Annual Report 2007

Transcription

Annual Report 2007

2 Annual Report 2007
Siam Commercial Bank Public Company Limited 3
1
51
3
67
Corporate Governance Report
Financial Highlights
Message from
the Board of Directors
Related Transactions
6
71
12
73
15 VISION
94
17
179
Audit Committee
Report
Board of Directors
Management Discussion
and Analysis
Senior Executive Officers
Organization Structure
Financial Statements
and Notes
To be the Bank of Choice
for our customers, shareholders,
employees and community.
Macroeconomic Development
of the Thai Economy in 2007
and Outlook for 2008
Report of the Independent
Certified Public Accountants
180
20
Report of the Board of
Directors’ Responsibilities
for Financial Statements
Industry and
Competition Review
23
182
Performance and Plans
Supplementary Information
39
SCB and Corporate Social
Responsibility
45
Risk Factors and
Risk Management
Content
The Siam Commercial Bank Public Company Limited
Company Registration Number 0107536000102
9 Ratchadapisek Raod, Jatujak, Bangkok 10900, Thailand
Tel: +66 2 544 1111 Fax: +66 2 544 4948
SCB Call Center +66 2 777 7777
TELEX 82876 SIAMCOM TH / 20492 SIAMBNK TH
SWIFT BIC SICOTHBK
WEBSITE: www.scb.co.th
Financial Highlights
Dramatic Loan Growth
Solid Operating Profit Growth
Gross Loans in Billion Baht
1,000
Net Profit and Operating profit* in Billion Baht
40
Net Profit
950
Operating Profit
35
900
868
29.0
30
850
800
748
750
20
700
650
600
15.2
512
18.9
18.5
17.4
13.3
12.5
10
560
550
21.1
15
612
24.7
24.0
25
5
500
0
0
2003
2004
2005
2006
2007
2003
2004
2005
2006
2007
* Operating Profit defined as net profit before loan loss provisions,
income tax and minority interest.
Steadily Increasing Margin
No. 1 in Retail Distribution
Net Interest Margin (NIM)
Number of branch
Number of ATM
1,000
4.0%
Branch
3.75%
4,833
900
3.59%
3.6%
ATM
874
4,000
3,828
793
800
3.32%
3,000
2,803
1,959
2.85%
2.8%
692
700
3.2%
600
2.72%
1,317
500
2.4%
5,000
2,000
563
501
1,000
400
2003
2004
2005
2006
2007
2003
2004
2005
2006
2007
Being different
By adopting
a broader
perspective and
providing out-of
the-box solutions.
Phadungsak Sompornphuprasert,
Relationship Manager, Business Banking
Group, Nakorn Ratchasima
“Unlike most of his colleagues, Phadungsak
chooses to ride a bicycle to work. It’s not only
good for his health, but environmentally
friendly as well. In his job as a consultant for
SME customers, Phadungsak always comes
up with good ideas. He uses an alternative
thinking approach to help his customers
overcome obstacles.”
Message from the Board of Directors
Dear Shareholders,
Ongoing political uncertainties cast a dark shadow over the
Thai economy for most of 2007-through to the elections in
the penultimate week of the year. As a consequence, the
economy was marked by a sharp downturn in consumer and
business confidence, which was further exacerbated by
record high oil prices and, in the last quarter, growing
concern over fall-out from the Subprime related crisis on
Wall Street. Fortunately, we turned the year with the hope
that a new government may be able to act quickly and
decisively to restore consumer and business confidence.
Despite all these woes, our Bank was able to withstand the
downward trend and for the third consecutive time closed
the year with another record performance:
• From a shareholder perspective, this performance was
manifest in the Bank achieving the highest market
capitalization in the country among all financial
institutions-on the back of the highest price earning
multiple and price to book value. Clearly, this landmark
accomplishment reflects not just on-going performance
but the result of rigorous efforts over the past six years,
through the Change Program initiated by the Board, to
instill deep-rooted and continuous transformation of the
Bank’s competitiveness and franchise value. This has now
been recognized by the investor community and is
manifest in the high premium accorded to its shares. At
the end of 2007, SCB’s market capitalization stood at a
record high of Baht 290 billion, a 48% increase from 2006
and 25% higher than the next largest financial institution
in the country in terms of capitalization. It is with deep sorrow that the Board
of Directors humbly places on record its
heartfelt condolence to His Majesty the King
and other members of our royal family on
the passing of Her Royal Highness Princess
Galyani Vadhana Krom Luang Naradhiwas
Rajanagarindra. We were privileged to have
the late princess grace us with her presence
at many important occasions at the Bank and
will forever remember her unfailing charm
and work ethos that has characterized her
long and inspirational life. The Board of Directors,
• In addition to attaining this high level of market
capitalization the Bank recorded the highest growth in
assets among its peers for the third consecutive year-13%
over the year. It starts the new year as the clear third
ranked bank by assets, rapidly closing the gap between
SCB and the two higher ranked banks.
2007 performance highlights
As noted earlier, 2007 was another record year for the Bank.
Key performance highlights were as follows:
• The Bank’s net profit increased by 31% compared to
2006 and stood at Baht 17.4 billion. This was the result of
strong underlying growth in the Bank’s business -on
almost all fronts-despite strong competitive pressure and
also the large provision set-aside in 2006 to comply with
the new IAS 39 related accounting regulations. • Net Interest Income (NII) increased by 20% as a result
of both strong lending growth (+16%) and improving net
interest margins (from 3.6% to 3.8%). To a large extent
these achievements reflect the Bank’s ability to
successfully gain market share, as planned, in the SME
and Hire Purchase businesses. SME and HP loans grew
significantly at nearly 40% and 44% respectively.
Mr. Anand Panyarachun
Chairman of the Board
• Non-NII grew 16% mainly due to the healthy
performance of fee-based businesses–asset management,
bank cards, and bancassurance–and significant growth in
gains arising from foreign exchange activities.
• Asset quality improved as anticipated, with the NPL
ratio declining from 7.9% to 6.1% and a strong loan loss
coverage ratio of 86%.
• The Capital Adequacy Ratio (CAR) remained at a solid
level–13.1%, comprising 10.6% of Tier-1 capital and 2.5%
of Tier-2 capital.
The above highlights attest to the strong operating
performance in 2007 despite all the macro level
uncertainties. Return on Equity (ROE) at 16.5% was the
highest amongst peer banks, while at the same time the Book
Value per share increased from Baht 29.6 in 2006 to Baht
32.6 in 2007.
Corporate Social Responsibility
As a leading and well-established financial institution in
Thailand, SCB is well aware of its duty as an exemplary
corporate citizen to contribute to the country and the
community through socially beneficial activities. With a
major goal of being the ‘Bank of Choice’ for the community,
in 2006, the Bank appointed a “Corporate Social
Responsibility Committee” in charge of defining a CSR policy
and framework, together with supervising and assessing CSR
activities. To undertake CSR outreach, the Bank also
assigned the Siam Commercial Foundation to take the lead
in implementing youth and community development
programs.
With the broad aim of improving the ‘quality of life’ of Thai
residents, particularly through fostering sustainable
development programs and by providing improved learning
opportunities for the younger generation, the Bank’s CSR
activities range from environmental protection to youth
development. SCB, with the cooperation of the Mae Fah
Luang Foundation, participated in a reforestation project on
the occasion of the 50 th Anniversary of His Majesty the
King’s Accession to the Throne. With a theme of
“Reforestation in Relief of Poverty”, the project’s goal was to
achieve the reforestation of 14,015 rai in Amphur Mae Fah
Luang, Chiang Rai. Next, as the Bank’s primary CSR focus is
“promoting youth development and related learning
processes”, which launched several youth development
projects in 2007 including: the “Youth Development Project
Following the Royally Initiated Sufficiency Economy
Philosophy” to foster a lifestyle based on this philosophy
among young generations, and the “SCB Challenge Project”
to promote creativity, build up knowledge, and grow civic
awareness among school students and undergraduates. One
of the Bank’s key initiatives is consistently hosting
brainstorming sessions for organizations and civil societies
engaged in youth development activities to discuss and share
experience. Objectives of the brainstorming sessions are
Dr. Vichit Suraphongchai
Chairman of the Executive Committee
Mrs. Kannikar Chalitaporn
President
mutual learning among the participants and applying lessons
learned to achieve fruitful implementation in their civil
societies. In addition, SCB has carried out projects to
engender a greater “civic-awareness and a spirit of
volunteerism” among staff. The Bank encourages employees
to play an active role in CSR activities led by executives and
staff of SCB and its subsidiaries, in order to fulfil the goal of
being the ‘Bank of Choice’ for the community.
Development in corporate governance practices
As an ongoing practice at your Board, a number of activities
were conducted during the year with the aim of
constructively fulfilling the Board’s roles and duties. These
activities included the annual Board assessment, a meeting
of independent directors, and brainstorming retreats on
important issues.
been the primary engine of growth in the past year.
Accordingly, we expect that the Thai economy will
experience modest growth of around 4.5-5% in 2008.
We expect strong competition on all fronts in the financial
system for most of 2008. In this context, the solid foundation
that the Bank has established through its transformational
Change Program will enable it to maintain the current
momentum for competitive growth. In addition, we will
further improve risk management practices to meet the
challenges and volatility that are ahead and accelerate our
on-going capability building efforts in all major business
lines.
We take this opportunity to thank our shareholders and
customers for their continuous support, and our
management and staff for their loyalty and dedication.
In 2007, developments in the Board structure and
membership were as follows:
t 'JSTUMZ UIF TIBSFIPMEFSTBU UIF "(. IFME JO "QSJM approved the appointment of Mr. Chumpol Na Lamlieng
as an additional director, bringing the total number of
directors to 17. The shareholders also approved Mr. Sanit
Rangnoi to replace a director retiring by rotation. Both
Mr. Chumpol and Mr. Sanit serve as non-executive
directors.
t 4FDPOEMZ TUBSUJOH GSPN 4FQUFNCFS .S "OBOE
Panyarachun was appointed as the Chairman of the
Board, replacing Mr. Chirayu Isarangkun na Ayuthaya,
who tendered his resignation as the Chairman of the
Bank’s Board following his appointment as the Chairman
of the Board of Siam Cement PCL. Dr. Chirayu’s
resignation complies with a best practice of corporate
governance that the chairman of a listed company should
hold chairmanship of only one big capitalization
company.
The effective and consistently good practices of the Board
have been recognized by, among others, the Thai Institute of
Directors Association in its selection of the SCB Board to
receive the ‘Board with Consistent Best Practices’
award in 2007. This unique multi-year award recognizes the
continuous outstanding performance of the Board in 2002/
03, 2004/05, and 2006/07.
The road ahead
As we turn the corner to 2008, our economic planners are
faced with the significant challenge of effectively responding
to the increasing probability of a global economic downturnthe extent and duration of which remains unclear at this
time. At the same time, the plans of the new government to
fast track a number of mega projects and other confidence
boosting measures may cushion our economy against the
impact of any sluggishness in the exports sector which has
President
Board of Directors
Chairman of the Board, Independent Director, and Member of the Corporate Social Responsibility Committee After completing his B.A. (Hons.) degree in Law
from Trinity College, University of Cambridge,
U.K. in 1955. Khun Anand commenced his
distinguished career at the Ministry of Foreign
Affairs. Highlights of his career include service as
Ambassador to the U.S.A., Permanent
Representative to the United Nations at New
York, U.S.A., and Permanent Secretary of the
Ministry of Foreign Affairs. Since leaving the
foreign service, Khun Anand has been active in
the world of business and international
community, and was appointed by the former
United Nations Secretary General to chair its
High-Level Panel on Threats, Challenges, and
Change established to review the role of the
United Nations in a rapidly changing global
political environment during 2003-2004. Khun Anand is widely recognized for his pivotal
role in the Kingdom’s political development
through his serving twice as Prime Minister of
Thailand, and for leading efforts in drafting a new
constitution for the Kingdom in 1997. Khun Anand
has received 24 honorary degrees from various
national and foreign universities for his distinctive
roles in many areas, and has been the recipient of
numerous international awards, including the
prestigious Ramon Magsaysay Award.
Currently, he serves as a UNICEF ambassador in
Thailand, Chairman of the Thailand
Development Research Institute (TDRI), and
Chairman of the Council of Trustees of the
Thailand Environment Institute, etc. He was named Chairman of the Board of
Directors on September 1, 2007. During his longstanding tenure as an independent director since
1984, Khun Anand brings an unparalleled
perspective on the macro-level challenges facing
the Bank and plays an important role in
promoting good governance and corporate social
responsibility activities within the Bank.
Director, Chairman of the Executive Committee, and Member of the Corporate Social Responsibility Committee Dr. Vichit holds a Bachelor’s degree in Engineering
from Chulalongkorn University, a Master’s degree
in Engineering from the University of California in
Berkeley, and an MBA and Ph.D. from the
University of California, Los Angeles (UCLA),
U.S.A. He started his career in banking at Bangkok
Bank PCL and at the time he left he was serving as
its President. He later joined the Royal Thai
Government as Minister of Transport and
Communication (1994-1995). He returned to the
banking world as the Chairman of Radanasin Bank
PCL. Dr. Vichit has also served on the Board of
various leading companies and organization,
including the Bureau of the Crown Property ,
Kempinski AG., and Nok Airlines Co., Ltd., etc.
Dr. Vichit has also contributed to educational
development in the Kingdom in his capacity as a
member of the Senate of Mahidol University. His
previous responsibilities include having been a
member of the National Education Commission
and the National Institute of Development
Administration (NIDA), and a Trustee of the
Asian Institute of Technology (AIT). As Chairman of Executive Committee, Dr. Vichit
has employed his vision and leadership to initiate
the Change Program, enabling Siam Commercial
Bank to revive its performance to record
remarkable profitability. He also has important
roles in formulating strategies, and in reviewing
and monitoring the progress of execution plans.
In recognition of his prominent achievements, he
was awarded the Leadership Achievement Award
for the Financial Services Industry in Thailand in
2006 by The Asian Banker magazine. Mr. Maris Samaram
Independent Director, and Chairman of the Audit Committee
Khun Maris holds a Bachelor’s degree in
Accounting from the University of the East
(Philippines), and attended the Harvard Business
School Program for Management Development.
Khun Maris commenced his auditing career in
1961 and qualified as a CPA with the SGV Group
in the Philippines. In 1967, he was transferred to
Bangkok with a mandate to develop a new location
for the Group in Thailand to provide both audit
and business advisory services to a diverse range of
multinational and Thai companies. In 1974, he was
admitted as an SGV-Na Thalang partner, appointed
Country Managing Partner in 1978, and assumed
the chairmanship in 1992.
He retired from SGV-Na Thalang in 2001. Besides
his independent advisory assignments, he is also a
Director and member of the Audit Committee of
Tata Steel (Thailand) PCL and Sub Sri Thai
Warehouse PCL, and was appointed Chairman of
the Audit Committee of the Asian Institute of
Technology (AIT).
With his 40 years experience in a major regional
audit firm and in his capacity as Chairman of the
Audit Committee, Khun Maris brings to the Bank
outstanding credentials for enhancing the
effectiveness of its audit policies, practices, and
procedures. Mr. Chumpol Na Lamlieng
Director, and Chairman of the Nomination, Compensation, and Corporate Governance Committee Khun Chumpol holds a Bachelor’s degree in
Mechanical Engineering from the University of
Washington, U.S.A., and received his MBA from
Harvard Business School in 1967. He was
President of the Siam Cement PCL during 19932005. Khun Chumpol is widely recognized as an
expert with a strong and extensive background in
business and finance, both at the local and
international levels. Committee of the Siam Cement PCL, Director of
the British Airways Plc, and Chairman of the
Singapore Telecommunications Ltd.
As the Chairman of the SCB Nomination,
Compensation, and Corporate Governance
Committee, Khun Chumpol’s capable background
in organizational management contributes to
banking operations, particularly in the area of
good governance at the international level. He is currently a member of the Board and
Chairman of the Management Advisory
Dr. Chirayu Isarangkul Na Ayuthaya
Director, and Chairman of the Corporate Social Responsibility Committee Dr. Chirayu holds an Economics (Hons.) degree
from the London School of Economics, and a
Ph.D. in Economics from the Australian National
University. Starting his career as an economist, he
went on to serve as the Dean of the School of
Development Economics at the National Institute
of Development Administration (NIDA). During
1981-1986, he was appointed to the cabinet of the
Royal Thai Government and served as Deputy
Minister of Industry, Minister of Industry, and as a
Minister attached to the Prime Minister’s office.
Since 1987, Dr. Chirayu has managed the diverse
holdings and investments of the Bureau of the
Crown Property in a position of Director-General,
and at the same time served in the prestigious
position of Grand Chamberlain to the Royal
Household. Dr. Chirayu also serves as Chairman and Director
for several organizations in Thailand, including
the Chaipattana Foundation, the Sai Jai Thai
Foundation, the Royal Project Foundation, and
the Thailand Development Research Institute
Foundation, etc.
Dr. Chirayu tendered his resignation as the
Chairman of the Board, the position he held
between 1998-2007, to serve as Chairman of the
Board of Siam Cement PCL. As the Bank’s
director, Dr. Chirayu provides an invaluable
contribution in steering the Bank though
economic crises and stimulating changes, and
reinforces its strong drive to attain the highest
standard of corporate governance. Khunying Jada Wattanasiritham
Director, Member of the Executive Committee, and Member of the Corporate Social Responsibility Committee Khunying Jada holds Bachelor’s and Master’s
degrees in Natural Sciences & Economics from
the University of Cambridge, U.K., and a Master’s
degree in Economic Development from Williams
College, U.S.A. Khunying Jada commenced her
distinguished career in banking at the Bank of
Thailand. In 1975, she joined the Bank in its
research and planning function. Since that time
she has held a number of senior executive roles
within the Bank, covering the international
business arena, corporate and institutional
banking, and capital markets. Khunying Jada was
appointed as the Bank’s President and CEO in
1999 and retired from the post in January 2007.
She has the distinction of being the first woman to
serve as the President.
Khunying Jada currently serves various posts,
such as Director and Chairman of the Audit
Committee of the Stock Exchange of Thailand,
and is a Director, member of the Audit
Committee, and member of the Compensation
Committee of PTT PCL and several other
companies. In recognition of these contributions she was
awarded the royal decoration of Chulachomklao
with the title Khunying in May 2000. In 2006,
Khunying Jada was appointed a member of the
National Legislative Assembly. She also received
the prestigious “Best CEO of the Year 2006” award
from the Stock Exchange of Thailand. Khunying Jada is instrumental in providing the
Bank with effective oversight and experience as a
professional banker. She also provides valuable
perspective on social responsibility-related
matters in her capacity as a member of the
Corporate Social Responsibility Committee. Siam Commercial Bank Public Company Limited 7
Mr. Bodin Asavanich
Director, and Member of the Executive Committee
Khun Bodin holds a Bachelor of Laws degree
from Thammasat University, and Master of
Comparative Jurisprudence and Master of Law
(General) degrees from New York University,
U.S.A., and is a member of the Thai Bar
Association. He also attended the Executive
Program at Stanford University. Khun Bodin has over 30 years of experience as a
legal practitioner. In 1976, he trained at a law firm
in New York, U.S.A., and upon his return in 1976
to Thailand he was admitted as a Managing
Partner of the B&N Legal Office. Subsequently, he
joined PTT PCL as the Director of its Legal
Division, before joining Siam Cement PCL as its
Group General Counsel, and Cementhai Legal
Counsel Limited as its Managing Director.
Khun Bodin currently serves as Advisor to Siam
Cement PCL, Senior Vice Chairman of the
Federation of Thai Industries, Expert Director
Member of the Commission of Taxation under
the Revenue Department, Director of the Trade
Competition Committee under the Ministry of
Commerce, and a member of several legal
committees under various government and
private agencies. In 2006, Khun Bodin was
appointed a member of the National Legislative
Assembly. As a member of the Board of Directors and the
Executive Committee, Khun Bodin contributes
valuable perspectives on legal and business
matters to banking operations. Mr. Tiraphot Vajrabhaya
Independent Director, and Member of the Audit Committee Khun Tiraphot holds a B.A. in Economics and
Commerce from the University of Melbourne,
Australia, and an MBA from Boston University,
U.S.A.
Since 2001, he has served as the Chairman of the
Shell group of companies in Thailand, and as the
Cluster Manager of its retail business for
Indochina and Asia-a rare distinction for a Thai
national. He has extensive management
experience in many areas of the energy business at
Shell in both Thailand and the U.K., including
finance, marketing, and personnel management.
In addition to his directorship on the boards of
the Shell affiliates in Thailand, he also serves as
Director of Petroleum Institute of Thailand, and
an Honorary Advisor to the British Chamber of
Commerce Thailand. As an independent director on the Board, Khun
Tiraphot brings with him both his commercial
acumen and deep knowledge of best practice in
the management of large and complex
institutions. Mr.Pichai Chunhavajira
Independent Director, and Member of the Audit Committee
Khun Pichai holds a Bachelor’s degree in
Accounting from Thammasat University, an MBA
in Finance from Indiana University of
Pennsylvania, U.S.A., and Honorary Degree
Doctor of Philosophy in Accounting from
Thammasat University.
He serves as the Chief Financial Officer of PTT
Public Company Limited. He is recognized for his
financial and accounting expertise through his
role in the successful initial public offering and
listing of the shares in PTT Exploration &
Production PCL in 1983 as well as planning and
implementing of PTT’s privatization in 2001. He
was named ‘CFO of the Year in 2001’ by the
Nation group, ‘Best CFO of The Year in 2003 by
the prestigious Institutional Investor magazine,
‘CFO of The Year 2004’ by Asia Money magazine
and Best CFO 2006 by Finance Asia. 8 Annual Report 2007
Khun Pichai serves on the boards of a number of
companies, including Thai Airways International
Public Co.,Ltd., and the PTT Group of Companies
which includes PTT Exploration & Production
PCL., PTT Chemical PCL and PTT Aromatics
and Refining PCL. He also serves on the
Chairman of Executive Accounting Profession
Committee of Federation of Accounting
Professions.
As member of the Audit Committee, Khun Pichai
brings to the board exceptional talent on
accounting and finance issues from both an
internal and market perspective.
Mr. Sumate Tanthuwanit
Independent Director, and Member of the Audit Committee Khun Sumate holds a B.Sc. (Hons.) degree in
Electrical Engineering from Chulalongkorn
University, and an M.Sc. in Management
Engineering from the Asian Institute of
Technology. He has had a life-long career in
shipping related business. In 1980, he founded
Regional Container Lines (RCL) to provide feeder
services between Thailand and Singapore. The
company was listed on the Stock Exchange of
Thailand in 1988. Khun Sumate currently serves
as the President of the Ngow Hock Group of
companies, which includes TIPS Co., Ltd., Thai
Prosperity Terminal Co., Ltd., and Sintanachote
Co., Ltd., companies providing wharf, container
freight stations, and bonded warehouse facilities.
In 2006, Khun Sumate was appointed a member
of the National Legislative Assembly. As a veteran of the shipping and logistics sectors
and a well-regarded local entrepreneur, he brings
an important dimension to the Board from both
trade and business development perspectives,
particularly with respect to the fast growing China
market. Mr. John William Hancock
Independent Director, and Member of the Nomination, Compensation, and Corporate Governance Committee
Mr. Hancock holds an LL.B. degree from the
University of Adelaide, Australia, and has been
admitted to practice law in South Australia,
Victoria, and New South Wales, Australia, and is a
permitted legal advisor in Thailand.
Since 1970, he has practiced law in New York,
Hong Kong, Singapore, and Bangkok, and is
serving as the Honorary Chairman of and Senior
Advisor to the Baker & McKenzie law firm in
Bangkok as well as the Chairman of John W.
Hancock & Associates Limited. He founded the
Bangkok Office of Baker & McKenzie, and has
spent a total of 30 years in legal practice in
Thailand. Furthermore, he has served as President
of the Australian-Thai Chamber of Commerce in
1986/7 and again in 1998/9, and is recognized as a
leading Australian in Asia. He also serves as an
independent director of Serm Suk PCL and
Indorama Polymers PCL, and Chairman of the
Investment Policy Sub-Committee of Board of
Trade of Thailand.
With a background as one of Thailand’s leading
lawyers, business consultants and independent
directors, he brings to the Board invaluable
insight into all commercial, legal, and good
corporate governance matters.
Mr. Peter Seah Lim Huat
Director, and Member of the Nomination, Compensation, and Corporate Governance Committee Mr. Seah holds a B.B.A. (Hons.) degree from the
University of Singapore. He was a professional
banker for 33 years with the past positions as
General Manager, Citibank NA, Brunei, Executive
Director and Chief Executive, International Bank
of Singapore Ltd., and retired as the Vice
Chairman and Chief Executive Officer of the
Overseas Union Bank, Singapore, in 2001. He was
also the President and Chief Executive Officer of
Singapore Technologies Pte Ltd. He is currently the Chairman of Singapore
Computer Systems Ltd., SembCorp Industries Ltd.,
and Singapore Technologies Engineering Ltd. In
addition, he sits on the board of many corporations,
including CapitaLand Ltd., Government of
Singapore Investment Corporation Pte Ltd.,
StarHub Ltd., Alliance Bank Malaysia Berhad, Bank
of China Ltd., etc. In addition, Mr. Seah was
appointed to several distinguished posts in
Singapore, such as Honorary Treasurer of the
Singapore Business Federation Council, and
received prestigious awards in recognition of his
contribution to business and social services of
Singapore. As a prominent banker, he brings to the Board
perspectives on the issues and challenges faced by
the rapidly evolving landscape of the regional
financial services industry. Siam Commercial Bank Public Company Limited 9
Mom Rajawongse Disnadda Diskul
Director, and Member of the Corporate Social Responsibility Committee
M.R. Disnadda Diskul holds a degree in Business
Administration from Indiana University
(Bloomington), U.S.A. He worked for the National
Economic Development Board (later the National
Economic and Social Development Board) until
1967, when His Majesty the King appointed him
to serve as the Private Secretary to Her Royal
Highness Somdej Phra Srinagarindra, the Princess
Mother. M.R. Disnadda served as Private
Secretary to H.R.H. the Princess Mother until Her
Royal Highness passed away in 1995. the Doi Tung Development Project in Chiang Rai,
a royal initiative project of H.R.H. the Princess
Mother. In recognition of his achievements, the
Royal Thai Government assigned him to extend
the experience of the Doi Tung Development
Project into the Union of Myanmar, Afghanistan,
and Aceh in Indonesia. M.R. Disnadda is Secretary-General of the Mae
Fah Luang Foundation under Royal Patronage, a
position he has held since the foundation was
established in 1972 to carry out the work of
H.R.H. the Princess Mother. Since 1988, he has
also served as Chairman and Director-General of
As a director, and a member of the Corporate
Social Responsibility Committee, M.R. Disnadda
provides an important perspective on sustainable
development to benefit the Bank. M.R. Disnadda also serves as Chairman of the
Thailand Convention and Exhibition Bureau
(Public Organization) and Advisor to the Crown
Property Bureau. Professor Vicharn Panich, M.D.
Independent Director, and Member of the Corporate Social Responsibility Committee Prof. Vicharn holds an M.D. degree from the
Faculty of Medicine at Siriraj Hospital and a
Master’s degree in Human Genetics from the
University of Michigan, U.S.A. He has held senior
positions at Prince of Songkla University, such as
Dean of the Faculty of Medicine and Vice
President of the University. Prof. Vicharn was the
first Director of the Thailand Research Fund
(TRF) and was re-elected to serve in the position
for 8 years, where he pioneered research
management systems for Thailand. He continues
to serve as a Special Advisor to the TRF. University Council of two universities; Walailak
University and Prince of Songkla University. He is currently serving as Director of the
Knowledge Management Institute (KMI), which
is a pioneer project at the national level. He was
also appointed Chairman of the Mahidol
University Council, and is a member of the
As an independent director on the Board, Prof.
Vicharn brings his experience with projects linked
to academic and the community, and this
perspective adds value to the Board in meeting its
corporate social responsibilities. Khun Puntip holds a B.A. (Hons.) from
Chulalongkorn University, and an M.A. in
Business Administration from Fort Hays Kansas
State College, U.S.A. General, the State Enterprise Policy Office and
Deputy Permanent Secretary. In addition, Khun
Puntip also serves as Director of PTT PCL and
Chairman of the Board of Dhanarak Asset
Development Co, Ltd.
He has also served on the Board of many
organizations and foundations, including Director
of the Medical Division of the Anandamahidol
Foundation, Chairman of the Executive
Committee of the National Health Foundation,
member of the Executive Committee of the Thai
Academy of Science and Technology, and
Chairman of the International Award Committee
of the Prince Mahidol Award Foundation under
Royal Patronage.
Mrs. Puntip Surathin
Director Khun Puntip currently serves as the Director
General of the Treasury Department, Ministry of
Finance. She joined the Ministry of Finance over
30 years, and has held a number of positions prior
to the current post, including Deputy Comptroller
General, the Comptroller General’s Department,
Chief Inspector General, Office of Permanent
Secretary for Finance, Privatization and
Performance
Evaluation
Advisor,
the
Comptroller-General’s Department, Director
Khun Puntip brings to the Board a strong
knowledge of the practices of the state enterprise
sector as well as a deep understanding of current
government policies as they relate to the financial
services sector. Mr. Sanit Rangnoi
Director
Khun Sanit holds a Bachelor’s degree (2nd Class
Hons.) in Industrial Engineering from
Chulalongkorn University, a Bachelor’s degree in
Economics from Sukhothai Thammathirat Open
University, and a Master of Science degree in
Industrial Engineering (Operations Research)
from Pennsylvania State University, U.S.A.,
through a scholarship from the Excise
Department, Ministry of Finance. Department, Deputy Permanent Secretary, and
Director-General of the Excise Department.
He is now the Director-General of the Revenue
Department, Ministry of Finance. For more than
30 years, Khun Sanit served various important
posts in the Ministry of Finance prior to his
current post, such as Chief Inspector General,
Office of Permanent Secretary for Finance,
Comptroller General, the Comptroller-General’s
Khun Sanit brings to the Bank’s Board his
extensive experience in finance and monetary
policies from the Ministry of Finance.
In addition, Khun Sanit also serves many
positions of several state enterprises and private
sector companies, such as Chairman of the Board
of the Electricity Generating PCL, Board member
of the Electricity Generating Authority of
Thailand, and PTT Exploration and Production
PCL.
President, Member of the Executive Committee, and Member of the Corporate Social Responsibility Committee Khun Kannikar holds a Bachelor’s degree in
Business from the University of Colorado, and
attended the Advanced Management Program at
Harvard Business School. Prior to joining the
Bank, she worked with Unilever Thailand for 32
years. Over the years at Unilever, through the
application of modern marketing concepts, she
played a critical role in dramatically improving
Unilever’s market share and profitability in
Thailand. On leaving Unilever Thailand she
served as Vice Chairman and Personal Care
Category Director.
As a result of these achievements in marketing she
has been publicly recognized by her peers and
was named ‘Professional Woman of the Year’ in
1999. She also served as the Chairman of the Thai
Management Association during 2000-2002. Khun Kannikar joined as a member of the Bank’s
Board in 2002, and the management team of the
Bank in 2003. In her role as Head of the Retail
Banking Group, she has brought fresh,
invigorating, and consumer-focused perspectives
to its retail business, and is widely recognized as
the architect behind the hugely successful
transformation of the Bank. Khun Kannikar was
appointed the Bank’s President in February 1,
2007. In December 2007, she received the
prestigious “Financier of the Year 2007” award
from Money & Banking magazine.
Senior Executive Officers
The President and Senior Executive Vice President Level
President
Please refer to page 11 for Khun Kannikar’s profile
Mr. Deepak Sarup
Senior Executive Vice President, Change Program and Chief Information Officer
Khun Deepak holds a Bachelor’s degree in
Commerce (Hons.) with a diploma in Accounting
(with distinction). He is a Fellow of the Institute of
Chartered Accountants in England and Wales
(FCA) and a Fellow of the Wharton School,
University of Pennsylvania (U.S.A.). He
commenced his career with Touche Ross & Co in
London, and has since served in a number of
different management roles in many countries.
Immediately prior to joining the Bank in 2002, he
was Managing Director for Asia Pacific at
ALLTEL Information Services Inc. In this role he
led the transformation of this Fortune 500
Company’s market position and profitability in the
Asia Pacific region. Before assuming this role, he
was First Executive Vice President of Radanasin
Bank PCL. He also served as International
President of the Information Systems Audit and
Control Association (1991-1993), and was a
member of the IT Committee of the International
Federation of Accountants (1995-2001). In 2005,
he was selected as one of Asia’s most influential
IT leaders by MIS magazine.
Mr. Na Bhengbhasang Krishnamra
Senior Executive Vice President, Division Head, Sales and Service Division
Khun Na Bhengbhasang holds Bachelor’s and
Master’s degrees from the University of Pennsylvania
(U.S.A.). He has been with the Bank since 1971, and
has extensive experience in the management of local
and foreign branches. He was Manager of the Bank’s
Los Angeles Branch in 1984 and Manager of
the International Banking Department during 19871993. Khun Na Bhengbhasang was responsible for
consumer lending and was subsequently appointed
to the post of Executive Vice President of the
Consumer Banking Group in 1994, where he
played a leadership role in consumer lending. Prior
to assuming his position as Executive Vice
President of the Channel Management Division
(now known as the Sales & Service Division), he
was responsible for the Bank’s Special Assets
Division. His responsibilities span the entire
domestic branch network, as well as the Bank’s
sales and services points in the field of retail
banking. In March 2007, Khun Na Bhengbhasang
was promoted to Senior Executive Vice President
of the Sales and Service Division.
Mr. Sirichai Sombutsiri
Senior Executive Vice President, Group Head, Corporate Banking Group
Khun Sirichai holds a Bachelor’s degree (Hons.) in
Accounting from Thammasat University and an
M.B.A. in Finance from the University of Southern
California (U.S.A.). He joined the Bank in 1977 and
worked in the fields of foreign branch operations
and treasury. Khun Sirichai resigned from the Bank
to serve as President of Thai Summit Finance and
Securities Co., Ltd. from 1994-1998, and later
served as Managing Director of Radanasin Bank
PCL from 1998-1999. He rejoined the Bank in 2000
as Executive Vice President of the Treasury and
Capital Market Division. Subsequently he was
responsible for business lending, and was
appointed head of the Corporate Banking Group in
2003. In 2006 he was appointed Head of the newlyestablished Business Banking Group responsible
for managing the Bank’s SME related business.
Starting from January 2008, Khun Sirichai returned
as Head of the Corporate Banking Group to lead
this Group’s operations to achieve the Bank’s
strategic plan. Mr. Wuchien Michael Than
Senior Executive Vice President, Chief HR Officer
Born in China and raised in India, Khun Michael
lived and worked in Canada, the United States,
Hong Kong, and Japan before coming to Thailand
in 1994. He has more than 30 years of experience
in the fields of human resource management and
organizational development. His previous
employers include Bankers Trust in New York,
Hong Kong and Tokyo, American Express in
Toronto and New York, and most recently,
Bangkok Bank PCL. He has been with SCB since
2002 as Chief Human Resources Officer. Khun
Michael has a Bachelor’s degree (Hons) in
Economics from Presidency College and an M.B.A.
in Behavioral Sciences from the Indian Institute of
Management, Calcutta (India).
Mr. Yokporn Tantisawetrat
Senior Executive Vice President, Chief Financial Officer
Khun Yokporn has been with the Bank since 1977,
after earning Bachelor’s and Master’s degrees in
Economics from Chulalongkorn University and
Thammasat University, respectively. His work
experience covers the areas of economic research,
credit, and capital markets. Khun Yokporn was
appointed Senior Executive Vice President of the
Risk Management Group in 2006, responsible for
developing risk management as a core competency
for the Bank. In March 2007 Khun Yokporn was
appointed Chief Financial Officer of the Bank. Mr. Yol Phokasub
Senior Executive Vice President, Group Head, Retail Banking Group
Khun Yol holds a Bachelor’s degree (Hons.) in
Computer Science and Software Engineering
from Imperial College, University of London.
Prior to joining the Bank in June 2007 as Head of
the Retail Banking Group, Khun Yol had extensive
experience in the retail consumer product
business. During 1989-2006 he worked with
Unilever Thailand, with his last position as
Managing Director Unilever Foods. After that
Khun Yol joined the Dutchmill Group, where he
served as Chief Operating Officer and Board
member of the Group, and as Chief Executive
Officer of Dutchmill International.
Mr. Narong Srichukrin
Mrs. Ongorn Abhakorn Na Ayuthaya
Dr. Pakorn Peetathawatchai
Mrs. Paspun Suwanchinda
Mr. Permpoon Krairiksh
Mr. Praves Suttirat
Mr. Rungruang Sukkirdkijpiboon
Mr. Sarunthorn Chutima
Mr. Somchai Sanyalaksiri
Mrs. Sutharntip Phisitbuntoon
Dr. Veerathai Santiprabhob
Dr. Vivat Kittiphongkosol
Executive Officers
Mr. Adisorn Sermchaiwong
Dr. Amarit Laorakpong
Mrs. Chantima Chaturaphat
Mr. Charamporn Jotikasthira
Mr. Grish Attagrish
Mrs. Kannika Ngamsopee
Mrs. Siribunchong Uthayophas
Company Secretary
Awards in 2007
For the Bank
Best Retail Bank in Thailand by The Asian Banker
Best Domestic Bank in Thailand by Asiamoney
Best Bank in Thailand by FinanceAsia
Best Emerging Market Bank (Best Bank), Thailand by Global Finance
Asia’s Best Companies Poll by FinanceAsia
Best Local Cash Management Bank in Thailand, as voted by corporates by Asiamoney
Best Local Currency Cash Management Services, as voted by financial institutions by Asiamoney
Best Cash Management Bank in Thailand by FinanceAsia
Best Foreign Exchange Bank in Thailand by FinanceAsia
Best Bond House in Thailand by FinanceAsia
Best Trade Finance Bank, Thailand by Global Finance
Triple A Transaction Banking Awards by The Asset
Thailand Derivative House of the Year Award by Asia Risk
Best Bank in Thailand, in terms of Corporate Governance by The Asset
Asia’s Best Company in Corporate Governance, Thailand by Corporate Governance Asia
Best Consumer Finance by Money & Banking Magazine
Thailand Corporate Excellence Awards 2006 by Thailand Management Association: TMA
Trusted Brands Gold Award for the Bank category by Reader’s Digest Thailand
Best Bond House 2006 by ThaiBMA
Best Market Contributor 2006 by ThaiBMA
For the Board / Management Board with Consistent Best Practices by Thai Institute of Directors Association
Leadership Achievement Award for the Financial Services Industry in Thailand 2006 honored to SCB Chairman of
the Executive Committee Dr. Vichit Suraphongchai by The Asian Banker
Financier of the Year 2007 honored to SCB President Mrs. Kannikar Chalitaporn by Money & Banking Magazine
Organization Structure
Governance Structure
Board of Directors
Board Committees
Management Committees
Executive Committee
Strategy and Review Committee
Audit Committee
Change Program Steering
Committee
Nomination, Compensation
and Corporate Governance
Committee
Assets and Liabilities
Management Committee
Corporate Social Responsibility
Committee
Investment Committee
Risk Management Committee*
* Note : Appointed by the Board of Directors and comprising members from executive management.
Management Structure
As of January 1, 2008
Business Units
Executive Management
Corporate
Banking
Business
Banking
Retail
Banking
GTS and
Capital
Markets
Special
Assets
Audit and
Compliance
Treasury
Change Program
Risk Management
Board Secretariat
and Shareholder
Services
Shared Service Units
Finance
Human Resources
Information Technology
Operations
Corporate Communications
SCB Group
Companies
Central Administration
SCB
Securities
SCB Asset
Management
SCB Capital
Services
Siam
Commercial
Leasing
Siam
Commercial
Samaggi
Insurance
Siam
Commercial
New York Life
Growth
The underlying
aspiration for
what we do.
Chalao Wattanapong, Regional Manager,
Business Banking Group, Bangkok
“Chalao grows his orchids with passion
and enjoys seeing them blossom
beautifully. Likewise, at work the business
growth of his customers has continued to
drive him to work enthusiastically
throughout his years at SCB.”
Macroeconomic Development
of the Thai Economy in 2007 and Outlook for 2008
SCB executives share their perspectives on economic and monetary outlooks with SCB customers
Macroeconomic Development in 2007
Thailand’s economy expanded modestly in 2007 despite
various negative shocks. Key risks moderating GDP growth
last year included record high oil prices, domestic political
uncertainties, a strong Thai baht, dismal consumer and
business sentiment, and lingering concerns over fall out from
the US sub-prime debacle. These risks adversely affected
both domestic consumption and investment. Nevertheless,
key positive developments in 2007 included fiscal stimulus,
a low interest rate environment, and robust exports. These
factors helped maintain Thailand’s growth momentum in
the level of 4.8% in 2007. Overall economic stability indicators remained favorable, in
particular external stability, owing to a robust performance
in exports and tourism. Notwithstanding, a downturn in the
global trading environment and a stronger Thai currency,
the performance of the export sector has been outstanding.
Strong performances in sectors/products such as
automobiles, electronics, and rubber lifted export growth to
a record high of 18.1% in 2007, and the current account
position registered a surplus of USD 14.92 billion (equivalent
to 6.6% of GDP)—the highest level in 10 years. For 2007, the
inflation rate fell to 2.3%, a great improvement from 4.7% in
2006. The unemployment rate stood at 1.4%. On the demand side, in the first half of 2007 consumption
and investment remained on a downward trend, reflecting a
continued deterioration in both consumer and investor
confidence due to higher oil prices and domestic political
uncertainties. With improvement in the domestic political
situation, given scheduled elections, and a low interest rate
environment, in the second half of 2007 private
consumption and investment showed signs of recovery, as
seen from the higher consumption of durable goods and the
higher import of capital goods. On the supply side, agricultural production rose by 2.3%,
while underlying agricultural prices markedly increasing by
14.9%. Consequently, farm income rose by 17.6%.
Meanwhile, the Manufacturing Production Index (MPI)
expanded by 8.2%, largely driven by export-oriented
industry. The capacity utilization rate rose slightly to 76.1%.
It is interesting to note that capacity utilization rates have
now exceeded their pre-1997 crisis peaks in many industries.
On the currency front, the Thai baht has continued to
appreciate, propelled by both the weakening dollar and an
improvement in Thailand’s current account position.
Notwithstanding the Bank of Thailand’s capital control
measures, the Thai baht continued to appreciate in 2007,
although at a slower rate than in 2006. For the year, the Thai
baht averaged THB 34.54 per USD, a 9.7% appreciation from
2006. SCB senior executives accompany Business Banking customers on a
Vietnam study tour to explore business and investment opportunities
Overall, monetary conditions relaxed in 2007 due to the
continued reduction of the policy rate, which decreased
from 5.25% per annum at the beginning of the year to 3.25%
per annum by October. In response to the relaxed monetary
policy stance, the 3-month fixed deposit rate and prime
lending rate (MLR) were reduced to 2.00-3.13% and 6.8758.25% respectively as of end-December. Consequently, for
the whole year deposits rose by only 0.2% whereas credit
grew by 5.7%. new investments are expected in government-targeted
industries such as automobiles and alternative energy. As
a result, private investment is expected to expand between
6.0-8.0%, slightly below the 10-year average as investors
may still a “wait and see” attitude towards the effectiveness
of the new government’s policy formulation and
implementation capabilities. Outlook for 2008
For 2008, despite the anticipated adverse global
environment, overall Thai economic momentum should be
sustained, largely resulting from an improvement in
domestic demand. We anticipate a growth rate of 4.5 - 5.0%.
From 2008 onwards, domestic demand-driven growth is
expected to be the dominant driver, as opposed to the
previous export-driven thrust of 2007. Revival in domestic
demand hinges on:
• Pent up demand, notably for durable goods. Demand for
products such as automobiles, electrical appliances,
housing, and motorcycles, which have experienced a
continued slowdown since late 2006, is expected to make
an upturn. Similarly, consumer confidence that reached a
five year low in 2007 is expected to reverse direction
following the formation of a new government. Private
consumption is projected to expand 4.0-5.0%.
• High demand for capital investments. High capacity
utilization across industries indicates much needed
investment expansion in industries that have seen their
capacity utilization rates hover around the 80 - 90% level
in 2006 and 2007, as is the case with the petroleum
products and pulp & paper sectors. Moreover, significant
• Policy platforms of the new government. It is
expected that the policies of the new government will
skew to both rural project spending and rural income
enhancement. The implementation of rural policies is
anticipated to yield a positive effect on grassroots
spending. Already, the FY 2008 budget of THB 1.66
trillion is based on a deficit of THB 165 billion (1.8% of
GDP). In addition, three mass transit projects have been
approved and are expected to commence construction
activities in the second half of 2008. Another positive environment in 2008 will be interest rates,
which are in the low level. The monetary policy and interest
rates are expected to be relaxed further following the US
federal fund rate direction to revive the economy from the
slow down of export. GDP Growth and Inflation Rates
GDP Growth (%)
2006
5.3
2007-f
4.8
2008-f
4.5-5.0
- Private Consumption
3.2
1.4
4.0-5.0
- Public Consumption
2.3
10.8
7.0-8.0
- Private Investment
3.7
0.5
6.0-8.0
- Public Investment
3.9
4.0
8.0-9.0
- Exports (USD terms)
17.0
18.1
7.5-9.5
- Imports (USD terms)
7.9
9.6
11.0-13.0
Inflation
4.7
2.3
3.3-3.8
However, some domestic factors warrant caution and
require close monitoring. Risk factors include political
developments including the effectiveness of a coalition
government, higher fuel prices, continued Thai baht
appreciation, and volatile agricultural prices. Also, the
implementation and enforcement of key business and
financial legislation enacted by the National Legislative
Assembly last year may impose some degree of uncertainty,
in particular towards foreign investors. Some of these laws,
such as the Product Liability Act, have been viewed as less
than investor-friendly.
The external sector that positively contributed to sustaining
economic growth momentum in the past two years will
become less robust due to a stronger Thai baht and a less
favorable global trade outlook. Subprime mortgage problems
and their negative spillover effects - in particular, the impact
on liquidity for internationally active financial institutions as
well as the availability of household credit - are expected to
remain major concerns in both the United States and some
OECD countries. On the currency front, the movement of the Thai baht is still
subject to both internal and external developments. In
particular, the dynamics of capital inflows and currency
speculation are expected to remain key factors behind the
volatility of the Thai currency. For 2008, the Thai baht is
projected to average around THB 31.5 - 32.5 per USD. In summary, overall economic outlook for 2008 remains
favorable. Domestic demand, in particular private
consumption and investment, is expected to become a key
engine driving the Thai economy forward. Key internal and
external risks that must be closely monitored include the
movement of the Thai baht, political developments, oil
prices, and an economic slow down in the U.S. Siam Commercial Bank Public Company Limited 19
Industry and Competition Review
At the end of 2007, there were 18 banks in Thailand,
comprising 15 commercial banks (one a foreign subsidiary),
and 3 retail banks. Among these, Thai Credit Retail Bank
was a new player in the Thai banking industry. The year witnessed new alliances between local and foreign
banks vying to strengthen their position in coping with
upcoming competition. For example, Bank of Ayudhya and
GE Capital Holding Corporation, Thanachart Bank and
Bank of Nova Scotia, BankThai and TPG Newbridge, and
TMB Bank and ING Bank N.V. amortization. There was a sharp decrease in net profits from
Baht 52,430 million in 2006 to Baht 5,507 million in 2007, or
-89.5%. This was due to increases in loan-loss provisions in
compliance with Bank of Thailand requirements, the
adoption of the International Accounting Standard 39 (IAS
39), provisions from loss in collateralised debt obligations,
and corporate income tax. Net loans rose by 5.8% to Baht 4,783,453 million.
Manufacturing loans, accounting for 24.5% of total lending,
grew by 3.5%. Personal/consumer loans (21.7% of total
Comparison of SCB Performance with the Thai Commercial Banking Sector
as of December 31, 2007
Unit: Baht million
Financial Statement
(Consolidated)
Thai Commercial Banking Sector*
Change
% p.a.
SCB
2007
Market Share
%
2007
2006
7,106,265
6,920,275
2.7
1,165,568
16.4
674,263
605,180
11.4
110,903
16.4
Net Loans
4,783,453
4,519,236
5.8
821,378
17.2
Deposits
5,494,976
5,509,488
-0.3
850,229
15.5
231,365
217,580
6.3
39,052
16.9
95,944
97,547
-1.6
22,802
23.8
121,776
135,267
-10.0
28,825
23.7
Loan Loss Provision
90,665
66,756
35.8
4,036
4.5
Corporate Income Tax
25,604
16,080
59.2
7,434
29.0
5,507
52,430
-89.5
17,356
315.2
Assets
Shareholders’ Equity
Net Interest and Dividend Income
Non-Interest Income
Operating Profits
Net Profits
Remark : * The 11 Thai commercial banks listed on the SET
At 2007 year-end, total Thai commercial banking sector
assets were Baht 7,106,265 million, 83.7% of 2007’s GDP
projection. Total assets increased by Baht 185,990 million, or
2.7% year on year, thanks to banking business growth.
lending) grew by 17.1%, thanks to hire-purchase loans and
home loans. Agricultural loans declined by 7.8%, while other
loans grew in line with the economic situation.
Net interest and dividend income still accounted for the
deposits to Baht 5,494,976 million, as interest rates tended to
major source of sector income, as shown by a 6.3% increase
from higher interest and dividend income and lower interest
expenses. On the other hand, non-interest income
decreased by 1.6%, primarily owing to investment loss,
particularly from some banks’ investments in collateralised
debt obligations (CDOs). Despite that, fee and service
income continued to grow.
Operating profits declined by 10.0% as a result of an increase
in non-interest expenses, led by one bank’s posting of an
approximately Baht 12 billion loss from goodwill
The commercial banking sector posted a 0.3% decrease in
decline and depositors shifted their investments to mutual
funds and bonds with higher yields than deposits. In 2007,
deposit interest rates declined in the same direction as the
Bank of Thailand’s policy rate. The sector’s 3-month fixed
deposit rates decreased from 2.75%-4.75% in the early
months to 2.00%-3.13% at year-end, while the policy rate was
cut 5 times, from 5.00% to 3.25% at the end of 2007.
Commercial banks also cut loan rates, and the sector’s
Minimum Lending Rates (MLRs) dropped from 7.50%-8.30%
to 6.875%-8.25%.
Seminar on economic and money market outlooks for SCB customers
As of December 31, 2007, the commercial banking sector’s
gross NPLs* , embracing substandard, doubtful, doubtful
loss, and loss accounts, were Baht 441,599 million, or 7.8% of
the sector’s total loans, an increase of Baht 15,403 million
from Baht 426,196 million or 8.0% of total loans at the end of
2006. Net NPLs* were Baht 232,458 million or 4.3% of the
sector’s total loans, a slight increase from Baht 228,250
million or 4.5%, as some banks applied qualitative loan
classification.
Commercial banks have strengthened their businesses so as
to prepare for economic growth and new regulatory
measures and requirements. Basel II requirements and
consolidated supervision under the Financial Institutions
Act will impact banking capital, while financial liberalization
and the Deposit Insurance Agency Act will lead to
competition among local and foreign banks, non-bank
financial institutions, and investment products – mutual
funds and insurance. As a result, Thai financial institutions
need to improve their services, offer products that meet a
diverse range of customer needs, and develop risk
management to ensure effective control and audit. The
launch of the Change Program in late 2001 has enabled SCB
to consistently improve business models and operations,
prepare for increased competition, and comply with
upcoming measures and requirements. The Bank is now
ready for the competition and to strive for sustainable quality
growth.
* Based on Summary Statement of Assets and Liabilities (From C.B 1.1)
Teamwork
We enjoy
working
as a team.
Sorasak Sirisriboonruang, Retail Loan Processing Officer, Bangkok
“To score in a football game, individual
talent is not enough! It’s a matter of teamwork
along with planning, coordination, and
fervent team spirit. Sorasak applies this
concept not only on the field, but also in his
job, where teamwork drives success.”
Business Overview and Major Developments
BUSINESS STRUCTURE OVERVIEW
Siam Commercial Bank PCL is a major universal banking
group in Thailand, providing a wide array of financial
products and services to respond to the needs of a diverse
client base, both in terms of commercial banking and other
finance related products and services delivered directly
through its group or affiliated companies.
The Bank comprehensively addresses the needs of all
customer segments, well beyond core customer financial
needs such as deposit and loan accounts. Retail services
include mortgage and personal credit, ATM cards and
services, debit and credit cards, currency exchange facilities,
overseas remittances, and investment and bancassurance
products. Corporate and business customers are provided
with a variety of business cash management, international
trade, treasury, debt and capital market products. In
addition, the Bank’s subsidiaries offer a range of financial
services to both corporate and retail clients, such as
securities brokerage, asset management, financial advisory
services, investment banking, and hire purchase services. The Bank has 6 business groups - Corporate Banking
(serving corporate clients), Business Banking (serving SME
clients), Retail Banking (serving individuals and small
businesses), Global Transaction Services (GTS) and Capital
Market, Special Assets (mainly Non-Performing Loans or
NPL workout), and Treasury. The Bank also has 7 major
financial service subsidiaries and affiliates - SCB Securities
(SCBS), SCB Asset Management (SCBAM), SCB Capital
Services (SCBCS), SCB Quant Asset Management, Siam
Commercial Leasing (SCBL – formerly Siam Panich
Leasing), Siam Commercial Samaggi Insurance (SCSMG –
formerly Samaggi Insurance), and Siam Commercial New
York Life Insurance. Collectively, the SCB Group delivers
universal banking products spanning all customer and
product segments.
The Bank’s business units are supported by 7 shared service
units — Risk Management, Finance, Human Resources,
Information Technology, Operations, Corporate
Communications, and Central Administration. In addition,
the Bank has established a Change Program Management
Office which facilitates group-wide strategic planning, and
initiation and execution of strategic projects that are
designed to collectively transform the Bank’s franchise.
Lastly, the Bank has an Audit Group and a Board Secretariat
and Shareholder Services Office.
2007 Business Overview
2007 was another successful year for SCB. Following a strong
growth focused strategy, the Bank ranked 3rd in Thailand in
terms of assets, with total assets exceeding Baht 1.1 trillion.
This reflects an underlying asset growth of Baht 134 billion
or 13% from 2006, significantly ahead of the market. This
outstanding performance was recognized by investors, and
the Bank’s market capitalization was not only the highest
among Thai financial institutions, but also the highest since
its establishment. Furthermore, the Bank successfully maintained market
leadership in various products and services, and in the retail
distribution network through the continued expansion of its
branch and ATM network throughout the country. At the
end of 2007 the Bank had 874 branches, 4,833 ATMs, and
141 exchange kiosks. 2007 Performance Highlights
• The Bank’s asset base expanded at a strong pace. The total
loan portfolio surged 16.1%. Total general loans (excluding
Special Assets) increased 18.9%, with significantly better
asset quality compared to 2006. The Bank’s NPL portfolio
was reduced to 6.1%, reflecting successful debt
restructuring and NPL sales to external investors. • Total income in 2007 soared by 18.6% from 2006 levels,
driven by strong growth in both net interest income, and
fee income arising from the distribution of various Bank
and Group products. The growth in margin and fee based
income was well ahead of its peers, and notably high for
margin based income from the expanding SME and auto
hire purchase segments. Similarly, the growth of fee
income from cards, mutual funds, and bancassurance was
impressive. • In 2007, Operating profit (profit before loan loss
provisions, income taxes, extraordinary expenses, and
minority interest in subsidiaries) was Baht 29.0 billion, an
increase of Baht 4.3 billion or 17.2% from 2006.
SCB Brand advertising
In addition, net profit increased from Baht 13.3 billion in
2006 to Baht 17.4 billion, while return on equity (ROE)
rose from 13.5% in 2006 to 16.5%, reflecting the Bank’s
strong operating performance. will seek to increase the level of employee participation in
these activities and to closely align these activities to its
desire for building a higher level of civic awareness amongst
the youth.
Given that the Bank is in the financial services sector, the
engagement of its employees, together with that of its
customers and shareholders, will ultimately provide it with a
sustainable competitive edge. The Bank has hired the Gallup
Organization to systematically conduct a survey on
customer and employee engagement on a regular basis to
gauge its progress towards achieving World Class
engagement levels. The results reveal that customer and
employee engagement has continuously improved over the
past few years, reaching World-Class scores for the past two
consecutive years. The Bank stands poised to leverage these
engagement levels to deliver even higher growth and
profitability to its shareholders in the years ahead. The Bank believes that the core thrust of these strategies is to
propel it towards its stated vision of being the ‘Bank of
Choice’ in Thailand for all its stakeholders.
The challenging business goals for 2008 can be summarized
by the following key financial targets: •
•
•
•
Return on Equity of 17%
Loan growth of 12-15%
Cost to Income ratio at 52%
Gross NPLs at less than 5%
Plans for 2008
The Bank will maintain the profitable growth momentum of
2007 in the year ahead. The highlights of the 2008 plans are
as follows:
- Positioning of the corporate banking and investment
banking segments to benefit from the likely roll-out of
mega projects by the newly elected government.
- Further market share gains in the SME segment,
particularly in Bangkok.
- Re-enforcing its market leading position in the retail
banking segment through further expansion of the
distribution network in high traffic locations,
development of new capabilities in alternate sales
channels, maintaining #1 position in mortgage, credit
cards, bancassurance, and mutual funds, and making
significant in-roads in consumer lending products and the
small business lending segment.
- Enhancing the Treasury function to enter more
sophisticated product and investment areas.
- Further improving underlying asset quality by both
strengthening risk management practices and effective
resolution of most of the remaining legacy NPLs.
Underpinning the above strategies will be the drive to
continuously transform the franchise through differentiated
capabilities. This will arise from the adoption of innovation
enabling technologies, ongoing application of Six Sigma
practices to improve quality and service efficiencies, and
extending World-Class customer engagement levels to even
more branches across the nationwide network. Finally, the
Bank will strive to maintain its high employee engagement
levels as this serves as the anchor for continued and
sustainable growth and differentiation.
In parallel with the push for business growth and
differentiated capabilities, the Bank intends to increase the
scale and impact of its CSR related activities. In particular, it
SCB signs an agreement to finance a corporate customer
CORPORATE BANKING GROUP
The Corporate Banking Group serves corporate clients with
annual sales over Baht 1 billion. Its client base encompasses
leading corporations in every core business sector in
Thailand. As a leading bank in Thailand with a wellestablished track record, the Group has gained a deep
understanding of client financial requirements and
responded to them with diverse products and services,
particularly through assistance in mobilizing funds by
providing credit and acting as an underwriter of debt
instruments. Amidst a volatile economic situation with
significant increases in energy prices and appreciation of the
Baht, the Group, in coordination with the Treasury Group,
offers hedging instruments to address client financial risks by
taking into account the financial structure and nature of
specific transactions and the nature of each business. 2007 Performance Highlights The growth of the Corporate Banking Group is anchored on
its relationship with existing clients along with the formation
of relationships with new clients by actively providing
innovative financial solutions and shaping new business
ventures. Performance highlights in 2007 include:
• Loan growth Despite an uncertain economic and political
situation, the Group has achieved impressive loan growth
with year-end outstanding lending volume of Baht 286.5
billion in 2007, representing an increase Baht 32.5 billion
or 12.8% from 2006. • Leading Bank SCB has striven to maintain its position as
a major commercial bank in the industrial and service
sectors in Thailand. The Group has provided long-term
financing for many large projects of leading corporations,
including an independent power producer, large
petrochemical manufacturers, a leading oil refinery
company, the Metropolitan Waterworks Authority, a
leading sugar producer, and a leading manufacturer in the
steel & metals sector. The Group’s products and services
also cover facilities related to dealer financing, supplier
financing, and trade finance to large corporations. The
Group works closely with product specialists in offering
clients additional banking products, including hedging
facilities to cover currency and interest rate risks, cash
management, check issuance service, e-dividends, and
more.
• Group Reorganization During the year, the Group
completed a reorganization by creating 14 smaller
business units with additional staff to serve clients in each
business sector closely and efficiently and to expand its
client base. The reorganization enables relationship
managers to focus on providing specialized services,
acquiring new clients, and creating deeper relationships
with clients. In addition, the Group has set up a Strategy
and Business Development unit to develop corporate
banking strategy and business plans to ensure alignment
with Bank policies and strategies; a Management
Information System unit responsible for performance
measurement and reporting, and a Structured Finance
Unit handling large-scale infrastructure projects such as
the metro line and power plant projects that are likely to
be launched soon. The Group has been continuously
developing the skills and knowledge of its human
resources to position it for solid business growth.
Plan for 2008
The Corporate Banking Group plans to continue to expand
its business volume in 2008 with more emphasis on quality
growth by taking into account client financial needs and the
economic and political environment. The Group’s business
plan will be in line with the Bank’s strategy of focusing on
providing a full range of banking products and services to
SET-listed companies and leading corporations in core
business sectors. The Group is committed to maintaining
quality growth and strengthening organizational capability.
Highlights of the 2008 business plan are:
• Providing Universal Banking Services SCB will continue
to provide clients with a full range of banking products
and services. Relationship managers will work closely
with product specialists to offer customized packages and
cross-sell a broad range of products that will be bundled
with those offered by other business groups in response to
the growing sophistication of client financial
requirements. • Creating Value-added Products and Services for Clients
In addition to shortening the credit approval process to
more rapidly respond to clients, the Group will focus on
offering value-added products and services, such as
financing facilities linked to the value chain. The thrust of
these efforts is to increase the financial management
efficiency and competitiveness of customers.
BUSINESS BANKING GROUP
The Business Banking Group was established in June 2006 to
provide financial solutions to small-to-medium enterprise
(SME) customers. Two primary factors were behind the
Group’s establishment: the recognition that this sector
constitutes an important engine propelling the nation’s
economic growth, and the realization that SME financial
needs were significantly different from those of larger
corporations. The Group offers a comprehensive range of
credit products and other financial services to SMEs led by
• Implementation of Wholesale Integrated Network
(WIN) System The Group, together with the Risk
Management Group, fully completed the implementation of
an electronic loan origination system known as the
Wholesale Integrated Network (WIN) system, which
provides a seamless interface for customer management, an
electronic credit approval process, and an automated credit
operations process. The WIN system has enhanced
performance and efficiency in the credit approval process
and enables the Group to respond to its clients more
quickly. The Group also uses the client database for analysis
and improving process efficiency in specific areas.
• Expansion of Service Channels The Group now added
another convenient service channel to provide account
and product information and consultation to corporate
clients via the SCB Business Call Center at 0-2722-2222.
Introduction of the “Bai Pho Business Awards by SASIN” in cooperation
with SCB and the Sasin Graduate Institute of Business Administration
planning skills. Participants can employ the knowledge
gained from the program to more proficiently operate and
improve their businesses as well as to strengthen their
business networks. The continued success of the acclaimed SCB Young Entrepreneur
Program II (YEP)
Relationship Managers through 51 Business Relationship
Centers (BRC) and 36 satellite centers nationwide. 2007 Performance Highlights
The Bank attributed much of its success in 2007 to the
effectiveness and growth of the Business Banking Group.
The Group attained its business target with a lending
increase of 38% yoy, the highest growth rate among other
large banks in the SME segment. Key success factors were as
follows:
• Customer-centric Product and Service Offering In
addition to developing new credit products and
improving existing products to better meet the needs of
each customer sub-segment, the Bank also enhanced the
speed and efficiency of operational process flow. The
Group was able to provide a full range of products with a
high service level to business customers with broader
service coverage through its nationwide branch network.
• Capacity Building Activities under the “Bai Pho
Business Forum” Brand With a strong desire to
differentiate its service by offering value-added activities
to enhance its business customers’ competitiveness, the
Group offered various activities under the “Bai Pho
Business Forum” brand throughout the year. More than 50
activities, such as seminars, business matching events, and
CEO Forums were organized in Bangkok and other
provinces to strengthen the capabilities of Thai
entrepreneurs. In addition, the Group maintained its leadership position
by initiating new activities and projects to promote the
overall SME business sector, including “Bai Pho Business
Awards by SASIN” and “SCB Young Entrepreneur
Program” (YEP) activities. The Group, in collaboration
with the Sasin Graduate Institute of Business
Administration of Chulalongkorn University, established
the “Bai Pho Business Awards by SASIN” project to
recognize the outstanding performance of entrepreneurs
whose accomplishments can serve as an inspiration and
model to others. The SCB-YEP project is designed for
second generation entrepreneurs, with the objective of
enhancing their business management and strategic
• Workforce Increase to Support Business Expansion
More than 100 Relationship Managers and Account
Analysts have been employed throughout the country to
better serve business customers and to support increased
business. The Group also revamped its training system to
build the capacity and efficiency of its staff in providing
financial services and advice.
• Enhancing Service Channels and Networks The Group
opened one additional BRC and 12 satellite centers in
2007 to support increased business and to expand its
geographic footprint in high business opportunity areas.
In order to provide alternative contact channels for
business customers, the SCB Business Call Center was set
up to provide information and advice on the Bank’s
products and services at Tel. 0-2722-2222.
• Implementation of Electronic Loan Origination System
The new automated loan origination system has been
fully implemented nationwide since January 2007. This
advanced system enables the Group to provide seamless,
efficient and fast credit origination. In addition, the
information systematically integrated through the system
has facilitated better customer analysis and the
identification of related opportunities.
• Internal Restructuring The Business Banking Group has
implemented centralized strategic planning and
performance measurement in managing its Business
Relationship Centers (BRC) and satellite centers. Two new
special teams, the “Business Bank-Problem Loan
Management Team” and the “BRC Management Excellence
Team” have been established to monitor and manage
troubled loans and to effectively coach and develop the
managerial and marketing skills of BRC managers.
Plan for 2008
In 2008, the Group will continue the expansion of its smallto-medium customer base by offering differentiated
products and value-added services that will support this
customer segment. Highlights of the 2008 plan are as follows:
• Delivering new client-focused solutions to suit customer
segment requirements The Business Banking Group will
continue developing and enhancing its products and
services by focusing on tailoring and offering facilities that
meet the specific financial needs of each business
customer sub-segment in terms of business dimension
and industry sector. The Group will leverage the
automated loan origination system to support strategic
market planning, customer analysis, and product
development, to better serve the true needs of business
customers. • Being the Trusted Financial Advisor for Business
Customers The Bank plans to upgrade its services to
business customers by improving the ability of
Relationship Managers to serve clients efficiently as
“trusted financial advisors”. In-depth economic and
industrial information will be provided to support clients
who are facing increasing challenges in today’s complex
and fast evolving business environment. • Channel and Network Expansion In 2008, the Business
Banking Group will open another two Business
Relationship Centers and employ more than 160 staff,
mainly Relationship Managers, to support business
expansion in metropolitan and rural areas. The Group
also plans to expand its service capability through the SCB
Business Call Center to cover a more sophisticated and
wider range of services, as well as to introduce new
service features matching business customer behavior.
• Continuously offering activities under the “Bai Pho
Business Forum” brand to maintain our market leadership
in providing value-added experiences to business
customers To enhance customer competitiveness in
responding to new challenges lying ahead and to promote
sustainable growth of client businesses, the Group will
continue to offer a series of activities to reinforce client
business capabilities and to open new business
opportunities to its customers. The Group will also
develop pioneer programs to serve the specific needs of
each customer group.
2007 Performance Highlights
In spite of flagging consumer confidence amid economic and
political instability during 2007, the Retail Banking Group
exceeded its ambitious revenue target by 16% as a result of
well thought-out strategies, effective execution capabilities,
and its extensive nationwide branch network. Performance
highlights for 2007 include:
• Channel networks The Group maintained its leadership
position in distribution, with a total of 874 branches (an
increase of 81 branches), 4,833 networked ATMs (an
increase of 1,005 ATMs), and 141 foreign exchange kiosks.
This footprint expansion provided unparalleled
convenience and service availability to almost ten million
Bank customers nationwide. In parallel, significant
improvements have been made in the quality of its
Internet banking and ATM functions to facilitate
customer use.
• Market leadership The Group continued to be Number 1
in key retail products, such as mortgage loans, credit
cards, bancassurance, and mutual funds. The Group also
maintained its Number 1 position as mortgage lender in
• Improving the credit approval process and operations to
achieve service excellence The Business Banking Group
plans to further speed up the credit approval process, as
well as to review and improve operational workflow to
enhance customer satisfaction. The Group will also
conduct customer satisfaction surveys in a continuous
effort to monitor progress toward meeting its goal of
achieving World-Class service levels at all its customer
touch points.
RETAIL BANKING GROUP
The Retail Banking Group is the market leader in the Thai
consumer financial services marketplace and, over the year, it
has continued to strengthen its franchise. The Retail Banking
Group also closely collaborates with the Bank’s subsidiaries
and affiliates, including SCB Asset Management Co., Ltd.,
Siam Commercial Samaggi Insurance PCL, Siam Commercial
Leasing PCL, and Siam Commercial New York Life PCL, in
developing exciting new products and enhancing existing
products to meet the needs of retail customers. The Group operates with the largest distribution footprint in
Thailand, namely, it has the largest number of branches and
ATMs. It is also Number 1 in key retail product areas, such as
mortgage loans, credit cards, bancassurance, and mutual
funds. Launch of the “Combo Set” deposit campaign
the commercial banking sector owing to strong
relationships with major property developers. The Group
continued its credit card success story and reached the
Number 1 position in both card numbers and cardholder
spending. Through partnership with leading retailers, a
series of attractive marketing campaigns were launched
all year round. The Group maintained its dominant
position in bancassurance as well in the face of stiff
Plans for 2008
The Group has ambitious plans to achieve sustainable profit
growth in the year ahead, while maintaining and enhancing
its position as the undisputed retail banking leader in
Thailand. Keys to this ambition are the continued expansion
of the Bank’s distribution network, product offerings tailored
to customer needs, strong relationships with customers, and
service excellence. This growth will also be supported by
more efficient internal processes and enhanced risk
management capabilities. Highlights of plans for 2008 are as follows:
SCB Platinum credit card presents customer benefits and privileges
under its “SCB Double Point Double Bonus Double Happiness”
campaign
competition. With a strong cross-sales focus and a
sizeable distribution network, bancassurance contributed
as much as 14% of total fee income to the Bank. With
respect to mutual funds, the Bank achieved dramatic 70%
growth in total funds under management, and thus
attained the Number 1 position in this product segment
as well. The Group’s retail market dominance can be attributed to
effective analyses and utilization of customer data, a
highly competent sales force, and efficient internal
origination processes. • World-Class service standard The Group has attained
World-Class service standards for 4 consecutive years, as
measured by the Gallup Organization. At 2007 year-end,
almost 600 branches, or over 60% of the total number of
branches, attained World-Class service standards.
Through staff commitment to service excellence,
customers benefited from a consistent and World-Class
service quality experience. This higher level of customer
engagement is expected to generate significantly
increased customer loyalty, greater wallet share, and
sustainable future growth. • Employee engagement In 2007, under the Bank’s Voice of
the Employee program, the Retail Banking Group
registered a score higher than the Bank’s average target.
The Voice of the Employee program is a Gallup
Organization service measuring employee engagement
through voluntary employee questionnaire responses.
The results for 2007 reflect improving employee
engagement, which in turn will lead to deeper customer
satisfaction and higher sales. 28 Annual Report 2007
• Expanding channel network The Group plans to maintain
its Number 1 position in the distribution network by
expanding its distribution strength in terms of both quantity
and quality. In 2008, the Group plans to forge strong ties
with leading shopping malls and retailers to open more
branches and ATMs in order to expand its footprint in high
business opportunity areas in Bangkok and upcountry.
Other service channels will also be improved and
diversified, including Internet banking, product offerings
through the Call Center, and the rapid expansion and reskilling of its nationwide direct sales force.
• Strengthening product leadership The Group aims to
sustain and enhance its Number 1 position in the flagship
retail products - mortgage loans, credit cards,
bancassurance, and mutual funds - through forging strong
relationships with major property developers, offering
credit cards with features tailored to the different lifestyles
of each market segment, implementing a cross-selling
approach for bancassurance products and mutual funds,
and bundling products to increase customer loyalty. In
addition, the Group plans to build its market share in both
the auto loans (hire purchase) and consumer finance
portfolios with the aim of taking market leadership
position in both in the year ahead. • Moving towards the next level of service excellence
According to Gallup Organization findings, a key feature
of leading organizations worldwide is that they work to
consistently improve their service standards. The Retail
Banking Group has followed suit by setting a very
challenging goal of attaining World-Class service
standards throughout the Bank’s nationwide branch
network, as well as at the Bank’s Call Center. Over the
coming years, the Group plans to sustain these WorldClass standards and, at the same time, ensure that there is
a higher level of consistency of these standards across the
branch network so that customer engagement continues
to rise from the already high levels.
• A highly engaged workforce The Retail Banking Group is
by far the largest in the Bank in terms of number of
employees. The loyalty and engagement of this workforce
is crucial to its future growth plans. Accordingly, the
Group will continue to build on the existing ‘esprit de
corps’ – already amongst the highest in the Gallup
Organization universe. These efforts will increasingly be
centered on developing new capabilities across the
organization. PRIVATE BANKING The Private Banking was established within the Bank as a
separate unit in late 2004 to develop capabilities at the topend of the retail market – broadly defined as customers with
a deposit or investment relationship with the Bank in excess
of Baht 20 million. The Unit maintains a strong position as
the market leader in this segment despite growing
competition. The Private Banking continues to have the
most assets under management in Thailand, and continues
to launch the most innovative and attractive investment
products in this market segment.
In 2007, the Unit successfully increased its assets under
management by 19%. This remarkable business growth was
mainly due to 6 key factors: • New Business Model The new relationship-based Wealth
Management business model provides professional
personalized investment advisory services for every
customer in this segment.
• New Investment Products A series of new products
(using Structured Notes) was developed to meet
customer needs and requirements for higher returns.
These played an important role as deposit alternatives for
SCB clients, and are expected to provide the Unit with a
competitive edge over the next few years.
• Pilot Branches The “Pilot Branches” program was
launched in 2006 and has proved successful as evidenced
by growing business volume and product penetration. A
team of specialists from a core competency center at the
Head Office provide investment advisory services to
customers at these branches.
• Private Banking “Red Carpet Program 2007” A series of
very exclusive customer events and other unique
customer services were offered in order to deepen
customer engagement and attract new customers. Each
event was carefully tailored to match client profiles &
lifestyles, and were well-attended by the Unit’s clients.
• Private Custody Service and Concierge Custodial and
maintenance services were provided for client securities.
In addition, a personalized concierge service was created
to enhance client relationships.
SCB and the Communications Authority of Thailand (CAT) Telecom
PCL launch the internet payment service for overseas calls
importance of confidentiality and related security
procedures is widely recognized.
Plans for 2008
The Private Banking expects to increase assets under
management by at least 20% in 2008. The Unit will continue
to differentiate its services through service excellence and
innovative products that fit the customers risk/return profile.
Highlights of plans for 2008 are as follows:
• Improved Wealth Management System A new Wealth
Management System will be implemented to provide
more comprehensive, efficient, and sophisticated
investment portfolio management services for customers.
The new system represents a paradigm shift in capabilities
and will lead to wider and deeper customer relationships.
• Product Innovation The Unit plans to expand the reach
and depth of its “Structured Products” to serve a broader
clientele. In addition, the Unit will create innovative
products through collaboration with the SCB Group’s
network, to provide clients with comprehensive
integrated wealth management.
• Extension of Services: The Unit will continue to expand
its reach to all key branches nationwide so as to grow its
market share and better service the top-end of the market
at these locations.
• Website Launch: A newly-created website at
www.scbprivatebank.net will be launched in 2008 to
provide clients with direct access to the Unit’s products
and services.
• Confidentiality In parallel with the growth of the Unit
business, a strong drive was initiated to improve the
confidentiality of customer-related information. This
drive was anchored on the Bank’s new information
security policy and practices. In particular, a staff
awareness campaign was initiated to ensure that the
GLOBAL TRANSACTION SERVICES (GTS) AND
CAPITAL MARKETS GROUP
SCB’s Global Transaction Services (GTS) and Capital
Markets Group is responsible for providing business
customers of various sizes as well as government agencies
and state enterprises with banking transaction and capital
market products and services. Major cash management products under GTS include
collection, payment, and liquidity management. Also, it
provides trade finance to facilitate international trade
remittance and loans. The Group’s World-Class secure and
efficient Internet Banking services, SCB Business Net for
Cash Management, and SCB Trade for Trade Finance allow
customers to make convenient, quick, and accurate banking
transactions anywhere and anytime. The Capital Markets division mainly caters to customers
listed on the Stock Exchange of Thailand (SET), offering
bond issuance and underwriting services and Corporate
Trust services involving custodian, fund trustee, and registrar
services. 2007 Performance Highlights receivables efficiently. The ePP service is well accepted by
large corporate customers that have dealers or
distributors across the country, because it not only saves
costs and order turnaround time, but also greatly
improves cash flow management.
• Flawless Service Quality – The Group is well aware of its
customers’ high expectations for service quality. It has
therefore implemented a Zero Tolerance for Failure
project to streamline workflows, enhance systems, and
ensure accountable service behavior among employees
from upstream to the back office. In 2007, the Group
guaranteed payroll customers that they would receive
payment by 6 AM payroll day or it would refund their
fees. It successfully delivered payroll payments to all
customers, on-time, throughout the year.
• Organization Synergy – The Bank merged the Trade
Finance and Capital Markets divisions with the Business
Cash Management Group to strengthen the focus on
business accountability (Sales and Products) and leverage
shared services (e-Channel and Shared Services), by
obtaining better leverage from a robust sales force,
instituting solid after-sales service, and establishing echannel teams so as to minimize costs.
In 2007, the GTS and Capital Markets Group maintained
market leadership position in advanced product innovation
and efficient service quality in terms of cash management,
and successfully increased market share in the trade finance
business, while retaining its leading position in the custodian
business. Key 2007 achievements include:
• Business Success – 39 percent of the Bank’s business
customers use the Business Net Internet banking service.
During the year the volume of transactions doubled, and
this use of the SCB Business Net and the Electronic
Presentment and Payment (ePP) channels not only
increased fee income, but also reduced operating costs, as
the electronic channel is a low-cost option. Trade finance
business volume grew by 33%, much higher than the
country’s international trade volume growth of 14.5%. The
rapid growth allowed the Group to capture the #2
ranking, with a market share of about 12.3% in Thailand.
On the Capital Market side, the Group continued to gain
trust of the largest funds in Thailand, which enables the
Custodian business to be a solid #1 with a market share of
about 40%.
• Leader in Product Innovation – The Group is well
recognized by its customers as the leader in product
innovation, especially for its e-Business channel. This
systems are designed for customer convenience and
information integrity, so that customers can focus on their
core business. For example, the Electronic Presentment
and Payment (ePP) service presents invoices on the
Internet and buyers can check accuracy and make
payments online. Sellers can receive payments instantly,
obtain a verification report, and reconcile account
“SCB Easy Net” Online Banking
Plans for 2008
In 2008, the GTS and Capital Markets Group will continue
to expand its lead in product innovation, enhance product
and service capabilities, and continue flawless executions.
Key strategies are as follows:
• Expand Business – The Group will work closely with key
customers to penetrate and dominate strategically
targeted segments with high potential. Aggressive
marketing campaigns will be deployed to promote the
electronic channel to reduce cost and increase efficiency
for both the Bank and our customers. • Innovate Products – The Group will continue to launch
innovative product and service features focusing on
customer convenience, speed of delivery, and information
accuracy, so as to cater to customer business expansion in
neighboring countries.
• Enhance Capabilities – The Group will strengthen
system capabilities to infinitely respond to our customers’
complex business needs and cross-border requirements.
End-to-end system security is also our top priority to
protect our customers from fraud.
• Extend Flawless Execution – The Group will extend the
successful Flawless Execution Initiative to products other
than SCB Business Net to achieve the highest customer
satisfaction levels. SPECIAL ASSETS GROUP
The Special Assets Group was established in 2002 to manage
the SCB legacy portfolio of Non-Performing Loans (NPLs) and
Non-Performing Assets (NPAs). The impetus for the creation of
the Special Assets Group was the large amount of legacy NPLs
that arose in the aftermath of the 1997 “Asian Economic Crisis”. As of December 2007, the Bank’s NPL portfolio (on a Bankonly basis) stood at Baht 47 billion on a gross basis (or Baht
22 billion on a net basis), comprised of Corporate, SME, and
Retail loans. The Bank has assigned SCB Capital Services
(SCBCS), an SCB subsidiary, responsibility for SME and
Retail NPLs in Bangkok and nearby provinces, while NPLs in
provincial locations have been managed by 21 Special Asset
Centers across 4 geographic regions. The Bank has policies
to restructure loans for cooperative debtors who have the
potential ability and willingness to meet their work-out
obligations, but, at the same time, takes legal action
immediately against non-cooperative debtors. NPAs at the
end of December 2007 stood at Baht 16 billion (5,523 asset
items). The Bank acquires NPAs by purchase through the
legal auction that takes place at the end of the judicial
process, or by accepting title deeds in lieu of payment. The
goal of managing NPAs is to dispose of acquired assets
rapidly and at an acceptable price.
The Special Assets Group, in collaboration with SCBCS, has
successfully resolved a significant number of NPLs and
achieved its targets. Performance highlights of the Group for
2007 include: • Decreasing the NPL Ratio The Group decreased the NPL
ratio (gross basis) from 7.5% at the end of 2006 to 5.7% at
the end of 2007, or 2.8% on a net basis. Part of this
reduction was due to NPL portfolio sales of approximately
Baht 10.7 billion. • NPA Sales The Group successfully sold 1,363 items
valued at about Baht 4 billion, close to the target set at the
beginning of the year.
NPL auction signing ceremony with Sukhumvit Asset Management
Co., Ltd Plans for 2008
The Bank plans to reduce gross NPLs (Bank only) to around
5% in 2008. NPL resolution will be focused on the remaining
portfolio of legacy NPLs. Highlights of the 2008 business
plan are:
• Focus on Legacy NPLs The Group has a policy of
speeding up its debt collection process but at a minimized
loss ratio. In addition, the Group continues to seek
interested investors for NPL portfolio sales. The Bank will
also implement a new, effective system for problem-loan
management during the year. Lastly, the Group will strive
to keep the NPL relapse at a minimal rate.
• Expeditious NPA Sales The Group aims to sell NPAs at a
minimized loss ratio through the branch network,
brokers, big-lot sales, and NPA events will be held in
Bangkok and upcountry.
TREASURY GROUP
The main focus of the Treasury Group is to manage the
liquidity and interest rate risks for the SCB Group. In
addition, the Group deals with the trading of currency,
bonds, and derivatives as well as the management of fixed
income investment portfolios for the Bank based on
guidelines set by the Bank’s Assets and Liabilities Committee.
The Treasury Group is also responsible for offering a full
range of treasury products responding to the risk
management needs of customers in terms of liquidity,
interest, and exchange rate exposures. Finally, the Group
provides investment alternatives to Bank customers and
provides these through multiple channels. In 2007, the Group focused on improving internal processes
and workflows in a bid to launch innovative products for
money markets and to facilitate compliance with the IAS39
accounting standard and BASEL II accord provisions relating
to the treasury business.
Plans for 2008
During the year, the Group received a number of awards.
These reflect the Group’s continued service quality
improvement efforts and development of innovative new
products. In turn this has resulted in a growing volume of
business and customers.
Uncertainties in both local and global financial markets,
especially interest rates and FX volatility, may increase the
level of financial risk in the upcoming year. The Treasury
Group plans to improve the efficiency of its financial
management services by developing new products that
better match customer needs in these situations as well as
the prompt provision of essential information and advice to
customers.
• FX Business In addition to offering a full range of FX
services for customers, the Treasury Group has started
the management of FX options portfolios to offer more
attractive and flexible hedging solutions to customers
looking to mitigate FX exposure. The Group also provides
updated information on economic and financial news to
customers to aid decision-making. In terms of settlement
processes, it ensures that customers receive their funds
accurately and promptly according to their instructions.
This contributes to customer satisfaction, which, in turn,
encourages them to use other Bank services.
• Fixed-income Business The Bank still maintains its No. 1
position in fixed-income trading as the top underwriter of
SOE bonds, prompting the Bank to become a trading
center for government bonds offering a full range of
investment choices for all types of investors. It also offers
alternative fixed-income products such as corporate
debentures, short-term debentures, and various types of
structured notes.
• Derivatives Business The Group has recently added more
options on the assets side for institutional investors,
especially structured notes, i.e. bank paper with
embedded derivatives, that customize risk and return
profiles to serve specific investor needs. On the liabilities
side, it works with many large corporate and state
enterprises to hedge interest rate and FX exposure on
long-term foreign currency denominated loans. The
Group has a leading role in the local credit derivatives
which are used by Thai companies utilizing credit
derivatives to optimize their financial requirements.
In 2008, the Group aims to strengthen its competitiveness by
adding a variety of financial management products through
its FX Online service. In particular, it will add more types of
derivative transactions, both foreign exchange and interest
rate, so that customers can better manage their investment
portfolios. Creating these new products will enhance the
Group’s flexibility in responding to customers’ diverse needs.
It also plans to introduce other new products, such as credit
and commodity derivatives.
SCB SECURITIES CO., LTD.
SCB Securities Company Limited (SCBS) was established in
1995 as a wholly-owned subsidiary of the Bank. The
Company has rapidly grown to become a leader in offering a
complete range of financial advisory and securities brokerage
investment services for local and foreign institutional
investors, as well as retail investors via “Tradezone” branches
nationwide and www.scbsonline.com. In addition, SCBS
offers timely and quality investment analyses that are widely
recognized in Thailand’s capital markets.
During the past 2 years, Thailand’s capital markets have seen
extremely high volatility due to political uncertainties which
have had considerable impact on economic factors. SCBS
has accordingly adjusted its cost management plan, while
increasing service efficiency, by reducing operating costs and
merging 15 branches into 8 branches, in line with the
stagnant equity market situation. Despite such challenges,
SCBS managed to achieve superior performance as follows: • Maintained its leadership in investment banking both in
the mergers & acquisition (M&A) advisory business, with
deals valued at USD 2,618 million in total, and in the
equity offering business, with deals valued at USD 90
million in total. Some of the company’s prominent deals
this year included the merger between Aromatics
(Thailand) PCL and Rayong Refinery PCL, and the initial
public offering (IPO) of Total Access Communications
PCL (DTAC) on the Stock Exchange of Thailand.
• Expanded its derivatives agent business by providing
services to customers who are interested in investing in
SET50 Index futures and options. The Company registered
over 800% growth in this business in the past year.
The innovative “FX Online” treasury service
• Established an Office of Chief Economist in coordination
position and is the leading asset management company in
Thailand.
An advertisement used for the promotion of SCB’s Long Term Equity
Fund
with the Analysis Department, to produce and present
macroeconomic information and analyses that are useful
for both corporate and investor clients in making
investment decisions. SCBS’s equity analyses cover more
than 100 listed stocks, which account for over 87 % of
total market capitalization.
Plans for 2008
SCBS is still committed to its goal of delivering services as a
client’s “Financial Partner.” Key goals in 2008 are as follows:
• Maintain leadership position as a one-stop service
securities house by offering new financial products and
services in investment banking to meet the diverse needs of
corporate clients, and achieving the goal of being among the
top 5 brokers in the market with at least 5.5% market share.
Apart from its leading position in the mutual fund business,
SCBAM was ranked Number 1 in the industry for having the
largest AUM (assets under management) as at February
2007. Through its impressive fund management
performance, SCBAM has benefited from growing customer
trust and confidence in its products. This is supported
through the knowledge and service excellence of its sales
representatives. Despite the volatility of the stock market and
political instability, SCBAM achieved its aggressive 2007
growth target through the effective execution of well
thought-out strategies. Performance highlights for 2007
include: Mutual Funds: • Number 1 rank in Mutual Funds, with AUM of Baht 301
billion (21.1% market share), an increase of 76.7% from
2006.
• Largest Money Market Funds, e.g. Saving Fixed-Income
Fund (SFF).
• Largest Long-term Equity Funds (LTFs).
• Largest Foreign Investment Fund (ECP) invested in shortterm fixed income papers • Continued maintenance of sustainable relationships with
existing customers (64,500 in 2007), while continuing to
expand customer base among both individuals and
institutions. • Achieve leadership in equity and economic analysis by
delivering quality macroeconomic analyses, increasing
derivatives analyses, and further developing the existing
analysis platform to gain universal acceptance.
Provident Funds: • Build service standards to set benchmarks in Thailand’s
capital markets by continually developing a knowledgebased culture in the organization, and by training
personnel to be well-rounded in a wide range of products,
so that they can provide investment advice using a crossselling approach to satisfy customer needs. • Provident fund customer base expanded to 700
companies, a 20.3% increase, with more than 190,000
members.
SCB ASSET MANAGEMENT CO., LTD.
SCB Asset Management Co., Ltd. (SCBAM) was founded in
1992 by the Bank and its business partners to provide
coverage for mutual, provident, and private funds. SCBAM
became a wholly-owned subsidiary of the Bank after it
acquired all SCBAM shares in 2007.
As an SCB Group subsidiary, SCBAM leverages from the
Bank’s branch network by offering its products and services
through the entire nationwide branch network. This strategy
has enabled SCBAM to grow from strength to strength,
rapidly increasing market share and assets under
management to the point that it now enjoys the Number 1
• SCBAM is ranked 4th, with a 11.7% market share, an
increase of 17.5% from 2006.
• SCBAM cooperated with the Bank and its subsidiaries to
cross-sell other related products to customers, including
Bancassurance, Personal loans, and Credit cards.
Private Funds
• Private fund related AUM increased 29.7% from 2006.
• Continued customer base expansion through mutual fund
and investment advisory.
Plan for 2008 SCBAM will continue its current strategy to sustain its
Number 1 position in the investment management business
by maintaining its strong focus on meeting the needs of
customers and providing a superior fund management
• Loan Growth The Company was able to expand new hire
purchase lending by 28%, or Baht 48.5 billion. The
Company was also able to maintain its market share in
new lending among the Top 3 auto loan providers in the
industry. The ratio of new car to used car loans was 81:19,
and net hire purchase receivables were Baht 74.3 billion at
the end of 2007.
• Asset Quality With the development of an efficient loan
receivables tracking system and close monitoring, nonperforming loans decreased from 2.3% as at December
2006 to 2.1% as at December 2007. An advertisement to promote hire purchase loans
capability. SCBAM will extend customer relationships by
focusing on the following areas: • Distribution channels – in addition to the Bank branches
• Product development
• Customer relationship activities and social contribution
programs SIAM COMMERCIAL LEASING PCL
Siam Commercial Leasing PCL (SCBL) was established in
1976 as Siam Panich Leasing PCL, a hire purchase and
leasing financial services provider. In early 2006, the Bank
successfully made a tender offer for Siam Panich Leasing
shares and became the major shareholder with 92.5% of total
shares. As a result, in July 2006 Siam Panich Leasing was
renamed “Siam Commercial Leasing PCL” to indicate its
close relationship with the Bank. This strong relationship
ensures clients of the same level of World-Class service
standards as those provided by the Bank. With the Bank
currently holding 99.1% of its total shares, the Company
delisted its common shares from the SET effective
September 14, 2007.
Under the Bank’s management policy the Company has
developed more efficient operational procedures in order to
emerge as the leader in the hire purchase business. The
Company provides service channels through its head office
and 14 upcountry branches, and plans to continue expansion
through utilizing the Bank’s branch network.
As a result of support from the Bank in the provision of
funds, information technology solutions, risk management,
and human resource management, the Company was able to
dramatically improve its operations and meet the ambitious
goals set out in its business plan. In spite of a slowing
economy and high oil prices, the Company’s business and
market share have grown strongly. Key performance
indicators for 2007 included:
• Service Channel Expansion In order to increase
convenience and service speed for customers and
partners, the Company expanded customer payment
channels through the provision of automatic account
deduction for installment payments and fees. In addition,
the Company expanded payment channels for partners
and/or dealers through automatic account transfers.
Plans for 2008
The Company has set an aggressive business plan consistent
with the Bank’s key strategies as follows:
• Expanded Dealer Coverage This initiative will focus on
building excellent relationships with targeted dealers and
increasing sales persons to cover more showrooms.
• Build Up Expertise in All Areas This initiative will focus
on further optimizing processes for business origination,
credit monitoring, and collections. With improvements to
these processes, the Company will be able to efficiently
support rapidly growing business volume.
• Increasing Fee Income This will be achieved through
encouraging customers to buy both car insurance and life
assurance at the same time as auto loans, thus providing
more fee income for the Company and at the same time
providing added protection to customers. SIAM COMMERCIAL SAMAGGI INSURANCE PCL The Siam Commercial Samaggi Insurance Public Company
Limited (SCSMG) began as a provider of non-life insurance
services, and has experienced strong and steady growth since
its formation, recently marking its sixtieth anniversary on
July 20, 2007. The Company underwrites all classes of nonlife business, including fire insurance, marine insurance,
motor insurance, and miscellaneous insurance which
includes personal accident, health coverage, and industrial all
risks insurance. The Company is a key subsidiary of the
Bank, which has 58.9% shareholding in SCSMG. As at December 31, 2007, the Company offered its services
through a network of 13 branches and 15 service counters in
principal provinces nationwide, as well as through an inhouse telemarketing team. It also operates through brokers,
agents, and business partners such as financial institutions
and auto dealers, along with Siam Commercial Bank
branches and the SCB Group which represents a major
service network for the Company. 2007 Performance Highlights
During the course of 2007, the Company’s business
expanded considerably, achieving strong underwriting
growth. Total premiums written were reported at Baht 3.3
billion, or a 64.2% increase compared with Baht 2.0 billion in
2006. Net profit for 2007 was Baht 285 million, an increase
of 4.5% over the previous year. Key achievements in 2007
were:
• Total Premiums The Company moved up from 15th place
in last year’s direct premium rankings to 6th among 73
insurers, with a 3.2% market share (according to the Office
of Insurance Commission’s rankings as of September 30,
2007). This was the result of significant expansion across
all business lines, particularly the motor sector and the
personal accident category under the miscellaneous
sector, which grew by 165.8% and 77.1%, respectively.
• Co-insurance The Company succeeded in maintaining and
winning co-insurance contracts for some very large
accounts. These include the underwriting of Nok Air’s fleet
worth over Baht 22.17 billion for two consecutive years,
and the underwriting of Mahidol University’s Centers of
Excellence in Bio-Medical Research and Medical Care
construction project worth more than Baht 6.15 billion.
• Branch Processes Improvement In keeping with its
growing business in 2007, the Company not only
extended its network of branch offices and service
counters, but also made improvements to branch
processes. The aim was to enhance speed and efficiency
in the provision of services and to cope with increasing
workloads, including the timely issuance of motor policies
and prompt claims payment by branches. Plans for 2008
The Company has set itself the goal of becoming one of the
country’s top five non-life insurers and, at the same time,
creating value for shareholders through earnings growth.
Business plans for 2008 continue to focus on ensuring steady
growth, increasing premium income in the most profitable
segments, and achieving greater economies of scale, thereby
reducing operational costs. Major plans for 2008 include:
• Products & Services Expanding further into the retail
business with products and services that meet the lifestyle
of each customer group, while broadening the existing
client base by increasing renewal process efficiency. • Multi-channels Recruiting, training, and developing more
individual agents to higher standards for both Bangkok
and outlying provinces.
• Organization-wide process redesign Improving
operational processes and procedures organization-wide
so as to accommodate business expansion as well as bring
service quality up to international standards and towards
maximum customer satisfaction. • Preparation for new regulations Making the necessary
preparations for risk-based capital requirements, as well
as any other changes to controls and regulations under the
new Non-Life Insurance Act which will be coming into
force in the near future. An advertisement of Siam Commercial Samaggi Insurance PCL
personal accident insurance
• Motor Business Expansion in the motor business was
exceptionally successful, both in the retail market
nationwide and in the underwriting of fleet business from
well-known companies like Siam Car Rent Group, World
Class Rent-A-Car Co., Ltd., and Siam Commercial Leasing
PCL. As a result, the Company has jumped from 32nd
place as at the end of 2006 to 9 th place at the end of
September 2007 rankings for direct motor premiums. • Product Development New insurance products were
introduced, while existing products and services were
improved and developed to better serve the needs and
lifestyles of customers and offer clients a greater choice of
solutions. These ranged from the special “Kumkha
Ounjai” 3rd class motor policies, personal accident policies
with medical payment coverage, gold shop insurance, to
insurance for third-party liability for building surveyors. CHANGE PROGRAM At the end of 2001, the Bank launched a Change Program to
transform its franchise through enhancing its profitability
and developing its competitive capabilities. In the first phase,
Atmosphere of the “Staying Competitive” Change Program Forum
the Program focused on re-building the ‘foundation’ of the
Bank in terms of the underlying business and operating
model, together with the supporting systems and processes
that were required to compete. In the second phase, the
focus shifted to projects that supported business growth in
its core businesses, particularly in the retail banking segment.
In the third and latest phase, the emphasis is on building
capabilities to support differentiation.
The Program is managed by the Change Program Steering
Committee (CPSC), under the oversight of the Board of
Directors. The CPSC is chaired by the Chairman of the
Executive Committee, and its management comprises the
President and other senior executives of the Bank. The
“Change Program Management Office” serves as the
secretariat to the CPSC and it supports and monitors all
projects initiated by the CPSC, and disseminates Program
updates to SCB employees through a number of
communication channels. Since inception, over 75 projects have been successfully
completed, including the development of new business and
operating models, implementation of major new
information systems, and completion of radical business
process redesign initiatives. A recent assessment of the
benefits realized through projects completed under the
Change Program indicated that there has been a significant
uplift to the operating profits, ROE, and business volumes.
Additionally, the Bank has been able to develop above
average project execution capabilities and foster ‘world class’
levels for employee and customer engagement. In short, the
Change Program is the springboard for many of the recent
achievements of the Bank.
The projects completed during the year included the
following initiatives:
• The full implementation of all modules of the ambitions
Wholesale Integrated Network (WIN) project for the
Corporate Banking and Business Banking Groups of the
Bank. This included three distinct systems – a Borrower
Risk Rating system, a Portfolio Management System and
an end-to-end Loan Origination System. As a result, the
Bank is competitively positioned in these segments to
offer fast and efficient credit approvals with improved risk
management controls.
• The Zero Tolerance for Failure project was initiated to
improve business efficiency and eliminate the causes of
potential operational errors for four key Business Cash
Management (BCM) products using the Six Sigma
process improvement methodology, The outcome
following implementation exceeded the Bank’s
expectations and resulted in the offering of an
unprecedented ‘guarantee of service’ to customers using
this service. In turn, this has increased business volumes.
• The SCB – King Power Cash Card Enhancement project
added new and attractive features to this unique and
innovative product with an aim to increase business
volume and to expand the customer base. Already, one of
the two types of cards on offer has been sold-out and the
Bank has acquired significant new capabilities in the
deployment of these new payment technologies.
• ‘Closing Legacy Gaps’ for the Basel II Standardized
Approach project was initiated to develop compliance
within the legacy IT systems and related policies,
practices and procedures with the requirements of the
new Basel II regulatory framework. Through closure of
these policies, processes and procedures related gaps in
many lending products, the Bank expects that the capital
requirements under this new framework will be
minimized and that the Bank would be well positioned to
move to the next level of compliance in this new
framework - the Internal Ratings based approach. • The IT Strategic Planning project was initiated to
develop a road map for the deployment of new systems
and technologies that will efficiently support the business
growth and expansion objectives – taking into account
global best practices and emergent technologies. A
number of critical new projects have been identified and a
well justified technology investment plan agreed to for the
next few years.
Atmosphere of the “Dare to Dream” Change Program Forum
• The Asset and Liability Management Enhancement
(ALM) project was initiated to develop an organizational
structure and action plan that will enable the Bank to
maximize its benefits in terms of interest and exchange
risks based on its risk appetite and liquidity requirements.
Additionally, the project identified an improved
mechanism for applying Fund Transfer Pricing so that
business unit profitability can be more accurately
estimated and capital resources more effectively deployed.
• The first phase of the SCB Space project provided an
online social networking space for all SCB employees.
This innovative technology was deployed for employees
to share and exchange views and information on areas of
common interest through a ‘town square’ type virtual
space for making new friends. This project is in line with
the “reaching out” philosophy that the management
believes is essential to building closer bonds across the
Bank – and in subsequent phases to its customers and
partners.
Plans for 2008 In 2008, the 7th year of the Change Program, the continued
emphasis will be on building differentiated capabilities
within the Bank as a basis for sustainable growth and
profitability. Projects expected to be completed in 2008 are
as follows:
• The multi-year Human Resource Management System
(HRMS) has entered its final phase of implementation
when the new benefit administration and self-service
capabilities will be added to this system – making it one of
the most complete implementation of this type in the
world. Already, the project supports core HR functions,
payroll, e-recruitment and e-learning through a fully
integrated suite of products from one of the leading global
IT solution providers. • Another multi-year project, the Enterprise Data
Warehouse (EDW), has proved exceptionally difficult to
design and implement using one of the best available
logical data model in the world. The aim is to store and
access all data on an enterprise basis from a single
platform. This ‘single version of the truth’ data platform
will provide a huge boost to the Bank’s capabilities to
retrieve, analyze and use Bank-wide information. The
data will be available in multiple dimensions enabling
diverse groups from all across the Bank to access and use
this enormous data repository. Implementation has
already commenced and the Bank expects full
deployment to be completed during the year – making
this one of the most comprehensive implementations of
its kind in the Asia Pacific region.
• In another first of its kind deployment, the Enterprise
Content Management (ECM) project provides integrated
imaging and workflow management. The aim is for the
paper-based documentation to be replaced by electronic
document formats as well as automated workflows to
provide substantive cost savings and service cycle
improvements, particularly in the high volume retail
origination area. The initial deployment will start early in
the year and will be progressively extended, in the years
ahead, to other products in the retail lending and trade
finance product areas. Eventually, it will be extended to
cover other areas of unstructured data across the Bank. • Building on the successful implementation of the
Treasury Management System, the Derivatives module is
expected to be implemented early in the year. This will
provide the Treasury Group with the ability to fully
automate the existing derivative offerings and introduce
exciting new products for clients in the future. • The Wealth Management System project will provide
new capabilities in servicing private banking clients and
support the Bank in maintaining its market leading
position in this area. • The SCBL Strategy and Business Process Redesign is a
collaborative effort between SCB and Siam Commercial
Leasing Co., Ltd. (SCBL) to develop a strategy for the
Group’s auto hire purchase business, as well as an
operating model, so that it emerges as the leader in
Thailand’s auto finance market. The project has focused
on the business model that will enable both organizations
to leverage from each other’s capabilities in rapidly
building its market share in this business. • The Customer Call Center Telephony Solution project is
designed to replace the core infrastructure that supports
the customer contact center – including the interactive
voice response service. The new system will allow
aggressive growth in usage of this lower costs channel
together with important new features to support the Call
Center agents. The project marks the first step in the
Bank’s efforts to build a new enterprise infrastructure that
exploits emerging telephony technologies.
• The Basel IRB Compliance project was initiated to
prepare for the adoption of the Internal Ratings-Based
(IRB) approach for capital adequacy calculations. The
project will entail, among others, significant investments
in the underlying systems so that the Bank’s Exposure
Given Default (EGD) and Loss Given Default (LGD) can
be more accurately established across multiple risk classes
of assets. These computations and other related
improvements will lead to the adoption of more prudent
basis for determining capital adequacy in compliance
with the new regulatory framework. The Change Program has been the catalyst for the Bank’s
success in recent years. It is a journey that will continue in
the years ahead as the Bank continues with its efforts to excel
in the market place through differentiated capabilities. Siam Commercial Bank Public Company Limited 37
We volunteer
to help those
who need us
most.
Wannee Panpanit,
IT Data Management Division, Bangkok
“Technical knowledge about computers
enables Wannee to contribute a great
deal in her work at SCB, but she knows
she can contribute more. Wannee
volunteers to serve as a teacher to young
orphan and other underprivileged
children in Ang-thong province (as part of
the Bank’s CSR project).”
SCB and Corporate Social Responsibility
The Bank regards Corporate Social Responsibility (CSR)
activities as a core element of its operations and has
consistently supported and participated in public service and
charitable activities. In 2006, the Bank appointed a “Corporate Social
Responsibility Committee” consisting of members of the
Board of Directors. The Committee is in charge of defining a
broad CSR framework, together with supervising and
assessing the Bank’s CSR related objectives and activities.
The Committee was established to elevate and energize the
Bank’s drive to be perceived as an exemplary corporate
citizen. While maintaining a broad framework to support and
participate in public service and charitable activities, the
Bank’s CSR focus is on promoting youth development and
related learning processes. This focus is premised on the
view that the younger generations are a key resource for the
country’s development and, further, that fostering a strong
sense of civic awareness among the youth will yield very
significant benefits in the long run. SCB has supported schools applying the sufficiency
economy philosophy in their curricula and learner
development activities. Initially 7 schools participated in
this program, namely, Chamdeevee School in Lamphun,
Makutmuang Rachawittayalai School in Rayong,
Banlaokokhungswang School in Khon Kaen, Princess
Chulabhorn’s College in Petchaburi, and the
Yothinburana, Surasakmontree, and Rajavinit schools in
Bangkok. Volunteers from the Bank are in place to lecture
teachers and students on elements of personal financial
management and business administration that are
consistent with this philosophy. The project has been
rolled out from these schools to a network of some 80
more schools. To enhance its ability to focus on this youth orientation in its
CSR activities the Bank, in 2007, modified the roles and
responsibilities of the “Siam Commercial Foundation” and
made it responsible for managing its youth and community
development programs.
The Bank has a two-pronged approach to CSR activities:
through a direct role in implementing CSR activities, either
solely or jointly with other organizations; and through
budget support provided to public service and charitable
organizations for conducting activities that are beneficial to
the community.
The Bank’s Role in Implementing CSR Activities
SCB has a policy of utilizing the Bank’s personnel, wherever
possible, to support CSR projects run by not-for-profit
organizations with a “value-enhancing” approach. This
value enhancement occurs through contributions in terms of
ideas, planning, and execution by the Bank’s personnel
involved. This policy has engendered a deeper sense of civic
awareness and volunteerism amongst the employees
nationwide, and in turn has led to greater participation in
various CSR activities.
Youth Development
1. Youth Development Project Following the Royally
Initiated Sufficiency Economy Philosophy
In adherence to the Royally Initiated Sufficiency Economy
Philosophy, the Youth Development Project seeks to
foster a lifestyle based on this philosophy among Thai
children by espousing the principles of sufficiency,
rational decision making, and a readiness to adapt to
change through the application of knowledge and virtue. SCB commissioned the “Phor Phor 809” (Sufficient 809) Book which is
explained in user-friendly language with a focus on examples of
sufficiency philosophy
SCB has also collaborated with organizations in hosting
seminars and exhibitions, publishing a number of books
for dissemination to schools nationwide under the theme
of “Sufficiency Economy Philosophy”, each offering
instruction on how to apply the philosophy. Among these
organizations are the Crown Property Bureau’s
Sufficiency Economy Research Project, the Ministry of
Education, and the Stock Exchange of Thailand. The
publications were as follows: • “Ngern Thong Khong Mee Kha” (Money is Valuable),
in the “Life Value Development Based on the
Sufficiency Economy Philosophy” series for
supplementary reading for students in all 12 primary
and secondary levels
• A simplified edition of “Phor Phor 809” (Sufficient
809), a book exemplifying contemporary sufficient
living
• A revised edition of “Thrift and Financial Discipline”
• A revised edition of the “Sufficiency Economy
Philosophy” series to reach a wider range of readers
The SCB Challenge 2007
2. SCB Challenge Project
The SCB Challenge Project was initiated on the occasion of
the Bank’s centennial in 2006, to encourage the
development potential of Thai youths at all levels. Children
and adolescents around the country were provided with a
platform to show-case their knowledge, talents, creativity,
and team spirit. The SCB Challenge Project received a
warm welcome from schools and educational institutions
joining the following competitions:
• Painting Competition for the Primary School Level
Participating teams comprised 6 students each from
Prathom 1–6 levels. There were 329 schools joining
the 2007 competition ( the 2006 competition was
joined by 232 schools), and the winner was Rotsaweak
Wittaya School, Phra Nakhon Si Ayutthaya. • Quiz Competition for Secondary and High School
Level
Participating teams comprised 4 students, 2 from
Mathayom 1-3 levels and 2 from Mathayom 4-6 levels.
There were 409 schools joining the 2007 competition
(the 2006 competition was joined by 277 schools), and
the winner was Khon Kaen Wittayayon School, Khon
Kaen. • Community Project Competition (Undergraduate
Level) to win the trophy royally conferred by Her Royal
Highness Princess Maha Chakri Sirindhorn
Undergraduate students were challenged to apply their
knowledge in developing a project of benefit to their
community. There were 311 projects joining the 2007
competition (the 2006 competition was joined by 211
projects). Khon Kaen University won the Community
Project Competition with their project titled, “Ku
Kaew Village: Cultivating New Generations to
Continue Folk Pottery Craft”. The winning Community
Project sought to revive and continue Ku Kaew
Village’s fading folk pottery craft. The team applied
design techniques they learned to folk pottery,
resulting in trendy pottery designs. The team also
helped the villagers in terms of marketing and
registration as a community enterprise. In addition, the
team has offered the folk pottery craft as an open
learning course for young generations, so as to foster
the local wisdom in a sustainable approach. 3. “Civic-Awareness and a Spirit of Volunteerism” –
The Bank’s Employees’ Contribution to Youth and
Community Development Projects
To engender a greater civic-awareness and a spirit of
volunteerism among staff is a major CSR goal of the Bank.
The Bank has, therefore, supported the following types of
activities across its employee base in 2007: Khon Kaen university students compete in the “SCB Challenge”
• The Human Resources Group, in collaboration with
the Child Protection Foundation, led teams of SCB
staff in hosting recreational activities every other
Saturday, including sports and arts, for children under
the Foundation’s care. • The Information Technology Group developed a basic
computer course for primary school students, and its
staff volunteered to teach the course at Wat Tan Jed
Chor School, Amphur Muang, Ang-Thong every
Saturday for over 10 weeks. The Group aims to
continue with this type of project every year.
• The Chom Thian Area Office planted a 15-rai
mangrove forest in the Klong Nam Chiao area,
Amphur Muang, Trad, in collaboration with some
1,000 students and community members.
Community Support and Environmental Protection 1. Permanent Reforestation Project in Celebration of the 50th
Anniversary of His Majesty the King’s Accession to the
Throne, Phase 3 (2003-2007)
SCB, with the cooperation of the Mae Fah Luang
Foundation, participated in a Permanent Reforestation
Project in celebration of the 50 th Anniversary of His
Majesty the King’s Accession to the Throne. The project’s
goal was to achieve the reforestation of 14,015-rai in
Tambon Therd Thai, Amphur Mae Fah Luang, Chiang
Rai. The project theme was “Reforestation to Fight
Against Poverty – Guidelines for Rural People to Live in
Harmony with the Forests”, and 7,232 Akha, Lahu, and
Lau tribal people in 18 villages took part in the
reforestation and conservation of watershed and
communal forests. The planted trees had a high survival
rate and the project accomplished its goal of reforesting
the area within the first year, while maintaining this newly
forested area in the second and third year. Villagers were also provided with occupational
development programs and farmer assistance funds for
cooking gas, livestock, and crops in order to supplement
their household incomes, resulting in better living quality
and reciprocal benefits between villagers and the forest.
2. Project to Encourage Forest Restoration and Conservation
by Communities
The Bank has supported the Thai Fund Foundation’s
“Community Award for Forest Conservation” continuously
since 2004. The award aims to encourage grassroots
organizations in continuing their forest restoration and
conservation efforts. Covering 65 villages, 20 projects
have been supported by 17 organizations. 3. Save Paper, Save Trees – No ATM Slip Campaign In 2006, the Bank introduced a campaign to minimize
paper consumption by reducing the number of ATM slips
– an indirect means of forest conservation. Customers
can choose whether or not to receive ATM slips from the
Bank’s ATMs at the conclusion of a transaction. The
campaign has continued to the present time, and has
received impressive response from customers and is a
major success. Relief for Disaster Victims and Public Health Aid 1. SCB Relief Fund (for Tsunami Victims) Over the past 3 years the SCB Relief Fund has provided
assistance to tsunami victims in 6 Andaman coastal
provinces through 3 Non-Government Organizations
(NGOs), namely, the Foundation for Children , the
Sustainable Development Foundation, and the Population
and Community Development Association. The Fund
aims to provide sustainable support to women, children,
and the elderly who lost family income-earners, through
providing avenues to start new, self-reliant lives. The Foundation for Children’s project to establish an
alternative school and help children left unattended by any
organization has managed to rehabilitate Moken children
who had lived with a fear of the sea (since the Tsunami) and
were so depressed that they did not wish to go to school. In
addition, 102 people who lost their Thai nationality due to
the lack of official Thai government identification were
assisted, and 23 persons among this group have already
received help from government agencies. The
Sustainable Development Foundation , in
collaboration with the Save Andaman Network (SAN), has
encouraged voluntary support from local youngsters for the
The 3rd phase Reforestation Project (2003-2007) in commemoration of the Royal Golden Jubilee
Students at Ban Titae with their mussel farming project; funded by the
SCB Relief Fund for Tsunami Victims
Relief aid to alleviate suffering of flood victims in collaboration with the
Royal Thai Air Force (RTAF)
recovery and development of tsunami-hit communities.
Local women and other marginalized people have been
assisted in making their own living. Group therapy was
provided to rehabilitate the mental strength of many victims
and the women amongst them were encouraged to play a
role in assisting with the recovery of the community.
provided restoration and maintenance budgets for schools
ravaged by floods in Chiang Mai, Nakhon Sawan, and
Pathum Thani, and emergency aid for flood victims in the
upper Central and Southern regions. The Bank also
supported the Royal Thai Air Force’s distribution of milled
rice and drinking water to flood-ravaged people in southern
provinces, and the Royal Thai Army’s distribution of blankets
to people in cold-weather prone northern provinces. The Population and Community Development
Association has implemented a “School Lunch Farm”
project for children in 20 communities to improve their
nutritional balance. The project embraces the principle of
community contributions, through boosting a volunteer
spirit and entrepreneurship among youngsters to help
them cope with problems in their own communities. In
particular, the project has encouraged youngsters with
potentially risky behaviors to take part in community
development initiatives.
2. Other Disaster Victims Relief Projects The Bank raised relief funds to alleviate suffering among
victims of natural disasters around the country. In 2007, SCB
3. Blood Donation Campaign
Together with the National Blood Center under the Thai
Red Cross Society, the Bank has campaigned for blood
donations from staff, customers, and the general public
since 1996. Her Majesty the Queen, as the President of the
Thai Red Cross Society, graciously granted the Certificate
of Merit (First Class) to the Bank for its activities. Over the past 11 years, the Bank has campaigned for
blood donations every 3 months, with over 15 million cc
of blood supplied to the National Blood Center. During
2006 - 2007, on the occasions of the 60th Anniversary of
His Majesty the King’s Accession to the Throne, and the
80th Birthday Anniversary of His Majesty, respectively, the
quantity of blood donated under the Bank’s campaign
reached 3 million cc. CSR Budgetary Support
In 2007 the Bank allocated budgets for public services and
charitable organizations to carry out their socially beneficial
activities and projects. Budgetary support covered such
fields as education, arts and culture, quality of living, and
environmental improvement. Highlights included: Education
• Renovation of the Siriraj Medical Library Building, the
Faculty of Medicine, at Siriraj Hospital
• Maintenance of the “Maha Chakri Sirindhorn” Building,
Pin presentation to first-time blood donors as a token of appreciation
and encouragement for future blood donations
the Faculty of Arts, Chulalongkorn University
• Presentation of the Thai Junior Encyclopedia and
Learning Enhancement edition to 125 schools
• Establishment of a Book Corner Project of the Bank of
Thailand to commemorate H.M. the King’s 80th Birthday
Anniversary 5th December 2007. Held for the second year,
books received were donated to 59 schools, totaling 117
schools in 2 years
• Publication by The Royal Institute of Thailand of 5,000
copies of a reference book titled, “Thai Language Usage:
Knowledge Compilation”
Arts and Culture
SCB continues to support the Queen’s Gallery and Sala
Chalermkrung, as they serve as venues where people can
familiarize themselves with various facets of Thai arts and crafts.
Quality of Living and Environment Improvement
The Bank regularly supports activities run by public services
and charitable organizations, including the following:
• Ramadhibodhi Foundation: construction of a patient
education room in the “Princess Maha Chakri
Sirindhorn” Building, Ramadhibodhi Hospital.
• The Industrial Development Foundation: research and
development pertaining to the efficiency enhancement of
the Chaipattana Aerator.
• Chulabhorn Foundation: aid for epilepsy patients
• The Kidney Foundation of Thailand, the Sai Jai Thai
Foundation, and the National Council on Social Welfare
of Thailand
In 2007, all the Bank’s subsidiaries followed the Bank’s lead in
CSR activities through organizing or supporting projects and
activities beneficial to the public and communities. For example:
also made to organizations, temples, and educational
institutions in need. For example:
• Siam Commercial Samaggi Insurance PCL provided 156
sets of computer equipment for educational networks to 6
financially deficient schools under the Ministry of
Education for the second consecutive year.
• Siam Commercial Leasing PCL continuously campaigned
for blood donations and supported the Don’t Drive Drunk
Foundation’s activities. On the auspicious occasion of H. M. the King’s 80th Birthday
Anniversary, the Bank was among major sponsors of the
“Phor Sor Phor Pieng” (the Year of Sufficiency) project run
by the President of the Sufficiency Economy Movement
Subcommittee of the National Social and Economic
Development Board. The project aimed to disseminate the
Sufficiency Economy Philosophy to the public via TV
programs and roadshows. The Bank supported the National
Identity Office’s production of a TV documentary program
titled, “Road Towards Cordial Relations”, broadcast by the
Television Pool of Thailand. Also, major SCB branches
nationwide were decorated with “Long Live the King”
banners to mark this special Anniversary. The Head Office
campaigned for quarterly blood donations and organized an
exhibition titled, “Through the Camera Lens”. In conclusion, the Bank believes that the thrust of its CSR
activities is to ensure that it adds significant value to its
community in a number of important areas, particularly in
raising the level of civic awareness amongst the youth of the
land. Also, by encouraging its employee base to take the lead
in many of these community programs it hopes to serve as a
role model for other corporations in the country. The Bank is
confident that this commitment to the youth of our land and
the spirit of volunteerism amongst its employees will endure
the test of time in the years ahead. • SCB Securities Co., Ltd. continued its SCBS Young Star
Investor program for the fifth season, creating a network
of youths contributing to charitable activities.
• SCB Asset Management Co., Ltd. participated in several
CSR activities, including • Support for the Elephant Reintroduction Foundation’s
Elephant Reintroduction Project in celebration of
H. M. the King’s 80th Birthday Anniversary. • Assistance for the tsunami victims’ keep-net lobster
farming in Amphur Kuraburi, Pang Nga through the
Chaipattana Foundation. • The Suk-Kaew Kaewdaeng Foundation’s goat bank in
Tambon Lampaya, Amphur Muang, Yala, for peace in
the 3 southernmost provinces. In addition, the company hosted a Wishing Well
Tawanron Camp for terminal-stage cancer children under
the care of the Wishing Well Foundation. Donations were
We care
about our family,
our work, and
the world around us.
Jarusporn Manusayanont,
Teller, Tha Phae Branch, Chiangmai
“Courtesy and care are two differentiating
features of the services that Jarusporn
delivers to her customers at the Foreign
Exchange booth in Chiangmai. At home,
she endeavers to pass on these values to
her young daughter.”
Risk Management and Risk Factors
Risk Management
The Bank believes that the quality and effectiveness of its risk
management capabilities will be critical in sustaining its
current growth and profitability.
Accordingly, the Bank has continuously strengthened risk
management as a core competency by establishing a Risk
Management Framework and corresponding governance
structure to ensure that risks are managed efficiently and
effectively with a transparent decision-making process.
Risk Management System
The risk management system consists of four key elements.
1. Risk Identification There are five types of risk in the Bank’s overall
operations, including transactions dealing with customers
and counterparties: strategic risk, credit risk, market risk,
liquidity risk, and operational risk.
2. Risk Measurement
The Bank applies a variety of quantitative and qualitative
methods to measure each risk, including Risk Rating to
measure the probability of a debtor payment default, Loss
Given Defaut to analyse credit loss incurred if an obligor
of the Bank defaults, Value at Risk (VaR), and Self-risk
Assessment to evaluate the broad risk within each
business unit.
3. Risk Monitoring and Control
The Bank controls risk by determining risk limits to be
sustained by the Bank at the organizational, product,
transaction, and other levels. The Bank has a variety of
internal control mechanisms in place to manage risks
according to the Bank’s policies and procedures.
4. Risk Reporting
Risks are reported to relevant business units so that they
can manage risks appropriately and in a timely manner.
Risk reporting is developed to cover risk at the product,
business unit, and Bank levels.
Governance Structure
The governance structure for risk management can be
summarized as follows:
1. Policies
The Board of Directors has the authority and
responsibility for approving the major risk management
policies of the Bank: Credit Policy Guide, Market Risk
Policy Guide, Operational Risk Policy Guide, and
Consolidated Supervision Policy.
2. Authority
The Board of Directors has the authority and
responsibility for approving the authority of management
and other committees. The authority includes loan
approvals and decisions to sustain different risks based on
risk level (Risk-based authority). 3. Committees Relating to Risk Management
3.1 SCB has assigned three sub-committees to deal with
risk management as follows:
3.1.1 The Executive Committee is responsible for
proposing and recommending risk management
policies to the Board of Directors. In addition,
the Executive Committee has the authority to
approve loans and investments, with the
management authority to administer functions
as determined by the Board of Directors.
3.1.2 The Audit Committee comprises independent
members of the board with responsibility for
direct management over the Audit &
Compliance Group.
3.1.3 The Risk Management Committee is responsible
for recommending risk management policies to
the Executive Committee and the Board of
Directors, determining risk management
strategies consistent with the guidance of the
Board of Directors, and managing overall risks of
the Bank. 3.2 SCB has several committees to manage each of the
following specific risks:
3.2.1 The Assets and Liabilities Committee is
responsible for managing market price risk,
interest rate risk, and liquidity risk.
3.2.2 The Investment Committee is responsible for
managing the Bank’s investments.
3.2.3 The Credit Committee, the Retail Credit
Committee, and the Special Assets Committee
are assigned to approve each loan according to
its approval authority. The Executive Committee
has authority to approve loan amounts beyond
the three committees’ approval authorities.
However, if the loan is granted to a Bank-related
business, major shareholder, or member of the
Board of Directors, the credit approval authority
rests with the Board of Directors.
4. Credit Risk Management
With respect to wholesale credit, the Bank has established
a two-tier approval process allowing decision-making to
be made by a committee and individuals, with clear
checks and balances between credit marketing units and
credit approving units. In addition, the level of credit
approval authority hinges upon a customers risk rating
and the level of expected losses. Although SCB applies the
statistical scorecard method for approval of retail credit,
credit officers can override scorecard results within a predetermined framework.
5. Market and Liquidity Risk Management
The Assets and Liabilities Management Committee is
responsible for determining risk tolerance limits for
managing trading portfolios and the interest rate risk in
the banking book. The committee also has responsibility
for determining other limits and indicators to manage and
control liquidity risk.
6. Operational Risk Management
In formulating the operational risk policy, each business
unit has responsibility for implementing an appropriate
and efficient internal control system to protect the Bank
from damage arising through the acts or omissions of
third parties or SCB staff as well as fraud activities or
operational errors. Although SCB has a Fraud
Management Division to specifically monitor transaction
for potential fraud, all related business units conduct selfrisk assessments and prepare and submit monthly reports
on key risk indicators to the Risk Management Committee. 7. Subsidiary Risk Management
The Bank’s subsidiaries are responsible for establishing
standard systems to ensure efficient risk management
consistent with the consolidated supervision policy of the
Bank of Thailand. The Board of Directors has approved a
“Risk Management Policy for the Financial Business
Group” outlining that SCB subsidiaries shall formulate a
risk management policy, implement an appropriate
organizational structure, set risk tolerance limits, establish
a risk management methods, and prepare risk reports
according to the risk management guidelines set forth by
the Bank. Each subsidiary is required to implement such a
policy framework to a given deadline depending on the
type of business, whether it is categorized under solo
consolidation or full consolidation. Furthermore, the
Bank requires immediate reporting or prior approval for
any transaction involving an SCB-related party (interested
persons, executives, and major shareholders), including
loans, investments, and contingent liabilities relating to
major debtors of SCB and its subsidiaries.
8. Risk Management Unit
The Risk Management Group reports to the President
and is responsible for determining the framework for risk
management, recommending risk management policies,
monitoring, and reporting each major type of risk. The
Risk Management Group has responsibility to develop the
quality of risk management within the Bank to
international standards, and to ensure that Bank has a
consistent risk management framework throughout the
organization.
Key Risk Factors for Banking Operations
Risks Pertaining to Economic Uncertainties
Economic conditions and outlooks have a major impact on
the Bank’s asset quality. At present, the Thai economy,
agitated by political turmoil, has expanded sluggishly by
about 4-5 percent, which is quite low compared to growth in
neighboring countries. The situation is exacerbated by the
strong baht against the US dollar and rising oil prices amidst
the uncertainties in the world economy, particularly the
sub-prime woes which may result in a slowdown, or perhaps
a recession, in the US economy. If the Thai economy
deteriorates significantly due to any of these risk factors, the
business sector and consumers will be inevitably affected,
prompting a rising level of non-performing loans.
To manage risks pertaining to economic uncertainties, the
Bank focuses on extending credit to low impact sectors.
Also, it has strengthened underwriting standards, especially
in sectors that are expected to be highly affected by any
slowdown of the economy, such as real estate, some
exporting industries, and businesses bearing high energy
costs. Further, the Bank reviews its credit quality regularly to
assure the sufficiency of loan loss provision. As a result of
these reviews, the Bank increased its loan loss provision from
Baht 1,901 million in 2006 to Baht 4,036 million in 2007.
These policies will be maintained in 2008.
Concentration Risk
Concentration risk is any single exposure or group of
exposures with the potential to produce large losses for the
Bank in the event of problems in that sector if further credit
is approved. SCB manages credit concentration risk by
calculating expected maximum losses for each industry and
debtor. The expected maximum losses are set as limits to cap
the risk for each business sector and single debtor. The
business sectors with the highest credit concentration risk
are manufacturing and commercial industries, with total
lending of Baht 338,474 million or 39.0% of total credit
outstanding, followed by housing loans and others loans at
25.4% and 14.1%, respectively. For concentration risk loans
extended to single debtors, the Bank’s top 100 loan
customers had a total outstanding at the year end of Baht
211,210 million, or 25.5% of total credit outstanding.
Non Performing Loan Risk (NPL Risk) (Bank basis)
NPLs are categorized as one of the major risks to be
sustained by the Bank if debtors fail to repay agreed debts.
The Bank will not only lose interest income, but sometimes
also the principal balance, whether wholly or partly, and
thereby affect the Bank’s profitability and capital adequacy.
At the end of 2007, Bank NPLs stood at Baht 47,460 million,
representing 5.7% of total credit outstanding, down by Baht
52,690 million or 7.5% from 2006 levels. These NPLs can be
classified into 4 categories: restructured debts (16.6%), debts
pending completion of restructuring negotiations (44.7%),
debts pending the outcome of legal proceedings (16.6%), and
debts pending legal execution (22.1%).
The Bank manages NPL Risk by setting aside adequate loan
loss provision for expected losses. At the end of 2007, the
Bank had total loan loss provision of Baht 42,171 million, or
Risk from Impairment in Value of Real Property
Collateral
Since most collateral placed with the Bank is real estate, the
Bank’s collateral will be negatively affected by a sluggish
property market with declining property prices. As a result,
the Bank may suffer higher losses caused by NPLs.
SCB branch at a large-scale hypermarket
88.9% of NPLs, the highest coverage level in the large
banking system.
Off-Balance Sheet Risk
In adherence to accounting standards, some of the Bank’s
obligations with customers and counterparties are classified
as off-balance sheet items together with underlying credit
risk and market price risk, resulting from contractual failures
either caused by customers, counterparties, or the Bank.
At the end of 2007, the Bank’s obligations arising from aval
and guarantees, liability under unmatured import bills and
letters of credit amounted to Baht 31,095 million (56.2%
increase from the year before). Other major obligations
include: (i) foreign exchange rate contracts of Baht 993,902
million (Baht 391,570 million increase or 65.0% from the end
of 2006); (ii) interest rate contracts of Baht 964,416 million
(Baht 191,602 million increase or 24.8% from the end of
2006); (iii) equity derivatives of Baht 1,869 million (Baht 359
million increase or 23.8% from the end of 2006) and (iv)
credit derivatives of Baht 3,166 million (Baht 2,594 million
increase or 453.5% from the end of 2006).
In managing Off-Balance Sheet exposure, the Bank treats such
obligations as types of credit risk, required to follow the
normal credit approval process together with assessing the risk
tolerance limit based on each customer, counterparty, and
country. Furthermore, the Bank assesses the fair value of
derivatives by using the Mark-to-Market method.
In general, the Bank’s obligations with counterparties require
cash guarantee in case the fair value decreases beyond limits.
Moreover, the Bank hedges its risk exposure to market price
volatility by setting limits using a variety of risk indicators
such as VaR, Basis Point Value, Stop-loss, Intraday and
Overnight Position, and Stress Testing.
The Bank manages impairment risk by establishing a
collateral assessment policy. For a credit line higher than
Baht 20 million, collateral shall be reassessed every five years,
while the collateral for credit lines exceeding Baht 50 million
shall be assessed every five years by an independent assessor.
For non-performing loans (NPLs) and non-performing
assets (NPAs), the collateral value shall be reassessed every
year. The policy is implemented to ensure that the Bank’s
adequacy of loan loss provision is in line with current
collateral conditions and real estate market prices.
Foreign Exchange Risk
The fluctuation in exchange rates affects the value of the
Bank’s foreign currency denominated assets and liabilities.
The Bank’s transactions exposed to foreign exchange risk
include proprietary trading transactions and customer
transactions concerning money transfers and payments
relating to international trade and foreign investment. These
transactions may result in a change of the Bank’s foreign
currency position to a net creditor or a net debtor at a
particular point in time. If the Thai baht appreciates against
other foreign currencies, of which the Bank is a net creditor,
the Bank will suffer foreign exchange loss, while the
depreciation of the Thai baht will let the bank reap the benefit
of foreign exchange gains. On the other hand, if the Bank is in
a net debtor position, the appreciation of the Thai baht means
foreign exchange gain for the Bank; and vice versa, the
depreciation of Thai baht means foreign exchange loss.
It is the Bank’s practices to hedge against foreign exchange
risk by setting risk limits on foreign exchange risk exposure.
These limits are determined by statistical methods such as
VaR, as well as monetary limits such as intraday position,
overnight position, and stop-loss levels, etc.
As of December 31, 2007, the Bank’s foreign currency
position was as net debtor of USD 40.09 million (USD
equivalent), and the VaR was Baht 21.13 million.
Interest Rate Risk
The fluctuation of interest rates negatively affects the Bank’s
interest income and expenses. Interest rate risk can be
classified into 4 categories:
• Repricing Risk is the risk that arises from timing
differences or mismatches in the maturity and interest
rate changes of the bank’s assets and liabilities, primarily
caused by shifts in major interest rates. For example, if the
Bank’s assets can be repriced faster than liabilities
(Positive Gap), interest margin increase when interest
tenure than deposits and/or cannot be called before due
dates, the Bank faces liquidity risk from not converting assets
into cash to match them with liability due dates.
To manage Liquidity Risk, the Bank is required to maintain
liquid assets according to the criteria and level determined
by the Bank of Thailand. Furthermore, the Bank has to
monitor cash flows from deposits, withdrawals, loan
disbursement, and debt repayment to determine the amount
of money needed each day, and maintain enough liquid
assets or prepare liquidity sources to match cash demand.
SCB Foreign Exchange Booth at the Suvarnabhumi Airport
rates rise. On the other hand, if the Bank’s assets can be
repriced slower than liabilities (Negative Gap), interest
margins narrow when interest rates fall.
• Yield Curve Risk is the risk that changes in market interest
rates may have different effects on yields or prices on
similar instruments with different maturities.
• Basis Risk occurs when the Bank’s assets and liabilities are
based on different benchmark interest rates, e.g. fixeddeposit rates, interbank lending rates, THBFIX interest
rates, etc. Therefore, any change in benchmark interest
rates will affect interest rates tied with assets and liabilities
differently.
• Options Risk arises from implicit and explicit options in a
bank’s assets and liabilities, and off-balance sheet items.
The exercise of options may affect the Bank’s
management of revenue and cost. For example, the option
of 3-month or 6-month deposits that allow depositors to
withdraw funds before the due date will, if exercised early,
cause the Bank to bear sooner-than-expected costs. In dealing with interest rate risk, the Bank sets risk tolerance
limits for both Trading Book and Banking Book. For Trading
Book transactions, there are limits on VaR, Stop-loss levels,
and Basis Point Value. For Banking Book transactions, limits
are determined based on percentage of income and capital.
As of December 31, 2007, the VaR from Trading Book
interest rate risk is Baht 16.89 million. For the Banking Book,
a 1 percent change in interest rates for a period of one year
will have an impact on interest income of Baht 116 million,
and a 3 percent change in interest rates for a period of one
year will have an impact on capital income of Baht 582
million.
Liquidity Risk
Liquidity Risk is another important risk area for a
commercial bank, since the Bank raises its capital from
short-term funding, e.g. 3-month and 6-month deposits, and
demand deposits such as savings accounts and current
accounts. The Bank then uses funding from such deposits to
extend loans. Since loan terms are generally of a longer
In terms of liquidity management, the Bank maintains
sources of liquidity at no less than 3% of deposits. The ratio is
determined from the study of previous cash requirements to
ensure the sufficiency of the Bank’s daily needs. Moreover,
the Bank maintains a contingency plan for sufficiency of
liquidity under stress scenarios, e.g. in the event that
depositors panic and rush to withdraw deposits due to a lack
of confidence in the banking system. The combined liquid
assets and sources of liquidity must be maintained at a level
of no less than 7% of deposits.
As of December 31, 2007, the Bank has liquidity of Baht
133,496 million or 15.48% of deposits, which is higher than
the level required by the Bank of Thailand. Furthermore, the
Bank has sources of liquidity to draw on in either base case
or worst case scenarios.
Strategic Risk
Strategic Risk occurs when the Bank is unable attain its key
goals or objectives, whether caused by inappropriate goals or
objectives, lack of staffing or equipment, or necessary
internal support. Moreover, in a broad sense, strategic risk
also refers to a failure of corporate governance. The Bank responds to this strategic risk by formulating a 3
year-strategic plan and annual business plan with the full
participation of all related parties. These plans will be
discussed at different levels of management, and, in the final
stage, must be approved by the Board of Directors. The
contents of the strategic plan and the business plan cover a
survey of the industry environment, status of rivals, SWOT
analysis, corporate objectives and objectives of all lines of
business within the Bank, as well as strategy, plans, and
supporting budgets for implementation. Moreover, the Bank regularly prepares reports on the
Environment Scan and Business Health and Policy
Responses Checklist for the Risk Management Committee,
the Executive Committee, and the Board of Directors. This
facilitates monitoring of changes in the business
environment and evaluate their effect on the goals and
strategies of business units for making decisions on whether
or not there is a need to change such goals and strategies.
In addition, the Bank monitors strategic risk by evaluating
factors that may affect its achievement of goals, e.g. the
loyalty of customers, the loyalty of employees, the adequacy
of the management information system, operational systems,
IT systems, employee attrition, etc. Operational Risk Operational Risk refers to the failure of operational processes,
excluding credit risk and market risk. The Bank handles
operational risk by stipulating in its policy that all departments
within the Bank shall be responsible for implementing good
internal control systems. The Bank also prepares monthly
reports on key operational risk indicators and any operational
losses for the Risk Management Committee.
Although the Bank has not yet implemented control and risk
self-assessment (CRSA) for the whole bank, the Bank has set
a target for all key departments to implement CRSA by 2008.
Nowadays, most losses under operational risk arise from
credit card related fraud. To cope with this problem, the
Bank implemented state-of-the-art systems and established a
task force to monitor and control fraud risk with a
satisfactory outcome.
Also, the Bank has embarked on developing a comprehensive
business continuity plan (BCP) since 2006 to mitigate
operational risk. Currently, the Bank has implemented BCP
for key departments and products and for its key subsidiaries.
In 2008, the Bank anticipates extending BCP to outsourcing
firms that provide critical services for the Bank.
Risk Pertaining to Changes in Statutory Policies, Laws,
Rules and Regulations
whereby, in the first instances, if the Bank and its subsidiaries
would like to deal with such business, the chiefs of related
units must seek approval from the Chairman of the
Executive Committee or the President before engaging in the
business - in order to determine the appropriateness of any
transaction. The matter is then reported to the Chairman of
the Board, the Chairman of the Audit Committee, and the
Chairman of the Nomination, Compensation, and Corporate
Governance Committee. In the second stage, the Executive
Committee has the authority to approve the transaction with
consent from the Chairman of the Board, the Chairman of
the Audit Committee, and the Chairman of the Nomination,
Compensation, and Corporate Governance Committee.
Capital Adequacy Risk
The Bank of Thailand requires commercial banks to have a
capital adequacy ratio of not less than 8.5 percent, no less
than 4.25 percent of which must be Tier-1 capital, while Tier2 capital shall not exceed the Tier-1 ratio. If commercial
banks cannot maintain regulatory capital, the Bank of
Thailand has the authority to take the appropriate action. As of December 31, 2007, the Bank has overall capital of
Baht 103,637 million, classified as Tier-1 capital of Baht
83,708 million (10.6% of risk-weighted capital) and Tier-2
capital of Baht 19,929 million (2.5% of risk-weighted capital).
Therefore, the Bank’s capital is higher than regulatory capital.
Accordingly, the Bank is confident that this level of capital is
more than adequate in responding to economic
uncertainties and the operations of the Bank.
It is the Bank’s responsibility to comply with statutory rules
and regulations issued by the various authorities, e.g. the Bank
of Thailand, the Security and Exchange Commission, the
Stock Exchange of Thailand, and other relevant authorities. The Bank has a compliance unit under the Audit and
Compliance Group, which directly reports to the Audit
Committee. This compliance unit is responsible for
providing advice, recommendations, and opinions on
various issues in connection with statutory laws and
regulations to ensure that the Bank’s operations are in line
with compulsory rules and regulations.
Reputation Risk
Reputation risk relates to public perception about the Bank.
Therefore, it is difficult to identify or assess this type of risk
since it is influenced by political, economic, and social issues
during a particular period, including specific expectations
from the Bank.
To manage reputation risk, the Bank relies upon the
participation of the Board of Directors and senior
management in order to obtain different opinions for
assessing of reputation risk. The Board of Directors sets procedures for the Bank in
dealing with businesses which are subject to social criticism
Our passion
is what truly
differentiate us
when we deliver
customer services.
Varin Saetang, Teller,
Big C Surat Thani Branch, Surat Thani
“Varin loves fresh fruits and often goes
out to the market with her mother to buy
them. This is the same passion that she
brings to her work at the branch. She has
been cited by many customers for her
service excellence.”
Corporate Governance Report
SCB Board receives Board of the Year Award 2006/2007 for Consistent Best Practices
The Board recognizes the critical importance of corporate
governance in supporting the Bank’s sustainable profitability
and growth, securing trust from all stakeholders, including
shareholders, customers, employees, and the general public,
and creating shareholder value. Therefore, the Board is
determined to duly adhere to good corporate governance
practices.
Corporate Governance Policy The Bank’s policy statement on corporate governance
establishes the principles of the Bank’s corporate governance
practices. The policy includes guidelines covering governance
structure, stakeholder rights, shareholder meetings, the code
of conduct, conflict of interest management, internal
controls, disclosure policy, and board responsibilities.
The Board has assigned the Nomination, Compensation, and
Corporate Governance Committee to formulate and
monitor policy compliance to ensure compliance with the
policy. The Committee monitors implementation and
reviews and appropriately adapts the policy to ensure its
compliance with guidelines issued by authorities, and moves
towards the best practices. The Bank’s goal is to adopt worldclass practices in order to benefit stakeholders and maintain
their trust. In 2007, the Bank implemented a CG Self Assessment
exercise, as per the Stock Exchange of Thailand’s (SET)
guidelines, for ensuring the adequacy and modernity of the
Bank’s corporate governance practice. In addition, the Bank
has revised its presentation on corporate governance policy
and practices in accordance with the SET’s new corporate
governance principles. In order to stress the importance of
implementation of good corporate governance, all Bank
employees are encouraged to study corporate governance
policy on the Bank’s Intranet, and share in the common goal
of achieving excellence in corporate governance practices. The Bank’s policy statement on corporate governance is
available on its web-site (www.scb.co.th) under “Corporate
Governance”.
The Bank’s corporate governance practices in 2007 were as
follows: 1.Rights of Shareholders
The Bank’s policy is to conduct shareholder meetings in
accordance with the law and relevant regulations, and to
allow shareholders to exercise their rights fully and fairly and
in an informed manner. Shareholder meeting guidelines
were as follows: Before a meeting
Meeting notices, detailed agendas, accompanying
documents, and other supporting documents were provided
to shareholders at least seven days prior to shareholder
meetings so that they would have sufficient information for
the consideration of each agenda item, thus facilitating the
effective exercise of their rights. Some key items are as
follows: During a meeting • Factual details, reasoning, and Board recommendations
are provided for each agenda item.
The Annual General Meeting of Shareholders was chaired
by the Chairman of the Board, who explained voting
procedures before the meeting formally began. Agenda item
voting results, compiled through the bar code system, were
announced by the Company Secretary after each agenda
item. • Key supporting information is provided, e.g. profiles for
each candidate for directorship, and the definition of an
independent director (for the agenda item on the election
of directors replacing of retiring directors), and details of
Board of Directors and Board Committee remuneration
for shareholders approval.
• Details of meeting procedures and proxy appointments
are provided, advising that shareholders may appoint an
independent director or the Chairman of the Board as
their proxy, using the proxy form which allows them to
express their opinions about a vote. As the Chairman of
the Board retired by rotation at the 2007 Annual General
Meeting of Shareholders, the Bank allowed shareholders
to appoint the Chairman of the Executive Committee as
their proxy. • The Bank respects shareholder rights - At the 2007
Annual General Meeting of Shareholder, the Bank
accepted no additional meeting agenda items, or submits
key information changes.
• The Bank disseminates meeting information - Notice of
Shareholder Meeting including related materials on the
Bank’s web-site prior to meetings, and informs the SET of
such practices. The objective is to provide shareholders
with sufficient information for study in advance of the
meeting. Annual General Meeting of Shareholders No. 184
Registration is conducted through a bar code system for
shareholders and proxy holders. Separate voting slips are
provided for each agenda item.
For shareholder convenience, multi-media presentations
were also shown during the meeting, and a simultaneous
English translation was provided for foreign shareholders.
The Chairman allowed the shareholders full opportunity to
ask questions and make recommendations, and provided
comprehensive clarification when requested. Other directors
and management also clarified and answered related issues.
The meeting minutes and detailed votes for each agenda
item were recorded by the Company Secretary. After a meeting The Minute of the Annual General Meeting of Shareholders
was submitted to SET within 14 days after the meeting, and
posted on the Bank’s web-site (www.scb.co.th). On April 5, 2007, the Bank held its 184th Annual General
Meeting of Shareholders. The Chairman conducted the
meeting, which was attended by all Board committee
chairpersons and 13 out of 16 directors. The Chairman of
the Audit Committee, an independent director, was
appointed as proxy-holder by 110 shareholders, while the
Chairman of the Executive Committee was appointed as
proxy-holder by 105 shareholders.
To take good care of the Bank’s numerous retail shareholders,
the Bank has established the Board Secretariat and
Shareholder Services Office to provide services in relation to
dividend payments, share certificates, and shareholder
inquiries. In 2007, the Bank participated in a Shareholders’
Day hosted by the SET and the Thailand Securities
Depository Co., Ltd. in order to provide information to
shareholders and interested investors. Retail shareholders
can contact the Board Secretariat and Shareholder Services
Office at 0-2544-4216-8.
2.Equitable Treatment of Shareholders
Shareholders’ right in advance to propose agendas,
nominate directors, and submit questions to the
Annual General Meeting of Shareholders The Bank is determined to duly adhere to corporate
governance practice to ensure the equitable treatment of
shareholders. Beginning with the 2008 Annual General
Meeting of Shareholders, the Bank will allow shareholders
(regardless of their shareholding) to propose key issues, such
as meeting agendas, director nominations, and questions in
advance of the meeting. Proposals can be made by letter, email ([email protected]), or via the Bank’s website. The Nomination, Compensation, and Corporate
Governance Committee will screen submitted proposals and
make its recommendations to the Board. The results of the
Board’s decision will be informed the proposing
shareholders. Accepted agenda will be included in the next
notice of the Annual General Meeting of Shareholders. Internal Control The Bank is fully aware that sound risk management
processes and internal control systems are crucial for the
Bank to manage its business efficiently and effectively, to
avoid or mitigate any risks impacting the Bank’s reputation,
and to ensure its compliance with relevant laws and
regulations. In response, the organizational structure, duties
and responsibilities, and lines of command of each business
unit in the Bank, as well as the scope and limits to delegated
authority of executives and operational staff, have been
clearly defined. All regulatory information, including
policies, guidelines, and operation manuals are available on
the Bank’s Intranet for quick and easy reference by
employees. In addition, to ensure efficient internal control the Bank is
determined to carefully recruit and effectively train staff as
well as to provide adequate means of communication, and to
support an internal-control-oriented environment. The Audit Committee plays a key role in ensuring the
efficiency of the Bank’s internal control, the accuracy of its
financial statements, and its compliance with applicable
rules and regulations. The Audit and Compliance Group
reports directly to the Audit Committee, and is tasked with
independently evaluating the effectiveness of internal
controls, working out audit plans to cover all high-risk areas,
and maintaining IT internal controls. The Audit Committee
continuously requires improvements and updates of internal
control policies, and audit approaches are designed to ensure
that the Bank’s resources are adequately harnessed, that all
financial, managerial, and operational information is
complete and reliable, and that employees duly comply with
all the Bank’s policies and operational guidelines, as well as
any other applicable rules and regulations. Conflicts of Interest
The Board has adhered to good governance principles which
emphasize the consideration and prevention of transactions
that may involve conflicts of interest, and connected and
related-party transactions though the following practices:
• Prohibition of directors and executives using inside
information, in compliance with regulations on
employees’ securities transactions and the Insider Trading
Guidelines, under the Audit and Compliance Group’s
supervision. • Imposition of non-trading periods on directors,
executives, and employees who are involved in financial
statement preparations: i.e. they are prohibited from
trading the Bank’s securities during a 14-day period
preceding the announcement of quarterly and annual
financial statements. • Adoption of a Code of Conduct for the Board and a Code
of Conduct for employees, the latter being disseminated
and communicated to all Bank employees. • Prohibition of Directors and Executives participating in
consideration of any matters in which they may have
beneficial interest, and requiring that they strictly comply
with rules and regulations of the SET relating to connected
transactions. The Company Secretary takes note of their
related interests or transactions in minutes of meetings. • Adoption of policy guidelines on transactions with related
parties to ensure they are conducted on the same basis as
a normal transaction with a third party in respect of
pricing and other conditions.
• Adoption of an Information Security Policy to prevent the
leakage of each unit’s internal information, including
information on contractual parties. 3. Role of Stakeholders
The Bank recognizes the rights of all stakeholders, and has in
place a policy whereby all stakeholder rights are safeguarded
by strict compliance with applicable laws and regulations,
including the Bank’s policies, which are stated in the
Corporate Code of Conduct as follows:
• Customers To provide optimal benefits and satisfaction to our
customers through the delivery of quality products and
services, fair treatment, and safeguarding the
confidentiality of information.
• Shareholders
To deliver satisfactory returns to our shareholders
through sustained superior operating results, effective
internal controls, and risk management.
• Employees
To recruit and retain qualified and capable personnel,
and to continuously provide personnel development
programs along with career advancement
opportunities, such as continuous training programs
for Relationship Managers and Branch Managers in
various relevant skill areas. To raise the working environment to suitable, safe, and
modern levels and standards, incorporating health
benefits and recreational activities. The Bank has
initiated an international-standard Voice of Employees
program that evaluates staff satisfaction levels twice a
year. Results from the survey provide feedback to assist
management for further developing employee
engagement.
The Bank arranged various skill enhancement
activities, including English language classes, bankingrelated courses, and lectures on topics of interest to
employees. Three training centers have been
established in Bangkok, one in Northern Thailand, and
one in Eastern Thailand, excluding an e-Learning
system for self-study through its internet and intranet.
The Bank has launched variable bonus programs to
reward excellence at all levels, with due consideration
of individual and team contribution, and introduced
several recognition and incentive programs to reward
outstanding individual and team achievements. • Business partners and competitors
To conduct business with the Bank’s partners and
competitors with fairness and confidentiality in
compliance with applicable laws and regulations;
without using any dishonest or unethical means to gain
information about our partners and competitors.
• Creditors and suppliers
To honor agreements entered into with the Bank’s
creditors and suppliers in accordance with the agreed
terms and relevant laws and regulations.
• Social responsibility
To conduct the Bank’s business with responsibility
towards society and with sensitivity when dealing with
matters relating to public interest; and to regularly
support and participate in activities beneficial to youth,
local communities, and Thai society. Employees are
also encouraged to embrace volunteerism in line with
the Corporate Social Responsibility Committee’s policy
(CSR project details are available on Page 39). 54 Annual Report 2007
• Environment
To abide with environmental laws and regulations,
implement effective safety and environmental
management measures to prevent negative impact on
local communities, and promote employee awareness
of, and concern, for the environment. Mechanism for stakeholders’ participation
The Bank aims to operate to the satisfaction of all
stakeholders. They can contact the Bank through various
channels: customers can contact any branches or responsible
staff/Relationship Managers, and employees can contact the
HR Client Services Division. Any complaints, suggestions, or
comments can also be addressed to the Board of Directors
and the management at: 1. SCB Easy Call Center at Telephone number : 0-2777-7777
2. The Board Secretariat and Shareholder Services Office
at Facimile number : 0-2937-7931
3. By E-mail: [email protected] 4. By mail or by hand to the attention of the Company
Secretary at:
Siam Commercial Bank PCL., Head Office, 24th Fl., 9 Rutchadapisek Rd., Jatujak Sub-district, Jatujak District, Bangkok, Thailand 10900
The Bank has laid down a clear policy and practical
guidelines on how to handle stakeholder complaints. All
stakeholder information shall be kept confidential.
Code of Conduct The Board has approved a Corporate Code of Conduct to
provide a framework for the Bank’s operations consistent
with its 3 Core Values, as follows:
1. Integrity: We are open, honest and ethical - as
individuals and as an organization.
2. Accountability: We take our commitments seriously,
and stand accountable for all our actions.
3. Teamwork: We value the contributions of others, and
know that we are strongest when we work together.
In addition, the Board formulated a Director’s Code of
Conduct establishing the ethical standards for its directors.
Directors are committed to pursuing the highest standard of
ethical conduct in the interests of shareholders and
stakeholders. The Code covers important principles such as
honesty and integrity, conflicts of interest, and compliance
with laws and regulations. In addition, the Bank introduced a
new version of its Employee Code of Conduct, setting out
standards of professional and ethical conduct for all SCB
Group employees to build and maintain confidence and trust
among our customers, shareholders, and the general public.
(Details of the Corporate Code of Conduct, Director’s Code
Such information is disclosed in Form 56-1, the Annual
Report, and the Bank’s web-site (www.scb.co.th).
An Investor Relations Division is responsible for disclosing
information to shareholders, investors, and securities
analysts pursuant to its policy of providing accurate, fair, and
transparent information to related parties in a timely
manner. Furthermore, Investor Relations is responsible for
preparing and disseminating information to the general
public and other interested persons via the following
channels:
SCB booth at the recent Money Expo 2007, Queen Sirikit National
Convention Center
of Conduct, and Employee’s Code of Conduct are available
on the Bank’s web-site (www.scb.co.th) and the SCB
Intranet.) In addition, the Bank has published and
distributed its Code of Conduct Handbook, with promotion
programs for new staff and directors through the Bank’s
orientation scheme. 4.Disclosure and Transparency
The Bank has established a disclosure policy, with the aim of
delivering accurate, sufficient, appropriate, and timely
disclosure of information to shareholders, investors, and the
public. This policy complies with all laws and regulations
related to the dissemination of information. The main intent
is to ensure that investment in the Bank’s securities is based
on fair and informed decisions. The Bank’s information
disclosed to the general public comprises financial and nonfinancial information, such as:
- The SET and the SEC via regular or special reports, e.g.
disclosure of financial statements, Management
Discussion and Analysis Form (MD&A), Form 56-1,
Annual Reports, etc.
- The Bank’s web-site (www.scb.co.th) under the topic
“Investor Relations”, which is the Bank’s database for
information already submitted to the SET, the SEC, and
regulatory bodies, including supporting documents for
securities analysts’ meetings, investor conferences, and
road shows so that the public, investors, and general
people can access and obtain up-to-date Bank
information in a timely manner.
- A quarterly newsletter sent to shareholders including
relevant information for shareholders and other
interested persons, highlighting the Bank’s activities,
quarterly operating results, quarterly economic
analysis, stock calendar, stock update, etc.
The Bank executives designated as Disclosure Officers are
the Chairman of the Board, the Chairman of the Executive
Committee, the President, the Chief Financial Officer, and
the Division Head of Investor Relations. The Disclosure
Officers meet and provide information to interested parties
on various occasions as follows:
1. Financial Statements, Management Discussion and
Analysis, as well as the Board of Directors’
Responsibilities for Financial Statement and Report of
the Independent Auditor.
1. One-on-one meetings with investors and equity
analysts (150 meetings in 2007);
2. Related transactions and internal controls.
4. Global Road Show (1 time in 2007)
3. A Corporate Governance Report.
4. Structure of the Board of Directors, their profiles and
experience which is beneficial to the Bank’s business
operation, and the roles and responsibilities of the
Board, Board Committees, and Management
Committees, including records of meeting attendance.
5. Details of compensation paid to each individual
member of the Board, Board Committees and Senior
Executives according to the Director and Senior
Management Remuneration Policy. 6. Operating results of individual business units and
annual business plan.
7. Risk factors and risk management.
2. General meetings with equity analysts (2 times in 2007)
3. Investor conferences (3 times in 2007); and
To contact the Investor Relations Division, the general public
may call 0-2544-4222 or send e-mail messages to:
[email protected]
In conjunction with investor relations activities, the Bank
regularly holds press conferences (more than 20 times in
2007) to release key information, such as operating results
and business strategy, to the public. 5.Responsibilities of the Board
5.1 Board Structure
Members of the Board comprise professionals with
diversified backgrounds in finance, banking, business
management, marketing, legal, auditing and accounting,
The Nomination, Compensation, and Corporate Governance
Committee screens and propose to the Board qualified
directors to serve the Bank as directors and members of
Board Committees based on their knowledge, capabilities,
and past experience required to meet the Bank’s
requirements in filling vacant positions.
Mr. Pichai Chunhavajira, Mr. Sumate Tanthuwanit, Mr. John
William Hancock, and Mr. Vicharn Panich; 2 Executive
Directors (representing 12% of the total directors) being
Mr. Vichit Suraphongchai, the Chairman of the Executive
Committee, and Mrs. Kannikar Chalitaporn, the President;
and 8 Non-Executive Directors (representing 47% of the total
directors) being Mr. Chumpol Na Lamlieng, Mr. Chirayu
Issarangura Na Ayudthaya, Khunying Jada Wattanasiritham,
Mr. Bodin Assawanich, Mr. Peter Seah Lim Huat, M.R.
Disnadda Diskul, Mrs. Puntip Surathin, and Mr. Sanit
Rangnoi.
Balance of Power for Non-Executive Directors
Segregation of Positions
good governance, management, social and community
project management, and other experience considered
beneficial to the business operations of the Bank. At present,
there are 17 Board members, whose names and backgrounds
are provided on page 6 of this report.
The numbers and type of Directors and the Board structure
shall conform with the Bank of Thailand’s Announcement
dated 3 December 2002 concerning the enhancement of
corporate governance for commercial banks related to the
structure of the Board of Directors, which is more stringent
than the minimum requirements of the Stock Exchange of
Thailand. The BoT requires that the Board comprise at least
9 members, and one fourth of the Board (or 3 persons,
whichever is higher) have to serve as Independent Directors.
And the number of directors serving as Executive Directors
shall not exceed one-third of the Board.
Independent Director means a Director who does not have
any related business or work that may affect his or her
independent decision. A Director with any of the following
qualities is not regarded as an independent director:
1. Holds shares in excess of 0.5 percent of the issued
shares of the Bank or any of its subsidiaries or
associated or related companies, including shares held
by a related person; 2. Takes part in the management of the Bank or its
subsidiaries, associated or related companies, or major
shareholders of the Bank, or receives a salary from the
Bank, or its subsidiaries, associated or related
companies, or its major shareholders;
3. Is an advisor who receives a salary from the Bank or its
subsidiaries, associated or related companies, or major
shareholders of the Bank;
According to the Bank’s governance structure, the Bank has
segregated the positions and capacities of the Chairman of
the Board, the Chairman of the Executive Committee, and
the President to enhance the operation, governance, and
transparency of internal operations, as follows: Chairman of the Board - The Board elects an independent
director or a non-executive director of the Bank to serve as
the Chairman of the Board. Accordingly, the Chairman of
the Board shall not be the Chairman of the Executive
Committee or the President of the Bank, nor someone
involved in the Bank’s routine management. This is in
compliance with the principle of segregation of roles in
policy formulation and oversight for those in operations
management. The Chairman of the Board is authorized to
bind the Bank. Mr. Anand Panyarachun (Independent Director) has been
elected to be the Chairman of the Board, replacing Mr.
Chirayu Isarangkun Na Ayuthaya, who resigned from the
position effective 1 September 2007, to take up the role of
Chairman of the Siam Cement Public Company Limited.
This is in line with the good governance practices that
stipulate that the Chairman of a big capitalization company
should not serve as Chairman of another company.
Chairman of the Executive Committee - The Board has
appointed one of its members as Chairman of the Executive
Committee with powers and duties to manage and control
4. Has any direct or indirect interest in financial
management and administration of the Bank or any of
its subsidiaries, associated or related companies, or its
major shareholders;
5. Is related to, or is a close relative of a senior executive
or a major shareholder of the Bank.
Executive Director means a Director who is involved in
Bank management on a full-time basis, and who receives
regular monthly remuneration from the Bank in the form of
salary or its equivalent.
At the present, the Bank has 7 Independent Directors
(representing 41% of the total directors) being Mr. Anand
Panyarachun, Mr. Maris Samaram, Mr. Tiraphot Vajrabhaya,
SCB senior executives at the opening ceremony of the Money Expo,
Nakhon Ratchasima
the business of the Bank as assigned by the Board. The
Chairman of the Executive Committee is an authorized
director who is empowered to develop and review key
strategies and practices with roles and responsibilities
relating to other Board Committees, including overseeing
the Executive Committee’s compliance with its charter. President - Under the Articles of Association, the President
is an ex-officio member of the Executive Committee. The
President is also an authorized director with powers and
duties as assigned by the Board, including the following:
1. To implement the Bank’s operations according to
policies, strategies, and goals as set forth by the Board.
2. To monitor and prepare reports on business conditions
and the Bank’s position, and recommend alternatives
and strategies consistent with Bank policies and
market conditions.
3. To consider and screen the Bank’s business operations
with approval authority according to Bank regulations.
4. To manage and supervise the Bank’s operations, such
as finance, risk management, internal controls,
operations, and human resources.
5. To represent the Bank with the authority to assign
another person to deal with government agencies and
other regulatory bodies.
6. To oversee communications with the public,
shareholders, customers, and employees to ensure that
they are positive and enhance the Bank’s reputation
and image.
7. To implement assignments entrusted to him/her by
the Board and the Board Committees.
8. To apply good governance principles across the
organization.
The Board appointed Mrs. Kannikar Chalitaporn as
President on 1 February 2007, for a tenure of 4 years.
Membership of Other Listed Company Boards The Bank has laid down a clear policy regarding
Qualification of Director by Law and Prohibitions for the
Board of Directors, to comply with any notification of BoT,
SEC, SET, and other supervisory agencies as the case may be.
Thus, membership of Board members on other listed
company boards, conforms with the good practices of
several regulating bodies. The SET has suggested that a
director of a listed company shall not hold other positions in
more than five listed companies, while the BoT has
announced that a director of any commercial bank shall not
be Chairman, executive director, or an authorized director of
more than three limited companies.
the Company Secretary in advance before assuming any
position in companies or organizations so that the
Nomination, Compensation, and Corporate Governance
Committee may review the appointment for appropriateness
and compliance with statutory regulations. The Company
Secretary shall regularly inform the Board of the
membership status of each director.
Although Mr. Pichai Chunhavajira, one of the Bank’s
directors, holds positions in more than five listed companies,
those companies are subsidiaries of the PTT Public
Company Limited and it subsidiaries (the “PTT Group”). As
a senior executive of the PTT Group, Mr. Pichai has been
appointed as a board member of more than five listed
companies in the PTT Group, to oversee the interests of the
PTT Group as a whole. Because the subsidiaries are counted
as one group, Mr. Pichai is not considered as holding
directorship in more than five listed companies.
Company Secretary
The Board of Directors appointed Mrs. Siribunchong
Uthayophas, Senior Vice President, Manager, Board
Secretariat and Shareholder Services Office, as Company
Secretary to take responsibility for matters connected with
meetings of the Board and shareholders, data collecting for
related documents, and to contribute to the adoption of best
corporate governance practices. The Company Secretary reports functionally to the
Chairman of the Board and operationally to the President.
Details of the Company Secretary’s functions are available on
the Bank’s web-site (www.scb.co.th).
5.2 Board Committees
The Board has appointed 4 Board Committees, namely the
Executive Committee, the Audit Committee, the
Committee, and the Corporate Social Responsibility
Committee. In addition, there are 5 management committees, namely the
Risk Management Committee, the Strategy and Review
Committee, the Change Program Steering Committee, the
Assets and Liabilities Management Committee, and the
Investment Committee. The composition, functions and responsibilities of the Board
and Management Committees are presented below. For
more details please visit the “Corporate Governance” section
of our web-site (www.scb.co.th).
In addition, the Bank has established internal practical
guidelines for directorship of other companies, stating that a
director has to notify the Bank via the Nomination,
Compensation, and Corporate Governance Committee and
2. Audit Committee
The tenure of the members of the Audit Committee is 2
years.
Responsibilities of the Committee are as follows:
2.1 Financial Report • Review Bank financial statements, consider the
completeness of information presented to the
Committee, and evaluate the appropriateness of the
accounting principals implemented in the report.
Awards presentation to SCB staff for outstanding performance on SCB
Awards Day
5.2.1 Board Committees
1. Executive Committee
Members are drawn from the Board and hold concurrent
tenure with that of their directorship. Responsibilities of the Committee are as follows:
1.1 Formulate proposals to the Board of Directors for
consideration and approval of strategies, annual
business plan and budget, financial statements,
acquisition and disposal of key assets, issuance of
Bank securities, risk management policy, and other
matters as described in the Board Charter.
1.2 Consider and approve credit, debt restructuring,
investment in securities and immovable assets,
borrowing, and expenditures, according to
authorization levels determined by the Board. 1.3 Endorse interest rate policy, risk management,
accounting policy, and defend any legal proceedings
against the Bank.
1.4 Consider and approve organization change and
human resources policy.
1.5 Oversee policies, strategies, and performance of
Group companies.
1.6 Endorse changes in policies, manuals, and Bank
regulations, as authorized by the Board of Directors,
and inform the Board of Directors of any changes.
• Review significant issues related with accounting
and financial reports, including complicated/
unusual issues, and issues that need special
consideration.
• Inquire of management and external auditors about
auditing results, key risks on the financial report,
and the risk reduction methods.
• Review internal control method over the process in
preparing the financial report with external and
internal auditors. 2.2 Internal Control
• Review the Bank internal control including control
over the information technology system to ensure
the adequacy and efficiency and promoting “control
culture” by communicating the importance of
internal control and risk management throughout
the Bank.
• Review to ensure that recommendations from
external and internal auditors has been adopted by
management.
2.3 Internal Audit
• Review and approve Charter of Audit and
Compliance Group, annual business plan, and
necessity manpower with resources.
• Review the activities of Audit and Compliance
Group to ensure the independence, effectiveness.
• Review efficiency of internal auditing procedures to
comply with the Professional Practices of Internal
Auditing.
2.4 Compliance
1.7 Consider related matters with other Board
Committees.
• Review and ensure Bank compliance with
applicable laws and regulations.
1.8 Consider issues assigned by the Board of Directors.
• Assess the results of Bank operations reported by
relevant business units, which the Committee
considers vital, and advise the Board of Directors of
their improvements and remedies.
Currently, the Executive Committee comprises four
experienced and capable directors, with backgrounds in
banking, marketing, and law, namely Mr. Vichit Suraphongchai
(Chairman), Khunying Jada Wattanasiritham, Mr. Bodin
Asavanich, and Mrs. Kannikar Chalitaporn. In 2007, the
Executive Committee held 32 meetings. • Review effectiveness of process to update and
comply with laws and regulations, as well as followup not comply matters (if any). 2.5 Ethics and code of conduct of management and
employees
• Ensure the implementation of ethics, code of
conduct, and conflicts of interest policy, by preparing
written documents, and ensuring acknowledgement
by management and all employees.
duties and responsibilities. It is also responsible for
devising clear annual performance assessment criteria
for directors and senior management. In this respect it
has specific responsibility to:
• Promote the compliance with ethics, code of
conduct, and conflicts of interest policy.
1.Recommend overall remuneration plans, policies,
and practices for the Board and senior management
for consideration and approval by the Board;
2.6 Others
2.Recommend the remuneration of the Chairman of
the Board and other Directors;
• Perform other assignment from the Board of
Directors.
3.Recommend the remuneration of the Chairmen and
Members of Board Committees appointed by the
Board of Directors;
• Regularly review the Committee’s Charter, and seek
for approval from the Board of Directors.
• Perform self-assessment at least annually and
presents to the Board of Directors, through
Nomination, Compensation, and Corporate
Governance Committee.
Currently, the Audit Committee comprises 4 Independent
Directors who have strong knowledge and comprehension in
accounting, finance and large enterprise management,
namely Mr. Maris Samaram (Chairman), Mr. Tiraphot
Vajrabhaya, Mr. Pichai Chunhavajira, and Mr. Sumate
Tanthuwanit. In 2007, the Audit Committee held 10
meetings. 3. Nomination, Compensation, and Corporate Governance
Committee
The Board of Directors approved the merger of the
Nomination and Corporate Governance Committee with
the Compensation Committee, effective 1 February 2007. Responsibilities of the Committee are as follows:
3.1 Nomination: Formulation of policy, criteria and
methods for proposing candidates to the Board for
consideration and appointment as directors,
members of Board Committees, President and Senior
Executive Vice Presidents, and in this respect has the
function and responsibility to:
1.Consider the size, composition, and term of the
Board;
2.Develop criteria for Board membership;
3.In the case of casual vacancies, propose candidates
for election by the Board;
4.In the case of vacancies arising by rotation, propose
candidates for consideration by the Board, before
making recommendations to shareholders in the
Annual General Meeting of Shaeholders; and
5.Consider succession plans for the positions of the
Chairman of the Executive Committee, and the
President.
3.2 Compensation: The principal function is to
recommend remuneration and benefit policies to the
Board based on clear and transparent criteria to enable
remuneration and benefits commensurate with their
4.Recommend the remuneration of the Chairman of
Executive Committee and the President; and
5.Recommend the remuneration of Senior Executive
Vice Presidents and Executive Vice Presidents who
directly report to the President.
For these purposes, remuneration includes salary,
bonus, stock option plan (if any), and other fringe
benefits.
3.3 Corporate Governance: Formulation of a corporate
governance policy for the Bank and to make
recommendations to the Board on actions to be taken
to ensure good corporate governance at all levels,
including continuously improving policies and
further developing the Bank’s Corporate Governance.
It also performs the annual Board evaluation process
comprising; i) individual evaluation; ii) Chairman of
the Board evaluation; and iii) Board evaluation.
The Committee is composed of 2 non-executive
directors and an independent director, namely Mr.
Chumpol Na Lamliang (Chairman), Mr. Peter Seah
Lim Huat, and Mr. John William Hancock. In 2007, the Nomination and Corporate Governance
Committee held 1 meeting and the Compensation
Committee held 2 meetings. The merged
Nomination, Compensation, and Corporate
Governance Committee held 4 meetings.
4. Corporate Social Responsibility Committee
The Board set up the Committee as a Board Committee,
effective on 13 November 2006.
The responsibilities of the Committee are as Follows:
4.1 Formulate policy and framework for activities
relating to SCB’s Corporate Social Responsibility;
4.2 Formulate implementation Guidelines and liaise with
the Siam Commercial Foundation; and
4.3 Consider resources and budgets for CSR projects and
activities.
The members of the Committee comprise Mr. Chirayu
Isarangkun Na Ayuthaya (Chairman), Mr. Anand
1.4 Regularly report to the Audit Committee regarding
areas that can be further improved in accordance
with the overall risk management framework.
2. Strategy and Review Committee
The Strategy and Review Committee is chaired by the
Chairman of the Executive Committee, with the President as
Vice Chairman and other members including senior
executives at the Senior Executive Vice President and
Executive Vice President level.
Responsibilities of the Committee are to:
2.1 Set business policies and strategies consistent with
policies approved by the Board;
2.2 Review and adjust business policies and strategies to
respond effectively to changes in the business
environment;
SCB Executives present SCB performance results at an analysts’ meeting
Panyarachun, Mr. Vichit Suraphongchai, Khunying Jada
Wattanasiritham, Mr. Vicharn Panich, M.R. Disnadda Diskul,
and Mrs. Kannikar Chalitaporn. Mr. Anand Panyarachun was
a Corporate Social Responsibility Committee member before
his appointment as Board Chairman on September 1, 2007. In 2007, the Corporate Social Responsibility Committee held
7 meetings.
5.2.2Management Committees
1. Risk Management Committee The Board of Directors established a Risk Management
Committee in 1998. The Committee is chaired by the
President. Members comprise management at the Senior
Executive Vice President and Executive Vice President levels
from appropriate units. The Committee meets at least once a
quarter.
The Risk Management Committee has the responsibility of
overseeing the risk management of the Bank and the Bank’s
financial services subsidiaries, as follows: 1.1 Determine policies for the Executive Committee /
Board of Directors to approve with regard to overall
risk management, including specific policies for
credit risk, market risk, liquidity risk, operational risk,
and risks to the Bank’s reputation. 1.2 Develop or approve strategies consistent with the
Bank’s risk management policy: i.e. to be able to
assess, monitor, and maintain acceptable risk levels as
mandated by the Board.
1.3 Review the adequacy of the Bank’s risk policy and
management, which includes the effectiveness of
systems as well as the implementation of prescribed
policy.
2.3 Consider and/or sign off on the launch or
introduction of major new products, services, or
business processes;
2.4 Monitor and assess operational performance and
take appropriate actions; and
2.5 Make decisions and provide policy guidance when
there are issues relating to resource allocation or
operations.
3. Change Program Steering Committee
The Change Program represents the transformational
change agenda of the Bank, approved by the Board in
October 2001. The Program aims to rebuild the Bank’s
foundation, enhance efficiency and service quality to worldclass levels, and ultimately increase shareholder value.
The Change Program Steering Committee is chaired by the
Chairman of the Executive Committee, with the President as
Vice Chairman. Other members include senior executives at
the Senior Executive Vice President and Executive Vice
President levels. The Senior Executive Vice President of the
Change Program is responsible for developing the program
framework, project monitoring, and coordination.
The responsibility of the Committee is to determine the
Program direction and steer Change Program projects to
completion, monitor progress, make critical decisions
associated with the change agenda, and resolve problems or
contentious issues that may arise within any project.
4. Assets and Liabilities Management Committee
The Assets and Liabilities Management Committee is part of
the Bank’s market risk management framework. The
Committee is chaired by the Chairman of the Executive
Committee. Other members include the President, Senior
Executive Vice Presidents, and Executive Vice Presidents from
appropriate functional areas. The Executive Vice President of
the Treasury Group is secretary to the Committee. The responsibilities of the Committee are to:
4.1 Formulate strategies for managing liquidity risk,
interest rate risk, and exchange rate risk.
4.1.1 Formulate strategy and monitor the Bank’s
liquidity position to ensure that it is appropriate
and in compliance with regulatory requirements.
(1) Review and approve the liquidity
contingency plan.
(2) Formulate strategy and monitor the
dispersion of funding sources.
(3) Formulate strategy and manage risks
related to international payment systems.
4.1.2 Formulate strategy and monitor the Bank’s
capital adequacy to ensure that it is appropriate
and in compliance with regulatory requirements.
(1) Approve changes to the Bank’s capital
structure.
(2) Formulate guidelines on capital fund
management to ensure that it is effectively
managed and in compliance with
regulatory requirements.
4.1.3 Formulate strategy for managing risks related to
interest rate and foreign exchange exposure.
4.2 Formulate strategy for balance sheet management.
4.2.1 Policy on deposit and loan pricing adjustment.
4.2.2 Asset allocation.
4.3 Approve fund transfer pricing and monitor interest
rate risk to ensure that it is at an acceptable level.
4.4 Approve banking book policy and trading book
policy.
4.5 Related issues assigned by the Board.
5. Investment Committee
The Investment Committee is chaired by the President and
Senior Executive Vice Presidents and Executive Vice
Presidents in charge of equity investment, risk management,
and finance. portfolio companies operate in line with Bank policy;
and
5.5 Approve Bank equity investment according to the
authority delegated to it by the Board.
5.3 Roles, Duties, and Responsibilities of the Board
Members
The Board is committed to conducting itself in accordance
with the highest standards of ethical behavior and in
accordance with the law. The functions and responsibilities
of the Board are as stipulated by law, charter and shareholder
resolutions. They include the following:
1. Developing and/or approving Bank policies,
strategies, and financial objectives, and monitoring
their implementation with the aim of maximizing the
Bank’s economic value and shareholder value;
2. Formulating and/or approving structures, policies
procedures, and practices designed to ensure
compliance with regulatory requirements, Articles of
Association, resolutions of Shareholder meetings, and
general ethical standards; 3. Formulating and/or approving structures,
procedures, and practices designed to ensure that
there are appropriate risk management, compliance,
and internal control systems;
4. Monitoring and assessing the performance of
management in achieving strategic targets and
budgets approved by the Board (at least twice-yearly);
5. Setting criteria for, and evaluating (at least annually),
the performance of the President, from his/her
capability in managing the Bank’s operation based on
business targets and plans, and other senior members
of the management team;
6. Reviewing, on a regular and continuing basis, the
succession plan for the position of President; and
7. Observing and ensuring compliance with the
Directors’ Code of Conduct.
The responsibilities of the Committee are to:
5.1 Develop an equity investment plan consistent with
overall policy relating to the Bank, including business
strategy and return targets;
5.2 Formulate strategy for supervising and developing
synergy in doing business with portfolio companies;
5.3 Consider all equity investment proposals, except
those acquired by means of debt restructuring which
are under the approval authority of the Credit
Committee; 5.4 Nominate directors who will represent the Bank and
provide policy guidance to them to ensure that
Atmosphere of the SCB Awards Day
Details of Director Attendance Records in 2007
The Board of
Directors
The
Executive
Committee
The
Audit
Committee
The
Nomination
Compensation
and Corporate
Governance
Committee 1)
1. Mr. Anand Panyarachun 2)
11/12
-
-
3/3
6/7
1/1
2. Mr. Vichit Suraphongchai
3. Mr. Maris Samaram
4. Mr. Chumpol Na Lamlieng 3)
12/12
12/12
9/9
29/32
-
-
-
10/10
-
-
-
3/3
7/7
-
-
1/1
1/1
-
11/12
-
-
-
7/7
1/1
1st Tenure: 8 years and 2
months
2nd Tenure: 14 years and
2 months
8 years
4 years and 10 months
1st Tenure: 1 year and 8
months
2nd Tenure: 9 months
Name
The
Corporate
Social
Responsibility
Committee
The Annual
General
Meeting
of
Shareholders
Tenure
(As of 31 December
2007)
5. Mr. Chirayu Isarangkun Na
Ayuthaya 2)
6. Khunying Jada
Wattanasiritham 7. Mr. Bodin Asavanich
8. Mr. Tiraphot Vajrabhaya
9. Mr. Pichai Chunhavajira 10. Mr. Sumate Tanthuwanit 4)
11. Mr. John William Hancock
12. Mr. Peter Seah Lim Huat 5)
13. M.R. Disnadda Diskul 12/12
32/32
-
-
6/7
1/1
12/12
10/12
8/12
11/12
12/12
9/12
11/12
29/32
-
-
-
-
-
-
-
8/10
10/10
5/6
-
-
-
-
-
-
2/2
5/5
4/5
-
-
-
-
-
-
-
4/7
1/1
1/1
1/1
1/1
1/1
0/1
1/1
14. Mrs. Puntip Surathin 15. Mr. Vicharn Panich 6)
16. Mr. Sanit Rangnoi 7)
11/12
12/12
6/9
-
-
-
-
-
-
-
1/1
-
-
7/7
-
0/1
1/1
-
6 years
1st Tenure: 2 years and 2
months
2nd Tenure: 8 years and
8 months
1 year and 3 months
9 months
17. Mrs. Kannikar Chalitaporn
Mr. Prakob Tantiyapong 8)
12/12
2/3
32/32
-
-
-
-
-
6/7
-
1/1
0/1
Remarks:- 1) The Nomination and Corporate Governance Committee and the Compensation Committee were merged to become the Nomination,
Compensation, and Corporate Governance Committee, as of 1 February 2007. 2) Mr. Anand Panyarachun became the Chairman of the Board on 1 September 2007, replacing Mr. Chirayu Isarangkun Na Ayuthaya. On the same
day, he resigned from his position as Chairman of the Nomination, Compensation, and Corporate Governance Committee.
3) Mr. Chumpol Na Lamliang became a director on 5 April 2007, and the Chairman of the Nomination, Compensation, and Corporate
Governance Committee on 1 September 2007.
4) Mr. Sumate Tanthuwanit resigned from the Nomination, Compensation, and Corporate Governance Committee on 5 April 2007 to join the
Audit Committee on 19 April 2007.
5) Mr. Peter Seah Lim Huat is a foreign resident and attended the Meeting via teleconference, as follows:
- Meeting of the Board No. 7/2007 - Meeting of the Nomination and Corporate Governance Committee No. 1/2007
- Meetings of the Nomination, Compensation, and Corporate Governance Committee No. 1/2007, 3/2007 and 4/2007
6) Mr. Vicharn Panich was a member of the Nomination, Compensation, and Corporate Governance Committee between 17 October 2006 - 1
February 2007 and left to join the Corporate Social Responsibility Committee on 13 November 2006.
7) Mr. Sanit Rangnoi became a Director on 5 April 2007.
8) Mr. Prakob Tantiyapong resigned from his position as Director on 5 April 2007.
5.4 Board Meetings
The Board Charter requires that there be not less than 6
meetings per year, with advance dates set for the entire year.
Special meetings are convened as necessary. The Chairman
of the Board, the Chairman of the Executive Committee, and
the President co-operate in selecting and setting advanced
agendas by importance and other needs. Other directors also
have the right to propose agenda items. Principal meeting
agendas involved consideration of the Bank’s strategic
direction, annual business plan and budget, quarterly
financial reports, status of the Change Program, significant
credit and debt restructuring matters, significant acquisition
and disposal of assets, key organization and management
changes, and new policies and performance reviews. The Company Secretary ordinarily prepares and circulates the
agenda and relevant documents at least 7 days before each
meeting to allow Board members time to consider the issues.
The Company Secretary records the minutes, which are
ordinarily circulated to the Board members within 7 days of
the meeting. The minutes are adopted at the next meeting,
and are kept for scrutiny by Board members and other
concerned parties.
For lower positions than Executive Vice President, related
group head works closely with HR Group on screening and
election, to propose the appointments to the President or the
Executive Committee. In addition, the Board has set other types of meeting e.g. a
special outside Board Meeting “Board Retreat”, once a year to
consider and discuss significant Bank matters and approve
the Annual Plan and an Independent Directors’ or NonExecutive Directors’ meeting at least once a year. The Board policy is that director remuneration should be
appropriate and reflect director duties and responsibilities to
fulfill stakeholder expectations and comply with regulatory
requirements. It is implicit that Bank directors must possess
appropriate experience and qualifications to discharge such
duties. The Board sets director remuneration corresponding
to the contribution and responsibilities of each person.
In 2007, there were 12 Board meetings, one Board Retreat,
and one Independent Directors’ meeting.
5.5 Board Assessment In 2007, the Board continued to conduct board assessments
covering 1) Assessment of individual Board members, 2)
Assessment of the Chairman of the Board, and 3) Assessment
of the Board as a whole. The Company Secretary was assigned
to send assessment forms and to gather those forms for
delivery to the Chairman of the Nomination, Compensation,
and Corporate Governance Committee for consideration, as
per the Board’s Charter. The results are discussed at a Board
Meeting. Details of the process are available on the Bank’s
web-site (www.scb.co.th) under “Corporate Governance”.
Performance assessments over a calendar year will be
undertaken annually. At the Annual General Meeting of
Shareholders in April of each year, the Board will use the
assessments as a basis for its recommendation to shareholders
on the election of directors.
The recommendations will be further analyzed for
developing Board efficiency for the maximum benefit of the
Bank’s good corporate governance.
5.6 Procedure for nomination of directors and
executives candidates The Nomination, Compensation, and Corporate Governance
Committee screens and proposes to the Board qualified
candidates to serve as directors and members of Board
Committees. The Committee’s decision is based on the
candidates’ knowledge, capabilities, and past experience
required to meet the Bank’s requirements in filling vacant
positions. Shareholders and Board members are invited to
nominate qualified candidates for election to the Bank’s Board
of Directors. The Committee, then, considers submitted
proposals and makes its recommendation to the Board or
proposes to the Annual General Meeting of Shareholders. For executive positions at levels of Chairman of the
Executive Committee, the President, Senior Executive Vice
President, and Executive Vice President - who directly report
to the President, the Committee is responsible for
nominating selection, and proposing to the Board of
Director for its considerations, search committee may be set
up as a working group on some nomination. 5.7 Director and Management Remuneration
Remuneration of Board Members The current Board remuneration was approved at the Annual
General Meeting of Shareholders on April 3, 2000. The
Chairman of the Board receives a remuneration of Baht 1.8
million per year, and Board members receive Baht 1.2 million
per year.
Furthermore, at the Annual General Meeting of Shareholders
No.181 on April 8, 2004, shareholders approved the payment
of a directors’ bonus at the rate of 0.5 percent of dividend,
and authorized the Board to determine how the bonus
should be distributed, effective from financial year 2003. At
the 2007 Annual General Meeting of Shareholder, the
shareholders approved a dividend payment of Baht 2.00 per
share for 2006 operating results, a total payment of Baht
6,798 million. Accordingly, the payment of the directors’
bonus for 2006 totaled Baht 33.99 million.
Remuneration of Board Committee Members The Board proposes remuneration of board committees to
shareholders, together with the Board remuneration, for
approval. The current remuneration is based on 2007
Annual General Meeting of Shareholdrs dated 5 April 2007. Remuneration of Board Committees for Year 2007 was as
follows:
Executive Committee: Each member of the Executive
Committee receives Baht 150,000 per month. The Chairman
of the Executive Committee, and the President will not be
entitled to any special remuneration as being the Chairman
of the Executive Committee and the Executive Director. Audit Committee: The Committee Chairman receives Baht
75,000 per month plus a Baht 15,000 fee per meeting
attendance. Each Audit Committee member receives Baht
attendance.
Committee: The Committee Chairman receives Baht 60,000
per month plus a Baht 15,000 fee per meeting attendance.
Each Nomination, Compensation, and Corporate
Governance Committee member receives Baht 40,000 per
month plus a Baht 10,000 fee per meeting attendance.
Corporate Social Responsibility Committee: The
Committee Chairman receives Baht 30,000 per month plus a
Baht 15,000 fee per meeting attendance. Each Corporate
Social Responsibility Committee member receives Baht
attendance. Any member who is also and executive of the
Bank will not receive any remuneration. Remuneration of Senior Management
The Board, based on recommendations by the Nomination,
Compensation, and Corporate Governance Committee, also
sets the remuneration of the President, Senior Executive
Vice Presidents, and Executive Vice Presidents who report
directly to the President. These amounts take into
consideration the responsibility of such executives, and their
past, current, and anticipated contributions. To the extent
possible, such compensation reflects relative compensation
levels in the marketplace for senior executives with similar
capabilities and experience.
Remuneration for the Board, the Board Committees, and
Senior Executive Officers in 2007 were as follows:
1. Remuneration in Cash
1.1 Directors’ yearly remuneration - The Board of
Directors, totaling 18 persons, received aggregate
remuneration of Baht 20.69 million.
Remuneration in cash
(Unit : Million Baht)
The Board of
Directors
Name
The
Executive
Committee
The Audit
Committee
The Nomination,
Compensation,
and Corporate
Governance
Committee 1)
The
Corporate
Social
Responsibility
Committee
The Directors’ Bonus
for 2006 Operations
1. Mr. Anand Panyarachun 2)
1.4
-
-
0.54
0.34
2.228
2. Mr. Vichit Suraphongchai 3)
1.2
0.3
-
-
0.06
2.228
1.2
-
1.04
-
-
2.228
4. Mr. Chumpol Na Lamlieng 4)
0.89
-
-
0.46
-
-
5. Mr. Chirayu Isarangkun Na Ayuthaya
6. Khunying Jada Wattanasiritham
2)
1.6
-
-
-
0.53
2.228
1.2
1.65
-
-
0.28
2.228
7. Mr. Bodin Asavanich
1.2
1.8
-
-
-
2.228
1.2
-
0.67
-
-
2.228
9. Mr. Pichai Chunhavajira
1.2
-
0.69
-
-
2.228
10. Mr. Sumate Tanthuwanit 5)
1.2
-
0.46
0.12
-
2.228
1.2
-
-
0.54
-
2.228
12. Mr. Peter Seah Lim Huat
1.2
-
-
0.53
-
2.228
13. M.R. Disnadda Diskul
1.2
-
-
-
0.19
2.228
14. Mrs. Puntip Surathin
1.2
-
-
-
-
2.228
15. Mr. Vicharn Panich 6)
1.2
-
-
0.03
0.35
0.57
16. Mr. Sanit Rangnoi 7)
0.89
-
-
-
-
-
17. Mrs. Kannikar Chalitaporn 3)
1.2
-
-
-
-
2.228
Mr. Prakob Tantiyapong 8)
Total
0.31
-
-
-
-
2.228
20.69
3.75
2.86
2.22
1.75
33.99
Remarks:- 1) The Nomination, and Corporate Governance Committee and the Compensation Committee were merged to become the Nomination,
Compensation, and Corporate Governance Committee since 1 February 2007. 2) Mr. Anand Panyarachun became the Chairman of the Board on 1 September 2007, replacing Mr. Chirayu Isarangkun Na Ayuthaya. On the same
day, he resigned as Chairman of the Nomination, Compensation, and Corporate Governance Committee.
3) Member who are Bank executives receive no payment in Board Committees, as resolution of the Annual General Meeting of Shareholders on 5
April 2007. The Chairman of Executive Committee is defined as a Bank executive since 1 February 2007.
4) Mr. Chumpol Na Lamliang became a Director on 5 April 2007 and the Chairman of the Nomination, Compensation, and Corporate
Governance Committee on 1 September 2007.
5) Mr. Sumate Tanthuwanit resigned from the Nomination, Compensation, and Corporate Governance Committee on 5 April 2007 to join the
Audit Committee on 19 April 2007.
6) Mr. Vicharn Panich was a member of the Nomination, Compensation, and Corporate Governance Committee for the period 17 October 2006 1 February 2007 and left to join the Corporate Social Responsibility Committee on 13 November 2006.
7) Mr. Sanit Rangnoi became a Director on 5 April 2007.
8) Mr. Prakob Tantiyapong resigned from his position as Director on 5 April 2007.
1.2 Directors’ bonus - The Board of Directors, totaling 16
persons, received aggregate payment of directors’
bonuses for Year 2006 operations of Baht 33.99
million.
1.3 Board Committee Members’ remuneration - The
members of the Executive Committee, the Audit
Committee, the Nomination, Compensation, and
Corporate Governance Committee, and the
Corporate Social Responsibility Committee (14
persons) totaled Baht 10.58 million.
1.4 Senior Management - Remuneration of Executives
from Senior Executive Vice President level upward (8
2. Other Remuneration •
Medical welfare for directors is provided to personnel
equivalent to Executive Vice President and up.
•
Traveling and accommodation expenses are covered
for a non-resident foreign directors to attend
meetings in Thailand.
•
The Bank’s provident fund contribution to the
President and Senior Executive Vice Presidents (8
5.8 Director Orientation and Development The Bank considers director and management development
important, and has set a policy to encourage learning
activities for directors and management. The Bank
encourages its directors to attend courses or join activities
aimed at enhancing their performance on the Board and
Board Committees. Fourteen directors have participated in
various Thai Institute of Directors (IOD)’s director
programs, including: 1. Chairman Program
2. Director Certification Program (DCP)
3. Director Accreditation Program (DAP)
4. Audit Committee Program (ACP)
5. Role of the Compensation Committee (RCC)
6. Understanding the Fundamental of Financial
Statement (UFS)
7. Finance for Non-Finance Director (FN)
8. Board and CEO Assessment, and 9. Chartered Director
For Executive and staff, Knowledge Forums are regularly set
up for senior Bank management, to introduce new
information and knowledge from a variety of experienced
speakers with experience in many areas. These included a
Change Program Forum about “Dare to Dream” in June
2007, with the objective to encourage staff in being different,
and “Staying Competitive” in November 2007, comprising
role-plays about current aspects of the Thai banking industry
and competition. There were more than 2,800 staff
participated with each seminar.
In addition, the Bank holds orientation meetings for new
board members. In these meetings, briefings on Bank
policies and key business operations are given by senior
executives, and important documents provided to the new
directors. The Director’s Manual includes the Memorandum
and Articles of Association of the Bank, and the Bank’s latest
annual report. The main headings are Roles and
Responsibilities of Directors, Policy Statement on Corporate
Governance, Approval Authorities, Prohibitions under
Applicable Laws, and Roles and Responsibilities of the Board
Committees.
Auditing Fees
In 2007, remuneration for external auditors comprised: 1. Auditing Fees: The Bank and its subsidiary companies
paid auditor fees to:
•
The Auditors of the Bank totaling Baht 13.25 million
in 2007. •
The audit company or its independent, contracted
auditors, including individuals or business entities
related to the auditors and the audit company totaling
Baht 4.39 million in 2007. 2. Non-audit Fees: The Bank and its subsidiary companies
paid non-audit fees, including the following items:
(1) Bank of Thailand special audit, (2) branch audits, (3) ebanking audit, (4) FX Booth audit, (5) Review of Valuation
Model Donmuang International Airport Hotel Co.,Ltd,
(6) Preparation and submission of reply in response to an
enquiry letter date 16/11/2007 for the year of assessment
2004/5 (Hong Kong branch), (7) Department of
Insurance annual report audit, (8) Department of
Insurance special audit, (9) Servicing Report audit
according to a mutually agreed audit method, (10)
Revolving and Servicing Report audit according to a
mutually agreed audit method. (11) Professional fee on
tax Year of Assessment (YA) 2006/2007, In all, non-audit
fees were paid to:
• The Bank’s auditors during the 2007 financial period
totaling Baht 0.25 million, and future expenses for
which the auditing process has not been completed
within the period totaling Baht 1.30 million.
• The audit company or its independent contracted
auditors, including individuals or business entities
related to the auditors and the audit company totaling
Baht 0.73 million in 2007, and future expenses for
which the services have not been completed within the
period totaling Baht 1.36 million
Changes in Bank Securities Holding by Directors and Executives
Position
Name
1. Mr. Anand Panyarachun
Chairman of the Board, Independent Director, and Member of
the Corporate Social Responsibility Committee
2. Mr. Vichit Suraphongchai
The amount of shares as
at 31 December 2007
Change (Increase/
(Decrease)) in
2007
428,793 SCB
32,300 SCB-P
-
Director, Chairman of the Executive Committee, and Member of
-
-
Independent Director, and Chairman of the Audit Committee
-
-
4. Mr. Chumpol Na Lamlieng
Director, and Chairman of the Nomination, Compensation, and
Corporate Governance Committee
-
-
5. Mr. Chirayu Isarangkun Na Ayuthaya
Director, and Chairman of the Corporate Social Responsibility
Committee
-
-
6. Khunying Jada Wattanasiritham Director, Member of the Executive Committee, and Member of
-
-
7. Mr. Bodin Asavanich
Director, and Member of the Executive Committee
580 SCB
(20,000) SCB
143,600 SCB
15,000 SCB-P
-
9. Mr. Pichai Chunhavajira
-
-
10. Mr. Sumate Tanthuwanit
51,953 SCB
(10,000) SCB
Independent Director, and Member of the Nomination,
Compensation, and Corporate Governance Committee
1,000 SCB
-
12. Mr. Peter Seah Lim Huat
Director, and Member of the Nomination, Compensation, and
Corporate Governance Committee
-
-
13. M.R. Disnadda Diskul
Director, and Member of the Corporate Social Responsibility
Committee
-
-
14. Mr. Vicharn Panich
Independent Director, and Member of the Corporate Social
Responsibility Committee
-
-
15. Mrs. Puntip Surathin
Director
426 SCB
-
16. Mr. Sanit Rangnoi
Director
2,573 SCB
643 SCB-P
-
17. Mrs. Kannikar Chalitaporn
President, Executive Director, and Member of the Corporate
Social Responsibility Committee 43,000 SCB
43,000 SCB
18. Mr. Sirichai Sombutsiri
Senior Executive Vice President, Corporate Banking Group
-
-
19. Mr. Deepak Sarup
Senior Executive Vice President, Change Program and Chief
Information Officer
-
-
20. Mr. Wuchien Michael Than
Senior Executive Vice President, Chief HR Officer
-
-
21. Mr. Yokporn Tantisawetrat
Senior Executive Vice President, Chief Finance Officer and
acting Chief Risk Officer
9,434 SCB
-
22. Mr. Yol Phokasub Senior Executive Vice President, Retail Banking Group
10 SCB
-
23. Mr. Na Bhengbhasang Krishnamra
Senior Executive Vice President, Sales & Service Division, Retail Banking Group
52,893 SCB
43,826 SCB-P
-
Remarks:- SCB = SCB Ordinary Shares, and SCB-P = SCB Preferred Shares.
Bank director who holds share or debenture of an affiliated company is none. Bank director who had direct or indirect interest in any contract made by the Bank is none. 66 Annual Report 2007
Related Transactions
During 2006 and 2007, the Bank’s related transactions were in accordance with reasonable criteria and consideration procedures
whereby fair prices and conditions were applied in the same manner as transactions generally concluded with the public to ensure
optimum benefit to the Bank and its shareholders, and to prevent any conflict of interest in line with regulatory compliance
guidelines as set forth by the Bank of Thailand and other regulatory bodies, including the Stock Exchange of Thailand. Details of
the related transactions are as follows:
Loans, deposits and contingencies to related parties or persons as at December 31, 2007 and 2006 are summarized as follows:
2007
Loans
Subsidiaries
Deposits
2006
Contingencies
Loans
Deposits
Contingencies
-
-
-
-
-
-
Associated companies
1,215
1,062
1,425
1,143
507
1,569
Related Companies
2,942
643
488
3,547
457
788
-
965
-
-
572
2
261
721
62
431
635
67
10
619
535
11
262
53
139
813
1
139
752
1
4,567
4,823
2,511
5,271
3,185
2,480
Major shareholder (10 % to 20 % Ownership) Subsidiaries and associated companies of major
shareholder (which are not included in the
above lists)
Companies owned / controlled by the Bank’s
directors / management
Officers from departmental managers upward
Total
Significant Items
Details of significant items between the Bank and its subsidiaries and related persons or businesses as of 31 December 2007 in
which the Bank applied fair prices in calculation as normally done when conducting business are as follows:
Consolidated
2007
Loans
Finance & Insurance
The Siam Industrial Credit
PCL and affiliates
Deposits Contingencies
1,200
2006
170
Loans
2
Deposits Contingencies
707
Director/Executive
188
2
Mr. Somchai Sanyalaksiri
Miss. Kluaymai Devahastin
Mrs. Somana Siksamat
Siam Commercial New York
Life Insurance PCL
-
719
-
-
216
-
Khunying Jada Wattanasiritham
Mr. Yol Phokasub
Mr. Veerathai Santiprabhob
Mr. Pakorn Peetathawatchai
Mrs. Thitima Rungkwansiriroj
SCB Leasing PCL
15
7
450
435
1
740
Mr. Meechai Angsurat
Mrs. Thitima Rungkwansiriroj
Mr. Nibondh Namdhavaj
Vina Siam Bank (Vietnam)
-
4
-
-
9
-
Mr. Yol Phokasub
Mr. Grish Attagrish
Miss. Usana Wanachate
Mr. Sahasin Yuttarat
Real Estate
Christiani & Nielsen (Thai) PCL
and affiliates
Others
-
138
836
-
74
695
Saturn Inc. (Cayman Islands) -
19
-
1
14
-
Nobleclear Holding (BVI) Ltd.
(Germany)*
-
5
137
-
5
132
1,215
1,062
1,425
1,143
507
1,569
* Discontinued operations or in the process of dissolution
Mr. Sarunthorn Chutima
Mr. Danuch Yontararak
Total
Mr. Wittaya Ittisupornrat
Mr. Sakesom Srirungruangdeja
Income and Expenses between the Bank and subsidiaries companies are listed as follows:
For the year ended December 31
(Baht million)
Income
Interest received
Others income
Expenses
Interest expense and others
2007
2006
4
7
2,491
1,712
103
56
Investments in Subsidiaries and Associated Companies
As at December 31, 2007 and 2006, the Bank and subsidiaries have investments in subsidiaries and associated companies as
follows:
Consolidated
Type of Business
Type of share
Direct and indirect shareholding (%)
Investment value
Cost method
Equity method
2007
2006
2007
2006
2007
2006
Finance & Insurance
Banking
Ordinary
33.0
33.0
227
227
267
278
The Siam Industrial Credit
PCL and affiliates
Finance
Ordinary
38.6
38.6
1,250
1,250
1,567
1,572
Life Insurance PCL
Life Insurance
Ordinary
47.3
47.3
633
633
1,229
874
Leasing, Hirepurchase and
Factoring
Ordinary
44.3
44.1
45
45
142
136
30.0
30.0
2
2
-
-
41.5
41.5
534
534
391
398
SCB Leasing PCL
Services
Siam Children Care Co., Ltd.*
Nursery
Real Estate
Christiani & Nielsen (Thai)
PCL and affiliates
Construction
Others
Ordinary
Ordinary
Saturn Inc. (Cayman Islands)
Holding
Ordinary
39.8
39.8
16
16
37
60
(Germany)*
Holding
Ordinary
46.9
46.9
-
-
-
-
2,707
2,707
3,633
3,318
-
-
3,633
3,318
Total
Less Allowance for
impairment of investments
Total investments in
associated companies-net
(143)
2,564
(611)
2,096
Measures and Procedures for Approving Related Transactions
The Bank has formulated policies, regulations, and procedures for consideration and approval of related transactions in compliance
with all applicable regulations set out by the Bank of Thailand, the Stock Exchange of Thailand, and the Office of the Securities and
Exchange Commission to ensure that its related transactions with connected entities, including subsidiaries, affiliates, relevant
companies, third parties, and/or interested parties, are in line with reasonable criteria and procedures whereby fair prices and
conditions are applied in the same manner as transactions generally concluded with the public to yield optimum benefit to the
Bank and its shareholders and to prevent any conflict of interest according to good governance principles.
The Bank has also devised a policy governing pricing and conditions for concluding transactions with interested parties based on
normal transaction standards, whereby fair prices and conditions will be applied in the same manner as transactions generally
concluded with the public and/or in accordance with regulations set out by the Bank of Thailand, the Stock Exchange of Thailand,
and the Office of the Securities and Exchange Commission. Significant transactions with connected entities in 2006 and 2007 are
detailed in the notes to financial statements.
The Bank has also made it clear that any consideration to grant loans to or investment in businesses in which the Bank or its
directors or management (EVPs or higher position) and relevant interested parties may be involved either directly or indirectly;
or any consideration to grant loans to the Bank’s shareholders or management (EVPs or higher position) in considerable amounts
as defined by the Bank of Thailand, shall be approved and unanimously resolved by the Board of Directors. It is clearly stated that
the Bank’s directors or management (division heads or higher position) having involvement with any transaction which may lead
to a conflict of interest shall be excluded from the consideration and ratification of any related transaction.
In general, the Bank’s related transactions concluded with its shareholders, directors, executive committees, president, SEVPs,
and management (division heads or higher position) whose direct responsibilities are dealt with the Bank’s financial statement,
and relevant persons as regulated, shall be considered based on the criteria, e.g. type of transaction, volume, specific commercial
conditions, etc. Related transactions shall be considered and approved reasonably by board resolution to ensure fair prices or
conditions are adopted to the Bank’s optimum benefit, provided that interested committee members shall be excluded from
meeting and voting. The procedures for approval of the related transactions shall be initially proposed to the Executive Committee
and then to the Board of Directors for the Board of Directors’ consideration for further submission to the shareholders’ meeting
for final approval, as the case may be. If the matter is submitted to the shareholders’ meeting, opinions must be sought from the
Audit Committee and the independent financial advisor.
In light of the need for disclosure of any transactions which may lead to a conflict of interest, or connected transactions, or related
transactions according to regulations of the Stock Exchange of Thailand, the Office of the Securities and Exchange Commission,
and the Bank of Thailand, the Bank has made such disclosures in its Annual Report based on the criteria, conditions, and methods
for the financial disclosure report and operating performance of the securities issuer. In this regard, the Bank has assigned its
responsible unit to deal with the preparation of a financial statement to collect information from relevant units for disclosure in
the annual report.
Policies and Trends of Related Transactions
The Bank abides by good governance practice for related transactions and ensures compliance with all applicable regulatory
requirements, including laws, SET announcements, and Bank of Thailand regulations regarding transactions with connected
entities and the acquisition or sales of listed company assets.
It is likely that the Bank will have related transactions arising from general business operations in the future; however, these shall
be subject to the Bank’s clear measures and approval processes. In case there is a change in regulatory requirements, the Bank
will implement its practices for related transactions to ensure regulatory compliance with applicable regulations of the Bank of
Thailand and government agencies governing the Bank, including the Stock Exchange of Thailand.
Audit Committee’s Report
The Board of Directors of Siam Commercial Bank PCL approved tenure for the three Audit Committee members whose tenures
expired April 2007 for a further two years and appointed a qualified independent director as an additional member of the Audit
Committee. The following persons are presently active members of the Audit Committee:
1.
2.
3.
4.
Mr. Maris Samaram
Mr. Tiraphot Vajrabhaya
Mr. Pichai Chunhavajira
Mr. Sumate Tanthuwanit
Chairman of the Audit Committee
Member of the Audit Committee
Over the year 2007, the Audit Committee held ten meetings to extensively discuss and address important matters with executives,
top management, and auditors in order to fulfill their duties and responsibilities as determined by the Board of Directors, the
Audit Committee charter and regulatory authorities. The Audit Committee kept the Board of Directors informed of the matters
discussed at these meetings and made recommendations for necessary actions to be taken.
The various tasks undertaken by the Audit Committee during the year can be summarized as follows:
• Financial Reporting Reviewed and discussed with management and the auditors the Bank’s financial reports, significant
accounting policies, information disclosure and Notes to Financial Statements, results of financial statement audits or reviews,
and financial reporting risk issues. Recommended that top management of the Bank deal with financial matters related to the
preparation of financial performance information for various aspects of the bank’s operations.
• Internal Controls Considered assessment results in connection with the regular reviews of internal control systems of the
Bank’s business units in key operations processes, reviewed the results of the Bank of Thailand’s annual audit and the external
auditor’s remarks on internal controls from their review of the financial statements and IT system audits. Regularly reviewed
risk management reports received from the Bank’s management.
• Internal Audits Considered and passed new internal audit charters. Granted approval for organizational restructuring, the
appointment of the Audit Division’s top management, and the audit plan. Reviewed the auditor’s internal audit efficiency
assessment results, internal audit results, and credit review. Followed up closely to ensure that high-risk issues noted during
audits have been addressed and improved. Both internal and external auditors continuously exchanged information and
engaged in discussions with each other to boost audit efficiency and effectiveness. Provided useful suggestions about cases
of fraudulent acts and operations errors and to analyze the root causes of incidents so that proper prevention guidelines can
be established to reduce possible recurrence. A qualified company was hired to assess the effectiveness of the information
technology internal audit function.
• Governance and Regulatory Compliance Reviewed and approved the Bank’s Compliance Charter. Reviewed the formulation
of compliance policies and assessment results under various subjects as determined by the regulatory authorities. Directed the
Compliance & Operational Control Division to monitor the Bank’s regulatory compliance, including the performance of the
Compliance & Operational Control Division.
• Compliance with the Executive & Employee Ethics & Code of Conduct Monitored the communication and dissemination of
the Employee Code of Conduct. Directed the concerned units to immediately report any transactions concerning conflicts of
interest or connected transaction to the Audit Committee for consideration before proposing the matter to be reviewed by the
Board of Directors.
• External Auditors–The Audit Committee and management reviewed the performance of the external auditor during the year. In
accordance with the Bank’s regular practice and to assure a continuing fresh and critical review of the Bank’s financial practices,
the Audit Committee and management requested proposals from qualified accounting firms and received written and oral
presentations from responding firms. After extensive review and discussions, the Audit Committee recommended to the Board
to appoint a new auditor and the auditor fees before endorsing the appointment and the fees to the shareholders for approval.
Based on activities throughout the year 2007, the Audit Committee believes that the Bank’s financial statement and information
disclosure are complete, reliable, and consistent with generally accepted accounting standards and accounting principles. Furthermore,
risk management and internal controls were efficient and adequate. Internal audits are done independently and cover high-risk
operations processes and the audit process are undertaken in accordance with audit standards. Operations are closely supervised to
ensure compliance with applicable laws and regulations. With all of these precautions in place, we believe the Bank can maintain its
credibility and gain the trust of customers, shareholders, and its employees in line with the Bank’s vision and goals.
(Mr. Maris Samaram)
Chairman of the Audit Committee
.BOBHFNFOU%JTDVTTJPOBOE"OBMZTJT
Siam Commercial Bank
Management Discussion and Analysis
For the year ended December 31, 2007
This report discusses principal changes in the audited consolidated financial statements for the year ended December 31, 2007.
The Bank is strongly committed to run its business consistent with its vision of being “The Bank of Choice for our customers,
shareholders, employees and community” and becoming “The Premier Universal Bank” in Thailand. In 2007, the Bank achieved
its business targets and policies in terms of growth, profitability, and asset quality management. The Bank still ranked third in
terms of assets, with continued leadership in Retail Banking products and services and service network coverage. At the same
time, the Bank was successful in boosting market share in other business segments, especially SME loans.
This continued success was recognized by shareholders and investors, and prompted the Bank’s market capitalization to jump to
No. 1 among other financial institutions, with a new record high valuation of more than Baht 290 billion as of December 2007.
Operating Results
Siam Commercial Bank PCL reported 2007 audited operating results showing a net profit of Baht 17,356 million, up Baht 4,070
million (30.6% yoy) from Baht 13,286 million in 2006 due mainly to rising net interest and dividend income, and non-interest
income, while the allowance set aside for doubtful accounts in 2007 was less than that of the previous year. The allowance set
aside in 2006 was in compliance with Bank of Thailand's requirements under International Accounting Standard No. 39 (IAS
39).
Operating profit (excluding allowance for doubtful accounts, corporate income tax, and minority interest in subsidiaries) was
Baht 28,950 million, up Baht 4,246 million (17.2% yoy) from Baht 24,704 million in 2006.
Earnings per share (EPS) in 2007 equaled Baht 5.11, up from Baht 3.91 in 2006. Return on Equity (ROE) and Return on Assets in
2007 were 16.5% and 1.6% respectively.
2007
(Bt, million)
2006
(Bt, million)
% yoy
28,950
24,704
17.2%
Allowance for Doubtful Accounts
4,036
7,001
-42.4%
Income Tax
7,434
4,134
79.8%
125
282
-55.8%
Net Profit
17,356
13,286
30.6%
EPS (Baht)
5.11
3.91
30.6%
ROE
16.5%
13.5%
ROA
1.6%
1.4%
(Consolidated)
Operating Profit
Minority Interest in Subsidiaries
Net profit and Operating profits
Net profit
(Million Baht)
Operating Profit
30000
25000
20000
15000
10000
5000
0
2003
2004
2005
2006
2007
Net interest and dividend income
Net interest and dividend income was the main source of the Bank’s revenue, representing 63% of total income in 2007.
Although overall economic conditions were not favorable to loan growth while interest rate trends were dipping, the Bank was
able to increase net interest and dividend income by Baht 6,608 million (20.3% yoy) to Baht 39,177 million, driven by higher
interest income from loans and hire purchase. 2007
(Bt, million)
2006
(Bt, million)
% yoy
60,446
52,703
14.7%
44,103
38,467
14.7%
- Interbank and money markets
6,738
6,988
-3.6%
- Hire purchase and financial lease income
4,625
3,120
48.2%
- Investment
4,979
4,128
20.6%
Interest expenses
21,268
20,134
5.6%
16,850
16,628
1.3%
- Interbank and money markets
1,872
953
96.6%
- Short-term borrowing
1,305
1,281
1.8%
- Long-term borrowing
1,241
1,272
-2.5%
39,177
32,569
20.3%
3.75%
3.59%
Yield on loans
6.03%
6.12%
Cost of deposits
2.05%
2.35%
Spreads
3.98%
3.77%
(Consolidated)
Interest and Dividend Income
- Loans
- Deposits
Net Interest Margins
Interest and dividend income for 2007 soared to Baht 60,446 million, an increase of Baht 7,742 million yoy. Details included: - Interest income from loans was Baht 44,103 million, up Baht 5,637 million (14.7% yoy) due mainly to loan expansion,
especially SME loans with growth of 39% yoy.
- Interest income from Interbank and money markets was Baht 6,738 million, down Baht 250 million (3.6% yoy) due to
declining Interbank interest rates and slumping transactions.
- Hire purchase and financial lease income was Baht 4,625 million, up Baht 1,505 million (48.2% yoy), due to the expansion
of hire purchase loans by 44% in 2007. - Interest and dividend income from investment was Baht 4,979 million, up Baht 851 million (20.6% yoy), mainly due to a
one-time special dividend from general investment in the amount of Baht 449 million.
Interest expenses were Baht 21,268 million, up Baht 1,135 million (5.6% yoy), mainly due to the increase of interest on Interbank
and money markets by Baht 920 million (96.6% yoy) due to internal liquidity management. Deposit costs increased by Baht 223
million (1.3% yoy) due to a higher deposit base despite of series of interest rate cuts in 2007.
SCB Interest Rates
Sep 26, 06
Jan 24, 07
Mar 1, 07
Apr 23, 07
May 24, 07
Jul 20, 07
7.75%
7.75%
7.50%
7.25%
7.00%
6.875%
3-month deposits
3.50-4.75%
3.50-4.25%
3.25-3.75%
2.75-3.00%
2.25-2.50%
2.00-2.25%
6-month deposits
3.75-4.75%
3.75-4.50%
3.25-3.75%
2.75-3.00%
2.25-2.50%
2.00-2.25%
12-month deposits
4.00-5.00%
3.75-4.50%
3.25-3.75%
2.75-3.00%
2.25-2.50%
2.375%
Dec 13, 06
Jan 17, 07
Feb 28, 07
Apr 11, 07
May 23, 07
Jul 18, 07
5.00%
4.75%
4.50%
4.00%
3.50%
3.25%
Lending Rate
MLR
Fixed Deposit rate
Policy Rate
Given the Bank’s strong loan growth net interest margin soared from 3.59% last year to 3.75% this year, especially in the SME and
hire purchase sectors which yielded higher returns and considerable interest income, and better control over cost of deposit.
Note that yield on loans was 6.03%, while cost of deposits stood at 2.05%. Net Interest Margins
Yield on Loans & Cost of Deposits
Yield on loans
Cost of deposits
Non-Interest Income
The Bank has a clear policy of focusing on non-interest income growth from a variety of Bank and subsidiary products and
services catering to the needs of business and retail customers. Major non-interest income includes fee and service income
(accounting for 67% in 2007), driven by cross-selling of Bank products and services to almost 10 million customers over 800
branches across the nation, FX income (accounting for 11%) driven by the Bank’s extensive foreign exchange booths and
treasury products meeting the sophisticated needs of customers, and underwriting income (accounting for 10%) from Siam
Commercial Samaggi Insurance, whose business expanded significantly last year.
Number of branches
Number of ATMs
Number of FX Booths
2003
2004
2005
2006
2007
501
563
692
793
874
1,317
1,959
2,803
3,828
4,833
79
93
107
134
141
Based on the above policy, the average growth of non-interest income was 20% over the past four years. Above all, the
proportion of non-NII to total Bank income ranked the highest among its peers at 37% in 2007. The Bank targets non-NII
growth of between 17-20% for 2008.
2007 Non-NII Breakdown
Other income 9%
Underwriting income 10%
Income from equity
interest in associated companies 2%
Gain from investments 0%
Fee and service income
67%
- Bank cards
- Bancassurance
- Mutual Funds
- Loan Related
- Other Fees & Services 24%
10%
8%
7%
18%
Gain on exchange 11%
In 2007, non-interest income from core businesses (excluding investment gain) was Baht 22,698 million, up Baht 3,717 million
(19.6% yoy) from Baht 18,981 million in 2006. Details included: - Fee & service income was Baht 15,375 million, up Baht 2,035 million (15.3% yoy), mostly from higher fees earned from
mutual fund business, card business, bancassurance, and credit lending. In 2007, assets under management by SCB Asset Management increased by 77% to Baht 301 billion at the year-end,
confirming its no. 1 position. In the meantime, the Bank maintained its no. 1 positions in the credit card and
bancassurance businesses.
- Gain on exchange was Baht 2,619 million, up Baht 365 million (16.2% yoy), due to increased transactions amid foreign
exchange volatility. - Profit sharing from associated companies was Baht 452 million, down Baht 135 million (23.0% yoy) in line with the
performance of associated companies.
- Underwriting income was Baht 2,279 million, up Baht 1,041 million (84.1% yoy), due to business expansion of Siam
Commercial Samaggi Insurance with 64.2% growth yoy for its premium.
- Other income was Baht 1,974 million, up Baht 412 million (26.4% yoy), due to higher income from subsidiaries and the
sales of assets and foreclosed properties.
The Bank reported a gain on investment of Baht 104 million, a dip of Baht 610 million (85.4% yoy), due to gain on selling debt
and equity instruments and gain from mark to market in debt instruments being much lower than last year. Overall, total noninterest income of the Bank and its subsidiaries was Baht 22,802 million, up Baht 3,107 million (15.8% yoy).
2007
(Bt, million)
2006
(Bt, million)
% yoy
15,375
13,340
15.3%
1,043
940
11.0%
14,331
12,400
15.6%
2,619
2,254
16.2%
452
587
-23.0%
Underwriting income
2,279
1,238
84.1%
Other income
1,974
1,562
26.4%
22,698
18,981
19.6%
104
714
-85.4%
22,802
19,695
15.8%
(Consolidated)
Fee and service income
- Acceptances, aval, and guarantees
- Others
Gain on exchange
Income from equity interest in associated companies
Total Operating Income
Gain from investments
Total Non-Interest Income
Non-Interest Expenses
With a clear goal of growing its business, the Bank continuously invested in the expansion of its retail network and personnel. In
2007, the Bank opened 81 new branches and installed 1,005 ATMs, and the number of Group employees increased by 1,218 to
18,365. In addition, the Bank continued to invest in new IT systems to enhance its capacity for business expansion and
management. Major IT systems launched in 2007 included Wholesale Integrated Network (WIN), HR Management, and
Wealth Management systems.
In 2007, the Bank registered non-interest expenses of Baht 33,029 million, an increase of Baht 5,469 million (19.8% yoy) from
Baht 27,560 million the previous year. Key factors were:
- Personnel expenses were Baht 11,135 million, up Baht 1,483 million (15.4% yoy), mostly from recognition of cash and
deferred bonuses in 2007 due to an accounting change to recording cash and deferred bonus in the year the performance
was based on. The increase of personnel expenses was also from the annual salary adjustment and higher headcount.
- Premises and equipment expenses were Baht 7,313 million, up Baht 1,072 million (17.2% yoy) due to network expansion
and system development by the Bank and subsidiaries.
- Taxes and duties were Baht 2,317 million, up Baht 424 million (22.4% yoy), in line with growing transactions.
- Fee and service expenses were Baht 2,638 million, up Baht 222 million (9.2% yoy) mainly from higher Interbank charges.
- Underwriting expenses were Baht 1,613 million, up Baht 1,087 million (206.8% yoy) in line with transactions by Siam
Commercial Samaggi Insurance.
- Other expenses were Baht 4,701 million, up Baht 1,312 million (38.7% yoy), mostly due to rising marketing expenses.
- Losses from loans sold to TAMC were Baht 48 million, a decrease of Baht 665 million (93.2% yoy).
2007
(Bt, million)
2006
(Bt, million)
% yoy
11,135
9,652
15.4%
Premises and equipment expenses
7,313
6,241
17.2%
Tax and duties
2,317
1,893
22.4%
Fee and service expenses
2,638
2,416
9.2%
84
115
-27.1%
Contribution to the FIDF
3,180
2,615
21.6%
Underwriting expenses
1,613
526
206.8%
Other expenses
4,701
3,388
38.7%
(Consolidated)
Personnel expenses
Director remuneration
Loss from adjusting selling price of loans sold to TAMC
Total Non-Interest Expenses
Cost to Income Ratio
48
714
-93.2%
33,029
27,560
19.8%
53.3%
52.7%
Cost to income ratio was 53.3% in 2007, up from 52.7% in the previous year, mainly due to the expansion of the insurance
subsidiary which had an average cost to income ratio higher than the Bank’s average.
Cost to income ratio
60%
55%
50.9%
50.8%
50%
45%
47.6%
40%
35%
44.2%
52.7%
53.3%
50.8%
50.4%
2006
2007
47.8%
41.2%
2003
2004
2005
Cost to income ratio (consolodated)
Cost to income ratio (Bank only)
Loan Loss Provision
The Bank has a policy of setting aside provision each year in line with expected losses from NPLs. In 2007, on a bank only basis,
the Bank set aside Baht 3,600 million for loan loss provision in 2007. The provision was Baht 4,036 million in 2007 on a
consolidated basis.
Financial Status
Assets
Due to its emphasis on asset growth policy over the past several years the Bank maintained its no. 3 rank in terms of asset size
among other commercial banks with total assets of Baht 1,165,568 million as of December 31, 2007, up Baht 133,972 million
(13.0% yoy). Details of the consolidated balance sheet are as follows:
• Loans (excluding accrued interest receivable) were Baht 868,175 million, up Baht 120,538 million (16.1% yoy) from loan
expansion. • Total Interbank and money market items were Baht 110,860 million, down Baht 23,031 million (17.2% yoy) due to liquidity
management.
• Investment in securities was Baht 128,640 million, up Baht 31,683 million (32.7% yoy). Short-term and long-term
investments increased by Baht 16,573 million (70.7% yoy) and Baht 14,795 million (21.1% yoy) respectively, from debt
instrument investment (mainly in Bank of Thailand bonds), while investment in associated companies increased by Baht
315 million (9.5% yoy). • Properties foreclosed amounted to Baht 16,943 million, down Baht 1,808 million (9.6% yoy), mostly from the Bank’s sales
of foreclosed assets Liabilities
As of December 31, 2007, total liabilities were Baht 1,053,750 million, up Baht 122,714 million (13.2% yoy). Key factors were:
• Deposits were Baht 850,229 million, up Baht 58,148 million (7.3% yoy) mainly from deposit mobilization for loan
expansion. • Interbank and money market items were Baht 52,831 million, up Baht 8,094 million (18.1% yoy) mainly from the Bank’s
liquidity management. • Borrowings were Baht 88,660 million, up Baht 43,698 million (97.2% yoy). Short-term borrowings increased by Baht
47,011 million (287.5% yoy) due to the issuance of short-term debentures with maturity less than 270 days for interest rate
spread management transactions. Meanwhile long-term borrowings dropped by Baht 3,313 million (11.6% yoy). • Payables from purchases of investments stood at Baht 22,900 million, up Baht 1,175 million (5.4% yoy) from increased
business transactions. • Other liabilities were Baht 20,203 million, up Baht 7,512 million (59.2% yoy), mostly from accrued expenses for corporate
income tax and employee bonuses.
Shareholders’ Equity
As of December 31, 2007, shareholders’ equity stood at Baht 111,818 million, up Baht 11,258 million (11.2% yoy). Principal items
were:
• Unappropriated retained earnings were Baht 48,959 million, up Baht 9,886 million from the end of 2006, attributed to a
net profit of Baht 17,356 million in 2007 and dividend payment of Baht 6,798 million (Baht 2 per share) in accordance with
Shareholder’s Meeting Resolution No. 184 . • Unrealized gain on investment was Baht 1,919 million, up Baht 933 million from the end of 2006 following the market
situation.
• Revaluation surplus on land and premises appraisal was Baht 11,144 million, down Baht 160 million from the end of 2006.
Book value per share at the end of 2007 was Baht 32.63 (with 3,399 million shares for ordinary and preferred shares at the end of
December 2007), up from Baht 29.28 at year-end 2006.
Off Balance Sheet: Contingencies As of December 31, 2007, the Bank and subsidiaries had combined contingencies of Baht 2,149,976 million, up Baht 611,328
million (39.7% yoy). Aval to bills and loan guarantees increased 193.2% yoy, liability under unmatured import bills decreased
12.7% yoy, letters of credit increased 35.5% yoy, and other contingencies increased 39.5% from the end of 2006, all of which were
the bank’s normal business which increased in line with the overall economic activities. Additionally, the Bank provided interest
rate and exchange rate risk management services to customers.
2007
(Bt, million)
2006
(Bt, million)
% yoy
11,436
3,900
193.2%
3,691
4,227
-12.7%
15,968
11,781
35.5%
Other contingencies
2,118,881
1,518,740
39.5%
Other guarantees
83,264
74,304
12.1%
993,902
602,332
65.0%
Bought
459,751
242,433
89.6%
Sold
534,151
359,899
48.4%
964,416
772,814
24.8%
Bought
481,658
386,407
24.7%
Sold
482,758
386,407
24.9%
1,869
1,510
23.8%
1,216
755
61.1%
653
755
-13.5%
3,166
572
453.5%
Bought
1,583
-
NA
Sold
1,583
572
176.7%
72,087
67,084
7.5%
177
124
42.7%
2,149,976
1,538,648
39.7%
(Consolidated)
Aval to bills and loan guarantees
Liability under unmatured import bills
Letters of credit
Exchange rate contracts
Interest rate contracts
Equity derivatives
Bought
Sold
Credit derivatives
Amount of unused bank overdraft
Others
Total contingencies
Loans and Deposits SCB marked 2007 as a remarkably successful year for lending growth despite unfavorable economic conditions. The Bank
boosted lending growth by 16%, the highest in the banking industry, as a result of its clear strategy to place more emphasis on
loan expansion, especially SME and hire purchase loans.
In 2007, the Bank continued to focus on SME loans following its organizational restructuring in 2006 by establishing a separate
unit known as the Business Banking Group. The Group’s policy is to focus on large SMEs with proven track records. The Bank
offered a variety of products and services to meet customer needs through a wide distribution network. Furthermore, the Bank
arranged a variety of forums to enhance customer capabilities and create differentiation, such as the “Bai Pho Business Forum”.
Hire purchase was considered a major growth opportunity area by the Bank. After the Bank’s successful tender offer for the
acquisition of Siam Panich Leasing PCL’s securities, the Bank became the major shareholder of the company in 2006. SCB then
fully geared up the hire purchase business with the enhancement of operating processes and risk management systems,
including distribution improvement, to ensure better efficiency. The Bank’s strong determination to become the market leader
in hire purchase loans pushed its hire-purchase lending portfolio up 44% in 2007 while its market rank climbed to no. 3.
Loans Breakdown 2007
Loans Breakdown 2006
35%
39%
26%
Corporate
SME
37%
41%
22%
Retail
Corporate
SME
Retail
As of December 31, 2007, total loans outstanding (consolidated basis) were Baht 868,175 million, up Baht 120,538 million
(16.1% yoy) from Baht 747,637 million at the end of 2006. Good loans expanded by Baht 130,221 million (18.9% yoy), while loans
under the Special Assets Group dropped by Baht 9,684 million (16.5% yoy). The Bank recorded written-off loans totaling of Baht
10,393 million for the year. In addition to the significant expansion of SME loans and hire purchase in line with Bank policy, other loans also expanded
satisfactorily. Business Banking loans (or loans for SMEs) increased by Baht 58,966 million (38.5% yoy). Retail banking loans
increased by Baht 38,519 million (13.7% yoy) from the increase of hire purchasing loans by Baht 22,753 million (43.7% yoy),
housing loans by Baht 12,648 million (6.9% yoy), while other loans rose by Baht 3,118 million (6.9% yoy). Corporate Banking
loans grew Baht 32,736 million (12.8% yoy), jumping significantly in 4Q07 in line with corporate loan demand.
Unit: Million Baht
(Consolidated)
Dec 31, 07
Dec 31, 06
% yoy
Good Bank
819,223
689,002
18.9%
Corporate
287,812
255,076
12.8%
SME
211,930
152,964
38.5%
Retail
319,480
280,961
13.7%
- Housing Loans
196,564
183,916
6.9%
- Hire Purchase
74,848
52,095
43.7%
- Others Loans
48,068
44,950
6.9%
Special Assets Group
48,952
58,636
-16.5%
868,175
747,637
16.1%
Total Loans
Considering loan growth by sector compared to year-end 2006, other loans posted the highest growth at 24.9% (largely hire
purchase, credit card, and personal loans), followed by loans for real estate and construction businesses (23.7%), and
manufacturing and commercial loans (19.6%). Siam Commercial Bank Public Company Limited 81
Unit: Million Baht
(Consolidated)
Dec 31, 07
Dec 31, 06
% yoy
5,476
6,101
-10.2%
338,474
283,076
19.6%
70,937
57,328
23.7%
Utilities and services
110,344
92,764
19.0%
Housing loans
220,299
210,191
4.8%
Others
122,645
98,177
24.9%
868,175
747,637
16.1%
Agriculture and mining
Manufacturing and commercial
Real estate and construction
Total loans
Deposits stood at Baht 850,229 million at the end of December 2007, up Baht 58,148 million (7.3% yoy) from Baht 792,081
million at the end of 2006, as a result of deposit mobilization to finance loan growth. Savings deposits increased by 18.2%,
demand deposits increased by 12.1%, and fixed deposits dropped by 1.2%. As a result, the proportion of savings deposits
increased to 45.2% at the end of 2007, against 41.0% at the end of 2006. Unit: Million Baht
(Consolidated)
Dec 31, 07
Dec 31, 06
% yoy
Demand
38,034
33,922
12.1%
Savings
383,921
324,783
18.2%
Fixed
428,295
433,376
-1.2%
229,666
187,242
22.7%
76,709
108,540
-29.3%
121,899
137,594
-11.4%
850,229
792,081
7.3%
- Less than 6 months
- 6 months and up to 1 year
- 1 year and over
Total Deposits
Deposits Breakdown 2007
Deposits Breakdown 2006
Demand 5%
Fixed 50%
Savings 45%
Demand 4%
Fixed 55%
Savings 41%
Non-performing Loans and Allowance for Doubtful Accounts Non-performing loans As of December 31, 2007, gross NPLs were Baht 54,208 million (6.1% of total loans) as of year-end 2007, which was down Baht
5,135 million from Baht 59,343 million (7.9% of total loans) at the end of 2006. Net NPLs (net from allowance) were Baht 24,869
million (2.9% of total loans), an increase of Baht 832 million from Baht 24,037 million (3.4% yoy) at the end of 2006. Non-performing Loans (NPL)
Gross NPL (LHS)
% NPL (RHS)
100
90
18%
90
80
15%
12%
76
9%
70
64
60
50
6%
60
54
2003
2004
2005
2006
2007
3%
0%
In 2007, the Bank sold 2 lots of NPLs worth over Baht 10 billion to investors in line with the Bank’s policy to hurriedly reduce
NPLs. In 2008, the Bank plans to continue selling NPLs to tap investor demand. NPL bidding is an effective way to reduce NPL
portfolios rapidly and to reach the Bank’s 5% NPL target by the end of 2008.
(Consolidated Statement)
Dec 31, 07
Dec 31, 06
Bt, million
54,208
59,343
% of total loans
6.1%
7.9%
Allowance for doubtful accounts*
Bt, million
46,796
52,399
Allowance for revaluation of debt restructuring
Bt, million
45,723
50,147
Total allowance for doubtful accounts and revaluation of debt restructuring
Bt, million
1,074
2,252
Total Allowance to NPLs
86.3%
88.3%
Non-performing loans (Gross NPLs)
* Excluding Interbank
Allowance for doubtful accounts As of December 31, 2007, allowance for doubtful accounts totaled Baht 46,796 million, down 5,603 million, from Baht 52,399
million at end-2006, a net result from additional provision in line with the Bank’s conservative policy and NPL sales and writeoff. The NPL coverage ratio stood at 86.3%, which was the highest among large commercial banks.
LLR and Coverage Ratio
LLR (LHS)
% LLR/NPL (RHS)
90%
90
75
75
60
64
55
52
47
45
30
85%
80%
15
0
2003
2004
2005
2006
2007
75%
Non-performing loans (Bank-only)
As of December 31, 2007, net non-performing loans (net NPLs) on a bank-only basis were Baht 22,401 million (2.8% of total
loans), down Baht 279 million, from Baht 22,680 million (3.4% of total loans) at the end of 2006. Gross NPLs were Baht 47,460
million (5.7% of total loans), down Baht 5,230 million from Baht 52,690 million (7.5% of total loans) at the end of 2006.
Unit: Million Baht
Dec 31, 07
Bank only
Amount
Classified loans and Allowance for Doubtful Accounts*
Normal
Dec 31, 06
Allowance for
classified loans
Amount
Allowance for
classified loans
748,890
7,823
634,907
7,325
10,044
1,115
9,354
175
Substandard
6,543
2,978
5,852
3,094
Doubtful
7,615
3,565
10,698
3,129
Special Mention
Doubtful Loss
Total allowance per requirement
Specific and general allowance
Total * Excluding Interbank
33,489
14,016
36,558
18,917
806,581
29,497
697,369
32,640
11,600 12,897
41,097 45,537
Unit: Million Baht
Dec 31, 07
Chatuchak Asset Management Co., Ltd
Amount
Classified loans and Allowance for Doubtful*
Accounts*
Dec 31, 06
Allowance for
Amount
Allowance for
classified loans Normal
20
-
39
-
-
-
1
-
57
25
67
67
111
42
49
47
4,454
3,043
4,984
3,672
4,642
3,110
5,140
3,786
(2,610)
(2,610)
(3,063)
(3,063)
Special Mention
Substandard
Doubtful
Doubtful Loss
Total
Less Allowance for doubtful account transferred for
loans purchased
classified loans
Allowance per requirement
500
723
48
53
Total
2,032
548
2,077
776
* Excluding Interbank
Unit: Million Baht
2007
Siam Commercial Leasing PCL
Normal
Loan and
Accrued interest
2006
Allowance for
doubtful accounts
Loan and
Accrued interest
Allowance for
doubtful accounts
71,958
110
50,582
32
4,697
187
3,349
8
Substandard
852
144
864
130
Doubtful
363
196
332
197
Special Mention
Doubtful Loss
Total
646
525
792
793
78,516
1,162
55,919
1,160
Troubled Debt Restructuring
The Bank has implemented various methods of debt restructuring, including transfers of assets and equity securities, changes in
repayment conditions, and combinations thereof. In 2007, loans amounting to Baht 7,279 million were restructured. As of December 31, 2007, outstanding loans to restructured
debtors (inclusive of accrued interest) in the consolidated financial statements were Baht 45,005 million, down 17.3% from Baht
54,425 million at the end of 2006. For the Bank’s financial statements, outstanding loans to restructured debtors were Baht
44,970 million, down 17.0% from Baht 54,173 million at the end of 2006. The Bank recognized interest income from debt restructuring in the amount of Baht 2,772 million, representing an annualized
yield of 5.6%, up from 5.0% in 2006.
(Consolidated)
2007
2006
Loans to restructured debtors Bt, million
45,005
54,425
Troubled debt restructuring in the period
Bt, million
7,279
14,257
Interest income recognized in the Statement of Income
Bt, million
2,772
3,011
% of average outstanding
5.6%
5.0%
Yield from restructured debts (annualized)
Properties Foreclosed
Properties foreclosed at end-2007 stood at Baht 16,943 million (more than 5,500 properties), down Baht 1,808 million or 9.6%
from Baht 18,751 million at end-2006. The decline was mainly due to NPA sales for which the Bank sold around 1,363 items of
foreclosed assets worth nearly Baht 4,000 million in line with the Bank’s target.
Statutory Capital (Bank only)
The Bank’s capital funds (Tier 1 and Tier 2) as of December 31, 2007 were Baht 103,637 million or 13.1% of total risk weighted
assets (RWA), representing Tier-1 capital of Baht 83,708 million or 10.6%. The Bank of Thailand requires minimum total capital
funds of 8.5%, with 4.25% being Tier 1 capital.
Capital Adequacy Ratio
18%
12%
4.0%
3.2%
3.0%
11.4%
11.9%
11.4%
2004
2005
2006
2.5%
5.8%
6%
10.6%
7.1%
0%
2003
Tier 1
(Bank only)
Tier 2
Statutory Capital
2007
Dec 31, 07
Dec 31, 06
Tier-1 Capital
Bt, million
83,708
78,916
% of RWA
10.6%
11.4%
Tier-2 Capital
Bt, million
19,929
20,427
% of RWA
2.5%
3.0%
Total Capital Bt, million
103,637
99,343
% of RWA
13.1%
14.4%
Risk Weighted Assets
Bt, million
790,211
%yoy
6.1%
-2.4%
4.3%
689,850 With its existing capital base, the Bank is well-capitalized to accommodate the Bank of Thailand’s implementation of Basel 2 by
the end of 2008 and consolidated supervision regulation that will be implemented in due course. Liquidity
On a consolidated basis, the Bank’s loan growth has outpaced deposit growth in 2007. Consequently, the Bank’s loan-to-deposit
ratio increased from 94.4% at the end of 2006 to 102.1% at the end of December 2007.
On a Bank-only basis, the ratio was 94.7% in 2007, up from 88.1% yoy. (Consolidated)
Dec 31, 07
Loans to deposits ratio (Consolidated)
Loans to deposits ratio (Bank Only)
Dec 31, 06
102.1%
94.4%
94.7%
88.1%
Note that the loans to deposits ratio when including borrowing for the consolidated basis was 92.5%.
The Bank’s policy on liquidity management is to source funds at acceptable cost. The Bank has an Assets and Liabilities
Management Committee to formulate policies on liquidity management. According to Bank of Thailand requirements on liquid
assets, with which the Bank is in conformity, commercial banks must maintain liquid assets equal to at least 6% of total deposits.
At least 0.8% must be in deposits with the Bank of Thailand, and 0.2% as cash at the Cash Center, with the total no less than 1.0%.
Interbank deposits must not exceed 2.5%, and the rest must be clean securities.
For liquidity management of subsidiaries, the Bank has a policy of controlling the Group’s liquidity within an appropriate level by
means of the imposition of certain rules and regulations, especially for companies with lending and asset management activities.
Sources and Uses of Funds
In 2007, deposits accounted for 72.9% of SCB funds. Other sources of funds included 9.6% from shareholders’ equity, 7.6% from
issuance of debt instruments, and 4.5% from Interbank borrowings. Of that total, 74.7% were used in net loans and accrued
interest, while another 9.5% were Interbank and money market loans, and 11.0% were applied to net investments on securities.
Classification of Loans and Deposits by Maturity
(Consolidated)
Dec 31, 07
Amount
(Bt, million)
Loans
Dec 31, 06
Amount
(Bt, million)
% of Total
% yoy
% of Total
- Less than 1 year
370,970
42.7%
313,091
41.9%
18.5%
- Over 1 year
497,205
57.3%
434,546
58.1%
14.4%
Total loans
868,175
100.0%
747,637
100.0%
16.1%
Deposits
- Less than 1 year
837,448
98.5%
773,075
97.6%
8.3%
- Over 1 year
12,781
1.5%
19,006
2.4%
-32.8%
Total Deposits
850,229
100.0%
792,081
100.0%
7.3%
As shown in the above table, though deposits with more than 1 year maturity were less than loans with more than 1 year
maturity, this is a normal situation for Thai commercial banks since depositors normally roll-over their deposits when they fall
due. The problem of maturity mismatch is therefore viewed as an acceptable business risk.
Market Positions
Mortgage Loans Outstanding
• No. 1 in Mortgage loans
Mortgage Loans : SCB continued to be Number 1 in
mortgage lending among other commercial banks in
Thailand, with the largest market share of 30%. This
satisfactory result was achieved through strengthening
relationships with key property developers and better
leveraging the direct sales work force to pitch this product
on-site at major housing projects throughout Thailand. Billion Baht
240
200
163
160
120
197
184
131
97
80
40
0
2003
2004
2005
2006
2007
First Year Premiums
• No. 1 in Bancassurance
Bancassurance : In 2007 SCB recorded first year premium
growth of Baht 5.5 billion up 28% yoy from Baht 4.3 billion,
as a result of strong cross-sales efforts and enhanced
distribution procedures.
Billion Baht
6
4.9
5
4.0
4
5.5
4.3
3
2
1.4
1
0
2003
2004
2005
2006
2007
Total Card Spending
• No. 1 in Credit Cards
Credit Cards : SCB continued to build on its credit card
success story. The Bank maintained its Number 1 position in
both card numbers and card spending among commercial
banks. The 15% growth of card spending outpaced industry
growth of 14%. Outstanding credit lending stood at Bt.
20,164 million at year-end 2007, rising by 8% yoy.
Billion Baht
100
80
80
57
60
40
91
43
26
20
0
2003
2004
2005
2006
2007
* Card spending excluded visitor card spending
• No. 1 in Asset Management
Mutual Funds : In 2007 SCB recorded impressive growth of
Bt. 301,494 million or 77% yoy in its mutual fund portfolio,
compared to market growth of 37%. SCB also maintained its
Number 1 position in the market with a market share of 21%.
This remarkable success has been realized through a strong
cross-sales focus at branch networks and customer-centric
product offerings.
Mutual Fund AUM
Billion Baht
350
300
250
200
150
100
50
0
AUM (MB)
Market Share (%)
21.1%
10%
14.8%
2003
5%
8.9%
2004
20%
15%
16.4%
4.9%
25%
2005
2006
2007
0%
Source : Association of Invesment Management Companies; Excluding
Resolving Financial Institution Problem Funds and Country Funds
Customer and Employee Engagement
Beginning in 2003, SCB commissioned the Gallup Organization to independently survey customer engagement levels and
benchmark the results against the Gallup global database. The results showed a substantive and sustained improvement in
customer engagement. SCB had already achieved a World-Class standard in last quarter of 2006. 81% of our customers are in the
“engaged” and “fully engaged” categories. At 2007 year-end, almost 600 branches, or over 60% of the total number of branches,
have attained World-Class service standards
SCB also believed that employee engagement and capabilities are important to the Bank’s success. The Bank therefore
commissioned the Gallup Organization to independently survey employee engagement and the results show an improving
trend.
Baseline 2003
12%
26%
25%
37%
CE11 = 3.91 31st Percentile
End 2004
End 2005
15%
10%
33%
20%
32%
CE11 = 4.16 56th Percentile
CE11 = 4.35
75th Percentile
5%
14%
17%
50%
28%
30%
Fully Engaged Customers Engaged Customers
End 2007
5%
35%
25%
End 2006
27%
CE11 = 4.56
92nd Percentile
Unengaged Customers
54%
CE11 = 4.60
93rd Percentile
Actively Disengaged Customers
* The data is primarily from Retail Bank which includes the substantial bulk of our customers.
** World class is defined as the 90 th percentile or higher on Gallup’s global database
Voice of Employees
5 point scale for measuring Employee Engagement
5.0
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
Participation Rate
14th
Percentile*
47th
Percentile*
89th Percentile of 87th
Percentile* Gallup’s Global Database
2004
2005
2006
2007
77%
88%
96%
97%
*Word class is defined as the 90th percentile or higher on Gallup’s global database
Credit Ratings
The Bank’s credit rating by Moody’s Investors Service, Standard & Poor’s, and Fitch Ratings as of December 31, 2007 are shown
below. Credit Ratings of Siam Commercial Bank PCL
December 31, 07
Moody’s Investors Service
Bank Financial Strength Rating (BFSR)
D+
Outlook
Positive
Deposit - Long Term
- Short Term
- Outlook
Baa1
P-2
Stable
Senior Debt
A3
Outlook
Positive
Standard & Poor’s
Bank Fundamental Strength Rating (BFSR)
C
Short Term Debt
A-2
Subordinated
BBB-
Senior Unsecured
BBB
Certificate of Deposit
BBB/A-2
Outlook
Stable
Fitch Ratings
International Ratings
Individual
C
Support
2
Long Term Issuer Default Rating
BBB+
Short Term Debt
F2
Subordinated Debt
BBB
Outlook
Stable
National Ratings
Senior Long Term
AA (tha)
Short Term
F1+ (tha)
Outlook
Stable
Credit Ratings of Siam Commercial Leasing PCL
December 31, 07
Fitch Ratings
National Ratings
Long Term
A (tha)
Short Term
F1 (tha)
Outlook
Stable
TRIS Ratings
Company Rating
Outlook
A+
Stable
Comparative Key Financial Statistics
(Consolidated Basis)
Financial Status
As of December 31, Unit: Million Baht
2007
2006
2005
2004
2003
1,165,568
1,031,596
814,587
746,894
746,838
868,175
747,637
612,062
559,923
512,391
- Allowance for Doubtful Accounts
(46,796)
(52,399)
(54,726)
(64,066)
(74,795)
- Investment-net
128,640
96,957
107,197
126,330
143,948
16,943
18,751
17,647
12,723
11,522
1,053,750
931,036
716,099
681,795
670,179
850,229
792,081
625,335
630,161
612,871
88,660
44,962
27,873
16,601
24,435
111,818
100,560
98,488
83,099
76,659
Total Assets
- Loans
- Properties Foreclosed
Total Liabilities
- Deposits
- Borrowings
Total Shareholders’ Equity
Financial Results
For the year ended December 31,
Unit: Million Baht
2007
2006
2005
2004
2003
Interest and Dividend Income
60,446
52,703
32,073
27,278
27,999
Less Interest Expenses
21,268
20,134
6,584
6,052
8,460
39,177
32,569
25,489
21,226
19,539
Non-interest Income
22,802
19,695
17,412
21,823
11,437
Total Income
61,979
52,264
42,901
43,048
30,975
Less Non-Interest Expense
33,029
27,560
21,801
19,014
15,774
Income Before Bad Debts and Doubtful Accounts
28,950
24,704
21,100
24,034
15,202
4,036
7,001
1,233
5,130
2,455
7,558
4,417
985
416
287
17,356
13,286
18,883
18,489
12,460
Less Bad Debt and Doubtful Account
Income Tax and Minority Interest
Net Income Siam Commercial Bank Public Company Limited 91
Key Financial Ratios (Consolidated Basis)
Unit: Percent
2007
2006
2005
2004
2003
Return on Assets (ROA)
1.6
1.4
2.4
2.4
1.8
Return on Equity (ROE)
16.5
13.5
21.0
23.5
19.5
3.8
3.6
3.3
2.9
2.7
36.8
37.7
40.6
50.7
36.9
Profitability Ratio
Net Interest Margin (NIM)
Non Interest Income to Total Income
Efficiency Ratio
53.3
52.7
50.8
44.2
50.9
3.0
3.0
2.8
2.5
2.2
9.6
9.7
12.1
10.9
10.3
102.1
94.4
97.9
88.9
83.6
Net Loans to Deposits
96.6
87.8
89.1
78.7
71.4
Debt to Equity (Times)
9.4
9.3
7.3
8.2
8.7
Total Capital to Risk Assets
13.1
14.4
15.1
15.4
12.9
Tier 1 Capital to Risk Assets
10.6
11.4
11.9
11.4
7.1
Tier 2 Capital to Risk Assets
2.5
3.0
3.2
4.0
5.8
Non-performing Loans to Total Loans (bank only)
5.7
7.5
9.3
13.1
17.5
Non-performing Loans to Total Loans (consolidated)
6.1
7.9
-
-
-
Total Allowance to Non-performing Loans (bank only)
88.9
90.7
86.7
83.0
80.2
Total Allowance to Non-performing Loans (consolidated)
86.3
88.3
-
-
-
Total Allowance to Total Loans
5.4
7.0
8.9
11.4
14.6
Accrued Interest to Total Loans
0.3
0.3
0.3
0.2
0.3
2007
2006
2005
2004
2003
5.11
3.91
5.56
5.53
3.94
Book Value per Share (Baht)
32.63
29.28
28.74
24.52
23.88
Dividend per Share** (Baht)
2.00
2.00
3.00
2.00
1.40
Market Capitalization (Billion Baht)
291.0
197.9
177.6
163.9
171.3
Number of Share (Million shares)
3,399
3,399
3,399
3,345
3,163
Cost Income Ratio
Cost to Assets
Financial Ratio
Equity to Assets
Loans to Deposits
Capital Adequacy Ratio
Asset Quality Ratio Share Information*
Earnings per Share - EPS (Baht)
Remark:
* The Bank’s share includes ordinary shares and preferred shares. ** Dividend per share in 2007 as proposed to the Annual General Meeting of Shareholders in April 2008.
Financial Statements and Notes
Report of The Independent Certified Public Accountants
Report of The Board of Directors’ Responsibilities for Financial Statements
Balance Sheets
As At December 31, 2007 And 2006
Consolidated
Notes
Unit : Baht
Separate
2007
2006
2007
2006
“Restated”
ASSETS
21,460,446,867
19,730,825,724
21,234,625,540
19,531,431,921
4.1
Interest bearing
25,480,221,337
4,831,187,799
23,806,766,729
3,243,515,427
Non-interest bearing
5,993,291,970
6,176,544,116
5,831,638,388
5,997,665,263
Interest bearing
74,789,050,394
121,236,881,869
72,100,679,816
118,529,124,951
4,597,139,630
1,645,750,378
3,644,772,954
1,167,127,717
110,859,703,331
133,890,364,162
105,383,857,887
128,937,433,358
SECURITIES PURCHASED UNDER RESALE
AGREEMENTS 4.2
-
INVESTMENTS 4.3
CASH
INTERBANK AND MONEY MARKET ITEMS Domestic items
Foreign items
Total interbank and money market items
9,300,000,000
-
9,300,000,000
Short-term investments - net
40,022,421,046
23,449,440,324
38,345,689,627
18,017,953,209
Long-term investments - net
84,984,203,975
70,189,583,480
82,161,437,336
67,439,460,237
Investments in subsidiaries and associated
companies - net
3,633,329,127
3,318,023,697
25,959,772,490
21,694,326,125
Total investments - net
128,639,954,148
96,957,047,501
146,466,899,453
107,151,739,571
868,174,897,344
747,637,162,524
804,447,934,172
694,933,125,533
LOANS AND ACCRUED INTEREST RECEIVABLES
Loans 4.4
Accrued interest receivables
2,171,158,090
2,451,357,032
2,133,123,346
2,436,127,363
Total loans and accrued interest receivables
870,346,055,434
750,088,519,556
806,581,057,518
697,369,252,896
4.4.5, 4.5
(45,722,894,734)
(50,147,435,607)
(41,096,964,654)
(45,537,541,124)
4.6
(1,073,582,036)
(2,251,916,271)
(1,073,582,036)
(2,251,916,271)
Less Allowance for doubtful accounts Less Revaluation allowance for debt restructured
Net loans and accrued interest receivables
PROPERTIES FORECLOSED - NET CUSTOMERS’ LIABILITY UNDER ACCEPTANCES
823,549,578,664
697,689,167,678
764,410,510,828
649,579,795,501
4.8
16,943,138,234
18,751,168,412
16,349,252,150
18,098,594,100
322,083,681
384,685,071
322,083,681
384,685,071
PREMISES AND EQUIPMENT - NET 4.9
26,463,277,388
26,870,129,860
25,270,438,806
25,589,545,190
ASSETS PENDING TRANSFER 4.10
4,733,528,177
1,727,579,501
4,056,457,385
972,548,249
RECEIVABLES FROM SELLING OF INVESTMENTS
17,754,210,951
11,797,462,885
17,706,519,848
11,797,462,885
RECEIVABLES FROM DISPOSAL OF ASSETS
1,906,823,090
2,244,555,047
1,903,873,091
2,232,765,047
4.11
12,934,911,189
12,252,709,361
9,719,396,230
9,048,803,875
1,165,567,655,720 1,031,595,695,202 1,112,823,914,899
982,624,804,768
OTHER ASSETS - NET TOTAL ASSETS
The notes to the financial statements form an integral part of these statements
Balance Sheets (Continued)
The Siam Commercial Bank Public Company Limited As At December 31, 2007 And 2006
Unit : Baht
Notes
2007
2006
2007
2006
“Restated”
LIABILITIES AND SHAREHOLDERS’ EQUITY
DEPOSITS Consolidated
Separate
4.12
Deposits in Baht
832,947,731,990
777,138,595,456
836,522,466,393
777,960,201,983
Deposits in foreign currencies
17,281,531,945
14,942,763,956
12,811,432,584
11,266,496,035
Total deposits
850,229,263,935
792,081,359,412
849,333,898,977
789,226,698,018
4.13
Interest bearing
48,730,660,021
41,850,041,693
27,533,816,003
20,571,404,826
3,116,689,541
1,993,531,069
3,152,212,800
2,158,518,824
Interest bearing
473,845,322
140,193,036
562,758,645
140,193,036
509,484,632
753,056,306
546,502,522
753,056,306
52,830,679,516
44,736,822,104
31,795,289,970
23,623,172,992
4,158,640,237
3,396,421,237
4,156,479,550
3,356,559,890
INTERBANK AND MONEY MARKET ITEMS Domestic items
Foreign items
Total interbank and money market items
LIABILITIES PAYABLE ON DEMAND
BORROWINGS 4.14
Short-term borrowings
63,365,076,041
16,354,228,992
47,096,483,093
6,359,134,122
Long-term borrowings
25,294,644,699
28,607,325,937
20,794,644,699
21,374,001,557
Total borrowings
88,659,720,740
44,961,554,929
67,891,127,792
27,733,135,679
BANK’S LIABILITIES UNDER ACCEPTANCES
322,083,681
384,685,071
322,083,681
384,685,071
INTEREST PAYABLE ON DEPOSITS
3,390,364,466
5,205,387,319
3,388,105,266
5,204,097,744
LIABILITIES PENDING TRANSFER
4.15
11,055,601,456
5,853,212,623
11,039,775,138
5,783,274,258
22,900,452,392
21,725,196,812
22,900,452,392
21,725,196,812
4.16
20,203,254,544
12,691,376,636
13,481,609,225
7,740,566,775
931,036,016,143 1,004,308,821,991
884,777,387,239
PAYABLES FROM PURCHASES OF INVESTMENTS
OTHER LIABILITIES TOTAL LIABILITIES
1,053,750,060,967
The Siam Commercial Bank Public Company Limited As At December 31, 2007 And 2006
Unit : Baht
Consolidated
Separate
Notes
2007
2006
2007
2006
“Restated”
LIABILITIES AND SHAREHOLDERS’ EQUITY SHAREHOLDERS’ EQUITY
SHARE CAPITAL 5,083,584,607 preferred shares of Baht 10 each
(December 31, 2006 : 5,096,546,762 shares of
50,835,846,070
50,965,467,620
50,835,846,070
50,965,467,620
(CONTINUED)
Authorized share capital
Baht 10 each)
4.17
1,916,415,393 ordinary shares of Baht 10 each
19,164,153,930
19,034,532,380
19,164,153,930
19,034,532,380
1,499,407,175 preferred shares of Baht 10 each
14,994,071,750
15,055,923,210
14,994,071,750
15,055,923,210
Baht 10 each)
Issued and fully paid-up share capital
Baht 10 each)
4.17
1,899,785,023 ordinary shares of Baht 10 each
18,997,850,230
18,935,998,770
18,997,850,230
18,935,998,770
PREMIUM ON PREFERRED SHARES
5,863,358,599
5,887,545,311
5,863,358,599
5,887,545,311
PREMIUM ON ORDINARY SHARES 5,260,832,027
5,236,645,315
5,260,832,027
5,236,645,315
REVALUATION SURPLUS ON LAND APPRAISAL
5,783,328,455
5,783,328,455
5,783,328,455
5,783,328,455
REVALUATION SURPLUS ON PREMISES APPRAISAL
5,360,228,397
5,520,575,837
5,360,228,397
5,520,540,183
REVALUATION SURPLUS ON INVESTMENTS
1,919,394,028
986,763,453
1,597,704,435
768,505,004
FOREIGN CURRENCY TRANSLATION
(283,629,796)
(199,594,686)
-
-
UNREALIZED GAIN FROM CAPITAL SURPLUS 60,454,357
75,980,818
-
-
Baht 10 each)
ON INVESTMENT IN SUBSIDIARY
As At December 31, 2007 And 2006
Unit : Baht
Consolidated
2007
Notes
Separate
2006
2007
2006
“Restated”
LIABILITIES AND SHAREHOLDERS’ EQUITY
(CONTINUED)
RETAINED EARNINGS
Appropriated
4.18
Legal reserve
Unappropriated
3,987,724,794
3,155,877,124
3,987,724,794
3,155,877,124
48,959,072,759
39,073,129,495
46,669,994,221
37,503,054,157
110,902,685,600
99,512,173,102
108,515,092,908
97,847,417,529
914,909,153
1,047,505,957
-
111,817,594,753
100,559,679,059
TOTAL SHAREHOLDERS’ EQUITY OF
THE BANK
MINORITY INTEREST
TOTAL SHAREHOLDERS’ EQUITY
-
108,515,092,908
97,847,417,529
1,031,595,695,202 1,112,823,914,899
982,624,804,768
TOTAL LIABILITIES AND SHAREHOLDERS’
EQUITY
1,165,567,655,720
OFF-BALANCE SHEET ITEMS - CONTINGENCIES
4.20
AVALS TO BILLS AND GUARANTEES OF LOANS
11,435,717,990
3,900,314,113
11,435,717,990
3,900,314,113
LIABILITY UNDER UNMATURED IMPORT BILLS
3,691,231,550
4,226,600,873
3,691,231,550
4,226,600,873
15,968,353,932
11,781,060,750
15,782,470,711
11,617,548,833
LETTER OF CREDIT
OTHER CONTINGENCIES
2,118,881,065,768
1,518,740,192,450 2,118,479,353,115 1,518,354,138,213
Th e notes to the financial statements form an integral part of these statements
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....................
(Mrs. Kannikar Chalitaporn)
President
................................................ .........
(Mr. Vichit Suraphongchai)
Statements Of Income
For The Years Ended December 31, 2007 And 2006
Notes
INTEREST AND DIVIDEND INCOME
5.1
Unit : Baht
Consolidated
Separate
2007
2006
2007
2006
“Restated”
Interest on loans
44,103,458,113
38,466,887,729
44,398,652,151
38,584,254,006
Interest on interbank and money market items
6,738,144,459
6,988,478,359
6,536,664,912
6,712,973,391
Hire purchase and financial lease income
4,625,138,885
3,120,178,030
Investments
4,978,843,837
4,127,631,198
5,650,261,757
5,321,158,365
60,445,585,294
52,703,175,316
56,585,578,820
50,618,385,762
INTEREST EXPENSES
Interest on deposits
16,850,401,639
16,627,765,840
16,824,728,006
16,606,294,867
Interest on interbank and money market items
1,872,473,425
952,662,096
706,091,060
364,677,539
Interest on short-term borrowings
1,304,689,054
1,280,990,963
854,710,763
862,642,554
Interest on long-term borrowings
1,240,741,398
1,272,337,301
1,042,348,946
890,575,720
Total Interest Expenses
21,268,305,516
20,133,756,200
19,427,878,775
18,724,190,680
39,177,279,778
32,569,419,116
37,157,700,045
31,894,195,082
4.5, 5.2
3,570,377,466
4,374,096,917
3,134,620,000
3,973,142,942
465,380,000
2,626,857,058
465,380,000
2,626,857,058
35,141,522,312
25,568,465,141
33,557,700,045
25,294,195,082
NON-INTEREST INCOME
Gain on investments
5.4
104,097,358
713,860,142
335,161,224
634,834,853
452,025,503
587,420,956
Fees and service income
Acceptances, avals and guarantees
1,043,229,942
939,560,268
1,043,367,410
939,951,136
Others
14,331,289,968
12,400,294,538
12,395,084,368
10,181,467,755
Gain on exchanges
2,618,700,558
2,253,590,966
2,615,025,941
2,233,134,341
Underwriting income
2,278,545,042
1,237,764,888
Other income
1,973,901,723
1,562,238,689
701,126,292
602,221,060
22,801,790,094
19,694,730,447
17,089,765,235
14,591,609,145
Total Interest and Dividend Income
BAD DEBT AND DOUBTFUL ACCOUNTS
LOSS ON DEBT RESTRUCTURING Net Interest and Dividend Income after Bad Debt and
Doubtful Accounts and Loss on Debt Restructuring
Total Non-Interest Income
4.4.9, 5.3
-
-
-
-
-
-
Statements Of Income (Continued)
Unit : Baht
Consolidated
Notes
2007
Separate
2006
2007
2006
“Restated”
NON-INTEREST EXPENSES
Personnel expenses
11,135,122,809
9,652,026,547
9,378,279,572
7,880,719,317
Premises and equipment expenses
7,313,307,287
6,240,929,321
6,356,551,135
5,365,034,268
Taxes and duties
2,316,778,088
1,892,805,410
2,221,719,025
1,815,265,783
Fees and service expenses
2,637,824,368
2,416,193,390
2,841,839,040
2,597,577,853
84,036,715
115,306,715
66,972,801
97,348,283
3,179,517,285
2,614,601,543
3,179,517,285
2,614,601,543
48,386,581
713,730,733
25,346,581
713,730,733
Underwriting expenses
1,613,232,812
525,850,428
Other expenses
4,700,795,431
3,388,431,762
3,248,171,358
2,544,355,137
33,029,001,376
27,559,875,849
27,318,396,797
23,628,632,917
24,914,311,030
17,703,319,739
23,329,068,483
16,257,171,310
7,433,573,694
4,134,483,733
6,692,115,081
3,497,000,000
17,480,737,336
13,568,836,006
16,636,953,402
12,760,171,310
124,780,734
282,400,901
-
-
17,355,956,602
13,286,435,105
16,636,953,402
12,760,171,310
Directors’ remuneration
5.5
Contributions to the Financial Institutions Development Fund
Loss from adjustment of selling price of loans sold to TAMC
Total Non-Interest Expenses
INCOME BEFORE INCOME TAX
LESS INCOME TAX
INCOME BEFORE MINORITY INTEREST IN SUBSIDIARIES
-
-
LESS MINORITY INTEREST IN NET INCOME OF
SUBSIDIARIES
NET INCOME
BASIC EARNINGS PER SHARE
5.6
7.56
4.64
7.19
4.36
DILUTED EARNINGS PER SHARE
5.6
5.11
3.91
4.89
3.75
Th e notes to the financial statements form an integral part of these statements
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....................
(Mrs. Kannikar Chalitaporn)
President
................................................ .........
(Mr. Vichit Suraphongchai)
-
14,994,071,750
Depreciation of revaluation surplus on premises Minority interest decrease Balance as at December 31, 2007 The notes to the financial statements form an integral part of these statements
-
Conversion of preferred shares to ordinary shares (61,851,460)
-
4.19
Dividend paid -
Appropriation of retained earnings to legal reserve Balance including items unrealized in the statement of income
-
-
in subsidiary decrease
15,055,923,210
Unrealized gain resulting from capital surplus on investment -
Decrease in foreign currency translation -
Net income -
Revaluation surplus on investments increase Revaluation surplus on land and premises appraisal decrease Balance as at December 31, 2006 15,055,923,210
Minority interest increase -
15,055,923,210
Depreciation of revaluation surplus on premises Balance as at December 31, 2006 -
Conversion of preferred shares to ordinary shares (1,009,276,900)
-
4.19
Dividend paid -
Balance including items unrealized in the statement of income
Appropriation of retained earnings to legal reserve -
in subsidiary increase
-
Unrealized gain resulting from capital surplus on investment 16,065,200,110
-
Decrease in foreign currency translation -
Revaluation surplus on investments decrease -
Revaluation surplus on land and premises appraisal decrease Net income 16,065,200,110
Notes
Revaluation 18,997,850,230
-
-
61,851,460
-
-
-
18,935,998,770
-
-
-
-
18,935,998,770
18,935,998,770
-
-
1,009,276,900
-
-
-
17,926,721,870
-
-
-
-
17,926,721,870
5,863,358,599
-
-
(24,186,712)
-
-
-
5,887,545,311
-
-
-
-
5,887,545,311
5,887,545,311
-
-
(394,672,807)
-
-
-
6,282,218,118
-
-
-
-
6,282,218,118
5,260,832,027
-
-
24,186,712
-
-
-
5,236,645,315
-
-
-
-
5,236,645,315
5,236,645,315
-
-
394,672,807
-
-
-
4,841,972,508
-
-
-
-
4,841,972,508
5,783,328,455
-
-
-
-
-
-
5,783,328,455
-
-
-
-
5,783,328,455
5,783,328,455
-
-
-
-
-
-
5,783,328,455
-
-
-
(6,121,504)
5,789,449,959
paid-up share capital
Premium on
surplus on
Preferred shares Ordinary shares Preferred shares Ordinary shares land appraisal
Issued and fully Balance as at December 31, 2005 The Siam Commercial Bank Public Company Limited
5,360,228,397
-
-
-
-
-
-
5,360,228,397
-
-
-
(160,347,440)
5,520,575,837
5,520,575,837
-
-
-
-
-
-
5,520,575,837
-
-
-
(142,170,321)
1,919,394,028
-
-
-
-
-
-
1,919,394,028
-
-
932,630,575
-
986,763,453
986,763,453
-
-
-
-
-
-
986,763,453
-
-
(1,200,726,677)
-
2,187,490,130
investment
premises appraisal
5,662,746,158
surplus on
Consolidated
Revaluation
surplus on
Revaluation Statements Of Changes In Shareholders’ Equity Foreign
(283,629,796)
-
-
-
-
-
-
(283,629,796)
-
(84,035,110)
-
-
(199,594,686)
(199,594,686)
-
-
-
-
-
-
(199,594,686)
-
(164,763,932)
-
-
(34,830,754)
translation
currency
60,454,357
-
-
-
-
-
-
60,454,357
(15,526,461)
-
-
-
75,980,818
75,980,818
-
-
-
-
-
-
75,980,818
62,927,300
-
-
-
13,053,518
subsidiary
on investment in
capital surplus
resulting from
Unrealized gain
3,987,724,794
-
-
-
-
831,847,670
-
3,155,877,124
-
-
-
-
3,155,877,124
3,155,877,124
-
-
-
-
664,321,755
-
2,491,555,369
-
-
-
-
2,491,555,369
Legal reserve
48,959,072,759
-
160,311,786
-
(6,798,477,454)
(831,847,670)
17,355,956,602
39,073,129,495
-
-
-
-
39,073,129,495
39,073,129,495
-
178,706,472
-
(10,197,779,087)
(664,321,755)
13,286,435,105
36,470,088,760
-
-
-
-
36,470,088,760
Retained Earnings
Appropriated Unappropriated
914,909,153
(132,596,804)
-
-
-
-
-
1,047,505,957
-
-
-
-
1,047,505,957
1,047,505,957
255,471,797
-
-
-
-
-
792,034,160
-
-
-
-
792,034,160
interest
Minority
111,817,594,753
(132,596,804)
160,311,786
-
(6,798,477,454)
-
17,355,956,602
101,232,400,623
(15,526,461)
(84,035,110)
932,630,575
(160,347,440)
100,559,679,059
100,559,679,059
255,471,797
178,706,472
-
(10,197,779,087)
-
13,286,435,105
97,036,844,772
62,927,300
(164,763,932)
(1,200,726,677)
(148,291,825)
98,487,699,906
Total
Unit : Baht
-
3.1.4
Adjustment :
Cumulative effect of change in accounting policy for investment
-
-
16,065,200,110
-
-
-
4.19
Revaluation surplus on investments decrease Decrease in foreign currency translation Net income Appropriation of retained earnings to legal reserve Balance as at December 31, 2006- as previously reported
Adjustment :
Cumulative effect of change in accounting policy for investment
15,055,923,210
-
-
-
4.19
Net income Appropriation of retained earnings to legal reserve Balance as at December 31, 2007 The notes to the financial statements form an integral part of these statements
14,994,071,750
Depreciation of revaluation surplus on premises -
Conversion of preferred shares to ordinary shares Dividend paid (61,851,460)
-
Revaluation surplus on investments increase Balance including items unrealized in the statement of income -
Revaluation surplus on land and premises appraisal decrease -
15,055,923,210
Balance as at December 31, 2006- as restated
3.1.4
15,055,923,210
in subsidiary and associated companies
Balance as at December 31, 2006 15,055,923,210
Depreciation of revaluation surplus on premises -
Conversion of preferred shares to ordinary shares Dividend paid (1,009,276,900)
-
Revaluation surplus on land and premises appraisal decrease Balance including items unrealized in the statement of income
16,065,200,110
Balance as at December 31, 2005- as restated
in subsidiary and associated companies
Balance as at December 31, 2005- as previously reported
16,065,200,110
Notes
Issued and fully -
18,997,850,230
-
61,851,460
-
-
-
18,935,998,770
-
-
18,935,998,770
18,935,998,770
18,935,998,770
-
1,009,276,900
-
-
-
17,926,721,870
-
-
-
17,926,721,870
-
17,926,721,870
-
5,863,358,599
-
(24,186,712)
-
-
-
5,887,545,311
-
-
5,887,545,311
5,887,545,311
5,887,545,311
-
(394,672,807)
-
-
-
6,282,218,118
-
-
-
6,282,218,118
-
6,282,218,118
-
5,260,832,027
-
24,186,712
-
-
-
5,236,645,315
-
-
5,236,645,315
5,236,645,315
5,236,645,315
-
394,672,807
-
-
-
4,841,972,508
-
-
-
4,841,972,508
-
4,841,972,508
paid-up share capital
Premium on
Preferred shares Ordinary shares Preferred shares Ordinary shares
“Restated”
-
5,783,328,455
-
-
-
-
-
5,783,328,455
-
-
5,783,328,455
5,783,328,455
5,783,328,455
-
-
-
-
-
5,783,328,455
-
-
(6,121,504)
5,789,449,959
-
5,360,228,397
-
-
-
-
-
5,360,228,397
-
(160,311,786)
5,520,540,183
(35,654)
5,520,575,837
5,520,540,183
-
-
-
-
-
5,520,540,183
-
-
(142,027,706)
5,662,567,889
(178,269)
5,662,746,158
1,597,704,435
-
-
-
-
-
1,597,704,435
829,199,431
-
768,505,004
(218,258,449)
986,763,453
768,505,004
-
-
-
-
-
768,505,004
-
(950,780,178)
-
1,719,285,182
(468,204,948)
2,187,490,130
5,789,449,959
investment
premises appraisal
land appraisal
surplus on
surplus on
surplus on
Revaluation Separate
Revaluation Revaluation
Statements Of Changes In Shareholders’ Equity Foreign
-
-
-
-
-
-
-
-
-
-
199,594,686
(199,594,686)
-
-
-
-
-
-
-
(1,268,653)
-
-
1,268,653
36,099,407
(34,830,754)
translation
currency
-
-
-
-
-
-
-
-
-
-
(75,980,818)
75,980,818
-
-
-
-
-
-
-
-
-
-
-
(13,053,518)
13,053,518
subsidiary
on investment in
capital surplus
resulting from
Unrealized gain
-
3,987,724,794
-
-
-
831,847,670
-
3,155,877,124
-
-
3,155,877,124
3,155,877,124
3,155,877,124
-
-
-
664,321,755
-
2,491,555,369
-
-
-
2,491,555,369
-
2,491,555,369
Legal reserve
46,669,994,221
160,311,786
-
(6,798,477,454)
(831,847,670)
16,636,953,402
37,503,054,157
-
-
37,503,054,157
(1,570,075,338)
39,073,129,495
37,503,054,157
178,706,472
-
(10,197,779,087)
(664,321,755)
12,760,171,310
35,426,277,217
-
-
-
35,426,277,217
(1,043,811,543)
36,470,088,760
Retained Earnings
Appropriated
Unappropriated
108,515,092,908
160,311,786
-
(6,798,477,454)
-
16,636,953,402
98,516,305,174
829,199,431
(160,311,786)
97,847,417,529
(1,664,755,573)
99,512,173,102
97,847,417,529
178,706,472
-
(10,197,779,087)
-
12,760,171,310
95,106,318,834
(1,268,653)
(950,780,178)
(148,149,210)
96,206,516,875
(1,489,148,871)
97,695,665,746
Total
Unit : Baht
Statements Of Cash Flows
The Siam Commercial Bank Public Company Limited For The Years Ended December 31, 2007 And 2006
Unit : Baht
Consolidated
2007
2006
2007
2006
“Restated”
CASH FLOWS FROM OPERATING ACTIVITIES
Net income
Separate
17,355,956,602
13,286,435,105
16,636,953,402
12,760,171,310
Items to reconcile net income to cash received (paid) from operating activities:
Depreciation and amortization
2,520,435,360
2,115,495,384
2,305,178,889
1,923,286,489
Bad debt and doubtful accounts
3,570,377,466
4,374,096,917
3,134,620,000
3,973,142,942
Loss on debt restructuring
465,380,000
2,626,857,058
465,380,000
2,626,857,058
Loss on impairment of investment in securities (reversal)
294,621,350
(46,948,869)
(20,351,123)
(49,774,725)
(384,248,216)
(721,414,839)
(305,811,103)
(619,219,429)
Gain on sales of investments
Loss on transfers of investments
Gain on sales of premises and equipment
Loss (gain) on sales of property foreclosed
-
-
(56,102,169)
-
(118,607,833)
3,074,583
(43,120,401)
(103,962,037)
319,785,281
47,384,295
(309,944,648)
(233,218,449)
(2,618,700,558)
(2,253,590,966)
(2,615,025,941)
(2,233,134,341)
Unrealized loss (gain) on revaluation of securities
(14,470,492)
54,503,565
(8,998,998)
31,084,718
Amortization of goodwill
252,767,196
183,338,409
48,386,581
713,730,733
980,193,910
423,509,506
Gain on exchange Loss from adjustment of selling price of loans sold to TAMC
Prepaid interest amortization
Increase in accrued interest and dividend income
-
-
25,346,581
-
713,730,733
-
(119,998,019)
(1,673,205,670)
(96,969,456)
(1,695,167,664)
(1,848,482,218)
4,256,240,360
(1,769,330,213)
4,201,901,318
Increase in other accrued expenses 2,318,574,239
2,384,164,840
1,595,376,503
1,673,040,669
(452,025,503)
(587,420,956)
-
-
(288,340,438)
-
-
124,780,734
282,400,901
-
-
22,757,231,544
25,058,627,502
18,993,303,492
22,971,813,175
23,148,683,363
(74,144,067,108)
23,679,926,266
(74,828,013,774)
Increase (decrease) in accrued interest expense
Net income of a subsidiary before acquisition
Minority interest in net income of subsidiaries
Income from operations before changes in operating assets and liabilities
Operating assets (increase) decrease
Interbank and money market items
Securities purchased under resale agreements
Securities for trading
Loans and accrued interest receivables
Properties foreclosed
Other assets
-
9,300,000,000
(9,200,000,000)
9,300,000,000
(9,200,000,000)
(2,223,432,849)
(1,711,054,146)
(2,230,655,862)
(1,826,442,474)
(133,453,859,757)
(110,797,850,535)
4,904,170,731
3,602,513,608
4,006,354,691
2,774,755,284
(8,699,178,102)
(4,023,641,284)
(7,485,820,149)
(2,829,734,399)
(120,542,353,965) (102,920,508,298)
Statements Of Cash Flows (Continued)
The Siam Commercial Bank Public Company Limited For The Years Ended December 31, 2007 And 2006
Unit : Baht
Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES (continued)
2007
2006
2007
2006
“Restated”
Operating liabilities increase (decrease)
Deposits
Liabilities payable on demand
Securities sold under repurchase agreements
Separate
58,147,904,524
166,745,861,265
60,107,200,959
166,795,603,155
8,093,857,412
3,390,127,208
8,172,116,978
(4,022,524,141)
762,219,000
722,402,040
799,919,660
692,363,766
-
(500,000,000)
-
(500,000,000)
Short-term borrowings
47,010,847,048
(11,909,741,451)
40,737,348,971
(12,431,374,944)
Other liabilities
11,604,407,448
5,679,588,354
10,530,760,142
5,901,769,673
Net cash provided by (used in) operating activities
41,352,850,362
(7,087,234,547)
46,068,101,183
(9,422,292,977)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of available-for-sale securities
(54,999,120,018)
(192,866,962,214)
(22,813,390,401) (177,822,300,522)
Proceeds from sales of available-for-sale securities
49,456,434,938
198,910,183,555
13,152,410,740
185,004,860,402
(881,054,537) (22,908,311,918)
(12,251,397)
Purchases of held-to-maturity securities
Proceeds from redemption of held-to-maturity securities
(23,492,639,801)
756,821,982
2,792,138,892
448,314,185
1,415,900,532
Purchases of general securities
(7,760,100)
(455,491,876)
(7,300,500)
(462,425,864)
Proceeds from sales of general securities
13,479,922
555,068,169
13,479,922
541,300,727
(172,466,076)
(4,495,269,257)
(3,947,648,035)
(4,832,513,460)
136,730,697
297,763,665
(2,301,408,570)
(4,358,538,720)
(2,153,169,123)
(4,201,673,973)
583,340,156
2,573,132,856
529,541,878
2,543,924,719
2,070,970,533 (37,686,073,252)
2,217,603,544
Purchases of investments in subsidiaries and/or associated companies
Proceeds from sales of investments in subsidiaries and/or
associated companies
Purchases of premises and equipment
Proceeds from sales of premises and equipment
(30,026,586,870)
CASH FLOWS FROM FINANCING ACTIVITIES
-
42,782,380
Increase (decrease) in long-term borrowings
(2,613,681,238)
11,150,093,221
119,643,142
13,086,768,841
Dividend paid
(6,798,477,454)
(10,197,779,087)
(6,798,477,454)
(10,197,779,087)
(100,448,547)
(88,242,652)
-
-
(9,512,607,239)
864,071,482
(6,678,834,312)
(84,035,110)
(164,763,931)
-
1,729,621,143
(4,316,956,463)
1,703,193,619
(4,316,968,332)
Cash and cash equivalents as at January 1,
19,730,825,724
24,047,782,187
19,531,431,921
23,848,400,253
Cash and cash equivalents as at December 31,
21,460,446,867
19,730,825,724
21,234,625,540
19,531,431,921
Dividend paid to minority interests
Net cash provided by (used in) financing activities
Decrease in foreign currency translation
Net increase (decrease) in cash and cash equivalents
2,888,989,754
(1,268,653)
Notes To The Financial Statements
1. GENERAL
The Bank was incorporated in Thailand. Its head office is located at 9 Rutchadapisek Road, Kwang Jatujak, Khet Jatujak, Bangkok. The
Bank provides banking business through its branch network in Thailand and other countries. As at December 31, 2007 and 2006, the Bank
has 15,623 and 14,793 employees, respectively (Consolidated : 19,075 and 17,959 employees, respectively).
2. BASIS FOR PREPARATION OF THE FINANCIAL STATEMENTS
2.1 Basis for Presentation of the Financial Statements
The consolidated and separate financial statements for the years ended December 31, 2007 and 2006 are presented as prescribed by
the Bank of Thailand (BOT)’s notification dated May 10, 2001, regarding the format of balance sheet and statement of income of
commercial bank, issued under the Banking Act B.E. 2505 and the Bank of Thailand’s letter number 1498/2544 dated July 9, 2001
(see Note 3.1.3).
The Bank maintains its accounting records in Thai Baht and prepares its statutory financial statements in conformity with Thai law
and financial accounting standards used by the banking industry in Thailand. The accompanying financial statements are prepared
in accordance with accounting principles and practices generally accepted in Thailand and The Bank of Thailand’s guidelines.
2.2 Basis for Preparation of the Consolidated Financial Statements
The consolidated financial statements include the accounts of the Head Office, all domestic and overseas branches and the bank’s
subsidiaries where more than 50% of the shares are owned by the Bank. Significant related party transactions and balances have
been eliminated. The subsidiaries are as follows:
For the years ended December 31,
2007
2006
1 Chatuchak Asset Management Co., Ltd.
/
/
2 Cambodian Commercial Bank Ltd.
/
/
3 SCB Securities Co., Ltd.
/
/
4 The Siam Commercial Samaggi Insurance PCL
/
/
5 SCB Training Centre Co., Ltd.
/
/
6 Siam Pitiwat Co., Ltd.
/
/
7 Mahisorn Co., Ltd.
/
/
8 Astrakhan Investment Limited
/
/
9 SCB Asset Management Co., Ltd.
/
/
10 SCB Capital Service Co., Ltd.
/
/
11 SCB Quant Asset Management Co., Ltd.
/
/
12 Ratchayothin Capital Service Co., Ltd.
/
/
13 Siam Commercial Leasing PCL
/
/
/
/
/
/
(1)
14 Siam Panich SPV 1 Company Limited
15 Siam Niti Law Office Company Limited
(2)
(1) : Changed from associated company to subsidiary during the second quarter of 2006 and changed the name of the company from “Siam Panich Leasing Public Company Limiteds” to “Siam Commercial Leasing Public Company Limited” on July 26, 2006.
(2) : Changed from associated company to subsidiary during the third quarter of 2006. 104 Annual Report 2007
All subsidiaries were registered and operate in Thailand except Cambodian Commercial Bank Ltd., which was registered and
operates in Cambodia, and Astrakhan Investment Limited which was registered and operates in Hong Kong.
The consolidated financial statements for the years ended December 31, 2007 and 2006 did not include certain companies which
are either subsidiaries or companies in which the Bank and subsidiaries have significant control, as their operations were
discontinued or are in the process of being dissolved. In addition, they did not include the financial statements of companies in
which the Bank and a subsidiary have more than 50% of paid up capital as a result of debt restructuring because the Bank and the
subsidiary intend to hold these investments temporarily. There are no material effects on the consolidated financial statements for
not including such companies (see Note 4.3.6). Such companies which are classified as “general investments” are as follows :
Companies which are owned through debt restructure
% of the paid-up share capital
2007
2006
1 Manasika Co., Ltd.
100.0
100.0
2 S.G. Land Co., Ltd.
99.7
99.7
3 Phoenix Land Development Co., Ltd.
97.6
97.6
4 Mahachai Land Development Co., Ltd.
59.1
70.2
5 Zigma Concrete & Construction Co., Ltd.
58.8
58.8
% of the paid-up share capital
2007
2006
1 Siam Commercial Development Co., Ltd.
10.0
10.0
2 Thai Manpower Development Co., Ltd.
10.0
10.0
Companies which the Bank have significant control and in the process of dissolutions
2.3 Reclassifications
The Bank has reclassified underwriting income as a separate line from other income and underwriting expenses as a separate line
from other expenses in the consolidated statement of income for the year ended December 31, 2006 to conform to the
classifications used in the statement of income for the year ended December 31, 2007.
3. SIGNIFICANT ACCOUNTING POLICIES 3.1 Changes in Accounting Standards and Accounting Policies
In order to align the Thai Accounting Standards (TAS) to the International Accounting Standards, The Federation of Accounting
Professions has adopted certain new accounting standards in 2007, including the standards listed below.
3.1.1 The following Standards became effective for financial statements covering fiscal periods beginning on or after 1 January 2007.
TAS 27 (Revised 2006) Disclosures in the Financial Statements of Bank and Similar Financial Institutions
TAS 44 (Revised 2007) Consolidated and Separate Financial Statements
TAS 45 (Revised 2007) Investments in Associates
3.1.2 The following Standards will become effective for financial statements covering fiscal periods beginning on or after 1 January 2008.
The Federation of Accounting Professions has issued Notifications of Federation of Accounting Professions No. 9/2550 dated
May 2, 2007, No. 38/2550 dated September 21, 2007 and No. 62/2550 dated December 7, 2007 regarding the following
accounting standards that were announced in the Royal Gazette, but were not in effect in 2007:
TAS 25 (Revised 2007) Cash Flow Statements
TAS 29 (Revised 2007) Leases
TAS 31 (Revised 2007) Inventories
TAS 33 (Revised 2007) Borrowing Costs
TAS 35 (Revised 2007) Presentation of Financial Statements
TAS 39 (Revised 2007) Accounting Policies, Changes in Accounting Estimates and Errors
TAS 41 (Revised 2007) Interim Financial Reporting
TAS 43 (Revised 2007) Business Combination
TAS 49 (Revised 2007) Construction Contracts
TAS 51 Intangible Assets
These accounting standards will supersede previously issued accounting standards when they become effective.  The Bank
has assessed the impact of these accounting standards, when they are effective, for financial  periods beginning on or after
January 1, 2008 and do not expect them to have a material effect on the Bank’s financial statements.
3.1.3 Thai Accounting Standard No.27
During the year ended December 31, 2007, Thai Accounting Standard No. 27 “Disclosures in the Financial Statements of
Bank and Similar Financial Institutions” has been revised and announced by the Federation of Accounting Professions and to
be applied for the financial statements with the fiscal period beginning on or after January 1, 2007. The revised standard is
related to the presentation of balance sheet and statement of income and the disclosure of notes to the financial statements of
the Bank with no material impact. However, the consolidated and separate financial statements for the years ended December
31, 2007 and 2006, are still presented in accordance with the BOT’s Notification regarding the balance sheets and statements
of income of commercial banks date May 10, 2001 and its related letter of July 9, 2001 (see Note 2.1).
3.1.4 Change in Accounting Policy for Investments in Subsidiaries and Associated Companies For the year ended December 31, 2007, the Bank changed its accounting policy for investments in subsidiaries and associated
companies from the equity method to the cost method for the separate financial statements to comply with the Notification of
Federation of Accounting Professions. This change in accounting policy has been accounted for retroactively in the separate
financial statements as if the Bank had recorded such investments by the cost method according to the new accounting policy
continuously. Therefore, the comparative information for the separate statements for the year ended December 31, 2006 has
been restated to conform to the new accounting policy. Comparative information for the separate balance sheet as at December 31, 2006 and the separate statement of income for the
year ended December 31, 2006 has been restated to reflect the effect of the change to cost method as follows:
Balance sheet :
Decrease in investments in subsidiaries and associated companies - net
Decrease in retained earnings
Decrease in revaluation surplus on investments
Increase in foreign currency translation
Decrease in unrealized gain from capital surplus on investment in subsidiary
Statement of income :
Increase in dividend received
Decrease in gain on investments
Decrease in profit sharing from subsidiaries and associated companies
Decrease in net income
Decrease in basic earning per share (Baht)
Decrease in diluted earning per share (Baht)
Million Baht
As at December 31, 2006
1,665
1,570
218
199
76
Million Baht
For the year ended December 31, 2006
1,439
16
1,949
526
0.28
0.16
Cumulative effects from the change in accounting policy from the past to the beginning of the years 2007 and 2006 to be
adjusted to retained earnings brought forward for the separate financial statements as at December 31, 2006 and 2005 are
Baht 1,570 million and Baht 1,044 million, respectively. 3.2 Cash and Cash Equivalents
Cash and cash equivalents include cash in hand and cash on collection.
3.3 Investment in Securities
The Bank classifies its investments in securities as trading securities, available-for-sale securities, held-to-maturity securities, general
investments and investment in subsidiaries and associated companies. The Bank presents these investments in the balance sheet as
either short-term investments, long-term investments or investments in subsidiaries and associated companies. Short-term
investments are those investments that the Bank intends to hold for less than 1 year. Long-term investments are those investments
that the Bank intends to hold for more than 1 year.
Trading securities are those investments that management acquires with the intent of holding these investments for a short period
of time in order to take advantage of anticipated changes in the underlying market values. Trading securities are carried at fair value.
Changes in fair value are recognized in the statement of income as either non-interest income or expense. Interest income on
trading securities is recognized using the accrual basis of accounting.
Marketable debt and equity securities that are not classified as trading securities, held-to-maturity securities, and investment in
subsidiaries and associated companies are classified as available-for-sale securities and are carried at fair value, with the valuation
surplus or deficit on investments presented as a separate component of shareholders’ equity until realized upon disposition or sale of
the underlying securities. Interest income on available-for-sale securities is recognized using the accrual basis of accounting.
Debt securities for which the Bank has both the intent and ability to hold until maturity are classified as held-to-maturity securities.
Such securities are carried at amortized cost, net of valuation allowances for impairment, if any. Premiums and discounts on heldto-maturity securities are amortized or accreted as adjustments to interest income using the effective interest rate method over the
term of the securities. Interest income on held-to-maturity securities is recognized using the accrual basis of accounting.
The Bank classifies non-negotiable promissory notes and the rights of the Bank against the non-negotiable promissory notes, which
were given to the Bank by the Thai Asset Management Corporation (TAMC) upon entering into the Asset Transfer Agreement in
order to transfer impaired assets of the Bank and its subsidiary, as held-to-maturity debt securities.
Equity securities which are not readily marketable securities and are not subsidiaries and associated companies are classified as
general investments and are carried at the historical cost, net of valuation allowances for impairment, if any. Investments in subsidiaries and associated companies in the separate financial statements are accounted for by the cost method net
of allowances for impairment, if any.
Investments in associated companies in the consolidated financial statements are accounted for by the equity method. Investments in subsidiaries and associated companies acquired from troubled debt restructuring and received the permission from
the Bank of Thailand to hold the share exceeding the regulation which are included in general investment and available-for-sale
securities are not required to account for by the equity method or to prepare the consolidated financial statements according to the
announcement of Federal of Accounting Professions No. 27/2550 regarding “The Provision to Apply Thai Accounting Standards
No.44 and 45”.
The following methodologies are used to determine the fair value of securities held by the Bank.
The fair value of government debt securities is estimated based on monthly auction prices. In situations where no auction prices are available,
the fair value is estimated based on the Thai Bond Dealing Center’s yield curve. For state enterprise debt securities without guarantees by the
government, the fair value is estimated based on the yield curve of government debt securities plus an appropriate risk premium. The bidding prices at The Stock Exchange of Thailand on the last business day of the period are used to estimate the fair value of
listed private sector debt and equity securities. The fair value of non-listed private sector debt securities is estimated using the prices
obtained from the Thai Bond Dealing Center. In the absence of available prices, fair value is estimated by applying the BOT
valuation formula and the risk free yield curve plus the appropriate risk premium.
The fair value of unit trusts is estimated based on the net asset value at the end of the year.
The fair value of foreign debt and equity securities listed on the foreign stock exchanges is estimated by using the bid prices at such
exchanges as of the last business day of the year. The fair value of non-listed foreign debt and equity securities is determined based
on values quoted by reliable international financial institutions.
Valuation allowances are established and recognized as non-interest expense in the statement of income, when impairment in value
of investment has occurred.
Cost of securities sold during the period is calculated using the weighted average method.
3.4 Loans Overdrafts are stated at the principal amounts including interest. Certain overdrafts for which special notice has been served on the
borrower and other loans are stated at the principal amount. Unearned discounts received in advance are presented as deduction
from the loans.
3.5 Allowance for Doubtful Accounts
The allowance for doubtful accounts represents estimation of probable losses that may have occurred from loans and other lending
business at year end. The amount is in compliance with the minimum allowance for doubtful accounts required based on the BOT’s
guidelines. The guidelines require banks to categorize their loan portfolios into six categories. Each loan category is subject to
different levels of provisioning based on percentages established by the BOT. The guidelines established the maximum collateral
valuation limits for the purpose of calculating the allowance for doubtful accounts and also require that additional provisions for
loans classified as doubtful loss be made in cases where the Bank had not undertaken debt restructuring or filed lawsuits against the
debtors. The minimum allowance consists of the provisions based on the regulatory loan classifications and other additional
provisions required by the BOT.
In December 2006, the BOT issued the notification regarding guidelines for procedures of allowance for doubtful accounts for loans
classified as substandard, doubtful and doubtful loss. The significant changes are as follows:
Determination of minimum
allowance for doubtful
accounts
From December 2006 onwards
Before December 2006
100% of the excess of the book value of loans over either
the present value of expected future cash flow from
debtors or the present value of expected cash flow from
sales of collateral. The present value calculation is to be
in accordance with the BOT’s guidelines.
Use of historical loss rate that is adjusted with current
environment factors is allowed to be used for calculation
of the allowance for doubtful accounts of small balance
Minimum rate of 20%, 50% and 100%
of the excess of the book value of
loans over the collateral value or
debtors classified as substandard,
doubtful and doubtful loss,
respectively. The collateral valuation
is to be in accordance with the BOT’s
guidelines.
homogeneous loans (collective approach).
Maximum limit of collateral value for Present value of expected cash flow from sales of 90% of the appraisal value
the purpose of calculating the collateral.
allowance for doubtful accounts
In addition, the BOT requires banks and finance companies to perform qualitative reviews of their loans as an ongoing process. The
Bank and subsidiaries, which are financial institutions, are required to periodically report the result of their compliance with these
guidelines to the BOT.
The allowance is in compliance with and normally exceeds the minimum requirement under BOT’s guidelines by considering each
loan type. The Bank regularly reviews the collectibility of its loan portfolio and establishes the level of allowance for doubtful
accounts necessary. For corporate loans, the Bank considers a borrower’s ability to repay the obligation on an individual case basis
based on recent payment history and the estimated collateral value, if the expected source of repayment is from the liquidation of
collateral. For SME and consumer loans, the Bank use credit portfolio statistics to do the statistical analysis (Migration Analysis) for
estimation of the deterioration in the portfolio and related allowance for loans under the doubtful category.
Loans which have been restructured will be reclassified. Restructured loans which were previously classified as doubtful and
doubtful loss are upgraded to substandard. Restructured loans which were previously classified as substandard or special mention
loans will be classified at the same class for 3 consecutive months or next 3 installment payments, whichever is the longer, at which
time the loans will be reclassified as normal if the terms of the restructuring are complied with. Allowances for doubtful accounts established during the year are recognized as bad debt and doubtful accounts expense in the
statement of income. Bad debts recovery is recorded as income and is presented net of bad debt and doubtful accounts expense in
the statement of income. Bad debt written off is recorded as a decrease in the allowance for doubtful accounts. Amounts written off as bad debts are made for
loans which the Bank pursues the collection but not receive. These procedures comply with BOT’s notification and guidelines. 3.6 Troubled Debt Restructuring
Losses on troubled debt restructuring resulting from the reduction of principal and accrued interest and other restructuring concessions
including modification of terms, asset transfer, debts to equity swap, etc. are recognized as expenses in the statements of income.
In case the troubled debt restructuring modifies the terms of payment, the Bank complies with the BOT’s criteria requiring the Bank
to choose between the collateral method by which a loss amount is to be estimated and/or the net present value method which
represents expected cash flow in the future and applying the interest rate on the restructuring date. Losses from such debt
restructuring are recognized in the statement of income.
The Bank records assets or shares of stock representing an equity interest in the debtor received under debt restructuring
agreements at their fair value less cost to sell. However, the assets received are recorded at the amount not exceeding the recorded
investment in the receivable plus the non-accrued interest income which the Bank has the ultimate legal right, in accordance with
the Accounting Standard No. 34 “Accounting for Troubled Debt Restructuring”.
Subsequent to the troubled debt restructuring, the Bank recalculates fair value of restructured debts based on aforementioned
discount rates as of the last date of the quarterly financial statements and makes an adjustment of the valuation on the debt
restructured, if the fair value has changed. The recalculation made to the quarterly financial statements is in accordance with the
aforementioned BOT’s criteria. The adjustment in the valuation of restructured debt shall not cause the book value of restructured
debt to exceed the investment value of restructured debt.
3.7 Properties Foreclosed
Properties foreclosed consist of immovable and movable properties which are carried at the lower of investment in the loan or fair
value of the property as at the year end. Should the carrying value of a property foreclosed become impaired, an allowance for
impairment will be recorded in accordance with Accounting Standard No. 36, Impairment of Assets.
Gains or losses on sales of properties foreclosed are recognized as income or expense at the date of disposal.
3.8 Premises and Equipment Land is stated at the appraised value according to the market price method. Premises are stated at the appraised value according to
the replacement cost method net of accumulated depreciation. The appraised values are determined by an independent appraiser
according to guidelines prescribed by the BOT. The increment resulting from the appraisal is recorded in the accounts as
revaluation surplus on land appraisal and revaluation surplus on premises appraisal and shown under shareholders’ equity. If the
appraised values of land and premises are less than their cost, the difference is recognized as an expense in the statement of income.
Depreciation of premise increment is recognized as an expense in the statement of income and the amortization of the revaluation
surplus on premises appraisal is charged directly to the retained earnings by the same amount of such depreciation.
Depreciation of premises is calculated by the straight-line method based on the estimated useful life which is appraised at 50 years
by independent appraisers.
Land of subsidiaries is presented at cost, and premises of subsidiaries are presented at cost net of accumulated depreciation.
Depreciation of premises of subsidiaries is calculated by the straight-line method based on the estimated useful lives of premises
which are 15 - 40 years. Equipment is presented at cost net of accumulated depreciation.
Depreciation of equipment of the Bank and subsidiaries is calculated by the straight-line method based on the estimated useful lives
of the equipment which are 3 - 5 years. 3.9 Other Assets
Leasehold rights are presented at cost net of accumulated amortization.
The amortization is calculated by the straight-line method over the lease periods between 1 - 30 years.
Goodwill arising on acquisition represents the excess of the cost of acquisition over the fair value of net assets acquired. Negative
goodwill arising on acquisition represents the excess of the fair value of the net assets acquired over the cost of acquisition. Goodwill and negative goodwill are stated at cost less accumulated amortization and impairment losses. Goodwill and negative goodwill are amortized on a straight line basis over the period of 5 - 10 years. 3.10 Provident Fund
The Bank has a provident fund for its employees. The Bank’s contributions are made to match with the contributions from
employees and are recorded as expenses on an accrual basis.
3.11 Provision for retirement benefits
Under the labor laws and the Bank’s employment policy, all employees who have been with the Bank for over 8 years are entitled to
severance pay upon retirement at the age of 60. The Bank net obligation in respect of defined retirement plan is determined by 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 Government bonds. The provision for retirement benefit is calculated by using The Projected Unit Credit Method. 3.12 Interest Income and Interest Expense
The Bank recognizes interest and discounts on loans as income on an accrual basis, except for interest on loans which are
outstanding over 3 months at the date of the balance sheet and interest from receivables under trouble debt restructuring
agreements where the borrowers’ ability to pay is uncertain. Such interest is recognized when received. The Bank reverses all
accrued interest income for items which are no longer on an accrual basis. Interest on interbank and money market items and
investments is recognized on an accrual basis.
Interest expense is recognized on an accrual basis.
3.13 Dividend
Income
The Bank recognizes dividend income on an accrual basis at the date which the Bank earns the rights to receive the dividend.
3.14 Non-Interest Income
Non-interest income is recognized on an accrual basis.
3.15 Contributions to the Financial Institutions Development Fund
Contributions to the Financial Institutions Development Fund are recorded as expenses on an accrual basis.
3.16 Income Tax
The Bank records income tax payable for each year as an expense on an accrual basis.
3.17 Earnings Per Share
The basic earnings per share are calculated by dividing the net income for the year, adjusted by dividend on convertible preferred
shares, by the weighted average number of ordinary shares outstanding during the year. The diluted earnings per share are
calculated from net income for the year adjusted by dividend on convertible preferred shares and interest expense on convertible
bonds (if any), divided by the weighted average number of ordinary shares, on the assumption that conversion of all ordinary share
equivalents have been made at the beginning of the year. Ordinary share equivalents consist of convertible preferred shares,
warrants and subordinated convertible bonds.
3.18 Assets and Liabilities in Foreign Currencies
Assets and liabilities in foreign currencies are converted into Baht at the rates of exchange prevailing at the transaction dates.
Balances of assets and liabilities in foreign currencies at the end of the year are converted into Baht at the reference BOT exchange
rates at the end of the year.
Gains or losses on foreign exchange transactions and translation gains or losses are recognized as income or expense for the year in
the statement of income. Exchange rate differences arising on the translation of the financial statements of foreign subsidiaries and foreign branches are
presented as “Foreign currency translation” under the shareholders’ equity in the balance sheet.
3.19 Derivatives
Recognition of derivatives is as follows :
1. Derivatives for trading are carried at fair value. Changes in fair value are recognised in the statement of income.
2. Derivatives for hedging of transactions which are measured on an accrual basis are recorded as off-balance sheet items and
income and expense are recognised on an accrual basis equivalent to that used for the underlying transactions.
3.20 Use of Accounting Estimates
Preparation of financial statements in conformity with generally accepted accounting principles requires the Bank and subsidiaries
to make estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and disclosure of
contingent assets and liabilities. The actual result may differ from such estimates.
3.21 Significant Accounting Policies of Insurance Subsidiary
3.21.1Recognition of Insurance and Reinsurance Premium
Premium income is recognised on the date the relevant insurance policy comes into effect, after deducting premium ceded
and cancelled. Reinsurance premium income is recognised when the reinsurer places the reinsurance application or statement
of accounts.
3.21.2Unearned Premium Reserve
Unearned premium reserve is provided for in compliance with the methodology as specified in the Insurance Act B.E. 2535
(1992) as follows:
Fire, motor and miscellaneous
- Monthly average basis (the one-twenty fourth method)
Marine
- Premium written for the last three months
Travel accident
- Premium written for the last one month
3.21.3 Loss Reserve and Outstanding Claims
Outstanding claims are provided whenever claims have been submitted at a sum as advised by the insurer. Loss reserve is
provided based on estimates made by the subsidiary’s management.
Claim liabilities incurred but not reported are provided at 2.5% of retrospective 12 months net premium. 3.22 Significant Accounting Policies of Leasing Subsidiary
3.22.1Income from hire-purchase contract
The Subsidiary changed its method of revenue recognition for hire-purchase receivables starting on January 1, 2007 from the
sum-of-the-years-digits basis to be effective interest method. This change resulted in the increase in income from hirepurchase contracts for the year ended December 31, 2007, in the amount of Baht 110.74 million.
The Subsidiary’s reversal of income from hire-purchase accounts receivable and unearned interest income for receivables
which are outstanding over 3 months from the due date was made in order to comply with the guidelines of the Bank of
Thailand. This change resulted in the decrease in income from hire-purchase accounts receivable for the year ended
December 31, 2007 amounting to Baht 31.77 million and the decrease in provision for doubtful account amounting to Baht
3.84 million. For the year ended December 31, 2006, the subsidiary had no reversal of income.
3.22.2Income from lease contracts When assets are leased out under a finance lease, the present value of the lease payments is recognized as a receivable. The
difference between the gross receivable and the present value of the receivable is recognized as unearned finance income.
Lease contracts are accounted for by financing lease basis. Finance income from lease contracts is recognized on the effective
interest method over the period of the contracts. For the year ended December 31, 2006, income was not accrued for debts
which were overdue more than 180 days. For the year ended December 31, 2007, income is not accrued for debts which are
overdue more than 3 months, in order to comply with the Bank of Thailand’s guidelines.
3.22.3Income from factoring
Income from factoring is recognised by the effective interest method over the period of contracts. Interest income is not
accrued for debts which are overdue more than 180 days.
3.22.4Securitization transaction
Siam Commercial Leasing Public Company Limited - a subsidiary recognized the sales of hire-purchase receivables to Siam
Panich SPV1 Company Limited (“Securitization Plan”), according to the approval conditions required by the Securities and
Exchange Commission. The subsidiary derecognizes the hire-purchase receivables, which were transferred to Siam Panich
SPV1 Company Limited, and the debentures under the securitization plan in the amount that the risks and returns on the
receivables had been transferred to the debenture holders for both initial receivables transferred on the initial cut off date and
additional revolving receivables transferred during the revolving period. For those receivables whose risks and returns were not transferred to the debenture holders, the subsidiary recorded it as
Deferred Purchase Price Receivable and separately presented in the balance sheet.
In order to derecognize the hire-purchase receivables and the debentures under the securitization project which the risks and
returns on the receivables have been transferred to the debentureholders. The subsidiary has considered that the risks and
returns have been transferred when the transferor surrenders control over those assets to the transferee and accounted for as a
sale to the extent that consideration other than beneficial interests in the transferred assets are received in exchange.
Servicing assets and other retained interests in the transferred assets are measured by allocating the previous carrying amount
between the assets sold (if any), and retained interests (if any), based on their relative fair values at the date of transfer, if
practicable.
3.22.5Allowance for Doubtful Accounts
Since the year ended December 31, 2006, the subsidiary had changed the accounting estimation of allowance for doubtful
accounts for hire-purchase accounts receivable, lease accounts receivable and terminated contract hire-purchase accounts
receivable by using the Collective Approach method to provide allowance for doubtful accounts by considering historical loss
experience of each loan category. Moreover, for the year ended December 31, 2007, the subsidiary changed the accounting estimation of allowance for doubtful
accounts of hire-purchase accounts receivable, and lease accounts receivable by reversal of income from hire-purchase
accounts receivable, and unearned interest income for receivables which are outstanding over 3 months from the due date in
order to comply with the guidelines of the Bank of Thailand.
For the year ended December 31, 2006, the Company did not reverse such accounts.
The change resulted in decrease in income form hire-purchase accounts receivable for the year ended December 31, 2007
amounting to Baht 31.77 million and decrease in related provision for doubtful account amounting to Baht 3.84 million,
decrease in income from lease accounts receivable for the year ended December 31, 2007 amounting to Baht 1.18 million and
decrease in related provision for doubtful accounts amounting to Baht 0.31 million.
For the year ended December 31, 2006, the subsidiary provided allowance for doubtful accounts for factoring accounts
receivable, notes receivable, and other legal receivable in compliance with the minimum allowance for doubtful accounts
based on the Bank of Thailand guidelines. Each loan category is subject to different levels of provisioning based on
percentages established by the Bank of Thailand without collateral deduction as follows:
Allowance
%
Normal (Past due less than 30 days)
1
Special mentioned (Past due 31 - 90 days)
2
Substandard (Past due 91 - 180 days)
20
Doubtful (Past due 181 - 360 days)
50
Doubtful Loss (Past due > 360 days)
100
For factoring accounts receivable, the amounts that the subsidiary uses for calculating the allowance for doubtful accounts are
net of suspense account.
In addition, for the year ended December 31, 2007, the Company changed the percentage of allowance for doubtful accounts
for factoring accounts receivable, notes receivable and other legal receivables in substandard and doubtful aging from 20% and
50% to 100%, which were based on the notifications of the Bank of Thailand. This change resulted in the increase in the allowance for doubtful accounts as at December 31, 2007 for notes receivables in
the amount of Baht 5.40 million. However, there are no change in the allowance for doubtful accounts as at December 31,
2007 and the provision for doubtful accounts for the year ended December 31, 2007 of factoring accounts receivable and
other legal receivables.
Allowance for doubtful accounts is recognized by deducting from Deferred Purchase Price Receivable. The allowance amount
over the Deferred Purchase Price Receivable is recognized as expense in the statements of income.
4. INFORMATION ON BALANCE SHEET ITEMS 4.1 Interbank and Money Market Items (Assets)
As at December 31, 2007 and 2006, interbank and money market items (Assets) are as follows: Unit : Million Baht
Consolidated
2007
Domestic items :
Bank of Thailand and Financial Institutions Development Fund
Commercial banks
Other banks
Finance companies, finance and securities companies, securities companies and
credit foncier companies
Other financial institutions
Total
Demand
2006 Time
Total
Demand
Time
Total
5,814
14,000
19,814
5,985
-
5,985
1,199
3,704
4,903
376
2,384
2,760
21
100
121
-
30
30
1,350
535
1,885
250
490
740
6
4,976
4,982
481
1,059
1,540
8,390
23,315
31,705
7,092
3,963
11,055
Add Accrued interest receivables
-
34
34
-
18
18
Less Allowance for doubtful accounts
-
(265)
(265)
-
(65)
(65)
Total domestic items
8,390
23,084
31,474
7,092
3,916
11,008
Unit : Million Baht
Consolidated
2007
Demand
Foreign items:
2006 Time
Total
Demand
Time
Total
USD
5,376
69,644
75,020
3,615
116,417
120,032
YEN
358
-
358
349
-
349
1,505
1,639
3,144
1,555
392
1,947
7,239
71,283
78,522
5,519
116,809
122,328
-
880
880
-
640
640
-
(16)
(16)
-
(86)
(86)
Others
Total
Total foreign items
Total domestic and foreign items
7,239
72,147
79,386
5,519
117,363
122,882
15,629
95,231
110,860
12,611
121,279
133,890
Domestic items :
Bank of Thailand and Financial Institutions Demand
Unit : Million Baht
Separate
2007
Time
Total
Demand
2006 Time
Total
5,814
14,000
19,814
5,983
-
5,983
557
3,016
3,573
195
2,143
2,338
Finance companies, finance and securities companies, securities companies and
credit foncier companies
1,350
180
1,530
250
-
250
6
4,961
4,967
15
709
724
7,727
22,157
29,884
6,443
2,852
9,295
-
19
19
-
11
11
-
(265)
(265)
-
(65)
(65)
Development Fund
Commercial banks
Total
7,727
21,911
29,638
6,443
2,798
9,241
USD
4,101
67,294
71,395
2,601
114,295
116,896
YEN
357
-
357
350
-
350
1,491
1,638
3,129
1,511
392
1,903
5,949
68,932
74,881
4,462
114,687
119,149
-
881
881
-
633
633
-
(16)
(16)
-
(86)
(86)
Foreign items :
Others
Total
Total foreign items
5,949
69,797
75,746
4,462
115,234
119,696
13,676
91,708
105,384
10,905
118,032
128,937
4.2 Securities Purchased Under Resale Agreements
As at December 31, 2007 and 2006, securities purchased under resale agreements are as follows: Unit : Million Baht
Consolidated And Separate
2007
2006
Government and Bank of Thailand’s bonds
-
6,800
Financial Institutions Development Fund and state enterprise debt securities
-
2,500
-
9,300
Total
4.3 Investment in Securities
4.3.1 Classification of Investments in Securities As at December 31, 2007 and 2006, the Bank and subsidiaries classify their investments in securities as follows:
Unit : Million Baht
Consolidated
2007
Short-term investments
Government and state enterprise debt securities
Corporate debt securities
Foreign debt securities
Cost /
Amortized
Cost
2006
Fair value
Cost /
Amortized
Cost
Fair value
11,791
11,789
8,610
8,605
555
558
395
391
-
-
640
639
Domestic equity securities
213
233
376
393
Total
12,559
12,580
10,021
10,028
21
-
7
-
12,580
12,580
10,028
10,028
3,642
3,649
10,751
10,749
3,155
3,143
605
602
6,655
6,655
135
134
274
274
1,367
1,367
13,726
13,721
12,858
12,852
Add Allowance for revaluation of investments
Total
Available-for-sale securities
Other securities
Total
Less Allowance for revaluation of investments
Total
Held-to-maturity securities
Total
Total short-term investments-net
(5)
-
(6)
-
13,721
13,721
12,852
12,852
12,618
12,644
488
488
495
492
81
29
608
608
-
-
13,721
13,744
569
517
40,022
40,045
23,449
23,397
Unit : Million Baht
Consolidated
2007
Cost /
Amortized
Cost
2006
Fair value
Cost /
Amortized
Cost
Fair value
Long-term investments Available-for-sale securities Government and state enterprise debt securities
Other securities
Total
Less Allowance for impairment of investments
Total
18,307
17,475
6,247
6,042
775
595
5,489
5,139
-
-
2,660
2,655
12,478
14,118
12,028
12,950
2,497
2,512
2,393
2,376
34,057
34,700
28,817
29,162
1,154
-
516
-
-
(174)
-
(511)
34,700
34,700
29,159
29,162
46,304
43,904
38,813
35,740
879
850
1,406
1,293
2,010
2,010
650
651
Other securities
1,073
1,073
-
-
50,266
47,837
40,869
37,684
Total
Total
General investments
Domestic non-marketable equity securities
Foreign non-marketable equity securities
Total
Total
Total long-term investments-net
(798)
-
(750)
-
49,468
47,837
40,119
37,684
2,773
2,976
2,854
2,889
24
73
24
41
2,797
3,049
2,878
2,930
(1,981)
-
(1,966)
-
816
3,049
912
2,930
84,984
85,586
70,190
69,776
Unit : Million Baht
Separate
2007
Cost /
Amortized
Cost
2006
Fair value
Cost /
Amortized
Cost
Fair value
Short-term investments
11,791
11,789
8,610
8,605
555
558
465
461
-
-
640
639
-
-
120
122
Total
12,346
12,347
9,835
9,827
Add (Less) Allowance for revaluation of investments
1
-
12,347
12,347
9,827
9,827
3,415
3,422
7,705
7,704
3,086
3,073
304
301
6,655
6,655
135
134
13,156
13,150
8,144
8,139
Total
Total
Less Allowance for revaluation of investments
Total
(6)
13,150
-
13,150
(8)
(5)
8,139
-
-
8,139
11,816
11,841
-
-
425
422
52
-
608
608
-
-
12,849
12,871
52
-
38,346
38,368
18,018
17,966
Total
Total short-term investments-net
Long-term investments Available-for-sale securities Government and state enterprise debt securities
Other securities
Total
Total
18,307
17,475
6,246
6,042
634
454
5,051
4,701
-
-
2,660
2,655
11,687
13,360
11,227
12,221
1,274
1,285
1,566
1,590
31,902
32,574
26,750
27,209
1,183
-
630
-
-
(171)
-
(511)
32,574
32,574
27,209
27,209
Unit : Million Baht
Separate
2007
Cost /
Amortized
Cost
2006
Fair value
Cost /
Amortized
Cost
Fair value
45,791
43,415
38,247
35,174
650
638
1,149
1,053
2,010
2,010
650
651
Other securities
1,073
1,073
-
-
49,524
47,136
40,046
36,878
Total
Total
General investments
Domestic non-marketable equity securities
Foreign non-marketable equity securities
Total
Total
Total long-term investments-net
(758)
-
(733)
-
48,766
47,136
39,313
36,878
2,747
2,981
2,829
2,895
24
73
24
40
2,771
3,054
2,853
2,935
(1,950)
-
(1,936)
-
821
3,054
917
2,935
82,161
82,764
67,439
67,022
As at December 31, 2007, the Bank and a subsidiary classified the promissory notes which were issued by the Thai Asset
Management Corporation (TAMC) upon entering into the Asset Transfer Agreement for the transfer of sub-quality assets, as heldto-maturity debt securities - government and state enterprise debt securities of Baht 7,511 million in the consolidated financial
statements and of Baht 7,144 million in the separate financial statements (December 31, 2006 : Baht 7,934 million and Baht 7,538
million, respectively) (see Notes 4.4.10 and 4.20). As at December 31, 2007, the Bank has government bonds which are classified as available-for-sale securities and held-to-maturity
securities, of Baht 27 million and 21 million, respectively which are pledged with the court against a lawsuit. (December 31, 2006 :
available-for-sale securities Baht 23 million) As at December 31, 2007, no government bonds which are classified as available-for-sale securities, are pledged as collateral to
comply with terms of an agreement with Government Housing Bank. (December 31, 2006 : Baht 312 million) As at December 31, 2007, a subsidiary pledged debt securities, which are classified as held-to-maturity securities, amounting to Baht
14 million with a government agency (December 31, 2006 : Baht 14 million).
4.3.2 Time to Maturity of Debt Securities
Time to maturity of the Bank and subsidiaries’ investment in debt securities classified as available-for-sale securities and heldto-maturity securities as at December 31, 2007 and 2006 are presented below. Expected maturity may differ from contractual
maturity due to some borrowers having the right to call or prepay obligations with or without prepayment penalties.
Unit : Million Baht
Consolidated
2007
2006
Maturity schedule of securities
Up to
1 year
Over 1 to
5 years
Government and state
enterprise debt securities
Over
5 years
Total
Up to
1 year
Over 1 to
5 years
Over
5 years
Total
3,642
8,576
9,731
21,949
10,751
4,986
1,261
16,998
3,155
775
-
3,930
605
5,308
181
6,094
6,655
-
-
6,655
135
2,660
-
2,795
Other securities
Total
274
-
806
1,080
1,367
-
992
2,359
13,726
9,351
10,537
33,614
12,858
12,954
2,434
28,246
Less Allowance for
revaluation of
investments
(5)
Less Allowance for
impairment
of investments
-
-
13,721
9,094
9,782
32,597
12,852
12,589
2,236
27,677
12,618
30,634
15,670
58,922
488
25,347
13,466
39,301
495
811
68
1,374
81
1,386
20
1,487
608
2,010
-
2,618
-
650
-
650
-
1,073
-
1,073
-
-
-
-
13,721
34,528
15,738
63,987
569
27,383
13,486
41,438
-
-
13,721
34,528
14,940
63,189
569
27,366
12,753
40,688
27,442
43,622
24,722
95,786
13,421
39,955
14,989
68,365
Total
Other securities
Total
Less Allowance for
impairment
of investments
Total
Total debt securities
(257)
(574)
(836)
(6)
(181)
(181)
-
(798)
(798)
-
(362)
(17)
(385)
(3)
(181)
(184)
(17)
(733)
(750)
Unit : Million Baht
Separate
2007
2006
Up to
1 year
Other securities
Total
Less Allowance for
revaluation of
investments
Less Allowance for
impairment
of investments
Total
Other securities
Total
Less Allowance for
impairment
of investments
Total
Total debt securities
Over 1 to
5 years
Over
5 years
Total
Up to
1 year
Over 1 to
5 years
Over
5 years
Total
3,415
3,086
6,655
-
13,156
8,576
634
-
-
9,210
(6)
9,731
-
-
806
10,537
(257)
21,722
3,720
6,655
806
32,903
(574)
(837)
7,705
304
135
-
8,144
(5)
4,985
4,870
2,660
-
12,515
(361)
1,261
181
-
992
2,434
13,951
5,355
2,795
992
23,093
(17)
(383)
-
13,150
11,816
425
608
-
12,849
-
8,953
30,145
650
2,010
1,073
33,878
(181)
9,782
15,646
-
-
-
15,646
(181)
31,885
57,607
1,075
2,618
1,073
62,373
-
8,139
-
52
-
-
52
-
12,154
24,804
1,149
650
-
26,603
(181)
2,236
13,443
-
-
-
13,443
(181)
22,529
38,247
1,201
650
-
40,098
-
12,849
25,999
-
33,878
42,831
(758)
14,888
24,670
(758)
61,615
93,500
-
52
8,191
-
26,603
38,757
(733)
12,710
14,946
(733)
39,365
61,894
4.3.3 Unrealized Gain (Loss) on Available-For-Sale Securities and Held-To-Maturity Securities
Unrealized gain (loss) on available-for-sale securities and held-to-maturity securities as at December 31, 2007 and 2006 is as
follows:
Unit : Million Baht
Consolidated
2007
2006
Amortized Unrealized Unrealized Fair Value
Cost*
Gains
Losses
Cost*
Gains
Losses
Type of securities
47,272
2,549
(1,400)
48,421
41,501
2,353
(1,840)
42,014
63,189
136
(1,744)
61,581
40,688
2
(2,489)
38,201
Total
110,461
2,685
(3,144)
110,002
82,189
2,355
(4,329)
80,215
* Net of allowance for impairment
Unit : Million Baht
Separate
2007
2006
Cost*
Gains
Losses
Cost*
Gains
Losses
Type of securities
44,547
2,490
(1,313)
45,724
34,723
2,344
(1,719)
35,348
61,615
135
(1,743)
60,007
39,365
2
(2,489)
36,878
Total
106,162
2,625
(3,056)
105,731
74,088
2,346
(4,208)
72,226
* Net of allowance for impairment
4.3.4 Investments in Companies with Holding of 10% and Upwards
As at December 31, 2007 and 2006, investments in companies other than subsidiaries and associated companies, of which the
Bank and subsidiaries hold 10% and upwards of the paid-up capital in each company, classified by industry, are as follows:
Separate
Consolidated
2007
2006
Number Of Companies
Finance service and mutual fund
Manufacturing and others
Unit : Million Baht
4-10
21-22
11,711
438
12,149
2007
10,585
494
11,079
2006
10,799
436
11,235
9,893
492
10,385
4.3.5 Investments in Companies with Problems in Their Financial Positions
As at December 31, 2007 and 2006, the Bank and subsidiaries have investments in a number of securities issued by the
companies with problems in their financial positions and operating results. The Bank and subsidiaries have made a provision
for diminution in the value of securities equal to the amount by which the aggregate cost exceeds the aggregate market value
as follows:
Unit : Million Baht
Consolidated
Number Of Companies
Finance companies ordered closed
2007
Cost
Market
Value
Amount
of
Provision
2006
Cost
Market
Value
Amount
of
Provision
Common shares
2
1
-
1
1
-
1
Bonds
5
50
-
50
50
-
50
3
17
-
17
8
-
8
2-3
4
-
4
56
-
4
1,229
3
1,225
1,426
63
1,271
198
-
198
198
-
198
Listed companies identified for delisting
Common shares
Bonds
Non-listed companies whose operating
results in line with the listed
companies identified for delisting and
having going concern issue
Common shares/Preferred shares
Bonds
23-25
1
Unit : Million Baht
Separate
Number Of Companies
2007
Cost
2006
Market
Value
Amount
of
Provision
Cost
Market
Value
Amount
of Provision
Listed companies identified for
delisting
Common shares
2
Bonds
14
-
14
6
-
6
-
-
-
52
-
-
1,199
3
1,194
1,396
63
1,241
181
-
181
181
-
181
1-2
Non-listed companies whose
operating results in line with
the listed companies identified
for delisting and having going
concern issue
Common shares/Preferred shares
21-24
Bonds
1
4.3.6 Investments in Subsidiaries and Associated Companies
As at December 31, 2007 and 2006, the Bank and subsidiaries have investments in subsidiaries and associated companies as
follows: Unit : Million Baht
Consolidated
Type of
Business
Type of
share
Direct and
indirect
shareholding (%)
2007
2006
Investment value
Cost method
2007
Equity method
2006
2007
2006
Finance & Insurance
Banking
Ordinary
33.0
33.0
227
227
267
278
The Siam Industrial Credit PCL
and affiliates
Finance
Ordinary
38.6
38.6
1,250
1,250
1,567
1,572
Life Insurance PCL
Life Insurance
Ordinary
47.3
47.3
633
633
1,229
874
SCB Leasing PCL
Leasing, Hire-
Ordinary
44.3
44.1
45
45
142
136
Nursery
Ordinary
30.0
30.0
2
2
-
-
Construction
Ordinary
41.5
41.5
534
534
391
398
purchase and
Factoring
Services
Siam Children Care Co., Ltd. *
Real Estate
and affiliates
Unit : Million Baht
Consolidated
Type of
Business
Type of
share
Direct and
indirect
shareholding (%)
Investment value
Cost method
Equity method
2007
2006
2007
2006
2007
2006
Others
Holding
Ordinary
39.8
39.8
16
16
37
60
(Germany)*
Holding
Ordinary
46.9
46.9
-
-
-
-
2,707
2,707
3,633
3,318
-
-
3,633
3,318
Total
Less Allowance for impairment of
investments
(143)
Total investments in
associated companies-net
(611)
2,564
2,096
Unit : Million Baht
Separate
Type of
Business
Type of
share
Direct and
indirect shareholding (%)
2007
2006
Investment value
Cost method
2007
2006
“Restated”
Subsidiaries
Finance & Insurance
Cambodian Commercial Bank Ltd. Banking
Ordinary
100.0
100.0
634
634
Ordinary
100.0
100.0
6,000
6,000
(Cambodia)
Chatuchak Asset Management
Asset Management
Co., Ltd.
SCB Securities Co., Ltd.
Securities
Ordinary
100.0
100.0
5,107
5,107
SCB Asset Management Co., Ltd.
Fund Management
Ordinary
100.0
100.0
221
46
The Siam Commercial Samaggi
Insurance
Ordinary
59.1
60.2
546
546
Fund Management
Ordinary
100.0
100.0
-
-
Leasing, Hirepurchase
Ordinary
99.1
95.5
10,718
7,033
Insurance PCL
SCB Quant Asset Management
Co., Ltd
Siam Commercial Leasing PCL
and affliates*
and Factoring
Services
SCB Training Centre Co., Ltd.
Service
Ordinary
100.0
100.0
390
390
Siam Pitiwat Co., Ltd.
Service
Ordinary
99.9
99.9
10
10
SCB Capital Service Co., Ltd.
Asset Management
Ordinary
100.0
100.0
88
-
Ratchayothin Capital Service
Co., Ltd.
Asset Management
Ordinary
100.0
100.0
-
-
Siam Niti Law Office Co., Ltd.**
Legal Consultant
Ordinary
100.0
100.0
16
16
Unit : Million Baht
Separate
Type of
Business
Type of
share
Direct and
indirect shareholding (%)
2007
2006
Investment value
Cost method
2007
2006
“Restated”
Real Estate
Mahisorn Co., Ltd.
Real Estate
Ordinary
100.0
100.0
2,142
2,142
Holding
Ordinary
99.9
99.9
2
2
Banking
Ordinary
33.0
33.0
227
227
The Siam Industrial Credit PCL
and affiliates
Finance
Ordinary
38.6
38.6
1,250
1,250
Siam Commercial New York Life Life Insurance
Insurance PCL
Ordinary
47.3
47.3
633
633
SCB Leasing PCL
Ordinary
44.3
44.1
40
40
Nursery
Ordinary
30.0
30.0
-
-
Construction
Ordinary
41.5
41.5
534
534
Holding
Ordinary
39.8
39.8
14
14
(Germany)***
Holding
Ordinary
46.9
46.9
-
-
28,572
24,624
(2,612)
(2,930)
25,960
21,694
Others
Astrakhan Investment Limited
(Hong Kong)
Finance & Insurance
Leasing, Hirepurchase
and Factoring
Services
Siam Children Care Co., Ltd. ***
Real Estate
and affiliates
Others
Total
Less Allowance for impairment of
investments
Total investments in subsidiaries and associated
companies-net
* Changed from associated company to subsidiary during the second quarter of 2006
** Changed from associated company to subsidiary during the third quarter of 2006 *** Discontinued operations or in the process of dissolution
Summaries of financial information of associated companies are as follows :
Unit : Million Baht
2007
2006
“Unaudited”
“Audited”
Total
assets
Finance & Insurance
Real Estate
Total
liabilities
Shareholders’
equity Total
assets
Total
liabilities
Shareholders’
equity 67,744
60,530
7,214
64,749
58,309
6,440
3,909
2,979
930
3,068
2,120
948
42
2
40
118
2
116
71,695
63,511
8,184
67,935
60,431
7,504
Others
Unit : Million Baht
2007
2006
“Unaudited”
“Audited”
Revenue
Finance & Insurance
Real Estate
Expenses
Net income
(loss)
Revenue
Expenses
Net income
(loss)
16,768
15,738
1,030
14,309
13,430
879
4,961
4,927
34
3,587
3,528
59
Others
41
-
41
50
1
49
21,770
20,665
1,105
17,946
16,959
987
Information about the financial positions and results of operations of certain subsidiaries and companies in the process of
dissolution or discontinued operations that the Bank has significant control and not included in the consolidated financial
statements can be summarized as follows: (see Note 2.2)
Unit : Million Baht
2007
2006
“Unaudited”
Siam Commercial Development Co., Ltd.
Total
assets
Total
liabilities
-
-
“Audited”
Shareholders’
equity
-
Total
assets
Total
liabilities
-
-
Shareholders’
equity
-
Thai Manpower Development Co., Ltd.
1
-
1
1
-
1
1
-
1
1
-
1
Unit : Million Baht
2007
2006
“Unaudited”
“Audited”
Revenue
Expenses
Net income
(loss)
Revenue
Expenses
Net income
(loss)
-
-
-
-
-
-
Thai Manpower Development Co., Ltd.
-
-
-
-
-
-
-
-
-
-
-
-
As at December 31, 2007 and 2006, the Bank and a subsidiary have equity securities in companies received as a result of troubled debt
restructuring, which represent more than 20% of the paid-up capital of each company. The Bank did not record these securities as
investments in subsidiaries and associated companies as it is the Bank’s and subsidiary’s intention to hold such investments temporarily.
Such investments are as follows:
Unit : Million Baht
December 31, 2007
“Unaudited”
% of paid- up
capital
Total Assets
Manasika Co., Ltd.
100.0
119
-
119
S.G. Land Co., Ltd.
99.7
1,004
821
183
Phoenix Land Development Co., Ltd.
97.6
135
198
(63)
Mahachai Land Development Co., Ltd.
59.1
534
564
(30)
Zigma Concrete & Construction Co., Ltd.
58.8
96
112
(16)
Sri-U-Thong Co., Ltd.
41.7
342
695
(353)
Thai Mercantile Marine Co., Ltd.
41.1
15
149
(134)
Siam Media and Communication Co., Ltd.*
33.3
-
-
Thai Baroda Industry Co., Ltd.
31.3
2,408
4,361
Nawa 84 Co., Ltd.
25.0
1,213
-
1,213
WTA (Thailand) Co., Ltd.
25.0
-
-
-
22.9
1,067
916
151
General investments
Total Liabilities
Shareholders’
equity
(1,953)
Available-for-sale investments
Premier Enterprise PCL
* In the process of dissolution
Unit : Million Baht
December 31, 2006
“Audited”
General investments
% of paid- up
capital
Total Assets
Total Liabilities
Shareholders’
equity
Manasika Co., Ltd.
100.0
120
-
120
S.G. Land Co., Ltd.
99.7
1,032
407
625
97.6
132
198
(66)
70.2
572
621
(49)
58.8
103
116
(13)
41.7
432
719
(287)
41.1
15
146
(131)
33.3
-
-
31.3
2,653
4,346
Nawa 84 Co., Ltd.
25.0
1,213
-
25.0
-
-
-
Premier Enterprise PCL **
22.9
1,055
909
146
CBNP (Thailand) Co., Ltd.
20.8
1,148
5,315
(1,693)
1,213
(4,167)
** Including available-for-sale securities of 5.7% Siam Commercial Bank Public Company Limited 127
Unit : Million Baht
2007
2006
“Unaudited”
“Audited”
Revenue
Expenses
Net
income
(loss)
Revenue
Expenses
Net
income
(loss)
General investments
Manasika Co., Ltd.
-
-
-
-
-
S.G. Land Co., Ltd.
118
110
8
148
150
4
1
3
24
1
23
84
64
20
41
53
(12)
176
178
(2)
296
305
(9)
(2)
121
188
(67)
699
716
(17)
-
3
(3)
-
3
(3)
-
-
-
-
-
-
1,305
1,701
1,701
2,214
(396)
(513)
Nawa 84 Co., Ltd.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
81
659
(578)
321
314
7
715
468
247
Available-for-sale investments
Premier Enterprise PCL **
** Including general securities of 17.2% in 2006
4.4 Loans and Accrued Interest Receivables
4.4.1 Classified by Product as at December 31, 2007 and 2006
Unit : Million Baht
Consolidated
Separate
2007
2006
2007
53,745
48,083
53,432
47,927
647,629
566,486
663,687
570,802
Bills
66,961
56,796
66,741
56,411
Hire-purchase
75,367
52,916
-
-
Financial lease
1,447
944
-
-
23,026
22,412
20,588
19,793
868,175
747,637
804,448
694,933
Overdrafts
Loans
Others
Total
2006
2,171
2,451
2,133
2,436
(45,723)
(50,147)
(41,097)
(45,537)
(1,073)
(2,252)
(1,073)
(2,252)
Revaluation allowance for debt
restructuring
Total
823,550
697,689
764,411
649,580
4.4.2 Classified by Time to Maturity as at December 31, 2007 and 2006
Unit : Million Baht
Consolidated
2007
2006
2007
Separate
2006
Up to 1 year*
370,970
313,091
388,998
319,282
Over 1 year
497,205
434,546
415,450
375,651
2,171
2,451
2,133
2,436
870,346
750,088
806,581
697,369
Total
* Including loans without contracts and past-due
4.4.3 Classified by Currency and Residence of Customers as at December 31, 2007 and 2006
Unit : Million Baht
Consolidated
2007
Domestic
2006
Foreign
Total
Domestic
Foreign
Total
Baht
845,666
2
845,668
727,636
3
727,639
USD
10,541
11,200
21,741
8,774
9,800
18,574
766
-
766
1,357
67
1,424
Others
Total
2,171
2,451
870,346
750,088
Unit : Million Baht
Separate
2007
Domestic
2006
Foreign
Total
Domestic
Foreign
Total
Baht
783,308
2
783,310
675,951
3
675,954
USD
10,541
9,831
20,372
8,774
8,780
17,554
766
-
766
1,358
67
1,425
Others
Total
2,133
2,436
806,581
697,369
4.4.4 Classified by Business Type and Loan Classification as at December 31, 2007 and 2006
Unit : Million Baht
Consolidated
2007
Normal
2006
Special
SubDoubtful Doubtful
Mention standard
Loss
Total
Normal
Special
Mention standard
Loss
Total
4,207
155
211
319
584
5,476
3,981
273
464
103
1,280
6,101
310,056
2,589
2,755
4,081
18,993
338,474
255,623
3,162
1,921
5,906
16,464
283,076
57,328
Manufacturing and
commercial
64,847
216
463
519
4,892
70,937
49,612
590
593
310
6,223
103,118
2,322
500
275
4,129
110,344
84,870
878
471
1,420
5,125
92,764
Housing loans
203,774
4,077
1,986
2,150
8,312
220,299
192,400
3,870
2,018
2,495
9,408
210,191
Others
Total Accrued interest receivables
Total
113,304
5,302
1,457
699
1,883
122,645
89,189
3,847
1,296
800
3,045
98,177
799,306
14,661
7,372
8,043
38,793
868,175
675,675
12,620
6,763
11,034
41,545
747,637
1,876
81
80
46
88
2,171
1,921
85
21
8
416
2,451
801,182
14,742
7,452
8,089
38,881
870,346
677,596
12,705
6,784
11,042
41,961
750,088
Unit : Million Baht
Separate
2007
Normal
2006
Special
Mention standard
Loss
Total
Normal
Special
Mention standard
Loss
Total
4,171
155
211
319
552
5,408
3,973
271
463
101
1,244
6,052
Manufacturing and
328,601
2,519
2,684
3,997
16,769
354,570
262,871
3,094
1,907
5,870
14,260
288,002
commercial
63,855
163
449
468
2,893
67,828
48,784
558
497
303
4,384
54,526
96,195
2,210
480
264
3,998
103,147
80,495
794
393
1,392
4,998
88,072
203,760
4,077
1,986
2,149
8,213
220,185
192,386
3,868
2,018
2,492
9,272
210,036
50,443
839
653
372
1,003
53,310
44,465
685
553
532
2,010
48,245
747,025
9,963
6,463
7,569
33,428
804,448
632,974
9,270
5,831
10,690
36,168
694,933
1,865
81
80
46
61
2,133
1,933
85
21
8
389
2,436
748,890
10,044
6,543
7,615
33,489
806,581
634,907
9,355
5,852
10,698
36,557
697,369
Housing loans
Others
Total Accrued interest receivables
Total
4.4.5 Loan Classification and Allowance as at December 31, 2007 and 2006
Unit : Million Baht
Separate
2007
Loan classification
Loan and
accrued
interest
Loan and
accrued
interest
- net
Allowance
per BOT’s
guideline
%
Additional
allowance
Total
748,890
715,934*
1
7,159
664
7,823
Special Mention
10,044
9,778*
2
196
919
1,115
Substandard***
6,543
2,978**
100
2,978
-
2,978
7,615
3,565**
100
3,565
-
3,565
33,489
13,784**
100
13,784
232
14,016
Normal
Doubtful
Doubtful Loss
Total
Allowance
Allowance
per
requirement
806,581
746,039
27,682
1,815
29,497
11,600
41,097
Total
* Net of cash and near cash collateral ** Net of PV cashflow from loan receivables or selling collateral
*** Excluding troubled debts restructuring which the allowance was included in revaluation allowances for debts restructuring
Unit : Million Baht
Separate
2006
Loan classification
Normal
Loan and
accrued
interest
Loan and
accrued
interest
- net
Allowance
per BOT’s
guideline
%
Allowance
Allowance
per
requirement
Additional
allowance
Total
634,907
588,613*
1
5,886
1,439
7,325
Special Mention
9,354
8,733*
2
175
-
175
Substandard***
5,852
3,094**
100
3,094
-
3,094
Doubtful
10,698
3,129**
100
3,129
-
3,129
Doubtful Loss
36,558
18,917**
100
18,917
-
18,917
Total
Total
697,369
622,486
31,201
1,439
32,640
12,897
45,537
* Net of cash and near cash collateral ** Net of PV cashflow from loan receivables or selling collateral
*** Excluding troubled debts restructuring which the allowance was included in revaluation allowances for debts restructuring
Based on management’s assessment of the ultimate collectibility of the Bank’s loan portfolio, the Bank believes that the
allowance established was adequate as at December 31, 2007 and 2006 and in compliance with the BOT guidelines. As at
December 31, 2007, the Bank has provided an allowance for doubtful accounts which exceeds the minimum allowance
required by the BOT’s guidelines revised in 2006 by Baht 11,600 million (December 31, 2006 : Baht 12,897 million).
4.4.6 Loan Classification of Finance and Leasing Subsidiaries As at December 31, 2007 and 2006, Chatuchak Asset Management Co., Ltd which is a subsidiary, has classified loans
according to the criteria specified in the Notification of the BOT as follows :
Unit : Million Baht
2007
Loan classification
Normal
Special Mention
Substandard
Doubtful
Doubtful Loss
Total
Less Allowance for doubtful
account transferred for
loans purchased
Loan and
accrued
interest (Include
loans
purchased)
20
57
Loan and
accrued
interest
– net
Allowance
per BOT’s
guideline
%
Allowance
Allowance
per requirement
Additional
allowance
Total
19*
1
-
-
-
-
2
-
-
-
25**
100
25
-
25
111
42**
100
42
-
42
4,454
3,043**
100
3,043
-
3,043
4,642
3,129
3,110
-
3,110
(2,610)
(2,610)
2,032
Allowance per requirement
Total
* Net of collateral per BOT’s guideline ** Net of PV cashflow from selling collateral
500
48
548
Unit : Million Baht
2006
Loan classification
Loan and
accrued
interest (Include
loans
purchased)
Loan and
accrued
interest
– net
Allowance
per BOT’s
guideline
%
Allowance
Allowance
per requirement
Additional
allowance
Total
39
35*
1
-
-
-
1
-
2
-
-
-
Substandard
67
67**
100
67
-
67
Doubtful
49
47**
100
47
-
47
4,984
3,672**
100
3,672
-
3,672
5,140
3,821
3,786
-
3,786
(3,063)
(3,063)
2,077
Allowance per requirement 723
53
776
Normal
Special Mention
Doubtful Loss
Total
Less Allowance for doubtful account transferred for
loans purchased
Total
* Net of collateral per BOT’s guideline ** Net of PV cashflow from selling collateral
As at December 31, 2007 and 2006, Siam Commercial Leasing PCL which is a subsidiary has accounts receivable and
allowance for doubtful accounts according to the BOT’s notification as follows :
Unit : Million Baht
2007
Loan and
Accrued interest
Normal
2006
Allowance for
doubtful accounts
Loan and
Accrued interest
Allowance for
doubtful accounts
71,958
110
50,582
32
4,697
187
3,349
8
Substandard
852
144
864
130
Doubtful
363
196
332
197
Special Mention
Doubtful Loss
Total
646
525
792
793
78,516
1,162
55,919
1,160
4.4.7 Loans to Listed Companies Identified for Delisting
As at December 31, 2007 and 2006, the Bank and its subsidiaries which are financial institutions have loans and
accrued interest receivables with borrowers who have problems with their financial positions and operating results,
causing their loans to become classified assets. The Bank and subsidiaries have made provisions for loan losses as
follows :
Unit : Million Baht
Consolidated
2007
2006
No. of
Loans and Collateral Amount of
No. of
companies accrued
provision companies accrued
provision
interest
interest
receivables*
receivables*
Listed companies
identified for delisting
3
851
-
802
3
1,174
313
893
* Including loans to financial institutions
Unit : Million Baht
Separate
2007
2006
No. of
No. of
companies accrued
provision companies accrued
provision
interest
interest
receivables*
receivables*
Listed companies
identified for delisting
3
840
-
790
3
1,163
313
882
* Including loans to financial institutions
4.4.8 Non-Performing Loans
As at December 31, 2007 and 2006, the Bank used the guidelines specified in the BOT’s notification dated January 16,
2003 in determining non-performing loans which consist of loans classified as substandard, doubtful, doubtful loss and
loss under BOT’s guideline. The amounts are as follows:
Unit : Million Baht
Consolidated
2007
Separate
2006
2007
2006
Non-performing loans (net of allowance for
doubtful accounts)
% of Non-performing loans to total loans (net)
Non-performing loans (gross)
% of Non-performing loans to total loans 24,869
24,037
22,401
22,680
2.9
3.4
2.8
3.4
54,208
59,343
47,460
52,690
6.1
7.9
5.7
7.5
As at December 31, 2007, Chatuchak Asset Management Co., Ltd. which is a subsidiary, has non-performing loans of
Baht 2,032 million (December 31, 2006 : Baht 2,077 million). Had non-performing loans, been based on principal of
loan purchased from the Bank as at December 31, 2007, the amount would be Baht 4,642 million (December 31, 2006 :
Baht 4,346 million). 134 Annual Report 2007
4.4.9 Troubled Debt Restructured
The financial statements for the years ended December 31, 2007 and 2006, include the result of various types of
troubled debt restructured including transfers of assets and equity securities, changes in repayment condition, and
mixed types as follows:
Unit : Million Baht
Consolidated
Types of Debt
Restructured
Transfers of assets
Outstanding Debts
No. of
Accounts
Before Debt
Restructured
Transferred Assets
After Debt
Restructured
2007
2006
2007
2006
2007
2006
1
1
17
29
17
29
Type
Fair Value
2007
2006
17
29
-
239
Immovable
properties
Debt restructuring in various
forms
Changes of repayment
648
183
2,024
6,272
1,969
2,255
2,648
2,015
5,238
7,956
5,154
7,818
3,297
2,199
7,279
14,257
7,140
10,102
Immovable
properties and
shares
conditions
Total
Unit : Million Baht
Separate
Types of Debt
Restructured
Transfers of assets
Outstanding Debts
No. of
Accounts
Before Debt
Restructured
Transferred Assets
After Debt
Restructured
2007
2006
2007
2006
2007
2006
1
1
17
29
17
29
Type
Fair Value
2007
2006
17
29
-
239
Immovable
properties
Debt restructuring in various
forms
Changes of repayment
648
183
2,024
6,272
1,969
2,255
2,648
2,015
5,238
7,956
5,154
7,818
3,297
2,199
7,279
14,257
7,140
10,102
Immovable
proerties and
shares
conditions
Total
As at December 31, 2007 and 2006, troubled debt restructured compared with total loans including loans to financial
institutions are as follows: Unit : Million Baht
Consolidated
2007
Troubled debt restructured during the year
Total loans including loans to financial institutions
No. of
Accounts
2006
The Outstanding
Debts
No. of
Accounts
The Outstanding
Debts
3,297
7,279
2,199
14,257
430,223
895,758
377,138
763,365
Unit : Million Baht
Separate
2007
No. of
Accounts
Troubled debt restructured during the year
Total loans including loans to financial institutions
2006
The Outstanding
Debts
No. of
Accounts
The Outstanding
Debts
3,297
7,279
2,199
14,257
185,318
830,839
193,860
701,099
As at December 31, 2007, the Bank and its subsidiaries which are financial institutions have outstanding loans to the
restructured debtors including accrued interest receivables of Baht 45,005 million in the consolidated financial
statements and Baht 44,970 million in the separate financial statements (December 31, 2006 : Baht 54,425 million and
Baht 54,173 million, respectively). The average term of troubled debt restructured during the year ended December 31, 2007 is 13.8 years (2006 :12.9
years).
Supplementary information relating to restructured debtors for the years ended December 31, 2007 and 2006 are as
follows:
Unit : Million Baht
Consolidated
2007
Interest income recognized in the statements of income
Loss from debt restructuring recognized in the statements of income Cash collection Separate
2006
2007
2006
2,772
3,011
2,767
2,924
465
2,627
465
2,627
3,660
5,565
3,649
5,213
4.4.10 Sales of Loan Receivables to The Thai Asset Management Corporation (TAMC)
The information regarding the transfer of a portion of sub-quality assets to TAMC according to the Asset Transfer
Agreement of the Bank and a subsidiary since 2001 are as follows: (see Notes 4.3.1 and 4.20)
Unit : Million Baht
Consolidated
2007**
Separate
2006*
2007**
2006*
Total net amount of sub-quality assets transferred to TAMC since 2001
10,282
10,334
9,858
9,883
Promissory notes received
10,282
10,334
9,858
9,883
* Net of adjustment of selling price of loans sold to TAMC of Baht 739 million
** Net of adjustment of selling price of loans sold to TAMC of Baht 762 million
4.4.11 Securitization transaction of a subsidiary
On March 20, 2006, Siam Commercial Leasing Public Company Limited - a subsidiary entered into the Hire-purchase
Receivables Sale Agreement with Siam Panich SPV1 Company Limited (“the SPV 1”), which was incorporated under
the Civil and Commercial Code of Thailand, to operate the securitization business under the Securitization Law. The
Subsidiary’s Securitization Plan was approved by the Office of the Securities and Exchange Commission after which
the total Initial Receivables of Baht 6,614,999,826 were sold to the SPV1 at the net book value as at February 28, 2006.
The Subsidiary transferred the rights to receive cash from the obligors to the SPV1 and received cash of Baht
4,999,649,826 from the SPV1 on March 30, 2006 (see Note 3.22.4). The remaining balance of the selling price for the
Initial Receivables of Baht 1,615,350,000, was recorded as Deferred Purchase Price. The Subsidiary was allowed to sell
additional revolving receivables subsequently and was appointed to act as the servicer which is responsible for
collecting payments from its obligors under the Receivables Sale Agreements and Servicing Agreements. 4.5 Allowance for Doubtful Accounts
Allowance for doubtful accounts as at December 31, 2007 and 2006 consists of the following:
Unit : Million Baht
Consolidated
2007
Beginning balance
Bad debt and doubtful accounts*
Bad debt written off
Others
Ending balance
Normal
Special
Mention
Sub
Standard
Doubtful
Doubtful
Loss
General
7,359
183
3,225
3,326
20,113
15,941
542
987
5,023
(2,371)
-
-
-
-
46
132
66
20
91
1,188
1,543
7,947
1,302
3,122
3,760
14,834
14,758
45,723
(169)
414
(10,393)
-
Total
50,147
4,426
(10,393)
* Before deducting bad debt recovered of Baht 856 million (see Note 5.2)
Unit : Million Baht
Consolidated
2006
Normal
Special
Mention
Sub
Standard
Doubtful
Doubtful
Loss
General
5,129
164
408
2,041
22,945
21,444
52,131
(SCBL) as of acquisition date
33
2
6
50
959
-
1,050
2,197
17
2,811
1,185
4,217
-
-
-
-
Others
-
-
-
50
1,509
7,359
183
3,225
3,326
20,113
Beginning balance
Total
Beginning balance of subsidiary
Ending balance
(9,517)
(5,021)
(482)
15,941
5,406
(9,517)
1,077
50,147
* Before deducting bad debt recovered of Baht 1,032 million (see Note 5.2)
Unit : Million Baht
Separate
2007
Normal
Special
Mention
Sub
Standard
Doubtful
Doubtful
Loss
General
7,326
175
3,094
3,129
18,917
12,896
45,537
497
940
436
4,944
(2,710)
3,991
-
-
-
-
Others
-
-
-
-
-
1,414
1,414
7,823
1,115
2,978
3,565
14,016
11,600
41,097
Beginning balance
Ending balance
(116)
(9,845)
Total
-
(9,845)
* Before deducting bad debt recovered of Baht 856 million (see Note 5.2)
Unit : Million Baht
Separate
2006
Normal
Special
Mention
Sub
Standard
Doubtful
Doubtful
Loss
General
Beginning balance
5,127
164
408
2,041
22,509
16,886
47,135
2,199
11
2,686
1,088
5,541
(6,521)
5,004
-
-
-
-
Others
-
-
-
-
-
2,531
2,531
7,326
175
3,094
3,129
18,917
12,896
45,537
Ending balance
(9,133)
Total
-
(9,133)
* Before deducting bad debt recovered of Baht 1,031 million (see Note 5.2)
4.6 Revaluation Allowances for Debts Restructured As at December 31, 2007 and 2006, revaluation allowances for debts restructured consist of the following :
Unit : Million Baht
Consolidated
2007
Beginning balance
Decrease during the year
Ending balance
2,252
(1,179)
1,073
Separate
2006
2,596
(344)
2,252
2007
2,252
(1,179)
1,073
2006
2,374
(122)
2,252
4.7 Classified Assets
The Bank and subsidiaries have classified assets according to the guidelines of the BOT as at December 31, 2007 and 2006 as
follows:
Unit : Million Baht
Consolidated
2007
Loans and
accrued
interest
receivables
Normal
Loans to
financial
institutions and accrued
interest
receivables
Investments
Property
foreclosed
Other assets
Total
801,182
25,412
-
-
5
826,599
14,742
-
-
-
1
14,743
Substandard
7,452
-
-
-
1
7,453
Doubtful
8,089
-
-
-
3
8,092
38,881
-
7,344
1,236
676
48,137
870,346
25,412
7,344
1,236
686
905,024
Special Mention
Doubtful loss
Unit : Million Baht
Consolidated
2006
Loans and
accrued
interest
receivables
Normal
Loans to
financial
interest
receivables
Investments
Property
foreclosed
Other assets
Total
677,596
3,730
-
-
10
681,336
12,705
-
-
-
1
12,706
6,784
-
-
-
1
6,785
Doubtful
11,042
-
-
-
3
11,045
Doubtful loss
41,961
-
6,893
2,532
830
52,216
750,088
3,730
6,893
2,532
845
764,088
Special Mention
Substandard
Unit : Million Baht
Separate
2007
Loans and
accrued
interest
receivables
Normal
Loans to
financial
interest
receivables
Investments
Property
foreclosed
Other assets
Total
748,890
24,258
-
-
5
773,153
10,044
-
-
-
1
10,045
Substandard
6,543
-
-
-
1
6,544
Doubtful
7,615
-
-
-
3
7,618
33,489
-
7,181
1,128
671
42,469
806,581
24,258
7,181
1,128
681
839,829
Special Mention
Doubtful loss
Unit : Million Baht
Separate
2006
Loans and
accrued
interest
receivables
Loans to
financial
interest
receivables
Investments
Property
foreclosed
Other assets
Total
634,907
3,730
-
-
10
638,647
Special Mention
9,354
-
-
-
1
9,355
Substandard
5,852
-
-
-
1
5,853
Doubtful
10,698
-
-
-
3
10,701
Doubtful loss
36,558
-
6,714
2,373
825
46,470
697,369
3,730
6,714
2,373
840
711,026
Normal
4.8 Properties Foreclosed
As at December 31, 2007 and 2006, properties foreclosed consist of the following:
Unit: Million Baht
Consolidated
2007
Beginning
balance
Additions
Disposals
Others
Ending
Balance
Foreclosed assets
Immovable assets
20,268
1,944
(3,894)
-
18,318
499
1,469
(1,462)
-
506
415
1,297
(1,329)
-
383
Total properties foreclosed
21,182
4,710
(6,685)
-
19,207
Less Allowance for impairment of assets
(2,431)
-
(2,264)
Total properties foreclosed - net
18,751
-
16,943
Movable assets
Others
13
154
4,723
(6,531)
Unit: Million Baht
Consolidated
2006
Beginning
balance
Additions
Disposals
Others
Ending
Balance
Foreclosed assets
Immovable assets
Movable assets
Others
18,981
3,119
(1,892)
60
20,268
-
1,419
(1,107)
187
499
1,084
2,484
(3,153)
-
415
20,065
7,022
(6,152)
247
21,182
(2,418)
17,647
-
8
7,022
(6,144)
(21)
(2,431)
226
18,751
Unit: Million Baht
Separate
2007
Beginning
balance
Additions
Disposals
Ending
Balance
Foreclosed assets
Immovable assets
Others
20,092
1,944
(3,830)
18,206
415
1,297
(1,329)
383
20,507
3,241
(5,159)
18,589
(2,408)
18,099
14
3,255
154
(5,005)
(2,240)
16,349
Unit: Million Baht
Separate
2006
Beginning
balance
Additions
Disposals
Ending
Balance
Foreclosed assets
Immovable assets
Others
18,853
3,114
(1,875)
20,092
1,084
2,484
(3,153)
415
19,937
5,598
(5,028)
20,507
(2,415)
-
17,522
5,598
7
(2,408)
(5,021)
18,099
Gain (Loss) on sales of property foreclosed recognized in the consolidated statements of income for the years ended December
31, 2007 and 2006 are losses of Baht 320 million and Baht 47 million, respectively and for the separate statements of income are
gains of Baht 310 million and Baht 233 million, respectively.
4.9 Premises and Equipment Premises and equipment as at December 31, 2007 and 2006 consist of the following:
Consolidated
Unit : Million Baht
2007
Cost
Accumulated depreciation
Beginning Additions Disposals Other Ending Beginning Depreciat Disposals Other Ending
balance
balance balance
ion balance
Land
Cost
Appraisal increase
(year 2005)
Premises
Cost
Appraisal increase
(year 2005)
Equipment
Others
Total
Net -
Premises and
equipment
4,677
2
-
(4)
4,675
-
-
-
-
-
5,783
-
-
-
5,783
-
-
-
-
-
-
5,783
11,765
355
(12)
5,699
-
13,233
1,916
(1,342)
85
-
(71)
41,242
2,273
(1,425)
Depreciation for the years ended Allowance
for
impairment
of assets
-
(9)
(400)
12,099
(5,397)
(307)
-
7
(5,697)
(170)
4,275
6,232
-
5,699
(179)
(160)
-
-
(339)
-
5,360
(6)
13,801
(8,184)
(1,709)
827
62
(9,004)
-
4,797
-
-
-
16
827
69
2
(17)
16
42,073
-
(13,760)
-
(2,176)
-
(15,040)
(570)
26,463
- December 31, 2007
2,176
- December 31, 2006
1,900
Unit : Million Baht
Separate
2007
Cost
Accumulated depreciation
Allowance
for
impairment
of assets
Beginning Additions Disposals Other Ending Beginning Depreciat Disposals Other Ending
balance
balance balance
ion balance
Land
Cost
Net -
Premises and
equipment
4,305
2
-
-
4,307
-
-
-
-
-
(400)
3,907
5,783
-
-
-
5,783
-
-
-
-
-
10,809
311
(1)
(1)
11,118
(4,959)
(265)
-
1
(5,223)
5,699
-
-
-
5,699
(179)
(160)
-
-
(339)
-
5,360
12,072
1,807
(1,187)
(5)
12,687
(7,414)
(1,557)
702
61
(8,208)
-
4,479
85
-
(71)
-
-
-
16
Appraisal increase
(year 2005)
-
5,783
Premises
Cost
(170)
5,725
Appraisal increase
(year 2005)
Equipment
Others
Total
38,753
2,120
(1,259)
Depreciation for the years ended 2
16
(4)
-
39,610
-
(12,552)
(1,982)
702
-
62
(13,770)
(570)
25,270
- December 31, 2007
1,982
- December 31, 2006
1,714
4.10 Assets Pending Transfer
Assets pending transfer as at December 31, 2007 and 2006 consist of the following:
Unit: Million Baht
Consolidated
2007
2006
2007
2006
Sundry receivables
1,160
610
1,160
606
Others
3,574
1,118
2,896
367
4,734
1,728
4,056
973
Total
Separate
4.11 Other Assets
Other assets as at December 31, 2007 and 2006 consist of the following:
Unit: Million Baht
Consolidated
2007
Derivative revaluation
Separate
2006
2007
2006
691
1,959
691
1,959
Collateral per Credit Support Annex
2,478
1,378
2,478
1,378
Accrued interest on investment
1,183
890
1,154
863
110
178
108
177
663
694
545
570
Software license - net
1,646
1,473
1,589
1,430
Net inter-account balance
1,449
1,270
1,449
1,270
712
820
-
-
4,003
3,591
1,705
1,402
12,935
12,253
9,719
9,049
Customer insurance premium and legal
deposits with court
Leasehold - net
Securities business receivables
Others
Total
4.12 Deposits
4.12.1 Classified by Product as at December 31, 2007 and 2006 :
Unit: Million Baht
Consolidated
2007
Separate
2006
2007
2006
Demand
38,034
33,922
40,764
33,596
Savings
383,921
324,783
380,734
322,532
229,666
187,242
229,217
187,176
76,709
108,540
76,676
108,361
121,899
137,594
121,943
137,562
850,229
792,081
849,334
789,227
Fixed
- Less than 6 months
- 6 months and up to 1 year
- Over 1 year
Total
4.12.2 Classified by Maturity as at December 31, 2007 and 2006 :
Unit: Million Baht
Consolidated
2007
Separate
2006
2007
2006
Up to 1 year*
837,448
773,075
836,502
770,220
Over 1 year
12,781
19,006
12,832
19,007
850,229
792,081
849,334
789,227
Total
* Including past-due agreements
4.12.3 Classified by Currency and Residence of Customer as at December 31, 2007 and 2006 :
Unit: Million Baht
Consolidated
2007
Domestic
2006
Foreign
Total
Domestic
Foreign
Total
Baht
832,670
278
832,948
776,808
330
777,138
USD
7,022
8,430
15,452
7,362
6,528
13,890
480
1,349
1,829
693
360
1,053
840,172
10,057
850,229
784,863
7,218
792,081
Others
Total
Unit: Million Baht
Separate
2007
Domestic
2006
Foreign
Total
Domestic
Foreign
Total
Baht
836,304
219
836,523
777,656
304
777,960
USD
7,082
3,922
11,004
7,409
2,849
10,258
481
1,326
1,807
695
314
1,009
843,867
5,467
849,334
785,760
3,467
789,227
Others
Total
4.13 Interbank and Money Market Items (Liabilities)
Interbank and money market items (liabilities) as at December 31, 2007 and 2006 consist of the following:
Unit: Million Baht
Consolidated
2007
Domestic
2006
Time
Total
Domestic
Time
Total
Domestic items :
Bank of Thailand and Financial
Institutions Development Fund
Commercial banks
Other banks
-
9,912
9,912
-
10,872
10,872
4,944
8,805
13,749
10,337
5,066
15,403
36
4,600
4,636
39
4,221
4,260
Finance companies, securities companies
7,092
12,137
19,229
4,167
7,435
11,602
and credit foncier companies
2,224
2,098
4,322
1,379
328
1,707
14,296
37,552
51,848
15,922
27,922
43,844
101
439
540
572
-
572
Foreign items :
USD
Others
Total foreign items
437
6
443
321
-
321
538
445
983
893
-
893
14,834
37,997
52,831
16,815
27,922
44,737
Unit: Million Baht
Separate
2007
Domestic
2006
Time
Total
Domestic
Time
Total
Domestic items :
Bank of Thailand and Financial
Institutions Development Fund
Commercial banks
Other banks
-
9,912
9,912
-
10,872
10,872
1,243
169
1,412
650
-
650
36
4,600
4,636
39
4,221
4,260
Finance companies, securities companies
9,392
1,012
10,404
4,366
875
5,241
2,224
2,098
4,322
1,379
328
1,707
12,895
17,791
30,686
6,434
16,296
22,730
USD
227
439
666
572
-
572
Others
437
6
443
321
-
321
664
445
1,109
893
-
893
13,559
18,236
31,795
7,327
16,296
23,623
and credit foncier companies
Foreign items :
Total foreign items
4.14 Borrowings
Borrowings as at December 31, 2007 and 2006 consist of the following :
Unit: Million Baht
Bonds
- Baht
Subordinated bonds
- Baht
Floating Rate Notes
- USD
Structured Notes
- Baht
Bill Receivables
- Baht
Others
Total
Interest rate
%
Year
of
maturity
3.15-6.35
2007-2010
3.50-6.00
2009-2010
LIBOR+0.23
Consolidated
2007
Domestic
2006
Foreign
Total
Domestic
Foreign
Total
49,482
-
49,482
18,642
-
18,642
8,638
-
8,638
8,638
-
8,638
2009
-
10,124
10,124
-
10,819
10,819
Variable
2007-2010
8,139
-
8,139
4,624
-
4,624
2.50-5.20
2007-2010
12,179
-
12,179
1,883
-
1,883
98
-
98
356
-
356
78,536
10,124
88,660
34,143
10,819
44,962
Unit: Million Baht
Interest rate
%
Bonds
- Baht
Year
of
maturity
Separate
2007
Domestic
2006
Foreign
Total
Domestic
Foreign
Total
3.15-5.15
2007-2008
39,672
-
39,672
3,429
-
3,429
3.50-6.00
2009-2010
8,638
-
8,638
8,638
-
8,638
LIBOR+0.23
2009
-
10,124
10,124
-
10,819
10,819
Variable
2007-2010
8,139
-
8,139
4,624
-
4,624
2.50-4.85
2007-2010
1,220
-
1,220
100
-
100
98
-
98
123
-
123
57,767
10,124
67,891
16,914
10,819
27,733
Subordinated bonds
- Baht
Floating Rate Notes
- USD
Structured Notes
- Baht
Bill Receivables
- Baht
Others
Total
As at December 31, 2007, the Bank has several batches of structured notes totaling Baht 8,139 million, repayable during the years
2008-2010, with variable rates linked to reference interest rates and average price of marketable equity securities. (December 31,
2006 : 4,624 million Baht)
4.15 Liabilities Pending Transfer
Liabilities pending transfer as at December 31, 2007 and 2006 consist of the following :
Unit: Million Baht
Consolidated
2007
2007
2006
6,762
4,432
6,762
4,432
Other payables
4,033
648
4,033
647
261
773
245
704
11,056
5,853
11,040
5,783
Total
2006
Pending for payment E-banking
Others
Separate
4.16 Other Liabilities
Other liabilities as at December 31, 2007 and 2006 consist of the following:
Unit: Million Baht
Consolidated
2007
Separate
2006
2007
2006
Accrued expenses
8,100
4,436
7,533
4,067
Other payable-CSA
2,067
572
2,067
572
904
904
904
904
853
898
853
898
Marginal deposit
1,189
642
990
482
Trading transaction with securities companies
1,139
583
-
-
Unearned premium reserve
1,106
670
-
-
Possible loss from Asset Transferred
Agreement with TAMC
Reserve for pension and gratuity
Others
Total
4,845
3,986
1,135
818
20,203
12,691
13,482
7,741
4.17 Preferred Shares The holders of preferred shares have the preferential right to receive a non-cumulative dividend of 5.25% per annum of the issued
price, or Baht 1.37 per share per annum before the dividend payment to ordinary shares. However, there may be some events that
may result in the Bank paying dividends at less than such rate. In any year that the ordinary shareholders are paid dividends at a rate
higher than that paid to the preferred shareholders, the Bank shall pay dividend to the preferred shareholders at a rate equal to the
dividend paid to the ordinary shareholders.
The preferred shares are all convertible preferred shares with the preferential right expiring on May 9, 2009. However, in the event that
the preferred shareholders wish to exercise their convertible rights, it can be done at the end of each quarter prior to the said date. 4.18 Legal Reserve
Under the Public Companies Act, the Bank and its subsidiaries, which are public companies are required to set aside as legal reserve at least
5% of its net income, net of accumulated deficit brought forward (if any), until the reserve is not less than 10% of the registered capital.
According to the Civil and Commercial Code, subsidiaries which are private companies must appropriate to a reserve fund at each
distribution of dividend at least 5% of the profit arising from the business of the company until the reserve fund reaches 10% of the
capital of the company. Such reserve fund is not available for distribution as dividend.
4.19 Dividends
The shareholders’ meeting passed a resolution on April 5, 2007 to pay dividends to both preferred and ordinary shareholders at the
rate of Baht 2.00 per share. The amount of Baht 6,798 million was paid on April 30, 2007.
The shareholders’ meeting passed a resolution on April 4, 2006 to pay dividends to both preferred and ordinary shareholders at the
rate of Baht 3.00 per share. The amount of Baht 10,198 million was paid on April 28, 2006.
4.20 Contingencies Contingencies of the Bank and subsidiaries as at December 31, 2007 and 2006 are as follows:
Unit: Million Baht
Consolidated
2007
Baht
2006
Foreign
Currency
Total
Baht
Foreign
Currency
Total
Avals to bills
2,977
-
2,977
2,160
-
2,160
Guarantees of loans
6,819
1,640
8,459
5
1,735
1,740
759
2,932
3,691
687
3,540
4,227
1,201
14,767
15,968
2,161
9,620
11,781
76,676
6,588
83,264
67,638
6,666
74,304
Bought
55
459,696
459,751
43
242,390
242,433
Sold
10
534,141
534,151
-
359,899
359,899
Letters of credit
Other guarantees
Bought
424,888
56,770
481,658
345,880
40,527
386,407
Sold
425,988
56,770
482,758
345,880
40,527
386,407
Bought
859
357
1,216
755
-
755
Sold
577
76
653
755
-
755
Bought
742
841
1,583
-
-
-
Sold
742
841
1,583
572
-
572
71,854
233
72,087
66,803
281
67,084
-
177
177
1
123
124
1,014,147
1,135,829
2,149,976
833,340
705,308
1,538,648
Equity derivatives
Credit derivatives
Others
Total
Unit: Million Baht
Separate
2007
Baht
2006
Foreign
Currency
Total
Baht
Foreign
Currency
Total
Avals to bills
2,977
-
2,977
2,160
-
2,160
Guarantees of loans
6,819
1,640
8,459
5
1,735
1,740
759
2,932
3,691
687
3,540
4,227
Letters of credit
1,201
14,582
15,783
2,161
9,457
11,618
76,676
6,588
83,264
67,638
6,666
74,304
Bought
55
459,696
459,751
43
242,390
242,433
Sold
10
534,141
534,151
-
359,899
359,899
Bought
424,888
56,770
481,658
345,880
40,527
386,407
Sold
425,988
56,770
482,758
345,880
40,527
386,407
Bought
859
357
1,216
755
-
755
Sold
577
76
653
755
-
755
Bought
742
841
1,583
-
-
-
Sold
742
841
1,583
572
-
572
71,854
1
71,855
66,803
-
66,803
-
7
7
-
19
19
1,014,147
1,135,242
2,149,389
833,339
704,760
1,538,099
Other guarantees
Equity derivatives
Credit derivatives
Others
Total
As at December 31, 2007, the Bank has commitments of Baht 334 million, in connection with finance companies whose operations
were closed down permanently by the Ministry of Finance on December 8, 1997 (December 31, 2006 : Baht 334 million).
On October 12, 2001, the Bank entered into an Asset Transfer Agreement with the Thai Asset Management Corporation
(“TAMC”). Under the agreement, the Bank will transfer sub-quality assets including right over the collateral to TAMC at terms and
conditions specified in the agreement. The price of transferred loans shall equal the value of the collateral, which should not exceed
the book value of such loans. The Bank and TAMC reserve the right to request for reappraisal under specified terms. Once TAMC
and the Bank agree with the price, the Bank will receive a non-negotiable promissory note from TAMC. The note matures in 10
years from the issuing date with the interest rate calculated based on the average rate of deposits. The note is avaled by Financial
Institution Development Fund (see Notes 4.3.1 and 4.4.10). The Bank and TAMC agreed to recognize any profits or losses from the management of the sub-quality assets at the end of the fifth
and the tenth year starting from July 1, 2001. The profits or losses shall be calculated based on all accumulated asset recoveries on a
cash basis up to the date of calculation of such profits or losses less the transfer costs and other operating expenses incurred by
TAMC including all interest paid by TAMC to the Bank. In addition, pursuant to the TAMC Decree B.E. 2544, in case when the
profits are realized, the first portion of the profits, not exceeding 20% of the transfer price of sub-quality assets transferred to TAMC,
will be allocated between TAMC and the Bank. The second portion of the profits will be given to the Bank. The two portions of the
profits combined together shall not exceed the difference between the book value of sub-quality assets and the transfer price of
sub-quality assets transferred to TAMC. All residual amount of profit will be given to TAMC. In the case of losses it will be shared
between TAMC and the Bank. The Bank will take the first portion of losses, not exceeding 20% of the transfer price of sub-quality
assets transferred to TAMC. The residual amount of the first portion of losses, not exceeding 20% of the transfer price of sub-quality
assets transferred to TAMC, will be shared in between TAMC and the Bank. All residual amount of the loss will be absorbed by
TAMC. As at December 31, 2007, the provision for possible loss was set up amounting to Baht 904 million, which was presented in
other liabilities on the balance sheet (December 31, 2006 : Baht 904 million).
5. INFORMATION ON STATEMENT OF INCOME ITEMS
5.1 Interest and Dividend Income
Interest and dividend income included in the statements of income for the years ended December 31, 2007 and 2006 are as follows:
Unit: Million Baht
Consolidated
2007
Separate
2006
2007
2006
“Restated”
Interest income
Loans
44,104
38,467
44,399
38,584
6,738
6,988
6,537
6,713
Hire-purchase and financial lease income
4,625
3,120
-
-
Investments
3,508
2,710
3,350
2,556
Dividend income
Investments
Total
1,471
1,418
2,300
2,765
60,446
52,703
56,586
50,618
5.2 Bad Debt and Doubtful Accounts
Bad debt and doubtful accounts recognized in the consolidated statements of income for the years ended December 31, 2007 and
2006 are Baht 3,570 million and Baht 4,374 million (net of bad debt recovery of Baht 856 Million and Baht 1,032 million) ,
respectively and in the separate statements of income are Baht 3,135 million and Baht 3,973 million (net of bad debt recovery of
Baht 856 million and Baht 1,031 million), respectively (see Note 4.5).
5.3 Loss From Debt Restructuring
Loss from debt restructuring recognized in the consolidated and separate statements of income for the years ended December 31,
2007 and 2006 are Baht 465 million and 2,627 million, respectively (see Note 4.4.9).
5.4 Gains on Investments
Gains (losses) related to investments in securities included in the statements of income for the years ended December 31, 2007 and
2006 are as follows:
Unit: Million Baht
Consolidated
2007
Gains (losses) on revaluation of trading securities
Separate
2006
15
2007
9
(31)
-
-
-
(3)
(295)
47
21
50
- Trading securities
314
380
280
337
- Available-for-sale securities
144
300
97
257
(2)
-
-
1
(72)
42
Gains (losses) on transferring investment portfolios
Reversal of impairment of investment in securities (losses)
(55)
2006
“Restated”
Gains (losses) on sales and redemption of investment in
securities
- Held-to-maturity securities
- General investments
- Investments in subsidiaries and associated companies
Gains on investments
(72)
-
-
-
104
714
335
38
(14)
635
5.5 Directors and Executives’ Benefits
The Bank has not paid benefits to directors and executives other than the benefits that are normally paid such as directors fee,
executive salary, special monthly allowance, bonus and cost of living allowance for executives.
5.6 Earnings Per Share
Earnings per share in the consolidated and separate financial statements for the years ended December 31, 2007 and 2006 are
calculated as follows :
Unit: Million Baht
Consolidated
Net Income
Earning Per Share
Weighted Average
Number of
Common Shares
2007
Million
Baht
2006
Million
Baht
2007
Million
Shares
2006
Million
Shares
Net income before dividend of preferred shares
17,356
13,286
1,897
1,887
Less Dividend of preferred shares
(3,007)
(4,527)
-
-
Net income after dividend of preferred shares
14,349
8,759
1,897
1,887
3,007
4,527
1,502
1,512
17,356
13,286
3,399
3,399
2007
Baht
2006
Baht
Basic earnings per share
7.56
4.64
5.11
3.91
Effect of diluted equivalent ordinary shares
Convertible preferred shares
Diluted earnings per share (Income available to
ordinary shareholders plus assumed conversions
of convertible preferred shares)
Unit: Million Baht
Separate
Net Income
2007
Million
Baht
2006
Million
Baht
“Restated’
Earning Per Share
Weighted Average
Number of
Common Shares
2007
Million
Shares
2006
Million
Shares
1,897
1,887
2007
Baht
2006
Baht
“Restated’
Basic earnings per share
Net income before dividend of preferred shares
16,637
12,760
Less Dividend of preferred shares
(3,007)
(4,527)
-
-
Net income after dividend of preferred shares
13,630
8,233
1,897
1,887
3,007
4,527
1,502
1,512
16,637
12,760
3,399
3,399
7.19
4.36
4.89
3.75
Effect of diluted equivalent ordinary shares
Convertible preferred shares
Diluted earnings per share (Income available to
ordinary shareholders plus assumed conversions
of convertible preferred shares)
6. INFORMATION ON CASH FLOWS STATEMENTS
6.1 Cash Paid for Interest and Income Tax
Cash paid for interest and income tax for the years ended December 31, 2007 and 2006 are as follows:
Unit: Million Baht
Interest
Corporate income tax
Consolidated
2007
Separate
2006
2007
2006
23,116
15,878
21,197
14,522
4,798
3,530
4,297
2,802
6.2 Non-Cash Items
Non-cash items for the years ended December 31, 2007 and 2006 are as follows:
Unit: Million Baht
Consolidated
2007
Separate
2006
2007
2006
“Restated”
Increase (decrease) in unrealized gain from securities
valuation - presented as part of shareholders’ equity
933
(1,201)
829
(951)
62
1,009
62
1,009
24
395
24
395
3,412
4,538
1,943
3,113
- General securities
-
120
-
120
- Subsidiaries and associated companies’
-
13
-
13
160
179
160
179
Conversion of convertible preferred shares into
ordinary shares
Transfer of premium on preferred shares into premium
on ordinary shares
Property foreclosed acquired from debt settlement
Investment in securities received from
debt restructuring process
securities
Unrealized increment per premises appraisal directly
transferred to retained earnings
Decrease in revaluation surplus on land appraisal
presented as part of shareholders’ equity
-
(6)
-
(6)
(142)
(160)
(142)
Decrease in revaluation surplus on premises appraisal
presented as part of shareholders’ equity
(160)
7. SUPPLEMENTARY DISCLOSURES REQUIRED BY ACCOUNTING STANDARDS AND REGULATORS
7.1 Capital Funds
The Bank and its subsidiaries, which are financial institutions, are subject to various capital and regulatory requirements of the BOT.
Under these capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank and the subsidiaries
must satisfy specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities and certain off-balance-sheet
items as calculated in accordance with regulatory accounting practices. The Bank’s and the subsidiaries’ capital amounts and
classification are also subject to qualitative judgments by the BOT as to components, risk weightings, and other factors. These
capital and regulatory requirements are subject to change, as considered necessary by the BOT.
The Bank maintains its capital funds as a proportion of risk assets in accordance with the criteria, methodologies, and conditions
prescribed by the Bank of Thailand. As at December 31, 2007 and 2006, the Bank’s total capital funds can be categorized as follows : 154 Annual Report 2007
Unit: Million Baht
Separate
2007
2006
Tier 1 capital
Issued and paid-up share capital
33,992
33,992
Premium on share capital
11,124
11,124
3,156
2,492
35,436
31,308
83,708
78,916
Revaluation surplus on land and premises appraisal
6,728
6,809
Revaluation surplus on investment in equity securities
1,025
970
Subordinated bonds
2,298
4,025
Legal reserve
Net gain after appropriations
Total Tier 1 capital
Tier 2 capital
Allowance for classified assets of “normal” category and excess allowance
Total Tier 2 Capital
Total Capital Funds
9,878
8,623
19,929
20,427
103,637
99,343
721,821
639,477
Risk assets :
On-balance sheet items
Off-balance sheet items
Total risk assets
50,373
689,850
Total Capital / Total Risk Assets
(minimum 8.50%)
13.1%
14.4%
Total Tier 1 capital / Total Risk Assets
(minimum 4.25%)
10.6%
11.4%
2.5%
3.0%
Total Tier 2 capital / Total Risk Assets
68,390
790,211
7.2 The Financial Sector Master Plan
On January 23, 2004, the Ministry of Finance issued the notification detailing terms, conditions and procedures for applying for a
new bank license (“The Financial Sector Master Plan”). The notification detailed the operational structure of financial institutions
which would result in having only commercial banks being able to accept public deposits. The Bank sold the shares in Book Club
Finance PCL, its subsidiary, to the third party. For Siam Industrial Credit PCL, its associated company, the Ministry of Finance
disapproved the set up as a retail bank. The ultimate effect of the plan to the operations of such associated company cannot be
presently determined. 7.3 Related-Party Transactions
The Bank has business transactions with related parties or persons. Interest rate of staff loans under the staff welfare scheme is
charged in accordance with the Bank’s regulations for such loans. Interest rate and other pricing for other related parties are at the
same rate as in the normal course of business with the same business condition as general customers. The transactions with related
parties or persons are as follows: Siam Commercial Bank Public Company Limited 155
7.3.1 Loans, Deposits and Contingencies
Loans, deposits and contingencies to related parties or persons as at December 31, 2007 and 2006 are summarized as follows:
(See Note 7.8)
Unit: Million Baht
Consolidated
2007
2006
Loans
Deposits
Contingencies
Loans
Deposits
Contingencies
1,215
1,062
1,425
1,143
507
1,569
Related Companies
- 10 % to 20 % Ownership
11
172
2
105
133
5
- Shareholding through debt
restructuring process
2,931
229
480
3,151
164
776
- Shareholding through other
companies’ debt
242
6
291
160
7
Major shareholder (10 % to
20 % Ownership)
965
572
2
Subsidiaries and associated
companies of major
shareholder (which are not
included in the above lists)
261
721
62
431
635
67
Companies owned / controlled by the
Bank’s directors / management
10
619
535
11
262
53
Officers from departmental
managers upward
139
813
1
139
752
1
Total
4,567
4,823
2,511
5,271
3,185
2,480
Subsidiaries
Related Companies
- 10 % to 20 % Ownership
- Shareholding through debt
- Shareholding through other
companies’ debt
Major shareholder (10 % to
20 % Ownership)
Subsidiaries and associated
companies of major
shareholder (which are not
included in the above lists)
Companies owned / controlled by the
Bank’s directors / management
Officers from departmental
managers upward
Total
Unit: Million Baht
Separate
Loans
21,758
1,215
2007
Deposits
4,039
987
Contingencies
7,131
1,425
Loans
9,525
47
2006
Deposits
1,219
457
Contingencies
28
1,569
11
172
2
105
133
5
2,931
229
480
3,151
164
776
-
242
6
291
160
7
-
965
-
-
572
2
261
721
62
431
635
67
10
619
535
11
262
53
139
26,325
813
8,787
1
9,642
139
13,700
752
4,354
1
2,508
7.3.2 Investments
Investments in subsidiaries and associated companies as at December 31, 2007 and 2006 are described in Note 4.3.6. Investments in related companies in which the Bank and subsidiaries are the shareholders and/or management are directors
as at December 31, 2007 and 2006 are as follows:
Unit: Million Baht
2007
Company
10 % to 20 % Ownership
Services
Siam Technology Service Co., Ltd.
Nippon Koa Insurance Broker (Thailand)
Co., Ltd.
Siam Cosmos Service Co., Ltd
Premus (Thailand) Co., Ltd.
National ITMX Co., Ltd.
Real Estate
Thai Obayashi Corp., Ltd.
Others
Navuti Co., Ltd.
Thai U.S. Leather Co., Ltd.
Siam Cement Myanmar Trading Ltd.
(Myanmar)
International Trader Co., Ltd.
Shareholding through debt restructuring
process
Sri U Thong Co., Ltd.
Fuel Pipeline Transportation Co., Ltd.
SG Land Co., Ltd.
Manasika Co., Ltd.
Thai Mercantile Marine Ltd.
Shareholding through other companies’
Siam Media & Communication Co., Ltd.
Donmuang International Airport Hotel
Co., Ltd
Nawa 84 Co., Ltd.
Total
Type of
Business
IT. Consultancy
Insurance Broker
Paid-up
Capital
Consolidated
Separate
Net
Share
Holding Investment
(%)
Net
Share
Holding Investment
(%)
30
10.0
-
10.0
-
Insurance Broker
Building
Management
Other business
activities n.e.c.
4
6
20.0
19.2
1
3
-
-
13
10.0
1
10.0
1
50
16.5
6
16.5
6
Construction
10
10.0
62
10.0
62
60
15
194
10.0
10.0
10.0
-
10.0
10.0
10.0
-
Agriculture
Holding
Industry
Commerce
Agriculture
KYAT
1
20
10.0
10.0
2
10.0
-
-
Construction
Transportation
Industry
Real Estate
Real Estate
Industry
Real Estate
Real Estate
Transportation
Others Finance
1,065
1,592
905
15
100
108
500
120
150
8,000
41.7
16.7
31.3
59.1
99.7
58.8
97.6
100.0
41.1
23.1
89
120
191
41.7
16.7
31.3
59.1
99.7
58.8
97.6
100.0
41.1
22.9
89
120
191
Others
Holding
700
25.0
33.3
-
25.0
33.3
-
Hotel
Holding
120
1,203
17.0
25.0
20
137
632
17.0
25.0
20
137
626
KYAT = KYAT Currency Siam Commercial Bank Public Company Limited 157
Unit: Million Baht
2006
Company
Type of
Business
Paid-up
Capital
Consolidated
Separate
Net
Share
Holding Investment
(%)
Net
Share
Holding Investment
(%)
10 % to 20 % Ownership
Services
Siam Technology Service Co., Ltd.
IT. Consultancy
Nippon Koa Insurance Broker (Thailand)
Insurance Broker
30
10.0
-
10.0
-
4
20.0
1
-
-
6
19.2
3
-
-
13
10.0
1
10.0
1
Construction
10
10.0
62
10.0
62
Navuti Co., Ltd.
Agriculture
60
10.0
-
10.0
-
Holding
15
10.0
-
10.0
-
Thai U.S. Leather Co., Ltd.
Industry
194
10.0
-
10.0
-
1
10.0
-
10.0
-
20
10.0
2
-
-
Co., Ltd.
Siam Cosmos Service Co., Ltd
Insurance Broker
Premus (Thailand) Co., Ltd.
Building
Management
Real Estate
Thai Obayashi Corp., Ltd.
Others
Siam Cement Myanmar Trading Ltd.
(Myanmar)
Commerce
International Trader Co., Ltd.
Agriculture
KYAT
Shareholding through debt restructuring
process
Construction
1,065
41.7
-
41.7
-
Transportation
1,592
16.7
-
16.7
-
Industry
905
31.3
-
31.3
-
Real Estate
15
70.2
-
70.2
-
SG Land Co., Ltd.
Real Estate
100
99.7
89
99.7
89
Industry
108
58.8
-
58.8
-
Real Estate
500
97.6
-
97.6
-
Manasika Co., Ltd.
Real Estate
120
100.0
120
100.0
120
Thai Mercantile Marine Ltd.
Transportation
150
41.1
-
41.1
-
Others Finance
8,000
23.1
151
22.9
151
Assets rental
-
20.8
-
20.8
-
Others
-
25.0
-
25.0
-
700
33.3
-
33.3
-
120
17.0
82
17.0
82
1,203
25.0
137
25.0
137
Shareholding through other companies’
CBNP (Thailand) Ltd.
Siam Media & Communication Co., Ltd.
Donmuang International Airport Hotel
Co., Ltd
Nawa 84 Co., Ltd.
Total
KYAT = KYAT Currency 158 Annual Report 2007
Holding
Hotel
Holding
648
642
7.3.3 Income and Expenses
Income and expenses between the Bank and subsidiaries, associated companies and related companies for the years ended
December 31, 2007 and 2006 are as follows:
Unit: Million Baht
Consolidated
2007
Income
2006
Expenses
Income
Expenses
Interest
Other
Interest
Other
Interest
Other
Interest
Other
4
2,491
4
99
7
1,712
2
54
Major shareholder
-
-
14
15
-
-
50
15
Unit: Million Baht
Separate
2007
Income
Interest
Subsidiaries
2006
Expenses
Income
Other
Interest
Other
Interest
Expenses
Other
Interest
Other
514
1,189
42
476
398
732
9
447
2
2,458
3
62
2
1,708
2
42
Major shareholder
-
-
14
15
-
-
50
15
On May 10, 1999, the Ministry of Finance became the major shareholder of the Bank holding 38.8% of paid-up capital
according to the August 14, 1999 - financial institution’s capital support program. Other shareholders had the rights to
purchase the shares from the Ministry of Finance. The Bank invested Baht 32,500 million received from the Ministry of
Finance following the capital increment in government bonds and recorded these as held-to-maturity investments. On
December 1, 2003, the Ministry of Finance had transferred approximately 24.8 % of paid-up capital to Vayupak I Fund (“the
Fund”). On January 21, 2005, Ministry of Finance sold 12.3% of the Bank’s paid-up capital to the Crown Property Bureau.
Other transactions, if any, among the Bank and the Ministry of Finance and any other government agencies and the Fund
arose from normal banking activities, which did not relate to the shareholding.
7.3.4 Sales of loans to Chatuchak Asset Management Co., Ltd.
For the year ended December 31, 2007, the Bank sold loans and receivables of Baht 680 million to Chatuchak Asset
Management Co., Ltd. at book value of Baht 312 million and during the year ended December 31, 2005, the bank sold loans
and receivables of Baht 5,342 million to Chatuchak Asset Management Co., Ltd. at book value of Baht 1,513 million which, as
at December 31, 2007, the net book value remains at Baht 1,350 million.
7.4 Disclosure of The Statements of Cash Flows of The Asset Management Company (“AMC”)
In accordance with the BOT’s letter number Sor Nor Sor Wor 53/2543 dated January 7, 2000, relating to the operation regulation of
the asset management company (“AMC”), the Bank is required to disclose the statements of cash flows of the AMC in the notes to
the financial statements. The statements of cash flows of Chatuchak Asset Management Co., Ltd. are as follows:
Chatuchak Asset Management Co., Ltd.
Statements of Cash flows
For the years ended December 31, 2007 and 2006
Unit: Million Baht
2007
Cash flows from operating activities
Net income
Items to reconcile net income to net cash received (paid) from operating activities :
2006
38
171
Bad debt and doubtful accounts (reversal)
17
(54)
Gain on sales of available-for-sale securities
(1)
(9)
-
(1)
8
9
26
-
Reversal of loss from diminution in value of property foreclosed
Provision for sales of loans to TAMC
Loss from adjustment of selling price of loans sold to TAMC
Amortization of discount on investment
Increase in accrued interest receivables Decrease in other accrued expense
Income from operations before changes in operating assets and liabilities
Operating assets (increase) decrease
Investment in receivables
Loans
Property foreclosed
Other assets
Operating liabilities increase (decrease)
Other liabilities
(44)
-
Proceeds from sales and maturity of available-for-sale securities
Net cash provided by (used in) investing activities
(9)
6
5
50
76
(226)
415
7
25
3
7
(4)
3
-
-
(170)
526
Cash flows from investing activities
Purchases of available-for-sale securities
(36)
(18,077)
(6,057)
21,206
5,757
3,129
(300)
Net increase in cash and cash equivalents
2,959
226
Cash and cash equivalents as at January 1,
247
21
3,206
247
Cash and cash equivalents as at December 31,
7.5 Long-Term Leases and Service Agreements
The remaining rental and service expenses to be paid for long-term leases and service agreements as at December 31, 2007 and 2006
are as follows:
Unit: Million Baht
Type of Lease
Land and/or Premises
Equipment
Vehicles
Consolidated
Period
2007
Within 1 year
1 - 5 years
Over 5 years
Within 1 year
1 - 5 years
Within 1 year
1 - 5 years
Separate
2006
824
885
212
418
525
221
446
552
898
183
416
948
199
568
2007
2006
657
626
186
416
522
195
418
388
566
161
402
938
183
538
7.6 Segment Reporting
The significant financial position and the results of operations classified into domestic and foreign operations are shown below.
7.6.1 As at December 31, 2007 and 2006, the financial position classified by domestic and foreign operations are as follows:
Total assets
Interbank and money market items (Assets)
Investment-net
Loans
Deposits
Interbank and money market items (Liabilities)
Borrowings
Contingencies
Unit: Million Baht
2007
Domestic
Foreign
operations operations
1,142,242
38,226
122,502
856,945
840,664
52,192
78,536
2,137,658
23,326
72,634
6,138
11,230
9,565
639
10,124
12,318
Consolidated
Total
1,165,568
110,860
128,640
868,175
850,229
52,831
88,660
2,149,976
2006
Domestic
Foreign
1,014,113
15,341
95,955
737,737
787,237
44,720
34,143
1,536,519
17,483
118,549
1,002
9,900
4,844
17
10,819
2,129
Total
1,031,596
133,890
96,957
747,637
792,081
44,737
44,962
1,538,648
Total assets
Interbank and money market items (Assets)
Investment-net
Loans
Deposits
Interbank and money market items (Liabilities)
Borrowings
Contingencies
Unit: Million Baht
2007
Domestic
Foreign
1,094,870
36,390
140,331
794,587
844,360
31,156
57,767
2,137,658
17,954
68,994
6,136
9,861
4,974
639
10,124
11,731
Separate
Total
1,112,824
105,384
146,467
804,448
849,334
31,795
67,891
2,149,389
2006
“Restated”
Domestic
Foreign
969,601
13,575
106,152
686,052
787,807
23,606
16,914
1,536,400
13,024
115,362
1,000
8,881
1,420
17
10,819
1,699
Total
982,625
128,937
107,152
694,933
789,227
23,623
27,733
1,538,099
7.6.2 The results of operations classified by domestic and foreign operations for the years ended December 31, 2007 and 2006 are as
follows:
Unit: Million Baht
Consolidated
2007
Domestic
operations
Interest and dividend income
2006
Foreign
Elimination Total
operations
59,719
7,572
(6,846)
(6,846)
Domestic
operations
60,445
Foreign
Elimination Total
operations
52,110
6,538
(5,945)
(5,945)
52,703
Interest expenses
21,084
7,030
21,268
19,994
6,085
Net interest income
38,635
542
-
39,177
32,116
453
-
32,569
20,134
Non-interest income
22,636
166
-
22,802
19,455
240
-
19,695
Non-interest expenses
36,870
195
-
37,065
34,248
313
-
34,561
Income before income tax
24,401
513
-
24,914
17,323
380
-
17,703
Unit: Million Baht
Separate
2007
Domestic
operations
2006
Foreign
Elimination Total
operations
Domestic
operations
Foreign
Elimination Total
operations
Interest and dividend income
56,085
7,347
(6,846)
56,586
50,213
6,350
(5,945)
50,618
Interest expenses
19,274
7,000
(6,846)
19,428
18,610
6,059
(5,945)
18,724
Net interest income
36,811
347
37,158
31,603
291
-
-
31,894
Non-interest income
17,018
72
-
17,090
14,453
139
-
14,592
Non-interest expenses
30,755
164
-
30,919
29,971
258
-
30,229
Income before income tax
23,074
255
-
23,329
16,085
172
-
16,257
7.7 Disclosure of Financial Instrument Information
7.7.1 Credit Risk
Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in a financial loss to the Bank
and subsidiaries. The Bank and subsidiaries have adopted the policy of dealing with only creditworthy counterparty and
obtaining sufficient collateral or other security where appropriate, as a mean to mitigating the risk of financial losses from
defaults.
In case of recognized financial assets, the carrying amount of the assets recorded in the consolidated balance sheet, net of any
applicable provision for loss, represents the Bank’s maximum exposure to credit risk.
The Bank has a credit risk in case counterparties do not adhere to the terms of the financial contract. Credit risk also arises from the possibility that the counterparty to a derivative financial instrument will not adhere to the
terms of the contract with the Bank when settlement becomes due.
Concentrations of credit risk are limited due to the large number and diversifications of customers.
7.7.2 Interest Rate Risk
Interest rate risk arises from the change in interest rates which will affect the net interest earnings in the current reporting
period and in the future. Interest rate risk arises from the structure and characteristics of the Bank’s assets, liabilities and
equity.
The Bank uses various derivative transactions to manage its own asset and liability positions in order to manage interest rate
exposure. The use of derivative transactions is in accordance with the policies and guidelines from the Board of Directors and
is under the control of the Assets and Liabilities Committee (ALCO).
Significant financial assets and liabilities as at December 31, 2007 and 2006 can be repriced as follows:
Reprice
on demand
Financial assets
Cash
Investments in securities-net
Loans (included interbank
and money market item)
Total financial assets
Financial liabilities
Deposits (included interbank
Borrowings
Total financial liabilities
Difference
Reprice
Non
Non
Total
Reprice within
Over 5 Performing
Interest
1-3
3 - 12
1-5
years
Loans
bearing
months months
years
-
-
-
-
-
-
21,460
21,460
-
5,265
11,609
34,282
25,718
-
51,766
128,640
559,903
559,903
193,058
198,323
62,703
74,312
82,017
116,299
15,984
41,702
54,208
54,208
10,529
83,755
978,402
1,128,502
371,053
-
371,053
188,850
346,845
53,079
399,924
(201,601)
128,843
29,048
157,891
(83,579)
15,773
6,533
22,306
93,993
654
-
654
41,048
-
-
-
54,208
39,892
-
39,892
43,863
903,060
88,660
991,720
136,782
Reprice
on demand
Financial assets
Cash
Securities purchased under
resale agreements
Borrowings
Difference
Unit: Million Baht
Consolidated
2007
Reprice within
Unit: Million Baht
Consolidated
2006
Reprice
Over 5
years
1-5
years
Non
Performing
Loans
Non
Interest
bearing
Total
1-3
months
3 - 12
months
-
9,300
-
-
-
-
19,731
-
19,731
9,300
-
6,973
1,235
37,144
12,879
-
38,726
96,957
477,000
477,000
215,203
231,476
59,694
60,929
57,558
94,702
10,537
23,416
59,343
59,343
1,686
60,143
881,021
1,007,009
329,277
329,277
147,723
302,446
14,339
316,785
(85,309)
145,888
2,439
148,327
(87,398)
22,615
28,184
50,799
43,903
400
400
23,016
59,343
36,192
36,192
23,951
836,818
44,962
881,780
125,229
Unit: Million Baht
Separate
2007
Reprice
on demand
Financial assets
1-3
months
3 - 12
months
1-5
years
Non
Performing
Loans
Non
Interest
bearing
Total
Cash
-
-
-
-
-
-
21,235
21,235
-
4,557
10,869
33,517
25,722
-
71,802
146,467
585,735
189,630
60,374
10,441
6,165
47,460
9,408
909,213
585,735
194,187
71,243
43,958
31,887
47,460
391,203
307,963
125,118
12,986
654
-
43,205
881,129
-
44,480
21,378
2,033
-
-
-
67,891
391,203
352,443
146,496
15,019
654
-
43,205
949,020
194,532 (158,256)
(75,253)
28,939
31,233
47,460
59,240
127,895
Loans (included interbank and money market item)
Deposits (included
interbank and money market item)
Borrowings
Difference
Reprice
Over 5
years
Reprice within
102,445 1,076,915
Unit: Million Baht
Separate
December 31, 2006
“Restated”
Reprice
on demand
Reprice
Over 5
years
Reprice within
1-3
months
3 - 12
months
1-5
years
Non
Performing
Loans
Non
Interest
bearing
Total
Financial assets
Cash
-
-
-
-
-
-
19,531
19,531
resale agreements
-
9,300
-
-
-
-
-
9,300
-
1,449
851
35,920
12,836
-
56,096
107,152
490,065
211,481
56,711
7,546
4,726
52,690
159
823,378
490,065
222,230
57,562
43,466
17,562
52,690
75,786
959,361
326,648
293,207
137,374
19,028
400
-
36,193
812,850
-
6,280
79
21,374
-
-
-
27,733
326,648
299,487
137,453
40,402
400
-
36,193
840,583
163,417
(77,257)
(79,891)
3,064
17,162
52,690
39,593
118,778
Borrowings
Difference
Effective interest rate of financial instruments which are repriced within 1 year is not significantly different from market rates.
Effective interest rate of financial instruments which are repriced over 1 year is not significantly different from the average interest
rate of this financial year.
7.7.3 Interest Earning and Interest Bearing Financial Instruments are as follows :
Unit: Million Baht
Consolidated
2007
Average
Interbank and money market item (Assets)
Interest
2006
Average
Interest
Rate
%
Average
Interest
Average
Interest
Rate
%
136,386
6,710
4.9
139,111
6,119
4.4
1,167
29
2.5
16,312
870
5.3
Investment in securities
126,746
4,979
3.9
96,934
4,128
4.3
Loans
754,263
44,693
5.9
500,201
34,586
6.9
Deposits and interbank and money market item
(Liabilities)
872,886
18,626
2.1
787,288
17,542
2.2
4,095
97
2.4
708
38
5.4
70,567
2,545
3.6
61,924
2,553
4.1
Borrowings
Unit: Million Baht
Separate
2007
2006
“Restated”
Average
Interest
Average
Interest
Rate
%
Average
Interest
133,038
6,508
4.9
132,414
5,843
4.4
1,167
29
2.5
16,312
870
5.3
135,045
5,650
4.2
107,352
5,321
5.0
Loans
680,100
40,799
6.0
597,768
31,984
5.4
Deposits and interbank and money market item
(Liabilities)
841,943
17,434
2.1
770,682
16,933
2.2
4,095
97
2.4
708
38
5.4
48,249
1,897
3.9
34,877
1,753
5.0
Interbank and money market item (Assets)
Borrowings
Average
Interest
Rate
%
7.7.4 Liquidity Risk
Liquidity risk is the risk that the Bank may not be able to meet its obligations as they fall due, because of inabilities to realize
assets or to cover funding requirements at an appropriate price, thus resulting in losses to the Bank.
The Bank’s policy is to minimize liquidity risk whilst maximizing investment returns. The Assets and Liabilities Committee
(ALCO) monitors and reviews the liquidity position on a regular basis.
Financial assets and liabilities as at December 31, 2007 and 2006 are classified according to their contractual maturity as
follows:
Unit: Million Baht
Consolidated
2007
Maturity on demand
Maturity within
1-3
months
3 - 12
months
1-5
years
Maturity
Over 5 years
No
maturity
Total
Financial assets
Cash
-
-
-
-
-
21,460
21,460
-
22,661
15,752
43,798
25,745
20,684
128,640
and money market item)*
65,094
287,263
148,585
257,969
217,806
1,685
978,402
65,094
309,924
164,337
301,767
243,551
43,829
1,128,502
436,081
321,486
129,064
15,775
654
-
903,060
-
50,857
12,508
25,295
-
-
88,660
436,081
372,343
141,572
41,070
654
-
991,720
(370,987)
(62,419)
22,765
260,697
242,897
43,829
136,782
Borrowings
Net liquidity gap
* Including non-performing loans
Unit: Million Baht
Consolidated
2006
Maturity on demand
Financial assets
Maturity within
1-3
months
3 - 12
months
1-5
years
Maturity
Over 5 years
No
maturity
Total
Cash
-
-
-
-
-
19,731
19,731
resale agreements
-
9,300
-
-
-
-
9,300
-
11,332
9,814
42,537
15,092
18,182
96,957
77,018
263,904
122,789
205,177
210,896
1,237
881,021
77,018
284,536
132,603
247,714
225,988
39,150
1,007,009
367,754
300,349
145,696
22,619
400
-
836,818
Deposits (included interbank and money market item)
Borrowings
Net liquidity gap
-
14,339
2,439
28,184
-
-
44,962
367,754
314,688
148,135
50,803
400
-
881,780
(290,736)
(30,152)
(15,532)
196,911
225,588
39,150
125,229
Unit: Million Baht
Separate
2007
Maturity on demand
Maturity within
1-3
months
3 - 12
months
1-5
years
Maturity
Over 5 years
No
maturity
Total
Financial assets
Cash
-
-
-
-
-
21,235
21,235
-
21,978
14,992
43,029
25,748
40,720
146,467
83,498
278,396
131,869
199,758
215,692
-
909,213
83,498
300,374
146,861
242,787
241,440
61,955
1,076,915
434,289
307,976
125,223
12,987
654
-
881,129
-
42,258
4,838
20,795
-
-
67,891
434,289
350,234
130,061
33,782
654
-
949,020
(350,791)
(49,860)
16,800
209,005
240,786
61,955
127,895
Borrowings
Net liquidity gap
Unit: Million Baht
Separate
2006
“Restated”
Maturity on demand
Maturity within
1-3
months
3 - 12
months
1-5
years
Maturity
Over 5 years
No
maturity
Total
Financial assets
Cash
-
-
-
-
-
19,531
19,531
resale agreements
-
9,300
-
-
-
-
9,300
-
5,808
9,430
41,293
15,069
35,552
107,152
81,474
257,346
109,446
165,062
210,050
-
823,378
81,474
272,454
118,876
206,355
225,119
55,083
959,361
365,124
291,112
137,183
19,031
400
-
812,850
-
6,280
79
21,374
-
-
27,733
365,124
297,392
137,262
40,405
400
-
840,583
(283,650)
(24,938)
(18,386)
165,950
224,719
55,083
118,778
Deposits (included interbank and money market item)
Borrowings
Net liquidity gap
7.7.5 Currency Risk
Currency risk is the risk that occurs from changes in exchange rate which may affect the value of the financial instruments or
may cause volatility in the Bank’s earnings or fluctuates in value of the financial assets and liabilities.
In managing its foreign exchange risk, it is the Bank’s policy to square off its foreign currency denominated assets and liabilities
positions in order to affect a net balance of foreign exchange. The Bank, therefore, endeavors to match its foreign currency
denominated lending with same currency funding sources in order to minimize its exposure on foreign currency fluctuations.
In addition, the Bank manages its exposure to currency risk by setting limits for both overnight and intra-day position, limits
for stoploss position and value at risk. These are monitored on a daily basis and in compliance with the Bank of Thailand’s
regulations on foreign exchange. As at December 31, 2007 and 2006, the Bank has the following financial assets and liabilities denominated in the various
currencies as follows:
Unit: Million Baht
Consolidated
2007
THB
USD
EURO
YEN
Others
Total
Financial assets
Cash
19,946
640
355
160
359
21,460
119,383
6,854
627
1,643
133
128,640
Loans (included interbank and money
market item)
877,645
96,768
1,171
621
2,197
978,402
1,016,974
104,262
2,153
2,424
2,689
1,128,502
884,589
16,634
483
218
1,136
903,060
78,536
10,124
-
-
-
88,660
963,125
26,758
483
218
1,136
991,720
53,849
77,504
1,670
2,206
1,553
136,782
Deposits (included interbank and money
market item)
Borrowings
On-balance sheet items-net
Off-balance sheet items-contingencies
(currency swap contract)
44
(71,103)
(403)
(1,981)
(957)
(74,400)
Unit: Million Baht
Consolidated
2006
THB
USD
EURO
YEN
Others
Total
Financial assets
Cash
18,115
692
333
135
456
19,731
9,300
-
-
-
-
9,300
92,513
2,647
3
1,684
110
96,957
market item)
739,120
138,606
1,678
594
1,023
881,021
859,048
141,945
2,014
2,413
1,589
1,007,009
821,373
14,372
362
351
360
836,818
market item)
Borrowings
34,143
10,819
-
-
-
44,962
855,516
25,191
362
351
360
881,780
3,532
116,754
1,652
2,062
1,229
125,229
43
(113,973)
(912)
(1,820)
(805)
(117,467)
Unit: Million Baht
Separate
2007
THB
USD
EURO
YEN
Others
Total
Financial assets
Cash
19,894
480
355
160
346
21,235
136,292
7,702
627
1,643
203
146,467
813,467
91,774
1,171
621
2,180
909,213
969,653
99,956
2,153
2,424
2,729
1,076,915
867,021
12,294
483
218
1,113
881,129
market item)
market item)
Borrowings
57,767
10,124
-
-
-
67,891
924,788
22,418
483
218
1,113
949,020
44,865
77,538
1,670
2,206
1,616
127,895
44
(71,103)
(403)
(1,981)
(957)
(74,400)
Unit: Million Baht
Separate
2006
“Restated”
THB
Financial assets
Cash
market item)
market item)
Borrowings
USD
EURO
YEN
Others
Total
18,034
582
333
135
447
19,531
9,300
-
-
-
-
9,300
102,171
3,182
3
1,684
112
107,152
685,676
134,451
1,678
594
979
823,378
815,181
138,215
2,014
2,413
1,538
959,361
800,991
10,831
362
351
315
812,850
16,914
10,819
-
-
-
27,733
817,905
21,650
362
351
315
840,583
116,565
1,652
2,062
1,223
118,778
(2,724)
43
(113,973)
(912)
(1,820)
(805)
(117,467)
7.7.6 Derivatives
Financial derivatives are financial instruments whose characteristics are derived from the underlying assets, or from interest
and exchange rates or indices. The following are the derivatives used by the Bank: 1. Forward exchange contracts which are agreements to buy or sell fixed amounts of currency at agreed rates of exchange on
a specified future date.
2. Currency and interest rate swaps which are agreements to exchange, and on termination of the swap, re-exchange
principal amounts denominated in different currencies and may also involve the exchange of related interest payments.
3. Interest rate swaps which are agreements that involve the exchange of interest obligations with a counterparty for a
specified period without exchanging the underlying or notional principal.
4. Equity derivatives which are agreements that determined values based on level of equity’s price or price of equity group or
Equity Index used as underlying assets. 5. Credit derivatives which are agreements to buy or sell guarantee of credit risk related to ability to repay underlying assets.
The Bank has set up objectives and policies to manage the foreign exchange risk and interest rate risk from the volatility of
foreign exchange rates and interest rates by using the derivatives for serving the client’s need and the Bank’s assets and liability
management purpose. These include forward exchange contracts, currency swaps, interest rate swaps, equity derivatives and
credit derivatives. Such derivatives have different levels of exposures. However, the Bank controls the counterparty risks by
setting-up the credit limit based on the normal lending procedures and controls the market risks by setting-up the credit limit
of stop-loss, value at risk and basis point value. 170 Annual Report 2007
The total notional amounts of the derivatives at the year end do not represent the incurred risks from derivative transactions.
The risks arising from the derivatives will depend on the changes in price of each derivative type.
The notional amount and the fair value of derivatives as at December 31, 2007 and 2006 are as follows:
Unit: Million Baht
2007
Notional amount
Forward exchange contracts
Currency swap contracts
Interest rate swap contracts
Net Fair
Value of
Derivatives
Less than 1
year
Within 1- 5
years
More than 5
years
Total
739,044
1,436
877
741,357
748
36,267
97,882
118,397
252,546
(19)
160,810
248,004
73,944
482,758
1
Equity derivatives
1,094
775
-
1,869
-
Credit derivatives
-
1,583
-
1,583
-
Unit: Million Baht
2006
Notional amount
Net Fair
Value of
Derivatives
Less than 1
year
Within 1- 5
years
More than 5
years
337,156
913
-
338,069
Currency swap contracts
33,149
123,039
108,075
264,263
(69)
Interest rate swap contracts
(174)
Forward exchange contracts
Total
2,426
95,988
239,081
51,338
386,407
Equity derivatives
-
1,510
-
1,510
-
Credit derivatives
-
572
-
572
-
7.7.7 Fair Value of Financial Instruments
Normally, fair value of financial instruments is their quoted market price. However, for many financial instruments, quoted
market prices are not available. Fair values are based on estimates using present value or other valuation techniques. These
techniques are significantly affected by the assumptions including discount rate and estimated cash flow. Hence, estimated fair
value from different techniques may significantly differ from each other.
A summary of book value and fair value of financial instruments as at December 31, 2007 and 2006 are as follows: Unit: Million Baht
Consolidated
2007
Book Value
2006
Fair Value
Book Value
Fair Value
Financial Assets
Cash and interbank and money market items
132,320
132,320
153,621
153,621
-
-
9,300
9,300
128,640
128,640
96,957
96,957
Loans and accrued interest receivables - net
823,550
826,897
697,689
712,344
903,060
903,330
836,818
835,375
4,159
4,159
3,396
3,396
88,660
88,660
44,962
44,962
3,390
3,390
5,205
5,205
Financial Liabilities
Deposits and interbank and money market items
Borrowings
Interest payable on deposits
Unit: Million Baht
Separate
2007
Book Value
2006
“Restated”
Fair Value
Book Value
Fair Value
Financial Assets
Cash and interbank and money market items
126,619
126,619
148,469
148,469
-
-
9,300
9,300
146,467
146,467
107,152
107,152
Loans and accrued interest receivables - net
764,411
767,758
649,580
664,236
881,129
881,398
812,850
811,408
Financial Liabilities
Deposits and interbank and money market items
Borrowings
Interest payable on deposits
4,157
4,157
3,357
3,357
67,891
67,891
27,733
27,733
3,388
3,388
5,204
5,204
The following methods and assumptions are used by the Bank in estimating fair market values of financial instruments as
disclosed herein:
Cash:
The carrying amounts approximate fair value.
Interbank and money market items - assets:
Fair value calculated based on present value of estimated cash flows, using
the current interest rate in the money market.
Securities purchased under resale
agreements:
The carrying values of securities purchased under resale agreements
approximate fair value.
Investment in securities :
Fair values for securities are based on estimated market prices as described in
Note 3.3
Loans and accrued interest receivable :
- For variable-rate loans that are repriced frequently and have no significant
change in credit risk, fair values are based on carrying values.
- Fair values of other loans are estimated using discounted cash flow
analyses, using market interest rates or fair value of collateral.
- The carrying amount of accrued interest receivable approximates fair
value.
Deposit and interbank and money market
items – liabilities :
- The fair values disclosed for deposits which are payable on demand by the
depositor, are equal to the carrying values of such deposits.
- Fair values for fixed-deposits are estimated using a discounted cash flow
calculation that applies interest rates currently being offered on similar
deposits.
- The carrying amount of interbank and money market items approximates
their fair value at the reporting date.
Liabilities payable on demand:
The carrying amount of liabilities payable on demand approximates fair value.
Securities sold under repurchase
agreements:
The carrying value of securities sold under repurchase agreements
approximates fair value.
Borrowings:
- The carrying amounts of short-term borrowings maturing within 90 days
approximate their fair values.
- Fair values of other borrowings are estimated using discounted cash flow
analyses based on the Bank’s current incremental borrowing rates for
similar types of borrowing arrangements.
Interest payable on deposits:
The carrying amounts of interest payable approximate their fair values.
Off-balance-sheet instruments:
Fair values for off-balance-sheet instruments are based on the difference
between contract rate and spot rate at period end as adjusted with risk
premium of the remaining terms of the agreements.
7.8 Outstanding Loans, Deposits and Contingencies
Outstanding loans, deposits and contingencies between the Bank and subsidiaries, associated and related companies as at
December 31, 2007 and 2006 , are as follows: Unit: Million Baht
Consolidated
2007
Loans
2006
Deposits
Contingencies
707
188
2
-
216
-
450
435
1
740
4
-
-
9
-
-
138
836
-
74
695
Saturn Inc. (Cayman Islands) and affiliates
-
19
-
1
14
-
Nobleclear holding (BVI) Ltd. (Germany)
-
5
137
-
5
132
1,215
1,062
1,425
1,143
507
1,569
Finance & Insurance
-
15
1
-
18
-
Service
-
53
-
-
91
4
Real Estate
-
13
-
-
2
-
Deposits
Contingencies
1,200
170
2
-
719
-
15
7
-
Loans
Associated Companies
Finance & Insurance
The Siam Industrial Credit PCL and affiliates
Siam Commercial New York Life Insurance PCL
SCB Leasing PCL
Real Estate
Christiani & Nielsen (Thai) PCL and affiliates
Others
Total associated companies
Related companies (10 % to 20 % Ownership)
Others
Total related companies (10% - 20%)
11
91
1
105
22
1
11
172
2
105
133
5
Related company (Shareholding through debt
restructuring process)
313
2
175
311
13
289
881
17
7
905
11
8
1,099
11
241
1,080
2
327
-
54
32
-
40
32
SG Land Co., Ltd. and affiliate
319
83
3
354
43
66
233
33
10
289
33
43
33
-
8
34
1
8
1
11
2
126
5
3
Manasika Co., Ltd.
-
8
2
-
-
-
52
10
-
52
16
-
2,931
229
480
3,151
164
776
Thai Baroda Industries Co., Ltd.
Zigma Concrete & construction Co., Ltd.
Thai Nam Plastic PCL
Total related companies
(Debt restructuring process)
Unit: Million Baht
Consolidated
2007
Loans
Related Company (Shareholding through other companies’ debt restructuring
process)
Siam Media and Communication Co., Ltd. and affiliate
2006
Deposits
Contin-
gencies
-
-
Loans
Deposits
Contin-
gencies
-
291
-
-
-
-
1
-
-
2
Donmuang International Airport Hotel Co., Ltd.
-
216
5
-
159
5
Nava 84 Co., Ltd. and affiliate
-
26
-
-
1
-
-
242
6
291
160
7
(Other companies’ debt restructuring
process)
Major shareholder (10 %-20 % Ownership)
The Crown Property Bureau
Subsidiaries and associated companies of major shareholder which are not included
in the above lists
Subsidiaries
Associated Companies -
965
-
-
572
2
-
367
-
-
427
-
-
7
3
106
22
5
261
347
59
325
186
62
261
721
62
431
635
67
- Netone Network Solution Co., Ltd.
9
12
20
3
9
47
- Thai Prosperity Terminal Co., Ltd.
-
-
28
-
-
-
- Siam Sindhorn Co., Ltd.
- Others
(Subsidiaries and associated companies
of major shareholder)
Entity in which the directors, mangement or close members of their families have
significant influence
- T I P S Co., Ltd.
-
43
131
-
-
-
- Bangkok Synthetics Co., Ltd.
-
5
224
-
-
-
- Nok Airlines Co., Ltd.
-
387
118
-
-
-
- Thai Airways International PCL.
-
71
-
-
-
-
- Others
1
101
14
8
253
6
10
619
535
11
262
53
(Entity in which the directors,
mangement or close members of
their families)
Total
139
813
1
139
752
1
4,567
4,823
2,511
5,271
3,185
2,480
Unit: Million Baht
Separate
2007
Subsidiaries
Finance & Insurance
Chatuchak Asset Management Co., Ltd.
Cambodian Commercial Bank Ltd. (Cambodia)
The Siam Commercial Samaggi Insurance PCL
and affiliates
SCB Quant Asset Management Co., Ltd.
Siam commercial Leasing PCL and affiliates*
Services
SCB Training Centre Co., Ltd.
SCB capital Service Co., Ltd.
Ratchayothin Capital Service Co., Ltd.
Siam Niti Law Office Co., Ltd.**
Real Estate
Mahisorn Co., Ltd.
Others
Astrakhan Investment Limited (Hong Kong)
Total subsidiaries
Finance & Insurance
The Siam Industrial Credit PCL and affiliates
Siam Commercial New York Life Insurance PCL
SCB Leasing PCL
Real Estate
Christiani & Nielsen (Thai) PCL and affiliates
Others
Saturn Inc. and affiliates
Nobleclear holding (BVI) Ltd. (Germany)
Total associated companies
Related companies (10 % to 20 % Ownership)
Finance & Insurance
Service
Real Estate
Others
Total related companies (10% - 20%)
Loans
Deposits
Contingencies
Deposits
Contingencies
-
3,200
136
105
-
-
246
141
91
4
21,758
134
1
98
136
317
6,813
9,525
204
1
81
249
6
-
5
15
55
6
-
-
4
9
111
1
5
-
-
80
1
-
21
18
21,758
68
4,039
7,131
9,525
55
1,219
28
1,200
15
-
95
719
7
4
2
450
-
46
-
138
216
1
9
2
740
-
-
138
836
-
74
695
1,215
19
5
987
137
1,425
1
47
14
5
457
132
1,569
11
11
15
53
13
91
172
1
1
2
105
105
18
91
2
22
133
4
1
5
* Change from associated company to subsidiary during the second quarter of 2006
** Change from associated company to subsidiary during the third quarter of 2006
2006
Loans
Unit: Million Baht
Separate
2007
Loans
2006
Deposits
Contingencies
Loans
Deposits
Contingencies
Related company (Shareholding through debt
313
2
175
311
13
289
881
17
7
905
11
8
1,099
11
241
1,080
2
327
-
54
32
-
40
32
SG Land Co., Ltd. and affiliate
319
83
3
354
43
66
233
33
10
289
33
43
Thai Baroda Industries Co., Ltd.
33
-
8
34
1
8
Zigma Concrete & construction Co., Ltd.
1
11
2
126
5
3
Manasika Co., Ltd.
-
8
2
-
-
-
52
10
-
52
16
-
2,931
229
480
3,151
164
776
-
-
-
291
-
-
-
-
1
-
-
2
Donmuang International Airport Hotel Co., Ltd.
-
216
5
-
159
5
Nava 84 Co., Ltd. and affiliate
-
26
-
-
1
-
-
242
6
291
160
7
-
965
-
-
572
2
-
367
-
-
427
-
-
7
3
106
22
5
261
347
59
325
186
62
261
721
62
431
635
67
Thai Nam Plastic PCL
(Debt restructuring process)
Related Company (Shareholding through
other companies’ debt restructuring process)
Siam Media and Communication Co., Ltd.
and affiliate
(Other companies’ debt
Major shareholder (10 %-20 % Ownership)
The Crown Property Bureau
Subsidiaries and associated companies of
major shareholder (which are not included
in the above lists)
Subsidiaries
- Siam Sindhorn Co., Ltd.
- Others
(Subsidiaries and associated
companies of major shareholder)
Unit: Million Baht
Separate
2007
Loans
2006
Deposits
Contingencies
Loans
Deposits
Contingencies
Entity in which the directors, management
or close members of their families have
significant influence
- Netone Network Solution Co., Ltd.
9
12
20
3
9
47
- Thai Prosperity Terminal Co., Ltd.
-
-
28
-
-
-
- T I P S Co., Ltd.
-
43
131
-
-
-
- Bangkok Synthetics Co., Ltd.
-
5
224
-
-
-
- Nok Airlines Co., Ltd.
-
387
118
-
-
-
- Thai Airways International PCL.
-
71
-
-
-
-
- Others
1
101
14
8
253
6
(Entity in which the directors, management
or close members of their families)
10
619
535
11
262
53
139
813
1
139
752
1
26,325
8,787
9,642
13,700
4,354
2,508
Total
7.9 Events Occurring After the Balance Sheet Date
7.9.1 826,233 preferred shares have been converted into 826,233 ordinary shares. The Bank registered the conversion of preferred
shares with the Ministry of Commerce on January 4, 2008.
7.9.2 On January 15, 2008, SCB Securities Co., Ltd. which is a subsidiary, registered the decrease in share capital and paid-up share
capital from Baht 5,000 million to Baht 2,000 million with the Registrar of Partnerships and Companies according to a
resolution of the extraordinary shareholders’ meeting on June 21, 2007 and July 6, 2007. The subsidiary fully repaid such
decrease capital to the shareholders.
7.9.3 These financial statements have been approved for issuing by the Bank’s authorized director on February 19, 2008.
Report Of The Independent Certified Public Accountants
To The Shareholders and Board of Directors
We have audited the consolidated balance sheets of The Siam Commercial Bank Public Company Limited and its subsidiaries and the separate
balance sheets of The Siam Commercial Bank Public Company Limited as at December 31, 2007 and 2006, and the related consolidated and
separate statements of income, changes in shareholders’ equity and cash flows for the years then ended. These financial statements are the
responsibility of the Bank’s management as to their correctness and completeness of the presentation. Our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the
audit to obtain reasonable assurance as to 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. We believe
that our audits provide a reasonable basis for our opinion.
In our opinion, the aforementioned consolidated and separate financial statements present fairly, in all material respects, the financial position
of The Siam Commercial Bank Public Company Limited and its subsidiaries, and of The Siam Commercial Bank Public Company Limited,
as at December 31, 2007 and 2006, and the results of operations and the cash flows for the years then ended, in conformity with generally
accepted accounting principles.
Without qualifying our opinion, as discussed in Note 3.1.4 to the financial statements, for the year ended December 31, 2007, the Bank
changed its accounting policy for investments in subsidiaries and associated companies from the equity method to the cost method for the
separate financial statements to be in compliance with the Notification of Federation of Accounting Professions, and restated the separate
financial statements for the year ended December 31, 2006 for the change in such accounting policy.
BANGKOK
February 19, 2008
Dr. Suphamit Techamontrikul
Certified Public Accountant (Thailand)
Registration No. 3356
Deloitte Touche Tohmatsu Jaiyos Audit Co., Ltd.
Report of the Board of Directors’ Responsibilities
for Financial Statements
The Board of Directors is responsible for the Bank’s financial statements, the consolidated financial statement of the Bank and its affiliated
companies, and the financial information stated in the Bank’s Annual Report. These financial statements were prepared in accordance with
generally accepted accounting standards in Thailand, which are based on appropriate accounting policies applied and practiced on a regular
basis. The financial statements were carefully prepared based on the most accurate and up-to-date information available. All relevant
information related to the policies and practices used to prepare these financial statements are sufficiently disclosed in the Notes to the
Financial Statements in order to maintain the Bank’s high standards of transparency for the benefit of shareholders and investors.
The Board of Directors has initiated the adoption and maintenance of an effective system of risk management and internal control which
provides reasonable assurance that the Bank’s accounting records are accurate, complete, and sufficient to protect the assets of the Bank.
This system is also designed to prevent serious misconduct or other irregularities in the operation of the Bank.
The Audit Committee was appointed by the Board and comprises independent directors to oversee the quality of the Bank’s financial reports
and internal control procedures. The Audit Committee’s view regarding such matters is disclosed in this Annual Report under the Audit
Committee’s Report.
In the Board of Directors’ opinion, the Bank’s internal control system is satisfactory and can assure the reliability of both the Bank’s financial
statements and the consolidated financial statements of the Bank and its affiliated companies as of 31 December 2007.
(Mr. Anand Panyarachun)
Supplementary Information
Major Shareholders
Siam Commercial Bank PCL as at December 28, 2007
Shareholders
1 Bureau of The Crown Property and Group
Ordinary
Shares
232,275,685
2 Vayupak Mutual Fund 1
-
3 DBS Bank A/C 316398-9-001
47,900,000
4 Chase Nominees Limited 42
128,524,866
5 Thai NVDR Company Limited
125,130,982
6 HSBC (Singapore) Nominees Pte Ltd
119,556,841
7
State Street Bank and Trust Company
Preferred
Shares
Total of Shares
Percentage
of Shares
574,114,073
806,389,758
23.72
785,798,200
785,798,200
23.12
112,500,000
160,400,000
4.72
-
128,524,866
3.78
125,146,082
3.68
-
119,556,841
3.52
15,100
91,096,326
-
91,096,326
2.68
8 Littledown Nominees Limited
62,642,400
-
62,642,400
1.84
9 Social Security Office
61,731,300
61,731,300
1.82
10 Nortrust Nominees Ltd.
11 Others
Total Issued Share Capital
Thai Shareholders
Foreign Shareholders
54,985,385
1.62
975,941,238
54,985,385
26,979,802
1,002,921,040
29.50
1,899,785,023
1,499,407,175
3,399,192,198
100.00
835,484,792
1,384,180,120
2,219,664,912
65.30
1,064,300,231
115,227,055
1,179,527,286
34.70
Remark:
(1) The book closing is for the purpose of updating the names of shareholders only.
(2) Ministry of Finance holds 3,051,786 preferred shares 0.09% of total share capital.
(3) Government Savings Bank holds 15,214,380 ordinary shares 0.45% of total share capital.
(4) ASIA FINANCIAL HOLDINGS PTE LTD holds the shares under DBS BANK A/C 316398-9-001.
-
Investment of Siam Commercial Bank PCL.
in other companies.
As of December 31, 2007 the companies that bank invests 10% or more than of their issued shares due to Section 258
of Securities and Exchange Act* are as follows;
Company/Address
1
The Cambodian Commercial Bank
Co., Ltd.
Type of
Business
Type
of
Shares
Issued and
Paid up
Share Capital
(Baht)
Banking
Ordinary
US$13,000,000
Training
Ordinary
Amount of
Shares
Percentage
of
Ownership*
130,000
130,000
100.000%
634,316,885
549,000,000
5,490,000
5,490,000
100.000%
389,504,400
Ordinary
1,000,000,000
100,000,000
100,000,000
100.000%
6,000,000,000
Ordinary
3,491,430,000
34,914,300
34,914,296
100.000%
2,141,565,000
Ordinary
100,000,000
20,000,000
20,000,000
100.000%
221,573,983
Ordinary
50,000,000
10,000,000
10,000,000
100.000%
88,100,000
Ordinary
50,000,000
5,000,000
4,999,993
100.000%
49,999,930
Ordinary
120,000,000
1,200,000
1,200,000
100.000%
120,000,000
Ordinary
20,000,000
2,000,000
1,999,993
100.000%
20,000,000
Holding
Ordinary
2,600,000,000
260,000,000
259,999,993
100.000%
2,599,999,930
Property
Ordinary
69,062,700
690,627
690,620
100.000%
69,062,000
Paid-up
Shares
Amount*
(Baht)
26 Monivong Rd., Sangkat Phsar Thmei 2, Khan
Daun Penh, Phnom Penh, Kingdom of Cambodia
Tel : 001-855 (23) 426-145, 213-601-2
Telefax :
2
SCB Training Center Co., Ltd.
SCB Head Office Bldg.,
Center
9 Rutchadaphisek Rd., Jatujak, Jatujak, BKK 10900
Tel : 0-2544-1702, 1704, 1707
Fax : 0-2544-1701
3
Chatuchak Asset Management
Co., Ltd.
Asset
Management
SCB Head Office Bldg., 8th Floor, Zone C
Tel : 0-2544-5904 , 0-2544-5924 , 0-2544-5908
4
Mahisorn Co., Ltd.
SCB Park Plaza Bldg., 21st Floor
18-19 Rutchadaphisek Rd., Jatujak, Jatujak, BKK 10900
Property
(NPA)
Management
Tel : 0-2937-5400 Fax : 0-2937-5438
5
Sindhorn Bldg., Tower 3, 23th Floor,
Asset
Management
130-132 Wireless Rd., Lumpini, Pathumwan, BKK 10330
Tel : 0-2626-2222 Fax : 0-2263-4004
6
SCB Capital Service Co., Ltd.
Muangthai-Patra Complex Tower 1
Asset
Management
15th,18th,19th Floor, Ratchadaphisek Rd.,
Huakhwang, BKK 10320
Tel : 0-2697-3217 Fax : 0-2697-3203
7
SCB Quant Asset Management
Co., Ltd. (3)
Asset
Management
Sindhorn Bldg., Tower 24th Floor,
Tel : 0-2686-2000 Fax : 0-2650-9571
8
Manasika Co., Ltd. (2)
18-19 SCB Park Plaza, Rutchadaphisek Rd.,
Property
Development
Jatujak, Jatujak, BKK 10900
Tel : 0-2937-5400 Fax : 0-2937-5438
9
SICCO Advisory Co.,Ltd. (3)
Sindhorn Tower3, 16th Floor
Financial
Advisory
Tel : 0-2675-3899 Fax : 0-2675-3898
10
CNT Holdings Limited (3)
50/670 Moo 3, Soi Sukhumvit 105 (LaSal),
Sukhumvit Rd., Bang Na, Bang Na, BKK 10260
Tel : 0-2398-0156
11
CN Place Silom Development Ltd. (3)
451 Sukhumvit Rd., 105 (LaSal), Bangna, BKK 10260
Development
Tel : 0-2398-0158 Fax : 0-2398-9860
in other companies.
Company/Address
12 Siam Technology Service Co., Ltd. (1)
Type of
Business
Type
of
Shares
Issued and
Paid up
Share Capital
(Baht)
Consultant
Ordinary
30,000,000
Holding
Ordinary
Holding
Amount of
Shares
Percentage
of
Ownership*
3,000,000
2,249,993
75.000%
1
296,280
12,000
12,000
100.000%
1,526,040,900
Ordinary
2,112,500
50,000
50,000
100.000%
53,087,125
Securities
Ordinary
5,000,000,000
500,000,000
499,999,986
99.999%
5,107,396,270
Real Estate
Ordinary
42,500,000
425,000
424,994
99.998%
1
Appraisal
Ordinary
10,000,000
1,000,000
999,972
99.997%
9,999,720
Ordinary
16,000,000
160,000
159,994
99.996%
16,248,976
Ordinary
1,000,000
100,000
99,993
99.993%
999,930
Holding
Ordinary
HKD100,000
100,000
99,990
99.990%
1,542,646
Construction
Ordinary
1,000,000
10,000
9,994
99.940%
1,000,000
Consultant
Ordinary
1,000,000
10,000
9,993
99.930%
1,000,000
Paid-up
Shares
Amount*
(Baht)
SCB Park Plaza Bldg., Tower 1 west,
18 Rutchadaphisek Rd., Jatujak, Jatujak,
BKK 10900
13
Indochina Investments Ltd. (3)
451 Sukhumvit Rd., 105 (LaSal),
Bangna, BKK 10260
Tel : 0-2398-0158 Fax : 0-2398-9860
14
Harmony Property Group Ltd. (3)
Bangna, BKK 10260
Tel : 0-2398-0158 Fax : 0-2398-9860
15
Sindhorn Bldg. Tower 3, 25th-26th, 28th Floor,
130-132 Wireless Rd., Lumpini,
Pathumwan, BKK 10330
Tel : 0-2686-2000 Fax : 0-2263-3811
16
Siam Commercial Carsa Co.,Ltd. (3)
SCB Park Plaza Bldg., 18th - 19th Floor
18 Rutchadaphisek Rd., Jatujak, Jatujak,
BKK 10900
17
222/1-7 Siam Square Soi 1, Rama 1 Rd.,
Services
Pathumwan, Pathumwan, BKK 10330
Tel : 0-2530-7500 Fax : 0-2530-7515-6
18
Siam Niti Law Office Co., Ltd.
SCB Park Plaza Bldg., Tower 1 West, 12th Floor,
Consultant
(legal service)
Tel : 0-2937-5000 Fax : 0-2937-5001
19
Rachayothin Capital Services
Co.,Ltd. (3)
Asset
Management
Muangthai-Patra Complex Tower 1
15th,18th,19th Floor, Ratchadaphisek Rd.,
Huakhwang, BKK 10320
Tel : 0-2697-3217 Fax : 0-2697-3203
20
Astrakhan Investment Ltd. (1)
Suit 1609, Jardine House, 1 Connaught Place,
Central Hong Kong
Tel : (852) 2524-4085 Fax : (852) 2845-0293
21
Christiani & Nielsen Construction
(Thai) Co.,Ltd. (3)
50/670 Soi Lasal, Sukhumvit 105 Rd.,
Bang Na, Bang Na, BKK 10260
Tel : 0-2398-0158
22
CN Advisory Co.,Ltd. (3)
Sindhorn Bldg. Tower 3, 16th Floor,
Tel : 0-2263-2100
in other companies.
Company/Address
23
SG Land Co., Ltd. (2)
Type of
Business
Type
of
Shares
Issued and
Paid up
Share Capital
(Baht)
Real Estate
Ordinary
100,450,000
Hire Purchase
Ordinary
Amount of
Shares
Percentage
of
Ownership*
20,090,000
20,045,899
99.780%
88,740,499
5,677,975,020
567,797,502
562,689,752
99.100%
10,716,969,782
Ordinary
40,000
400
394
98.500%
39,400
Holding
Ordinary
500,000,000
500,000
488,000
97.600%
1
Golf Club
Ordinary
119,250,000
23,850
22,078
92.570%
147,665,000
Sattellite
Ordinary
112,500,000
11,250,000
9,182,012
81.620%
91,820,120
Securities
Ordinary
637,215,030
637,215,030
446,457,860
70.060%
491,925,503
Insurance
Ordinary
454,452,155
90,890,431
54,199,474
59.631%
559,822,705
Real Estate
Ordinary
14,531,200
145,312
85,912
59.122%
8,591,200
Manufactur-
Ordinary
108,143,880
10,814,388
6,353,802
58.753%
1
Paid-up
Shares
Amount*
(Baht)
SG Tower Bldg., M Floor,
161/1 Soi Mahatleklaung, Rachdamri Rd., Lumpini,
Tel : 0-2651-9485 Fax : 0-2651-8575
24
Siam Commercial Leasing PCL.
Sino-thai Tower 3rd-5th , 9th , 22th-23th Floor,
32/24-26,53 Soi Sukhumvit 21 (Asoke),
Leasing
Factoring
Sukhumvit Rd., Klongtoey nua, Vadhana,
BKK 10110
Tel : 0-2260-1200 , 0-2661-7020
Fax : 0-2260-1209
25
SICCO SPV1 Co.,Ltd. (3)
Sindhorn Tower 2, 5th Floor,
26
Phonix Land Developmnt
Co.,Ltd. (2)
SPV set up
under
securitization
Act.
SCB Park Plaza Bldg.
Tel : 0-2937-5400 Fax : 0-2937-5438
27
Phoenix Golf and Country Club
Pattaya Co.,Ltd.(3)
SCB Park Plaza Bldg.
Tel : 0-2937-5400 Fax : 0-2937-5438
28
Siam Sat Network Co.,Ltd. (1) , (3)
SCB Park Plaza Bldg., Tower 2 west, 21st Floor
Service
29
SICCO Securities PCL.(3)
1st - 2nd, 6th Floor,Sindhorn Tower 2 and
12th Floor, Sindhorn Tower3
Tel : 0-2627-3100 Fax : 0-2263-2043
30
Siam Commercial Samaggi Insurance
PCL.
Samaggi Insurance Bldg., 12th Floor, North Park,
2/4 Viphavadee Rungsit Rd., Donmuang, BKK 10210
Tel : 0-2955-0100-29 Fax : 0-2955-0150-1
31
Mahachai Land Development
Co., Ltd. (2)
109 Moo 8 Bangna-Trad Rd., KM 2-5, Bangna,
Bangna, BKK 10260
Tel : 0-2398-0027 Fax : 0-2399-2446
32
Zigma Concret & Construction
Co., Ltd.(2)
388 S.P. Building, 12th Floor, Phaholyothin Rd.,
Samsennai, Phayathai, BKK 10400
Tel : 0-2619-1386
ing and sell
ready mixed
concrets
in other companies.
Company/Address
33 Saturn Inc. (1)
Type of
Business
Type
of
Shares
Issued and
Paid up
Share Capital
(Baht)
Holding
Ordinary
US$400,378
Private fund
Ordinary
Amount of
Shares
Percentage
of
Ownership*
40,037,800
21,215,000
52.985%
18,134,998
20,000,000
2,000,000
1,020,000
51.000%
10,200,000
Ordinary
27,000,000
270,000
137,696
51.000%
13,770,000
Life Insurance
Ordinary
665,000,000
66,500,000
31,475,016
47.331%
633,188,058
Leasing, Hire
Ordinary
105,769,140
10,576,914
4,845,358
45.819%
45,817,620
Construction
Ordinary
4,000,000
-
45.000%
1,800,000
Construction
Ordinary
1,064,942,310
106,494,231
45,099,206
42.346%
4,478
Construction
Ordinary
401,161,682
401,161,682
166,313,259
41.458%
534,323,502
-
Ordinary
150,291,000
150,291
61,749
41.086%
1
Finance
Ordinary
2,987,115,310
597,423,062
230,883,188
38.647%
1,249,948,648
Paid-up
Shares
Amount*
(Baht)
4/F., Scotia Center, P.O. Box 884,
George Town, Grand Cayman, Cayman Islands,
British West Indies
34
SSEC Asset Management Securities
Company Limited
Management
Exchange Tower, 36th Floor Room 3602 ,
388 Sukhumvit Rd., Klongtoey,
Klong Toei, BKK 10110
Tel : 0-2663-4111 Fax : 0-2663-4222
35
Chesterton Thai Property
Consultants Co., LTd. (1) , (3)
161/1 SG Tower, 8th Floor,
Asset
Management
Consultant
Soi Mahadlek Luang 3, Ratchadamri Rd.,
Lumpini, Pathumwan, BKK 10330
36
Siam Commercial New York Life
Insurance PCL.
SCB (Chidlom Bldg. 1), 4th-10th Floor,
1060 New Petchaburi Rd., Makkasan,
Rajthevee, BKK 10400
Tel : 0-2655-3000 Fax : 0-2256-1666
37
SCB Leasing PCL.
Sindhorn Bldg. Tower3, 27th Floor
purchase and
Factoring
Tel : 0-2263-2990 Fax : 0-2263-2991
38
PAN ASIA – CNT Joint Venture (3)
Bangna, BKK 10260
Tel : 0-2398-0158 Fax : 0-2398-9860
39
Sri U-Thong Co., Ltd. (2)
S.P. Building 12th Floor,
388 Phaholyothin Rd., Samsennai,
Phayathai, BKK 10400
Tel : 0-2273-0032
40
Christiani & Nielsen (Thai) PCL. (2)
451 Sukhumvit Rd., 105 (LaSal), Bangna,
Bangna, BKK 10260
Tel : 0-2398-0158 Fax : 0-2398-9860
41
Thai Merchantile Marine
Limited (2)
599/1 Rimtangrotfai-Chongnonsri Rd.,
Klongtoey, Klongtoey, BKK 10110
Tel : 0-2240-2572 Fax : 0-2249-5656
42
The Siam Industrial Credit PCL.
Sindhorn Bldg., Tower 2, 3th-5th Floor,
Tel : 0-2263-2100, 0-6250-9990
Fax : 0-2263-2044, 0-2263-2046
in other companies.
Company/Address
43
Siam Media and Communication
Co., Ltd. (1)
Type of
Business
Type
of
Shares
Issued and
Paid up
Share Capital
(Baht)
Holding
Ordinary
700,000,000
Banking
Ordinary
Import/Export
Vehicles &
Amount of
Shares
Percentage
of
Ownership*
7,000,000
2,333,800
33.340%
1
US$20,000,000
200,000
66,000
33.000%
226,687,476
Ordinary
22,750,000
22,750,000
95,834
31.940%
7,500,000
Ordinary
905,000,000
9,050,000
2,831,140
31.283%
266,898,261
Nursery
Ordinary
5,000,000
500,000
150,000
30.000%
SPV set up
Ordinary
40,000
400
104
26.000%
Construction
Ordinary
8,000,000
4
-
25.000%
Construction
Ordinary
30,000,000
30,000
7,500
25.000%
136,380,000
Holding
Ordinary
25,000
1,000
250
25.000%
1
Holding
Ordinary
1,203,000,000
150,000,000
37,499,998
25.000%
137,442,741
Consumer
Ordinary
8,000,000,000
800,000,000
183,767,428
22.971%
430,783,960
Paid-up
Shares
Amount*
(Baht)
SCB Park Plaza Bldg., Tower 2 West, 17th-22th Floor,
18 Rutchadaphisek Rd., Jatujak Jatujak, BKK 10900
44
Vina Siam Bank
2 Pho Duc Chinh Street, District 1, Ho Chi Minh City,
The Socialist Republic of Vietnam
Tel : 001-84 (8) 821-0557, 821-0360,
821-5353, 821-5353-5
Fax : 001-84 (8) 821-0585
45
International Machinery Supplies
Co., Ltd. (3)
54/93 Moo 5 Chalermprakiet Rd., Nong Bon,
Prawet, BKK 10250
46
Thai Baroda Industries Co., Ltd. (2)
3 Map Ta Phut Industrial Estate,
Parts
I-1 Rd., Rayong 21150
(P.O. BOX 61)
Tel : (038) 683-102-3, (038) 683-600-6
Fax : (038) 638-101
47
Siam Children Care Co., Ltd.(1) , (3)
-
(Being in process of dissolution, no address)
48
Siam Panich SPV1 Co.,Ltd. (3)
Sino-thai Tower 3rd - 5th, 9th,
22th-23th Floor, 32/24-26,53
Soi Sukhumvit 21, Sukhumvit Rd., Klongtoey Nua,
under
10,400
securitization
Act.
Vadhana, BKK 10110
Tel : 0-2260-1200, 0-2661-7020
Fax : 0-2260-1209
49
NWR, ITD, CNT & AS Joint Venture
(1) , (3)
-
2/3 Moo14 Bang Na - Trat Rd., Bang Kaeo,
Bang Phli, Samutprakan 10540
Tel : 0-2691-9135
50 Kinsun(Thailand) Co., Ltd.(3)
587 Viriyathaworn Bldg., Sutthisanwinitchai Rd.,
Dindaeng BKK 10320
51 WTA(Thailand) Co., Ltd.
313 C.P. Tower, Silom Rd., Silom,
Bangrak, BKK 10500
Tel : 0-2699-1609 Fax : 0-2643-1881
52 Nava 84 Co.,Ltd.
313 C.P. Tower Silom Rd., Silom,
Bangrak, BKK 10500
Tel : 0-2625-7966-70 Fax : 0-2631-0969
53 Premier Enterprise PCL. (2)
1 Premier Corporated Park Bldg., Soi Premier 2,
Srinakharin Rd, Nong Bon, Prawet, BKK 10250
Tel : 0-2301-1000
product,
Finance
in other companies.
Company/Address
54 SG Star Properties Limited
Type of
Business
Type
of
Shares
Issued and
Paid up
Share Capital
(Baht)
Real Estste
Ordinary
598,911,180
Insurance
Ordinary
Amount of
Shares
Percentage
of
Ownership*
59,891,118
12,389,213
20.686%
4,838,385
6,000,000
60,000
11,999
19.998%
1,199,900
Ordinary
6,000,000
60,000
11,500
19.167%
2,776,210
Hotel
Ordinary
120,000,000
1,200,000
204,000
17.000%
85,723,320
Transportation
Preferred
1,592,000,000
15,920,000
2,666,176
16.747%
266,617,600
Payment
Ordinary
50,000,000
500,000
82,335
16.467%
8,302,131
Ordinary
20,000,000
200,000
30,000
15.000%
3,000,000
Services
Ordinary
60,000,000
6,000,000
665,000
11.080%
7,282,822
Commercial
Ordinary
KYAT1,320,000
220
22
10.000%
559,281
SPV set up
Ordinary
40,000
400
40
10.000%
4,000
Ordinary
40,000
400
40
10.000%
4,000
Paid-up
Shares
Amount*
(Baht)
408/70, Phaholyothin Place Bldg., 16th Floor,
Phaholyothin Rd., Samsennai, Phayathai, BKK 10400
55
Nippon Koa Insurance
Service(Thailand) Co.,Ltd. (3)
Broker
Samaggi Insurance Bldg., 15th Floor, North Park,
2/4 Viphavadee Rungsit Rd., Donmuang,
BKK 10210
Tel : 0-2955-0137
56
Siam Cosmos Service Co., Ltd. (3)
Maneeya Center Bldg., 14th Floor,
Insurance
Broker
518/5 Ploenchit Rd., BKK 10330
Tel : 0-2257-4100 Fax : 0-2257-4155
57
Donmuang International Airport
Hotel Co., Ltd.
Amari Airport Hotel
333 Moo 10 Cherd Wudthakas Rd., Srikan,
Don Muang, BKK 10210
Tel : 0-2566-1020 Fax : 0-2566-1941
58
Fuel Pipeline Transportion
Co., Ltd. (2)
424 Moo 8, Viphavadee Rungsit Rd., BKK 10210
Tel : 0-2574-6180-3 Fax : 0-2929-5735
59
National ITMX Co., Ltd.
93/1 GPF Witthayu Tower A, 17th Floor,
Wireless Rd., Lumpini, Pathumwan, BKK 10330
System Service
Provider
Tel : 0-2650-6800 Fax : 0-2650-6808
60
Phuket Land Development
Co., Ltd. (3)
Property
Developer
88 Soi Charoennakorn 11 Charoennakorn Rd.,
Klongtonsai, Klongsan, BKK 10600
61
The Siam Administrative
Management Co.,Ltd.
313, Ramkhamhaeng 21 (Navasri),
Wangthonglang , Bangkapi, BKK 10310
Tel : 0-2791-3000
62
Siam Cement Myanmar
Trading Ltd.
291 (B) Shwedagon Pagoda Rd.
Dagon Township, Yangon, Myanmar
Tel : 95-1-246-134 Fax : 95-1-252-190
63
Sindhorn Tower2, 5th Floor,
64
Sindhorn Tower2, 5th Floor,
under
securitization
Act.
SPV set up
under
securitization
Act.
in other companies.
Company/Address
65
Thai U.S. Leather Co., Ltd. (1)
Type of
Business
Type
of
Shares
Issued and
Paid up
Share Capital
(Baht)
Industry
Ordinary
193,750,000
Agribusiness
Ordinary
Construction
Amount of
Shares
Percentage
of
Ownership*
25,000,000
2,500,000
10.000%
19,375,000
60,000,000
600,000
60,000
10.000%
6,000,000
Ordinary
10,000,000
20,000
2,000
10.000%
61,753,160
Agribusiness
Ordinary
20,000,000
250,000
2,000
10.000%
2,000,000
Property
Ordinary
12,500,000
250,000
25,000
10.000%
1,250,000
Insurance
Ordinary
300,000,000
30,000,000
3,000,000
10.000%
30,000,000
Hire Purchase
Ordinary
300,000,000
30,000
3,000
10.000%
30,000,000
Holding
Ordinary
15,000,000
250,000
25,000
10.000%
1,500,001
Property
Ordinary
600,000,000
6,000,000
600,000
10.000%
60,000,000
Paid-up
Shares
Amount*
(Baht)
39/98 Moo 2, Rama II Rd., Bangkrajao,
Muang Samuthsakhon, Samuthsakhon 74000
Tel : (034) 490-082
66
Navuti Co., Ltd.
920/4 Moo7, Maefaluang, Maefaluang,
Chiangrai, 57240
Tel : (053) 767-015 Fax : (053) 767-077
67
Thai Obayasi Corporation Co., Ltd.
Nantawan Bldg., 16th Floor, 161
Rajdamri Rd., BKK 10330
Tel : 0-2252-5200
68
Nanachart Traders Consolidation
Limited (3)
34/3, Ruamdanuthailangsuan Tower,
Soi Lang Suan, Phloenchit Rd. Lumpini,
Tel : 0-2652-2020
69
Premas(Thailand) Co.,Ltd.
SCB Park Plaza Bldg., Tower 2 18th Floor
Management
18 Rutchadaphisek Rd., Jatujak Jatujak, BKK 10900
Tel : 0-2937-8800 Fax : 0-2937-8800
70
Phinix Insurance Co.,Ltd. (3)
959 Charoenkrung Rd., Talatnoi, Samphanthawong,
BKK 10110
71
Siam Bansu Leasing(2002)
Co.,Ltd. (3)
(Motercycle)
371 Samchai Rd., Hatyai, Songkhla 90110
Tel : (074) 343-335 Fax : (074) 343-335
72
Siam Commercial Development
Co., Ltd. (1)
SCB Park Plaza Bldg.,
18-19 Rutchadaphisek Rd., Jatujak Jatujak,
BKK 10900
73
Siam Sindhorn Property Co.,Ltd. (3)
Sindhorn Bldg., Tower 1, 7th Floor,
Rental
Patumwan, BKK 10330
Tel : 0-2263-2500
Remarks
* In case of indirect investment by bank's affiliates, in which the bank hold more than 30% of theirs shares, the figures will depict the total percentage of shareholding and
investment value of the bank and its affiliates.
(1) Discontinued operations, being in process of dissolution or in process of liquidation.
(2) Invested from Debt Restructuring.
(3) The company which the bank's affiliates, in which the bank hold more than 30% of theirs shares, invest without any direct investment from bank.
Banking Network
Area Office
20 Offices
Branch, all nationwide
874 Branches
Bangkok and vicinity
395 Branches
Upcountry
479 Branches
Overseas Branch
3 Branches
Business Relationship Center
49 Centers
Special Assets Center
21 Centers
International Trade Service Center
45 Centers
Foreign Exchange Center
141 Centers
Bangkok
37 Centers
Tourist spot, Upcountry
104 Centers
ATM
4,833 Machines
Bangkok and vicinity
3,000 Machines
Upcountry
1,833 Machines
Area Offices
Area Offices
District
Province
Telephone
Fax
Chidlom
Ratchatawee
Bangkok
0-2256-1226-32
0-2256-2748
Wisutkasat
Phra Nakhon
Bangkok
0-2629-0631-5
0-2629-0630
Prachachun
Bang Su
Bangkok
0-2913-6034-7
0-2913-6158
Ram-Inthra
Bangkhen
Bangkok
0-2943-5070-2
0-2943-6509
Thepharak
Muang
Samut Prakan
0-2754-9946-7
0-2754-9855
Thanon Ratchadapisek (Thaphra)
Thon Buri
Bangkok
0-2477-1784
0-2477-1351
Sanambinnam
Muang
Nonthaburi
0-2952-4174-7
0-2952-4178
Tha Phae
Muang
Chiang Mai
0-5381-8484-6
0-5381-8487
Nakornsawan
Muang
Nakhon Sawan
0-5631-1388-9
0-5622-1558
Kaengkhoi
Kaeng Khoi
Saraburi
0-3624-4056
0-3624-4493
Thanon Pho Si
Muang
Udon Thani
0-4222-3959
0-4222-3780
Thanon Mittraphap
Muang
Nakhon Ratchasima
0-4425-5335-6
0-4425-1529
Chomthian
Bang Lamung
Chon Buri
0-3823-2571-2
0-3823-3559
Phra Prathon
Muang
Nakhon Pathom
0-3421-2336
0-3421-2076
Thanon Kanchanawithi
Muang
Surat Thani
0-7728-1961-4
0-7728-1965
Thanon Rat Yindi
Hat Yai
Songkhla
0-7434-2495-7
0-7434-2498
Pattaya
Bang Lamung
Chon Buri
0-3875-6219
0-3875-6509
In Mall
Jatujak
Bangkok
0-2544-4370
0-2544-2148
Office Building
Jatujak
Bangkok
0-2544-2425
0-2544-1452
SuvarnaBhumi
Bang Phil
Samut Prakan
0-2729-8743
0-2729-8742
Nationwide Branches
Branch
Telephone
Fax
Branch
Bangkok
Telephone
Fax
Asok
0-2261-4832,
0-2661-6310-19
0-2259-7167
Bang Plat
0-2433-4030,
0-2433-0223-6
0-2435-0361
Asoke Towers
0-2258-6001-2
0-2258-6003
Bang Rak
0-2416-6175,
0-2898-0415-9
0-2416-7968
Bang Bua
0-2561-4149,
0-2561-4146-7,
0-2561-1158-61
0-2561-4148
0-2237-3625,
0-2233-2089,
0-2235-8630-1,
0-2233-2093,
0-2233-3270
0-2233-2102
Bang Bon
Banthat Thong
0-2216-6639
Bang Chak
0-2331-6892,
0-2332-9701-5
0-2332-9706
Bang Kapi
(Sukhumwit 45)
0-2258-7381,
0-2258-0560-2,
0-2258-7301-3,
0-2260-4850,
0-2258-9678,
0-2260-3238-9,
0-2261-6585
0-2259-2597
0-2216-8541,
0-2216-1257,
0-2214-1211,
0-2216-6637,
0-2612-4803-4
Big C Bang Na-Trad (KM 3.5) 0-2744-0174-5,
0-2774-0177,
0-2744-0154,
0-2744-0159,
0-2744-0167
0-2744-3495
Bang Khae
0-2454-0035,
0-2454-2836-7
0-2413-3944
Big C Rajadamri
0-2250-4733-6
0-2250-4737
Central Lad Prao
0-2541-1237-8
0-2512-4664
Bang Khen
0-2513-2758-9,
0-2513-5383,
0-2513-1034,
0-2513-9511
0-2513-0258
Central Lad Prao 2
0-2513-6374,
0-2513-2308
0-2513-7450
Central Phraram 2
0-2872-4030-3
0-2872-4034
0-2292-1215,
0-2291-1109-10
0-2292-1217
Central Phraram 3
0-2673-5760-2
0-2673-5763
Central Pinklao
0-2433-2589-90
0-2433-2834
0-2289-3578,
0-2289-1992-3,
0-2289-3825,
0-22895230
0-2291-3490
Central World Tower
0-2264-5072-3
0-2264-5074
Chaeng Watthana Soi 13
0-2574-1541,
0-2573-8417-23
0-2574-1542
0-2433-4010,
0-2433-5760
0-2433-5760
0-2747-3209,
0-2747-3207-9
0-2747-3206
Bang Khun Non
Chalermphrakiat Rama 9
(Wattaklam)
Chaloem Nakhon
0-2225-8546
Bang Krabu
0-2669-3182,
0-2669-4830-3,
0-2669-4496-7
0-2669-4898
Bang Lampu
0-2281-6270,
0-2281-7616-9,
0-2281-7029-30,
0-2280-3638-9
0-2281-9552
0-2224-4636,
0-2222-5683-5,
0-2224-8861,
0-2224-9677,
0-2224-9907,
0-2225-1982
Charansanitwong Soi 13
0-2410-2866
Bang Mot
0-2896-6953,
0-2415-3724-5
0-2415-1616
0-2410-2848,
0-2410-2772,
0-2410-2853,
0-2410-2927
Bang Na
0-2396-1778,
0-2393-0433-5,
0-2398-4984-5,
0-2398-8054-5
0-2399-4609
Charoen Nakhon
0-2437-0025-7,
0-2437-9124-5,
0-2438-9955
0-2438-0564
Bang Pho
0-2912-7170,
0-2585-9989,
0-2585-7334-5
0-2912-7095
Bang Khlo
Bang Kho Laem
Nationwide Branches
Branch
Telephone
0-2521-4008
Lat Ya
0-2438-1166,
0-2437-7784-6,
0-2861-5050-5
0-2439-1047
Lumphini
0-2254-5853,
0-2251-1575,
0-2252-1249,
0-2251-1598
0-2254-5854
Min Buri
0-2918-5407-10,
0-2918-9100-1
0-2918-5406
On Nuch
0-2742-2139,
0-2742-2130-3
0-2742-2138
Pahon Yothin
0-2271-0413,
0-2271-0371-4
0-2271-0375
Phet Kasam Soi 69
0-2421-4153-4,
0-2421-4150
0-2421-4130
Phet Kasem Soi 114
0-2810-7054-62
0-2810-7063
Phet Kasem Soi 29
0-2458-0411,
0-2457-9281-5
0-2458-0413
Phlapphla Chai
0-2223-8397,
0-2621-6438,
0-2221-2243,
0-2222-9963,
0-2224-9635,
0-2225-8319,
0-2225-8321
0-2225-8318
Phloenchit
0-2255-5903-4,
0-2255-6805-8,
0-2255-8993,
0-2255-6819
0-2255-6809
0-2226-1945,
0-2225-4464,
0-2226-1945
0-2225-9709
0-2378-2230
Phra Barom Maha
Ratchawang
0-2933-1560-5
0-2512-3075
Phra Ram 9
0-2246-8500
0-2738-0719,
0-2738-0091,
0-2738-0692,
0-2738-0812,
0-2738-0814,
0-2738-0680
0-2738-0534
0-2247-9460-5,
0-2247-2771
Phra Ram IV
0-2712-3012,
0-2712-3005-11
0-2381-4034
Phra Ram IV
(Sirinrat Building)
0-2367-5229-36
0-2367-5010
Pin Klao
0-2434-5426
0-2326-1163-5
0-2326-1166
0-2884-5849,
0-2884-5844-8,
0-2435-5123-4
Chitralada Palace
0-2281-9984,
0-2281-3489,
0-2281-7082
0-2281-7081
Chokchai 4 Plaza
0-2933-4051-2
0-2933-4053
Dao Kanong
0-2877-8368,
0-2877-8362-6
0-2877-8367
Ekkamai
0-2391-4243,
0-2392-3613-5
0-2391-4244
Hua Mak
0-2375-0987,
0-2377-4115-7,
0-2377-4032,
0-2375-5050,
0-2375-5078
0-2377-4031
0-2226-4057,
0-2222-1118-9,
0-2226-4057-8
0-2224-4641
Kasetsart University
0-2561-3495-6
0-2561-3497
King Mongkut’s
Institute
0-2326-4384-5,
0-2737-4945,
0-2737-4983
0-2326-4384
Klong Chan
0-2377-1396-7
0-2377-1395
Klong Tan
0-2717-2650-7
0-2319-7190
Lad Prao Soi 10
0-2938-4894-5,
0-2511-4136,
0-2513-1507-8,
0-2513-3129
0-2512-3093
Lad Prao Soi 111
0-2378-2233,
0-2734-3424-9
Lad Prao Soi 59
Ladkrabang
Ladkrabang Industrail Estate
Fax
0-2973-3651-4,
0-2521-4652-3,
0-2521-0254-5,
0-2521-1672
0-2255-1609
Hua Met
Telephone
Lak Si
0-2256-1120,
0-2256-1122,
0-2256-1125-7,
0-2256-1129,
0-2256-1259,
0-2256-1114,
0-2256-1117,
0-2256-1140-1
Chidlom
Branch
Fax
Nationwide Branches
Branch
Telephone
Fax
0-2586-8988,
0-2586-8998,
0-2586-9229,
0-2586-8825-7
0-2585-0202
0-2591-8077,
0-2588-2629,
0-2588-2339
0-2591-3630
Rajavithi Hospital
0-2354-7352,
0-2644-7377
0-2354-7350
Ramathibodi
0-2354-7231,
0-2354-7221-4,
0-2644-7400-5
0-2354-7220
Ram-inthra KM.10
0-2918-0840-2,
0-2918-0838-9
0-2918-0845
Ram-inthra KM.4.5
0-2943-7026,
0-2519-4840-2,
0-2509-2889-90
0-2519-4844
Ratchadamnoen Klang
0-2282-4492,
0-2281-5905-6,
0-2281-6522,
0-2282-9065
0-2282-0642
Ratchawat
0-2243-6852,
0-2243-6846-51
0-2243-6855
Ratchawong
0-2226-1138,
0-2223-8055,
0-2221-8297,
0-2223-4021,
0-2222-9479
0-2226-1109
Ratchayothin
0-2544-3480-2,
0-2544-3467,
0-2544-3473,
0-2544-3477
0-2544-5845
Samyeak Faichai
0-2418-3659,
0-2418-3656-8,
0-2418-2558-9
0-2418-2586
Sapha Kachat Thai
0-2253-8424,
0-2254-1555-7,
0-2252-7237
0-2252-7236
Saphan Khwai
0-2616-7083-6
0-2616-7062
Saphan Luang
0-2266-5495,
0-2233-7366-7,
0-2234-7128-9,
0-2233-4625
0-2235-8156
Saphan Mai Don Muang
0-2551-2369,
0-2551-0556-9
0-2551-0560
Sathupradit
0-2294-7028,
0-2294-0326-7
0-2294-9775
Pracha Chun
Pracha Niwet 1
Branch
Telephone
Fax
Seri Center
0-2746-0407-8
0-2746-0401
Siam Square
0-2254-1670,
0-2251-4820-2,
0-2252-7226-7
0-2254-1671
Siam Paragon
0-2610-9344-5
0-2610-9346
Silom
0-2267-0195,
0-2235-6314-9
0-2235-6313
Siriraj
0-2412-1009,
0-2419-8353-4,
0-2411-3066,
0-2411-0472
0-2418-2587
Siyeksiwara
0-2935-6140-5
0-2935-6146
Soi Arisamphan
0-2618-5247,
0-2271-4997-8
0-2618-5249
Soi Chai Yot
0-2651-2034,
0-2651-2030-2,
0-2255-1130-1
0-2651-2033
Soi Chok Chai 4
0-2530-6094,
0-2530-4350-1
0-2530-4305
Soi Muban Sena Niwet
0-2570-0501,
0-2570-1351
0-2570-1665
Soi Muban Setthakit
0-2444-3099,
0-2444-3096-8
0-2444-3100
Soi Pracha Songkho 30
0-2692-5115,
0-2692-5116-9
0-2692-5120
Soi Ramkhamhaeng 24
02-319-6012-4,
02-319-6787-8
0-2319-6789
Soi Saint Louis 3
0-2213-2307,
0-2211-1359,
0-2213-2411-2
0-2213-2315
Soi Thonglo
0-2714-9690,
0-2391-7337-8,
0-2714-9691-5
0-2391-1496
Sukhumwit Soi 101/1
0-2747-7729,
0-2747-7768-9
0-2747-7764
Sukhumwit Soi 3/1
0-2254-1579,
0-2254-1578-9,
0-2255-4819
0-2253-4159
Sukhumwit Soi 71
0-2381-4578,
0-2392-9114-5
0-2392-9408
Surawong
0-2236-7591,
0-2233-7115-9,
0-2233-7264,
0-2233-7716
0-2236-7590
Nationwide Branches
Branch
Telephone
Fax
Surawong 2
0-2233-3289,
0-2237-9135-9,
0-2237-4710-3
0-2236-1269
Sutthisan
0-2277-8759,
0-2277-1674-5,
0-2275-7477-8
0-2277-4669
0-2266-8937,
0-2237-5000-5,
0-2235-5275,
0-2235-7021,
0-2235-0848-9
0-2235-7020
Talat Phlu
0-2472-1760-5 ,
0-2472-1216-7
0-2465-7992
Talatyingcharoen
0-2552-8224-5
0-2552-8236
Taopun
0-2911-5867,
0-2911-5860-6,
0-2911-5860,
0-2911-5862-3,
0-2911-5865-6
0-2911-5869
Tha Phrachan
0-2222-1062,
0-2226-3594,
0-2222-7431
0-2222-1062
Thanon Chan
0-2673-0362-8,
0-2211-1433-4,
0-2211-9955
0-2211-9966
Thanon Cherd Wutthakat
(Don Muang)
0-2566-4259,
0-2565-2046-52
0-2565-2053
Thanon Ekkachai
0-2895-2106,
0-2895-2171-2
0-2895-2500
Thanon Nawamin
0-2519-4906-10
0-2948-4010
Thanon Nuanchan
0-2944-4833-9
0-2944-4840
Thanon Phat Thanakan
0-2722-3024,
0-2722-3025-6
0-2722-3029
Thanon Phetchaburi
0-2216-0821,
0-2215-7302-5
0-2215-2455
Thanon Phetchaburi Tat Mai
0-2319-3008,
0-2319-7211-4,
0-2319-7187-8
0-2319-7189
Thanon Phetchaburi Tatmai
(Thanapoom Tower)
0-2255-7673-4
0-2255-7675
Thanon Phra Ram 2 (KM 7)
0-2416-1213-8
0-2416-1220
Thanon Phracha U-Thit
02-870-9067,
02-870-9060-5
0-2870-9066
Thanon Raminthra
(Fashion Island)
0-2947-5117-8
0-2947-5119
Talat Noi
Branch
Telephone
Fax
Thanon Ramkhamhang
0-2717-2526-30,
0-2717-2530,
0-2318-5111,
0-2318-5115
0-2318-5089
Thanon Ramkhamhang
(Sammakorn)
0-2729-4604,
0-2729-4605-8,
0-2729-4816-7
0-2729-4818
Thanon Ratchadaphisek
0-2246-0159,
0-2247-9466-7,
0-2246-5335-6
0-2247-5334
Thanon Ratchadaphisek 2
0-2692-5200,
0-2274-0724,
0-2274-0729
0-2274-0761
Thanon Ratchadapisek
(Thaphra)
0-2476-8517,
0-2476-1313-4
0-2468-8858
Thanon Ratchadapisek 3
(Telecom Tower)
0-2643-0143,
0-2643-0131-5,
0-2643-0142
0-2643-0144
Thanon
Rattanakosinsompote
(Bann Mak Mai)
0-2533-3251,
0-2533-3320
0-2533-3367
Thanon Sanphawut
0-2744-7440,
0-2744-7437-8
0-2744-7445
Thanon Sathon
0-2676-5537,
0-2676-5534-6,
0-2676-5522-4
0-2676-5533
Thanon Serithai (Suan Siam)
0-2906-0699,
0-2906-0515,
0-2906-0450,
0-2906-0544
0-2906-0834
Thanon Si Nakarin
(Krung Thep Kritha)
0-2731-7400-4
0-2379-6090
Thanon Si Nakarin
(On Nuch)
0-2322-9408,
0-2322-0963-6
0-2322-0967
Thanon Si Nakarin
(Seacon Square)
0-2721-9207-8
0-2721-9209
Thanon Si Nakarin
(Udom Suk)
0-2361-8013,
0-2361-8011-2,
0-2396-0469-70
0-2398-0109
Thanon Silom (CP Tower)
0-2233-1727-8
0-2233-1729
Thanon Sirinthon
0-2881-0680,
0-2881-0682-6
0-2881-0689
Thanon Sukhaphiban 1
(Tha Kaset-Bangkhae)
0-2454-3855,
0-2802-4615-9
0-2454-3863
Nationwide Branches
Branch
Telephone
Fax
Thanon Suksawat
0-2428-6548-49,
0-2427-0561-5,
0-2428-6553,
0-2428-6551
0-2427-0565
Thanon Taksin
0-2437-9236,
0-2439-6487-9
0-2437-5413
Thanon Wiphawadi Rangsit
(Don Muang)
0-2533-5944
0-2533-4073
Thanon Witthayu
0-2255-8998,
0-2650-9500-10,
0-2263-2255-6,
0-2263-2271-2
0-2255-8838
Thanon Witthayu
(All Seasons Place)
0-2654-0417-9
0-2654-0420
Thanon Wongwaenrobnok
(Bang Waek)
0-2885-8531,
0-2885-8532-9
0-2885-8530
Thanon Wutthakat
0-2465-1979,
0-2472-1668-9,
0-2465-1996,
0-2466-1576
0-2472-1670
Telephone
Fax
United Nations Building
0-2288-1312,
0-2288-2168-70,
0-2288-1313,
0-2288-2159
0-2282-9032
Victory Monument
0-22468482-8
0-2246-8490
Watcharaphol
0-2509-1949-50
0-2509-1998
Wisut Kasat
0-2282-2155,
0-2282-8561-2,
0-2629-3104-5,
0-2629-0637
0-2282-5815
Yaowarat
0-2224-8161,
0-2225-6856-7,
0-2224-2188-9,
0-2224-2148
0-2226-1944
Abdulrahim Place
0-2636-1004-5
0-2636-1006
Bansomdejchaopraya
Rajabbat University Sub
0-2466-6946-7
0-2466-6948
Big C Chaengwatthana Sub
0-2990-7631-2
0-2990-7633
0-2411-0343,
0-2864-1573-4,
0-2411-1964,
0-2411-2439
0-2418-2585
Big C Daokhanong Sub
0-2460-1266-7
0-2460-1270
Big C Phraram 2 Sub
0-2453-2010,
0-2453-2116
0-2453-2251
Big C Ratburana Sub
0-2873-1227-8
0-2873-1229
The Compound
(Thanonprayasuren)
0-2540-6667-8
0-2540-6675
Big C Saphanmai
Donmueang Sub
0-2551-0718-9
0-2551-0867
The Crystal Park
(Thanonpraditmanutham)
0-2515-0757-8
0-2515-0759
Big C Suksawat Sub
0-2462-8742-3
0-2462-8744
Bo Bae Sub
0-2282-8256-7
0-2282-7816
The Custom Department
0-2240-0916-9
The Mall 3 Ramkhamhang
0-2369-2595-6
0-2240-0918
Bon Marche Market Sub
0-2591-2127
0-2591-2136
0-2369-2597
The Mall Bangkae
Carrefour Onnut Sub
0-2730-3078-9
0-2730-3192
0-2454-9609-11
0-2454-9602
Carrefour Phraram 2 Sub
0-2451-3604
The Mall Bangkapi
0-2377-9064-6
0-2377-8180
0-2451-3600,
0-2451-3602
The Mall Thapra
0-2477-7282-3
0-2477-7284
Carrefour Phraram 4 Sub
0-2670-8544-5
0-2670-8506
0-2282-4133,
0-2282-8656-7,
0-2282-7751,
0-2282-1565
0-2282-7752
Carrefour Ratchadaphisek
Sub
0-2642-3024-5
0-2642-3026
Central Huamark Sub
0-2718-5796-7
0-2718-5792
0-2224-5288,
0-2221-7646-7,
0-2224-4632-5,
0-2222-6640-1
0-2224-5289
Central Raminthra Sub
0-2552-8157-8
0-2552-8159
Central Wongsawang Sub
0-2586-0401
0-2586-0425
Central World Plaza Sub
0-2646-1023-4
0-2646-1025
0-2248-1526-7
0-2248-1528
0-2233-8026-7
0-2233-8028
Century The Movie Plaza
Sub
Charansanitwong Soi 48 Sub
0-2883-0401,
0-2883-0402-3
0-2883-0404
Charoen Krung Soi 107 Sub
0-2688-5377,
0-2688-5371-2
0-2688-5376
Thaphra
Thewet
Tri Phet
United Center Building
(Silom)
Branch
Sub Branch
Nationwide Branches
Branch
Telephone
Fax
Sub Branch
Branch
Telephone
Fax
Sub Branch
Charoen Krung Soi 72 Sub
0-2688-1257,
0-2688-1255-59
0-2688-1260
Muban Nakkrila Laemthong
(Krungthep Kritha) Sub
0-2368-3026,
0-2368-3029
0-2368-3009
Chom Thong 19 (Wat Sisuk)
Sub
0-2477-2072-3
0-2477-2082
Nana Square Sub
0-2655-7132-3
0-2655-7134
Pahonyothin Soi 52 Sub
0-2972-1146-9
0-2972-1150
City Complex Pratunam Sub
0-2253-7673-4
0-2253-7675
Pakkhlongtalad 1 Sub
0-2623-6583-4
0-2623-6585
City Resort Sukhumwit 39
Sub
0-2261-4835-6
0-2261-4837
Phet Kasem Soi 18 Sub
0-2457-9591-3
0-2457-4367
Department of Land
Transport Sub
0-2272-4410-1
0-2272-4412
Ploenchit Center Sub
0-2251-5854-5
0-2251-5856
0-2343-8780-1
0-2343-8782
Dhurakijpundit University
Sub
0-2591-5291,
0-2591-2967
0-2591-2737
Q-House Lumphini Building
Sub
0-2244-8072-3
0-2244-8095
Ekkamai Power Center Sub
0-2714-8357-8
0-2714-8359
Rajabhat Suan Sunundha
University Sub
Esplanade Sub
0-2248-1026-7
0-2248-1028
Ramkamhang 24
(Assumtion) Sub
0-2300-6511-2
0-2300-6513
Exchange Tower Sub
0-2663-7671-2
0-2663-7650
Ramkhamhang 2 Sub
0-2804-7584-5
0-2804-7586
0-2728-4455,
0-2740-9314
0-2720-9531
Future Park Bangkae Sub
Goldenplace (Thanon
Praditmanutham) Sub
0-2936-6737-8
0-2936-6849
Rongmueang Sub
0-2215-0542-3
0-2215-0544
Sam Sen Sub
0-2211-1836-7
0-2211-1980
0-2241-0960,
0-2241-0584,
0-2241-0156
0-2241-4139
Green Place
(Soi Watphaingoen) Sub
Hospital for Tropical
Diseases Sub
0-2354-6224-5
0-2354-6226
Sampheng Sub
0-2226-2197-8
0-2226-2224
Seacon Square 2 Sub
0-2721-8872-3
0-2721-8937
Hua Chiew General Hospital
(Yossae) Sub
0-2223-7252-3
0-2223-7254
Serm-mit Tower Sub
0-2665-7465-6
0-2665-7446
Imperial World Ladprao Sub
0-2538-7651
0-2538-7622
Si Ayutthaya Building Sub
0-2247-9541-2
0-2247-9544
IT Square (Laksi) Sub
0-2576-0540-1
0-2576-0542
Si Kug Sao Ching Cha Sub
0-2622-2235-8
0-2622-2238
J.J. Mall Sub
0-2265-9373-4
0-2265-9375
Siripinyo Building
(Thanonsiayutthaya) Sub
0-2245-1150-1
0-2245-1152
Kasetsart (Bangkhen)
University Sub
0-2579-9394-5
0-2579-9397
Siyaekkaset Sub
0-2579-9300,
0-2579-9363
0-2579-9375
Kheharomklao Sub
0-2557-1132-3
0-2557-1134
Soi Lasal Sub
0-2399-5561-2
0-2399-5563
Khubon Sub
0-2510-5274,
0-2510-5278
0-2510-5897
Soi Latphrao 101
(Watbuengthonglang) Sub
0-2376-0626
0-2376-0927
King Mongkut’s University
of Technology Thonburi Sub
0-2427-8922-3
0-2427-8924
Soi Mahadthai Sub
0-2538-4026,
0-2538-4118
0-2538-4558
Latphrao Soi 71 Sub
0-2539-1704,
0-2539-4500
0-2539-7154
Sriworachak Building Sub
0-2221-2975-6
0-2221-2973
Maboonkrong 2 Sub
0-2686-3953-4
0-2686-3955
SSP Tower 3 Sub
0-2634-4065-6
0-2634-4067
Maboonkrong Sub
0-2611-4844,
0-2611-4855
0-2611-4866
Suanchatuchak Sub
0-2615-8605-6
0-2615-8607
0-2988-3412-3
0-2988-3554
0-2286-3120,
0-2286-3150
0-2286-2093
Mahanakorn University of
Technology Sub
Suanphlu Corner Building
Sub
0-2624-3625-6
0-2624-3627
Minburi Market Sub
0-2517-1957,
0-2517-1965
0-2517-1972
Sukhumwit Subway Station
Sub
0-2617-7550-1
0-2617-7552
Muban DK (Bangbon) Sub
0-2417-0732
0-2417-0760
Suntowers Building (Thanon
Vibhavadi-rangsit) Sub
Supalai Grand Tower
(Phraram 3)
0-2683-0506-7
0-2683-0508
Nationwide Branches
Branch
Telephone
Fax
Sub Branch
Branch
Telephone
Fax
Sub Branch
Surawong 3 Sub
0-2234-5046-7
0-2234-5048
0-2329-1707-8
0-2329-1709
0-2682-5492
Thanon Latkrabang
(999 Market) Sub
SV City Tower (Phraram3)
Sub
0-2682-5181-2
0-2548-0210-1
0-2548-0212
0-2872-9022-3
0-2872-9024
Thanon Liapkhlongsong
(Safariworld) Sub
Taladmaithungkhru
Taladsiyan Sub
0-2667-4158-9
0-2667-4160
0-2634-2088-9
0-2634-2090
Tesco Lotus Bangkapi Sub
0-2378-1743,
0-2378-1760
0-2378-1655
Thanon Phatphong (Silom)
Sub
0-2716-0142-3
0-2716-0144
Tesco Lotus Bangkae Sub
0-2455-6623-4
0-2455-7382
Thanon Phetburitatmai
(ItalThai Tower) Sub
Tesco Lotus Bangpakok Sub
0-2428-9246-7
0-2428-9255
0-2424-2085-6
0-2424-2985
0-2912-8005,
0-2912-8002-4
0-2912-8006
Tesco Lotus Charan
Sanitwong Sub
Thanon Pracharat Sai 1
(Bang Po) Sub
0-2274-3524-5
0-2274-3535
Tesco Lotus Fortune Town
Sub
0-2641-1192-3
0-2641-1194
Thanon Prachauthit
(Mengchai) Sub
0-2805-4406-7
0-2805-4408
Tesco Lotus Laksi Sub
0-2971-3427-8
0-2971-3429
Thanon Putthamonthonsai
2 Sub
Tesco Lotus Latphrao Sub
0-2513-6551
0-2513-6803
0-2360-8814-5
0-2360-8816
Tesco Lotus Pata Pinklao Sub
0-2433-5617-8
0-2433-5622
Thanon Romklao
(Rungkit 7) Sub
Tesco Lotus Phraram 1 Sub
0-2214-1427-8
0-2214-1429
Thanon Saimai Sub
0-2532-4922-3
0-2532-4924
0-2415-8610
0-2415-8639
Thanon Sathonnua Sub
0-2237-1672-3
0-2237-1674
0-2284-3092,
0-2284-3094
0-2284-3084
Thanon Songprapa
(Donmuang Plaza) Sub
0-2928-3510-1
0-2928-3526
Tesco Lotus Pinklao Sub
0-2433-8991,
0-2433-8994
0-2433-8996
Thanon Songwat Sub
0-2221-9501-2
0-2221-9503
Thanonphetburi Soi 4 Sub
0-2215-9171-2
0-2215-9396
Tesco Lotus Prachachuen
Sub
0-2556-1457-8
0-2556-1459
The Mall Bangkapi 2 Sub
0-2704-9124-5
0-2704-9126
0-2252-3121-2
0-2252-3123
Tesco Lotus Wanghin Sub
0-2578-6218-9
0-2578-6220
The Platinum Fashion Mall
Sub
Thaisri Tower (Somdejphrachaotaksinmaharat Bridge)
Sub
0-2439-3493-4
0-2439-3495
The Royal Household
(Sanamsueapa) Sub
0-2280-4044-5
0-2280-4046
Times Square Sub
0-2254-3070-1
0-2254-3072
Thanamphrannok Sub
0-2411-0714-5
0-2411-1246
Tops Central Latphrao Sub
0-2937-1284-5
0-2937-1286
Thaniya Building (Silom) Sub 0-2235-7814-5
0-2235-7816
Tops Pinklao Sub
0-2884-7303-4
0-2884-7627
Thanon Bangkhunthianchaithale Sub
0-2417-0898
0-2417-0927
Tops Sukhaphiban 3 Sub
0-2372-2541-2
0-2372-2543
Tops Union Mall Sub
0-2511-0215
Thanon Charoenkrung
(Khlongthom) Sub
0-2224-1817
0-2224-1820
0-2511-0207,
0-2511-0210
Tops Yaowarat Sub
0-2221-6816-7
0-2221-6820
Thanon Cheam Samphan
(Mahanakhon) Sub
0-2548-2955-6
0-2548-2957
Udomsuk (Soi Sukhumwit
103) Sub
0-2746-6856-7
0-2746-6858
Thanon Chaengwatthana
(TOT) Sub
0-2575-5690-1
0-2575-5692
0-2275-7213-4
0-2275-7215
Thanon Dindaeng Sub
0-2641-6172,
0-2640-5583-6
0-2640-5587
Wiphawadi Rangsit
(Chakrapong Phuvanarth)
Sub
Wongwanodien Sub
0-2222-0326-7
0-2222-0196
Thanon Issaraphap Sub
0-2472-7676-9
0-2472-7681
Wongwian 22 Karakada Sub
0-2221-6590
Thanon Karnchana Pisek
(JET Wongwaen
Bangkae 2) Sub
0-2448-3652,
0-2448-3676
0-2448-3683
0-2224-5716-7,
0-2221-0278
Wongwian Center
0-2454-2631-2
(Thanonkanchanaphisek) Sub
0-2454-7540
Nationwide Branches
Branch
Telephone
Fax
Branch
Telephone
Nonthaburi
Sub Branch
Yaek Bangrak Sub
0-2234-5981-2
0-2234-5983
Vicinity
Nonthaburi
Fax
Electricity Generating
Authority of Thailand Sub
0-2447-0951,
0-2447-1484
0-2447-1960
Homepro Prachachuen Sub
0-2591-2445,
0-2591-2466
0-2591-2485
Homepro Ratchaphruek Sub
0-2423-3362-3
0-2423-3364
Major Cineplex Nonthaburi
Sub
0-2525-4385-6
0-2525-4387
Muangthongthani
City Center Sub
0-2980-7009-10
0-2980-7011
Pantip Plaza Ngamwongwan
Sub
0-2580-9609,
0-2580-9625
0-2580-9658
Talat Amphoe Bang Kruai
Sub
0-2446-7080-2
0-2446-7083
Tha It Sub
0-2595-8394-5
0-2595-8396
Thanam Nonthaburi Sub
0-2525-4322-3
0-2525-4324
0-2925-0193
0-2925-0392
0-2574-5985-6
0-2574-5987
Bang Bua Thong
0-2924-3040-3
0-2924-3047
Bang Yai
0-2595-1281-4
0-2595-1280
Central Rattanathibet
0-2526-8120-1
0-2526-8128
Ministry of Public Health
0-2589-8344,
0-2590-7210
0-2589-7943
Muang Thong Thani
0-2960-1010,
0-2960-1012-6
0-2960-1019
Ngam Wongwan
0-2589-2375-8
0-2591-5190
Nonthaburi
0-2526-3604,
0-2525-3045,
0-2525-2000,
0-2968-3061-2
0-2525-0146
Pak Kret
0-2960-8742,
0-2583-8814-9
0-2583-8052
Thanon Karnchnapisek
(Banbuathong) Sub
Sai Noi
0-2597-1156,
0-2597-1202-4
0-2597-1201
Thanon Samakhi Sub
Sanam Bin Nam
0-2591-7905,
0-2588-1541
0-2591-7904
Bang Kadi
0-2963-7140-6
0-2501-2804
Future Park Rangsit
0-2968-1130,
0-2968-1134,
0-2526-2948-9
0-2526-3544
0-2958-0470,
0-2958-0749
0-2958-0269
Saphan Phranangklao
Khlong 10 (Thanyaburi)
0-2908-9064-7,
0-2546-1305-8
0-2546-1304
Senasaritdet
0-2525-2990,
0-2525-2236,
0-2525-0402
0-2525-2562
0-2533-0267-9,
0-2533-0867
0-2533-1645
Soi Wat Bua Khwan
0-2952-1102-5
0-2952-1106
0-2577-2812
Thanon Chaeng Watthana
0-2573-7200-2
0-2982-9886
0-2577-2813-4,
0-2577-2810,
0-2577-1490
Thanon Rattanatibast
0-2921-0931-8
0-2921-0930
Khlong Luang
0-2516-8573
The Mall Ngamwongwan
0-2550-0916-7
0-2550-0918
Wat Sri Pa-wat
0-2903-8935-8
0-2903-8934
0-2516-0999,
0-2516-8888-9,
0-2516-8016-7,
0-2516-5454
333 Factoryland
Bangbuathong Sub
0-2964-4970-1
0-2964-4969
Ku Kot (Klong 2)
0-2995-9977,
0-2995-9975-6
0-2995-9973
Bangyai (Watkhongkha) Sub
0-2924-8233
0-2924-8235
Lam Luk Ka
0-2531-5248
Big C Rattanathibet Sub
0-2921-3103-4
0-2921-3105
Big C Tiwanon Sub
0-2968-4160-1
0-2968-4162
Buathong Square (Thanonbangkruai-Sainoi) Sub
0-2594-6185-6
0-2594-6187
0-2532-2678,
0-2531-9280,
0-2531-5248,
0-2531-2678,
0-2531-0514,
0-2531-1117
Carrefour Chaengwatthana
Sub
0-2584-2402,
0-2584-2715
0-2584-2752
Pathum Thani
0-2581-2996-8
0-2581-1743
Rangsit
0-2959-0022
Carrefour Rattanathibet Sub
0-2589-8930,
0-2589-9391
0-2598-9736
0-2959-0151-2,
0-2959-0013-8
Sub Branch
Pathum Thani
Nationwide Branches
Branch
Telephone
Pathum Thani
Fax
Branch
Telephone
Samut Prakan
Fax
Sam Khok
0-2977-2481-3,
0-2593-1268-70
0-2593-1271
Bang Na-Trad
(Bangna Tower)
0-2312-0210-4,
0-2312-0250-6
0-2312-0214
Saphan Nonthaburi
0-2598-2530-2
0-2598-2533
Bang Pu
0-2323-4088
Thanon Nimitrmai
0-2993-0380,
0-2993-0385-6,
0-2993-0380
0-2993-0384
0-2323-4089,
0-2323-4084-7
Big C Samutprakarn
0-2388-1416-7
0-2388-1418
Imperial World (Samrong)
0-2384-7657-8,
0-2384-3681-2
0-2384-3681
AIT Institute Sub
0-2524-5098-9
0-2524-6709
Muang Mai Bang Phli
0-2315-2228
Banfapiyarom (Lamlukka)
Sub
0-2532-6263,
0-2532-6272
0-2532-6494
0-2705-2170,
0-2705-2167-9,
0-2315-2223-7
Big C Lamlukka Sub
0-2152-7167-8
0-2152-7169
Phra Pradaeng
0-2817-2993
Big C Rangsit Sub
0-2958-5226-7
0-2958-5228
Future Park Rangsit 2 Sub
0-2958-5046-7
0-2958-5048
0-2817-1450,
0-2817-1451-4,
0-2817-1603-6
J-venue (Nawanakorn) Sub
0-2529-1566,
0-2529-1663
0-2529-4003
Samrong
0-2744-5321,
0-2396-1596-8
0-2393-2108
Lat Lum Kaew Sub
0-2976-2556-61
0-2976-2558
Samut Prakan
0-2387-1994
Major Cineplex Rangsit Sub
0-2567-7105-6
0-2567-7107
0-2389-4189,
0-2387-1995-8
Navanakorn Industrial Estate
Sub
0-2529-5708-9
0-2529-5710
Thanon Kingkaew (Onnuch)
0-2312-4873-6
0-2312-4481
0-2549-1037-9,
0-2905-9066
0-2905-9065
0-2757-8890-2,
0-2394-1523-4
0-2384-5092
Nong Sua Sub
Thanon Pu Chao Saming
Phrai
0-2598-4149,
0-2598-4367
0-2598-4495
0-2748-7191,
0-2748-7726,
0-2748-7989,
0-2748-7493
0-2748-7069
Poonsab Market Sub
Thanon Si Nakarin
(Soi Lazal)
Thanon Si Samut
0-2389-2772-4
0-2389-2777
Thanon Sukhumwit
0-2384-1459-61,
0-2384-1435-6
0-2384-1462
Sub Branch
Simummuang (Mubansiwali) 0-2536-7712-3
Sub
0-2536-7714
Tesco Lotus Lamlukka Sub
0-2569-1121
0-2569-1142
Tesco Lotus Rangsit Sub
0-2567-4801,
0-2567-4940
0-2567-5066
Thanon Thepharak
(Maleerom Tower)
0-2706-6010,
0-2706-6012-4
0-2706-6015
Tesco Lotus Rangsitkhlong
7 Sub
0-2577-1441-2
0-2577-1443
Thepha Rak
0-2385-1242-3,
0-2385-1005-7
0-2385-1258
Tesco Lotus RangsitNakhonnayok Sub
0-2549-9062-3
0-2549-9064
Thai Market Sub
0-2529-6123-4
0-2529-6125
Bang Pu Industrial Estate 2
Sub
0-2324-1037-8
0-2709-3426
Thaithani (NawanakhonPathumthani) Sub
0-2529-5481-2
0-2529-5483
Big C Brangphli Sub
0-2751-0406-7
0-2751-0408
Thanonliapkhlongsam
(Rangsit-Nakhonnayok) Sub
0-2504-09991000
0-2504-1001
Carrefour Samrong Sub
0-2380-3528-9
0-2380-3530
Carrefour Sinakharin Sub
0-2758-8402-3
0-2758-8404
Zeer Rangsit Sub
0-2992-7060-1
0-2992-7062
Homepro Bangna Sub
0-2325-1226-7
0-2325-1228
Soi Watdansamrong Sub
0-2757-3049-50
0-2757-3051
Suvarnabhumi 2 E Sub
0-2135-4539-41
0-2135-4542
Suvarnabhumi 2 W Sub
0-2135-4543-4
0-2135-4545
Suvarnabhumi 3 M Sub
0-2135-4546-8
0-2135-4549
0-2135-4550-1
0-2135-4552
0-2135-4553-5
0-2135-4556
Samut Prakan
Bang Bo
Bang Khru (Phra Pradaeng)
0-2708-3768,
0-2338-1939,
0-2338-1064
0-2338-1938
0-2817-7427-31
0-2817-7432
Sub Branch
Nationwide Branches
Branch
Telephone
Branch
Fax
Telephone
Fax
Chaiyaphum
Sub Branch
0-2327-4916-7
0-2327-4923
Chaiyaphum
0-4482-2007,
0-4482-2011
0-4482-2401
Taladmuangmaibangphli Sub 0-2705-6525-6
0-2705-6527
Chatturat
0-4485-1220-1
0-4485-1222
0-4480-0304,
0-4489-9123-4
0-4480-0307
0-4489-1110-1
0-4489-1112
Suvarnabhumi Airport (Thai
Airways International) Sub
Tesco Lotus Bangna-Trat Sub
0-2325-0364-5
0-2325-0366
Sub Branch
Tesco Lotus Bangpu Sub
0-2710-9046-7
0-2710-9048
Ban Khai Sub
Tesco Lotus Citypark
Bangphli Sub
0-2706-1743-4
0-2706-1156
Thanon Nakhon Khuankhan
Sub
0-2464-0770,
0-2464-0772
0-2464-0774
Thanonwatsiwarinoi Sub
0-2740-6173,
0-2740-6274
0-2740-6276
0-2750-5134-5
0-2750-5845
Thepharak KM.16 Sub
Upcountry
Amnat Charoen
Amnat Charoen
0-4551-1772-3
0-4551-1774
0-3561-1618
0-3661-1617
0-3569-9125-7
0-3569-9124
Sub Branch
Chaiyo Sub
Chanthaburi
Chanthaburi
0-3932-0894-7
0-3932-1143
Thanon Tri Ratana
0-3934-0224-8
0-3934-0223
0-3945-8836-7
0-3945-8838
0-3932-5416-7
0-3932-5407
Sub Branch
Pliu Sub
Robinson Chanthaburi Sub
Ang Thong
Ang Thong
Ban Khwao Sub
Buri Ram
Buri Ram
0-4461-2909-10
0-4461-3651
Nang Rong
0-4462-4395-6
0-4462-4397
Sub Branch
Chiang Mai
Chiang Mai University
0-5322-0313-4
0-5322-0316
Chom Thong
0-5334-1130-2
0-5334-1131
Faculty of Medicine Chiang
Mai
0-5321-2136,
0-5322-2094
0-5321-3493
Fang
0-5345-2077-9
0-5345-2081
Mae Joe
0-5349-8186-90
0-5349-8191
Mc Cormick Hospital
0-5330-0250,
0-5330-0252-5
0-5330-0251
Pratu Chang Phuak
0-5321-3661,
0-5322-5488
0-5322-2090
Big C Buriram Sub
0-4411-0225-6
0-4411-0227
Satuek Sub
0-4462-7727-8
0-4462-7729
Pratu Chiang Mai
0-5327-9722-5
0-5327-6564
San Pa Thong Sub
0-5382-3411-5
0-5382-3416
Si Yaek San Kamphaeng
(Nongphakrung)
0-5311-6511-3,
0-5311-6515-7,
0-5311-6211
0-5311-6514
Si Yaek Sanambin
Chiang Mai
0-5327-3888-90,
0-5328-1846-47,
0-5328-1849
0-5328-1848
Sri Nakhonphing
0-5323-3637,
0-5323-4516,
0-5323-4611
0-5323-3201
Tha Phae
0-5382-1129-30,
0-5327-2501
0-5327-2465
Thanon Muang Samut
0-5325-2990-2
0-5325-2966
Thung Sieo (San Pa Tong)
0-5348-1019-21
0-5383-4030-35
0-5348-1018
0-5344-2739,
0-5344-2748
0-5344-2515
Chachoengsao
Bang Khla
0-3882-7490-2
0-3882-7495
Bang Pakong
0-3853-2486-9
0-3853-2948
Chachoengsao
0-3851-4744-5
0-3851-2542
Khlong 16
0-3858-5014-9
0-3858-5016
Phanom Sarakkham
0-3855-2526-8
0-3855-2529
Sub Branch
Banpho Sub
0-3857-8789-90
0-3857-8791
Big C Chachoengsao Sub
0-3853-5023-4
0-3853-5011
Talat Bo Bua Sub
0-3851-4781-2
0-3851-4783
Wellgrow Industrial Estate
Sub
0-3884-2797-8
0-3884-2787
Chai Nat
Chai Nat
0-5641-1914-5
0-5641-1913
Wat Sing
0-5646-1290
0-5646-1012
Sub Branch
Bantawai Sub
Nationwide Branches
Branch
Telephone
Branch
Fax
Sub Branch
Telephone
Fax
Sub Branch
Big C Chiang Mai Sub
0-5385-1613-4
0-5385-1615
Big C Hangdong Sub
0-5344-7840-1
0-5344-7842
Bo Sang Sub
0-5333-9718-9
0-5333-9720
Central Airport Chang Mai
Sub
0-5390-3951-2
0-5390-3956
Chiang Mai Rajabhat
University Sub
0-5321-4842,
0-5321-4507
0-5321-4395
Kad Suan Kaew Sub
0-5321-0332-3
0-5322-4494
Maerim Sub
0-5329-8419,
0-5329-8427,
0-5329-9140
0-5329-8622
Mee Chok Sub
0-5385-4650-1
0-5385-4652
Payap University Sub
0-5326-6097-8
Pratu Tha Phae Sub
0-5328-1201-2
Sankampaeng Sub
Phan Sub
0-4528-4412,
0-4528-4221
0-4528-4100
Sam Liam Thong Kham Sub
0-5378-4190-1,
0-5378-4242
0-5378-4243
Wiang Chai Sub
0-5376-9090
0-5376-9089
Chon Buri
Amata Nakorn Industrial
Estate
0-3845-8912-5
0-3845-8916
Ban Bung
0-3844-3834-6
0-3844-3210
Banamphoe (Satahip)
0-3823-8401-2
0-3823-8403
Bang Phra
0-3877-7445-6
0-3834-1204
Bang Plasoi
0-3879-0324-8
0-3827-8854
0-5326-6099
Bang Saen
0-3838-3827-9
0-3838-1756
0-5328-1203
Bo Win
0-3833-7519-20
0-3833-7521
0-5333-2425,
0-5333-2338
0-5333-2659
Chom Thian
0-3823-2971-2
0-3823-1559
Sansai Market Sub
0-5338-0826-7
0-5338-0834
Chon Buri
0-3879-0210-5
0-3879-0217
Si Yaek Nonghoi Sub
0-5390-4624-5
0-5390-4853
Laem Chabang
0-3833-0116-7
0-3833-0213
Sompet Market Sub
0-5321-9393,
0-5321-9518,
0-5321-9744
0-5321-9700
Na Klua
0-3872-6064-70
0-3841-2063
Panthong
0-3874-0434-5
0-3874-0438
Pattaya
0-3842-4115-6
0-3842-9280
Tesco Lotus Chiangmai Kadkamthieng Sub
0-5387-2593-4
0-5387-2595
Phanat Nikhom
0-3847-3320-2
0-3847-3323
Phattaya Sai 2
0-3841-1601-4
0-3841-1607
Tesco Lotus Hangdong Sub
0-5380-4807
0-5380-4961
Robison Sriracha
0-3877-0740-1
0-3877-0742
0-3848-1179,
0-3848-1181
0-3848-1178
Thanon Chang Klan Sub
0-5328-4027,
0-5328-4073
0-5328-4077
Saha Group Industrial Park
Thanon Chotana Sub
0-5321-0955,
0-5321-1804
0-5321-2577
Sattahip
0-3843-7399
0-3843-7501
Sri Racha
0-3831-1813-4
0-3832-2012
Thanon Prayasatja
0-3878-4674-6
0-3878-4673
Thanon Thepprasit (Pattaya)
0-3830-1178-9
0-3830-1180
Wongammat
(Nakluea Soi 18)
0-3841-3376,
0-3841-3598
0-3841-3819
Thanon Nimmanhaemin Sub 0-5322-3970-1
0-5322-3972
Chiang Rai
Chiang Khong
0-5365-5689-91,
0-5379-1119
0-5379-1481
Chiang Rai
0-5371-1901-3
0-5371-5094
Chiang Saen
0-5377-7120-1,
0-5377-7041
0-5377-7042
Amata Nakorn Industrial
Estate 2 Sub
0-3844-7245-6
0-3844-7247
Mae Sai
0-5373-2164-6
0-5373-2172
Big C Chonburi Sub
0-3819-2225-6
0-3819-2227
Maechan
0-5366-1014-5
0-5366-1021
Big C South Pattaya Sub
0-3842-6773
Si Yaek Mae Korn
0-5374-6370
0-5371-1631
0-3842-6701,
0-3842-6740
Wiang Pa Pao
0-5378-1101-3
0-5378-1104
Central Festival Center
Pattaya Sub
0-3842-3603,
0-3842-3638
0-3842-3354
Ban Du Sub
0-5370-3163,
0-5370-3165
0-5370-3168
0-3845-4925-6
0-3845-4927
Big C Chiangrai Sub
0-5374-6971-2
0-5374-6973
Donhualo Market
(Amatanakhon - Chonburi)
Sub
Sub Branch
Sub Branch
Nationwide Branches
Branch
Telephone
Fax
Branch
Sub Branch
Telephone
Kanchanaburi
Fax
Khao Talo (Pattaya) Sub
0-3848-9360,
0-3848-9361
0-3848-9362
Dan Makham Tia
0-3464-2099,
0-3464-2071
0-3464-2073
Laem Chabang Industrial
Estate Sub
0-3840-1994-5
0-3840-1996
Kanchanaburi
0-3451-3307
Nongmon Market Sub
0-3839-1992,
0-3839-1948
0-3839-1905
0-3462-0164,
0-3462-0167,
0-3462-1378-9,
0-3451-3006
Pinthong Industrial Estate
Sub
0-3834-8256,
0-3834-8257
0-38348258
Luk Kae
0-3456-6255
Soi Buakhao (Pattaya) Sub
0-3872-0959-60
0-3841-1812
0-3456-6001,
0-3456-6104,
0-3456-6158,
0-3456-6150
Sangkhla Buri
0-3459-5034,
0-3459-5263-6,
0-3459-5076
0-3459-5028
Talat Khet
0-3457-1240,
0-3457-1236-8,
0-3463-2269-70
0-3457-1239
Tha Rua Phra Thaen
0-3463-6849-53
0-3463-6854
0-3462-3947,
0-3462-3948
0-3462-3949
Soi Noenphlaphuan (Pattaya) 0-3842-6826,
Sub
0-3842-6845
0-3842-6870
Soi Sakhon Phithak Sub
0-3828-4558-9
0-3827-8211
Taladmai Sub
0-3879-4570-1
0-3879-4572
Taladrongpho Sub
0-3824-1761-2
0-3824-1894
Tesco Lotus Banbung Sub
0-3844-6338-9
0-3844-6340
Tesco Lotus Chonburi Sub
0-3827-6910-1
0-3827-6912
Thanon Chaloem Phra Kiat
(Pattaya) Sub
0-3842-0713-4
0-3842-0778
Thanon Liabchaihatchom
thian (Kongdongtan) Sub
0-3823-3736-7
0-3823-3738
Thanon Phattayaklang Sub
0-3871-6992-3
0-3871-6994
Tukcom Pattaya Sub
0-3872-3879-80
0-3872-3881
Tukcom Sriracha Sub
0-3832-5211,
0-3832-5102
0-3832-5217
Chumphon
Chumphon
0-7750-3067-8
0-7750-3079
Lamae
0-7755-7336-8
0-7755-9101
Mapummarit
0-7757-8613-4
0-7757-8615
Paknam Langsuan
0-7755-1357-9
0-7755-1090
0-7752-2033
0-7752-2455
Sub Branch
Paknam Sub
Kalasin
Kalasin
0-4382-1341-4
0-4381-2079
Kamalasai
0-4389-9251-2
0-4389-9253
Sahatsakhan
0-4387-1011-3
0-4387-1012
Yang Talat
0-4389-1010-1
0-4389-1098
Kamphaeng Phet
Kamphaeng Phet
0-5571-1720,
0-5571-3335
0-5571-1822
Tha Makhua
(Khlong Khlung)
0-5572-1147-8
0-5572-4321
Sub Branch
Tesco Lotus Kanchanaburi
Sub
Khon Kaen
Ban Phai
0-4332-9787-9
0-4332-9784
Chum Phae
0-4331-2491-3
0-4331-2507
Khon Kaen
0-4333-3820-4
0-4333-3829
Khon Kaen University
0-4323-6366
0-4323-8788
Muang Phon
0-4333-9023-6
0-4333-9028
Nam Phong
0-4344-1480-4
0-4344-1483
Si Yaek Maliwan
0-4333-3870-5
0-4333-3876
Big C Khon Kaen Sub
0-4332-5482-3
0-4332-5118
Chonnabot Sub
0-4328-6094
0-4228-6093
Donmong Sub
0-4329-9510-1
0-4329-9496
Khon Kaen University
Complex Sub
0-4320-2439-40
0-4336-4189
Tesco Lotus Khonkaen Sub
0-4322-6176
0-4322-8403
Thanon Namuang Sub
0-4322-7628-9
0-4322-7630
Tukcom Khonkaen Sub
0-4322-6331
0-4322-6657
Sub Branch
Krabi
Krabi
0-7562-0622-3
0-7562-0625
Ao Pranang Sub
0-7569-5560-1
0-7569-5562
Khaophanom Sub
0-7658-9714-5
0-7658-9716
Ko Lanta Sub
0-7568-4576-9
0-7568-4580
Sub Branch
Nationwide Branches
Branch
Telephone
Fax
Branch
Sub Branch
Phi Phi Island Sub
Tesco Lotus Krabi Sub
0-7560-1013-4
0-7560-1212
0-7581-0182-3
0-7581-0184
0-5422-1976,
0-5422-5062-3
0-5422-7243
Nakuam
0-5432-4031-7
0-5432-4035
Sop Prap
0-5429-6186,
0-5429-6103
0-5429-6086
Mae Hong Son Sub
Big C Lampang Sub
0-5422-8266-7
0-5422-8268
Pratuchai Sub
0-5432-3690-4
0-5432-3692
Thanon Boonyawat Sub
0-5432-3726-7
0-5432-3737
0-5362-0526,
0-5362-0531
Lamphun
0-5362-0535
Maha Sarakham
Kosum Phisai
0-4376-1813-5
0-4376-1812
Maha Sarakham
0-4372-1986-8
0-4372-2230
0-4371-2608
0-4371-2902
Sub Branch
Sermthai Plaza Sub
Sub Branch
Fax
Sub Branch
Lampang
Lampang
Telephone
Mae Hong Son
Mukdahan
Mukdahan
0-4261-2288-92,
0-4261-2299
0-4261-2300
Nakhon Nayok
Ban Na
0-3738-1258-60
0-3738-2010
Lamphun (Pa Heo)
0-5354-1266
0-5354-1366
Nakhon Nayok
0-3731-2667-9
0-3731-2666
Northern Indusrial Estate
0-5358-2830-1
0-5358-2832
Ongkharak
0-3739-1133
Thanon Charoenrat
0-5353-5482-5
0-5353-5486
0-3739-1139,
0-3732-2458
0-3739-5413-4
0-3739-5415
Sub Branch
Sub Branch
Big C Lamphun Sub
0-5357-5540-1
0-5357-5542
Loei
Loei
0-4281-3020-4
0-4281-3022
Nong Hin (Phukradung)
0-4285-2141-3
0-4285-2144
Phu Rua
0-4289-9356-7
0-4289-9125
Wang Saphung
0-4284-1084,
0-4284-1147
0-4284-1083
Lop Buri
Srinakharinwirot University
Ongkharak Sub
Nakhon Pathom
Bang Len
0-3423-4910-4
0-3423-4915
Mahidol University
0-2441-9134-5
0-2441-9133
Nakhon Chaisi
0-3433-2119-20,
0-3433-1515,
0-3433-1117
0-3433-1541
Nakhon Pathom
0-3425-3963,
0-3425-3004-5,
0-3425-8820-1,
0-3425-0817-8
0-3425-4135
Khok Samrong
0-3644-1521-2
0-3644-1523
Lamnarai
0-3646-1748,
0-3646-1750
0-3646-1749
Lop Buri
0-3642-1018,
0-3641-2626
0-3641-2880
Om Yai
0-2420-0789-92,
0-2420-1117-9
0-2420-8620
Phatthana Nikhom
0-3643-6123,
0-3663-8288
0-3663-8289
Phra Prathon
0-3421-2840,
0-3425-3987-9
0-3421-2841
Tha Khlong
0-3648-9100-1
0-3648-9102
Salaya
0-3649-7089-90
0-3664-6028
0-2441-0254,
0-2441-9351-2
0-2441-0253
Tha Luang
Wongwian Sa Kaeo
0-3642-0316,
0-3642-0028
0-3642-2645
Sam Pran
0-3432-2808,
0-3432-1980-2,
0-3422-2887
0-3432-1981
Big C Lop Buri Sub
0-3641-3721,
0-3641-3941
0-3641-3286
Thanon Song Phon
0-3424-2747
Thanon Thamanao
(Lamnarai) Sub
0-3646-1333,
0-364-61986
0-3646-1400
0-3421-9391,
0-3425-3815-8,
0-3421-9392-3
0-3421-2788-9
0-3421-2790
Sub Branch
Sub Branch
Big C Nakhon Pathom Sub
Nationwide Branches
Branch
Telephone
Fax
Sub Branch
Branch
Telephone
Big C Omyai Sub
0-2420-5366,
0-2420-5377
0-2420-5385
Golden Jubilee Medical
Center Sub
0-2441-5380-1
0-2441-5382
Kam Phaeng Saen (Kasetsart
University) Sub
0-3428-2285-9
0-3428-2289
Taladkamphaengsaen
(Nakhonpathom) Sub
0-3428-1155,
0-3428-1195
0-3248-1209
4 Sub
0-2420-8342
0-2420-8346
Nakhon Phanom
0-4251-2221-3
0-4251-3830
Nawa
0-4259-7200-4
0-4259-7205
That Phanom
0-4252-5784-92
0-4252-5793
Nakhon Ratchasima
Big C Nakhon Ratchasima
0-4429-5043-4,
0-4429-5046
0-4429-5045
Hua Thalae
0-4428-9054-8
0-4428-9059
Huai Thalaeng
0-4439-1223-5
0-4439-1222
Nakhon Ratchasima
0-44269255-60
0-4425-4969
Nong Bun Mak
0-4449-0041,
0-4433-0331-2
0-4449-0011
Pak Chong
0-4431-2812-3
0-4431-1357
Pak Thong Chai
0-4444-1632-4
0-4444-1652
Sikhiu
0-4429-0484-5
0-4441-1390
Thanon Mittraphap
0-4426-3110-7
0-4426-3118
Thanon Mukkhamontri
0-4426-2527-30
0-4425-1358
The Mall Nakorn Ratchasima 0-4428-8415-6
0-4428-8417
Sub Branch
0-4491-3637-8
0-4491-3639
Cho Ho Sub
0-4437-1510-1
0-4427-6341
Suranaree University
of Technology Sub
0-4421-6624,
0-4421-6626
0-4421-6625
Tesco Lotus
Nakhonratchasima Sub
0-4426-2972-3
0-4426-2974
Nakhon Sawan
0-5635-0572-4
0-5635-0577
0-5637-1861-2
0-5637-1863
Nakhon Si Thammarat
Khanom
0-7552-9042-5
0-7552-9041
Nakhon Si Thammarat
0-7534-7310,
0-7535-6092
0-7534-7309
Pak Pa Nang
0-7551-7811-2
0-7551-7807
Phrommakhriri
0-7533-8348-51
0-7533-8352
Si Yaek Hua Thanon
0-7532-4686-92
0-7532-4694
Sichon
0-7553-6022-5
0-7553-6496
Than Pho
0-7548-1335-7
0-7548-1334
Thung Song
0-7541-2844-6
0-7541-2847
Carrefour
Nakhonsithammarat Sub
0-7531-2772-3
0-7531-2774
Chandi Sub
0-7536-4491-2
0-7536-4303
Robinson
Nakhon Si Thammarat Sub
0-7534-6146,
0-7534-6599
0-7534-7144
Talat Hua It Sub
0-7534-5885,
0-7534-8301-2
0-7534-7357
Tesco Lotus
Nakhon Si Thammarat Sub
0-7532-4973-4
0-7532-4970
Tesco Lotus Thasala Sub
0-7533-0286,
0-7533-0287
0-7533-0288
Sub Branch
Nan
Nan
0-5471-1340-2
0-5471-1343
Narathiwat
Narathiwat
Sungai Ko-Lok
Buayai Sub
Kao Lieo
Banphot Phisai Sub
Fairyland Sub
Nakhon Phanom
0-7351-2737-9
0-7351-2741
0-7361-4271-4
0-7361-4275
Nong Bua Lam Phu
Nong Bua Lam Phu
0-4231-2158-9
0-4231-2162
Nong Khai
Nong Khai
0-4242-0569-70
0-4242-0571
Bigghiang Sub
0-4246-5489-90
0-4246-5491
Thabo Sub
0-4243-2020-1
0-4243-2022
Sub Branch
0-5631-9257,
0-5629-9005
0-5631-9256
Nakhon Sawan
0-5622-4070-1,
0-5622-1556-7
0-5622-9529
Pattani
Saphan Dechatiwong
0-5622-4126-7
0-5622-4128
Prince of Songkhla Sub
Takhli
0-5632-8961-2
0-5626-1889
Fax
Sub Branch
Pattani
0-7333-5946-8
0-7334-8722
0-7333-5155-7
0-7333-5154
Sub Branch
Nationwide Branches
Branch
Telephone
Phang Nga
Fax
Branch
Telephone
Fax
Sub Branch
Khok Kloi
0-7643-4743-4
0-7643-4745
Boromtriloknat Sub
0-5525-2301-2
0-5525-2303
Phang Nga
0-7624-4352-3
0-7641-4354
Tesco Lotus Phitsanulok Sub
0-7642-1009,
0-7642-1320
0-7642-1591
0-5530-3038,
0-5530-3083
0-5530-3846
Talat Yan Yao
Tesco Lotus Topland
Phitsanulok Sub
0-5528-0152-3
0-5528-0187
0-7642-3673-4
0-7642-3675
Sub Branch
Khao Lak Sub
Phatthalung
Phatthalung
0-7461-1069-72
0-7461-1073
Phayao
Chiangkham
0-5445-4174-5
0-5445-4176
Phayao
0-5441-1392-4
0-5448-1904
0-5446-6776-7
0-5446-6778
Sub Branch
Naresuan University Sub
Phetchabun
Lom Sak
0-5670-1714-5
0-5670-1019
Na Chaliang
0-5678-9040-4
0-5678-9043
Phetchabun
0-5572-2688-9
0-5672-1654
Sri Thep
0-5679-9253-5
0-5679-9468
0-5674-1563,
0-5674-1569
0-5674-1589
Sub Branch
Topland Phetchabun Sub
Phetchaburi
Cha-Am
0-3243-3745-7,
0-3243-3748-9
0-3243-3884
Khao Wang
0-3241-7240-1,
0-3241-7243-4,
0-3241-7246-7
0-3241-7242
Phetchaburi
0-3242-6575,
0-3242-5179,
0-3242-5303
0-3242-8518
Thayang
0-3246-1984, 03243-7806-7
0-3246-1985
0-3240-2528-9
0-3240-2530
Sub Branch
Big C Phetchaburi Sub
Phichit
Phra Nakhon Si Ayutthaya
Ayutthaya
0-3521-1530-3
0-3524-5071
Bang Pa-In
0-3526-1980-6
0-3526-1989
Hi-Tech Industrial Estate
0-3572-9269-70
0-3572-9271
Phachi
0-3531-1117,
0-3531-1127
0-3531-1544
Phratunam Phra-In
0-3536-1899,
0-3521-9573-80
0-3536-1912
Sena
0-3521-7251-7
0-3521-7260
Tha Rua
0-3534-1712-3
0-3534-1711
Thanon Rojana
0-3521-3453-4
0-3622-9086
Wang Noi
0-3521-5409
0-3521-5410
Ayutthaya Park Sub
0-3522-9628-9
0-3522-9630
Ampo Mall Sub
0-3533-7142,
0-3533-7151
0-3533-7223
Bangpa-in Industrial Estate
Sub
0-3572-5044-5
0-3572-5046
Rojana Industrial Estate Sub
0-3533-2014-5
0-3533-2016
Sub Branch
Phrae
Phrae
0-5452-2781,
0-5452-2783-4
0-5452-2782
0-5462-5723,
0-5462-5871
0-5462-6610
0-5462-3710-2
0-5462-3789
Sub Branch
Big C Phrae Sub
Thung Hong Sub
Phuket
Big C
0-7624-9176-7
0-7624-9178
Central Phuket
0-7624-9558-9
0-7624-9560
Choeng Thale
0-7632-4501-3
0-7632-4506
Bang Mun Nak
0-5663-1677-8
0-5663-1679
Ha Yaek Chalong
0-7638-1427-8
0-7638-1321
Phichit
0-5661-2891-5
0-5661-2894
Had Karon
0-7628-6503-4
0-7928-6505
Taphan Hin
0-5662-1971-3
0-5662-1972
Patong
0-7634-0466-8
0-7634-2594
Phuket
0-7621-9161-3
0-7621-4598
0-5661-6546-7
0-5661-6548
Sarmkong
0-7621-7089
0-7621-8809
Thalang
0-7627-5223-4
0-7627-5225
Thanon Chao Fa
0-7622-2011-2
0-7622-0982
Sub Branch
Happy Plaza Sub
Phitsanulok
Ha Yaek Khokmatum
0-5521-1979-84
0-5521-1981
Phitsanulok
0-5524-3711-4
0-5524-2147
Nationwide Branches
Branch
Telephone
Fax
Branch
Telephone
Fax
Ranong
Sub Branch
Jungceylon Phuket Sub
0-7636-6053-4
0-7636-6055
Ranong
0-7783-3175-8
Kamala Sub
0-7627-9227-8
0-7627-9229
Kata Sub
0-7633-3593-4
0-7633-3595
Ban Pong
0-3220-1267-9
0-3221-1372
Phuket Boat-Lagoon Sub
0-7620-4104-5
0-7620-4106
Bang Phae
0-3234-7719
Prince of Songkhla
University Sub
0-7924-9944-5
0-7620-9222
0-3234-7717-8,
0-3223-2057,
0-3223-1881-3
Rawai Sub
0-7628-9041,
0-7628-9109
0-7628-9118
Chom Bung
0-3226-1505-7,
0-3236-2700-1
0-3236-2702
Robinson Ocean Phuket Sub
0-7625-6933,
0-7625-6937
0-7625-6958
Damnoen Saduak
0-3225-4792
Tesco Lotus Phuket Sub
0-7625-4766-7
0-7625-4768
Thanon Chaofa 2 Sub
0-7626-4007-8
0-7626-4002
0-3224-1222,
0-3234-6281-3,
0-3225-4522,
0-3225-3223
Thanon Nanai (Patong) Sub
0-7629-3093-4
0-7629-3095
Lak Ha
0-3224-8097
Thanon Pangnga Sub
0-7623-2973-4
0-7623-2975
0-3224-8095,
0-3236-0880-1
Thanon Thaweewong Sub
0-7634-0162,
0-7634-0173
0-7634-0181
Photharam
0-3223-3388-9,
0-3235-4060-2
0-3223-2235
Thanon Thepkasattree Sub
0-7624-1449-50
0-7624-1451
Ratchaburi
0-3231-5488,
0-3231-5480-6,
0-3232-2044-6,
0-3232-3901
0-3232-1072
Ratchaburi Industrail Estate
0-3237-5805,
0-3237-5721,
0-3237-5804-7
0-3237-5722
Thanon Srisuriyawong
0-3231-1001-7
0-3231-1010
Big C Ratchaburi Sub
0-3233-2660-1
0-3233-2662
Robinson Ratchaburi Sub
0-3233-2242-3
0-3233-2244
Samyaekkrachap (Banpong)
Sub
0-3235-3457,
0-3235-3458
0-3235-3688
Ratchaburi
Prachin Buri
Ban Sang
0-3727-1243-5
0-3727-1249
Kabin Buri
0-3728-2039-42
0-3728-2040
Khlong Rung (Simahaphot)
0-3720-8289-94
0-3720-8291
Prachin Buri
0-3721-2843,
0-3721-1632
0-3721-1631
0-3727-9800-2
0-3727-9179
304 Industrial Estate Sub
0-3741-4401-2
0-3741-4404
Big C Prachinburi Sub
0-3721-6501-2
0-3721-6503
Si Maha Phot
Sub Branch
Prachuap Khiri Khan
Bang Saphan
0-3254-8413-5,
0-3269-1505
0-3269-1597
Hua Hin
0-3253-2420-4
0-3253-2429
Prachuap Khiri Khan
0-3255-0930-2,
0-3260-1599,
0-3260-1556
0-3260-2183
0-3254-2064-6,
0-3262-1815-6
0-3262-1817
Pran Buri
Sub Branch
0-7781-1826
Sub Branch
Rayong
Ban Chang
0-3888-2916-20
0-3888-2923
Klaeng
0-3867-2517-9
0-3867-1402
Maptaphut
0-3860-8009-10
0-3860-8012
Rayong
0-3880-0228-9
0-3861-1330
Si Yeak Kokloi
0-3887-5417-20
0-3887-5422
Amata City Sub
0-3865-0075-6
0-3865-0077
Big C Rayong Sub
0-3801-1904-5
0-3801-1906
Sub Branch
Chatchai Market (Huahin)
Sub
0-3253-1334-5
0-3253-1338
Eastern Seaboard Industrial
Estate Sub
0-3865-6432-3
0-3865-6434
Hua Hin Market Village Sub
0-3252-6181-2
0-3252-6183
Laemthong Rayong Sub
0-3880-9142-3
0-3880-9144
Thanon Dechanuchit
(Maefaluang-huahin) Sub
0-3253-1340-1
0-3253-1342
Taladsotsapan 4 Sub
0-3866-0140-1
0-3866-0142
Tesco Lotus Banphe Sub
0-3865-2131-2
0-3865-2134
Nationwide Branches
Branch
Telephone
Roi Et
Fax
Branch
Telephone
Roi Et
0-4351-1285,
0-4351-3047
0-4351-5284
Selaphum
0-4355-1054-5
0-4355-1394
Suwannaphum
0-4353-2805-7
0-4353-2811
Thanon Setthakit 1 Sub
0-3447-0475,
0-3447-0481
Aranyaprathet
0-3723-3042-3
0-3723-3044
Sa Kaeo
0-3724-2037,
0-3724-1508
0-3724-1599
0-3471-5639,
0-3471-1088,
0-3471-1277,
0-3471-1089
0-3723-0102-3
0-3723-0104
Sakon Nakhon
0-3471-5397
Sub Branch
Phrabuddhaloetla Bridge Sub 0-3473-6970-1
Sub Branch
0-3447-2886
Samut Songkhram
Samut Songkhram
Sa Kaeo
Rong Kluea Market
(Aranyaprathet)
Fax
Sub Branch
0-3473-6972
Saraburi
Hin Kong
0-3633-6040-4
0-3633-6045
Kaeng Khoi
0-3625-1056-62
0-3625-1057
0-3637-2005-7
0-3637-1648
Kut Bak
0-4278-4121-2
0-4278-4126
Nong Khae
Sakon Nakhon
0-4271-1529
0-4271-2528
Phra Phutthabat
0-3632-2351-4
0-3632-2355
Sawangdaendin
0-4273-7685-6
0-4273-7687
Saraburi
0-3621-1994,
0-3621-1996
0-3622-1605
SIL.Industrial Estate Sub
0-3637-3787-9
0-3637-3789
Tesco Lotus Kaengkhoi Sub
0-3632-0021-2
0-3632-0023
Thanon Phichai Ronnarong
Song Khram Sub
0-3631-9040-4
0-3631-9041
0-3636-5718-9
0-3636-5721
Samut Sakhon
Krathum Baen
0-3447-1905,
0-3447-1488,
0-3447-1688
0-3447-1687
Om Noi
0-2420-2699,
0-2420-2325,
0-2420-2379,
0-2811-1753-6
0-2420-2380
0-3442-5370,
0-3441-2008-9,
0-3441-2922,
0-3442-3436,
0-3481-0323,
0-3481-1180-3
0-3442-5371
0-3449-8173,
0-3449-8228,
0-3449-8169,
0-3449-8167
0-3449-8171
Tha Sai
0-3482-6655-7
0-3482-6659
Thanonsetthakit 1
(Krathumbaen)
0-2429-4592-3
0-2429-4603
Samut Sakhon
Tha Chalom
Sub Branch
Wihan Daeng Sub
Satun
Satun
0-7472-2325-6
0-7472-1360
0-7478-1645,
0-7478-1909
0-7478-2444
Sub Branch
La Ngu Sub
Si Sa Ket
Sub Branch
Mahachai Market Sub
0-3442-3146,
0-3442-6277
0-3442-6361
Phochae Sub
0-3449-4982-3
0-3449-4984
Samut Sakhon Industrial
Estate Sub
0-3482-9240-1
0-3482-9242
Tesco Lotus Bangphaeo Sub
0-3485-0844-5
0-3485-0846
5 Sub
0-2420-0950-1
02-420-0910
Bung Bun
0-4568-9154-5
0-4568-9156
Kantharalak
0-4566-1827-8,
0-4566-1888
0-4566-1523
Si Sa Ket
0-4561-1993-4
0-4561-3351
Sing Buri
Pak Bang (Phrom Buri)
0-3659-9076-7
0-3659-9075
Sing Buri
0-3653-0418
0-3651-1408
Songkhla
Hat Yai
0-7423-0297,
0-7424-3742,
0-7424-4574,
0-7424-4754
0-7424-4742
Hat Yai Nai
0-7425-7540-3,
0-7425-7545-6
0-7425-7544
Khlong Ngae
0-7445-2591-5
0-7445-2596
Nationwide Branches
Branch
Telephone
Songkhla
Fax
Padang Besar
0-7452-1055,
0-7452-1077
0-7452-1188
Prince of Songkhla
University
0-7421-2500-3
0-7421-2505
Sam Yaek Samrong
0-7432-4154,
0-7432-4009
0-7432-4804
Songkhla
0-7431-1888,
0-7431-3680
0-7432-1766
Thanon Rat Yindi (Hat Yai)
0-7434-2480-6
0-7434-2487
Sub Branch
Ban Phru (Hat Yai) Sub
0-7421-0661,
0-7443-9211-2
0-7443-9213
Banthai-changlon Sub
0-7455-7130-1
0-7453-7132
Big C Hatyai Sub
0-7442-7770-1
0-7442-6950
Carrefour Hatyai Sub
0-7434-5421-2
0-7434-5423
Robinson Hat Yai Sub
0-7422-3378-9
0-7422-3680
Sadao Sub
0-7441 1116-7
0-7441-1222
Thanon Ratthakan
(Hat Yai) Sub
0-7434-8301-3
0-7434-8300
Thunglung Sub
0-7447-1359
0-7447-1570
Sukhothai
Sawankhalok
0-5564-2139,
0-5564-2192
0-5564-2140
Sukhothai
0-5561-1631,
0-5561-1641
0-5561-3033
Suphan Buri
Don Chedi
0-3559-1111-3
0-3559-1243
Song Phi Nong
0-3553-1880-5
0-3553-1884
Suphan Buri
0-3552-5109-10
0-3552-3393
U-Thong
0-3550-5817-20
0-3550-5826
Dan Chang Sub
0-3559-5504-5
0-3559-5506
Samchuk Sub
0-3554-4376-7
0-3554-4378
Tesco Lotus Suphan Buri Sub 0-3550-2854-5
0-3550-2856
Sub Branch
Surat Thani
Bannasan
0-7724-9407
0-7724-9385
Big C Surat Thani
0-7722-4364-5
0-7724-4361
Chaiya
0-7743-1143
0-7743-1155
Chaweng
0-7723-0923-4
0-7723-0925
Ko Samui
0-7742-0188-9
0-7742-0187
Pha Ngan
0-7737-7003,
0-7737-7111
0-7737-7110
Surat Thani
0-7721-0535
0-7728-2243
Branch
Telephone
Surat Thani
Fax
Thanon Kanchanawithi
0-7721-4224-31
0-7721-4233
Wiang Sa
0-7725-8220-5
0-7725-8224
Ban Mae Nam
(Koh Samut) Sub
0-7724-7516-7
0-7724-7517
Bantakhun Sub
0-7726-1188-9
0-7726-1190
Big C Ko Samui Sub
0-7796-0854-5
0-7796-0856
Chaweng 2 (Koh Samut) Sub
0-7723-1667-9
0-7723-1671
Chaweng 3 (Koh Samut) Sub
0-7741-3429
0-7741-3455
Hat Lamai (Koh Samui) Sub
0-7745-8186-7
0-7745-8188
Hat Rin (Koh Pha Ngan) Sub
0-7737-5538-9
0-7737-5540
Ko Tao Sub
0-7745-6121-2
0-7745-6228
Phunphin Sub
0-7724-0687-8
0-7724-0689
Si Yaek Saengphet Sub
0-7721-8421
0-7721-8675
Suratthani Hospital Sub
0-7722-0080,
0-7722-0142
0-7722-0307
Talat Bo Phut
(Koh Samui) Sub
0-7743-0490-1
0-7743-0492
Tesco Lotus Suratthani Sub
0-7726-4910-1
0-7726-4912
Tha Chana Sub
0-7726-2378
0-7726-2339
Thanon Thaweerat Phakdee
(Chaweng) Sub
0-7724-5891-2
0-7724-5893
Sub Branch
Surin
Rattanaburi
0-4459-9122-3
0-4459-9006
Surin
0-4451-5761-2
0-4451-2362
Prasat Sub
0-4453-2076
0-4453-2239
Tesco Lotus Surin Plaza Sub
0-4453-8501
0-4453-8510
Sub Branch
Tak
Mae Sot
0-5553-1212,
0-5553-1500
0-5553-1860
Tak
0-5554-1430-9
0-5554-1438
0-5554-2467-8
0-5554-2469
Sub Branch
Tesco Lutus Maesot Sub
Trad
Khlong Yai
0-3958-1141-3
0-3958-1140
Trad
0-3952-1033-7
0-3952-1038
Koh Chang Sub
0-3955-1366-7
0-3955-1368
San Tung Sub
0-3954-6313-5
0-3954-6122
Sub Branch
Trang
Trang
0-7521-1530-3
0-7521-0878
Nationwide Branches
Branch
Telephone
Fax
Branch
Telephone
Yasothon
Sub Branch
Fax
Siriban Shopping Center Sub
0-7521-3104-5
0-7521-3106
Maha Chana Chai
0-4579-9166-9
0-4579-9170
Thanon Ratsada Sub
0-7522 5818-9
0-7522-5930
Yasothon
0-7524-0351-2
0-7524-0353
0-4571-2448,
0-4571-1437
0-4571-2609
Yantakhao Sub
Ubon Ratchathani
Det Udom
0-4528-2133-4
0-4528-2135
Ubon Ratchathani
0-4524-1113
0-4524-1765
Warin Chamrap
0-4526-1488
0-4526-9424
Bando Market Sub
0-4526-3901
0-4526-3878
Big C Ubon Ratchathani Sub
0-4528-3631-2
0-4528-3633
Chongmeg Sub
0-4548-5083-7
0-4548-5047
Nongbua Market Sub
0-4535-5241-2
0-4535-5243
Tesco Lotus Ubonratchathani Sub
0-5365-9825-6
0-5365-9829
Ubon Ratchathani University
Sub
0-4543-3093-4
0-4543-3095
Sub Branch
Udon Thani
NR Complex (Banphue)
0-4228-2240-1
0-4228-2243
Thanon Pho Si
0-4224-2439-40
0-4224-3330
Thanon Thahan
0-4234-1861-7
0-4234-1866
Udon Thani
0-4224-7720-5
0-4224-8124
Big C Udon Thani Sub
0-4222-1549,
0-4222-1542
0-4222-1521
Charoensri Complex Sub
0-4224-3109,
0-4224-3118
0-4224-3325
Kumphawapi Sub
0-4220-2391,
0-4220-2397
0-4220-2385
Non Sa-At Sub
0-4239-2533,
0-4239-2527
0-4239-2531
Phen Sub
0-4227-9096,
0-4227-9101
0-4227-9185
Sub Branch
Uthai Thani
Uthai Thani
0-5651-1883-4,
0-5651-1290,
0-5651-1224
0-5651-2414
Uttaradit
Uttaradit
0-5541-3833-4
0-5541-2002
0-5541-6556-7
0-5541-6558
Sub Branch
Friday Sub
Yala
Yala
0-7324-0080-1
0-7321-5650
Business Relationship Center 49 Offices
Corporate Division 1
Address
Telephone
Fax
BRC Bangkok 1
BRC Rutchayothin
9 Rutchadapisek Road, Ladyao, Jatujak, Bangkok 10900
0-2544-3003-7
0-2544-3036
BRC Ramintra
66/99 Ram-Inthra Road, Bangkhen, Bangkok 10230
0-2943-7608,
0-2943-7635
0-2943-7812
BRC Khlong 2 (Thanyaburi)
48/7 Mu 2 Rangsit-nakhon Nayok Road, Thanyaburi,
Phathum Thani 12130
0-2996-2570,
0-2533-0307
0-2533-1047
BRC Ngam Wongwan
35/2 Mu 2 Ngam Wongwan Road, Muang, Nonthaburi
11000
0-2591-2177,
0-2591-3128
0-2591-3129
BRC Soi Arisamphan
5 Soi Arisamphan, Rama Vi Road, Phaya Thai, Bangkok
10400
0-2270-1375-6
0-2270-1460
BRC Bang Lampu
135 Phrasumen Road, Phra Nakhon, Bangkok 10200
0-2280-3341-7
0-2280-3348
BRC Talat Noi
1280 Yo Tha Road, Samphanthawong, Bangkok 10100
0-2639-6413-9
0-2936-6420
BRC Ratchawong
53 Ratchawong Road, Samphanthawong, Samphanthawong
Bangkok 10110
0-2222-9397,
0-2222-9406
0-2222-9383
BRC Nakhon Sawan
650 Kosi Road, Muang, Nakhon Sawan 60000
0-5631-3702-3
0-5631-3701
BRC Ha Yaek Khokmatum
284 Phichaisongkhram Road, Muang, Phitsanulok 65000
0-5521-1075-8
0-5522-1917
BRC Lampang
276 Chat Chai Road, Muang, Lampang 52000
0-5431-9024-5
0-5431-9026
BRC Tha Phae
17 Tha Phae Road, Muang, Chiang Mai 50000
0-5381-9211-4
0-5381-9215
BRC Chiang Rai
573 Rattanakhet Road Wiang Muang Chiang Rai 57000
0-5374-0472-4
0-5371-1901
BRC Thepa Rak
99 Mu 6 Thepha Rak Road Muang Samut Prakan 10270
0-2710-4640-1
0-2710-4668
BRC Thanon Prayasatja
112/424 Mu 1 Prayasatja Muang Chon Buri 20000
0-3878-4760-3
0-3878-4764
BRC Pattaya Sai 2
116/19 Mu 9 Phattaya Sai 2 Bang Lamung Chon Buri 20150
0-3836-2147-50
0-3836-2151
BRC Rayong
125/8 Sukhumwit Road Amphoe Muang Rayong 21000
0-3880-0501-3
0-3880-0504
BRC Chachoengsao
1/24 Maha Chakkrapat Road Muang Chachoengsao 24000
0-3881-4322-4
0-3881-4325
BRC Thanon Kanchanawithi
141/99 Mu 5 Kanchanawithi Muang Surat Thani 84000
0-7721-3604-7
0-7721-3608
BRC Si Yaek Hua Thanon
55/7 Ratchadamnoen Muang Nakhon Si Thammar 80000
0-7532-5181-4
0-7532-5185
BRC Thanon Chao Fa
46/2 Chao Fa Road Amphoe Muang Phuket 83000
0-7624-6445-9
0-7624-6450
BRC Thanon Rat Yindi (Hat Yai)
16/4 Rat Yindi Hat Yai Songkhla 90110
0-7434-2850-5
0-7434-2855
BRC Ko Samui
94/3 Mu 3 Chon Withi(Na Thon) Road, Ang Thong, Ko
Samui, Suratthani 84140
0-7742-1102,
0-7742-1122
0-7723-6096
BRC Krabi
169 Uttarakit Road, Pak Nam, Muang, Krabi 81000
0-7563-1571,
0-7562-2377
0-7563-1673
BRC Bangkok 2
BRC Upcountry 1
BRC Upcountry 2
BRC Upcountry 3
BRC Bangkok 3
BRC Chidlom
1060 Petchburi Road, Ratchtevee, Bangkok 10400
0-2256-2160-6
0-2256-1239
BRC Bangkapi (Sukumvit 45)
801 Sukhumwit Road (45) Klong Toei, Bangkok 10110
0-2261-5491-7
0-2261-5490
BRC Klong Tan
857 Phatthanakan Road, Phra Khanong, Bangkok 10110
0-2369-3571-5
0-2369-3576
BRC On Nuch
1188 On Nuch, Suan Luang, Bangkok 10250
0-2332-9623-7
0-2332-9628
Address
Telephone
Fax
BRC Bangkok 3
BRC Ladkrabang
(Suvarnabhumi)
222/129 Mu 1 Luang Pang Road, Tub Yao, Ladkrabang,
Bangkok 10520
0-2327-0346-8
0-2927-0349
BRC Banthat Thong
719 Munkong Keha Karn Building, Banthat Thong,
Wang Mai, Pathum Wan, Bangkok 10330
0-2612-4023-6
0-2612-4027
BRC Surawong
291 Surawong Road, Bang Rak, Bangkok 10500
0-2635-7202-6
0-2635-7207
BRC Bang Khlo
479 Rama 3, Bang Kholaem, Bangkok 10120
0-2689-2590-5
0-2292-0341
BRC Phra Ram 2
52/405 Mu 6 Phra Ram 2 Bang Khun Thian Bangkok 10150
0-2894-1673,
0-2894-1618
0-2894-0557
BRC Rutchadapisek (Thaphra)
770/1 Ratchadaphisek Thon Buri Bangkok 10600
0-2876-0746-50
0-2876-0751
BRC Phetkasem Soi 114
33/19 Mu 2 Phet Kasem Road, Nong Kang Phlu,
Bangkok 10160
0-2420-2283-4
0-2420-2480
BRC Thanon Rojjana
84/2 Mu 6 – Muang, Phra Nakhon Si Ayutthaya 13000
0-3522-9325-6
0-3522-9443
BRC Kaeng Khoi
219 Sut Bantat Road, Kaeng Khoi, Saraburi 18110
0-3632-0751-2
0-3632-0753
BRC Suphan Buri
196 Phraphanwasa Road Amphoe Muang Suphan Buri 72000 0-3550-1225-7
0-3550-1228
BRC Phar Prathon
150/1 Mu 8 Phet Kasem Road Muang Nakhon Pathom 73000 0-3421-3602-4
0-3421-3605
BRC Thasai
116 Mu 7 Setthakit 1 Rd, Muang Samut Sakhon 74000
0-3482-7278,
0-3482-7319
0-3482-7301
BRC Khao Wang
595 Phet Kasem Muang Phetchaburi 76000
0-3241-1301-3
0-3241-1304
BRC Thanonsrisuriyawong
145 Phet Kasem Road, Na Muang, Muang, Rajchaburi 70000
0-3231-1192-3
0-3231-1194
BRC Thanon Pho Si
41 Pho Si Road, Muang, Udon Thani 41000
0-4232-9127-8
0-4232-7946
BRC Si Yaek Maliwan
150/23 Mu 7 Mittraphap Muang Khon Kaen 40000
0-4333-3996-8
0-4333-4480
BRC Roi Et
167 Thewaphiban Road Amphoe Muang Roi Et 45000
0-4352-0593-6
0-4352-0597
BRC Warin Chamrab
042 Saton Mark Road Warin Chamrap
Ubon Ratchathani 34190
0-4528-6187-9
0-4528-6190
BRC Thanon Mittraphap
541/1 Mittraphap Road Muang Nakhon Ratchasima 30000
0-4426-3795-9
0-4426-2828
BRC Surin
415 Chiltara Bamrung Road, Na Muang, Muang, Surin 32000 0-4453-1850-3
0-4453-1854
BRC Sakon Nakhon
1353/4 Suk Kasem Road, Thad Cheng Chum, Muang,
Sakon Nakhon 47000
0-4273-6284
BRC Upcountry 4
BRC Upcountry 5
0-4273-6281-3
Special Assets Centers
District
Province
Telephone
Fax
SAC Chachoengsao
Muang
Chachoengsao
0-3881-4328
0-3881-4329
SAC Thanon Prayasajja
Muang
Chonburi
0-3878-4721-4
0-3878-4725
Special Assets Central Region
SAC Kanchanaburi
Muang
Kanchanaburi
0-3462-0749
0-3462-0850
SAC Thanon Srisuriyawong
Muang
Ratchaburi
0-3231-1137-8
0-3231-1136
SAC Rayong
Muang
Rayong
0-3880-0505-7
0-3880-0507
SAC Kaeng Khoi
Kaeng Khoi
Saraburi
0-3632-0671-2
0-3632-0674
SAC Thapae 1
Muang
Chiangmai
0-5382-0430-4
0-5382-0429
SAC Thapae 2
Muang
Chiangmai
0-5382-0435-8
0-5382-0429
Special Assets Northern region
SAC Chiangrai
Muang
Chiangrai
0-5374-0648-9
0-5374-0671
SAC Nakornsawan
Muang
Nakornsawan
0-5622-8545
0-5631-3705
SAC Ha yaek khokmatum
Muang
Phitsanulok
0-5521-1977
0-5521-1976
Special Assets Northeastern region
SAC Siyakmaliwan
Muang
Khonkaen
0-4333-4739-42
0-4333-4743
SAC Thanon Mitraphab 1
Muang
Nakhonratchasima
0-4426-3251-3
0-4426-3254
SAC Ubonratchathani
Muang
Ubonratchathani
0-4525-6071-2
0-4525-6073
SAC Thanon Phosri
Muang
Udonthani
0-4232-8363-4
0-4232-8365
Muang
Nakhonsithammarat
0-7532-5186-8
0-7535-8033
Special Assets Southern region
SAC Si Yaek Hua Thanon
SAC Thanon Chaofa
Muang
Phuket
0-7624-6422-3
0-7624-6378
SAC Rat yindi 1
Had Yai
Songkhla
0-7434-2661
0-7434-2657
SAC Rat yindi 2
Had Yai
Songkhla
0-7434-2658-60
0-7434-2657
SAC Thanon Kanchanawithi
Muang
Suratthani
0-7721-3784-8
0-7721-3784
SAC Yala
Muang
Yala
0-7322-8704-5
0-7322-8706
International Trade Service Centers
District
Province
ITSC Chidlom
ITSC
Rachthevee
Bangkok
0-2256-1450, 0-2256-1444,
0-2256-1179, 0-2256-1471
Telephone
0-2251-3788-9
Fax
ITSC Surawong
Bangrak
Bangkok
0-2237-8589, 0-2234-3554,
0-2234-4876
0-2236-7592
ITSC Bangkapi
Khlongtoey
Bangkok
0-2259-2598, 0-2258-6925,
0-2258-9679, 0-2662-6108-9
0-2258-6926
ITSC Talat Noi
Samphantawong
Bangkok
0-2639-0809-13
0-2235-5276
ITSC Ratchawong
Samphantawong
Bangkok
0-2221-7352, 0-2623-0894-5
0-2225-8256
ITSC Bangkhae
Bangkhae
Bangkok
0-2413-3212-3, 0-2413-3048
0-2413-3049
ITSC Lad Prao Soi 10
Bangkhen
Bangkok
0-2938-4185, 0-2938-4190-2,
0-2513-9384, 0-2511-3402
0-2513-3755
ITSC Thanon Taksin
Thonburi
Bangkok
0-2439-3551, 0-2860-6560-1,
0-2438-1127
0-2438-1126
ITSC Bangchak
Phakhanong
Bangkok
0-2333-0492-4, 0-2742-4885,
0-2332-9063
0-2742-4886
ITSC Bangkhlo
Bangkholeam
Bangkok
0-2689-7510-2, 0-2289-0290
0-2689-7513
ITSC Ratchayothin
Jatujak
Bangkok
0-2544-3559, 0-2544-3982,
0-2544-4192, 0-2544-4642
0-2544-3295
ITSC Bang Lampu
Phanakorn
Bangkok
0-2282-0824-6
0-2282-0827
ITSC Phra Ram IV (Sirinrat Building)
Khlongtoey
Bangkok
0-2240-3926-8
0-2240-3929
ITSC Suksawat
Ratburana
Bangkok
0-2428-5708-10
0-2428-5711
ITSC Sathon
Sathon
Bangkok
0-2286-7455, 0-2286-7499
0-2286-0577
ITSC Lad Krabang Industrial Estate
Lad Krabang
Bangkok
0-2326-1033, 0-2326-0687-8
0-2326-1034
ITSC Serithai (Suan Siam)
Kannayao
Bangkok
0-2540-6494-5, 0-2540-6540
0-2540-6541
ITSC Phloenchit
Pathum Wan
Bangkok
0-2252-0802-4
0-2252-0805
International Trade Service Centers
District
Province
ITSC Rojana
ITSC
U-thai
Ayudhaya
0-3522-7836-7
0-3522-7838
ITSC Hi-Tech Industrial Estate
Bangpa-in
Ayudhaya
0-3572-9272-4
0-3572-9275
ITSC Wellgrow Industrial Estate
Bangpakong
Chachoengsao
0-3857-1415
0-3857-1416
ITSC Chiangmai
Muang
Chiangmai
0-5328-0608-9
0-5328-2325
ITSC Amata Nakorn Industrial Estate
Muang
Chonburi
0-3874-3789, 0-3821-3566,
0-3845-8915
0-3874-3790
ITSC Laem Chabang
Sriracha
Chonburi
0-3833-0245-7
0-3833-0118
ITSC Laem Chabang Industrial Estate
Sriracha
Chonburi
0-3840-1000-2
0-3840-1003
ITSC Lamphun
Muang
Lamphun
0-5358-2833-4
0-5358-2835
ITSC Thanon Mittraphap
Muang
Nakhonratchasima
0-4425-6563-4
0-4425-6516
ITSC Omyai
Sampran
Nakornpathom
0-2811-5116, 0-2420-0083-4
0-2420-4710
ITSC Phra Prathon
Muang
Nakornpathom
0-3425-3690, 0-3425-3695,
0-3425-3940
0-3425-4125
ITSC Ngam Wongwan
Muang
Nonthaburi
0-2591-2490, 0-2591-2765,
0-2591-7102
0-2591-9074
ITSC Khlong Luang
Khlong Luang
Pathumtani
0-2516-3311, 0-2516-9922,
0-2516-1106, 0-2516-8889
0-2516-8405
ITSC Nawanakorn Industrial Estate
Khlong Luang
Pathumtani
0-2529-5835-7
0-2529-5838
ITSC Bangkadi
Muang
Pathumtani
0-2963-7153-6
0-2501-2802
ITSC Phuket
Muang
Phuket
0-7625-6792-4
0-7625-6795
ITSC Khlong Rung
Srimahapoh
Prajeenburi
0-3727-4058
0-3720-8291
ITSC Rayong
Muang
Rayong
0-3880-0495-7
0-3880-0498
ITSC Eastern Seaboard Industrial Estate
Pluagdaeng
Rayong
0-3865-6437-9
0-3865-6440
ITSC Maptaphut
Muang
Rayong
0-3860-9014
0-3860-9015
ITSC Samut Sakhon
Muang
Samut Sakhon
0-3442-2247, 0-3442-2986
0-3481-1185
ITSC Muang Mai Bangphli
Bangphli
Samutprakarn
0-2315-3004, 0-2315-3009,
0-2705-1256
0-2315-1176
ITSC Thanon Pu Chao Saming Phrai
Phapradaeng
Samutprakarn
0-2380-6680-2
0-2380-6683
ITSC Bangpu Industrial Estate
Muang
Samutprakarn
0-2709-4662, 0-2709-3107
0-2709-3426
ITSC Bangna-Trad (Bangna Tower)
Bangphli
Samutprakarn
0-2312-0302-4
0-2312-0305
ITSC Rat Yindi
Hadyai
Songkla
0-7434-2077-8
0-7434-2079
ITSC Thanon Kanchanawithi
Muang
Suratthani
0-7721-3325-7
0-7721-4238
Telephone
Fax
Foreign Exchange Booth
Bangkok 37 Booths
Telephone
Bangrak
Bangkok 37 Booths
Telephone
Watthana
Thaniya Plaza
0-2231-2258
Nana Square
0-2655-7136
Holiday Inn Crown Easy walk (BMA)
0-2235-5156
Ambassador Hotel Easy walk (BMA)
0-2253-5621
Saladang
0-2267-0050
Sukhumvit Soi 7
0-2655-7720
Thanon Phatphong (Silom) Sub Branch
0-2634-2088
Yannawa
Surawong 3 Sub Branch
0-2632-7261
Ngamduphli
Silom
0-2235-9595
0-2642-3386
Jatuchak
Suanchatuchak Sub Branch
Suvarnabhumi Airport 19 Booths
Telephone
Samut Prakarn
Dindang
Thanon Ratchadaphisek
0-2213-1246
0-2615-8605
Klongtoi
Suvarnabhumi Airport Sub Branch 1 BC 2 E
0-2135-4501
Suvarnabhumi Airport Sub Branch 2 B 2 W
0-2135-4503
Suvarnabhumi Airport Sub Branch 3 BC 3 M
0-2135-4505
Suvarnabhumi Airport Sub Branch 4 B 4 W
0-2135-4507
Robinson Sukhumvit
0-2254-4332
Suvarnabhumi Airport 6 B 2 AE
0-2135-4511
Sukhumvit Soi 24
0-2204-2317
Suvarnabhumi Airport 7 B 2 AW
0-2135-4513
Sukhumvit Soi 4
0-2254-4607
Suvarnabhumi Airport 8 B 2 AM
0-2135-4515
Sukhumvit Soi 8
0-2253-9257
Suvarnabhumi Airport 9 B 2 LM
0-2135-4517
Benjasiri Park Easy walk (BMA)
0-2258-7721
0-2135-4519
0-2135-4521
Phathumwan
Gasorn Plaza
0-2656-1235
0-2135-4523
Central World Plaza
0-2646-1027
Suvarnabhumi Airport 13 B 4 AM2E
0-2135-4525
Phloenchit
0-2255-2998
Suvarnabhumi Airport 14 B 4 AME
0-2135-4527
Maboonkrong
0-2686-3841
Suvarnabhumi Airport 15 B 4 AMW
0-2135-4529
Siam Center
0-2255-3928
0-2135-4531
Siam Square Easy walk (BMA)
0-2252-2897
Suvarnabhumi Airport 17 B 4 LE
0-2135-4533
0-2254-2707
Suvarnabhumi Airport 18 B 4 LME
0-2135-4535
Suvarnabhumi Airport 19 B 4 LMW
0-2135-4537
0-2135-4559
Siam Square
Phayathai
Phaholyothin (S.P.Building)
0-2273-0290
Up-Country 85 Booths
Prakhanong
Soi chaiyot
0-2651-2030
Pranakorn
Telephone
Chiangmai
Kad Suan Kaew
0-5322-1934
Soi Watchanasongkram
0-2282-3571
Chiangmai Pavillian
0-5382-0631
Sunset Street
0-2629-5074
Talad Anusarn
0-5327-3732
Rikka Inn (Thanonkaosarn)
0-2280-1170
Thaphae
0-5381-8684
Watchanasongkram Easy walk (BMA)
0-2281-5705
Chiangmai Airport International
0-5327-1361
Wat Phrakaeo
0-2225-2770
Pratu Thaphae
0-5320-6421
Sawasdee kaeosarn inn
0-2282-7838
Talad Somphet Sub Branch
0-5321-9744
Banglumpoo
0-2282-5990
Thanon Changklan Sub Branch
0-5328-4261
Chiangrai
Ratchatheawee
Citicomplex (Pratunam)
0-2253-4003
Chiangrai
0-5371-1579
Platinum Fashion Mall
0-2121-8338
Sam Liam Thong Kham
0-5378-4190
Indra Hotel
0-2656-4164
Chonburi (Chomthian)
Samphanthawong
Wat trai mit
0-2225-9307
Kongdongtan (KR)
0-2204-2317
Chomthian
0-3823-1414
Foreign Exchange Booth
Thanon Leab Chaihaad (Dongtan)
Telephone
0-3823-3736
Chongburi (Pattaya)
Telephone
Big C
0-7620-9038
Patong 2
0-7634-0746
Kitti Car Care (Pattaya)
0-3842-0552
Phuket
0-7621-2254
Charming Inn
0-3836-2510
Phuket Fantasy
0-7627-9529
Notical Inn
0-3841-6318
Holiday Inn Patong
0-7634-2910
Novalodge (Pattaya)
0-3836-2405
Laguna
0-7632-5514
Phattaya
0-3842-9985
Wong wien karon
0-7639-8294
Phattaya Soi 10
0-3848-9208
Phuket International Airport
0-7632-8324
Phattaya Sai 2
0-3841-1605
Pationg
0-7634-1590
Foodland (Pattaya)
0-3848-8434
Rawai Sub Branch
0-7628-9109
Royal Garden Plaza (Pattaya)
0-3841-4704
Kamara Sub Branch
0-7627-9227
Pattaya International Hospital
0-3836-1748
Ocian Bangla
0-7634-0884
Diamond Beach Hotel Pattaya
0-3871-1353
Ocian Haad Patong
0-7634-4235
Lek Hotel Pattaya
0-3871-0391
Ha Yeak Chalong
0-7638-1378
Hi Five Hotel Pattaya
0-3842-7301
Prachubkirikhan
Wongweinplaloma (Pralinya)
0-3848-9219
Thanon Naresdamri (Hua Hin)
0-3253-2939
Sabai Land (Pattaya)
0-3836-1383
Thanon Dechanuchit Sub Branch
0-3253-0627
Sawasdee (Pattaya)
0-3841-2270
Talad Chatchai (Hua Hin) Sub Branch
0-3253-1336
Soi Bua Kao (Pattaya) Sub Branch
0-3872-0960
Satukarn Square
0-3253-1361
Sailom Pavillion
0-3251-4166
Hua Hin Market Villege
0-3252-6340
Kanchanaburi
River Kwae Bridge
0-3462-4948
Krabi
Pranakornsriayudthaya
Krabi
0-7562-0623
Praratchawangbangpain
Phi Phi 2
0-7560-1043
Suratthani
Lanta
0-7568-4577
Koh Phangan
0-7737-7004
Phi Phi Sub Branch
0-7560-1013
Koh Samui
0-7742-0190
Ao Phranang 2
0-7569-5561
Chaweng
0-7723-0926
Talad Bophut (Koh Samui)
0-7742-5507
Bangrak (Koh Samui)
0-7724-7969
Mae Hongson
Mae Hongson Sub Branch
0-5362-0526
Phang-Nga
0-3526-1547
Black Cat
0-7742-2507
Kao Lak
0-7644-3366
Baan Mae Nam (Koh Samui) Sub Branch
0-7724-7516
Kao Lak 1
0-7648-5361
Samui Center Point
0-7743-0472
Phetburi
Chaweng 3 (Koh Samui) Sub Branch
0-7741-3404
0-3243-3745
Thanon Thaweratphakdee (Chaweng)
Sub Branch
0-7724-5891
Kata
0-7633-0473
Koh Tao Sub Branch
0-7745-6121
Karon
0-7639-6475
Chaweng 2 (Koh Samui) Sub Branch
0-7723-1667
Karon 2
0-7628-6504
Haad Rin (Koh Phangan)
0-7737-5483
Soi Keb Sub
0-7634-0036
Haad Lamai (Koh Samui)
0-7742-4387
Thanon Thaweewong
0-7634-0523
Laem Din (Koh Samui)
0-7741-4362
Thanon Rat-u-thit 200 pee
0-7629-2090
Trad
Thanon Rat-u-thit 200 pee (Sand in hotel)
0-7629-5467
Koh Chang Sub Branch
Tara Patong
0-7629-4117
Cha am Sub Branch
Phuket
0-3955-1366
Oversea Branches, Affiliated Banks
And Joint Ventured Banks
Overseas Branches
Affiliated Bank
Joint - Ventured Bank
Hong Kong Branch
Combodian Commerdial Bank
Head Office - Phnom Penh
VinaSiam Bank
26 Monivong Road, Sangkat
Ho Chi Minh City
Suite 3209-3210, 32/F, Jardine House,
1 Connaught Place, Central, Hong Kong
Telphone : 001-852-2-524-4085
Telefax : 001-852-2-845-0293
Telex : 66150 Siamb HK
Swift : Sicohkhh
Phsar Tmei, Khan Donpenh,
Phnom Penh,
Kingdom of Cambodia
Telphone : 001(855) 23 426145
E-Mail : [email protected]
Telefax : 001(855) 23 426116
Singpore Branch
1 Raffles Place #30-01, OUB Centre,
Singapore 048616
Telphone : 001-65-6536-4338
Telefax : 001-65-6536-4728
Telex : RS 24419 SIAM SP
Swift : SICOSGSG
Vientiane Branch
117 Lanexan-Samsenthai
Road Ban Sisaket, Muang Chanthaburi,
Vientiane Lao
Telphone : 007-856-21-213-500-1
Telefax : 007-856-21-213-502
Telex : 804-4364 SCBVTE LS
Swift : SICOKHPP
No.2 Pho Duc Chinh Street, District 1,
The Socialist Republic of Vietnam
Telphone : 001-84-4-8210-557
Telefax : 001-84-4-8210-585
Telex : 813-322 VSB VT
Combodian Commerdial Bank Battamvang Branch
Near railway station,
Makara Road, Battambang
Telphone : 001 (855) 53 952 266
Telefax : 001 (855) 53 370 130
Combodian Commercial Bank Siem Reap Branch
130 Siwatha Road, Mondol 1,
Sangkat 2, Ekapheap,
Siem Reap
Telphone : 001(855) 63 964 392
Telefax : 001(855) 63 380 154
Reference Information
Registrar
Thailand Securities Depository Company Limited
62 The Stock Exchange of Thailand
Rutchadapisek Road, Klongtoey, Bangkok 10110
Tel: 0-2229-2800 and 0-2654-5599
Fax: 0-2359-1259
Auditor
Dr. Suphamit Techamontrikul
Certified Public Accountant (Thailand) Registration No. 3356
or Mr. Niti Jeungnijnirun
or Mr. Permsak Jerajakwattana
Deloitte Touche Tohmatsu Jaiyos Audit Co., Ltd.
Rajanakarn Building, 25th Floor,
183 South Sathorn Road, Yannawa, Sathorn, Bangkok 10120
Tel: 0-2676-5700 Fax: 0-2676-5757-8
Legal Advisor
Siam Niti Law Office Company Limited
SCB Park Plaza, Tower 1 West, 12th Floor,
Tel: 0-2937-5000
Fax: 0-2937-5001
Cementhai Legal Counsel Limited
1 Siam Cement Road, Bangsue, Bangkok 10800
Tel: 0-2586-5777, 0-2586-5888 Fax: 0-2586-2976-7
Tax Advisor
Mr. Verachai Tantikul
The Siam Commercial Bank PCL Head Office Building
Tel: 0-2544-2490
Corporate Communications Advisor
Mr. Vinit Surapongchai
The Siam Commercial Bank PCL Head Office Building
Tel: 0-2544-1156
For Shareholders
The Bank’s securities listed on the Stock Exchange of Thailand
1. Ordinary Shares, main board (SCB) and foreign board (SCB-F)
2. Preferred Shares, main board (SCB-P) and foreign board (SCB-Q)
Preferred Share Conversion
Exercise Right One preferred share converts into one ordinary share
Exercise Price None
Conversion Period Every three months (see below)
SCB’s Financial Calendar 2008
Mar 16-30
Mar 31
Jun 15-29
Jun 30
Sep 15-29
Sep 30
Dec 16-30
Dec 30
: Application submission of SCB-P
: Exercise date for SCB-P
Contact SCB Investor Relations at
Investor Relations Division, Finance Group
The Siam Commercial Bank PCL, Head Office, Floor 15A
9 Ratchadapisek Road, Jatujak, Bangkok 10900
Tel +66 2 544-4222
Fax +66 2 544-4948
E-mail: [email protected]
Website: www.scb.co.th

Annual Report 2007

Transcription

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