BBL: Bangkok Bank Public Company Limited | Annual Report 2013
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Bangkok BankPublicCompanyLimited Annual Report2013 NEW HORIZONS Contents 2 88 130 152 Financial Performance Corporate Governance Organization Chart Report of the Indicators Independent Certified Public Accountants 102 132 34 Risk Factors and Board of Directors and Message from Risk Management Top Executives 153 the Chairman Financial Statements 114 148 36 Management Discussion Report of the 163 Message from the and Analysis Board of Directors’ Notes to Financial Chairman of the Board Responsibilities for Statements of Executive Directors the Financial Statements 127 Appropriation of Profit 250 38 for the Year 2013 149 General Information Management Report Report of the Nomination and Remuneration 128 Committee 258 60 Ten-Year Statistical List of Branches Corporate Social Summary Responsibility 150 Report of the Audit Committee BANGKOK BANK PUBLIC COMPANY LIMITED VISION ANNUAL REPORT 2013 1 Vision TO BE A BANK WHICH PROVIDES QUALITY FINANCIAL SERVICES IN LINE WITH CUSTOMERS’ REQUIREMENTS, AND IS WELL EQUIPPED WITH QUALIFIED HUMAN RESOURCES AND WORLD-CLASS TECHNOLOGY AND WORKING SYSTEMS, WHILE MAINTAINING ITS STATUS AS A WELL-ESTABLISHED INTERNATIONAL BANK AND A LEADING ASIAN BANK. FINANCIAL PERFORMANCE BANGKOK BANK PUBLIC COMPANY LIMITED 2 INDICATORS ANNUAL REPORT 2013 Assets Total Income 7.3% 8.3% 2012 2013 2012 2013 143,138 2,596,507 132,220 116,563 2,420,740 2,109,042 Unit : Million Baht Unit : Million Baht Year 2011 2012 2013 Year 2011 2012 2013 Profi t before Net Profi t provision and tax 10.9% 12.7% 2012 2013 2012 2013 35,906 53,510 48,264 31,847 46,518 18,897 Unit : Million Baht Unit : Million Baht Year 2011 2012 2013 Year 2011 2012 2013 BANGKOK BANK PUBLIC COMPANY LIMITED FINANCIAL PERFORMANCE ANNUAL REPORT 2013 INDICATORS 3 Financial Performance Indicators (Consolidated) Percentage Change 2013 2012* 2011* 2013/2012 2012/2011 Financial Position (Million Baht) As at 31 December Assets 2,596,507 2,420,740 2,109,042 + 7.3 + 14.8 Loans to customers 1 1,752,667 1,604,391 1,470,398 + 9.2 + 9.1 Loans to customers (less allowance for doubtful accounts) 1 1,660,085 1,516,803 1,385,661 + 9.4 + 9.5 Deposits 1,935,272 1,834,654 1,587,834 + 5.5 + 15.5 Liabilities 2,300,455 2,148,643 1,862,384 + 7.1 + 15.4 Shareholders’ equity 2 295,936 272,025 245,785 + 8.8 + 10.7 Operating Results (Million Baht) For the Year Ended 31 December Interest income 100,405 95,260 81,827 + 5.4 + 16.4 Total income 143,138 132,220 116,563 + 8.3 + 13.4 Profi t before provision and tax 53,510 48,264 46,518 + 10.9 + 3.8 Profi t before tax 44,917 41,016 34,490 + 9.5 + 18.9 Net profi t 2 35,906 31,847 18,897 + 12.7 + 68.5 Per Share (Baht) Profi t before tax 23.53 21.49 18.07 + 9.5 + 18.9 Net profi t 2 18.81 16.68 9.90 + 12.7 + 68.5 Par value 10.00 10.00 10.00 - - Book value 2 155.03 142.50 128.76 + 8.8 + 10.7 Share prices - range 237.00 - 174.00 203.00 - 146.00 184.00 - 123.50 - - - year-end 178.00 195.50 153.50 - 9.0 + 27.4 Financial Ratio (%) Rate of return on average assets 2 1.45 1.41 0.94 + 0.04 + 0.47 Rate of return on average equity 2 12.62 12.35 7.99 + 0.27 + 4.36 Net profi t to total income 2 25.09 24.09 16.21 + 1.00 + 7.88 Total capital to risk - weighted assets 3 16.75 15.98 15.22 + 0.77 + 0.76 Remarks 1. Less deferred revenue 2. Attributable to the Bank 3. 2013 : Basel III ; 2011-2012 : Basel II * Restated according to TAS 12 Income Tax (effective from January 1, 2013) GROWING TOGETHER As Thailand gears up to become a regional logistics and energy hub, the corporate sector is ready to capitalize on the many opportunities that lie ahead. Thailand’s strong manufacturing base, sound business practices and central geographical position make it an ideal location for establishing regional headquarters and building regional supply chains. Meanwhile, Thailand’s home- grown enterprises are spreading their wings to meet the growing demands of a dynamic region. Service for corporate customers 69 Years of experience 23 Specialized teams 4,400+ Large corporate customers Bangkok Bank is a leading provider of corporate debt financing in Thailand, and its in-depth knowledge of Thai industry means that it is highly regarded for its specialist industry advice. The Bank offers an extensive and sophisticated range of products including cash management, project financing, trade services, supply-chain financing, custodial services and syndicated loan management services. Bangkok Bank has a significant overseas presence, particularly in East Asia. This, together with its extensive domestic network of over 1,100 branches and expert knowledge, gives it a significant competitive advantage in servicing corporate customers. Percentage of total loans Corporate banking 44% - Broad Industry Experience - Investment Banking - Trade Services - Treasury - Cash Management “Thailand is at the center of one of the fastest-growing regions in the world and access to secure energy supplies is crucial to our future.” Mr. Chansak Fungfu Senior Executive Vice President Expanding horizons For the next 10 years and beyond, the spotlight will be more on Asia due to increasing connectivity within the region and high levels of growth, especially in Southeast Asia. To benefit from such opportunities, Thai corporations have been expanding across the region, with outbound investment reaching historically high levels in recent years. One of these corporations, Banpu, began as a small coal producer in Lamphun Province in northern Thailand 30 years ago and has now risen to become a significant regional energy company, with operations in six countries throughout Asia Pacific. Bangkok Bank understands the importance of stable energy supplies for economic growth and national security and we are pleased to be able to contribute to this by supporting Banpu. ASEAN’s growth will depend on secure access to energy supplies 80% Projected increase in Southeast Asia’s energy needs by 2035 $1.7T Increase in energy-supply infrastructure needed by 2035 Source International Energy Agency “Our business involves complex fi nancial needs. We couldn’t have managed to grow so strongly without Bangkok Bank’s expertise and depth of industry knowledge.” Mr. Chanin Vongkusolkit CEO Banpu Public Company Limited “As the market leader in corporate banking we are ready to support our customers’ expansion in the next phase of Thailand’s growth.” Ms. Niramarn Laisathit Executive Vice President SUPPORTING ALWAYS Good advice, business planning and a strong support network are key success factors for the entrepreneur of today. At Bangkok Bank, we believe that by working in partnership with our customers we are building a better future. We offer an extensive range of support programs to help them expand their knowledge base and business networks so they can grow their business more efficiently and effectively. Location : The Promenade Lifestyle Mall Creating a bright future for SMEs Percentage of total loans 72% Others 28% Commercial and business banking 250,000+ SME customers Business centers/ business desks 236 around the country By providing our customers with a full range of services, including training, workshops, networking and succession-planning for family enterprises, we can help them thrive and grow sustainably. This corresponds to our strategic intent to be ‘puan koo kit mit koo baan’ − a trusted partner and reliable close friend. - Workshops - Seminars - SME Toolbox - Business Planning - Smart Family Enterprises “Small and medium-sized enterprises are the lifeblood of the economy and we have always worked to provide them with a helping hand.” Mr. Virasak Sutanthavibul Senior Executive Vice President Location : The Promenade Lifestyle Mall From small beginnings… Starting in 1989 with a workshop of less than 20 sewing machines producing fabric bags and other fabric-based goods, and a 2-square meter sales booth, NaRaYa is now a Baht 500 million business, employing over 4,000 people. The business was founded by husband and wife team Vassilios and Wasna Lathouras who attribute their success to their focus on quality and diversity of products. They combine practical business skills with a strong sense of social responsibility and have been training local villagers to develop expertise in craftwork. NaRaYa now has outlets in Asia, Europe and the Middle East. “ Bangkok Bank was the fi rst bank NaRaYa used when we started up. We have learned a lot about business from Bangkok Bank. Everybody gave us sincere and reasonable advice which was practical and helpful and when we applied this to our business we got good results. Bangkok Bank is truly focused on its customers, a trusted friend and a knowledgeable partner.” Mrs. Wasna Lathouras Managing Director and Owner of NaRaYa Participants in training courses for SME customers 5,110 6,010 7,510 2011 2012 2013 Bangkok Bank holds regular seminars and training courses to help small and medium- sized enterprises to enhance management skills, drive innovation, expand industry knowledge and build connections. “ Knowing the market and business environment means we can help our customers in the way that matters most.” Mrs. Srisuphang Sukprasith Assistant Vice President A FRIEND INDEED Our customers come first. That’s why we have developed new services and channels such as mobile apps and personalized ATM menus that make it easier and quicker for them to do their banking and keep track of their finances. Whether they are looking to buy a home, saving for the future, want insurance protection for their family, or are preparing for retirement, we can help them.