 July 1996 approved the issuance of USD 200 million of unsecured

Subordinated Debentures, having a face value of USD 100,000 each, with a twenty-year maturity offered at a

price of USD 98,997 each on 21 August 1996 and carrying an 8.25 percent coupon rate payable semi-annually.

The Bank repurchased USD 16.69 million of such Subordinated Debentures in accordance with the Board of

Directors resolution, which was approved on 28 May 2009. The settlement was completed on 2 July 2009.

KBank Subordinated Debentures No.1/2008, KBank Subordinated Debentures No.1/2009 and Kbank Subordinated

Debentures No.1/2010

On 25 September 2008, the Board of Directors in its meeting approved the issuance of these Unsubordinated

and/or Subordinated Debentures in name certificate, unconvertible and without security in order to raise long-

term funding at a reasonable cost, to efficiently manage the interest rate and liquidity risks, as well as to

strengthen the status of the Bank’s tier two capital funds. The Bank issued and offered the Subordinated

Debentures as follows:


On 29 April 2010, the Board of Directors in its meeting approved the issuance of these Unsubordinated and/or

Subordinated Debentures in name certificate, unconvertible and without security in order to raise long-term

funding at a reasonable cost. The Bank issued and offered the Subordinated Debentures as follows:

On 22 June 2010, the Bank issued the Subordinated Debentures of KASIKORNBANK PUBLIC COMPANY

LIMITED No.1/2010 Due A.D. 2020, which the Bank may redeem the debenture before maturity, in the amount of

Baht 7,500 million, with a ten-year maturity. The debentures bear interest at the fixed interest of 4.50 % per

annum. Interest is payable quarterly.

The Bank may redeem KBank Subordinated Debentures No.1/2008, KBank Subordinated Debentures No.1/2009

and KBank Subordinated Debentures No.1/2010 before maturity under the following criteria:

(A) Before the fifth anniversary of the issue date, under a notice by the Bank of Thailand that

(1) The debenture will no longer be classified as a financial instrument, which can be counted as Tier two

capital fund of the Bank; or

(2) The debenture can be counted as Tier two capital fund, at the proportion less than 50 percent of Tier

one capital fund of the Bank; or

(B) On the fifth anniversary of the issue date or any subsequent interest payment date after the fifth anniversary

of the issue date; or

(C) The Bank is under court order for complete receivership, or for business rehabilitation or for bankruptcy

under the Bankruptcy Act or other applicable laws or under the Bank’s liquidation process; or

(D) If the Bank can demonstrate that interest payments under the Debentures are no longer, or will no longer

be, deductible as an expense for income tax purposes; or

(E) In any other cases as may be later stipulated by the Bank of Thailand.

On 19 December 2008, the Bank issued the Subordinated Debentures of KASIKORNBANK PUBLIC COMPANY

LIMITED No.1/2008 Due A.D. 2018, which the Bank may redeem the debenture before maturity, in the amount of

Baht 17,000 million, with a ten-year maturity. The debentures bear interest at the fixed interest rate for the first

three years of 5.25 % per annum, the fixed interest rate for the next four years of 5.75 % per annum and the fixed

interest rate for the final three years of 6.50 % per annum. Interest is payable quarterly.

On 17 July 2009, the Bank issued the Subordinated Debentures of KASIKORNBANK PUBLIC COMPANY

LIMITED No.1/2009 Due A.D.2019, which the Bank may redeem the debenture before maturity, in the amount of

Baht 600 million, with a ten-year maturity. The debentures bear interest at the fixed interest rate for the first three

years of 4.85 % per annum, the fixed interest rate for the next four years of 5.25 % per annum and the fixed

interest rate for the final three years of 5.75 % per annum. Interest is payable quarterly.


25 EMPLOYEE RETIREMENT BENEFITS

The Bank and its subsidiaries have been assessing liability to pay for long-term employee benefits by using

Projected Unit Credit method as follows:

(Million Baht) Consolidated The Bank

2011 2010 2011 2010

Balance at the beginning of the year 9,046 8,766 8,776 8,513

Current service costs* 1,033 443 980 418

Interest cost* 464 392 450 380

Acturial losses in other

comprehensive income

303

-

300

-

Benefits paid (968) (555) (965) (535)

Balance at the end of the year 9,878 9,046 9,541 8,776

* Presented by employee’s expenses in statements of comprehensive income

Acturial gains and losses recognised in other comprehensive income for the years ended 31 December 2011

and 2010 consisted of:


2011 2010 2011 2010

Included in retained earnings:

At 1 January - - - -

Recognised during the year 303 - 300 -

At 31 December 303 - 300 -

Principle actuarial assumptions are as follows:

(Million Baht)

2011 / 2010

Discount rate 1.06% - 4.85%

Average salary increase 4% - 6%

Average turnover 3% - 12%

Normal retirement age 55 - 60 years

2011 / 2010

1.06% - 4.85%

4% - 6%

3% - 12%

55 - 60 years


26 SHARE CAPITAL AND EARNINGS PER SHARE

The calculation of the consolidated and the Bank-only basic earnings per share for the years ended

31 December 2011 was based on profit attributable to ordinary shareholders of Baht 24,226 million and Baht

22,159 million, respectively (2010: Baht 20,047 million and Baht 18,615 million, respectively) and the weighted

average number of ordinary shares outstanding during the year ended 31 December 2011 of 2,393,260,193

shares (2010: 2,393,260,193 shares).

27 RESERVES

Section 116 of the Public Companies Act B.E. 2535 requires that the Bank shall allocate not less than 5 percent

of its annual net profit, less any accumulated losses brought forward, to a reserve account (“legal reserve”), until

this account reaches an amount not less than 10% of the registered authorized capital. In addition, The

provisions of the Civil and Commercial Code of Thailand require that subsidiaries shall allocate not less than

5 percent of their annual net profit each time a dividend is declared, to a reserve account (“legal reserve”) until

the reserve reaches 10 percent of authorized share capital. The legal reserve is not available for dividend

distribution.

28 DIVIDEND PAYMENTS

On 25 August 2011, the Board of Directors Meeting of the Bank approved to pay interim dividends from the

six-month operating results of 2011 at the rate of Baht 0.50 per share, totaling Baht 1,197 million, which was paid

on 22 September 2011.

On 7 April 2011, the Annual General Meeting of Shareholders of the Bank approved to pay dividend from the

operating results of 2010 at the rate of Baht 2.50 per share, totaling Baht 5,983 million. The interim dividend was

paid at the rate of Baht 0.50 per share, totaling Baht 1,197 million on 23 September 2010 and the remaining

dividend was paid at the rate of Baht 2.00 per share, totaling Baht 4,786 million, on 29 April 2011.

On 26 August 2010, the Board of Directors Meeting of the Bank approved to pay interim dividends from the

six-month operating results of 2010 at the rate of Baht 0.50 per share, totaling Baht 1,197 million, which was paid

on 23 September 2010.

On 7 April 2010, the Annual General Meeting of Shareholders of the Bank approved to pay dividend from the

operating results of 2009 at the rate of Baht 2.50 per share, totaling Baht 5,983 million. The interim dividend was

paid at the rate of Baht 0.50 per share, totaling Baht 1,197 million on 24 September 2009 and the remaining

dividend was paid at the rate of Baht 2.00 per share, totaling Baht 4,786 million, on 30 April 2010.


29 ASSETS PLEDGED AS COLLATERAL

Assets pledged as collateral as of 31 December 2011 and 2010 consisted of:


2011 2010 2011 2010

Deposits 3,154 916 3,135 827

Government bonds 45,946 34,277 27,825 20,210

State enterprises bonds 295 297 185 187

Total 49,395 35,490 31,145 21,224

The Bank has pledged these assets as collateral for derivatives, for electricity consumption, for court collateral

and for repurchase agreements.

30 CONTINGENT LIABILITIES AND COMMITMENTS

Contingent liabilities and commitments as of 31 December 2011 and 2010 consisted of:

(Million Baht)


2011 2010 2011 2010

Avals to bills 7,944 3,802 7,944 3,802

Guarantees of loans 186 159 186 159

Liability under unmatured import bills 8,697 8,418 8,697 8,418

Letter of credit 26,962 24,496 26,962 24,496

Other contingencies

- Guarantees of selling instruments or securities - 1,500 - 1,500

- Unused credit line of overdraft 176,461 161,168 176,461 161,168

- Other guarantees 143,865 126,839 143,820 126,813

- Others 556,925 477,847 556,904 477,813

Total 921,040 804,229 920,974 804,169


Under normal business operations, the Bank is a defendant in various litigation against the Bank. These include

cases of wrongful acts brought against the Bank, with total claims amounting to Baht 7,728 million and Baht

7,663 million as of 31 December 2011 and 2010, respectively. The Management believes that any liability

resulting from this litigation will not be material to the Bank’s financial position or on the results of its operations.

One of the civil cases against the Bank is a case which was further appealed to the Court of Final Appeal of Hong

Kong under Common Law. In this case, the Liquidators of Akai Holdings Limited (“Akai’) under a bankruptcy

case filed a civil lawsuit against the Bank, with total claim for damages of USD 52.81 Million plus interest, alleging

that a Loan Agreement and a Share Pledge Agreement entered into during 1998 between the Bank and Akai

were void and that the Bank is required to compensate Akai for damages resulting from enforcing the sale of

shares under the Share Pledge Agreement.

The Court of First Instance of Hong Kong dismissed the Liquidators’ entire claim. The Liquidators appealed to the

Court of Appeal which overturned the Court of First Instance decision ordering the Bank to pay damages. The

Bank appealed to the Court of Final Appeal. On 8 November 2010, the Court of Final Appeal awarded in favour

of Akai by ordering the Bank to pay damages of USD 22.54 million together with interest, at the rate of 1% over

USD LIBOR, total amount of USD 34.25 million. The Bank already paid such damages in 2010.

As of 31 December 2011 and 2010, Muang Thai Life Assurance Company Limited has been sued as insurer, with

claims amounting to approximately Baht 161 million and Baht 133 million, respectively. The Management

believes that any liability resulting from this litigation will not be material to the consolidated financial statements.


31 RELATED PARTY TRANSACTIONS AND BALANCES

31.1 Loans and contingencies made to officers(1) and to business entities where the Bank and its subsidiaries,

their directors or officers, hold 20%(2) or more of their paid-up capital, in which market price as charged as

with other normal business, are summarized as follows:

(Million Baht) Consolidated 31 December 2011 31 December 2010Loans 1. Officers 30 21 2. Business entities where the Bank and subsidiaries, their directors or officers, hold 20% or more of the paid - up capital(2) 126

982

Total 156 1,003 Contingencies

1. Officers - - 2. Business entities where the Bank and subsidiaries, their directors or officers, hold 20% or more of the paid - up capital(2) 13

13

Total 13 13

(Million Baht) The Bank 31 December 2011 31 December 2010Loans 1. Officers 18 21 2. Business entities where the Bank, its directors or officers, hold 20% or more of the paid - up capital(2) 69,446

57,012

Total 69,464 57,033 Contingencies

1. Officers - - 2. Business entities where the Bank, its directors or officers, hold 20% or more of the paid - up capital(2) 194

89

Total 194 89

(1) Officers mean management who holds the title of at least First Senior Vice President including Department Head-Financial Accounting

Management Department and Department Head-Financial Planning Department. (2) Related business entities: 2010 mean business entities where the Bank, subsidiaries and any related parties hold 10% or more of the

paid-up capital.

2011 mean business entities where the Bank, subsidiaries and any related parties hold 20% or more of the

paid-up capital.


31.2 Related Parties

Relationships between the Bank and other business entities(1) where control exists for the years ended

31 December 2011 and 2010 are explained in Note 11.1

31.3 Significant transactions occurring between the Bank and Phethai Asset Management Company Limited are

summarized as follows:

The Bank


Deposits 55 804

Other income 7 10

Income and expenses shared between the Bank and Phethai Asset Management Company Limited are charged

at cost, except for fee income, which is charged at market price.

The Bank has provided an allowance for doubtful accounts for Phethai Asset Management Company Limited

using the same method as for general customers and in accordance with the BoT’s regulations.

(1) Related parties 2010 mean spouses and children under age of 20 years old.

2011 mean spouses, children, father, mother, siblings and children’s spouses.

(Million Baht)

31.4 Additional transactions occurring between the Bank and related business entities, which are charged at market

price as with other normal business or the price as stipulated in the agreement, are as follows:

31.4.1 Assets, liabilities and contingencies between the Bank, its subsidiaries and associated companies

excluding Phethai Asset Management Company Limited as of 31 December 2011 and 2010 are



(Million Baht)

Deposits

Subsidiaries

- KASIKORN ASSET MANAGEMENT CO., LTD. - - 1,338 1,236

- KASIKORN LEASING CO., LTD. - - 360 524

- Progress Gunpai Co., Ltd. - - 182 196

- Progress Land and Buildings Co., Ltd. - - 176 2

- Muangthai Group Holding Co., Ltd. - - 145 112

- KASIKORN FACTORY & EQUIPMENT CO., LTD. - - 100 122

- K-SME Venture Capital Co., Ltd. - - 88 68

- Progress Plus Co., Ltd. - - 84 86

- Progress Appraisal Co., Ltd. - - 71 78

- Progress Service Co., Ltd. - - 69 63

- Progress Service Support Co., Ltd. - - 56 49

- Progress Software Co., Ltd. - - 52 63

- KASIKORN RESEARCH CENTER CO., LTD. - - 43 42

- Progress Facilities Management Co., Ltd. - - 40 40

- Progress HR Co., Ltd. - - 33 40

Interbank and Money Market Items (Assets)

Subsidiary

- KASIKORN SECURITIES PCL - - - 265

Loans

Subsidiaries

- KASIKORN LEASING CO., LTD. - - 61,853 52,782

- KASIKORN FACTORY & EQUIPMENT CO., LTD. - - 7,462 3,242

Other Assets

Subsidiaries

- Muang Thai Life Assurance Co., Ltd. - - 235 190

- KASIKORN ASSET MANAGEMENT CO., LTD. - - 107 82

- KASIKORN SECURITIES PCL - - 19 32


- Processing Center Co., Ltd. 10 - 10 -

- Progress Land and Buildings Co., Ltd. - - - 319


2011 2010 2011 2010


- Progress Storage Co., Ltd. - - 26 32

- Progress Management Co., Ltd. - - 23 31

- Progress Multi Insurance Broker Co., Ltd. - - 17 -

- Progress Training Co., Ltd. - - 11 14

Associated Company

- Processing Center Co., Ltd. 18 23 18 23

Interbank and Money Market Items (Liabilities)

Subsidiaries

- KASIKORN SECURITIES PCL - - 2,898 1,471

- Muang Thai Life Assurance Co., Ltd. - - 959 721

Borrowings

Subsidiary

- KASIKORN ASSET MANAGEMENT CO., LTD. - - 624 510

Other Liabilities

Subsidiaries


- Progress Software Co., Ltd. - - 208 215

- Progress HR Co., Ltd. - - 62 36

- Progress Plus Co., Ltd. - - 45 25

- Progress Appraisal Co., Ltd. - - 19 16

- Progress Service Co., Ltd. - - 16 -

- KASIKORN SECURITIES PCL - - 13 9

- Progress Storage Co., Ltd. - - 12 -

- Progress Training Co., Ltd. - - 11 -

Contingencies

Subsidiaries

- Muang Thai Life Assurance Co., Ltd. - - 2,038 1,787

- KASIKORN FACTORY & EQUIPMENT CO., LTD. - - 212 128

Associated Company

- Processing Center Co., Ltd. 13 13 13 13

- - 26 32

- - 23 31

- - 17 -

- - 11 14

18 23 18 23

- - 2,898 1,471

- - 959 721

- - 624 510

- - 859 730

- - 208 215

- - 62 36

- - 45 25

- - 19 16

- - 16 -

- - 13 9

- - 12 -

- - 11 -

- - 2,038 1,787

- - 212 128

13 13 13 13


2011 2010 2011 2010


Certain subsidiaries and associated companies have entered into 1-2 year building lease and service

agreements with the Bank. Rentals are charged at cost plus an increment for additional administration and

maintenance expenditures incurred. As of 31 December 2011 and 2010, the Bank and its related parties have

rental agreements with remaining tenures amounting to Baht 39 million and Baht 35 million, respectively.

The Bank has entered into 5-year car leasing agreements with KASIKORN LEASING CO., LTD. Such

agreements are classified as finance lease agreements, charged at market rates. As of 31 December 2011 and

2010, the book value of finance lease liabilities, before elimination, amounts to Baht 857 million and 728 million,

respectively.

The Bank entered into an Information Technology Service Agreement with Progress Software Co., Ltd. under

which the service will be provided until 30 November 2015. As of 31 December 2011, the Bank is committed to

pay total service fees of Baht 91 Million and as of 31 December 2010, the Bank has no further commitment to

pay total service fees as the service fees have not been determined.

31.4.2 Revenue and expenses occurring between the Bank, its subsidiaries and associated companies for the

years ended 31 December 2011 and 2010 are summarized as follows:

Subsidiaries

Revenue:

Interest income - - 2,228 1,798

Dividend income - - 956 859

Fee income - - 3,719 2,762

Other income - - 1,607 955

Expenses:

Interest expenses - - 197 110

Fee expenses - - 191 277

Personnel expenses - - 383 274

Other expenses - - 3,308 3,199

Associated Companies

Revenue:

Other income 12 8 12 8

Expenses:

Fee expenses - 3 - 3

Other expenses 20 15 20 15

(Million Baht)

- - 2,228 1,798

- - 956 859

- - 3,719 2,762

- - 1,607 955

- - 197 110

- - 191 277

- - 383 274

- - 3,308 3,199

12 8 12 8

- 3 - 3

20 15 20 15


2011 2010 2011 2010


The Bank has entered into a staff secondment agreement with KASIKORN SECURITIES PCL, commencing from

January 2006. The agreement shall be terminated at any time by the Bank giving notice 60 days prior to the

termination date. The Bank is responsible for salaries, welfare and other benefits and any liabilities that arise or

may arise from the actions of the employees.

For the years ended 31 December 2011 and 2010, the Bank incurred expenses amounting to Baht 383 million

and Baht 274 million, respectively, presented as personnel expenses in the statements of comprehensive

income.

31.4.3 Assets, liabilities and contingencies between the Bank and other business entities in which the directors,

key executive officers and close members of their families have significant influence as of 31 December

2011 and 2010 were summarized as follows:


2011 2010

Loans

- TT&T Public Co., Ltd.* 2,156 -

- Sansiri Public Co., Ltd. 2,032 2,136

- BANGKOK PRODUCE MERCHANDISING PUBLIC CO., LTD.* 1,541 -

- PAPANAN LIMITED* 830 -

- Jutha Maritime Public Co., Ltd. 687 714

- Charoen Pokphand Foods Public Co., Ltd. 600 800

- C.P. Merchandising Co., Ltd.* 585 -

- SAIM QUALITY STARCH CO., LTD.* 382 -

- Loxley Public Co., Ltd.* 250 -

- KOMATSU BANGKOK LEASING CO., LTD.* 212 -

- Bangkok Komatsu Forklift Co., Ltd.,* 205 -

- Global Utilities Services Co., Ltd. 185 217

- RED LOTUS PROPERTIES LIMITED* 164 -

- B.P. Food Products Co., Ltd.* 150 -

- CPF Food Products Co., Ltd.* 150 -

- BANGKOK FOOD PRODUCTS CO., LTD.* 146 -

- TISCO TOKYO LEASING CO., LTD.* 115 -

- Rajburi Foods Co., Ltd.* 100 -

(Million Baht)



2011 2010

Loans (Continued)

- Thanakorn Vegetable Oil Products Co., Ltd.* 92 -

- Charoen Pokphand Northeastern Plc.* 50 -

- Eastern Printing Public Company Limited* 42 -

- Construction and Engineering Services Co., Ltd.* 22 -

- M&A Guard Service Co., Ltd.* 11 -

- Bangkok Glass Industry Co., Ltd.** - 693

Deposits

- Counter Service Co., Ltd.* 777 -

- Serm Suk Public Co., Ltd. 663 300

- TT&T Public Co., Ltd.* 554 -

- CP ALL PUBLIC CO., LTD.* 472 -

- Muang Thai Insurance Public Co., Ltd. 255 352

- Thai Smart Card Co., Ltd.* 228 -

- C.P. Retailing and Marketing Co., Ltd.* 200 -

- TOSHIBA LIGHTING COMPONENTS (THAILAND) LTD.* 170 -

- BP - CASTROL (THAILAND) LIMITED* 145 -

- Phatra Leasing Public Co., Ltd. 113 72

- Sansiri Public Co., Ltd. 107 194

- Sermsuk Beverage Co., Ltd. 97 45

- Global Utilities Services Co., Ltd.* 95 -

- National ITMX Co., Ltd. 85 22

- SIAM MOTORS SALES CO., LTD.* 82 -

- B.GRIMM BIP POWER LIMITED* 74 -

- Retailink (Thailand) Co., Ltd.* 70 -

- Guardfire Limited* 61 -

- SIAM MOTORS TRADING CO., LTD.* 58 -

- Charoen Pokphand Foods Public Co., Ltd. 52 24

- CHANACHAI LIMITED* 41 -

- LOXLEY JOINT AND HOLD CO., LTD.* 41 -

- TRIPLE T GLOBAL NET CO., LTD.* 39 -

- Suludee Co., Ltd.* 38 -

- SIAM MODIFIED STARCH CO., LTD.* 37 -

(Million Baht)



2011 2010

Deposits (Continued)

- Loxley Trading Co., Ltd.* 36 -

- General Engineering Public Co., Ltd.* 32 -

- Sombat Lamsam Co., Ltd. 32 27

- Crown Seal Public Co., Ltd.* 31 -

- Muangthai Holding Co., Ltd.* 30 -

- JEM ENVIRONIMENTAL MANAGEMENT CO., LTD.* 29 -

- PHIWANTHANA CO., LTD.* 29 -

- PTT Global Chemical Public Company Limited* 29 -

- Loxbit Public Co., Ltd.* 26 -

- Oriental Post Co., Ltd.* 25 -

- Professional Computer Co., Ltd.* 25 -

- Benjangkawat Co., Ltd.* 24 -

- Thai - Amadeus Southeast Asia Co., Ltd.* 23 -

- The Barbecue Plaza Co., Ltd.* 21 -

- Smithithada Co., Ltd. 20 15

- Sarasin Co., Ltd.* 20 -

- SIAM MUSIC YAMAHA CO., LTD.* 19 -

- P I A INTERIOR COMPANY LIMITED* 18 -

- Ruam Samphant Co., Ltd.* 18 -

- Architects 49 Ltd.* 17 -

- PLUS PROPERTY CO., LTD.* 17 -

- M&E ENGINEERING 49 LIMITED* 17 -

- Songkhla Shipping Agency Co., Ltd.* 17 -

- PAPANAN LIMITED* 16 -

- The Viriyah Insurance Co., Ltd.* 15 -

- SIAM QUALITY STARCH CO., LTD.* 15 -

- SIAM HITACHI AUTOMOTIVE PRODUCTS LTD.* 13 -

- GS YUASA SIAM SALES LTD.* 13 -

- P 49 INTERIOR AND ASSOCIATES CO., LTD.* 13 -

- CONSULTING & MANAGEMENT 49 LTD.* 13 -

(Million Baht)



2011 2010

Deposits (Continued)

- Toshiba Thailand Co., Ltd.* 13 -

- SIAM GS SALES CO., LTD.* 12 -

- Pruetthada Co., Ltd. 12 5

- BLUESCOPE LYSAGHT (THAILAND) CO., LTD.* 12 -

- Floor Industry Co., Ltd.* 11 -

- GRAPHIC 49 LIMITED* 11 -

- S.U.N. MANAGEMENT CO., LTD.* 10 -

- Mobile Innovation Co., Ltd.* 10 -

- The Phatra Samphant Co., Ltd.* 10 -

- Mitsubishi Elevator Asia Co., Ltd. 9 37

- Nithi Thamrong Co., Ltd. 6 37

- Zin Suapa Co., Ltd. 6 12

- TOT Public Co., Ltd.** - 34

- Sup Wattana Co., Ltd.** - 19

- Khao Angkaew Co., Ltd.** - 13

Contingencies

- Charoen Pokphand Foods Public Co., Ltd. 3,863 1,619

- PTT Global Chemical Public Company Limited* 2,003 -

- Sansiri Public Co., Ltd. 1,191 1,296

- CPF Food Products Co., Ltd.* 255 -

- Loxley Public Co., Ltd.* 245 -

- B.GRIMM BIP POWER LIMITED* 229 -

- Quality Houses Public Co., Ltd. 224 583

- CP ALL PUBLIC CO., LTD.* 184 -

- Home Product Center Public Co., Ltd.* 127 -

- Global Utilities Services Co., Ltd. 121 174

- CASA VILLE CO., LTD.* 70 -

- Construction and Engineering Services Co., Ltd.* 64 -

- BANGKOK PRODUCE MERCHANDISING PUBLIC CO., LTD.* 53 -

- General Engineering Public Co., Ltd.* 52 -

- C.P. Merchandising Co., Ltd.* 49 -

- JEM ENVIRONIMENTAL MANAGEMENT CO., LTD.* 47 -

(Million Baht)



2011 2010

Contingencies (Continued)

- Retailink (Thailand) Co., Ltd.* 45 -

- Loxley Trading Co., Ltd.* 45 -

- SCG Network Management Co., Ltd.* 44 -

- Dole Thailand Co., Ltd. 42 75

- C.P. Retailing and Marketing Co., Ltd.* 40 -

- Eastern Printing Public Company Limited* 40 -

- Professional Computer Co., Ltd.* 34 -

- Petpak Co., Ltd.* 29 -

- SCG Trading Co., Ltd.* 24 -

- PHIWANTHANA CO., LTD.* 24 -

- SCG Logistics Management Co., Ltd.* 23 -

- Crown Seal Public Co., Ltd.* 21 -

- Loxbit Public Co., Ltd.* 21 -

- Siam Motor Parts Co., Ltd.* 20 -

- SIAM RIKEN INDUSTRIAL CO., LTD.* 19 -

- SAIM QUALITY STARCH CO., LTD.* 18 -

- Charoen Pokphand Northeastern Plc.* 13 -

- Bangkok Glass Industry Co., Ltd.** - 67

- Yip In Tsoi & Jacks Co., Ltd.** - 15

- Jutha Maritime Public Co., Ltd. - 12

* 2010 the entity was not related to the Bank.

** 2011 the entity is no longer related to the Bank.

31.4.4 During 2011, a subsidiary of the Bank sold a property foreclosed to another related business in the amount

of Baht 540 million which has gain on sale of property foreclosed in amount of Baht 238 million.

(Million Baht)


Short-term employee benefits 928 904 535 539

Post-employment benefits 24 23 19 18

Total 952 927 554 557

31.4.5 Assets, liabilities and contingencies between the Bank and its directors and key executive officers or the

Bank’s employees who have authority and responsibility for planning, directing and controlling the

activities of the Bank including their close family members as of 31 December 2011 and 2010 are


(Million Baht)


2011 2010

Loans 67 30

Deposits 2,920 1,150

31.5 Key management personnel compensation for the years ended 31 December 2011 and 2010 are consisted of:

(Million Baht)


32 BENEFITS OF DIRECTORS AND EXECUTIVES

The Bank and its subsidiaries have not paid other benefits to directors and executives except for the benefits that

are normally paid such as directors’ fee, directors’ bonus (if any) and income tax, executives’ salary and bonus

(if any).

2011 2010 2011 2010

928 904 535 539

24 23 19 18

952 927 554 557


33 CAPITAL COMMITMENTS AND LONG-TERM AGREEMENTS

33.1 Capital Commitments


2011 2010 2011 2010

Contracted but not provided for 5,607 7,436 5,610 7,435

33.2 Long-Term Agreements

33.2.1 Operating Lease

The Bank and its subsidiaries have entered into land/building lease agreements for branch offices

and vehicle lease agreements. The Bank and its subsidiaries were committed to pay future rentals,

which are summarized as follows:

(Million Baht)


Types of Lease Agreement Remaining Period 2011 2011

Land/building lease agreements 1 January 2012 – 6 March 2036 1,800 1,785

Vehicle lease agreements 1 January 2012 – 21 December 2016 104 101

Others 1 January 2012 – 31 January 2016 45 -

Total 1,949 1,886


(Million Baht)


Types of Lease Agreement Remaining Period 2010 2010

Land/building lease agreements 1 January 2011 – 6 March 2036 1,830 1,806

Vehicle lease agreements 1 January 2011 – 15 July 2015 109 253

Others 1 January 2011 – 25 October 2014 33 -

Total 1,972 2,059

33.2.2 Service Agreement

The Bank entered into an Information Technology Service, under which the service will be provided

until 31 December 2015. As of 31 December 2011 and 2010, the Bank is committed to pay total

service fees of Baht 5,975 million and Baht 6,156 million, respectively.

34 THAI FINANCIAL REPORTING STANDARDS (TFRS) NOT YET ADOPTED

The Bank and its subsidiaries have not adopted the following revised TFRS that have been issued as of the

reporting date but are not yet effective.

The below revised TFRS (revised 2009) is expected to become effective for annual financial periods beginning on or

after 1 January 2013.

TFRS Topic

TAS 21 (Revised 2009) The Effects of Changes in Foreign Exchange Rates

The management is presently considering the potential impact from the adoption of the above revised TFRS.

35 THE FINANCIAL POSITIONS AND RESULTS OF OPERATIONS DIFFERENTIATED BY DOMESTIC AND

FOREIGN BUSINESS

The financial positions and results of operations differentiated by domestic and foreign business can be




2011

Domestic

Business

Foreign

Business

Total

Eliminated

Transactions

Total

Total assets 1,709,069 13,871 1,722,940 - 1,722,940

Interbank and money market items - net

(assets)

108,805

3,164

111,969

-

111,969

Investments - net 259,206 5,089 264,295 - 264,295

Loans to customers and accrued interest

receivables - net

1,168,784

3,812

1,172,596

-

1,172,596

Deposits 1,237,897 4,332 1,242,229 - 1,242,229

Interbank and money market items

(liabilities)

52,454 886 53,340 - 53,340

Debts issued and borrowings 64,507 5,796 70,303 - 70,303

(Million Baht)

Consolidated

2010

Domestic

Business

Foreign

Business

Total

Eliminated

Transactions

Total

Total assets 1,537,291 11,182 1,548,473 (1,809) 1,546,664


(assets) 93,468 4,092 97,560 - 97,560

Investments - net 245,615 5,602 251,217 - 251,217


receivables - net

1,040,172

1,394

1,041,566

-

1,041,566

Deposits 1,098,393 1,643 1,100,036 - 1,100,036


(liabilities)

33,064

-

33,064

-

33,064


35.1 Financial Positions Classified by Types of Business


The Bank

2011

Domestic

Business

Foreign

Business

Total

Eliminated

Transactions

Total

Total assets 1,590,696 13,871 1,604,567 - 1,604,567


(assets)

107,041

3,164

110,205

- 110,205

Investments - net 168,945 5,089 174,034 - 174,034


receivables - net

1,160,103

3,812

1,163,915

- 1,163,915

Deposits 1,239,528 4,332 1,243,860 - 1,243,860


(liabilities)

55,889 887 56,776 - 56,776


(Million Baht)

The Bank

2010

Domestic

Business

Foreign

Business

Total

Eliminated

Transactions

Total

Total assets 1,441,359 11,182 1,452,541 (1,809) 1,450,732


(assets) 92,676 4,092 96,768

- 96,768

Investments - net 178,096 5,602 183,698 - 183,698


receivables - net

1,031,953

1,394

1,033,347

-

1,033,347

Deposits 1,100,586 1,643 1,102,229 - 1,102,229


(liabilities)

34,997

-

34,997

-

34,997


(Million Baht)


35.2 Results of Operations Classified by Types of Business


2011

Domestic

Business

Foreign

Business

Total

Eliminated

Transactions

Total

Interest income 83,412 483 83,895 (202) 83,693

Interest expenses 27,276 128 27,404 (202) 27,202

Interest income - net 56,136 355 56,491 - 56,491

Fees and service income - net 20,595 42 20,637 - 20,637

Other operating income 12,841 539 13,380 - 13,380

Other operating expenses 50,087 277 50,364 - 50,364

Operating profit before income tax expense 39,485 659 40,144 - 40,144

(Million Baht)

Consolidated

2010

Domestic

Business

Foreign

Business

Total

Eliminated

Transactions

Total

Interest income 62,169 220 62,389 (118) 62,271




Other operating income 10,553 (380) 10,173 - 10,173


Operating profit (loss) before income tax

expense

30,775

(335)

30,440

-

30,440


(Million Baht)

The Bank

2011

Domestic

Business

Foreign

Business

Total

Eliminated

Transactions

Total

Interest income 77,747 483 78,230 (202) 78,028




Other operating income 8,598 539 9,137 - 9,137


Operating profit before income tax expense 33,576 659 34,235 - 34,235

(Million Baht)

The Bank

2010

Domestic

Business

Foreign

Business

Total

Eliminated

Transactions

Total

Interest income 57,338 220 57,558 (118) 57,440




Other operating income 7,648 (380) 7,268 - 7,268


Operating profit (loss) before income tax

expense

26,439

(335)

26,104

-

26,104


36 INTEREST INCOME

Interest income for the years ended 31 December 2011 and 2010 consisted of:


2011 2010 2011 2010

Interbank and money market items 7,178 2,363 7,143 2,347

Investments and trading transactions 285 279 285 279

Investments in debt securities 8,129 6,650 4,325 3,638

Loans 64,801 49,895 66,302 50,984

Hire purchase and financial lease 3,327 2,892 - -

Others (27) 192 (27) 192

Total 83,693 62,271 78,028 57,440

(Million Baht)

37 INTEREST EXPENSES

Interest expenses for the years ended 31 December 2011 and 2010 consisted of:


2011 2010 2011 2010

Deposits 15,067 6,863 15,078 6,870


Contributions to Deposit Protection Agency 4,776 4,026 4,776 4,026

Debts issued

- Subordinated debentures 1,728 1,859 1,728 1,859

- Others 1,776 885 1,799 891

Borrowings 36 - 36 9

Others 61 49 105 80

Total 27,202 15,527 27,342 15,592


38 FEES AND SERVICE INCOME - NET

Fees and service income - net for the years ended 31 December 2011 and 2010 consisted of:

(Million Baht)

39 GAIN ON TRADING AND FOREIGN EXCHANGE TRANSACTIONS

Gain on trading and foreign exchange transactions for the years ended 31 December 2011 and 2010 consisted

of:


2011 2010 2011 2010

Fees and service income

Acceptances, aval and guarantees 1,803 1,657 1,803 1,657

Other 24,269 21,164 23,302 20,210

Total Fees and service income 26,072 22,821 25,105 21,867

Fees and service expenses 5,435 4,594 5,470 4,544

Fees and service income - net 20,637 18,227 19,635 17,323


2011 2010 2011 2010

1. Gain (loss) on trading and foreign

exchange transactions

- Foreign currencies and foreign

currency related derivatives

6,059

4,097

6,058

4,099

- Interest rate related derivatives (794) 91 (794) 91

- Debt securities 4 - 4 -

- Equity securities 4 268 5 257

- Others (59) 9 (59) 9

Total 5,214 4,465 5,214 4,456

(Million Baht)


Gain (loss) on disposal

Available-for-sale investments

Held-to-maturity debt instruments

General investments

Investments in subsidiaries and associates

Total

(Loss) Reversal on impairment and write-off of investment

Equity securities - available-for-sale

General investments

Investments in subsidiaries and associates

Total

Total gain on investments


2011 2010

1. Changes in the fair value - net

- Borrowing 16 (24)

2. Loss on redemption or transferable and interest expense

which is not excluded NO. 1.

(70)

(71)

Total (54) (95)

40 LOSS ON FINANCIAL LIABILITIES DESIGNATED AT FAIR VALUE THROUGH PROFIT OR LOSS

Loss on financial liabilities designated at fair value through profit or loss for the years ended 31 December 2011

and 2010 consisted of:

(Million Baht)


2011 2010

16 (24)

(70)

(71)

(54) (95)

41 GAIN ON INVESTMENTS

Gain on investments presented in the statements of comprehensive income for the years ended 31 December

2011 and 2010 consisted of: (Million Baht)

Consolidated

2011 2010

512 618

55 -

(19) (4)

7 -

555 614

(1) (4)

251 -

1 -

251 (4)

806 610

The Bank

2011 2010

89 257

- -

(19) (4)

(2) -

68 253

- (10)

251 -

1 -

252 (10)

320 243


42 IMPAIRMENT LOSS ON LOANS AND DEBT SECURITIES

Impairment loss on loans and debt securities for the years ended 31 December 2011 and 2010 consisted of:

(Million Baht)


2011 2010 2011 2010

Interbank and money market items 1 14 1 14

Held-to-maturity debt instruments (258) 5 (254) 9

Loans to customers 4,031 4,085 4,062 3,872

Loss on debt restructuring 3,572 2,597 3,571 2,596

Total 7,346 6,701 7,380 6,491

43 INCOME TAX EXPENSE

On 21 December 2011, the Government has issued a Royal Decree under the Revenue Code that give effect to

the Cabinet resolution on 11 October 2011 regarding the Reduction and Exemption in Income Taxes (No. 530)

B.E. 2554 to reduce the corporate income tax rate for the three accounting periods; from 30% to 23% for the

accounting period 2012 and to 20% for the following two accounting periods 2013 and 2014.

The Bank and subsidiaries shall be measured deferred tax assets and deferred tax liabilities at the tax rates that

are expected to apply to the period when the asset is realized or the liability is settled in line with Thai Accounting

Standard. The substantively enacted tax rates which should be applied in measuring deferred tax assets and

liabilities shall be 23% for the accounting period 2012 and 20% for accounting periods 2013 onwards that give

effect to implication of The Federation of Accounting Professions.


43.1 Income tax recognised in profit or loss for the years ended 31 December 2011 and 2010 consisted of:


2011 2010 2011 2010

Current tax expense

Current year 12,174 9,493 9,907 7,702

Deferred tax expense Movements in temporary differences (194) (399) 53 (213)

Income tax reduction

For items recognised before the Cabinet

resoluation 1,868 - 1,995 -

For items recognised after the Cabinet

resoluation 114 - 121 -

1,788 (399) 2,169 (213)

Total income tax expense 13,962 9,094 12,076 7,489

(Million Baht)

See Note 20 for movement in deferred tax assets and deferred tax liabilities during the year

43.2 Income tax recognised in other comprehensive income for the years ended 31 December 2011 and 2010

consisted of: (Million Baht)


2011 2010 2011 2010

Income taxes relating to components of other

comprehensive income

Movements in temporary differences 45 (824) (191) (25)

Deferred tax - income tax reduction 1,345 - 1,146 -

Total 1,390 (824) 955 (25)


43.3 Reconciliation of effective tax rates as consisted of


2011 2010

Rate (%) Amount Rate (%) Amount

Operating profit before income tax 40,144 30,440

Income tax using the Thai corporation tax rate 30.00 12,043 30.00 9,132

Deferred tax - income tax reduction


resoluation

1,868

-


resoluation

114

-

Tax effect of income and expenses

that are not taxable income or not deductible

in determining taxable profit, net

(63)

(38)

Total 34.78 13,962 29.88 9,094

(Million Baht) The Bank

2011 2010

Rate (%) Amount Rate (%) Amount

Operating profit before income tax 34,235 26,104

Income tax using the Thai corporation tax rate 30.00 10,270 30.00 7,831

Deferred tax - income tax reduction


resoluation

1,995

-


resoluation

121

-

Tax effect of income and expenses

that are not taxable income or not deductible

in determining taxable profit, net

(310)

(342)

Total 35.27 12,076 28.69 7,489


44 FINANCIAL RISK MANAGEMENT

Credit risk

Credit risk refers to the risk that a counterparty or a borrower may default on its contractual obligations and

agreements. Such default may be caused by the counterparty’s inability to pay due to financial

encumbrances or their intention not to abide by the contractual agreements, resulting in a loss to the Bank.

The bank has employed credit portfolio optimization techniques to determine the target of loan growth and

its desirable credit portfolio composition that strive for the highest possible risk-adjusted return within

acceptable risk levels under stress conditions, by taking into account of economic outlook, potential market

opportunities, and the bank’s strategic direction. The Bank has employed credit risk management

processes in credit processes. In assessing medium and large corporate customers’ credit risk level, the

Bank utilizes credit risk rating tools to enhance the quality of loans granted. Furthermore, the credit scoring

has been employed to determine the credit risk level of retail customers to ensure uniformity of assessment

results. To manage medium business and large corporate business portfolios following the approval

process, the Bank annually reviews customers’ credits rating a on qualitative and quantitative basis.

Regarding the management of retail portfolio, behavior scoring has been adopted for assessing customers’

risk level resulting in the Bank’s capability in determining risk-adjusted returns or interest rates. This also

enhances the determination of asset allocation across businesses and industries to diversify risks at an

aggregate level. Moreover, the bank has employed collection scoring to define risk-based collection

strategies and optimize collection efficiency. In addition, the Bank has conducted the stress tests to assess

potential impacts from political, financial shock on customer’s credit risk profiles, flooding, and other

situation in order to determine the implication to credit policy and credit risk management.


For loans item shown in the statements of financial position, the Bank’s maximum credit loss is the carrying

amount of net loans after deduction of applicable allowance for losses without considering the value of

collateral. In addition, credit risk may arise from off-financial reporting items or contingencies.

Market risk

Market risk is any risk due to changes in interest rates, foreign exchange rates, equity prices, commodity

prices and risk arising from credit derivatives which may cause volatility in the Bank’s earnings or

fluctuations in the value of the Bank’s financial assets and liabilities both in the current reporting period and

in the future.

The Bank currently faces 3 major types of market risk namely interest rate risk, foreign exchange rate risk

and equity position risk. As the Bank has chosen not to retain any position dealing with commodity prices

and credit derivatives, they have been managed under back-to-back policy.

In the credit approval process, the Bank considers the customer’s ability to repay and the loan objectives as

key factors in the approval of credit and may obtain sufficient collateral or other securities, where

appropriate, as a means of mitigating the risk of financial losses from default. To maximize the effectiveness

of the credit approval process, credit analysis and approval functions are separated from the units

responsible for maintaining customer relationships. The Bank also has processes for regularly reviewing

customers’ credit rating and performance on all approved transactions. For non-performing loans (NPL), the

Bank has closely and continuously monitored, resolved and/or restructured them to retain maximum benefits

for the Bank.


1. Interest rate risk

Interest rate risk refers to any risk arising from changes in interest rates which may affect the value of

the Bank’s financial instruments or may cause volatility in the Bank’s earnings or cost of funds, both in

the current reporting period and in the future. The Bank has employed various tools to manage interest

rate risk such as Value-at-Risk (VaR) and Interest Rate Risk Gap under the supervision of Risk

Management Committee and Assets and Liabilities Management Sub-committee.

An analysis of loans (including financial institutions) at fixed and floating interest rates (MLR, MOR and MRR) as

of 31 December 2011 and 2010 is as follows:

(Million Baht)


2011 2010 2011 2010

Fixed interest rates 463,588 376,137 455,797 369,061

Floating interest rates 841,264 772,016 839,540 769,819

Total Loans (including financial

institutions)

1,304,852

1,148,153

1,295,337

1,138,880

The average balances of the interest-bearing financial assets and liabilities of the Bank and its subsidiaries,

calculated by using the average of the beginning of the year and the ending of the year, and the average

interest rates for the years ended 31 December 2011 and 2010 are as follows:


Consolidated

2011 2010

Average

Balance

Interest

Income/

Expense

Average

Rate (%)

Average

Balance

Interest

Income/

Expense

Average

Rate (%)

Interest-bearing Financial Assets

Interbank and money market items 104,669 7,178 6.86 80,445 2,363 2.94

Investments 257,611 8,414 3.27 252,958 6,930 2.74

Loans to customers 1,105,320 68,128 6.16 973,625 52,787 5.42

Total 1,467,600 83,720 5.70 1,307,028 62,080 4.75

Interest-bearing Financial Liabilities

Deposits 1,171,133 15,067 1.29 1,037,764 6,863 0.66


Debts issued and borrowings 79,618 3,540 4.45 82,866 2,744 3.31

Total 1,293,953 22,365 1.73 1,160,655 11,452 0.99

(Million Baht)

The Bank

2011 2010

Average

Balance

Interest

Income/

Expense

Average

Rate (%)

Average

Balance

Interest

Income/

Expense

Average

Rate (%)

Interest-bearing Financial Assets


Investments 164,011 4,610 2.81 179,253 3,917 2.19

Loans to customers 1,097,071 66,303 6.04 966,586 50,984 5.27

Total 1,364,480 78,056 5.72 1,225,527 57,248 4.67

Interest-bearing Financial Liabilities

Deposits 1,173,045 15,078 1.29 1,040,147 6,870 0.66


Debts issued and borrowings 80,235 3,563 4.44 84,218 2,759 3.28

Total 1,299,166 22,461 1.73 1,165,867 11,486 0.99

(Million Baht)


Financial assets and liabilities, classified by maturity of interest repricing, as of 31 December 2011 and 2010 shown

below:

(Million Baht)

Consolidated

2011

Immediate

Repricing

Less than

6 months

6 months

to 1 Year

Over 1 Year

to 5 Years

Over

5 Years

Non-interest

Bearing

Stop

Accrued Total

Financial Assets

Cash - - - - - 53,211 - 53,211

Interbank and money market

items 6,814 97,172 5,585

80

- 2,378 - 112,029

Investments 176 9,505 68,192 95,066 76,197 26,497 820 276,453

Loans to customers 752,913 128,639 12,284 85,589 89,512 75,503 66,394 1,210,834

Accrued interest receivables - - - - - 2,105 - 2,105

Other assets 3,140 - - - - 9,087 - 12,227

Total Financial Assets 763,043 235,316 86,061 180,735 165,709 168,781 67,214 1,666,859

Financial Liabilities

Deposits 686,716 250,054 172,511 66,330 - 66,618 - 1,242,229


items 4,302 36,929 8,423 36

- 3,650 - 53,340

Liabilities payable on demand - - - - - 11,598 - 11,598

Financial liabilities designated

at fair value through profit

or loss -

993

701

419

-

- -

2,113

Debts issued and borrowings - 37,588 1,139 23,267 8,309 - - 70,303

Other liabilities 5,390 - - - - 7,340 - 12,730

Total Financial Liabilities 696,408 325,564 182,774 90,052 8,309 89,206 - 1,392,313

Items recognised on the

statements of financial

position 66,635 (90,248) (96,713) 90,683 157,400 79,575 67,214 274,546


(Million Baht)

Consolidated

2010

Immediate

Repricing

Less than

6 months

6 months

to 1 Year

Over 1 Year

to 5 Years

Over

5 Years

Non-interest

Bearing

Stop

Accrued Total

Financial Assets

Cash - - - - - 32,457 - 32,457


items 6,961 81,883 695

-

- 8,080 - 97,619

Investments 2,265 10,062 55,283 104,667 64,814 11,382 1,088 249,561



Other assets 836 - - - - 8,530 - 9,366



Deposits 687,502 158,301 91,826 101,631 - 60,776 - 1,100,036


items 1,815 27,090 131 1,031

- 2,997 - 33,064



at fair value through profit or

loss -

5,118

360 678

- - -

6,156

Debts issued and borrowings - 56,397 18,643 795 13,022 75 - 88,932





position 7,480 (44,476) (44,559) 76,484 134,259 9,869 66,681 205,738


The Bank

2011

Immediate

Repricing

Less than

6 months

6 months

to 1 Year

Over 1 year

to 5 Years

Over

5 Years

Non-interest

Bearing

Stop

Accrued Total

Financial Assets

Cash - - - - - 53,209 - 53,209


items

6,552

96,339

5,213 -

-

2,131

-

110,235

Investments 176 5,154 66,905 81,656 1,396 19,240 675 175,202



Other assets 3,140 - - - - 5,559 - 8,699



Deposits 688,037 250,149 172,511 66,330 - 66,833 - 1,243,860


items

7,510

36,929

8,423

36

-

3,878

-

56,776



at fair value through profit or

loss

-

993

701 419

-

-

-

2,113

Debts issued and borrowings - 38,212 1,139 23,267 8,309 - - 70,927





position

61,716

(94,020) (103,344)

75,774

81,951

67,884

65,318

155,279

(Million Baht)


(Million Baht)

The Bank

2010

Immediate

Repricing

Less than

6 months

6 months

to 1 Year

Over 1 year

to 5 Years

Over

5 Years

Non-interest

Bearing

Stop

Accrued Total

Financial Assets

Cash - - - - - 32,456 - 32,456


items

7,111

81,720

- -

-

7,965

-

96,796

Investments 2,265 7,189 54,157 97,421 3,638 2,625 1,088 168,383



Other assets 836 - - - - 5,782 - 6,618



Deposits 688,650 158,424 91,826 101,631 - 61,698 - 1,102,229


items

3,748

27,090

131

1,031

-

2,997

-

34,997



at fair value through profit

or loss

-

5,118

360 678

- -

-

6,156

Debts issued and borrowings - 57,007 18,643 795 13,022 75 - 89,542





position 1,877 (44,851) (50,636) 67,831 72,433 (2,863) 64,555 108,346


2. Foreign exchange rate risk

Foreign exchange rate risk is the risk that occurs from changes in exchange rates which may affect the

value of the Bank’s financial instruments or may cause volatility in the Bank’s earnings or cost of funds.

Tools adopted for managing foreign exchange rate risk are for instance, open positions and VaR.

Foreign exchange rate risk is under the supervision of Risk Management Committee and Assets and

Liabilities Management Sub-committees.

Foreign currency positions in Baht equivalent, as of 31 December 2011 and 2010 were as follows:

(Million Baht)

Consolidated

2011

Currency

US Dollar Yen Pound Euro Others Total

Assets

Cash 1,468 46 59 350 272 2,195

Interbank and money market items - net 9,148 113 164 752 7,037 17,214

Investments - net 10,845 118 - 204 53 11,220

Loans to customer and accrued interest

receivables - net

75,324

2,163

208

1,820

5,314 84,829

Derivatives - net 32,895 48 - - 6,100 39,043

Other assets 3,312 2 1 30 11 3,356

Total 132,992 2,490 432 3,156 18,787 157,857

Liabilities

Deposits 14,508 449 528 2,308 784 18,577

Interbank and money market items 3,408 7,684 - - 886 11,978

Liability on demand 4,513 106 60 562 145 5,386

Debts issued and borrowings 5,796 - - - - 5,796

Derivatives - net - - - 157 - 157

Other liabilities 2,494 51 5 448 164 3,162

Total 30,719 8,290 593 3,475 1,979 45,056

Foreign currency position of

items recognised on the statements of

financial position - net

102,273

(5,800)

(161)

(319)

16,808 112,801

items not recognised on the statements of


(112,028)

5,689

159

454

(12,514) (118,240)

(Forward exchange contracts, cross currency

swaps and FX options)


Consolidated

2010

Currency


Assets

Cash 1,011 65 71 383 236 1,766


Investments - net 7,798 107 - 198 39 8,142


receivables - net

63,900

1,645

47

1,068

1,289 67,949

Derivatives - net 68,893 43 - - 386 69,322

Other assets 777 8 2 16 3 806

Total 150,440 1,959 237 1,730 5,208 159,574

Liabilities

Deposits 11,863 212 635 1,818 559 15,087

Interbank and money market items 199 5,084 - - 4 5,287





Total 30,630 5,424 769 3,438 1,090 41,351




119,810

(3,465)

(532)

(1,708)

4,118 118,223



(130,974)

3,572

536

1,590

(501)

(125,777)



(Million Baht)


The Bank

2011

Currency


Assets

Cash 1,468 46 59 350 272 2,195


Investments - net 7,493 - - 3 23 7,519


receivables - net

75,324

2,163

208

1,820

5,314 84,829

Derivatives - net 32,895 48 - - 6,100 39,043

Other assets 3,280 2 1 22 11 3,316

Total assets 129,553 2,372 432 2,947 18,757 154,061

Liabilities

Deposits 14,508 449 528 2,308 784 18,577

Interbank and money market items 3,408 7,684 - - 886 11,978





Total liabilities 30,719 8,290 593 3,475 1,979 45,056




98,834

(5,918)

(161)

(528)

16,778 109,005



(112,028)

5,689

159

454

(12,514) (118,240)



(Million Baht)


The Bank

2010

Currency


Assets

Cash 1,011 65 71 383 236 1,766


Investments - net 6,490 - - 3 23 6,516


receivables - net

63,900

1,645

47

1,068

1,289 67,949

Derivatives - net 68,893 43 - - 386 69,322

Other assets 757 8 2 8 3 778

Total 149,112 1,852 237 1,527 5,192 157,920

Liabilities

Deposits 11,863 212 635 1,818 559 15,087

Interbank and money market items 199 5,084 - - 4 5,287





Total 30,630 5,424 769 3,438 1,090 41,351




118,482

(3,572)

(532)

(1,911)

4,102 116,569



(130,974)

3,572

536

1,590

(501)

(125,777)



(Million Baht)


3. Equity price risk

Equity price risk is any risk arising from changes in the price of equities or common stock that may

cause volatility in the Bank’s earnings or fluctuations in the value of the Bank’s financial assets.

The Bank manages risk arising from equity underwriting and investment in equity security under

relevant applicable regulations. The Bank has closely managed and monitored market situations to

provide information for management in order to retain maximum benefits for the Bank.

4. Commodity price risk

Commodity price risk is any risk arising from changes in the price of commodities which may affect the

value of the Bank’s financial instruments or may cause volatility in the Bank’s earnings or cost of funds.

The Bank has no policy to hold commodity position and then manages risk arising from commodity

position under back-to-back policy, and relevant applicable regulations. The Bank has closely

managed and monitored market situations to provide information for management in order to retain

maximum benefits for the Bank.

5. Credit derivatives price risk

Credit derivatives price risk is any risk arising from changes in the price of credit derivatives which may

affect the value of the Bank’s financial instruments or may cause volatility in the Bank’s earnings or cost

of funds. The Bank manages risk arising from credit derivatives under relevant applicable regulations.

Credit derivatives price risk is under the supervision of Risk Management Committee.

Liquidity risk

Liquidity risk is the risk of the prospect that the Bank will be unable to meet its obligations as they fall due

because of an inability to liquidate assets or obtain funding sufficiently in a timely manner with appropriate

cost which could result in losses.


The Bank manages its liquidity position under the Bank of Thailand’s liquidity reserve regulations and other

applicable regulations. The Treasury Department is accountable for managing the Bank’s liquidity position

by providing short-term and long-term funding sources as well as investing in highly liquid assets in both

domestic and foreign currencies. The Bank also ensures that its liquidity position is suitable and sufficient

for the current and foreseeable market conditions. The Assets and Liabilities Management Sub-committee

and the Risk Management Committee supervises management of liquidity risk.

Financial assets and liabilities, classfied by contractual matuarity analysis, as of 31 December 2011 and 2010

shown follows:

Consolidated

2011

At call

Less than

6 months

6 months

to 1 Year

Over 1 Year

to 5 Years

Over

5 Years

No

Maturity Total

Financial Assets

Cash - - - - - 53,211 53,211

Interbank and money market items 9,056 97,308 5,585 80 - - 112,029

Investments 58 9,382 49,538 113,031 77,816 26,628 276,453

Loans to customers 195,330 366,975 25,458 292,340 330,731 - 1,210,834

Accrued interest receivables 17 1,879 179 21 9 - 2,105

Other assets 3,140 4,723 - - - 4,364 12,227

Total Financial Assets 207,601 480,267 80,760 405,472 408,556 84,203 1,666,859


Deposits 753,334 316,412 125,532 46,951 - - 1,242,229

Interbank and money market items 7,947 36,930 920 66 7,477 - 53,340

Liability payable on demand 11,598 - - - - - 11,598

Financial liabilities designated at fair

value through profit or loss

-

359

616

1,138

-

-

2,113

Debts issued and borrowings - 37,323 633 6,438 25,909 - 70,303

Other liabilities 5,536 3,033 614 207 10 3,330 12,730

Total Financial Liabilities 778,415 394,057 128,315 54,800 33,396 3,330 1,392,313

Liquidity - net (570,814) 86,210 (47,555) 350,672 375,160 80,873 274,546

(Million Baht)


Consolidated

2010

At call

Less than

6 months

6 months

to 1 Year

Over 1 Year

to 5 Years

Over

5 Years

No

Maturity Total

Financial Assets

Cash - - - - - 32,457 32,457

Interbank and money market items 15,041 81,883 695 - - - 97,619

Investments 885 9,350 39,263 122,481 66,223 11,359 249,561


Accrued interest receivables 16 1,215 164 18 4 - 1,417

Other assets 836 3,390 - - - 5,140 9,366



Deposits 748,278 158,301 91,826 101,631 - - 1,100,036





-

2,918

169

3,069

-

-

6,156

Debts issued and borrowings - 55,480 1,051 1,779 30,622 - 88,932

Other liabilities 6,715 665 309 465 9 3,690 11,853


Liquidity - net (579,976) 192,292 (28,489) 287,669 288,976 45,266 205,738

(Million Baht)


The Bank

2011

At call

Less than

6 months

6 months

to 1 Year

Over 1 Year

to 5 Years

Over

5 Years

No

Maturity Total

Financial Assets

Cash - - - - - 53,209 53,209

Interbank and money market items 8,548 96,474 5,213 - - - 110,235

Investments 45 5,194 48,252 100,418 2,055 19,238 175,202


Accrued interest receivables - 1,896 - - - - 1,896

Other assets 3,140 1,853 - - - 3,706 8,699



Deposits 754,870 316,507 125,532 46,951 - - 1,243,860





- 359 616 1,138 - - 2,113

Debts issued and borrowings - 37,947 633 6,438 25,909 - 70,927

Other liabilities 2,809 3,037 614 207 10 3,330 10,007


Liquidity - net (577,519) 79,637 (54,431) 336,104 298,665 72,823 155,279

(Million Baht)


The Bank

2010

At call

Less than

6 months

6 months

to 1 Year

Over 1 Year

to 5 Years

Over

5 Years

No

Maturity Total

Financial Assets

Cash - - - - - 32,456 32,456

Interbank and money market items 15,076 81,720 - - - - 96,796

Investments 459 7,189 38,474 115,372 4,267 2,622 168,383


Accrued interest receivables - 1,225 - - - - 1,225

Other assets 836 1,267 - - - 4,515 6,618



Deposits 750,348 158,424 91,826 101,631 - - 1,102,229





- 2,918 169 3,069 - - 6,156

Debts issued and borrowings - 56,090 1,051 1,779 30,622 - 89,542

Other liabilities 5,160 667 309 465 9 3,690 10,300


Liquidity - net (586,167) 188,302 (34,594) 278,499 226,403 35,903 108,346

(Million Baht)


45 FAIR VALUE OF FINANCIAL INSTRUMENTS

Fair value is the estimated value that the Bank and its subsidiaries could receive from the sale of financial assets,

or the estimated cost of redeeming their financial liabilities. Fair values are based on market value, or estimated

values derived from using general market principles of calculation.

The following is a summary of carrying amounts and estimated fair values of financial assets and liabilities and

off-balance sheet items as of 31 December 2011 and 2010.

(Million Baht)

Consolidated

2011 2010

Carrying

Amount

Fair value

Carrying

Amount

Fair value

Financial Assets

Cash 53,211 53,211 32,457 32,457

Interbank and money market items - net 111,969 111,969 97,560 97,560

Investments - net 264,143 272,192 251,080 255,708

Investments in subsidiaries and associates - net 152 152 138 138


receivables - net 1,172,596 1,172,596 1,041,566 1,041,566

Other assets 12,227 12,227 9,366 9,366

Total Financial Assets 1,614,298 1,622,347 1,432,167 1,436,795


Deposits 1,242,229 1,242,229 1,100,036 1,100,036


Liabilities payable on demand 11,598 11,598 21,622 21,622

Financial liabilities designated at fair value

through profit or loss 2,113 2,113 6,156 6,156

Debts issued and borrowings 70,303 70,690 88,932 89,716

Other liabilities 12,730 12,730 11,853 11,853

Total Financial Liabilities 1,392,313 1,392,700 1,261,663 1,262,447


The Bank

2011 2010

Carrying

Amount

Fair value

Carrying

Amount

Fair value

Financial Assets

Cash 53,209 53,209 32,456 32,456

Interbank and money market items - net 110,205 110,205 96,768 96,768

Investments - net 159,907 159,959 168,115 168,184

Investments in subsidiaries and associates - net 14,127 14,127 15,583 15,583


receivables - net 1,163,915 1,163,915 1,033,347 1,033,347

Other assets 8,699 8,699 6,618 6,618

Total Financial Assets 1,510,062 1,510,114 1,352,887 1,352,956


Deposits 1,243,860 1,243,860 1,102,229 1,102,229


Liabilities payable on demand 11,598 11,598 21,616 21,616

Financial liabilities designated at fair value

through profit or loss 2,113 2,113 6,156 6,156

Debts issued and borrowings 70,927 71,314 89,542 90,326

Other liabilities 10,007 10,007 10,300 10,300

Total Financial Liabilities 1,395,281 1,395,668 1,264,840 1,265,624

The following methods and assumptions were used by the Bank in estimating fair values of financial assets and

liabilities as disclosed herein:

The values of cash, interbank and money market items (assets and liabilities), other assets, deposits, liabilities

payable on demand, financial liabilities designated at fair value through profit or loss and other liabilities are

stated at their carrying values on the statements of financial position.

(Million Baht)


The fair values of held-for-trading investments and available-for-sale investments are stated according to the

Bank’s accounting policies mentioned in Note 10.

The fair values of held-to-maturity investments is estimated by using market values.

The fair value of general investments and investments in subsidiaries and associates are stated at cost, net of

allowance for their impairment.

The fair values of loans to customers and accrued interest receivables are based on the carrying values of loans

to customers and accrued interest receivables, net of deferred revenue, allowance for doubtful accounts and

revaluation allowance for debt restructuring.

The fair values of debts issued and borrowings are estimated by using market values.

46 RECLASSIFICATION OF ACCOUNTS

Financial statements as at 31 December 2010 have been reclassified to be presented in order to comply with

Thai Financial Reporting Standards and the Bank of Thailand (BoT) notification number Sor Nor Sor 11/2553,

directive dated 3 December 2010, regarding “The preparation and announcement of the financial statements of

commercial banks and holding companies which are parent company of group of companies offering financial

services”.

CORPORATE GOVERNANCE 219 Report of the Corporate Governance Committee

220 Report of the Human Resources and Remuneration Committee 221 Corporate Governance

254 Dividend Policy

255 Factors Affecting Investment Decisions

219Annual Report 2011Corporate Governance

The Corporate Governance Committee of KASIKORNBANK PCL comprises four directors of the Bank: Pol. Gen. Pow Sarasin, Non-Executive Director, Chairman of the Corporate Governance Committee; Mr. Sukri Kaocharern, Non-Executive Director; Professor Dr. Yongyuth Yuthavong, Independent Director; and Mr. Hiroshi Ota, Independent Director. The main responsibilities of the Committee are to oversee the Bank’s business practices in compliance with the Statement of Corporate Governance Principles, laws and regulations, to ensure effective practice of corporate governance principles by the Bank, and to supervise Corporate Social Responsibility (CSR). Five meetings were held in 2011, which covered a large area of the Bank’s activities in accordance with the Committee’s duties and responsibilities, and can be summarized as follows: • Endorsing a strategic plan and activities to enhance good corporate governance. Emphasis has been placed on the maintenance of corporate governance standards of the Bank, and the establishment of corporate governance as an organizational culture, by regularly communicating the Statement of Corporate Governance Principles and Code of Conduct to all directors, executives and employees via various channels. In addition, a CG alert system was developed for the directors and executives, in order to minimize compliance risk. This year, the KGroup CG Index project was initiated for use as the index to monitor and assess the corporate governance practices of the Bank, K Companies and P Companies. • Commenting on and recommending the action plan and related activities of KASIKORNBANKGROUP. • Reviewing the Statement of Corporate Governance Principles, Charters of the Board of Directors and Board Committees, as well as the Statement of Business Conduct and Code of Conduct, and KASIKORNBANKGROUP Disclosure Policy, keeping them up-to-date, in accordance with the ongoing business undertakings of the Bank and in line with the laws, international practices and best practices, as prescribed by the Stock Exchange of Thailand,

the Office of the Securities and Exchange Commission, the Capital Market Supervisory Board and the Bank of Thailand. • Reviewing practices of the Bank under the criteria of Corporate Governance Report of Thai Listed Companies, by the Thai Institute of Directors Association. • Endorsing guidelines of the Corporate Governance Report and Corporate Social Responsibility Activities Report in the Annual Report.

In 2011, the Bank was presented with the SET Award of Honor for continuous excellence in Corporate Governance Report 2008 - 2011 and Best Investor Relations Award, presented by the Stock Exchange of Thailand and Money & Banking magazine at the “SET Awards 2011” ceremony. The Bank also achieved the recognition level of “Excellent” from Corporate Governance Report of Thai Listed Companies in 2011, organized by the Thai Institute of Directors Association, in addition to special commendation for exemplary performance with an “Excellent” score from quality assessment of Annual General Meeting arrangement among listed companies in 2011 for the sixth consecutive year, organized by the Thai Investors Association in cooperation with the Office of the Securities and Exchange Commission and the Thai Listed Companies Association. The Bank was also honored with the 2011 NACC Integrity Award, which was awarded for the second time, from the National Anti-Corruption Commission. The Bank strongly believes that its continued transparent and fair business undertakings will contribute to long-term business sustainability and create confidence among all shareholders and stakeholders.

REPORT OF THE CORPORATE GOVERNANCE COMMITTEE

(Pow Sarasin)Chairman, Corporate Governance Committee

Pol. Gen.

220 Annual Report 2011Corporate Governance

The Human Resources and Remuneration Committee of KASIKORNBANK PCL comprises four directors, namely Mr. Somchai Bulsook, independent director, as Chairman, Dr. Abhijai Chandrasen, non-executive director, Professor Dr. Pairash Thajchayapong, independent director, and Ms. Kobkarn Wattanavrangkul, independent director, as members. The Committee held 6 meetings in 2011.

According to its Charter, the Human Resources and Remuneration Committee has the duties and responsibilities for formulation of human resource policy, director and senior executives nomination, review of the Board of Directors remuneration and recommendation on compensation for the senior executives specified by the policy in line with the business direction of the Bank, as well as recommendation of the executive succession plan.

As for the nomination of directors, members of Board committees and senior executives, the Human Resources and Remuneration Committee is responsible for nominating qualified persons with primary qualifications specified by the Bank and not having characteristics prohibiting them from holding a directorship. In addition, factors to be taken into consideration include the appropriate proportion, size and composition of the Board as well as compliance with regulatory requirements, the Bank’s Articles of Association and the Statement of Corporate Governance Principles.

Concerning the nomination of the Chief Executive Officer or President when necessary, the Committee considers suitable persons from the list in the succession plan. The qualifications of candidates for director and senior executive positions have been regularly reviewed.

Upon reviewing the remuneration for directors and senior executives, as disclosed in the Annual Report, the Human Resources and Remuneration Committee deemed it commensurate with the scope of their duties and responsibilities, taking into consideration such factors as the Bank’s performance results, performance assessment as well as the overall business and economic environment.

(Mr. Somchai Bulsook)Chairman, Human Resources and Remuneration Committee

REPORT OF THE HUMAN RESOURCES AND REMUNERATION COMMITTEE


1. Rights of Shareholders In recognizing the importance and rights of shareholders,the Board of Directors makes every effort to treat shareholders equally and fairly, as specified under the Articles of Association of the Bank and related laws. The basic legitimate rights of shareholders include the right to participate in shareholders meeting, the right to appoint a proxy to participate in and vote at shareholders meeting, the right to vote for the appointment or removal of individual directors, the right to vote on the annual appointment of independent auditors and the setting of annual audit fees, and the right to vote on various other businesses of the Bank. Shareholders rights also include eligibility to receive dividend payments, the right to give opinions and enquire into business matters of the Bank during shareholders meeting, and the right to receive sufficient information in a timely manner. Apart from the basic rights above, the Board of Directors emphasizes the disclosure of accurate, complete, timely, and transparent information to shareholders. Information updates are regularly provided on the Bank’s website in four languages: Thai, English, Chinese, and Japanese, as well as to the public media. In 2011, the Bank took the following measures to facilitate and promote the rights of shareholders: 1. The Board of Directors Meeting No. 2/2011, on February 24, 2011, resolved to schedule the 2011 Annual General Meeting of Shareholders on April 7, 2011. The resolution was published on the information dissemination system of the Stock Exchange of Thailand starting the day the resolution was passed.

2. Before the General Meeting of Shareholders, the Bank arranged delivery of the meeting notice to sharehoders, with information on the date, time, and venue of the meeting, a map of the meeting site, and the meeting agenda, in accordance with the law, the Stock Exchange of Thailand’s requirements, and the Bank’s Articles of Association. In addition, proxy forms and a complete set of supporting documents for the meeting agenda, together with the Bank’s Articles of Association related to the meeting, were sent to shareholders for their consideration more than 14 days prior to the meeting date. Along with the meeting notice, shareholders were sent sufficient information to allow them to vote on every agenda item, each of which was identified clearly as either for acknowledgment, or for approval, or for consideration, together with sufficient and clear comments by the Board of Directors to help shareholders in their voting decisions. All of the information sent in document form was also posted on the Bank’s website (www.kasikornbankgroup.com) more than 30 days prior to the meeting date, to ensure that shareholders received the information in a convenient and timely manner. Moreover, the meeting notice was published in the Thai daily newspaper for at least 3 consecutive days, at least 3 days before the meeting date. The Notice of the General Meeting of Shareholders and the meeting documentation in English were sent to foreign shareholders and posted on the Bank’s website.

CORPORATE GOVERNANCE

Dissemination of information via KBank website prior to the MeetingScene from the 99th General Meeting of Shareholders


For those attending the General Meeting of Shareholders or their proxies, the Bank gave detailed information as to which documents were necessary for shareholders to present on the meeting date in order to have the right to attend the meeting, including a proxy form per the Ministry of Commerce designation. Also included was a list of independent directors, the Chairman of the Board, the Chief Executive Officer and President, and any other persons whom the shareholders might wish to appoint as proxy, to cast votes at the meeting on his/her behalf. 3. On the meeting date, the Bank arranged for shareholder registration to begin more than one hour prior to the meeting schedule. Preparation of the venue and an appropriate number of greeters were also arranged to assist shareholders. In 2011, the Bank used the AGM Voting Service, organized by Thailand Securities Depository Co., Ltd. A barcode system was used for shareholder registration and proxy registration as in the previous year, allowing for a quick and efficient registration process. Printed ballots were handed out to each shareholder for voting on each agenda item. In addition, the Bank showed video presentations of the voting procedure, to clarify and enhance shareholder understanding of the process. 4. Before the meeting commenced, the Chairman of the meeting announced that all shareholders had been

informed of the voting and vote-counting procedure. The counting of votes was carried out in a transparent manner. The Bank adopted the Thailand Securities Depository Co., Ltd. system to facilitate vote counting. One share equaled one vote; approval of a resolution was based on the majority of votes, except for certain resolutions which required the approval of no less than two-thirds of all votes of those attending the meeting, or three-fourths of all votes of those attending the meeting and casting their votes. This practice was in line with the Bank’s Articles of Association and the law. In the 99th General Meeting of Shareholders, the Chairman of the Board acted as Chairman of the meeting, which was also attended by the Chief Executive Officer and President and the Chairmen of all Board Committees. Altogether, there were 13 directors in attendance: 1. Mr. Banyong Lamsam Chairman 2. Pol. Gen. Pow Sarasin Vice Chairman and Chairman of the Corporate Governance Committee 3. Mr. Banthoon Lamsam Director and Chief Executive Officer and President 4. Mr. Sukri Kaocharern Director and Chairman of the Risk Management Committee

KBank Board of Directors at the MeetingScene from the registration desk prior to the Meeting


5. M.R. Sarisdiguna Kitiyakara Independent Director and Chairman of the Audit Committee 6. Mr. Somchai Bulsook Independent Director and Chairman of the Human Resources and Remuneration Committee 7. Professor Khunying Suchada Kiranandana Independent Director 8. Professor Dr. Yongyuth Yuthavong Independent Director 9. Dr. Abhijai Chandrasen Director and Legal Adviser 10. Ms. Elizabeth Sam Independent Director 11. Professor Dr. Pairash Thajchayapong Independent Director 12. Mr. Hiroshi Ota Independent Director 13. Ms. Kobkarn Wattanavrangkul Independent Director 5. During the meeting, the Chairman of the meeting offered all shareholders an equal opportunity to give suggestions and ask questions within an appropriate time frame, and allowed directors in charge of topics that were raised to clarify and provide complete information to shareholders. Moreover, shareholders were given the opportunity to submit questions concerning meeting agenda items in advance,

beginning the day they were notified of the meeting and the meeting agenda until one week before the shareholders meeting date. These criteria were disclosed via the information dissemination system of the Stock Exchange of Thailand and the Bank’s website. Shareholders who entered the meeting after it had commenced were allowed to vote for agenda items that were still under consideration. 6. So as to provide the highest satisfaction to shareholders, the Bank continues to publish the quarterly newsletter “Sarn Samphan”, providing information and news on the overall economy, stock market, investments, and other information that may be beneficial to shareholders. The newsletter can be found on the Bank’s website.

2. Equitable Treatment of Shareholders Recognizing the importance of the equitable treatment of shareholders, the Board of Directors established a Corporate Governance Policy based on shareholders rights and the equal and fair treatment of all shareholders, and undertook the following tasks: 1. To promote good governance, the Bank provided shareholders with the opportunity, before the shareholders meeting, to propose matters for inclusion as agenda items, and also the opportunity to propose qualified candidates having no prohibited characteristics

“Sarn Samphan” newsletter for KBank shareholdersScene from the meeting room


for election as director at the General Meeting of Shareholders. Both options are under the specified criteria and process of the Board and relevant regulatory agencies. Guidelines on the proposing procedure and shareholders rights were provided to shareholders through the information dissemination system of the Stock Exchange of Thailand and disclosed on the Bank’s website, including the Bank’s decisions and reasons related to proposed agenda items or candidates proposed for the meeting. In 2011, the Bank posted this notification 5 months prior to the meeting; shareholders proposed no items to be included in the agenda, nor did they propose any candidates for election as directors. 2. The Bank arranged for the shareholders meeting to be conducted in a transparent and efficient manner, in line with the Bank’s Articles of Association and related laws. The consideration of items and voting were conducted in accordance with the announced agenda. This included consideration of the election of directors individually and director remuneration, together with consideration of the annual appointment of independent auditors, setting of the audit fee, and other agenda items as specified in the meeting notice. During the meeting, in addition to related meeting documents, the Bank prepared video presentations and provided English translations for foreign shareholders. 3. Shareholders unable to participate in the meeting in person had the option to appoint proxies to the meeting. Proxies could be any independent director, or the Chairman of the Board, or the Chief Executive Officer and President, or any other person appointed to participate in voting on behalf of the shareholder. Proxy forms were designed in such a way that shareholders were able to designate their preferred direction of voting. 4. Ballots were used to vote on every agenda item. To enable efficient and rapid vote counting, the Bank collected only the ballots of shareholders opposing or abstaining from each vote. To comply with the best practices for shareholders meeting, the Bank collected the ballots from all shareholders and proxies

present at the meeting after the meeting was adjourned, arranged to have officers from a legal advisory firm verify the vote counting, and asked shareholder volunteers to witness ballot counts. Also, the Bank kept the ballots for future reference. 5. Comprehensive meeting minutes were recorded. They included significant details, e.g., meeting resolutions, voting results (divided into approval, opposition, abstention, or invalid ballots for each agenda item), questions, explanations, and opinions of the meeting. The minutes of the shareholders meeting were sent to regulatory agencies within 14 days of the meeting, and to shareholders for their acknowledgment, also available on the Bank’s website. Moreover, the Bank arranged for the meeting to be recorded on video for future use. 6. The Bank has established internal regulations to supervise the use of inside information and securities and stock futures trading by directors and employees, in compliance with the securities laws and Corporate Governance Principles. The essence of the internal regulations is presented as follows: • All operational units must set up a system and manage their workplace, including maintaining inside information, to prevent disclosure to others. Inside information can be used and sent only by persons who need to know or use that information for their operations. • Directors and employees are prohibited from buying, selling, transferring, or obtaining the transfer of securities and stock futures in any manner that may take advantage of outsiders by using inside information that may have a significant impact on the price of securities and has not been disclosed to the public or the Stock Exchange of Thailand. Though they may have become aware of such information in their capacity, either as directors or employees of the Bank, such actions are prohibited, whether to favor themselves or others, or to reveal such information to others to act upon it or receive benefit thereof. • The Bank has regulated that directors, officers in the position of Senior Executive Vice President or


equivalent and higher, and staff in the position of Department Head or equivalent and higher in the Financial Accounting Management Department or Financial Planning Department under the Financial and Control Division, must report their ownership of securities issued by the Bank and stock futures with underlying Bank stock, including those under ownership of their spouses and minor children. Moreover, they must report every change in their holding of securities issued by the Bank and stock futures with underlying Bank stock, i.e. by any purchase, sale, transfer, or obtaining the transfer of securities and stock futures, as regulated by the Office of the Securities and Exchange Commission, and also must have a copy of their ownership report of securities submitted to the Corporate Secretary who shall collectively provide such reports to the Board of Directors Meeting. Furthermore, the Bank requires that all personnel who have access to significant inside information, under the above criteria, report their ownership of securities issued by the Bank and stock futures with underlying Bank stock, including those under the possession of their spouses and minor children, to the Bank’s Compliance Department. • Concerning the supervision of securities and stock futures trading and prevention of the use of inside information, the Bank has stipulated a silent period for securities and stock futures trading by directors and related staff, including their spouses and minor children, prohibiting trading of securities issued by the Bank and stock futures with underlying Bank stock starting one month prior to the Bank’s disclosure of financial statements or quarterly performance, and lasting until the second day after the information has been disclosed. Internal regulations on the prevention of the use of inside information are disseminated at the beginning of each year and quarterly to directors and related staff through various operating channels of the Bank, including regular monitoring of actions. In the past year, directors and related staff strictly adhered to internal regulations.

7. The Bank has established directors and executives to report on their interests and related persons’ interests to the Corporate Secretary, for further submission to the Chairman and the Chairman of the Audit Committee as specified by the Securities and Exchange Act, and report on every change in such reports. The reports for 2011 were presented to the Chairman and the Chairman of the Audit Committee.

3. Roles of Stakeholders The Bank places particular emphasis on the equal rights of all stakeholders, both internal stakeholders, i.e., shareholders, the Board of Directors, employees of the Bank and subsidiary companies; and external stakeholders, i.e., customers, counterparties, competitors, creditors, public sector and other related agencies, as well as the community, the environment and the society at large, including human rights. In order to ensure the rights of stakeholders, the Bank established a Statement of Business Conduct and a Code of Conduct for all employees, which have been disseminated through the Bank’s website and internal communication media such as the KASIKORNBANKGROUP newsletter, intranet and KASIKORNTV - the Bank’s closed-circuit TV network, for strict adherence by directors, executives, and employees at all levels. In addition, the Bank assigned the Compliance Department of the Compliance and Audit Division to monitor the performance of all employees in compliance with the Code of Conduct, and assigned the Corporate Governance Unit under the Office of Corporate Secretary, Corporate Secretariat Division, to oversee all governance issues of the Bank and to report to the Corporate Governance Committee for acknowledgement. Realizing the importance of stakeholders involvement, the Bank provides communication channels to receive suggestions, useful information, or complaints of improper actions from stakeholders, which are then conveyed to the Bank’s Board of Directors in accordance with the guidelines disclosed on the Bank’s website. For transparency purposes, as well as for the protection of the rights of information providers, the Bank has established a policy for the receipt of information or complaints, with specific channels for complaints, management procedures, and measures for the protection of information providers’ rights and the protection of confidential information. Only authorized persons have access to this confidential information and are


able to investigate complaints. Independent directors supervise the consideration and reporting to the Board of Directors. In cases where stakeholders are affected by a disregard to their legitimate rights, the Bank has enforcement measures to ensure them fair treatment.

Shareholders: The Bank is determined to achieve good operating performance, sustainable growth, and competitiveness, with due consideration given to both current and future risk factors, in order to maximize shareholders value over the long term. The Bank discloses all information in a fair and transparent manner, and makes every effort to protect the Bank’s assets and uphold its reputation.

The Board of Directors: The Board of Directors is fully aware of the authority, duties, and responsibilities of directors, as well as the rights of stakeholders, and undertakes measures to ensure that these legitimate rights are provided, and that all stakeholders are treated equally and fairly. Employees: Employees are valuable assets of the Bank. The Bank continues to seek capable and experienced personnel in line with its growth and the demands of the organization. Necessary training programs are continuously provided to enhance employees’ capabilities, and appropriate remuneration - comparable to that of other leading companies - is offered. Favorable business culture and atmosphere are promoted in the workplace, together with fair, equal treatment, and respect for the honor, dignity, and individual rights of all employees. The Bank recognizes the need for proper welfare and security for employees, and provides benefits such as provident funds, scholarships for employees and their children, annual medical check-ups, as well as safety procedures such as fire drills and the installation of fire prevention systems, etc. Customers: The Bank aims to promote customer satisfaction by offering diverse, complete, and high-quality financial products and services, in response to the needs of customers. The Bank gives due attention to and holds itself accountable to customers, and, more importantly, gives high priority to the protection of their confidential information. Customers are provided with explanations of the risks related to the use of various financial services, and are given the opportunity to express opinions through responsible parties that the Bank has assigned to handle customer complaints.

Counterparties: The Bank respects compliance with contracted terms and conditions in trade, in fair and acceptable competition, and refrains from all mala fide practices.

Competitors: The Bank observes fairness in competition and does not practice any mala fide methods that are deleterious to competitors. Creditors: The Bank abides by lending terms and conditions and all legitimate duties to creditors, debenture holders, and depositors. The Bank also gives clear explanations to customers on all of the possible risks involved with non-deposit financial services.

Responsibility to the Community, the Environment, and the Society: The Bank operates as a good financial institution and conducts business according to the Statement of Corporate Governance Principles. The Bank believes that environmental and social responsibilities are part of sustainable development. The Board of Directors has established a Corporate Social Responsibility (CSR) Policy as follows: • To strictly adhere to the Statement of Business Conduct, and to participate in social development and environmental protection • To encourage employees at all levels to strictly abide by the Code of Conduct and CSR Principles • To launch CSR activities for the benefit of all stakeholders • To arrange workplaces with an emphasis on safety, occupational health, environmental concerns, and facilitation for employees and customers • To promote environmental preservation and contribution to society The Bank acts as a good citizen, is non-partisan, and is non-aligned with any political party. The Bank bears in mind its role as part of the society at large and its responsibility to assist society and promote activities that benefit the community, the society, and the environment, in order to enhance the living standards of the people. The Bank recognizes the importance of and demonstrates concern for sound environmental protection through continuing efforts and activities for enhanced energy efficiency and environmental conservation; it also organizes training courses and encourages employee involvement through the expression of opinions and participation in activities related to the development of the community and environment on a regular basis. In 2011, for instance, the Bank launched the “Helping Each Other in the Thai Spirit” project wherein employees voluntarily joined hands to give assistance to flood victims. The “Green at


Heart: 1 Person, 1 Idea Worth Baht 8 for a Green Society” was implemented to raise the environment awareness of the Bank staff and the community. Details are included under the heading Corporate Social Responsibility (CSR) Activities in this annual report. The Bank also specified other procedural guidelines, as follows: Fairness: The Bank demonstrates fairness to all parties having business relationships with the Bank, and does its best to avoid any bias or events that would lead to conflicts of interest.

Ethics: The Bank adheres to its Statement of Business Conduct and pursues every business endeavor with integrity. Professionalism: The Bank maintains professional standards, aiming high for superb quality integrated with modern and sophisticated technology. Responsiveness: The Bank has the readiness to respond to the needs of its customers and society, as well as to changes in the economy and technology, both at present and in the future. Discipline and Compliance: The Bank pursues business with discipline and ethical principles, and certifies that its business operations comply with the law, the Statement of Business Conduct, and the Code of Conduct for employees, such as protection of intellectual property rights and copyright. A software compliance policy was implemented to ensure that only copyrighted software is used in the Bank’s information system. A prohibition against offering or receiving bribes for business benefit, etc. has been incorporated into the Code of Conduct.

4. Disclosure and Transparency Realizing the importance of transparent information disclosure, the Bank has supervised and set up the KASIKORNBANKGROUP Disclosure Policy, approved by the Board of Directors. The objective of this policy is to ensure that disclosures of KGroup’s financial and non-financial information to shareholders, investors, analysts, regulatory agencies, and the general public are accurate, complete, timely, equal, transparent, consistent, and in accordance with all applicable laws, regulatory requirements, and criteria. On May 18, 1998, the Bank established the Investor Relations and Shareholders Services Unit under the Executive Services Department, Corporate Secretariat Division. In 2007, under a change in organizational structure, the unit was renamed the Investor Relations Unit, under the Office of Corporate Secretary, with the objective and responsibility of handling investor relations activities. Responsibilities of the Investor Relations Unit also include setting up annual investor relations plans and providing timely and accurate information to shareholders, investors, analysts, and credit rating agencies, both local and international, so as to enhance the Bank’s image and reputation for reliability among investors and deliver efficient service to the Bank’s shareholders. The Shareholder Relationship Management Unit, under the Office of Corporate Secretary, is responsible for the management and supervision of shareholder rights, as well as strengthening relationships with the Bank’s minor

Dissemination of information on investor relations via KBank website 2010 Annual Report


shareholders. The unit has developed a strategic plan to create, maintain, and promote cordial relationships with minor shareholders. This has enhanced the image and credibility of the Bank as an exemplary organization with respect to the care and services provided to minor shareholders. Marketing activities were organized to build connections with shareholders and provide them useful information, such as panel discussions on the economy, stock market and investment, publication of quarterly shareholder newsletters on the Bank’s website containing economic and investment news, distribution of documents notifying shareholders of services such as returned cheques, changing share certificates, and the e-Dividend service. These activities received positive feedback from shareholders. In addition, the Bank formulated and imposed the KASIKORNBANKGROUP Disclosure Policy for disseminationof significant information, authorizing the Chairman, Chief Executive Officer, President, Domain Coordinators, Chief Financial Officer, or Corporate Secretary to consider and make decisions on the content of significant information for public disclosure. Any one of them may disclose information by him/herself, or to assign relevant parties to handle this task. The executive entrusted as Chief Investor Relations Officer has the authority to hold press conferences or to disseminate significant information related to KGroup, and to reply to questions raised by shareholders, investors, and securities analysts. The Public Relations Unit coordinates with information owners in disseminating significant information related to KGroup.

In 2011, the Bank adequately disclosed important financial information in its financial statements. The disclosures were in line with regulations of the Bank of Thailand, Stock Exchange of Thailand, Office of the Securities and Exchange Commission, and Financial Reporting Standards. Such information was also disseminated via the SET Community Portal and the Bank’s website. The financial statements were audited by certified public accountants and were endorsed by the Audit Committee before disclosure to shareholders; the Board of Directors of the Bank also disclosed its report of the responsibilities for financial reports in the annual report. Moreover, the Bank has published unreviewed/undudited quarterly financial statements, reviewed/audited financial statements and Basel II Pillar 3 Disclosures, as well as other non-financial information such as the Management Discussion and Analysis (MD&A) and information on the Bank’s corporate governance for the benefit of shareholders, investors, and analysts. In addition, the Bank has periodically evaluated the effectiveness of its disclosure procedures. The Bank enforces a 7-day silent period before the quarterly operating results are reported to the Stock Exchange of Thailand. During this period, no information related to the Bank’s performance is revealed to shareholders, investors, and analysts. Company visits/participation in one-on-one meetings/group analyst meetings/replies to questions related to the Bank’s operating results do not occur during this period. This practice is regarded as a key policy of the Bank, to ensure that operations of units are consistent with the Bank’s

e-Dividend service and KBank new share certificate

บริการจายเงินปนผล

Cash Benefit Transferred into Bank Account

เขาบัญชีธนาคาร

T h a i l a n d S e c u r i t i e s D e p o s i t o r y C o . , L t d .

บริษัท ศูนยรับฝากหลักทรัพย (ประเทศไทย) จำกัดwww.tsd.co.th / TSD Call Center 0-2229-2888 / Email: [email protected]

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• เงินเขาบัญชี ณ วันกำหนดจาย • ไดรับหนังสือรับรองการหักภาษี ณ ที่จาย เปนหลักฐานเหมือนเดิม ไมเสียคาธรรมเนียมใดๆ บร ิการน ี้รวมถึง เงินปนผล ดอกเบ้ีย และสิทธิอื่นๆ ที่เปนตัวเงิน

Luncheon Talk held by KBank Executive for fund managers


Type of Meeting

One-on-One Meetings 150 255 321Conference Calls 38 39 54Group Analyst and Investor Meetings 5 232 273Investor Conferences 4 61 82Non-deal Roadshows 7 146 277

Total 204 733 1,007

No. of Events No. of Companies No. of Persons

procedures, which are always in compliance with the Statement of Corporate Governance Principles. In this way, the Bank can ensure that its disclosures are transparent and equally accessible to all. For disclosures on important information, the Bank uses various communication channels, communicating regularly through public media channels so that the Bank’s shareholders and stakeholders have thorough access to information. Information outlets include: 1. The Stock Exchange of Thailand 1) The Annual Report 2) The Bank’s Financial Statements 3) Notification of the Board of Directors’ Resolutions and Other Matters 2. The Office of the Securities and Exchange Commission 3. The Ministry of Commerce

4. Newspapers 5. Magazines and journals 6. Televisions 7. KBank IR/PR News 8. KBank website (www.kasikornbankgroup.com) Information available in four languages: Thai, English, Chinese, and Japanese 9. Company Visits/One-on-One Meetings 10. Non-deal Roadshows, both in Thailand and overseas 11. Analyst Meetings 12. Press Conferences 13. Notice and meeting documents sent by mail to shareholders In 2011, the Bank’s executives and Investor Relations Unit met with various groups in the following settings to provide information:

In 15 of the above events, a total of 188 persons from 132 companies met with the Bank’s Chief Executive Officer and President. Some companies met with the Bank on more than one occasion in each type of meeting.

Analyst and Thai Fund Manager Meeting, KBank Head OfficeCEO and President met analysts and fund managers at Analyst and Thai Fund Manager Meeting, KBank Head Office


In 2011, the Bank Investor Relations function was widely acclaimed by analysts and investors, and received several awards, including: • Asia’s Best CEO (Investor Relations) and Best Investor Relations by a Thai Company from the 1st Asian Excellence Recognition Awards 2011 of the Corporate Governance Asia magazine; • Best for Investor Relations from the Corporate Governance Polls in Thailand of Asiamoney magazine; • Best Investor Relations Award for listed company with market capitalization over Baht 10 billion, for the second consecutive year (2010 - 2011) from the SET Awards 2011 ceremony, organized by the Stock Exchange of Thailand (SET) and Money & Banking magazine. The Bank has received this award for the fourth time; • Best Investor Relations Officer, for the third consecutive year (2009 - 2011), based on SAA Awards for Listed Companies 2011, organized by the Securities Analysts Association. Investors may contact the Bank at:Chief Investor Relations Officer: Tel. 0 2470 2673 to 4 Fax 0 2470 2680Investor Relations Unit: (Thai and Foreign Institutional Investors and Shareholders) E-mail: [email protected] Tel. 0 2470 6900 to 1 0 2470 2659 to 62 Fax 0 2470 2690

Shareholder Relationship Management Unit: (Thai Investors and Shareholders) E-mail: [email protected] Tel. 0 2470 2663 to 7 Fax 0 2470 2747Address: KASIKORNBANK PCL Head Office, 33rd Floor, Office of Corporate Secretary, Corporate Secretariat Division, 1 Soi Rat Burana 27/1, Rat Burana Road, Rat Burana Sub-District, Rat Burana District, Bangkok 10140, Thailand Website: www.kasikornbankgroup.com

5. Responsibilities of the Board of Directors5.1 Structure of the Board of Directors

Composition of the Board of Directors The Bank’s Board of Directors comprises qualified persons who possess knowledge, ability, and experience beneficial to the Bank. According to the company registration in the latest update from the Ministry of Commerce, dated October 3, 2011, the Board of Directors of the Bank is composed of 13 members. The election of Board members follows the resolutions of the shareholders meeting, as well as the laws and regulations and the Bank’s Articles of Association. The number of directors is appropriate for the Bank’s business operations, and the composition is in conformity with the Bank of Thailand’s notification on the “Governance ofFinancial Institutions” and the Capital Market Supervisory Board’s

KBank executives represented the Bank in receiving the SET Award of Honor for Continuous Excellence in Corporate Governance Report and the Best Investor Relations Award, from the SET Awards 2011

A KBank executive presented with the Best Investor Relations Officer under the SAA Awards for Listed Companies 2011, organized by the Securities Analysts Association, for the third consecutive year


notification on “Application for and Approval of Offer for Sale of Newly Issued Shares”. The Bank’s Board of Directors includes: • 1 Executive Director • 5 Non-Executive Directors • 7 Independent Directors (accounting for 54 percent of the total number of Board members) Binding agreements of the Bank must be signed by two authorized directors and affixed with the Company Seal. The primary authorized directors with signatory authority on behalf of the Bank are Mr. Banyong Lamsam, or Mr. Banthoon Lamsam, or Ms. Sujitpan Lamsam. Any of these persons must co-sign with any of the following directors: Pol. Gen. Pow Sarasin, or Mr. Sukri Kaocharern, or Dr. Abhijai Chandrasen.

Corporate SecretaryThe Bank appointed Ms. Tida Samalapa as Corporate Secretary.

She has suitable knowledge, qualifications, and experience to perform this function. She also serves as Secretary to the Board of Directors. The Office of Corporate Secretary, the Corporate Secretariat Division, is a unit supporting the secretariat functions of the Bank, consistent with the Statement of Corporate Governance Principles for effective management of the Bank. The main duties and responsibilities of the Corporate Secretary include: 1. Providing basic advice pertaining to the laws and regulations governing commercial banking business and the Bank’s Articles of Association, as well as monitoring compliance on a regular basis and reporting any significant changes to the Board. 2. Arranging the shareholders meeting and the Board of Directors Meeting in accordance with the laws and regulations, the Bank’s Articles of Association, and related practices. 3. Preparing minutes of the shareholders meeting and the Board of Directors Meeting, and monitoring subsequent compliance with the resolutions of those meetings. 4. Preparing and keeping registrations of directors, annual reports of the Bank, notices calling shareholders meeting, notices calling directors meetings, minutes of the shareholders meeting and the Board of Directors Meeting. 5. Keeping reports of interest filed by directors and executives, and presenting such reports as specified by the relevant laws.

6. Ensuring that corporate information disclosures to regulatory agencies are in accordance with the laws and regulations. 7. Communicating with shareholders on their legitimate rights and on the Bank’s information. 8. Assisting in Board activities.

Qualifications of Independent Directors The Board of Directors Meeting No. 9/2011 on September 29,2011, resolved to revise the definition of “Independent Director” to conform with the Principles of Good Corporate Governance of the Stock Exchange of Thailand, the requirements of the Bank of Thailand on the “Governance of Financial Institutions”, and the requirements of the Capital Market Supervisory Board, in order to maintain investor confidence and balance in good governance. The qualifications set by the Bank for “Independent Director” have been defined more stringently than the criteria set by the Capital Market Supervisory Board. They are as follows: 1. Holding not more than 0.5 percent of the Bank’s shares with voting rights, or that of any subsidiary company, associated company, major shareholder or controlling person of the Bank, which shall be inclusive of the shares held by any related person of such an independent director; 2. Neither being nor having been an executive director, an employee, a staff member, an adviser who receives a regular salary, or a controlling person of the Bank, subsidiary company, associated company, subsidiary company at the same level, major shareholder or controlling person of the Bank unless the foregoing status has ended for more than 2 years; 3. Not being a person related by blood or registration under law, such as father, mother, spouse, sibling, or child, including the spouse of a child, of other director, any executive, major shareholder, controlling person or person to be nominated as a director, an executive or a controlling person of the Bank or subsidiary company; 4. Neither holding nor having held a business relationship with the Bank, subsidiary company, associated company, major shareholder or controlling person in a manner which may interfere with his/her independent judgement, and neither being nor having been a substantial shareholder or a controlling person of any person having a business relationship with the Bank, subsidiary company, associated


company, major shareholder or controlling person unless the foregoing relationship has ended for more than 2 years. The aforementioned “business relationship” includes any normal business transaction, rental or lease of immovable property, transaction relating to assets or services, or grant or receipt of financial assistance through receiving or extending loans, guarantees, providing assets as collateral, including any other similar actions, which result in the Bank or counterparty being liable to indebtedness payable to the other party in the amount of 3 percent or more of the net tangible assets of the Bank or Baht 20 million or more, whichever is lower. The amount of such indebtedness shall be calculated according to the calculation method for the value of connected transactions under the Notification of the Capital Market Supervisory Board concerning regulations in respect of an entering into connected transaction mutatis mutandis. The combination of such indebtedness shall include indebtedness taking place during the course of 1 year prior to the date on which such a business relationship with the person commences; 5. Neither being nor having been an auditor of the Bank, subsidiary company, associated company, major shareholder or controlling person, and not being a substantial shareholder, controlling person, or partner of an audit firm which employs auditors of the Bank, subsidiary company, associated company, major shareholder, or controlling person unless the foregoing relationship has ended for more than 2 years; 6. Neither being nor having been any professional adviser including legal adviser or financial adviser who receives an annual service fee exceeding Baht 2 million from the Bank, subsidiary company, associated company, major shareholder, or controlling person, and not being a substantial shareholder, controlling person, or partner of the professional adviser, unless the foregoing relationship has ended for more than 2 years; 7. Not being a director who has been appointed as a representative of the Bank’s director, major shareholder, or shareholder related to the major shareholder; 8. Not undertaking any business the nature of which is the same as that of the Bank or subsidiary company and which, in any material respect, is competitive with

business of the Bank or subsidiary company or not being a substantial partner in the partnership, a director who is involved in management, an employee, a staff member, an adviser who receives a regular salary, or a shareholder holding more than 1 percent of shares with voting rights of a company undertaking any business the nature of which is the same as that of the Bank or subsidiary company and which, in any material respect, is competitive with business of the Bank or subsidiary company; 9. Not having any characteristics that prohibit the expression of independent opinion towards the Bank’s business undertakings. The previous directorial records as an independent director to be brought up for consideration shall comply with the above criteria, except under exemption in accordance with the Notification of the Capital Market Supervisory Board. Since 2011, no independent director has had a business relationship with, or has acted as professional adviser of the Bank, subsidiary company, associated company, major shareholder, or controlling person.

Term of Office The Board of Directors has a clearly established term of office for directors in the Articles of Association and the Corporate Governance Policy of the Bank. At each General Meeting of Shareholders, one-third of the directors - or the number nearest to one-third if their number is not a multiple of three - must retire from office. The directors who have been in office the longest retire first. If there is any disagreement as to who shall retire, it shall be decided by drawing lots. Retiring directors may be re-elected. Members of the Board Committee, Audit Committee, Human Resources and Remuneration Committee, and Corporate Governance Committee shall hold office for a term of 3 years, while members of the Risk Management Committee shall hold office for a term of 2 years. Directorship of the Board of Directors and Executives in Other Companies The Board of Directors established guidelines that the Bank’s directors and executives may hold a directorship in no more than 5 listed companies. They shall not hold the position of chairman, executive director, or director with signatory authority in more than 3 other business groups, in conformity with the criteria of


the Bank of Thailand and the Stock Exchange of Thailand. The details of directorships held by the Bank’s directors and executives in other companies are reported in the Annual Report under the heading Board of Directors and Executives, as well as Directorship of Directors and Executives in Subsidiaries, Associated, and Related Companies. At present, no director or executive of the Bank holds a directorship in more than 3 listed companies, nor are any in the position of chairman, executive director, or director with signatory authority in excess of 3 other business groups.

Separation of the Chairman and the Chief Executive Officer Positions The Chairman of the Board of Directors is not the same person as the Chief Executive Officer. He is neither a regular employee nor an executive of the Bank. The Bank has clearly set the scope of duties, responsibilities, and governance authority in the Board of Directors Charter for each of the above positions. In the event that the Chairman and the Chief Executive Officer are in any way related, the Board shall appoint a senior director as independent director to perform specific functions, where necessary, that would be expected of an independent Chairman.

5.2 Board of Directors The members of the Board of Directors are qualified persons who have knowledge, ability, and experience beneficial to the Bank. They are: 1. Mr. Banyong Lamsam Chairman 2. Pol. Gen. Pow Sarasin Vice Chairman 3. Mr. Banthoon Lamsam Executive Director 4. Mr. Sukri Kaocharern Director 5. Mr. Somchai Bulsook Independent Director 6. Ms. Sujitpan Lamsam Director 7. Professor Khunying Suchada Kiranandana Independent Director 8. Professor Dr. Yongyuth Yuthavong Independent Director

9. Dr. Abhijai Chandrasen Director 10. Ms. Elizabeth Sam Independent Director 11. Professor Dr. Pairash Thajchayapong Independent Director 12. Mr. Hiroshi Ota Independent Director 13. Ms. Kobkarn Wattanavrangkul Independent Director

Responsibilities of the Board of Directors The Board of Directors is responsible to the Bank’s shareholders. Each director represents all shareholders and takes part in supervisory and regulatory functions in the Bank’s operations, in an independent and impartial manner, for the benefit of all shareholders and other stakeholders. The Board has duties and responsibilities designated in the Board of Directors Charter as follows: 1. Supervising and managing the Bank so that it is in accordance with the law and the Bank’s objectives, the Articles of Association, and the resolutions of shareholders meeting. 2. Approving the Vision, Mission, Core Values, and Statement of Business Conduct. 3. Reviewing and discussing the Management’s proposed strategic options and approving major decisions with respect to

KASIKORNBANK FINANCIAL CONGLOMERATE direction and policies. The Board also reviews and approves the Annual Business Plan, Capital Expenditure Budget, and performance goals proposed by Management. 4. Monitoring the Bank’s performance and progress toward achieving set objectives, as well as compliance with the laws, regulations, and related policies. 5. Supervising and reviewing the balance between the Bank’s short-term and long-term objectives. 6. Ensuring that the Bank shall vest authority in the Chief Executive Officer and the President to initiate, commit, and approve payments for expenditures approved in the Capital Expenditure Budget and other budgets approved

by the Board for the purpose of the special projects. The Board shall also review and approve any credit proposal beyond the established limits of the delegated lending authority.


7. Reviewing and approving human resources policies, management development plans, and remuneration policies. The Board shall seek and nominate successors to the Chief Executive Officer and the President; appraise their performance and ensure that effective performance assessments are undertaken of Bank executives. 8. Ensuring the existence of an effective internal control system and appropriate risk management framework. 9. Ensuring an effective audit system executed by both internal and external auditors. 10. Approving quarterly, semi-annual, and annual financial reports; ensuring that reports are prepared under generally accepted accounting standards. 11. Ensuring capital adequacy, including an appropriate

capital assessment process, for present and future business. 12. Ensuring that the Bank has a proper system in place to

communicate effectively with all stakeholders and the public.

Nomination of Directors The Bank established the Human Resources and Remuneration Committee to select and review candidates nominated to the position of director. The appropriate proportion, number, and composition of the Board are taken into consideration, which must also conform to regulatory statutes, the Bank’s Articles of Association, and the Statement of Corporate Governance Principles. Selection guidelines include: 1. Considering qualified persons, not those having characteristics prohibiting them from holding a directorship in a financial institution, per the criteria of the Bank of Thailand, the Office of the Securities and Exchange Commission, the Capital Market Supervisory Board, and other related agencies. 2. Reviewing their qualifications based on the Qualifications of Financial Institution Directors questionnaire, and in accordance with related laws. 3. Ensuring that candidates have the qualifications, skills, knowledge, and basic experience defined by the Bank. The Bank gives shareholders the opportunity to propose candidates for consideration and election to such positions in the Annual General Meeting of Shareholders, according to specified criteria and procedures. The Human Resources and Remuneration Committee may propose to the Board of Directors to set up

an ad hoc committee comprising the Bank’s Directors or external personnel to handle the director nomination procedure. If there is no suitable candidate, the nomination procedure will be resumed to find new qualified candidates. For the nomination of Independent Directors, the Human Resources and Remuneration Committee will consider qualified candidates who do not have characteristics prohibiting them from holding such positions as prescribed by the regulations of the Bank of Thailand and other regulatory agencies. Qualified candidates will be recommended to the Board of Directors for consideration and submitted for concurrence to the Bank of Thailand before being proposed to the General Meeting of Shareholders for individual election, in the case of election of director due by rotation and appointment of new director. After the Board of Directors resolves to endorse the proposal, the Office of Corporate Secretary proceeds to ask for the Bank of Thailand’s concurrence, in either electing a director due by rotation or a new director or a director as replacement for the vacancy. If the Bank of Thailand does not concur with the proposal, the Human Resources and Remuneration Committee shall resume the nomination process. After the shareholders meeting has passed a resolution to elect a director, in the case of appointment due by rotation or a new director or in the case of the Bank of Thailand concurring with a proposal to appoint a vacancy replacement before the end of a term, the Office of Corporate Secretary shall register the change of director and report to related official agencies within the defined period of time.

Appointment and Removal of Directors 1. The Bank’s shareholders meeting shall appoint not less than 7 and not more than 18 directors; not fewer than half of all directors shall reside in the Kingdom of Thailand and not fewer than three-fourths of all directors shall be of Thai nationality. A director may or may not be a shareholder. Directors shall be elected by the meeting of shareholders in accordance with the following rules and procedures: 1) Directors shall be elected individually. 2) Each shareholder shall have one vote per share held. 3) Each shareholder shall use all of his/her votes in the election of directors. 4) Persons receiving the highest number of approving votes among all candidates are to be elected in


respective order, not exceeding the number of positions to be filled at that meeting. 5) In the event of a tied vote on the last in the order of director positions to be filled, the chairman of the meeting shall have the deciding vote. 2. At each Annual General Meeting of Shareholders, one-third of the directors - or the number nearest to one-third if the number is not a multiple of three - must retire from office. The directors who have been in office the longest shall retire first. If there is disagreement as to who should retire, it shall be decided by drawing lots. Retiring directors may be re-elected. 3. Any director who passes away, or tenders his/her resignation prior to completion of his/her term, or is resolved to be removed by a meeting, or is ordered by the Court to resign, or whose qualifications fall short of the criteria and prerequisites specified, shall be removed from office. 4. If a vacancy in the Board of Directors occurs for reasons other than the expiration of the director’s term of office, the remaining Board members shall elect a person with the proper qualifications, and no prohibited characteristics, as a replacement director at the next meeting of the Board of Directors, unless the remaining term of office of said director is less than 2 months. Such a resolution by the Board of Directors shall require not less than three-fourths of the remaining directors’ votes for approval. The replacement director shall hold office only for the remaining term of the director whom he or she is replacing.

Empowerment by the Board of Directors The Chairman and Vice Chairman may approve the empowerment of executive authority to the Bank’s Chief Executive Officer, President, or two of four Domain Coordinators* to act legally on behalf of the Bank in conducting transactions up to a limit of Baht 3,000 million per transaction. Such executives may delegate this authority to a Bank employee to act on behalf of the Bank within the limits of each employee’s responsibility.

For transactions over the specified limit, the Board shall review and approve the limit of such transactions on a case-by-case basis.

Executive Authority of the Bank In addition to the aforementioned empowerment of executive authority, the Bank has also established a set of criteria and plans for exercising internal executive authority. These principles help the Bank to delegate authority among employees in various positions, enabling them to perform specific functions and make effective decisions with flexibility, while staying within the confines of an appropriate control system. Internal executive authority is categorized into 3 areas: 1. Executive authority shared by various departments 2. Departmental/Office executive authority 3. Branch executive authority

Principles The followings are the main points of the structure and content of the internal executive authority: 1. The empowerment of executive authority is the delegation of authority of the Chief Executive Officer, President, or Domain Coordinators to administer and execute various tasks within the Bank to the next lower level of management, as appropriate. 2. The Chief Executive Officer, President, or two of four Domain Coordinators are assigned by the Board of Directors to approve the internal executive authority and principles. 3. Internal executive authority shall include: 1) Executive authority involving approvals and instructions that are intended toward financial and non-financial transactions for internal management within the department or unit according to assigned duties. 2) Executive authority involving disbursements must be within the approved budget of the Bank. 4. For complete control, executive authority is divided into categories according to operational function, as follows: 1) Executive authority shared among various departments refers to authority that is not assigned specifically to any one particular department, but may be specified according to the job performed by the Chief Executive Officer, President, Domain Coordinators, Division

* The Board of Directors has approved the Bank’s organizational restructuring in 4 domains: Business, Risk, Infrastructure, and Resource, with Senior Executive Vice Presidents serving as Domain Coordinators.


Heads, Department Heads, and other individuals in various positions employing such authority in various departments/units as follows: (1) Executive authority relating to human resources (2) Executive authority relating to expenditures (3) Executive authority to quote exchange rates and offer lower fees or interest rates to domestic and international businesses (4) Executive authority of the Assets and Liabilities Management Subcommittee (5) Executive authority relating to customer services (6) Executive authority relating to account debit/ closing for debt settlement (7) Executive authority relating to credit product pricing (8) Executive authority in endorsement of letters to the Bank of Thailand, regulatory agencies, or government agencies (9) Executive authority relating to procurement management (10) Executive authority relating to budget management (11) Executive authority relating to redress to customers or external persons (12) Executive authority relating to assignment of employees as special lecturers (13) Executive authority relating to credit approval and authority in debt restructuring/recovery (14) Executive authority relating to approval of interest rates for retail customers, which will incur loss to the Bank (15) Executive authority relating to other aspects 2) Departmental executive authority is the executive authority delegated to a specific department relative to its business activities or tasks. Authority is delegated to the Chief Executive Officer, President, Domain Coordinators, Division Heads, Department Heads, as well as to individuals in various positions in related department(s) within their scope of responsibilities. 3) Branch executive authority is the authority regarding the scope of responsibilities delegated to branches relative to their business activities, to network managers, zone managers, and branch managers, as well as to individuals in various positions in the branch.

5. The principles of executive authority are established and presented in tabular form to ensure that Management and staff at all operational levels understand and perform their duties according to the delegated authority and risk management framework.

Board of Directors Meetings The Board of Directors schedules board meetings for the last Thursday of every month in order to continually monitor compliance with policies and plans. At the beginning of each year, all board members are informed of the meeting schedule for the entire year. Additional meetings may be held as deemed appropriate. The Corporate Secretary arranges for notices of board meetings, agendas, and related documents containing complete information to be delivered to each director at least 7 days in advance, except in urgent cases, to allow sufficient time for the Board to study the matters at hand. Each director may ask for additional information from the Corporate Secretary and is free to propose agenda items. The agenda for board meetings shall be categorized clearly and include agenda items designed to monitor the operating results of the Bank on a regular basis. The designation of the agenda must undergo the consideration of the Chairman, Chief Executive Officer, and President. During the meeting, the Chairman will allocate sufficient time for discussion and support directors in freely expressing their opinions. Pertinent executives of the Bank shall be invited to attend the meeting to provide related information and to directly acknowledge related policies to ensure efficient implementation. The Bank provides a teleconference system for directors who cannot attend the meeting in person, and provides simultaneous translation for foreign directors. Each agenda item and its resolution are recorded in writing, and the minutes of the meeting, which have been affirmed by the Board together with related documents, are systematically filed for examination and reference by the Board, or others concerned. Moreover, the Board has established that non-executive directors shall conduct at least one meeting annually without the participation of executive directors, to offer them the opportunity to discuss problems related to business of the Bank or any other concerns, and evaluate the performance of


the Chief Executive Officer and President. The outcome of such meetings shall be reported to the Chief Executive Officer and President. In 2011, the Board held a total of 12 board meetings; in addition, 1 non-executive director meeting was held in August. Details of each director’s attendance appear under the heading Meeting Attendance of the Board and Board Committees in 2011.

Advisers to the Board of Directors The Board of Directors appointed several qualified persons to act as Advisers to the Board of Directors, including: 1. Mr. Pairote Lamsam 2. Mr. Chaleo Yoovidhya 3. Mr. William Mark Evans 4. Dr. Tian Suning

Responsibilities of the Advisers to the Board of Directors Roles and responsibilities of the Advisers to the Board of Directors are to make recommendations to the Board of Directors in matters relevant to and within the authority and responsibilities of the Board of Directors. Examples include the Bank’s policies, issues that require compliance with established laws and regulations, as well as other important business that, once undertaken, may cause significant changes or impacts to the Bank’s operations.

5.3 Board Committees The Board of Directors has appointed directors who have suitable knowledge and skills to act as members of Board Committees, with the specific duty to pre-screen matters that need prudent attention prior to submission to the Board of Directors. Board Committees include the Audit Committee, the Corporate Governance Committee, the Human Resources and Remuneration Committee, and the Risk Management Committee. The Board has also established a Management Committee consisting of the Chief Executive Officer, the President, and other Bank officers to manage and operate the Bank’s business as defined by the Board. In addition, certain directors have been appointed as Advisory Directors to the Management Committee, with the duty to provide expert consultation as deemed appropriate by the Board.

Moreover, the Bank has appointed 14 subcommittees to consider and review the scope of work assigned to them.

1. Audit Committee The Board of Directors approved the appointment of the Audit Committee in 1998, with the Committee having at least three independent members and each member having a 3-year term. Each member is fully qualified in accordance with the qualifications prescribed by the Securities and Exchange Commission, the Capital Market Supervisory Board, and the Bank of Thailand. Professor Khunying Suchada Kiranandana, the Chairperson, has adequate expertise and experience to audit the credibility of the financial statements. There are 4 independent directors as follows: 1. Professor Khunying Suchada Kiranandana Chairperson 2. Mr. Somchai Bulsook Member 3. Professor Dr. Yongyuth Yuthavong Member 4. Ms. Elizabeth Sam Member The Committee holds at least 6 meetings per year and reviews operations regularly per its charter. In 2011, the Committee held a total of 12 meetings and reported all meeting resolutions to the Board of Directors.

Responsibilities of the Audit Committee The Audit Committee has duties and responsibilities mandated in the Audit Committee Charter approved by the Board of Directors, as follows: 1. Reviewing financial statements on a quarterly, semi-annual, and annual basis under consultation with the Bank’s Finance and Control Division and external auditor in order to ensure that the financial statements of the Bank are accurate and reliable and in compliance with the accounting standards, laws, and standards pertaining to the Bank’s operations. 2. Reviewing the efficiency and appropriateness of risk management processes with the Risk Management Unit, in consultation with both internal and external auditors.


3. Overseeing the efficiency and independence of risk asset review function. 4. Reviewing the Bank’s operations to see that they are in compliance with Securities and Exchange Acts, SET regulations and standards or banking laws and regulations pertaining to commercial banking business. 5. Reviewing the effectiveness and appropriateness of the internal control and reviewing the effectiveness of internal audit function to ensure compliance with the Professional Practice of Internal Auditing, including: approving and reviewing annual audit plan; reviewing the appropriateness and sufficiency of required auditing resources; considering the independence of the internal audit function; and concuring in the appointment, transfer and dismissal of the Internal Audit Head. 6. Reviewing the performance of the external auditors; considering, selecting and recommending to the Board the appointment and annual audit fees of the independent auditors. Holding at least one meeting per year with the external auditors without the presence of Management. 7. Evaluating connected transactions, or transactions with possible conflict of interest in relation to compliance with the laws and regulatory requirements in order to ensure transparency of those transactions. 8. Considering the disclosure of information on connected transactions, conflicts of interest, or certain Bank operations to ensure transparency and appropriateness. 9. Ensuring that preliminary investigation is carried out after receiving the external auditor’s report on suspicious fraudulent behaviour or violation of laws by Bank Board members and Management. The Audit Committee shall report the results of such investigation to the Securities and Exchange Commission and the external auditor within 30 days from the date they are notified by the external auditor. 10. Overseeing and reviewing complaint or information submitted directly by stakeholders for attention of the Board. 11. Performing other duties, as regulated or assigned by the Board as agreed by the Audit Committee.

12. Submiting minutes of each Audit Committee Meeting to the Board of Directors, and preparing the annual Audit Committee Report, signed by the Audit Committee Chairman, summarizing the year’s activities and giving information or data specified by the Stock Exchange of Thailand for disclosure in the annual report of the Bank. 13. Discussing and reviewing with Management or outside experts any matters or activities having a bearing on the Board’s oversight responsibilities according to Audit Committee Charter and consolidated supervision policy. 14. At least once a year, the Audit Committee shall review its Charter and performance over the past year, taking into account any assessment or comments provided by the Chairman of the Board.

2. Corporate Governance Committee The Board of Directors approved the appointment of the Corporate Governance Committee in 2002, with the Committee having not less than 3 members and each member having a 3-year term. In 2011 the Committee had 4 members, comprising 2 non-executive directors and 2 independent directors, as follows: 1. Pol. Gen. Pow Sarasin Chairman 2. Mr. Sukri Kaocharern Member 3. Professor Dr. Yongyuth Yuthavong Member 4. Mr. Hiroshi Ota Member The Corporate Governance Committee holds at least 4 meetings each year. In 2011, the Corporate Governance Committee held 5 meetings and reported all meeting resolutions to the Board of Directors.

Responsibilities of the Corporate Governance Committee The Corporate Governance Committee has duties and responsibilities mandated in the Corporate Governance Committee Charter and approved by the Board of Directors, as follows: 1. Establishing the principles and best practices for effective corporate governance appropriate to the Bank.


2. Developing and disseminating the principles and best practices of good corporate governance. 3. Formulating the Statement of Business Conduct and the Code of Conduct of the Bank’s employees, and disseminating these codes as practical guidelines to all concerned. 4. Developing supervision plans for review of corporate governance compliance. 5. Reviewing announcements concerning good corporate governance to summarize and present in the Bank’s reports. 6. Recommending the Code of Best Practices for the Board of Directors or proposing guidelines for the Board of Directors Charter and all other Board Committee Charters. 7. Recommending the Statement of Business Conduct and the Code of Conduct of Management to Bank personnel. 8. Reviewing corporate governance guidelines and corporate governance practice to ensure consistency and compatibility with the Bank’s business. 9. Reviewing and proposing public announcements related to corporate governance issues. 10. Supervising corporate environmental and social responsibility. 11. Reviewing and reporting to the Board of Directors matters related to corporate governance, giving opinions on practical guidelines and suggesting improvements, as deemed appropriate. 12. Ensuring effective practice of corporate governance principles in the Bank.

3. Human Resources and Remuneration Committee The Board approved the appointment of the Human Resources and Remuneration Committee in 2002, with each member having a 3-year term. The Committee comprises at least 3 non-executive directors. The Committee has 4 members, comprising 1 non-executive director and 3 independent directors, as follows: 1. Mr. Somchai Bulsook Chairman 2. Dr. Abhijai Chandrasen Member

3. Professor Dr. Pairash Thajchayapong Member 4. Ms. Kobkarn Wattanavrangkul Member The Human Resources and Remuneration Committee holds at least 3 meetings each year. In 2011, the Human Resources and Remuneration Committee held 6 meetings and reported all meeting resolutions to the Board of Directors.

Responsibilities of the Human Resources and Remuneration Committee The Human Resources and Remuneration Committee has duties and responsibilities mandated by the Human Resources and Remuneration Committee Charter and approved by the Board of Directors, as follows: 1. Reviewing and making recommendations on the proposals of the Chief Executive Officer and/or the President relating to human resources policies for the Board of Directors’ approval, to ensure that proposals are aligned with the Bank’s business strategies. 2. Ensuring a succession plan for senior management in important positions and occasionally reviewing a list of candidates entitled to consideration. 3. Reviewing the remuneration strategy and proposing improvements for the Board’s endorsement, in order to retain highly qualified personnel, as well as reviewing the salaries and benefits to senior management. 4. Establishing terms and conditions of employment contracts of the Chief Executive Officer and the President, including their remuneration, as well as seeking and recommending qualified successors to the Board for the positions of Chief Executive Officer and President, when considered necessary. 5. Reviewing the composition, size, experience, and remuneration of the Board of Directors, as well as making recommendations on the selection of candidates with proper qualifications for the position of director prior to submission to the General Meeting of Shareholders for appointment.


Nomination of Management The Human Resources and Remuneration Committee is responsible for nominating, selecting and reviewing qualified candidates to be proposed to the Board of Directors for endorsement before submitting to the Bank of Thailand for concurrence for appointments to Bank’s Management at the level of First Senior Vice President and above, or an equivalent position under a different name. For the appointment of executives ranked below First Senior Vice President, Division Heads and the Human Resource Management Department shall prepare a list of qualified candidates to be nominated before submission to the Domain Coordinators for further consideration and approval by the Chief Executive Officer or the President.

4. Risk Management Committee The Board of Directors approved a change in the status of the former Internal Risk Management Subcommittee to the Risk Management Committee on April 29, 2004. Each member has a 2-year term and the Committee must comprise at least 7 members. The Committee has 14 members comprising 1 executive director, 2 non-executive directors, and 11 executives, namely: 1. Mr. Sukri Kaocharern Chairman 2. Mr. Banthoon Lamsam Member 3. Ms. Sujitpan Lamsam Member 4. Mr. Somkiat Sirichatchai Member 5. Mr. Predee Daochai Member 6. Mr. Teeranun Srihong Member 7. Mr. Krisada Lamsam Member 8. Mr. Thiti Tantikulanan Member 9. Ms. Kattiya Indaravijaya Member

10. Mr. Songpol Chevapanyaroj Member 11. Mr. Wirawat Panthawangkun Member 12. Mr. Chongrak Rattanapian Member 13. Mr. Art Wichiencharoen Member 14. Mr. Porvarate Chetphongphan Member The Risk Management Committee meets at least once each month. In 2011, the Risk Management Committee held 12 meetings and reported to the Board of Directors. The Committee ensures that there are effective risk management systems for early warning and measures to prevent and manage risks, including risks that affect operations. They also oversee compliance with risk management practices according to relevant policies, and prepare risk management reports.

Responsibilities of the Risk Management Committee The Risk Management Committee has duties and responsibilities as mandated in the Risk Management Committee Charter approved by the Board of Directors, including: 1. Possessing the authority to make decisions on related undertakings within the scope of its responsibility, as stipulated in the Risk Management Committee Charter, with the authority to access all pertinent information. 2. Formulating the KASIKORNBANK FINANCIAL CONGLOMERATE risk management policy to present to the Board of Directors for consideration of overall risk management. The policy must cover the various risks associated with strategies, liquidity, credit, market, operational, or other significant types of risk to the financial conglomerate. 3. Formulating strategies for the organization and resources in risk management to conform to the risk management policy of the Financial Conglomerate. The strategies must enable the effective analysis, assessment, evaluation, and monitoring of risk management.


4. Defining maximum credit lines according to the Bank’s defined risk limits and proposing such to the Board of Directors for consideration. 5. Overseeing, reviewing, and providing recommendations to the Board of Directors with regard to the risk management policy, standard practices, strategies, and overall risk measurement to ensure that the risk management strategy is properly implemented.

5. Advisory Directors to the Management Committee The Board of Directors and the 88th Annual General Meeting of Shareholders on April 4, 2000, approved the appointment of the Advisory Directors to the Management Committee. In 2011, the Committee comprised 4 directors, namely: 1. Mr. Banyong Lamsam 2. Pol. Gen. Pow Sarasin 3. Mr. Sukri Kaocharern 4. Dr. Abhijai Chandrasen

Responsibilities of the Advisory Directors to the Management Committee 1. Giving recommendations to the Management Committee, as the Board of Directors deems appropriate. 2. Ensuring efficiency in the Bank’s management and operations.

6. Management Committee The Board of Directors and the 88th Annual General Meeting of Shareholders, on April 4, 2000, approved the appointment of the Management Committee. The Committee consists of the Chief Executive Officer, President, and other Bank officers. In 2011, the Committee comprised 16 members, namely: 1. Mr. Banthoon Lamsam Chairman 2. Mr. Somkiat Sirichatchai Member 3. Mr. Predee Daochai Member

4. Mr. Teeranun Srihong Member 5. Mr. Krisada Lamsam Member 6. Mr. Pakorn Partanapat Member 7. Mr. Surasak Dudsdeemaytha Member 8. Mr. Prasopsuk Damrongchietanon Member 9. Ms. Kattiya Indaravijaya Member 10. Dr. Adit Laixuthai Member 11. Mr. Songpol Chevapanyaroj Member 12. Mr. Vasin Vanichvoranun Member 13. Mr. Ampol Polohakul Member 14. Mr. Wirawat Panthawangkun Member 15. Mr. Somkid Jiranuntarat Member 16. Mr. Pipit Aneaknithi Member The Management Committee meets weekly. In 2011, the Management Committee held 44 meetings and reported all meeting resolutions to the Board of Directors.

Responsibilities of the Management Committee The Management Committee has duties and responsibilities as mandated in the Management Committee Charter, approved by the Board of Directors, as follows: 1. Managing and undertaking the Bank’s business as assigned by the Board of Directors, or by specific resolutions of the Board of Directors. 2. Managing the Bank’s business according to established policies and plans.


3. Taking action in accordance with the authority delegated by the Board of Directors, and per their mandated management jurisdiction over the Bank. 4. The Chairman of the Management Committee shall submit the minutes of the Management Committee meetings to the Board of Directors for acknowledgement. However, policy-related issues, or issues likely to have significant impact on the Bank’s business, or issues requiring action by the Board of Directors in compliance with laws, or the Bank’s Articles of Association, must be approved by the Board of Directors. These also include issues for which the Management Committee considers it appropriate to seek the approval of the Board of Directors on a case-by-case basis, or per the criteria designated by the Board of Directors. 5. Undertaking activities as assigned in order to achieve the Bank’s targets, including: 1) Preparing and reviewing of strategic objectives, financial plans and key policies of the Bank, to be submitted to the Board of Directors for approval. 2) Considering the annual business plans, capital expenditures, performance targets, and other initiatives to achieve the Bank’s targets, including projects with capital expenditures in excess of budgets designated by the Board of Directors, to be submitted to the Board of Directors for approval. 3) Considering and approving various issues under their legitimate authority, or as delegated by the Board of Directors. 4) Reviewing management authority in various aspects stipulated in the approval authority hierarchy, to be submitted for approval to the Board of Directors. 5) Managing and ensuring balance between short-term and long-term objectives. 6) Developing and ensuring that human resources initiatives are in line with the human resources roadmap and strategies approved by the Human Resources and Remuneration Committee.

7) Monitoring and reporting on the Bank’s operating results to the Board of Directors, as well as on other work in progress to achieve the Bank’s objectives. 8) Monitoring the performance of employees at all levels with regard to risk management, per the Bank’s guidelines, including the effectiveness of internal control systems and operational compliance with laws and regulations and related policies. 9) Reviewing new projects and products prior to submission to the Board of Directors for consideration and approval. 10) Communicating with external stakeholders, per designated authority, and as deemed appropriate.

7. The Subcommittees The responsibilities of the Subcommittees are to review and manage various matters within the Bank to ensure accuracy, propriety, efficiency, and the highest effectiveness. The Bank has reviewed and approved the establishment of Subcommittees. In 2011, there are 14 Subcommittees, namely: 1. Information Technology Strategy Subcommittee 2. Assets and Liabilities Management Subcommittee 3. Corporate and SME Upper Medium Debt Recovery and Restructure Subcommittee 4. Retail and SME Debt Recovery and Restructure Subcommittee 5. Foreclosed Property Management Subcommittee 6. Corporate and SME Product Pricing Subcommittee 7. Retail Product Pricing Subcommittee 8. Credit Policy and Risk Management Subcommittee 9. Data Governance Subcommittee 10. Information Technology Investment Subcommittee 11. Procurement Subcommittee 12. Capital Management Subcommittee 13. Operational Risk Subcommittee 14. Credit Process Management Subcommittee


Remarks: (1) M.R. Sarisdiguna Kitiyakara passed away on September 21, 2011.

(2) Prof. Khunying Suchada Kiranandana was appointed Chairperson of the Audit Committee on September 29, 2011.

(3) Prof. Dr. Yongyuth Yuthavong was appointed a member of the Audit Committee on September 29, 2011.

(4) Dr. Abhijai Chandrasen was appointed a member of the Human Resources and Remuneration Committee on January 27, 2011.

(5) Ms. Kobkarn Wattanavrangkul was appointed as a director and a member of the Human Resources and Remuneration Committee on January 31, 2011.

• NumberofmembersontheBoardandBoardCommittees(AsofDecember31,2011):

The Board of Directors 13 members

Corporate Governance Committee 4 members

Risk Management Committee 14 members (includes 3 Board members)

Audit Committee 4 members

Human Resources and Remuneration Committee 4 members

• DetailsofmeetingattendancethroughteleconferencingtotheBoardandBoardCommittees:

The Board of Directors Ms. Sujitpan Lamsam 7 meetings

Ms. Elizabeth Sam 5 meetings

Risk Management Committee Ms. Sujitpan Lamsam 5 meetings

Audit Committee Ms. Elizabeth Sam 10 meetings

• ThreeBoardmembers, Ms. Sujitpan Lamsam, Ms. Elizabeth Sam, and Mr. Hiroshi Ota do not reside in Thailand.

Meeting Attendance of the Board and Board Committees in 2011Number of Meetings

Board Members

Mr. Banyong Lamsam 12 1

Pol. Gen. Pow Sarasin 11 1 5

Mr. Banthoon Lamsam 11 7

Mr. Sukri Kaocharern 11 1 4 11

M.R. Sarisdiguna Kitiyakara(1) 6 - 6

Mr. Somchai Bulsook 12 1 11 6

Ms. Sujitpan Lamsam 12 1 7

Prof. Khunying Suchada Kiranandana(2) 12 1 12

Prof. Dr. Yongyuth Yuthavong(3) 12 1 5 3

Dr. Abhijai Chandrasen(4) 12 1 6

Ms. Elizabeth Sam 10 1 12

Prof. Dr. Pairash Thajchayapong 11 1 6

Mr. Hiroshi Ota 12 1 5

Ms. Kobkarn Wattanavrangkul(5) 10 1 4

Human Resources and Remuneration Committee

(Total 6 meetings)

Board of Directors (Total

12 meetings)

Non-Executive Directors (Total

1 Meeting)

CorporateGovernance Committee

(Total 5 meetings)

Risk Management Committee

(Total 12 meetings)

Audit Committee

(Total 12 meetings)


5.4 Roles and Responsibilities of the Board of Directors The Board of Directors comprises persons who have knowledge, ability and working experience beneficial to the Bank. The Board approves the Mission, Vision, and Core Values as well as strategic directions and policies of KASIKORNBANK FINANCIAL CONGLOMERATE, reviews the annual business plan and budget, and oversees Management in effectively carrying out actions that are in line with the designated policies and business plans and are in accordance with the rules and regulatory requirements of related government agencies and the resolutions of shareholders meeting. The Board of Directors decisions are independent, in order to ensure that the Bank and its stakeholders receive the maximum benefit and increased economic value of the Bank. Moreover, the Board of Directors ensures the existence of an effective internal control system and appropriate risk management framework, and cooperates with the Bank’s management in business undertakings in order to attain the best results. Current and future risks are taken into consideration, in conformity with the Bank’s mission, vision, Statement of Business Conduct, and Statement of Corporate Governance Principles.

Corporate Governance Policy KASIKORNBANK places great importance on good corporate governance, believing it to be essential to sustaining the Bank’s business. The Statement of Corporate Governance Principles has been revised and approved by the Board of Directors. The same principles have been applied to KASIKORNBANKGROUP, as well. The principles are aimed primarily at communicating to all employees, shareholders, and other stakeholders the ultimate goal of the Board of Directors, namely to act in accordance with the 7 major components of corporate governance: • Integrity • Transparency • Independence • Responsibility • Accountability • Fairness • SocialResponsibility

The content of the Bank’s Statement of Corporate Governance Principles covers the structure, composition, roles, duties, and responsibilities of the Board of Directors and all Board Committees, as well as matters of risk management, internal control systems, inside information policies, and issues that are likely to involve conflicts of interest and shareholder relationships. Details of the Statement of Corporate Governance Principles can be found under the “Investors” tab at www.kasikornbankgroup.com. The Corporate Governance Policy covers the Bank’s mission, vision and core values, Statement of Business Conduct, and the employees’ Code of Conduct. This includes the protection of the legitimate rights of shareholders, who are encouraged to exercise their rights, as reflected in operational guidelines and directions adopted internally that ensure that the Bank has adequately followed the best practices in corporate governance. In 2011, the Bank assessed and reviewed operations results according to the Corporate Governance Policy, and the Board of Directors resolved to amend the Statement of Corporate Governance Principles effective on January 4, 2011 so as to comply with regulatory requirements and best practices. Moreover, the Bank disseminated a KGroup Corporate Governance booklet, comprising important content and operational guidelines for enhancing corporate governance to all stakeholders. All members of the Board of Directors are aware of their mutual responsibilities for sustaining the most benefit to the Bank, and their roles in supervising information disclosure, transparency in business undertakings and the decision-making process, and fair treatment to all stakeholders. In addition, the Bank places great importance on fairness in every business undertaking, as well as participation in Corporate Social Responsibility (CSR) activities. The Bank and its employees must strictly adhere to the Code of Conduct in performing their duties under the CSR principles. The Bank has also been enthusiastically participating in and promoting environmental protection and social development projects, in recognition of the importance of the need for improvement in the quality of life of individuals and the community at large, and for the benefits of all stakeholders.


The Bank encourages all people in the organization to realize the importance of acting in compliance with the Statement of Corporate Governance Principles by organizing activities to promote continuing and sustainable corporate governance. Emphasis was placed on the maintenance and development of corporate governance, and the promotion of corporate governance as an organizational culture. In 2011, the Bank’s activities to promote Corporate Governance were as follows: • TheBankcirculatedtheCodeofConducttoemployees for their acknowledgement. • TheStatementofCorporateGovernancePrinciples and Code of Conduct were two main issues in 9 orientation classes for newly recruited executives and employees. • ActionsincompliancewiththeCodeofConduct and the Statement of Corporate Governance Principles were disseminated to employees through a Corporate Governance database set in the electronic network. • ActionsthatcomplywiththeCodeofConductwere promoted through broadcasts of fillers and quotes after news updates through the Bank’s closed-circuit TV network - known as KASIKORNTV - in order to promote common understanding of actions stipulated in the Statement of Corporate Governance Principles. • ActionspertainingtotheStatementofCorporate Governance Principles and the Code of Conduct were

organized through the KGroup newsletter circulated within the organization. • Activitieswereorganizedonthe“WelcomePage” of the KGroup electronic network, to disseminate information on the Statement of Business Conduct and the Statement of Corporate Governance Principles, including quotes concerning the Code of Conduct. • Criteriaforsupervisingtheuseofinsideinformation related to securities and stock futures trading were disseminated to directors and employees. • ACorporateGovernanceJournalwaspreparedto report to the Board of Directors on Corporate Governance and Corporate Social Responsibility activities of the Bank and other leading business entities, and dissemisnated to employees through a Corporate Governance database set in the electronic network. • Permittedandforbiddenactionsrelatingtothe acceptance of gifts in compliance with the Code of Conduct were disseminated to all employees. • TheCGVisitProjectwasimplementedforsecretariesto the Board and Human Resources and Remuneration Committee to offer consultation, recommendations, and review of compliance with the Statement of Corporate Governance Principles. • TheKGroupCGIndexprojectwasinitiatedforuseas the index to monitor and assess the corporate governance practices of the Bank, K Companies, and P Companies.

Article on corporate governance in an internal newsletterOrientation for new employees on the Statement of Corporate Governance Principles at the KBank Learning Center


Business Ethics The Board of Directors has promoted the establishment of a Statement of Business Conduct and a Code of Conduct for directors and employees. All directors, executives, and employees share common goals in carrying out their designated duties and responsibilities to the Bank and its stakeholders. They perform their duties with integrity, in compliance with the law and the Bank’s Articles of Association, based on professional standards and a business approach that is transparent, honest, and fair, for the development of the organization towards attaining international standards. The Statement of Business Conduct and the Code of Conduct have been disseminated via the Bank’s website and database. The Bank adheres to the Statement of Business Conduct, as follows: 1. Aiming to satisfy customers by offering quality products and excellent services. 2. Continually striving for superior performance. 3. The Bank’s employees are valuable assets. The Bank seeks and recruits people with skill and experience, continually developing human resources, and offering remuneration comparable to other leading companies. 4. Performing as a good corporate citizen, conducting business with impartiality and contributing to social development and environmental preservation. 5. Believing in fairness for all. 6. Believing in strong ethical standards and determining to carry out business with integrity.

7. Protecting customer confidentiality and maintaining customer trust using professional standards. 8. Being dedicated to carrying out responsibilities in a professional manner and striving to achieve excellent results by integrating modern approaches and technological advances. 9. Respecting the equal rights of all stakeholders. 10. Being committed to discipline in business execution and making certain that all business decisions and operations conform to related laws and regulations by pursuing the Statement of Business Conduct of the Bank and the Code of Conduct of the workforce. Significant content in the Code of Conduct includes: (1) key principles and core values of the Bank; (2) observance of laws and the Bank’s regulations; (3) good relationships with customers; (4) good relationships with society; (5) good relationships with employees; (6) an advertising and public relations policy; (7) confidentiality; (8) completeness and accuracy of the Bank’s information; (9) avoidance of the use of inside information in securities trading; (10) prevention of conflicts of interest; (11) abstention from bribery and inappropriate incentives; (12) non-involvement in political activities; (13) avoidance of accepting or offering inappropriate gifts and/or benefits; and (14) reporting employee violations of the Code of Conduct. In this Code of Conduct, the Bank has designated the basic principles concerning the execution of duties and compliance with professional standards by directors and employees. Details of the Code of Conduct can be viewed on the Bank’s website.

CG Heroes award presentation ceremonyCode of Conduct booklet


Moreover, the Bank identifies important rules and practical guidelines that are in accordance with the Code of Conduct, which are detailed and disseminated to employees. The Bank also supports the practical implementation of the Code of Conduct throughout KASIKORNBANKGROUP, and has designated regulations that are consistent with business and compliance responsibilities. Also, the Bank has established the Corporate Governance Unit to launch activities to promote ethical behavior within a culture of good corporate governance. Best practices and actions in line with the Code of Conduct are regularly and efficiently disseminated to all employees. These activities are also reported to the Corporate Governance Committee for acknowledgement, and the Compliance Department monitores and evaluates the effectiveness of employees’ actions, as stated in the Code of Conduct.

Conflicts of Interest Prevention To encourage good governance, to be in compliance with standards of good governance, and to meet targets related to its implementation, the Bank has initiated guidelines to control, supervise, and prevent transactions that may involve conflicts of interest or connected or related transactions. This is one of the key components of corporate governance policy that the Board of Directors and the Bank’s employees must strictly comply with to earn the trust of all stakeholders. The following is the essence of these principles: • TheBoardofDirectorshasresolvedtoapprove a Conflicts of Interest Prevention and Connected Transaction Policy, as well as guidelines to consider appropriateness in the conduct of transactions that must undergo the scrutiny of the Audit Committee and ensure compliance with the criteria of the Office of the Securities and Exchange Commission, the Capital Market Supervisory Board, the Stock Exchange of Thailand, and the Bank of Thailand. • Directors,executives,oremployeeswithrelatedinterest in a transaction with the Bank or its subsidiaries must not participate in considering or approving such a transaction. The price of the transaction must be set appropriately, fairly, and in accordance with general commercial terms as applied to general customers.

• ConnectedTransactionsmustbesubmittedto the Audit Committee for consideration before further submission to the Board of Directors for approval, according to the Statement of Corporate Governance Principles and criteria stipulated by the Office of the Securities and Exchange Commission. • TheBoardofDirectorshasestablishedaprinciple for conducting connected transactions between the Bank’s directors, executives, or related persons and the Bank or its subsidiaries. Such a transaction can be conducted if the transaction is under terms and conditions similar to those applied to general customers in the normal course of business of the Bank and its subsidiaries. • InconductingtransactionsbetweentheBankand its subsidiaries or transactions between the Bank’s subsidiaries, the Bank requires that all transactions must be under terms and conditions similar to those applied to other persons in the normal course of business at a similar level of risk. Those transactions must be approved by the Board of Directors of the Bank and its subsidiaries, as the case may be. • TheBankanditssubsidiarieswhichconduct transactions in granting credit have no policy to grant credit, conduct transactions similar to credit granting, or conduct transactions relating to assets for any of the directors, executives, or related persons of the Bank and its subsidiaries which conduct such transactions in granting credit, except for cases in line with exceptions according to the Bank of Thailand’s regulations. Moreover, the Bank and its subsidiaries have no policy to grant credit, invest, create contingent liabilities, or conduct transactions similar to credit granting for any of the major shareholders or related persons of the Bank and its subsidiaries which conduct transactions in granting credit, or any of the businesses that have related interests with the Bank and its subsidiaries which conduct such transactions in granting credit, separately or in combination, at the end of each day, in excess of the quantity prescribed by the Bank and the Bank of Thailand.


• Directors,officersinthepositionofFirstSenior Vice President and higher, and those in the position of Department Head or equivalent in the Financial Accounting Management Department or Financial Planning Department under the Finance and Control Division and their related persons are required to disclose their shareholding information in businesses, their directorship, or their authority to manage or control majority votes in the shareholders meeting, including the right to control the election and removal of directors or the assignment of any other person to be the nominee of their shareholding or management, or the authority to control businesses. The disclosure must be made in the Bank’s database, which is under the responsibility of the Information Management Department that has the responsibility to update the information regularly for use by the Credit Policy and Risk Management Department. The monitoring and control of credit extensions and investment must follow the rules of concerned regulatory agencies. Information on the benefits of directors, officers in the position of Senior Executive Vice President or equivalent and higher, and those in the position of Department Head or equivalent in the Financial Accounting Management Department or Financial Planning Department, under the Financial and Control Division and their related persons must be reported to the Board of Directors by the Office of Corporate Secretary when a transaction between the Bank and the person related to the Bank’s directors and such persons is brought into consideration, seven days before the Board of Directors Meeting. • TheBankhasdiscloseddetailsofeveryrelatedor connected transaction that may involve conflicts of interest according to the Office of the Securities and Exchange Commission and Capital Market Supervisory Board’s criteria, in the Annual Reporting Form (56-1 Reporting Form), as well as in the Bank’s Annual Report and other reports, as the case may be.

This also includes disclosures of information on connected transactions to the Stock Exchange of Thailand according to the Stock Exchange of Thailand’s regulations, as well as disclosure of related transactions of the Bank according to recognized accounting standards and rules of the Bank of Thailand. Disclosures of related transactions are shown in the Notes to the Financial Statements, under “Related Party Transactions”. The Bank uses the same criteria as used with general customers to consider connected transactions, in accordance with defined procedures necessary to support the Bank’s business operations, and in a manner consistent with the Bank’s strategies in the best interests of shareholders. In 2011, the Bank had no connected transactions subject to disclosure to the Stock Exchange of Thailand. • Reviewsofconnectedtransactionswerecarriedoutin accordance with the plan. In cases where the Bank becomes involved in any related party transaction, the Bank is subject to report to the Audit Committee. In this regard, the Bank’s directors and employees must follow the Conflicts of Interest Prevention and Connected Transaction Policy as mentioned above, in accordance with official regulations.

Internal Control and Auditing Systems The Board of Directors and the Bank’s Management have placed particular emphasis on an efficient internal control system and promotion of an appropriate business culture, recognizing the importance of risk management and the adequacy of the internal control system in every business undertaking. The Bank requires all units to comply with the best practices for internal control as a guideline for the Bank’s business operations and employees’ practices. The Bank also set up a Risk Management Unit and a clear risk management policy. The Audit Committee has the duty and responsibility to review the effectiveness and adequacy of all risk management processes and internal control systems by discussing and evaluating operational results with the Compliance and Audit Division on a continuing basis.


These discussions include consideration of the appropriateness of the scope of work, roles and responsibilities, audit plans, audit conclusions with regard to the adequacy and effectiveness of the risk management, internal control, and governance processes, as well as the monitoring of compliance with the Bank’s Articles of Association and laws and regulations. Major recommendations or material deficiencies must be reported to the Board of Directors in a timely manner for effective action. To create an appropriate control environment, written policies and operational procedures, training and orientation programs, an operational manual providing information on rules and regulations, a professional Code of Conduct, a regular self-assessment program, and standardized disciplinary actions for gross offenses have been established. These also ensure common understanding as well as capabilities that will lead to efficient, transparent, and fair operations for the benefit of all stakeholders. In addition, in order to strengthen the supervision aspect and to promote a control culture that is consistent on all levels of the organization, the Bank organized a course entitled “Governance Risk Management and Compliance”, which has been incorporated into the executive training course. Control activities are an integral part of day-to-day operations. Appropriate segregation of duties is embedded to create a proper “check-and-balance” system for operating staff, supervisors, and performance assessment. Potential conflicts of interest are identified and subject to careful monitoring, in accordance with regulatory requirements and the Bank’s regulations. IT systems have continuously been upgraded to provide accurate, up-to-date, and adequate information for timely decision-making by Management and the Board of Directors. Systems include the financial data system, as well as operational and compliance databases, to monitor the effectiveness of the internal control system for prompt corrective action against significant deficiencies. The Bank also provides effective communication channels to ensure that all employees understand and adhere to the policies and procedures affecting their duties and responsibilities.

The Compliance and Audit Division, which is independent in its operation and reports directly to the Audit Committee, carries out the risk-based audit function and monitoringof the operations of the KASIKORNBANK FINANCIAL CONGLOMERATE. The audit methodology is based on a risk assessment of the Bank and the audited units, and the scope covers compliance with regulatory agencies, the Bank’s operational procedures, and the Statement of Business Conduct, as well as an assessment of the adequacy and effectiveness of the risk management and internal control system, the efficiency of resource management, and the accuracy and reliability of information. Moreover, the Compliance and Audit Division provides consulting services to the audited units, according to the agreed scope, with the objective of increasing the value and improving the operations of the KASIKORNBANK FINANCIAL CONGLOMERATE. The Compliance and Audit Division applies the concept of continuous audit in its audit process. The Division constantly evaluates and improves the quality of its work as measured against the generally accepted international auditing standards. Additionally, the Internal Audit Department, which is an independent unit, has been assigned as another channel for reporting complaints and suspicious conduct. This ensures that the Bank has an appropriate and transparent whistle blowing process and complies with good corporate governance standards. The Bank is aware that a system of effective internal controls is a critical component of the Bank’s management and a foundation for the “safe and sound” operations of the Bank. These features help to ensure that the goals and objectives of the Bank will be met, that the Bank will achieve long-term profitability, and will maintain reliable financial and managerial reporting. Such a system can also help to ensure that the Bank will comply with laws and regulations as well as policies, plans, and internal rules and procedures, and prevent the risk of unexpected losses or damage to the Bank’s assets and its reputation. The Bank, therefore, monitors the effectiveness of the internal


control system through regular operations and periodic assessments, so as to be assured of the system’s consistency and capability in managing the changing risks at different periods of time. Any detected irregularities are immediately reported to responsible managers, and significant findings are appropriately reported to senior management and the Board of Directors.

Risk Management The Risk Management Committee is responsible for designating organization-wide risk management policies under the guidelines established by the Board of Directors, to whom the results must be reported regularly. The Bank has outlined the risk management process, key steps of which include risk identification, assessment, monitoring and control, and reporting. Moreover, the Bank emphasizes early warning indicators, monitoring of key risk, exposures and concentration, as well as regular reviews of the sufficiency of the risk management system and its effectiveness. The details of risk management are disclosed in the section entitled Risk Management and Risk Factors.

Appointment of External Auditors and Consideration of Audit Fees The Audit Committee considers the qualifications and performances of external auditors for recommendation to the Board of Directors for their annual appointment, and the proposed audit fees for further consideration and approval by the General Meeting of Shareholders. The list of external auditors to be proposed as the Bank’s auditors must also be endorsed by the Bank of Thailand. In 2011, the remuneration for external auditors included: 1. Audit Fees: The Bank and subsidiary companies have paid audit fees to: • Auditors of the Bank, totaling Baht 8,534,000 in the past accounting year.

• The respective audit company including individuals or business entities related to the auditors and the respective audit company, totaling Baht 13,771,000 in the past accounting year.

2. Non-Audit Fees: The Bank and subsidiary companies have paid non-regular auditing fees, i.e., special purpose audit, legal and tax service engagements to Perform Agreed-Upon Procedures and consulting services irrelevant to auditing to: • Auditors of the Bank totaling Baht -0- over the past accounting year, together with future payments of Baht 760,000, due on incomplete work in the past accounting year. • The respective audit companies or their independent contracted auditors, including individuals or business entities related to the auditors and their respective audit companies, totaling Baht 7,480,000 over the past accounting year, together with future payments of Baht 9,030,000, due on incomplete work in the past accounting year.

5.5 Self-Assessment by the Board of Directors The Bank has established an annual self-assessment plan for the Bank’s Board of Directors. It serves as a tool for reviewing performance, as well as issues and obstacles facing each director over the past year. It also helps increase the operational effectiveness of the Board. Performance assessment of the Board of Directors is conducted in two ways: the overall performance assessment of the Board and the performance assessment of each individual director. To facilitate this, the Bank has developed an assessment form consistent with the Statement of Corporate Governance Principles, as well as the duties and responsibilities stated in the Board of Directors Charter. The Board of Directors conducts self-assessments once a year, and the assessment results are then analyzed and evaluated to indicate the level of achievement of


objectives for self-assessment by the Board of Directors, as established by Bank regulations. The Corporate Secretary submitted the 2011 performance assessments to directors, including 6 topics: (1) Structure and characteristics of the Board; (2) Roles and responsibilities of the Board; (3) Board meetings; (4) Discharge of duties of the Board; (5) Relationship with the Bank’s Management; (6) Self-development of directors and executive development. The self-assessment process is also applied to four Board Committees - Audit, Corporate Governance, Human Resources and Remuneration, and Risk Management. All Board Committees conducted self-assessments in 2011, and the assessment results have been presented to the Board of Directors. The Chief Executive Officer and President also undergoes self-assessment in order to compare his actual performance with the Bank’s targets and the annual business plan. The Human Resources and Remuneration Committee is responsible for submitting the assessment results to the Board of Directors for consideration. The self-assessment of the Chief Executive Officer and President are specified as part of his performance assessment in the Board of Directors Charter. The Chairman of the Human Resources and Remuneration Committee then submits the Board’s assessment results, together with their opinion, to the Chief Executive Officer and President.

5.6 Remuneration to Directors and Executives The Bank has established a set of well-defined and transparent remuneration policies for directors. The Human Resources and Remuneration Committee is responsible for reviewing these policies, taking into consideration the appropriateness of remuneration with respect to the scope of responsibilities of each director to ensure that the Bank’s remuneration is comparable to that of other commercial banks. Remuneration to executives is paid according to the policies and criteria set by the Board of Directors. It is

tied directly to the performance of the Bank and the performance of each individual. The Human Resources and Remuneration Committee shall propose remuneration to the Board of Directors for consideration. The General Meeting of Shareholders No. 99, on April 7, 2011, approved director remuneration and bonuses. A director who is also a member of other board committees shall receive additional remuneration according to the increased responsibilities. Details of remuneration to directors and executives are as follows:

1. Remuneration 1) Remuneration for directors: In 2011, 16 directors received remuneration as directors and as members of the Advisory Directors to the Management Committee, Audit Committee, Corporate Governance Committee, Human Resources and Remuneration Committee, Risk Management Committee, and as legal adviser, together with a bonus at the rate of 0.5 percent of the dividend payment, totaling Baht 67,278,660. 2) Remuneration for Advisers to the Board of Directors: totaled Baht 1,689,600. 3) Remuneration for executives: • Executives in the position of First Senior Vice President or equivalent, totaling 30 persons, received remuneration including salaries, living expenses, and bonuses from the Bank, totaling Baht 189,698,718. • Executives in the position of Executive Vice President or equivalent and higher, totaling 21 persons, received remuneration including salaries, living expenses, and bonuses from the Bank, totaling Baht 262,156,323. In summary, executives in the position of First Senior Vice President or equivalent and higher, totaling 51 persons, received remuneration including salaries, living expenses, and bonuses from the Bank, totaling Baht 451,855,041.


Remuneration for Directors in 2011

Mr. Banyong Lamsam Received remuneration as Chairman and Advisory Director to the Management Committee, totaling Baht 7,128,000, and a bonus of Baht 3,789,030.

Pol. Gen. Pow Sarasin Received remuneration as Vice Chairman and Advisory Director to the Management Committee, totaling Baht 5,322,000; and as Chairman of the Corporate Governance Committee, amounting to Baht 396,000, and a bonus of Baht 2,841,775.

Mr. Banthoon Lamsam Received remuneration as a director, totaling Baht 1,200,000, and a bonus of Baht 1,894,515.

Dr. Prasarn Trairatvorakul(1) Received a bonus of Baht 619,460.

Mr. Sukri Kaocharern Received remuneration as a director and Advisory Director to the Management Committee, totaling Baht 2,400,000; as a member of the Corporate Governance Committee, amounting to Baht 264,000; and as Chairman of the Risk Management Committee, amounting to Baht 396,000, and a bonus of Baht 1,894,515.

M.R. Sarisdiguna Kitiyakara(2) Received remuneration as a director, totaling Baht 900,000; and as Chairman of the Audit Committee amounting to Baht 594,000, and a bonus of Baht 1,894,515.

Mr. Somchai Bulsook Received remuneration as a director, totaling Baht 1,200,000; as a member of the Audit Committee amounting to Baht 660,000; and as Chairman of the Human Resources and Remuneration Committee, amounting to Baht 385,000, and a bonus of Baht 1,894,515.

Ms. Sujitpan Lamsam Received remuneration as a director, totaling Baht 1,200,000; and as a member of the Risk Management Committee, amounting to Baht 264,000, and a bonus of Baht 1,894,515.

Professor Khunying Suchada Received remuneration as a director, totaling Baht 1,200,000; and as a member, Kiranandana(3) and Chairperson of the Audit Committee, amounting to Baht 693,000, and a bonus of Baht 1,894,515.

Professor Dr. Yongyuth Received remuneration as a director, totaling Baht 1,200,000; as a member of the CorporateYuthavong(4) Governance Committee, amounting to Baht 264,000; and as a member of the Audit Committee, amounting to Baht 165,000, and a bonus of Baht 1,894,515.

Dr. Abhijai Chandrasen(5) Received remuneration as a director and legal adviser, totaling Baht 5,160,000; and as a member of the Human Resources and Remuneration Committee, amounting to Baht 242,000, and a bonus of Baht 1,894,515.

Ms. Elizabeth Sam Received remuneration as a director, totaling Baht 1,200,000; and as a member of the Audit Committee, amounting to Baht 660,000, and a bonus of Baht 1,894,515.

Dr. Schwin Dhammanungune(6) Received a bonus of Baht 1,504,070.

Professor Dr. Pairash Received remuneration as a director, totaling Baht 1,200,000; and as a member of Thajchayapong the Human Resources and Remuneration Committee, amounting to Baht 264,000, and a bonus of Baht 1,894,515.


Mr. Hiroshi Ota Received remuneration as a director, totaling Baht 1,200,000; and as a member of the Corporate Governance Committee amounting to Baht 264,000, and a bonus of Baht 1,894,515.

Ms. Kobkarn Wattanavrangkul(7) Received remuneration as a director, totaling Baht 1,100,000; and as a member of the Human Resources and Remuneration Committee, amounting to Baht 242,000, and a bonus of Baht 321,660.

Remarks: (1) Dr. Prasarn Trairatvorakul received a bonus from a dividend payment for the 2H10 operating results prorated by his term in office. (2) M.R. Sarisdiguna Kitiyakara passed away on September 21, 2011. (3) Prof. Khunying Suchada Kiranandana was appointed Chairperson of the Audit Committee on September 29, 2011. (4) Prof. Dr. Yongyuth Yuthavong was appointed a member of the Audit Committee on September 29, 2011. (5) Dr. Abhijai Chandrasen was appointed a member of the Human Resources and Remuneration Committee on January 27, 2011. (6) Dr. Schwin Dhammanungune resigned from his directorship on January 1, 2011, and received a bonus from a dividend payment for the 2H10 operating results. (7) Ms. Kobkarn Wattanavrangkul was appointed as a director and a member of the Human Resources and Remuneration Committee on January 31, 2011.

2. Other remuneration 1) Remuneration for directors: none 2) Remuneration for advisers to the Board of Directors: none 3) Remuneration for executives: In 2011, the Bank contributed Baht 5,156,727 to the provident funds for the Bank’s executives in the positions of First Senior Vice President or equivalent, totaling 30 persons, and Baht 6,803,890 to the provident funds for the Bank’s executives in the positions of Executive Vice President or equivalent and higher, totaling 21 persons, making a total contribution of Baht 11,960,617 for executives in the positions of First Senior Vice President or equivalent and higher, totaling 51 persons.

5.7 Professional Development for Directors and Executives To enhance the operational efficiency of the Board of Directors, the Bank continued to implement a policy of supporting directors, executives, and staff performing duties related to corporate secretary, compliance, internal control, and corporate governance, in attending seminars and training courses at the Thai Institute of Directors (IOD), the Stock Exchange of Thailand, and other independent institutions, as planned. The Bank has organized orientations for new directors, to provide them with information on their roles and responsibilities,

as well as information related to the Bank, clarifications on legal obligations, regulations related to the directorship of listed companies, regulations related to the Board Committee’s charters, the Bank’s core policies, and the manual for directors of financial institutions and securities companies, as an overall process to promote understanding among directors about their roles and the Bank’s business operations. Information on the business operations of the Bank has also been continuously provided in the forms of documents and presentations in meetings. In 2011, Professor Dr. Yongyuth Yuthavong, an independent director, participated in the Financial Institutions Governance Program organized by the IOD. In addition, the Human Resources and Remuneration Committee has considered executive development and succession plans for the positions of Chief Executive Officer, President, and other senior executives, taking into account different factors, e.g. the qualifications, knowledge, competencies and experiences required for each position. The performance of potential executives is evaluated in order to formulate individual development plans; and rotation of responsibilities is undertaken to ensure that they will gain greater understanding and hand-on experience, preparing them for organization-level management. Criteria and a list of persons qualified for these positions are to be reviewed regularly and reported to the Board of Directors.


DIVIDEND POLICY

The Bank’s Dividend Policy In determining dividend payments, the Bank will take into consideration its operating results as well as long-term returns to shareholders. Dividend payments will be in accordance with Article 32 of the Bank’s Articles of Association, stating that no dividend shall be paid out of any money other than profits. In the event that the Bank has an accumulated loss, no dividend shall be paid. Dividends shall be paid equally, according to the number of shares held. Payment of dividends shall be subject to shareholder approval. The Board of Directors may pay shareholders an interim dividend from time to time, if there is sufficient profit for such payments, and shall report the same to the shareholders at the next shareholders meeting. Dividend payments must also be in compliance with statutory requirements, including the Bank of Thailand Notification, Re: “Classification and Provisioning of Financial Institutions” stating that if impaired assets are not written off, or full provisioning for impaired and unimpaired assets and contingent liabilities has not yet been set aside, banks cannot pay dividends or other benefits to shareholders. In addition, the Bank of Thailand Notification, Re: “Accounting Treatment of Financial Institutions” states that banks may not use unrealized profits or unrealized cashflow receivables or gains derived from non-material liquidation of assets that cause banks to post higher profits or lower losses than usual for dividend payments.

The Dividend Policies of Subsidiaries The Bank has not fixed a dividend payout ratio for our subsidiaries. Their dividend payments shall depend on the operating results of each company. Dividend payments of subsidiaries to the Bank must be made in accordance with each company’s regulations on dividend payments that must be approved by a resolution of their General Meeting of Shareholders. Interim dividend payments are allowed. In paying dividend, subsidiary companies must record some profit. If there is an operating loss, dividend payments are barred until such losses are recovered. In addition, at least one-twentieth (1/20) of all profits after accumulated loss must be set aside asprovisioning reserves until provisioning reserves reach one-tenth (1/10) of a company’s authorized share.


FACTORS AFFECTING INVESTMENT DECISIONS

Legal Disputes 1. The Bank is not involved in any legal dispute in which the Bank is a litigant or a concerning party with any other entities, as follows; 1.1 cases that may cause any negative impact to assets of the Bank or subsidiaries in an amount greater than 5% of its shareholder equity, according to the latest fiscal year-end. 1.2 cases that may have a materially adverse effect on the Bank’s business operations; unable to estimate an amount. 1.3 cases that do not originate from the ordinary course of Bank’s business.

2. Pending cases in court are as follows; There is a total of 179 pending cases in court, originated from the ordinary course of the Bank’s business, equal to the total litigated amount of approximately Baht 7,727 million, in which the Court of First Instance has awarded judgement in favor of the Bank. There are 47 cases that are still on trial in higher courts, with a litigated principal of approximately Baht 6,048 million. The Bank’s Management is under the opinion that all of the aforementioned lawsuits will have no material impact on the Bank’s business operations.

CORPORATE SOCIAL RESPONSIBILITY (CSR) ACTIVITIES 257 Business Activities

266 Environment and Safety

269 Employees

274 Social Activities

281 Plans for CSR Activities in the Future

257Annual Report 2011Corporate Social Responsibility (CSR) Activities

As a financial conglomerate operating in conformity with the Statement of Business Conduct, as well as Corporate Governance and Corporate Social Responsibility (CSR) Principles, KASIKORNBANKGROUP (KGroup) aims to become a sustainable and transparent business with sound social responsibility. The Board of Directors has assigned the Corporate Governance Committee to supervise CSR activities and has approved the CSR policy, incorporating the following mandates. • To strictly adhere to the Statement of Business Conduct, and to participate in social development and environmental protection • To encourage employees at all levels to strictly abide by the Code of Conduct and CSR Principles • To launch CSR activities for the benefit of all stakeholders • To arrange workplaces with an emphasis on safety, occupational health, environmental concerns, and facilitation for employees and customers • To promote environmental preservation and contribution to society KASIKORNBANKGROUP has harmoniously integrated CSR concept into our business plans, utilizing knowledge gained from past CSR experience to create innovations of the greatest benefit to both business and society. CSR activities were ongoing throughout 2011 with focus on participation by employees, customers and communities. KGroup CSR activities were allocated a budget of 1-1.5 percent of annual net profit, and CSR activity reports were submitted to the

Corporate Governance Committee and the Board of Directors on a regular basis. CSR projects and activities may be summarized under four headings.

Business Activities* Business venture under the Corporate Governance and CSR Principles has always been embraced by KGroup, along with our firm commitment to promote and support the development of business potential for sustainable and continuous growth of customers in the corporate, SME and retail segments. A number of projects were carried out over the past year, from knowledge sharing and advisory services to customer networking, equipping customers with knowledge for more effective business practices. KGroup acted as an intermediary conveying to customers and the general public information, knowledge, and the operating philosophies and practices of the Bank for consistency with and in response to the government’s business promotion policies.

A Rigorous Culture of Credit KGroup has adhered to a policy of extending only justifiable credit. The Bank has a culture as well as policies and regulations avoiding grants of credit to certain types of business, including those in contravention of moral principles and social norms, those involved with speculation for profit, illegal activities, encroachment upon and/or negatively

* In compliance with the Core Indicators of the Global Reporting Initiatives Guidelines (GRI)

Product and Service Impact FS 1 Policies with specific environmental and social components applied to business lines. FS 2 Procedures for assessing screening environmental and social risk in business lines.

Profile Disclosure Description

CORPORATE SOCIAL RESPONSIBILITY (CSR) ACTIVITIES

258 Annual Report 2011Corporate Social Responsibility (CSR) Activities

affecting mangrove areas and violation of environmental legislation. Of the utmost importance, priority has been given to the environmental credit policy, based on the awareness on and accountability for our operations that could affect the environment. Thus, credit approval must conform to environmental legislation. This will lead to sustainable development for society as a whole. KGroup credit approval policies have been geared towards environmental concerns in the following ways. • Beyond the viability of the business, environmental impact assessments are a key consideration for credit approvals. • Environmental impact assessments are strictly required with credit applications from industries and businesses likely to have environmental or social impacts.*

Green Concept “Green Bank, Green Financing, Green Project” In keeping with the commitment to CSR, it is KGroup policy to develop and promote environmentally-friendly products and technologies and to inspire environmental awareness and cooperation in preserving the earth in and among all target groups.


Economic Performance Indicators EC 08 Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind, or pro bono engagement. EC 09 Understanding and describing significant indirect economic impacts, including the extent of impacts.

Environmental Performance Indicators EN 5 Energy saved due to conservation and efficiency improvements EN 6 Initiatives to provide energy-efficient or renewable energy-based products and services, and reductions in energy requirements as a result of these Initiatives.


Green Lending* The Bank has valued alternative and renewable energy, responding to business demand and educating customers and the general public through the “Green Bank, Green Financing and Green Projects” concept. The Bank has provided financial consultation and financing to over 20 solar projects and to no less than three wind projects. The Bank has disseminated knowledge of renewable energy in a variety of forums, such as at the Executive Dinner Talk for Alternative Energy Business that was jointly organized with the Stock Exchange of Thailand, and participation in the opening of the Solar Farm Learning Center, Amphoe Sung Noen, Nakhon Ratchasima. The Bank also developed the K-Energy Saving Guarantee Program, providing businesses consultation for full-cycle energy conservation of SMEs and financing their investments in energy management for maximum savings. This initiative should reduce energy usage and benefit the environment nationally. At the same time, these policies will allow businesses to be strengthened through long-term cost savings, in turn buoying national economy in these times of critically high and rising energy prices.


K-ATM to Reduce Carbon Footprint* The “K-ATM to reduce carbon footprint” project has been continually implemented by KGroup to allow the public to participate in preserving the global environment through innovations that serve customer needs while pursuing the Bank’s “Going Green” commitment for a sustainably clean and bright world. The program includes enhancement of energy efficient ATMs and smaller ATM slips, cutting down resource usage and helping to cut back global warming. Concrete results include the followings: • Power consumption has been reduced at some ATMs by keeping the lighting on for only four hours a day instead of the previous 12, at 872 K-Lobbies and 299 stand-alone ATMs. • The time that ATM air conditioners are on have been shortened from 18 to 10 hours a day, reducing power and air conditioner usage by 61 percent, and reducing carbon dioxide emissions from power plants, a major source of greenhouse gasses, by as much as 6,700 tons a year. • ATM slips have been reduced from 8.0 x 11.2 to 8.0 x 8.5 centimeters, appropriate for use and less

of a burden on the environment, while all necessary transaction data is retained. The smaller slips reduce paper usage by about 30 percent. Customers can also opt not to receive an ATM slip, an alternative path to reducing paper usage.

Business Strength and Sustainability Through K SME Care KGroup has strived to promote “boundless business” sustainable growth for SMEs, recognizing them as a major driver of the Thai economy. KBank works with allies in the public and private sectors, including leading universities, the Thailand Productivity Institute, the Institute for Small and Medium Enterprise Development and the National Science and Technology Development Agency to provide relevant knowledge and news, aside from financial products, to our SME customers. A survey of business needs shows that up-to-date news and information along with access to competent business advices are important elements in building sustainable business in today’s environment. These are the bases of K SME Care projects. The Training Series offers short-term business courses with the following salient features. • Courses are not limited to Bank customers and are offered free of charge.


Economic Performance Indicators EC 08 Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind, or pro bono engagement. EC 09 Understanding and describing significant indirect economic impacts, including the extent of impacts.

Environmental Performance Indicators EN 5 Energy saved due to conservation and efficiency improvements. EN 6 Initiatives to provide energy-efficient or renewable energy-based products and services, and reductions in energy requirements as a result of these Initiatives.



• The courses are intensively focused, and cover doing business from a full range of perspectives. Courses are continually brought up to date and tailored to the needs of participants in each different region. • Learning takes the form of direct transfers of knowledge and experience from experts in different fields and from successful business persons. • Decision making skills are honed through business simulation games. • Activities are organized so as to foster network building among participants and also extending out to the more than 7,000 members of K SME Care Network Club nationwide, so that business colleagues can share knowledge and experience. In 2011, K SME Care offered courses in Creative Economy to the 14th and 15th Training Series participant groups. Classes were held in Bangkok, Chiang Mai, Khon Kaen, Chon Buri and Phuket, and attended by more than 1,300 participants. The most outstanding activity of the year was the K SME Care Business Forum 2011, in the innovative format of giving presentations simultaneously

at five different cinemas to over 2,000 participants. Five topics were covered by renowned speakers under the general heading of Creative Economy. Over the five years since its inception, K SME Care has given 15 sets of classes to over 7,000 participants nationwide. Participants are all members of the K SME Card Network Club, a learning society where business knowledge and experience in supporting sustainable business growth is shared.

K SME Academy, a Further Advancement by Sustainable Business Plan KASIKORNBANKGROUP and the Thammasat Business Consulting Center (TBCC) have joined forces to develop an intensive training course entitled K SME Academy for the Privilege group of SME Medium Segment, under K SME Value Plus program. The K SME Academy program is aimed for a further advancement of mid-sized SME customers’ business via business planning comprising definitive targets and work plans with clearer investment and financial planning

K SME Care Business Forum 2011, under the “Creative Economy” concept K SME Care projects to promote sustainable growth for SMEs


for more systematic and efficient business undertakings. As a result, the Bank will be able to provide relevant products and financial services to support long-term growth of SME’s more efficiently, The K SME Academy program has been organized for two years with eight training classes and 222 participating SMEs.

K SME: Realize the Dream of Thai Business 2011 This year, KGroup and the College of Management Mahidol University (CMMU), organized K SME: Realize the Dream of Thai Business 2011, a training course in writing business plans for start-ups, helping aspiring and new entrepreneurs to lay solid foundations for their new businesses. The program included a business plan competition open to proprietors who have been in business less than a year and students nearing completion of their bachelor’s degree. CMMU shared their knowledge through training courses and workshops, conveying the importance of the business plan along with techniques for creating a clear and appropriate plan for one’s own business. There were over 1,000 participants and over

300 business plans were entered in the contest. A panel of judges was to select the best business plans nationally and announce winners and prizes by December 15. However the widespread flooding towards the end of the year forced the final selection and announcement of winners to be postponed to March 8, 2012.

K SME Care Knowledge Center: The First of its Kind in Thailand KASIKORNBANKGROUP has opened the K SME Care Knowledge Center, the first of its kind in the Thai banking business, on the second floor of Chamchuri Square Building, to provide advisory service solutions to all SME proprietors and those wishing to start their own businesses. Interested persons can make an appointment to use our advisory services. Learning services are offered in three forms:

1. Business Intelligence: A knowledge base for SMEs; KBank works with business partners from many organizations to compile news and information beneficial to SMEs. Services include SME GURU

K SME Care Knowledge Center: The First of its Kind in Thailand“K SME: Realize the Dream of Thai Business 2011” program, in cooperation with the College of Management, Mahidol University


through which business specialists give one-on-one consultation on such matters as brand building, listing on the stock market, accounting and more. The Knowledge Corner is a study zone providing business-related books, magazines and analyses. Online Intelligence provides internet access to business research and information in databases throughout the world.

2. Business Training: Seminars, training and other activities addressing SME needs at every stage of growth. The Start-up Business course trains entrepreneurs for the initial stages of starting a new business, conveying basic knowledge and inspiring passion for business success. The Business Owner course helps entrepreneurs to develop and expand their businesses while maintaining stability and sustainability. The Lifestyle course trains business persons for work-life balance, such as gift wrapping techniques, photography tips and the art of persuasion in presentation.

3. Business Network: Networks are a most important element of any successful business. K SME Care

Knowledge Center facilitates SMEs in building up strong networks, through activities for SMEs to meet and share experiences. SME Society brings operators together with new trading partners through Business Matching activities. Online Business Matching is a networking tool available through www.ksmecare.com. The Bank has been working to provide online channels giving easy access to business knowledge and networks for all types of SME. The website www.ksmecare.com provides centralized access to business knowledge, including news, articles and research from KResearch; online seminars are held and much other information is available through the site. Entrepreneurs identify new business opportunities with Online Business Matching, and the K SME Premium Mall - a joint project of KBank and Tarad.com - provides online global trading solutions. Throughout 2011, the Bank continued to form new alliances with various organizations, such as Microsoft Thailand and Google Thailand, as part of our effort to enhance our capacity to assist SMEs.

Activities to build up strong business networks among members of K SME CareParticipants in the 14th training series of K SME Care projects to promote sustainable growth of SMEs


In 2011, more than 10,000 SME entrepreneurs used the services of the K SME Care Knowledge Center and there were over 20,000 visitors at www.ksmecare.com on average each month. Meanwhile, the 2012 learning program will be redesigned as AEC Flagship Knowledge Center, emphasizing the enhancement of SME capabilities in preparation for the inception of ASEAN Economic Community (AEC) in 2015 KGroup hopes that all these offerings will assist our SME customers in building solid business foundations and provide the tools to stand firmly on their own while advancing through the path of success, with KGroup as partner.

AEC: National Agenda for SMEs KGroup recognizes importance of encouraging and helping our customers to strengthen their businesses, especially in preparation for creation of the ASEAN Economic Community as a single market and production base in 2015. The AEC: National Agenda for SMEs is another program introduced by KGroup to provide knowledge and information through the K SME Care program assisting SMEs in coping with the direct and indirect changes that may come with the AEC. The AEC Self Assessment Tool has been developed to measure SME preparedness for AEC implementation.

KBank: The Bank for All In addition to knowledge-based support to our business and retail customers as well as general public by conveying financial and business management skills, KGroup has developed products and services for convenience and accessibility, i.e., • The Savings for Future Benefit program which allows the self-employed and others with limited documentation showing a steady income to use their savings history for loan applications. • K-Personal Loan for Pensioners: personal loans for government retirees using pension inheritance rights as collateral. • K-Bank to Post: Funds transfers from any of the over 7,500 K-ATMs nationwide to any one of 1,200 post offices countrywide. Jointly developed with Thailand Post Co., Ltd. the service provides convenience to those in outlying areas with neither bank branches nor ATMs. The recipient is required to present only an acknowledgement code and national ID card number to collect the transferred funds at any post office.

The “Savings for Future Benefit” program, which allows the self-employed to use their savings history to apply for loans

“AEC: National Agenda for SMEs” to provide knowledge and information through the K SME Care program assisting SMEs in coping with the inception of the ASEAN Economic Community (AEC)


K-WePlan KASIKORNBANKGROUP promotes financial management and planning among our customers and the general public. K-WePlan provides financial advisory services helping customers better manage their finances and achieve their financial goals. Activities under this program include the followings: • Disseminating financial planning knowledge and related articles through the www.k-weplan.com website. There are also financial news and a DIY calculator for basic financial planning. • Developing the K-Saving Memo computer program for recording income and expense in order to promote savings discipline and simplify basic financial management. Available both in CD format and online, the program had been distributed to the general public for three years in a row. Available at www.k-weplan.com, over 20,000 copies were downloaded in 2011. • Giving lectures on financial management with such topics as Smart Financial Planning and Preparing for a Happy Retirement. Lectures were given at various educational institutions, and other private and public organizations such as the Institute of

Academic Development (IAD), King Mongkut’s University of Technology, Thonburi, the Ministry of Tourism and Sports, the Si Sa Ket Chamber of Commerce, and the Faculty of Medicine, Chiang Mai University. There were 136 such events in 2011 attracting more than 4,000 attendees. • Providing online financial advisories on Facebook, “How to Complete your Personal Income Tax Form” and “How to Prepare Yourself for a Happy Retirement”, through which KBankLive members consulted with K-WePlan specialists. These activities were well received, with a great number of ideas as well as questions and answers posted. • Participating in financial expositions in Bangkok and other provinces. For example, the Money Expo at Chiang Mai, Songkhla and Bangkok, drawing a great deal interest from those attending financial health checkup and basic financial planning activities. • Giving joint support with the SET for the Young Financial Star Competition for the fourth consecutive year. The competition honors the best financial planners among university students and promotes personal financial planning among young Thais.

A computer program to promote financial management and planning for customers and the general public is available in CD format and online.

K-WePlan promotes efficient financial management among customers.


KGroup, in cooperation with Money & Banking magazine, held activities promoting a greater understanding of financial management among the general public. Lectures were given at financial institutions, public organizations, state enterprises and private companies. Seminars were organized for the general public and knowledge was disseminated through various media, including articles in Money & Banking and financial advice given by specialists via Facebook chat.

Assistance for Flood-affected Customers and the Public In response of the most extensive flooding in Thai history towards the end of the year, KGroup launched a number of financial and advisory assistance measures. • An information center providing aid to flood-hit K-Home Loan customers for home, electrical appliance and furniture repair and restoration. More than 8,000 technicians were available through the cooperation of more than 200 allied businesses. • KBank Big Cleaning by K Home Smiles Club: Over 300 managers and staff joined in cleaning and restoration activities and cleanup kits were given to K-Home Loan customers and to 200-plus housing projects.

• Aid to business customers for rapid recovery, including repair and restoration credit lines for SMEs; loans guaranteed by the Small Business Credit Guarantee Corporation (SBCG), as part our cooperation with the public sector; extension of loan terms by as much as 10 years; and shoring up liquidity through suspending principal and interest payments for up to six months. • Credit lines with effective interest rate for replacement of destroyed machinery, extended payment periods of up to seven years, no principal or interest payments for up to six months and credit limit of up to 100 percent of machinery value. • A one-stop flood relief center at the K SME Care Knowledge Center, the second floor, Chamchuri Square, offering sales of goods and necessary supplies. Many services were also provided, especially repair services, at special prices to SME customers and K SME Care Network Club members. • Acting as a center for pooling assistance and advice from KBank allies such as the Office of Small and Medium Enterprises Promotion (OSMEP) and the Department of Industrial Promotion (DIP).

An information center provided aid to flood-hit K-Home Loan customers in house rehabilitation, with the participation of more than 200 housing project allies.

KASIKORNBANKGROUP and “Money and Banking” magazine provided knowledge and information in financial management for the general public.


• Organizing seminars to provide knowledge concerning measures that will be beneficial to business rehabilitation during the post-flooding period, for example, corporate communications during the flood crisis, machine repair and bookkeeping. • Coordinating with the Japan Bank for International Cooperation (JBIC) and 19 Japanese partner banks to help flood-stricken Japanese business customers. Post-flooding assistance included credit limits for business rehabilitation, workplace and machinery repair, or financial aids if their products had been damaged by floods. The Bank launched other assistance measures, including KBank Recovery Loan for SMEs, as well. Aside from financial assistance, KGroup assessed the damage from the flooding closely and continued our assistance via other measures to help alleviate the hardship of our customers and enhance rapid resumption of their normal life and business.

Environment and Safety“Going Green” Commitment KGroup fully recognizes that safe, clean, and pleasant environments will help allow our employees to work more

efficiently, as well as being convenient for business contact with customers and general public. Therefore, KGroup has adopted the occupational safety, health and environmental programs in compliance with the standards established by the Ministry of Labor. Those programs are also consistent with recognized international standards. They include: In 2011, KGroup was awarded Leadership in Energy and Environmental Design (LEED) Gold certification by the U.S. Green Building Council (USGBC), an environmental organization in the United States that supports and provides knowledge under the concept of sustainable design. The LEED Gold certification affirms our commitment of not just ‘building green,’ but also ‘living green’, which has promoted our image on par with other world-class organizations. • The sanitation systems installed in the buildings are there for the health and safety of personnel working in these buildings, and include such systems as a two-stage air filtration system, plus air conditioning for clean air, free from outside air pollution; lighting systems with standardized lighting values for comfortable eyesight; and ozone-treatment drinking water purification systems, etc. In addition, energy-efficient electrical appliances are used within the buildings.

The Thailand Business Council for Sustainable Development and Thailand Environment Institute Foundation granted a certificate of emissions reduction to the Chaeng Watthana Building.

K SME Business Rehabilitation…Through the Flooding Crisis

( KBank.I-2011.III)

24 2554

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• Regarding KGroup concern towards the environment in society and in communities, emergency electricity generators are installed with exhaust systems that filter out smoke and smells, and have noise abatement devices to prevent disturbing nearby communities. The highly efficient wastewater system provides treated water to gardens and for use within the cooling system. Therefore, apart from enabling KGroup to significantly reduce water utility costs, the system also helps preserve the environment.

“Green Building” Status of the Chaeng Watthana Building for Environmental Sustainability The Chaeng Watthana Building is the third building of the Bank’s Main Offices that has been categorized as a “green building”. It is our pride of having been recognized as an exemplary organization in terms of energy conservation and environmental friendliness. KGroup has promoted knowledge on green architecture through seminars and study tours. In addition, books, pamphlets, video presentation and website have been launched about the Chaeng Watthana Building. A permanent exhibition on our green buildings has also been set up in the entrance hall to provide related knowledge and create shared inspiration among staff for organization development.

The Chaeng Watthana Building has been designed and constructed in a manner consistent with LEED standards. The building’s construction and improvements also standards of the Thailand Energy & Environmental Assessment Method (TEEAM), which are design guidelines and assessment of energy-saving and environmentally-friendly buildings. Architecture under the “green building” concept involves characteristics that are simple yet creative, outstanding, elegant, energy-saving, and sustainable. • Exterior glass is insulated and laminated, a new technology preventing heat from entering the building. The glass is self-cleaning, in order to combat dust and filth; and it is anti-reflecting, so surrounding areas will not be disturbed by glare. • The Chaeng Watthana Building’s interior has been designed with the concept of openness in order to make use of natural light for interior areas, to reduce electric light use and increase ventilation to assist the standard air conditioning system. Thus, the entire building is comfortably cool and consumes less energy. • To save even more energy, all of the building’s electric lights are energy-saving LEDs. • The Bank has installed a chemical-free wastewater treatment system equipped with direct electric

The Chaeng Watthana Building’s interior has been designed with the concept of openness to make use of natural light and increase ventilation.

The Chaeng Watthana Building is the third building of the Bank’s Main Offices that has been categorized as a “green” building.


coagulation technology and ultra-efficient filters to provide water for use within the sanitary systems, which helps the Bank reduce water utility costs by as much as 50 percent. • As for the landscape, additional plots of land have been purchased for outdoor car parking, providing more open space and green areas to the Chaeng Watthana Building. The outdoor car parking area has been designed in a way that helps to reduce heat on the hard parking surface, mitigating the so-called “urban heat island” effect, and to allow 80 percent of rainwater to permeate through, preventing water from being trapped in parking spaces. • The Bank has also reserved 166 parking spaces for energy-efficient vehicles and bicycles, accounting for 5 percent of the total parking space in the building. • Meanwhile, building materials such as carpet, plywood, medium-density fiberboard (MDF), adhesives and paint meet the requirements of “Green Label” and “Green Guard”, and are below the volatile organic compounds (VOC) content limit, helping to improve indoor air quality and prevent cases of “sick building syndrome”. Noise, water runoff and dust occurring during the building’s construction were strictly controlled.

• In addition, stairways have been constructed to connect six locations within the building for easier access to each floor, helping to reduce the use of elevators and thus save electricity costs for the Bank.

“Green Building” Status of the Phahon Yothin Main Branch Building With the Bank’s ‘Going Green’ commitment, the Phahon Yothin Main Branch is also categorized as a green building. The design focused on a concept that will upgrade staff members’ quality of life in the Phahon Yothin Main Branch and improve the interior design of the building for a modern look in tandem with a changed work platform. In use for more than 25 years, the Phahon Yothin Main Branch Building’s indoor conditions are fairly good, but office devices as well as infrastructure equipment such as air conditioners consume too much energy due to their dated technologies. The Bank has carried out an interior renovation of the whole building, including new interior architecture and piping work system, but has left the external building structure and main infrastructure system unchanged. Inner walls have been improved for modern, simple, and efficient function. The design focuses on an open plan office for greater vision of workflow continuity, while all staff can equally access

The Phahon Yothin Main Branch under renovation, including its piping work system and floor plans, in an attempt to make the old building “green” in accordance with international standards.

The Chaeng Watthana Building’s interior has been designed for energy saving and environmental friendliness.


external views and natural light. This will also allow the Bank greater flexibility in adjusting the office plan in the future. Foreseeing the significance of energy and the environment as critical global issues, the Bank would like the project of making the old building green to be endorsed by international standards and deemed that LEED (Leadership in Energy and Environmental Design), established by USGBC (US Green Building Council), was internationally accepted and the most suitable with this endeavor. This renovation project has achieved a LEED Gold rating, which affirms our commitment to energy and environmental conservation, along with improving working conditions of our employees, which helps to enhance the Bank’s image to the level achieved by other international organizations.

Electricity-saving procedures for branches, the consistency of the Bank’s environmental focus, and future projects*

Construction and renovation projects • Third residential building construction at the KASIKORNBANK Learning Center - Bang Pakong The building was constructed under a green building concept with a Platinum rating and opened for use on December 16, 2011. The USGBC is in the process of assessing this business. • Interior refurbishment of the Bank branches Non-toxic construction materials and furniture have been specified for refurbishment at all branches. • Replacing T8 light bulbs with T5 bulbs The project, implemented from 2008 to 2010, reduced carbon dioxide by 4,415 tons per year.

• Installment of energy-saving remote control systems for air conditioners Remote control systems had been installed in 369 branches, reduced carbon dioxide by 5,133 tons per year.

Employees* KGroup has adopted a human resource policy wherein we seek to enhance job opportunities and boost the potential of our staff toward professional excellence. This policy is consistent with business requirements and KGroup “Customer-Centricity” strategy that pave the way for us to become an even more secure and innovative financial institution, as well as being able to respond to the needs of customers more effectively. This is achieved via a number of established methods. We - • Undertake to recruit quality personnel and then enhance their competency to suit tasks that further their career growth. • Motivate each employee to achieve better results by offering incentives to perform well, and encourage them to commit themselves to our organization. Also, we seek to enhance employee leadership skills at every level, where appropriate. • Organize and promote an internal organizational culture with emphasis on teamwork and customer-centricity. • Continuously promote joint efforts under the KASIKORNBANKGROUP brand.


Environmental Performance Indicators EN 7 Initiatives to reduce indirect energy consumption and reductions achieved. EN 18 Initiatives to reduce greenhouse gas emissions and reductions achieved.



Compensation and Benefits KGroup has adhered to the philosophy regarding compensation and benefits for better quality of life of employees. This philosophy is based on the following principles: • Compliance with the rule of law and justice. • Competitiveness in the job market. • Staff competencies and expertise that meet the required tasks. • Retaining competent employees and attracting qualified persons to work for KGroup. • Motivation, e.g., via incentives, for employees to perform better in the work delegated to them. • Consistency with the KGroup business strategies.

Employee Benefits* KGroup places much significance on benefits that improve employee living standards and provide those that have the most meaningful impact: 1. Housing 2. Healthcare 3. Retirement plans 4. Severance pay 5. Educational subsidies for their children

Additionally, we offer other benefits such as loans for the purchase of private vehicles and computers, scholarships and grants for education, financial stipends upon marriage as well as other assistance, i.e., healthcare support for their parents, spouses and children, help with home renovation, special welfare in cases of accidental injuries, etc.

Employee Development* KASIKORNBANKGROUP emphasizes personnel development. Thus, various voluntary study courses are provided to our employees to enhance their knowledge, and expertise in consistence with KGroup strategic business plans, especially to achieve optimal customer satisfaction. KGroup employee study programs in 2011 included: Creation of K-Culture: 1. Customer-Centricity 2. Professionalism 3. Innovation 4. Group-wide Teamwork The model for K-Culture core values as devised for KGroup encourages employee behaviors that serve as roles models, especially when they are KGroup senior management staff, plus incentives for devoted service. Consistent encouragement is supplied via diverse activities and campaigns

“K-Culture” handbook, a constructive media to promote the organizational culture of KGroup core values

Suksamakki House, Hua Hin, a resort provided for the benefit of KBank staff


within KGroup. KGroup PR, including KASIKORNTV, messages within our intranet system, KASIKORNBANKGROUP Newsletter, in-house radio programs, etc., are used to encourage praiseworthy values and actions.

K-Leadership Program (K-Leadership’s 11 Desired Behaviors) KGroup consistently pursues employee development at all levels, including those at senior management and supervisory levels, because they are key to building teamwork and a positive corporate culture. KGroup supervisors are expected to be not only “competent” in their jobs but also in personnel matters by displaying fairness and appropriate behavior in all work-related situations. Thus, we have devised eleven elements in our behavioral guidelines as intrinsic to K-Leadership. They are: 1. Paying attention and giving opportunities to subordinates; 2. Setting appropriate targets; 3. Giving clear and reasonable advice; 4. Offering suitable rewards; 5. Praising appropriately; 6. Inspiring acceptance of changes; 7. Regularly monitoring staff performance;

8. Listening to, and encouraging the expression of other’s views; 9. Building good relationships; 10. Assisting in problem-solving; and - 11. Creating trust. These values are communicated via all internal media for to all management, supervisors and staff in order to promote desired professionalism in management and facilitate the supervision of appropriate leadership behaviors. The above guidelines for supervisors are presented via a number of internal channels using short, concise and easy-to-remember formats. For example, a song regarding the ‘11 behaviors’ of K-Leadership is often broadcast via our in-house radio programs and also played at appropriate occasions. Desktop artwork depicting the 11 K-Leadership behaviors is placed on the desks of supervisory staff at First Vice President and higher levels, as well as on tables in meeting rooms on all floors of our three corporate headquarters buildings (Rat Burana, Phahon Yothin, and Chaeng Watthana). Activities are organized for staff where they may express their views towards intranet campaigns, which feature easy-to-answer questions related to KGroup leadership behavior. KGroup systematically plans and develops staff skills and expertise via:

KGroup personnel potentiality development program K-Leadership Training Program


• A training roadmap for all organizational job positions throughout the country - as well as those who work at offices in China - in order to support our branch expansion, wherein all sites must be staffed by personnel trained and competent to KGroup standards. • Our Management Development Program (MDP) was enhanced in 2011 to include additional courses for senior management study. Each Annual Training Plan for supervisors and staff is meticulously devised in accordance with our established overview for training roadmaps, as well as the MDP, and is within the budget for each department. In-house training facilities assist supervisors in planning their staff members’ curricula.

• Study courses that are relevant to staff tasking and financial institution business, e.g., such matters as “compliance in anti-money laundering law”, have been provided for employees and others to whom the material is relevant. These courses are given in traditional text as well as e-learning formats. In 2011, the number of participants was 16,628 employees, or 90 percent of total employees. • All e-learning study courses are regularly updated to keep them relevant. Employees are able to study at anytime and anywhere via devices accessible to online content. In 2011, in-house learning activities were rigorously promoted, doubling the number of employees in attendance over the previous year.

In-house study courses 263 777 14,056 (83.86%)External study courses 381 n.a. 734 (4.38%)e-Learning 131 n.a.** 10,983 (65.53%)

Number of Employees AttendingNumber of ClassesNumber of TopicsLearning Courses in 2011

Coursework and Attendance in 2011

Remarks: ** e-Learning is a self-study program, so its number of classes cannot be counted

Labor Practices and Decent Work Performance Indicators LA 3 Benefits for fulltime employees that are not provided to temporary or part-time employees, by major operations. LA 8 Education, training, counseling, prevention, and risk-control programs in place to assist workforce members, there families, or community members regarding serious diseases. LA 11 Programs for skills management and lifelong learning that support the continued employability of employee and assist them in managing career ending.

Human Rights Performance Indicators HR 3 Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations, including the percentage of employee trained.




KGroup also promotes and enhances the living standards of KBank staff families via diverse KGroup media, including: 1. Knowledge Sharing 1.1 KASIKORNTV Our “Suk Kai Sabai Jai” (healthy body and mind) program presents content related to healthcare in a broad range of topics. The “K Style” program presents interesting and worthwhile hobbies that can be balanced between work and leisure time. Also, our “Khui Len Len Yen Wan Suk” (‘Leisurely Talk, Friday Evening’) program is a radio and TV talk show presented on Friday evenings, centering on general beneficial issues related to health, sports, family, shopping, holidays, financial management, tourism, dinning places, etc. 1.2 Items carried on Our Lotus Notes System: • K Life Balance eMagazine is an online magazine presenting lifestyle subject matter for our staff, adhering to a balance between personal lives and work, published every second and fourth Monday of the month. • K Tips presents useful articles for work and daily life, including physical and mental health care, financial matters, family care, etc., issued as special editions on various occasions including at the New Year,

Songkran, or upon events where employees need special care, such as during outbreaks of influenza. 1.3 KBank Newsletter “Kitchakan Samphan” (business relationship) - Issued every first and third Monday of the month: • “Suk Kai Di Mi Suk” (Healthiness for Happiness) is a column presenting healthcare-related issues. • “Mi Di Ma Bok” (Useful Tips to Share) is a column presents good and useful contents • “Sang Khon Keng Leng Khon Di” (Building and Taking Care of Competent and Good People), which is a column presenting contents related to the enhancement of one’s potential. 1.4 In-House Radio Programs Our in-house radio programs offer beneficial spots on special occasions. The “Khui Len Len Yen Wan Suk” ((‘Leisure Talk, Friday Evening’) program is a radio and TV talk show on Friday evenings. The program presents subject matter on beneficial issues including health, sports, family, shopping, holidays, financial management, tourism, dinning places, etc. 2. “KGroup…Healthy Group” activities Apart from providing knowledge via diverse in-house media, KGroup also organizes an annual “KGroup…Healthy Group” program that campaigns for better healthcare among

“K Life Balance” eMagazine disseminated via KBank intranet systemKBank newsletter, “Kitchakan Samphan”


staff and positive relationships between employees and the organization, in accordance with staff interests and the current situation. Highly-experienced physicians have been invited to give tips on “Mental Care, Post-Flooding, Resilience Despite Loss” and other subjects of interest to our staff. These programs are broadcast to branches nationwide via KASIKORNTV.

Social Activities KASIKORNBANKGROUP has continued to organize various activities for social contribution as per our commitment to take part in social development by giving assistance and supporting post-crisis recovery for alleviating hardship and loss to people. Our notable efforts included:

The 8th Sino-Thai Forum Project, “Empowering RuralDevelopment: Micro-Finance, Agri-Production and Community Organization” Her Royal Highness Princess Maha Chakri Sirindhorn presided over the 8th Sino-Thai Forum project entitled, “Empowering Rural Development: Micro-Finance, Agri-Production and Community Organization” and gave

a lecture entitled, “Rural Development under the His Majesty the King’s Initiatives”. Organized by KASIKORNBANKGROUP, with cooperation of the Chaipattana Foundation and Ministry of Agriculture of the People’s Republic of China, this seminar was aimed at sharing knowledge on agricultural management and development for rural areas of Thailand and China in the dimensions of the management of community, enterprise and finance. Knowledge and experiences from the seminar should be useful for participants to upgrade their operations in a more sustainable way, thus benefiting the overall economies and societies of the two countries and strengthening their relationships. KASIKORNBANKGROUP has been the sponsor and organizer of the seminar for eight consecutive years. The event has attracted around 500 Chinese and Thai participants each year.

Projects in Honor of His Majesty the King On the occasion of His Majesty the King’s 84th Birthday Anniversary, December 5, 2011, KASIKORNBANKGROUP invited Thais to pledge loyalty to His Majesty the King and respond to His Majesty’s call for unity among Thais. Two main activities were organized during 2011:

The Painting Contest in Honor of His Majesty the King’s 84th Birthday Anniversary

The 8th Sino-Thai Forum Project, “Empowering Rural Development: Micro-Finance, Agri-Production and Community Organization”


Painting Contest in Honor of His Majesty the King KASIKORNBANKGROUP and the Bangkok Art and Culture Center jointly organized a painting contest in honor of His Majesty the King’s 84th Birthday Anniversary. Based on the concept of “Happiness of the People under the Reign of His Majesty the King”, the grand prize winner of this art competition was awarded a ‘golden paintbrush.’ The contest aimed at publicizing valuable artistic works that promote Thai people’s realization and appreciation of the graciousness of His Majesty the King, and the unity expressed through living together in peace and harmony under His Majesty’s reign with righteousness. Among 260 artists, with 292 artistic works in total, there were 94 award-winning paintings that were selected for display at the exhibition. The King’s Cup KBank Dragon Boat Championship KASIKORNBANKGROUP, in cooperation with the Rowing and Canoeing Association of Thailand (RCAT) and the Royal Thai Navy, hosted the 2011 King’s Cup KBank Dragon Boat Championship in honor of His Majesty the King’s 84th Birthday Anniversary. With a history going back more than 2,000 years, dragon boat racing is a traditional Thai sport that

highly values and promotes the spirit of unity. This sport also represents people’s loyalty to His Majesty the King and alignment with His Majesty’s call for unity among the Thais. Tournaments were arranged in all regions across the country, and the winning team of each region was invited to join the final-round competition held on the Chao Phraya River, in front of the KASIKORNBANK Rat Burana Main Branch, on February 2012.

Assistance during Disasters During 2011, KASIKORNBANKGROUP assistance mea-sures for alleviating hardship among disaster-hit people were as follows: Campaign of Donation to Flood Victims in Southern Thailand To help flood-affected people in southern Thailand, donations were transferred to the account of the Princess Pa Foundation, Thai Red Cross Society. Also, K-Credit Cardholders can use their reward points for donations. Every 1,000 KBank Reward Points earned with K-Credit Card spending can be converted to a 100 Baht donation. In addition, 10,000 packs of K Excellence drinking water and

The final round of the 2011 King’s Cup KBank Dragon Boat Championship, held on the Chao Phraya River, in front of KASIKORNBANK Rat Burana Main Branch

Her Royal Highness Princess Maha Chakri Sirindhorn presided over the award ceremony of the painting contest held in honor of His Majesty the King, with the grand prize of a ‘Golden Paintbrush.’


5,000 bags of rice were donated to flood victims via offices of the Bank.

In cooperation with the Thai PBS television channel, KBank helped renovate flood-affected schools in southern Thailand. At the evacuation center of Kantharalak district, Kantharalak, Si Sa Ket, bottles of K Excellence drinking water were given to victims of the Thailand-Cambodia border clashes. Assistance to Disaster Victims Abroad Aside from providing assistance measures for victims at home, KBank joined hands with Old Japan Students’ Association, Thailand (OJSAT), to help tsunami victims in Japan in March 2011 by opening an account for donations to the ‘Tohoku Tsunami Fund.’ To provide convenience and help our affected customers there, a measure to help K-Credit Cardholders in Japan was launched, with the offer of an additional credit line for supporting their emergency spending. In case of insufficient credit line, the cardholders can later ask for a temporary increase of credit limit, with other services provided, such as personal assistance for hotel reservations and flight schedule checking.

K-Credit Cardholders in Japan can have a cash advance immediately at any Visa or MasterCard ATM there. In case of a lost PIN code, cardholders can request a new PIN code, which will be provided within one day.

“Helping Each Other in the Thai Spirit”: A Helping Hand from KGroup through the Flood Crisis Amid massive flooding in mid - to late 2011 inundating vast areas from the Central Region to Bangkok, and severely impacting a large number of people, KGroup staff joined hands to relieve hardship of flood victims, such as donating relief packages and K Excellence drinking water, providing free transportation and launching various assistance measures for our customers and the general public. In addition, a flood relief center was established, with efforts to help rehabilitate damaged communities, temples and schools. Post-flood handbooks providing useful knowledge were also disseminated. In detail:

Establishment of Relief Center Under the royal initiative and approval of HRH Princess Maha Chakri Sirindhorn, the Kasikornthai Foundation arranged for the establishment and operation of the Chaipattana Foundation Aid and Restoration Center for Flood Victims at Wat Yansangwararam Varamahavihara, Bang Lamung,

The Chaipattana Foundation Aid and Restoration Center for Flood Victims at Wat Yansangwararam, Chon Buri.

KBank joined hands with the Old Japan Students’ Association, Thailand (OJSAT), to help tsunami victims in Japan.


Chon Buri. Officers were assigned to provide 24-hour assistance and coordination at this center, which could accommodate 600 flood victims. Food and drinking water were supplied, as well as occupational training and other recreational activities. In addition, an account was opened for donations for the center’s operations.

Relief Packages ‘Helping Each Other in the Thai Spirit’ KGroup employees with the volunteer spirit joined hands in preparing more than 7,000 relief packages ‘Helping Each Other in the Thai Spirit’, containing dry food and other necessities. Apart from these relief packages, more than 1,000,000 bottles of drinking water and vital items such as paper toilets and adult diapers were given to flood victims in the severely affected areas of Sing Buri, Lop Buri, Phra Nakhon Si Ayutthaya, etc. and Bangkok, via branch officers and volunteer teams. KGroup also joined hands with government agencies, such as the Royal Thai Army and Navy, the Revenue Department and Nonthaburi City Hall, and charitable organizations such as the Chaipattana Foundation, to give assistance to flood-affected people for ensuring that these packages were delivered to the widest possible areas.

Free Transportation KASIKORNBANKGROUP provided free transportation for the convenience of the general public in flood-hit areas from 8 a.m. to 6 p.m., every day, in four routes includingPhahon Yothin Road, Phet Kasem Road, Vibhavadi Rangsit Road and Rangsit - Nakhon Nayok Road.

Free copies of “Post-flood Home Renovation” handbook KASIKORNBANKGROUP offered 400,000 copies of our “Post-Flood Home Renovation” handbook free to flood victims. The handbook provides 21 rules of post-flooding home renovation for homeowners to cope with related problems systematically and safely. Interested persons were able to get this free handbook at the reopened KBank branches in flood-hit areas.

Post-flood Recovery Activities with KGroupBig Cleaning Day

KGroup invited all employees to join hands with volunteers and local people to clean up and rehabilitate severely flood-affected areas, such as the shine of Chao Phor and Chao Mae Pak Nam Pho; the area in front of the KASIKORNBANK Thanon Sai Asia Nakhon Sawan branch;

KASIKORNBANKGROUP gave free copies of the “Post-flood Home Renovation” handbook to flood-affected people.

KBank gave relief packages ‘Helping Each Other in the Thai Spirit’ to flood-affected people.


the area of the market and Wong Wien Kaset Park, Phra Nakhon Si Ayutthaya; Wat Siri Kumalaward, Bangkok; and Wat Thasung, Uthai Thani. We joined hands with The Mall Department Store, students of the Faculty of Nursing, Siam University and the community near Ban Bang Khae market to clean up the area of the Ban Bang Khae Social Welfare Development Center for Older Persons; and student volunteers from King Mongkut’s University of Technology Thonburi and Thammasat University, as well as staff of TV Burapha Co., Ltd. (the ‘Kon Kon Kon’ TV program) to rehabilitate the buildings of Khok Khem School and Temple, Amphoe Supphaya, Chai Nat. KBank arranged “KBank Big Cleaning by K Home Smiles Club,” with a cleaning team consisting of over 300 executives and staff members volunteering to help others clean up flood-hit areas. In addition, we gave cleaning kits to K-Home Loan customers and more than 200 housing projects. Financial Measures to Aid Customers Hit by the Floods Based on our assessment of customers’ damages caused by the severe flooding situation, additional aid measures were launched. For retail customers who use

K-Home Loan, the Bank reduced the monthly installment amount and extended additional credit limit for home repairs up to the amount of paid installment payments. For K-Credit Card holders and users of K-Express Cash who were unable to meet the specified debt repayment date, they also received a waiver of late payment penalties, and a reduced monthly installment amount. The monthly payment amount of KLeasing customers was also reduced, and the installment payment period was extended.

“Green at Heart” Project To commemorate KASIKORNBANK 66th anniversary on June 8, 2011, KASIKORNBANKGROUP organized the “Green at Heart” project, including the campaign entitled, “1 Person, 1 Idea worth 8 Baht for Green Society”, which encouraged employees to share ideas and propose water resource preservation guidelines. The Bank contributed 8 Baht for each idea submitted. All proceeds of the project were used for the implementation of wastewater treatment project at Bang Namphueng Floating Market, a community by the Chao Phraya River, Phra Pradaeng District, Samut Prakan. The volunteer-spirit employees learned about the production

KGroup employees participated in “1 Person, 1 Idea Worth 8 Baht for a Green Society” for the implementation of a wastewater treatment project at Bang Namphueng Floating Market, Samut Prakan.

KBank joined hands with volunteers and local people to clean up and rehabilitate Wat Siri Kumalaward, Bangkok.


of the Effective Microorganisms (EM) solution and distributed it to shoppers at the floating market, as well as paddling a boat together with representatives from other agencies to pour the EM solution in the Chao Phraya River.

Other Volunteer-Spirit Activities • Coral Planting and Marine Animal Releasing Activity at Samae San Beach, Sattahip, Chon Buri KGroup staff participated in coral planting and releasing rare marine animals back to the sea at Samae San Beach, Sattahip District, Chon Buri. They also attended a lecture on seabed preservation and background of artificial coral reef construction, delivered by the Director of the Marine Science and Conservation Center. • Coral Planting at Talu Island, Bang Saphan, Prachuap Khiri Khan Apart from attending a lecture on seabed preservation delivered by the staff of the Marine Science and Conservation Center, KGroup staff also took part in coral planting in the area around Talu Island, Bang Saphan District, Prachuap Khiri Khan.

• Creating Artificial Salt Licks and Building Dike at Kui Buri National Park, Prachuap Khiri Khan KGroup staff jointly created artificial salt licks for elephants and other wildlife, as well as building dikes, at Kui Buri National Park. They also donated equipment and foodstuffs to officers of Kui Buri National Park to be used in their forest preservation patrols.

Support of Volunteer Camps for Rural Development Realizing the significance of skill and knowledge development among students, who are the future workforce of the nation, KGroup supported them in spending their free time during the university holidays in doing useful activities, which also helped them to bring their knowledge into practice and disseminate it to benefit communities and society, especially through the self-practice from their field-trip. KGroup has consistently supported students in their volunteer camp projects and any other activities that yield public benefits, so that they can use their knowledge in a concrete manner through rural community development. In 2011, KGroup supported 57 volunteer camps of both private and public universities, including the Livestock Camp to

Activities to create artificial salt licks as well as building dikes, at Kui Buri National Park, Prachuap Khiri Khan

KGroup staff participated in coral planting and releasing rare marine animals back to the sea at Samae San Beach, Chon Buri.


Honor His Majesty the King, of the Student Club, Faculty of Veterinary Technology, Kasetsart University; the Pharmacy Camp to instill health reinforcement ideas to villagers in Buri Ram by the students of Faculty of Pharmacy, Huachiew Chalermprakiet University; the volunteer camp project for rural development to provide legal knowledge to people by students in the Faculty of Law, Thammasat University; the sport camp for youth development by students of the Faculty of Sports Science, Chulalongkorn University, the elephant and forest preservation camp by the Save Thai Elephant Club of Kasetsart University, etc.

KGroup Kathin Robe Presentation KGroup organized the Royal Kathin Robe Presentation Ceremony in 2011 at Wat Kanchanapisek Anusorn, commonly known as Leng-Noei-Yi Two Temple. Participating in the ceremony were KGroup executives and employees, and the general public, who jointly made donations to the temple and charitable organizations.

Support of Environmental and Social Activities KGroup has persistently supported to the Kasikornthai Foundation’s activities to promote education and health of underprivileged children, such as library projects and lunch projects. In addition, assistance has been provided to public and private agencies working on social development, as well as educational institutions , as per the following:

Support on Educational, Art and Cultural Aspects • The Supreme Artist Project of the Rama IX Art Museum Foundation to honor His Majesty the King for his great artistic talents and contributions. A book and DVD of His Majesty’s painting portfolio were prepared, as well as an exhibition held at the Bangkok Art and Culture Center. • The International Conference on General Education 2012, entitled “Roles and Experiences in Cultivating Global Citizens”, organized by the Thai General Education Network, Chulalongkorn University, and the Office of the Higher Education Commission (OHEC)

KBank supported the “Conservation of Koh Sichang” Youth Camp, Chon Buri arranged by the Siam Katanyu Foundation.

KGroup joined hands with our customers and the general public to organize the Royal Kathin Robe Presentation Ceremony in 2011 at Wat Kanchanapisek Anusorn, Nonthaburi.


• Bangkok’s International Festival of Dance & Music in celebration of His Majesty the King’s 7th cycle, or 84th Birthday Anniversary • The International Conference by the Faculty of Motion Pictures and Still Photography, Faculty of Communication Arts, Chulalongkorn University • The 5th training course on “The Path to Become a Writer”, arranged for youth in budget-deficient educational institutions, under the Office of the Coordination Committee for Cultural Promotion in Youth • The 12th university-level speech contest to honor His Majesty the King, organized by the Alumni Association of Chulalongkorn University • A seminar entitled “Investment for the Future” to acquire scholarships and subsidies for Thai students who have been accepted to further their study at Cambridge University, the United Kingdom, of the Cambridge Thai Foundation, under the patronage of Her Majesty the Queen • The Sermon of the Last Great Incarnation Story of the Buddha 2011 Project of the Buddhist Association of Thailand

• The International Symposium on Business and Industrial Statistics (ISBIS 2012) of the Faculty of Commerce and Accountancy, Chulalongkorn University

Support on Social and Environmental Aspects • Donation to buy medical equipment for Phaholpolpayuhasaena Hospital, Kanchanaburi • Anti-corruption campaign projects • The Marine Animal Preservation and Breeding Project to honor His Majesty the King, at Laem Ngop, Trat

Plan for CSR Activities in the Future KASIKORNBANKGROUP remains determined to be an organization that operates under the Statement of Corporate Governance Principles along with ultimate social responsibility, through the combination of CSR policies in the work process and business undertaking procedure of all departments as per international standards. All groups of stakeholders have been taken into consideration based on common benefits so that Thai society can step forward with stability and sustainability.

Anti-corruption campaign project at Lumpini ParkKGroup supported “Sai Jai Thai Day” event.

STRUCTURE 284 Organization Chart

286 Board of Directors

288 Board of Directors and Executives

300 Directorship of Directors and Executives in Subsidiaries,

Associated, and Related Companies

302 Changes in KASIKORNBANK Shares Held by Directors

and Executives in 2011

303 Management Team

308 Investments of KASIKORNBANK in Other Companies

284 Annual Report 2011Structure

ORGANIZATION CHART

7. Retail Business Division

1. Retail Portfolio Management Dept. (RP.) 2. Consumer Segment Management Dept. (SM.) 3. Database Marketing and Campaign Management Dept. (DM.) 4. Retail Deposit and Investment Products Management Dept. (DI.) 5. Credit Card Product Management and Marketing Dept. (CD.) 6. Unsecured Credit Product Operation Dept. (PO.) 7. Customer Relations Dept. (CU.) 8. Private Banking Dept. (PB.) 9. Consumer Sales Management Dept. (SD.) 10. Retail Business Development Dept. (BD.) 11. Housing Loan Product Management and Marketing Dept. (CL.) 12. Personal Loan Product Management and Marketing Dept. (PL.) 13. Retail Payment and Foreign Exchange Products Management Dept. (PF.) 14. Consumer Bancassurance Business Management Dept. (BA.) 15. Retail and SME E-Business Dept. (RE.) 16. Service and Sales Network (BN.) 17. Integrated Marketing Communication Dept. (IC.) 18. Business Channel Management Dept. (BC.) 19. Sales and Service Network Development and Support Dept. (DS.)20. Consumer Financial Advisory Dept. (CF.)21. Affluent Wealth Management Dept. (AF.)22. Electronic Channel and Sales and Service Network Operation Support Dept. (EC.)

6. SME Business Division

1. Medium SME Segment Management Dept. (MD.) 2. Small SME and Micro Segment Management Dept. (MC.) 3. Business Marketing Management Dept. (MM.) 4. SME Customer Relationship Management Dept. (SR.) 5. SME Business Network 1 (ME.) 6. SME Business Network 2 (SE.)

5. Corporate and SME Products

Division

1. Corporate Portfolio Management Dept. (CM.) 2. Corporate Credit Product Management Dept. (CR.) 3. Securities Services Dept. (SS.) 4. Global Business Development Dept. (GD.) 5. Corporate Channel Management Dept. (CC.) 6. Cash Management Dept. (CH.) 7. International Trade Product and Business Process Development Dept. (PP.) 8. Corporate Business Sales and Services Dept. (SA.) 9. International Trade and Factoring Processing Dept. (TF.)

4. Corporate Business Division

1. Corporate Segment Management Dept. (SC.) 2. Multi-Corporate Business Dept. (MB.) 3. Large Corporate Business Dept. (CB.)

8. Capital MarketsBusiness Division

(No Department)

1. Corporate Strategy Dept. (CS.) 2. K-Transformation Program

1. Office of Corporate Secretary (OS.) 2. Corporate Communications and Relations Dept. (CN.)

Corporate Secretary

Auditor

1. Corporate Secretariat Division

2. Corporate Strategy Management Division


Annual Report 2011Structure 285

Shareholders

Board of Directors

Advisory Directors to the Management Committee

Management Committee

Advisers to the Board of Directors / Legal Adviser

Corporate Governance Committee

Human Resources and Remuneration Committee

Audit Committee

Risk Management Committee

11. Finance and Control Division 12. Systems Division 13. Human Resource

Division 9. China Business

Division

1. China Business and Overseas Office Management Dept. (OM.)

1. Human Resource Management Dept. (HM.) 2. Employee Relations Dept. (ER.) 3. Human Resource Development Dept. (HD.)

1. Process Development Dept. (PD.) 2. Information Management Dept. (ID.) 3. Information Technology Management Dept. (IT.) 4. Information Technology Planning Dept. (IP.) 5. Treasury and Capital Markets Operation Dept. (TO.) 6. Credit Processing Dept. (CT.) 7. SME Credit and Housing Loan Approval Processing Dept. (SO.) 8. Cash and Payment Processing Dept. (CA.) 9. Ground Building and Facilities Management Dept. (FM.) 10. Procurement Management Dept. (PC.)11. IT Services Sourcing Management and Governance Dept. (SG.) 12. IT Infrastructure Management Dept. (IF.) 13. IT Quality Assurance and Risk Management Dept. (IQ.)14. IT User Service Dept. (US.)

1. Central Treasury Dept. (TS.) 2. Financial Planning Dept. (FP.) 3. Financial Accounting Management Dept. (FA.)

10. Enterprise RiskManagement Division

1. Integrated Risk Management and Analytics Dept. (IM.) 2. Credit Policy and Risk Management Dept. (CP.) 3. Credit Underwriting Dept. (UW.) 4. Legal Dept. (LG.) 5. Asset Quality Management Dept. (AQ.) 6. Asset Quality Management Network (AN.) 7. Retail and SME Business Collection and Recovery Dept. (CV.)

1. Compliance Dept. (CO.) 2. Internal Audit Dept. (IA.) 3. Risk Asset Review Dept. (RR.)

3. Compliance and Audit Division

Effective Date: February 1, 2012

Annual Report 2011Structure 285


Mr. Banyong LamsamChairman

Police General Pow SarasinVice Chairman

BOARD OF DIRECTORS

Annual Report 2011Structure

Dr. Abhijai ChandrasenLegal Adviser

Ms. Tida SamalapaCorporate Secretary

Assistant Secretary to the Board of DirectorsDr. Adit LaixuthaiMs. Arasa AmpornpongMs. Prayoonsri Katanyutanon

3

6

9

4

7

10

12

5

8

11

13

Directors 3. Mr. Banthoon Lamsam 4. Mr. Sukri Kaocharern 5. Mr. Somchai Bulsook 6. Ms. Sujitpan Lamsam 7. Professor Khunying Suchada Kiranandana 8. Professor Dr. Yongyuth Yuthavong 9. Dr. Abhijai Chandrasen 10. Ms. Elizabeth Sam 11. Professor Dr. Pairash Thajchayapong 12. Mr. Hiroshi Ota 13. Ms. Kobkarn Wattanavrangkul

287


1. Mr. Banyong Lamsam Chairman of the Board of Directors Advisory Director to the Management Committee (Authorized Signature) Age 78

Education • Bachelor’s Degree (Business Administration - Banking and Finance), University of New Mexico, U.S.A. • Honorary Doctorate Degree in Economics, Ramkhamhaeng University • Honorary Doctorate Degree in Economics, Chiangmai University

Training Program • Advanced Management Program, Harvard Business School, U.S.A. • Banking Program, Institute of Bankers, London, U.K. • Director Accreditation Program (DAP), Thai Institute of Directors Association

Experience Over Past 5 Years 1992 - Present Chairman of the Board of Directors, KASIKORNBANK PUBLIC COMPANY LIMITED 2000 - Present Advisory Director to the Management Committee, KASIKORNBANK PUBLIC COMPANY LIMITED 1992 - 2008 Director, Com-Link Company Limited

Directorship in Other Companies 1991 - Present Chairman, Dole Thailand Limited

Family Relationship • Cousin of Ms. Sujitpan Lamsam • Uncle of Mr. Banthoon Lamsam and Mr. Krisada Lamsam

2. Police General Pow Sarasin Vice Chairman Advisory Director to the Management Committee Chairman of the Corporate Governance Committee (Authorized Signature) Age 82

Education • Bachelor’s Degree (Chemistry), Johns Hopkins University, U.S.A. • Bachelor’s Degree (Criminology), University of California, U.S.A. • Honorary Doctorate Degree in Political Science, Ramkhamhaeng University

Training Program • Director Accreditation Program (DAP), Thai Institute of Directors Association

Experience Over Past 5 Years 1992 - Present Vice Chairman, KASIKORNBANK PUBLIC COMPANY LIMITED

2000 - Present Advisory Director to the Management Committee, KASIKORNBANK PUBLIC COMPANY LIMITED 2002 - Present Chairman of the Corporate Governance Committee, KASIKORNBANK PUBLIC COMPANY LIMITED 2002 - 2008 Director, Quality Houses Public Company Limited 2002 - 2007 Director, Siam Food Products Public Company Limited 1994 - 2010 Honorary Chairman, Independent Director, Chairman of the Audit Committee, and Chairman of the Remuneration and Nominating Committee, Charoen Pokphand Foods Public Company Limited Directorship in Other Companies 2010 - Present Vice Chairman, Independent Director, Chairman of the Audit Committee, and Chairman of the Remuneration and Nominating Committee, Charoen Pokphand Foods Public Company Limited 2008 - Present Chairman, Quality Houses Public Company Limited 1993 - Present Chairman, Mitsubishi Elevator Asia Company Limited Family Relationship None

3. Mr. Banthoon Lamsam Director Chief Executive Officer and President Member of the Risk Management Committee (Authorized Signature) Age 59 Education • Master’s Degree (Business Administration), Harvard University, U.S.A. • Bachelor’s Degree (Chemical Engineering), Princeton University, U.S.A. • Honorary Doctorate Degree in Business Administration, Prince of Songkla University • Honorary Doctorate Degree in Business Administration, Kasetsart University • Honorary Doctorate Degree in Business Administration, University of the Thai Chamber of Commerce • Honorary Doctorate Degree in Business Administration (Management), Sripatum University • Honorary Doctorate Degree in Business Administration (Banking and Finance), Chulalongkorn University • Honorary Doctorate Degree in Business Administration, Thammasat University • Honorary Doctorate Degree in Business Administration (Financial Management), Mahasarakham University

BOARD OF DIRECTORS AND EXECUTIVES


Training Program • Director Certification Program (DCP), Thai Institute of Directors Association

Experience Over Past 5 Years 2010 - Present Chief Executive Officer and President, KASIKORNBANK PUBLIC COMPANY LIMITED 2010 - Present Member of the Risk Management Committee, KASIKORNBANK PUBLIC COMPANY LIMITED 2004 - 2010 Chief Executive Officer, KASIKORNBANK PUBLIC COMPANY LIMITED 2003 - 2010 Chairman of the Risk Management Committee, KASIKORNBANK PUBLIC COMPANY LIMITED 1999 - 2007 Chairman, KASIKORN RESEARCH CENTER COMPANY LIMITED

Directorship in Other Companies 2010 - Present Vice Chairman, Muangthai Group Holding Company Limited 2009 - Present Director, PUKHA HOLDINGS COMPANY LIMITED 2009 - Present Director, PUKHA REALTY COMPANY LIMITED 2009 - Present Director, PUKHA GO COMPANY LIMITED 2009 - Present Director, PUKHA NANFA HOTEL COMPANY LIMITED 1997 - Present Director, Santikaset Company Limited

Family Relationship • Nephew of Mr. Banyong Lamsam and Ms. Sujitpan Lamsam • Cousin of Mr. Krisada Lamsam

4. Mr. Sukri Kaocharern Director Advisory Director to the Management Committee Chairman of the Risk Management Committee Member of the Corporate Governance Committee (Authorized Signature) Age 75

Education • Master’s Degree (Accounting), Southern Illinois University, U.S.A. • Bachelor’s Degree (Accounting), Thammasat University • Honorary Doctorate Degree in Accounting, Thammasat University Training Program • Director Certification Program (DCP), Thai Institute of Directors Association • Director Accreditation Program (DAP), Thai Institute of Directors Association • Audit Committee Program, Thai Institute of Directors Association • Certificate in Senior Executive Program, Capital Market Academy

Experience Over Past 5 Years 1981 - Present Director, KASIKORNBANK PUBLIC COMPANY LIMITED 2000 - Present Advisory Director to the Management Committee, KASIKORNBANK PUBLIC COMPANY LIMITED 2010 - Present Chairman of the Risk Management Committee, KASIKORNBANK PUBLIC COMPANY LIMITED 2002 - Present Member of the Corporate Governance Committee, KASIKORNBANK PUBLIC COMPANY LIMITED 2004 - 2010 Chairman, Indorama Polymers Public Company Limited 2003 - 2007 Commission Member Qualified and Experienced in Commerce, Agricultural Futures Trading Commission 2000 - 2006 Committee Member, Performance Agreement Committee, State Enterprise Policy Office

Directorship in Other Companies 2007 - Present Vice Chairman and Chairman of the Audit Committee, Jutha Maritime Public Company Limited 2002 - Present Director, Petform (Thailand) Company Limited 2002 - Present Director, Yip In Tsoi & Jacks Company Limited 1979 - Present Chairman, Thai Castor Oil Industries Company Limited

Family Relationship None

5. Mr. Somchai Bulsook Independent Director Chairman of the Human Resources and Remuneration Committee Member of the Audit Committee Age 69

Education • Bachelor’s Degree (Business Administration), Menlo School of Business, U.S.A. Training Program • Director Certification Program (DCP), Thai Institute of Directors Association

Experience Over Past 5 Years 1993 - Present Director, KASIKORNBANK PUBLIC COMPANY LIMITED Jan. 2011 - Present Chairman of the Human Resources and Remuneration Committee, KASIKORNBANK PUBLIC COMPANY LIMITED 1998 - Present Member of the Audit Committee, KASIKORNBANK PUBLIC COMPANY LIMITED

289


2009 - Jan. 2011 Member of the Human Resources and Remuneration Committee, KASIKORNBANK PUBLIC COMPANY LIMITED 1996 - Oct. 2011 President and Chief Executive Officer, Serm Suk Public Company Limited 1992 - Mar. 2011 Director, Bangkok Glass Industry Company Limited

Directorship in Other Companies Oct. 2011 - Present Chairman of Executive Committee and Chief Executive Officer, Serm Suk Public Company Limited 2009 - Present Independent Director, Royal Orchid Hotel (Thailand) Public Company Limited 2006 - Present Chairman, Serm Suk Holdings Company Limited 2003 - Present Director, Sheraton Royal Orchid Company Limited 2003 - Present Director, Thai Royal Orchid Real Estate Company Limited 2002 - Present Chairman, Petform (Thailand) Company Limited 1997 - Present Chairman, Serm Suk Beverage Company Limited 1995 - Present Director, Ngow Hock Company Limited 1995 - Present Director, Ngow Hock Agency Company Limited 1995 - Present Director, Panjamitr Holding Company Limited


6. Ms. Sujitpan Lamsam Director Member of the Risk Management Committee (Authorized Signature) Age 53

Education • Master’s Degree (Honors) (Economics), Cambridge University, U.K. • Master’s Degree (Management), Massachusetts Institute of Technology, U.S.A. • Bachelor’s Degree (Honors) (Economics), Cambridge University, U.K. Training Program • Director Accreditation Program (DAP), Thai Institute of Directors Association

Experience Over Past 5 Years 1999 - Present Director, KASIKORNBANK PUBLIC COMPANY LIMITED 2004 - Present Member of the Risk Management Committee, KASIKORNBANK PUBLIC COMPANY LIMITED 2004 - 2008 Director, Phatra Insurance Public Company Limited 2000 - 2009 Chairman, Phethai Asset Management Company Limited 2000 - 2008 Director, Muang Thai Life Assurance Company Limited

Directorship in Other Companies 2009 - Present Director, Muangthai Group Holding Company Limited 2009 - Present Director, MUANGTHAI HOLDING COMPANY LIMITED 2008 - Present Director and Chairman of the Executive Committee, Muang Thai Insurance Public Company Limited 2008 - Present Director and Chairman of the Executive Committee, Muang Thai Life Assurance Company Limited

Family Relationship • Cousin of Mr. Banyong Lamsam • Aunt of Mr. Banthoon Lamsam and Mr. Krisada Lamsam

7. Professor Khunying Suchada Kiranandana Independent Director Chairman of the Audit Committee Age 66

Education • Ph.D. (Statistics), Harvard University, U.S.A. • Master’s Degree (Statistics), Harvard University, U.S.A. • Bachelor’s Degree (First Class Honors) (Commerce), Chulalongkorn University • Honorary Doctorate Degree in Business Administration, Chulalongkorn University Training Program • Director Certification Program (DCP), Thai Institute of Directors Association

Experience Over Past 5 Years 2000 - Present Director, KASIKORNBANK PUBLIC COMPANY LIMITED Sep. 2011 - Present Chairman of the Audit Committee, KASIKORNBANK PUBLIC COMPANY LIMITED 2008 - Dec. 2011 Member of the Audit Committee, Serm Suk Public Company Limited 2006 - 2008 Member of the National Legislative Assembly 2004 - 2008 President, Chulalongkorn University 2000 - Sep. 2011 Member of the Audit Committee, KASIKORNBANK PUBLIC COMPANY LIMITED 1997 - 2011 President, Thai Statistical Association

Directorship in Other Companies Dec. 2011 - Present Chairman of the Audit Committee, Serm Suk Public Company Limited 2008 - Present Director, Serm Suk Public Company Limited



8. Professor Dr. Yongyuth Yuthavong Independent Director Member of the Corporate Governance Committee Member of the Audit Committee Age 67

Education • D.Phil. (Organic Chemistry), University of Oxford, U.K. • Bachelor’s Degree (First Class Honors) (Chemistry), University of London, U.K. • Honorary Doctorate Degree in Science (Biochemistry), Prince of Songkla University • Honorary Doctorate Degree in Science (Biochemistry), Mahidol University • Honorary Doctorate Degree in Science (Chemistry), Suranaree University of Technology • Honorary Doctorate Degree in Science (Biochemistry), Thammasat University

Training Program • Director Accreditation Program (DAP), Thai Institute of Directors Association • Financial Institutions Governance Program, Thai Institute of Directors Association

Experience Over Past 5 Years 2008 - Present Director, KASIKORNBANK PUBLIC COMPANY LIMITED 2008 - Present Member of the Corporate Governance Committee, KASIKORNBANK PUBLIC COMPANY LIMITED Sep. 2011 - Present Member of the Audit Committee KASIKORNBANK PUBLIC COMPANY LIMITED 2008 - Present Senior Researcher, National Science and Technology Development Agency 1984 - Present Member of the Council of Trustee and the Board of Directors, Thailand Development Research Institute 2006 - 2008 Minister, Ministry of Science and Technology Directorship in Other Companies None


9. Dr. Abhijai Chandrasen Director and Legal Adviser Advisory Director to the Management Committee Member of the Human Resources and Remuneration Committee (Authorized Signature) Age 63

Education • Docteur en Droit (Honors), Paris University (Sorbonne), France • Barrister-at-Law, Thailand • Bachelor’s Degree (Honors) (Law), Chulalongkorn University

Training Program • Director Accreditation Program (DAP), Thai Institute of Directors Association • Finance for Non-Finance Director, Thai Institute of Directors Association • Role of Compensation Committee, Thai Institute of Directors Association • Audit Committee Program, Thai Institute of Directors Association • Developing Corporate Governance Policy, Thai Institute of Directors Association

Experience Over Past 5 Years 2000 - Present Director and Legal Adviser, KASIKORNBANK PUBLIC COMPANY LIMITED 2000 - Present Advisory Director to the Management Committee, KASIKORNBANK PUBLIC COMPANY LIMITED Jan. 2011 - Present Member of the Human Resources and Remuneration Committee KASIKORNBANK PUBLIC COMPANY LIMITED 2006 - Present Eminent Director, The National Commission on the Elderly, Office of the Prime Minister 1994 - Present Legal Adviser, The Chaipattana Foundation 2000 - 2008 Chairman, Punyariddhi Law Office Company Limited

Directorship in Other Companies 2005 - Present Director, Siam Motors Company Limited 2003 - Present Audit Committee Member and Chairman of the Human Resources and Remuneration Committee, Sammakorn Public Company Limited 1994 - Present Director, Sammakorn Public Company Limited Family Relationship None

10. Ms. Elizabeth Sam Independent Director Member of the Audit Committee Age 73

Education • Bachelor’s Degree (Honors) (Economics), University of Singapore, Singapore


291


Experience Over Past 5 Years 2001 - Present Director, KASIKORNBANK PUBLIC COMPANY LIMITED 2001 - Present Member of the Audit Committee, KASIKORNBANK PUBLIC COMPANY LIMITED

Directorship in Other Companies 2008 - Present Independent Director, Straits Trading Company Limited 2004 - Present Independent Director, Banyan Tree Holdings Limited 2000 - Present Independent Director, Boardroom Limited


11. Professor Dr. Pairash Thajchayapong Independent Director Member of the Human Resources and Remuneration Committee Age 67

Education • Ph.D. (Computer and Electronics), Cambridge University, U.K. • Bachelor’s Degree (First Class Honors) (Electrical and Electronics Engineering), Imperial College of Science and Technology, University of London, U.K. • Honorary Doctorate Degree in Engineering, Tokai University, Japan • Honorary Doctorate Degree in Information Technology, King Mongkut’s Institute of Technology Ladkrabang

Training Program • Director Certification Program (DCP), Thai Institute of Directors Association • Director Accreditation Program (DAP), Thai Institute of Directors Association

Experience Over Past 5 Years 2007 - Present Director, KASIKORNBANK PUBLIC COMPANY LIMITED 2008 - Present Member of the Human Resources and Remuneration Committee, KASIKORNBANK PUBLIC COMPANY LIMITED 2005 - Present Specialist and Senior Advisor, National Science and Technology Development Agency 2004 - Present Chairman, National Nanotechnology Center 2000 - Present Chairman, National Electronics and Computer Technology Center 1995 - Present Assistant Director, IT Project Under the Initiative of H.R.H. Princess Maha Chakri Sirindhorn 1989 - Present Assistant Director for Engineering and Computer, Chulabhorn Research Institute

Directorship in Other Companies 2006 - Present Director, Kluen Panya Company Limited 1995 - Present Chairman, Internet Thailand Public Company Limited Family Relationship None

12. Mr. Hiroshi Ota Independent Director Member of the Corporate Governance Committee Age 75

Education • Master’s Degree (International Relations), The Fletcher School of Law and Diplomacy, Tufts University, U.S.A. • Bachelor’s Degree (Liberal Arts - American Studies), The University of Tokyo, Japan Training Program • Director Accreditation Program (DAP), Thai Institute of Directors Association

Experience Over Past 5 Years 2009 - Present Director, KASIKORNBANK PUBLIC COMPANY LIMITED 2009 - Present Member of the Corporate Governance Committee, KASIKORNBANK PUBLIC COMPANY LIMITED 2010 - Present Auditor, Riei Company Limited 2002 - Present Vice President, The Okazaki Institute, Japan 2007 - 2010 Advisor, Riei Company Limited 2004 - 2009 Advisor, The Federation of Electric Power Companies of Japan 2000 - 2007 Advisor, Mitsubishi Heavy Industries Limited

Directorship in Other Companies None Family Relationship None

13. Ms. Kobkarn Wattanavrangkul Independent Director Member of the Human Resources and Remuneration Committee Age 51 Education • Bachelor’s Degree (Architecture), Rhode Island School of Design, U.S.A.

Training Program • Director Certification Program (DCP), Thai Institute of Directors Association • The Role of the Chairman Program, Thai Institute of Directors Association

Experience Over Past 5 Years Jan. 2011 - Present Director, KASIKORNBANK PUBLIC COMPANY LIMITED


Jan. 2011 - Present Member of the Human Resources and Remuneration Committee, KASIKORNBANK PUBLIC COMPANY LIMITED

Directorship in Other Companies 2010 - Present Director, Control Component Company Limited 2010 - Present Director, Vichaiyut Company Limited 2008 - Present Director, B.Grimm BIP Power Limited 2004 - Present Chairperson, Toshiba Thailand Company Limited 2004 - Present Chairperson, Thai Toshiba Electric Industries Company Limited 2004 - Present Chairperson, Thai Toshiba Lighting Company Limited 2004 - Present Chairperson, Thai Toshiba Fluorescent Lamp Company Limited 2004 - Present Chairperson, Bangkadi Industrial Park Company Limited 2004 - Present Executive Director, Mitkorn Development Company Limited 2001 - Present Director, Toshiba Lighting Components (Thailand) Company Limited 2001 - Present Director, Superlite N.K.S. Holding Company Limited 1999 - Present Director, Thai Electric Industries Company Limited 1991 - Present Director, Nikornkij and Sons Company Limited 1990 - Present Director, B.I.P.-1990 Company Limited 1989 - Present Director, T.T.H. Company Limited 14. Mr. Somkiat Sirichatchai Senior Executive Vice President Resource Domain Coordinator Member of the Risk Management Committee Age 47

Education • Master’s Degree (Business Administration), University of Pennsylvania (Wharton), U.S.A.

Training Program • Director Accreditation Program (DAP), Thai Institute of Directors Association • Role of Compensation Committee, Thai Institute of Directors Association

Experience Over Past 5 Years 2010 - Present Senior Executive Vice President KASIKORNBANK PUBLIC COMPANY LIMITED

2010 - Present Member of the Risk Management Committee KASIKORNBANK PUBLIC COMPANY LIMITED 2009 - 2010 Chairman, PROGRESS SOFTWARE COMPANY LIMITED 2009 - 2010 Chairman, PROGRESS SERVICE COMPANY LIMITED 2008 - 2010 Chairman, PROGRESS PLUS COMPANY LIMITED 2006 - 2010 Chairman, PROGRESS FACILITIES MANAGEMENT COMPANY LIMITED 2005 - 2010 Chairman, PROGRESS MANAGEMENT COMPANY LIMITED 2005 - 2010 Chairman, PROGRESS LAND AND BUILDINGS COMPANY LIMITED 2005 - 2010 Chairman, PROGRESS STORAGE COMPANY LIMITED 2005 - 2010 Chairman, PROGRESS H R COMPANY LIMITED 2005 - 2010 Chairman, PROGRESS APPRAISAL COMPANY LIMITED 2005 - 2010 Chairman, PROGRESS SERVICE SUPPORT COMPANY LIMITED 2005 - 2010 Chairman, PROGRESS COLLECTION COMPANY LIMITED 2005 - 2010 Chairman, PROGRESS TRAINING COMPANY LIMITED 2005 - 2010 Secretary to the Human Resources and Remuneration Committee, KASIKORNBANK PUBLIC COMPANY LIMITED 2004 - 2010 Executive Vice President, KASIKORNBANK PUBLIC COMPANY LIMITED Directorship in Other Companies • Chairman, KASIKORN ASSET MANAGEMENT COMPANY LIMITED • Director, Muangthai Group Holding Company Limited • Director, Muang Thai Life Assurance Company Limited


15. Mr. Predee Daochai Senior Executive Vice President Risk Domain Coordinator Member of the Risk Management Committee Age 53

293


Education • Master’s Degree (Comparative Law), University of Illinois at Urbana, U.S.A. • Barrister-at-Law, Thailand


Experience Over Past 5 Years 2010 - Present Senior Executive Vice President, KASIKORNBANK PUBLIC COMPANY LIMITED 2003 - Present Member of the Risk Management Committee, KASIKORNBANK PUBLIC COMPANY LIMITED 2008 - 2010 Director, Phethai Asset Management Company Limited 2008 Director, KASIKORN LEASING COMPANY LIMITED 2004 - 2010 Executive Vice President, KASIKORNBANK PUBLIC COMPANY LIMITED

Directorship in Other Companies • Director, Muangthai Group Holding Company Limited • Director, Muang Thai Life Assurance Company Limited


16. Mr. Teeranun Srihong Senior Executive Vice President Infrastructure Domain Coordinator Member of the Risk Management Committee Age 46

Education • Master’s Degree (Business Administration), University of Michigan - Ann Arbor, U.S.A.


Experience Over Past 5 Years 2010 - Present Senior Executive Vice President KASIKORNBANK PUBLIC COMPANY LIMITED 2003 - Present Member of the Risk Management Committee KASIKORNBANK PUBLIC COMPANY LIMITED 2009 - Feb. 2011 Director, Thai Digital ID Company Limited 2006 - 2010 Executive Vice President, KASIKORNBANK PUBLIC COMPANY LIMITED 2006 - 2010 Director, PROGRESS SOFTWARE COMPANY LIMITED 2005 - Jan. 2011 Director, Processing Center Company Limited

Directorship in Other Companies NoneFamily Relationship None

17. Mr. Krisada Lamsam Senior Executive Vice President Business Domain Coordinator Member of the Risk Management Committee Age 47

Education • Master’s Degree (Education Foundation), Oregon State University, U.S.A. Training Program • Director Certification Program (DCP), Thai Institute of Directors Association

Experience Over Past 5 Years 2010 - Present Senior Executive Vice President, KASIKORNBANK PUBLIC COMPANY LIMITED 2004 - Present Member of the Risk Management Committee, KASIKORNBANK PUBLIC COMPANY LIMITED 2009 - Aug. 2011 Executive Chairman, KASIKORN LEASING COMPANY LIMITED 2006 - 2010 Executive Vice President, KASIKORNBANK PUBLIC COMPANY LIMITED Directorship in Other Companies • Chairman, KASIKORN LEASING COMPANY LIMITED • Vice Chairman, Muang Thai Life Assurance Company Limited • Director, Thaveepramoth Company Limited • Director, Pruetthada Company Limited Family Relationship • Nephew of Mr. Banyong Lamsam and Ms. Sujitpan Lamsam • Cousin of Mr. Banthoon Lamsam

18. Mr. Pakorn Partanapat Executive Vice President Retail Business Division Head* Age 46

Education • Master’s Degree (Business Administration), Columbia Business School, U.S.A.

Experience Over Past 5 Years 2008 - Present Executive Vice President, KASIKORNBANK PUBLIC COMPANY LIMITED 2008 - Dec. 2011 Director, Muang Thai Insurance Public Company Limited 2008 - 2010 Member of the Risk Management Committee, KASIKORNBANK PUBLIC COMPANY LIMITED 2006 - 2008 First Senior Vice President, KASIKORNBANK PUBLIC COMPANY LIMITED


Directorship in Other Companies • Director, KASIKORN FACTORY AND EQUIPMENT COMPANY LIMITED • Director, Thanyathanathavee Company Limited • Director, Thanyanithiwattana Company Limited • Director, KHAO KLA Venture Capital Management Company Limited • Director, Muangthai Group Holding Company Limited • Director, Muang Thai Life Assurance Company Limited

Family Relationship None* Effective on January 1, 2012

19. Mr. Thiti Tantikulanan Capital Markets Business Division Head* Member of the Risk Management Committee Age 42

Education • Bachelor’s Degree (Business Administration), University of Washington, U.S.A.

Experience Over Past 5 Years 2008 - Present Capital Markets Business Division Head, KASIKORNBANK PUBLIC COMPANY LIMITED 2008 - Present Member of the Risk Management Committee, KASIKORNBANK PUBLIC COMPANY LIMITED 2006 - 2010 Director, Thai Bond Market Association 2006 - 2008 Capital Markets Business Head, KASIKORNBANK PUBLIC COMPANY LIMITED 2003 - 2006 Head of Trading, HSBC (Thailand)

Directorship in Other Companies NoneFamily Relationship None* This position is equivalent to Executive Vice President

20. Mr. Surasak Dudsdeemaytha Executive Vice President Human Resource Division Head Age 46

Education • Master’s Degree (Business Administration), Sasin Graduate Institute of Business Administration


Experience Over Past 5 Years 2010 - Present Executive Vice President, KASIKORNBANK PUBLIC COMPANY LIMITED 2010 - Present Secretary to the Human Resources and Remuneration Committee, KASIKORNBANK PUBLIC COMPANY LIMITED

2010 Secretary to the Audit Committee, KASIKORNBANK PUBLIC COMPANY LIMITED 2003 - 2009 First Senior Vice President, KASIKORNBANK PUBLIC COMPANY LIMITED

Directorship in Other Companies • Director, KASIKORN ASSET MANAGEMENT COMPANY LIMITED • Chairman, PROGRESS SOFTWARE COMPANY LIMITED • Chairman, PROGRESS SERVICE COMPANY LIMITED • Chairman, PROGRESS PLUS COMPANY LIMITED • Chairman, PROGRESS FACILITIES MANAGEMENT COMPANY LIMITED • Chairman, PROGRESS MANAGEMENT COMPANY LIMITED • Chairman, PROGRESS LAND AND BUILDINGS COMPANY LIMITED • Chairman, PROGRESS STORAGE COMPANY LIMITED • Chairman, PROGRESS H R COMPANY LIMITED • Chairman, PROGRESS APPRAISAL COMPANY LIMITED • Chairman, PROGRESS SERVICE SUPPORT COMPANY LIMITED • Chairman, PROGRESS COLLECTION COMPANY LIMITED • Chairman, PROGRESS TRAINING COMPANY LIMITED • Chairman, PROGRESS MULTI INSURANCE BROKER COMPANY LIMITED


21. Mr. Prasopsuk Damrongchietanon Executive Vice President Corporate Strategy Management Division Head Age 49

Education • Master’s Degree (Business Administration - Finance and Marketing), University of Rochester, U.S.A.

Training Program • Director Certification Program (DCP), Thai Institute of Directors Association Experience Over Past 5 Years 2010 - Present Executive Vice President, KASIKORNBANK PUBLIC COMPANY LIMITED 2005 - 2008 Director, KASIKORN LEASING COMPANY LIMITED 2005 - 2006 Director, KASIKORN FACTORING COMPANY LIMITED 2003 - 2009 First Senior Vice President, KASIKORNBANK PUBLIC COMPANY LIMITED

Directorship in Other Companies • Director, KASIKORN RESEARCH CENTER COMPANY LIMITED • Director, KASIKORN SECURITIES PUBLIC COMPANY LIMITED • Director, Thanyathanathavee Company Limited • Director, Thanyathamrongkij Company Limited

295


• Director, Thanyanithiwattana Company Limited • Director, Muangthai Group Holding Company Limited


22. Ms. Kattiya Indaravijaya Executive Vice President Finance and Control Division Head and Chief Financial Officer Member of the Risk Management Committee Age 46 Education • Master’s Degree (Business Administration - Finance and Investment), The University of Texas at Austin, U.S.A. Experience Over Past 5 Years 2010 - Present Executive Vice President, KASIKORNBANK PUBLIC COMPANY LIMITED 2010 - Present Member of the Risk Management Committee, KASIKORNBANK PUBLIC COMPANY LIMITED 2005 - 2009 First Senior Vice President, KASIKORNBANK PUBLIC COMPANY LIMITED

Directorship in Other Companies • Director, KASIKORN LEASING COMPANY LIMITED


23. Dr. Adit Laixuthai Executive Vice President Corporate Secretariat Division Head Age 47

Education • Ph.D. (Public Health Sciences - Health Economics), University of Illinois, U.S.A.

Training Program • Director Certification Program (DCP - Diploma), Thai Institute of Directors Association

Experience Over Past 5 Years 2010 - Present Executive Vice President, KASIKORNBANK PUBLIC COMPANY LIMITED 2000 - Present Assistant Secretary to the Board of Directors, KASIKORNBANK PUBLIC COMPANY LIMITED 2008 - Present Secretary to the Corporate Governance Committee, KASIKORNBANK PUBLIC COMPANY LIMITED 1999 - Present Chief Investor Relations Officer, KASIKORNBANK PUBLIC COMPANY LIMITED 2006 - 2009 First Senior Vice President, KASIKORNBANK PUBLIC COMPANY LIMITED


24. Mr. Songpol Chevapanyaroj Executive Vice President Corporate and SME Products Division Head Member of the Risk Management Committee Age 39

Education • Master’s Degree (Business Administration - Finance), Case Western Reserve University, U.S.A. Experience Over Past 5 Years 2010 - Present Executive Vice President, KASIKORNBANK PUBLIC COMPANY LIMITED 2008 - Present Member of the Risk Management Committee, KASIKORNBANK PUBLIC COMPANY LIMITED 2009 - 2010 Director, KASIKORN LEASING COMPANY LIMITED 2008 - 2009 First Senior Vice President, KASIKORNBANK PUBLIC COMPANY LIMITED 2006 - 2007 Capital Markets Business Head, KASIKORNBANK PUBLIC COMPANY LIMITED

Directorship in Other Companies • Director, KASIKORN ASSET MANAGEMENT COMPANY LIMITED


25. Mr. Vasin Vanichvoranun Executive Vice President Corporate Business Division Head Age 45 Education • Master’s Degree (Business Administration - Financial and Marketing), Sasin Graduate Institute of Business Administration

Experience Over Past 5 Years 2010 - Present Executive Vice President, KASIKORNBANK PUBLIC COMPANY LIMITED 2008 - 2009 First Senior Vice President, KASIKORNBANK PUBLIC COMPANY LIMITED 2006 - 2007 Senior Vice President, Multi-Corporate Business Department, KASIKORNBANK PUBLIC COMPANY LIMITED

Directorship in Other Companies • Director, KASIKORN SECURITIES PUBLIC COMPANY LIMITED


26. Mr. Wirawat Panthawangkun Executive Vice President Enterprise Risk Management Division Head Member of the Risk Management Committee Age 39


Education • Master’s Degree (Business Administration - Financial Engineering), Sloan School of Management, Massachusetts Institute of Technology, U.S.A.


Experience Over Past 5 Years 2010 - Present Executive Vice President, KASIKORNBANK PUBLIC COMPANY LIMITED 2010 - Present Member of the Risk Management Committee, KASIKORNBANK PUBLIC COMPANY LIMITED 2008 - 2009 First Senior Vice President, KASIKORNBANK PUBLIC COMPANY LIMITED 2006 - 2007 Senior Vice President, Business Channel Management Department, KASIKORNBANK PUBLIC COMPANY LIMITED

Directorship in Other Companies • Director, KASIKORN SECURITIES PUBLIC COMPANY LIMITED • Director, Thanyathanathavee Company Limited • Director, Thanyathamrongkij Company Limited Family Relationship None

27. Mr. Krit Jitjang Executive Vice President Compliance and Audit Division Head Age 40

Education • Master’s Degree (Business Administration), Sloan School of Management, Massachusetts Institute of Technology, U.S.A.


Experience Over Past 5 Years 2010 - Present Executive Vice President, KASIKORNBANK PUBLIC COMPANY LIMITED 2010 - Present Secretary to the Audit Committee, KASIKORNBANK PUBLIC COMPANY LIMITED 2010 Director, KASIKORN SECURITIES PUBLIC COMPANY LIMITED 2009 - 2010 Director, Muangthai Group Holding Company Limited 2009 - 2010 Director, Muang Thai Life Assurance Company Limited

2008 - 2010 Member and Secretary to the Risk Management Committee, KASIKORNBANK PUBLIC COMPANY LIMITED 2008 - 2010 Member of the Risk Management Committee, KASIKORNBANK PUBLIC COMPANY LIMITED 2008 - 2009 First Senior Vice President, KASIKORNBANK PUBLIC COMPANY LIMITED 2006 - 2007 Senior Vice President, Internal Risk Management Department, KASIKORNBANK PUBLIC COMPANY LIMITED Directorship in Other Companies None


28. Mr. Somkid Jiranuntarat Executive Vice President Systems Division Head Age 51

Education • Master’s Degree (Management), Sasin Graduate Institute of Business Administration • Master’s Degree (Computer Science), Oregon State University, U.S.A. Training Program • Director Certification Program (DCP), Thai Institute of Directors Association

Experience Over Past 5 Years 2010 - Present Executive Vice President, KASIKORNBANK PUBLIC COMPANY LIMITED 2009 - 2010 First Senior Vice President, KASIKORNBANK PUBLIC COMPANY LIMITED 2002 - 2009 Executive Vice President, United Overseas Bank (Thai) Public Company Limited

Directorship in Other Companies • Director, PROGRESS SOFTWARE COMPANY LIMITED


29. Mr. Pipit Aneaknithi Executive Vice President China Business Division Head Age 44 Education • Master’s Degree (Business Administration), University of Brighton, U.K. • Master’s Degree (Business Administration), FH. Pforzheim, Germany

297


Experience Over Past 5 Years 2010 - Present Executive Vice President, KASIKORNBANK PUBLIC COMPANY LIMITED 2008 - 2010 Director, KASIKORN RESEARCH COMPANY LIMITED 2008 - 2009 First Senior Vice President, KASIKORNBANK PUBLIC COMPANY LIMITED 2006 - 2010 Director, KASIKORN SECURITIES PUBLIC COMPANY LIMITED 2006 - 2007 Senior Vice President, Consumer Segment Management Department, KASIKORNBANK PUBLIC COMPANY LIMITED


30. Mr. Patchara Samalapa Executive Vice President* SME Business Division Head Age 40 Education • Master’s Degree (Business Administration), Massachusetts Institute of Technology, U.S.A.

Experience Over Past 5 Years Jan. 2012 - Present Executive Vice President, KASIKORNBANK PUBLIC COMPANY LIMITED 2010 - Dec. 2011 Managing Director, KASIKORN ASSET MANAGEMENT COMPANY LIMITED 2009 - 2010 Executive Vice President, KASIKORN ASSET MANAGEMENT COMPANY LIMITED 1999 - 2009 Senior Principal, Merrill Lynch & Co., Inc., Australia & Thailand

Directorship in Other Companies • Director, KASIKORN ASSET MANAGEMENT COMPANY LIMITED

Family Relationship None * Effective on January 1, 2012

31. Mr. Ampol Polohakul Executive Vice President Age 46

Education • Master’s Degree (Business Administration), University of Michigan - Ann Arbor, U.S.A.

Experience Over Past 5 Years 2010 - Present Executive Vice President, KASIKORNBANK PUBLIC COMPANY LIMITED 2011 Director, KASIKORN LEASING COMPANY LIMITED 2009 - 2010 Director, National ITMX Company Limited 2008 - 2010 Director, KASIKORN ASSET MANAGEMENT COMPANY LIMITED 2008 - 2010 Member of the Risk Management Committee, KASIKORNBANK PUBLIC COMPANY LIMITED 2006 - Sep. 2011 Director, PROGRESS SERVICE SUPPORT COMPANY LIMITED 2001 - 2009 First Senior Vice President, KASIKORNBANK PUBLIC COMPANY LIMITED

Directorship in Other Companies • Executive Chairman, KASIKORN ASSET MANAGEMENT COMPANY LIMITED • Director, Sahakij Aluminium Company Limited


32. Dr. Pipatpong Poshyanonda Executive Vice President Age 43

Education • Ph.D. (Engineering Management), University of Missouri-Rolla, U.S.A.

Experience Over Past 5 Years 2010 - Present Executive Vice President, KASIKORNBANK PUBLIC COMPANY LIMITED 2005 - 2010 First Senior Vice President, KASIKORNBANK PUBLIC COMPANY LIMITED

Directorship in Other Companies • Director, PROGRESS SOFTWARE COMPANY LIMITED • Director, Thai Digital ID Company Limited Family Relationship None

33. Mr. Chatchai Payuhanaveechai Executive Vice President* Age 51

Education • Master’s Degree (Business Administration), Chulalongkorn University

Experience Over Past 5 Years Jan. 2012 - Present Executive Vice President, KASIKORNBANK PUBLIC COMPANY LIMITED 2008 - Dec. 2011 First Senior Vice President, KASIKORNBANK PUBLIC COMPANY LIMITED 2002 - 2007 Senior Vice President, Consumer Loans Department, KASIKORNBANK PUBLIC COMPANY LIMITED


Directorship in Other Companies • Director, KASIKORN LEASING COMPANY LIMITED

Family Relationship None* Effective on January 1, 2012

34. Mr. Chongrak Rattanapian Executive Vice President* Member of the Risk Management Committee Age 43

Education • Master’s Degree (Business Administration - Finance), William Paterson University of New Jersey, U.S.A.

Experience Over Past 5 Years Jan. 2012 - Present Executive Vice President, KASIKORNBANK PUBLIC COMPANY LIMITED 2008 - Present Member of the Risk Management Committee, KASIKORNBANK PUBLIC COMPANY LIMITED 2008 - Dec. 2011 First Senior Vice President, KASIKORNBANK PUBLIC COMPANY LIMITED 2006 - 2008 Senior Vice President, Central Treasury Department, KASIKORNBANK PUBLIC COMPANY LIMITED


* Effective on January 1, 2012

35. Ms. Sansana Sukhanunth First Senior Vice President Age 42

Education • Master’s Degree (Business Administration - Finance), University of Wisconsin - Madison, U.S.A.

Experience Over Past 5 Years 2010 - Present First Senior Vice President, KASIKORNBANK PUBLIC COMPANY LIMITED 2008 - 2009 Senior Vice President, Retail Portfolio Management Department, KASIKORNBANK PUBLIC COMPANY LIMITED 2006 - 2008 First Vice President, Retail Portfolio Management Department, KASIKORNBANK PUBLIC COMPANY LIMITED 2006 First Vice President, Credit Underwriting Department, KASIKORNBANK PUBLIC COMPANY LIMITED

Directorship in Other Companies • Director, KASIKORN RESEARCH COMPANY LIMITED Family Relationship None

36. Ms. Wasana Surakit Senior Vice President Financial Accounting Management Department Head Age 44

Education • Master’s Degree (Accounting), Thammasat University

Experience Over Past 5 Years 2008 - Present Senior Vice President, Financial Accounting Management Department, KASIKORNBANK PUBLIC COMPANY LIMITED 2008 - 2010 Director, KASIKORN FACTORY AND EQUIPMENT COMPANY LIMITED 2004 - 2007 First Vice President, Financial Accounting Management Department, KASIKORNBANK PUBLIC COMPANY LIMITED


37. Ms. Nisanat Ouvuthipong First Vice President Financial Planning Department Head Age 35

Education • Master’s Degree (Business Administration - Finance), University of Michigan, U.S.A.

Experience Over Past 5 Years 2008 - Present First Vice President, Financial Planning Department, KASIKORNBANK PUBLIC COMPANY LIMITED 2006 - 2008 Vice President, Financial Planning Department, KASIKORNBANK PUBLIC COMPANY LIMITED 2005 - 2006 Assistant Vice President, Financial Planning Department, KASIKORNBANK PUBLIC COMPANY LIMITED


299


As of December 31, 2011

DIRECTORSHIP OF DIRECTORS AND EXECUTIVES IN SUBSIDIARIES, ASSOCIATED, AND RELATED COMPANIES

Name

Position

KASIKORNBANKSubsidiaries Associated

Companies Related

Companies

1 Mr. Banyong Lamsam Chairman 2 Pol. Gen. Pow Sarasin Vice Chairman 3 Mr. Banthoon Lamsam Chief Executive Officer / / and President 4 Mr. Sukri Kaocharern Director 5 Mr. Somchai Bulsook Director 6 Ms. Sujitpan Lamsam Director / // // 7 Prof. Khunying Suchada Kiranandana Director 8 Prof. Dr. Yongyuth Yuthavong Director 9 Dr. Abhijai Chandrasen Director and Legal Adviser 10 Ms. Elizabeth Sam Director 11 Prof. Dr. Pairash Thajchayapong Director 12 Mr. Hiroshi Ota Director 13 Ms. Kobkarn Wattanavrangkul Director / / / 14 Mr. Somkiat Sirichatchai Senior Executive Vice President X / / 15 Mr. Predee Daochai Senior Executive Vice President / / 16 Mr. Teeranun Srihong Senior Executive Vice President 17 Mr. Krisada Lamsam Senior Executive Vice President X / / 18 Mr. Pakorn Partanapat Executive Vice President / / / / / / / 19 Mr. Thiti Tantikulanan Capital Markets Business Division Head 20 Mr. Surasak Dudsdeemaytha Executive Vice President / X X X X X X X X X X X X X 21 Mr. Prasopsuk Damrongchietanon Executive Vice President / / / / / / 22 Ms. Kattiya Indaravijaya Executive Vice President / 23 Dr. Adit Laixuthai Executive Vice President 24 Mr. Songpol Chevapanyaroj Executive Vice President / 25 Mr. Vasin Vanichvoranun Executive Vice President / 26 Mr. Ampol Polohakul Executive Vice President / / 27 Mr. Wirawat Panthawangkun Executive Vice President / / / 28 Mr. Krit Jitjang Executive Vice President 29 Mr. Somkid Jiranuntarat Executive Vice President / 30 Mr. Pipit Aneaknithi Executive Vice President 31 Dr. Pipatpong Poshyanonda Executive Vice President / / 32 Ms. Patcharin Vongsiridej First Senior Vice President 33 Mr. Tawit Thanachanan First Senior Vice President 34 Mr. Chartchai Sundharagiati First Senior Vice President / / / / / 35 Mr. Suwat Charoenvijitchai First Senior Vice President 36 Mr. Chatchai Payuhanaveechai First Senior Vice President / 37 Mr. Pongpichet Nananukool First Senior Vice President 38 Ms. Pannee Lertchanyakul First Senior Vice President / 39 Mr. Yuthchai Chusakpakdee First Senior Vice President / / / 40 Mr. Atipat Asawachinda First Senior Vice President / / / / / / 41 Mr. Chongrak Rattanapian First Senior Vice President 42 Mr. Silawat Santivisat First Senior Vice President /

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 1 2 3 1 2 3 4 5 6 7


Name

Position

KASIKORNBANKSubsidiaries Associated

Companies 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 1 2 3 1 2 3 4 5 6 7

Note: 1) Subsidiaries, Associated and Related Companies shall comply with the definitions of the Office of the Securities and Exchange Commission, which shall include directorship in other companies as specified by the Bank of Thailand.

2) X = Chairman : / = Director : // = Executive Director

3) List of Subsidiaries 1 KASIKORN ASSET MANAGEMENT CO., LTD. 10 PROGRESS APPRAISAL CO., LTD. 19 PROGRESS TRAINING CO., LTD. 2 KASIKORN RESEARCH CENTER CO., LTD. 11 PROGRESS MANAGEMENT CO., LTD. 20 PROGRESS MULTI INSURANCE BROKER CO., LTD. 3 KASIKORN SECURITIES PCL 12 PROGRESS FACILITIES MANAGEMENT CO., LTD. 21 Thanyathanathavee Co., Ltd. 4 KASIKORN LEASING CO., LTD. 13 PROGRESS SERVICE CO., LTD. 22 Thanyathamrongkij Co., Ltd. 5 KASIKORN FACTORY AND EQUIPMENT CO., LTD. 14 PROGRESS LAND AND BUILDINGS CO., LTD. 23 Thanyanithiwattana Co., Ltd. 6 Phethai Asset Management Co., Ltd. 15 PROGRESS STORAGE CO., LTD. 24 KHAO KLA Venture Capital Management Co., Ltd. 7 K-SME Venture Capital Co., Ltd. 16 PROGRESS H R CO., LTD. 25 Muangthai Group Holding Co., Ltd. 8 PROGRESS SOFTWARE CO., LTD. 17 PROGRESS SERVICE SUPPORT CO., LTD. 26 Muang Thai Life Assurance Co., Ltd. 9 PROGRESS PLUS CO., LTD. 18 PROGRESS COLLECTION CO., LTD.

4) List of Associated Companies 1 Processing Center Co., Ltd. 3 Thai Digital ID Co., Ltd. 2 Muang Thai Insurance PCL

5) List of Related Companies 1 Phukha Holdings Co., Ltd. 5 Thaveepramoth Co., Ltd. 2 Superlite N.K.S. Holding Co., Ltd. 6 National ITMX Co., Ltd. 3 Nikornkij and Sons Co., Ltd. 7 Tri Danai Co., Ltd. 4 B.I.P.-1990 Co., Ltd.

6) Independent directors do not hold any directorship in Subsidiaries and Associated Companies.

43 Mr. Suradech Kietthanakorn Investment Banking / Business Head 44 Ms. Kwannet Rattanaprug First Senior Vice President 45 Mr. Sammit Sakulwira First Senior Vice President / 46 Ms. Siranee Phoophat First Senior Vice President 47 Mr. Suwat Techawatanawana First Senior Vice President 48 Mr. Porvarate Chetphongphan First Senior Vice President / 49 Ms. Sansana Sukhanunth First Senior Vice President / 50 Mr. Thawee Teerasoontornwong First Senior Vice President / / 51 Mr. Boonchan Kulvatunyou First Senior Vice President 52 Mr. Maytee Phanachet Capital Markets Product Management Head 53 Mr. Art Wichiencharoen First Senior Vice President / / 54 Ms. Sukonrat Bhurivatana First Senior Vice President / / 55 Ms. Sarunya Leelarasamee First Senior Vice President 56 Mr. Photjanart Sangpruaksa First Senior Vice President / 57 Ms. Sopa Noonate First Senior Vice President / 58 Mr. Vallop Vongjitvuttikrai First Senior Vice President 59 Ms. Wasana Surakit Department Head, Financial Accounting Management Department 60 Ms. Nisanat Ouvuthipong Department Head, Financial Planning Department

301


Remarks: 1) The common shares held include those of spouse and minor children. 2) The number of shares held by Mr. Banthoon Lamsam dropped, after excluding shares held by his children reaching legal age.

Percentage of Shares Held

(%)

Increase/(Decrease) in KBank Shares Held in 2011

KBank Shares Held as of

31 December 2010

KBank Shares Held as of

31 December 2010

PositionNameNo.

1 Mr. Banyong Lamsam Chairman 3,364,420 3,364,420 0 0.141

2 Pol. Gen. Pow Sarasin Vice Chairman 344,388 374,388 30,000 0.016

3 Mr. Banthoon Lamsam Chief Executive Officer 4,580,000 1,580,000 (3,000,000) 0.066

& President

4 Mr. Sukri Kaocharern Director 9,200 9,200 0 0.000

5 Mr. Somchai Bulsook Director 291,960 291,960 0 0.012

6 Ms. Sujitpan Lamsam Director 100,000 100,000 0 0.004

7 Prof. Khunying Suchada Kiranandana Director 1,000 1,000 0 0.000

8 Professor Dr.Yongyuth Yuthavong Director - - - -

9 Dr. Abhijai Chandrasen Director and Legal Adviser 10,000 10,000 0 0.000

10 Ms. Elizabeth Sam Director 24,000 24,000 0 0.001

11 Professor Dr. Pairash Thajchayapong Director - - - -

12 Mr. Hiroshi Ota Director - - - -

13 Ms. Kobkarn Wattanavrangkul Director 2,100 2,100 0 0.000

14 Mr. Somkiat Sirichatchai Senior Executive Vice President - - - -

15 Mr. Predee Daochai Senior Executive Vice President 110 110 0 0.000

16 Mr. Teeranun Srihong Senior Executive Vice President 24,600 24,600 0 0.001

17 Mr. Krisada Lamsam Senior Executive Vice President 8,880 8,880 0 0.000

18 Ms. Kattiya Indaravijaya Executive Vice President 40 40 0 0.000

19 Ms. Sansana Sukhanunth First Senior Vice President - - - -

20 Ms. Wasana Surakit Department Head, 80 80 0 0.000

Financial Accounting

Management Department

21 Ms. Nisanat Ouvuthipong Department Head, 92 92 0 0.000

Financial Planning Department


CHANGES IN KASIKORNBANK SHARES HELD BY DIRECTORS AND EXECUTIVES IN 2011


Chief Executive Officer and President Mr. Banthoon Lamsam Senior Executive Vice President Mr. Somkiat Sirichatchai* Mr. Predee Daochai* Mr. Teeranun Srihong* Mr. Krisada Lamsam* Executive Vice President Mr. Pakorn Partanapat Mr. Thiti Tantikulanan Mr. Surasak Dudsdeemaytha Mr. Prasopsuk Damrongchietanon Ms. Kattiya Indaravijaya** Dr. Adit Laixuthai Mr. Songpol Chevapanyaroj Mr. Vasin Vanichvoranun Mr. Wirawat Panthawangkun Mr. Krit Jitjang Mr. Somkid Jiranuntarat Mr. Pipit Aneaknithi Mr. Patchara Samalapa Mr. Ampol Polohakul Dr. Pipatpong Poshyanonda Mr. Chatchai Payuhanaveechai Mr. Chongrak RattanapianFirst Senior Vice President Ms. Patcharin Vongsiridej Mr. Tawit Thanachanan Mr. Chartchai Sundharagiati Mr. Suwat Charoenvijitchai Mr. Pongpichet Nananukool Ms. Pannee Lertchanyakul Mr. Yuthchai Chusakpakdee Mr. Atipat Asawachinda Mr. Silawat Santivisat Mr. Suradech Kietthanakorn Ms. Kwannet Rattanaprug Mr. Sammit Sakulwira Ms. Siranee Phoophat

Mr. Suwat Techawatanawana Mr. Porvarate Chetphongphan Ms. Sansana Sukhanunth Mr. Thawee Teerasoontornwong Mr. Boonchan Kulvatunyou Mr. Maytee Phanachet Mr. Art Wichiencharoen Ms. Sukonrat Bhurivatana Ms. Sarunya Leelarasamee Mr. Photjanart Sangpruaksa Ms. Sopa Noonate Mr. Vallop Vongjitvuttikrai Mr. Pattanapong Tansomboon Mr. Pipavat Bhadranavik Mr. Nopadej Karnasuta Mr. Vichai Tangjettanaporn Corporate Secretariat Division Office of Corporate Secretary Senior Vice President Ms. Marisa Watthaphanich*** Ms. Prayoonsri Katanyutanon***First Vice President Ms. Nuchsran Ratanachuchote Ms. Pranee Visitkitchakarn Mr. Surapong Bumroongsook Corporate Communications and Relations Department Senior Vice President Ms. Chitravinee Vannakorn***First Vice President Mr. Rungsee Buranaprapapong Corporate Strategy Management Division Corporate Strategy Department Senior Vice President Ms. Porawan Rungsang

First Vice President Mr. Anurak Tantipipattana*** K-Transformation Project Senior Vice President Ms. Pranee Tirasest Ms. Sawakon Makasawat Ms. Varaluck Aphikulvanich Mr. Wichai JermhansaFirst Vice President Ms. Charassri Charoenpol Mr. Sorrasak Pheongrattana Ms. Supin Makboonprasith Compliance and Audit Division Compliance Department First Vice President Mr. Weeravej Sirichatchai*** Internal Audit Department First Vice President Mr. Krisana Tesprasit Mr. Passakorn Onpanich-aree*** Ms. Peerapat Wongcharoenwatana Ms. Pimpavee Sirivallop Ms. Phoranee Rhuwadhana Mr. Siripong Nandhasri Risk Asset Review Department First Vice President Mr. Kittichat Darnvachirakul*** Ms. Visinee Samakasevee

Effective on March 1, 2012

* Domain Coordinator ** Chief Financial Officer *** Department Head

MANAGEMENT TEAM

303


Corporate Business Division Corporate Segment Management Department First Vice President Ms. Chutima Mokkhasmit***

Multi-Corporate Business Department Senior Vice President Ms. Chanoksuda Chitrattana Mr. Dithichai Limpodom Mr. Surat LeelataviwatFirst Vice President Ms. Kasemsri Charoensiddhi Mr. Panya Kongkapaisal Ms. Patcharee Uthairatanakit Mr. Patinya Honsawek Mr. Vongpat Bhuncharoen Large Corporate Business Department Senior Vice President Ms. Sarunya Bunyaratavej Mr. Surin SeubvongpatayaFirst Vice President Mr. Chanathat Santiboon Ms. Jiraporn Luengtrirat Ms. Juthatip Tasma Mr. Kant Nilubol Mr. Noppadol Khuwattanasil Mr. Noppawit Thothoetwilai Ms. Patcharee Chamnong Mr. Prasong Hanpiyavatanasakul Mr. Worravit Pongchumrus

Corporate and SME Products Division Corporate Portfolio Management Department First Vice President Ms. Tamonwan Kulsiriruangyos***

Corporate Credit Product Management Department First Vice President Mr. Ittiporn Intravisit Ms. Narasiri Arthachinda Mr. Niasinn Lamsam*** Mr. Nopporn Nuchniyom Mr. Visuth Suvimolpan

Securities Services Department First Vice President Mr. Decha Ngamthanaphaisarn*** Global Business Development Department Corporate Channel Management Department First Vice President Ms. Yukol Rompo***

Cash Management Department Senior Vice President Ms. Hataiporn Chiemprasert***First Vice President Ms. Anchalee Charasyosvuthichai

International Trade Product and Business Process Development Department Senior Vice President Mr. Kittipan Jamprawit***

Corporate Business Sales and Services Department First Vice President Mr. Peerapol Karjornkiatsakul***

International Trade and Factoring Processing Department Senior Vice President Ms. Sriyupa Mahaleelakul***First Vice President

Dr. Patcharaporn Chinavicharana***

SME Business Division Medium SME Segment Management Department Senior Vice President Mr. Nathapol Sukhum***First Vice President Mr. Chaiyot Tunpisut

Small SME and Micro Segment Management Department First Vice President Ms. Chalarat Phinitbenchaphol***

Business Marketing Management Department

SME Customer Relationship Management Department First Vice President

Mr. Varatad Tantivorawong***

SME Business Network 1 First Vice President Ms. Ajaree Thanapongporn Mr. Chalom Patan Mr. Surapong Siwalai

*** Department Head


SME Business Network 2 Senior Vice President Mr. Akadej Chotivanich Mr. Austapol SamittivatwongFirst Vice President Mr. Anan Chongsuviwatwong Mr. Charat Siriphongvuttikorn Mr. Charnchai Boonpattanaporn Mr. Niwat Yongpaibool

Retail Business DivisionRetail Portfolio Management Department First Vice President Ms. Panlapa Srisogsai*** Consumer Segment Management Department First Vice President Ms. Supaneewan Chutrakul***

Database Marketing and Campaign Management Department First Vice President Ms. Tananart Lorthong***

Retail Deposit and Investment Products Management Department Senior Vice President Ms. Manaviga Piyapimook***

Credit Card Product Management and Marketing Department First Vice President Mr. Kamphon Sutthiphichet***

Unsecured Credit Product Operation Department First Vice President Mr. Nimit Polchai***

Customer Relations Department First Vice President Ms. Satinee Srirattanapong***

Private Banking Department

Consumer Sales Management Department First Vice President Ms. Rojarek Simapivapan***

Retail Business Development Department First Vice President Mr. Parames Promburee*** Housing Loan Product Management and Marketing Department First Vice President Mr. Alongkot Boonmasuk***

Personal Loan Product Management and Marketing Department First Vice President Ms. Onthida Boonpiamsak***

Retail Payment and Foreign Exchange Products Management Department First Vice President Mr. James Rama Phataminviphas***

Consumer Bancassurance Business Management Department Senior Vice President Ms. Kitiya Rerkpooritat***First Vice President Mr. Tassapong Budsayaplakorn

Retail and SME E-Business Department First Vice President Mr. Krittapat Praimanee*** Mr. Srihanath Lamsam

Service and Sales Network 1 Senior Vice President Mr. Lertsak Supitayakul Service and Sales Network 2 Senior Vice President Mr. Weeranant Chuensuwan Service and Sales Network 3 Senior Vice President Mr. Tanong Sombutpanit Service and Sales Network 4 First Vice President Mr. Worakit Panutat

Service and Sales Network 5 Service and Sales Network 6 Senior Vice President Mr. Manus Pinthong Service and Sales Network 7 First Vice President Mr. Chalermpant Pookpant

Integrated Marketing Communication Department First Vice President Mr. Kritapas Kusmith***

*** Department Head

305


Business Channel Management DepartmentSenior Vice President

Mr. Mogul Posayapisith***

Sales and Service Network Development and Support Department Senior Vice President Mr. Kittipong Koomman***

Consumer Financial Advisory Department First Vice President Ms. Umapan Charoenying***

Affluent Wealth Management DepartmentFirst Vice President Ms. Janchai Angsamaporn***

Electronic Channel and Sales and Service Network Operation Support Department First Vice President Mr. Phole Dhanashoti***

Capital Markets Business Division China Business Division China Business and Overseas Office Management Department Senior Vice President Mr. Anan Lapsuksatit Mr. Pattarapong Kanhasuwan***First Vice President Mr. Chat Luangarpa Mr. Chaivudh Chaiphan Mr. Kin Chong Choi Ms. Rungrat Taechawinyutham

Enterprise Risk Management Division Integrated Risk Management and Analytics Department Senior Vice President Dr. Wichai Narongwanich***First Vice President Dr. Sanphet Sukhapesna Ms. Udomluk Tantbirojn Mr. Wirot Tantiapikun Credit Policy and Risk Management Department First Vice President Ms. Pichavadee Charupattanapornkit Mr. Thitipat Na-Pombejra Credit Underwriting Department Senior Vice President Ms. Rattanapun Srimaneekulroj*** Mr. Worawit Kiatthawee-anand***First Vice President Ms. Chatuporn Suvimolpan Mr. Jittipol Jantanarat Ms. Monta Voraprasit Ms. Nardsinee Boonsunanondha Ms. Nartsinee Sarnvanichpitak Ms. Nidapa Sutiratana Ms. Sukontha Chaisataworawong

Legal Department Senior Vice President Mr. Cheewin Prangchaikul***First Vice President Ms. Pokkes Wongkittiruk

Asset Quality Management Department First Vice President Ms. Mookda Soontornsingha Mr. Phaisarn Vorasetsiri*** Mr. Wichai Yongchaitrakul

Asset Quality Management NetworkFirst Vice President Mr. Somyos Boonma

Asset Quality Management Network 1 Asset Quality Management Network 2 First Vice President Mr. Sittiporn Damsaengsawat

Asset Quality Management Network 3

Asset Quality Management Network 4

Asset Quality Management Network 5 Asset Quality Management Network 6 First Vice President Mr. Pongchet Mangkalaphiban

Retail and SME Business Collection and Recovery Department Senior Vice President Mr. Chitcharoen Phichitkurugarn*** Finance and Control DivisionCentral Treasury Department First Vice President Dr. Karin Boonlertvanich*** Ms. Nipaporn Roongrattanapitak

Financial Planning Department First Vice President Ms. Nisanat Ouvuthipong***

*** Department Head


Financial Accounting Management Department Senior Vice President Ms. Wasana Surakit*** Systems Division Process Development Department First Vice President Mr. Prasong Chanwitgan Ms. Sujira Suthiworapunchai***

Information Management Department Senior Vice President Ms. Soopanit Rojanasaranrom***First Vice President Ms. Patcharee Chitrabumrung Ms. Usa Coasol

Information Technology Management Department Senior Vice President Ms. Orn-Anong Thonguthai***First Vice President Ms. Bunga Setasathid Mr. Jarung Kiatsupapong Mr. Satit Kriyansom Ms. Suvanee Panubuse Mr. Suvichai Lovichit

Information Technology Planning Department First Vice President Ms. Pensiri Dudsdeemaytha*** Dr. Piyawat Jirapongsuwan

Treasury and Capital Markets Operation Department First Vice President Ms. Bunvarong Bunyaviroj***

Credit Processing Department

SME Credit and Housing Loan Approval Processing Department First Vice President Mr. Dolapar Petpiroon Mr. Somsit Ussavanuphap*** Mr. Thanit Shumnij

Cash and Payment Processing Department Senior Vice President Mr. Banjoed Jareyanukeja*** Ground Building and Facilities Management Department First Vice President Mr. Pornchai Yongnoppakul*** Procurement Management Department First Vice President Ms. Choompit Wattanachai*** Ms. Somsri Lertsarunyapong Mr. Surimet Phothongsunan Ms. Tikumporn Papraisawang IT Services Sourcing Management and Governance Department Senior Vice President Mr. Winij Panamaeta***

IT Infrastructure Management Department First Vice President Mr. Mongkol Uechitanantakul Mr. Surose Petchakich*** Mr. Wichai Sinboonmee

IT Quality Assurance and Risk Management Department First Vice President Mr. Yongyut Yodinlom*** IT User Service Department First Vice President Mr. Chalongchai Sasibutra*** Human Resource Division Human Resource Management Department Senior Vice President Ms. Duenpen Pawakranond*** Ms. Oratai TrimungklayonFirst Vice President Ms. Nitaya Phithaksphongs Mr. Prasit Ongarttrakul Ms. Sunan Siriaksorn***

Employee Relations Department Senior Vice President Mr. Thanawat Duang-Udom***First Vice President Mr. Pennung Chaiyachit Mr. Wiwat Rumratana

Human Resource Development Department First Vice President Ms. Passamon Vichitkamthorn***

*** Department Head

307


Type of Share

Proportionof Total

Shares Held (%)

Total Number of Shares

Held

Total Number of Paid-upShares

Location of Corporate

HeadquartersName of CompanyNo. Type of Business

The following is a list of companies in which KASIKORNBANK made investments, in the form of shareholding of 10 percent or more of the total number of shares issued.

1 KASIKORN ASSET MANAGEMENT CO., LTD. Bangkok Mutual Fund Management 27,154,274 27,154,274 100.00 Common Share Tel. 0 2693 2300 Fax 0 2693 2320 2 KASIKORN RESEARCH CENTER CO., LTD. Bangkok Services 100,000 100,000 100.00 Common Share Tel. 0 2273 1144 Fax 0 2270 1218 3 KASIKORN SECURITIES PCL Bangkok Securities 100,000,134 99,995,762 99.99 Common Share Tel. 0 2696 0000 Fax 0 2696 0099 4 KASIKORN LEASING CO., LTD. Bangkok Auto Leasing 90,000,000 90,000,000 100.00 Common Share Tel. 0 2696 9999 Fax 0 2696 9988 5 KASIKORN FACTORY & EQUIPMENT CO., LTD. Bangkok Equipment Leasing 1,600,000 1,600,000 100.00 Common Share Tel. 0 2290 2900 Fax 0 2276 9710 6 Phethai Asset Management Co., Ltd. Bangkok Services 335,000,000 335,000,000 100.00 Common Share Tel. 0 2694 5000 ext. 5208 Fax 0 2694 5205 7 K-SME Venture Capital Co., Ltd. Bangkok Joint Venture 20,000,000 20,000,000 100.00 Common Share Tel. 0 2693 2333 Fax 0 2693 2323 8 PROGRESS SOFTWARE CO., LTD. Bangkok Services 100,000 100,000 100.00 Common Share Tel. 0 2225 7900-1 Fax 0 2225 5654-5 9 PROGRESS PLUS CO., LTD. Bangkok Services 230,000 230,000 100.00 Common Share Tel. 0 2225 2020 Fax 0 2225 2021 10 PROGRESS APPRAISAL CO., LTD. Bangkok Services 5,000 5,000 100.00 Common Share Tel. 0 2270 6900 Fax 0 2278 5035 11 PROGRESS GUNPAI CO., LTD. Bangkok Services 200,000 200,000 100.00 Common Share Tel. 0 2273 3900 Fax 0 2270 1262 12 PROGRESS MANAGEMENT CO., LTD. Bangkok Services 60,000 60,000 100.00 Common Share Tel. 0 2275 1880 Fax 0 2275 1889-91 13 PROGRESS FACILITIES MANAGEMENT CO., LTD. Bangkok Services 50,000 50,000 100.00 Common Share Tel. 0 2273 3288-91 Fax 0 2273 3292 14 PROGRESS SERVICE CO., LTD. Bangkok Services 20,000 20,000 100.00 Common Share Tel. 0 2273 3293-4 Fax 0 2273 3292 15 PROGRESS LAND AND BUILDINGS CO., LTD. Bangkok Real Estate Development 1,879,000 1,879,000 100.00 Common Share Tel. 0 2275 1880 Fax 0 2275 1889 16 PROGRESS STORAGE CO., LTD. Bangkok Services 30,000 30,000 100.00 Common Share Tel. 0 2273 3833 Fax 0 2271 4784 17 PROGRESS HR CO., LTD. Bangkok Services 10,000 10,000 100.00 Common Share Tel. 0 2270 1070-6 Fax 0 2270 1068-9 18 PROGRESS SERVICE SUPPORT CO., LTD. Bangkok Services 40,000 40,000 100.00 Common Share Tel. 0 2470 5420 Fax 0 2888 8882 19 PROGRESS COLLECTION CO., LTD. Bangkok Services 50,000 50,000 100.00 Common Share Tel. 0 2273 3210 Fax 0 2273 2559 20 PROGRESS TRAINING CO., LTD. Bangkok Services 17,000 17,000 100.00 Common Share Tel. 0 2470 6273 Fax 0 2470 3198

Note: Total number of paid-up shares and total number of shares held include common shares and preferred shares.


INVESTMENTS OF KASIKORNBANK IN OTHER COMPANIES


Note: Total number of paid-up shares and total number of shares held include common shares and preferred shares.

21 Thanyathanathavee Co., Ltd. Bangkok Holding 114,865,000 114,865,000 100.00 Common Share Tel. 0 2470 6330 Fax 0 2470 2652 22 Thanyathamrongkij Co., Ltd. Bangkok Holding 114,865,000 114,865,000 100.00 Common Share Tel. 0 2470 6330 Fax 0 2470 2652 23 Thanyanithiwattana Co., Ltd. Bangkok Holding 449,930,000 220,465,700 49.00 Common Share Tel. 0 2470 6330 Fax 0 2470 2652 24 Processing Center Co., Ltd. Bangkok Services 500,000 150,000 30.00 Common Share Tel. 0 2237 6330-4 Fax 0 2237 6340 25 Muangthai Group Holding Co., Ltd. Bangkok Holding 45,865,949 11,925,147 26.00 Common Share Tel. 0 2274 9400 ext. 4010 Fax 0 2276 1997-8 26 WTA (THAILAND) Co., Ltd. Bangkok Trading 1,000 249 24.90 Common Share Tel. 0 2699 1609 Fax 0 2643 1881 27 National ITMX Co., Ltd. Bangkok Services 500,000 92,300 18.46 Common Share Tel. 0 2650 6800 28 Muangthai Holding Co., Ltd. Bangkok Holding 45,600,000 4,560,000 10.00 Common Share Tel. 0 2274 9400 29 Advance Micro Tech Co., Ltd. Bangkok Trading 600,000 60,000 10.00 Common Share Tel. 0 2739 4095-8 Fax 0 2739 4099 30 Ban Somthavil Co., Ltd. Bangkok Real Estate Development 1,000,000 100,000 10.00 Common Share Tel. 0 2332 0352-71 ext. 2344 Fax 0 2332 0372-4 31 Khunka Palang Thai Co., Ltd. Bangkok Energy & Utilities 10,000 1,000 10.00 Common Share Tel. 0 2716 1600 Fax 0 2716 1488 32 Palit Palangngan Co., Ltd. Bangkok Energy & Utilities 10,000 1,000 10.00 Common Share Tel. 0 2716 1600 Fax 0 2716 1488 33 Seacon Development Public Co., Ltd. Bangkok Services 5,740,000 574,000 10.00 Common Share Tel. 0 2721 8888 Fax 0 2721 9444 34 T S C Innovation Co., Ltd. Bangkok Telecommunications 30,000,000 3,000,000 10.00 Common Share Tel. 0 2682 9700 Fax 0 2682 9709 35 Unitas Co., Ltd. Bangkok Land Rental 110,532 11,053 10.00 Common Share Tel. 0 2249 0491 Fax 0 2249 0503 36 WEI POA Co., Ltd. Hong Kong Agro-Industry 5,500,000 550,000 10.00 Common Share 37 Zin Suapah Co., Ltd. Bangkok Services 6,000 600 10.00 Common Share Tel. 0 2221 5895 Fax 0 2221 5895

Type of Share

Proportionof Total

Shares Held (%)

Total Number of Shares

Held

Total Number of Paid-upShares

Location of Corporate

HeadquartersName of CompanyNo. Type of Business

309

OTHER INFORMATION 311 Reference Information

312 Major Shareholders

313 Awards and Commendations

311Annual Report 2011Other Information

KASIKORNBANK PCL conducts commercial banking business, securities business, and other related business under the Financial Institution Business Act, Securities and Exchange Act and other related regulations. Head Office : 1 Soi Rat Burana 27/1, Rat Burana Road, Rat Burana Sub-District, Rat Burana District, Bangkok 10140, Thailand Company Registration Number : 0107536000315 (formerly PCL 105) Telephone : 0 2222 0000 Fax : 0 2470 1144-5 K-Contact Center : 0 2888 8888 (Thai) 0 2888 8888 (English) 0 2800 8888 (Mandarin) Website : www.kasikornbankgroup.com

Registrar - Ordinary Shares : Thailand Securities Depository Company Limited The Stock Exchange of Thailand Building, 62 Ratchadaphisek, Klong Toei, Bangkok 10110 Tel. 0 2229 2800 Fax 0 2359 1259 - KASIKORNBANK Subordinated : KASIKORNBANK PUBLIC COMPANY LIMITED Debentures No. 1/2008, due for redemption in 2018 1 Soi Rat Burana 27/1, Rat Burana Road, - KASIKORNBANK Subordinated Rat Burana Sub-District, Rat Burana District, Bangkok 10140 Debentures No. 1/2009, due for redemption in 2019 Tel. 0 2222 0000 - KASIKORNBANK Subordinated Fax 0 2470 1144-5 Debentures No. 1/2010, due for redemption in 2020 - KASIKORNBANK 8 1/4% Subordinated Bonds due 2016 : The Bank of New York Mellon, One Wall Street New York, N.Y. 10286, U.S.A. Tel. (1) 212 495 1784 Fax (1) 212 495 1245Auditors : Mr. Nirand Lilamethwat, CPA No. 2316 Mr. Winid Silamongkol, CPA No. 3378 Ms. Somboon Supasiripinyo, CPA No. 3731 Ms. Wilai Buranakittisopon, CPA No. 3920 KPMG Phoomchai Audit Limited Empire Tower, 50-51 Floor, 195 South Sathorn Road, Yannawa, Sathorn District, Bangkok 10120 Tel. 0 2677 2000 Fax 0 2677 2222Legal Adviser : Dr. Abhijai Chandrasen 22 Soi Soonthornsaratoon (On Nut 21/1), Sukhumvit 77, Suan Luang District, Bangkok 10250 Tel. 0 2730 6969-76 Fax 0 2730 6967-8

Names, Offices, Telephone and Fax Numbers of Referenced Entities

REFERENCE INFORMATION

312 Annual Report 2011Other Information

KASIKORNBANK’s common shares at September 9, 2011 Registered capital : 3,048,614,697 shares, at Baht 10 per share, totaling Baht 30,486,146,970 Paid-up capital : 2,393,260,193 shares, at Baht 10 per share, totaling Baht 23,932,601,930

The Bank has scheduled the record date on September 8, 2011, to determine the list of shareholders entitled to receive dividend and the shareholders register book closing date on September 9, 2011 to compile the list of shareholders.

List of the fi rst 10 major KBank shareholders

Rank Name

1 THAI NVDR CO., LTD. 596,569,130 24.927 2 STATE STREET BANK AND TRUST COMPANY 201,977,965 8.439 3 CHASE NOMINEES LIMITED 42 120,243,900 5.024 4 STATE STREET BANK EUROPE LIMITED 113,429,867 4.740 5 NORTRUST NOMINEES LTD. 74,454,926 3.111 6 HSBC (SINGAPORE) NOMINEES PTE LTD. 55,175,660 2.305 7 STATE STREET BANK AND TRUST COMPANY FOR AUSTRALIA 44,953,502 1.878 8 CHASE NOMINEES LIMITED 1 43,550,291 1.820 9 THAILAND SECURITIES DEPOSITORY COMPANY LIMITED 36,917,854 1.543 FOR DEPOSITORS (THAI SECURITIES - HOLDER ACCOUNT) 10 SOCIAL SECURITY OFFICE (2 CASES) 29,492,850 1.232 OTHERS 1,076,494,248 44.980 Total paid-up capital 2,393,260,193 100.000 Thai Shareholders 1,221,041,351 51.02 Foreign Shareholders 1,172,218,842 48.98

MAJOR SHAREHOLDERS

Number of Common Shares

Percentage of Common Shares


In 2011, KASIKORNBANK received many awards and commendations, i.e.

KASIKORNBANK

In Recognition of Management • Best Domestic Bank in Thailand 2011 for the second consecutive year, from Asiamoney magazine • Asia Risk Awards 2011, House of the Year, Thailand from Asia Risk magazine • Asia Pacific Top Company for Leaders 2011 based on a survey and rating conducted by Aon Hewitt, Fortune magazine and The RBL Group • Excellent Labour Relations and Welfare Award 2011, in the large enterprise with labour union category for the sixth consecutive year (2006 - 2011), from the Ministry of Labour

• NACC Integrity Awards 2011 for the second consecutive year (2010 - 2011) from the Office of National Anti-Corruption Commission (NACC) • SET Award of Honor for Continuous Excellence in Corporate Governance Report (2008 - 2011), from the SET Awards 2011 ceremony organized by the Stock Exchange of Thailand (SET) and Money and Banking magazine, as a listed company that has complied with good corporate governance principles • The Asset’s Platinum Awards in 2011, for the second consecutive year (2010 - 2011), from The Asset magazine; the top award granted to an organization demanstrating excellence in 6 aspects, namely; Financial Performance, Management Acumen, Corporate Governance, Social Responsibility, Environmental Responsibility, and Investor Relations

KBank executives represented the Bank in receiving the SET Award of Honor for Continuous Excellence in Corporate Governance Report (2008 - 2011) and the Best Investor Relations Award for listed company with marketcapitalization of over Baht 10 billion for the second consecutive year (2010 - 2011), from the SET Awards 2011 organized by the Stock Exchange of Thailand and Money & Banking magazine.

KBank executives represented the Bank in receiving the Asia Pacific Top Company for Leaders 2011 award based on a survey and rating conducted by Aon Hewitt, in cooperation with Fortune Magazine and The RBL Group.

AWARDS AND COMMENDATIONS


• Corporate Governance Asia Annual Recognition Awards 2011 for the seventh consecutive year, organized by Corporate Governance Asia magazine. • Asian Corporate Director Recognition Awards 2011 for the second consecutive year (2010 - 2011), from Corporate Governance Asia magazine, to KASIKORNBANK CEO and President Banthoon Lamsam • Four awards based on Corporate Governance Poll 2011, from Asiamoney magazine: 1. Best Overall for Corporate Governance 2. Best for Responsibilities of Management and the Board of Directors 3. Best for Shareholders’ Rights and Equitable Treatment 4. Best for Investor Relations

• Best Investor Relations Award for listed company with market capitalization over Baht 10 billion, for the second consecutive year (2010 - 2011) from the SET Awards 2011 ceremony, organized by the Stock Exchange of Thailand (SET) and Money & Banking magazine. The Bank has received this award for the fourth time. • Best Investor Relations Officer, for the third consecutive year (2009 - 2011), based on SAA Awards for Listed Companies 2011, organized by the Securities Analysts Association. • Two awards based on the 1st Asian Excellence Recognition Awards 2011, organized by Corporate Governance Asia magazine:

1. Asia’s Best CEO (Investor Relations) 2. Best Investor Relations by a Thai Company • Thailand Energy Awards 2011, in the Excellent Energy Efficiency Building category by the Department of Alternative Energy Development and Efficiency, the Ministry of Energy

KBank executive was presented with the NACC Integrity Award 2011 by the National Anti-Corruption Commission (NACC) for the second consecutive year (2010 - 2011).

KBank executive represented the Bank in receiving the Corporate Governance Asia Annual Recognition Awards 2011 by Corporate Governance Asia magazine for the seventh consecutive year.


• Certificate of ‘Witness for Good Deeds with Volunteer Spirit’ from the Endless Transmission of Goodness Program of the Committee on Public Relations for the Celebrations on the Auspicious Occasion of His Majesty the King’s 7th Cycle Birthday Anniversary, December 5, 2011, for KASIKORNBANK’s voluntary activities during the floods and other events.

In Recognition of Service • Best Retail Bank of the Year 2011 for the fouth consecutive year (2008 - 2011), voted by customers and the public who attended the 11th Money Expo 2011, organized by Money & Banking magazine • Two awards based on the International Excellence in Retail Financial Services Awards 2011, organized by The Asian Banker magazine:

1. Best Retail Bank in Thailand for the second consecutive year 2. Best Retail Banking Brand • Thailand’s Most Innovative Companies 2011, in the service business category for the second consecutive year (2010 - 2011), based on the Thailand’s Most Innovative Companies 2011, organized by the Faculty of Commerce and Accountancy, Chulalongkorn University and Krungthep Turakij newspaper • Top Winner of IDC Enterprise Innovation Awards 2011 for the second consecutive year (2010 - 2011), from IDC’s Asia/Pacific, a leading IT researcher • Two awards based on the Thailand ICT Excellence Awards 2010, organized by the Thailand Management Association (TMA) in cooperation with the National Electronics and Computer Technology Center

KBank executive represented the Bank in receiving the Best Retail Bank in Thailand from The Asian Banker for the second consecutive year

KBank executive represented the Bank in receiving the Asia Risk Award 2011, House of the Year, Thailand, from Asia Risk magazine.


(NECTEC), Software Park Thailand, and College of Innovative Education of Thammasat University (CITU): 1. Innovative Project Award - in recognition of the Bank’s K-My ATM 2. Business Enabler Award in the Finance and Banking sector - in recognition of the Bank’s online payment service via K-Credit/Debit Card with Verified by Visa and One Time Password (VbV OTP) sent by SMS for online shopping • Two awards by Visa International (Asia Pacific) Co., Ltd.: 1. VISA Business Performance Award 2010 - in recognition of the Bank as the card issuer with the highest volume of VISA card spending in Thailand for 2010

2. VISA Debit Innovation Award 2010 - in recognition of the Bank’s excellence in debit card products, card supplementary services, consistent marketing activities via innovations and online media to meet customers’ needs

• Best Bank Website award for the fifth consecutive year (2006 - 2010), for being the most visited banking site based on the Truehits Web Awards 2010, organized by www.truehits.net • Best SME Bank in Thailand 2011 for the second consecutive year (2010 - 2011) based on The Asset Triple A Transaction Banking Awards 2011 organized by The Asset magazine • Best Trade Finance Provider 2011 for the fourth consecutive year (2008 - 2011), from Global Finance magazine • Best Trade Finance Bank in Thailand 2011 based on a survey from GTR Asia Leaders in Trade Awards 2011, organized by Global Trade Review magazine • Best Trade Finance Bank in Thailand 2011 from The Asset magazine, based on The Asset Triple A Transaction Banking Awards 2011

KBank executives represented the Bank in receiving the Best Foreign Exchange Bank 2011, the Best Cash Management Bank 2011 for the third consecutive year (2009 - 2011) and the Best Trade Finance Bank 2011 for the third consecutive year (2009 - 2011), from FinanceAsia magazine.

KBank executive represented the Bank in receiving the Best SME Bank, Thailand 2011, for the second consecutive year and the Best Trade Finance Bank in Thailand 2011 from The Asset magazine.


• Best Trade Finance Bank 2011 for the third consecutive year (2009 - 2011) from FinanceAsia magazine • The Asian Banker Achievement Award for Cash Management in Thailand for the second consecutive year (2010 - 2011), from The Asian Banker journal, based on The Asian Banker Transaction Banking Awards 2011 • Best Cash Management Bank 2011 for the third consecutive year (2009 - 2011), from FinanceAsia magazine • Four awards based on the ThaiBMA Best Bond Awards 2010, organized by the Thai Bond Market Association (ThaiBMA):

1. Best Bond House for the fourth consecutive year (2007 - 2010) 2. Deal of the Year for the fourth consecutive year (2007 - 2010)

3. Most Creative Deal 4. Sales of the Year

• Two awards based on The Asset Triple A Country Awards 2011, organized by The Asset magazine:

1. Best Debt House Thailand 2011 for the fourth consecutive year (2008 - 2011) 2. Best Domestic Bond House Thailand 2011 • Best Domestic Debt House in Thailand 2011 from Asiamoney magazine

KAsset executive represented the company in receiving the Reader’s Digest Trusted Brand 2011 Award’s Gold Winner for Investment Fund Company category, voted by readers of Reader’s Digest magazine in Thailand, for the fourth consecutive year (2008 - 2011).

KBank executive was presented with the VISA Business Performance Award 2010 and the VISA Debit Innovation Award 2010 from VISA International (Asia Pacific) Ltd.


• Best Bond House 2011 from Alpha Southeast Asia magazine • APAC Renewable / Solar Deal of the Year 2010 - in recognition of Natural Energy Development / Lopburi Solar based on the Deals of the Year 2010, organized by Project Finance magazine • Bond (Corporate) Deal of the Year in Asia Pacific - in recognition of Baht 4 billion PTT 100-year debenture based on the Deal of the Year 2011, organized by The Banker magazine • Two awards based on the FinanceAsia Achievement Awards 2011, organized by FinanceAsia magazine: 1. Best Local Currency Bond - in recognition of Thailand Baht 40 billion Inflation-Linked Bond 2. Best Thailand Deal - in recognition of Thailand Baht 40 billion Inflation-Linked Bond

• Best Foreign Exchange Bank 2011 from FinanceAsia magazine • Best Foreign Exchange Bank for Corporates and Financial Institutions 2011 by Alpha Southeast Asia magazine • Three awards based on the FX Poll 2011, conducted by Asiamoney magazine: 1. Best Domestic Provider of FX Services in Thailand, as Voted by Financial Institutions 2. Best Domestic Provider of FX Services in Thailand, as Voted by Corporates 3. Best Domestic FX Provider of Single-Bank Electronic Trading Platform in Thailand, as Voted by Corporates • Five awards based on the Fixed Income Poll 2011, conducted by Asiamoney magazine:

KLeasing executive represented the company in receiving the Best Car Leasing of The Year 2011 award for the second consecutive year (2010 - 2011) at the 32nd Bangkok International Motor Show, organized by Grand Prix International Co., Ltd.

KSecurities executives represented the company in receiving the Outstanding Securities Company Award at the SET Awards 2011, organized by the Stock Exchange of Thailand and Money & Banking magazine.


1. Overall Best Domestic Credit Service Provider in Thailand 2. Overall Best Domestic Interest Rates Services in Thailand 3. Overall Best Interest Rates Research & Market Coverage in Thailand - THB 4. Overall Best for Credit in Thailand 5. Overall Best for Interest Rates in Thailand

KASIKORN ASSET MANAGEMENT CO., LTD. • Reader’s Digest Trusted Brand 2011 award’s Gold Winner for investment fund company category, voted by readers of Reader’s Digest magazine in Thailand. KAsset was the only asset management company granted this award for the fourth consecutive year (2008 - 2011). • Best Thailand Onshore Fund House based on the Asian Investor Investment Performance Awards 2011, organized by Asian Investor magazine

KASIKORN SECURITIES PCL • Five awards based on the SAA Awards for Analysts 2011, organized by Securities Analysts Association 1. SAA Awards for Analysts 2011 by Retail Investors - Overall: Best Research House

2. Media’s Most Favorite Analyst 3. SAA Awards for Best Analyst 2011 by Retail Investors (Energy & Petrochemicals) 4. SAA Awards for Best Technical 2011 by Institutional Investors 5. SAA Awards for Best Analyst 2011 by Institutional Investors (Banking) • Outstanding Securities Company Award based on the SET Awards 2011, organized by the Stock Exchange of Thailand and Money & Banking magazine • Two awards based on Asia’s Best Analysts, organized by THE WALL STREET JOURNAL: 1. Asia’s Best Analysts for Banking 2. Asia’s Best Analysts for Property

KASIKORN LEASING CO., LTD. • Best Car Leasing of The Year 2011, for the third consecutive year (2009 - 2011) a national award granted to KLeasing for its hire purchase and leasing service, with an acceptable reputation in terms of performance, vision, business plan, and service quality satisfaction from car producers, dealers, and general customers, based on the 32nd Bangkok International Motorshow, organized by Grand Prix International Co., Ltd.

KASIKORNBANKGROUP 321 KASIKORNBANK

Domestic Branch

Foreign Exchange Booth

K-Safe Deposit Box Center

THE WISDOM Exclusive Center

THE WISDOM Corner

THE WISDOM K-Safe Deposit Box Center

K-WePlan Branch

Corporate Business Center

Corporate & SME Service Center

SME Business Center

Overseas Offi ce

347 K Companies

321Annual Report 2011KASIKORNBANKGROUP

KASIKORNBANK

Head OfficeAddress : 1 Soi Rat Burana 27/1, Rat Burana Road, Rat Burana Sub-District, Rat Burana District, Bangkok 10140, Thailand Telephone : 0 2222 0000Fax : 0 2470 1144-5K-Contact Center : 0 2888 8888 (Thai), 0 2888 8888 (English), 0 2800 8888 (Mandarin)SWIFT : KASITHBKWebsite : www.kasikornbankgroup.com

Financial Servicing Branches and OfficesDomestic Branch 816 Branches 1. Bangkok Branch 286 Branches 2. Upcountry Branch 530 Branches Foreign Exchange Booth 99 BranchesK-Safe Deposit Box Center 2 BranchesTHE WISDOM Exclusive Center 9 BranchesTHE WISDOM Corner 19 BranchesTHE WISDOM K-Safe Deposit Box Center 3 BranchesK-WePlan Branch 207 BranchesCorporate Business Center 8 CentersCorporate & SME Service Center 62 CentersSME Business Center 114 CentersOverseas Office 8 Branches

K Companies 5 Companies

KASIKORNBANKGROUP

322 Annual Report 2011KASIKORNBANKGROUP

DOMESTIC BRANCH

No. Branch Tel. Fax No. Branch Tel. Fax

286 Bangkok Branches

1 All Seasons Place 0 2251 4610-4 0 2251 4615 2 Asok 0 2204 0188-92 0 2204 0193 3 Ban Mo 0 2225 3089-90 0 2225 3291 4 Ban Thad Thong 0 2215 4674-5 0 2215 5971 5 Bang Bon 0 2899 8330-7 0 2416 4396 6 Bang Khae 0 2801 0610-9 0 2454 2891 7 Bang Khen 0 2930 1234-7 0 2513 9040 8 Bang Khun Non 0 2882 5818 0 2882 5495 9 Bang Khun Thian 0 2878 0023-4 0 2878 0526 10 Bang Krabu 0 2669 0870-6 0 2669 0877 11 Bang Lamphu 0 2281 5187-90 0 2629 0947 12 Bang Mot 0 2870 0224-30 0 2428 2025 13 Bang Pakok 0 2874 4764-5 0 2428 3523 14 Bang Phlat 0 2885 3333-6 0 2434 6197 15 Bang Pho 0 2912 6790-3 0 2585 7700 16 Bang Rak 0 2630 6370-7 0 2266 7540 17 Bang Son 0 2910 8768-9 0 2587 0094 18 Bang Su 0 2587 0219-21 0 2587 0652 19 Bang Yikhan 0 2883 0163-9 0 2433 1337 20 Bangkok Hospital 0 2716 5534-8 0 2716 5539 21 Big-C Bang Bon 0 2417 2351-5 0 2417 2356 22 Big-C Bang Pakok 0 2428 9833-5 0 2428 9857 23 Big-C Hua Mak 0 2314 3061-2 0 2314 3720 24 Big-C Lat Phrao 2 (Soi 9) 0 2512 0463-4 0 2512 0458 25 Big-C On Nut 0 2311 1021-5 0 2311 1017 26 Big-C Phetkasem 2 0 2421 7631-2 0 2421 7622 (Phuttha Monthon Sai 3) 27 Big-C Pracha Uthit 0 2464 3808-9 0 2464 3919 28 Big-C Ram Intra 0 2551 4001-3 0 2551 4005 29 Big-C Rama II (Tha Kham) 0 2416 5037-8 0 2416 8062 30 Big-C Rama II 2 0 2451 3756-7 0 2451 3760 (Kan Kheha Thonburi 3) 31 Big-C Rama IV 0 2259 7132-6 0 2259 7137 32 Big-C Rat Burana 0 2873 1268 0 2873 1269 33 Big-C Ratchada Phisek 0 2248 0290-4 0 2248 0295 34 Big-C Ratchadamri 0 2250 5430-4 0 2250 5435 35 Big-C Rom Klao 0 2543 8273-7 0 2543 8278 36 Big-C Sai Mai 0 2536 0403-6 0 2536 0422 37 Big-C Saphankhwai 0 2616 7468-70 0 2616 7471 38 Bo Bae Tower 0 2282 9674-6 0 2282 9803 39 Bukkhalo 0 2877 6689-96 0 2477 2812 40 Central Bang Na 0 2398 7240-2 0 2398 8483 41 Central Bang Na 2 0 2398 5820-1 0 2398 5827 42 Central Chit Lom 0 2255 4804-8 0 2255 4809 43 Central Lat Phrao 0 2541 1543-5 0 2541 1548

44 Central Lat Phrao 2 0 2541 1631-4 0 2541 1635 45 Central Pin Klao 0 2424 3595-6 0 2424 2834 46 Central Plaza Grand 0 2160 3813-7 0 2160 3818 Rama IX 47 Central Ram Intra 0 2521 2813-4 0 2521 1140 48 Central Rama II 0 2872 4250-2 0 2872 4555 49 Central Rama III 0 2673 6338-9 0 2673 6240 50 Central World 0 2251 0231-5 0 2251 0236 51 Chakkrawat 0 2225 5807-8 0 2225 9675 52 Chaloem Phrakiat 0 2143 9653-7 0 2143 9658 Government Complex (A Building) 53 Chaloem Phrakiat 0 2143 9648-52 0 2143 9659 Government Complex (B Building) 54 Chamchuri Square 0 2160 5085-9 0 2160 5090 55 Charansanitwong 11 0 2412 0068-71 0 2412 8296 56 Charoen Krung 0 2623 2609-12 0 2623 2614 57 Chatuchak Plaza 0 2265 9502-6 0 2265 9507 58 Chok Chai 4 0 2539 8735-7 0 2530 4584 59 Chong Nonsi 0 2285 2071-3 0 2678 0844 60 Court of Justice 0 2512 8130-4 0 2512 8135 61 CP Tower 0 2238 3044-8 0 2238 3049 62 Crystal Design Center 0 2102 2470-4 0 2102 2475 63 Cyber World 0 2645 2314-8 0 2645 2319 64 Dao Khanong 0 2877 5671-2 0 2476 4463 65 Din Daeng 0 2248 1841 0 2248 1843 66 Ekkamai 0 2714 1081-8 0 2714 0410 67 Empire Tower 0 2670 1755-8 0 2670 1759 68 Energy Complex (PTT) 0 2537 0352-6 0 2537 0357 69 Esplanade 0 2660 9224-8 0 2660 9229 Ratchada Phisek 70 Fashion Island Ram Indra 0 2519 4813-6 0 2519 4817 71 Fortune Town 0 2246 7519-23 0 2246 7524 72 Hua Mak 0 2732 2560-3 0 2375 6487 73 Huai Khwang 0 2692 1375-9 0 2276 1820 74 IT Square 0 2576 0691-5 0 2576 0696 75 Jewelry Trade Center 0 2236 6063-7 0 2236 6068 Building 76 Kasetsart University 0 2579 4510 0 2579 4595 Bang Khen 77 Khlong Chan 0 2733 7136-40 0 2733 7141 78 Khlong San 0 2437 0260-2 0 2439 3344 79 Khlong Thom 0 2221 3239-40 0 2221 3868 80 Khlong Toei 0 2671 2042-7 0 2249 5011



81 King Mongkul’s Institute of 0 2326 4771-5 0 2326 4776 Technology Ladkrabang 82 King Phet 0 2612 0463-74 0 2612 1550 83 Kluai Nam Thai 0 2367 3111-7 0 2367 3109 84 Lad Krabang 0 2326 0874-7 0 2326 0863 Industrial Estate 85 Lat Krabang 0 2739 0187-94 0 2326 7198 86 Lat Phrao 10 0 2938 7425-9 0 2512 5565 87 Lat Phrao 25 0 2938 3040-2 0 2513 1603 88 Lat Phrao 67 0 2933 0960-8 0 2539 3273 89 Lat Phrao 71 0 2530 3866-9 0 2530 3624 90 Lat Phrao 92 0 2530 4958-60 0 2530 4966 91 Lat Phrao 99 0 2530 0545-7 0 2530 0548 92 Lotus Bang Kapi 0 2375 0211-4 0 2375 0198 93 Lotus Phetkasem 81 0 2489 2071-5 0 2489 2076 94 Lotus Ram Intra 109 0 2175 3435-9 0 2175 3440 95 Lotus Rama IV 0 2672 7953 0 2671 4661 96 Lotus Sukhaphiban 1 0 2947 9271-3 0 2947 9103 97 Lotus Sukhumvit 101/1 0 2361 3966-70 0 2361 3971 98 Lotus Sutthisan 0 2276 9067-9 0 2276 9095 99 Lotus Town in Town 0 2514 9037-41 0 2514 9042 100 Lotus Wang Hin 0 2578 6341-5 0 2578 6346 101 Lumphini 0 2287 1021-3 0 2287 1061 102 Maha Phruttharam 0 2639 0740-9 0 2236 5566 103 Mahboonkrong Center 0 2216 4820 0 2216 4821 104 Makro Charansanitwong 0 2411 3274-6 0 2411 4410 105 Maxvalu Laksi 0 2521 7932-4 0 2521 7942 106 Maxvalu Phattanakan 0 2722 1004-8 0 2322 2589 107 Min Buri 0 2918 7708-12 0 2518 1475 108 Money Park 0 2686 3940-2 0 2686 3943 Mahboonkrong Center 109 Na-Na Nua 0 2655 0735-7 0 2253 0298 110 Nang Loeng 0 2629 8810-7 0 2629 9379 111 Nawamin City Avenue 0 2907 2010-3 0 2907 2110 112 N-Mark Plaza Bang Kapi 0 2378 1527-8 0 2378 2383 113 On Nut 0 2742 5080-4 0 2332 5285 114 On Nut 39 0 2322 6514-5 0 2721 3031 115 Or Tor Kor Market 0 2278 3137-41 0 2278 3145 (Chatuchak) 116 Pantip Pratu Nam 0 2254 7140-4 0 2254 7145 117 Paradise Park 0 2787 1922-5 0 2787 2149 118 Phahon Yothin Main 0 2273 3337 0 2273 1399 119 Phasi Charoen 0 2869 7462-6 0 2869 7128 120 Phat Phong 0 2637 0041-8 0 2637 0477 121 Phat Phong 2 0 2634 3072-5 0 2634 3069

122 Phetkasem 51 0 2801 3626-9 0 2454 2975 123 Phetkasem Avenue 0 2809 2747-8 0 2809 3313 Bang Khae 124 Pho Sam Ton 0 2891 0037-8 0 2465 4660 125 Phra Khanong 0 2711 0203-8 0 2711 1682 126 Phran Nok 0 2866 1323-7 0 2866 1328 127 Pin Klao 0 2884 6380-90 0 2433 9920 128 Platinum Fashion Mall 0 2121 9544-8 0 2121 9549 129 Pracha Niwet 1 0 2954 3334-7 0 2589 2914 130 Pradit Manutham 0 2515 0506-10 0 2515 0511 131 Pratu Nam Pathum Wan 0 2208 0112-7 0 2208 0096 132 Prawet 0 2726 0484-7 0 2726 0494 133 Pure Place 0 2372 3589-93 0 2372 3594 Ramkhamhaeng 110 134 Ramkhamhaeng 2 0 2397 7185-9 0 2397 7190 135 Rat Burana Main 0 2871 3650-5 0 2871 3645 136 Ratchadamri 0 2253 4997-9 0 2253 1423 137 Ratchawat 0 2243 7815-7 0 2668 5637 138 Robinson Ratchada Phisek 0 2248 6923-7 0 2248 6928 139 Samre 0 2438 0050-1 0 2437 8236 140 Sanam Pao 0 2617 2315-6 0 2617 2842 141 Sao Chingcha 0 2622 0034-6 0 2622 1344 142 Saphan Krung Thon 0 2883 0172-9 0 2433 4554 143 Saphan Luang 0 2611 6183-6 0 2215 9240 144 Saphan Mai Don Muang 0 2972 5512-20 0 2552 6544 145 Saphan Phut 0 2623 7504-8 0 2623 7613 146 Sathon (Saint Louis 3) 0 2212 3533-4 0 2212 3652 147 Save-E Buddha Monthon 0 2447 9461-5 0 2447 9494 Sai 2 (Pin Klao) 148 Seacon Square 0 2721 8554-61 0 2721 8562 149 Seacon Square 2 0 2321 7432-6 0 2321 7437 150 Si Wara Town in Town 0 2559 0080-2 0 2559 0086 151 Si Yaek Bang Na 0 2745 2900-5 0 2745 2905 152 Si Yaek Kaset 0 2561 5231-2 0 2561 5475 153 Si Yaek Ratchawong 0 2225 6527-9 0 2225 5753 154 Si Yaek Saphan 0 2689 0092-8 0 2689 0694 Krung Thep 155 Si Yaek Thanon Chan-Liab 0 2678 4101-4 0 2678 4105 Khlong Chong Nonsi 156 Si Yaek Tossakan 0 2410 3503-4 0 2410 3887 157 Si Yaek Wang Hin 0 2940 4824-8 0 2940 4840 158 Siam Paragon 0 2610 9404-8 0 2610 9409 159 Siam Square 0 2658 1755-9 0 2658 1754 160 Siangkong 0 2639 4041-5 0 2237 4990 161 Silom Main 0 2232 5001 0 2234 7445



162 Silom Soi 1 0 2233 0721-5 0 2233 0726 (Zuellig House Building) 163 Silom Soi 22 0 2235 2540-4 0 2235 2545 164 Siriraj 0 2411 0232-4 0 2411 0520 165 Siriraj Hospital 0 2418 4124-5 0 2418 4245 166 Soi Chalaem Nimit 0 2688 4250-4 0 2291 1079 (Pha Du 1) 167 Soi Charoen Rat 7 0 2291 9280-1 0 2291 9812 168 Soi Charurat 0 2651 7093-8 0 2253 3537 169 Soi Khubon 0 2509 2169-70 0 2509 2680 170 Soi Udomsuk 0 2361 7666-7 0 2361 7668 171 Soi Viphavadi Rangsit 2 0 2276 8511-3 0 2276 8725 (Ho Kankha) 172 Soi Watcharaphon 0 2509 0013-4 0 2509 0019 173 Somdech Phra Debaratana 0 2354 3226-7 0 2354 3791 Madical Center (Ramathibodi Hospital) 174 Song Prapha-Don Muang 0 2566 4345-6 0 2566 4347 175 Southern Bus Terminal 0 2894 6020-4 0 2894 6025 Phuttha Monthon Sai 1 176 Suan Chatuchak 0 2617 6040-7 0 2272 0857 177 Suan Chatuchak Weekend 0 2272 4790-3 0 2272 4802 Market 178 Suan Mali 0 2224 5970-1 0 2224 6173 179 Suan Phlu 0 2679 4246-53 0 2213 1362 180 Sukhaphiban 1 (Bang Bon) 0 2454 4331-2 0 2454 4333 181 Sukhumvit 1 (Bumrungrad) 0 2255 2324-8 0 2255 2329 182 Sukhumvit 101 0 2741 7661-5 0 2741 8352 183 Sukhumvit 11 0 2253 8623-4 0 2255 8600 184 Sukhumvit 15 0 2253 7381-5 0 2253 7386 185 Sukhumvit 18 0 2261 4054-8 0 2261 4059 (Exchange Tower) 186 Sukhumvit 21 0 2260 0112-6 0 2260 0117 (Serm Mit Tower Building) 187 Sukhumvit 23 0 2261 4060-4 0 2261 4065 (Interchange Building) 188 Sukhumvit 33 (Bang Kapi) 0 2261 0151-7 0 2261 0164 189 Sukhumvit 57 0 2714 1089-93 0 2390 0784 190 Sukhumvit 6 0 2255 1861-5 0 2255 1866 (Two Pacific Place Building) 191 Sukhumvit 71 0 2392 5012-6 0 2392 5017 192 Suntowers Building 0 2273 8186-90 0 2273 8191 193 Surawong 0 2639 4056-60 0 2639 0927 194 Sutthisan 0 2616 9990-5 0 2616 9997 195 Suwinthawong Nong Chok 0 2988 0680-5 0 2988 0692

196 Talat Min Buri 0 2540 7972-4 0 2540 8146 197 Talat Phattanakan 0 2321 7426-7 0 2321 7425 198 Talat Phlu 0 2891 4022-9 0 2891 4278 199 Talat Wongsakon Sai Mai 0 2563 4357-61 0 2563 4362 200 Talat Ying Charoen 0 2521 4354-5 0 2521 4361 201 Taopoon 0 2911 3126-8 0 2911 3129 202 Tesco Lotus Bang Khae 0 2454 8304-8 0 2454 8309 203 Tesco Lotus Lat Phrao 0 2939 3682-4 0 2939 3265 204 Tesco Lotus Min Buri 0 2540 2740 0 2540 2772 205 Tesco Lotus Pin Klao 0 2433 2530-3 0 2433 2543 206 Tesco Lotus Pracha Chuen 0 2587 2010-4 0 2587 2015 207 Tesco Lotus Rama I 0 2219 1836-40 0 2219 1842 208 Tesco Lotus Rama II 0 2415 4514-8 0 2415 4510 209 Tesco Lotus Rama III 0 2294 3703-4 0 2294 3712 210 Tesco Lotus Sukhaphiban 3 0 2916 6743-4 0 2916 6881 211 Tha Phra 0 2868 0125-35 0 2457 8812 212 Tha Rua Sathu Pradit 0 2295 0123-5 0 2294 6661 213 Thai Airways International 0 2513 6243-6 0 2513 6982 214 Thammasat University 0 2226 0536-7 0 2226 0643 Tha Phra Chan 215 Thanam Ratchawong 0 2224 5490-1 0 2224 9244 216 Thanon Asok Din Daeng 0 2641 8660-2 0 2247 7552 217 Thanon Bang Khunthian- 0 2416 6184-5 0 2416 6362 Chaythale 218 Thanon Bang Na-Trat Km. 4 0 2397 3570-2 0 2397 3568 219 Thanon Chan 0 2212 9788-9 0 2673 0438 220 Thanon Charoen Nakorn 36 0 2862 7920-2 0 2862 7924 221 Thanon Charoen Rat 0 2437 0256-8 0 2437 0259 222 Thanon Convent 0 2233 8601-5 0 2233 8606 (Liberty Square) 223 Thanon Ekkachai-Bang Bon 0 2453 0562-3 0 2453 0702 224 Thanon Khao San 0 2280 5904-8 0 2280 5909 225 Thanon Lan Luang 0 2628 1391-6 0 2628 1406 226 Thanon Lang Suan 0 2652 0240-2 0 2652 1987 227 Thanon Lat Ya 0 2861 4415-25 0 2438 0538 228 Thanon Maha Chai 0 2621 0764-6 0 2226 4805 229 Thanon Mangkon 0 2224 5070-1 0 2224 5178 230 Thanon Narathiwat 0 2237 9858-62 0 2237 9863 Rat Nakharin 231 Thanon Nawamin 36 0 2374 0269-72 0 2375 0986 232 Thanon Nuan Chan 0 2363 8949-53 0 2363 8954 233 Thanon Padiphat 0 2618 4168-70 0 2618 6042 234 Thanon Phanit Chayakan 0 2865 7364-5 0 2865 7367 Thonburi 235 Thanon Phattanakan 20 0 2717 8870-3 0 2319 8352



236 Thanon Phetchaburi 17 0 2255 5320-4 0 2255 5325 237 Thanon Phetchaburi Tat Mai 0 2318 4700-1 0 2716 5209 238 Thanon Phetchaburi Tat Mai 0 2369 1834-8 0 2369 1839 (Italthai Tower) 239 Thanon Pracha Chuen 0 2586 9352-3 0 2586 0757 240 Thanon Pracha Uthit 0 2428 7390-2 0 2428 3987 241 Thanon Ram Intra 0 2552 3060-2 0 2971 6515 242 Thanon Rama II 0 2894 0274-7 0 2416 5554 243 Thanon Rama III 0 2683 4250-3 0 2683 4264 244 Thanon Rama IX 0 2719 6809-16 0 2318 4820 245 Thanon Ramkhamhaeng 0 2314 1871-2 0 2314 1873 246 Thanon Ramkhamhaeng 151 0 2373 0981-3 0 2373 0985 247 Thanon Ramkhamhaeng 53 0 2374 0756-7 0 2375 9239 248 Thanon Rang Nam 0 2642 4611-6 0 2640 0128 249 Thanon Ratchada Phisek 0 2264 0213-6 0 2264 0221 (Sukhumvit-Rama IV) 250 Thanon Ratchada Phisek 0 2476 8856-8 0 2476 8862 (Taksin-Tha Phra) 251 Thanon Ratchada Phisek 0 2693 2460-9 0 2693 2472 Huai Khwang 252 Thanon Sathon 0 2633 8013-6 0 2633 8018 253 Thanon Sathu Pradit 0 2674 0164-70 0 2212 2900 254 Thanon Serithai 46 0 2518 2040-1 0 2518 2043 (Suan Siam) 255 Thanon Sirinthon 0 2881 9818 0 2423 0918 256 Thanon Sri Nakharin Km. 9 0 2393 5850-4 0 2361 7236 257 Thanon Sua Pa Main 0 2221 3131-8 0 2225 6573 258 Thanon Suan Phak 0 2448 5321-5 0 2448 5326 259 Thanon Suk Sawat 0 2877 0350-5 0 2877 1090 260 Thanon Sukhumvit 55 0 2178 0904-8 0 2178 0909 (Soi Thong Lo 20) 261 Thanon Sukhumvit 55 0 2712 8770-2 0 2390 0457 (Soi Thong Lo 9) 262 Thanon Witthayu 0 2252 2177-9 0 2252 2055 263 Thanon Wutthakat 0 2875 4536 0 2875 4535 264 The Avenue Ratchayothin 0 2512 6013-6 0 2512 6148 265 The Mall Bang Kapi 0 2374 4261-3 0 2374 7298 266 The Mall Bang Khae 0 2454 9023-6 0 2454 9027 267 The Mall Tha Phra 0 2477 7343-7 0 2477 7348 268 The Market Bang Pho 0 2586 7288 0 2586 7657 269 Thewet 0 2281 4182-3 0 2628 5050 270 Thiam Ruam Mit 0 2274 4200 0 2274 4203 271 Thon Buri 0 2861 4357-64 0 2438 9921 272 Thung Kru 0 2873 5140-1 0 2873 5144 273 Tops Market Place Silom 0 2101 0214-8 0 2101 0219

274 Union Mall Lat Phrao 0 2511 1227-8 0 2511 1342 275 United Center 0 2232 5305-7 0 2232 5308 276 Urban Square 0 2591 0677 0 2591 0921 (Pracha Chuen 12) 277 Victory Monument 0 2245 8140-1 0 2644 6881 278 Wang Burapha 0 2623 7681-90 0 2225 0344 279 Wat Sai 0 2893 6285-93 0 2416 5371 280 Wong Sawang Town Center 0 2586 7624-7 0 2586 9821 281 Wong Waen Rob Nok 0 2899 6930-9 0 2416 0356 (Ekkachai-Bang Bon) 282 Wong Wian 22 Karakada 0 2623 0030-2 0 2224 9860 283 Worachak 0 2621 0244-7 0 2621 0064 284 Yan Nawa 0 2675 5120-7 0 2212 3281 285 Yaowarat 0 2623 0016-9 0 2226 4806 286 Yotse 0 2224 6075-6 0 2224 4819

530 Upcountry Branches

No. Branch Tel. Fax

Central 178 Branches

Ang Thong

1 Ang Thong 0 3561 1306-7 0 3561 1346 2 Pa Mok 0 3566 1235-6 0 3566 1237 3 Wiset Chai Chan 0 3563 1242 0 3563 1262

Chai Nat

4 Chai Nat 0 5641 1264 0 5641 1331 5 Hankha 0 5645 1373-5 0 5645 1378 6 Sankhaburi 0 5648 1362-3 0 5648 1004 7 Wat Sing 0 5646 1080-3 0 5646 1085

Kanchanaburi

8 Kanchanaburi 0 3451 1203 0 3451 2382 9 Tha Muang Kanchanaburi 0 3461 3081-5 0 3461 3086 10 Tha Rua 0 3463 6859-60 0 3456 1994

Lop Buri

11 Ban Mi 0 3662 8729-32 0 3647 1675 12 Big-C Lop Buri 0 3661 5762-3 0 3661 6113 13 Khok Samrong 0 3644 1117 0 3644 1581 14 Lam Narai 0 3646 1151-2 0 3646 1153 15 Nong Muang 0 3664 8452-6 0 3643 1103 16 Thanon Surasongkhram 0 3661 7280 0 3641 3761 Lop Buri 17 Wong Wian Sa Kaeo 0 3661 3770-1 0 3641 3733 Lop Buri



Nakhon Nayok

18 Nakhon Nayok 0 3732 1159-64 0 3731 1854 19 Ongkharak 0 3739 1486-90 0 3739 1492

Nakhon Pathom

20 Big-C Om Yai 0 2431 1919-21 0 2431 1931 21 Huai Phlu 0 3423 9662-4 0 3438 9121 22 Nakhon Pathom 0 3425 3822-9 0 3425 2510 23 Om Yai 0 2420 5561-5 0 2420 8607 24 Salaya 0 2441 5421-5 0 2441 5426 25 Sam Phran 0 3422 5649-51 0 3432 2990 26 Talat Ong Phra Pathom 0 3427 3469-71 0 3427 3209 Chedi 27 Talat Pathom Mongkhon 0 3425 6627-8 0 3425 3554 Nakhon Pathom 28 Tesco Lotus Nakhon Chaisi 0 3433 2260-4 0 3433 2265 29 Tesco Lotus 0 3425 2227-8 0 3425 2337 Nakhon Pathom 30 Tesco Lotus Salaya 0 2482 2400-4 0 2482 2405 31 Tesco Lotus Samphran 0 3431 2134-8 0 3431 2139 32 Thanon Phetkasem 0 3423 0513-6 0 3423 0517 Nakhon Chaisi 33 Thanon Phetkasem 0 3421 3387-9 0 3421 3390 Nakhon Pathom

Nonthaburi

34 Bang Bua Thong 0 2571 5214-8 0 2571 5219 35 Bang Kruai 0 2879 3060-6 0 2447 0696 36 Big-C Bang Yai 0 2926 3235-8 0 2926 3259 37 Big-C Chaeng Watthana 2 0 2582 1162-4 0 2582 1229 (Yaek Pak Kret) 38 Central Chaeng Watthana 0 2193 8065-9 0 2193 8070 39 Central Rattanathibet 0 2969 8085-90 0 2969 8091 40 Chaeng Watthana 0 2562 8001-7 0 2562 8015 Muang Thong Thani Main 41 Esplanade Rattanathibet 0 2589 5823-6 0 2589 9705 42 Homeworks Ratchaphruek 0 2447 6740-3 0 2447 6744 43 Lotus Nichada Thani 0 2582 8120-4 0 2582 8125 44 Lotus Rattanathibet 0 2591 0199 0 2591 0525 45 Lotus Wat Ladpladuk 0 2194 5054-8 0 2194 5059 46 Muang Thong Thani 0 2980 6055-9 0 2980 6060 47 Nonthaburi 0 2967 4023-30 0 2967 2006 48 Pak Kret 0 2960 8940-5 0 2583 8919 49 Pantip Ngam Wong Wan 0 2953 6047-9 0 2953 6073 50 Saphan Nonthaburi 0 2584 5034-5 0 2584 5383 51 Talat Amphoe Bang Kruai 0 2883 6218-9 0 2883 6222 52 Talat Chao Phraya Bang Yai 0 2595 1261-3 0 2595 1264 53 Thanam Nonthaburi 0 2526 9183-4 0 2526 9508

54 Thanon Chaeng Watthana 0 2982 9760-5 0 2982 9934 55 Thanon Kanchanaphisek 0 2595 0401-3 0 2595 0790 Bang Yai 56 Thanon Ngam Wong Wan 0 2591 7895-7 0 2589 5091 57 Thanon Ratchaphruek 0 2195 2039-40 0 2195 2160 (PTT Pradapdao) 58 Thanon Rattanathibet 0 2921 1145-56 0 2594 0626 Bang Yai 59 Thanon Samakkhi 0 2573 6191 0 2573 8542 60 Thanon Tiwanon (Khae Rai) 0 2589 0030-3 0 2580 2838 61 The Mall Ngam Wong Wan 0 2550 0790 0 2550 0799 62 The Square Bang Yai 0 2195 0100-4 0 2195 0105 63 Tiwanon 8 0 2965 9070-8 0 2965 9086 Pathum Thani 64 Big-C Lam Luk Ka 0 2152 7182-6 0 2152 7187 65 Big-C Nava Nakorn 0 2520 4250-3 0 2520 4209 66 Big-C Rangsit 2 0 2995 1015-6 0 2995 1017 (Talat Si Mum Muang) 67 Big-C Rangsit Khlong 3 0 2592 2901-5 0 2592 2906 68 Big-C Rangsit Khlong 6 0 2577 0051-3 0 2577 2888 69 Future Park Rangsit 0 2958 0971-2 0 2958 0974 70 Future Park Rangsit 2 0 2958 6160-4 0 2958 6165 71 Khlong 2 Thanyaburi 0 2996 0262-3 0 2996 0181 72 Khlong 6 Thanyaburi 0 2577 2360-3 0 2577 2366 73 Khlong Luang 0 2516 2130-1 0 2516 2998 74 Lat Lum Kaeo 0 2979 3434 0 2979 3131 75 Lotus Lam Luk Ka (Khlong 2) 0 2191 1581-5 0 2191 1586 76 Lotus Lam Luk Ka (Khlong 6) 0 2569 1403-5 0 2569 1388 77 Lotus Rangsit 0 2567 4536-8 0 2567 4916 78 Lotus Rangsit Khlong 7 0 2577 2401-4 0 2577 3888 79 Nava Nakorn 0 2909 1123-5 0 2529 2904 80 Nava Nakorn 2 0 2529 1077 0 2529 1859 81 Pathum Thani 0 2978 0112-8 0 2581 1773 82 Rangsit 0 2959 0001-10 0 2531 4124 83 Talat AC Lam Luk Ka 0 2569 3513-7 0 2569 3518 (Khlong 4) 84 Talat Si Mum Muang- 0 2536 7176-9 0 2536 7171 Rangsit 85 Talat Thai 0 2529 5697 0 2529 5550 86 Thanon Bang Khan- 0 2901 6951-3 0 2901 6973 Khlong Luang 87 Zeer Rangsit 0 2992 6112-4 0 2992 6117 Phetchaburi 88 Ban Laem 0 3245 0692-4 0 3248 1118 89 Cha-Am 0 3243 3894-6 0 3247 1409 90 Phetchaburi 0 3242 6111-3 0 3242 6245



91 Phetphaibun Plaza 0 3240 2990-3 0 3240 2994 Phetchaburi 92 Tha Yang 0 3246 1444 0 3246 1222

Phra Nakhon Si Ayutthaya 93 Ayutthaya 0 3525 2260-2 0 3525 2256 94 Big-C Ayutthaya 0 3574 7139-43 0 3574 7144 95 Hi-Tech Industrial Estate 0 3535 1685-9 0 3535 1690 Ayutthaya 96 Lotus Ayutthaya 0 3534 5324 0 3534 5160 97 Phak Hai 0 3523 9324-5 0 3539 1298 98 Pratu Nam Phra In 0 3521 9524-7 0 3536 1123 99 Rojana Industrial Park 0 3533 2281-5 0 3533 2286 100 Rojana Industrial Park 2 0 3574 6974-8 0 3574 6979 101 Sena 0 3521 7332-4 0 3520 1551 102 Talat Bang Pa-in 0 3522 1954-5 0 3522 1849 Industrial Estate 103 Thanon Rojana Ayutthaya 0 3521 3870-2 0 3521 3875 104 Wang Noi 0 3521 5286-8 0 3521 5289 Prachuap Khiri Khan 105 Bang Saphan 0 3254 8435-7 0 3269 1249 106 Hua Hin 0 3251 1775-6 0 3251 2585 107 Hua Hin Market Village 0 3252 6290-4 0 3252 6295 108 Prachuap Khiri Khan 0 3255 0933-5 0 3261 1101 109 Pran Buri 0 3262 1992-3 0 3262 1942 110 Sam Roi Yot 0 3268 8551-2 0 3268 8553 111 Talat Chatchai Hua Hin 0 3252 1044-6 0 3252 1275 112 Thap Sakae 0 3254 6686-8 0 3267 1212 Ratchaburi 113 Ban Pong 0 3234 4679-80 0 3220 1193 114 Big-C Ratchaburi 0 3231 7313-5 0 3231 6760 115 Damnoen Saduak 0 3224 5160-4 0 3224 5165 116 Ratchaburi 0 3231 4054-5 0 3232 5834 117 Tesco Lotus Ban Pong 0 3220 1585-7 0 3220 1718 118 Thanon Sri Suriyawong 0 3231 0630-3 0 3231 0634 Ratchaburi Samut Prakan 119 Bang Bo 0 2338 1184-6 0 2338 1113 120 Bang Khru 0 2463 6314-6 0 2463 4549 121 Bang Mek Khao 0 2703 8524-31 0 2387 2779 122 Bang Phli 0 2751 0650-4 0 2316 7827 123 Big-C Samut Prakan 0 2395 5027-9 0 2395 2452 124 Big-C Suksawat 0 2464 4281-5 0 2464 4284 125 Customs Free Zone 0 2134 1916-9 0 2134 1905 Suvarnabhumi

126 Home Pro Bang Na 0 2316 4849-52 0 2316 4856 127 Imperial World Samrong 0 2183 0732-6 0 2183 0737 128 Khlong Dan 0 2330 1133-5 0 2330 1136 129 Lotus Sri Nakharin 0 2175 7812-5 0 2175 7818 130 Phra Pradaeng 0 2818 0990-3 0 2463 1976 131 Phra Samut Chedi 0 2819 7747-50 0 2819 7967 132 Pu Chao Saming Phrai 0 2754 3348-52 0 2754 5531 133 Samrong (Pu Chao Center) 0 2757 8963-8 0 2384 3413 134 Samut Prakan 0 2395 3000-2 0 2701 7805 135 Sukhumvit 107 0 2398 5849-53 0 2398 5884 136 Suvarnabhumi Airport 0 2134 1906-10 0 2134 1911 137 Talat Bang Bo 0 2708 4056-7 0 2338 1188 138 Talat Bang Pu 0 2324 3046-50 0 2324 3051 Industrial Estate 139 Talat Nam Daeng 0 2754 7160-1 0 2754 7844 140 Talat Samut Prakan 0 2387 0995 0 2387 1794 141 Thanon Bang Na-Trat 0 2740 6611-8 0 2740 6623 Km.18 142 Thanon King Kaeo 0 2738 8025-6 0 2738 8216 Samut Prakan 143 Thanon Sri Nakharin Km.15 0 2385 7901-2 0 2385 7149 144 Thanon Sri Nakharin Km.17 0 2385 6968-71 0 2385 6977 145 Thanon Thepharak 0 2758 2403-5 0 2394 6966 146 Yes Bang Phli 0 2705 1728-9 0 2705 4130

Samut Sakhon

147 Ban Phaeo Lak Sam 0 3485 0597-9 0 3448 1463 148 Big-C Mahachai 0 3444 2860-4 0 3444 2865 149 Krathum Baen 0 3447 2006-7 0 3447 9503 Samut Sakhon 150 Om Noi 0 2420 1571 0 2420 2364 151 Phanthai Norasing 0 3445 8503-7 0 3445 8508 Samut Sakhon 152 Phutta Monthon Sai 4 0 2813 1701-7 0 2420 9978 153 Samut Sakhon 0 3481 1087-91 0 3442 3013 154 Talat Samut Sakhon 0 3481 1100-1 0 3442 7137 155 Tesco Lotus Krathum Baen 0 3447 2012-3 0 3447 3044 156 Tesco Lotus Mahachai 0 3482 7396-7 0 3482 7799 157 Thanon Ekkachai 0 3442 5605-7 0 3442 5667 Samut Sakhon 158 Thanon Ekkachai-Photchae 0 3449 4551-4 0 3449 5002 159 Thanon Rama II 0 3442 8751-5 0 3442 8756 Samut Sakhon 160 Thanon Setthakit 1 0 3481 6662-5 0 3481 6671 Samut Sakhon

Samut Songkhram

161 Samut Songkhram 0 3471 1522-3 0 3471 2433


No. Branch Tel. Fax

No. Branch Tel. Fax

North 94 Branches

Chiang Mai

1 Big-C Chiang Mai 0 5324 9733-5 0 5324 9857 (Don Chan) 2 Big-C Chiang Mai 2 0 5324 0482-3 0 5324 0484 (Yaek San Dek) 3 Big-C Hang Dong 0 5344 7822-6 0 5344 7827 4 Bo Sang 0 5338 6850-1 0 5333 9036 5 Central Plaza Chiang Mai 0 5390 3607-8 0 5390 3612 Airport 6 Central Plaza Chiang Mai 0 5390 4102-6 0 5390 4107 Airport 2 7 Chang Phuak Chiang Mai 0 5321 1672 0 5321 2013 8 Chiang Mai University 0 5322 3371-3 0 5322 3506 9 Chom Thong 0 5334 1181-2 0 5334 1180 10 Fang 0 5345 1111-3 0 5345 1114 11 Hang Dong Chiang Mai 0 5344 2871-2 0 5344 2951 12 Lotus Kham Thiang 0 5322 7356-60 0 5322 7369 Chiang Mai

No. Branch Tel. Fax

13 Mae Chaem 0 5348 5124-5 0 5382 8192 14 Mae Rim Chiang Mai 0 5329 8171-5 0 5329 8176 15 Mi Chok Plaza 0 5323 0351-5 0 5323 0356

(Thanon Chiang Mai-Mae Jo) 16 Night Bazaar 0 5327 3487 0 5327 3552 17 Sam Yaek San Sai 0 5349 1822 0 5349 1821 18 San Pa Tong 0 5382 3503-4 0 5331 1113 19 Saraphi 0 5342 3248-50 0 5332 1591 20 Si Yaek Sanambin 0 5320 2529-37 0 5327 0825 Chiang Mai 21 Talat Pratu Chiang Mai 0 5381 4196 0 5381 4556 22 Talat Warorot 0 5325 2960 0 5325 2961 23 Thanon Chang Klan 0 5328 1850-3 0 5328 1859 Chiang Mai 24 Thanon Charoen Muang 0 5324 2855 0 5324 2901 Chiang Mai 25 Thanon Moon Muang 0 5321 8210-3 0 5321 8217 Chiang Mai 26 Thanon Nimmanhemin 0 5335 7650-4 0 5335 7655 Chiang Mai 27 Thanon Ratchawong 0 5325 1852-3 0 5323 3918 Chiang Mai 28 Thanon Si Don Chai 0 5328 2085-6 0 5327 9026 Chiang Mai 29 Thanon Suthep Chiang Mai 0 5380 8514-6 0 5380 8523 30 Thanon Tha Phae 0 5327 0151-8 0 5328 2679 Chiang Mai Chiang Rai

31 Central Plaza Chiang Rai 0 5317 9801-5 0 5317 9806 32 Chiang Khong 0 5365 5393-4 0 5379 1112 33 Chiang Rai 0 5375 2226-9 0 5371 4003 34 Ha Yaek Po Khun Mengrai 0 5374 8311-3 0 5374 8314 35 Huai Khrai Mae Chan 0 5376 3003-4 0 5376 3004 36 Mae Chan 0 5377 1230-2 0 5377 1054 37 Mae Sai 0 5364 0786-90 0 5373 3101 38 Mae Sai 2 0 5373 2435-6 0 5373 2223 39 Pa Daet 0 5365 4282-4 0 5376 1011 40 Phan Chiang Rai 0 5372 2818-9 0 5372 2789 41 Thanon Super Highway 0 5375 4144-5 0 5371 7489 Chiang Rai

Kamphaeng Phet

42 Kamphaeng Phet 0 5571 1244 0 5571 3702 43 Khlong Khlung 0 5572 4383-6 0 5572 4390 44 Khlong Lan 0 5573 5250 0 5578 6233 Kamphaeng Phet

Saraburi 162 Kaeng Khoi Saraburi 0 3624 5429-33 0 3624 5434 163 Nong Khae 0 3632 6281-5 0 3632 6290 164 Phra Phutthabat 0 3626 6716-7 0 3626 6998 165 Saraburi 0 3622 0414-8 0 3622 0422 166 Tesco Lotus Saraburi 0 3621 4361-5 0 3621 4433 167 Thanon Sutbanthad Saraburi 0 3622 1132-3 0 3622 1941 Sing Buri 168 In Buri 0 3653 3519-21 0 3658 1722 169 Sing Buri 0 3652 0035-7 0 3651 1308 170 Talat Channasut 0 3659 1478 0 3659 1479 Bang Rachan 171 Tha Chang 0 3653 6265-6 0 3659 5237 Suphan Buri 172 Dan Chang 0 3559 5013 0 3559 5252 173 Doembang Nangbuat 0 3557 8011 0 3557 8099 174 Sam Chuk Suphan Buri 0 3557 2184-8 0 3557 2189 175 Song Phi Nong 0 3553 1943-4 0 3553 1092 176 Suphan Buri 0 3551 1522-3 0 3552 2155 177 Thanon Malaiman 0 3552 4044-6 0 3552 4047 Suphan Buri 178 U Thong 0 3540 4202-4 0 3555 1405



Phichit

75 Bang Mun Nak 0 5666 0758-60 0 5663 1278 76 Phichit 0 5661 1221 0 5661 2178 77 Taphan Hin 0 5662 1388 0 5662 1488 78 Thap Khlo 0 5664 1237-8 0 5665 4430

Phitsanulok

79 Central Plaza Phitsanulok 0 5533 8519-23 0 5533 8524 80 Ha Yaek Khok Matum 0 5521 1730-1 0 5524 1984 81 Naresuan University 0 5522 7064-5 0 5522 7355 82 Nong Tom 0 5536 6000-1 0 5536 6002 83 Phitsanulok 0 5524 1497-9 0 5524 1744 84 Thanon Borom Trai 0 5524 8802-3 0 5524 8819 Lokkanat Phitsanulok

Phrae

85 Phrae 0 5462 7230-2 0 5452 1483

Sukhothai

86 Sawankhalok 0 5562 3651-3 0 5564 1392 87 Sukhothai 0 5561 1101-2 0 5561 2887

Tak

88 Mae Sot 0 5554 4824-8 0 5553 2738 89 Tak 0 5554 0609-11 0 5551 1188

Uthai Thani

90 Lan Sak 0 5652 2313-5 0 5653 7003 91 Nong Chang 0 5653 1037-8 0 5653 1190 92 Uthai Thani 0 5651 1414-5 0 5651 1962

Uttaradit

93 Lotus Uttaradit 0 5540 9695-6 0 5540 9713 94 Uttaradit 0 5544 1829-31 0 5541 2082

No. Branch Tel. Fax

Northeast 85 Branches

Lampang

45 Big-C Lampang 0 5432 4554 0 5432 5244 46 Thanon Chatchai Lampang 0 5422 4830-1 0 5422 1994 47 Thanon Rob Wiang 0 5432 3501-4 0 5422 7676 Lampang

Lamphun

48 Big-C Lamphun 0 5357 5512-4 0 5357 5616 49 Lamphun 0 5356 1115-7 0 5356 1118 50 Lamphun Industrial Estate 0 5358 1376-7 0 5358 2304 51 Li 0 5397 9777-8 0 5397 9779 52 Pa Sang 0 5355 7264-8 0 5352 0227

Mae Hong Son

53 Mae Hong Son 0 5362 0337-9 0 5361 1557 54 Pai 0 5369 9119 0 5369 9285

Nakhon Sawan

55 Big-C Nakhon Sawan 0 5623 3241-5 0 5623 3141 (V-Square) 56 Lat Yao 0 5631 7640-2 0 5627 1438 57 Nong Bua 0 5632 3396-7 0 5625 1053 58 Takhli 0 5626 1520-1 0 5626 1972 59 Tha Tako 0 5636 0636-8 0 5624 9330 60 Thanon Kosi 0 5631 2885-8 0 5622 5202 Nakhon Sawan 61 Thanon Sai Asia 0 5622 9120-1 0 5622 9122 Nakhon Sawan 62 Thanon Sawanwithi 0 5631 1500-5 0 5622 1581 Nakhon Sawan

Nan

63 Nan 0 5471 0162 0 5471 0566 64 Pua 0 5479 1106-7 0 5479 1108

Phayao

65 Chiang Kham 0 5441 6340-3 0 5445 1432 66 Chun 0 5442 0186-7 0 5445 9033 67 Phayao 0 5441 2209-16 0 5443 1774 68 Si Yaek Mae Tam Phayao 0 5441 2526-9 0 5441 2530

Phetchabun

69 Dong Khui 0 5676 9223-5 0 5676 9226 70 Lom Sak 0 5674 6048-9 0 5670 1119 71 Phetchabun 0 5672 2262-3 0 5671 1163 72 Sap Samo Thot 0 5673 1168 0 5673 1169 73 Talat Huai Phai 0 5675 0045-8 0 5675 0050 74 Tesco Lotus Phetchabun 0 5672 6033-7 0 5672 6022

Amnat Charoen 1 Amnat Charoen 0 4527 0803-4 0 4551 1560 Bung Kan 2 Bung Kan 0 4249 1667-9 0 4249 1666 3 Pak Khat 0 4240 4260-4 0 4248 0016 Buri Ram 4 Buri Ram 0 4461 1056 0 4461 2590 5 Nang Rong 0 4462 4466-8 0 4463 1863 6 Prakhon Chai 0 4465 2008-10 0 4467 1483 7 Satuk 0 4462 7407-9 0 4468 1325



38 Khon Buri 0 4444 8011-2 0 4444 8012 39 Lotus Pak Chong 0 4432 8744-7 0 4432 8866 40 Pak Chong 0 4428 0383-6 0 4431 1387 41 Pak Thong Chai 0 4428 3970-1 0 4444 1433 42 Phimai 0 4428 7403-6 0 4447 1394 43 Sam Yaek Pak Thong Chai 0 4421 3542-3 0 4421 3541 Nakhon Ratchasima 44 Si Khiu Nakhon Ratchasima 0 4441 3202-6 0 4441 3207 45 Soeng Sang 0 4444 7150-4 0 4444 7079 46 Thanon Chomphon 0 4424 2526 0 4425 3225 Nakhon Ratchasima 47 Thanon Chomsurangyat 0 4425 1041-5 0 4425 1046 Nakhon Ratchasima 48 Thanon Mittraphap 0 4426 8239-42 0 4425 1367 Nakhon Ratchasima 49 The Mall 0 4428 8490-2 0 4428 8493 Nakhon Ratchasima 50 Wang Nam Khieo 0 4422 8023-5 0 4422 8026

Nong Bua Lamphu

51 Nong Bua Lum Phu 0 4236 0843-7 0 4236 0852 52 Si Bun Ruang 0 4235 3910-1 0 4235 3912

Nong Khai

53 Big Jieng Nong Khai 0 4242 3250-1 0 4242 3306 54 Nong Khai 0 4241 1669-70 0 4241 1058 55 Si Chiang Mai Nong Khai 0 4240 6503-5 0 4245 1449 56 Tha Bo 0 4243 1329-31 0 4243 1332

Roi Et

57 Roi Et 0 4352 2790-1 0 4351 2426 58 Thanon Thevaphiban Roi Et 0 4351 3021-2 0 4351 3023

Sakon Nakhon

59 Phang Khon 0 4273 4928-30 0 4277 1282 60 Sakon Nakhon 0 4273 3581-2 0 4271 1712 61 Sawang Daen Din 0 4272 1588-90 0 4272 1592

Si Sa Ket

62 Big-C Si Sa Ket 0 4563 4363-5 0 4563 4497 63 Kantharalak 0 4566 1159 0 4566 1160 64 Lotus Uthumphon Phisai 0 4569 2310-1 0 4569 2720 65 Si Sa Ket 0 4562 0708 0 4561 2874 66 Uthumphon Phisai 0 4569 1202-4 0 4569 1440

Surin

67 Samrong Thap 0 4456 9098-9 0 4456 9103 68 Sangkha 0 4457 1071-3 0 4457 1020 69 Surin 0 4451 1543 0 4451 4416

Chaiyaphum

8 Chaiyaphum 0 4483 8015-7 0 4481 1267 9 Kaeng Khro 0 4488 2754 0 4488 2758 10 Phu Khieo 0 4484 4900-2 0 4486 1498 11 Thep Sathit 0 4485 7005 0 4485 7131

Kalasin

12 Kalasin 0 4381 1024 0 4381 1497

Khon Kaen

13 Ban Phai 0 4327 2433-4 0 4327 2435 14 Big-C Khon Kean 0 4322 7187-91 0 4322 7192 15 Central Plaza Khon Kaen 0 4328 8060-4 0 4328 8065 16 Chum Phae 0 4331 1027 0 4331 1007 17 Khon Kaen University 0 4320 4434-8 0 4320 4439 18 Kranuan 0 4325 1276 0 4325 1683 19 Lotus Khon Kaen 0 4347 2621-5 0 4347 2626 20 Muang Phon 0 4341 4132 0 4341 4138 21 Thanon Kasikon 0 4324 1901-5 0 4324 1908 Thung Sang Khon Kaen 22 Thanon Mittraphap 0 4332 5519-24 0 4332 5442 Khon Kaen 23 Thanon Na Muang Khon Kaen 0 4322 5131-3 0 4322 5069 24 Thanon Pracha Samoson 0 4333 3761-7 0 4323 7709 Khon Kaen 25 Thanon Sri Chan Khon Kaen 0 4332 6154-5 0 4332 6156 Loei 26 Loei 0 4281 1080 0 4281 1443 27 Wang Saphung 0 4285 0920-2 0 4284 1043 Maha Sarakham 28 Maha Sarakham 0 4374 0920-4 0 4371 1242 29 Wapi Pathum 0 4379 9375-8 0 4379 9380 Mukdahan 30 Mukdahan 0 4263 1200-5 0 4263 1206 31 Talat Mukdahan 0 4261 1655 0 4261 1620 Nakhon Phanom 32 Nakhon Phanom 0 4252 2896-7 0 4251 1411 33 Si Songkhram 0 4259 9160-2 0 4259 9165 34 Tha Uthen 0 4258 1117-8 0 4258 1116 Nakhon Ratchasima 35 Cho Ho Nakhon Ratchasima 0 4492 8955-9 0 4492 8960 36 Dan Khun Thot 0 4420 4875-8 0 4420 4874 37 Hua Tha Le 0 4425 1372-4 0 4425 6394 Nakhon Ratchasima



No. Branch Tel. Fax

East 89 Branches

13 Tha Mai 0 3935 6810-2 0 3943 1547 14 Thanon Sri Rong 0 3932 5964-7 0 3932 1172 Muang Chanthaburi 15 Thanon Triratana 0 3932 1822-3 0 3932 1824 Chanthaburi

Chon Buri

16 Amata Nakorn Industrial 0 3821 3555-8 0 3821 3560 Estate Chon Buri 17 Amata Nakorn Industrial 0 3845 7596-7 0 3845 7598 Estate Chon Buri 2 18 Ban Bung 0 3844 3097-8 0 3844 3707 19 Bang Phra Chon Buri 0 3835 8259-63 0 3835 8264 20 Big-C Chon Buri 2 0 3838 7910-4 0 3838 7915 (Yaek Ang Sila) 21 Big-C Pattaya 3 0 3842 7630-2 0 3842 7745 (Pattaya Klang) B 22 Bo Thong 0 3821 1001-3 0 3821 1005 23 Bo Win Chon Buri 0 3834 6654-5 0 3834 6656 24 Central Center Pattaya 0 3841 5273-6 0 3841 5277 25 Central Festival 0 3804 3260-4 0 3804 3265 Pattaya Beach 26 Central Plaza Chon Buri 0 3805 3616-20 0 3805 3621 27 Don Hua Lo 0 3814 9611-5 0 3814 9616 (Amata Nakorn Chon Buri) 28 Harbor Mall Laem Chabang 0 3849 3488-92 0 3849 3582 29 Ko Sichang 0 3821 6131-2 0 3821 6133 30 Laem Chabang 0 3849 3624-7 0 3849 3628 31 Laem Thong Bang Saen 0 3815 3900-4 0 3815 3905 32 Lotus Pattaya Tai 0 3841 2661-2 0 3841 3508 33 Noen Plap Wan Chon Buri 0 3840 6305-6 0 3840 6348 34 Nong Mon Chon Buri 0 3839 2601-3 0 3839 2604 35 Nong Pru 0 3829 2444-8 0 3829 2450 36 Pattaya Klang 0 3842 5583-8 0 3842 5582 37 Pattaya Tai 0 3842 8513-5 0 3842 7696 38 Phan Thong Chon Buri 0 3845 2791-5 0 3845 2796 39 Phanat Nikhom 0 3847 3080-3 0 3847 3085 40 Robinson Si Racha 0 3831 4391-3 0 3832 4368 41 Royal Garden Plaza Pattaya 0 3841 6972-4 0 3841 6997 42 Saha Industrial Park 0 3876 2787-90 0 3876 2791 Si Racha 43 Sattahip 0 3873 9351-3 0 3843 7666 44 Si Racha 0 3831 1194-5 0 3832 2476 45 Soi Bua Khao Pattaya 0 3841 6989-93 0 3841 6994 46 Talat Ko Pho 0 3820 9101-3 0 3820 9104 47 Talat Na Klua 0 3836 7867-9 0 3822 5664 48 Talat Rong Po Chon Buri 0 3823 4069-71 0 3823 4457

Ubon Ratchathani

70 Det Udom 0 4536 1488-9 0 4536 1199 71 Phibun Mangsahan 0 4520 4817-9 0 4544 1871 72 Sunee Tower 0 4547 5921-5 0 4547 5926 Ubon Ratchathani 73 Thanon Chayangkun 0 4526 1598-9 0 4524 2803 Ubon Ratchathani 74 Thanon Phrom Thep 0 4524 3470-3 0 4525 5675 Ubon Ratchathani 75 Warin Chamrap 0 4526 9416-8 0 4526 9415

Udon Thani

76 Ban Dung 0 4227 1097-8 0 4227 1100 77 Central Plaza Udon Thani 0 4234 3906-8 0 4234 3920 78 Kumphawapi 0 4233 1992 0 4233 1993 79 Nam Som 0 4228 9174-8 0 4228 9179 80 Talat Ban Huai Udon Thani 0 4224 6419 0 4224 6274 81 Talat Muang Thong 0 4224 7050-1 0 4224 7044 Charoensri Udon Thani 82 Tesco Lotus Nadi 0 4213 0575-9 0 4213 0580 Udon Thani 83 Thanon Prajak Udon Thani 0 4224 8570-4 0 4222 2416 84 Udon Thani 0 4224 1121-2 0 4224 3320

Yasothon

85 Yasothon 0 4571 2592-3 0 4571 2679

Chachoengsao

1 Bang Khla 0 3854 1847 0 3854 1391 2 Bang Pakong 0 3883 2449-51 0 3853 2815 3 Bang Wua 0 3884 1040-2 0 3884 1043 4 Big-C Chachoengsao 2 0 3851 2581-2 0 3851 2279 (Thanon Si Sothon) 5 Bus Station Chachoengsao 0 3851 6102-3 0 3881 2087 6 Chachoengsao 0 3881 6296 0 3851 2195 7 Phanom Sarakham 0 3855 1464-5 0 3855 1025 8 Suwinthawong 0 3859 3470-3 0 3859 3475 Chachoengsao 9 Talat Khlong Suan 0 3859 5061-2 0 3859 5063

Chanthaburi

10 Khlung 0 3944 1659 0 3944 1367 11 Robinson Chanthaburi 0 3932 8804-8 0 3932 8809 12 Soi Dao 0 3938 1384-6 0 3938 1387



No. Branch Tel. Fax

South 84 Branches

49 Tesco Lotus Amata Nakorn 0 3845 7415-9 0 3845 7420 Chon Buri 50 Tesco Lotus Bo Win 0 3811 7048-52 0 3811 7053 51 Thanon Assumption 0 3833 8455-9 0 3833 8453 Si Racha 52 Thanon Chai Hat Pattaya 0 3805 2274-8 0 3805 2279 53 Thanon Chaloem Phrakiat 0 3841 3853-5 0 3841 3874 Pattaya 54 Thanon Liab Chai 0 3823 6264-8 0 3823 6269 Hat Chomtien 55 Thanon Pattaya-Na Klua 0 3842 0960-2 0 3842 0358 56 Thanon Phraya Satcha 0 3827 6010-2 0 3827 7854 Chon Buri 57 Thanon Sai Om Muang 0 3827 1995 0 3879 8993 Chon Buri 58 Thanon Sukhumvit 0 3827 3862-6 0 3827 3867 Chon Buri 1 59 Thanon Sukhumvit 0 3827 2055-7 0 3827 2058 Chon Buri 2 60 Thanon Sukhumvit 0 3879 4689-92 0 3879 4593 Chon Buri 3 (Si Yaek Chalerm Thai) 61 Thanon Sukhumvit Na Klua 0 3872 7450-2 0 3872 7454 62 Thanon Sukhumvit Pattaya 0 3841 6859-63 0 3841 6864 63 Thanon Wachira Prakan 0 3827 3850-5 0 3827 3856 Chon Buri 64 The Avenue Pattaya 0 3805 2240-4 0 3805 2245 Prachin Buri 65 Industrial Park 304 0 3741 4537-41 0 3741 4542 66 Kabin Buri 0 3728 1879 0 3728 1880 67 Prachin Buri 0 3721 1440-1 0 3721 2305 68 Si Mahosot 0 3727 6509-10 0 3727 6511 Rayong 69 Amata City Rayong 0 3865 0334-8 0 3865 0339 Industrial Estate 70 Ban Chang 0 3888 2875-7 0 3860 2577 71 Big-C Rayong 0 3801 1771-5 0 3801 1776 72 Eastern Seaboard 0 3865 6494-8 0 3865 6499 Industrial Estate Rayong 73 Klaeng 0 3888 4119-21 0 3867 1360 74 Laem Thong Rayong 0 3861 7084-7 0 3861 7209 75 Mab Ta Phut 0 3860 7518-21 0 3860 7525 76 Rayong 0 3861 1007 0 3861 3969 77 Talat Ban Phe Rayong 0 3889 6026-30 0 3889 6031 78 Thanon Chantha Udom 0 3861 6002-5 0 3861 6006 Rayong

Chumphon

1 Chumphon 0 7750 1418 0 7750 1029 2 Lang Suan Chumphon 0 7758 1490-2 0 7754 1071 3 Pak Nam Chumphon 0 7752 1013 0 7752 1620 4 Tha Sae 0 7759 9260-1 0 7759 9262

Krabi

5 Ao Nang Krabi 0 7569 5683-7 0 7569 5688 6 Krabi 0 7561 1333 0 7563 1465 7 Lotus Krabi 0 7565 0902-6 0 7565 0907 8 Talat Kao Krabi 0 7566 3550-1 0 7566 3512

Nakhon Si Thammarat

9 Chandi 0 7548 6490-3 0 7548 6446 10 Lotus Nakhon Si Thammarat 0 7532 4964-5 0 7532 4486 11 Nakhon Si Thammarat 0 7531 2085-9 0 7534 2891 12 Robinson Nakhon 0 7534 6317-21 0 7534 6322 Si Thammarat 13 Sahathai Plaza Thung Song 0 7542 0078-80 0 7541 2828 14 Talat Hua It 0 7534 5771-2 0 7534 5773 15 Tha Sala 0 7552 1337-8 0 7552 1336 16 Thung Song 0 7533 2423-5 0 7541 1798

Narathiwat

17 Narathiwat 0 7351 1360 0 7351 1231 18 Rue Soh 0 7357 1186-7 0 7357 1196 19 Sungai Kolok 0 7361 1578-9 0 7361 2455

Sa Kaeo

79 Aranyaprathet 0 3723 1272 0 3723 1072 80 Khlong Hat 0 3751 2251-4 0 3751 2249 81 Sa Kaeo 0 3722 0522-3 0 3724 1022 82 Talat Rong Klua 0 3723 0217-9 0 3722 6079 Aranyaprathet 83 Tesco Lotus Aranyaprathet 0 3754 1618-21 0 3754 1622 84 Wang Nam Yen 0 3725 1002-3 0 3725 1001

Trat

85 Khlong Yai 0 3958 1123-4 0 3958 1255 86 Ko Chang 0 3955 1509-10 0 3955 1508 87 Laem Ngop 0 3959 7045-6 0 3953 8297 88 Talat Thetsaban Trat 0 3952 4851-5 0 3952 4856 89 Trat 0 3952 0569-73 0 3953 2857



Pattani

20 Pa Lat 0 7348 5181 0 7348 5186 21 Pattani 0 7331 1518-20 0 7333 1039

Phang Nga

22 Khao Lak Phang Nga 0 7648 5380-4 0 7648 5385 23 Phang Nga 0 7643 0529-30 0 7641 1888 24 Talat Yan Yao 0 7642 1555 0 7642 1389 25 Thai Muang 0 7657 1501 0 7657 1203

Phatthalung

26 Phatthalung 0 7462 7808-9 0 7461 2214

Phuket

27 Central Festival Phuket 0 7624 9981-3 0 7624 9985 28 Choeng Talay Phuket 0 7627 1490-3 0 7632 4522 29 Ha Yaek Chalong Phuket 0 7638 1388-9 0 7638 1634 30 Hat Kamala Phuket 0 7638 6039-43 0 7638 6044 31 Hat Karon Phuket 0 7639 8041-5 0 7639 8055 32 Hat Kata Phuket 0 7633 0573-6 0 7633 0699 33 Hat Patong 0 7634 0447-9 0 7634 0198 34 Jung Ceylon Phuket 0 7636 6060-4 0 7636 6065 35 Lotus Chaofah Phuket 0 7621 6836-7 0 7621 6848 36 Lotus Phuket 0 7661 2794-8 0 7661 2799 37 Lotus Rawai Phuket 0 7638 3423-4 0 7638 3701 38 Phuket 0 7625 6400-1 0 7621 3561 39 Samkong Phuket 0 7621 7011-2 0 7621 7450 40 Thalang Phuket 0 7631 1588-90 0 7631 1584 41 Thanon Na Nai Hat Patong 0 7634 4790-2 0 7634 4927 42 Thanon Pracha Nukhro 0 7634 1152-3 0 7629 3253 Hat Patong 43 Thanon Thep Krasattri 0 7637 3520-4 0 7637 3525 Phuket 44 Tilok Center Phuket 0 7621 8068-70 0 7621 8074

Ranong

45 Ranong 0 7783 2188-9 0 7781 1345 46 Thanon Saphan Pla Ranong 0 7783 5216-8 0 7783 5219 Satun 47 Satun 0 7473 0431-5 0 7472 1358 Songkhla 48 Big-C Hat Yai 2 0 7446 9185-9 0 7446 9190 (Thanon Phetkasem) 49 Chong Khao-Mo O Hat Yai 0 7426 2631-4 0 7426 2637 50 Hat Yai Nai 0 7425 7840-2 0 7425 4843 51 Khlong Ngae 0 7445 2757-61 0 7445 2762 52 Padang Besa 0 7452 1977-8 0 7452 1980

53 Robinson Hat Yai 0 7422 3473-6 0 7422 3509 54 Songkhla 0 7444 0420-3 0 7432 1071 55 Thanon Kanchanawanit 0 7455 9159-61 0 7455 9408 Hat Yai 56 Thanon Lop Buri Ramet 0 7421 4450-4 0 7421 4455 Hat Yai 57 Thanon Nakhon Nai 0 7432 1063-4 0 7432 1065 Songkhla 58 Thanon Phetkasem Hat Yai 0 7436 6151-2 0 7424 6923 59 Thanon Ratthakan Hat Yai 0 7423 9119-22 0 7423 9129 60 Thanon Saiburi Songkhla 0 7448 7247-9 0 7431 3322 61 Thanon Si Phuwanat 0 7435 4727-9 0 7423 5770 Hat Yai 62 Thanon Supphasan 0 7422 0884 0 7424 5233 Rangsan Hat Yai

Surat Thani

63 Ban Ta Khun 0 7739 7003-4 0 7739 7055 64 Chai Buri 0 7736 7141-3 0 7736 7150 65 Chaweng 2 Ko Samui 0 7742 2252 0 7742 2762 66 Chaweng 3 Ko Samui 0 7741 3243 0 7741 4223 (Living Plaza) 67 Chaweng Ko Samui 0 7743 0267-8 0 7743 0494 68 Coliseum Surat Thani 0 7791 0035-9 0 7791 0040 69 Ko Pha-ngan 0 7737 7848-50 0 7737 7852 70 Ko Samui 0 7742 1200-1 0 7742 0141 71 Lamai Ko Samui 0 7742 4305-6 0 7742 4619 72 Lotus Surat Thani 0 7791 0056-60 0 7791 0061 73 Mae Nam Ko Samui 0 7724 8305-9 0 7724 8310 74 Phunphin 0 7731 1033 0 7731 1000 75 Si Yaek Sang Phet 0 7721 8392 0 7721 9594 Surat Thani 76 Surat Thani 0 7727 2200 0 7728 3972 77 Tesco Lotus Lamai 0 7741 8633-5 0 7741 8909 Ko Samui 78 Thanon Talat Mai 0 7728 4093-5 0 7728 4096 Surat Thani 79 Wiang Sa 0 7736 1661-3 0 7736 2007

Trang

80 Kantang 0 7523 8100-4 0 7523 8111 81 Thanon Choem Panya 0 7521 9681-2 0 7521 9853 Trang 82 Trang 0 7521 0137-8 0 7521 8200

Yala

83 Betong 0 7324 5806-7 0 7323 1386 84 Yala 0 7324 0816-8 0 7321 4190


No. Foreign Exchange Booth Tel. Fax

1 Airport Link Phaya Thai 0 2642 4071 0 2642 4072 Station 2 Central World Plaza 0 2251 1393 0 2251 1392 3 Chatuchak Plaza 0 2265 9502-6 0 2265 9507 4 City Complex Pratu Nam 0 2253 1196 0 2253 1197 5 Mahboonkrong Center 1 0 2216 4820-2 0 2216 4820-2 ext. 19 ext. 20 6 Mahboonkrong Center 2 0 2611 7104 0 2620 9973 7 Money Park 0 2686 3936-7 0 2686 3943 Mahboonkrong Center 8 Na-Na Nua 0 2655 0735-40 0 2655 0741 ext. 120 9 Phat Phong 2 0 2237 1902-6 0 2237 1930 10 Platinum Fashion Mall 0 2121 9745 0 2121 9746 11 Silom Soi 22 0 2235 2540-4 0 2235 2545 12 Soi Rambutri 1 0 2629 5031 0 2629 5032 13 Soi Rambutri 2 0 2282 8628-9 0 2282 8661 14 Soi Sukhumvit 4 0 2253 1280 0 2253 1281 15 Suan Chatuchak 0 2272 4790-3 0 2272 4802 Weekend Market 16 Sukhumvit 1 (Bumrungrad) 0 2255 2324-7 0 2255 2328 ext. 107 17 Sukhumvit 11 0 2253 8623-4 0 2255 8600 18 Sukhumvit 15 0 2253 7381-5 0 2253 7386 19 Sukhumvit 33 (Bang Kapi) 0 2261 0150-7 0 2261 0164 ext. 144 20 Sukhumvit 6 0 2255 1861-5 0 2255 1866 (Two Pacific Place Building) 21 Thanon Khao San 1 0 2282 8959 0 2282 4122 22 Thanon Khao San 2 0 2282 7367 0 2282 7368 23 Thanon Khao San 3 0 2280 5904-8 0 2280 5909 24 Thanon Khao San 4 0 2280 2798 0 2280 2799 25 Thanon Phetchaburi 17 0 2255 5320-4 0 2255 5325 ext. 108 26 Wat Trai Mit 0 2221 9184 0 2221 9185

FOREIGN EXCHANGE BOOTH

26 Bangkok Branches 73 Upcountry Branches

No. Foreign Exchange Booth Tel. Fax

Chiang Mai

1 Night Bazaar 0 5381 9117-9 0 5327 3552 2 Thanon Tha Phae 0 5327 0151-8 0 5328 2679 Chiang Mai ext. 143

Chon Buri

3 Big-C Pattaya 3 0 3842 1750 0 3842 1751 (Pattaya Klang) 4 Carlton Pattaya Hotel 0 3842 8781 0 3842 8782 5 Central Festival 0 3804 3508 0 3804 3509 Pattaya Beach 6 Chomtien 1 Pattaya 0 3825 2862 0 3825 2863 7 Chomtien 2 Pattaya 0 3823 2320 0 3823 2321 8 Diana Inn Pattaya Hotel 0 3841 3440 0 3841 3441 9 Grand Jomtien Palace 0 3823 3628 0 3823 3769 Hotel Pattaya 10 Pattaya Klang 0 3842 5583 0 3842 5582 11 Pattaya Tai 2 0 3842 8511 0 3842 7696 ext. 150 12 PS Plaza Pattaya 0 3842 5316 0 3842 5929 13 Royal Garden Plaza 0 3841 6972-4 0 3841 6996 Pattaya ext. 109 14 Soi Bua Khao Pattaya 1 0 3841 6989-93 0 3841 6994 15 Soi Bua Khao Pattaya 2 0 3842 6170 0 3842 6171 16 Soi Bua Khao Pattaya 3 0 3841 6421 0 3841 6422 17 Summer Beach Hotel 0 3823 1845 0 3823 1846 Chomtien 18 Tesco Lotus Pattaya Tai 0 3841 3342 0 3841 2662 ext. 109 19 Thanon Chai Hat Pattaya 0 3805 2274-8 0 3805 2279 20 Thanon Chai Hat Pattaya 1 0 3842 1403 0 3842 6361 21 Thanon Chai Hat Pattaya 3 0 3841 3427 0 3841 3428 Pattaya Tai 22 Thanon Chai Hat Pattaya 4 0 3841 6430 0 3841 6431 Pattaya Klang 23 Thanon Chai Hat Pattaya 0 3841 5849 0 3841 5850 Soi 13/4 24 Thanon Liab Chai 0 3823 6264-8 0 3823 6269 Hat Chomtien ext. 109 25 Thanon Pattaya Sai 2 0 3841 6423 0 3841 6424 26 Thanon Pattaya Sai 2 0 3842 6210 0 3842 6211 (Pattaya Klang) 27 Thanon Pattaya Sai 2 0 3842 1630 0 3842 1680 (Pattaya Nua)


K-SAFE DEPOSIT BOX CENTER

Bangkok

No. Foreign Exchange Booth Tel. Fax No. Foreign Exchange Booth Tel. Fax

28 Thanon Pattaya-Na Klua 0 3842 0960-2 0 3842 0358 29 Thanon Phra Tamnak 0 3841 6713 0 3841 6714 Pattaya 30 The Avenue Pattaya 0 3805 2240-4 0 3805 2245 31 Walking Street Pattaya 0 3842 1345 0 3842 9429

Phang Nga

32 Khao Lak Phang Nga 1 0 7648 5380-4 0 7648 5385 33 Khao Lak Phang Nga 2 0 7648 5386 0 7648 5387

Phuket

34 Amata Resort Hat Patong 0 7634 0346 0 7634 0407 35 Ha Yaek Chalong Phuket 0 7638 1710-1 0 7638 1634 36 Hat Kamala Phuket 0 7638 6039-43 0 7638 6044 37 Hat Karon Phuket 1 0 7639 8041-5 0 7639 8055 ext. 109 38 Hat Karon Phuket 2 0 7633 3551 0 7633 3552 39 Hat Karon Phuket 3 0 7639 8388 0 7639 8389 40 Hat Kata Phuket 1 0 7633 0573-6 0 7633 0699 41 Hat Kata Phuket 2 0 7633 3010 0 7633 3011 42 Hat Kata Phuket 3 0 7633 0670 0 7633 0671 43 Hat Kata Phuket 4 0 7633 1005 0 7633 1006 44 Hat Kata Phuket 5 0 7633 0817 0 7633 0818 45 Hat Kata Phuket 6 0 7633 0824 0 7633 0825 46 Hat Kata Phuket 7 0 7633 0961 0 7633 0962 47 Hat Patong 1 0 7634 0447-9 0 7634 0198 ext. 114 48 Hat Patong 2 0 7634 0060 0 7634 0069 49 Jung Ceylon Phuket 1 0 7636 6060-4 0 7636 6065 50 Jung Ceylon Phuket 2 0 7636 6745 0 7636 6746 51 Jung Ceylon Phuket 3 0 7636 6741 0 7636 6742 52 Karon Sea Sands Resort 0 7639 6429 0 7639 6430 53 Mr. Good’s Seafood 0 7634 0167 0 7634 0168 Patong 54 Ocean Plaza Hat Patong 0 7634 1545 0 7634 1546

No. Branch Tel. Fax Business Hours

1 Lat Phrao 92 0 2530 4905 0 2530 4966 Monday - Friday 9.00 - 20.00 hrs., Saturday - Sunday 9.00 - 17.00 hrs. 2 Sukhumvit 6 0 2254 6848-9 0 2255 1866 Monday - Friday 9.00 - 20.00 hrs., Saturday - Sunday 9.00 - 17.00 hrs.

(Two Pacific Place Building)

55 Pisona Hat Patong 0 7634 6390 0 7634 6391 56 Thanon Bang La Patong 1 0 7634 3440 0 7634 3441 57 Thanon Bang La Patong 2 0 7634 0438 0 7634 0439 58 Thanon Na Nai 0 7634 4790-2 0 7634 4927 Hat Patong 59 Thanon Pracha Nukhro 0 7629 3198 0 7629 3253 Hat Patong 1 60 Thanon Pracha Nukhro 0 7634 1629 0 7634 1630 Hat Patong 2 61 Thara Patong Hotel 0 7634 6288 0 7634 6289 Phuket 62 Tony Resort Hat Patong 0 7634 3207 0 7634 3208

Prachuap Khiri Khan

63 Hat Hua Hin 0 3251 3858 0 3251 3859

Samut Prakan

64 Airport Link Suvarnabhumi 0 2134 6417 0 2134 6418 Station Surat Thani

65 Chaweng 2 Ko Samui 0 7742 2252 0 7742 2762 66 Chaweng 3 Ko Samui 0 7741 3243 0 7741 4223 (Living Plaza) 67 Chaweng Center 0 7741 3641 0 7741 3642 Ko Samui 68 Chaweng Ko Samui 0 7743 0267-8 0 7743 0494 69 Hat Chaweng 1 0 7741 3871 0 7741 3872 70 Hat Chaweng 2 0 7742 2690 0 7742 2692 71 Hat Chaweng 3 0 7741 4439 0 7741 4440 72 Lamai Ko Samui 0 7742 4616-8 0 7742 4619 ext. 107

Trat

73 Ko Chang 0 3955 1483-4 0 3955 1508


THE WISDOM EXCLUSIVE CENTER

Bangkok


1 Phahon Yothin Main Branch 0 2273 1212-6 0 2273 1234 Monday - Friday 8.30 - 15.30 hrs.

2 Silom Main Branch 0 2232 5001 0 2234 5145 Monday - Friday 8.30 - 15.30 hrs.

ext. 5220, 5248

3 Thanon Ratchada Phisek 0 2693 2463 0 2693 3240 Monday - Friday 8.30 - 15.30 hrs.

Huai Khwang ext. 148

4 Thanon Sathon 0 2238 2881-6 0 2238 2887 Monday - Friday 8.30 - 15.30 hrs.

5 Thanon Sua Pa 0 2226 4560-9 0 2225 6902 Monday - Friday 8.30 - 15.30 hrs.

Main Branch ext. 5600-1

6 Yaowarat 0 2623 3636 0 2226 4806 Monday - Friday 8.30 - 15.30 hrs.

ext. 113, 115

7 Central Bangna 2 0 2398 5820-1 0 2398 5827 Daily 11.00 - 20.00 hrs.

0 2398 5824-6

8 Sofitel So Bangkok Hotel 0 2562 7781-88 0 2562 7780 Daily 9.00 - 21.00 hrs.


9 Central Plaza Chiangmai 0 5390 3607 0 5390 3612 Daily 11.00 - 20.00 hrs.

Airport 2

Upcountry

THE WISDOM CORNER


1 Rat Burana Main Branch 0 2871 3650-5 0 2871 3645 Monday - Friday 8.30 - 15.30 hrs.

2 Siam Paragon 0 2610 9404-8 0 2610 9409 Daily 11.00 - 20.00 hrs.

3 Siam Square 0 2658 1755-9 0 2658 1754 Daily 10.00 - 18.00 hrs.

4 Wang Burapha 0 2623 7681-90 0 2225 0344 Monday - Friday 8.30 - 15.30 hrs.

5 Paradise Park 0 2325 9108-12 0 2325 9113 Daily 10.30 - 20.00 hrs.

6 Thanon Sukhumvit 55 0 2178 0904 0 2178 0909 Monday - Friday 8.30 - 15.30 hrs.

(Soi Thong Lo 20)

7 Central Ladprao 1 0 2541 1543 0 2541 1548 Daily 11.00 - 20.00 hrs.

8 Central Plaza Grand 0 2160 3813-7 0 2276 8725 Daily 11.00 - 20.00 hrs.

Rama 9

9 Central Rama III 0 2673 6338-9 0 2673 6240 Daily 11.00 - 20.00 hrs.

10 Sukhumvit 57 0 2392 2039 0 2390 0784 Monday - Friday 8.30 - 15.30 hrs.

0 2714 1089-94

Bangkok


THE WISDOM K-SAFE DEPOSIT BOX CENTER


1 Sukhumvit 6 0 2254 6848-9 0 2255 1866 Monday - Friday 9.00 - 20.00 hrs., Saturday - Sunday 9.00 - 17.00 hrs.

(Two Pacific Place Building)

2 Lat Phrao 92 0 2530 4905 0 2530 4966 Monday - Friday 9.00 - 20.00 hrs., Saturday - Sunday 9.00 - 17.00 hrs.

0 2530 4865

3 Sofitel So Bangkok Hotel 0 2562 7781-88 0 2562 7780 Daily 9.00 - 21.00 hrs.

Bangkok



18 Central Festival Phuket 0 7624 9981 0 7624 9985 Daily 11.00 - 20.00 hrs.

19 Thanon Sukhumvit Pattaya 0 3841 6859-63 0 3841 6864 Monday - Friday 8.30 - 16.30 hrs.

Upcountry

11 Sukhumvit 33 (Bang Kapi) 0 2261 0151-7 0 2261 0164 Monday - Friday 8.30 - 15.30 hrs.

12 Central World 0 2251 0231-5 0 2251 0236 Daily 11.00 - 20.00 hrs.

13 Maxvalu Phattanakan 0 2231 3374 0 2322 2589 Monday - Friday 9.00 - 18.00 hrs., Saturday - Sunday 10.00 - 18.00 hrs.

0 2722 1004-8

0 2722 2202

14 Thanon Thepharak Km. 16 0 2750 6193-5 0 2750 7328 Monday - Friday 8.30 - 15.30 hrs.

0 2750 7326-7

15 Chaeng Watthana 0 2562 8008 0 2562 8015 Monday - Friday 8.30 - 15.30 hrs.

Muang Thong Thani 0 2562 8001-7

Main Branch 0 2562 8009-14

16 Central Pin Klao 0 2424 3595-6 0 2424 2834 Daily 11.00 - 20.00 hrs.

0 2424 3990-2

17 Phat Phong 0 2637 0041-8 0 2637 0477 Monday - Friday 8.30 - 15.30 hrs.

0 2637 0470-4


Service Hours: Tuesday - Thursday 17.00 - 19.00 hrs.Able to make an appointment via K-Contact Center 0 2888 8888 ext. 09 (24 hrs.) at least 1 day before the meeting

Bangkok: 34 Branches

No. K-WePlan

1 All Seasons Place

2 Bang Bon

3 Bang Khae

4 Bang Khen

5 Bang Khun Thian

6 Bang Su

7 Bang Yikhan

8 Energy Complex (PTT)

9 Hua Mak

10 Kluai Nam Thai

11 Lat Krabang

12 Lat Phrao 25

13 Phahon Yothin Main Branch

14 Phat Phong

15 Phetkasem 51

16 Phra Khanong

17 Rat Burana Main Branch

18 Sanam Pao

19 Saphan Krung Thon

20 Saphan Luang

21 Saphan Mai Don Muang

22 Siam Square

23 Silom Main Branch

24 Sukhumvit 1 (Bumrungrad)

25 Sukhumvit 101

26 Sukhumvit 33 (Bang Kapi)

27 Thanon Nawamin 36

28 Thanon Phetchaburi Tat Mai

29 Thanon Ram Intra

30 Thanon Ramkhamhaeng 151

31 Thanon Ratchada Phisek Huai Khwang

32 Thanon Sua Pa Main Branch

33 Thon Buri

34 Wang Burapha

Upcountry: 173 BranchesCentral: 38 Branches

No. K-WePlan

Ang Thong

1 Pa Mok

Chai Nat

2 Chai Nat

Lop Buri

3 Ban Mi

Nakhon Nayok

4 Nakhon Nayok

Nakhon Pathom

5 Om Yai

6 Thanon Phetkasem Nakhon Pathom

Nonthaburi

7 Chaeng Watthana Muang Thong Thani

Main Branch

8 Thanon Ngam Wong Wan

Pathum Thani

9 Khlong 6 Thanyaburi

10 Nava Nakorn

11 Rangsit

12 Talat Si Mum Muang-Rangsit

Phetchaburi

13 Phetchaburi

14 Tha Yang

Phra Nakhon Si Ayutthaya

15 Ayutthaya

16 Thanon Rojana Ayutthaya

Prachuap Khiri Khan

17 Hua Hin

18 Pran Buri

No. K-WePlan

Ratchaburi

19 Ban Pong

20 Thanon Sri Suriyawong Ratchaburi

Samut Prakan

21 Bang Phli

22 Phra Pradaeng

23 Thanon Thepharak

Samut Sakhon

24 Ban Phaeo Lak Sam

25 Damnoen Saduak

26 Krathum Baen Samut Sakhon

27 Phanthai Norasing Samut Sakhon

28 Samut Sakhon

29 Talat Samut Sakhon

30 Thanon Ekkachai Samut Sakhon

31 Thanon Ekkachai-Photchae

32 Thanon Setthakit 1 Samut Sakhon

Saraburi

33 Phra Phutthabat

34 Saraburi

35 Thanon Sutbanthad Saraburi

Sing Buri

36 Sing Buri

Suphan Buri

37 Suphan Buri

38 Thanon Malaiman Suphan Buri

Data as of January 1, 2012

K-WePlan BRANCH


No. K-WePlan

Chiang Rai

1 Central Plaza Chiang Rai*

2 Chiang Khong

3 Chiang Rai

Chiang Mai

4 Big-C Chiang Mai (Don Chan)*

5 Big-C Chiang Mai 2 (Yaek San Dek)*

6 Central Plaza Chiang Mai Airport*

7 Central Plaza Chiang Mai Airport 2*

8 Chang Phuak Chiang Mai

9 Chiang Mai University

10 Mae Rim Chiang Mai

11 Mi Chok Plaza

(Thanon Chiang Mai-Mae Jo)

12 Night Bazaar

13 Talat Pratu Chiang Mai

14 Talat Warorot

15 Thanon Chang Klan Chiang Mai

16 Thanon Charoen Muang Chiang Mai

17 Thanon Moon Muang Chiang Mai

18 Thanon Nimmanhemin Chiang Mai

19 Thanon Suthep Chiang Mai

20 Thanon Tha Phae Chiang Mai

Kamphaeng Phet

21 Kamphaeng Phet

22 Khlong Khlung

Lampang

23 Thanon Chatchai Lampang

Lamphun

24 Lamphun

Mae Hong Son

25 Mae Hong Son

26 Pai

Nakhon Sawan

27 Thanon Kosi Nakhon Sawan

28 Thanon Sawanwithi Nakhon Sawan

North: 41 Branches

No. K-WePlan

Nan

29 Nan

Phayao

30 Chiang Kham

31 Chun

32 Si Yaek Mae Tam Phayao

Phetchabun

33 Phetchabun

34 Sap Samo Thot

Phichit

35 Phichit

Phitsanulok

36 Ha Yaek Khok Matum

Phrae

37 Phrae

Sukhothai

38 Sukhothai

Tak

39 Mae Sot

40 Tak

Uthai Thani

41 Nong Chang

No. K-WePlan

Northeast: 39 Branches

No. K-WePlan

Khon Kaen

5 Ban Phai

6 Chum Phae

7 Khon Kaen University

8 Kranuan

9 Thanon Kasikorn Thung Sang Khon Kaen

10 Thanon Mittraphap Khon Kaen

11 Thanon Na Muang Khon Kaen

12 Thanon Sri Chan Khon Kaen

Loei

13 Loei

Maha Sarakham

14 Maha Sarakham

Nakhon Phanom

15 Nakhon Phanom

Nakhon Ratchasima

16 Dan Khun Thot

17 Si Khiu Nakhon Ratchasima

18 Thanon Chomphon Nakhon Ratchasima

19 Thanon Chomsurangyat

Nakhon Ratchasima

20 Thanon Mittraphap Nakhon Ratchasima

21 The Mall Nakhon Ratchasima*

22 Wang Nam Khieo

Nong Khai

23 Nong Khai

24 Pak Khat

Roi Et

25 Roi Et

26 Thanon Thevaphiban Roi Et

Sakon Nakhon

27 Phang Khon

28 Sakon Nakhon

29 Sawang Daen Din

Si Sa Ket

30 Si Sa Ket

Amnat Charoen

1 Amnat Charoen

Buriram

2 Buri Ram

Chaiyaphum

3 Chaiyaphum

Kalasin

4 Kalasin


No. K-WePlan No. K-WePlan

Prachin Buri

19 Industrial Park 304

20 Prachin Buri

21 Si Mahosot

Rayong

22 Eastern Seaboard Industrial Estate Rayong

23 Mab Ta Phut

24 Rayong

25 Thanon Chantha Udom Rayong

Sa Kaeo

26 Wang Nam Yen

Trat

27 Talat Thetsaban Trat Branch

28 Trat

East: 28 Branches

No. K-WePlan

Chachoengsao

1 Bang Khla

2 Chachoengsao

Chanthaburi

3 Robinson Chanthaburi*

4 Thanon Triratana Chanthaburi

Chon Buri

5 Amata Nakorn Industrial Estate Chon Buri

6 Bo Win Chon Buri

7 Pattaya Klang

8 Phanat Nikhom

9 Si Racha

10 Soi Bua Khao Pattaya

11 Talat Ko Pho

12 Talat Na Klua

13 Thanon Chai Hat Pattaya

14 Thanon Liab Chai Hat Chomtien

15 Thanon Sukhumvit Chon Buri 1

16 Thanon Sukhumvit Chon Buri 2

17 Thanon Sukhumvit Na Klua

18 Thanon Wachira Prakan Chon Buri

South: 27 Branches

No. K-WePlan

Chumphon

1 Chumphon

2 Lang Suan Chumphon

Nakhon Si Thammarat

3 Chandi

4 Nakhon Si Thammarat

5 Thung Song

Narathiwat

6 Sungai Kolok

Phang Nga

7 Phang Nga

8 Thai Muang

Phatthalung

9 Phatthalung

No. K-WePlan

Phuket

10 Hat Kata Phuket

11 Jung Ceylon Phuket*

12 Phuket

13 Thalang Phuket

14 Thanon Na Nai Hat Patong

Ranong

15 Ranong

Satun

16 Satun

Songkhla

17 Chong Khao-Mo O Hat Yai

18 Robinson Hat Yai*

19 Thanon Phetkasem Hat Yai

Surat Thani

20 Chai Buri

21 Chaweng Ko Samui

22 Phunphin

23 Si Yaek Sang Phet Surat Thani

24 Thanon Talat Mai Surat Thani

Trang

25 Thanon Choem Panya Trang

26 Trang

Yala

27 Yala

Data as of January 1, 2012

* Note: Service Hours (Branch in Department Store): Tuesday - Thursday 18.00 - 20.00 hrs.

Surin

31 Surin

Ubon Ratchathani

32 Sunee Tower Ubon Ratchathani

33 Thanon Chayangkun Ubon Ratchathani

Udon Thani

34 Ban Dung

35 Nam Som

36 Talat Muang Thong Charoensri Udon Thani

37 Thanon Prajak Udon Thani

38 Udon Thani

Yasothon

39 Yasothon


No. Corporate Business Center Tel. Fax

1 Corporate Business Center 0 2470 2951 -

Phahon Yothin


7 Upcountry Branches

Chon Buri

1 Corporate Business Center 0 3845 8972-5 0 3845 8976

Amata Nakorn Industrial

Estate Chon Buri 2


Laem Chabang

Nakhon Ratchasima

3 Corporate Business Center 0 4425 8723 0 4425 8883

Hua Tha Le

Nakhon Ratchasima

No. Corporate & SME Service Center Tel. Fax

1 Corporate & SME Service 0 2282 1822-3 0 2282 1839 Center Bang Lamphu 0 2282 1838 2 Corporate & SME Service 0 2585 7468 0 2585 9767 Center Bang Pho 0 2585 9747 3 Corporate & SME Service 0 2586 7800 0 2586 7292 Center Bang Su 0 2586 7255-6 4 Corporate & SME Service 0 2424 2543 0 2424 2166 Center Bang Yikhan 0 2424 2160 0 2424 2163 5 Corporate & SME Service 0 2877 5641-7 0 2476 0620 Center Dao Khanong ext. 200-7, 301-4 0 2877 5697 6 Corporate & SME Service 0 2537 0366-7 0 2537 0368 Center Energy Complex (PTT) 7 Corporate & SME Service 0 2377 3522-3 0 2377 3357 Center Hua Mak 0 2377 3351 8 Corporate & SME Service 0 2314 2313-16 0 2314 2317 Center Thanon Phattanakan 20


Nakhon Sawan


Thanon Sai Asia

Nakhonsawan

Songkhla


Thanon Phetkasem Hat Yai

Phuket


Phuket

Surat Thani


Ko Samui


9 Corporate & SME Service 0 2367 3388-89 0 2367 3390 Center Kluai Nam Thai 10 Corporate & SME Service 0 2739 0191-5 0 2326 8303 Center Lat Krabang ext. 155-8 11 Corporate & SME Service 0 2513 1504 0 2513 1724 Center Lat Phrao 25 0 2513 1571 12 Corporate & SME Service 0 2273 1401 0 2273 1472 Center Phahon Yothin 0 2273 1403-11 0 2273 1635 13 Corporate & SME Service 0 2454 0278-9 0 2454 2606 Center Phetkasem 51 0 2454 2605 14 Corporate & SME Service 0 2214 6450-2 0 2214 6453 Center Saphan Luang 15 Corporate & SME Service 0 2634 0580-9 0 2234 6178 Center Silom ext. 5420-30 0 2234 9650 0 2234 5141 16 Corporate & SME Service 0 2331 0875-7 0 2331 0878 Center Sukhumvit 101 17 Corporate & SME Service 0 2261 0133-8 0 2261 0145 Center Sukhumvit 33 ext. 201-4 (Bang Kapi)

CORPORATE & SME SERVICE CENTER

BangkokBusiness Hours: Monday - Friday 8.30 - 16.30 hrs.

1 Bangkok BranchBusiness Hours: Monday - Friday 8.30 - 16.30 hrs.

CORPORATE BUSINESS CENTER


No. Corporate & SME Service Center Tel. Fax No. Corporate & SME Service Center Tel. Fax

UpcountryCentral


Nakhon Pathom 1 Corporate & SME Service 0 2811 6845-6 0 2431 2042 Center Om Yai 0 2431 2043 Nonthaburi 2 Corporate & SME Service 0 2594 2940-2 0 2594 2943 Center Thanon Rattanathibet Bang Yai 3 Corporate & SME Service 0 2574 6576-7 0 2574 6569 Center Thanon 0 2574 6567 Chaeng Watthana

Pathum Thani

4 Corporate & SME Service 0 2533 0874-5 0 2533 0877 Center Khlong 2 Thanyaburi 0 2533 0883-4 5 Corporate & SME Service 0 2529 1572-3 0 2529 1522 Center Nava Nakorn 0 2529 1231 0 2529 1963

Phra Nakhon Si Ayutthaya

6 Corporate & SME Service 0 3535 1691-3 0 3535 1694 Center Hi Tech Industrial Estate Ayutthaya 7 Corporate & SME Service 0 3533 2293-4 0 3533 2295 Center Rojana Industrial Park

Ratchaburi

8 Corporate & SME Service 0 3222 2674-6 0 3222 1233 Center Ban Pong

Samut Prakan

9 Corporate & SME Service 0 2316 6642-3 0 2316 6646 Center Bang Phli 0 2316 6645 10 Corporate & SME Service 0 2134 1901-2 0 2134 1903 Center Customs Free Zone 0 2134 1904 Suvarnabhumi 11 Corporate & SME Service 0 2464 3153-4 0 2464 3578 Center Phra Pradaeng 0 2464 3577 12 Corporate & SME Service 0 2380 0601-3 0 2380 0604 Center Samrong (Pu Chao Center) 13 Corporate & SME Service 0 2395 3085 0 2387 1192 Center Samut Prakan 0 2395 3441 14 Corporate & SME Service 0 2324 3113-5 0 2324 3116 Center Talat Bang Pu Industrial Estate 15 Corporate & SME Service 0 2386 5165-7 0 2386 5168 Center Talat Nam Daeng 16 Corporate & SME Service 0 2178 2183-5 0 2178 2187 Center Thanon King Kaeo Samut Prakan

Samut Sakhon

17 Corporate & SME Service 0 3442 3445-7 0 3442 3448 Center Thanon Ekkachai Samut Sakhon 18 Corporate & SME Service 0 3481 6666 0 3481 6708 Center Thanon Setthakit 1 0 3481 6707 Samut Sakhon 0 3442 2395-6

18 Corporate & SME Service 0 2639 1314-6 0 2639 1317 Center Surawong 19 Corporate & SME Service 0 2254 5652-4 0 2254 5655 Center Thanon Phetchaburi 17 20 Corporate & SME Service 0 2552 8329-30 0 2552 8624 Center Thanon Ram Intra 0 2552 8623 21 Corporate & SME Service 0 2417 2361-3 0 2417 2364 Center Thanon Rama II 22 Corporate & SME Service 0 2284 3760-2 0 2284 3763 Center Thanon Rama III 23 Corporate & SME Service 0 2264 0072-4 0 2264 0083 Center Thanon Ratchada 0 2264 0080-2 Phisek (Sukhumvit-Rama IV) 24 Corporate & SME Service 0 2236 7642-3 0 2236 7646 Center Thanon Sathon 0 2236 7645 25 Corporate & SME Service 0 2399 4225-7 0 2398 0477

Center Thanon Sri Nakharin Km.9 26 Corporate & SME Service 0 2221 3131-8 0 2225 6575 Center Thanon Sua Pa ext. 6202-9 0 2226 1795 0 2226 4560-79 27 Corporate & SME Service 0 2518 2052 0 2518 2058 Center Thanon Serithai 46 0 2518 2054-5 (Suan Siam) 28 Corporate & SME Service 0 2223 7427-29 0 2223 7430 Center Wang Burapha


North


Chiang Mai

19 Corporate & SME Service 0 5328 2681 0 5328 2680

Center Thanon Tha Phae 0 5327 1677

Chiang Mai

Lamphun

20 Corporate & SME Service 0 5358 2693-4 0 5358 2695

Center Lamphun Industrial

Estate

East


Chon Buri


Center Ban Bung 0 3844 6334


Center Amata Nakorn

Industrial Estate Chon Buri


Center Laem Chabang 0 3849 3620-1 0 3849 3622


Center Pattaya Klang 0 3841 6220-1


Center Amata Nakorn 0 3834 6654-5

Industrial Estate Chon Buri II

Prachin Buri


Center Industrial Park 304

Rayong


Center Amata City Rayong

Industrial Estate


Center Eastern Seaboard

Industrial Estate Rayong


Center Mab Ta Phut 0 3860 7522

Northeast


Nakhon Ratchasima

21 Corporate & SME Service 0 4425 1752 0 4425 1727 Center Thanon Chomphon 0 4425 1773 Nakhon Ratchasima 0 4425 1776

Udon Thani

22 Corporate & SME Service 0 4222 4184-5 0 4224 7044 Center Talat Muang Thong 0 4222 4248-9 Charoensri Udon Thani

South


Phuket


Center Phuket

Songkhla


Center Thanon Phetkasem 0 7424 6716

Hat Yai

Surat Thani


Center Surat Thani


SME BUSINESS CENTER

No. SME Business Center Tel. Fax

32 Bangkok Branches

1 Bang Khun Non 0 2424 6573 0 2424 7716 0 2424 0897 2 Bang Khun Thian 0 2476 5721 0 2476 8608 3 Bangkae 0 2413 1316 0 2413 1319 4 Bangkhen 0 2513 7142 0 2513 7576 5 Bangmod 0 2428 6829 0 2428 2028 6 Dao Khanong 0 2476 3691-5 0 2476 8820 0 2877 5677 0 2877 5683 7 Hua Mak 0 2378 4561 0 2377 7544 0 2378 4567 8 Lat Phrao 25 0 2511 5890 0 2511 5899 9 Maxvalue Phattanakarn 0 2320 0059 0 2321 1972 0 2321 7033 0 2321 7030 10 Minburi 0 2518 1472 0 2518 1466 11 Phetkasem 51 0 2801 3630 0 2801 3635 12 Pinklao 0 2434 1520 0 2434 1575 13 Pravet 0 2328 8677 0 2328 8679 0 2328 7562 0 2328 7217 14 Si Yaek Wang Hin 0 2570 1861 0 2570 1865 0 2570 0510 0 2570 1783 15 Silom Main Branch 0 2634 4021 0 2234 7448 0 2237 2961 0 2237 2967 16 Sukhumvit 107 0 2399 4502 0 2399 4535 0 2399 4501 17 Sukhumvit 33 (Bang Kapi) 0 2261 4455-8 0 2261 4269 0 2260 2566 0 2260 2569 18 Thanon Suksawat 0 2476 5910 0 2476 5914 19 Thanon Bang Na-Trad 0 2397 3723 0 2397 3727 (Km.4) 0 2397 3729 0 2397 3731 20 Thanon Chaeng Watthana 0 2982 9927 0 2982 9767 0 2982 9929 0 2982 9768 21 Thanon Chan 0 2212 6974 0 2212 6942 22 Thanon Phetchaburi 17 0 2255 0142 0 2255 0146 23 Thanon Rangnam 0 2273 1221 0 2273 5313 24 Thanon Ratchadaphisek 0 2476 1667 0 2476 5611 (Taksin-Thaphra) 25 Thanon Ratchadaphisek 0 2562 7301 0 2562 7318 Huay Kwang (China) 26 Thanon Ratchadaphisek 0 2562 7319 0 2562 7336 Huay Kwang (Japan) 27 Thanon Ratchadaphisek 0 2273 3679 0 2276 5208 Huay Kwang 1 28 Thanon Ratchadaphisek 0 2273 3671 0 2276 5208 Huay Kwang 2 29 Thanon Rattanathibate 0 2594 2807 0 2594 2810 Bangyai 0 2594 2715 0 2594 2717 30 Thanon Sathon 0 2237 6474 0 2236 7152 31 Thanon Sua Pa 0 2634 4021 0 2234 7448 Main Branch 0 2223 1327 0 2222 5769 0 2225 0639 0 2222 5800 32 Thanon Tivanont (Kaerai) 0 2589 1891 0 2589 1994


Business Hours: Monday - Friday 8.30 - 16.30 hrs.

14 North Branches


1 Bang Phli 0 2317 1282 0 2317 1287 0 2316 7563 0 2316 7568 2 Big C Lop Buri 0 3642 4581 0 3642 4585 3 Hua Hin 0 3252 1270 0 3252 1330 4 Nakhonpathom 0 3425 4261 0 3425 4722 0 3425 4722 0 3425 4723 5 Nava Nakorn 0 2529 6302 0 2529 6310 0 2316 7563 0 2316 7568 6 Om Yai 0 2811 6570 0 2811 6475 7 Phra Pradaeng 0 2464 0691 0 2464 0812 8 Rangsit 0 2567 2366 0 2567 4828 0 2567 5108 9 Ratchaburi 0 3231 5052 0 3232 8166 10 Thanon Rojjana Ayutthaya 0 3533 7040 0 3533 7060 0 3533 5330 0 3533 5240 11 Sampan 0 3432 6450 0 3432 6432 12 Samut Prakarn 0 2388 0138 0 2388 0196 13 Samut Songkhram 0 3471 2014 0 3471 2018 14 Talat Bang Pa-in 0 3570 0356 0 3570 0360 Industrial Estate 15 Talat Chatchai Huahin 0 3251 5856 0 3251 2358 0 3260 1238 0 3260 2335 16 Thanon Malaiman 0 3552 5558 0 3552 6058 Supanburi 0 3552 6077 0 3552 6058 17 Thanon Setthakit 1 0 3442 4918 0 3442 4922 Samut Sakhon 0 3481 6956 0 3481 6959 0 3481 6674 0 3481 5966 18 Thanon Sudbantat 0 3621 1305 0 3621 1284 Saraburi 19 Thanon Surasongkhram 0 3641 4080 0 3641 1615 Lop Buri 0 3661 8534 0 3641 1419 20 Thepharak 0 2380 5724 0 2380 5732

82 Upcountry Branches20 Central Branches

1 Chiang Rai 0 5360 1746 0 5360 1750 0 5371 9780 0 5371 7490 0 5371 1515 0 5371 6720 2 Ha Yaek Khok Matum 0 5530 1130 0 5530 4976 Phitsanulok 3 Kamphaengphet 0 5571 7208 0 5571 4703 4 Payao 0 5448 4343 0 5448 4344 5 Petchabun 0 5374 3686 0 5674 3690 6 Phrae 0 5453 2856 0 5453 2853 0 5541 3753 0 5541 3935 0 5452 4707 0 5452 4749 7 Pichit 0 5661 3701 0 5661 5082



8 Si Yaek Sanambin 0 5320 2533 0 5320 2537 Chiang Mai 9 Sukhothai 0 5561 6364 0 5561 6314 0 5551 1074 0 5551 1188 10 Thanon Borom 0 5525 9310 0 5525 9417 Trailokkanat Phitsanulok 0 5525 9311 0 5525 9418 11 Thanon Chang Klan 0 5328 4991 0 5328 4950 Chiang Mai 12 Thanon Chatchai Lampang 0 5422 5145 0 5425 5147 0 5448 4343 0 5448 4344 13 Thanon Sawanwithi 0 5637 2155 0 5637 2158 Nakhon Sawan 0 5631 1850 0 5622 1580 0 5637 2089 14 Thanon Tha Phae 0 5328 0803 0 5328 0785 Chiang Mai


20 Northeast Branches


16 East Branches

1 Bang Pakong 0 3853 2628 0 3853 2627 2 Chachoengsao 0 3881 6300 0 3881 6297 0 3728 2426 0 3851 2262 3 Kabin Buri 0 3728 2426 0 3728 1188 4 Laem Chabang 0 3849 5150 0 3849 3833 5 Nongmon Chon Buri 0 3839 4054 0 3839 4005 6 Pattaya Tai 0 3842 1532 0 3842 1540 7 Rayong 0 3832 8347 0 3832 8352 0 3860 5589 0 3860 5605 0 3861 5603 0 3861 1178 8 Sriracha 0 3832 8347 0 3832 8352 9 Thanon Chantha Udom 0 3861 5801 0 3861 5804 Rayong 10 Thanon Phrayasatja 0 3882 4803 0 3828 3960 11 Thanon Srirongmuang 0 3932 5368 0 3932 5396 Chanthaburi 12 Thanon Sukhumvit 0 3879 0148 0 3879 0147 Chon Buri 1 13 Thanon Sukhumvit Naklua 0 3842 0202 0 3872 7454 14 Thanon Triratana 0 3932 1945 0 3932 1947 Chanthaburi 0 3932 1742 0 3932 1744 15 Sakaew 0 3728 1395 0 3728 1389 16 Bowin Chonburi 0 3833 7340 0 3833 7343


12 South Branches

1 Chumphon 0 7750 6651 0 7750 6654 0 7751 2189 0 7751 2191 2 Thanon Phetkasem Hat Yai 0 7422 3938 0 7422 5154 0 7423 5902 0 7423 6448 0 7333 1041 0 7333 1040 3 SongKhla 0 7431 6601 0 7431 6604 4 Talat Hua It 0 7534 4311 0 7534 4361 Nakhon Si Thammarat 5 Nakhon Si Thammarat 0 7534 4367 0 7534 5858 0 7534 4365 6 Trung 0 7559 0506 0 7559 0511 0 7559 0268 0 7521 7434 0 7559 0327 0 7559 0420 7 Krabi 0 7562 2120 0 7562 1480 8 Phuket 0 7621 4100 0 7621 4740 0 7625 6890 0 7625 6894 0 7621 4340 9 Surat Thani 0 7727 5971 0 7727 5975 10 Si Yaek Sangpetch 0 7727 5981 0 7727 5984 Surat Thani 0 7727 5985 0 7791 0124 11 Chaweng 2 Ko Samui 0 7741 3863 0 7741 3600 12 Pak Nam Chumphon 0 7752 1807 0 7752 1899

1 Buriram 0 4461 8741 0 4461 8736 2 Chaiyapoom 0 4481 3356 0 4481 3600 0 4481 6990 0 4481 6990 3 Hua Tha Le 0 4425 6984 0 4425 6985 Nakhon Ratchasima 4 Kalasin 0 4381 6944 0 4351 6362 5 Loei 0 4286 1135 0 4286 1135 6 Nakhon Phanom 0 4251 4048 0 4251 4715 7 Nong Khai 0 4242 0023 0 4242 3063 8 Nongkhae Saraburi 0 3637 0802 0 3637 0812 9 Pangkone Sakon Nakhon 0 4277 2389 0 4277 2390 10 Roi Et 0 4351 4021 0 4351 2613 11 Sakon Nakhon 0 4271 5371 0 4271 5370 12 Surin 0 4451 5867 0 4451 5864 13 Thanon Chomphon 0 4424 2884 0 4425 8200 Nakhon Ratchasima 0 4425 8200 0 4426 8211 14 Thanon Na Muang 0 4322 5774 0 4322 8370 Khon Kaen 0 4322 7877 0 4322 1506 0 4322 8077 15 Thanon Phrom Thep 0 4524 3578 0 4524 0607 Ubon Ratchathani 0 4525 6424 0 4525 6451 0 4524 0010 0 4524 0819 16 Thanon Prajak Udon Thani 0 4221 2052 0 4222 1350 0 4224 9023 17 Thanon Thevaphiban 0 4351 6085 0 4351 6362 Roi Et 0 4351 8169 0 4351 8108 18 Udon Thani 0 4224 0174 0 4224 9514 19 Wangsapung 0 4284 2127 0 4284 2129 20 Yasothon 0 4571 1243 0 4571 1395


OVERSEAS OFFICE

Los Angeles International Branch* Hong Kong Branch 601 South Fihueroa Street, Suite 3875, Suite 3316, 33/F, China Merchants Tower, Los Angeles, CA. 90017, U.S.A. Shun Tak Centre, No. 168-200, Connaught Road Central, Hong KongTel. : (1) (213) 680 9331-7 Tel. : (852) 2526 6811-5Fax : (1) (213) 620 9362 Fax : (852) 2868 4342 SWIFT : KASI US 6L SWIFT : KASI HK HHGeneral Manager : Mr. Prasertchao Thuvanuti General Manager : Mr. Chaivudh ChaiphanE-mail : [email protected] E-mail : [email protected]

Cayman Islands Branch Shenzhen BranchP.O. Box 1034 GT, Harbour Place, 4th Floor, 7th Floor, An Lian Building, B03-05,103 South Church Street, Grand Cayman KY1-1102, 4018 Jin Tian Road, Fu Tian District, Shenzhen 518026, ChinaCayman Islands Tel. : (86) (755) 8229 1298 C/O Close Bank (Cayman) Limited Fax : (86) (755) 8222 7150Tel. : (1) (345) 814 1574 SWIFT : KASI CN BSFax : (1) (345) 949 8499 General Manager : Ms. Chen JiaoGeneral Manager : Ms. Chananya Kongpreecha E-mail : [email protected] : [email protected]

Beijing Representative Office Shanghai Representative OfficeSuite 22-C, CITIC Building, Suite 2708, China Insurance Building, 19 Jianguomenwai Dajie, Beijing 100004, China 166 Lujiazui Road (East), Pudong, Shanghai 200120, China Tel. : (86) (10) 6500 8333 Tel. : (86) (21) 6841 9528-9 Fax : (86) (10) 6500 7899 Fax : (86) (21) 6841 9530 Chief Representative : Mr. Chavalit Nithagon Chief Representative : Ms. Nanthakorn ChatchaiskulE-mail : [email protected] E-mail : [email protected]

Kunming Representative Office Tokyo Representative Office Suite 2708, Expo Building, 8F, Pacific Century Place, 1-11-1 Marunouchi, 45 Tuodong Road, Kunming, Yunnan 650011, China Chiyoda-ku, Tokyo 100-6208, JapanTel. : (86) (871) 310 1092, 318 2727 Tel. : (81) (0) 3 68608258Fax : (86) (871) 310 5568 Fax : (81) (0) 3 68608201Chief Representative : Mr. Teerapong Hongboonyarak Chief Representative : Mr. Chakrit SuwannachoteE-mail : [email protected] E-mail : [email protected]

* The new address of Los Angeles International Branch, effective from April 2, 2012 (Former address: 350 South Grand Avenue, Suite 3050, Los Angeles, CA. 90071, U.S.A.)


KASIKORN ASSET MANAGEMENT CO., LTD.Head OfficeCompany Address : 400/22 KASIKORNBANK Building, 6th Floor, Phahon Yothin Road, Samsen Nai, Phayathai, Bangkok 10400Tel. : 0 2673 3999Fax : 0 2673 3988KAsset Contact Center : 0 2673 3888Website : www.kasikornbankgroup.com

KASIKORN RESEARCH CENTER CO., LTD.Head OfficeCompany Address : 400/22 KASIKORNBANK Building, 2nd Floor, Phahon Yothin Road, Samsen Nai, Phayathai, Bangkok 10400Tel. : 0 2273 1144Fax : 0 2270 1235KResearch Contact Center : 0 2273 1144Website : www.kasikornbankgroup.com

KASIKORN SECURITIES PCLHead OfficeCompany Address : 400/22 KASIKORNBANK Building, 19th Floor, Phahon Yothin Road, Samsen Nai, Phayathai, Bangkok 10400Tel. : 0 2696 0000Fax : 0 2696 0099KSecurities Contact Center : 0 2696 0011Website : www.kasikornbankgroup.com

Business Service Center


K Companies*

* K Companies mean KASIKORNBANK Subsidiaries.

No. K Investment Corner Tel. Fax

1 All Seasons Place Branch 0 2696 0623 0 2655 8027 2 Bang Su Branch 0 2696 0609 0 2910 4646 3 Central Lat Phrao Branch 0 2696 0624 0 2937 0746 4 Central Pin Klao Branch 0 2696 0620 0 2884 8215 5 Central Plaza Rama IX 0 2696 0625 0 2160 2998 Branch 6 Central World Branch 0 2696 0607 0 2646 1527

No. K Investment Corner Tel. Fax

K Investment Corner


7 Dao Khanong Branch 0 2696 0604 0 2877 7861 8 Fashion Island Ram Indra 0 2696 0617 0 2947 6250 Branch 9 Lat Phrao 99 Branch 0 2696 0614 0 2932 3651 10 Phat Phong Branch 0 2696 0603 0 2637 1358 11 Phetkasem 51 Branch 0 2696 0618 0 2801 4613 12 Rangsit Branch 0 2696 0615 0 2959 2068

No. Business Service Center Tel. Fax No. Business Service Center Tel. Fax 1 Central Airport Plaza 0 5390 4600 0 5390 4611 Chiang Mai Branch 2 Thanon Sukhumvit 0 3805 2050 0 3805 2066-67 Pattaya Branch 3 Thanon Thep Krasattri 0 7637 3500 0 7637 3517 Phuket Branch

1 Phahon Yothin Branch 0 2696 0000 0 2696 0199 2 Thanon Sua Pa Branch 0 2622 9153 0 2622 9154

Upcountry


No. K Investment Corner Tel. Fax No. K Investment Corner Tel. Fax 13 Sukhumvit 101 Branch 0 2696 0611 0 2741 8914 14 Sukhumvit 33 (Bang Kapi) 0 2696 0608 0 2662 1764 Branch 15 Thanon Chaeng Watthana 0 2696 0616 0 2982 9067 Branch 16 Thanon Ngam Wong Wan 0 2696 0619 0 2951 1308 Branch 17 Thanon Rama III Branch 0 2696 0621 0 2683 2940 18 Thanon Ratchada Phisek 0 2696 0613 0 2693 0617 Huai Khwang Branch

KASIKORN LEASING CO., LTD.

Head OfficeCompany Address : 400/22 KASIKORNBANK Building, 17th Floor, Phahon Yothin Road, Samsen Nai, Phayathai, Bangkok 10400Tel. : 0 2696 9999Fax : 0 2696 9966KLeasing Contact Center : 0 2696 9999Website : www.kasikornbankgroup.com

No. Business Service Center Tel. Fax 1 Chiang Mai 0 5341 8681 0 5341 8322 (Thanon Moon Muang Chiang Mai Branch) 2 Chon Buri 0 3879 2131 0 3879 2132 (Thanon Wachira Prakan Chon Buri Branch) 3 Chunthaburi 0 3934 6351 0 3934 6352 (Thanon Sri Rong Muang Chanthaburi Branch) 4 Khon Kaen (Thanon Sri 0 4332 8561 0 4332 8562 Chan Khon Kaen Branch) 5 Nakhon Ratchasima 0 4425 1488 0 4425 2638 (Thanon Chomsurangyat Nakhon Ratchasima Branch)

No. Business Service Center Tel. Fax 6 Nakhon Sawan (Sawanwithi 0 5633 4941 0 5633 4942 Nakhon Sawan Branch) 7 Phitsanulok 0 5524 5161 0 5524 5162 (Phitsanulok Branch) 8 Phuket 0 7623 8811 0 7623 9311 (Thanon Thepkasattri Phuket Branch) 9 Ratchaburi 0 3232 2171 0 3232 2172 (Thanon Sri Suriyawong Ratchaburi Branch) 10 Saraburi (Saraburi Branch) 0 3631 5921 0 3631 5691 11 Songkhla (Chong Khao-Mo 0 7424 7721 0 7424 7722 O Hat Yai Branch) 12 Udon Thani 0 4234 2144 0 4234 1122

KASIKORN FACTORY & EQUIPMENT CO., LTD.

Head OfficeCompany Address : 400/22 KASIKORNBANK Building, 3rd Floor, Phahon Yothin Road, Samsen Nai, Phayathai, Bangkok 10400Tel. : 0 2290 2900Fax : 0 2290 3000KF & E Contact Center : 0 2290 2900Website : www.kasikornbankgroup.com

Business Service Center

UpcountryBusiness Hours: Monday - Friday 8.30 - 17.00 hrs.

No. K Investment Corner Tel. Fax 1 Central Festival Phuket 0 2696 0622 0 7624 8306 Branch 2 Samut Prakan Branch 0 2696 0606 0 2701 8125

Upcountry

19 Thewet Branch 0 2696 0610 0 2628 6461 20 Thon Buri Branch 0 2696 0605 0 2861 4939 21 Wang Burapha Branch 0 2696 0612 0 2623 8380


SUMMARY OF SPECIFIED ITEMS PER FORM 56-2

Items Page

1. Company Information 311 1.1 Company 1.2 Other companies in which the proportion of shares held is 10% or greater 1.3 Other references 2. Financial Summary 2 - 3 2.1 Data from financial statements 2.2 Financial ratios 3. Nature of Business 9 - 54 3.1 Business undertakings of the Bank and affiliated companies division of work policies 3.2 Income structure 3.3 Revision in business undertakings 4. Risk Factors 55 - 69 5. Shareholders and Management 5.1 Shareholders 312 5.2 Management 5.2.1 Management Structure 230 - 241 / 284 - 285 5.2.2 Selection of Board members and management 234 - 235 / 240 5.2.3 Remuneration to directors and executives 251 - 253 5.2.4 Corporate governance 221 - 253 5.2.5 Rules of proper use of insider information 225 5.2.6 Internal control and auditing systems 248 - 250 5.3 Dividend Policy 254 6. Related Party Transactions 175 - 187 / 247 - 248 7. Management Discussion and Analysis 9 - 69 8. Financial Statements 8.1 Consolidated and the Bank’s financial statements 76 - 83 8.2 Auditors’ fees 250

Certain statements shown in this session are forward-looking statements in respect of financial position or performance of KASIKORNBANK PCL (“KBank”) in which KBank has prepared such statements based on several assumptions as well as the financial and other information made available from public sources as of the date these statements are made. Statements with words such as “expect”, “believe”, “estimate”, etc., are type of forward looking statements involving uncertainties and subject to change all the time due to future events, including but not limited to, changes in global/national economic, political and regulatory. KBank is not under any obligation to make an update to these forward-looking statements to be correspond to the current situation. Thus, the recipient shall carefully review the statements and make independent decision prior to investing or entering into any transaction.

KASIKORNBANKGROUP helps conserve natural resources and the environment by producing the 2011 Annual Report using more environment-friendly

materials - Green Paper and soy-based ink

Designed by Plan Grafik Co., Ltd.

KAsIKorNBANK PCL

1 Soi Rat Burana 27/1, Rat Burana Road, Rat Burana Sub-District, Rat Burana District, Bangkok 10140, Thailand

Tel.: 0 2222 0000 Fax: 0 2470 1144-5 K-Contact Center: 0 2888 8888

SWIFT: KASITHBKWebsite: www.kasikornbankgroup.com

01 annual report 2011 kasikornbankgroup · 002 annual report 2011 management report note: •...

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