Best Shareholder Treatment Award Board of the Year for Distinctive Practices
“Bank of the Year” [Level 4] KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 A- Level “STABLE”
ANNUAL REPORT 2007 KIATNAKIN BANK PUBLIC COMPANY LIMITED
KIATNAKIN BANK PUBLIC COMPANY LIMITED 500 Amarin Tower, 11th Floor, Ploenchit Road, Lumphini Pathumwan, Bangkok 10330 Tel. +662-680-3333 Fax. +662-256-9933 www.kiatnakin.co.th “Human Development for Nation Development with Kiatnakin” Awarded “Best Shareholder Treatment Award” in relation Best to equal treatment to all shareholders as held by Thailand Securities by Kiatnakin Bank Foundation Shareholder Treatment Depository Company Limited (TSD) in collaboration with Thai Investors Award Association (TIA), Listed Companies Association (LCA), and Thai Educational Promotion Investor Relations Club (TIRC).
Honorably awarded “Best Board of the Year for Distinctive Supported the “Bangkok Business Challenge” held by Sasin Institute of Business Practices 2006/2007” held by the Institute of Directors Association Administration of Chulalongkor n University and SET Board of (IOD) in collaboration with the Stock Exchange of Thailand (SET), The Thai the year for Chamber of Commerce (TCC), The Federation of Thai Industries (FTI), Distinctive The Thai Bankers’ Association (TBA), Listed Companies Association Practices (LCA), and The Federation of Thai Capital Market Organizations (FETCO).
Joined with Duang Pratheep Foundation Joined with World Vision Foundation of Joined with Kiat Ruammitr Foundation in training on financial saving to Thailand in providing bicycles to to construct school buildings and present housewives in communities. schools located in remote areas to scholarship to students in communities increase the educational opportunities for rural children. Bank of Awarded “Bank of the Year 2007” (Level 4), from the survey by Philanthropy and Public Disaster Relief Ethical Development and Social Immunity the Year Money & Banking Magazine.
The credit rating of the Bank has been sustained and it is likely to Donated to help teachers in the South The Bank in collaboration with the Join with the Youth Relation Center Level gain “STABLE” level from TRIS Company Limited. Vocational Education Commission of Metropolitan Police in conducting helped flood victims by constructing “Hand in Hand, Heart to Heart, A-“Stable” floating toilets for them in 2006. Against Drug” project.
Awarded “Excellent AGM of the Year” from the Annual General Level Shareholders Meeting Assessment Project by the Securities and Exchange “Excellent” Commission (SEC) in collaboration with Thai Investors Association (TIA) and Listed Companies Association (LCA). Supported Young Buddhist Association of Thailand to promote wisdom and happiness through meditation KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 Table of Contents
Financial Highlights 4
Message from the Chairperson 6
Report of the Audit Committee 8
General Information 9
Nature of Business 12
Risk Factors 17
Shareholding and Management Structure 21
Related Transactions 41
Analysis of Financial Position and Operating Performance 43
Profiles of Directors and Executives 51
Report from the Board of Directors 64
Report from the Nomination and Remuneration Committee 65
Financial Statements 66-136
Branch Offices
Kiatnakin Bank Public Company Limited 137
Kiatnakin Securities Company Limited 138
List of Information Required by
The Office of Securities Exchange Commission 140
KIATNAKIN BANK PUBLIC COMPANY LIMITED KIATNAKIN BANK PUBLIC COMPANY LIMITED
VISION “To be specialized bank of customers’ first choice” MISSION “To provide financial services and support to enhance the competitiveness of customers/business partners while maintaining social responsibilities”
VALUE Discipline - determined to perform our job in an orderly manner Integrity - honest and adhering to the code of ethics Expertise - determined to acquire more knowledge and skills Teamwork - determined to work as a team Entrepreneurship - determined to drive business and contributed to the bottom line of the Bank. Dynamic - adaptable to changes
ANNUAL REPORT 2007 Persons Million Baht 19,000 Million Baht 17,500 1,896 70,231 18,608 1,489 59,259 1,466 51,842 17,504 16,000 16,209 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 0 15,500 16,500 17,000 18,000 18,500 0 500 1,000 1,500 2,000 0 2005 2006 2007 Increasing the number of employees / staffs as another mean to expand operations and better serve our customers Growth in deposits provided the Bank with continuous source of funds 2005 2006 2007 2005 2006 2007 Satisfactory operating performance, shareholder Satisfactory operating equities grew continuously Branches Million Baht Million Baht
27 65,700 88,839 76,763 51,858 68,051 19 46,122
16 20,000 40,000 60,000 80,000 100,000
10,000 20,000 30,000 40,000 50,000 60,000 70,000 Increasing the number of branches as the means to expand operations and better serve our customers Success in the expansion of hire purchase lending Success in the expansion of hire purchase lending and commercial lending caused the overall to expand Assets continued to grow due to success in lending Assets continued to 0 0 0 10 15 20 25 30
Financial Highlights Financial 2007
2006
2005 2007
2006
2005 2007
2006
2005
KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 Financial Highlights * Includinginterbankandmoneymarketitems Return onAssets[%] Shareholder’s Equity Unrealized lossinFinancialClaimRecorded Net Profile[Loss] Monority Interest,Net Income tax Non-intererst Expenses Total income Non-intererst Income restructuring and doubtfulaccountslossontroubleddebt Net interestanddividendincomeafterbaddebts Shareholders’ Equity Deposits* Total Liabilities Total Loans Tier 1andTier 2CapitalRatio[%] Book Value [Baht] Earnings pershare[Baht] Total Assets Return onEquity[%] Dividend [Baht] Operating Results Financial Ratios 2007 2007 18,608 44,420 70,231 65,700 88,839 2,154 2,653 5,254 1,811 3,443 33.59 11.96 2.60 4.15 601 445 2 Consolidated Consolidated
2006 2006 76,763 17,504 44,560 59,259 51,858 12.09 2,034 2,296 4,618 1,121 3,497 33.93 2.81 3.98 610 285 3
2005 2005 16,209 43,420 51,842 46,122 68,051 15.89 2,436 2,147 4,861 1,534 3,328 32.60 4.95 3.88 473 275 3
2007 2007 89,189 65,102 73,797 44,480 15,392 1,160 19.98 2,892 5,575 2,238 29.50 16.39 4,415 3.50 5.57 2.30 602 445
Bank Bank 2006 2006 76,299 51,175 62,749 44,567 13,550 Unit :BahtMillion 3,371 2,087 26.32 22.17 2,673 6.72 1.38 1.95 2.20 698 999 610 285
2005 2005 68,658 45,554 52,489 44,556 16,170 2,526 15.91 2,034 2,436 4,560 1,849 32.60 22.59 3.84 4.95 2.30 473 275
KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 assets for sale increased by Baht 960 et profits in 2007, at Baht 2,154 million, he Bank made continuous progress in he Bank received approval by Bank of he Bank mobilized funds to use in its operations operations its in use to funds mobilized Bank he T T Foreclosed T N • • • • • by accepting deposits and amount consistent with its lending; thus, total liabilities issuing debentures in an for the Bank was Baht 70,231 million, an 18.5%. increase of Thailand to open ten more branches, eight were of openedwhich by the end of 2007. As the Bank has a total of 27 branches. at end of 2007, increased Baht 120 million, an increase of 5.9% when combined with the revaluation gain on investment in financial claims and assets for sale, equaled Baht 2,145.7 million, a reduction of 1.1% when compared to 2,171 Bahtmillion at year end 2006. The reduction can be attributed to the mobilizing of funds through short-term debentures and an increase in bills of exchange, which resulted in higher cost of capital while non-performing loans and doubtful accounts expenses proportionally thatto the number of increasednew loan customers. In addition, there was an increase in non-interest income expansion in terms of branches resulting from the Bank’s and personnel. restructuring the debts from investmentclaims duringin 2007. financial Year end outstanding amount was Baht 6, 876 million, a reduction of Baht 2,205 million. million to Baht 9,293.6 million due to debt restructuring of sale the accelerate must Bank The processes. legal and such assets in the future. increased net loan by 27%, while the entire commercial of 5.5%. banking system had a total loan growth Bank continued to grow with an increase Bank was able to satisfactorily increase the
The The • During the past year, Thai economy continuously the factors, unfavorable many are there Eventhough •
outstanding hire purchase loans by 42.4%, and effectively and 42.4%, by loans purchase hire outstanding in total assets of 15.7% to Baht 88,839 million, while the while million, 88,839 Baht to 15.7% of assets total in entire commercial banking system grew at 3.4%.
expanded even with impact from domestic and external prices oil in rise continuing were factors main The factors. the and nations industrialized leading between conflicts and suspect to people many caused which nations, East Middle with issue The high. remain to continue will prices oil that sub-prime mortgage loans from US was another factor that contributed to the slowdown isof theexpected economy; to it affect other USthe tradingexpansion countriesof worldand economy asincluding an exporterThailand to US. However, since Thailand exportto other regions as expectedwell, to continueoverall to expand. exportOn the politicalthevolume side,general electionis was held at the the end economyof 2007 hadand many challengingresolution, issues awaiting such continually asstrong Thai highBaht, and lower consumer inflationand investor confidence. These ratewere the major offactors that 3.2%,contributed to the low level of growth in loan volume in the commercial banking Totalsystem depositswhich is grewat Investments5.5%.by in 0.2%the stock market withincreased as highreflected index which rose to 858.1 and trading volume in the SET liquidity. decrease representing day, per million 15,782 Baht average of 7.5%. by performance operating good maintain to able was Bank focusing on developing the businesses that the Bank has 2007 end year at as performance Bank’s The in. expertise are summarized below: from the Chairperson Message
KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 Distinctive Practices2006/2007”. governance. corporate good the on (IOD) Directors of Institute Thai listed companies that received a “Very Good” rating from that receivedover100points. Listed Companies Club. The Bank 2007 was 1 of 19 companies in and Commission Exchange Assessment Securities the by conducted Quality Meeting Shareholder Investor Relations Club. Thailand and Club, Companies Authorized Limited in conjunction with Thai Investors Association, Company Depository Securities Ceremony Thailand by 2007 sponsored Awards Shareholder the at Awards financial claims and assets for sale in order to maintain to order in sale for assets and claims financial as well as down in investment from process restructuring debt expediting slowing is that the with situation consistent economic be more and quality becoming loan on while cautious and businesses loan loan purchase hire commercial expanding on mainly focus to plans Bank The service. better provide and position has competitive our increase to serve order in Bank market to existing the required the as branches which more add in and expertise businesses the expanding along theskytrainandsubwayroutes. down with an exception of budget condominium projects and residential development projects are expected to slow purchases automobile New rate. inflation in increase the following rise to likely is rate Interest market. the into entered fully have banks commercial large because loans purchase hire and personal for especially competition, intensified under expand to continue will institutions Financial investments. government and tourism exports, on depending noticeably grow to Thai expected is installed. economy is election from government once new improve the will conditions political Thailand and politics world in situations violent no are There Baht. Thai to compared when weak remain dollar US the and constant remain prices oil high while slightly, expand by MoneyandBankingMagazine. • • • • • Kiatnakin’s plan in 2008 will concentrate on on concentrate will 2008 in plan Kiatnakin’s In 2008, it is expected that the world economy will Ranked A The R The Bank received Best Shareholder Treatment warded for having “Best Board of the Yearfor the of Board “Best having for warded eceived “Excellent” appraisal for Annual Annual for appraisal “Excellent” eceived Bank is one of the 62 companies from 402 from companies 62 the of one is Bank 4 th for Bank of the Year in 2007 ranking during 2007. operations our supporting in your and with investments Bank Kiatnakin entrusting in shareholder our of one each thank to opportunity this take to like long-term ensure to profitability andgrowthforKiatnakinbank. certain parties. is related strategy all this by Overall, compliance ensure as governance well corporate as good of level higher and reinforce customers; our for value more create to expertise of area Bank’s the in specialized more efficient become service; more provide to technology new develop to as a result of economic instability. The Bank will continue capital requirement to support the risk of asset devaluation sufficient maintaining effectively and liabilities; and by assets manage liquidity maintaining on in; than expertise Bank has the rather market the assets developing on focusing quality volume; by good cautiously on proceed expanding will Bank the environment, the growthinassetsandprofitability. On behalf of the Bank’s Board of Directors, I would volatile and sluggished this in Nevertheless, (Ms. NawaapornRyanskul) Chairperson
KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 . Pichai Dachanapirom) (Mr Chairperson of the Audit Committee oreover the audit committee met with the M The Internal Audit Office, which is under the The Audit Committee found that the Bank’s auditor 4 times and met together with the auditor from Bank of Thailand 1 time in order to obtain result theand consider audit the opinion and suggestions in how to operate from the 2 external parties. The meeting was management ensure and up follow to means a as held also make consider, improvement and adjust the approach of emphasizing while alignment, in be to auditor internal the on good management and corporate governance. jurisdiction of the Audit Committee, had audits conducted on various departmentsinternal tocontrol ensure compliance sufficient withand announcements;rules, andregulations review of financial It also reports.served as a central unit to receive complaints to improve the Bank’s services, facilitate efficient treat work,all stakeholders equally, consider the rights of the information. all disclosed transparently and shareholders, Quarterly reports were submitted to the Board Bank’s of Directors. financial statement disclosure process had appropriate and sufficient control. preparation and informationThe Bank’s financial statements were reliable accordanceand in to the Generally PrinciplesAccepted Accounting(GAAP) and theappropriate. Bank’s operations was
Chairperson Member Member Dachanapirom Bongsadadt Pattrakornkul . Pichai
e Audit Committee held a total of seven Mr Manop Mr. Chet Mr. The Audit Committee was appointed as per Board The Audit Committee was appointed as per Board 1. 2. 3. The Audit Committee operated according to its Th
phasized on credit review and risk management
meetings in 2007. In addition to performing the above- mentioned duty over the past year, the Committee also em operations. The Committee examined and monitored branch performance throughout the country and audited cash deposit operations and transactions to ensure that this new banking service is sound and in line with set regulations. Special measures were in place to monitor closelyto make certain that the regulations are being adhered to.
Dear shareholders, comprising 2007, April 26 on 3/50 no. meeting Directors of of 3 independent directors as follows: Charter. The responsibilities of the Committee are to report the audit procedures Directors to and theprovide accurate,Bank’s complete Boardand reliable of disclosure of financialOther responsibilities information are to remuneration proposeand the ofreports.name an and external Board of auditorDirectors in toorder to the obtain Bank’sapprovalappointment for an at the AnnualMeeting; toGeneral ensure that Shareholdersbusiness has been in conductedaccordance with relevant laws and coordinateregulations; to with the Risk to Managementmake Committeesure that Bank’s therisk managementoperations policy; to make adheredcertain there are that no conflicts toof interest; theto supervise, provide recommendations and observations Auditon theOffice’s Internal work practice;approve and the to Internalconsider inspection plan. Auditand Office’s annual audit the Audit Committee Report of
KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 1. GeneralInformation 1.1 Address Registration Number Nature ofBusiness Company Consultant /ManagerunderContract Legal Adviser Auditor Registrar No. ofordinarysharessold
General Information/OtherReferences
500 AmarinTower, 12 172 Banking Kiatnakin BankPublicCompanyLimited None 179/74-80 BangkokCityTower, 15 Price Water HouseCooperABASLimited Ms. UnakornPhruithithada None Fax: 0-2286-5050 Tel. 0-2286-9999 South SathornRoad,Bangkok10120 Fax. 0-2359-1259 Tel. 0-2229-2800,0-2654-5599 Ratchadapisek Road,Klongtoey, Bangkok10110 62 StockExchangeofThailandBuilding Thailand SecuritiesDepositoryCompanyLimited 521,687,004 sharesasofDecember31,2007 www.kiatnakin.co.th Tel. 0-2680-3333Fax0-2256-9933 Bangkok 10330 Ploenchit Road,Lumpini,Pathumwan, th Floor, th Floor,
KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 No. of 600,000 800,000 ordinary 7,221,223 65,000,000 125,947,412 187,239,308 shares issued 10 10 Bank 99.95 10.33 99.59 99.99 % Shares owned by the aa
Car 2. Fund Fund Fund Business Leasing / Securities Management Management Management Business Type Business Type Hire-purchase Hire-purchase
Floor, th Floor, Floor, th th
Floor, th Name and Address Floor, Rachadaphisek Road, Rachadaphisek Floor, nd - 32 Floor, Rachadaphisek Road, Rachadaphisek Floor, th st Huaykwang, Bangkok 10320 0-2693-2300 Fax. 0-2693-2320 Tel. Company Limited 1, 252/38-41 Maungthai-Phatra Tower 31 North Sathorn, Sathorn, Bangkok 10120 0-2633-7777 Fax. 0-2633-7300 Tel. Asia Recovery Fund 1 Thai Farmers Asset Management BTMU Leasing (Thailand) Company Limited BTMU Leasing (Thailand) 4 54 Harindhorn Tower, North Sathorn Road, Silom, Bangrak, North Sathorn Road, Bangkok 10500 0-2266-3060 Fax. 0-2266-3067 Tel. Attakorn Company Limited 200 Juldis Haadyai Plaza, 4 Ploenchit Road, Pathumwan, Bangkok 10330 0-2680-2222 Fax. 0-2680-2233 Tel. Kiatnakin Fixed Income Fund 48/16-17 Tisco Tower, 9 Tower, 48/16-17 Tisco Tisco Asset Management Company Limited Asset Tisco Company Limited 1, 252/38-41 Maungthai-Phatra Tower 30 Huaykwang, Bangkok 10320 0-2693-2300 Fax. 0-2693-2320 Tel. Asia Recovery Fund 2 Thai Farmers Asset Management Niphat Uthit 3 Road, Haadyai, Songkhla 90110 0-7435-4334-5 Fax. 0-7435-4336 Tel. Kiatnakin Securities Company Limited 7 500 Amarin Tower, (as of 31 December 2007) (as of 31
Companies Companies in which Kiatnakin Bank holds 10% or more of the total registered shares
5. 1. 2. 4. 6. 3.
1.2
KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 10
12. 10. 13. 11. 7. 8. 9.
31 252/38-41 Maungthai-PhatraTower 1, Company Limited Thai FarmersAssetManagement Asia RecoveryFund3 989 SiamTower Building,24 One AssetManagementCompanyLimited Thai RestructuringMutualFund Tel. 0-2693-2300Fax.0-2693-2320 Bangkok 10320 209 KTower, 10 CMIC DevelopmentCompanyLimited Tel. 0-2657-5757Fax.0-2263-0199 Bangkok 10330 Ploenchit Road,Lumpini,Pathumwan 989 SiamTower Building,24 One AssetManagementCompanyLimited Asia RecoveryPropertyFund3 Tel. 0-2659-8888Fax.0-2659-8860-1 Rama 1Road,Pathumwan,Bangkok10330 989 SiamTower Building,24 One AssetManagementCompanyLimited Asia RecoveryPropertyFund1 Tel. 0-2659-8888Fax.0-2659-8860-1 Rama 1Road,Pathumwan,Bangkok10330 Nippon Pack(Thailand)CompanyLimited Tel. 0-2664-1396-7Fax.0-2664-2163 Wattana, Bangkok10110 Sukhumvit 21Road,KlongtoeyNue, Tel. 0-2421-2060-1Fax.0-2421-0496 Nhong Kham,Bangkok10160 53/34 PetchkasemRoad,Nhongkangplu, 898 PloenchitTower Building,12 One AssetManagementCompanyLimited Ayudhya Tuntawee Fund5 Tel. 0-2659-8888Fax.0-2659-8860-1 Rama 1Road,Pathumwan,Bangkok10330 st Floor, RachadaphisekRoad,Huaykwang, Name andAddress th Floor
th th th Floor, Floor, Floor, th Floor, Business Type Management Management Management Management Management Packaging Building Rental Office Fund Fund Fund Fund Fund
owned bythe % Shares 99.97 98.91 80.58 98.77 99.50 11.01 83.57 Bank shares issued 190,832,895 230,000,000 78,698,484 93,340,000 24,418,404 12,000,000 5,983,265 ordinary No. of
11 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 In the
. utomobile Services: Provide annual ersonal Loan: Provide personal loan for nsurance Services: Provide insurance against against insurance Provide Services: nsurance registration service and licensing service I fire or any other damage (e.g. automobile insurance) as well as life insurance in the form of car loan protection. The plancurrent is to offer more insurancesuch productsas personal accident insurancepersonal loan protection. and P customer with excellent repayment records at low interest rate with times the salary credit limits 5 Book Loan: Provide book loan for second hand automobiles automobile The records. repayment excellent for customers withmust be less than 10 years old. A
uction of Repossessed Automobile 2. 3. 4. 1. A
• beginning of 2007, the Bank openedauction house anKiatnakin Car automobileCenter (KKCC), located on Bangna-Trad Highway (Km. 8) with a budget of 30 comprehensive and modern the of one is It Baht. million auction automobile support to Thailand in houses auction and training needs. The Bank organized trainingsthe general for public that are interested in learning more about second-hand automobiles. The Bank hold weekly region central the in automobiles second-hand of auction new and second-hand, so that borrowers of such loans are able to manage their cash flow properly at a suitable interest rate and repayment period. Due to our expertise following the offers also Bank the loans, purchase hire- in related services in order to provide most convenience for our customers: The Bank offered auto The Bank offered a variety
Hire-Purchase Loan
Deposit Service • • Important Business Characteristics Important Business Characteristics Kiatnakin Bank Public Company Limited offers a Kiatnakin Bank Public Company Limited received
hire purchase services for all types of automobiles, both Commercial Bank Main Businesses of ways to save money. Depositorsseveral types canof account chooseincluding savingsfrom and current account with step up interest rates. Moreover, the two accounts can be joined by requesting automatictransfer betweenfund accounts (Sweep In-Out). Depositors can choose a short or long-term fixed deposit schemes or choose the type of savings that uses a passbook or a certificate of deposit or choose a scheme yield such as bill of exchange. with higher 2.1 full rangeendorsing and issuing of credits, commercialextending deposits, accepting banking services, such asbills of exchange or negotiable instruments, trading in avalisation foreign of currency, trade bills, acceptance of bills, issuing letters of credit or guarantee, and operating hire purchase and leasing business, etc. permission to operate a document financial BOT. FSD. (21) group1984/2549 from as the perBank of Thailand the dated 4 December 2006. The Bank is the parent company and has one subsidiary company name Kiatnakin Securities Company Limited (KKS). KKS is a full service securities company andof the Stock Exchange the of Bank Thailand. Currently, is member #19 has 27 branch offices throughout plans has Bank The area. Metropolitan Bangkok Greater the provinces and to open 10 more branches in 2008 in order to provide better service to our customers. 2. Nature of Business 2. Nature of
KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 12 assets business, packagingandprintingbusiness. other business such as apartment business, transportation dealers, auto hand second and dealers automobile new as such business automobile were supporting on focused their business to revenue. The main businesses in which corresponded the Bank that schedule repayment a and limit, credit term short sufficient request, credit response their on prompt and processing credit rapid received Customers businesses. qualified for credits corporate of their of projects. promotion sales and relations public of areas the in support customer on-going provide to policy the hold to continued Bank the Furthermore, management. and development project finance, on advice provided desirable to their project revenue. The Bank’s team of professionals processing, credit Our corresponded that schedules repayment and limits credit rapid projects. received residential of clients types for all of services loan developers project residential comprehensive satisfaction forourcustomers. maximum provide to system service customer efficient an developed Bank The auction. for up automobiles 100 over are there time, Each Thailand. of parts other and www.kkasset.com to obtain more information on on information more av obtain to or 0-2680-3420-1 www.kkasset.com Center Call contact to able were Customers buildings. office and buildings commercial land, vacant townhouses, houses, as such investment, some preliminaryfigures. obtain to wanted who customers for payment monthly and amount loan the estimate can Bank the addition, In ailable assets based on type, location, size, or price. price. or size, location, type, on based assets ailable • • • for sale to people seeking a place of residence or residence of place a seeking people to sale for A Corporate R sdnil rjc Loan Project esidential ssets for Sale Sale for ssets The Bank offered a full range full a offered Bank The Loan The Bank had a variety of of variety a had Bank The The Bank offered offered Bank The
etc. Funds, Equities and Funds Income Fixed (LTF), Funds Mutual Long-term (RMF), Funds Mutual Retirement as such KKS, via sold and bought be can funds mutual and and mergers debt restructuring,etc. as arrangement/structuring, such financial matters, acquisitions, financial other on Public initial such advice provides also company the addition, In equities, warrants. of and types offering other Public offering initial as such equity, issuing in financial advisory service which comprises of consultation buy-sell their of orders andportfolioatanytime. status the check also to service investors allows internet Our service. E-Trade KK using internet or hours office during personnel marketing our our via to securities trade can Investors value investments. investors’ real add can which analysis present and advice sound provide to advisors of team experienced personnel inthefollowingareasofservice: proficient highly by services investment and financial comprehensive offers KKS provider. service financial subsidiary of the Bank, has an objective to become a leading Security BrokerageService business groupsisasfollows: are specified in section 1.2. The revenue structure by each structures and shareholdings in its subsidiaries and affiliates 2.2 3. 2. 1. a (KKS), Limited Company Securities Kiatnakin Kiatnakin Bank Public Company Limited’s revenue Revenue Structure uul ud eln Agent Selling Fund Mutual I S vsmn Bnig Service Banking nvestment crte Boeae Agent Brokerage ecurities Many types of of types Many KKS has an an has KKS KKS offered offered KKS
13 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007
Banking Business Baht 5,472 Mill. 77% 2005 Fund Management Baht 1,26 Mill. 18% Baht 1,26 Mill. for Bank of the Year in 2007 ranking 2007 in Year the of Bank for th Banking Business 4 Baht 5,641 Mill. 80% Board of Directors authorized the payment interim dividend of Baht 1 per share to r share based on the financial results from warded for having the Best Board of the year he Bank maintained its “A-” credit rating by Money and Banking Magazine The 1 July to 31 December 2007. When combined with the interim dividend, total dividend for the year is Baht 2.30 per share. from Thai Institute of Directors Association(IOD) on supervision and good governance. T from Thai Rating and InformationLtd. (TRIS)Services which reflected our stable credit position. A for Distinctive Practices 2006/2007 Ranked of ordinary shareholders based on financial results from 1 January to 30 June 2007.authorized dividend in the amount of Baht 1.30 The Board pe * * * * Baht 389 Mill. 5% Baht 389 Mill. Securities Business 2006 Fund Management Baht 1,108 Mill. 15% Banking Business Baht 7,134 Mill. 84% 2007 Baht 343 Mill. 5% Securities Business Fund Management Baht 1,076 Mill. 13% Baht 1,076 Mill. ne of the 62 companies from 402 listed eceived “Excellent” appraisal for Annual eceived Best Shareholder Treatment Awards companies that received a “Very Good” rating Shareholder Meeting Quality Assessment in2007 conducted by the Securities Commission Exchangeand Listed Companies Club. The Bank was 1 of 19 companies that received over 100 points. O Appoint Ms. Nawaaporn Ryangsakul Independent Independent Ryangsakul Nawaaporn Ms. Appoint Committee Audit the of Chairperson and Director as Chairperson R at the Shareholder Awards 2007 sponsoredCeremony by Thailand Securities Depository Company Limited in conjunction with Thai Investors Association, Authorized Companies Club, and Thailand Investor Relations Club. R * * * * 2007 Summary of Significant Changes during
Consisted of 6 Mutual Funds as shown in 1.2 juristic entities in which our Bank holds at least 10% (sequence 5-10) number
Baht 297 Mill. 3% Baht 297 Mill. Securities Business 2.3 *
KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 14 market expansion. The Bank was ranked as number number as ranked of was rate Bank the The than expansion. higher market is which year, previous of the over increase assets 15.7% a total reflecting had million, 88,839 bank, Baht commercial small-scale a 12.4% a and industry the of increase frompreviousyear. assets total of 12.2% represented than trillion, 0.97 lower Baht of assets assets total had of 3%) small-scale (proportion 10 banks remaining commercial The decrease 6.8% year. a and previous industry from the 25.2% of represented assets had total trillion, of 10%) 2.0 than Baht of lower assets but 3% total than (proportion more banks assets of commercial medium-scale The four year. previous from the increase of 6.4% a assets and total industry of 62.6% Baht of represented assets trillion, total 5.0 had 10%) than more is assets of before the four large-scale commercial banks (proportion year the from 3.4% of increase an trillion, 7.93 Baht of ak, f hc 3 were 3 which of banks, Sources :FinancialStatements,TheStockExchangeofThailand 2.4 Loans (net) Total assets Deposits Liabilities Equities Shareholders’ Total assetsBaht0.97trillion Assets and Liabilities Business SituationsandCompetitionsTotal Assets At the end of 2007, Kiatnakin Bank, which is is which Bank, Kiatnakin 2007, of end the At At the end of 2007, there were 18 Thai commercial
10 SmallBanks 3,465,487 4,964,351 3,913,520 4,492,200 Banks Large 472,151
retail banks with total assets assets total with banks retail Medium 1,301,671 2,002,535 1,489,202 1,811,472 Banks 191,063 12.2% Balance sheet
965,429 545,648 575,526 866,422 Banks Small 99,007 Total assetsBaht2.0trillion 63,051 41,354 18,567 70,231 88,839 KTtlLarge Total KK 4 MediumBanks 25.2% purchase loans. hire- auto the to attributed mainly 20%, to 18% from increased figure the loans, consumption personal bank year commercial the of previous expansion the to Due from 26%. of figure decline slight a reflecting loans, sector total of 25% at Manufacturing loans of percentage highest the received increase. 3.1% a of loans represented trillion, Net 0.55 1.3 Baht were decrease. banks Baht of commercial 5.4% small-scale were a loans was banks Net which trillion, banks. commercial commercial medium-scale of highest the is That expansion 10.7%. of increase of an trillion, 3.5 loans reflecting Baht Net were year. banks commercial represented previous large-scale from which increase trillion, 5.5% 5.3 a Baht were banks Total Loans(Net) of total commercialbank’s assets. 1% to equivalent is which size, asset of terms in 13 5,312,806 5,978,248 7,170,095 7,932,316 62.6% 762,120 At the end of 2007, net loans of Thai commercial Thai of loans net 2007, of end the At Banks 10.7 10.1 4.8 6.0 6.4 Medium (11.6) Banks (5.4) (7.7) (6.8) 23.0 Total assetsBaht5trillion Change (%) Banks Small 13.9 12.4 3.1 5.7 0.6 4 LargeBanks (1.8) 28.9 18.4 15.7 KTotal KK 6.6 (Baht Million) 11.6 5.5 0.2 3.0 3.4
15 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 3% 53% 17% 17% 10% (Baht Million) 100.0% 5% 49% 19% 16% 11% 100.0% At the end of 2007 automobile sales volume was In 2007, the Bank expects to witness high At the end of 2007, the total Bank’s shareholders’ Competitive outlook for commercial banks is 17% 44% 19% 42% 27% 110% Change Market Share 07 Market Share 06 Hire-Purchase Business 631.2 thousand vehicles, which reflected a decrease of 7.5% from last year’s sales volume vehicles. Personal automobile ofsales volume was decrease 682 thousand by 11.4% and finished thevehicles. Commercial vehicle yearsales volume declined at by 169.5 thousand 5.9% from previous year and finished at 461.7 thousand vehicles. expansion rate for hire-purchase loans becausecommercial many banks still havebusiness basedstrong on the interestpublicly released bank’s policies; in this returns and riskattractive; and levelthere are incentives from the forreduction thisof minimum businesscapital reserves specified remainsin Basel II Framework. IAS 39 and total shareholders’ representing a 0.6% increase. This was partly attributed equity of Baht in accumulated profits. and rise to better performance 0.10 trillion, equity amounted to Baht 18,567increase. Overall, millionthe Bank’s total or shareholders’ a equity 6.6% the commercial banking sector. represented 2.4% of expected to be veryThailand to external factors to due occurs that slowdown challenging due to economicespecially the sub-prime issuewhich and effectdomestic deposits factorsand need bankingfor loans. regulations, Changing new suchinternational as theaccounting utilizationapplication standardof Basel II IAS39Framework of make lendinganda more burdensome for banks. Additionaldeposits competitionis expected cause will it for because toeffect into come is Agency intensifyInsurance when the Deposit the commercial banks to focus on increasing the number of depositors. Another source of competitionwhich isentered from the loan market, especially by offering personal loans as well as payment services. 9,631 52,095 54,245 29,666 2006 163,259 308,896 74,848 64,684 42,238 20,185 2007 191,025 392,980 Bank Top 5 hire-purchase debtors of commercial At the end of 2007, Thai commercial banks At the end of 2007, total deposits for Thai At the end of 2007, the Bank had a total deposit At the end of 2007, the Bank’s net loans amounted amounted loans net Bank’s the 2007, of end the At Total
TCAP SCB Leasing TISCO KK K Leasing
Sources : Financial Statements, The Stock Exchange of Thailand banks’ outstanding loan amounted million,to Baht representing392,980 a Bank 27% had increase.the highest Thanachartmarket decreaseshare from of53% last49% year. aFor slightKiatnakin Bank, numberthe of hire-purchase loan increased total by number42% ofand loan ranked the of 10%. fourthmarket share of 11% compared to last year’s highest with Shareholders’ Equity had total shareholders’ equity representingof Bahtan 11.6%0.76 increase trillion,from last year. scaleLarge- commercial equitybanks of hadBaht total0.47 increase. trillion shareholders’Medium-scale representing commercial banksshareholders’ a equity had10.1% of totalBaht 0.19 trillion, representing a 23% increase. Small-scale commercial banks had Total Deposits Total commercial banks amounted to Baht 5.98 trillion, increase an of 0.2% from the previous year. Total deposits for large-scale commercial banks were Baht 3.9 trillion, a 4.8% increase. commercialTotal depositsbanks wereof Bahtdecrease.medium-scale 1.5 Totaltrillion, deposits a 11.6%ofbanks smallwere Baht scale0.57 trillion, commercial intensively a banks commercial which 1.8%years the of one was decrease. 2007 competed for deposits. Banks offered high interest rates to attract depositors. of Baht 41,354 million, reflectingThe Bank a was 1.8%able decrease. to expand less by than mobilizingthe industry deposits throughdebentures. BE and issuance of to Baht 63,051 million or a 28.9% increase, higherwhich is than the commercial banking amountindustry. of Total net loans for the banks. of all commercial the total amount Bank represents 1% of
KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 16 3. RiskFactors ik ihrn i ec tascin ln wt overall with along transaction each in inherent risks various by measured is risks Business revenue. their to handle risks. to procedures control and managerial sufficient up set has department and to unit business each verification that sure make and provides review Unit managerial Management supplemental Risk The forth Bank. set the framework by and policy management risk to complying while responsibility of area within respective operations their all risk covers it managing that ensure and to suitably understanding for responsible is all the consolidate risks inordertomanageeffectivelyandsufficiently. and affiliates and and Bank subsidiaries the of its risks overall manage to is Bank the and operatethebusinesstoachieveappropriatereturns. range specified within be to risks various manage to are management risk of goals The policy.Bank’s the with consistent andrisk remains it that ensure to monitoring level Bank’srisk the and controlling policies and such system; management of sufficiency the reviewing policies; management risk determining in significantrole reduce theexistingandexpectedrisks. plans and advocating risk protection measures in order to strategic developing policies, management risk setting for responsible is Unit The Committee. Management Risk the to directly reports which Unit, Management Risk independent an establishing by management risk on emphasis great places continuously and consistently that must be tracked, managed and controlled. The Bank industries in and organizations. These changes create a variety of changes risks various and outlook economic macro as such environment, the and business in changes Banking operations is directly related to dynamic to related directly is operations Banking Each line of business has set aside capital appropriate department internal and unit business Each for regarding policy management risk main The a plays Committee Management Risk The identified andaredescribedasfollows: Bank of Thailand, five major risk classifications have been generating revenue. in policy and strategy future impact which risks business xadd o nld te aks usday Kiatnakin Securities CompanyLimited subsidiary Bank’s the include to expanded established by the Bank of Thailand at 8.5%. The Bank The 8.5%. at Thailand of Bank the by guideline established the than higher was which 16.39%, at ratio capital/assets consolidated a maintained Bank the 2007, December 31 of As institutions. financial all the of average than higher is that ratio capital/assets a sustained from the impact of future income fluctuations. The Bank a high capital/assets ratio in order to protect the business implemented basic level of risk control by 1) Maintaining competencies arespreadout. Banks’ the that so businesses core additional out sought and businesses major its the same expanded has At Bank the time, competitiveness. and proficiency build to order in area specialized in expertise has that Bank will impacttheBank’s revenueandcapital. factors external and internal these end, the In resources. and strategies, competition structure, between organization goals, inconsistency policies, to due be could plans. It the out carrying improperly and plans strategic Strategic Risks • • of Policies Management Risk with conformity In The Bank’s risk management in the past year has year past the in management risk Bank’s The • • • With aforementioned business strategies, the Bank Withthe strategies, business aforementioned the be to is strategy main Bank’s Kiatnakin Strategic risk arises from the process of developing
Strategic Risks Operational Risks Liquidity Risks Market Risks Credit Risks
17 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 74.74 by IAS 39 1,199.30 1,274.04 Allowance for Doubtful A/C’s Allowance for Doubtful A/C’s Managing investments in financial claims is The Bank realizes the fluctuations in business In managing the risk for hire purchase loans, Residential project lending is a business with high At the end of 2007, total principal outstanding 4.48 disperse the location of the projects appropriately and consistently in line with the market. a fluctuatingbusiness in termsof the of revenue, restructuring duration processes The success and depends on collateral the capability value. of and efficiency restructuring processes that repaymentability, collateral, and suits internal and the external customers’ legal processes. performance, including project’s remaining completion; thus, time higher to than normal allowances standard were imposed. loan The Bank closely up followed on management of the procedures. loan In addition, the Bank along allocated higher than with all legal significant changes in automobile the economy, industry legislation and which will affect repayment ability customer as well as loan the Bank’s own policy and business processes. the Bank focused on major factors entire hire that purchase affected loan the portfolio as time, same the At process. approval loan of development well as on the the Bank monitored the quality of loans as well as net benefits received. The Bank clearly segmented business types in order for the business to be highly effective and adaptable. fluctuations depending on the condition of the property market. The residential characterized by having project a high number loan of clients the and top portfolio twenty major is clients represented of total residential project loans. about 50% for residential project loans was Baht 15,184 million of (35.64%). loans classified were million 5,412 Baht which Reserves had been set at a level higher than the required standard as per the table below: A/C’s 1,164.40 1,168.88 Allowance for doubtful 5,412 9,772 15,184 Principal (Baht Million) In managing risks involved in residential project Credit risk is a risk in which partner or contractor At present, the Bank’s loans comprised of 58.6% Hire-purchase loan is a low fluctuation and
Total Classified loans Normal debts
financing, the Banklevel of emphasized capital fund having that standard is sufficient level; much higher making than normal provisions the non-performing for loans higher project including locations than and types of diversifying properties; and selecting projects of good standing current and and future likely market to conditions. Rate succeed varies of according in to return loan risk in order to minimize impact the from changes in real estate market, competitors and consumers. Loan quality to was the size verified of loans according in each group, below and loans that are standards were Moreover, the Bank followed improved its up residential lending policy project more for which closely. took believe that it will improve the quality of new loans and effect in 2007. We Credit Risks or debtor is unable to adhere to the terms and agreements agreements and terms the to adhere to unable is debtor or in the contracts. If the credit risk collateral, it will arises cause the Bank to without set higher provision any for doubtful accounts. hire purchase loans, 21.1% residential project loans, and 10.7% commercial loans (of which 10% are investments in financial claims). Doubtful accounts Baht 8,202 million or 12.45% of total loans. amounted to high growth business in which the service and interest rates are highly competitive; automatically distributed. therefore, Major the risks will risk arise is from also established proportions for various types of in loans order to ensure that there 2) Reducing is major risk appropriate areas balance. and only leave the that areas can be mitigated by the Bank’s own expertise. 3) Controlling and diversifying the Bank’s main businesses to be at appropriate level other major along business with areas searching as specified for Risk section. in the Credit
KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 18 securities for sales and has specified a threshold to a threshold specified for has stop loss. rate and market sales daily for Bank on securities The based values trading. asset for reports securities has in and investment rate exchange no from impact or transactions of 145% or billion, book value. 13.4 Baht at the was by value where appraisal sale, for assets foreclosed Baht of has billion Bank 9.2 the 2007, December 31 of holding As specified period. the for model reduction value asset progressive the to adhering strictly of policy were accounting sales the maintained still past Bank The value. appraisal when to close even performance and status overall to Bank’s the affects compared price market estate real assets, when Bank’s sale for assets foreclosed net of 1.31% interest incomein2007. or million, 60.55 Baht only by reduced be will income interest net Bank’s the 1%, by rise rate interest the if e.g. risk, market low achieve to able was Bank the result, a As scenarios range. acceptable an within be to simulated various on based income interest net on impact the measure to instruments monitoring a of liabilities to be in line with the assets. ALCO also uses and minimize the impact by adjusting the terms and and types Assets the interest Liabilities Management Committee assigned (ALCO) to monitor has net therefore, impact and directly income, which variations, rate of the above–mentionedriskfactorstoaverylowlevel. effect the reducing by operate to policy a has the Bank Nevertheless, performance. and status Bank’s the on effect direct have that factors risk market are rates Bank’s financialperformance. the on instruments effect an has debt that market of capital and money price in and rates exchange rates, Market Risks provisions according totheguidelinesinceendof2006. adequate aside set has Bank the standards, 39accounting IAS the use to institutions financial all that conditions affect thebusiness. market the in to sufficient variations are the they support that ensure to sale for assets of devaluation and depreciations for allowances standard At present, the Bank has no significant related significant no has Bank the present, At of proportion high a has Bank the Because interest of importance the recognizes Bank The exchange and assets of value market rates, Interest for instruction Thailand’s of Bank the per As Market risk arises from the fluctuation in interest in fluctuation the from arises risk Market policies: following the of implantation the through basis regular a on liquidity Bank’s the manage and maintain strictly to the assigning by (ALCO) Committee Management Liabilities and Assets liquidity of level high maintaining and instruments financial cause allbankstohavehigherliquidityrisk. future the in impact will changes greatly Agency Insurance future Deposit to addition, regarding In legislations ability flow. the and cash forecast fluctuations limited high therefore, by unpredictability; characterized businesses, are management which asset asresidential and such financing ofindustries, project in clusters are flow conditions. market with the accordance use in benefits to generate able to capital be must Bank the time, same the At of amount sufficient future. and current the in creditors the all and pay to capital appropriate have to is risk liquidity ofmanaging purpose The duration. specified the within obligations the to according pay to able be Liquidity Risks and increasing efficiency of internal audit process by process audit internal of procedures, efficiency increasing operating and operational of reducing efficiency in improving goals losses, its achieve Bank help will the management risk operational effective that can believes Bank the which thus, Bank; the operation, to damages in any result in risks operational have breakdown operation due toexternalincidents. or executives; or employees by made mistakes processes; operating internal and system Operational Risks o in importance great places Bank the Thus, cash and portfolios loan our bank, small a Being not may Bank the which in risk is risk Liquidity n prtn a omril ak i i psil to possible is it bank, commercial a operating In the in flaws from occur may risk Operational o o o o o
Continuously liquidity crisis. large Have for even dates, customers. due the disburse and depositors major from base deposit the Expand Disburse ofliabilitytypes Maintain highproportionoflong-termliability the termsofassets all of Adjust date due average liabilities asof31December2007at306days. the setting while iudt cnigny ln o handle to plan contingency liquidity the terms of liabilities to be in line with line in be to liabilities of terms the anan ih ee o liquidity of level high maintain
19 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007
the status to the management team and developing risk management plans announcement to adopt the Deposit slowing down of the real estate sector. The highly competitive hire-purchase loan The The Bank submitted a request to use the Basel II Basel the use to request a submitted Bank The The Sub-Prime Mortgage Loan issue in U.S.A. The • The Bank’s minimum capital requirement as per • • • The Bank has been proceeding cautiously and market may have an effect generate on profit the and Bank’s the ability break-even point to purchase loan. of the hire- to minimize any impact that regularly may reports occur. The Bank and Risk Management Committee. Preparation for Basel II Preparation (SA) Approach Standardized the utilizing by Framework to compute the minimum capital requirement for credit operational for (BIA) Approach Indicator Basic and risks risks. The computation was carried out at 31 December 2006. the end of Basel II Framework was at 19.36%, which is more than 8.5% minimum guideline specifiedThailand. by the Bank of Factors Important Risk may impact Thailand’s economy, both the inflow and outflow of money as well as interest rates. Higher construction cost and declining expenditure in may have consumer an effect on business operation and the Bank’s clients in as generating liquidity profit, of as the Bank’s well loan quality. situation will also impact the real estate customers. Moreover, this Protection Act may impact the movement of deposits in the monetary system nationwide including changes banks. in deposit customer base of all the commercial continuously monitoring future risk exposure including issuing policies During the past year, the Bank has arranged assessment risk performed has Bank the addition, In The Bank is focusing on developing systems and
training for personnel to in increase managing their operational knowledge operational risk management risks tools (e.g. recording actual and applied operational various losses in Loss Data, Risk & Control Assessment Self- and Key Risk Indicators) areas to throughout all the business Bank. The expand plan the is use to of operational officially risk management to tools cover all of quarter of the 2008 so Bank’s that the subsidiaries Bank can fully by manage overall operational risks. its the first and evaluation for all new products, financial services, and processes to ensure there are appropriate risk level management of prior to offering new service customers. to our procedures to continually manage risks to ensure that in an emergency the Bank can still provide core business services or can resume normal appropriate operations time. within The Bank an will test risk and management review the plan regularly in risks in accordance with the policies Bank’s and Bank of order to manage Thailand’ guidelines, which includes supporting Basel II Framework in maintaining capital. minimum As of standard 31 December of 2007, the new Bank used framework the and computed the requirement using the minimum Basic Indicator Approach capital (BIA) and the result was approximately Baht 678.9 million. assessing the impact for each operational risk. Managing operational risks is essential for the Bank create in order more to value for our advantage. our competitive shareholders and enhance
KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 20 and Marketing Deposit Nomination andRemuneration Risk ManagementCommittee Human ResourcesCommittee 4. ShareholdingandManagementStructure Development Committee Management Committee Investment Committee Assets andLiabilities Committee Risk Management Project Lending Residential Kiatnakin BankPublicCompanyLimited General Lending Organization Chart Consumer Lending Board ofDirectors Executive Board President Operations Finance and Budgeting Human Resources Management of theDirectors Investment Committee Assets ManagementSub-Committee Debt RestructuringSub-Committee Audit Committee Office Personal LoanSub-Committee Internal Audit Information Technology Debt Restructuring
21 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 7.97 5.74 4.99 4.94 4.20 4.16 4.08 3.52 3.28 12.47 Percentage N.A. N.A. N.A. N.A. N.A. N.A. Shareholders
65,034,112 41,583,089 29,934,911 26,025,000 25,747,400 21,890,200 21,707,820 21,325,118 18,339,070 17,100,000 Number of shares Number of Fl., Floor, Floor, th th th
Floor, th Address Floor, Ratchada Pisek Road, Klongtoey, Ratchada Pisek Road, Klongtoey, Floor, th Name Custody and Clearing Services Dept. 14B 100 Sathornnakorn Tower, Custody and Clearing Services Dept. 14B 100 Sathornnakorn Tower, 968 HSBC Building, 5 North Sathorn Road, Bangrak, Bangkok 10500 Standard Chartered Bank, North Sathorn Road, Bangrak, Bangkok 10500 Standard Chartered Bank, North Sathorn Road, Bangrak, Bangkok 10500 Custody and Clearing Services Dept. Bangkok 10110 Standard Chartered Bank, Custody and Clearing Services Dept. 14B 100 Sathornnakorn Tower, Rama 4 Road, Bangrak, Bangkok 1050 7 Ratchadapisek Road, Klongtoey, Bangkok 10110 Ratchadapisek Road, Klongtoey, 62 The Stock Exchange of Thailand Building, 62 The Stock Exchange of Thailand Building,
Name The Bank does not have any major shareholder who has significant influence on management policy and Trust Company* and Trust International Plc. Norbax Inc., 18* State Street Bank Morgan Stanley & Co. Chase Nominees Limited 30* The Stock Exchange Company Limited of Thailand Thai NVDR
Exchange of Thailand The Stock Ms. Panida Thepkanchana* Ms. Thitinan Wattanavekin* Limited Thai NVDR Company 42 Chase Nominees Limited 30 Chase Nominees Limited Norbax Inc., 18 Wannamethee* Ms. Vansamorn for London Company, State Street Bank and Trust Morgan Stanley & Co. International Plc.
There is no one in the Wattanavekin’s family or in the Bank’s subsidiary, nominee in the list of investors of the Bank. along a shareholder’s with stakeholders in the capacity of
4. 5. 6. 3.
1.
2.
* operations. or the Bank’s Juristic Persons Source: Top 20 Major Shareholders Report, Thailand Securities Depository Company Limited. 20 Major Shareholders Report, Thailand Securities Depository Source: Top 258 * including related shareholders as per Section 4.1 List of 10 Largest Shareholders (as of August 27, 2007) August (as of of 10 Largest Shareholders 4.1 List KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 22 authority level of executives starting with the Head of of Head the with starting executives of level authority and operationalrisks. risks liquidity risks, market risks, strategic risks, credit namely risks, of types major of management on measures to ensure that they set up policies, procedures and control Directors. of Board the for information and reports sufficient are and toraiseawarenesspreventconflictsofinterest. stakeholders; all towards responsibilities as well as ethics business of level high and fair to a to maintain aims follow; consistently to organization the Supervision for guidelines staff. establish and directors ethics Bank’s professional of to related matters in governance approved plansefficientlyandeffectively. the to according Bank the manage to Board Executive the monitor and Supervise Committee. Executive the by recommended plans strategic approve and Review Bank. as follows: described are and set were Board the of responsibilities and authorities The interest. of conflicts to related issues returns on investment by having integrity and preventing good giving stability, achieve to Bank the manage to is shareholders, the Board’s roles, duties and responsibilities and NominationRemunerationCommittee. Committee, Audit Executive Directors, of Board, Board follows: Risk as Management panels major five Committee 4.2
Management ❑ The Bank’s management structure is made up of of up made is structure management Bank’s The 1) Managementstructure * * * * *
Have authorities intheBank Ms. Sineenath Mr. Tawatchai Mr. Supol Mr. Pracha Mr. Suraphol Mr. Pravit Mr. Tarnin Mr. Chet Mr. Manop Mr. Pichai Ms. Nawaaporn • • • • • Directors of Board
Consider the appointment and set the the set and appointment the Consider Supervise the Risk Management Committee Management Risk the Supervise there that ensure and audits internal up Set corporate good ensure to regulations up Set the of goals strategic and policies key Set Tejagupta Sudtikitpisan Wattanavekin Chumnarnkitkosol Kulsiri Varutbangkul Chirasoontorn Pattrakornkul
Bongsadadt Dachanapirom Ryanskul As a representative of of representative a As
Secretary Executive Director, President Executive Director, ChairmanoftheExecutiveBoard Executive Director Non-Executive Director Non-Executive Director Independent Director Independent Director and RemunerationCommittee Independent Director/ChairpersonoftheNomination Independent Director/ChairpersonoftheAuditCommittee Independent Director/Chairperson Management Risk the Committee andtheExecutiveCommittee. Committee, and Nomination Remuneration the Committee, Audit the include committees These policies. set to according Bank the of managing in assist to them for order in major committees Four the as well as upwards, and Unit Business and Memorandum of Association of the Bank, Bank, the of Shareholders’ Annual Meeting. the in passed resolutions Association the of including Memorandum and Association of Articles regulations, and laws governing following dutiesbytheBoardofDirectors: meeting resolutions must be based on the majority majority the on based votes fromallattendingdirectors. be must resolutions meeting the and quorum a form to present directors of number total of half least at have must meeting Each months. every 3 once least at meet must Directors of Board The expense. Bank’s the on operations, banking to related consultants external from opinion professional further the of opinion the the as well Executive Committee. through as opinion Letter Management auditor’s the Meeting. Acknowledge Shareholders’ the at approval seek to order in Committee Audit the and Committee Executive the have been examined by the auditor and reviewed by both sufficient financialreports. Their secretary. a names areasfollows: and directors non-executive are 2 executives, are 3 directors, independent are which of 5
❑ • In • The Board The • Th Audit Committee
addition, the Board of Directors may seek seek may Directors of Board the addition, Conduct business in accordance with the the with accordance in business Conduct Ensure Endorse the annual financial reports that that reports financial annual the Endorse e Audit Committee has been assigned the the assigned been has Committee Audit e that the Bank produces accurate and accurate produces Bank the that of Directors consists of 10 directors, 10 of consists Directors of
23 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 and manage the Bank to be within be to Bank the manage and and approve credit lines, authorize Audit Committee consists of 3 members members 3 of consists Committee Audit onduct as well as supervise the management management the supervise as well as onduct he Audit Committee must coordinate fficiently set work procedures, rules, Supervise C Carry out other duties assigned Carry out other duties Each meeting held by the Audit Committee The Consider E T e Executive Committee was appointed by The Audit Committee is required to meet
• • • • • • • Executive Committee Th
❑
Independent Director / Chairperson Member Member Secretary team and staff members to ensure compliance with the regulations related to code the of Bank’s ethics and code of conduct. sales of foreclosed assets, and set pricesassets of foreclosedto be auctionedDepartment and fromraise objectionsthe in Legalaccordancethe set limits. withExecution the framework set by the Risk Management Committee, which includes: strategic risks, credit risks, market risks, legal and risks reputation risks, operational risks, liquidity risks. with the Risk Management Committee to ensure that management adhere to the Bank’s Risk ManagementPolicy approved by the Board of Directors and endorsed by the Audit Committee. must have at least half of its members present to form a quorum and the meeting’s resolutions must be based on the majority votes from the members present meeting.at each The Chairperson and members of the Audit Committee are all independent directors. and a secretary as follows: the Board of Directors to set strategies, develop business plans and efficiently and effectively supervise the operational processes and internal control system. at least 4 times per Committeeyear or more mayif necessary.invite any Theconnected the person(s)management to join the meetingadditionalteam to giveor information related audited. to the matter being Dachanapirom Bongsadadt Pattrakornkul Sukhanaphorn , select, rotate, transfer or terminate or transfer rotate, select, , , select and recommend an auditor a report of the Audit Committee by that the Bank conducted its business that the Bank conducted its business on the Audit Committee’s operations Committee’s Audit the on Audit Committee has the authority to strategies, business plans, annual budget the organization structure for all business all for structure organization the eview all disclosures of the Bank’s information information Bank’s the of disclosures all eview et limits on credit line approval, investments, investments, approval, line credit on limits et Mr. Pichai Mr. Mr. Manop Mr. Chet Mr. Kriengsak Mr. S Set Set Consider The Report Present Consider R Ensure that the Bank has appropriate and Ensure • • • • • • • • • • •
purchasing and expenses to maximize the Bank’s benefits Bank’s the maximize to expenses and purchasing while complying with the respective laws. units under its responsibility. Appoint and set limits for the the for limits set and Appoint responsibility. its under units management Bank’s the for responsibilities and authority officers from the position of deputy managing director downwards. management team accordingly. DirectorsThus, decided theto set Boardthe following of authorities andresponsibilities for the Executive Committee: to be in line with the policy and goals approved by the Board of Directors and complyrules and regulations. with the authority’s inspect or to question any relevant personnel regarding any related issues to the Bank. The Audit Committee is the with assist to specialists in bring or hire to authorized auditing process, as they deemed appropriate. disclosing the information in the Annual Report, duly Committee. signed off by the Chairperson of the Audit of Directors. and make recommendations to the Board internal audit officers. where connected transactions have taken place or where or place taken have transactions connected where there may be conflicts of interest in order to ensure their accuracy and completeness. in accordance with the securities Exchangelaws, regulations the and Stockthe relevant of laws related to business. the Bank’s remuneration. auditor’s for the Bank and the efficient internal control and internal audit system in place. KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 24 an acceptablelevel. within be to risks control and the monitor assess, enables to Bank which policies, management risk Bank’s risks, includinglegalrisksandreputationrisks. strategic risks, credit risks, market risks, liquidity as risks, operational such risk of types important covers which be to incurred expense with operations business Bank’s to related consultant external from opinion professional operational reportsfortheBoardofDirectors. approve and specialized workonbehalfoftheBoardDirectors. consider scrutinize, to sub-committees practicality of existing risk policy management and and management policy systems. risk existing of practicality following authoritiesandresponsibilities:
❑
Risk ManagementCommittee • • Th • Th • • R S P Appoint one or more committees or or committees more or one Appoint S e Executive Committee may seek further further seek may Committee Executive e e Risk Management Committee has the the has Committee Management Risk e Mr. Siwaphong Mr. Kriengsak Ms. Sineenath Mr. Sarawut Ms. Thitinan Mr. Pracha Mr. Patom Mr. Chavalit Mr. Tawatchai Mr. Supol Ms. Porntip Ms. Sineenath Mr. Sarawut Ms. Thitinan Mr. Patom Mr. Chavalit Mr. Tawatchai Mr. Supol et strategies that are consistent with the the with consistent are that strategies et et the overall risk management policy policy management risk overall the et repare quarterly management and and management quarterly repare eview the adequacy, effectiveness and and effectiveness adequacy, the eview Plangthrakul Sukhanaphorn Tejagupta Charuchinda Wattanavekin Chumnarnkitkosol Amorndechawat Chindavanig Sudtikitpisan Wattanavekin Chuprakhun Tejagupta Charuchinda Wattanavekin Amorndechawat Chindavanig Sudtikitpisan Wattanavekin meeting resolutions must be based on majority votes votes majority from thememberspresentateachmeeting. on based be must resolutions the meeting and quorum a form to present members its of half least at have must meeting Each month. a once least at meet must Committee Executive The Bank. the by paid inform theAuditCommitteeofstatus. the risk management policies and principles. Periodically with line in remain and corrections and improvements t and asecretaryasfollows: 9 membersandasecretaryasfollows: from thememberspresentateachmeeting. meeting’s resolutions must be based on the majority votes least half of its members present to form a quorum and the at least once every 3 months. Each meeting must have at o the Board of Directors in order to make further further make to order in Directors of Board the o
Th • The The Risk The Secretary Member Member Member Member Member Member Member Member Chairman Secretary Member Member Member Member Member Member Chairman Regularly reporttheresultsofoperations e Executive Committee consists of 7 members Risk Management Committee must meet must Committee Management Management Committee consists of consists Committee Management
25 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 s Remuneration compensation while the director is a allowance paid to the chairperson and the guidelines on performance appraisal isclose the remuneration policy and et the remuneration policy and other ropose and search for successor for the D P Set S he candidates who receive the most votes, Financial remuneration Other remunerations (None) Independent Director / Chairperson Member Member Secretary T • • Monthly Meeting Executive’ • • • •
In setting the director’s remuneration, 3 main – – 3) The Nomination and Remuneration Committee
(3) portions are considered as follows: chairperson and directors on the Board of Directors. directors on attendance basis to each meeting on various boards. in descending order, are appointed as Directors. Total number of appointment may be based In ontime. the at desired thenumber the or Directors existingof number appointment, available final the for score equal an of case the chairman cast the deciding vote. for directors and senior executives from the President level upwards in order to appropriately adjust the annual remuneration package. The performance appraisal takes and risks associated responsibilities, the consideration into shareholders’ values. ability to increase long-term available options and comments from the Nomination Committee in the Annual Report. and Remuneration Directors. President and present it to the Board of must meet at least twice Each a meeting year. must have and quorum a form to present members its of half least at the meeting’s resolutions must be based on the majority votes from the members present at each meeting. The Nomination and Remuneration Committee consists of 3 members, of which the Chairperson and 2 members is not, as follows: are independent directors and another benefits for directors and senior executiveslevel upwards. President from the are to be divided up. Bongsadadt Pattrakornkul Kulsiri Sithasrivong and Remuneration Committee Committee Remuneration and executives from the President level President the from executives and propose candidates with suitable that the number of Bank directors is the policy, the principles policy, and procedures for receive authorization and responsibilities directly from the Board of Directors upwards. Member for the committees which would Senior Directors isclose the recruiting policy as well as Mr. Manop Mr. Mr. Chet Mr. Suraphol Mr. Ms. Nujaree
The process of selecting directors begins Ensure D Screen Set ach shareholder must exercise all votes o o o ach shareholder’s total number of votes is E E • • • • • Director and Executive Recruitment Nomination and Remuneration Committee and Remuneration Nomination Nomination The (2) 2) following the by governed be must procedures This (1)
❑
granted under rule number 1; he/she can select one or more directors, but cannot determine how the votes based on one vote per share. with the nomination of the namescandidates and by backgroundshareholders, directorsexecutives.of and senior The NominationCommittee evaluate andeach candidate’sRemunerationbased qualificationson good governance and appropriatenecessity, remuneration,determine and then make a at proposal the Board of DirectorsDirectors makes meeting.recommendations andThe approval at the General Shareholders Meeting. obtainsBoard final of regulations: rules and Bank’s detailed procedures in the Annual Report. qualifications for the following positions in the Bank: qualifications for the sufficient and appropriate for the Bank, paying special of Board the of members of qualification the to attention Directors who must have diversified knowledge, ability and experience. recruiting and selecting qualified candidates for directors and senior executives from the President level upwards. The selected candidates will be proposed to the Board of Directors for approval. has the following authorities and responsibilities: and responsibilities: authorities has the following KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 26 Remarks: Bank did not offer stock options or opportunity to buy to opportunity or options stock offer not The did Bank Million. 55.5 Baht to amounted fund, and provident bonus salaries, included which executives, senior the at granted and sought shareholders’ meetings. duly been has approval Shareholders’ qualities. and desirable with attract directors to retain high sufficiently is remuneration The industry.the with line in is that remuneration director’s bonus ofalltheemployees. The average the to equivalent is director. director a for bonus a average as service of length and performance Number ofOrdinarySharesheldbyExecutivesin2007 (4) (1) Remuneration NominatedasChairpersonofAuditCommitteesinceJune1,2007 NominatedasChairpersonsinceJune1,2007 10 6 1 7 4 9 8 5 3 2 Ms.Thitinan Wattanavekin 6 8 7 Mr. PatomAmorndechawat 5 Mr. ChavalitChindavanig 4 Mr. PrachaChumnarnkitkosol 3 Mr. Tawatchai Sudtikitpisan 2 Mr. SupolWattanavekin 1
n 07 ttl eueain o te aks 8 Bank’s the for remuneration total 2007, In The Bank set a clear and transparent policy for the –
Mr. PichaiDachanapirom Ms. NawaapornRyanskul Mr. PrachaChumnarnkitkosol Mr Mr. Tarnin Chirasoonton Mr. ChetPattrakornkul Mr Mr Mr Mr Ms. SineenathTejagupta Mr. Sarawut Charuchinda Annual bonus based on the Bank’s overall overall Bank’s the on based bonus Annual . Tawatchai Sudtikitpisan . SurapholKulsiri . PravitVarutbangkul . ManopBongsadadt . SupolWattanavekin Name-Surname
Name (3) (5) (2) (1) (4) Director Director Director Committee of the Nomination and Remuneration Chairperson / Director Independent Independent Director Director of AuditCommittee Independent Director/Chairperson Independent Director Director Independent Director/Chairperson
Senior ExecutiveVice President-Director Office Position
Head ofDepositandMarketing Head ofFinanceandBudgeting (2) (5) Head ofDebtRestructuring Head ofRiskManagement ReceivedadditionalremunerationfromsubsidiarycompanyBaht300,000in2007 NominatedasDirectorsinceJune1,2007 Head ofOperations
Chairman President Position Directors Board of 3,780,000 and Remuneration Committee, will be increased as as increased be appropriate. Detailsareasfollows: will Committee, Remuneration and Nomination and Committee, Audit Board, Executive the of result the assessment tothePresident. communicated Directors, of Board the in seniority high the is has and who of director independent an Committee, Chairman Remuneration The and the Nomination determining remuneration. in basis a President’s as it use and year every president Bank’s the of assessment annual an conduct or sellBank’s assetstotheseniorexecutives. 360,000 360,000 360,000 360,000 360,000 360,000 360,000 360,000 435,000 465,000 Meeting (baht/year)
The remuneration of other Board members on on members Board other of remuneration The Committee Remuneration and Nomination The Committee Audit 247,500 180,000 135,000 135,000 757,500 60,000 - - - - -
(3) Remuneration NominatedasAuditCommitteesinceApril26,2007 Nomination Committee ubro hrsChangesin2007 Number ofShares and 59981increase1,237,889 25,979,861 142,500 8,668,808 30,000 82,500 30,000
0 0 0 0 ------
Bonus Paid in 2008 2,145,000
165,000 165,000 165,000 178,750 278,438 285,313 192,500 240,625 199,375 275,000
------Total 6,825,000
525,000 525,000 525,000 885,938 907,813 568,750 612,500 765,625 634,375 875,000
27 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 roviding convenience for shareholders to or the General Shareholders Meeting, etting etting appropriate timeline and encourage e Bank has a policy for the Bank’s Chairperson, Chairperson, Bank’s the for policy a has Bank e H F S P n appropriate amount of time is scheduled - Th - - A aving all Directors attend the General
and specified in the meeting agenda for questions and answers to provide clarity for the shareholders. Shareholders Meeting Audit Committee Chairperson,Remuneration CommitteeNomination Chairperson,Committee, and President,Executive chairpersons of various sub- fully exercise their rights the Bank sets a convenient date, time and location for the shareholders. If any shareholdersthe meeting,cannot he/she attendcan authorize a proxyask to questions,attend, and vote on his/herpropose a behalfnew agenda asand nominatewell a as director before the Bank sends out the meetingStock Exchange of invitationThailand and share the information via The (www.kiatnakin.co.th) website on the Bank’s agenda items were posted in advance through the Bank’s website (www.kiatnakin.co.th) at least 30 to days the meeting prior date. Meeting documents will be to sent the shareholders 14 meeting date. The working meeting invitation days contained a list prior of all the members to of the Board of Directors, the both new and re-elected directors, and their profile; the auditor’s name, profile and remuneration; policy, explanation dividend and payment the agenda amount together paid; with meeting and meeting the Board objectives, of Directors’ rationale opinion item. for Prior to each the agenda meeting date, the meeting secretary consolidated all the questions the shareholders sent to (www. website Bank’s the through Directors of Board the kiatnakin.co.th). Moreover, the Bank meeting minutes recorded as well the as made the video meeting recording in of VCD format. The Board also provided of previous discussion for Directors each agenda item, including questions, answers, discussion results and guideline and information on how voting shareholders can cast their votes and order provide shareholders with how complete and sufficient votes are counted information in to arrive at minutes their of the 2007 voting meeting was posted on decision. the Bank’s The website (www.kiatnakin.co.th) 14 days after the meet- ing. shareholders to voice their opinion sufficient information for share- hareholders: hareholders: Equal Rights of Share- S The Bank a applies good corporate Good Corporate Governance Policy The Board Bank’s of Directors emphasizes Applying Good Corporate Governance Bank’s Board of Directors placed a great deal deal great a placed Directors of Board Bank’s The Bank’s policy stipulates that General Auditor’s Remuneration Auditor’s - Providing 5.2.1) 5.1) 5.2) The Bank incurred Baht 2,101,816 in external Good Corporate Governance The
4) 5)
holders holders in advance Shareholders Meeting must be held once within a four year months and from the date year of end. the In 2007, accounting the General Shareholders Meeting will hold on 18 April 2008. Prior to the meeting, letters of invitation and supporting information for various governance toward our shar holders, investors, holders 2007 in stake- and the throughout parties other related ways. following of importance on having good corporate policy issued regulators. by In the 2007, Bank’s the Bank governance governance corporate good of principles 5 using operated established by the Stock follows: Exchange of Thailand as enhance to order in governance corporate good having on raise the transparency, ability to conduct businesses, and increase confidence of shareholders, investors, and all related parties. The Board of Directors a hascorporate governanceapproved policy in writing at its 2/2549 meeting. The content includes details regarding equal rights of shareholders and all stakeholders;responsibilities structure, and independenceDirectors; informationof the disclosureBoard risk of and controltransparency; and management;All andrelevant detailsbusiness are posted ethics.on the Bank’s (www.kiatnakin.co.th)website along with seminars conducted to circulate informationexecutives. to employees and Bank’s auditor’s auditor’s fee for auditing its financial statements, Baht 1,557,648 for the consolidated financialBaht 22,540statements, for other Expenses forand Baht auditing2,999,900 all subsidiaries’An additional financial amountstatements.paid of for Baht training 13,500 by the Bank of Thailand. audit procedure required hasand beenBaht 290,000 for special KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 28 of Thailand and the Bank’s website ( www. www. ( website Bank’s the and kiatnakin.co.th). Exchange Stock Thailand The of through naminate and advance in in Meeting agenda director the Shareholders propose General to the Shareholders allowed has and Bank Minority the fair a 2007, In receive treatment. will equitable Shareholders aspects. all in can be either owned by one shareholder or combined shareholders. combined or shareholder one by owned either be can which shares) thousand hundred (two shares 200,000 of the agendaordirectornomination. for at least 1 year leading up to the date of the proposal of must obtainapprovalfromtheshareholdersannually. Bank the Bank the of which in directors, of policy remuneration regarding and guidelines the deciding and considering in part take also can through Shareholders voting. director each of selection the in part take to or nominate director for the General Shareholders Shareholders General the Meeting andmustpossessthefollowingqualifications: for director nominate or to prior months the meetingdate.Thecriteriaareasfollows 3 Directors of in Board the propose to to advance shareholders allows which criteria the Shareholders General the forth set in has director,Bank a the nominate and Meeting agenda the propose from MinorityShareholders the to access Bank’s informationanytime. continuous have can shareholders that (www.kiatnakin.co.th) website activities Bank’s the important through other or benefits, Bank’s performance, the revealing by shareholders the of rights the above mentioned as attended theMeeting. everyone 2007, In shareholders answer questions. and information provide supplemental to order in time General every the Meeting attend Shareholders to auditors the and committees
The shareholders who wish to propose the agenda the propose to wish who shareholders The Qualifications ofshareholders ❑ riteria for Evaluating Proposed Agenda Item ❑
Fu - (1 5.2.2) Fu The Bank The Be the Bank shareholders holding a minimum a holding shareholders Bank the Be Own the shares as stipulated above continuously C ) In allowing Minority Shareholders to to Shareholders Minority allowing In ) rthermore, the Bank allowed shareholders shareholders allowed Bank the rthermore, rthermore, the Bank attempts to enhance enhance to attempts Bank the rthermore, Rights oftheShareholders emphasizes the rights of shareholders shareholders of rights the emphasizes
so so so thattheBankreceivesitbeforedeadline. Bank the by forth set as evidence appropriate with along filling by Annual documents the send and Meeting” Shareholders General 2008 the for Meeting Form Proposal “Agenda the out Shareholders General the for or Thailand of Thailand SecuritiesDepositoryCo.,Ltd. Exchange Stock The other or from company evidence securities the of letter certified as should beaddedtothemeetingagenda. whether the proposed agenda item from the shareholders meeting, the Bank use the following criteria in evaluating for theShareholdersMeeting - agenda the propose can shareholders Qualified (2) ProposaloftheMeetingAgenda ❑
Criteria b) a) In h) g) f) e) d) c) Able to show proof of share ownership, such such ownership, share of proof show to Able order to ensure an effective ordinary shareholders T incident. the of shareholders nature suspicious the highlighted have the and operations banking T the Bank’s operations. has evaluated and agreed that it is beneficial to Directors of Board the and before in engaged The of Directorstoaddtheagenda. The the specifiedduration. that is complete, sufficient, correct and within provided information and supporting documents T General ShareholdersMeeting the for agenda the of proposal the regarding according tothecriteriasetforthbyBank acted has shareholder the and shareholders T and thepublic. The governance oftheBank. the shareholders’ resolution and good corporate governing agencies, the Articles of other Association, or agencies government of regulations T Bank. he proposal has been proposed by qulified qulified by proposed been has proposal he he proposal complies with the law, rules, rules, law, the with complies proposal he he proposal is within the control of the the of control the within is proposal he he shareholders who made the proposal proposal the made who shareholders he he proposal is not related to normal normal to related not is proposal he proposal is deemed necessary by the Board proposal is an activity the Bank has never proposal is beneficial to the shareholders the to beneficial is proposal for Evaluating Proposed Agenda Item Agenda Proposed Evaluating for
29 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 Rights for Stakeholders Rights for The Bank places great emphasis on all
5.2.3) - Customers The Bank believes our customers are the key Moreover, the Bank has set up a way to carefully - Employees The Bank considers our personnel to be our most our stakeholders by putting in place a policy to take care of the various factors that directly impact operations. These the policies aim Bank’s to increase stakeholder’s confidence that the Bankenvironment factors hasto ensure takenlong whether term of Regardless development stakeholders. into the for protection and account they are internal stakeholders, such as employees executivesand of the Bank and its subsidiary, stakeholders.or externalAll transactions that occur between the Bank and other individuals and related businesses clear,are fair, transparent and auditable.Bank publishesMoreover, the detailsthe of such transactions in Notesthe to the Financialas well Statementsas in the Annualevery thatReport. quarter The strongBank realizes stakeholders’the Bank competitiveness, supportto whichlong canultimatelyterm enhancesuccess.leadsto protectThe thoseBank whohas reported conducted mechanismsrelated theparty transactionswrong following the thathas Bank The doingBank. the was to damage cause to certain or guidelines for each group of stakeholders: supporters that enable the Bank to achieve goals; ourtherefore, the Bank main is determined to deliver high have employees our that sure making by service of quality business as well as in-depth knowledge on our customer’s continuously building new and innovative products and services for our customers. For these reasons, the Bank is obligated to continually develop our work branch network and new systems,technology in order to provide prompt, accurate and superior services.service improvements, To the facilitate Bank has provided a means to receive customer feedback from our website (www. kiatnakin.co.th). Alternatively, customers can send in Audit Office. information to the Bank’s protect information of any fraud transactions that may cause damage to the Bank. or non-transparent personnel our of efficiency the therefore, assets; important order in enhanced continuously are system management to maintain and develop quality personnel and achieve the Bank’s main goals. We achieved sure that thiswork environment is by favorable for makingconducting The proposal is something that the Bank has decision on. or made prior never considered i) The Board of Directors determines the suitability Furthermore, a shareholder that is an executive is - Policies and Procedures for Monitoring To prevent the usage of insider information The Internal Audit Office reviewed the
of the agenda proposedmust possessby the thequalifications shareholders,outlined in criteria theunless the above Board who says otherwise. The resolution passed by the Board of Directors shall be deemed final. In the casecollectively be wherecan or issue the same the agenda regarding isshareholders proposed by several considered, the proposal may be consolidated into one agenda item by the Board of Directors. The proposal(s) that are approved by the Board along with the shareholder the Board’s in agenda the in included be will opinion meeting invitation. Proposal(s) that areby thedisapproved Board, the Bank will immediatelyshareholder(s) inform theafter the Board and ofprior to Directorsthe General Shareholders Meeting via meetingthe Bank’s website (www.kiatnakin.co.th) other appropriate channel. not allowed to add meeting agenda. The meeting will adhere only to the agenda that was distributed shareholders.to the For shareholders that cannot attend the meeting, the Bank directorsrecommends as proxy. theThe independentBank of still voting promotes slips the for use importantrelated transactions and purchasing and agendaselling of assets items, such as auditable. in order to create transparency and to be Executives on Usage of Internal Information that has not yet been disclosed to general Bank public,defines that its thedirectors and management prepare holding report of the Bank shares, spouses inclusiveand minors of and theirtheir relevant persons, within 3 working days as from the date of trading transaction to the Stock Exchange of honesty, Thailand Regarding Directors. and the of within office Bank the the same to day every director and officer of the Bank is prohibited from using his/her authority or working opportunity to seek any interest contrary to his/her ethics, code of conduct, working cultures, or benefits of the Bank. operations regarding the use of insider information and compliance with the requirements concerning the code of conduct. Whoever violates such code of conduct Committee Audit the or to reported be will offenses commit and the Board of Directors of the Bank for judgement. KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 30 Bank hadnodisputes withanyitsbusinesspartners. the 2007, In partners. business as of together concept succeeding the on based are which partners, our with had we conditions and to terms agreed continues to adhere Bank strictly The success. our to contribution business partners because their support made a significant crisis. past the during especially trust, and support continuous their for depositors and creditors our to grateful deeply being while creditors, with had we conditions and terms as meanstoraisethelevelofawarenessandcaution. safety promoting and ordinary, the of out anything for out look a keeping in cooperation employees’ in requests are they Bank ensure the addition, In to times. all at conditions workable locations maintained appropriate properly at are and installed branch every at extinguishers fire have doors; security scan system finger alarm and an have events; record to (CCTV) TV Circuit Closed a up set location; visible a in list the post and for responsible is person each period the schedule phone number and of name people of to list contacta indevelop casetimes; all of at an emergency,Doors Security the close Bank; the by arranged locations other or rooms and have them meet or hold their discussions in meeting area office the enter to customers or outsiders prohibit as standard such to, and adhere have security guards on duty from 7.00 a.m. to 7.00 p.m.; to policy unit work forth every for set procedures to order in System Safety Work a created Bank the employees, all for and workenvironment. their families,good and employees for insurance health insurance, accident and life group fund, provident as such employees, the for policies regardingsafetyandbenefitsasfollows: has also Bank The path. career chosen their in progress to able is everyone that so and personnel our of skills capabilities the develop to programs training as well as provides Bank the benefits and compensation competitive and appropriate Furthermore, personnel. all by accessible easily are and defined, clearly appropriate, are benefits employee’s and systems; management auditable care; code of ethics and code of conducts; transparent and health and security regarding policies the and business, The Bank acknowledges the importance of our our of importance the acknowledges Bank The - BusinessPartners agreed to adhere strictly to continues Bank The - Creditors workplace the at safety foster To Policy: Safety benefits many provided Bank The Policy: Benefits Nation with Kiatnakin” project, which comprises of of comprises 3 majorgroupsofactivitiesasfollows: which project, Kiatnakin” with Nation Better a for People “Better the through community the to back contributing and sharing continual of policy the to adhered also Bank the to, network its expanded has Bank the where area the generating in opportunities from employment Aside organization. the throughout objectives staff and These management the to communicated been have contributions. social making and key another people local has with relationships establishing in also objective Bank the its to objectives, addition In financial responsibilities. environment and community social, of mindful being while shareholders Responsibilities Creation (1) for value create to is purpose Bank’s Kiatnakin Environmental and Community Social, - (2) Educational Activities A • • • • •
ctivities on Ethics and Social Immunity Immunity Social and Ethics on ctivities J and abilitiesforcontinuouslearning. consecutive years to challenge people’s 6 skills for involved been has Kiatnakin which English, in conducted competition plan of “Bangkok Business Challenge”, a business sponsor main the as Institute Sasin Joined assisting disadvantaged on children focused and families, that organization meritorious public a is which Thailand, of Foundation W of drugs. danger the understand and know to Area Metropolis Bangkok in schools in youths the train to aiming training, Project Drugs Suppress to Cooperation Relations Youth and Youth Relations Center in arranging the Joined courses since1994. other of variety a and Peace” and Wisdom Siri Mae Karinchai Khun called “Spiritual Development by for training meditation Buddhist Association of Thailand to support W supplies. educational constructing providing and buildings school students, underprivileged to scholarships providing in Foundation oined with Kiat Ruammitr Education Education Ruammitr Kiat with oined orked in conjunction with the Young Young the with conjunction in orked orked together with World Vision Vision World with together orked with the Metropolitan Police Bureau
31 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 Disclosure and Transpar- Information Donated a meeting room plus complete e Bank aims to instill the concepts of Competition at the Motor2007. Exposition audiovisual educationNongjorg Pittayanusorn equipment These social Highevents toinstill and develop the School. nation’s youth. The Bank believeshuman thatresources is our most and importantvaluable for the development of the nation. l of the aforementioned projects aimed to Donated money to sponsor the Robot e Board of Directors focuses on correct, • • Al Th Th 5.2.4)
ency embed and develop the youths and other Thai people, crucial most are resources human that believe we because development. and valuable for country’s executives our in conservation energy and environmental and employees. We have issued energy measures relating conservationto the usage of electricity, telephone, water and office equipments. These social, community and environmental responsibilities are ourthe wishesfounder of who is determinedbusiness to operatethat goesa sound of social responsibilities. hand in hand with high level complete, transparentdisclosure, covering andreports, financial thoroughinformation, and informationgeneral information, such as theinclusive and Report, Annual the and 56-1) (Form Form Annual Disclosure of critical information affecting the prices of the Bank’s shares. The Bankenable discloses investors suchand ofrelated informationinformation parties tochannelsvia Exchange of Thailand, the Bank ‘s website, and Investor a varietyand media of Relationsthe Unit Stock(IR Unit) to provide theand Bank’s activitiesdata to investors,and generalshareholders, public. analysts,telephoneThe number investors0-2680-3159-61 or www.kiatnakin. can co.thcontact or E-mail at address: investor_relation@kiatnakin. co.th. the Additionally, Bank has held analyst meetings to distribute information on a continuous basis and has cooperated with the Securities Analysts Association to arrange such meetings on a regular basis. In 2007, the Bank held 4 domestic analystof management the meet to analysts/investors the meetingsinvited and directly the Bank 57 times. The Bank also arranged for 5 foreign investors meetings in foreign countries. Birthday Anniversary under th money to sponsor the printing of money to public charity to assist in in assist to charity public to money onated money to sponsor Returning he Bank together with Duang Pratheep onated money to sponsor the World onated money to Uniting Hearts with Love Love with Hearts Uniting to money onated unds were also donated to support the oundation Provided financial assistance Elephant Reintroduction. and Allegiance to the King project by Office by project King the to Allegiance and of the Permanent Secretary for Defense. to create peace Southernand harmonyprovinces in and under the Harmony the inPeace SouthernPromotion and Support Fund. Provinces Elephant to the Forest Project for His Majesty Majesty His for Project Forest the to Elephant 80 the King’s which Association Journalist Thai by book a consolidates the Southern unrest events in the three Southern provinces. Robot Football EngineeringCompetition Scienceby Chulalongkorn University. the Department of 27 local municipals where that Bank has branches. Chaipattana Water Mill Project Royal The Under Foundation, Chaipattana by the Patronage of His Majesty the King. Foundation supported the spreadactivities knowledgeto andon investments and savings. understandingWe recognize cooperatives with savings of importance the which is deemed an essentialhaving a sufficientfactor lifestyle andin assist the communities to be strong and self-reliant. Thus, the Bank supports “Annual Awards for Excellent Member of the Cooperatives” to build members’ cooperativesconfidence andin seethemoney. value in saving by arranging “Bicycles for Children Project” Project” Children for “Bicycles arranging by to assist underprivileged students who live borrow can they that so schools the from far more with schools to travel and bicycles the convenience. T F Donated D D Donated F D upport in the form of donation on other • • • • • • • • S (3)
special opportunities. KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 32 director: Such guideline. Thailand Securities Commission, in Exchange and provided one the than stringent more be to director independent an of meaning the defined has Bank’s The issue. that on Chairperson the of duty the up senior take to a appointed be will director Chairperson, independent Bank’s related the any with are there transactions If operations. day-to-day and clear separation of responsibilities between policy setting is there therefore, the President; Bank’s he the as is person same nor director, independent an not is Officer Executive Chief Bank’s The Directors. Chairperson of Board be the to of directors independent Bank appointed the governance, corporate good of adhering principles In to Committee. Audit the of members are 3 and directors independent are 5 executives, are 3 which Directors meetings. These detailsarelocatedonpage35. sub-committee and policy, directors the committee the times of attend remuneration roles, number of on meetings, of details number information of responsibilities, disclosure the this Directors in of ensures Board report The 64. pages Auditor’s on Report the Annual with together financial the report provides Directors of Board Bank’s the completely and inform the public correctly of the to Bank’s order year performance. Furthermore, in the of mid-year at beginning and the at year every questions press the answer for and performance the announce to
- -
- 5.2.5) Moreover, the Bank arranged press conference conference press arranged Bank the Moreover, Board of Directors comprises 10 directors, of directors, 10 comprises Directors of Board Board ofDirectorsStructure C C gain or suffer any loss from providing service providing from loss any suffer or gain any receive not must person Such Bank. the may the person have conflicts of interest with the Bank, its over subsidiaries or related authority companies, nor have not does person a Such Bank. the from income regular receives a be staff member not of the Bank, or must a consultant who person a Such Bank. the of Act BE2534). to Exchange and Securities the of according 258 Section person related a a or interest (including of conflicts the have affiliates, may of or that person shares subsidiaries its voting Bank, of number total annot be involved with the management management the with involved be annot an hold no more than 0.5% of the the of 0.5% than more no hold an R esponsibilities of the Board of of Board the of esponsibilities independence. and transparency ensure to directors, independent are members the of all almost and Chairperson a as independent director an have Committee Sub- Remuneration and section. Nomination and Committee Management Audit as such the Committee in have included authorities been and of Details responsibilities Bank. the committee the managing in assist to Committee order in Remuneration and Committee, Nomination the Management and Risk Committee, Audit work carefully and with prudence without seeking personal our Wemanage shareholders. towards manner equitable Shareholders summarized asfollow. are Ethics Business of Details have understanding. and same the issue this of aware are executives all and that staffs ensure to regularly conducted were it. by Seminars abides everyone that ensure to up followed personnel and all to message this communicates regularly Bank The stakeholders. other all and Bank the towards fairness and integrity honesty, with Bank the for duties all of that Code ensure to the their conduct and guidelines as them used parties related executives issued for and Ethics Professional practice, as good served to which guide a announcements, made We ethics. Board ofDirectors
Responsibilities and Conducts toward and honest an toward in duties our performs Bank The Conducts and Responsibilities professional on stance definite has Bank The • BusinessEthics - - - - Has R T Sub-Committees Is one year. least at for above mentioned as Bank the to major shareholders. or directors Bank’s the of interests the after look to appointed be not must person Such the Bank, its of subsidiaries or related companies. shareholders major management Bank’s that mayleadtothelossofindependence. The person must not have conflict of interest the Bank, its subsidiaries or related companies. from the financial andindirectly, managerial or directly position whether with loss, or gains he Board of Directors has set up the the up set has Directors of Board he oles and Responsibilities of the the of Responsibilities and oles not a close relative of any members of the of members any of relative close a not no business relationship or receives any receives or relationship business no
33 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 e Bank placed great emphasis on having e Bank has an Internal Audit Office, an Th • Internal Control and Internal Audit Systems Th
Conflicts of Interest • Conflicts of Interest To prevent any conflicts of interest, the Bank’s independent unit directlyCommittee, to reportedmaintain confidenceto work thethat and our Audit keymajor financial effectivelyactivities wereand ascarried designated. Officeout conducted Ourtheir Internalwork consistently Audit with legal efficient internal control system, both at the management the at both system, control internal efficient and operational levels. Staff and executive authorities and duties were clearly and formally defined in writing. Control was instigated to ensure that all assets are used to create benefits in The the duties most of optimal way. the operational staffs, supervisors and approvers separated werein order to create an appropriate checks and balance system and proper audit capability. Financialreports also had their own control system, and reports were regularly disclosed to the public. The accounting standards used for financial institutions was audited by an external auditor. The Audit Committee metthe external auditor with 4 times and met with auditor from the Bank of Thailand once time during the past year to acquire audit results, suggestions, and opinions in order to follow up, make any necessary changes. improvementsFinancial reports were also regularly submitted and to the responsible executive. Community, Community, the Bank does not engage in environment. any and resources activity natural the for harmful is that We regularly promote activitiesresponsibility social that instilling create including something society, for positive and intentionally. of employees on-goingly in all level Board of Directors exercised utmost care in monitoring transactions that may potentially cause conflicts. The Board formally set up policies and procedures approval forof relatedthe transactions. Bank executives must report any changes of their shareholding in the Bank to the Securities and Exchange Commission (SEC), as per Article 59 of the Securities Exchange Act (BE 2535). In addition, any Bank director involved with the related transactions must abstain from voting due to conflicts of interest. The Bank adhered to the guideline stipulated the that states which Thailand of Exchange Stock the by price and terms of transaction which must be carried out details the All parties. outside any with do normally we as the in disclosed are partners contract and price including Annual Report and Form 56-1. Responsibilities and Conducts toward Customers toward Conducts and Responsibilities needs the meets that products introduces Bank The Responsibilities and Conducts toward Business The Bank will not demand, receive or pay any Responsibilities and Conducts toward the The Bank operates business responsibly and Employees/ toward Conducts and Responsibilities The Bank’s compensation structure is fair and Responsibilities and ConductsThe Bank operates within the towardboundaries of the
of the customers; discloses news, product information, and services completely and accurately; and allows the customers to raise issues or file complaints Bank’s services about in the order for customer to rapidly satisfy the customers, while strictly maintaining the customer’s privacy. Moreover, the Bank will not not equitable for the customers. regulations that are set policies or Partner / Creditors fraudulent benefits the occurs, event such any while If creditors. or partners conducting business business with Bank will demand a disclosure of the details of business fairly to cooperatively work will and creditors or partners and rapidly resolve situation, including following certain and reasonable. protocols to the officials as appropriate Sector Government according to the related policies, laws, Constitutional and under democracy regulations protect and promote that Monarchy. Staffs work safe providing including employees, all for equitable environment for employee’s life and assets. The Bank set up human resource management system to and rewards give handlesystematically transfers; and promotions punishments. We emphasize development of employee’s knowledge and capability as well as avoid engaging in any unfair activities that may impact the stability and workability of the employee. Competitors regulations of good competition. We don’t attempt to unlawfully obtain our competitor’s secrets, nor do trywe to defame ourResponsibilities competitors and Conductswith accusations.toward Society and gains by using the Bank’s information, which includes disclosing confidential information to external parties / competitors. KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 34
Remarks: The BoardofDirectorsMeetingAttendancein2007
10 11 12 13 14 15 6 5 1 2 7 3 9 8 4 Mr. PravitVarutbangkul Mr. Tarnin Chirasoonton Ms. NawaapornR (2) (1) Mr. PichaiDachanapirom Mr. SurapholKulsiri Mr. ManopBongsadadt Mr. SupolWattanavekin Mr. PrachaChumnarnkitkosol Mr. ChetPattrakornkul Mr. Tawatchai Sudtikitpisan Mr. ChavalitChindavanig Mr. PatomAmorndechawat Ms. ThitinanWattanavekin Mr. SarawutCharuchinda Ms. SineenathTejagupta Nominatedsince4 Attendthemeetingfrom1 Name- Surname
yanskul th meeting. st -6 th Director Independent Director Independent Director/ Independent Director/ Chairperson Director Remuneration Committee Chairperson ofNominationand Independent Director/ Chairperson ofAuditCommittee Chairman Director Independent Director President and Budgeting Head ofFinance Head ofOperations and Marketing Head ofDeposit Head ofDebtRestructuring Senior ExecutiveVice President beforeNominatedtoChairpersonoftheBoardDirectors Position
Directors Board of 8/8 8/8 8/8 8/8 8/8 8/8 8/8 7/8 8/8 8/8
Committee Executive 12/12 12/12 11/12 10/12 11/12 6/6 2/2
Committee 6/12 8/12 Audit 12/12 11/12
(2) (1)
Attendance No.ofmeetingheld Nomination and Remuneration Committee 4/4 3/4 4/4
35 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 (%)
100 100 100 100 100 100 100 Total 87 95 94 92 92 99 94 90 95 Attendance % of Meeting 31 29 55 59 54 36 40 Score 4 58 57 41 37 44 59 51 8 7 3 4 3 4 8 5 2 Score 3 Number of
Committee Member Committee rthermore, the Bank’s Board of Directors 4 3 2 5 8 11 12 Fu Score 2
5 12 12 12 12 49 12 46 46 developed and distributed the Internal Control Assessment Assessment Control Internal the distributed and developed Form for each director to review and evaluate the Bank’s internal control system and acceptabledetermine and stringent whetherenough. The it’s Internal AuditOffice collected the forms, summarized include it thein the findings,Annual Report and disclosed it to the public. Audit Office to report their audit findings directly Directors. the Audit Committee and the Board of to Meeting 0 2 0 1 0 0 1 Number of Score 1
Subject Sub-Committees Meetings Sub-Committees Another area of great importance to the Qualification structure of the Board Roles and responsibilities of the Board The meetings Duties of the Board Relationship with management Development of directors and executives
1 2 3 4 5 6
Risk Management Committee Executive Committee Investment Committee Committee Assets and Liabilities Management Development Committee Credit Committee Retail Lending Sub-Committee Asset Management Sub-Committee Debt Restructuring Sub-Committee
Board of Directors isManagement riskCommittee and management.Risk Management Unit Thehave set up Riskprotective measures and steps in managing directly report Unit Management Risk the having by risks to the Risk Management Committee and the Board of Directors. Board of Directors Self-Assessment requirements. To maintain its system independenceof checks and and balance a for Office,our Internalthe Board Auditof Directors instructed the Internal
Sub-Committees Meetings Attendance in 2007 Attendance Meetings Sub-Committees KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 36 who is not an executive to hold meetings among among meetings hold to themselves todiscusscertainmanagementissues. executive an not is who director of allowance includes which policy, set the of boundary the within executives other or Board the to Secretary Bank the or additional President the request from to information Committee the allowed Bank The other. each familiarize to way a is the and Committee to information additional attend provide to to meeting President the Bank’s the invited Chairperson relevant partiestoexamine. other and Board the for available made and Board, the by endorsed prepared, formally was minutes meeting, each For hours. 4 approximately lasting each meetings, each 10 held Directors of Bank’sBoard the attending 2007, In meeting. to prior the matters for consider time to sufficient directors allow to to out carried are agenda, tasks the of These item advance. in days 7 least at Board each the of members to explanations and objectives the included which agenda, the with along invitations meeting sending and for meetings the arranging responsible is Directors of agenda. Board the of defined office The clearly a with advance in Meetings who adherestopolicyandregularlyreportstheBoard. Unit Management Risk a has Committee Management on warning signals and abnormal transactions. The Risk importance great places still Board The Managements. Risk of assessment and review the including subsidiaries, its and Bank entire the covers that Policy Management Risk a has Bank The Committee. Management Risk the follows: as are 2007 for Directors of Board the the of self-assessment of results The President. corporate the of remuneration good the determine to to used also is adhered assessment The they governance. how and to their is duties per as appropriately and completely assessment duties their the of performed they year, past the purpose during whether determine The directors. non-executives and executives and Chairperson, the the includes which Officer,Executive Chief year the of assessment President, the every self-assessment own T - - - The Board of Directors closely manages risks via risks manages closely Directors of Board The Risk ManagementPolicy In order In T The BoardMeetings he Bank’s Board of Directors conduct its its conduct Directors of Board Bank’s he Board ofDirectorsSelf-Assessment he Board of Directors scheduled the Board Board the scheduled Directors of Board he to be clear in our communication, the communication, our in clear be to Section 3)Executive’s Remuneration including executive director in section “Profiles of of “Profiles section in Kiatnakin’s DirectorsandExecutives”onpage51. director executive including has Bank disclose the other directorship positions of each directors The businesses. the over has who power on controlling based determined is business of group A full with groups. business three director than more or in authority signatory director, of executive position the chairman, assuming from banks commercial of executives senior and directors prohibits announcement The 2003. September 15 on issued C.94/2546 FPG.(31) announcement per as banks commercial of holding executives on senior and regulations directors by companies other in clear directorship of has Bank the which of Thailand bank supervision the under commercial a operates is that Bank The companies. many how in and companies other in hold can they position directorship of type in executives senior and directors the in described Management Structuresection. are and separated clearly are duties Their shareholders. the for responsible are Committee Executive the and Directors of Board The Bank. the of understanding better gain they that so Bank the about Bank stipulates the duties and provides basic the information directors, the For (IOD). Association Directors of Institute Thai from trainings through been has directors Bank’sthe of All management. risk and control internal good have to arrange as well as understanding same the has everyone that so staff and team management the to plans business disseminate to meetings held Bank productively. The and effectively budget the the and of business goals the towards operate executives at ensure also They budget. and plans business goals, mission, strategies, vision, the of development the in part takes term ofeachdirectoris3years. evenly is closest split to the 1/3 ratio. be This means that the directorship cannot into directors three groups of then remove the number of number directors that the If position. the from directors 3 of out 1 least at remove Meeting, Shareholders General each in that Bank the T - T - - Bank’s for procedures and policies defined Clearly The Bank specifies in regulation number 18 of of 18 number regulation in specifies Bank The he Board of Directors is the one who sets and and sets who one the is Directors of Board he he details of Executive’s Remuneration is in in is Remuneration Executive’s of details he Development ofdirectorsandexecutives Remuneration T erms ofDirectorship
37 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 that the Bank used e Bank recognizes the importance in upholding upholding in importance the recognizes Bank e Th Nomination and Remuneration Committee Reason / Compensation measures good corporate governance that emphasizes management emphasizes that governance corporate good and confidence creates transparent; effective, is that system value, Bank’s the increase will and everyone; for assurance promote long-lasting growth. The Bank is committed to enhance operations while adhering to good corporate governance. There are some areas that the Bank has not adhered to yet, such as developing a success plan for President and has development development has has developed and President succession for plan plan success policy a whichdeveloping includes to levels 3 at executives senior 30 approximately for plan the in succeed to them prepare and capabilities their hone perform cannot executive incumbent the case in position his/her duties. The committee regularly reports progress to the Board of Directors. Bank’s stakeholders are customers, staffs, creditors, business Bank’s the environment, etc. society, partners, community, that violates In the past, there has never been any conflict Thus, the Bank the rights of the stakeholders stated above. to deal with it. If has not specified any measures in how the Bank will compensate the such violation does occur, stakeholder as stipulated by the law. The Bank did not hold committee meetings every month, The Bank did not hold committee meetings to the Board but the committee reported their progress do It was deemed sufficient to of Directors every quarter. quarterly report because there is no significant progress in each month. operations the Bank’s performance in groups because The Bank assess the director’s to assess by individual may have some inaccuracies.
s progress Follow up to ensure execution of resolutions that arises from Shareholder’s meeting as well meetings as Board of Directors legal provisions, the Bank’s rules and regulations regulations and rules Bank’s the provisions, legal correctly applied being it’s ensure to up follow and and regularly. This includes changes. directors of any significant informing the Manage the activities of the Board of Directors Manage the activities of the Board of Directors Be a laison between executives and directors Provide basic advice to the directors regarding Appointing Secretary of the Company Secretary of the Appointing
❑ ❑ ❑ - whose Bank, the for Secretary the appoints Bank The damages because the company violated the legal rights of the stakeholder. Monthly reporting of Committee’ when the meeting is not held monthly Performance assessment of individual directors Compensation when stakeholder received Compensation when stakeholder received
2. 3. 1.
responsibilities are as follows: are as follows: responsibilities KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 38 Human ResourcesCommittee the to propose and again happening from it prevent to order in operation the improve situation, the rectify to comprises a central unit who will do fact finding and how committee This investigate. to up set laws be will committee hoc ad found, relevant are irregularities with any If regulations. and compliance ensure to auditing and section, each of chief the by operations of review duties, of segregation include measures immediately Other be rectified. can it that so supervisor operational the to and errors irregularities report employee every having of culture the with along established been have property,lost against procedures recovery and dishonesty measures Preventive process. approval transaction and authority of levels the and committees various of duties Risk ManagementPolicy. the with compliance ensure and monitor to Unit Audit Internal has Bank The auditable. and transparent clear, manage risks to be within appropriate level for the Bank, Management to order in Committee Risk Risks the to directly The report Unit Thailand. of Bank the from guideline the per as areas 5 all in risk manage to Policy the structure. and business ethics honesty as well as having appropriate organization of importance the emphasizes The also regulations. Bank and rules that the to such conforms operations everyone the of control and supervision the with assist to provided are checklists and Manuals goals. and missions measurable by and clear systems determining control internal of necessity the of aware the following5factors: corporate governance under by good taking into account in an easy to understand format. The information is is information The format. understand to easy an in presented and organized are which decision-making for information relevant and up-to-date provide to system T (4) T (3) The (2) be to personnel Bank all promotes Bank The (1) ControlEnvironment The Bank evaluates internal control systems systems control internal evaluates Bank The 6) he Bank has set up an information technology technology information an up set has Bank he he Bank clearly specified the scope, power, power, scope, the specified clearly Bank he Internal Control Information andCommunication Control Activities Risk Assessment Bank has Credit Policy and Risk Management beneficial advice and opinions to the customers and and customers others aspertheBank’s visionandmission. the to opinions and advice beneficial most the provide can they that so acumen and expertise business business knowledge, and staff’s enhance to knowledge understandings developed disseminated Bank that the systems Moreover, stakeholders. all to communicated internally within the Bank and distributed of Directorswithnopresetrateoramount. Board the by decided is subsidiaries Bank’s the of policy be will income net allocated to dividend of distribution annually. The dividend percent 60 than more no that of Board the by Directors everyyear. evaluated being is to Internal System as or the Control and Furthermore, situations insufficiency. changing any promptly the correct made reflect to Modifications are necessary (KPIs). enhancements Key & and Indicators Scorecard Balanced Performance using by performance assessing and monitoring in supervisors and executives to directlydevelopthecapability. and capabilities development, changing attitudes in order knowledge emphasize programs the All groups. 108 and as per the Training Road Map. There are over 35 programs nation by holding in house seminars and external seminars Bank trained and developed our employees throughout the to achieve it’s mission and as required by the business.The Bank the Trainingenable Base to Competency need the of employees, orientate, train and develop them based on the customers. Therefore, we have recruited a large number number of branches and development of new products for
T (5) 8) 7) DividendPolicy (1) ManagementCategory he Bank has procedures and tools to assist assist to tools and procedures has Bank he I Personnel Policy Bank’ The n 2007, the Bank steadily grew in terms of of terms in grew steadily Bank the 2007, n Monitoring andEvaluation ------
Unleash Your Potential Managing Yourself Essential CommunicationSkill Coaching forSuccess Six ThinkingHats Problem Solving&DecisionMaking Coaching forHighPerformanceTeam Satisfy MyCustomer s policy on dividend payments stated payments dividend on policy s
39 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 Competency, we also focused on leadership development development leadership on focused also we Competency, under KK Leadership Development Program (KK LDP) for a group of managers that must on creating the Bank aim to emphasize develop This year, ability. leadership Development Career and Plan Development Individual an information so that every employee can grow in theirfields, expertise, and Functional Competency. in importance Because the consider must we rapidly, grew Bank the exchanging system, management knowledge the organizing knowledge and transferring knowledge capital organizationto theand other employees in order to achievesustainable organizational development. Thus, the Bank set up Knowledge Management in 2008 also. In addition to focusing on employee development Resource Human a and developed also knowledge Bank the management, This Online. HR called tool a within System Information system is convenient for managers and Bank employees and enables them to obtain accurate information due to practices. effective human resource management KK Hand in Hand Enhance Selling Technique Enhance Selling Debt Collection era loans in BASEL II Managing Signature and Check Bank Notes, Verifying Workshop Negotiation & Win Workshop Interviewing Techniques Market Hire-Purchase Loan at Work The Heart of Success for Life and Family Mind Management Management Business Images & Make up
Job Specific Category Job Specific ------Category General / Foundation - - - Writing Technique for- Knowledge - In 2008, over and above what the Bank has done (2) (3)
in terms of employee development as per their Core KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 40 * During 2007,theBankhadfollowingrelatedtransactions: 5. RelatedTransactions Since1April2007 onward,TheErawanGroupPlcis notthebank’s relatedcompany. 4 3 Leasingtransaction 2 Lendingtransaction 1 * persons executives andrelated by the Bank’s directors, Deposit transactions shares. own 99.83%ofthe decisions. TheBank significantly influence power orableto or hascontrolling a shareholder executive whoisalso the directororBank’s shareholders relatedto Co., Ltd.whichhas with Chotthanawat Leasing transaction PLC. The ErawanGroup shareholder in executive isa which theBank’s Amarin PlazaPLC. (formerly knownas Group PLC. and TheErawan between theBank process. debt-restructuring the sharesthrough Bank own80.57%of a companythatthe Co., Ltd.,whichis Development lend moneytoCMIC director/ executive related totheBank’s by whichaperson Name andRelation- ship • Conducted by 33 of • The Bank lease storage • TheBankleasespacesas no collateral. • A person related to the was Baht 5.82 million. and total interest paid were Baht 398.53 million persons. Total deposits executives and related the Bank’s directors, per annum. fees areBaht9.74million Total leasingandservice Chotthanawat Co.,Ltd. and parking spaces from per annum. are Baht6.36million and servicefees PLC. Total leasing The ErawanGroup a placeofbusinessfrom was Baht 62 million with Ltd. Total loanamount CMIC DevelopmentCo., gave a short-term loan to Bank’s director/ executive Amount (perannum) Description and
• Anormaldeposit • Leasingandservice • Leasingandser- • CMICDevelopment Necessity andReasona- related persons. executives, and Bank’s directors, transactions bythe going since2004. have beenon- automobiles that for repossessed and auctionplace parking spaces fees fortheBank’s since 1984. been on-going business thathas vice fee for Bank’s institutions from otherfinancial credit toobtainloan do nothavesufficient generate income,but for leasingand renovate buildings that needfundsto erty leasingcompany Co., Ltd.isaprop- bleness • Providedservice • Leasingand • Leasingand • Interestrate Fairness ofPrice customers. as other interest rates with thesame rates. with market comparable service feesare rates. with market comparable service feesare businesses. for financial a normalterm p.a., whichis Bank +1% MLR ofthe and Terms
41 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 and Terms and Terms for debted auction from FRA that has been restructured as per normal terms for debts acquired from auctions. with the same with the same commission fee as other customers Fairness of Price Fairness of • A guarantee • Provided service • Provided bleness auction won from FRA has been restructured and resolved as per normal procedures for all debts acquired from auctions. brokerage service brokerage provided by KKS to directors/ex- ecutives. Necessity and Reasona- Necessity • Transaction based on • Transaction • A normal security • A normal Description and Description Amount (per annum) Amount (per persons related to the persons related to the directors/executives Bank’s for debt auctioned from number of FRA. Total loan guarantors was 16 for a total loan amount of Baht 38.8 million. transactions by the Bank’s by the Bank’s transactions with directors/ executives Kiatnakin Securities totalled Co., Ltd. (KKS) 2007, in million 534.4 Baht total a in resulted which Baht of commission million 1.16 • A loan guaranteed by • A loan guaranteed • Securities trading • Securities ship Name and Relation- Name and for a person related for a person related to the Bank’s directors /executives transactions by the transactions directors/ Bank’s executives with the securities company (KKS)
6 a loan Guaranteed 5 Securities trading See Note accompanying Financial Report on Personal and Related Transactions, Note #34 on Personal and Related Transactions, See Note accompanying Financial Report KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 42 Ltd. The detailed performance of each business is as as is business follows: each of performance detailed The Ltd. Co., Securities Kiatnakin by operated brokerage is that securities business and lending, lending, project residential hire-purchase lending, commercial financial in claims, investment businesses: main 5 following of Baht 113.5millionfrom2006. increase an million, 137 Baht asset of and sold be claims to waiting financial in investment the of gain revaluation in improvement an and 2006 from million 121.8 Baht of reduction a million, 464 Baht of claims financial in investment the of gain revaluation It a year.posted last from increase 5.9% or million 120 Baht a is which million, 2,154 Baht of tax before profit net a the 12-month period ended December 31, 2007 recorded Performance 6. AnalysisofFinancialPositionandPerformance restructuring negotiation in order to decrease the the decrease to order debt- in a and going negotiation under is financial restructuring Bank past The from crisis. economic remainder the outstanding was of portion loan a sector Additionally, the in level. low loan at to non-performing able keep was to and manage strategy expansion Bank its the in 2007, In succeeded business. dealer automobile and used apartment, printing, packaging, logistics, namely potential, strong has that sectors new several to service reflected adecreaseofBaht2,205millionfrom2006. which million, 6,876 Baht was end year 2007 at claims financial in investment of outstanding total The plan. as proceeded debt-restructuring of progress The claims. financial in investment its managing in progress good 1) the from income its derived Bank the 2007, In The Bank’s consolidated financial statements for for statements financial consolidated Bank’s The 2) I Investment inFinancialClaims T Commercial Lending n 2007, Kiatnakin Bank continued to make make to continued Bank Kiatnakin 2007, n he Bank expanded its commercial lending lending commercial its expanded Bank he commercial loanbalanceofBaht7,662million. general outstanding an be had Bank the 2007, of end to the At loans. reverted and negotiation debt- restructuring the completed has that claim was in loans investment the an of reminder The balance. outstanding completions in Bangkok Metropolitan area. For For was 2007 area. in more thandoubledfrompreviousyear. growth condominiums, Metropolitan project and apartments Bangkok in construction residential completions new an in was there increase Overall, income. future in confidence consumer lower to due down was slow economic by affected business estate Real area. Metropolitan Bangkok greater in single situated construction townhouses usually and houses projects, and developers scale small to medium from were loans the of Majority million. 15,183 Baht of loan project Bank residential outstanding the total a 2007, had of end the at As 2001. since services personal cars to other types of cars was 35:65. The ratio The 35:65. was cars of types other to of cars personal ratio The clients. loan loan automobile new hire-purchase and clients auto used for proportions set Wenearly 42.4%. of increase an million, 42,238 Baht of end of 2007, auto hire-purchase loans recorded a balance another core business for the Bank for many years. At the home the buyers. for loans house and developers, for support marketing houses, of transfer assisted rapid providing Bank by clients The records. business and profile their with familiar is Bank the clients, existing were prospects the Since projects. new launch they as clients existing of size portfolio increasing on The focus to was developers. goal to Bank’s million 8,000 Baht than more of 3)
4)
The Residential ProjectLending In 2007, H Hire-Purchase Lending ire-purchase lending business has been been has business lending ire-purchase Bank began its residential project lending project residential its began Bank the Bank gave residential project loans
43 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 124 338 2005 2005 2,288 2,093 1,084 1,178 5,589 1,516 (Unit: Baht Million) (Unit: Baht Million)
174 954 469 2,424 2,465 1,759 6,017 2006 2006 2,228
863 253 1,746 2,023 3,209 1,211 2,609 2007 2007 6,696 Baht 2,424 million to Baht 2,033 million, or 17% over the year in conjunction with the growth in commercial loan. There wasoutstanding aloan customersreduction created prior financial to inand the economic pastcrisis. theThe interest income numberon investment in of financial claims increased by Baht million 257 to Baht 1,211 million. The reduction was due to the success of loan restructuring process. number 19 in the Stock Exchange of Thailand. KKS has KKS Thailand. of Exchange Stock the in 19 number been in business for an extended number of years ever since the Bank received permission to operate securities business in 1973. KKS mainly provide stock brokerage officers marketing our through customers retail to service and internet channel. At the end tradingof 2007, volumecompany was Baht 117.9market billionshare. withIn 1.48%September allowing 2006,clients to Companymake forward beganagreement to buy sell or securities and was very successful in gaining market alternative an as it offer to plans company 2008, In share. investment choice for existing securities clients and is rapid expansion. expected to achieve Interest Expenses Interest and Dividend Income Bank has one subsidiary named Kiatnakin Total Total Securities Business The 2) Interest Expenses Total interest and dividend income at 31 December 31 at income dividend and interest Total 1) Interest and Dividend Income 5)
Interest on loans* Hire-Purchase and Financial lease income Interest and dividend on securities Interest on investment in loans Interest on deposits Others
2007 increased to Baht 6,696 6,017million inmillion from Baht in 679 2006,million. The animprovement improvementwas accounted overall for by ofloan Bahtgrowth duringincome for thehire-purchase year. loansThe increased2,465interest million fromto Baht Baht3,209 million, or 11% over yearthe in conjunction with loan interest income growthfor other loan of products decreased 42%. from The * including transactions between money market items banks * including transactions between money Analysis of the performance of the Bank Analysis of the performance of Securities Co., Ltd. (KKS) which is listed as broker of clients in Bangkok Metropolitanprovinces area and wasin the20:80. Overall,Bank’s autothe hire-purchasemajority commercialofloan theclients vehicleare in usedexpandin thecustomer province. base and the Bank Inaims to add 10 more branches in the provinces provideorder better to services, and greater Bangkok Metropolitan area in 2008. Thus, have will Bank the branches, 27 existing to additional in a total of 37 branches. KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 44 from Baht 1,120 million in 2006. The increase was was increase The 2006. in million 1,120 Baht from million 1,811 Baht to increased 2007 31, December at base, customer loan term short expand to policy new from resulted increase The 17%. or million, 381 Baht of million in 2006 to Baht 2,609 million in 2007, an increase Bank of Thailand amounted to Baht 2,910 million or or million 2,910 Baht to amounted Thailand of Bank the by stipulated allowance Total 2006. from decrease 2007 was Baht 3,063 million which is a Baht 320 million Other income Gain fromrevaluationandsaleofforeclosedassets Brokerage fees Impairment gain(loss)oninvestmentinfinancialclaims Gain onrevaluationofinvestment Gain ondisposalinvestmentinsecurities Loan Recovery/Provisionsforbaddebtsanddoubtfulaccounts Charged off Provisions forbaddebtanddoubtfulaccounts Recoveries Total Allowance,1January Other expenses Contributions toFinancialInstitutions DevelopmentFund Fee andserviceexpenses Tax andduties Premises andequipmentexpenses Personnel expenses
Total interest expenses increased from Baht 2,228 Baht from increased expenses Totalinterest Non-interest income for the 12-month period as as period 12-month the for income Non-interest 4) 3) Provision for doubtful accounts at December 31, 31, December at accounts doubtful for Provision 5) Non-Interest Income Loan Recovery/Provisionsforbaddebtsanddoubtfulaccounts Non-interest expenses Total Total Allowance,31December Total Non-interest expenses Non-Interest Income mainly due to the profit from selling investments investments selling from and earningsfromfinancialclaim. profit the to due mainly 67,138 Baht to 17% at million fromBaht57,093in2006. as increased deposits 2007 and 31, loans December Total deposits. stimulated which additional period the over growth loan in rise conservative loanlossesreservepolicy. with combined model classification loan stringent a uses 105% compared to 110% in 2006. In 2007, the Bank still (1,097) 3,063 2007 2007 1,811 2007 2,653 3,383 (135) 641 136 535 623 275 165 348 845 164 275 155 348 866
1,120 3,383 2006 2006 (863) 2006 3,883 2,296 489 274 198 108 287 642 179 310 158 311 696 46 76 (Unit: BahtMillion) (Unit: BahtMillion) (Unit: BahtMillion) 5 2,147 1,534 3,883 2005 2005 (206) (470) 2005 3,611 738 136 220 144 229 680 342 235 370 728 724 65 18
45 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 164 164 586 429 5,969 3,705 5,969 5,391 10,154 45,536 2005 2005 10,154 45,536 (3,883) 57,940 (3,883) 68,051 (Unit: Baht Million) (Unit: Baht Million) (Unit: Baht Million) 164 164 701 518 9,082 8,333 5,368 9,082 8,333 4,823 51,157 2006 2006 51,157 (3,383) 65,353 (3,383) 76,763
237 605 621 237 4,300 6,876 9,294 4,875 6,876 9,294 65,094 2007 2007 65,094 (3,063) 88,839 (3,063) 78,438 bonds. According to the present regulations from Bankthe of Thailand, up to 6% of requirement can be maintained thein government bonds or 7% cash reserve debt securities issued by various states enterprises operating expenses (excluded uncontrollable expenses such contributions to FRA Fund and specific business tax) totaled Baht increase2,334 of 19% million,or Baht 1,959 million representingfrom The last Bank still year. had an expense to income an ratio of 0.44, as ratio of 0.42 in 2006. which is about the same included Investment inCommercial Financiallending and Properties Claims,Foreclosed. More as follows: details of each major type of assets are Funds, Assets Core business Total core business Total Total Assets Total Investment in Securities 4,300 Baht to decreased securities in Investment 1) The Bank aimed to control operating expenses On a consolidated basis, the Bank ended 2007 with with 2007 ended Bank the basis, consolidated a On
Investment in loans Investment in properties Loans Allowance for doubtful accounts Properties foreclosed net Investment in securities, net Investment in loans, net Investment in properties, Loans Securities business receivables Allowance for doubtful accounts Properties foreclosed, net Land premises and equipment, net Other assets
million from Baht government 5,368 in liquidity millionexcess temporary invests in normally 2006. The Bank Analysis of Financial Status Assets Analysis of Financial such that it does not keep growing as the company grew. However, in 2007 the Bank still opened more branches and increased marketing workplace personnel,at headquarter and increased improvedinvestment in theIT systems to provide better customer service. In 2007, the total assets of Baht 88,839 million, an million 76,763 Baht from % increase 15.7 or million 12,076 Baht of last year. There was growth especially in in allcommercial coreloans. The Bank Bank’s five assetsassets KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 46 loans made up the highest proportion of all general general all of proportion highest these the up years, made past loans the In process. settlement through them liquidating or loans and normal as them process maintaining restructuring through quality improving either by crisis economic and financial to prior created were that loans loans. commercial general managed new Bank The and claims financial in investment loans, commercial general types: main three into categorized residential projectloansandhire-purchaseloans. the total credits into three main categories: general loans, Baht divided of Bank The year. the over 27% increase or million 13,937 an million, 65,094 Baht to 2006 in credits in 2007. Total loans grew from Baht 51,157 million of restructuring these assets. These restructuring were were restructuring These assets. these restructuring of process the in success in represented decrease amount outstanding These 2006. in million 5,011 Baht from 2007 in million 3,983 Baht to down managed were book company’s the in booked were that those token, same the In 29%. of decrease an represented which 2006, in million 4,070 Baht of total a to from Funds million 2,893 the Baht in booked claims, investment total the Investment inloans From LoanExecutionDept.setupinKK setupinKK From FRA, setupinfunds From FRA, Hire-Purchase Loans Residential ProjectLoans Finance BusinessLoans General Loans Majority of the Bank’s general loans can be be can loans general Bank’s the of Majority General Loans The Bank made a significant growth in extending in growth significant a made Bank The 2) During 2007, the Bank was able to manage down manage to able was Bank the 2007, During 3) Investment inFinancialClaims Total Credit Total 15,183 million plus another Baht 237 million booked in booked million 237 Baht another Baht plus million 15,183 of balance outstanding an with projects 60 over supported Bank the 2007, of end proven the At with records. track developers same the to mostly projects, was Baht 4,604million. end year 2007 at the balance for outstanding loans The general Bank. all loans of new 60% the than more and up made successful very be strategy to The out in. turned compete to able was and high had potential thought Bank the that sectors new new in loans offered Bank the 2007, In year. the during loans problem restructuring in made was progress Continuous process. debt-restructuring from loans be to transferred and restructured been had claims in Investments loans. will bebookedasforeclosedassets. cash of lieu in collateral by company.Settlement the in booked were that those for loans to reclassified be will it funds, the in booked were that those for investment the While of part thereof. as treated being still were combination payments installment the or cash, of lieu in installment collaterals the up giving cash, time, of period in a over payment settled fully ways: four in made The Bank continued to finance new residential residential new finance to continued Bank The Residential ProjectLoans 65,094 6,876 42,238 15,184 3,312 2,893 2007 2007 7,672 671
51,157 29,666 15,248 9,082 4,273 4,070 2006 2006 6,243 739 (Unit: BahtMillion) (Unit: BahtMillion) 10,154 45,534 23,556 15,733 2005 2005 4,078 5,105 6,247 971
47 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 2,806 4,122 1,132 2005 8,060 Sedan 39% (67,310 account) Single / Town House 98% Single / Town (Unit: Baht Million) 2006 2,063 4,227 1,274 7,564 Others 4% (6,904 account) Classified by type Classified by Type Resident Condo 2% 1,652 5,411 1,139 2007 8,202 One ton pick-up vans 57% (8,376 account) 2006, or about 42.4%. financing. car used A the in large still was portfolio percentage loans purchase of its hire Following are two charts illustrating the demographic in term of accounts by vehicle type and in term of loan outstanding by new/used vehicles. of these projects are mediumtownhouse units. sizeFollowing singleare two charts house illustrating and the demographic in term of loan outstanding by location projects. and type of Greater Bangkok 67% New cars 53% North 2% Classified Loans Northeast 3% Classified by Location Classified by new / used Central 10% South 8% Total Classified Loans Used cars 47% Hire-Purchase Loans satisfactory a achieved also have loans Hire-purchase 4) East 10%
General Loans Residential Project Loans Hire-Purchase Loans
growth rate. The Bank was able to record an outstanding an record to able was Bank The rate. growth increase an 2007, year-end at million 42,238 Baht of loan of Baht 12,572 million from Baht 29,666 million in two property funds, compared to Baht 15,248 million and and million 15,248 Baht to compared funds, property two Baht 164 million in 2006, respectively.projects wereWhile financed these strategically countrywide, 67% were in the greater Bangkok Metropolitan area. Most KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 48 Bank reservedetailsareasabove. the to nearly are reserve required 2007, in result the As standard. industry the than stringent more was Bank the because dropped allowance total the business, lending hire-purchase in However, loans. secured for allowance required the increased it because Bank the for burden the in increase an of causes standard Bank new the This Thailand. by forth set IAS39 standard accounting international new the to according accounts doubtful for allowance aside set to began and policy revised Bank hiad t l tm. n h 4 the In time. all at Thailand of Bank the of requirement the than stringent more is The which policy, reserve loan a classifications. maintain to loan was objective the with match closely to Hire- etc. sales, of progress in developing, of breach rate a progress as classified also were they financial commitment, in breach a as classified only not were loans residential for especially project loans and hire-purchase loans. Residential project model, classification loan Central 13% East 7% Transaction betweenmoneymarketItems Hire-Purchase Loans Residential ProjectLoans General Loans
South 7% The Bank issued a conservative loan reserve policy 5) stringent rather maintain to continued Bank The Total Allowance forDoubtfulAccounts North 8% classified byLocation Allowance forDoubtfulAccounts Northeast 8% th quarter of 2007, the the 2007, of quarter Greater Bangkok57% shown inthetableabove: to decrease. Details of classification in each type of loan debtors are classified causing debt, bad off wrote Bank the 2007, During regulation. Banking the than model classification stringent more much uses loans purchase
breakdown intermofamountbylocationandtype. of majority shows chart followings The area. The Metropolitan Bangkok Bank. the greater the in house residential and of land are assets these properties in buying interested those motivate of to power purchasing credits enhance and Festival low-interest Sales supporting Property by in and part taking by promotion measures marketing the utilized Bank The million. 2,860 Baht to in amount sale total the million 3,679 Baht settlement of form as lieu of cash. asset The total assets for sale in 2007 amounted to obtain to and negotiations of litigation result a as 12% about or 2006 in million 8,333 Baht from 2007 in million 9,294 Baht to 6) Housing 32% Assets forsale Th e total outstanding assets for sale increased increased sale for assets outstanding total e Actual 3,044 1,274 796 966 classified byType 8
Required 2,910 1,169 Resident /Condo3% 796 937 Lands 65% 8 Excess 134 105 29 - -
49 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 - 4 48 503 316 138 (29) (70) 6,435 7,483 8,213 2,436 2005 2005 43,368 49,855 14,454 16,170 (1,104) 16,170
(Unit: Baht Million) (Unit: Baht 10 24 83 53 (Unit: Baht Million) 113 100 586 290 7,774 9,079 1,168 2,034 2006 2006 44,436 12,434 57,093 16,170 17,463 17,463
95 558 358 464 137 114 9,107 7,869 2,154 (122) 2007 2007 43,503 13,500 67,026 10,097 17,463 18,567 (1,137) 18,567 As a preventative measure to control liquidity risks from the interest rate volatility at the end of 2007, the Bank’s deposits and loans have a maturity date over of 300 days. The Bank’s ratio of liability to number of shareholders is 3.78, which is lower than the average Thai commercial bank that has ratio of 10.85 The low ratio is result of the Bank’s good operating performance and policy of allocatingaccommodate future growth and to highbe consistent with loanbusiness that manages auctioned assets. allowance to
Equities Liabilities and Shareholders’ equities and Shareholders’ Liabilities Ending of the year Total Shareholders’ equities Total Deposits and Borrowings The Bank focused on increasing time deposits 1.1) Shareholders’Equities 1)
Beginning of the year Dividends payment Conversion of warrants Net profit Improvement (Deterioration) of unrealized Profit (Loss) in investment in financial claims Improvement(Deterioration) of unrealized Profit (Loss) in investment in securities Current deposit Savings deposit Fixed deposit Bill of exchange Debenture borrowings Total Issued and fully paid-up Retained earnings investment in loans Fair value reserves on securities available-for-sale Fair value reserves on
from general public as ourthe stableBank sources.places Ingreater 2007,customer expand to deposits savings and deposits current importance on mobilizing base as well as to decrease the concentration of deposit amount. In that, the Bank was successful in expanding its customer base and reduced the amount of depositsper customer from Baht 5.3 million per account to Baht 4.8 million. The Bank closely manages liquidity risk by loans, term long and short of profile maturity controlling ensuring appropriate balance. Equities and Shareholders’ Liabilities KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 50 Remark: *includingwith shareholdingofspouseandchild whoisnotbecomelegal age asofAug.27,2007 7. ProfilesofKiatnakin’s DirectorsandExecutives year and some pay out of dividend during the year 3) an 3) year the during dividend of out pay some and year the for generated 2007 of profit net 2) year the during was mainly due to three reasons: 1) warrants conversions This 6%. about or million, 1,104 Baht of increase an is million in 2007 from Baht 17,463 at the end of 2006. This Director) Authorized (Non- Ryanskul Nawaaporn 1. Ms. Surname/ Position Name- Details ofcompanydirectors,executivesandcontrollingauthorities(educationalbackgroundtraining) The shareholders’ equity increased to Baht 18,567 Baht to increased equity shareholders’ The (Yr.) Age 3MasterofArts 63 (IOD) of Directors Thai Institute (August 2007) Program the Chaiman - TheRoleof (IOD) of Directors Thai Institute (ACP10/2005) Program Committee - Audit (IOD) Directors Institute of 1/2000) Thai Program (DCP Certification - Directors U.S.A. (UCLA), Los Angeles, California at University of (ECON), Education / Training Shareholding Number of (%)* - Relationship executives with the Family - set forthbytheBankofThailand. BIS ratio stood at 16.39 which was higher than the 8.5 % Bank’s the 2007, year-end At securities. in investment of gain unrealized in improvement an as well as claims financial in investment of revaluation in improvement Present Present Present Present Present Present eidPosition Period 1993 - 2001 - 2005 - 2004 - 2006 - 2007 - 2007 - - Apr. 2005 2007 2005 Apr.
Director Directors Board of Trustees and Council of Member of Council University Chulalongkorn Director of Comittee of theAudit Chairperson Director and Independent Committee Management the Risk Member of Committee the Audit Member of Committee the Audit Chairperson of Director and Independent of Directors of theBoard Chairperson Director and Independent Work Experiencesin5years Company Limited Industrial Public Thai Coating (TDRI) Research Institute Development Thailand University Chulalongkorn Limited Public Company Kiatnakin Finance Company Limited Management TMB Asset Security Office National Health Limited Public Company Kiatnakin Bank Limited Public Company Kiatnakin Bank Name ofCompany
51 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 Name of Company P.A. Lynn Philips Philips Lynn P.A. Limited Company Property Thai Company Appraisal Limited Bank Kiatnakin Company Public Limited Kiatnakin Bank Public Company Limited Kiatnakin Finance Public Company Limited Dharmaniti Public Company Limited Dharmaniti Anditing Company Limited Dharmaniti Press Company Limited Dharmaniti Office of Management Company Limited Dharmaniti Seminar and Training Company Limited Dharmaniti Foundation Grand Success Company Limited Kiatnakin Bank Public Company Limited Work Experiences in 5 years Experiences in Work Director Director Independent Director and of Chairperson the Audit Committee Independent Director and Member of the Audit Com- mittee Independent Director and Member of the Audit Committee Director Managing Director Director Director Director Director Director Independent Director, Chairperson of the Nomination and Remunera- tion Committee Oct Apr. Apr. 2005 2007 1994 - Apr. - Apr. 1989 - 1987 - 2007 - - 2005 1989 - 1986 - 2001 - 1998 - 1998 - 1993 - 1990 - 2006 - Period Position Present Present Present Present Present Present Present Present Present Present Present - - Family with the executives Relationship Relationship - (%)* (0.01%) Number of 50,000 shares 50,000 shares Shareholding Shareholding Training Education / - Bachelor of Accountancy, Thammasat University - Directors Certification Program (DCP 32/2003) Thai Institute of Directors (IOD) - Certified Public Accountant - Audit Com- mittee Program (ACP 9/2005) Thai Institute of Directors (IOD) - Monitoring the system of Internal Control & Risk Management Program (MIR) Thai Institute of Directors (IOD) - Master of Regional Planning, In- stitute of Social Studies, The Netherlands 66 Age (Yr.) 61 Name- Position Surname/
3. Mr. Manop Manop 3. Mr. Bongsadadt (Non- Authorized Director) 2. Mr. Pichai 2. Mr. Dachanapirom (Non- Authorized Director) * including with shareholding of spouse and child who is not become legal age as of Aug. 27, 2007 Remark: * including with shareholding of spouse and child who is not become legal age as KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 52 Remark: *includingwith shareholdingofspouseandchild whoisnotbecomelegal age asofAug.27,2007 Director) Authorized (Non- Pattrakornkul 4. Mr. Chet Surname/ Position Name- (Yr.) Age 59 Thai Institute (DCP9/2001), Program Certification - Directors University Thammasat program), (Certificate Marketing - Masterof (class 38) Defence college The National - TheNational (IOD) of Directors Thai Institute (RCP17/2007), Program the Chairman - TheRoleof (IOD) of Directors Thai Institute (ACP10/2005), mittee Program - AuditCom- (IOD) of Directors Thai Institute (DAP8/2004), tion Program Accredita- - Directors U.S.A. University Kansas State Architecture, -Masterof Defence Course, Education / Training
Shareholding 10,000 shares Number of (0.01%) (%)* Relationship executives with the Family - Present Present Present Present eidPosition Period 2005 - 2006 - 2007 - 2002 - 2004 - 2004 - 2004 - 2005 - 2007 2005 2005 2006 Apr. Oct. Oct. Director Independent Committee Remuneration Nomination and Member ofthe Committee the Audit Member of Present Professor Associate Committee the Audit Member of Committee the Audit Member of Committee of theAudit Chairperson tion Committee and Remunera- the Nomination and Memberof Director Independent mittee Audit Com- Member ofthe Committee of theAudit and Member Committee Remuneration Nomination and Member ofthe Director, Independent Committee of theAudit and Member Work Experiencesin5years Limited Public Company Kiatnakin Finance Limited Public Company Kiatnakin Bank Limited Public Company Kiatnakin Bank University Chulalongkorn Architecture Faculty, Limited Public Company The ErawanGroup Limited Public Company Kiatnakin Bank Limited Public Company N.C. Housing Limited Public Company Kiatnakin Finance Limited Public Company Kiatnakin Finance Limited Public Company Kiatnakin Bank Name ofCompany
53 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 Name of Company Kiatnakin Finance Public Company Limited Kiatnakin Finance Public Company Limited Kiatnakin Finance Public Company Limited Work Experiences in 5 years Experiences in Work Head of Consumer Lending Managing Director, Consumer Lending Assistant Managing Director 2005 2004 2002 2004 - 2002 - 2000 - Period Position -
Family with the executives Relationship Relationship - (%)* Number of Shareholding Shareholding Training Education / of Directors - Role of The Compensation Committee - Motivating Excellence in Performance Program, (1/2006) Thai Institute of Directors (IOD) - DCP Refresher Course (3/2006), Thai Institute of Directors (IOD) - Audit Committee Program (ACP17/2007), Thai Institute of Directors (IOD) - Seminar : Corporate Governance Report of Thai Listed Companies Association - Monitoring the Internal Audit Function : MIA(1/2007), Thai Institute of Directors (IOD) Age (Yr.) Name- Position Surname/
* including with shareholding of spouse and child who is not become legal age as of Aug. 27, 2007 Remark: * including with shareholding of spouse and child who is not become legal age as KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 54 Remark: *includingwith shareholdingofspouseandchild whoisnotbecomelegal age asofAug.27,2007 Director) Authorized (Non- Chirasoonton 5. Mr. Tarnin Surname/ Position Name- (Yr.) Age 5-Bachelor 55 (IOD) of Directors Thai Institute (5/2007), Course Refresher - DCP University Chulalongkorn Center Education Continueing (III) The ABM EXEC for Executive System Tools & Finance - Accounting University Thammasat Faculty, Science 1997, Political Administration - Public (IOD) of Directors Thai Institute (DCP10/2001), Program Certification - Directors University Ramkamhaeng of Law, Education / Training Shareholding Number of (%)* - Relationship executives with the Family - Present eidPosition Period - 2004 - 2004 - 2005 2005 - 2006 - 2001 2003 2004 2006
Committee the Audit Chairperson of Director and Independent Committee Remuneration Nomination and Member ofthe Director and Independent Committee Remuneration Nomination and person ofthe And Chair- Director Independent tion Committee and Remunera- the Nomination Chairperson of Director and Independent Director Independent Work Experiencesin5years Limited Public Company Kiatnakin Finance Limitied Public Company Kiatnakin Finance Limited Public Company Kiatnakin Finance Company Limited Kiatnakin BankPublic Company Limited Kiatnakin BankPublic Name ofCompany
55 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 Name of Company Kiatnakin Bank Public Company Limited Association of Securities Companies Kiatnakin Securities Company Limited Kiatnakin Bank Public Company Limited Kiatnakin Bank Company Public Limited Finance Kiatnakin Company Public Limited Finance Kiatnakin Company Public Limited Work Experiences in 5 years Experiences in Work Independent Director and Member of the Nomination and Remuneration Committee Chairman of the Information Technology Association Director Director Vice Director, Chairman and Director of Central Head Support and Director Managing Director of Central Support Apr. Apr. Mar. Mar. 2005 2005 2004 2002 2005 - 2007 - 2007 - 2007 - - 2006 - 2006 - 2005 - 2004 Period Position Present Present Present Present - - Family with the executives Relationship Relationship - - (%)* Number of Shareholding Shareholding Training Education / - Master of Business Administration (Operations Research) University of Santa Clara, California, USA - Directors Certification Program (DCP5/2001), Thai Institute of Directors (IOD) - DCP Refresher Course (3/2006), Thai Institute of Directors (IOD) - Audit Committee Program (ACP1/-2007), Thai Institute of Directors (IOD) - Bachelor of Market- ing, Bangkok University - Directors Certification Program (DCP13/2001), Thai Institute of Directors 55 60 Age (Yr.) (1) Name- Position Surname/
7. Mr. 7. Mr. Suraphol Kulsiri 6. Mr. Pravit 6. Mr. Varutbangkul (Authorized Director) (Authorized Director) * including with shareholding of spouse and child who is not become legal age as of Aug. 27, 2007 Remark: * including with shareholding of spouse and child who is not become legal age as KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 56 Remark: *includingwith shareholdingofspouseandchild whoisnotbecomelegal age asofAug.27,2007 Director) (Authorized kosol Chumnankit 8. Mr. Pracha Surname/ Position Name- (Yr.) Age 45 of Directors Thai Institute (DCP75/2006), Program Certification -Directors (IOD) of Directors Thai Institute & Finance, of Banking Management - Risk U.S.A. Arlington, of Texas University (Finance) Administration Business - Masterof Academy Capital Market (CMA 2) Executives Market for - Capital (IOD) Directors Institute of (RCC) Thai Program Committee Compensation - RoleofThe (IOD) Education / Training Shareholding Number of (%)* - Relationship executives with the Family - Present Present Present eidPosition Period 1999 - 2004 - 2005 - 2006 - - 2003 2003 - 2003 - - 2005 2005 - 2005 - 2005 - 2004 2005 2005 1999 2007 2004 2006 2007 2007 Director Managing Committee Head ofCredit Management Head ofRisk Management Head ofRisk Director Director Managing Officer Chief Executive Committee Remuneration Nomination and Member of Committee Remuneration Nomination and Member ofthe Director and Sub-Committee Technology the Information Chairman of Director Director Association Work Experiencesin5years Company Limited Management Asia Recovery Limited Public Company Kiatnakin Finance Limited Public Company Kiatnakin Finance Limited Public Company Kiatnakin Bank Limited Public Company Kiatnakin Bank Company Limited Kiatnakin Securities Company Limited Kiatnakin Securities Company Limited Kiatnakin Securities Limited Public Company Kiatnakin Finance of Thailand The StockExchange Limited Settrade Company of Thailand The StockExchange Name ofCompany
57 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 Name of Company Kiatnakin Bank Public Company Limited Kiatnakin Bank Public Company Limited The Erawan Group Public Company Limited Kiatnakin Securities Company Limited Kiatnakin Finance Public Company Limited Kiatnakin Finance Public Company Limited
Work Experiences in 5 years Experiences in Work Chairman of the Executive Board Chairman of the Board of Directors and Chairman of the Executive Com- mittee Director Director Director Chairman Chairman of the Executive board 2005 2007 2005 2005 - Apr. - Apr. 2007 - 2004 - 1999 - 2000 - 1999 - Period Position Present Present Present Family with the executives Relationship Relationship Head of Deposit and Marketing’s Brother (%)* Number of Shareholding Shareholding 11,105,510 shares (2.13%) Training Education / (IOD) : - EVA Managing for Creation, Value Sasin Graduate Institute of Business Administration of Chulalong- korn University - Blue Ocean Strategy, Strategic Business Development Center - Master of Business Administration (Executive), Sasin Graduate Institute of Business Administration of Chulalong- korn University - Orchestrat- ing Winning Performance 2005 (IMD) - Board & CEO Assessment, Thai Institute of Directors (IOD) - The Role of the Chairman Program, Thai Institute of Directors (IOD) 53 Age (Yr.) (2)
Name- Position Surname/
9. Mr. Supol 9. Mr.
(Non- Authorized Director) Wattanavekin * including with shareholding of spouse and child who is not become legal age as of Aug. 27, 2007 Remark: * including with shareholding of spouse and child who is not become legal age as KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 58 Remark: *includingwith shareholdingofspouseandchild whoisnotbecomelegal age asofAut.27,2007 Surname/ Position Name- (Yr.) Age Companies Thai Listed Report of Governance - Corporate University Chulalongkorn of Administration of Business Institute Graduate Change, Sasin Growth and Strategic - Leadership, (IOD) Directors Institute of Profit, Thai Success and Alliances for Strategic and Managing - Organizing (IOD) of Directors Thai Institute 76/2006), (DCP Program Certification - Directors (IOD) of Directors Thai Institute 56/2006), Program (DAP Accreditation - Directors Education / Training Shareholding Number of (%)* Relationship executives with the Family
eidPosition Period Work Experiencesin5years Name ofCompany
59 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 Name of Company Kiatnakin Bank Public Company Limited TISCO Securities Company Limited Kiatnakin Securities Company Limited Kiatnakin Bank Public Company Limited Public Kiatnakin Bank Company Limited Bank Kiatnakin Company Public Limited Finance Kiatnakin Company Public Limited Finance Kiatnakin Company Public Limited Kiatnakin Finance Public Company Limited Work Experiences in 5 years Experiences in Work Head of Finance & Budgeting Acting Managing Director Director President of Head Residential Project and Lending of Head Commercial Lending of Retial Head Lending Head of Commercial Lending Head of Residential Project Lending Assistant Managing Director July June 2005 2007 2002 1998 -2006 2006 - 2005 - 2005 - 2005 - 2002 - 2001 - 2007 - Period Position Present Present Present Present Present - - Family with the executives Relationship Relationship - - (%)* Number of Shareholding Shareholding Training Education / - Master - Master of Business Administration and Master of Science in Electrical Engineering, The Univer- at sity of Texas Austin, Texas, U.S.A. - Directors Certification Program (DCP31/2003), Thai Institute of Directors (IOD) - Senior Executive Program, Sasin Graduate Institute of Business Administration of Chulalong- korn University - The Job of the Chief Executive, Singapore Institute of Management (SIM) - MBA, Eastern Michigan Uni- U.S.A. versity, - Director Accreditation Program (DAP 21/2004) 44 48 Age (Yr.) (2) Name- Position Surname/
10. Mr. 10. Mr. Tawatchai Sudtikitpisan 11. Mr. 11. Mr. Chavalit Chindavanig (Authorized Director) * including with shareholding of spouse and child who is not become legal age as of Aug. 27, 2007 Remark: * including with shareholding of spouse and child who is not become legal age as KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 60 Remark: *includingwith shareholdingofspouseandchild whoisnotbecomelegal age asofDec.31,2007 Wattanavekin Thitinan 13. Ms. chawat Amornde- Patom 12. Mr. Surname/ Position Name- (2)
(Yr.) Age 50 50 (IOD) of Directors Thai Institute Evaluation, Performance -Board (IOD) of Directors Institute Thai (DCP1/2000), Program Certification - Directors korn University of Chulalong- Administration Business Institute of Sasin Graduate Management - Masterof University Thammasat Accountancy, - Masterof (IOD) of Directors Thai Institute 76/2006) Program (DCP Certification - Directors (IOD) of Directors Thai Institute Education / Training Shareholding 25,979,861 Number of (4.98%) shares (%)* - Sister Committee’s of theExecutive Chairman Relationship executives with the Family - Present Present Present eidPosition Period 1987 - 1999 - 2002 - 2005 - 2000 - 2007 - 2002 2005 2007 Nov. Director Managing Assistant Director and Director and Funding Head ofTreasury and Marketing Head ofDeposit and Retail of Operation Vice President Executive Operations Head of Work Experiencesin5years Limited Public Company Kiatnakin Finance Company Limited Kiatnakin Securities Limited Public Company Kiatnakin Finance Company Limited Kiatnakin BankPublic Company Limited Bank ThaiPublic Limited Public Company Kiatnakin Bank Name ofCompany
61 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 Name of Company Kiatnakin Bank Public Company Limited Kiatnakin Finance Public Company Limited Kiatnakin Finance Public Company Limited Work Experiences in 5 years Experiences in Work Head of Debt Restructuring Head of Asset Management Assistant Managing Director 2002 1991 2005 - - 2005 - 2002 Period Position Present - Family with the executives Relationship Relationship - (%)* Number of Shareholding Shareholding Training Education / - Politics and Governance (KPI 8), The King Prajadhi Institute pok’s - Capital Market for Executives (CMA 2), Capital Market Academy - The Joint State-Private Course (NDC 2549) Thailand National Defence College - Corporate social Responsibility (1/2007), Thai Institute of Directors (IOD) - Master of Business Arlington, U.S.A. - Risk Management, of Banking & Finance, Thai Institute of Directors - Directors Certificate Program (DCP75/2006), Thai Institute of Directors (IOD) 49 Age (Yr.) Name- Position Surname/
14. Mr. Mr. 14. Sarawut Charuchinda * including with shareholding of spouse and child who is not become legal age as of Aug. 27, 2007 Remark: * including with shareholding of spouse and child who is not become legal age as KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 62 declared bankruptcy, noreriminaloffensesinthepasttenyears. Remark: * Tejagupta Sineenath 15. Ms. Position (1) Surname/ Name- None of the executive at Kiatnakin Bank Public Company Limited has a history of illegal conduct, none has ever has none conduct, illegal of history a has Limited Company Public Bank Kiatnakin at executive the of None (History ofexecutiveas31December, 2007) including withshareholdingofspouseandchildwhoisnotbecome legalageasofAug.27,2007 (2) (1)
Do nothaveauthorityinSubsidiary, KiatnakinSecuritiesCompanyLomited, asDirectos Executive Chief the as Limited, Company Securities Kiatnakin company, Subsidiary in authority Have officer, (Yr.) Age 4-Masterof 54 (IOD) of Directors Thai Institute Statement, of Financial Fundamental ing the - Understand- (IOD) of Directors Thai Institute Program #16, Secretary - Company U.S.A. Mississippi, Women, University for Mississippi Business, Science in Training (2) Education / Shareholding Number of (%) (3)* - executives (4) Relationship with the Family - Present eidPosition Period 1991 - 2002 - 2005 - 2002 2005 Director Managing Deputy Vice President Senior Executive Vice President Senior Executive Work Experiencesin5years Limited Public Company Kiatnakin Finance Limited Public Company Kiatnakin Finance Limited Public Company Kiatnakin Bank Name ofCompany(5)
63 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007
The Board of Directors has also appointed the In the Board of Directors’ opinion, the Bank’s Audit Committee, which consisteddirectors of to independentbe responsible for producesensure accurate that and thesufficient Bankfinancial reports, the Bank has appropriate and efficient internal control and internal audit system in place, review all disclosures of the Bank’s information where connected transactions have taken place completeness and or accuracy wheretheir ensure to there order in may interest be conflicts of and others under their duties. The opinion of the Audit Committee related to these matters is in the report from Report. the Audit Committee Section of the Annual overall internal control system is satisfactory and able to confidently and reflect the financial statements as of subsidiaries. 31 December 2007 for the Bank and its (Ms. Nawaaporn Ryanskul) Chairperson
The Board of Directors is responsible for the effective an established has Directors of Board The
Dear Shareholders consolidated financial statements of the Bank and subsidiaries its as well as the financial information which appear in the Annual Report. The financial information Accepted Generally the with accordance in prepared was Accounting maintained, consistently and Principles chosen was policy accounting (GAAP). An appropriateusing the most prudent discretion and best judgement. full on based prepared also were statements financial The disclosure of essential information and are include in the Notes to Financial Statement Section. internal control system to ensure that allrecords are accurate, complete and sufficient to facilitate accounting helped system The assets. its of all maintaining in Bank the the Bank to identify any potential weakness and prevent fraudulent or significant mismanagement of its business operations. Report from the Board of Directors the Board Report from KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 64 for directors and senior executives from, the President President the from, executives senior and directors for level upwards. President the from executives senior and directors for Directors areappropriatefortheBank. of Board the of experience of capability,variety and and qualifications forvariousdirector’s position. of responsibilities The the committeeareto responsibilities. their of ary bound- the within strictly adhering while duties their conducted members Committee the all year, past during the and 2007, in meetings 4 held Committee The are 2 director. non-executive a is which 1 and directors independent of members, 3 of comprised Committee The Committee. Remuneration and Nomination the of member a as Pattrakornkul Chet Mr. appointed also Board The Committee. Remuneration and Nomination the of Chairperson as Bongsodadt Manop Mr. 2006, 26, Dear Shareholders and RemunerationCommittee Report fromtheNomination – Set the guidelines on performance appraisal appraisal performance on guidelines the Set – – Set the remuneration policy and other benefits – Ensure that the overall size, level of knowledge suitable with candidates propose and Screen – October dated 5/2549 # Directors of Board The Committee Chairperson oftheNominationandRemuneration (Mr. ManopBongsadadt) in the2007AnnualReport. Committee Remuneration and Normination the from comments and reports forms, remuneration of various preparation the in remuneration the disclosed has tee and abilitytoincreaselong-termshareholders’values. risks associated responsibilities, the consideration into takes appraisal performance The package. remuneration annual the adjust appropriately to order in upwards level h Nmnto ad eueain Commit- Remuneration and Nomination The
65 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 In my opinion, the consolidated and company financial statements referred to above present fairly, in all in fairly, present above to referred statements financial financial company and consolidated the respects, materials position as at 31 December 2007 and the consolidated and company results of operations and cash flows for the Public Bank Kiatnakin of 2007 December 31 ended year Company Limited and its subsidiaries and of Kiatnakin gener- with accordance in Limited Company Public Bank ally accepted accounting principles. Ms. Unakorn Phruithithada Certified Public Accountant (Thailand) No. 3257 PricewaterhouseCoopers ABAS Limited Bangkok 18 February 2008 financial statements persentation. I believe that my audit my that believe I persentation. statements financial provides a reasonable basis for my opinion.
I conducted my audit in accordance with generally generally with accordance in audit my conducted I I have audited the accompanying consolidated
To the Shareholders of Kiatnakin Bank Public Company Limited the Shareholders of Kiatnakin Bank Public Company To Auditor’s Report Auditor’s accepted auditing standards. Those standards require that require standards Those standards. auditing accepted I plan and perform the audit to obtain reasonable assur- ance about whether the financial statements are free of a on examining, includes audit An misstatement. material disclosures and amount the supporting evidence basis, test assessing includes also audit An statements. financial the in the accounting principles used and significant estimates made by management, as well as evaluating the overall and company balance sheets as at 31 December 2007, and the related consolidated and company statements of for flows cash and equity shareholders’ in changes income, Pub- Bank Kiatnakin of 2007 December 31 ended year the Kiatnakin of and subsidiaries its and Limited Company lic management Bank’s The Limited. Company Public Bank infor- of completeness and correctness the for responsible is is responsibility My statements. financial these in mation based statements financial these on opinion an express to company and consolidated comparative The audit. my on financial statements for the year ended 31 2006 Decemberof Kiatnakin Bank Public Company Limited and its subsidiaries and of Kiatnakin Bank Public Company Limited, were audited by another auditor from the same firm as myself in accordance with generallyauditing standards, whose report dated 20 February 2007 accepted expressed an unqualified opinion on those statements. KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 66 The notetotheconsolidated andcompanyfinancialstatements onpage77to136areanintegral part ofthesefinancialstatements.
67 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007
The note to the consolidated and company financial statements on page 77 to 136 are an integral part of these financial statements. The note to the consolidated and company financial statements on page 77 to 136 are an integral part of KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 68 The notetotheconsolidated andcompanyfinancialstatements onpage77to136areanintegral part ofthesefinancialstatements.
69 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007
The note to the consolidated and company financial statements on page 77 to 136 are an integral part of these financial statements. The note to the consolidated and company financial statements on page 77 to 136 are an integral part of KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 70 The notetotheconsolidated andcompanyfinancialstatements onpage77to136areanintegral part ofthesefinancialstatements.
71 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007
statements. financial these of part integral an are 136 to 77 page on statements financial company and consolidated the to note The KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 72 The note to the consolidated and company financial statements on page 77 to 136 are an integral part of these financial statements.
73 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007
The note to the consolidated and company financial statements on page 77 to 136 are an integral part of these financial statements. The note to the consolidated and company financial statements on page 77 to 136 are an integral part of KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 74 The notetotheconsolidated andcompanyfinancialstatements onpage77to136areanintegral part ofthesefinancialstatements.
75 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007
The note to the consolidated and company financial statements on page 77 to 136 are an integral part of these financial statements. The note to the consolidated and company financial statements on page 77 to 136 are an integral part of KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 76 77 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 78 79 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 80 81 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 82 83 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 84 85 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 86 87 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 88 89 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 90 91 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 92 93 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 94 95 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 96 97 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 98 99 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 100 101 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 102 103 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 104 105 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 106 107 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 108 109 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 110 111 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 112 113 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 114 115 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 116 117 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 118 119 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 120 121 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 122 123 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 124 125 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 126 127 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 128 129 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 130 131 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 132 133 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 134 135 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 136 Fax.04333 7734 Tel. 043337725-32 Fax.053719434 Tel. 053719427-32 Chiangrai57000 AmphurMuang, Tambon Robvieng, Fax.023200623 Tel. 023200622 SuanLuang,Bangkok10250 Fax.024548657 Tel. 024545656 Bangkok10160 hetkasem-Kanchanaphisek KIATNAKIN BANKPUBLICCOMPANY LIMITED BRANCH OFFICES Fax.044260409 Tel. 044260401-8 NakhonRatchasima30000 AmphurMuang, Tambon NaiMuang, Tambon Tel. 054317799 Lampang52000 Tambon PhraBat, AmphurMuang, 142-144High-wayLampang-Ngao, Fax.05340 Tel. 053218711-3,53409620-4 AmphurMuang,Chiangmai50300 Tambon ChangPhueak, Fax.026641454 Tel. 026255000 Bangkok10110 KlongToei Nue,Wattana, Sukhumvit21Road, 209/1KTower B,27 Fax.022569933 Tel. 026803333 Bangkok10330 Lumpini,Pathumwan, PloenchitRoad, 500AmarinTower 12 9. 6. 5. 4. 8. 7. 3. 2. 1. 56/5-6Moo13,PaholyothinRoad, 903,905SrinakarinRoad 192/1-4Jomsurangyart Road, 9/2PrachasamosornRoad, 33Chiangmai-LampangRoad,
Nakhon RatchasimaOffice Chiangmai Office Chiangrai Office Srinakarin Office Khon Kaen40000 119/42-43 Moo4,BangKae, Khon KaenOffice Fax.054317699 Lampang Office P Asoke Office Head Office Muang, Office
Nai 9625
Muang, th Floor, th ,
Amphur 14. Fax.038516106 Tel. 038516611 Chachoengsao24000 AmphurMuang, Tambon NaMuang, BangPakongRoad, 13. Tel. Fax. 0 034620646 Kanchanaburi71000 Tambon BanNue,AmphurMuang, 12. Fax.045209258 Tel. 045209260 Ubonratchathani34000 AmphurMuang, Tambon NaiMuang, Fax.038384950 Tel. 038384946-9 Chonburi20130 Tambon Huaykapi,Amphur 7/41 Moo4SukhumvitRoad, 18. Fax.03934 3615 Tel. 039343616 AmphurMuang, Chantaburi22000 Tambon Chantanimit, 17. Fax.036318446 Tel. 03631 8445 AmphurMuang,Saraburi18000 Tambon PakPrew, 16. Fax.032310391 Tel. 032310382-9 Ratchburi70000 Tambon NaMuang,Amphur 286/25-26SrisuriyawongRoad, 15. Fax. 034271584 Tel. 034271583 Nakhonpathom 73000 Amphur Muang, Tambon HuayChorakhe, 11. Fax.042224275 Tel. 042224270-4 Udonthani41000 Tambon Mark-kang,AmphurMuang, 119/7-8Moo14,SoiBanKaoJan, 10.
275/1-2SaengChutoRoad,
Nakhonpathom Office 508, 510Chachoengsao Chachoengsao Office Kanchanaburi Office 466 SuriyatRoad, Chonburi Office 29/1 Moo7, Chantaburi Office 568/7-9 PaholyothinRoad, Saraburi Office Ratchburi Office 992/2 PetchkasemRoad, Ubonratchathani Office Udonthani Office
3462 0645 Muang,
137 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007
Sukhumvit Road Floor,
th [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] Boromtrailoknat Road, Floor, rd Rayong Office Khon Kaen Office Chonburi Office Chiangmai Office Phitsanulok Office Si Racha Office Si Racha, Tambon Samutsakorn Office
1400/33 Ekkachai Road, Arcade Department store, Land 83/9 Top 125/1 Janta-udom Road, 86/4-5 4 Huaykapi, 7/18 Moo 4, Tambon 33 Chiangmai-Lampang Super High-way,
1. 2. 3. 4. 6. 7. 5. Muang, Nai Tambon Amphur Muang, Phitsanulok 65000 0 5523 5000-6 Tel. Fax. 0 5523 5006 Email :
Mahachai, Tambon Amphur Muang, Samutsakorn 74000 0 3442 7123-5 Tel. Fax. 0 3442 3565 Email : 9/2 Prachasamosorn Road, Nai Muang, Tambon Amphur Muang, Khon Kaen 40000 0 4333 7700-24 Tel. Fax. 0 4333 7721 Email : 3 (Rayong-Baan Khai), Choeng Noen, Tambon 21000 Amphur Muang, Rayong 0 3861 7476-90 Tel. Fax. 0 3861 7490 Email : BRANCH OFFICES BRANCH SECURITIES KIATNAKIN LIMITED COMPANY Provinces Amphur Muang, Chonburi 20130 0 3838 4931-43 Tel. Fax. 0 3838 4794 Email : Phueak, Chang Tambon Amphur Muang, Chiangmai 50300 0 5322 0753-60 Tel. Fax. 0 5322 0763 Email : 20110 Amphur Si Racha, Chonburi 0 3832 8345-54 Tel. Fax. 0 3832 8354 Email :
1773-4
Amphur Haad Yai,
0 7434 6262 Tel. Fax. 0 7434 6260 Talad, 22/144-146 Rat-uthit, Tambon Office Haad Yai 6/144-5 Phatthanakan Phuket Office Talad-nue 101/2 Bangkok Road Tambon Surat Thani Office Krabi Office 254, 254/1-2 Moo 11, Chumphon Office 67/4-5 Krom Luang Nakhonsithammarat Office 286/10 Pichaisongkram Road, Phitsanulok Office Naklua, Tambon Moo 6 120/17-18 Rayong Office 375/4-5 Sukhumvit Road, Nakhonsawan Office Pattaya Office Pattaya
24,24/1 Suwannavong Road,
Nakhonsawantok,
Amphur Muang, Surat Thani 84000 0 7721 7405-7, 0 7720 5454-5 Tel. Fax. 0 7721 7408 28. Haad Yai, Tambon Songkhla 90110 Khukhwang Road, Nai Muang, Amphur Muang, Tambon Nakhonsithammarat 80000 0 7535 8531-6 Tel. Fax. 0 7535 8538 26. Amphur Muang, Phuket 83000 0 7622 3464, 0 7622 3234, Tel. 0 7622 3293 Fax. 0 7622 3550 27. Krabi Noi, Tambon Amphur Muang, Krabi 81000 0 7566 3922 Tel. Fax. 0 7566 3923 24. Taphao, Tha Chumphon Road, Tambon Amphur Muang, Chumphon 86000 0 7757 0508 Tel. Fax. 0 7757 0509 25. 0 5521 1687 Fax. 23. Nai Muang, Tambon Amphur Muang, Phitsanulok 65000 0 5521 1683-6, 0 5521 Tel.
Amphur Muang, Nakhonsawan 60000 0 5622 0973-6 Tel. Fax. 0 5622 0977 22. Bang-lamung, Amphur 20150 Chonburi 0 3848 9161 Tel. Fax. 0 3848 9162 20. Noenphra, Amphur Muang, Tambon Rayong 21000 8090-4 0 3880 Tel. Fax. 0 3880 8095 21. 10, Tambon 795/8 Moo
19. KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 138 Email: Fax.074239515 Tel. 074354470-9 Songkhla90110 Tambon HaadYai, AmphurHaadYai, 200Nipat-UthitRoad, 8. Haad Yai Office [email protected] Email: Fax.0 Tel. 026941788 HuaiKhwang,Bangkok10320 RatchadaphisekRoad, Email: Fax.025500354 Tel. 025500353-80 Nontaburi11000 AmphurMuang, NgamWong Wan Road,Bangkhen, Email: Fax.027456467 Tel. 027456458-66 Bangkok10260 Bangna,Prakanong, Email: Fax.026802233 Tel. 026802222 Lumpini,Pathumwan,Bangkok10330 11 Email: Fax.026616329 Tel. 022041270-84 Bangkok10110 KlongToei Nue,Wattana, 500AmarinTower 7 Email: Fax.029371254 Tel. 029371240-54 Chatuchak,Bangkok10900 PaholyothinRoad,Latyao, 11 Bangkok Office COMPANY LIMITED KIATNAKIN SECURITIES BRANCH OFFICES 6. 5. 4. 2. 3. 1.
30/39-50OfficeBuilding, 159Sukhumvit21Road, 1693RoomNo.503/1,507/1,508/2, 202LeConcorde11 1093/56-57CentralCityTower, Ladprao Office Ratchadaphisek Office Bangna Office Asoke Office Ngamwongwan Office Head Office st st Floor, TheMallNgamWong Wan, Floor, Bangna-Trad Road, 2694 [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] 1799 st th Floor, RoomNo.1101, , PloenchitRoad,
139 KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 9 9 4 28 10 12 13 14 22 23 23 26 27 23 39 39 39 12 17 21 41 43 Page 66-136 66-136
ransactions Statement
Management Structure • 8.1 Financial Nature of Business 8.2 Remuneration Auditor’s 1.3 Other References Financial Highlights 3.1 Business Operations 3.2 Revenue Structure 3.3 year Significant changes in the previous Risk Factors Shareholding and Management Structure 5.2 Management • Director and Management Selection Process • Management Remuneration • Business Administration • Company Policy and Disclosure • 5.3 Dividend Policies Internal Control Related Party T Management Discussion and Analysis Financial Statement General Information
3. 2. 4. 5. 6. 7. 8. 1.
1.2 registered shares company holds 10% or more of the total Juristic entity in which the 5.1 Shareholders 1.1 The company
and Exchange Commission and Exchange List of Information required by the Office of the Securities Office of the required by the Information List of KIATNAKIN BANK PUBLIC COMPANY LIMITED ANNUAL REPORT 2007 140